10-Q

United States

Securities and Exchange Commission

Washington, D.C. 20549

FORM 10-Q 

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 28, 2020

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___ to ___

Commission file number 0-20388

LITTELFUSE, INC. 

(Exact name of registrant as specified in its charter)

Delaware		36-3795742
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
8755 West Higgins Road
Suite 500
Chicago	Illinois	60631
(Address of principal executive offices)		(ZIP Code)

Registrant’s telephone number, including area code: 773-628-1000

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of exchange on which registered
Common Stock, $0.01 par value	LFUS	NASDAQ	Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act (Check one): Large accelerated filer [X] Accelerated filer [ ] Non-accelerated filer [ ] Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Yes [ ] No [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No [X]

As of April 24, 2020, the registrant had outstanding 24,276,841 shares of Common Stock, net of Treasury Shares.

TABLE OF CONTENTS

		Page
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets as of March 28, 2020 (unaudited) and December 28, 2019	3
	Condensed Consolidated Statements of Net Income for the three months ended March 28, 2020 (unaudited) and March 30, 2019 (unaudited)	4
	Condensed Consolidated Statements of Comprehensive Income for the three months ended March 28, 2020 (unaudited) and March 30, 2019 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the three months ended March 28, 2020 (unaudited) and March 30, 2019 (unaudited)	6
	Condensed Consolidated Statements of Stockholders' Equity for the three months ended March 28, 2020 (unaudited) and March 30, 2019 (unaudited)	7
	Notes to Condensed Consolidated Financial Statements (unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35
Item 4.	Controls and Procedures	35
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	36
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 3.	Defaults Upon Senior Securities	37
Item 4.	Mine Safety Disclosures	37
Item 5.	Other Information	37
Item 6.	Exhibits	37
Signatures		39

2

LITTELFUSE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

	(Unaudited)
(in thousands)	March 28, 2020			December 28, 2019
ASSETS
Current assets:
Cash and cash equivalents	$	620,575		$	531,139
Short-term investments	43			44
Trade receivables, less allowances of $37,482 and $42,043 at March 28, 2020 and December 28, 2019, respectively	207,912			202,309
Inventories	227,282			237,507
Prepaid income taxes and income taxes receivable	4,253			4,831
Prepaid expenses and other current assets	32,418			28,564
Total current assets	1,092,483			1,004,394
Net property, plant, and equipment	334,829			344,617
Intangible assets, net of amortization	308,393			321,247
Goodwill	812,763			820,589
Investments	21,248			24,099
Deferred income taxes	7,608			8,069
Right of use lease assets, net	20,611			21,918
Other assets	14,694			14,965
Total assets	$	2,612,629		$	2,559,898
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	106,796		$	117,320
Accrued liabilities	73,512			84,120
Accrued income taxes	17,907			14,122
Current portion of long-term debt	10,000			10,000
Total current liabilities	208,215			225,562
Long-term debt, less current portion	764,195			669,158
Deferred income taxes	49,698			49,763
Accrued post-retirement benefits	35,904			38,198
Non-current operating lease liabilities	15,960			17,166
Other long-term liabilities	61,709			64,037
Shareholders’ equity:
Common stock, par value $0.01 per share: 34,000,000 shares authorized; shares issued, March 28, 2020–25,902,213; December 28, 2019–25,855,203	256			256
Treasury stock, at cost: 1,626,357 and 1,473,901 shares, respectively	(239,817		)	(216,447		)
Additional paid-in capital	874,360			867,996
Accumulated other comprehensive loss	(121,802		)	(106,823		)
Retained earnings	963,820			950,901
Littelfuse, Inc. shareholders’ equity	1,476,817			1,495,883
Non-controlling interest	131			131
Total equity	1,476,948			1,496,014
Total liabilities and equity	$	2,612,629		$	2,559,898

See accompanying Notes to Condensed Consolidated Financial Statements.

3

LITTELFUSE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME

(Unaudited)

	Three Months Ended
(in thousands, except per share data)	March 28, 2020		March 30, 2019
Net sales	$	346,096	$	405,500
Cost of sales	222,384		250,272
Gross profit	123,712		155,228
Selling, general, and administrative expenses	54,386		62,955
Research and development expenses	14,595		21,409
Amortization of intangibles	9,981		10,191
Total operating expenses	78,962		94,555
Operating income	44,750		60,673
Interest expense	5,418		5,686
Foreign exchange loss	2,584		4,243
Other expense, net	1,249		4,305
Income before income taxes	35,499		46,439
Income taxes	10,855		9,450
Net income	$	24,644	$	36,989
Income per share:
Basic	$	1.01	$	1.50
Diluted	$	1.00	$	1.48
Weighted-average shares and equivalent shares outstanding:
Basic	24,393		24,717
Diluted	24,578		25,009

See accompanying Notes to Condensed Consolidated Financial Statements.

4

LITTELFUSE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended
(in thousands)	March 28, 2020			March 30, 2019
Net income	$	24,644		$	36,989
Other comprehensive income (loss):
Pension and postemployment adjustment, net of tax	561			(49		)
Foreign currency translation adjustments	(15,540		)	8,122
Comprehensive income	$	9,665		$	45,062

See accompanying Notes to Condensed Consolidated Financial Statements.

5

LITTELFUSE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Months Ended
(in thousands)	March 28, 2020			March 30, 2019
OPERATING ACTIVITIES
Net income	$	24,644		$	36,989
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	13,821			13,088
Amortization of intangibles	9,981			10,191
Deferred revenue	(145		)	—
Impairment charges	2,237			—
Stock-based compensation	2,965			3,966
Loss on investments and other assets	2,604			2,810
Deferred income taxes	616			(72		)
Other	3,547			5,393
Changes in operating assets and liabilities:
Trade receivables	(9,457		)	(5,800		)
Inventories	6,667			(3,250		)
Accounts payable	(3,964		)	(8,499		)
Accrued liabilities and income taxes	(7,012		)	(27,170		)
Prepaid expenses and other assets	(1,225		)	3,273
Net cash provided by operating activities	45,279			30,919
INVESTING ACTIVITIES
Acquisitions of businesses, net of cash acquired	—			(775		)
Purchases of property, plant, and equipment	(16,586		)	(14,076		)
Net proceeds from sale of property, plant and equipment	50			607
Net cash used in investing activities	(16,536		)	(14,244		)
FINANCING ACTIVITIES
Proceeds of revolving credit facility	100,000			—
Payments of term loan	(2,500		)	(5,000		)
Net proceeds related to stock-based award activities	2,956			2,198
Purchases of common stock	(22,927		)	(17,906		)
Cash dividends paid	(11,725		)	(10,625		)
Net cash provided by (used in) financing activities	65,804			(31,333		)
Effect of exchange rate changes on cash and cash equivalents	(5,111		)	1,539
Increase (decrease) in cash and cash equivalents	89,436			(13,119		)
Cash and cash equivalents at beginning of period	531,139			489,733
Cash and cash equivalents at end of period	$	620,575		$	476,614
Supplementary Cash Flow Information
Cash paid during the period for interest	$	7,354		$	8,011
Capital expenditures, not yet paid	$	5,832		$	—

See accompanying Notes to Condensed Consolidated Financial Statements.

6

LITTELFUSE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited)

	Littelfuse, Inc. Shareholders’ Equity
(in thousands, except share and per share data)	Common Stock		Addl. Paid in Capital		Treasury Stock			Accum. Other Comp. Inc. (Loss)			Retained Earnings			Non-controlling Interest		Total
Balance at December 28, 2019	$	256	$	867,996	$	(216,447	)	$	(106,823	)	$	950,901		$	131	$	1,496,014
Net income	—		—		—			—			24,644			—		24,644
Other comprehensive income, net of tax	—		—		—			(14,979		)	—			—		(14,979		)
Stock-based compensation	—		2,965		—			—			—			—		2,965
Withheld shares on restricted share units for withholding taxes	—		—		(443		)	—			—			—		(443		)
Stock options exercised	—		3,399		—			—			—			—		3,399
Repurchases of common stock	—		—		(22,927		)	—			—			—		(22,927		)
Cash dividends paid ($0.48 per share)	—		—		—			—			(11,725		)	—		(11,725		)
Balance at March 28, 2020	$	256	$	874,360	$	(239,817	)	$	(121,802	)	$	963,820		$	131	$	1,476,948

	Littelfuse, Inc. Shareholders’ Equity
(in thousands, except share and per share data)	Common Stock		Addl. Paid in Capital		Treasury Stock			Accum. Other Comp. Inc. (Loss)			Retained Earnings			Non-controlling Interest		Total
Balance at December 29, 2018	$	254	$	835,828	$	(116,454	)	$	(97,924	)	$	856,507		$	131	$	1,478,342
Net income	—		—		—			—			36,989			—		36,989
Other comprehensive loss, net of tax	—		—		—			8,073			—			—		8,073
Stock-based compensation	—		3,966		—			—			—			—		3,966
Withheld shares on restricted share units for withholding taxes	—		—		(94		)	—			—			—		(94		)
Stock options exercised	—		2,292		—			—			—			—		2,292
Repurchases of common stock	—		—		(13,555		)	—			—			—		(13,555		)
Cash dividends paid ($0.43 per share)	—		—		—			—			(10,625		)	—		(10,625		)
Balance at March 30, 2019	$	254	$	842,086	$	(130,103	)	$	(89,851	)	$	882,871		$	131	$	1,505,388

See accompanying Notes to Condensed Consolidated Financial Statements.

7

Notes to Condensed Consolidated Financial Statements 

1. Summary of Significant Accounting Policies and Other Information

Nature of Operations 

Littelfuse, Inc. and subsidiaries (the “Company”) is a global manufacturer of leading technologies in circuit protection, power control and sensing. Serving over 100,000 end customers, the Company’s products are found in automotive and commercial vehicles, industrial applications, data and telecommunications, medical devices, consumer electronics and appliances. With its broad product portfolio of fuses, semiconductors, polymers, ceramics, relays and sensors, and extensive global infrastructure, the Company’s worldwide associates partner with its customers to design, manufacture and deliver innovative, high-quality solutions for a safer, greener and increasingly connected world.

Basis of Presentation 

The Company’s accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures normally included in the consolidated balance sheets, statements of net income and comprehensive income, statements of cash flows, and statement of stockholders' equity prepared in conformity with U.S. GAAP have been condensed or omitted as permitted by such rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. They have been prepared in accordance with accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2019 which should be read in conjunction with the disclosures therein. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal, recurring nature. Operating results for interim periods are not necessarily indicative of annual operating results.

Revenue Recognition

Revenue Disaggregation

The following tables disaggregate the Company’s revenue by primary business units for the three months ended March 28, 2020 and March 30, 2019:

	Three Months Ended March 28, 2020
(in thousands)	Electronics Segment		Automotive Segment		Industrial Segment		Total
Electronics – Passive Products and Sensors	$	84,598	$	—	$	—	$	84,598
Electronics – Semiconductor	129,591		—		—		129,591
Passenger Car Products	—		52,645		—		52,645
Automotive Sensors	—		24,174		—		24,174
Commercial Vehicle Products	—		27,951		—		27,951
Industrial Products	—		—		27,137		27,137
Total	$	214,189	$	104,770	$	27,137	$	346,096

8

	Three Months Ended March 30, 2019
(in thousands)	Electronics Segment		Automotive Segment		Industrial Segment		Total
Electronics – Passive Products and Sensors	$	108,377	$	—	$	—	$	108,377
Electronics – Semiconductor	157,017		—		—		157,017
Passenger Car Products	—		56,543		—		56,543
Automotive Sensors	—		26,057		—		26,057
Commercial Vehicle Products	—		30,883		—		30,883
Industrial Products	—		—		26,623		26,623
Total	$	265,394	$	113,483	$	26,623	$	405,500

See Note 16, Segment Information for net sales by segment and countries.

Revenue Recognition

The Company recognizes revenue on product sales in the period in which the Company satisfies its performance obligation and control of the product is transferred to the customer. The Company’s sales arrangements with customers are predominately short term in nature and generally provide for transfer of control at the time of shipment as this is the point at which title and risk of loss of the product transfers to the customer. At the end of each period, for those shipments where title to the products and the risk of loss and rewards of ownership do not transfer until the product has been received by the customer, the Company adjusts revenues and cost of sales for the delay between the time that the products are shipped and when they are received by the customer. The amount of revenue recorded reflects the consideration to which the Company expects to be entitled in exchange for goods and may include adjustments for customer allowance, rebates and price adjustments. The Company’s distribution channels are primarily through direct sales and independent third-party distributors.

The Company elected the practical expedient under Accounting Standards Codification ("ASC") 340-40-25-4 to expense commissions when incurred as the amortization period of the commission asset the Company would have otherwise recognized is less than one year.

Revenue and Billing

The Company generally accepts orders from customers through receipt of purchase orders or electronic data interchange based on written sales agreements and purchasing contracts. Contract pricing and selling agreement terms are based on market factors, costs, and competition. Pricing is often negotiated as an adjustment (premium or discount) from the Company’s published price lists. The customer is invoiced when the Company’s products are shipped to them in accordance with the terms of the sales agreement. As the Company’s standard payment terms are less than one year, the Company elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company also elected the practical expedient provided in ASC 606-10-25-18B to treat all product shipping and handling activities as fulfillment activities, and therefore recognize the gross revenue associated with the contract, inclusive of any shipping and handling revenue.

Ship and Debit Program

Some of the terms of the Company’s sales agreements and normal business conditions provide customers (distributors) the ability to receive price adjustments on products previously shipped and invoiced. This practice is common in the industry and is referred to as a “ship and debit” program. This program allows the distributor to debit the Company for the difference between the distributors’ contracted price and a lower price for specific transactions. Under certain circumstances (usually in a competitive situation or large volume opportunity), a distributor will request authorization for pricing allowances to reduce its price. When the Company approves such a reduction, the distributor is authorized to “debit” its account for the difference between the contracted price and the lower approved price. The Company establishes reserves for this program based on historic activity, electronic distributor inventory levels and actual authorizations for the debit and recognizes these debits as a reduction of revenue.

9

Return to Stock 

The Company has a return to stock policy whereby certain customers, with prior authorization from Littelfuse management, can return previously purchased goods for full or partial credit. The Company establishes an estimated allowance for these returns based on historic activity. Sales revenue and cost of sales are reduced to anticipate estimated returns.

Volume Rebates

The Company offers volume based sales incentives to certain customers to encourage greater product sales. If customers achieve their specific quarterly or annual sales targets, they are entitled to rebates. The Company estimates the projected amount of rebates that will be achieved by the customer and recognizes this estimated cost as a reduction to revenue as products are sold.

Recently Adopted Accounting Standards

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments." The standard modifies the measurement approach for credit losses on financial instruments, including trade receivables, from an incurred loss method to a current expected credit loss method ("CECL"). The standard requires the measurement of expected credit losses to be based on relevant information, including historical experiences, current conditions and a forecast that is supportable. The Company adopted the new standard on December 29, 2019. The adoption of the standard did not have a material effect on our Condensed Consolidated Financial Statements.

In August 2018, the FASB issued ASU No. 2018-13 "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirement for Fair Value Measurement." ASU 2018-13 modifies the disclosure requirements in Topic 820: "Fair Value Measurement," based on the FASB Concepts Statement, "Conceptual Framework for Financial Reporting - Chapter 8: Notes to Financial Statements," including consideration of costs and benefits. The new standard removes certain disclosures, modifies certain disclosures and adds additional disclosures related to fair value measurement. The Company adopted the new standard on December 29, 2019. The adoption of ASU 2018- 13 did not have a material impact on our Condensed Consolidated Financial Statements.

In August 2018, the FASB issued ASU No. 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic: 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)." ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company adopted the new standard on December 29, 2019. The adoption of ASU 2018-15 did not have a material impact on our Condensed Consolidated Financial Statements.

In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This ASU provides optional expedient and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The objective of this is to provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting due to the cessation of the London Interbank Offered Rate (LIBOR). The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. The Company does not expect a material effect from the adoption of this guidance on its Condensed Consolidated Financial Statements.

2. Inventories

The components of inventories at March 28, 2020 and December 28, 2019 are as follows:

(in thousands)	March 28, 2020			December 28, 2019
Raw materials	$	75,202		$	76,732
Work in process	84,030			84,561
Finished goods	100,415			110,388
Inventory Reserves	(32,365		)	(34,174		)
Total	$	227,282		$	237,507

 

10

3. Property, Plant, and Equipment

The components of net property, plant, and equipment at March 28, 2020 and December 28, 2019 are as follows:

(in thousands)	March 28, 2020			December 28, 2019
Land	$	22,781		$	24,758
Building	105,067			108,501
Equipment	633,899			631,273
Accumulated depreciation and amortization	(426,918		)	(419,915		)
Total	$	334,829		$	344,617

The Company recorded depreciation expense of $13.8 million and $13.1 million for the three months ended March 28, 2020 and March 30, 2019, respectively.

4. Goodwill and Other Intangible Assets

The amounts for goodwill and changes in the carrying value by segment for the three months ended March 28, 2020 are as follows:

(in thousands)	Electronics			Automotive			Industrial			Total
As of December 28, 2019	$	650,796		$	131,321		$	38,472		$	820,589
Currency translation	(5,873		)	(1,693		)	(260		)	(7,826		)
As of March 28, 2020	$	644,923		$	129,628		$	38,212		$	812,763

The components of other intangible assets at March 28, 2020 and December 28, 2019 are as follows:

 

	As of March 28, 2020
(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Land use rights	$	9,545	$	1,755	$	7,790
Patents, licenses and software	129,380		$	80,506	$	48,874
Distribution network	43,076		36,560		6,516
Customer relationships, trademarks, and tradenames	357,188		111,975		245,213
Total	$	539,189	$	230,796	$	308,393

	As of December 28, 2019
(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Land use rights	$	9,649	$	1,730	$	7,919
Patents, licenses and software	131,164		78,828		52,336
Distribution network	43,239		36,163		7,076
Customer relationships, trademarks, and tradenames	360,534		106,618		253,916
Total	$	544,586	$	223,339	$	321,247

During the three months ended March 28, 2020 and March 30, 2019, the Company recorded amortization expense of $10.0 million and $10.2 million, respectively.

During the three months ended March 28, 2020, the Company recognized a $0.3 million non-cash impairment charge on a certain patent triggered by the Company’s announcement to consolidate a manufacturing facility within the Industrial segment.

11

Estimated annual amortization expense related to intangible assets with definite lives as of March 28, 2020 is as follows:

(in thousands)	Amount
2020	$	38,291
2021	37,487
2022	36,561
2023	32,195
2024	29,135
2025 and thereafter	144,705
Total	$	318,374

5. Lease Commitments

The Company leases office and production space under various non-cancelable operating leases that expire no later than 2028. Certain real estate leases include one or more options to renew. The exercise of lease renewal options is at the Company's sole discretion. Options to extend the lease are included in the lease term when it is reasonably certain the Company will exercise the option. The Company also has production equipment, office equipment and vehicles under operating leases. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option that is reasonably certain of exercise. Certain leases include rental payments adjusted periodically for inflation. The lease agreements do not contain any material residual value guarantee or material restrictive covenants.

The Company does not have a published credit rating because it has no publicly traded debt; therefore, the Company is generating its incremental borrowing rate (IBR), using a synthetic credit rating model that compares its credit quality to other rated companies based on certain financial metrics and ratios. The reference rate will be based on the yield curve of companies with similar credit quality based on the metrics and adjusted for currency in regions where we have significant operations.

All leases with an initial term of 12 months or less that do not include an option to extend or purchase the underlying asset that the Company is reasonably certain to exercise (“short-term leases”) are not recorded on the Condensed Consolidated Balance Sheet. Short-term lease expenses are recognized on a straight-line basis over the lease term.

The following table presents the classification of ROU assets and lease liabilities at March 28, 2020 and December 28, 2019:

Leases (in thousands)	Condensed Consolidated Balance Sheet Classification	March 28, 2020		December 28, 2019
Assets
Operating ROU assets	Right of use lease assets, net	$	20,611	$	21,918
Liabilities
Current operating lease liabilities	Accrued liabilities	$	7,073	$	7,259
Non-current operating lease liabilities	Non-current operating lease liabilities	$	15,960	$	17,166
Total lease liabilities		$	23,033	$	24,425

12

The following table represents the lease costs for the three months ended March 28, 2020 and March 30, 2019:

Leases cost (in thousands)	Condensed Consolidated Statements of Net Income Classification	Three Months Ended March 28, 2020		Three Months Ended March 30, 2019
Short-term lease expenses	Cost of sales, SG&A expenses	$	117	$	153
Variable lease expenses	Cost of sales, SG&A expenses	318		194
Operating lease rent expenses	Cost of sales, SG&A expenses	2,173		2,193
Total operating lease costs	Cost of sales, SG&A expenses	$	2,608	$	2,540

Maturity of Lease Liabilities as of March 28, 2020 (in thousands)	Operating leases
2020 (excluding the three months ended March 28, 2020)	$	6,156
2021	6,620
2022	5,341
2023	3,590
2024	3,177
2025 and thereafter	498
Total lease payments	$	25,382
Present value of lease liabilities	$	23,033

Operating Lease Term and Discount Rate	March 28, 2020
Weighted-average remaining lease term (years)	3.90
Weighted-average discount rate	5.04	%

Other Information (in thousands)	Three Months Ended March 28, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flow payments for operating leases	$	(2,242	)
Leased assets obtained in exchange for operating lease liabilities	848

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6. Accrued Liabilities

The components of accrued liabilities at March 28, 2020 and December 28, 2019 are as follows:

(in thousands)	March 28, 2020		December 28, 2019
Employee-related liabilities	$	32,381	$	40,774
Operating lease liability	7,073		7,259
Interest	3,159		5,058
Professional services	3,359		3,986
Restructuring liability	3,336		2,679
Other non-income taxes	2,058		1,940
Other	22,146		22,424
Total	$	73,512	$	84,120

Employee-related liabilities consist primarily of payroll, sales commissions, bonus, employee benefit accruals and workers’ compensation. Bonus accruals include amounts earned pursuant to the Company’s primary employee incentive compensation plans. Other accrued liabilities include miscellaneous operating accruals and other client-related liabilities.

7. Restructuring, Impairment and Other Charges

The Company recorded restructuring, impairment and other charges for the three months ended March 28, 2020 and March 30, 2019 as follows:

	Three months ended March 28, 2020
(in thousands)	Electronics		Automotive		Industrial		Total
Employee terminations	$	881	$	399	$	321	$	1,601
Other restructuring charges	1		120		3		124
Total restructuring charges	882		519		324		1,725
Impairment	—		—		2,237		2,237
Total	$	882	$	519	$	2,561	$	3,962

	Three months ended March 30, 2019
(in thousands)	Electronics		Automotive		Industrial		Total
Employee terminations	$	1,800	$	605	$	47	$	2,452
Other restructuring charges	13		20		250		283
Total restructuring charges	1,813		625		297		2,735
Impairment	—		—		—		—
Total	$	1,813	$	625	$	297	$	2,735

2020

For the three months ended March 28, 2020, the Company recorded total restructuring charges of $1.7 million, for employee termination costs and other restructuring charges. These charges primarily related to the reorganization of certain manufacturing, selling and administrative functions across all segments and the announced consolidation of a manufacturing facility within the Industrial segment. The Company also recognized $2.2 million of impairment charges related to the land and building associated

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with the Company’s announcement to consolidate a manufacturing facility within the Industrial segment. The impairment charges were included in selling, general and administrative expenses.

2019

For three months ended March 30, 2019, the Company recorded total restructuring charges of $2.7 million, of which $2.5 million, was for employee termination costs and $0.3 million for other restructuring charges. These charges primarily related to reorganization of operations and selling, general and administrative functions as well as integration of IXYS within the Electronics segment and the reorganization of operations in the commercial vehicle products and automotive sensors businesses within the Automotive segment.

The restructuring reserves as of March 28, 2020 and December 28, 2019 are $3.3 million and $2.7 million, respectively. The restructuring reserves are included within accrued liabilities in the Condensed Consolidated Balance Sheets. The Company anticipates the remaining payments associated with employee terminations will primarily be completed by March 2021.

8. Debt

The carrying amounts of debt at March 28, 2020 and December 28, 2019 are as follows:

(in thousands)	March 28, 2020			December 28, 2019
Revolving Credit Facility	$	100,000		$	—
Term Loan	142,500			145,000
Euro Senior Notes, Series A due 2023	128,316			129,808
Euro Senior Notes, Series B due 2028	104,189			105,400
U.S. Senior Notes, Series A due 2022	25,000			25,000
U.S. Senior Notes, Series B due 2027	100,000			100,000
U.S. Senior Notes, Series A due 2025	50,000			50,000
U.S. Senior Notes, Series B due 2030	125,000			125,000
Other	2,619			2,619
Unamortized debt issuance costs	(3,429		)	(3,669		)
Total debt	774,195			679,158
Less: Current maturities	(10,000		)	(10,000		)
Total long-term debt	$	764,195		$	669,158

Revolving Credit Facility / Term Loan

On March 4, 2016, the Company entered into a five-year credit agreement (“Credit Agreement”) with a group of lenders for up to $700.0 million. The Credit Agreement consisted of an unsecured revolving credit facility (“Revolving Credit Facility”) of $575.0 million and an unsecured term loan credit facility (“Term Loan”) of up to $125.0 million. In addition, the Company had the ability, from time to time, to increase the size of the Revolving Credit Facility and the Term Loan by up to an additional $150.0 million, in the aggregate, in each case in minimum increments of $25.0 million, subject to certain conditions and the agreement of participating lenders.

On October 13, 2017, the Company amended the Credit Agreement to increase the Revolving Credit Facility from $575.0 million to $700.0 million and increase the Term Loan from $125.0 million to $200.0 million and to extend the expiration date from March 4, 2021 to October 13, 2022. The Credit Agreement also included the option for the Company to increase the size of the Revolving Credit Facility and the Term Loan by up to an additional $300.0 million, in the aggregate, subject to the satisfaction of certain conditions set forth in the Credit Agreement. Term Loans could be made in up to two advances. The first advance of $125.0 million occurred on October 13, 2017 and the second advance of $75.0 million occurred on January 16, 2018. For the Term Loan, the Company was required to make quarterly principal payments of 1.25% of the original term loan ($2.5 million quarterly) through maturity, with the remaining balance due on October 13, 2022. The Company paid $2.5 million of principal payments on the term loan during the three months ended March 28, 2020.

