10-Q

Table of Contents

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 September 25, 2021

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, 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 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 October 22, 2021, the registrant had outstanding 24,632,027 shares of Common Stock, net of Treasury Shares.

Table of Contents

TABLE OF CONTENTS

		Page
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets as of September 25, 2021 (unaudited) and December 26, 2020	3
	Condensed Consolidated Statements of Net Income for the three and nine months ended September 25, 2021 (unaudited) and September 26, 2020 (unaudited)	4
	Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 25, 2021 (unaudited) and September 26, 2020 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the nine months ended September 25, 2021 (unaudited) and September 26, 2020 (unaudited)	6
	Condensed Consolidated Statements of Stockholders' Equity for the nine months ended September 25, 2021 (unaudited) and September 26, 2020 (unaudited)	7
	Notes to Condensed Consolidated Financial Statements (unaudited)	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	36
Item 4.	Controls and Procedures	36
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	37
Item 1A.	Risk Factors	37
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 3.	Defaults Upon Senior Securities	37
Item 4.	Mine Safety Disclosures	37
Item 5.	Other Information	37
Item 6.	Exhibits	38
Signatures		39

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LITTELFUSE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

	(Unaudited)
(in thousands)	September 25, 2021		December 26, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	690,682	$	687,525
Short-term investments	28		54
Trade receivables, less allowances of $53,006 and $45,237 at September 25, 2021 and December 26, 2020, respectively	325,739		232,760
Inventories	357,024		258,002
Prepaid income taxes and income taxes receivable	2,695		3,029
Prepaid expenses and other current assets	59,768		35,939
Total current assets	1,435,936		1,217,309
Net property, plant, and equipment	364,329		344,178
Intangible assets, net of amortization	295,766		291,887
Goodwill	847,205		816,812
Investments	39,885		30,547
Deferred income taxes	9,575		11,224
Right of use lease assets, net	24,375		17,615
Other assets	21,447		18,021
Total assets	$	3,038,518	$	2,747,593
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	221,889	$	145,984
Accrued liabilities	139,670		110,478
Accrued income taxes	32,462		19,186
Current portion of long-term debt	27,619		—
Total current liabilities	421,640		275,648
Long-term debt, less current portion	620,112		687,034
Deferred income taxes	50,365		50,134
Accrued post-retirement benefits	42,026		45,802
Non-current operating lease liabilities	17,440		12,950
Other long-term liabilities	65,537		67,252
Shareholders’ equity:
Common stock, par value $0.01 per share: 34,000,000 shares authorized; shares issued, September 25, 2021–26,292,015; December 26, 2020–26,131,544	260		259
Additional paid-in capital	935,351		907,858
Treasury stock, at cost: 1,664,571 and 1,644,283 shares, respectively	(248,078)		(242,366)
Accumulated other comprehensive loss	(95,528)		(91,157)
Retained earnings	1,229,262		1,034,048
Littelfuse, Inc. shareholders’ equity	1,821,267		1,608,642
Non-controlling interest	131		131
Total equity	1,821,398		1,608,773
Total liabilities and equity	$	3,038,518	$	2,747,593

See accompanying Notes to Condensed Consolidated Financial Statements.

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LITTELFUSE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME

(Unaudited)

	Three Months Ended				Nine Months Ended
(in thousands, except per share data)	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
Net sales	$	539,581	$	391,566	$	1,526,863	$	1,044,999
Cost of sales	325,009		252,735		954,429		681,910
Gross profit	214,572		138,831		572,434		363,089
Selling, general, and administrative expenses	67,468		49,929		199,071		154,328
Research and development expenses	15,779		12,963		46,912		40,587
Amortization of intangibles	10,446		10,104		31,608		29,912
Restructuring, impairment, and other charges	772		1,277		1,998		40,904
Total operating expenses	94,465		74,273		279,589		265,731
Operating income	120,107		64,558		292,845		97,358
Interest expense	4,602		4,988		13,901		16,261
Foreign exchange loss (gain)	3,154		(6,174)		8,315		(9,600)
Other income, net	(1,240)		(1,682)		(10,867)		(1,643)
Income before income taxes	113,591		67,426		281,496		92,340
Income taxes	21,537		12,070		49,634		21,331
Net income	$	92,054	$	55,356	$	231,862	$	71,009
Earnings per share:
Basic	$	3.74	$	2.27	$	9.43	$	2.92
Diluted	$	3.69	$	2.25	$	9.31	$	2.89
Weighted-average shares and equivalent shares outstanding:
Basic	24,622		24,357		24,582		24,354
Diluted	24,926		24,573		24,904		24,535

See accompanying Notes to Condensed Consolidated Financial Statements.

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LITTELFUSE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended				Nine Months Ended
(in thousands)	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
Net income	$	92,054	$	55,356	$	231,862	$	71,009
Other comprehensive income (loss):
Pension and postemployment adjustment, net of tax	487		563		1,270		(9,715)
Foreign currency translation adjustments	(5,441)		16,418		(5,641)		9,300
Comprehensive income	$	87,100	$	72,337	$	227,491	$	70,594

See accompanying Notes to Condensed Consolidated Financial Statements.

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LITTELFUSE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Nine Months Ended
(in thousands)	September 25, 2021		September 26, 2020
OPERATING ACTIVITIES
Net income	$	231,862	$	71,009
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	41,441		41,953
Amortization of intangibles	31,608		29,912
Deferred revenue	(2,154)		(438)
Non-cash inventory charges	6,807		—
Impairment charges	—		36,078
Stock-based compensation	16,010		14,544
Gain on investments and other assets	(9,739)		(1,200)
Deferred income taxes	1,116		1,567
Other	11,735		(8,549)
Changes in operating assets and liabilities:
Trade receivables	(83,793)		(29,362)
Inventories	(71,232)		(1,611)
Accounts payable	53,945		6,661
Accrued liabilities and income taxes	23,294		(2,095)
Prepaid expenses and other assets	(10,236)		5,787
Net cash provided by operating activities	240,664		164,256
INVESTING ACTIVITIES
Acquisitions of businesses, net of cash acquired	(110,646)		—
Purchases of property, plant, and equipment	(57,526)		(41,536)
Net proceeds from sale of property, plant and equipment, and other	2,561		148
Net cash used in investing activities	(165,611)		(41,388)
FINANCING ACTIVITIES
Proceeds of revolving credit facility	—		240,000
Payments of revolving credit facility	(30,000)		(60,000)
Payments of term loan	—		(145,000)
Net proceeds related to stock-based award activities	5,771		6,437
Purchases of common stock	—		(22,927)
Debt issuance costs	—		(1,786)
Cash dividends paid	(36,648)		(35,100)
Net cash used in financing activities	(60,877)		(18,376)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(5,832)		6,259
Increase in cash, cash equivalents, and restricted cash	8,344		110,751
Cash, cash equivalents, and restricted cash at beginning of period	687,525		531,139
Cash, cash equivalents, and restricted cash at end of period	$	695,869	$	641,890
Supplementary Cash Flow Information
Reconciliation of cash and cash equivalents:
Cash and cash equivalents	$	690,682	$	641,890
Restricted cash included in prepaid expenses and other current assets	$	3,483	—
Restricted cash included in other assets	$	1,704	$	—
Cash paid interest during the period	$	14,830	$	17,228
Capital expenditures, not yet paid	$	9,234	$	6,267

 See accompanying Notes to Condensed Consolidated Financial Statements.

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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. (Loss)		Retained Earnings		Non-controlling Interest		Total
Balance at December 26, 2020	$	259	$	907,858	$	(242,366)	$	(91,157)	$	1,034,048	$	131	$	1,608,773
Net income	—		—		—		—		57,713		—		57,713
Other comprehensive loss, net of tax	—		—		—		(4,871)		—		—		(4,871)
Stock-based compensation	—		3,395		—		—		—		—		3,395
Stock options exercised	—		7,509		—		—		—		—		7,509
Cash dividends paid ($0.48 per share)	—		—		—		—		(11,782)		—		(11,782)
Balance at March 27, 2021	$	259	$	918,762	$	(242,366)	$	(96,028)	$	1,079,979	$	131	$	1,660,737
Net income	—		—		—		—		82,095		—		82,095
Other comprehensive income, net of tax	—		—		—		5,454		—		—		5,454
Stock-based compensation	—		8,843		—		—		—		—		8,843
Withheld shares on restricted share units for withholding taxes	—		—		(5,597)		—		—		—		(5,597)
Stock options exercised	1		2,501		—		—		—		—		2,502
Cash dividends paid ($0.48 per share)	—		—		—		—		(11,814)		—		(11,814)
Balance at June 26, 2021	$	260	$	930,106	$	(247,963)	$	(90,574)	$	1,150,260	$	131	$	1,742,220
Net income	—		—		—		—		92,054		—		92,054
Other comprehensive loss, net of tax	—		—		—		(4,954)		—		—		(4,954)
Stock-based compensation	—		3,772		—		—		—		—		3,772
Withheld shares on restricted share units for withholding taxes	—		—		(115)		—		—		—		(115)
Stock options exercised	—		1,473		—		—		—		—		1,473
Cash dividends paid ($0.53 per share)	—		—		—		—		(13,052)		—		(13,052)
Balance at September 25, 2021	$	260	$	935,351	$	(248,078)	$	(95,528)	$	1,229,262	$	131	$	1,821,398

See accompanying Notes to Condensed Consolidated Financial Statements.

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	Littelfuse, Inc. Shareholders’ Equity
(in thousands, except share and per share data)	Common Stock		Addl. Paid in Capital		Treasury Stock		Accum. Other Comp. (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 loss, 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
Net loss	—		—		—		—		(8,991)		—		(8,991)
Other comprehensive loss, net of tax	—		—		—		(2,417)		—		—		(2,417)
Stock-based compensation	—		7,887		—		—		—		—		7,887
Withheld shares on restricted share units for withholding taxes	—		—		(2,375)		—		—		—		(2,375)
Stock options exercised	1		3,059		—		—		—		—		3,060
Cash dividends paid ($0.48 per share)	—		—		—		—		(11,678)		—		(11,678)
Balance at June 27, 2020	$	257	$	885,306	$	(242,192)	$	(124,219)	$	943,151	$	131	$	1,462,434
Net income	—		—		—		—		55,356		—		55,356
Other comprehensive income, net of tax	—		—		—		16,981		—		—		16,981
Stock-based compensation	—		3,692		—		—		—		—		3,692
Withheld shares on restricted share units for withholding taxes	—		—		(131)		—		—		—		(131)
Stock options exercised	1		2,926		—		—		—		—		2,927
Cash dividends paid ($0.48 per share)	—		—		—		—		(11,697)		—		(11,697)
Balance at September 26, 2020	$	258	$	891,924	$	(242,323)	$	(107,238)	$	986,810	$	131	$	1,529,562

See accompanying Notes to Condensed Consolidated Financial Statements.

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Notes to Condensed Consolidated Financial Statements 

1. Summary of Significant Accounting Policies and Other Information

Nature of Operations 

Founded in 1927, Littelfuse is an industrial technology manufacturing company empowering a sustainable, connected, and safer world. Across more than 15 countries, and with 12,000 global associates, we partner with customers to design and deliver innovative, reliable solutions. Serving over 100,000 end customers, our products are found in a variety of industrial, transportation and electronics end markets – everywhere, every day.

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 26, 2020 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 and nine months ended September 25, 2021 and September 26, 2020:

	Three Months Ended September 25, 2021								Nine Months Ended September 25, 2021
(in thousands)	Electronics Segment		Automotive Segment		Industrial Segment		Total		Electronics Segment		Automotive Segment		Industrial Segment		Total
Electronics – Passive Products and Sensors	$	171,299	$	—	$	—	$	171,299	$	459,012	$	—	$	—	$	459,012
Electronics – Semiconductor	175,941		—		—		175,941		500,110		—		—		500,110
Passenger Car Products	—		64,630		—		64,630		—		200,579		—		200,579
Automotive Sensors	—		24,112		—		24,112		—		79,081		—		79,081
Commercial Vehicle Products	—		35,673		—		35,673		—		106,602		—		106,602
Industrial Products	—		—		67,926		67,926		—		—		181,479		181,479
Total	$	347,240	$	124,415	$	67,926	$	539,581	$	959,122	$	386,262	$	181,479	$	1,526,863

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	Three Months Ended September 26, 2020								Nine Months Ended September 26, 2020
(in thousands)	Electronics Segment		Automotive Segment		Industrial Segment		Total		Electronics Segment		Automotive Segment		Industrial Segment		Total
Electronics – Passive Products and Sensors	$	108,253	$	—	$	—	$	108,253	$	285,697	$	—	$	—	$	285,697
Electronics – Semiconductor	147,096		—		—		147,096		407,112		—		—		407,112
Passenger Car Products	—		52,691		—		52,691		—		135,645		—		135,645
Automotive Sensors	—		26,093		—		26,093		—		64,166		—		64,166
Commercial Vehicle Products	—		25,940		—		25,940		—		71,682		—		71,682
Industrial Products	—		—		31,493		31,493		—		—		80,697		80,697
Total	$	255,349	$	104,724	$	31,493	$	391,566	$	692,809	$	271,493	$	80,697	$	1,044,999

See Note 15, 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.

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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.

Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash at September 25, 2021 and December 26, 2020 reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statement of Cash Flows.

(in thousands)	September 25, 2021		December 26, 2020
Cash and cash equivalents	$	690,682	$	687,525
Restricted cash included in prepaid expenses and other current assets	3,483		—
Restricted cash included in other assets	1,704		$	—
Total cash, cash equivalents and restricted cash	$	695,869	$	687,525

Recently Adopted Accounting Standards

In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update ("ASU") No. 2019-12, "Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes" as part of its initiative to reduce complexity in the accounting standards. The guidance is effective for fiscal years beginning after December 15, 2020 with early adoption permitted. The adoption of ASU 2019-12 did not have a material impact on our Condensed Consolidated Financial Statements.

2. Acquisitions

The Company accounts for acquisitions using the acquisition method in accordance with ASC 805, “Business Combinations,” in which assets acquired and liabilities assumed are recorded at fair value as of the date of acquisition. The operating results of the acquired business are included in the Company’s Consolidated Financial Statements from the date of the acquisition.

Hartland Controls

On January 28, 2021, the Company acquired Hartland Controls ("Hartland"), a manufacturer and leading supplier of electrical components used primarily in heating, ventilation, air conditioning (HVAC) and other industrial and control systems applications with annualized sales of approximately $70 million. The purchase price for Hartland was $112.3 million and the operations of Hartland are included in the Industrial segment.

The total purchase consideration of $109.9 million, net of cash, cash equivalents, and restricted cash has been allocated, on a preliminary basis, to assets acquired and liabilities assumed, as of the completion of the acquisition, based on preliminary estimated fair values. The purchase consideration is subject to change for the final working capital adjustments. As of September 25, 2021, the Company had restricted cash of $1.7 million in an escrow account for general indemnification purposes.

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The following table summarizes the final purchase price allocation of the fair value of assets acquired and liabilities assumed in the Hartland acquisition:

(in thousands)	Purchase Price Allocation
Total purchase consideration:
Cash, net of cash acquired, and restricted cash	$	109,852
Allocation of consideration to assets acquired and liabilities assumed:
Trade receivables, net	13,027
Inventories	35,808
Other current assets	2,224
Property, plant, and equipment	6,296
Intangible assets	39,660
Goodwill	40,442
Other non-current assets	3,787
Current liabilities	(24,846)
Other non-current liabilities	(6,546)
	$	109,852

All Hartland goodwill, other assets and liabilities were recorded in the Industrial segment and are primarily reflected in the Americas and Asia-Pacific geographic areas. The goodwill resulting from this acquisition consists largely of the Company’s expected future product sales and synergies from combining Hartland’s products and technology with the Company’s existing industrial products portfolio. Goodwill resulting from the Hartland acquisition is not expected to be deductible for tax purposes.