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Outstanding borrowings under the Credit Agreement bore interest, at the Company’s option, at either LIBOR, fixed for interest periods of one, two, three or six-month periods, plus 1.00% to 2.00%, or at the bank’s Base Rate, as defined, plus 0.00% to 1.00%, based upon the Company’s Consolidated Leverage Ratio, as defined. The Company was also required to pay commitment fees on unused portions of the credit agreement ranging from 0.15% to 0.25%, based on the Consolidated Leverage Ratio, as defined in the agreement. The Credit Agreement included representations, covenants and events of default that are customary for financing transactions of this nature. The effective interest rate on outstanding borrowings under the credit facility was 2.47% at March 28, 2020.

On March 25, 2020, the company borrowed $100.0 million from the revolving credit facility to preserve financial flexibility and enhance liquidity, given the increasing levels of uncertainty related to coronavirus disease 2019 ("COVID-19").

As of March 28, 2020, the Company had no amount outstanding in letters of credit and had available $219.8 million of borrowing capacity under the Revolving Credit Facility based on financial covenants. At March 28, 2020, the Company was in compliance with all covenants under the Credit Agreement.

On April 3, 2020, the Company amended the Credit Agreement to effect certain changes, including, among others: (i) eliminating the $200.0 million unsecured term loan credit facility, the remaining outstanding balance of which was repaid in full on April 3, 2020 through the revolving credit facility; (ii) making certain financial and non-financial covenants less restrictive on the Company; (iii) modifying performance-based interest rate margins and undrawn fees; and (iv) extending the maturity date to April 3, 2025. The amended Credit Agreement also allows the Company to increase the size of the revolving credit facility or enter into one or more tranches of term loans if there is no event of default and the Company is in compliance with certain financial covenants.  The balance under the facility is $240.0 million as of April 3, 2020.

Senior Notes

On December 8, 2016, the Company entered into a Note Purchase Agreement, pursuant to which the Company issued and sold €212 million aggregate principal amount of senior notes in two series. The funding date for the Euro denominated senior notes occurred on December 8, 2016 for €117 million in aggregate amount of 1.14% Senior Notes, Series A, due December 8, 2023 (“Euro Senior Notes, Series A due 2023”), and €95 million in aggregate amount of 1.83% Senior Notes, Series B due December 8, 2028 (“Euro Senior Notes, Series B due 2028”) (together, the “Euro Senior Notes”). Interest on the Euro Senior Notes is payable semiannually on June 8 and December 8, commencing June 8, 2017.

On December 8, 2016, the Company entered into a Note Purchase Agreement, pursuant to which the Company issued and sold $125 million aggregate principal amount of senior notes in two series. On February 15, 2017, $25 million in aggregate principal amount of 3.03% Senior Notes, Series A, due February 15, 2022 (“U.S. Senior Notes, Series A due 2022”), and $100 million in aggregate principal amount of 3.74% Senior Notes, Series B, due February 15, 2027 (“U.S. Senior Notes, Series B due 2027”) (together, the “U.S. Senior Notes due 2022 and 2027”) were funded. Interest on the U.S. Senior Notes due 2022 and 2027 is payable semiannually on February 15 and August 15, commencing August 15, 2017.

On November 15, 2017, the Company entered into a Note Purchase Agreement pursuant to which the Company issued and sold $175 million in aggregate principal amount of senior notes in two series. On January 16, 2018, $50 million aggregate principal amount of 3.48% Senior Notes, Series A, due February 15, 2025 (“U.S. Senior Notes, Series A due 2025”) and $125 million in aggregate principal amount of 3.78% Senior Notes, Series B, due February 15, 2030 (“U.S. Senior Notes, Series B due 2030”) (together the “U.S. Senior Notes due 2025 and 2030” and with the Euro Senior Notes and the U.S. Senior Notes due 2022 and 2027, the “Senior Notes”) were funded. Interest on the U.S. Senior Notes due 2025 and 2030 is payable semiannually on February 15 and August 15, commencing on August 15, 2018.

The Senior Notes have not been registered under the Securities Act, or applicable state securities laws. The Senior Notes are general unsecured senior obligations and rank equal in right of payment with all existing and future unsecured unsubordinated indebtedness of the Company.

The Senior Notes are subject to certain customary covenants, including limitations on the Company’s ability, with certain exceptions, to engage in mergers, consolidations, asset sales and transactions with affiliates, to engage in any business that would substantially change the general business of the Company, and to incur liens. In addition, the Company is required to satisfy certain financial covenants and tests relating to, among other matters, interest coverage and leverage. At March 28, 2020, the Company was in compliance with all covenants under the Senior Notes.

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The Company may redeem the Senior Notes upon the satisfaction of certain conditions and the payment of a make-whole amount to noteholders and are required to offer to repurchase the Senior Notes at par following certain events, including a change of control.

Interest paid on all Company debt was $7.4 million and $8.0 million for the three months ended March 28, 2020 and March 30, 2019, respectively.

9. Fair Value of Assets and Liabilities

For assets and liabilities measured at fair value on a recurring and nonrecurring basis, a three-level hierarchy of measurements based upon observable and unobservable inputs is used to arrive at fair value. Observable inputs are developed based on market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions about valuation based on the best information available in the circumstances. Depending on the inputs, the Company classifies each fair value measurement as follows:

Level 1—Valuations based on unadjusted quoted prices for identical assets or liabilities in active markets;

Level 2—Valuations based upon quoted prices for similar instruments, prices for identical or similar instruments in markets that are not active, or model-derived valuations, all of whose significant inputs are observable, and

Level 3—Valuations based upon one or more significant unobservable inputs.

Following is a description of the valuation methodologies used for instruments measured at fair value and their classification in the valuation hierarchy.

Cash Equivalents

Cash equivalents primarily consist of money market funds, which are held with an institution with sound credit rating and are highly liquid. The Company classified cash equivalents as Level 1 and are valued at cost which approximates fair value.

Investments in Equity Securities

Investments in equity securities listed on a national market or exchange are valued at the last sales price and classified within Level 1 of the valuation hierarchy and recorded in investments and other assets.

The Company has certain convertible debt and convertible preferred stock investments that are accounted for under the cost method reflected in other assets in the Condensed Consolidated Balance Sheets. During the three months ended March 30, 2019, the Company recorded impairment charges of $2.8 million in Other expense (income), net in the Condensed Consolidated Statements of Net Income to adjust these certain investments to their estimated fair value. As of March 28, 2020 and December 28, 2019, the balances of these investments were $0.4 million. The fair value of these investments are measured on a nonrecurring basis and determined to be Level 3 under the fair value hierarchy. The Company's accounting and finance management determines the valuation policies and procedures for Level 3 fair value measurements and is responsible for the development and determination of unobservable inputs.

Mutual Funds

The Company has a non-qualified Supplemental Retirement and Savings Plan which provides additional retirement benefits for certain management employees and named executive officers by allowing participants to defer a portion of their annual compensation. The Company maintains accounts for participants through which participants make investment elections. The marketable securities are classified as Level 1 under the fair value hierarchy as they are maintained in mutual funds with readily determinable fair value and recorded in other assets.

There were no changes during the quarter ended March 28, 2020 to the Company’s valuation techniques used to measure asset and liability fair values on a recurring basis. On October 30, 2019, the Company entered a foreign currency exchange forward contract to mitigate the currency fluctuation risk between the Chinese renminbi and U.S. dollar. The foreign currency contract was not designated as a hedge instrument and was marked to market on a monthly basis. The notional value of the forward contracts at December 28, 2019 was $16.0 million and expires on May 5, 2020. On March 23, 2020, the Company unwound the foreign currency exchange forward contract entered on October 30, 2019 and recognized a gain of $0.2 million within Other expenses,

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net during the three months ended March 28, 2020. The fair values of the foreign currency forward contract was determined to be Level 2 under the fair value hierarchy and is valued using market exchange rates.

As of March 28, 2020 and December 28, 2019, the Company did not hold any non-financial assets or liabilities that are required to be measured at fair value on a recurring basis.

The following table presents assets measured at fair value by classification within the fair value hierarchy as of March 28, 2020:

	Fair Value Measurements Using
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Cash Equivalents	$	198,221	$	—	$	—	$	198,221
Investments in equity securities	10,529		—		—		10,529
Mutual funds	8,769		—		—		8,769

The following table presents assets measured at fair value by classification within the fair value hierarchy as of December 28, 2019: 

	Fair Value Measurements Using
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Cash Equivalents	$	118,999	$	—	$	—	$	118,999
Investments in equity securities	12,969		—		—		12,969
Mutual funds	10,464		—		—		10,464

In addition to the methods and assumptions used for the financial instruments recorded at fair value as discussed above, the following methods and assumptions are used to estimate the fair value of other financial instruments that are not marked to market on a recurring basis. The Company’s other financial instruments include cash and cash equivalents, short-term investments, accounts receivable and its long-term debt. Due to their short-term maturity, the carrying amounts of cash and cash equivalents, short-term investments and accounts receivable approximate their fair values. The Company’s revolving and term loan debt facilities’ fair values approximate book value at March 28, 2020 and December 28, 2019, as the rates on these borrowings are variable in nature.

The carrying value and estimated fair values of the Company’s Euro Senior Notes, Series A and Series B and USD Senior Notes, Series A and Series B, as of March 28, 2020 and December 28, 2019 were as follows:

	March 28, 2020				December 28, 2019
(in thousands)	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Euro Senior Notes, Series A due 2023	$	128,316	$	121,124	$	129,808	$	131,710
Euro Senior Notes, Series B due 2028	104,189		94,743		105,400		110,336
USD Senior Notes, Series A due 2022	25,000		24,681		25,000		25,054
USD Senior Notes, Series B due 2027	100,000		97,097		100,000		102,548
USD Senior Notes, Series A due 2025	50,000		48,921		50,000		50,775
USD Senior Notes, Series B due 2030	125,000		118,648		125,000		127,701

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The Company recognized impairment charges of $1.9 million for the land and building and $0.3 million for a certain patent as a result of the Company’s announcement to consolidate a manufacturing facility within the Industrial segment. See Note 7, Restructuring, Impairment and Other Charges, for further discussion. The fair value of the land and building was determined to be Level 3 under the fair value hierarchy and was valued using a real estate appraisal.

10. Benefit Plans

The Company has company-sponsored defined benefit pension plans covering employees in the U.K., Germany, the Philippines, China, Japan, Mexico, Italy and France. The amount of the retirement benefits provided under the plans is based on years of service and final average pay.

The Company recognizes interest cost, expected return on plan assets, and amortization of prior service, net within Other expense (income), net in the Condensed Consolidated Statements of Net Income. The components of net periodic benefit cost for the three months ended March 28, 2020 and March 30, 2019 were as follows: 

	For the Three Months Ended
(in thousands)	March 28, 2020			March 30, 2019
Components of net periodic benefit cost:
Service cost	$	618		$	500
Interest cost	658			784
Expected return on plan assets	(727		)	(790		)
Amortization of prior service and net actuarial loss	145			62
Net periodic benefit cost	$	694		$	556

The Company expects to make approximately $2.3 million of cash contributions to its pension plans in 2020.

The Company also sponsors certain post-employment plans in foreign countries and other statutory benefit plans. For the three months ended March 28, 2020 and March 30, 2019, the Company recorded $0.5 million and $0.2 million expense, respectively, in Cost of Sales and Other expense (income), net within the Condensed Consolidated Statements of Net Income. For three months ended March 28, 2020, the pre-tax amounts recognized in other comprehensive income (loss) as components of net periodic benefit costs for these plans were $0.2 million.

On April 7, 2020, the Company entered into a definitive agreement to purchase a group annuity contract, under which an insurance company will be required to pay and administer pension payments to certain of the Company’s UK pension plan participants, or their designated beneficiaries, who have been receiving pension payments. The purchase of this group annuity contract will reduce the Company’s outstanding pension benefit obligation by approximately $36 million, representing approximately 30% of the total obligations of the Company’s qualified pension plans, and will be funded with pension plan assets and additional cash on hand. In connection with this transaction, the Company will record a one-time non-cash settlement charge in the second half of 2021 currently estimated between $18 million and $22 million, reflecting the accelerated recognition of a portion of unamortized actuarial losses in the plan. The actual settlement charge could differ from this estimate due to final data and plan wind-up expenses.

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11. Other Comprehensive Income (Loss)

Changes in other comprehensive (loss) income by component were as follows:

(in thousands)	Three Months Ended March 28, 2020									Three Months Ended March 30, 2019
	Pre-tax			Tax			Net of Tax			Pre-tax			Tax			Net of Tax
Defined benefit pension plan adjustments	$	555		$	(6	)	$	561		$	(78	)	$	(29	)	$	(49	)
Foreign currency translation adjustments	(15,540		)	—			(15,540		)	8,122			—			8,122
Total change in other comprehensive income (loss)	$	(14,985	)	$	(6	)	$	(14,979	)	$	8,044		$	(29	)	$	8,073

The following tables set forth the changes in accumulated other comprehensive (loss) income by component for the three months ended March 28, 2020 and March 30, 2019:

(in thousands)	Pension and postretirement liability and reclassification adjustments			Foreign currency translation adjustment			Accumulated other comprehensive income (loss)
Balance at December 28, 2019	$	(18,046	)	$	(88,777	)	$	(106,823	)
Activity in the period	561			(15,540		)	(14,979		)
Balance at March 28, 2020	$	(17,485	)	$	(104,317	)	$	(121,802	)

(in thousands)	Pension and postretirement liability and reclassification adjustments			Foreign currency translation adjustment			Accumulated other comprehensive income (loss)
Balance at December 29, 2018	$	(9,959	)	$	(87,965	)	$	(97,924	)
Activity in the period	(49		)	8,122			8,073
Balance at March 30, 2019	$	(10,008	)	$	(79,843	)	$	(89,851	)

Amounts reclassified from accumulated other comprehensive (loss) income to earnings for the three months ended March 28, 2020 and March 30, 2019 were as follows:

	Three Months Ended
(in thousands)	March 28, 2020		March 30, 2019
Pension and Postemployment plans:
Amortization of prior service and net actuarial loss	$	345	$	62

The Company recognizes the amortization of prior service costs in Other (expense) income, net within the Condensed Consolidated Statements of Net Income.

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12. Income Taxes

The effective tax rate for the three months ended March 28, 2020 was 30.6% compared to the effective tax rate for the three months ended March 30, 2019 of 20.3%. The effective tax rate for the 2020 period is higher than the effective tax rate for the 2019 comparable period primarily due to a reduction in the forecasted income earned in lower tax jurisdictions in 2020 driven by the uncertainty resulting from the impact of COVID-19. The effective tax rate for the 2020 period is higher than the applicable U.S. statutory tax rate primarily due to the forecasted impact of non-U.S. losses and expenses with no tax benefit and the U.S. GILTI tax provisions (in the 2019 period the impact of these items was more than offset by the impact of income earned in lower tax jurisdictions).

13. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share: 

	Three Months Ended
(in thousands, except per share amounts)	March 28, 2020		March 30, 2019
Numerator:
Net income as reported	$	24,644	$	36,989
Denominator:
Weighted average shares outstanding
Basic	24,393		24,717
Effect of dilutive securities	185		292
Diluted	24,578		25,009
Earnings Per Share:
Basic earnings per share	$	1.01	$	1.50
Diluted earnings per share	$	1.00	$	1.48

Potential shares of common stock relating to stock options excluded from the earnings per share calculation because their effect would be anti-dilutive were 153,836 and 77,047 for the three months ended March 28, 2020 and March 30, 2019, respectively.

Share Repurchase Program

The Company’s Board of Directors authorized the repurchase of up to 1,000,000 shares of the Company’s common stock under a program for the period May 1, 2018 to April 30, 2019 ("2018 program"). On April 26, 2019, the Company's Board of Directors authorized to a program to repurchase up to 1,000,000 shares of the Company's common stock for the period May 1, 2019 to April 30, 2020 ("2019 program") to replace its previous expired 2018 program. On April 23, 2020, the Company's Board of Directors authorized a new program to repurchase up to 1,000,000 shares of the Company's common stock for the period May 1, 2020 to April 30, 2021 (the "2020 program") to replace its previous expired 2019 program. The Company does not expect to repurchase shares in the near future due to the uncertainty of the impact and duration of COVID-19.

For the three months ended March 28, 2020 and March 30, 2019, the Company repurchased 175,110 and 79,916 shares of its common stock totaling $22.9 million and $13.6 million, respectively.

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14. Related Party Transactions

As a result of the Company’s acquisition of IXYS, the Company has equity ownership in various investments that are accounted for under the equity method. The following is a description of the investments and related party transactions.

Powersem GmbH: The Company owns 45% of the outstanding equity of Powersem GmbH (“Powersem”), a module manufacturer based in Germany.

EB-Tech Co., Ltd.: The Company owns approximately 19% of the outstanding equity of EB Tech Co., Ltd. (“EB Tech”), a company with expertise in radiation technology based in South Korea.

Automated Technology (Phil), Inc.: The Company owns approximately 24% of the outstanding common shares of Automated Technology (Phil), Inc. (“ATEC”), a supplier located in the Philippines that provides assembly and test services. One member of the Company's Board of Directors serves on the Board of Directors of ATEC.

	For the Three Months Ended March 28, 2020						For the Three Months Ended March 30, 2019
(in millions)	Powersem		EB Tech		ATEC		Powersem		EB Tech		ATEC
Sales to related party	$	0.4	$	—	$	—	$	0.1	$	—	$	—
Purchase material/ service from related party	0.2		—		1.8		0.8		0.1		1.5
	March 28, 2020						December 28, 2019
(in millions)	Powersem		EB Tech		ATEC		Powersem		EB Tech		ATEC
Accounts Receivable balance	$	0.1	$	—	$	—	$	—	$	—	$	—
Accounts Payable balance	0.1		—		—		0.2		—		0.1

Additionally, the Company has certain cost method investments in VTOOL Ltd. and Securepush Ltd. with a total book value of $0.4 million as of March 28, 2020 and one member of the Company’s Board of Directors is currently an investor and a director of VTOOL Ltd. and Securepush Ltd.

On April 26, 2019, the Company sold its subsidiary Microwave Technology, LLC. (“MWT”) resulting in a loss on disposal of $2.6 million reflected in Other income (expense), net in the Condensed Consolidated Statements of Net Income. The operations of MWT were included in the Electronics segment. One member of the Company’s Board of Directors is an owner of a company that purchased MWT.

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15. Segment Information

The Company and its subsidiaries design, manufacture and sell components and modules for circuit protection, power control and sensing throughout the world. The Company reports its operations by the following segments: Electronics, Automotive, and Industrial. An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, and about which separate financial information is regularly evaluated by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources. The CODM is the Company’s President and Chief Executive Officer (“CEO”). The CODM allocates resources to and assesses the performance of each operating segment using information about its revenue and operating income (loss) before interest and taxes, but does not evaluate the operating segments using discrete balance sheet information.

Sales, marketing, and research and development expenses are charged directly into each operating segment. Purchasing, logistics, customer service, finance, information technology, and human resources are shared functions that are allocated back to the three operating segments. The Company does not report inter-segment revenue because the operating segments do not record it. Certain expenses, determined by the CODM to be strategic in nature and not directly related to segments' current results, are not allocated but identified as “Other”. Additionally, the Company does not allocate interest and other income, interest expense, or taxes to operating segments. These costs are not allocated to the segments, as management excludes such costs when assessing the performance of the segments. Although the CODM uses operating income (loss) to evaluate the segments, operating costs included in one segment may benefit other segments. Except as discussed above, the accounting policies for segment reporting are the same as for the Company as a whole.

• Electronics Segment: Consists of one of the broadest product offerings in the industry, including fuses and fuse accessories,

positive temperature coefficient (“PTC”) resettable fuses, polymer electrostatic discharge (“ESD”) suppressors, varistors,

reed switch based magnetic sensing, gas discharge tubes; semiconductor products such as discrete transient voltage

suppressor (“TVS”) diodes, TVS diode arrays, protection and switching thyristors, metal-oxide-semiconductor field effect

transistors (“MOSFETs”) and silicon carbide diodes; and insulated gate bipolar transistors (“IGBT”) technologies.

The segment covers a broad range of end markets, including industrial and automotive electronics, electric vehicle and related infrastructure, data and telecommunications, medical devices, alternative energy, consumer electronics and white goods.

• Automotive Segment: Consists of a wide range of circuit protection, power control and sensing technologies for global original equipment manufacturers (“OEMs”), Tier-I suppliers and parts distributors in passenger car, heavy duty truck, off-road vehicles, material handling, agricultural, construction and other commercial vehicle end markets. Passenger car fuse products include fuses and fuse accessories for internal combustion engine vehicles and hybrid and electric vehicles including blade fuses, battery cable protectors, resettable fuses, high-current fuses, and high-voltage fuses. Commercial vehicle products include fuses, switches, relays, and power distribution modules for the commercial vehicle industry. Automotive sensor products include a wide range of automotive and commercial vehicle products designed to monitor the passenger compartment occupants, safety and environment as well as the vehicle’s powertrain.

• Industrial Segment: Consists of power fuses, protection relays and controls and other circuit protection products for use in various industrial applications such as oil, gas, mining, alternative energy, electric vehicle infrastructure, non-residential construction, HVAC systems, elevators and other industrial equipment.

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Segment information is summarized as follows: 

	Three Months Ended
(in thousands)	March 28, 2020			March 30, 2019
Net sales
Electronics	$	214,189		$	265,394
Automotive	104,770			113,483
Industrial	27,137			26,623
Total net sales	$	346,096		$	405,500
Depreciation and amortization
Electronics	$	15,531		$	15,342
Automotive	7,187			6,877
Industrial	1,084			1,060
Total depreciation and amortization	$	23,802		$	23,279
Operating income (loss)
Electronics	$	32,272		$	49,037
Automotive	14,116			13,200
Industrial	3,534			3,505
Other(a)	(5,172		)	(5,069		)
Total operating income	44,750			60,673
Interest expense	5,418			5,686
Foreign exchange loss	2,584			4,243
Other expense, net	1,249			4,305
Income before income taxes	$	35,499		$	46,439

(a) Included in “Other” Operating income (loss) for the 2020 first quarter is $1.2 million of acquisition-related and integration charges related to the IXYS acquisition and other contemplated acquisitions. In addition, there were $4.0 million of restructuring, impairment and other charges, primarily related to impairment charges of $2.2 million associated with the announced consolidation of a manufacturing facility within the Industrial segment and $1.7 million of employee termination costs and other restructuring charges. See Note 7, Restructuring, Impairment and Other Charges, for further discussion.

Included in "Other" Operating income (loss) for the first quarter of 2019 is $2.4 million of acquisition integration charges primarily related to the IXYS acquisition. In addition, there were $2.7 million of restructuring charges primarily related to employee termination costs.

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The Company’s net sales by country were as follows:

	Three Months Ended
(in thousands)	March 28, 2020		March 30, 2019
Net sales
United States	$	102,910	$	119,528
China	86,015		106,866
Other countries(a)	157,171		179,106
Total net sales	$	346,096	$	405,500

 The Company’s long-lived assets by country were as follows:

(in thousands)	March 28, 2020		December 28, 2019
Long-lived assets
United States	$	54,870	$	58,081
China	83,830		88,306
Mexico	69,664		73,096
Germany	35,483		36,025
Philippines	55,347		51,738
Other countries(a)	35,635		37,371
Total long-lived assets	$	334,829	$	344,617

The Company’s additions to long-lived assets by country were as follows:

	Three Months Ended
(in thousands)	March 28, 2020		March 30, 2019
Additions to long-lived assets
United States	$	580	$	905
China	1,657		1,225
Mexico	2,592		5,484
Germany	753		598
Philippines	3,218		5,229
Other countries(a)	2,508		635
Total additions to long-lived assets	$	11,308	$	14,076

(a) Each country included in other countries is less than 10% of net sales.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Cautionary Statement Regarding Forward-Looking Statements Under the Private Securities Litigation Reform Act of 1995 (“PSLRA”).

Certain statements in this section and other parts of this Quarterly Report on Form 10-Q may constitute "forward-looking statements" within the meaning of the federal securities laws and are entitled to the safe-harbor provisions of the PSLRA. These statements include statements regarding the Company’s future performance, as well as management's expectations, beliefs, intentions, plans, estimates or projections relating to the future. Such statements can be identified by the use of forward-looking terminology such as "believes," "expects," "may," "estimates," "will," "should," "plans" or "anticipates" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy, although not all forward-looking statements contain such terms. The Company cautions that forward-looking statements, which speak only as of the date they are made, are subject to risks, uncertainties and other factors, and actual results and outcomes may differ materially from those indicated or implied by the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, risks and uncertainties relating to general economic conditions; the severity and duration of the coronavirus disease 2019 ("COVID-19") pandemic and the measures taken in response thereto and the effects of those items on the Company’s business; product demand and market acceptance; economic conditions; the impact of competitive products and pricing; product quality problems or product recalls; capacity and supply difficulties or constraints; coal mining exposures reserves; failure of an indemnification for environmental liability; exchange rate fluctuations; commodity price fluctuations; the effect of the Company's accounting policies; labor disputes; restructuring costs in excess of expectations; pension plan asset returns less than assumed; uncertainties related to political or regulatory changes; integration of acquisitions may not be achieved in a timely manner, or at all; and other risks that may be detailed in Item 1A. "Risk Factors" of this Quarterly Report on Form 10-Q for the quarter ended March 28, 2020, the Company's Annual Report on Form 10-K for the year ended December 28, 2019, and the Company's other fillings and submissions with the Securities and Exchange Commission. The Company does not undertake any obligation to update or revise any forward-looking statements to reflect future events or circumstances, new information or otherwise.

This report, including the Management’s Discussion and Analysis of Financial Condition and Results of Operations, should be read in conjunction with information provided in the consolidated financial statements and the related Notes thereto appearing in the Company's Annual Report on Form 10-K for the year ended December 28, 2019. 

Management’s Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is designed to provide information that is supplemental to, and should be read together with, the consolidated financial statements and the accompanying notes. Information in MD&A is intended to assist the reader in obtaining an understanding of (i) the consolidated financial statements, (ii) the changes in certain key items within those financial statements from year-to-year, (iii) the primary factors that contributed to those changes, and (iv) any changes in known trends or uncertainties that we are aware of and that may have a material effect on future performance. In addition, MD&A provides information about the Company’s segments and how the results of those segments impact the results of operations and financial condition as a whole.

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Executive Overview

Founded in 1927, Littelfuse is a global manufacturer of leading technologies in circuit protection, power control and sensing.

Serving over 100,000 end customers, the Company’s products are found in automotive and commercial vehicles, industrial

applications, data and telecommunications, medical devices, consumer electronics and appliances. With its broad product portfolio of fuses, semiconductors, polymers, ceramics, relays and sensors, and extensive global infrastructure, the Company’s worldwide associates partner with its customers to design, manufacture and deliver innovative, high-quality solutions for a safer, greener and increasingly connected world.