Included in the Company’s Condensed Consolidated Statements of Net Income for the three and nine months ended September 25, 2021 are net sales of $29.3 million and $72.3 million respectively, and an income (loss) before income taxes of $1.2 million and $(1.3) million, respectively since the January 28, 2021 acquisition of Hartland.

The Company recorded a $6.8 million step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation. The step-up was amortized as a non-cash charge to cost of goods sold during the first and second quarters of 2021, as the acquired inventory was sold, and is reflected as other non-segment costs. During the nine months ended September 25, 2021, the Company recognized a charge of $6.8 million for the amortization of this fair value inventory step-up.

During the nine months ended September 25, 2021, the Company incurred approximately $0.8 million of legal and professional fees related to this acquisition recognized as Selling, general, and administrative expenses. These costs were reflected as other non-segment costs.

Pro Forma Results

The following table summarizes, on an unaudited pro forma basis, the combined results of operations of the Company and Hartland as though the acquisition had occurred as of December 29, 2019. The pro forma amounts presented are not necessarily indicative of either the actual consolidated results had the Hartland acquisition occurred as of December 29, 2019 or of future consolidated operating results.

	For the Three Months Ended				For the Nine Months Ended
(in thousands, except per share amounts)	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
Net sales	$	539,581	$	414,100	$	1,533,901	$	1,101,430
Income before income taxes	113,591		69,478		289,530		90,516
Net income	92,054		56,961		238,197		69,526
Net income per share — basic	3.74		2.34		9.69		2.85
Net income per share — diluted	3.69		2.32		9.56		2.83

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Pro forma results presented above primarily reflect the following adjustments:

	For the Three Months Ended				For the Nine Months Ended
(in thousands)	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
Amortization(a)	$	—	$	(838)	$	(280)	$	(2,514)
Depreciation	—		44		7		139
Transaction costs(b)	—		—		835		(835)
Amortization of inventory step-up(c)	—		—		6,808		(6,796)
Income tax (expense) benefit of above items	—		167		(1,555)		2,107

(a)The amortization adjustment for the three and nine months ended September 26, 2020 primarily reflects incremental amortization resulting from the measurement of intangibles at their fair values.

(b)The transaction cost adjustments reflect the reversal of certain legal and professional fees from the nine months ended September 25, 2021 and recognition of those fees during the nine months ended September 26, 2020.

(c)The amortization of inventory step-up adjustment reflects the reversal of the amount recognized during the nine months ended September 25, 2021 and the recognition of the amortization during the nine months ended September 26, 2020. The inventory step-up was amortized over four months as the inventory was sold.

3. Inventories

The components of inventories at September 25, 2021 and December 26, 2020 are as follows:

(in thousands)	September 25, 2021		December 26, 2020
Raw materials	$	121,282	$	85,394
Work in process	109,347		92,783
Finished goods	161,567		114,641
Inventory Reserves	(35,172)		(34,816)
Total	$	357,024	$	258,002

4. Property, Plant, and Equipment

The components of net property, plant, and equipment at September 25, 2021 and December 26, 2020 are as follows:

(in thousands)	September 25, 2021		December 26, 2020
Land	$	22,887	$	22,851
Building	129,135		123,497
Equipment	725,971		678,220
Accumulated depreciation and amortization	(513,664)		(480,390)
Total	$	364,329	$	344,178

The Company recorded depreciation expense of $14.2 million for both the three months ended September 25, 2021 and September 26, 2020, and $41.4 million and $42.0 million for the nine months ended September 25, 2021 and September 26, 2020, respectively.

5. Goodwill and Other Intangible Assets

The amounts for goodwill and changes in the carrying value by segment for the nine months ended September 25, 2021 are as follows:

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(in thousands)	Electronics		Automotive		Industrial		Total
Net book value of goodwill as of December 26, 2020
Gross goodwill as of December 26, 2020	$	676,325	$	138,354	$	47,551	$	862,230
Accumulated impairment losses as of December 26, 2020	—		(36,423)		(8,995)		(45,418)
Total	676,325		101,931		38,556		816,812
Changes during 2021:
Additions(a)	—		1,614		40,442		42,056
Currency translation	(9,530)		(2,165)		32		(11,663)
Net book value of goodwill as of September 25, 2021
Gross goodwill as of September 25, 2021	666,795		137,783		88,133		892,711
Accumulated impairment losses as of September 25, 2021	—		(36,403)		(9,103)		(45,506)
Total	$	666,795	$	101,380	$	79,030	$	847,205

(a) The additions primarily resulted from the acquisition of Hartland.

The Company tests its goodwill annually for impairment on the first day of its fiscal fourth quarter, 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. During the second quarter of 2020, the Company recorded a non-cash charge of $33.8 million to recognize the impairment of goodwill in the automotive sensors reporting unit within the Automotive segment. The goodwill impairment charge was determined using Level 3 inputs, including discounted cash flow analysis and comparable marketplace fair value data. As of September 25, 2021, the automotive sensors reporting unit had $9.5 million of remaining goodwill.

The components of other intangible assets as of September 25, 2021 and December 26, 2020 are as follows:

	As of September 25, 2021
(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Land use rights	$	10,354	$	2,230	$	8,124
Patents, licenses and software	142,606		99,834		42,772
Distribution network	43,601		40,306		3,295
Customer relationships, trademarks, and tradenames	399,655		158,080		241,575
Total	$	596,216	$	300,450	$	295,766

	As of December 26, 2020
(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Land use rights	$	10,280	$	2,007	$	8,273
Patents, licenses and software	137,210		92,868		44,342
Distribution network	43,910		38,980		4,930
Customer relationships, trademarks, and tradenames	372,064		137,722		234,342
Total	$	563,464	$	271,577	$	291,887

During the three months ended September 25, 2021 and September 26, 2020, the Company recorded amortization expense of $10.4 million and $10.1 million, respectively. During the nine months ended September 25, 2021 and September 26, 2020, the Company recorded amortization expense of $31.6 million and $29.9 million, respectively.

The Company recognized a $0.3 million non-cash impairment charge in the first quarter of 2020 on a certain patent triggered by the Company’s announcement to consolidate a manufacturing facility within the Industrial segment.

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During the nine months ended September 25, 2021, the Company recorded additions to intangible assets of $39.7 million, related to the Hartland acquisition, the components of which were as follows:

(in thousands)	Weighted Average Useful Life	Amount
Patents, licenses and software	9.2	$	7,559
Customer relationships, trademarks, and tradenames	13.7	32,101
Total		$	39,660

Estimated annual amortization expense related to intangible assets with definite lives as of September 25, 2021 is as follows:

(in thousands)	Amount
2021	$	41,922
2022	40,761
2023	36,461
2024	33,038
2025	33,019
2026 and thereafter	142,173
Total	$	327,374

6. Accrued Liabilities

The components of accrued liabilities as of September 25, 2021 and December 26, 2020 are as follows:

(in thousands)	September 25, 2021		December 26, 2020
Employee-related liabilities	$	80,034	$	50,689
Operating lease liability	8,649		6,811
Other non-income taxes	5,352		2,126
Professional services	3,375		3,321
Restructuring liability	3,075		4,195
Interest	2,598		4,517
Deferred revenue	867		2,959
Customer liability	740		3,858
Other	34,980		32,002
Total	$	139,670	$	110,478

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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7. Restructuring, Impairment, and Other Charges

The Company recorded restructuring, impairment and other charges for the three and nine months ended September 25, 2021 and September 26, 2020 as follows:

	Three months ended September 25, 2021								Nine months ended September 25, 2021
(in thousands)	Electronics		Automotive		Industrial		Total		Electronics		Automotive		Industrial		Total
Employee terminations	$	542	$	—	$	133	$	675	$	1,094	$	416	$	302	$	1,812
Other restructuring charges	—		97		—		97		—		186		—		186
Total restructuring charges	542		97		133		772		1,094		602		302		1,998
Total	$	542	$	97	$	133	$	772	$	1,094	$	602	$	302	$	1,998

	Three months ended September 26, 2020								Nine months ended September 26, 2020
(in thousands)	Electronics		Automotive		Industrial		Total		Electronics		Automotive		Industrial		Total
Employee terminations	$	388	$	162	$	648	$	1,198	$	2,125	$	770	$	1,719	$	4,614
Other restructuring charges	—		—		79		79		—		108		104		212
Total restructuring charges	388		162		727		1,277		2,125		878		1,823		4,826
Impairment	—		—		—		—		—		33,841		2,237		36,078
Total	$	388	$	162	$	727	$	1,277	$	2,125	$	34,719	$	4,060	$	40,904

2021

For the three and nine months ended September 25, 2021, the Company recorded total restructuring charges of $0.8 million and $2.0 million, primarily for employee termination costs. These charges are primarily related to the reorganization of certain manufacturing, selling and administrative functions within the Electronics and Automotive segments.

2020

For the three and nine months ended September 26, 2020, the Company recorded total restructuring charges of $1.3 million and $4.8 million, respectively, for employee termination costs and other restructuring charges. These charges are 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 $36.1 million of impairment charges for the nine months ended September 26, 2020, respectively, which included a $33.8 million goodwill impairment charge associated with the automotive sensors reporting unit within the Automotive segment in the second quarter of 2020 and $2.2 million related to the land and building associated with the Company’s previously announced consolidation of a manufacturing facility within the Industrial segment in the first quarter of 2020. The impairment charges of the land and building were included in selling, general, and administrative expenses. See Note 5, Goodwill and Other Intangible Assets for further discussion regarding the goodwill impairment charge.

The restructuring liability as of September 25, 2021 and December 26, 2020 is $3.1 million and $4.2 million, respectively. The restructuring liability is 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 the third quarter of 2022.

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8. Debt

The carrying amounts of debt at September 25, 2021 and December 26, 2020 are as follows:

(in thousands)	September 25, 2021		December 26, 2020
Revolving Credit Facility	$	100,000	$	130,000
Euro Senior Notes, Series A due 2023	137,173		142,679
Euro Senior Notes, Series B due 2028	111,380		115,850
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	(3,441)		(4,114)
Total debt	647,731		687,034
Less: Current maturities	(27,619)		—
Total long-term debt	$	620,112	$	687,034

Revolving Credit Facility

On April 3, 2020, the Company amended its Credit Agreement to effect certain changes, including, among others: (i) eliminating the $200.0 million unsecured term loan credit facility, the remaining outstanding balance ($140.0 million) 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 Company made payments of $30.0 million on the amended revolving credit facility during the nine months ended September 25, 2021. The balance under the facility was $100.0 million as of September 25, 2021.

Outstanding borrowings under the amended Credit Agreement bears interest, at the Company’s option, at either LIBOR, fixed for interest periods of one, two, three or six-month periods, plus 1.25% to 2.00%, or at the bank’s Base Rate, as defined, plus 0.25% to 1.00%, based upon the Company’s Consolidated Leverage Ratio, as defined. The Company is also required to pay commitment fees on unused portions of the credit agreement ranging from 0.125% to 0.20%, based on the Consolidated Leverage Ratio, as defined in the agreement. The amended Credit Agreement includes 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 1.33% on September 25, 2021.

As of September 25, 2021, the Company had no amount outstanding in letters of credit and had available $600.0 million of borrowing capacity under the Revolving Credit Facility. As of of September 25, 2021, the Company was in compliance with all covenants under the Credit Agreement.

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

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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 September 25, 2021, 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 $6.1 million and $6.4 million for the three months ended September 25, 2021 and September 26, 2020, respectively, and $14.8 million and $17.2 million for the nine months ended September 25, 2021 and September 26, 2020, 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.

Other Investments

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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 nine months ended September 25, 2021, the Company impaired the remaining book value of these investments and recorded an impairment charge of $0.5 million and during the three and nine months ended September 26, 2020, the Company recorded impairment charges of $0.1 million in Other income, net in the Condensed Consolidated Statements of Net Income. As of December 26, 2020, the balance of these investments was $0.5 million. The fair value of these investments is measured on a nonrecurring basis using Level 3 inputs under the fair value hierarchy.

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 September 25, 2021 to the Company’s valuation techniques used to measure asset and liability fair values on a recurring basis. As of September 25, 2021 and December 26, 2020, 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 September 25, 2021:

	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	$	15,970	$	—	$	—	$	15,970
Investments in equity securities	27,358		—		—		27,358
Mutual funds	14,711		—		—		14,711
Total	$	58,039	$	—	$	—	$	58,039

The following table presents assets measured at fair value by classification within the fair value hierarchy as of December 26, 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	$	73,461	$	—	$	—	$	73,461
Investments in equity securities	19,186		—		—		19,186
Mutual funds	13,249		—		—		13,249
Total	$	105,896	$	—	$	—	$	105,896

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 credit facilities’ fair values approximate book value at September 25, 2021 and December 26, 2020, as the rates on these borrowings are variable in nature.

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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 September 25, 2021 and December 26, 2020 were as follows:

	September 25, 2021				December 26, 2020
(in thousands)	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Euro Senior Notes, Series A due 2023	$	137,173	$	138,825	$	142,679	$	144,323
Euro Senior Notes, Series B due 2028	111,380		116,425		115,850		123,588
USD Senior Notes, Series A due 2022	25,000		25,167		25,000		25,437
USD Senior Notes, Series B due 2027	100,000		106,585		100,000		109,552
USD Senior Notes, Series A due 2025	50,000		52,567		50,000		53,474
USD Senior Notes, Series B due 2030	125,000		133,376		125,000		138,036

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 during the first quarter of 2020. See Note 7, Restructuring, Impairment, and Other Charges, for further discussion. The fair value of the land and building was valued using a real estate appraisal and classified as a Level 3 input under the fair value hierarchy.

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 income, net in the Condensed Consolidated Statements of Net Income. The components of net periodic benefit cost for the three and nine months ended September 25, 2021 and September 26, 2020 were as follows: 

	For the Three Months Ended				For the Nine Months Ended
(in thousands)	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
Components of net periodic benefit cost:
Service cost	$	684	$	615	$	2,086	$	1,825
Interest cost	434		511		1,317		1,655
Expected return on plan assets	(361)		(422)		(1,099)		(1,551)
Amortization of prior service and net actuarial loss	327		279		992		688
Net periodic benefit cost	$	1,084	$	983	$	3,296	$	2,617

The Company expects to make approximately $2.2 million of contributions to the plans and pay $3.8 million of benefits directly in 2021.

The Company also sponsors certain post-employment plans in foreign countries and other statutory benefit plans. The Company recorded expense of $0.6 million and $0.5 million for the three months ended September 25, 2021 and September 26, 2020, respectively, and $1.6 million and $1.5 million expense for the nine months ended September 25, 2021 and September 26, 2020, respectively, in Cost of Sales and Other income, net within the Condensed Consolidated Statements of Net Income. For the three and nine months ended September 25, 2021, the pre-tax amounts recognized in other comprehensive income (loss) as components of net periodic benefit costs for these plans were $0.2 million and $0.5 million, respectively. For the three and nine months ended September 26, 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 and $0.5 million, respectively.

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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 directly pay and administer pension payments to certain of the Company’s U.K. pension plan participants, or their designated beneficiaries. The purchase of this group annuity contract will reduce the Company’s outstanding pension benefit obligation by approximately $55 million, representing approximately 37% 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 currently estimated between $18 million and $22 million in the fourth quarter of 2021, reflecting the accelerated recognition of unamortized actuarial losses in the plan. The actual amount and timing of the settlement charge could differ from this estimate due to final data and plan wind-up expenses. Due to the signing of the group annuity contract being a significant change in the U.K. pension plan, the liabilities of the plan were remeasured as of April 6, 2020 resulting in an increase of $13.4 million (£10.9 million) to both the net pension liability and unamortized actuarial loss within other comprehensive income (loss) during the second quarter of 2020. Additionally, the Company made a cash contribution of $10.4 million (£8.4 million) under this agreement during the second quarter of 2020.

11. Other Comprehensive (Loss) Income

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

(in thousands)	Three Months Ended September 25, 2021						Three Months Ended September 26, 2020
	Pre-tax		Tax		Net of Tax		Pre-tax		Tax		Net of Tax
Defined benefit pension plan and other adjustments	$	601	$	114	$	487	$	273	$	(290)	$	563
Foreign currency translation adjustments	(5,441)		—		(5,441)		16,418		—		16,418
Total change in other comprehensive (loss) income	$	(4,840)	$	114	$	(4,954)	$	16,691	$	(290)	$	16,981
(in thousands)	Nine Months Ended September 25, 2021						Nine Months Ended September 26, 2020
	Pre-tax		Tax		Net of Tax		Pre-tax		Tax		Net of Tax
Defined benefit pension plan adjustments	$	1,479	$	209	$	1,270	(12,270)		(2,555)		$	(9,715)
Foreign currency translation adjustments	(5,641)		—		(5,641)		$	9,300	$	—	$	9,300
Total change in other comprehensive (loss) income	$	(4,162)	$	209	$	(4,371)	$	(2,970)	$	(2,555)	$	(415)

Due to the signing of the group annuity contract being a significant change in the U.K. pension plan, the liabilities of the plan were remeasured as of April 6, 2020 resulting in an increase of $13.4 million to unamortized actuarial loss within other comprehensive income (loss). See Note 10, Benefit Plans for further discussion.

The following tables set forth the changes in accumulated other comprehensive (loss) by component for the nine months ended September 25, 2021 and September 26, 2020:

(in thousands)	Defined benefit pension plan and other adjustments		Foreign currency translation adjustment		Accumulated other comprehensive (loss)
Balance at December 26, 2020	$	(34,141)	$	(57,016)	$	(91,157)
Activity in the period	1,270		(5,641)		(4,371)
Balance at September 25, 2021	$	(32,871)	$	(62,657)	$	(95,528)

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(in thousands)	Defined benefit pension plan and other adjustments		Foreign currency translation adjustment		Accumulated other comprehensive (loss)
Balance at December 28, 2019	$	(18,046)	$	(88,777)	$	(106,823)
Activity in the period	(9,715)		9,300		(415)
Balance at September 26, 2020	$	(27,761)	$	(79,477)	$	(107,238)

Amounts reclassified from accumulated other comprehensive (loss) to earnings for the three and nine months ended September 25, 2021 and September 26, 2020 were as follows:

	Three Months Ended				Nine Months Ended
(in thousands)	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
Pension and Postemployment plans:
Amortization of prior service and net actuarial loss	$	501	$	452	$	1,514	$	1,226

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

12. Income Taxes

The effective tax rate for the three and nine months ended September 25, 2021 was 19.0% and 17.6%, respectively, compared to the effective tax rate for the three and nine months ended September 26, 2020 of 17.9% and 23.1%, respectively. The effective tax rate for the third quarter of 2021 is higher than the effective tax rate for the comparable 2020 period, primarily due to a reduction during the third quarter of 2020 in the estimated 2020 annual effective tax rate, the impact of which was recorded during the third quarter of 2020.

The effective tax rate for the first nine months of 2021 is lower than the effective tax rate for the comparable 2020 period, primarily due to an increase in the forecasted income earned in lower tax jurisdictions in 2021 as compared to 2020, as well as the impact of the goodwill impairment charge of $33.8 million recorded in the second quarter of 2020, the substantial majority of which did not result in a tax benefit in the annual estimated effective tax rate. The effective tax rate for the 2021 period is lower than the applicable U.S. statutory tax rate primarily due to income earned in lower tax jurisdictions.

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13. Earnings Per Share

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

	Three Months Ended				Nine Months Ended
(in thousands, except per share amounts)	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
Numerator:
Net income as reported	$	92,054	$	55,356	$	231,862	$	71,009
Denominator:
Weighted average shares outstanding
Basic	24,622		24,357		24,582		24,354
Effect of dilutive securities	304		216		322		181
Diluted	24,926		24,573		24,904		24,535
Earnings Per Share:
Basic earnings per share	$	3.74	$	2.27	$	9.43	$	2.92
Diluted earnings per share	$	3.69	$	2.25	$	9.31	$	2.89

Potential shares of common stock relating to stock options and restricted share units excluded from the earnings per share calculation because their effect would be anti-dilutive were 57,936 and 290,262 for the three months ended September 25, 2021 and September 26, 2020, respectively, and 32,773 and 194,857 for the nine months ended September 25, 2021 and September 26, 2020, respectively.

Share Repurchase 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"). On April 29, 2020, the Company announced that the 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. On April 28, 2021, the Company announced that the Board of Directors authorized a new three year program to repurchase up to $300.0 million in the aggregate of shares of the Company’s common stock for the period May 1, 2021 to April 30, 2024 to replace its previous 2020 program.

The Company did not repurchase any shares of its common stock for the three and nine months ended September 25, 2021. During the nine months ended September 26, 2020, the Company repurchased 175,110 shares of its common stock totaling $22.9 million.

14. Related Party Transactions

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.

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	For the Three Months Ended September 25, 2021						For the Three Months Ended September 26, 2020
(in millions)	Powersem		EB Tech		ATEC		Powersem		EB Tech		ATEC
Sales to related party	$	—	$	—	$	—	$	0.4	$	—	$	—
Purchase material/service from related party	0.8		0.1		3.1		0.8		—		2.4
	For the Nine Months Ended September 25, 2021						For the Nine Months Ended September 26, 2020
(in millions)	Powersem		EB Tech		ATEC		Powersem		EB Tech		ATEC
Sales to related party	$	0.2	$	—	$	—	$	1.1	$	—	$	—
Purchase material/service from related party	2.6		0.3		8.9		1.8		—		5.8
	September 25, 2021						December 26, 2020
(in millions)	Powersem		EB Tech		ATEC		Powersem		EB Tech		ATEC
Accounts receivable balance	$	—	$	—	$	—	$	0.1	$	—	$	—
Accounts payable balance	0.1		—		2.1		0.1		—		0.2

15. Segment Information

The Company and its subsidiaries design, manufacture and sell components and modules empowering a sustainable, connected, and safer 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 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 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 motor drives and power conversion, automotive electronics, electric vehicle and related infrastructure, power supplies, data centers and telecommunications, medical devices, alternative energy, building and home automation, appliances, and mobile electronics.

•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 for internal combustion engine, 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 used in applications serving a number of end markets, including heavy truck, construction, agriculture and material handling. Automotive sensor products include a wide range of

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automotive and commercial vehicle products designed to monitor the passenger compartment occupant's safety and environment as well as the vehicle’s powertrain.

•Industrial Segment: Consists of industrial circuit protection products (i.e. fuses, power distribution modules, switches) and industrial control products (i.e. relays, transformers, contactors, sensors). These products are used in a variety of applications and end-markets including: renewable energy, energy storage, HVAC, electric vehicle infrastructure, industrial equipment, industrial automation, construction, mining, and oil & gas.

Segment information is summarized as follows: 

	Three Months Ended				Nine Months Ended
(in thousands)	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
Net sales
Electronics	$	347,240	$	255,349	$	959,122	$	692,809
Automotive	124,415		104,724		386,262		271,493
Industrial	67,926		31,493		181,479		80,697
Total net sales	$	539,581	$	391,566	$	1,526,863	$	1,044,999
Depreciation and amortization
Electronics	$	15,503	$	15,819	$	45,998	46,967
Automotive	7,075		7,370		21,094		21,628
Industrial	2,058		1,140		5,957		3,270
Total depreciation and amortization	$	24,636	$	24,329	$	73,049	$	71,865
Operating income
Electronics	$	100,524	$	45,860	$	230,283	$	110,783
Automotive	15,806		15,383		55,380		20,642
Industrial	6,571		4,898		18,452		8,409
Other(a)	(2,794)		(1,583)		(11,270)		(42,476)
Total operating income	120,107		64,558		292,845		97,358
Interest expense	4,602		4,988		13,901		16,261
Foreign exchange loss (gain)	3,154		(6,174)		8,315		(9,600)
Other income, net	(1,240)		(1,682)		(10,867)		(1,643)
Income before income taxes	$	113,591	$	67,426	$	281,496	$	92,340

(a) Included in “Other” Operating income for the third quarter of 2021 was $6.8 million year-to-date of purchase accounting inventory step-up charges, $2.0 million ($3.4 million year-to-date) of legal and professional fees and other integration expenses related to Hartland and other contemplated acquisitions, and $0.8 million ($2.0 million year-to-date) of restructuring, impairment and other charges, primarily related to employee termination costs. See Note 7, Restructuring, Impairment, and Other Charges, for further discussion. In addition, there was a year-to-date gain of $0.9 million recorded for the sale of a building within the Electronics segment.

Included in “Other” Operating income for the 2020 third quarter was $0.3 million ($1.6 million year-to-date) of acquisition-related and integration charges related to the IXYS acquisition and other contemplated acquisitions. In addition, there was $1.3 million ($40.9 million year-to-date) of restructuring, impairment and other charges, primarily related to employee termination costs of $1.2 million ($4.6 million year-to-date), and other restructuring charges of $0.1 million ($0.2 million year-to-date), the goodwill impairment charge of $33.8 million recorded in the second quarter associated with the automotive sensors reporting unit within the Automotive segment, impairment charges of $2.2 million recorded in the first quarter associated with the announced consolidation of a manufacturing facility within the Industrial segment. See Note 5, Goodwill and Other Intangible Assets and Note 7, Restructuring, Impairment, and Other Charges, for further discussion.

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

	Three Months Ended				Nine Months Ended
(in thousands)	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
Net sales
United States	$	172,995	$	106,121	$	458,723	$	285,901
China	160,628		126,506		455,872		314,547
Other countries(a)	205,958		158,939		612,268		444,551
Total net sales	$	539,581	$	391,566	$	1,526,863	$	1,044,999

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

(in thousands)	September 25, 2021		December 26, 2020
Long-lived assets
United States	$	47,533	$	46,132
China	90,984		85,876
Mexico	82,882		70,125
Germany	40,115		37,976
Philippines	68,594		66,994
Other countries(a)	34,221		37,075
Total long-lived assets	$	364,329	$	344,178

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

	Nine Months Ended
(in thousands)	September 25, 2021		September 26, 2020
Additions to long-lived assets
United States	$	3,696	$	2,712
China	13,790		6,414
Mexico	22,518		7,291
Germany	6,994		3,793
Philippines	10,109		15,331
Other countries(a)	3,527		1,152
Total additions to long-lived assets	$	60,634	$	36,693

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

16. Subsequent event

On October 20, 2021, the Company announced that it had entered into a definitive agreement to acquire Carling Technologies, Inc. (“Carling”) for $315 million in cash, subject to a working capital adjustment. Founded in 1920, Carling has a leading position in switching and circuit protection technologies with a strong global presence in commercial vehicle, marine and datacom/telecom infrastructure markets. The business is headquartered in Plainville, Connecticut, with offices and facilities located around the world and will be reported as part of the commercial vehicle business within our Automotive segment. The transaction is subject to customary closing conditions and regulatory approvals, and is expected to close in the fourth quarter of 2021.

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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; cybersecurity matters; 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 the Company's Annual Report on Form 10-K for the year ended December 26, 2020, and the Company's other filings 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 26, 2020. 

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 an industrial technology manufacturing company empowering a sustainable, connected, and safer world. Across more than 15 countries, and with 12,000 global associates, we partner with customers to design and deliver innovative, reliable solutions. Serving over 100,000 end customers, our products are found in a variety of industrial, transportation and electronics end markets – everywhere, every day.

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 empowering a sustainable, connected, and safer world. Our products protect against electrostatic discharge, power surges, short circuits, voltage spikes and other harmful occurrences, safely and efficiently control power and improve productivity and are used to identify and detect temperature, proximity, flow speed and fluid level in various applications.

Executive Summary

For the third quarter of 2021, the Company recognized net sales of $539.6 million, an increase of $148.0 million, or 37.8% as compared to $391.6 million in the third quarter of 2020. The increase was primarily driven by higher volumes across each of the segments, $29.3 million or 5.4% of net sales from the Hartland acquisition within the Industrial segment and $4.2 million or 1.1% of favorable changes in foreign exchange rates. The Company recognized net income of $92.1 million, or $3.69 per diluted share, in the third quarter of 2021 compared to $55.4 million, or $2.25 per diluted share in the third quarter of 2020. The increase in net income reflects higher operating income of $55.5 million driven by a $54.7 million increase in operating income in the Electronics segment partially offset by higher foreign exchange losses and acquisition-related and integration charges.

Supply chain constraints, including transportation capacity shortages have and are expected to continue to impact the Company, our suppliers and our customers. This has resulted in higher transportation and input costs incurred by the Company and supply chain shortages have impacted our suppliers and customers across the markets that we serve.

Net cash provided by operating activities was $240.7 million for the nine months ended September 25, 2021 as compared to $164.3 million for the nine months ended September 26, 2020. The increase in net cash provided by operating activities was primarily due to higher cash earnings partially offset by increases in working capital resulting from higher sales growth.

On January 28, 2021, the Company acquired Hartland Controls ("Hartland"), a manufacturer and leading supplier of electrical components used primarily in heating, ventilation, air conditioning (HVAC) and other industrial and control systems applications with annualized sales of approximately $70 million. The purchase price for Hartland was $112.3 million and the operations of Hartland are included in the Industrial segment.

On October 20, 2021, the Company announced that it had entered in a definitive agreement to acquire Carling Technologies, Inc. (“Carling”) for $315 million in cash, subject to a working capital adjustment. Founded in 1920, Carling has a leading position in switching and circuit protection technologies with a strong global presence in commercial vehicle, marine and datacom/telecom infrastructure markets. The business is headquartered in Plainville, Connecticut, with offices and facilities located around the world and will be reported as part of the commercial vehicle business within our Automotive segment. The transaction is subject to customary closing conditions and regulatory approvals, and is expected to close in the fourth quarter of 2021.

Impact of COVID-19 on Business

The effects from COVID-19 continue to drive increased costs, though lower than 2020 levels. Ongoing costs include spending on personal protective equipment ("PPE"), additional personnel and employee transportation costs, and manufacturing inefficiencies. as well as an increase in transportation costs and raw material due to the transportation capacity constraints across the world. The company has also been experiencing higher raw material costs, as well as transportation costs due to global transportation capacity constraints

The Company anticipates that the disruptions caused by COVID-19 may continue to impact its business activity for the foreseeable future. It is currently difficult to estimate the magnitude of the COVID-19 disruption, if future disruptions will occur due to a resurgence in COVID-19 cases 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

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business and operations, including the effects on our customers, employees, and prospects, or on our financial results for the fiscal year 2021.

Results of Operations

The following table summarizes the Company’s unaudited condensed consolidated results of operations for the periods presented. The third quarter of 2021 includes $6.8 million year-to-date of purchase accounting inventory step-up charges, $2.0 million ($3.4 million year-to-date) of legal and professional fees and other integration expenses related to Hartland and other contemplated acquisitions, and $0.8 million ($2.0 million year-to-date) of restructuring, impairment and other charges, primarily related to employee termination costs. See Note 7, Restructuring, Impairment, and Other Charges, for further discussion. In addition, there was a year-to-date gain of $0.9 million recorded for the sale of a building within the Electronics segment.