The Company maintains a network of global laboratories and engineering centers that develop new products and product enhancements, provide customer application support and test products for safety, reliability, and regulatory compliance. The Company conducts its business through three reportable segments: Electronics, Automotive, and Industrial. Within these segments, the Company designs, manufactures and sells components and modules for circuit protection, power control and sensing products throughout the world. The circuit protection products protect against electrostatic discharge, power surges, short circuits, voltage spikes and other harmful occurrences; our power control products safely and efficiently control power and improve productivity and our sensor products are used to identify and detect temperature, proximity, flow speed and fluid level in various applications.

Executive Summary

For the first quarter of 2020, the Company recognized net sales of $346.1 million compared to $405.5 million in the first quarter of 2019 representing a decrease of $59.4 million, or 14.6%. The decrease was primarily driven by lower volume in the Electronics segment due to electronics distribution partners and end customers reducing excess inventories, lower volume in the Automotive segment, the impact of COVID-19 and $3.3 million or 0.8% of unfavorable changes in foreign exchange rates, partially offset by higher volume in the Industrial segment. The Company recognized net income of $24.6 million, or $1.00 per diluted share, in the first quarter of 2020 compared to net income of $37.0 million, or $1.48 per diluted share in the first quarter of 2019. The decrease in net income was primarily due to lower operating income in the Electronics segment.

The Company continues to take actions to improve its cost structure. The Company expects to realize cost savings from the restructuring activities taken during 2019 and 2020, including the reorganization of certain manufacturing, selling and administrative functions across all segments and the consolidation of a manufacturing facility within the Industrial Segment.

Net cash provided by operating activities was $45.3 million for the three months ended March 28, 2020 as compared to $30.9 million for the three months ended March 30, 2019. The increase in net cash provided by operating activities was primarily due to lower annual incentive payments and inventory levels, partially offset by lower earnings.

During the three months ended March 28, 2020 and March 30, 2019, the Company repurchased 175,110 and 79,916 shares of its common stock totaling $22.9 million and $13.6 million, respectively.

On March 25, 2020, the company borrowed $100.0 million from its current revolving credit facility to preserve financial flexibility and enhance liquidity, given the increasing levels of uncertainty related to COVID-19. On April 3, 2020, the Company amended the existing credit agreement to effect certain changes, including, among others: (i) eliminating the $200.0 million unsecured term loan credit facility, the remaining outstanding balance of which was repaid in full on April 3, 2020 through the revolving credit facility; (ii) making certain financial and non-financial covenants less restrictive on the Company; (iii) modifying performance-based interest rate margins and undrawn fees; and (iv) extending the maturity date to April 3, 2025. The amended credit agreement also allows the Company to increase the size of the revolving credit facility or enter into one or more tranches of term loans if there is no event of default and the Company is in compliance with certain financial covenants.  The current balance under the facility is $240.0 million as of April 3, 2020.

On April 7, 2020, the Company entered into a definitive agreement to purchase a group annuity contract, under which an insurance company will be required to pay and administer pension payments to certain of the Company’s UK pension plan participants, or their designated beneficiaries, who have been receiving pension payments. The purchase of this group annuity contract will reduce the Company’s outstanding pension benefit obligation by approximately $36 million, representing approximately 30% of the total obligations of the Company’s qualified pension plans, and will be funded with pension plan assets and additional cash on hand. In connection with this transaction, the Company will record a one-time non-cash settlement charge in the second half of 2021 currently estimated between $18 million and $22 million, reflecting the accelerated recognition of a portion of unamortized actuarial losses in the plan. The actual settlement charge could differ from this estimate due to final data and plan wind-up expenses.

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Impact of COVID-19 on Business

The global emergence of COVID-19 impacted the Company’s 2020 first quarter results. The Electronics segment had reduced sales volume driven by production disruption from temporary closures of manufacturing facilities in China and the Philippines as a result of government directives. The Automotive segment had reduced sales volume driven by a reduction in customer demand late in the quarter. Additionally, the Company incurred incremental costs of approximately $2.5 million primarily due to higher costs for freight and protective supplies, as well as costs related to the above temporary plant closures.

The future impacts of COVID-19 on our business are currently unknown. The Company’s priorities are to focus on our employees, customers and long-term financial health of the company. In an effort to protect the health and safety of our employees, the Company took numerous proactive, aggressive actions from the earliest signs of the outbreak in China, adopting performing temperature checks in many locations, procuring and distributing proper PPE (personal protective equipment) to employees and their families in many locations, following strict hand and respiratory hygiene, sanitization and cleaning protocols and outlining social distancing policies at our locations around the world. The Company is also limiting the number of employees attending meetings in person, reducing the number of people in our sites at any one time, implementing working from home, and suspending employee travel.

In an effort to contain COVID-19 or slow its spread, governments around the world have also enacted various measures, including orders to close all businesses not deemed “essential,” isolate residents to their homes or places of residence, and practice social distancing when engaging in essential activities. These government measures have disrupted certain of our operating locations in Asia, Europe and Mexico. All of our China manufacturing locations that were temporarily closed in February have returned operations to normal capacity levels, while certain operations in Europe, the Philippines and Mexico continue to be temporarily closed or operating at reduced capacity levels.

The Company continues to focus on our customers and to support their critical needs. We continue to work with customers to provide necessary products, many of which are considered essential, including healthcare and medical devices, transportation, communication and energy infrastructure.

The Company has taken cost containment initiatives to help offset the impact of lower demand and the business disruption created by COVID-19. During the quarter, the Company suspended annual wage increases and its 2020 annual cash incentive program. The Company also reduced salaries of the CEO and executive leadership team, and reduced cash compensation of its board of directors. The Company continues to develop and execute contingency plans to manage our business performance within this uncertain environment.

The Company anticipates that the global health crisis caused by COVID-19 will negatively impact its business activity. It is currently difficult to estimate the magnitude and duration of the COVID-19 disruption and its impact on our employees, customers, suppliers and vendors. The Company will continue to actively monitor the situation and may take further actions altering our business operations that we determine are in the best interests of our employees, customers, partners, suppliers, and other stakeholders, or as required by federal, state, or local authorities. It is not clear what the potential effects any such alterations or modifications may have on our business and operations, including the effects on our customers, employees, and prospects, or on our financial results for the remainder of fiscal 2020.

Risks Related to Market Conditions

The Company performs its annual goodwill impairment tests as of September 30, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. Since September 30, 2019, the date of the Company’s last annual review for impairment, the market value of the Company’s stock has declined. Management has considered the resulting decline in the Company’s market capitalization in performing its assessment of whether an interim impairment review was required for any reporting units. As part of this assessment, management analyzed the potential declines in value of individual reporting units based on each reporting unit’s operating results for the three months ended March 28, 2020 compared to expected results as of September 30, 2019. In addition, management considered how other key assumptions, including discount rates, expected profitability and long-term growth rates used in the last fiscal year’s impairment analysis, could be impacted by recent market conditions and economic events. Based on this interim assessment, management concluded that as of March 28, 2020, no events or changes in circumstances indicated that it was more likely than not that the fair value for any reporting unit had declined below its carrying value. A continued global economic slowdown and further business disruption due to COVID-19 could result in changes to expectations of future financial results and key valuation assumptions. These changes could result in changes to management’s estimates of the fair value of the Company’s reporting units and could

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result in a review for impairment of goodwill prior to September 29, 2020, the Company’s next annual measurement date, and a potential corresponding impairment charge.

In particular, the automotive sensors reporting unit has experienced declines in sales due to lower automotive market car build, reduced volumes and temporary customer shut-downs due to COVID-19. In addition, the semiconductors reporting unit has experienced declines in sales due to temporary plant shut-downs and lower customer demand primarily due to COVID-19. The Company continues to evaluate the impact of COVID-19 on its future long-term expectations for these units. Further negative developments having a significant impact on the estimated fair value of these reporting units could result in future goodwill impairment charges. As of the September 30, 2019 annual goodwill impairment test, the automotive sensors and semiconductors reporting units estimated fair values exceeded its book value by approximately 40% and 42%, respectively. As of March 28, 2020, $42.2 million and $462.7 million of goodwill was allocated to the automotive sensors and semiconductors reporting units, respectively. The automotive sensors reporting unit is included within the Automotive segment and the semiconductors reporting unit is included within the Electronics segment.

While the Company has not historically had significant credit risk on accounts receivable, the impact of the COVID-19 pandemic and associated economic slowdown may increase the Company’s credit risk on accounts receivable. It is possible that the Company’s customers may experience liquidity issues which may impact the timing of the collections on receivables. The Company will continue to evaluate how the ongoing pandemic may impact collectability.

Results of Operations

The following table summarizes the Company’s unaudited condensed consolidated results of operations for the periods presented. The first quarter of 2020 includes $5.2 million of non-segment charges, which included $4.0 million of restructuring, impairment and other charges primarily related to impairment charges of $2.2 million associated with the announced consolidation of a manufacturing facility in the Industrial segment and employee termination costs and other restructuring charges and $1.2 million of acquisition-related and integration charges primarily related to the IXYS acquisition and other contemplated acquisitions.

The first quarter of 2019 includes $2.4 million of acquisition integration charges primarily related to the IXYS acquisition. In addition, there were $2.7 million of restructuring charges primarily related to employee termination costs.

	First Quarter
(in thousands)	2020		2019		Change			% Change
Net sales	$	346,096	$	405,500	$	(59,404	)	(14.6	)%
Gross profit	123,712		155,228		(31,516		)	(20.3	)%
Operating expenses	78,962		94,555		(15,593		)	(16.5	)%
Operating income	44,750		60,673		(15,923		)	(26.2	)%
Income before income taxes	35,499		46,439		(10,940		)	(23.6	)%
Income taxes	10,855		9,450		1,405			14.9	%
Net income	$	24,644	$	36,989	$	(12,345	)	(33.4	)%

Net Sales

Net sales decreased $59.4 million or 14.6% for the first quarter of 2020 compared to the first quarter of 2019 primarily due to lower volume across the Electronics segment from electronics distribution partners and end customers reducing excess inventories and production, and lower volume across the Automotive segment due to a decline in global auto production driven by lower global end market demand and a reduction in customer demand due to COVID-19, disruption across the Electronics and Automotive  segments due to temporary closures of manufacturing facilities resulting from government directives due to the impact of COVID-19, and $3.3 million or 0.8% of unfavorable changes in foreign exchange rates, partially offset by higher volume in the Industrial segment.

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Gross Profit

Gross profit was $123.7 million, or 35.7% of net sales, in the first quarter of 2020 compared to $155.2 million, or 38.3% of net sales, in the first quarter of 2019. The decrease in gross profit is primarily due to lower volumes across the Electronics segment, additional costs associated with higher freight, supplies and other costs associated with government-directed plant shutdowns and supply chain constraints due to the impact of COVID-19, and unfavorable price and product mix.

Operating Expenses

Total operating expenses were $79.0 million, or 22.8% of net sales, for the first quarter of 2020 compared to $94.6 million, or 23.3% of net sales, for the first quarter of 2019. The decrease in operating expenses of $15.6 million is primarily due to global cost saving initiatives across all segments, lower incentive compensation, lower sales commissions and travel expenses due to COVID-19, and lower acquisition-related and integration charges of $1.2 million, partially offset by the impairment charges of $2.2 million related to the Company’s announcement to consolidate a manufacturing facility within the Industrial segment.

Operating Income

Operating income was $44.8 million, a decrease of $15.9 million, or 26.2%, for the first quarter of 2020 compared to $60.7 million for the first quarter of 2019. The decrease in operating income is primarily due to lower gross margin across the Electronics segment, partially offset by the lower operating expenses noted above. Operating margins decreased from 15.0% in the first quarter of 2019 to 12.9% in the first quarter of 2020 driven by the factors mentioned above.

Income Before Income Taxes

Income before income taxes was $35.5 million, or 10.3% of net sales, for the first quarter of 2020 compared to $46.4 million, or 11.5% of net sales, for the first quarter of 2019. The decline in income before income taxes was primarily driven be lower operating income discussed above. In addition, income before taxes was primarily impacted by impairment charges of $2.8 million for certain other investments and a $2.6 million loss on the disposal of a business within the Electronics segment during three months ended March 28, 2019, lower foreign exchange losses of $1.7 million during the three months ended March 28, 2020 compared to the three months ended March 30, 2019 and higher interest income of $0.9 million during three months ended March 28, 2020 compared to the three months ended March 30, 2019, partially offset by unrealized investment losses of $2.3 million associated with our equity investments during the three months ended March 28, 2020 compared to unrealized gains of $0.4 million during the three months ended March 30, 2019.

Income Taxes

Income tax expense was $10.9 million, or an effective tax rate of 30.6%, for the first quarter of 2020 compared to income tax expense of $9.5 million, or an effective tax rate of 20.3%, for the first quarter of 2019. The effective tax rate for the 2020 period is higher than the effective tax rate for the 2019 comparable period primarily due to a reduction in the forecasted income earned in lower tax jurisdictions in 2020 driven by the uncertainty resulting from the impact of COVID-19. The effective tax rate for the 2020 period is higher than the applicable U.S. statutory tax rate primarily due to the forecasted impact of non-U.S. losses and expenses with no tax benefit and the U.S. GILTI tax provisions (in the 2019 period the impact of these items was more than offset by the impact of income earned in lower tax jurisdictions).

Segment Results of Operations

The Company reports its operations by the following segments: Electronics, Automotive and Industrial. Segment information is described more fully in Note 15, Segment Information, of the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report.

The following table is a summary of the Company’s net sales by segment:

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	First Quarter
(in thousands)	2020		2019		Change			% Change
Electronics	$	214,189	$	265,394	$	(51,205	)	(19.3	)%
Automotive	104,770		113,483		(8,713		)	(7.7	)%
Industrial	27,137		26,623		514			1.9	%
Total	$	346,096	$	405,500	$	(59,404	)	(14.6	)%

Electronics Segment

Net sales decreased $51.2 million, or 19.3%, in the first quarter of 2020 compared to the first quarter of 2019 primarily due to lower volume across all businesses from electronics distribution partners and end customers reducing excess inventories, production disruption from temporary closures of manufacturing facilities resulting from government directives due to the impact of COVID-19, and unfavorable changes in foreign exchange rates of $1.7 million.

Automotive Segment

Net sales decreased $8.7 million, or 7.7%, in the first quarter of 2020 compared to the first quarter of 2019 due to decreased volume across all businesses from a decline in global auto production, a reduction in customer demand late in the quarter due to the impact of COVID-19, and unfavorable changes in foreign exchange rates of $1.5 million.

Industrial Segment

Net sales increased by $0.5 million, or 1.9%, in the first quarter of 2020 compared to the first quarter of 2019 primarily due to higher volume across all businesses, partially offset by unfavorable changes in foreign exchange rates of $0.1 million.

Geographic Net Sales Information

Net sales by geography represent net sales to customer or distributor locations. The following table is a summary of the Company’s net sales by geography:

	First Quarter
(in thousands)	2020		2019		Change			% Change
Asia-Pacific	$	140,873	$	172,781	$	(31,908	)	(18.5	)%
Americas	120,501		138,034		(17,533		)	(12.7	)%
Europe	84,722		94,685		(9,963		)	(10.5	)%
Total	$	346,096	$	405,500	$	(59,404	)	(14.6	)%

Asia-Pacific 

Net sales decreased $31.9 million, or 18.5%, in the first quarter of 2020 compared to the first quarter of 2019. The decrease in net sales was primarily due to lower volume across all businesses within the Electronics segment, lower volume in passenger car products and automotive sensor businesses within the Automotive segment, and unfavorable changes in foreign exchange rates of $0.9 million.

Americas

Net sales decreased $17.5 million, or 12.7%, in the first quarter of 2020 compared to the first quarter of 2019 primarily due to lower volume across all businesses within the Electronics segment, lower volume in automotive sensor and commercial vehicle businesses in the Automotive segment, and unfavorable changes in foreign exchange rates of $0.1 million, partially offset by higher volume across all businesses within the Industrial segment.

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Europe 

Net sales decreased $10.0 million, or 10.5%, in the first quarter of 2020 compared to the first quarter of 2019. The decrease in net sales was primarily due to lower volume across all businesses within the Electronics segment, lower volume in passenger car products and commercial vehicle businesses within the Automotive segment and unfavorable changes in foreign exchange rates of $2.3 million, partially offset by higher volume in automotive sensor business within the Electronics segment.

Liquidity and Capital Resources 

The Company has historically supported its liquidity needs through cash flows from operations. Management expects that the Company’s (i) current level of cash, cash equivalents, and marketable securities, (ii) current and forecasted cash flows from operations, (iii) availability under existing funding arrangements, and (iv) access to capital in the capital markets will provide sufficient funds to support the Company’s operations, capital expenditures, investments, and debt obligations on both a short-term and long-term basis.

Cash and cash equivalents were $620.6 million as of March 28, 2020, an increase of $89.4 million as compared to December 28, 2019. As of March 28, 2020, $310.1 million of the Company's $620.6 million cash and cash equivalents was held by U.S. subsidiaries.

Revolving Credit Facility/Term Loan

On March 4, 2016, the Company entered into a five-year credit agreement (“Credit Agreement”) with a group of lenders for up to $700.0 million. The Credit Agreement consisted of an unsecured revolving credit facility (“Revolving Credit Facility”) of $575.0 million and an unsecured term loan credit facility (“Term Loan”) of up to $125.0 million. In addition, the Company had the ability, from time to time, to increase the size of the Revolving Credit Facility and the Term Loan by up to an additional $150.0 million, in the aggregate, in each case in minimum increments of $25.0 million, subject to certain conditions and the agreement of participating lenders.

On October 13, 2017, the Company amended the Credit Agreement to increase the Revolving Credit Facility from $575.0 million to $700.0 million and increase the Term Loan from $125.0 million to $200.0 million and to extend the expiration date from March 4, 2021 to October 13, 2022. The Credit Agreement also included the option for the Company to increase the size of the Revolving Credit Facility and the Term Loan by up to an additional $300.0 million, in the aggregate, subject to the satisfaction of certain conditions set forth in the Credit Agreement. Term Loans could be made in up to two advances. The first advance of $125.0 million occurred on October 13, 2017 and the second advance of $75.0 million occurred on January 16, 2018. For the Term Loan, the Company was required to make quarterly principal payments of 1.25% of the original term loan ($2.5 million quarterly) through maturity, with the remaining balance due on October 13, 2022. The Company paid $2.5 million of principal payments on the term loan during the three months ended March 28, 2020.

Outstanding borrowings under the Credit Agreement bore interest, at the Company’s option, at either LIBOR, fixed for interest periods of one, two, three or six-month periods, plus 1.00% to 2.00%, or at the bank’s Base Rate, as defined, plus 0.00% to 1.00%, based upon the Company’s Consolidated Leverage Ratio, as defined. The Company was also required to pay commitment fees on unused portions of the credit agreement ranging from 0.15% to 0.25%, based on the Consolidated Leverage Ratio, as defined in the agreement. The Credit Agreement included representations, covenants and events of default that are customary for financing transactions of this nature. The effective interest rate on outstanding borrowings under the credit facility was 2.47% at March 28, 2020.

On March 25, 2020, the company borrowed $100.0 million from its current revolving credit facility to preserve financial flexibility and enhance liquidity, given the increasing levels of uncertainty related to COVID-19.

As of March 28, 2020, the Company had no amounts outstanding in letters of credit and had available $219.8 million of borrowing capacity under the Revolving Credit Facility based on financial covenants.

On April 3, 2020, the Company amended the Credit Agreement to effect certain changes, including, among others: (i) eliminating the $200.0 million unsecured term loan credit facility, the remaining outstanding balance of which was repaid in full on April 3, 2020 through the revolving credit facility; (ii) making certain financial and non-financial covenants less restrictive on the Company; (iii) modifying performance-based interest rate margins and undrawn fees; and (iv) extending the maturity date to April 3, 2025. The amended Credit Agreement also allows the Company to increase the size of the revolving credit facility or enter into one or

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more tranches of term loans if there is no event of default and the Company is in compliance with certain financial covenants.  The balance under the facility is $240.0 million as of April 3, 2020.

Further information regarding the Company’s credit agreement is provided in Note 8, Debt, of the Notes to the Condensed Consolidated Financial Statements included in this Quarterly Report.

Senior Notes

On December 8, 2016, the Company entered into a Note Purchase Agreement, pursuant to which the Company issued and sold €212 million aggregate principal amount of senior notes in two series. The funding date for the Euro denominated senior notes occurred on December 8, 2016 for €117 million in aggregate amount of 1.14% Senior Notes, Series A, due December 8, 2023 (“Euro Senior Notes, Series A due 2023”), and €95 million in aggregate amount of 1.83% Senior Notes, Series B due December 8, 2028 (“Euro Senior Notes, Series B due 2028”) (together, the “Euro Senior Notes”). Interest on the Euro Senior Notes is payable semiannually on June 8 and December 8, commencing June 8, 2017.

On December 8, 2016, the Company entered into a Note Purchase Agreement, pursuant to which the Company issued and sold $125 million aggregate principal amount of senior notes in two series. On February 15, 2017, $25 million in aggregate principal amount of 3.03% Senior Notes, Series A, due February 15, 2022 (“U.S. Senior Notes, Series A due 2022”), and $100 million in aggregate principal amount of 3.74% Senior Notes, Series B, due February 15, 2027 (“U.S. Senior Notes, Series B due 2027”) (together, the “U.S. Senior Notes due 2022 and 2027”) were funded. Interest on the U.S. Senior Notes due 2022 and 2027 is payable semiannually on February 15 and August 15, commencing August 15, 2017.

On November 15, 2017, the Company entered into a Note Purchase Agreement pursuant to which the Company issued and sold $175 million in aggregate principal amount of senior notes in two series. On January 16, 2018, $50 million aggregate principal amount of 3.48% Senior Notes, Series A, due February 15, 2025 (“U.S. Senior Notes, Series A due 2025”) and $125 million in aggregate principal amount of 3.78% Senior Notes, Series B, due February 15, 2030 (“U.S. Senior Notes, Series B due 2030”) (together the “U.S. Senior Notes due 2025 and 2030” and with the Euro Senior Notes and the U.S. Senior Notes due 2022 and 2027, the “Senior Notes”) were funded. Interest on the U.S. Senior Notes due 2025 and 2030 is payable semiannually on February 15 and August 15, commencing on August 15, 2018. Further information regarding the Company’s Senior Notes is provided in Note 8, Debt, of the Notes to the Condensed Consolidated Financial Statements included in this Quarterly Report.

Debt Covenants

The Company was in compliance with all covenants under the Credit Agreement and Senior Notes as of March 28, 2020 and currently expects to remain in compliance based on management’s estimates of operating and financial results for 2020. As of March 28, 2020, the Company met all the conditions required to borrow under the Credit Agreement and management expects the Company to continue to meet the applicable borrowing conditions.  The ultimate magnitude of COVID-19, including the extent of its impact on our financial and operational results, which could be material, will be determined by the length of time that the pandemic continues, its effect on the demand for our products, as well as the effect of governmental regulations imposed in response to the pandemic. While we cannot at this time predict the impact of the COVID-19, it could have a material negative impact on our business, financial condition, results of operations and future cash flows which could impact the Company’s ability to comply with debt covenants in the future.

Dividends

During the first quarter of 2020 the Company paid quarterly dividends of $11.7 million to the shareholders. On April 23, 2020, the Board of Directors of the Company declared a quarterly cash dividend of $0.48 per share, payable on June 4, 2020 to stockholders of record as of May 21, 2020. Future determinations regarding the declaration and payment of dividends will be at the discretion of our board of directors and will depend on then-existing conditions, including our results of operations, payout ratio, capital requirements, financial condition, prospects and other factors that our board of directors may deem relevant.

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Cash Flow Overview

	First three Months
(in thousands)	2020			2019
Net cash provided by operating activities	$	45,279		$	30,919
Net cash used in investing activities	(16,536		)	(14,244		)
Net cash provided by (used in) financing activities	65,804			(31,333		)
Effect of exchange rate changes on cash and cash equivalents	(5,111		)	1,539
Increase (decrease) in cash and cash equivalents	89,436			(13,119		)
Cash and cash equivalents at beginning of period	531,139			489,733
Cash and cash equivalents at end of period	$	620,575		$	476,614

Cash Flow from Operating Activities

Operating cash inflows are largely attributable to sales of the Company’s products. Operating cash outflows are largely attributable to recurring expenditures for raw materials, labor, rent, interest, taxes and other operating activities.

Net cash provided by operating activities was $45.3 million for the three months ended March 28, 2020, compared to $30.9 million during the three months ended March 30, 2019. The increase in net cash provided by operating activities was primarily due to lower annual incentive payments and inventory levels, partially offset by lower earnings.

Cash Flow from Investing Activities

Net cash used in investing activities was $16.5 million for the three months ended March 28, 2020 compared to $14.2 million during the three months ended March 30, 2019. Capital expenditures were $16.6 million, representing an increase of $2.5 million compared to 2019. 

Cash Flow from Financing Activities

Net cash provided by financing activities was $65.8 million for the three months ended March 28, 2020 compared to net cash used in financing activities of $31.3 million for the three months ended March 30, 2019. During the three months ended March 28, 2020, the company borrowed $100.0 million from the revolving credit facility to preserve financial flexibility and enhance liquidity, given the increasing levels of uncertainty related to COVID-19. For the three months ended March 28, 2020 and March 30, 2019, the Company repurchased 175,110 and 79,916 shares of its common stock totaling $22.9 million and $13.6 million, respectively, but made payments of $17.9 million related to settled share repurchases during the three months ended March 30, 2019. The Company made payments of $2.5 million and $5.0 million on the term loan during the three months ended March 28, 2020 and March 30, 2019, respectively. Additionally, dividends paid increased $1.1 million from $10.6 million in the three months ended March 30, 2019 to $11.7 million for the three months ended March 28, 2020.

Share Repurchase Program

The Company’s Board of Directors authorized the repurchase of up to 1,000,000 shares of the Company’s common stock under a program for the period May 1, 2018 to April 30, 2019 ("2018 program"). On April 26, 2019, the Company's Board of Directors authorized a program to repurchase up to 1,000,000 shares of the Company's common stock for the period May 1, 2019 to April 30, 2020 ("2019 program") to replace its previous expired 2018 program. On April 23, 2020, the Company's Board of Directors authorized a new program to repurchase up to 1,000,000 shares of the Company's common stock for the period May 1, 2020 to April 30, 2021 (the "2020 program") to replace its previous expired 2019 program. The Company does not expect to repurchase shares in the near future due to the uncertainty of the impact and duration of COVID-19.