The third quarter of 2020 includes $0.3 million ($1.6 million year-to-date) of acquisition-related and integration charges related to the IXYS acquisition and other contemplated acquisitions. In addition, there was $1.3 million ($40.9 million year-to-date) of restructuring, impairment and other charges, primarily related to employee termination costs of $1.2 million ($4.6 million year-to-date), and other restructuring charges of $0.1 million ($0.2 million year-to-date), the goodwill impairment charge of $33.8 million recorded in the second quarter associated with the automotive sensors reporting unit within the Automotive segment, impairment charges of $2.2 million recorded in the first quarter associated with the announced consolidation of a manufacturing facility within the Industrial segment.

	Third Quarter								First Nine Months
(in thousands)	2021		2020		Change		% Change		2021		2020		Change		% Change
Net sales	$	539,581	$	391,566	$	148,015	37.8	%	$	1,526,863	$	1,044,999	$	481,864	46.1	%
Cost of sales	325,009		252,735		72,274		28.6	%	954,429		681,910		272,519		40.0	%
Gross profit	214,572		138,831		75,741		54.6	%	572,434		363,089		209,345		57.7	%
Operating expenses	94,465		74,273		20,192		27.2	%	279,589		265,731		13,858		5.2	%
Operating income	120,107		64,558		55,549		86.0	%	292,845		97,358		195,487		200.8	%
Income before income taxes	113,591		67,426		46,165		68.5	%	281,496		92,340		189,156		204.8	%
Income taxes	21,537		12,070		9,467		78.4	%	49,634		21,331		28,303		132.7	%
Net income	$	92,054	$	55,356	$	36,698	66.3	%	$	231,862	$	71,009	$	160,853	226.5	%

Net Sales

Net sales increased $148.0 million or 37.8% including $4.2 million or 1.1% of favorable changes in foreign exchange rates for the third quarter of 2021 compared to the third quarter of 2020. The increase was driven by growth across each of our segments with the most significant sales growth within the Electronics and Automotive segments, which had sales increases of $91.9 million and $19.7 million, respectively. The increase within the Electronics segment was led by continued broad-based demand across electronics, transportation and industrial end markets. The increase within the Automotive segment was across both the passenger car and commercial vehicle businesses. While global car build declined compared to the same quarter last year largely due to market shortages of semiconductor chips, the automotive growth was due to greater content growth across passenger vehicles from vehicle mix, including growth in electric vehicles, as well as some customers maintaining additional inventory of our products. The growth in the commercial vehicle business was driven largely by continued demand across a number of commercial vehicle end markets. The remaining increase in net sales was primarily due to $29.3 million of net sales resulting from the Hartland acquisition included in the Industrial segment and volume growth across all businesses within the Industrial segment.

Net sales increased $481.9 million or 46.1% including $30.1 million or 2.9% of favorable changes in foreign exchange rates for the first nine months of 2021 compared to 2020. The increase was due to volume growth across all segments and businesses while the first nine months of 2020 had temporary closures of manufacturing facilities resulting from government directives due to the impact of COVID-19. The increase was primarily due to higher sales of $266.3 million and $114.8 million in the

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Electronics and Automotive segments, respectively, driven by higher volumes across all businesses within these segments. The volume increase within the Electronics segment was led by broad-based demand across electronics, transportation and industrial end markets. The volume increase within the Automotive segment was led by growth in global auto and commercial vehicle market demand, greater content growth across passenger vehicles due to vehicle mix, including growth in electric vehicles and some customers maintaining additional inventory of our products. The remaining increase in net sales was primarily due to $72.3 million of net sales resulting from the Hartland acquisition included in the Industrial segment and volume growth across all businesses within the Industrial segment.

Cost of Sales

Cost of sales was $325.0 million, or 60.2% of net sales, in 2021, compared to $252.7 million, or 64.5% of net sales, in 2020. The increase in cost of sales was primarily due to greater volume across all segments driven by the factors discussed above along with the acquisition of Hartland. As a percent of net sales, cost of sales decreased 4.3% driven by volume leverage and favorable product mix, partially offset by higher transportation, duty and tariff charges of 1.9%, and higher commodity costs.

Cost of sales was $954.4 million, or 62.5% of net sales for the first nine months of 2021, compared to $681.9 million, or 65.3% of net sales for the first nine months of 2020. The increase in cost of sales was primarily due to greater volume across all segments driven by the factors discussed above along with the acquisition of Hartland. As a percent of net sales, cost of sales decreased 2.7% driven by volume leverage, partially offset by higher transportation, duty and tariff charges of 0.8%, the Hartland purchase accounting inventory charges of $6.8 million or 0.4%, and higher commodity costs.

Gross Profit

Gross profit was $214.6 million, or 39.8% of net sales, in the third quarter of 2021 compared to $138.8 million, or 35.5% of net sales, for the third quarter of 2020. The $75.7 million increase in gross profit was primarily due to higher volume in the Electronics segment. The increase in gross margin of 4.3% was primarily driven by volume leverage and favorable product mix within the Electronics segment, higher prices, partially offset by higher transportation, duty and tariff charges as a percent of net sales of 1.9%, and higher commodity costs.

Gross profit was $572.4 million, or 37.5% of net sales, in the first nine months of 2021 compared to $363.1 million, or 34.7% of net sales, for the first nine months of 2020. The $209.3 million increase in gross profit was primarily due to higher volume across all segments while the first nine months of 2020 had additional costs associated with government-directed plant shutdowns and supply chain constraints. The increase in gross margin of 2.7% was primarily driven by volume leverage and favorable product mix within the Electronics segment, partially offset by higher transportation, duty and tariff charges as a percent of net sales of 0.8%, the purchase accounting inventory charges of $6.8 million or 0.4%, and higher commodity costs.

Operating Expenses

Total operating expenses were $94.5 million, or 17.5% of net sales, for the third quarter of 2021 compared to $74.3 million, or 19.0% of net sales, for the third quarter of 2020. The increase in operating expenses of $20.2 million was primarily due to the higher selling, general and administrative expenses of $17.5 million largely due to higher accrued incentive compensation and the Hartland acquisition, and higher research and development expenses of $2.8 million.

Total operating expenses were $279.6 million, or 18.3% of net sales, for the first nine months of 2021 compared to $265.7 million, or 25.4% of net sales, for the first nine months of 2020. The increase in operating expenses of $13.9 million is primarily due to higher selling, general, and administrative expenses of $44.7 million largely due to higher accrued incentive compensation and the Hartland acquisition, and higher research and development expenses of $6.3 million, partially offset by the 2020 goodwill impairment charge of $33.8 million, or 3.2% of net sales, in the automotive sensors reporting unit within the Automotive segment and impairment charges of $2.2 million related to the Company’s 2020 first quarter announcement to consolidate a manufacturing facility within the Industrial segment.

Operating Income

Operating income was $120.1 million, an increase of $55.5 million, or 86.0%, for the third quarter of 2021 compared to $64.6 million for the third quarter of 2020. The increase in operating income was due to higher gross profit from all segments, particularly in the Electronics segment, partially offset by higher operating expenses as noted above. Operating margins increased from 16.5% in the third quarter of 2020 to 22.3% in the third quarter of 2021 driven by the factors mentioned above.

Operating income was $292.8 million, an increase of $195.5 million, or 200.8%, for the first nine months of 2021 compared to $97.4 million for the first nine months of 2020. The increase in operating income was primarily due to higher gross margin

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across all segments partially offset by higher operating expenses noted above. Operating margins increased from 9.3% in the first nine months of 2020 to 19.2% in the first nine months of 2021 driven by the factors mentioned above. The goodwill impairment charge of $33.8 million negatively impacted the operating margin by 3.2% for the first nine months of 2020.

Income Before Income Taxes

Income before income taxes was $113.6 million, or 21.1% of net sales, for the third quarter of 2021 compared to $67.4 million, or 17.2% of net sales, for the third quarter of 2020. In addition to the factors impacting comparative results for operating income discussed above, income before income taxes was primarily impacted by foreign exchange losses of $3.2 million in the third quarter of 2021 compared to foreign exchange gains of $6.2 million in the third quarter of 2020.

Income before income taxes was $281.5 million, or 18.4% of net sales, for the first nine months of 2021 compared to $92.3 million, or 8.8% of net sales, for the first nine months of 2020. In addition to the factors impacting comparative results for operating income discussed above, income before income taxes was impacted by foreign exchange losses of $8.3 million during the nine months ended September 25, 2021 compared to foreign exchange gains of $9.6 million during nine months ended September 26, 2020, partially offset by a $7.7 million increase in unrealized investment gains associated with our equity investment and lower interest expense of $2.4 million due to lower outstanding borrowings under the credit facility along with a lower effective interest rate, and coal mining charges of $1.8 million incurred during the nine months ended September 26, 2020.

Income Taxes

Income tax expense for the third quarter of 2021 was $21.5 million, or an effective tax rate of 19.0%, compared to $12.1 million, or an effective tax rate of 17.9%, for the third quarter of 2020. The effective tax rate for the third quarter of 2021 is higher than the effective tax rate for the comparable 2020 period, primarily due to a reduction during the third quarter of 2020 in the estimated 2020 annual effective tax rate, the impact of which was recorded during the third quarter of 2020.

Income tax expense for the first nine months of 2021 was $49.6 million, or an effective tax rate of 17.6%, compared to $21.3 million, or an effective tax rate of 23.1%, for the first nine months of 2020. The effective tax rate for the first nine months of 2021 is lower than the effective tax rate for the comparable 2020 period primarily due to an increase in the forecasted income earned in lower tax jurisdictions in 2021 compared to 2020, and the impact of the goodwill impairment charge of $33.8 million recorded in the second quarter of 2020, the substantial majority of which did not result in a tax benefit. The effective tax rate for the 2021 period is lower than the applicable U.S. statutory tax rate primarily due to 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:

	Third Quarter								First Nine Months
(in thousands)	2021		2020		Change		% Change		2021		2020		Change		% Change
Electronics	$	347,240	$	255,349	$	91,891	36.0	%	$	959,122	$	692,809	$	266,313	38.4	%
Automotive	124,415		104,724		19,691		18.8	%	386,262		271,493		114,769		42.3	%
Industrial	67,926		31,493		36,433		115.7	%	181,479		80,697		100,782		124.9	%
Total	$	539,581	$	391,566	$	148,015	37.8	%	$	1,526,863	$	1,044,999	$	481,864	46.1	%

Electronics Segment

Net sales increased $91.9 million, or 36.0%, in the third quarter of 2021 compared to the third quarter of 2020 and included favorable changes in foreign exchange rates of $2.3 million. The sales increase was primarily due to increased volume for the electronics products and semiconductor businesses of $63.0 million and $28.8 million, respectively. The volume increase

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within the Electronics segment was led by continued broad-based demand across electronics, transportation and industrial end markets.

Net sales increased $266.3 million, or 38.4%, in the first nine months of 2021 compared to the first nine months of 2020 and included favorable changes in foreign exchange rates of $16.2 million. The sales increase was primarily due to increased volume for the electronics products and semiconductor businesses of $173.3 million and $93.0 million, respectively. The volume increases were driven by broad-based demand across electronics, transportation and industrial end markets while the first nine months of 2020 were negatively impacted by production disruptions due to the impact of COVID-19.

Automotive Segment

Net sales increased $19.7 million, or 18.8%, in the third quarter of 2021 compared to the third quarter of 2020 and included favorable changes in foreign exchange rates of $1.7 million. The sales increase was due to higher volume in passenger car products and commercial vehicle products businesses of $11.9 million and $9.7 million, respectively, partially offset by lower volume in automotive sensors business of $2.0 million. The increase within the Automotive segment was across both the passenger car and commercial vehicle businesses. While global car build declined compared to the same quarter last year largely due to market shortages of semiconductor chips, the automotive growth was due to greater content growth across passenger vehicles from vehicle mix, including growth in electric vehicles, as well as some customers maintaining additional inventory of our products. The growth in the commercial vehicle business was driven largely by continued demand across a number of commercial vehicle end markets. This growth was across all regions, particularly in Asia-Pacific where volumes and demand increased, but constrained in Europe and North America where supply chain shortages have had a detrimental impact on vehicle output.

Net sales increased $114.8 million, or 42.3%, in the first nine months of 2021 compared to the first nine months of 2020 and included favorable changes in foreign exchange rates of $13.0 million. These sales increases were due to higher volume in passenger car products, commercial vehicle products, and the automotive sensors businesses of $64.9 million, $34.9 million, and $14.9 million, respectively. These increases were due to stronger global auto and commercial vehicle market demand. Each of our regions experienced growth driven by an increase in global auto market demand as compared to the first nine months of 2020, which had production disruptions due to the impact of COVID-19. Sales also grew due to the launch of new products and higher content per vehicle due to automotive vehicle mix.

Industrial Segment

Net sales increased by $36.4 million, or 115.7%, in the third quarter of 2021 compared to the third quarter of 2020, which included favorable changes in foreign exchange rates of $0.2 million. The increase in net sales was primarily due to incremental net sales of $29.3 million or 92.9% from the Hartland acquisition and higher volume across all product lines.

Net sales increased by $100.8 million, or 124.9%, in the first nine months of 2021 compared to the first nine months of 2020, which included favorable changes in foreign exchange rates of $0.9 million. The increase in net sales was primarily due to incremental net sales of $72.3 million or 89.6% from the Hartland acquisition, growth across all product lines, and the transfer of the temperature sensor product line totaling $4.7 million which was previously reported in the Electronics segment and moved to Industrial segment in the third quarter of 2020. Additionally, the first nine months of 2020 was negatively impacted by production disruptions and temporary plant shutdown due to the impact of COVID-19. 

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:

	Third Quarter								First Nine Months
(in thousands)	2021		2020		Change		% Change		2021		2020		Change		% Change
Asia-Pacific	$	250,880	$	186,956	$	63,924	34.2	%	$	702,542	$	483,566	$	218,976	45.3	%
Americas	167,314		123,739		43,575		35.2	%	500,555		333,891		166,664		49.9	%
Europe	121,387		80,871		40,516		50.1	%	323,766		227,542		96,224		42.3	%
Total	$	539,581	$	391,566	$	148,015	37.8	%	$	1,526,863	$	1,044,999	$	481,864	46.1	%

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Asia-Pacific 

Net sales increased $63.9 million, or 34.2%, in the third quarter of 2021 compared to the third quarter of 2020 and included favorable changes in foreign exchange rates of $2.9 million. The increase in net sales was primarily due to higher volume across all businesses within the Electronics, Automotive, and Industrial segments compared to the third quarter of 2020.

Net sales increased $219.0 million, or 45.3%, in the first nine months of 2021 compared to the first nine months of 2020 and included favorable changes in foreign exchange rates of $12.0 million. The increase in net sales was primarily due to higher volume across all businesses across all segments compared to the first nine months of 2020 that had production disruptions due to the impact of COVID-19.

Americas

Net sales increased $43.6 million, or 35.2%, in the third quarter of 2021 compared to the third quarter of 2020 and included favorable changes in foreign exchange rates of $0.2 million. The increase in net sales was primarily due to incremental sales from the Hartland acquisition included in the Industrial segment, higher volume from the electronics products business within the Electronics segment and commercial vehicle products business within the Automotive segment, and higher volume across all businesses within the Industrial segment compared to the third quarter of 2020.

Net sales increased $166.7 million, or 49.9%, in the first nine months of 2021 compared to first nine months of 2020 and included favorable changes in foreign exchange rates of $0.6 million. The increase in net sales was primarily due to incremental sales from the Hartland acquisition, higher volume across all businesses within the Electronics and Automotive segments compared to the first nine months of 2020 that had production disruptions due to the impact of COVID-19.