During the three months ended March 28, 2020, the Company repurchased 175,110 and 79,916 shares of its common stock totaling $22.9 million and $13.6 million, respectively.

34

Off-Balance Sheet Arrangements

As of March 28, 2020, the Company did not have any off-balance sheet arrangements, as defined under SEC rules. Specifically, the Company was not liable for guarantees of indebtedness owed by third parties, the Company was not directly liable for the debt of any unconsolidated entity and the Company did not have any retained or contingent interest in assets. The Company does not participate in transactions that generate relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities.

Critical Accounting Policies and Estimates

The Company’s Condensed Consolidated Financial Statements are prepared in accordance with U.S. GAAP. In connection with the preparation of the Condensed Consolidated Financial Statements, the Company uses estimates and makes judgments and assumptions about future events that affect the reported amounts of assets, liabilities, revenue, expenses, and the related disclosures. The assumptions, estimates, and judgments are based on historical experience, current trends, and other factors the Company believes are relevant at the time it prepares the Condensed Consolidated Financial Statements.

The significant accounting policies and critical accounting estimates are consistent with those discussed in Note 1, Summary of Significant Accounting Policies and Other Information, to the consolidated financial statements and the MD&A section of the Company’s Annual Report on Form 10-K for the year ended December 28, 2019. During the three months ended March 28, 2020, there were no significant changes in the application of critical accounting policies.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

See Item 7A, Quantitative and Qualitative Disclosures about Market Risk, of our Annual Report on Form 10-K for the year ended December 28, 2019. During the three months ended March 28, 2020, there have been no material changes in our exposure to market risk.

ITEM 4. CONTROLS AND PROCEDURES 

(a) Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures (as defined in Rules 13a-15(b) and 15d-15(e) under the Exchange Act) are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC rules and forms, and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosures.

In connection with the preparation of this report, management, under the supervision and with the participation of the Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of March 28, 2020. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the quarter ended March 28, 2020, our disclosure controls and procedures were effective.

(b) Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting identified in connection with the evaluation required by Rules 13a-15(f) and 15d-15(f) under the Exchange Act that occurred during the quarter ended March 28, 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

35

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS 

None.

ITEM 1A. RISK FACTORS 

The COVID-19 pandemic could have a material adverse effect on our ability to operate, results of operations, financial condition, liquidity, and capital investments.

The World Health Organization has declared the COVID-19 outbreak a pandemic, and the virus continues to spread in areas where we operate and sell our products. The COVID-19 pandemic and similar situations/circumstances in the future could have a material adverse effect on our ability to operate, results of operations, financial condition, liquidity, and capital investments. Several public health organizations have recommended, and some local governments have implemented, certain measures to slow and limit the transmission of the virus, including travel restrictions, shelter-in-place requirements and social distancing requirements. Such preventive measures, or others we may voluntarily put in place, may have a material adverse effect on our business for an indefinite period of time, such as the potential shut down of certain locations, decreased employee availability, potential border closures, disruptions to the businesses of our channel partners, and others. Our suppliers and customers may also face these and other challenges, which could lead to a disruption in our supply chain as well as decreased demand for our products. These issues may also materially affect our future access to our sources of liquidity, particularly our cash flows from operations, financial condition, capitalization, and capital investments. These disruptions may continue to occur and may result in future impairment, restructuring and other charges. To the extent the COVID-19 pandemic adversely affects our business and financial results, it may also have the effect of heightening many of the other risks described in the risk factors disclosed in Part I, Item 1a. Risk Factors of our Form 10-K, including those relating to our products and services, financial performance, debt covenant compliance and debt obligations. The ultimate magnitude of COVID-19, including the extent of its impact on our financial and operational results, which could be material, will be determined by the length of time that the pandemic continues, its effect on the demand for our services, as well as the effect of governmental regulations imposed in response to the pandemic. We cannot at this time predict the impact of the COVID-19 pandemic, but it could have a material adverse effect on our business, financial condition, results of operations and/or cash flows.

Other than the item listed above, there have been no material changes in our risk factors from those disclosed in our Annual Report on Form 10-K for our year ended December 28, 2019.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 

Recent Sales of Unregistered Securities

None.

Purchases of Equity Securities

On May 1, 2019, the Company announced that its Board of Directors authorized a program to repurchase up to 1,000,000 shares of the Company's common stock for the period May 1, 2019 to April 30, 2020 ("2019 program"). On April 29, 2020, the Company announced that its Board of Directors authorized a new program to repurchase up to 1,000,000 shares of the Company's common stock for the period May 1, 2020 to April 30, 2021 (the "2020 program") to replace its previous expired 2019 program. The Company does not expect to repurchase shares in the near future due to the uncertainty of the impact and duration of COVID-19.

During the three months ended March 28, 2020, the Company repurchased 175,110 shares of its common stock totaling $22.9 million. There are 324,890 shares yet to be purchased under the 2019 program as of March 28, 2020.

36

The table below presents shares of the Company’s common stock which were acquired by the Company during three months ended March 28, 2020:

Period	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs	Maximum number (or approximate dollar value) of shares that may yet be purchased under the plans or programs
2019 Program
December 29 through January 25	—	$	—	—	500,000
January 26 through February 22	—	—		—	500,000
February 23 through March 28	175,110	130.93		175,110	324,890
Total	175,110	$	130.93	175,110	324,890

ITEM 3. DEFAULTS UPON SENIOR SECURITIES 

None.

ITEM 4. MINE SAFETY DISCLOSURES 

None.

ITEM 5. OTHER INFORMATION 

None.

ITEM 6. EXHIBITS

Exhibit	Description
10.1	Amended and Restated Credit Agreement, dated as of April 3, 2020, by and among Littelfuse, Inc., certain subsidiaries of the company, as designated borrowers, certain subsidiaries of the company, as guarantors, the lenders party thereto and Bank of America, N.A., as agent, JPMorgan Chase Bank, N.A., as syndication agent, PNC Bank, National Association, as senior documentation agent, BMO Harris Bank, N.A. and Wells Fargo Bank, National Association, as co-documentation agents, BofA Securities, Inc. as sole bookrunner and joint lead arranger, and JPMorgan Chase Bank, N.A., as joint lead arranger (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed April 7, 2020, Commission File No. 20388).+
10.2	Form of Restricted Stock Unit Award Agreement (Tier I) under the Littelfuse, Inc. Long-Term Incentive Plan (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed April 24, 2020, Commission File No. 20388). ++
10.3	Form of Option Award Agreement (Tier I) under the Littelfuse, Inc. Long-Term Incentive Plan (filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed April 24, 2020, Commission File No. 20388). ++
10.4	Form of Restricted Stock Unit Award Agreement (Non-Employee Director) under the Littelfuse, Inc. Long-Term Incentive Plan (filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed April 24, 2020, Commission File No. 20388). ++

37

10.5	Form of Option Award Agreement (Non-Employee Director) under the Littelfuse, Inc. Long-Term Incentive Plan (filed as Exhibit 10.4 to the Company’s Current Report on Form 8-K filed April 24, 2020, Commission File No. 20388). ++
10.6*	Form of Restricted Stock Unit Award Agreement (Tier II) under the Littelfuse, Inc. Long-Term Incentive Plan. ++
10.7*	Form of Restricted Stock Unit Award Agreement (IXYS Tier II) under the IXYS Corporation Equity Incentive Plan. ++
31.1*	Certification of David W. Heinzmann, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Meenal A. Sethna, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following financial information from LITTELFUSE, Inc.'s Quarterly Report on Form 10-Q for the quarter ended March 28, 2020 formatted in Inline XBRL (Extensible Business Reporting Language) includes: (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Net Income, (iii) the Condensed Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Stockholders Equity , (v) the Condensed Consolidated Statements of Cash Flows, and (vi) Notes to the Condensed Consolidated Financial Statements.
104	The cover page from this Quarterly Report on Form 10-Q for the quarter ended March 28, 2020, formatted in Inline XBRL.
+	Certain schedules and exhibits omitted pursuant to Item 601(b)(2) of Regulation S-K promulgated by the SEC. The registrant agrees to furnish supplementary a copy of any omitted schedule or exhibit to the SEC upon request.
++	Management contract or compensatory plan or arrangement.
*	Filed herewith.
**	Furnished herewith.

38

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Quarterly Report on Form 10-Q for the quarter ended March 28, 2020, to be signed on its behalf by the undersigned thereunto duly authorized.

	Littelfuse, Inc.
	By:	/s/ Meenal A. Sethna
		Meenal A. Sethna
	Executive Vice President and Chief Financial Officer
Date: April 29, 2020	By:	/s/ Jeffrey G. Gorski
		Jeffrey G. Gorski
	Vice President and Chief Accounting Officer

39

EX-10.6

AMENDED AND RESTATED LITTELFUSE, INC. LONG-TERM INCENTIVE PLAN RESTRICTED STOCK UNIT AWARD AGREEMENT (Tier II) Littelfuse, Inc. (the “Company”) hereby grants to [Name] (the “Grantee”), a Participant in the Amended and Restated Littelfuse, Inc. Long-Term Incentive Plan, as amended from time-to-time (the “Plan”), a Restricted Stock Unit Award (the “Award”) for units representing shares of common stock of the Company (“Restricted Stock Units” or “RSUs”), subject to the terms and conditions as described herein. This agreement to grant Restricted Stock Units (the “Award Agreement”), is effective as of [Date] (the “Grant Date”). RECITALS A. The Board of Directors of the Company (the “Board”) has adopted the Amended and Restated Littelfuse, Inc. Long-Term Incentive Plan as an incentive to attract, retain and motivate highly qualified individuals. B. Under the Plan, the Compensation Committee of the Board (the “Committee”), or its delegate, has the exclusive authority to interpret and apply the Plan and this Award Agreement. C. The Committee has approved the granting of Restricted Stock Units to the Grantee pursuant to the Plan to provide an incentive to the Grantee to focus on the long-term growth of the Company and its subsidiaries. D. To the extent not specifically defined herein, all capitalized terms used in this Award Agreement shall have the meaning set forth in the Plan. If there is any discrepancy between the Award Agreement and the Plan, the Plan will always govern. In consideration of the mutual covenants and conditions hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Grantee agree as follows: 1. Grant of Restricted Stock Units. The Company hereby grants to the Grantee a Restricted Stock Unit Award, described below, subject to the terms and conditions in this Award Agreement. This Award is granted pursuant to the Plan and its terms are incorporated by reference. Award Type Grant Date Number of RSUs Restricted Stock Units [date] [number] 2. Vesting of Restricted Stock Units. Subject to the provisions of Section 3, the RSUs will vest (in whole shares, rounded down) in accordance with the schedule below: Installment Vesting Date Applicable to Installment 33 1/3% 1st anniversary of Grant Date 33 1/3% 2nd anniversary of Grant Date 33 1/3% 3rd anniversary of Grant Date

3. Termination of Employment or Service. a. General. Except as otherwise set forth in Sections 3 b., 3c. and 3d. below, if the Grantee terminates all employment and service with the Company and its subsidiaries for any reason (including upon a termination for Cause), any RSU that is not vested under the schedule in Section 2 is forfeited as of the date of the Grantee’s termination of employment and service. b. Retirement. If the Grantee retires from all employment and service with the Company and its subsidiaries after reaching age 62 and completing 5 years of continuous service and is determined to be in good standing at the time of the retirement, the unvested portion of the RSU shall vest pro-rata, based on the Grantee’s continuous employment and service with the Company or any of its subsidiaries completed from the Grant Date to the date of retirement (rounded down to the nearest whole number so that no fractional shares will vest). c. Death or Disability. If the Grantee terminates all employment and service with the Company and its subsidiaries as a result of death or Disability, the unvested portion of the RSU shall vest pro-rata, based on the Grantee’s continuous employment and service with the Company or any of its subsidiaries completed from the Grant Date to the date of termination (rounded down to the nearest whole number so that no fractional shares will vest). d. Change in Control. In the event the Company or any of its subsidiaries terminates the Grantee’s employment and service with the Company and its subsidiaries without Cause within two years following a Change in Control, then the unvested portion of the RSUs shall become immediately vested. The existence of Cause or good standing will be determined in the sole discretion of the Chief Legal Officer of the Company (or, in the case of an RSU held by such officer, the Chief Executive Officer of the Company). Also, the Committee may, in its sole discretion, choose to accelerate the vesting of the Award in special circumstances. 4. Delivery of Stock. As soon as reasonably practicable following each vesting date, the vested RSUs shall be converted into Stock, or the equivalent value in cash, and delivered to the Grantee, pursuant to Section 8.3 of the Plan; provided, such Stock or equivalent value in cash shall be delivered to the Grantee no later than 60 days following the applicable vesting date. Fractional shares will not be paid. 5. Responsibility for Taxes and Withholding. The Grantee acknowledges that, regardless of any action the Company or its subsidiary employing the Grantee (the “Employer”) takes with respect to any or all income tax, social insurance, payroll tax, fringe benefits tax, payment on account, or other tax-related items related to the Grantee’s participation in the Plan and legally applicable to the Grantee (the “Tax-Related Items”), the ultimate liability for all Tax-Related Items is and remains the Grantee’s responsibility and may exceed the amount actually withheld by the Company or the Employer. The Grantee further acknowledges that the Company and/or the Employer: (i) make no representations or undertakings regarding the treatment of any Tax- Related Items in connection with any aspect of the RSUs, including the grant of the RSUs, the vesting of RSUs, the conversion of the RSUs into Stock or the receipt of an equivalent cash payment, the subsequent sale of any Stock acquired at vesting and the receipt of any dividends and/or dividend equivalents; and (ii) do not commit to and are under no obligation to structure 2

the terms of the grant or any aspect of the RSUs to reduce or eliminate the Grantee’s liability for Tax-Related Items or achieve any particular tax result. Further, if the Grantee has become subject to tax in more than one jurisdiction between the Grant Date and the date of any relevant taxable event, the Grantee acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction. Prior to any relevant taxable or tax withholding event, as applicable, the Grantee shall pay, or make adequate arrangements satisfactory to the Company and/or the Employer to satisfy all Tax-Related Items. In this regard, pursuant to Section 16 of the Plan, if permissible under local law and subject to any restrictions provided by the Committee prior to the vesting of the RSUs, the Grantee authorizes the Company or the Employer, or their respective agents, to withhold whole shares of Stock to be issued upon vesting/settlement of the RSUs equal to all applicable Tax-Related Items, rounded down to the nearest whole share (“net settlement”). Alternatively, or in addition, subject to any restrictions provided by the Committee prior to the vesting of the RSUs, the Grantee authorizes the Company and/or the Employer, or their respective agents, to satisfy the obligations with regard to all Tax-Related Items by one or a combination of the following: (i) withholding from the Grantee’s wages or other cash compensation payable to the Grantee by the Company and/or the Employer; (ii) withholding from proceeds of the sale of shares of Stock acquired upon vesting/settlement of the RSUs either through a voluntary sale or through a mandatory sale arranged by the Company (on the Grantee’s behalf pursuant to this authorization); or (iii) personal check or other cash equivalent acceptable to the Company or the Employer (as applicable). Depending on the withholding method, the Company or the Employer may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or such greater amounts not to exceed the maximum statutory rate necessary, in the applicable jurisdiction, to satisfy federal, state, and local withholding tax requirements (but only if withholding at a rate greater than the minimum statutory rate will not result in adverse financial accounting consequences). In the event that the Company or the Employer withholds an amount for Tax-Related Items that exceeds the maximum withholding amount under applicable law, the Grantee shall receive a refund of such over-withheld amount in cash and shall have no entitlement to an equivalent amount in Stock. If the obligation for Tax-Related Items is satisfied by withholding a number of shares of Stock as described herein, for tax purposes, the Grantee shall be deemed to have been issued the full number of shares of Stock subject to the Award, notwithstanding that a number of the shares of Stock are held back solely for the purpose of paying the Tax-Related Items due as a result of the Grantee’s participation in the Plan. Finally, the Grantee shall pay to the Company or to the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold or account for as a result of the Grantee’s participation in the Plan that cannot be satisfied by the means previously described. The Company may refuse to issue or deliver shares or the proceeds of the sale of shares of Stock if the Grantee fails to comply with his or her obligation in connection with the Tax-Related Items. 6. Transferability. The RSUs are not transferable other than: (a) by will or by the laws of descent and distribution; (b) pursuant to a domestic relations order; or (c) to members of the Grantee’s immediate family, to trusts solely for the benefit of such immediate family members or to partnerships in which family members and/or trusts are the only partners, all as provided under the terms of the Plan. After any such transfer, the transferred RSUs shall remain subject to the terms of the Plan. 3

7. Adjustment of Shares. In the event of any transaction described in Section 4.3 of the Plan, the terms of this Award may be adjusted as set forth in Section 4.3 of the Plan. 8. Shareholder Rights. The grant of RSUs does not confer on the Grantee any rights as a shareholder or any contractual or other rights of service or employment with the Company or its subsidiaries. The Grantee will not have shareholder rights with respect to any shares of Stock subject to an RSU until the RSU is vested and shares of Stock are delivered to the Grantee. No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to such date, except as provided under the Plan. 9. Data Privacy. In order to perform its requirements under the Plan, the Company or one or more of its subsidiaries may process sensitive personal data about the Grantee. Such data includes but is not limited to the information provided in the Award package and any changes thereto, other appropriate personal and financial data about the Grantee, and information about the Grantee’s participation in the Plan and RSUs exercised under the Plan from time to time. By accepting this Award Agreement, the Grantee hereby gives consent to the Company and its subsidiaries to hold, process, use and transfer any personal data outside the country in which the Grantee is employed and to the United States, and vice-versa. The legal persons for whom the personal data is intended includes the Company and any of its subsidiaries, the outside plan administrator as selected by the Company from time to time, and any other person that the Company may find appropriate in its administration of the Plan. The Grantee may review and correct any personal data by contacting the local Human Resources Representative. The Grantee understands that the transfer of the information outlined herein is important to the administration of the Plan and failure to consent to the transmission of such information may limit or prohibit participation in the Plan. 10. Appendix. Notwithstanding any provisions in this Award Agreement, the grant of the RSUs shall be subject to any special terms and conditions set forth in any appendix (or any appendices) to this Award Agreement for the Grantee's country (the "Appendix"). Moreover, if the Grantee relocates to one of the countries included in the Appendix, the special terms and conditions for such country will apply to the Grantee, to the extent the Company determines that the application of such terms and conditions is necessary or advisable in order to comply with local law or facilitate the administration of the Plan. The Appendix constitutes part of this Award Agreement. 11. Electronic Delivery. The Company may, in its sole discretion, decide to deliver any documents related to the RSU or other awards granted to the Grantee under the Plan by electronic means. The Grantee hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an online or electronic system established and maintained by the Company or a third party designated by the Company. 12. Severability. If one or more of the provisions in this Award Agreement shall be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected thereby and the invalid, illegal or unenforceable provisions shall be deemed null and void; however, to the extent permissible by law, any provisions which could be deemed null and void shall first be construed, interpreted or revised retroactively to permit this Award Agreement to be construed so as to foster the intent of this Award Agreement and the Plan. 4

13. Amendments. Except as otherwise provided in Section 14, this Award Agreement may be amended only by a written agreement executed by the Company and the Grantee. 14. Section 409A. The RSUs are intended to comply with the requirements of Section 409A. The Plan and this Award Agreement shall be administered and interpreted in a manner consistent with this intent. If the Company determines that the RSUs fail to comply with the requirements of Section 409A, the Company may, at the Company’s sole discretion, and without the Grantee’s consent, amend this Award Agreement to cause the RSUs to comply with Section 409A. Any payments under this Award shall be treated as separate payments for purposes of Section 409A. For purposes of determining timing of payments, any references to retirement, resignation, or termination of employment or service shall mean a “separation of service” as defined in Section 409A, and any payment to a “specified employee” within the meaning of Section 409A made on account of a separation from service shall be subject to a 6-month specified employee delay in accordance with Section 13.2(b) of the Plan. 15. Governing Law. This Award Agreement shall be construed under the laws of the State of Delaware. IN WITNESS WHEREOF, the Company has caused this Award Agreement to be executed in its name and on its behalf, as of the Grant Date. LITTELFUSE, INC. By:_______________________ Name:____________________ Title:_____________________ 5

EX-10.7

IXYS CORPORATION [20__] EQUITY INCENTIVE PLAN RESTRICTED STOCK UNIT AWARD AGREEMENT (Tier II) Littelfuse, Inc. (the “Company”) hereby grants to [Name] (the “Grantee”), a Participant in the IXYS Corporation [20__] Equity Incentive Plan, as amended from time-to-time (the “Plan”), a Restricted Stock Unit Award (the “Award”) for units representing shares of common stock of the Company (“Restricted Stock Units” or “RSUs”), subject to the terms and conditions as described herein. This agreement to grant Restricted Stock Units (the “Award Agreement”), is effective as of [Date] (the “Grant Date”). RECITALS A. The Board of Directors of the Company (the “Board”) maintains the IXYS Corporation [20__] Equity Incentive Plan as an incentive to attract, retain and motivate highly qualified individuals. B. The Board has delegated its authority to administer the Plan to the Compensation Committee of the Board, or its delegate (the “Committee”). C. The Committee has approved the granting of Restricted Stock Units to the Grantee pursuant to the Plan to provide an incentive to the Grantee to focus on the long-term growth of the Company and its subsidiaries. D. To the extent not specifically defined herein, all capitalized terms used in this Award Agreement shall have the meaning set forth in the Plan. If there is any discrepancy between the Award Agreement and the Plan, the Plan will always govern. In consideration of the mutual covenants and conditions hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Grantee agree as follows: 1. Grant of Restricted Stock Units. The Company hereby grants to the Grantee a Restricted Stock Unit Award, described below, subject to the terms and conditions in this Award Agreement. This Award is granted pursuant to the Plan and its terms are incorporated by reference. Award Type Grant Date Number of RSUs Restricted Stock Units [date] [number] 2. Vesting of Restricted Stock Units. Subject to the provisions of Section 3, the RSUs will vest (in whole shares, rounded down) in accordance with the schedule below: Installment Vesting Date Applicable to Installment 33 1/3% 1st anniversary of Grant Date 33 1/3% 2nd anniversary of Grant Date 33 1/3% 3rd anniversary of Grant Date

3. Termination of Employment or Service. a. General. Except as otherwise set forth in Sections 3 b., 3c. and 3d. below, if the Grantee terminates all employment and service with the Company and its subsidiaries for any reason (including upon a termination for Cause), any RSU that is not vested under the schedule in Section 2 is forfeited as of the date of the Grantee’s termination of employment and service. b. Retirement. If the Grantee retires from all employment and service with the Company and its subsidiaries after reaching age 62 and completing 5 years of continuous service (including prior service with IXYS Corporation) and is determined to be in good standing at the time of the retirement, the unvested portion of the RSU shall vest pro-rata, based on the Grantee’s continuous employment and service with the Company or any of its subsidiaries completed from the Grant Date to the date of retirement (rounded down to the nearest whole number so that no fractional shares will vest). c. Death or Disability. If the Grantee terminates all employment and service with the Company and its subsidiaries as a result of death or Disability, the unvested portion of the RSU shall vest pro-rata, based on the Grantee’s continuous employment and service with the Company or any of its subsidiaries (including prior service with IXYS Corporation) completed from the Grant Date to the date of termination (rounded down to the nearest whole number so that no fractional shares will vest). d. Change in Control. In the event the Company or any of its subsidiaries terminates the Grantee’s employment and service with the Company and its subsidiaries without Cause within two years following a Change in Control, then the unvested portion of the RSU shall become immediately vested. The existence of Cause or good standing will be determined in the sole discretion of the Chief Legal Officer of the Company (or, in the case of an RSU held by such officer, the Chief Executive Officer of the Company). Also, the Committee may, in its sole discretion, choose to accelerate the vesting of the Award in special circumstances. 4. Defined Terms. As used in this Award Agreement, the following terms have the following meanings: “Disability” means, unless otherwise provided in an employment, change of control or similar agreement in effect between the Grantee and the Company or one of its subsidiaries, the Grantee is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; or, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering employees of the Company or one of its subsidiaries. 2

“Change in Control” means the first of the following events to occur: a) The acquisition by any one person or more than one person acting as a group (within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(v)(B)), other than the Company, any subsidiary, or any employee benefit plan (or related trust) sponsored or maintained by the Company or any subsidiary, (a “Person”) of any of stock of the Company that, together with stock held by such Person, constitutes more than 50% of the total fair market value or total voting power of the stock of the Company. For purposes of this Paragraph (a), the following acquisitions shall not constitute a Change in Control: (i) the acquisition of additional stock by a Person who is considered to own more than 50% of the total fair market value or total voting power of the stock of the Company, (ii) any acquisition in which the Company does not remain outstanding thereafter, and (iii) any acquisition pursuant to a transaction which complies with Paragraph (c) below. An increase in the percentage of stock owned by any one Person as a result of a transaction in which the Company acquires its stock in exchange for property will be treated as an acquisition of stock for purposes of this Paragraph; b) The replacement of individuals who constitute a majority of the Board of Directors of the Company, during any twelve (12) month period, by directors whose appointment or election is not endorsed by a majority of the Board of Directors of the Company before the date of the appointment or election, provided that, if the Company is not the relevant corporation for which no other corporation is a majority shareholder for purposes of Treasury Regulation Section 1.409A-3(i)(5)(iv)(A)(2), this Paragraph (b) shall be applied instead with respect to the members of the board of the directors of such relevant corporation for which no other corporation is a majority shareholder; c) The acquisition by any one person or more than one person acting as a group (within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(vi)(D)), other than the Company, a subsidiary or any employee benefit plan (or related trust) sponsored or maintained by the Company or any subsidiary, during the 12-month period ending on the date of the most recent acquisition by such by such person or persons, of ownership of stock of the Company possessing 30% or more of the total voting power of the stock of the Company. For purposes of this Paragraph (c), the following acquisitions shall not constitute a Change in Control: (i) the acquisition of additional control by a person or more than one person acting as a group who are considered to effectively control the Company within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(vi), and (ii) any acquisition pursuant to a transaction which complies with Paragraph (a); or d) The acquisition by any individual person or more than one person acting as a group (within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(vii)(C)), other than a transfer to a related person within the meaning of Treasury Regulation Section 1.409A- 3(i)(5)(vii)(B), during the 12-month period ending on the date of the most recent acquisition by such by such person or persons, of assets from the Company that have a total gross fair market value equal to or more than 40% of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition(s). For purposes of this Paragraph (d), “gross fair market value” means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets. 3