Europe 

Net sales increased $40.5 million, or 50.1%, in the third quarter of 2021 compared to the third quarter of 2020 and included favorable changes in foreign exchange rates of $1.1 million. The increase in net sales was primarily due to increased volume across all businesses within the Electronics segment and commercial vehicle products business within the Automotive segment, and higher volume cross all businesses within the Industrial segment compared to the third quarter of 2020.

Net sales increased $96.2 million, or 42.3%, in the first nine months of 2021 compared to the first nine months of 2020 and included favorable changes in foreign exchange rates of $17.5 million. The increase in net sales was primarily due to higher volume across all businesses within the Electronics and Automotive segments compared to the first nine months of 2020 that had production disruptions due to the impact of COVID-19.

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 $690.7 million as of September 25, 2021, a decrease of $3.2 million as compared to December 26, 2020. As of September 25, 2021, $337.2 million of the Company's $690.7 million cash and cash equivalents was held by U.S. subsidiaries.

Revolving Credit Facility

On April 3, 2020, the Company amended its Credit Agreement to effect certain changes, including, among others: (i) eliminating the $200.0 million unsecured term loan credit facility, the remaining outstanding balance ($140.0 million) 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 Company made payments of $30.0 million on the amended revolving credit

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facility during the nine months ended September 25, 2021. The balance under the facility was $100.0 million as of September 25, 2021.

Outstanding borrowings under the amended Credit Agreement bears interest, at the Company’s option, at either LIBOR, fixed for interest periods of one, two, three or six-month periods, plus 1.25% to 2.00%, or at the bank’s Base Rate, as defined, plus 0.25% to 1.00%, based upon the Company’s Consolidated Leverage Ratio, as defined. The Company is also required to pay commitment fees on unused portions of the credit agreement ranging from 0.125% to 0.20%, based on the Consolidated Leverage Ratio, as defined in the agreement. The amended Credit Agreement includes 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 1.33% at September 25, 2021.

As of September 25, 2021, the Company had no amount outstanding in letters of credit and had available $600.0 million of borrowing capacity under the Revolving Credit Facility. At September 25, 2021, the Company was in compliance with all covenants under the Credit Agreement.

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 September 25, 2021 and currently expects to remain in compliance based on management’s estimates of operating and financial results for 2021. As of September 25, 2021, 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.

Acquisitions

On January 28, 2021, the Company acquired Hartland Controls ("Hartland"), a manufacturer and leading supplier of electrical components used primarily in heating, ventilation, air conditioning (HVAC) and other industrial and control systems applications with annualized sales of approximately $70 million. The purchase price for Hartland was $112.3 million and the operations of Hartland Controls are included in the Industrial segment. The net cash payment of $109.9 million for this acquisition was funded by the Company's cash on hand.

Dividends

During the third quarter of 2021 the Company paid quarterly dividends of $13.1 million to the shareholders. On October 26, 2021, the Board of Directors of the Company declared a quarterly cash dividend of $0.53 per share, payable on December 2nd, 2021 to stockholders of record as of November 18, 2021.

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U.K. pension plan

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 directly pay and administer pension payments to certain of the Company’s U.K. pension plan participants, or their designated beneficiaries. The purchase of this group annuity contract will reduce the Company’s outstanding pension benefit obligation by approximately $55 million, representing approximately 37% 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 currently estimated between $18 million and $22 million in the fourth quarter of 2021, reflecting the accelerated recognition of unamortized actuarial losses in the plan. The actual amount and timing of the settlement charge could differ from this estimate due to final data and plan wind-up expenses. Due to the signing of the group annuity contract being a significant change in the U.K. pension plan, the liabilities of the plan were remeasured as of April 6, 2020 resulting in an increase of $13.4 million (£10.9 million) to both the net pension liability and unamortized actuarial loss within other comprehensive income (loss) during the second quarter of 2020. Additionally, the Company made a cash contribution of $10.4 million (£8.4 million) under this agreement during the second quarter of 2020.

Cash Flow Overview

	First Nine Months
(in thousands)	2021		2020
Net cash provided by operating activities	$	240,664	$	164,256
Net cash used in investing activities	(165,611)		(41,388)
Net cash used in financing activities	(60,877)		(18,376)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(5,832)		6,259
Increase in cash, cash equivalents, and restricted cash	8,344		110,751
Cash, cash equivalents, and restricted cash at beginning of period	687,525		531,139
Cash, cash equivalents, and restricted cash at end of period	$	695,869	$	641,890

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 $240.7 million for the nine months ended September 25, 2021 as compared to $164.3 million for the nine months ended September 26, 2020. The increase in net cash provided by operating activities was primarily due to higher cash earnings partially offset by increases in working capital resulting from higher sales growth. 

Cash Flow from Investing Activities

Net cash used in investing activities was $165.6 million for the nine months ended September 25, 2021 compared to $41.4 million during the nine months ended September 26, 2020. Net cash paid for acquisitions was $110.6 million for the nine months ended September 25, 2021. Capital expenditures were $57.5 million, representing an increase of $16.0 million compared to 2020. During the nine months ended September 25, 2021, the Company received proceeds of $2.6 million from the sale of a property within the Electronics segment.

Cash Flow from Financing Activities

Net cash used in financing activities was $60.9 million for the nine months ended September 25, 2021 compared to $18.4 million for the nine months ended September 26, 2020. The Company made payments of $30.0 million on the amended revolving credit facility during the nine months ended September 25, 2021. On April 3, 2020, the Company amended the Credit Agreement to eliminate the $200.0 million unsecured term loan credit facility, with the remaining outstanding balance of $140.0 million repaid in full on April 3, 2020 through a new borrowing of $140.0 million under the amended revolving credit facility. During the nine months ended September 26, 2020, the Company borrowed $100.0 million from its revolving credit

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facility to preserve financial flexibility and enhance liquidity, given the increasing levels of uncertainty related to COVID-19. The Company also made principal payments of $5.0 million on the term loan during the nine months ended September 26, 2020. For the nine months ended September 26, 2020, the Company repurchased 175,110 shares of its common stock totaling $22.9 million. Additionally, the Company paid dividends $36.6 million and $35.1 million in the nine months ended September 25, 2021 and September 26, 2020, respectively.

Share Repurchase 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"). On April 29, 2020, the Company announced that the 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. On April 28, 2021, the Company announced that the Board of Directors authorized a new three year program to repurchase up to $300.0 million in the aggregate of shares of the Company’s common stock for the period May 1, 2021 to April 30, 2024 to replace its previous 2020 program.

The Company did not repurchase any shares of its common stock for the nine months ended September 25, 2021. During the nine months ended September 26, 2020, the Company repurchased 175,110 shares of its common stock totaling $22.9 million.

Off-Balance Sheet Arrangements

As of September 25, 2021, 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 26, 2020. During the nine months ended September 25, 2021, 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 26, 2020. During the nine months ended September 25, 2021, 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.

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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 September 25, 2021. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the quarter ended September 25, 2021, 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 September 25, 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS 

None.

ITEM 1A. RISK FACTORS 

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 26, 2020.

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

Recent Sales of Unregistered Securities

None.

Purchases of Equity Securities

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"). On April 29, 2020, the Company announced that the 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. On April, 28, 2021, the Company announced that the Board of Directors authorized a new three year program to repurchase up to $300.0 million in the aggregate of shares of the Company’s common stock for the period May 1, 2021 to April 30, 2024 to replace its previous 2020 program.

The Company did not repurchase any shares of its common stock for the three months ended September 25, 2021 and September 26, 2020.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES 

None.

ITEM 4. MINE SAFETY DISCLOSURES 

None.

ITEM 5. OTHER INFORMATION 

None.

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ITEM 6. EXHIBITS

Exhibit	Description
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 September 25, 2021 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 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 September 25, 2021, formatted in Inline XBRL.
*	Filed herewith.
**	Furnished herewith.

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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 September 25, 2021, 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: October 27, 2021	By:	/s/ Jeffrey G. Gorski
		Jeffrey G. Gorski
	Vice President and Chief Accounting Officer

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EX-31.1

EXHIBIT 31.1

SECTION 302 CERTIFICATION

I, David W. Heinzmann, certify that:

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

2Based 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;

3Based 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;

4The 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

5The 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: October 27, 2021
	/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:

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

2Based 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;

3Based 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;

4The 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

5The 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: October 27, 2021
	/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 September 25, 2021 (“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: October 27, 2021	Dated: October 27, 2021

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Cover Page - shares	9 Months Ended
	Sep. 25, 2021	Oct. 22, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 25, 2021
Document Transition Report	false
Entity File Number	0-20388
Entity Registrant Name	LITTELFUSE INC /DE
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		24,632,027
Entity Central Index Key	0000889331
Current Fiscal Year End Date	--01-01
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 25, 2021	Dec. 26, 2020
Current assets:
Cash and cash equivalents	$ 690,682	$ 687,525
Short-term investments	28	54
Trade receivables, less allowances of $53,006 and $45,237 at September 25, 2021 and December 26, 2020, respectively	325,739	232,760
Inventories	357,024	258,002
Prepaid income taxes and income taxes receivable	2,695	3,029
Prepaid expenses and other current assets	59,768	35,939
Total current assets	1,435,936	1,217,309
Net property, plant, and equipment	364,329	344,178
Intangible assets, net of amortization	295,766	291,887
Goodwill	847,205	816,812
Investments	39,885	30,547
Deferred income taxes	9,575	11,224
Right of use lease assets, net	24,375	17,615
Other assets	21,447	18,021
Total assets	3,038,518	2,747,593
Current liabilities:
Accounts payable	221,889	145,984
Accrued liabilities	139,670	110,478
Accrued income taxes	32,462	19,186
Current portion of long-term debt	27,619	0
Total current liabilities	421,640	275,648
Long-term debt, less current portion	620,112	687,034
Deferred income taxes	50,365	50,134
Accrued post-retirement benefits	42,026	45,802
Non-current operating lease liabilities	17,440	12,950
Other long-term liabilities	65,537	67,252
Shareholders’ equity:
Common stock, par value $0.01 per share: 34,000,000 shares authorized; shares issued, September 25, 2021–26,292,015; December 26, 2020–26,131,544	260	259
Additional paid-in capital	935,351	907,858
Treasury stock, at cost: 1,664,571 and 1,644,283 shares, respectively	(248,078)	(242,366)
Accumulated other comprehensive loss	(95,528)	(91,157)
Retained earnings	1,229,262	1,034,048
Littelfuse, Inc. shareholders’ equity	1,821,267	1,608,642
Non-controlling interest	131	131
Total equity	1,821,398	1,608,773
Total liabilities and equity	$ 3,038,518	$ 2,747,593

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands	Sep. 25, 2021	Dec. 26, 2020
Statement of Financial Position [Abstract]
Allowance for trade receivables	$ 53,006	$ 45,237
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)	26,292,015	26,131,544
Treasury stock (in shares)	1,664,571	1,644,283

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CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2021	Sep. 26, 2020	Sep. 25, 2021	Sep. 26, 2020
Income Statement [Abstract]
Net sales	$ 539,581	$ 391,566	$ 1,526,863	$ 1,044,999
Cost of sales	325,009	252,735	954,429	681,910
Gross profit	214,572	138,831	572,434	363,089
Selling, general, and administrative expenses	67,468	49,929	199,071	154,328
Research and development expenses	15,779	12,963	46,912	40,587
Amortization of intangibles	10,446	10,104	31,608	29,912
Restructuring, impairment, and other charges	772	1,277	1,998	40,904
Total operating expenses	94,465	74,273	279,589	265,731
Operating income	120,107	64,558	292,845	97,358
Interest expense	4,602	4,988	13,901	16,261
Foreign exchange loss (gain)	3,154	(6,174)	8,315	(9,600)
Other income, net	(1,240)	(1,682)	(10,867)	(1,643)
Income before income taxes	113,591	67,426	281,496	92,340
Income taxes	21,537	12,070	49,634	21,331
Net income	$ 92,054	$ 55,356	$ 231,862	$ 71,009
Earnings per share:
Basic (in dollars per share)	$ 3.74	$ 2.27	$ 9.43	$ 2.92
Diluted (in dollars per share)	$ 3.69	$ 2.25	$ 9.31	$ 2.89
Weighted-average shares and equivalent shares outstanding:
Basic (in shares)	24,622	24,357	24,582	24,354
Diluted (in shares)	24,926	24,573	24,904	24,535

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2021	Sep. 26, 2020	Sep. 25, 2021	Sep. 26, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 92,054	$ 55,356	$ 231,862	$ 71,009
Other comprehensive income (loss):
Pension and postemployment adjustment, net of tax	487	563	1,270	(9,715)
Foreign currency translation adjustments	(5,441)	16,418	(5,641)	9,300
Comprehensive income	$ 87,100	$ 72,337	$ 227,491	$ 70,594

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 26, 2020 USD ($)	Sep. 25, 2021 USD ($)	Sep. 26, 2020 USD ($)
OPERATING ACTIVITIES
Net income	$ 55,356	$ 231,862	$ 71,009
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	14,200	41,441	41,953
Amortization of intangibles	10,104	31,608	29,912
Deferred revenue		(2,154)	(438)
Non-cash inventory charges		6,807	0
Impairment charges	0	0	36,078
Stock-based compensation		16,010	14,544
Gain on investments and other assets		(9,739)	(1,200)
Deferred income taxes		1,116	1,567
Other		11,735	(8,549)
Changes in operating assets and liabilities:
Trade receivables		(83,793)	(29,362)
Inventories		(71,232)	(1,611)
Accounts payable		53,945	6,661
Accrued liabilities and income taxes		23,294	(2,095)
Prepaid expenses and other assets		(10,236)	5,787
Net cash provided by operating activities		240,664	164,256
INVESTING ACTIVITIES
Acquisitions of businesses, net of cash acquired		(110,646)	0
Purchases of property, plant, and equipment		(57,526)	(41,536)
Net proceeds from sale of property, plant and equipment, and other		2,561	148
Net cash used in investing activities		(165,611)	(41,388)
FINANCING ACTIVITIES
Proceeds of revolving credit facility		0	240,000
Payments of revolving credit facility		(30,000)	(60,000)
Payments of term loan		0	(145,000)
Net proceeds related to stock-based award activities		5,771	6,437
Purchases of common stock		0	(22,927)
Debt issuance costs		0	(1,786)
Cash dividends paid		(36,648)	(35,100)
Net cash used in financing activities		(60,877)	(18,376)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		(5,832)	6,259
Increase in cash, cash equivalents, and restricted cash		8,344	110,751
Cash, cash equivalents, and restricted cash at beginning of period		687,525	531,139
Cash, cash equivalents, and restricted cash at end of period	641,890	695,869	641,890
Supplementary Cash Flow Information
Cash and cash equivalents	641,890	690,682	641,890
Restricted cash included in prepaid expenses and other current assets	0	3,483	0
Restricted cash included in other assets	0	1,704	0
Cash paid interest during the period	$ 6,400	14,830	17,228
Capital expenditures, not yet paid		$ 9,234	$ 6,267

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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. (Loss)	Retained Earnings	Non-controlling Interest
Balance at Dec. 28, 2019	$ 1,496,014	$ 256	$ 867,996	$ (216,447)	$ (106,823)	$ 950,901	$ 131
Increase (Decrease) in Stockholders' Equity
Net income	24,644					24,644
Other comprehensive loss, 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	(11,725)					(11,725)
Balance at Mar. 28, 2020	1,476,948	256	874,360	(239,817)	(121,802)	963,820	131
Balance at Dec. 28, 2019	1,496,014	256	867,996	(216,447)	(106,823)	950,901	131
Increase (Decrease) in Stockholders' Equity
Net income	71,009
Other comprehensive loss, net of tax	(415)
Repurchases of common stock	(22,900)
Balance at Sep. 26, 2020	1,529,562	258	891,924	(242,323)	(107,238)	986,810	131
Balance at Mar. 28, 2020	1,476,948	256	874,360	(239,817)	(121,802)	963,820	131
Increase (Decrease) in Stockholders' Equity
Net income	(8,991)					(8,991)
Other comprehensive loss, net of tax	(2,417)				(2,417)
Stock-based compensation	7,887		7,887
Withheld shares on restricted share units for withholding taxes	(2,375)			(2,375)
Stock options exercised	3,060	1	3,059
Cash dividends paid	(11,678)					(11,678)
Balance at Jun. 27, 2020	1,462,434	257	885,306	(242,192)	(124,219)	943,151	131
Increase (Decrease) in Stockholders' Equity
Net income	55,356					55,356
Other comprehensive loss, net of tax	16,981				16,981
Stock-based compensation	3,692		3,692
Withheld shares on restricted share units for withholding taxes	(131)			(131)
Stock options exercised	2,927	1	2,926
Cash dividends paid	(11,697)					(11,697)
Balance at Sep. 26, 2020	1,529,562	258	891,924	(242,323)	(107,238)	986,810	131
Balance at Dec. 26, 2020	1,608,773	259	907,858	(242,366)	(91,157)	1,034,048	131
Increase (Decrease) in Stockholders' Equity
Net income	57,713					57,713
Other comprehensive loss, net of tax	(4,871)				(4,871)
Stock-based compensation	3,395		3,395
Stock options exercised	7,509		7,509
Cash dividends paid	(11,782)					(11,782)
Balance at Mar. 27, 2021	1,660,737	259	918,762	(242,366)	(96,028)	1,079,979	131
Balance at Dec. 26, 2020	1,608,773	259	907,858	(242,366)	(91,157)	1,034,048	131
Increase (Decrease) in Stockholders' Equity
Net income	231,862
Other comprehensive loss, net of tax	(4,371)
Balance at Sep. 25, 2021	1,821,398	260	935,351	(248,078)	(95,528)	1,229,262	131
Balance at Mar. 27, 2021	1,660,737	259	918,762	(242,366)	(96,028)	1,079,979	131
Increase (Decrease) in Stockholders' Equity
Net income	82,095					82,095
Other comprehensive loss, net of tax	5,454				5,454
Stock-based compensation	8,843		8,843
Withheld shares on restricted share units for withholding taxes	(5,597)			(5,597)
Stock options exercised	2,502	1	2,501
Cash dividends paid	(11,814)					(11,814)
Balance at Jun. 26, 2021	1,742,220	260	930,106	(247,963)	(90,574)	1,150,260	131
Increase (Decrease) in Stockholders' Equity
Net income	92,054					92,054
Other comprehensive loss, net of tax	(4,954)				(4,954)
Stock-based compensation	3,772		3,772
Withheld shares on restricted share units for withholding taxes	(115)			(115)
Stock options exercised	1,473		1,473
Cash dividends paid	(13,052)					(13,052)
Balance at Sep. 25, 2021	$ 1,821,398	$ 260	$ 935,351	$ (248,078)	$ (95,528)	$ 1,229,262	$ 131

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CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares	3 Months Ended
	Sep. 25, 2021	Jun. 26, 2021	Mar. 27, 2021	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020
Statement of Stockholders' Equity [Abstract]
Cash dividends paid, per share (in dollars per share)	$ 0.53	$ 0.48	$ 0.48	$ 0.48	$ 0.48	$ 0.48

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Summary of Significant Accounting Policies and Other Information

9 Months Ended

Sep. 25, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies and Other Information

Summary of Significant Accounting Policies and Other Information

Nature of Operations 

Founded in 1927, Littelfuse is an industrial technology manufacturing company empowering a sustainable, connected, and safer world. Across more than 15 countries, and with 12,000 global associates, we partner with customers to design and deliver innovative, reliable solutions. Serving over 100,000 end customers, our products are found in a variety of industrial, transportation and electronics end markets – everywhere, every day.

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 26, 2020 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 and nine months ended September 25, 2021 and September 26, 2020:

	Three Months Ended September 25, 2021								Nine Months Ended September 25, 2021
(in thousands)	Electronics Segment		Automotive Segment		Industrial Segment		Total		Electronics Segment		Automotive Segment		Industrial Segment		Total
Electronics – Passive Products and Sensors	$	171,299	$	—	$	—	$	171,299	$	459,012	$	—	$	—	$	459,012
Electronics – Semiconductor	175,941		—		—		175,941		500,110		—		—		500,110
Passenger Car Products	—		64,630		—		64,630		—		200,579		—		200,579
Automotive Sensors	—		24,112		—		24,112		—		79,081		—		79,081
Commercial Vehicle Products	—		35,673		—		35,673		—		106,602		—		106,602
Industrial Products	—		—		67,926		67,926		—		—		181,479		181,479
Total	$	347,240	$	124,415	$	67,926	$	539,581	$	959,122	$	386,262	$	181,479	$	1,526,863

	Three Months Ended September 26, 2020								Nine Months Ended September 26, 2020
(in thousands)	Electronics Segment		Automotive Segment		Industrial Segment		Total		Electronics Segment		Automotive Segment		Industrial Segment		Total
Electronics – Passive Products and Sensors	$	108,253	$	—	$	—	$	108,253	$	285,697	$	—	$	—	$	285,697
Electronics – Semiconductor	147,096		—		—		147,096		407,112		—		—		407,112
Passenger Car Products	—		52,691		—		52,691		—		135,645		—		135,645
Automotive Sensors	—		26,093		—		26,093		—		64,166		—		64,166
Commercial Vehicle Products	—		25,940		—		25,940		—		71,682		—		71,682
Industrial Products	—		—		31,493		31,493		—		—		80,697		80,697
Total	$	255,349	$	104,724	$	31,493	$	391,566	$	692,809	$	271,493	$	80,697	$	1,044,999

See Note 15, 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.

Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash at September 25, 2021 and December 26, 2020 reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statement of Cash Flows.

(in thousands)	September 25, 2021		December 26, 2020
Cash and cash equivalents	$	690,682	$	687,525
Restricted cash included in prepaid expenses and other current assets	3,483		—
Restricted cash included in other assets	1,704		$	—
Total cash, cash equivalents and restricted cash	$	695,869	$	687,525

Recently Adopted Accounting Standards

In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update ("ASU") No. 2019-12, "Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes" as part of its initiative to reduce complexity in the accounting standards. The guidance is effective for fiscal years beginning after December 15, 2020 with early adoption permitted. The adoption of ASU 2019-12 did not have a material impact on our Condensed Consolidated Financial Statements.

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Acquisitions

9 Months Ended

Sep. 25, 2021

Business Combination and Asset Acquisition [Abstract]

Acquisitions

Acquisitions

The Company accounts for acquisitions using the acquisition method in accordance with ASC 805, “Business Combinations,” in which assets acquired and liabilities assumed are recorded at fair value as of the date of acquisition. The operating results of the acquired business are included in the Company’s Consolidated Financial Statements from the date of the acquisition.

Hartland Controls

On January 28, 2021, the Company acquired Hartland Controls ("Hartland"), a manufacturer and leading supplier of electrical components used primarily in heating, ventilation, air conditioning (HVAC) and other industrial and control systems applications with annualized sales of approximately $70 million. The purchase price for Hartland was $112.3 million and the operations of Hartland are included in the Industrial segment.

The total purchase consideration of $109.9 million, net of cash, cash equivalents, and restricted cash has been allocated, on a preliminary basis, to assets acquired and liabilities assumed, as of the completion of the acquisition, based on preliminary estimated fair values. The purchase consideration is subject to change for the final working capital adjustments. As of September 25, 2021, the Company had restricted cash of $1.7 million in an escrow account for general indemnification purposes.

The following table summarizes the final purchase price allocation of the fair value of assets acquired and liabilities assumed in the Hartland acquisition:

(in thousands)	Purchase Price Allocation
Total purchase consideration:
Cash, net of cash acquired, and restricted cash	$	109,852
Allocation of consideration to assets acquired and liabilities assumed:
Trade receivables, net	13,027
Inventories	35,808
Other current assets	2,224
Property, plant, and equipment	6,296
Intangible assets	39,660
Goodwill	40,442
Other non-current assets	3,787
Current liabilities	(24,846)
Other non-current liabilities	(6,546)
	$	109,852

All Hartland goodwill, other assets and liabilities were recorded in the Industrial segment and are primarily reflected in the Americas and Asia-Pacific geographic areas. The goodwill resulting from this acquisition consists largely of the Company’s expected future product sales and synergies from combining Hartland’s products and technology with the Company’s existing industrial products portfolio. Goodwill resulting from the Hartland acquisition is not expected to be deductible for tax purposes.

Included in the Company’s Condensed Consolidated Statements of Net Income for the three and nine months ended September 25, 2021 are net sales of $29.3 million and $72.3 million respectively, and an income (loss) before income taxes of $1.2 million and $(1.3) million, respectively since the January 28, 2021 acquisition of Hartland.

The Company recorded a $6.8 million step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation. The step-up was amortized as a non-cash charge to cost of goods sold during the first and second quarters of 2021, as the acquired inventory was sold, and is reflected as other non-segment costs. During the nine months ended September 25, 2021, the Company recognized a charge of $6.8 million for the amortization of this fair value inventory step-up.

During the nine months ended September 25, 2021, the Company incurred approximately $0.8 million of legal and professional fees related to this acquisition recognized as Selling, general, and administrative expenses. These costs were reflected as other non-segment costs.

Pro Forma Results

The following table summarizes, on an unaudited pro forma basis, the combined results of operations of the Company and Hartland as though the acquisition had occurred as of December 29, 2019. The pro forma amounts presented are not necessarily indicative of either the actual consolidated results had the Hartland acquisition occurred as of December 29, 2019 or of future consolidated operating results.

	For the Three Months Ended				For the Nine Months Ended
(in thousands, except per share amounts)	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
Net sales	$	539,581	$	414,100	$	1,533,901	$	1,101,430
Income before income taxes	113,591		69,478		289,530		90,516
Net income	92,054		56,961		238,197		69,526
Net income per share — basic	3.74		2.34		9.69		2.85
Net income per share — diluted	3.69		2.32		9.56		2.83

Pro forma results presented above primarily reflect the following adjustments:

	For the Three Months Ended				For the Nine Months Ended
(in thousands)	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
Amortization(a)	$	—	$	(838)	$	(280)	$	(2,514)
Depreciation	—		44		7		139
Transaction costs(b)	—		—		835		(835)
Amortization of inventory step-up(c)	—		—		6,808		(6,796)
Income tax (expense) benefit of above items	—		167		(1,555)		2,107

(a)The amortization adjustment for the three and nine months ended September 26, 2020 primarily reflects incremental amortization resulting from the measurement of intangibles at their fair values.

(b)The transaction cost adjustments reflect the reversal of certain legal and professional fees from the nine months ended September 25, 2021 and recognition of those fees during the nine months ended September 26, 2020.

(c)The amortization of inventory step-up adjustment reflects the reversal of the amount recognized during the nine months ended September 25, 2021 and the recognition of the amortization during the nine months ended September 26, 2020. The inventory step-up was amortized over four months as the inventory was sold.

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Inventories

9 Months Ended

Sep. 25, 2021

Inventory Disclosure [Abstract]

Inventories

Inventories

The components of inventories at September 25, 2021 and December 26, 2020 are as follows:

(in thousands)	September 25, 2021		December 26, 2020
Raw materials	$	121,282	$	85,394
Work in process	109,347		92,783
Finished goods	161,567		114,641
Inventory Reserves	(35,172)		(34,816)
Total	$	357,024	$	258,002

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Property, Plant, and Equipment

9 Months Ended

Sep. 25, 2021

Property, Plant and Equipment [Abstract]

Property, Plant, and Equipment

Property, Plant, and Equipment

The components of net property, plant, and equipment at September 25, 2021 and December 26, 2020 are as follows:

(in thousands)	September 25, 2021		December 26, 2020
Land	$	22,887	$	22,851
Building	129,135		123,497
Equipment	725,971		678,220
Accumulated depreciation and amortization	(513,664)		(480,390)
Total	$	364,329	$	344,178

The Company recorded depreciation expense of $14.2 million for both the three months ended September 25, 2021 and September 26, 2020, and $41.4 million and $42.0 million for the nine months ended September 25, 2021 and September 26, 2020, respectively.

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Goodwill and Other Intangible Assets

9 Months Ended

Sep. 25, 2021

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 nine months ended September 25, 2021 are as follows:

(in thousands)	Electronics		Automotive		Industrial		Total
Net book value of goodwill as of December 26, 2020
Gross goodwill as of December 26, 2020	$	676,325	$	138,354	$	47,551	$	862,230
Accumulated impairment losses as of December 26, 2020	—		(36,423)		(8,995)		(45,418)
Total	676,325		101,931		38,556		816,812
Changes during 2021:
Additions(a)	—		1,614		40,442		42,056
Currency translation	(9,530)		(2,165)		32		(11,663)
Net book value of goodwill as of September 25, 2021
Gross goodwill as of September 25, 2021	666,795		137,783		88,133		892,711
Accumulated impairment losses as of September 25, 2021	—		(36,403)		(9,103)		(45,506)
Total	$	666,795	$	101,380	$	79,030	$	847,205

(a) The additions primarily resulted from the acquisition of Hartland.

The Company tests its goodwill annually for impairment on the first day of its fiscal fourth quarter, 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. During the second quarter of 2020, the Company recorded a non-cash charge of $33.8 million to recognize the impairment of goodwill in the automotive sensors reporting unit within the Automotive segment. The goodwill impairment charge was determined using Level 3 inputs, including discounted cash flow analysis and comparable marketplace fair value data. As of September 25, 2021, the automotive sensors reporting unit had $9.5 million of remaining goodwill.

The components of other intangible assets as of September 25, 2021 and December 26, 2020 are as follows:

	As of September 25, 2021
(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Land use rights	$	10,354	$	2,230	$	8,124
Patents, licenses and software	142,606		99,834		42,772
Distribution network	43,601		40,306		3,295
Customer relationships, trademarks, and tradenames	399,655		158,080		241,575
Total	$	596,216	$	300,450	$	295,766

	As of December 26, 2020
(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Land use rights	$	10,280	$	2,007	$	8,273
Patents, licenses and software	137,210		92,868		44,342
Distribution network	43,910		38,980		4,930
Customer relationships, trademarks, and tradenames	372,064		137,722		234,342
Total	$	563,464	$	271,577	$	291,887

During the three months ended September 25, 2021 and September 26, 2020, the Company recorded amortization expense of $10.4 million and $10.1 million, respectively. During the nine months ended September 25, 2021 and September 26, 2020, the Company recorded amortization expense of $31.6 million and $29.9 million, respectively.

The Company recognized a $0.3 million non-cash impairment charge in the first quarter of 2020 on a certain patent triggered by the Company’s announcement to consolidate a manufacturing facility within the Industrial segment.