The above definition of “Change in Control” shall be interpreted by the Board of Directors of the Company, in good faith, to apply in a similar manner to transactions involving partnerships and partnership interests, and to comply with Code Section 409A. Reorganization: If the Company is part of any reorganization involving merger, consolidation, acquisition of the stock or acquisition of the assets of the Company, the Committee, in its discretion, may decide that: a) any portion of the Award Agreement shall pertain to and apply, with appropriate adjustment as determined by the Committee, to the securities of the resulting corporation; and/or b) any portion of the Award Agreement on which restrictions have not yet lapsed shall become immediately fully vested, nonforfeitable and payable. 5. Delivery of Stock. As soon as reasonably practicable following each vesting date, the vested RSUs shall be converted into Stock, or the equivalent value in cash, and delivered to the Grantee, pursuant to Section 8.4 of the Plan; provided, such Stock or equivalent in cash shall be delivered to the Grantee no later than 60 days following the applicable vesting date. Fractional shares will not be paid. 6. Responsibility for Taxes and Withholding. The Grantee acknowledges that, regardless of any action the Company or its subsidiary employing the Grantee (the “Employer”) takes with respect to any or all income tax, social insurance, payroll tax, fringe benefits tax, payment on account, or other tax-related items related to the Grantee’s participation in the Plan and legally applicable to the Grantee (the “Tax-Related Items”), the ultimate liability for all Tax-Related Items is and remains the Grantee’s responsibility and may exceed the amount actually withheld by the Company or the Employer. The Grantee further acknowledges that the Company and/or the Employer: (i) make no representations or undertakings regarding the treatment of any Tax- Related Items in connection with any aspect of the RSUs, including the grant of the RSUs, the vesting of RSUs, the conversion of the RSUs into Stock or the receipt of an equivalent cash payment, the subsequent sale of any Stock acquired at vesting and the receipt of any dividends and/or dividend equivalents; and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the RSUs to reduce or eliminate the Grantee’s liability for Tax-Related Items or achieve any particular tax result. Further, if the Grantee has become subject to tax in more than one jurisdiction between the Grant Date and the date of any relevant taxable event, the Grantee acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction. Prior to any relevant taxable or tax withholding event, as applicable, the Grantee shall pay, or make adequate arrangements satisfactory to the Company and/or the Employer to satisfy all Tax-Related Items. In this regard, pursuant to Section 11 of the Plan, if permissible under local law and subject to any restrictions provided by the Committee prior to the vesting of the RSUs, the Grantee authorizes the Company or the Employer, or their respective agents, to withhold whole shares of Stock to be issued upon vesting/settlement of the RSUs equal to all applicable Tax-Related Items, rounded down to the nearest whole share (“net settlement”). Alternatively, or in addition, subject to any restrictions provided by the Committee prior to the vesting of the RSUs, the Grantee authorizes the Company and/or the Employer, or their respective agents, to satisfy the obligations with regard to all Tax-Related Items by one or a combination of the following: (i) withholding from the Grantee’s wages or other cash compensation payable to the 4

Grantee by the Company and/or the Employer; (ii) withholding from proceeds of the sale of shares of Stock acquired upon vesting/settlement of the RSUs either through a voluntary sale or through a mandatory sale arranged by the Company (on the Grantee’s behalf pursuant to this authorization); or (iii) personal check or other cash equivalent acceptable to the Company or the Employer (as applicable). Depending on the withholding method, the Company or the Employer may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or such greater amounts not to exceed the maximum statutory rate necessary, in the applicable jurisdiction, to satisfy federal, state, and local withholding tax requirements (but only if withholding at a rate greater than the minimum statutory rate will not result in adverse financial accounting consequences). In the event that the Company or the Employer withholds an amount for Tax-Related Items that exceeds the maximum withholding amount under applicable law, the Grantee shall receive a refund of such over-withheld amount in cash and shall have no entitlement to an equivalent amount in Stock. If the obligation for Tax-Related Items is satisfied by withholding a number of shares of Stock as described herein, for tax purposes, the Grantee shall be deemed to have been issued the full number of shares of Stock subject to the Award, notwithstanding that a number of the shares of Stock are held back solely for the purpose of paying the Tax-Related Items due as a result of the Grantee’s participation in the Plan. Finally, the Grantee shall pay to the Company or to the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold or account for as a result of the Grantee’s participation in the Plan that cannot be satisfied by the means previously described. The Company may refuse to issue or deliver shares or the proceeds of the sale of shares of Stock if the Grantee fails to comply with his or her obligation in connection with the Tax-Related Items. 7. Transferability. The RSUs are not transferable other than: (a) by will or by the laws of descent and distribution; (b) pursuant to a domestic relations order; or (c) to members of the Grantee’s immediate family, to trusts solely for the benefit of such immediate family members or to partnerships in which family members and/or trusts are the only partners, all as provided under the terms of the Plan. After any such transfer, the transferred RSUs shall remain subject to the terms of the Plan. 8. Adjustment of Shares. In the event of any transaction described in Section 4.3 of the Plan, the terms of this Award may be adjusted as set forth in Section 4.3 of the Plan. 9. Shareholder Rights. The grant of RSUs does not confer on the Grantee any rights as a shareholder or any contractual or other rights of service or employment with the Company or its subsidiaries. The Grantee will not have shareholder rights with respect to any shares of Stock subject to an RSU until the RSU is vested and shares of Stock are delivered to the Grantee. No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to such date, except as provided under the Plan. 5

10. Data Privacy. In order to perform its requirements under the Plan, the Company or one or more of its subsidiaries may process sensitive personal data about the Grantee. Such data includes but is not limited to the information provided in this Award package and any changes thereto, other appropriate personal and financial data about the Grantee, and information about the Grantee’s participation in the Plan and RSUs exercised under the Plan from time to time. By accepting this Award Agreement, the Grantee hereby gives consent to the Company and its subsidiaries to hold, process, use and transfer any personal data outside the country in which the Grantee is employed and to the United States, and vice-versa. The legal persons for whom the personal data is intended includes the Company and any of its subsidiaries, the outside plan administrator as selected by the Company from time to time, and any other person that the Company may find appropriate in its administration of the Plan. The Grantee may review and correct any personal data by contacting the local Human Resources Representative. The Grantee understands that the transfer of the information outlined herein is important to the administration of the Plan and failure to consent to the transmission of such information may limit or prohibit participation in the Plan. 11. Appendix. Notwithstanding any provisions in this Award Agreement, the grant of the RSUs shall be subject to any special terms and conditions set forth in any appendix (or any appendices) to this Award Agreement for the Grantee's country (the "Appendix"). Moreover, if the Grantee relocates to one of the countries included in the Appendix, the special terms and conditions for such country will apply to the Grantee, to the extent the Company determines that the application of such terms and conditions is necessary or advisable in order to comply with local law or facilitate the administration of the Plan. The Appendix constitutes part of this Award Agreement. 12. Electronic Delivery. The Company may, in its sole discretion, decide to deliver any documents related to the RSU or other awards granted to the Grantee under the Plan by electronic means. The Grantee hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an online or electronic system established and maintained by the Company or a third party designated by the Company. 13. Severability. If one or more of the provisions in this Award Agreement shall be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected thereby and the invalid, illegal or unenforceable provisions shall be deemed null and void; however, to the extent permissible by law, any provisions which could be deemed null and void shall first be construed, interpreted or revised retroactively to permit this Award Agreement to be construed so as to foster the intent of this Award Agreement and the Plan. 14. Amendments. Except as otherwise provided in Section 15, this Award Agreement may be amended only by a written agreement executed by the Company and the Grantee. 15. Section 409A. The RSUs are intended to comply with the requirements of Section 409A. The Plan and this Award Agreement shall be administered and interpreted in a manner consistent with this intent. If the Company determines that the RSUs fail to comply with the requirements of Section 409A, the Company may, at the Company’s sole discretion, and without the Grantee’s consent, amend this Award Agreement to cause the RSUs to comply with Section 409A. Any payments under this Award shall be treated as separate payments for purposes of Section 409A. For purposes of determining timing of payments, any references to retirement, resignation, or termination of employment or service shall mean a “separation of service” as defined in Section 409A, and any payment to a “specified employee” within the meaning of 6

Section 409A made on account of a separation from service shall be subject to a 6-month specified employee delay to the extent required by Treasury Regulations Section 1.409A- 1(c)(3)(v) and shall not be paid until six months after the date of such separation from service, and any amount of such payment that would otherwise be payable during such six month period shall be paid at the end of such period. 16. Governing Law. This Award Agreement shall be construed under the laws of the State of Delaware. IN WITNESS WHEREOF, the Company has caused this Award Agreement to be executed in its name and on its behalf, as of the Grant Date. LITTELFUSE, INC. By:_______________________ Name:____________________ Title:_____________________ 7

EX-31.1

EXHIBIT 31.1

SECTION 302 CERTIFICATION

I, David W. Heinzmann, certify that:

1 I have reviewed this Quarterly Report on Form 10-Q of Littelfuse Inc.;

2 Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3 Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4 The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5 The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: April 29, 2020
	/s/ David W. Heinzmann
	David W. Heinzmann President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

SECTION 302 CERTIFICATION

I, Meenal A. Sethna, certify that:

1 I have reviewed this Quarterly Report on Form 10-Q of Littelfuse Inc.;

2 Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3 Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4 The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5 The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: April 29, 2020
	/s/ Meenal A. Sethna
	Meenal A. Sethna Executive Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

LITTELFUSE, INC.

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of title 18, United States Code), each of the undersigned officers of Littelfuse, Inc. (“the Company”) does hereby certify that to his knowledge:

The Quarterly Report of the Company on Form 10-Q for the fiscal quarter ended March 28, 2020 (“the Report”) fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ David W. Heinzmann	/s/ Meenal A. Sethna
David W. Heinzmann	Meenal A. Sethna
President and Chief Executive Officer	Executive Vice President and Chief Financial Officer
Dated: April 29, 2020	Dated: April 29, 2020

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Lease Commitments - Balance Sheet, Operating Lease Term and Discount Rate (Details) - USD ($) $ in Thousands	Mar. 28, 2020	Dec. 28, 2019
Assets
Operating ROU assets	$ 20,611	$ 21,918
Liabilities
Current operating lease liabilities	7,073	7,259
Non-current operating lease liabilities	15,960	17,166
Total lease liabilities	$ 23,033	$ 24,425
Weighted-average remaining lease term (years)	3 years 10 months 24 days
Weighted-average discount rate	5.04%

XML

Goodwill and Other Intangible Assets - Amounts for Goodwill and Changes in Carrying Value by Operating Segment (Details) $ in Thousands	3 Months Ended
	Mar. 28, 2020 USD ($)
Goodwill [Roll Forward]
Balance	$ 820,589
Currency translation	(7,826)
Balance	812,763
Electronics
Goodwill [Roll Forward]
Balance	650,796
Currency translation	(5,873)
Balance	644,923
Automotive
Goodwill [Roll Forward]
Balance	131,321
Currency translation	(1,693)
Balance	129,628
Industrial
Goodwill [Roll Forward]
Balance	38,472
Currency translation	(260)
Balance	$ 38,212

XML

Segment Information - Narrative (Details) $ in Thousands	1 Months Ended	3 Months Ended
	Apr. 30, 2019 USD ($)	Mar. 28, 2020 USD ($) segment	Mar. 30, 2019 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | segment		3
Restructuring charges		$ 1,725	$ 2,735
Impairment charges		$ 2,237	0
Net sales | Geographic Concentration Risk | Other countries
Segment Reporting Information [Line Items]
Concentration risk percentage		10.00%
Operating Income (Loss)
Segment Reporting Information [Line Items]
Acquisition related costs			2,400
Other | Operating Income (Loss)
Segment Reporting Information [Line Items]
Legal, accounting and other expenses		$ 1,200
Restructuring charges		4,000
Industrial
Segment Reporting Information [Line Items]
Restructuring charges		324	297
Impairment charges			0
Facility Closing | Industrial
Segment Reporting Information [Line Items]
Impairment charges		2,237
Employee terminations
Segment Reporting Information [Line Items]
Restructuring charges	$ 2,500	1,601	2,452
Employee terminations | Industrial
Segment Reporting Information [Line Items]
Restructuring charges		$ 321	$ 47

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Other Comprehensive Income (Loss) - Schedule of Components of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Other Comprehensive Income (Loss) [Line Items]
Pre-tax	$ (14,985)	$ 8,044
Tax	(6)	(29)
Total change in other comprehensive income (loss)	(14,979)	8,073
Pension and postretirement liability and reclassification adjustments
Other Comprehensive Income (Loss) [Line Items]
Pre-tax	555	(78)
Tax	(6)	(29)
Total change in other comprehensive income (loss)	561	(49)
Foreign currency translation adjustment
Other Comprehensive Income (Loss) [Line Items]
Pre-tax	(15,540)	8,122
Tax	0	0
Total change in other comprehensive income (loss)	$ (15,540)	$ 8,122

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Earnings Per Share - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019	Apr. 23, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares repurchased (in shares)		79,916
Repurchases of common stock	$ 22,927	$ 13,555
Share Repurchase Program
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Repurchase authorized (in shares)	1,000,000
Shares repurchased (in shares)	175,110
Repurchases of common stock	$ 22,900
Employee Stock Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded (in shares)	153,836	77,047
Subsequent Event | Share Repurchase Program
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Repurchase authorized (in shares)			1,000,000

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Related Party Transactions

3 Months Ended

Mar. 28, 2020

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

As a result of the Company’s acquisition of IXYS, the Company has equity ownership in various investments that are accounted for under the equity method. The following is a description of the investments and related party transactions.

Powersem GmbH: The Company owns 45% of the outstanding equity of Powersem GmbH (“Powersem”), a module manufacturer based in Germany.

EB-Tech Co., Ltd.: The Company owns approximately 19% of the outstanding equity of EB Tech Co., Ltd. (“EB Tech”), a company with expertise in radiation technology based in South Korea.

Automated Technology (Phil), Inc.: The Company owns approximately 24% of the outstanding common shares of Automated Technology (Phil), Inc. (“ATEC”), a supplier located in the Philippines that provides assembly and test services. One member of the Company's Board of Directors serves on the Board of Directors of ATEC.

	For the Three Months Ended March 28, 2020						For the Three Months Ended March 30, 2019
(in millions)	Powersem		EB Tech		ATEC		Powersem		EB Tech		ATEC
Sales to related party	$	0.4	$	—	$	—	$	0.1	$	—	$	—
Purchase material/ service from related party	0.2		—		1.8		0.8		0.1		1.5
	March 28, 2020						December 28, 2019
(in millions)	Powersem		EB Tech		ATEC		Powersem		EB Tech		ATEC
Accounts Receivable balance	$	0.1	$	—	$	—	$	—	$	—	$	—
Accounts Payable balance	0.1		—		—		0.2		—		0.1

Additionally, the Company has certain cost method investments in VTOOL Ltd. and Securepush Ltd. with a total book value of $0.4 million as of March 28, 2020 and one member of the Company’s Board of Directors is currently an investor and a director of VTOOL Ltd. and Securepush Ltd.

On April 26, 2019, the Company sold its subsidiary Microwave Technology, LLC. (“MWT”) resulting in a loss on disposal of $2.6 million reflected in Other income (expense), net in the Condensed Consolidated Statements of Net Income. The operations of MWT were included in the Electronics segment. One member of the Company’s Board of Directors is an owner of a company that purchased MWT.

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Inventories (Tables)

3 Months Ended

Mar. 28, 2020

Inventory Disclosure [Abstract]

Schedule of Inventory

The components of inventories at March 28, 2020 and December 28, 2019 are as follows:

(in thousands)	March 28, 2020			December 28, 2019
Raw materials	$	75,202		$	76,732
Work in process	84,030			84,561
Finished goods	100,415			110,388
Inventory Reserves	(32,365		)	(34,174		)
Total	$	227,282		$	237,507

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Benefit Plans

3 Months Ended

Mar. 28, 2020

Retirement Benefits [Abstract]

Benefit Plans

Benefit Plans

The Company has company-sponsored defined benefit pension plans covering employees in the U.K., Germany, the Philippines, China, Japan, Mexico, Italy and France. The amount of the retirement benefits provided under the plans is based on years of service and final average pay.

The Company recognizes interest cost, expected return on plan assets, and amortization of prior service, net within Other expense (income), net in the Condensed Consolidated Statements of Net Income. The components of net periodic benefit cost for the three months ended March 28, 2020 and March 30, 2019 were as follows: 

	For the Three Months Ended
(in thousands)	March 28, 2020			March 30, 2019
Components of net periodic benefit cost:
Service cost	$	618		$	500
Interest cost	658			784
Expected return on plan assets	(727		)	(790		)
Amortization of prior service and net actuarial loss	145			62
Net periodic benefit cost	$	694		$	556

The Company expects to make approximately $2.3 million of cash contributions to its pension plans in 2020.

The Company also sponsors certain post-employment plans in foreign countries and other statutory benefit plans. For the three months ended March 28, 2020 and March 30, 2019, the Company recorded $0.5 million and $0.2 million expense, respectively, in Cost of Sales and Other expense (income), net within the Condensed Consolidated Statements of Net Income. For three months ended March 28, 2020, the pre-tax amounts recognized in other comprehensive income (loss) as components of net periodic benefit costs for these plans were $0.2 million.

On April 7, 2020, the Company entered into a definitive agreement to purchase a group annuity contract, under which an insurance company will be required to pay and administer pension payments to certain of the Company’s UK pension plan participants, or their designated beneficiaries, who have been receiving pension payments. The purchase of this group annuity contract will reduce the Company’s outstanding pension benefit obligation by approximately $36 million, representing approximately 30% of the total obligations of the Company’s qualified pension plans, and will be funded with pension plan assets and additional cash on hand. In connection with this transaction, the Company will record a one-time non-cash settlement charge in the second half of 2021 currently estimated between $18 million and $22 million, reflecting the accelerated recognition of a portion of unamortized actuarial losses in the plan. The actual settlement charge could differ from this estimate due to final data and plan wind-up expenses.

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Inventories

3 Months Ended

Mar. 28, 2020

Inventory Disclosure [Abstract]

Inventories

Inventories

The components of inventories at March 28, 2020 and December 28, 2019 are as follows:

(in thousands)	March 28, 2020			December 28, 2019
Raw materials	$	75,202		$	76,732
Work in process	84,030			84,561
Finished goods	100,415			110,388
Inventory Reserves	(32,365		)	(34,174		)
Total	$	227,282		$	237,507

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Accrued Liabilities

3 Months Ended

Mar. 28, 2020

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued Liabilities

The components of accrued liabilities at March 28, 2020 and December 28, 2019 are as follows:

(in thousands)	March 28, 2020		December 28, 2019
Employee-related liabilities	$	32,381	$	40,774
Operating lease liability	7,073		7,259
Interest	3,159		5,058
Professional services	3,359		3,986
Restructuring liability	3,336		2,679
Other non-income taxes	2,058		1,940
Other	22,146		22,424
Total	$	73,512	$	84,120

Employee-related liabilities consist primarily of payroll, sales commissions, bonus, employee benefit accruals and workers’ compensation. Bonus accruals include amounts earned pursuant to the Company’s primary employee incentive compensation plans. Other accrued liabilities include miscellaneous operating accruals and other client-related liabilities.

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Condensed Consolidated Statements of Net Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Income Statement [Abstract]
Net sales	$ 346,096	$ 405,500
Cost of sales	222,384	250,272
Gross profit	123,712	155,228
Selling, general, and administrative expenses	54,386	62,955
Research and development expenses	14,595	21,409
Amortization of intangibles	9,981	10,191
Total operating expenses	78,962	94,555
Operating income	44,750	60,673
Interest expense	5,418	5,686
Foreign exchange loss	2,584	4,243
Other expense, net	1,249	4,305
Income before income taxes	35,499	46,439
Income taxes	10,855	9,450
Net income	$ 24,644	$ 36,989
Income per share:
Basic (in dollars per share)	$ 1.01	$ 1.50
Diluted (in dollars per share)	$ 1.00	$ 1.48
Weighted-average shares and equivalent shares outstanding:
Basic (in shares)	24,393	24,717
Diluted (in shares)	24,578	25,009

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Related Party Transactions (Tables)

3 Months Ended

Mar. 30, 2019

Related Party Transactions [Abstract]

Schedule of Related Party Transactions

	For the Three Months Ended March 28, 2020						For the Three Months Ended March 30, 2019
(in millions)	Powersem		EB Tech		ATEC		Powersem		EB Tech		ATEC
Sales to related party	$	0.4	$	—	$	—	$	0.1	$	—	$	—
Purchase material/ service from related party	0.2		—		1.8		0.8		0.1		1.5
	March 28, 2020						December 28, 2019
(in millions)	Powersem		EB Tech		ATEC		Powersem		EB Tech		ATEC
Accounts Receivable balance	$	0.1	$	—	$	—	$	—	$	—	$	—
Accounts Payable balance	0.1		—		—		0.2		—		0.1

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Condensed Consolidated Statements of Stockholders' Equity (Parentheticals) - $ / shares	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Statement of Stockholders' Equity [Abstract]
Cash dividends paid, per share (in dollars per share)	$ 0.48	$ 0.43

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Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 28, 2020

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring Basis

The following table presents assets measured at fair value by classification within the fair value hierarchy as of December 28, 2019: 

	Fair Value Measurements Using
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Cash Equivalents	$	118,999	$	—	$	—	$	118,999
Investments in equity securities	12,969		—		—		12,969
Mutual funds	10,464		—		—		10,464

The following table presents assets measured at fair value by classification within the fair value hierarchy as of March 28, 2020:

	Fair Value Measurements Using
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Cash Equivalents	$	198,221	$	—	$	—	$	198,221
Investments in equity securities	10,529		—		—		10,529
Mutual funds	8,769		—		—		8,769

Fair Value, by Balance Sheet Grouping

The carrying value and estimated fair values of the Company’s Euro Senior Notes, Series A and Series B and USD Senior Notes, Series A and Series B, as of March 28, 2020 and December 28, 2019 were as follows:

	March 28, 2020				December 28, 2019
(in thousands)	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Euro Senior Notes, Series A due 2023	$	128,316	$	121,124	$	129,808	$	131,710
Euro Senior Notes, Series B due 2028	104,189		94,743		105,400		110,336
USD Senior Notes, Series A due 2022	25,000		24,681		25,000		25,054
USD Senior Notes, Series B due 2027	100,000		97,097		100,000		102,548
USD Senior Notes, Series A due 2025	50,000		48,921		50,000		50,775
USD Senior Notes, Series B due 2030	125,000		118,648		125,000		127,701

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Restructuring, Impairment and Other Charges (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Apr. 30, 2019	Mar. 28, 2020	Mar. 30, 2019	Dec. 28, 2019
Restructuring Cost and Reserve [Line Items]
Total restructuring charges		$ 1,725	$ 2,735
Impairment charges		2,237	0
Restructuring costs		3,962	2,735
Restructuring reserves		3,300		$ 2,700
Employee terminations
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	$ 2,500	1,601	2,452
Other restructuring charges
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	$ 300	124	283
Electronics
Restructuring Cost and Reserve [Line Items]
Total restructuring charges		882	1,813
Impairment charges		0	0
Restructuring costs		882	1,813
Electronics | Employee terminations
Restructuring Cost and Reserve [Line Items]
Total restructuring charges		881	1,800
Electronics | Other restructuring charges
Restructuring Cost and Reserve [Line Items]
Total restructuring charges		1	13
Automotive
Restructuring Cost and Reserve [Line Items]
Total restructuring charges		519	625
Impairment charges		0	0
Restructuring costs		519	625
Automotive | Employee terminations
Restructuring Cost and Reserve [Line Items]
Total restructuring charges		399	605
Automotive | Other restructuring charges
Restructuring Cost and Reserve [Line Items]
Total restructuring charges		120	20
Industrial
Restructuring Cost and Reserve [Line Items]
Total restructuring charges		324	297
Impairment charges			0
Restructuring costs		2,561	297
Industrial | Employee terminations
Restructuring Cost and Reserve [Line Items]
Total restructuring charges		321	47
Industrial | Facility Closing
Restructuring Cost and Reserve [Line Items]
Impairment charges		2,237
Industrial | Other restructuring charges
Restructuring Cost and Reserve [Line Items]
Total restructuring charges		$ 3	$ 250

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Fair Value of Assets and Liabilities - Carrying Value and Estimated Fair Value of Senior Notes (Details) - USD ($) $ in Thousands	Mar. 28, 2020	Dec. 28, 2019
Carrying Value | Euro Senior Notes, Series A due 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt fair value	$ 128,316	$ 129,808
Carrying Value | Euro Senior Notes, Series B due 2028
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt fair value	104,189	105,400
Carrying Value | U.S. Senior Notes, Series A due 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt fair value	25,000	25,000
Carrying Value | U.S. Senior Notes, Series B due 2027
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt fair value	100,000	100,000
Carrying Value | U.S. Senior Notes, Series A due 2025
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt fair value	50,000	50,000
Carrying Value | U.S. Senior Notes, Series B due 2030
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt fair value	125,000	125,000
Estimated Fair Value | Euro Senior Notes, Series A due 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt fair value	121,124	131,710
Estimated Fair Value | Euro Senior Notes, Series B due 2028
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt fair value	94,743	110,336
Estimated Fair Value | U.S. Senior Notes, Series A due 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt fair value	24,681	25,054
Estimated Fair Value | U.S. Senior Notes, Series B due 2027
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt fair value	97,097	102,548
Estimated Fair Value | U.S. Senior Notes, Series A due 2025
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt fair value	48,921	50,775
Estimated Fair Value | U.S. Senior Notes, Series B due 2030
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt fair value	$ 118,648	$ 127,701

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Property, Plant, and Equipment

3 Months Ended

Mar. 28, 2020

Property, Plant and Equipment [Abstract]

Property, Plant, and Equipment

Property, Plant, and Equipment

The components of net property, plant, and equipment at March 28, 2020 and December 28, 2019 are as follows:

(in thousands)	March 28, 2020			December 28, 2019
Land	$	22,781		$	24,758
Building	105,067			108,501
Equipment	633,899			631,273
Accumulated depreciation and amortization	(426,918		)	(419,915		)
Total	$	334,829		$	344,617

The Company recorded depreciation expense of $13.8 million and $13.1 million for the three months ended March 28, 2020 and March 30, 2019, respectively.