During the nine months ended September 25, 2021, the Company recorded additions to intangible assets of $39.7 million, related to the Hartland acquisition, the components of which were as follows:

(in thousands)	Weighted Average Useful Life	Amount
Patents, licenses and software	9.2	$	7,559
Customer relationships, trademarks, and tradenames	13.7	32,101
Total		$	39,660

Estimated annual amortization expense related to intangible assets with definite lives as of September 25, 2021 is as follows:

(in thousands)	Amount
2021	$	41,922
2022	40,761
2023	36,461
2024	33,038
2025	33,019
2026 and thereafter	142,173
Total	$	327,374

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Accrued Liabilities

9 Months Ended

Sep. 25, 2021

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued Liabilities

The components of accrued liabilities as of September 25, 2021 and December 26, 2020 are as follows:

(in thousands)	September 25, 2021		December 26, 2020
Employee-related liabilities	$	80,034	$	50,689
Operating lease liability	8,649		6,811
Other non-income taxes	5,352		2,126
Professional services	3,375		3,321
Restructuring liability	3,075		4,195
Interest	2,598		4,517
Deferred revenue	867		2,959
Customer liability	740		3,858
Other	34,980		32,002
Total	$	139,670	$	110,478

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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Restructuring, Impairment and Other Charges

9 Months Ended

Sep. 25, 2021

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 and nine months ended September 25, 2021 and September 26, 2020 as follows:

	Three months ended September 25, 2021								Nine months ended September 25, 2021
(in thousands)	Electronics		Automotive		Industrial		Total		Electronics		Automotive		Industrial		Total
Employee terminations	$	542	$	—	$	133	$	675	$	1,094	$	416	$	302	$	1,812
Other restructuring charges	—		97		—		97		—		186		—		186
Total restructuring charges	542		97		133		772		1,094		602		302		1,998
Total	$	542	$	97	$	133	$	772	$	1,094	$	602	$	302	$	1,998

	Three months ended September 26, 2020								Nine months ended September 26, 2020
(in thousands)	Electronics		Automotive		Industrial		Total		Electronics		Automotive		Industrial		Total
Employee terminations	$	388	$	162	$	648	$	1,198	$	2,125	$	770	$	1,719	$	4,614
Other restructuring charges	—		—		79		79		—		108		104		212
Total restructuring charges	388		162		727		1,277		2,125		878		1,823		4,826
Impairment	—		—		—		—		—		33,841		2,237		36,078
Total	$	388	$	162	$	727	$	1,277	$	2,125	$	34,719	$	4,060	$	40,904

2021

For the three and nine months ended September 25, 2021, the Company recorded total restructuring charges of $0.8 million and $2.0 million, primarily for employee termination costs. These charges are primarily related to the reorganization of certain manufacturing, selling and administrative functions within the Electronics and Automotive segments.

2020

For the three and nine months ended September 26, 2020, the Company recorded total restructuring charges of $1.3 million and $4.8 million, respectively, for employee termination costs and other restructuring charges. These charges are 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 $36.1 million of impairment charges for the nine months ended September 26, 2020, respectively, which included a $33.8 million goodwill impairment charge associated with the automotive sensors reporting unit within the Automotive segment in the second quarter of 2020 and $2.2 million related to the land and building associated with the Company’s previously announced consolidation of a manufacturing facility within the Industrial segment in the first quarter of 2020. The impairment charges of the land and building were included in selling, general, and administrative expenses. See Note 5, Goodwill and Other Intangible Assets for further discussion regarding the goodwill impairment charge.

The restructuring liability as of September 25, 2021 and December 26, 2020 is $3.1 million and $4.2 million, respectively. The restructuring liability is 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 the third quarter of 2022.

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Debt

9 Months Ended

Sep. 25, 2021

Debt Disclosure [Abstract]

Debt

Debt

The carrying amounts of debt at September 25, 2021 and December 26, 2020 are as follows:

(in thousands)	September 25, 2021		December 26, 2020
Revolving Credit Facility	$	100,000	$	130,000
Euro Senior Notes, Series A due 2023	137,173		142,679
Euro Senior Notes, Series B due 2028	111,380		115,850
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	(3,441)		(4,114)
Total debt	647,731		687,034
Less: Current maturities	(27,619)		—
Total long-term debt	$	620,112	$	687,034

Revolving Credit Facility

On April 3, 2020, the Company amended its Credit Agreement to effect certain changes, including, among others: (i) eliminating the $200.0 million unsecured term loan credit facility, the remaining outstanding balance ($140.0 million) 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 Company made payments of $30.0 million on the amended revolving credit facility during the nine months ended September 25, 2021. The balance under the facility was $100.0 million as of September 25, 2021.

Outstanding borrowings under the amended Credit Agreement bears interest, at the Company’s option, at either LIBOR, fixed for interest periods of one, two, three or six-month periods, plus 1.25% to 2.00%, or at the bank’s Base Rate, as defined, plus 0.25% to 1.00%, based upon the Company’s Consolidated Leverage Ratio, as defined. The Company is also required to pay commitment fees on unused portions of the credit agreement ranging from 0.125% to 0.20%, based on the Consolidated Leverage Ratio, as defined in the agreement. The amended Credit Agreement includes 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 1.33% on September 25, 2021.

As of September 25, 2021, the Company had no amount outstanding in letters of credit and had available $600.0 million of borrowing capacity under the Revolving Credit Facility. As of of September 25, 2021, the Company was in compliance with all covenants under the Credit Agreement.

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 September 25, 2021, 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 $6.1 million and $6.4 million for the three months ended September 25, 2021 and September 26, 2020, respectively, and $14.8 million and $17.2 million for the nine months ended September 25, 2021 and September 26, 2020, respectively.

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Fair Value of Assets and Liabilities

9 Months Ended

Sep. 25, 2021

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.

Other Investments

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 nine months ended September 25, 2021, the Company impaired the remaining book value of these investments and recorded an impairment charge of $0.5 million and during the three and nine months ended September 26, 2020, the Company recorded impairment charges of $0.1 million in Other income, net in the Condensed Consolidated Statements of Net Income. As of December 26, 2020, the balance of these investments was $0.5 million. The fair value of these investments is measured on a nonrecurring basis using Level 3 inputs under the fair value hierarchy.

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 September 25, 2021 to the Company’s valuation techniques used to measure asset and liability fair values on a recurring basis. As of September 25, 2021 and December 26, 2020, 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 September 25, 2021:

	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	$	15,970	$	—	$	—	$	15,970
Investments in equity securities	27,358		—		—		27,358
Mutual funds	14,711		—		—		14,711
Total	$	58,039	$	—	$	—	$	58,039

The following table presents assets measured at fair value by classification within the fair value hierarchy as of December 26, 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	$	73,461	$	—	$	—	$	73,461
Investments in equity securities	19,186		—		—		19,186
Mutual funds	13,249		—		—		13,249
Total	$	105,896	$	—	$	—	$	105,896

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 credit facilities’ fair values approximate book value at September 25, 2021 and December 26, 2020, 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 September 25, 2021 and December 26, 2020 were as follows:

	September 25, 2021				December 26, 2020
(in thousands)	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Euro Senior Notes, Series A due 2023	$	137,173	$	138,825	$	142,679	$	144,323
Euro Senior Notes, Series B due 2028	111,380		116,425		115,850		123,588
USD Senior Notes, Series A due 2022	25,000		25,167		25,000		25,437
USD Senior Notes, Series B due 2027	100,000		106,585		100,000		109,552
USD Senior Notes, Series A due 2025	50,000		52,567		50,000		53,474
USD Senior Notes, Series B due 2030	125,000		133,376		125,000		138,036

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 during the first quarter of 2020. See Note 7, Restructuring, Impairment, and Other Charges, for further discussion. The fair value of the land and building was valued using a real estate appraisal and classified as a Level 3 input under the fair value hierarchy.

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Benefit Plans

9 Months Ended

Sep. 25, 2021

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 income, net in the Condensed Consolidated Statements of Net Income. The components of net periodic benefit cost for the three and nine months ended September 25, 2021 and September 26, 2020 were as follows: 

	For the Three Months Ended				For the Nine Months Ended
(in thousands)	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
Components of net periodic benefit cost:
Service cost	$	684	$	615	$	2,086	$	1,825
Interest cost	434		511		1,317		1,655
Expected return on plan assets	(361)		(422)		(1,099)		(1,551)
Amortization of prior service and net actuarial loss	327		279		992		688
Net periodic benefit cost	$	1,084	$	983	$	3,296	$	2,617

The Company expects to make approximately $2.2 million of contributions to the plans and pay $3.8 million of benefits directly in 2021.

The Company also sponsors certain post-employment plans in foreign countries and other statutory benefit plans. The Company recorded expense of $0.6 million and $0.5 million for the three months ended September 25, 2021 and September 26, 2020, respectively, and $1.6 million and $1.5 million expense for the nine months ended September 25, 2021 and September 26, 2020, respectively, in Cost of Sales and Other income, net within the Condensed Consolidated Statements of Net Income. For the three and nine months ended September 25, 2021, the pre-tax amounts recognized in other comprehensive income (loss) as components of net periodic benefit costs for these plans were $0.2 million and $0.5 million, respectively. For the three and nine months ended September 26, 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 and $0.5 million, respectively.

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 directly pay and administer pension payments to certain of the Company’s U.K. pension plan participants, or their designated beneficiaries. The purchase of this group annuity contract will reduce the Company’s outstanding pension benefit obligation by approximately $55 million, representing approximately 37% 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 currently estimated between $18 million and $22 million in the fourth quarter of 2021, reflecting the accelerated recognition of unamortized actuarial losses in the plan. The actual amount and timing of the settlement charge could differ from this estimate due to final data and plan wind-up expenses. Due to the signing of the group annuity contract being a significant change in the U.K. pension plan, the liabilities of the plan were remeasured as of April 6, 2020 resulting in an increase of $13.4 million (£10.9 million) to both the net pension liability and unamortized actuarial loss within other comprehensive income (loss) during the second quarter of 2020. Additionally, the Company made a cash contribution of $10.4 million (£8.4 million) under this agreement during the second quarter of 2020.

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Other Comprehensive (Loss) Income

9 Months Ended

Sep. 25, 2021

Equity [Abstract]

Other Comprehensive (Loss) Income

Other Comprehensive (Loss) Income

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

(in thousands)	Three Months Ended September 25, 2021						Three Months Ended September 26, 2020
	Pre-tax		Tax		Net of Tax		Pre-tax		Tax		Net of Tax
Defined benefit pension plan and other adjustments	$	601	$	114	$	487	$	273	$	(290)	$	563
Foreign currency translation adjustments	(5,441)		—		(5,441)		16,418		—		16,418
Total change in other comprehensive (loss) income	$	(4,840)	$	114	$	(4,954)	$	16,691	$	(290)	$	16,981
(in thousands)	Nine Months Ended September 25, 2021						Nine Months Ended September 26, 2020
	Pre-tax		Tax		Net of Tax		Pre-tax		Tax		Net of Tax
Defined benefit pension plan adjustments	$	1,479	$	209	$	1,270	(12,270)		(2,555)		$	(9,715)
Foreign currency translation adjustments	(5,641)		—		(5,641)		$	9,300	$	—	$	9,300
Total change in other comprehensive (loss) income	$	(4,162)	$	209	$	(4,371)	$	(2,970)	$	(2,555)	$	(415)

Due to the signing of the group annuity contract being a significant change in the U.K. pension plan, the liabilities of the plan were remeasured as of April 6, 2020 resulting in an increase of $13.4 million to unamortized actuarial loss within other comprehensive income (loss). See Note 10, Benefit Plans for further discussion.

The following tables set forth the changes in accumulated other comprehensive (loss) by component for the nine months ended September 25, 2021 and September 26, 2020:

(in thousands)	Defined benefit pension plan and other adjustments		Foreign currency translation adjustment		Accumulated other comprehensive (loss)
Balance at December 26, 2020	$	(34,141)	$	(57,016)	$	(91,157)
Activity in the period	1,270		(5,641)		(4,371)
Balance at September 25, 2021	$	(32,871)	$	(62,657)	$	(95,528)

(in thousands)	Defined benefit pension plan and other adjustments		Foreign currency translation adjustment		Accumulated other comprehensive (loss)
Balance at December 28, 2019	$	(18,046)	$	(88,777)	$	(106,823)
Activity in the period	(9,715)		9,300		(415)
Balance at September 26, 2020	$	(27,761)	$	(79,477)	$	(107,238)

Amounts reclassified from accumulated other comprehensive (loss) to earnings for the three and nine months ended September 25, 2021 and September 26, 2020 were as follows:

	Three Months Ended				Nine Months Ended
(in thousands)	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
Pension and Postemployment plans:
Amortization of prior service and net actuarial loss	$	501	$	452	$	1,514	$	1,226

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

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Income Taxes

9 Months Ended

Sep. 25, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective tax rate for the three and nine months ended September 25, 2021 was 19.0% and 17.6%, respectively, compared to the effective tax rate for the three and nine months ended September 26, 2020 of 17.9% and 23.1%, respectively. The effective tax rate for the third quarter of 2021 is higher than the effective tax rate for the comparable 2020 period, primarily due to a reduction during the third quarter of 2020 in the estimated 2020 annual effective tax rate, the impact of which was recorded during the third quarter of 2020.

The effective tax rate for the first nine months of 2021 is lower than the effective tax rate for the comparable 2020 period, primarily due to an increase in the forecasted income earned in lower tax jurisdictions in 2021 as compared to 2020, as well as the impact of the goodwill impairment charge of $33.8 million recorded in the second quarter of 2020, the substantial majority of which did not result in a tax benefit in the annual estimated effective tax rate. The effective tax rate for the 2021 period is lower than the applicable U.S. statutory tax rate primarily due to income earned in lower tax jurisdictions.

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Earnings Per Share

9 Months Ended

Sep. 25, 2021

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				Nine Months Ended
(in thousands, except per share amounts)	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
Numerator:
Net income as reported	$	92,054	$	55,356	$	231,862	$	71,009
Denominator:
Weighted average shares outstanding
Basic	24,622		24,357		24,582		24,354
Effect of dilutive securities	304		216		322		181
Diluted	24,926		24,573		24,904		24,535
Earnings Per Share:
Basic earnings per share	$	3.74	$	2.27	$	9.43	$	2.92
Diluted earnings per share	$	3.69	$	2.25	$	9.31	$	2.89

Potential shares of common stock relating to stock options and restricted share units excluded from the earnings per share calculation because their effect would be anti-dilutive were 57,936 and 290,262 for the three months ended September 25, 2021 and September 26, 2020, respectively, and 32,773 and 194,857 for the nine months ended September 25, 2021 and September 26, 2020, respectively.

Share Repurchase 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"). On April 29, 2020, the Company announced that the 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. On April 28, 2021, the Company announced that the Board of Directors authorized a new three year program to repurchase up to $300.0 million in the aggregate of shares of the Company’s common stock for the period May 1, 2021 to April 30, 2024 to replace its previous 2020 program.

The Company did not repurchase any shares of its common stock for the three and nine months ended September 25, 2021. During the nine months ended September 26, 2020, the Company repurchased 175,110 shares of its common stock totaling $22.9 million.

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Related Party Transactions

9 Months Ended

Sep. 25, 2021

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

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 September 25, 2021						For the Three Months Ended September 26, 2020
(in millions)	Powersem		EB Tech		ATEC		Powersem		EB Tech		ATEC
Sales to related party	$	—	$	—	$	—	$	0.4	$	—	$	—
Purchase material/service from related party	0.8		0.1		3.1		0.8		—		2.4
	For the Nine Months Ended September 25, 2021						For the Nine Months Ended September 26, 2020
(in millions)	Powersem		EB Tech		ATEC		Powersem		EB Tech		ATEC
Sales to related party	$	0.2	$	—	$	—	$	1.1	$	—	$	—
Purchase material/service from related party	2.6		0.3		8.9		1.8		—		5.8
	September 25, 2021						December 26, 2020
(in millions)	Powersem		EB Tech		ATEC		Powersem		EB Tech		ATEC
Accounts receivable balance	$	—	$	—	$	—	$	0.1	$	—	$	—
Accounts payable balance	0.1		—		2.1		0.1		—		0.2

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Segment Information

9 Months Ended

Sep. 25, 2021

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company and its subsidiaries design, manufacture and sell components and modules empowering a sustainable, connected, and safer 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 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 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 motor drives and power conversion, automotive electronics, electric vehicle and related infrastructure, power supplies, data centers and telecommunications, medical devices, alternative energy, building and home automation, appliances, and mobile electronics.