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Restructuring, Impairment and Other Charges

3 Months Ended

Mar. 28, 2020

Restructuring and Related Activities [Abstract]

Restructuring, Impairment and Other Charges

Restructuring, Impairment and Other Charges

The Company recorded restructuring, impairment and other charges for the three months ended March 28, 2020 and March 30, 2019 as follows:

	Three months ended March 28, 2020
(in thousands)	Electronics		Automotive		Industrial		Total
Employee terminations	$	881	$	399	$	321	$	1,601
Other restructuring charges	1		120		3		124
Total restructuring charges	882		519		324		1,725
Impairment	—		—		2,237		2,237
Total	$	882	$	519	$	2,561	$	3,962

	Three months ended March 30, 2019
(in thousands)	Electronics		Automotive		Industrial		Total
Employee terminations	$	1,800	$	605	$	47	$	2,452
Other restructuring charges	13		20		250		283
Total restructuring charges	1,813		625		297		2,735
Impairment	—		—		—		—
Total	$	1,813	$	625	$	297	$	2,735

2020

For the three months ended March 28, 2020, the Company recorded total restructuring charges of $1.7 million, for employee termination costs and other restructuring charges. These charges primarily related to the reorganization of certain manufacturing, selling and administrative functions across all segments and the announced consolidation of a manufacturing facility within the Industrial segment. The Company also recognized $2.2 million of impairment charges related to the land and building associated

with the Company’s announcement to consolidate a manufacturing facility within the Industrial segment. The impairment charges were included in selling, general and administrative expenses.

2019

For three months ended March 30, 2019, the Company recorded total restructuring charges of $2.7 million, of which $2.5 million, was for employee termination costs and $0.3 million for other restructuring charges. These charges primarily related to reorganization of operations and selling, general and administrative functions as well as integration of IXYS within the Electronics segment and the reorganization of operations in the commercial vehicle products and automotive sensors businesses within the Automotive segment.

The restructuring reserves as of March 28, 2020 and December 28, 2019 are $3.3 million and $2.7 million, respectively. The restructuring reserves are included within accrued liabilities in the Condensed Consolidated Balance Sheets. The Company anticipates the remaining payments associated with employee terminations will primarily be completed by March 2021.

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Other Comprehensive Income (Loss)

3 Months Ended

Mar. 28, 2020

Equity [Abstract]

Other Comprehensive Income (Loss)

Other Comprehensive Income (Loss)

Changes in other comprehensive (loss) income by component were as follows:

(in thousands)	Three Months Ended March 28, 2020									Three Months Ended March 30, 2019
	Pre-tax			Tax			Net of Tax			Pre-tax			Tax			Net of Tax
Defined benefit pension plan adjustments	$	555		$	(6	)	$	561		$	(78	)	$	(29	)	$	(49	)
Foreign currency translation adjustments	(15,540		)	—			(15,540		)	8,122			—			8,122
Total change in other comprehensive income (loss)	$	(14,985	)	$	(6	)	$	(14,979	)	$	8,044		$	(29	)	$	8,073

The following tables set forth the changes in accumulated other comprehensive (loss) income by component for the three months ended March 28, 2020 and March 30, 2019:

(in thousands)	Pension and postretirement liability and reclassification adjustments			Foreign currency translation adjustment			Accumulated other comprehensive income (loss)
Balance at December 28, 2019	$	(18,046	)	$	(88,777	)	$	(106,823	)
Activity in the period	561			(15,540		)	(14,979		)
Balance at March 28, 2020	$	(17,485	)	$	(104,317	)	$	(121,802	)

(in thousands)	Pension and postretirement liability and reclassification adjustments			Foreign currency translation adjustment			Accumulated other comprehensive income (loss)
Balance at December 29, 2018	$	(9,959	)	$	(87,965	)	$	(97,924	)
Activity in the period	(49		)	8,122			8,073
Balance at March 30, 2019	$	(10,008	)	$	(79,843	)	$	(89,851	)

Amounts reclassified from accumulated other comprehensive (loss) income to earnings for the three months ended March 28, 2020 and March 30, 2019 were as follows:

	Three Months Ended
(in thousands)	March 28, 2020		March 30, 2019
Pension and Postemployment plans:
Amortization of prior service and net actuarial loss	$	345	$	62

The Company recognizes the amortization of prior service costs in Other (expense) income, net within the Condensed Consolidated Statements of Net Income.

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Earnings Per Share (Tables)

3 Months Ended

Mar. 28, 2020

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table sets forth the computation of basic and diluted earnings per share: 

	Three Months Ended
(in thousands, except per share amounts)	March 28, 2020		March 30, 2019
Numerator:
Net income as reported	$	24,644	$	36,989
Denominator:
Weighted average shares outstanding
Basic	24,393		24,717
Effect of dilutive securities	185		292
Diluted	24,578		25,009
Earnings Per Share:
Basic earnings per share	$	1.01	$	1.50
Diluted earnings per share	$	1.00	$	1.48

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Summary of Significant Accounting Policies and Other Information

3 Months Ended

Mar. 28, 2020

Accounting Policies [Abstract]

Summary of Significant Accounting Policies and Other Information

Summary of Significant Accounting Policies and Other Information

Nature of Operations 

Littelfuse, Inc. and subsidiaries (the “Company”) is a global manufacturer of leading technologies in circuit protection, power control and sensing. Serving over 100,000 end customers, the Company’s products are found in automotive and commercial vehicles, industrial applications, data and telecommunications, medical devices, consumer electronics and appliances. With its broad product portfolio of fuses, semiconductors, polymers, ceramics, relays and sensors, and extensive global infrastructure, the Company’s worldwide associates partner with its customers to design, manufacture and deliver innovative, high-quality solutions for a safer, greener and increasingly connected world.

Basis of Presentation 

The Company’s accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures normally included in the consolidated balance sheets, statements of net income and comprehensive income, statements of cash flows, and statement of stockholders' equity prepared in conformity with U.S. GAAP have been condensed or omitted as permitted by such rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. They have been prepared in accordance with accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2019 which should be read in conjunction with the disclosures therein. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal, recurring nature. Operating results for interim periods are not necessarily indicative of annual operating results.

Revenue Recognition

Revenue Disaggregation

The following tables disaggregate the Company’s revenue by primary business units for the three months ended March 28, 2020 and March 30, 2019:

	Three Months Ended March 28, 2020
(in thousands)	Electronics Segment		Automotive Segment		Industrial Segment		Total
Electronics – Passive Products and Sensors	$	84,598	$	—	$	—	$	84,598
Electronics – Semiconductor	129,591		—		—		129,591
Passenger Car Products	—		52,645		—		52,645
Automotive Sensors	—		24,174		—		24,174
Commercial Vehicle Products	—		27,951		—		27,951
Industrial Products	—		—		27,137		27,137
Total	$	214,189	$	104,770	$	27,137	$	346,096

	Three Months Ended March 30, 2019
(in thousands)	Electronics Segment		Automotive Segment		Industrial Segment		Total
Electronics – Passive Products and Sensors	$	108,377	$	—	$	—	$	108,377
Electronics – Semiconductor	157,017		—		—		157,017
Passenger Car Products	—		56,543		—		56,543
Automotive Sensors	—		26,057		—		26,057
Commercial Vehicle Products	—		30,883		—		30,883
Industrial Products	—		—		26,623		26,623
Total	$	265,394	$	113,483	$	26,623	$	405,500

See Note 16, Segment Information for net sales by segment and countries.

Revenue Recognition

The Company recognizes revenue on product sales in the period in which the Company satisfies its performance obligation and control of the product is transferred to the customer. The Company’s sales arrangements with customers are predominately short term in nature and generally provide for transfer of control at the time of shipment as this is the point at which title and risk of loss of the product transfers to the customer. At the end of each period, for those shipments where title to the products and the risk of loss and rewards of ownership do not transfer until the product has been received by the customer, the Company adjusts revenues and cost of sales for the delay between the time that the products are shipped and when they are received by the customer. The amount of revenue recorded reflects the consideration to which the Company expects to be entitled in exchange for goods and may include adjustments for customer allowance, rebates and price adjustments. The Company’s distribution channels are primarily through direct sales and independent third-party distributors.

The Company elected the practical expedient under Accounting Standards Codification ("ASC") 340-40-25-4 to expense commissions when incurred as the amortization period of the commission asset the Company would have otherwise recognized is less than one year.

Revenue and Billing

The Company generally accepts orders from customers through receipt of purchase orders or electronic data interchange based on written sales agreements and purchasing contracts. Contract pricing and selling agreement terms are based on market factors, costs, and competition. Pricing is often negotiated as an adjustment (premium or discount) from the Company’s published price lists. The customer is invoiced when the Company’s products are shipped to them in accordance with the terms of the sales agreement. As the Company’s standard payment terms are less than one year, the Company elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company also elected the practical expedient provided in ASC 606-10-25-18B to treat all product shipping and handling activities as fulfillment activities, and therefore recognize the gross revenue associated with the contract, inclusive of any shipping and handling revenue.

Ship and Debit Program

Some of the terms of the Company’s sales agreements and normal business conditions provide customers (distributors) the ability to receive price adjustments on products previously shipped and invoiced. This practice is common in the industry and is referred to as a “ship and debit” program. This program allows the distributor to debit the Company for the difference between the distributors’ contracted price and a lower price for specific transactions. Under certain circumstances (usually in a competitive situation or large volume opportunity), a distributor will request authorization for pricing allowances to reduce its price. When the Company approves such a reduction, the distributor is authorized to “debit” its account for the difference between the contracted price and the lower approved price. The Company establishes reserves for this program based on historic activity, electronic distributor inventory levels and actual authorizations for the debit and recognizes these debits as a reduction of revenue.

Return to Stock 

The Company has a return to stock policy whereby certain customers, with prior authorization from Littelfuse management, can return previously purchased goods for full or partial credit. The Company establishes an estimated allowance for these returns based on historic activity. Sales revenue and cost of sales are reduced to anticipate estimated returns.

Volume Rebates

The Company offers volume based sales incentives to certain customers to encourage greater product sales. If customers achieve their specific quarterly or annual sales targets, they are entitled to rebates. The Company estimates the projected amount of rebates that will be achieved by the customer and recognizes this estimated cost as a reduction to revenue as products are sold.

Recently Adopted Accounting Standards

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments." The standard modifies the measurement approach for credit losses on financial instruments, including trade receivables, from an incurred loss method to a current expected credit loss method ("CECL"). The standard requires the measurement of expected credit losses to be based on relevant information, including historical experiences, current conditions and a forecast that is supportable. The Company adopted the new standard on December 29, 2019. The adoption of the standard did not have a material effect on our Condensed Consolidated Financial Statements.

In August 2018, the FASB issued ASU No. 2018-13 "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirement for Fair Value Measurement." ASU 2018-13 modifies the disclosure requirements in Topic 820: "Fair Value Measurement," based on the FASB Concepts Statement, "Conceptual Framework for Financial Reporting - Chapter 8: Notes to Financial Statements," including consideration of costs and benefits. The new standard removes certain disclosures, modifies certain disclosures and adds additional disclosures related to fair value measurement. The Company adopted the new standard on December 29, 2019. The adoption of ASU 2018- 13 did not have a material impact on our Condensed Consolidated Financial Statements.

In August 2018, the FASB issued ASU No. 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic: 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)." ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company adopted the new standard on December 29, 2019. The adoption of ASU 2018-15 did not have a material impact on our Condensed Consolidated Financial Statements.

In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This ASU provides optional expedient and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The objective of this is to provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting due to the cessation of the London Interbank Offered Rate (LIBOR). The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. The Company does not expect a material effect from the adoption of this guidance on its Condensed Consolidated Financial Statements.

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Debt (Tables)

3 Months Ended

Mar. 28, 2020

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

The carrying amounts of debt at March 28, 2020 and December 28, 2019 are as follows:

(in thousands)	March 28, 2020			December 28, 2019
Revolving Credit Facility	$	100,000		$	—
Term Loan	142,500			145,000
Euro Senior Notes, Series A due 2023	128,316			129,808
Euro Senior Notes, Series B due 2028	104,189			105,400
U.S. Senior Notes, Series A due 2022	25,000			25,000
U.S. Senior Notes, Series B due 2027	100,000			100,000
U.S. Senior Notes, Series A due 2025	50,000			50,000
U.S. Senior Notes, Series B due 2030	125,000			125,000
Other	2,619			2,619
Unamortized debt issuance costs	(3,429		)	(3,669		)
Total debt	774,195			679,158
Less: Current maturities	(10,000		)	(10,000		)
Total long-term debt	$	764,195		$	669,158

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Document and Entity Information - shares	3 Months Ended
	Mar. 28, 2020	Apr. 24, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 28, 2020
Document Transition Report	false
Entity File Number	0-20388
Entity Registrant Name	LITTELFUSE INC /DE
Entity Central Index Key	0000889331
Current Fiscal Year End Date	--12-26
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-3795742
Entity Address, Address Line One	8755 West Higgins Road
Entity Address, Address Line Two	Suite 500
Entity Address, City or Town	Chicago
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60631
City Area Code	773
Local Phone Number	628-1000
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	LFUS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		24,276,841

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 24,644	$ 36,989
Other comprehensive income (loss):
Pension and postemployment adjustment, net of tax	561	(49)
Foreign currency translation adjustments	(15,540)	8,122
Comprehensive income	$ 9,665	$ 45,062

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Debt - Carrying Amounts of Long-term Debt (Details) - USD ($) $ in Thousands	Mar. 28, 2020	Dec. 28, 2019
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ (3,429)	$ (3,669)
Total debt	774,195	679,158
Less: Current maturities	(10,000)	(10,000)
Total long-term debt	764,195	669,158
Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt, gross	100,000	0
Term Loan
Debt Instrument [Line Items]
Long-term debt, gross	142,500	145,000
Euro Senior Notes, Series A due 2023
Debt Instrument [Line Items]
Long-term debt, gross	128,316	129,808
Euro Senior Notes, Series B due 2028
Debt Instrument [Line Items]
Long-term debt, gross	104,189	105,400
U.S. Senior Notes, Series A due 2022
Debt Instrument [Line Items]
Long-term debt, gross	25,000	25,000
U.S. Senior Notes, Series B due 2027
Debt Instrument [Line Items]
Long-term debt, gross	100,000	100,000
U.S. Senior Notes, Series A due 2025
Debt Instrument [Line Items]
Long-term debt, gross	50,000	50,000
U.S. Senior Notes, Series B due 2030
Debt Instrument [Line Items]
Long-term debt, gross	125,000	125,000
Other
Debt Instrument [Line Items]
Long-term debt, gross	$ 2,619	$ 2,619

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Fair Value of Assets and Liabilities - Narrative (Details) - USD ($)	Mar. 23, 2020	Dec. 28, 2019
Fair Value Disclosures [Abstract]
Notional amount of derivatives		$ 16,000,000.0
Gain on derivatives	$ 200,000

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Goodwill and Other Intangible Assets - Estimated Amortization Expense Related to Intangible Assets with Definite Lives (Details) $ in Thousands	Mar. 28, 2020 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2020	$ 38,291
2021	37,487
2022	36,561
2023	32,195
2024	29,135
2025 and thereafter	144,705
Total	$ 318,374

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Property, Plant, and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019	Dec. 28, 2019
Property, Plant and Equipment [Line Items]
Accumulated depreciation and amortization	$ (426,918)		$ (419,915)
Total	334,829		344,617
Depreciation	13,821	$ 13,088
Land
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	22,781		24,758
Building
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	105,067		108,501
Equipment
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	$ 633,899		$ 631,273

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Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance	$ 1,496,014	$ 1,478,342
Activity in the period	(14,979)	8,073
Balance	1,476,948	1,505,388
Pension and postretirement liability and reclassification adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance	(18,046)	(9,959)
Activity in the period	561	(49)
Balance	(17,485)	(10,008)
Foreign currency translation adjustment
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance	(88,777)	(87,965)
Activity in the period	(15,540)	8,122
Balance	(104,317)	(79,843)
Accumulated other comprehensive income (loss)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance	(106,823)	(97,924)
Activity in the period	(14,979)	8,073
Balance	$ (121,802)	$ (89,851)

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Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Numerator:
Net income as reported	$ 24,644	$ 36,989
Weighted average shares outstanding
Basic (in shares)	24,393	24,717
Effect of dilutive securities (in shares)	185	292
Diluted (in shares)	24,578	25,009
Earnings Per Share:
Basic earnings per share (in dollars per share)	$ 1.01	$ 1.50
Diluted earnings per share (in dollars per share)	$ 1.00	$ 1.48

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Segment Information - Revenues and Long-lived Assets by Geographical Area (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019	Dec. 28, 2019
Segment Reporting Information [Line Items]
Net sales	$ 346,096	$ 405,500
Long-lived assets	334,829		$ 344,617
Additions to long-lived assets	11,308	14,076
United States
Segment Reporting Information [Line Items]
Net sales	102,910	119,528
Long-lived assets	54,870		58,081
Additions to long-lived assets	580	905
China
Segment Reporting Information [Line Items]
Net sales	86,015	106,866
Long-lived assets	83,830		88,306
Additions to long-lived assets	1,657	1,225
Mexico
Segment Reporting Information [Line Items]
Long-lived assets	69,664		73,096
Additions to long-lived assets	2,592	5,484
Germany
Segment Reporting Information [Line Items]
Long-lived assets	35,483		36,025
Additions to long-lived assets	753	598
Philippines
Segment Reporting Information [Line Items]
Long-lived assets	55,347		51,738
Additions to long-lived assets	3,218	5,229
Other countries
Segment Reporting Information [Line Items]
Net sales	157,171	179,106
Long-lived assets	35,635		$ 37,371
Additions to long-lived assets	$ 2,508	$ 635

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Segment Information

3 Months Ended

Mar. 28, 2020

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company and its subsidiaries design, manufacture and sell components and modules for circuit protection, power control and sensing throughout the world. The Company reports its operations by the following segments: Electronics, Automotive, and Industrial. An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, and about which separate financial information is regularly evaluated by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources. The CODM is the Company’s President and Chief Executive Officer (“CEO”). The CODM allocates resources to and assesses the performance of each operating segment using information about its revenue and operating income (loss) before interest and taxes, but does not evaluate the operating segments using discrete balance sheet information.

Sales, marketing, and research and development expenses are charged directly into each operating segment. Purchasing, logistics, customer service, finance, information technology, and human resources are shared functions that are allocated back to the three operating segments. The Company does not report inter-segment revenue because the operating segments do not record it. Certain expenses, determined by the CODM to be strategic in nature and not directly related to segments' current results, are not allocated but identified as “Other”. Additionally, the Company does not allocate interest and other income, interest expense, or taxes to operating segments. These costs are not allocated to the segments, as management excludes such costs when assessing the performance of the segments. Although the CODM uses operating income (loss) to evaluate the segments, operating costs included in one segment may benefit other segments. Except as discussed above, the accounting policies for segment reporting are the same as for the Company as a whole.

• Electronics Segment: Consists of one of the broadest product offerings in the industry, including fuses and fuse accessories,

positive temperature coefficient (“PTC”) resettable fuses, polymer electrostatic discharge (“ESD”) suppressors, varistors,

reed switch based magnetic sensing, gas discharge tubes; semiconductor products such as discrete transient voltage

suppressor (“TVS”) diodes, TVS diode arrays, protection and switching thyristors, metal-oxide-semiconductor field effect

transistors (“MOSFETs”) and silicon carbide diodes; and insulated gate bipolar transistors (“IGBT”) technologies.

The segment covers a broad range of end markets, including industrial and automotive electronics, electric vehicle and related infrastructure, data and telecommunications, medical devices, alternative energy, consumer electronics and white goods.

• Automotive Segment: Consists of a wide range of circuit protection, power control and sensing technologies for global original equipment manufacturers (“OEMs”), Tier-I suppliers and parts distributors in passenger car, heavy duty truck, off-road vehicles, material handling, agricultural, construction and other commercial vehicle end markets. Passenger car fuse products include fuses and fuse accessories for internal combustion engine vehicles and hybrid and electric vehicles including blade fuses, battery cable protectors, resettable fuses, high-current fuses, and high-voltage fuses. Commercial vehicle products include fuses, switches, relays, and power distribution modules for the commercial vehicle industry. Automotive sensor products include a wide range of automotive and commercial vehicle products designed to monitor the passenger compartment occupants, safety and environment as well as the vehicle’s powertrain.

• Industrial Segment: Consists of power fuses, protection relays and controls and other circuit protection products for use in various industrial applications such as oil, gas, mining, alternative energy, electric vehicle infrastructure, non-residential construction, HVAC systems, elevators and other industrial equipment.

Segment information is summarized as follows: 

	Three Months Ended
(in thousands)	March 28, 2020			March 30, 2019
Net sales
Electronics	$	214,189		$	265,394
Automotive	104,770			113,483
Industrial	27,137			26,623
Total net sales	$	346,096		$	405,500
Depreciation and amortization
Electronics	$	15,531		$	15,342
Automotive	7,187			6,877
Industrial	1,084			1,060
Total depreciation and amortization	$	23,802		$	23,279
Operating income (loss)
Electronics	$	32,272		$	49,037
Automotive	14,116			13,200
Industrial	3,534			3,505
Other(a)	(5,172		)	(5,069		)
Total operating income	44,750			60,673
Interest expense	5,418			5,686
Foreign exchange loss	2,584			4,243
Other expense, net	1,249			4,305
Income before income taxes	$	35,499		$	46,439

(a) Included in “Other” Operating income (loss) for the 2020 first quarter is $1.2 million of acquisition-related and integration charges related to the IXYS acquisition and other contemplated acquisitions. In addition, there were $4.0 million of restructuring, impairment and other charges, primarily related to impairment charges of $2.2 million associated with the announced consolidation of a manufacturing facility within the Industrial segment and $1.7 million of employee termination costs and other restructuring charges. See Note 7, Restructuring, Impairment and Other Charges, for further discussion.

Included in "Other" Operating income (loss) for the first quarter of 2019 is $2.4 million of acquisition integration charges primarily related to the IXYS acquisition. In addition, there were $2.7 million of restructuring charges primarily related to employee termination costs.

The Company’s net sales by country were as follows:

	Three Months Ended
(in thousands)	March 28, 2020		March 30, 2019
Net sales
United States	$	102,910	$	119,528
China	86,015		106,866
Other countries(a)	157,171		179,106
Total net sales	$	346,096	$	405,500

 The Company’s long-lived assets by country were as follows:

(in thousands)	March 28, 2020		December 28, 2019
Long-lived assets
United States	$	54,870	$	58,081
China	83,830		88,306
Mexico	69,664		73,096
Germany	35,483		36,025
Philippines	55,347		51,738
Other countries(a)	35,635		37,371
Total long-lived assets	$	334,829	$	344,617

The Company’s additions to long-lived assets by country were as follows:

	Three Months Ended
(in thousands)	March 28, 2020		March 30, 2019
Additions to long-lived assets
United States	$	580	$	905
China	1,657		1,225
Mexico	2,592		5,484
Germany	753		598
Philippines	3,218		5,229
Other countries(a)	2,508		635
Total additions to long-lived assets	$	11,308	$	14,076

(a)

Each country included in other countries is less than 10% of net sales.

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Property, Plant, and Equipment (Tables)

3 Months Ended

Mar. 28, 2020

Property, Plant and Equipment [Abstract]

Components of net property, plant, and equipment

The components of net property, plant, and equipment at March 28, 2020 and December 28, 2019 are as follows:

(in thousands)	March 28, 2020			December 28, 2019
Land	$	22,781		$	24,758
Building	105,067			108,501
Equipment	633,899			631,273
Accumulated depreciation and amortization	(426,918		)	(419,915		)
Total	$	334,829		$	344,617

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Benefit Plans (Tables)

3 Months Ended

Mar. 28, 2020

Retirement Benefits [Abstract]

Schedule of Net Benefit Costs

The components of net periodic benefit cost for the three months ended March 28, 2020 and March 30, 2019 were as follows: 

	For the Three Months Ended
(in thousands)	March 28, 2020			March 30, 2019
Components of net periodic benefit cost:
Service cost	$	618		$	500
Interest cost	658			784
Expected return on plan assets	(727		)	(790		)
Amortization of prior service and net actuarial loss	145			62
Net periodic benefit cost	$	694		$	556

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Accrued Liabilities (Tables)

3 Months Ended

Mar. 28, 2020

Payables and Accruals [Abstract]

Components of accrued liabilities

The components of accrued liabilities at March 28, 2020 and December 28, 2019 are as follows:

(in thousands)	March 28, 2020		December 28, 2019
Employee-related liabilities	$	32,381	$	40,774
Operating lease liability	7,073		7,259
Interest	3,159		5,058
Professional services	3,359		3,986
Restructuring liability	3,336		2,679
Other non-income taxes	2,058		1,940
Other	22,146		22,424
Total	$	73,512	$	84,120

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Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Mar. 28, 2020	Dec. 28, 2019
Statement of Financial Position [Abstract]
Allowance for trade receivables	$ 37,482	$ 42,043
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock authorized (in shares)	34,000,000	34,000,000
Common stock issued (in shares)	25,902,213	25,855,203
Treasury stock (in shares)	1,626,357	1,473,901

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Segment Information (Tables)

3 Months Ended

Mar. 28, 2020

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Segment information is summarized as follows: 

	Three Months Ended
(in thousands)	March 28, 2020			March 30, 2019
Net sales
Electronics	$	214,189		$	265,394
Automotive	104,770			113,483
Industrial	27,137			26,623
Total net sales	$	346,096		$	405,500
Depreciation and amortization
Electronics	$	15,531		$	15,342
Automotive	7,187			6,877
Industrial	1,084			1,060
Total depreciation and amortization	$	23,802		$	23,279
Operating income (loss)
Electronics	$	32,272		$	49,037
Automotive	14,116			13,200
Industrial	3,534			3,505
Other(a)	(5,172		)	(5,069		)
Total operating income	44,750			60,673
Interest expense	5,418			5,686
Foreign exchange loss	2,584			4,243
Other expense, net	1,249			4,305
Income before income taxes	$	35,499		$	46,439

(a) Included in “Other” Operating income (loss) for the 2020 first quarter is $1.2 million of acquisition-related and integration charges related to the IXYS acquisition and other contemplated acquisitions. In addition, there were $4.0 million of restructuring, impairment and other charges, primarily related to impairment charges of $2.2 million associated with the announced consolidation of a manufacturing facility within the Industrial segment and $1.7 million of employee termination costs and other restructuring charges. See Note 7, Restructuring, Impairment and Other Charges, for further discussion.

Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country

The Company’s net sales by country were as follows:

	Three Months Ended
(in thousands)	March 28, 2020		March 30, 2019
Net sales
United States	$	102,910	$	119,528
China	86,015		106,866
Other countries(a)	157,171		179,106
Total net sales	$	346,096	$	405,500

 The Company’s long-lived assets by country were as follows:

(in thousands)	March 28, 2020		December 28, 2019
Long-lived assets
United States	$	54,870	$	58,081
China	83,830		88,306
Mexico	69,664		73,096
Germany	35,483		36,025
Philippines	55,347		51,738
Other countries(a)	35,635		37,371
Total long-lived assets	$	334,829	$	344,617

The Company’s additions to long-lived assets by country were as follows:

	Three Months Ended
(in thousands)	March 28, 2020		March 30, 2019
Additions to long-lived assets
United States	$	580	$	905
China	1,657		1,225
Mexico	2,592		5,484
Germany	753		598
Philippines	3,218		5,229
Other countries(a)	2,508		635
Total additions to long-lived assets	$	11,308	$	14,076

(a)

Each country included in other countries is less than 10% of net sales.

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Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Addl. Paid in Capital	Treasury Stock	Accum. Other Comp. Inc. (Loss)	Retained Earnings	Non- controlling Interest
Balance at Dec. 29, 2018	$ 1,478,342	$ 254	$ 835,828	$ (116,454)	$ (97,924)	$ 856,507	$ 131
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	36,989					36,989
Activity in the period	8,073				8,073
Stock-based compensation	3,966		3,966
Withheld shares on restricted share units for withholding taxes	(94)			(94)
Stock options exercised	2,292		2,292
Repurchases of common stock	(13,555)			(13,555)
Cash dividends paid	(10,625)					(10,625)
Balance at Mar. 30, 2019	1,505,388	254	842,086	(130,103)	(89,851)	882,871	131
Balance at Dec. 28, 2019	1,496,014	256	867,996	(216,447)	(106,823)	950,901	131
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	24,644					24,644
Activity in the period	(14,979)				(14,979)
Stock-based compensation	2,965		2,965
Withheld shares on restricted share units for withholding taxes	(443)			(443)
Stock options exercised	3,399		3,399
Repurchases of common stock	(22,927)			(22,927)
Cash dividends paid	(11,725)					(11,725)
Balance at Mar. 28, 2020	$ 1,476,948	$ 256	$ 874,360	$ (239,817)	$ (121,802)	$ 963,820	$ 131

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Lease Commitments

3 Months Ended

Mar. 28, 2020

Leases [Abstract]

Lease Commitments

Lease Commitments

The Company leases office and production space under various non-cancelable operating leases that expire no later than 2028. Certain real estate leases include one or more options to renew. The exercise of lease renewal options is at the Company's sole discretion. Options to extend the lease are included in the lease term when it is reasonably certain the Company will exercise the option. The Company also has production equipment, office equipment and vehicles under operating leases. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option that is reasonably certain of exercise. Certain leases include rental payments adjusted periodically for inflation. The lease agreements do not contain any material residual value guarantee or material restrictive covenants.

The Company does not have a published credit rating because it has no publicly traded debt; therefore, the Company is generating its incremental borrowing rate (IBR), using a synthetic credit rating model that compares its credit quality to other rated companies based on certain financial metrics and ratios. The reference rate will be based on the yield curve of companies with similar credit quality based on the metrics and adjusted for currency in regions where we have significant operations.

All leases with an initial term of 12 months or less that do not include an option to extend or purchase the underlying asset that the Company is reasonably certain to exercise (“short-term leases”) are not recorded on the Condensed Consolidated Balance Sheet. Short-term lease expenses are recognized on a straight-line basis over the lease term.

The following table presents the classification of ROU assets and lease liabilities at March 28, 2020 and December 28, 2019:

Leases (in thousands)	Condensed Consolidated Balance Sheet Classification	March 28, 2020		December 28, 2019
Assets
Operating ROU assets	Right of use lease assets, net	$	20,611	$	21,918
Liabilities
Current operating lease liabilities	Accrued liabilities	$	7,073	$	7,259
Non-current operating lease liabilities	Non-current operating lease liabilities	$	15,960	$	17,166
Total lease liabilities		$	23,033	$	24,425

The following table represents the lease costs for the three months ended March 28, 2020 and March 30, 2019:

Leases cost (in thousands)	Condensed Consolidated Statements of Net Income Classification	Three Months Ended March 28, 2020		Three Months Ended March 30, 2019
Short-term lease expenses	Cost of sales, SG&A expenses	$	117	$	153
Variable lease expenses	Cost of sales, SG&A expenses	318		194
Operating lease rent expenses	Cost of sales, SG&A expenses	2,173		2,193
Total operating lease costs	Cost of sales, SG&A expenses	$	2,608	$	2,540

Maturity of Lease Liabilities as of March 28, 2020 (in thousands)	Operating leases
2020 (excluding the three months ended March 28, 2020)	$	6,156
2021	6,620
2022	5,341
2023	3,590
2024	3,177
2025 and thereafter	498
Total lease payments	$	25,382
Present value of lease liabilities	$	23,033

Operating Lease Term and Discount Rate	March 28, 2020
Weighted-average remaining lease term (years)	3.90
Weighted-average discount rate	5.04	%

Other Information (in thousands)	Three Months Ended March 28, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flow payments for operating leases	$	(2,242	)
Leased assets obtained in exchange for operating lease liabilities	848

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Fair Value of Assets and Liabilities

3 Months Ended

Mar. 28, 2020

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities

Fair Value of Assets and Liabilities

For assets and liabilities measured at fair value on a recurring and nonrecurring basis, a three-level hierarchy of measurements based upon observable and unobservable inputs is used to arrive at fair value. Observable inputs are developed based on market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions about valuation based on the best information available in the circumstances. Depending on the inputs, the Company classifies each fair value measurement as follows:

Level 1—Valuations based on unadjusted quoted prices for identical assets or liabilities in active markets;

Level 2—Valuations based upon quoted prices for similar instruments, prices for identical or similar instruments in markets that are not active, or model-derived valuations, all of whose significant inputs are observable, and

Level 3—Valuations based upon one or more significant unobservable inputs.

Following is a description of the valuation methodologies used for instruments measured at fair value and their classification in the valuation hierarchy.

Cash Equivalents

Cash equivalents primarily consist of money market funds, which are held with an institution with sound credit rating and are highly liquid. The Company classified cash equivalents as Level 1 and are valued at cost which approximates fair value.

Investments in Equity Securities

Investments in equity securities listed on a national market or exchange are valued at the last sales price and classified within Level 1 of the valuation hierarchy and recorded in investments and other assets.

The Company has certain convertible debt and convertible preferred stock investments that are accounted for under the cost method reflected in other assets in the Condensed Consolidated Balance Sheets. During the three months ended March 30, 2019, the Company recorded impairment charges of $2.8 million in Other expense (income), net in the Condensed Consolidated Statements of Net Income to adjust these certain investments to their estimated fair value. As of March 28, 2020 and December 28, 2019, the balances of these investments were $0.4 million. The fair value of these investments are measured on a nonrecurring basis and determined to be Level 3 under the fair value hierarchy. The Company's accounting and finance management determines the valuation policies and procedures for Level 3 fair value measurements and is responsible for the development and determination of unobservable inputs.

Mutual Funds

The Company has a non-qualified Supplemental Retirement and Savings Plan which provides additional retirement benefits for certain management employees and named executive officers by allowing participants to defer a portion of their annual compensation. The Company maintains accounts for participants through which participants make investment elections. The marketable securities are classified as Level 1 under the fair value hierarchy as they are maintained in mutual funds with readily determinable fair value and recorded in other assets.

There were no changes during the quarter ended March 28, 2020 to the Company’s valuation techniques used to measure asset and liability fair values on a recurring basis. On October 30, 2019, the Company entered a foreign currency exchange forward contract to mitigate the currency fluctuation risk between the Chinese renminbi and U.S. dollar. The foreign currency contract was not designated as a hedge instrument and was marked to market on a monthly basis. The notional value of the forward contracts at December 28, 2019 was $16.0 million and expires on May 5, 2020. On March 23, 2020, the Company unwound the foreign currency exchange forward contract entered on October 30, 2019 and recognized a gain of $0.2 million within Other expenses,

net during the three months ended March 28, 2020. The fair values of the foreign currency forward contract was determined to be Level 2 under the fair value hierarchy and is valued using market exchange rates.

As of March 28, 2020 and December 28, 2019, the Company did not hold any non-financial assets or liabilities that are required to be measured at fair value on a recurring basis.

The following table presents assets measured at fair value by classification within the fair value hierarchy as of March 28, 2020:

	Fair Value Measurements Using
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Cash Equivalents	$	198,221	$	—	$	—	$	198,221
Investments in equity securities	10,529		—		—		10,529
Mutual funds	8,769		—		—		8,769

The following table presents assets measured at fair value by classification within the fair value hierarchy as of December 28, 2019: 

	Fair Value Measurements Using
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Cash Equivalents	$	118,999	$	—	$	—	$	118,999
Investments in equity securities	12,969		—		—		12,969
Mutual funds	10,464		—		—		10,464

In addition to the methods and assumptions used for the financial instruments recorded at fair value as discussed above, the following methods and assumptions are used to estimate the fair value of other financial instruments that are not marked to market on a recurring basis. The Company’s other financial instruments include cash and cash equivalents, short-term investments, accounts receivable and its long-term debt. Due to their short-term maturity, the carrying amounts of cash and cash equivalents, short-term investments and accounts receivable approximate their fair values. The Company’s revolving and term loan debt facilities’ fair values approximate book value at March 28, 2020 and December 28, 2019, as the rates on these borrowings are variable in nature.

The carrying value and estimated fair values of the Company’s Euro Senior Notes, Series A and Series B and USD Senior Notes, Series A and Series B, as of March 28, 2020 and December 28, 2019 were as follows:

	March 28, 2020				December 28, 2019
(in thousands)	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Euro Senior Notes, Series A due 2023	$	128,316	$	121,124	$	129,808	$	131,710
Euro Senior Notes, Series B due 2028	104,189		94,743		105,400		110,336
USD Senior Notes, Series A due 2022	25,000		24,681		25,000		25,054
USD Senior Notes, Series B due 2027	100,000		97,097		100,000		102,548
USD Senior Notes, Series A due 2025	50,000		48,921		50,000		50,775
USD Senior Notes, Series B due 2030	125,000		118,648		125,000		127,701

The Company recognized impairment charges of $1.9 million for the land and building and $0.3 million for a certain patent as a result of the Company’s announcement to consolidate a manufacturing facility within the Industrial segment. See Note 7, Restructuring, Impairment and Other Charges, for further discussion. The fair value of the land and building was determined to be Level 3 under the fair value hierarchy and was valued using a real estate appraisal.

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Benefit Plans - Benefit Plan Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Retirement Benefits [Abstract]
Service cost	$ 618	$ 500
Interest cost	658	784
Expected return on plan assets	(727)	(790)
Amortization of prior service and net actuarial loss	145	62
Net periodic benefit cost	$ 694	$ 556

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Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 28, 2020	Dec. 28, 2019
Payables and Accruals [Abstract]
Employee-related liabilities	$ 32,381	$ 40,774
Interest	7,073	7,259
Interest	3,159	5,058
Restructuring liability	3,359	3,986
Restructuring liability	3,336	2,679
Other non-income taxes	2,058	1,940
Other	22,146	22,424
Total	$ 73,512	$ 84,120

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Fair Value of Assets and Liabilities - Assets Measured at Fair Value (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019	Dec. 28, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	$ 198,221		$ 118,999
Impairment charges	2,237
Investments in equity securities	10,529		12,969
Mutual funds	8,769		10,464
Impairment charges	2,237	$ 0
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	198,221
Investments in equity securities	10,529		12,969
Mutual funds	8,769		10,464
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	0		0
Investments in equity securities	0		0
Mutual funds	0		0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	0		0
Investments in equity securities	0		0
Mutual funds	0		0
Other Expense (Income)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment charges		$ 2,800
Investments in equity securities	400		$ 400
Land and Building
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment charges	1,900
Patents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment charges	$ 300

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Income Taxes (Details Textual)	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Income Tax Disclosure [Abstract]
Effective tax rate	30.60%	20.30%

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Segment Information - Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Segment Reporting Information [Line Items]
Net sales	$ 346,096	$ 405,500
Depreciation and amortization	23,802	23,279
Operating income (loss)	44,750	60,673
Interest expense	5,418	5,686
Foreign exchange loss	2,584	4,243
Other expense, net	1,249	4,305
Income before income taxes	35,499	46,439
Electronics
Segment Reporting Information [Line Items]
Net sales	214,189	265,394
Automotive
Segment Reporting Information [Line Items]
Net sales	104,770	113,483
Industrial
Segment Reporting Information [Line Items]
Net sales	27,137	26,623
Operating Segments | Electronics
Segment Reporting Information [Line Items]
Net sales	214,189	265,394
Depreciation and amortization	15,531	15,342
Operating income (loss)	32,272	49,037
Operating Segments | Automotive
Segment Reporting Information [Line Items]
Net sales	104,770	113,483
Depreciation and amortization	7,187	6,877
Operating income (loss)	14,116	13,200
Operating Segments | Industrial
Segment Reporting Information [Line Items]
Net sales	27,137	26,623
Depreciation and amortization	1,084	1,060
Operating income (loss)	3,534	3,505
Corporate, Non-Segment | Other
Segment Reporting Information [Line Items]
Operating income (loss)	$ (5,172)	$ (5,069)

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Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangibles	$ 9,981	$ 10,191
Impairment of intangibles	$ 300

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Summary of Significant Accounting Policies and Other Information - Revenue Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Disaggregation of Revenue [Line Items]
Net sales	$ 346,096	$ 405,500
Electronics – Passive Products and Sensors
Disaggregation of Revenue [Line Items]
Net sales	84,598	108,377
Electronics – Semiconductor
Disaggregation of Revenue [Line Items]
Net sales	129,591	157,017
Passenger Car Products
Disaggregation of Revenue [Line Items]
Net sales	52,645	56,543
Automotive Sensors
Disaggregation of Revenue [Line Items]
Net sales	24,174	26,057
Commercial Vehicle Products
Disaggregation of Revenue [Line Items]
Net sales	27,951	30,883
Industrial Products
Disaggregation of Revenue [Line Items]
Net sales	27,137	26,623
Electronics Segment
Disaggregation of Revenue [Line Items]
Net sales	214,189	265,394
Electronics Segment | Electronics – Passive Products and Sensors
Disaggregation of Revenue [Line Items]
Net sales	84,598	108,377
Electronics Segment | Electronics – Semiconductor
Disaggregation of Revenue [Line Items]
Net sales	129,591	157,017
Electronics Segment | Passenger Car Products
Disaggregation of Revenue [Line Items]
Net sales	0	0
Electronics Segment | Automotive Sensors
Disaggregation of Revenue [Line Items]
Net sales	0	0
Electronics Segment | Commercial Vehicle Products
Disaggregation of Revenue [Line Items]
Net sales	0	0
Electronics Segment | Industrial Products
Disaggregation of Revenue [Line Items]
Net sales	0	0
Automotive Segment
Disaggregation of Revenue [Line Items]
Net sales	104,770	113,483
Automotive Segment | Electronics – Passive Products and Sensors
Disaggregation of Revenue [Line Items]
Net sales	0	0
Automotive Segment | Electronics – Semiconductor
Disaggregation of Revenue [Line Items]
Net sales	0	0
Automotive Segment | Passenger Car Products
Disaggregation of Revenue [Line Items]
Net sales	52,645	56,543
Automotive Segment | Automotive Sensors
Disaggregation of Revenue [Line Items]
Net sales	24,174	26,057
Automotive Segment | Commercial Vehicle Products
Disaggregation of Revenue [Line Items]
Net sales	27,951	30,883
Automotive Segment | Industrial Products
Disaggregation of Revenue [Line Items]
Net sales	0	0
Industrial Segment
Disaggregation of Revenue [Line Items]
Net sales	27,137	26,623
Industrial Segment | Electronics – Passive Products and Sensors
Disaggregation of Revenue [Line Items]
Net sales	0	0
Industrial Segment | Electronics – Semiconductor
Disaggregation of Revenue [Line Items]
Net sales	0	0
Industrial Segment | Passenger Car Products
Disaggregation of Revenue [Line Items]
Net sales	0	0
Industrial Segment | Automotive Sensors
Disaggregation of Revenue [Line Items]
Net sales	0	0
Industrial Segment | Commercial Vehicle Products
Disaggregation of Revenue [Line Items]
Net sales	0	0
Industrial Segment | Industrial Products
Disaggregation of Revenue [Line Items]
Net sales	$ 27,137	$ 26,623

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Lease Commitments - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Leases [Abstract]
Short-term lease expenses	$ 117	$ 153
Variable lease expenses	318	194
Operating lease rent expenses	2,173	2,193
Total operating lease costs	$ 2,608	$ 2,540

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Lease Commitments (Tables)

3 Months Ended

Mar. 28, 2020

Leases [Abstract]

Supplemental balance sheet information related to leases

The following table presents the classification of ROU assets and lease liabilities at March 28, 2020 and December 28, 2019:

Leases (in thousands)	Condensed Consolidated Balance Sheet Classification	March 28, 2020		December 28, 2019
Assets
Operating ROU assets	Right of use lease assets, net	$	20,611	$	21,918
Liabilities
Current operating lease liabilities	Accrued liabilities	$	7,073	$	7,259
Non-current operating lease liabilities	Non-current operating lease liabilities	$	15,960	$	17,166
Total lease liabilities		$	23,033	$	24,425

Components of lease expense and supplemental cash flow information

Other Information (in thousands)	Three Months Ended March 28, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flow payments for operating leases	$	(2,242	)
Leased assets obtained in exchange for operating lease liabilities	848

The following table represents the lease costs for the three months ended March 28, 2020 and March 30, 2019:

Leases cost (in thousands)	Condensed Consolidated Statements of Net Income Classification	Three Months Ended March 28, 2020		Three Months Ended March 30, 2019
Short-term lease expenses	Cost of sales, SG&A expenses	$	117	$	153
Variable lease expenses	Cost of sales, SG&A expenses	318		194
Operating lease rent expenses	Cost of sales, SG&A expenses	2,173		2,193
Total operating lease costs	Cost of sales, SG&A expenses	$	2,608	$	2,540

Maturities of lease liabilities

Maturity of Lease Liabilities as of March 28, 2020 (in thousands)	Operating leases
2020 (excluding the three months ended March 28, 2020)	$	6,156
2021	6,620
2022	5,341
2023	3,590
2024	3,177
2025 and thereafter	498
Total lease payments	$	25,382
Present value of lease liabilities	$	23,033

Operating lease term and discount rate

Operating Lease Term and Discount Rate	March 28, 2020
Weighted-average remaining lease term (years)	3.90
Weighted-average discount rate	5.04	%

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Earnings Per Share

3 Months Ended

Mar. 28, 2020

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share: 

	Three Months Ended
(in thousands, except per share amounts)	March 28, 2020		March 30, 2019
Numerator:
Net income as reported	$	24,644	$	36,989
Denominator:
Weighted average shares outstanding
Basic	24,393		24,717
Effect of dilutive securities	185		292
Diluted	24,578		25,009
Earnings Per Share:
Basic earnings per share	$	1.01	$	1.50
Diluted earnings per share	$	1.00	$	1.48

Potential shares of common stock relating to stock options excluded from the earnings per share calculation because their effect would be anti-dilutive were 153,836 and 77,047 for the three months ended March 28, 2020 and March 30, 2019, respectively.

Share Repurchase Program

The Company’s Board of Directors authorized the repurchase of up to 1,000,000 shares of the Company’s common stock under a program for the period May 1, 2018 to April 30, 2019 ("2018 program"). On April 26, 2019, the Company's Board of Directors authorized to a program to repurchase up to 1,000,000 shares of the Company's common stock for the period May 1, 2019 to April 30, 2020 ("2019 program") to replace its previous expired 2018 program. On April 23, 2020, the Company's Board of Directors authorized a new program to repurchase up to 1,000,000 shares of the Company's common stock for the period May 1, 2020 to April 30, 2021 (the "2020 program") to replace its previous expired 2019 program. The Company does not expect to repurchase shares in the near future due to the uncertainty of the impact and duration of COVID-19.

For the three months ended March 28, 2020 and March 30, 2019, the Company repurchased 175,110 and 79,916 shares of its common stock totaling $22.9 million and $13.6 million, respectively.

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Summary of Significant Accounting Policies and Other Information (Tables)

3 Months Ended

Mar. 28, 2020

Accounting Policies [Abstract]

Revenue Disaggregation

The following tables disaggregate the Company’s revenue by primary business units for the three months ended March 28, 2020 and March 30, 2019:

	Three Months Ended March 28, 2020
(in thousands)	Electronics Segment		Automotive Segment		Industrial Segment		Total
Electronics – Passive Products and Sensors	$	84,598	$	—	$	—	$	84,598
Electronics – Semiconductor	129,591		—		—		129,591
Passenger Car Products	—		52,645		—		52,645
Automotive Sensors	—		24,174		—		24,174
Commercial Vehicle Products	—		27,951		—		27,951
Industrial Products	—		—		27,137		27,137
Total	$	214,189	$	104,770	$	27,137	$	346,096

	Three Months Ended March 30, 2019
(in thousands)	Electronics Segment		Automotive Segment		Industrial Segment		Total
Electronics – Passive Products and Sensors	$	108,377	$	—	$	—	$	108,377
Electronics – Semiconductor	157,017		—		—		157,017
Passenger Car Products	—		56,543		—		56,543
Automotive Sensors	—		26,057		—		26,057
Commercial Vehicle Products	—		30,883		—		30,883
Industrial Products	—		—		26,623		26,623
Total	$	265,394	$	113,483	$	26,623	$	405,500

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Other Comprehensive Income (Loss) - Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amortization of prior service and net actuarial loss	$ 222,384	$ 250,272
Amortization of prior service and net actuarial loss | Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amortization of prior service and net actuarial loss	$ 345	$ 62

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Related Party Transactions (Details) - USD ($) $ in Millions		3 Months Ended
	Apr. 26, 2019	Mar. 28, 2020	Mar. 30, 2019	Dec. 28, 2019
Related Party Transaction [Line Items]
Cost method investments		$ 0.4
MWT
Related Party Transaction [Line Items]
Loss on disposal	$ 2.6
Powersem
Related Party Transaction [Line Items]
Ownership percentage		45.00%
Revenue from related parties		$ 0.4	$ 0.1
Purchase from related party		0.2	0.8
Receivable from related parties		0.1		$ 0.0
Payables to related parties		$ 0.1		0.2
EB Tech
Related Party Transaction [Line Items]
Ownership percentage		19.00%
Revenue from related parties		$ 0.0	0.0
Purchase from related party		0.0	0.1
Receivable from related parties		0.0		0.0
Payables to related parties		$ 0.0		0.0
ATEC
Related Party Transaction [Line Items]
Ownership percentage		24.00%
Revenue from related parties		$ 0.0	0.0
Purchase from related party		1.8	$ 1.5
Receivable from related parties		0.0		0.0
Payables to related parties		$ 0.0		$ 0.1

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Lease Commitments - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 28, 2020	Dec. 28, 2019
Operating Leases
2020 (excluding the three months ended March 28, 2020)	$ 6,156
2021	6,620
2022	5,341
2023	3,590
2024	3,177
2025 and thereafter	498
Total lease payments	25,382
Present value of lease liabilities	$ 23,033	$ 24,425

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Goodwill and Other Intangible Assets - Details of Other Intangible Assets and Related Future Amortization Expense (Details) - USD ($) $ in Thousands	Mar. 28, 2020	Dec. 28, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 539,189	$ 544,586
Accumulated Amortization	230,796	223,339
Net Book Value	308,393	321,247
Land use rights
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	9,545	9,649
Accumulated Amortization	1,755	1,730
Net Book Value	7,790	7,919
Patents, licenses and software
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	129,380	131,164
Accumulated Amortization	80,506	78,828
Net Book Value	48,874	52,336
Distribution network
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	43,076	43,239
Accumulated Amortization	36,560	36,163
Net Book Value	6,516	7,076
Customer relationships, trademarks, and tradenames
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	357,188	360,534
Accumulated Amortization	111,975	106,618
Net Book Value	$ 245,213	$ 253,916

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Inventories - Components of Inventories (Details) - USD ($) $ in Thousands	Mar. 28, 2020	Dec. 28, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 75,202	$ 76,732
Work in process	84,030	84,561
Finished goods	100,415	110,388
Inventory Reserves	(32,365)	(34,174)
Total	$ 227,282	$ 237,507

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Income Taxes

3 Months Ended

Mar. 28, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective tax rate for the three months ended March 28, 2020 was 30.6% compared to the effective tax rate for the three months ended March 30, 2019 of 20.3%. The effective tax rate for the 2020 period is higher than the effective tax rate for the 2019 comparable period primarily due to a reduction in the forecasted income earned in lower tax jurisdictions in 2020 driven by the uncertainty resulting from the impact of COVID-19. The effective tax rate for the 2020 period is higher than the applicable U.S. statutory tax rate primarily due to the forecasted impact of non-U.S. losses and expenses with no tax benefit and the U.S. GILTI tax provisions (in the 2019 period the impact of these items was more than offset by the impact of income earned in lower tax jurisdictions).

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Summary of Significant Accounting Policies and Other Information (Policies)

3 Months Ended

Mar. 28, 2020

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation 

The Company’s accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures normally included in the consolidated balance sheets, statements of net income and comprehensive income, statements of cash flows, and statement of stockholders' equity prepared in conformity with U.S. GAAP have been condensed or omitted as permitted by such rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. They have been prepared in accordance with accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2019 which should be read in conjunction with the disclosures therein. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal, recurring nature. Operating results for interim periods are not necessarily indicative of annual operating results.

Revenue Recognition

Revenue Recognition

Revenue Disaggregation

The following tables disaggregate the Company’s revenue by primary business units for the three months ended March 28, 2020 and March 30, 2019:

	Three Months Ended March 28, 2020
(in thousands)	Electronics Segment		Automotive Segment		Industrial Segment		Total
Electronics – Passive Products and Sensors	$	84,598	$	—	$	—	$	84,598
Electronics – Semiconductor	129,591		—		—		129,591
Passenger Car Products	—		52,645		—		52,645
Automotive Sensors	—		24,174		—		24,174
Commercial Vehicle Products	—		27,951		—		27,951
Industrial Products	—		—		27,137		27,137
Total	$	214,189	$	104,770	$	27,137	$	346,096

	Three Months Ended March 30, 2019
(in thousands)	Electronics Segment		Automotive Segment		Industrial Segment		Total
Electronics – Passive Products and Sensors	$	108,377	$	—	$	—	$	108,377
Electronics – Semiconductor	157,017		—		—		157,017
Passenger Car Products	—		56,543		—		56,543
Automotive Sensors	—		26,057		—		26,057
Commercial Vehicle Products	—		30,883		—		30,883
Industrial Products	—		—		26,623		26,623
Total	$	265,394	$	113,483	$	26,623	$	405,500

See Note 16, Segment Information for net sales by segment and countries.

Revenue Recognition

The Company recognizes revenue on product sales in the period in which the Company satisfies its performance obligation and control of the product is transferred to the customer. The Company’s sales arrangements with customers are predominately short term in nature and generally provide for transfer of control at the time of shipment as this is the point at which title and risk of loss of the product transfers to the customer. At the end of each period, for those shipments where title to the products and the risk of loss and rewards of ownership do not transfer until the product has been received by the customer, the Company adjusts revenues and cost of sales for the delay between the time that the products are shipped and when they are received by the customer. The amount of revenue recorded reflects the consideration to which the Company expects to be entitled in exchange for goods and may include adjustments for customer allowance, rebates and price adjustments. The Company’s distribution channels are primarily through direct sales and independent third-party distributors.

The Company elected the practical expedient under Accounting Standards Codification ("ASC") 340-40-25-4 to expense commissions when incurred as the amortization period of the commission asset the Company would have otherwise recognized is less than one year.

Revenue and Billing

The Company generally accepts orders from customers through receipt of purchase orders or electronic data interchange based on written sales agreements and purchasing contracts. Contract pricing and selling agreement terms are based on market factors, costs, and competition. Pricing is often negotiated as an adjustment (premium or discount) from the Company’s published price lists. The customer is invoiced when the Company’s products are shipped to them in accordance with the terms of the sales agreement. As the Company’s standard payment terms are less than one year, the Company elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company also elected the practical expedient provided in ASC 606-10-25-18B to treat all product shipping and handling activities as fulfillment activities, and therefore recognize the gross revenue associated with the contract, inclusive of any shipping and handling revenue.

Ship and Debit Program

Some of the terms of the Company’s sales agreements and normal business conditions provide customers (distributors) the ability to receive price adjustments on products previously shipped and invoiced. This practice is common in the industry and is referred to as a “ship and debit” program. This program allows the distributor to debit the Company for the difference between the distributors’ contracted price and a lower price for specific transactions. Under certain circumstances (usually in a competitive situation or large volume opportunity), a distributor will request authorization for pricing allowances to reduce its price. When the Company approves such a reduction, the distributor is authorized to “debit” its account for the difference between the contracted price and the lower approved price. The Company establishes reserves for this program based on historic activity, electronic distributor inventory levels and actual authorizations for the debit and recognizes these debits as a reduction of revenue.

Return to Stock 

The Company has a return to stock policy whereby certain customers, with prior authorization from Littelfuse management, can return previously purchased goods for full or partial credit. The Company establishes an estimated allowance for these returns based on historic activity. Sales revenue and cost of sales are reduced to anticipate estimated returns.

Volume Rebates

The Company offers volume based sales incentives to certain customers to encourage greater product sales. If customers achieve their specific quarterly or annual sales targets, they are entitled to rebates. The Company estimates the projected amount of rebates that will be achieved by the customer and recognizes this estimated cost as a reduction to revenue as products are sold.

Recently Adopted Accounting Standards

Recently Adopted Accounting Standards

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments." The standard modifies the measurement approach for credit losses on financial instruments, including trade receivables, from an incurred loss method to a current expected credit loss method ("CECL"). The standard requires the measurement of expected credit losses to be based on relevant information, including historical experiences, current conditions and a forecast that is supportable. The Company adopted the new standard on December 29, 2019. The adoption of the standard did not have a material effect on our Condensed Consolidated Financial Statements.

In August 2018, the FASB issued ASU No. 2018-13 "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirement for Fair Value Measurement." ASU 2018-13 modifies the disclosure requirements in Topic 820: "Fair Value Measurement," based on the FASB Concepts Statement, "Conceptual Framework for Financial Reporting - Chapter 8: Notes to Financial Statements," including consideration of costs and benefits. The new standard removes certain disclosures, modifies certain disclosures and adds additional disclosures related to fair value measurement. The Company adopted the new standard on December 29, 2019. The adoption of ASU 2018- 13 did not have a material impact on our Condensed Consolidated Financial Statements.

In August 2018, the FASB issued ASU No. 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic: 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)." ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company adopted the new standard on December 29, 2019. The adoption of ASU 2018-15 did not have a material impact on our Condensed Consolidated Financial Statements.

In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This ASU provides optional expedient and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The objective of this is to provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting due to the cessation of the London Interbank Offered Rate (LIBOR). The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. The Company does not expect a material effect from the adoption of this guidance on its Condensed Consolidated Financial Statements.

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Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Mar. 28, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The amounts for goodwill and changes in the carrying value by segment for the three months ended March 28, 2020 are as follows:

(in thousands)	Electronics			Automotive			Industrial			Total
As of December 28, 2019	$	650,796		$	131,321		$	38,472		$	820,589
Currency translation	(5,873		)	(1,693		)	(260		)	(7,826		)
As of March 28, 2020	$	644,923		$	129,628		$	38,212		$	812,763

Schedule of Finite-Lived Intangible Assets

The components of other intangible assets at March 28, 2020 and December 28, 2019 are as follows:

 

	As of March 28, 2020
(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Land use rights	$	9,545	$	1,755	$	7,790
Patents, licenses and software	129,380		$	80,506	$	48,874
Distribution network	43,076		36,560		6,516
Customer relationships, trademarks, and tradenames	357,188		111,975		245,213
Total	$	539,189	$	230,796	$	308,393

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Estimated annual amortization expense related to intangible assets with definite lives as of March 28, 2020 is as follows:

(in thousands)	Amount
2020	$	38,291
2021	37,487
2022	36,561
2023	32,195
2024	29,135
2025 and thereafter	144,705
Total	$	318,374

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 28, 2020	Dec. 28, 2019
Current assets:
Cash and cash equivalents	$ 620,575	$ 531,139
Short-term investments	43	44
Trade receivables, less allowances of $37,482 and $42,043 at March 28, 2020 and December 28, 2019, respectively	207,912	202,309
Inventories	227,282	237,507
Prepaid income taxes and income taxes receivable	4,253	4,831
Prepaid expenses and other current assets	32,418	28,564
Total current assets	1,092,483	1,004,394
Net property, plant, and equipment	334,829	344,617
Intangible assets, net of amortization	308,393	321,247
Goodwill	812,763	820,589
Investments	21,248	24,099
Deferred income taxes	7,608	8,069
Right of use lease assets, net	20,611	21,918
Other assets	14,694	14,965
Total assets	2,612,629	2,559,898
Current liabilities:
Accounts payable	106,796	117,320
Accrued liabilities	73,512	84,120
Accrued income taxes	17,907	14,122
Current portion of long-term debt	10,000	10,000
Total current liabilities	208,215	225,562
Long-term debt, less current portion	764,195	669,158
Deferred income taxes	49,698	49,763
Accrued post-retirement benefits	35,904	38,198
Non-current operating lease liabilities	15,960	17,166
Other long-term liabilities	61,709	64,037
Shareholders’ equity:
Common stock, par value $0.01 per share: 34,000,000 shares authorized; shares issued, March 28, 2020–25,902,213; December 28, 2019–25,855,203	256	256
Treasury stock, at cost: 1,626,357 and 1,473,901 shares, respectively	(239,817)	(216,447)
Additional paid-in capital	874,360	867,996
Accumulated other comprehensive loss	(121,802)	(106,823)
Retained earnings	963,820	950,901
Littelfuse, Inc. shareholders’ equity	1,476,817	1,495,883
Non-controlling interest	131	131
Total equity	1,476,948	1,496,014
Total liabilities and equity	$ 2,612,629	$ 2,559,898

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Summary of Significant Accounting Policies and Other Information (Details Textual) customer in Thousands	3 Months Ended
	Mar. 28, 2020 customer
Accounting Policies [Abstract]
Number of customers (over)	100

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
OPERATING ACTIVITIES
Net income	$ 24,644	$ 36,989
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	13,821	13,088
Amortization of intangibles	9,981	10,191
Deferred revenue	(145)	0
Impairment charges	2,237
Stock-based compensation	2,965	3,966
Loss on investments and other assets	2,604	2,810
Deferred income taxes	616	(72)
Other	3,547	5,393
Changes in operating assets and liabilities:
Trade receivables	(9,457)	(5,800)
Inventories	6,667	(3,250)
Accounts payable	(3,964)	(8,499)
Accrued liabilities and income taxes	(7,012)	(27,170)
Prepaid expenses and other assets	(1,225)	3,273
Net cash provided by operating activities	45,279	30,919
INVESTING ACTIVITIES
Acquisitions of businesses, net of cash acquired	0	(775)
Purchases of property, plant, and equipment	(16,586)	(14,076)
Net proceeds from sale of property, plant and equipment	50	607
Net cash used in investing activities	(16,536)	(14,244)
FINANCING ACTIVITIES
Proceeds of revolving credit facility	100,000	0
Payments of term loan	(2,500)	(5,000)
Net proceeds related to stock-based award activities	2,956	2,198
Purchases of common stock	(22,927)	(17,906)
Cash dividends paid	(11,725)	(10,625)
Net cash provided by (used in) financing activities	65,804	(31,333)
Effect of exchange rate changes on cash and cash equivalents	(5,111)	1,539
Increase (decrease) in cash and cash equivalents	89,436	(13,119)
Cash and cash equivalents at beginning of period	531,139	489,733
Cash and cash equivalents at end of period	620,575	476,614
Supplementary Cash Flow Information
Cash paid during the period for interest	7,354	8,011
Capital expenditures, not yet paid	$ 5,832	$ 0

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Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 28, 2020

Equity [Abstract]

Schedule of Components of Comprehensive Income (Loss)

Changes in other comprehensive (loss) income by component were as follows:

(in thousands)	Three Months Ended March 28, 2020									Three Months Ended March 30, 2019
	Pre-tax			Tax			Net of Tax			Pre-tax			Tax			Net of Tax
Defined benefit pension plan adjustments	$	555		$	(6	)	$	561		$	(78	)	$	(29	)	$	(49	)
Foreign currency translation adjustments	(15,540		)	—			(15,540		)	8,122			—			8,122
Total change in other comprehensive income (loss)	$	(14,985	)	$	(6	)	$	(14,979	)	$	8,044		$	(29	)	$	8,073

Schedule of Accumulated Other Comprehensive Income (Loss)

The following tables set forth the changes in accumulated other comprehensive (loss) income by component for the three months ended March 28, 2020 and March 30, 2019:

(in thousands)	Pension and postretirement liability and reclassification adjustments			Foreign currency translation adjustment			Accumulated other comprehensive income (loss)
Balance at December 28, 2019	$	(18,046	)	$	(88,777	)	$	(106,823	)
Activity in the period	561			(15,540		)	(14,979		)
Balance at March 28, 2020	$	(17,485	)	$	(104,317	)	$	(121,802	)

(in thousands)	Pension and postretirement liability and reclassification adjustments			Foreign currency translation adjustment			Accumulated other comprehensive income (loss)
Balance at December 29, 2018	$	(9,959	)	$	(87,965	)	$	(97,924	)
Activity in the period	(49		)	8,122			8,073
Balance at March 30, 2019	$	(10,008	)	$	(79,843	)	$	(89,851	)

Reclassification out of Accumulated Other Comprehensive Income

Amounts reclassified from accumulated other comprehensive (loss) income to earnings for the three months ended March 28, 2020 and March 30, 2019 were as follows:

	Three Months Ended
(in thousands)	March 28, 2020		March 30, 2019
Pension and Postemployment plans:
Amortization of prior service and net actuarial loss	$	345	$	62

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Restructuring, Impairment and Other Charges (Tables)

3 Months Ended

Mar. 28, 2020

Restructuring and Related Activities [Abstract]

Restructuring, impairment and other charges

The Company recorded restructuring, impairment and other charges for the three months ended March 28, 2020 and March 30, 2019 as follows:

	Three months ended March 28, 2020
(in thousands)	Electronics		Automotive		Industrial		Total
Employee terminations	$	881	$	399	$	321	$	1,601
Other restructuring charges	1		120		3		124
Total restructuring charges	882		519		324		1,725
Impairment	—		—		2,237		2,237
Total	$	882	$	519	$	2,561	$	3,962

	Three months ended March 30, 2019
(in thousands)	Electronics		Automotive		Industrial		Total
Employee terminations	$	1,800	$	605	$	47	$	2,452
Other restructuring charges	13		20		250		283
Total restructuring charges	1,813		625		297		2,735
Impairment	—		—		—		—
Total	$	1,813	$	625	$	297	$	2,735

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Goodwill and Other Intangible Assets

3 Months Ended

Mar. 28, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The amounts for goodwill and changes in the carrying value by segment for the three months ended March 28, 2020 are as follows:

(in thousands)	Electronics			Automotive			Industrial			Total
As of December 28, 2019	$	650,796		$	131,321		$	38,472		$	820,589
Currency translation	(5,873		)	(1,693		)	(260		)	(7,826		)
As of March 28, 2020	$	644,923		$	129,628		$	38,212		$	812,763

The components of other intangible assets at March 28, 2020 and December 28, 2019 are as follows:

 

	As of March 28, 2020
(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Land use rights	$	9,545	$	1,755	$	7,790
Patents, licenses and software	129,380		$	80,506	$	48,874
Distribution network	43,076		36,560		6,516
Customer relationships, trademarks, and tradenames	357,188		111,975		245,213
Total	$	539,189	$	230,796	$	308,393

	As of December 28, 2019
(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Land use rights	$	9,649	$	1,730	$	7,919
Patents, licenses and software	131,164		78,828		52,336
Distribution network	43,239		36,163		7,076
Customer relationships, trademarks, and tradenames	360,534		106,618		253,916
Total	$	544,586	$	223,339	$	321,247

During the three months ended March 28, 2020 and March 30, 2019, the Company recorded amortization expense of $10.0 million and $10.2 million, respectively.

During the three months ended March 28, 2020, the Company recognized a $0.3 million non-cash impairment charge on a certain patent triggered by the Company’s announcement to consolidate a manufacturing facility within the Industrial segment.

Estimated annual amortization expense related to intangible assets with definite lives as of March 28, 2020 is as follows:

(in thousands)	Amount
2020	$	38,291
2021	37,487
2022	36,561
2023	32,195
2024	29,135
2025 and thereafter	144,705
Total	$	318,374

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Debt

3 Months Ended

Mar. 28, 2020

Debt Disclosure [Abstract]

Debt

Debt

The carrying amounts of debt at March 28, 2020 and December 28, 2019 are as follows:

(in thousands)	March 28, 2020			December 28, 2019
Revolving Credit Facility	$	100,000		$	—
Term Loan	142,500			145,000
Euro Senior Notes, Series A due 2023	128,316			129,808
Euro Senior Notes, Series B due 2028	104,189			105,400
U.S. Senior Notes, Series A due 2022	25,000			25,000
U.S. Senior Notes, Series B due 2027	100,000			100,000
U.S. Senior Notes, Series A due 2025	50,000			50,000
U.S. Senior Notes, Series B due 2030	125,000			125,000
Other	2,619			2,619
Unamortized debt issuance costs	(3,429		)	(3,669		)
Total debt	774,195			679,158
Less: Current maturities	(10,000		)	(10,000		)
Total long-term debt	$	764,195		$	669,158

Revolving Credit Facility / Term Loan

On March 4, 2016, the Company entered into a five-year credit agreement (“Credit Agreement”) with a group of lenders for up to $700.0 million. The Credit Agreement consisted of an unsecured revolving credit facility (“Revolving Credit Facility”) of $575.0 million and an unsecured term loan credit facility (“Term Loan”) of up to $125.0 million. In addition, the Company had the ability, from time to time, to increase the size of the Revolving Credit Facility and the Term Loan by up to an additional $150.0 million, in the aggregate, in each case in minimum increments of $25.0 million, subject to certain conditions and the agreement of participating lenders.

On October 13, 2017, the Company amended the Credit Agreement to increase the Revolving Credit Facility from $575.0 million to $700.0 million and increase the Term Loan from $125.0 million to $200.0 million and to extend the expiration date from March 4, 2021 to October 13, 2022. The Credit Agreement also included the option for the Company to increase the size of the Revolving Credit Facility and the Term Loan by up to an additional $300.0 million, in the aggregate, subject to the satisfaction of certain conditions set forth in the Credit Agreement. Term Loans could be made in up to two advances. The first advance of $125.0 million occurred on October 13, 2017 and the second advance of $75.0 million occurred on January 16, 2018. For the Term Loan, the Company was required to make quarterly principal payments of 1.25% of the original term loan ($2.5 million quarterly) through maturity, with the remaining balance due on October 13, 2022. The Company paid $2.5 million of principal payments on the term loan during the three months ended March 28, 2020.

Outstanding borrowings under the Credit Agreement bore interest, at the Company’s option, at either LIBOR, fixed for interest periods of one, two, three or six-month periods, plus 1.00% to 2.00%, or at the bank’s Base Rate, as defined, plus 0.00% to 1.00%, based upon the Company’s Consolidated Leverage Ratio, as defined. The Company was also required to pay commitment fees on unused portions of the credit agreement ranging from 0.15% to 0.25%, based on the Consolidated Leverage Ratio, as defined in the agreement. The Credit Agreement included representations, covenants and events of default that are customary for financing transactions of this nature. The effective interest rate on outstanding borrowings under the credit facility was 2.47% at March 28, 2020.

On March 25, 2020, the company borrowed $100.0 million from the revolving credit facility to preserve financial flexibility and enhance liquidity, given the increasing levels of uncertainty related to coronavirus disease 2019 ("COVID-19").

As of March 28, 2020, the Company had no amount outstanding in letters of credit and had available $219.8 million of borrowing capacity under the Revolving Credit Facility based on financial covenants. At March 28, 2020, the Company was in compliance with all covenants under the Credit Agreement.

On April 3, 2020, the Company amended the Credit Agreement to effect certain changes, including, among others: (i) eliminating the $200.0 million unsecured term loan credit facility, the remaining outstanding balance of which was repaid in full on April 3, 2020 through the revolving credit facility; (ii) making certain financial and non-financial covenants less restrictive on the Company; (iii) modifying performance-based interest rate margins and undrawn fees; and (iv) extending the maturity date to April 3, 2025. The amended Credit Agreement also allows the Company to increase the size of the revolving credit facility or enter into one or more tranches of term loans if there is no event of default and the Company is in compliance with certain financial covenants.  The balance under the facility is $240.0 million as of April 3, 2020.

Senior Notes

On December 8, 2016, the Company entered into a Note Purchase Agreement, pursuant to which the Company issued and sold €212 million aggregate principal amount of senior notes in two series. The funding date for the Euro denominated senior notes occurred on December 8, 2016 for €117 million in aggregate amount of 1.14% Senior Notes, Series A, due December 8, 2023 (“Euro Senior Notes, Series A due 2023”), and €95 million in aggregate amount of 1.83% Senior Notes, Series B due December 8, 2028 (“Euro Senior Notes, Series B due 2028”) (together, the “Euro Senior Notes”). Interest on the Euro Senior Notes is payable semiannually on June 8 and December 8, commencing June 8, 2017.

On December 8, 2016, the Company entered into a Note Purchase Agreement, pursuant to which the Company issued and sold $125 million aggregate principal amount of senior notes in two series. On February 15, 2017, $25 million in aggregate principal amount of 3.03% Senior Notes, Series A, due February 15, 2022 (“U.S. Senior Notes, Series A due 2022”), and $100 million in aggregate principal amount of 3.74% Senior Notes, Series B, due February 15, 2027 (“U.S. Senior Notes, Series B due 2027”) (together, the “U.S. Senior Notes due 2022 and 2027”) were funded. Interest on the U.S. Senior Notes due 2022 and 2027 is payable semiannually on February 15 and August 15, commencing August 15, 2017.

On November 15, 2017, the Company entered into a Note Purchase Agreement pursuant to which the Company issued and sold $175 million in aggregate principal amount of senior notes in two series. On January 16, 2018, $50 million aggregate principal amount of 3.48% Senior Notes, Series A, due February 15, 2025 (“U.S. Senior Notes, Series A due 2025”) and $125 million in aggregate principal amount of 3.78% Senior Notes, Series B, due February 15, 2030 (“U.S. Senior Notes, Series B due 2030”) (together the “U.S. Senior Notes due 2025 and 2030” and with the Euro Senior Notes and the U.S. Senior Notes due 2022 and 2027, the “Senior Notes”) were funded. Interest on the U.S. Senior Notes due 2025 and 2030 is payable semiannually on February 15 and August 15, commencing on August 15, 2018.

The Senior Notes have not been registered under the Securities Act, or applicable state securities laws. The Senior Notes are general unsecured senior obligations and rank equal in right of payment with all existing and future unsecured unsubordinated indebtedness of the Company.

The Senior Notes are subject to certain customary covenants, including limitations on the Company’s ability, with certain exceptions, to engage in mergers, consolidations, asset sales and transactions with affiliates, to engage in any business that would substantially change the general business of the Company, and to incur liens. In addition, the Company is required to satisfy certain financial covenants and tests relating to, among other matters, interest coverage and leverage. At March 28, 2020, the Company was in compliance with all covenants under the Senior Notes.

The Company may redeem the Senior Notes upon the satisfaction of certain conditions and the payment of a make-whole amount to noteholders and are required to offer to repurchase the Senior Notes at par following certain events, including a change of control.

Interest paid on all Company debt was $7.4 million and $8.0 million for the three months ended March 28, 2020 and March 30, 2019, respectively.

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Lease Commitments - Supplemental Cash Flow Information (Details) $ in Thousands	3 Months Ended
	Mar. 28, 2020 USD ($)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flow payments for operating leases	$ (2,242)
Leased assets obtained in exchange for operating lease liabilities	$ 848

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Debt - Narrative (Details)					3 Months Ended
	Apr. 03, 2020 USD ($)	Jan. 16, 2018 USD ($)	Oct. 13, 2017 USD ($) advance	Mar. 04, 2016 USD ($)	Mar. 28, 2020 USD ($)	Mar. 30, 2019 USD ($)	Dec. 28, 2019 USD ($)	Nov. 15, 2017 USD ($) series	Oct. 12, 2017 USD ($)	Feb. 15, 2017 USD ($)	Dec. 08, 2016 EUR (€) series	Dec. 08, 2016 USD ($) series
Debt Instrument [Line Items]
Cash paid during the period for interest					$ 7,400,000	$ 8,000,000.0
Credit Agreement
Debt Instrument [Line Items]
Debt term				5 years
Maximum borrowing capacity				$ 700,000,000.0
Additional uncommitted borrowing capacity			$ 300,000,000.0	150,000,000.0
Additional uncommitted borrowing capacity, minimum increments				$ 25,000,000.0
Number of advances | advance			2
Effective interest rate					2.47%
Letter of credit outstanding (less than)					$ 0
Credit Agreement | Minimum
Debt Instrument [Line Items]
Commitment fee				0.15%
Credit Agreement | Maximum
Debt Instrument [Line Items]
Commitment fee				0.25%
Credit Agreement | LIBOR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate				1.00%
Credit Agreement | LIBOR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate				2.00%
Credit Agreement | Base Rate | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate				0.00%
Credit Agreement | Base Rate | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate				1.00%
Credit Agreement | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 700,000,000.0	$ 575,000,000.0					$ 575,000,000.0
Remaining borrowing capacity					219,800,000
Credit Agreement | Term Loan Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity, credit facility			200,000,000.0	$ 125,000,000.0
Proceeds from issuance of debt		$ 75,000,000.0	$ 125,000,000.0
Quarterly payments, percentage of loan			1.25%
Periodic payment			$ 2,500,000
Repayments of debt					2,500,000
Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt, gross					100,000,000		$ 0
Term Loan
Debt Instrument [Line Items]
Long-term debt, gross					142,500,000		145,000,000
Euro Senior Notes, Series A and B
Debt Instrument [Line Items]
Face amount of debt | €											€ 212,000,000
Number of series | series								2			2	2
Euro Senior Notes, Series A due 2023
Debt Instrument [Line Items]
Long-term debt, gross					128,316,000		129,808,000
Face amount of debt | €											€ 117,000,000
Stated interest rate											1.14%	1.14%
Euro Senior Notes, Series B due 2028
Debt Instrument [Line Items]
Long-term debt, gross					104,189,000		105,400,000
Face amount of debt | €											€ 95,000,000
Stated interest rate											1.83%	1.83%
U.S. Senior Notes, Series A and B
Debt Instrument [Line Items]
Face amount of debt												$ 125,000,000
U.S. Senior Notes, Series A
Debt Instrument [Line Items]
Face amount of debt										$ 25,000,000
Stated interest rate										3.03%
U.S. Senior Notes, Series B
Debt Instrument [Line Items]
Face amount of debt										$ 100,000,000
Stated interest rate										3.74%
US Senior Notes A and B Due 2025 and 2030
Debt Instrument [Line Items]
Face amount of debt								$ 175,000,000
U.S. Senior Notes, Series A due 2025
Debt Instrument [Line Items]
Long-term debt, gross					50,000,000		50,000,000
Face amount of debt		$ 50,000,000
Stated interest rate		3.48%
U.S. Senior Notes, Series B due 2030
Debt Instrument [Line Items]
Long-term debt, gross					$ 125,000,000		$ 125,000,000
Face amount of debt		$ 125,000,000
Stated interest rate		3.78%
Subsequent Event | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity, credit facility	$ 240,000,000.0
Subsequent Event | Term Loan
Debt Instrument [Line Items]
Elimination of unsecured team loan facility	$ 200,000,000.0

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Benefit Plans - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 28, 2020	Mar. 30, 2019	Dec. 31, 2021	Apr. 07, 2020
Defined Benefit Plan Disclosure [Line Items]
Contributions expected	$ 2,300
Defined benefit plan expense	694	$ 556
Foreign Plan
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan expense	500	$ 200
Other comprehensive income as component of net period benefit cost, before tax	$ 200
Subsequent Event
Defined Benefit Plan Disclosure [Line Items]
Estimated decrease in pension cost				$ 36,000
Estimated percent reduction in pension costs				30.00%
Minimum | Subsequent Event | Forecast
Defined Benefit Plan Disclosure [Line Items]
Estimated settlement charge			$ 18,000
Maximum | Subsequent Event | Forecast
Defined Benefit Plan Disclosure [Line Items]
Estimated settlement charge			$ 22,000