•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 for internal combustion engine, 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 used in applications serving a number of end markets, including heavy truck, construction, agriculture and material handling. Automotive sensor products include a wide range of

automotive and commercial vehicle products designed to monitor the passenger compartment occupant's safety and environment as well as the vehicle’s powertrain.

•Industrial Segment: Consists of industrial circuit protection products (i.e. fuses, power distribution modules, switches) and industrial control products (i.e. relays, transformers, contactors, sensors). These products are used in a variety of applications and end-markets including: renewable energy, energy storage, HVAC, electric vehicle infrastructure, industrial equipment, industrial automation, construction, mining, and oil & gas.

Segment information is summarized as follows: 

	Three Months Ended				Nine Months Ended
(in thousands)	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
Net sales
Electronics	$	347,240	$	255,349	$	959,122	$	692,809
Automotive	124,415		104,724		386,262		271,493
Industrial	67,926		31,493		181,479		80,697
Total net sales	$	539,581	$	391,566	$	1,526,863	$	1,044,999
Depreciation and amortization
Electronics	$	15,503	$	15,819	$	45,998	46,967
Automotive	7,075		7,370		21,094		21,628
Industrial	2,058		1,140		5,957		3,270
Total depreciation and amortization	$	24,636	$	24,329	$	73,049	$	71,865
Operating income
Electronics	$	100,524	$	45,860	$	230,283	$	110,783
Automotive	15,806		15,383		55,380		20,642
Industrial	6,571		4,898		18,452		8,409
Other(a)	(2,794)		(1,583)		(11,270)		(42,476)
Total operating income	120,107		64,558		292,845		97,358
Interest expense	4,602		4,988		13,901		16,261
Foreign exchange loss (gain)	3,154		(6,174)		8,315		(9,600)
Other income, net	(1,240)		(1,682)		(10,867)		(1,643)
Income before income taxes	$	113,591	$	67,426	$	281,496	$	92,340

(a) Included in “Other” Operating income for the third quarter of 2021 was $6.8 million year-to-date of purchase accounting inventory step-up charges, $2.0 million ($3.4 million year-to-date) of legal and professional fees and other integration expenses related to Hartland and other contemplated acquisitions, and $0.8 million ($2.0 million year-to-date) of restructuring, impairment and other charges, primarily related to employee termination costs. See Note 7, Restructuring, Impairment, and Other Charges, for further discussion. In addition, there was a year-to-date gain of $0.9 million recorded for the sale of a building within the Electronics segment.

Included in “Other” Operating income for the 2020 third quarter was $0.3 million ($1.6 million year-to-date) of acquisition-related and integration charges related to the IXYS acquisition and other contemplated acquisitions. In addition, there was $1.3 million ($40.9 million year-to-date) of restructuring, impairment and other charges, primarily related to employee termination costs of $1.2 million ($4.6 million year-to-date), and other restructuring charges of $0.1 million ($0.2 million year-to-date), the goodwill impairment charge of $33.8 million recorded in the second quarter associated with the automotive sensors reporting unit within the Automotive segment, impairment charges of $2.2 million recorded in the first quarter associated with the announced consolidation of a manufacturing facility within the Industrial segment. See Note 5, Goodwill and Other Intangible Assets and Note 7, Restructuring, Impairment, and Other Charges, for further discussion.

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

	Three Months Ended				Nine Months Ended
(in thousands)	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
Net sales
United States	$	172,995	$	106,121	$	458,723	$	285,901
China	160,628		126,506		455,872		314,547
Other countries(a)	205,958		158,939		612,268		444,551
Total net sales	$	539,581	$	391,566	$	1,526,863	$	1,044,999

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

(in thousands)	September 25, 2021		December 26, 2020
Long-lived assets
United States	$	47,533	$	46,132
China	90,984		85,876
Mexico	82,882		70,125
Germany	40,115		37,976
Philippines	68,594		66,994
Other countries(a)	34,221		37,075
Total long-lived assets	$	364,329	$	344,178

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

	Nine Months Ended
(in thousands)	September 25, 2021		September 26, 2020
Additions to long-lived assets
United States	$	3,696	$	2,712
China	13,790		6,414
Mexico	22,518		7,291
Germany	6,994		3,793
Philippines	10,109		15,331
Other countries(a)	3,527		1,152
Total additions to long-lived assets	$	60,634	$	36,693

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

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Subsequent Events	9 Months Ended
	Sep. 25, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent eventOn October 20, 2021, the Company announced that it had entered into a definitive agreement to acquire Carling Technologies, Inc. (“Carling”) for $315 million in cash, subject to a working capital adjustment. Founded in 1920, Carling has a leading position in switching and circuit protection technologies with a strong global presence in commercial vehicle, marine and datacom/telecom infrastructure markets. The business is headquartered in Plainville, Connecticut, with offices and facilities located around the world and will be reported as part of the commercial vehicle business within our Automotive segment. The transaction is subject to customary closing conditions and regulatory approvals, and is expected to close in the fourth quarter of 2021.

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Summary of Significant Accounting Policies and Other Information (Policies)

9 Months Ended

Sep. 25, 2021

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 26, 2020 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

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 December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update ("ASU") No. 2019-12, "Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes" as part of its initiative to reduce complexity in the accounting standards. The guidance is effective for fiscal years beginning after December 15, 2020 with early adoption permitted. The adoption of ASU 2019-12 did not have a material impact on our Condensed Consolidated Financial Statements.

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Summary of Significant Accounting Policies and Other Information (Tables)

9 Months Ended

Sep. 25, 2021

Accounting Policies [Abstract]

Schedule of revenue disaggregation

The following tables disaggregate the Company’s revenue by primary business units for the three and nine months ended September 25, 2021 and September 26, 2020:

	Three Months Ended September 25, 2021								Nine Months Ended September 25, 2021
(in thousands)	Electronics Segment		Automotive Segment		Industrial Segment		Total		Electronics Segment		Automotive Segment		Industrial Segment		Total
Electronics – Passive Products and Sensors	$	171,299	$	—	$	—	$	171,299	$	459,012	$	—	$	—	$	459,012
Electronics – Semiconductor	175,941		—		—		175,941		500,110		—		—		500,110
Passenger Car Products	—		64,630		—		64,630		—		200,579		—		200,579
Automotive Sensors	—		24,112		—		24,112		—		79,081		—		79,081
Commercial Vehicle Products	—		35,673		—		35,673		—		106,602		—		106,602
Industrial Products	—		—		67,926		67,926		—		—		181,479		181,479
Total	$	347,240	$	124,415	$	67,926	$	539,581	$	959,122	$	386,262	$	181,479	$	1,526,863

	Three Months Ended September 26, 2020								Nine Months Ended September 26, 2020
(in thousands)	Electronics Segment		Automotive Segment		Industrial Segment		Total		Electronics Segment		Automotive Segment		Industrial Segment		Total
Electronics – Passive Products and Sensors	$	108,253	$	—	$	—	$	108,253	$	285,697	$	—	$	—	$	285,697
Electronics – Semiconductor	147,096		—		—		147,096		407,112		—		—		407,112
Passenger Car Products	—		52,691		—		52,691		—		135,645		—		135,645
Automotive Sensors	—		26,093		—		26,093		—		64,166		—		64,166
Commercial Vehicle Products	—		25,940		—		25,940		—		71,682		—		71,682
Industrial Products	—		—		31,493		31,493		—		—		80,697		80,697
Total	$	255,349	$	104,724	$	31,493	$	391,566	$	692,809	$	271,493	$	80,697	$	1,044,999

Schedule of cash and cash equivalents

The following table provides a reconciliation of cash, cash equivalents and restricted cash at September 25, 2021 and December 26, 2020 reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statement of Cash Flows.

(in thousands)	September 25, 2021		December 26, 2020
Cash and cash equivalents	$	690,682	$	687,525
Restricted cash included in prepaid expenses and other current assets	3,483		—
Restricted cash included in other assets	1,704		$	—
Total cash, cash equivalents and restricted cash	$	695,869	$	687,525

Schedule of restricted cash and cash equivalents

The following table provides a reconciliation of cash, cash equivalents and restricted cash at September 25, 2021 and December 26, 2020 reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statement of Cash Flows.

(in thousands)	September 25, 2021		December 26, 2020
Cash and cash equivalents	$	690,682	$	687,525
Restricted cash included in prepaid expenses and other current assets	3,483		—
Restricted cash included in other assets	1,704		$	—
Total cash, cash equivalents and restricted cash	$	695,869	$	687,525

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Acquisitions (Tables)

9 Months Ended

Sep. 25, 2021

Business Combination and Asset Acquisition [Abstract]

Schedule of recognized identified assets acquired and liabilities assumed

The following table summarizes the final purchase price allocation of the fair value of assets acquired and liabilities assumed in the Hartland acquisition:

(in thousands)	Purchase Price Allocation
Total purchase consideration:
Cash, net of cash acquired, and restricted cash	$	109,852
Allocation of consideration to assets acquired and liabilities assumed:
Trade receivables, net	13,027
Inventories	35,808
Other current assets	2,224
Property, plant, and equipment	6,296
Intangible assets	39,660
Goodwill	40,442
Other non-current assets	3,787
Current liabilities	(24,846)
Other non-current liabilities	(6,546)
	$	109,852

Summary of business acquisition, pro forma information

The following table summarizes, on an unaudited pro forma basis, the combined results of operations of the Company and Hartland as though the acquisition had occurred as of December 29, 2019. The pro forma amounts presented are not necessarily indicative of either the actual consolidated results had the Hartland acquisition occurred as of December 29, 2019 or of future consolidated operating results.

	For the Three Months Ended				For the Nine Months Ended
(in thousands, except per share amounts)	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
Net sales	$	539,581	$	414,100	$	1,533,901	$	1,101,430
Income before income taxes	113,591		69,478		289,530		90,516
Net income	92,054		56,961		238,197		69,526
Net income per share — basic	3.74		2.34		9.69		2.85
Net income per share — diluted	3.69		2.32		9.56		2.83

Summary of business acquisition, pro forma information, nonrecurring adjustments

Pro forma results presented above primarily reflect the following adjustments:

	For the Three Months Ended				For the Nine Months Ended
(in thousands)	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
Amortization(a)	$	—	$	(838)	$	(280)	$	(2,514)
Depreciation	—		44		7		139
Transaction costs(b)	—		—		835		(835)
Amortization of inventory step-up(c)	—		—		6,808		(6,796)
Income tax (expense) benefit of above items	—		167		(1,555)		2,107

(a)The amortization adjustment for the three and nine months ended September 26, 2020 primarily reflects incremental amortization resulting from the measurement of intangibles at their fair values.

(b)The transaction cost adjustments reflect the reversal of certain legal and professional fees from the nine months ended September 25, 2021 and recognition of those fees during the nine months ended September 26, 2020.

(c)The amortization of inventory step-up adjustment reflects the reversal of the amount recognized during the nine months ended September 25, 2021 and the recognition of the amortization during the nine months ended September 26, 2020. The inventory step-up was amortized over four months as the inventory was sold.

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Inventories (Tables)

9 Months Ended

Sep. 25, 2021

Inventory Disclosure [Abstract]

Schedule of inventory

The components of inventories at September 25, 2021 and December 26, 2020 are as follows:

(in thousands)	September 25, 2021		December 26, 2020
Raw materials	$	121,282	$	85,394
Work in process	109,347		92,783
Finished goods	161,567		114,641
Inventory Reserves	(35,172)		(34,816)
Total	$	357,024	$	258,002

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Property, Plant, and Equipment (Tables)

9 Months Ended

Sep. 25, 2021

Property, Plant and Equipment [Abstract]

Schedule of components of net property, plant, and equipment

The components of net property, plant, and equipment at September 25, 2021 and December 26, 2020 are as follows:

(in thousands)	September 25, 2021		December 26, 2020
Land	$	22,887	$	22,851
Building	129,135		123,497
Equipment	725,971		678,220
Accumulated depreciation and amortization	(513,664)		(480,390)
Total	$	364,329	$	344,178

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Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Sep. 25, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill

The amounts for goodwill and changes in the carrying value by segment for the nine months ended September 25, 2021 are as follows:

(in thousands)	Electronics		Automotive		Industrial		Total
Net book value of goodwill as of December 26, 2020
Gross goodwill as of December 26, 2020	$	676,325	$	138,354	$	47,551	$	862,230
Accumulated impairment losses as of December 26, 2020	—		(36,423)		(8,995)		(45,418)
Total	676,325		101,931		38,556		816,812
Changes during 2021:
Additions(a)	—		1,614		40,442		42,056
Currency translation	(9,530)		(2,165)		32		(11,663)
Net book value of goodwill as of September 25, 2021
Gross goodwill as of September 25, 2021	666,795		137,783		88,133		892,711
Accumulated impairment losses as of September 25, 2021	—		(36,403)		(9,103)		(45,506)
Total	$	666,795	$	101,380	$	79,030	$	847,205

(a) The additions primarily resulted from the acquisition of Hartland.

Schedule of finite-lived intangible assets

The components of other intangible assets as of September 25, 2021 and December 26, 2020 are as follows:

	As of September 25, 2021
(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Land use rights	$	10,354	$	2,230	$	8,124
Patents, licenses and software	142,606		99,834		42,772
Distribution network	43,601		40,306		3,295
Customer relationships, trademarks, and tradenames	399,655		158,080		241,575
Total	$	596,216	$	300,450	$	295,766

	As of December 26, 2020
(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Land use rights	$	10,280	$	2,007	$	8,273
Patents, licenses and software	137,210		92,868		44,342
Distribution network	43,910		38,980		4,930
Customer relationships, trademarks, and tradenames	372,064		137,722		234,342
Total	$	563,464	$	271,577	$	291,887

During the nine months ended September 25, 2021, the Company recorded additions to intangible assets of $39.7 million, related to the Hartland acquisition, the components of which were as follows:

(in thousands)	Weighted Average Useful Life	Amount
Patents, licenses and software	9.2	$	7,559
Customer relationships, trademarks, and tradenames	13.7	32,101
Total		$	39,660

Schedule of finite-lived intangible assets, future amortization expense

Estimated annual amortization expense related to intangible assets with definite lives as of September 25, 2021 is as follows:

(in thousands)	Amount
2021	$	41,922
2022	40,761
2023	36,461
2024	33,038
2025	33,019
2026 and thereafter	142,173
Total	$	327,374

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Accrued Liabilities (Tables)

9 Months Ended

Sep. 25, 2021

Payables and Accruals [Abstract]

Schedule of components of accrued liabilities

The components of accrued liabilities as of September 25, 2021 and December 26, 2020 are as follows:

(in thousands)	September 25, 2021		December 26, 2020
Employee-related liabilities	$	80,034	$	50,689
Operating lease liability	8,649		6,811
Other non-income taxes	5,352		2,126
Professional services	3,375		3,321
Restructuring liability	3,075		4,195
Interest	2,598		4,517
Deferred revenue	867		2,959
Customer liability	740		3,858
Other	34,980		32,002
Total	$	139,670	$	110,478

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Restructuring, Impairment and Other Charges (Tables)

9 Months Ended

Sep. 25, 2021

Restructuring and Related Activities [Abstract]

Schedule of restructuring, impairment and other charges

The Company recorded restructuring, impairment and other charges for the three and nine months ended September 25, 2021 and September 26, 2020 as follows:

	Three months ended September 25, 2021								Nine months ended September 25, 2021
(in thousands)	Electronics		Automotive		Industrial		Total		Electronics		Automotive		Industrial		Total
Employee terminations	$	542	$	—	$	133	$	675	$	1,094	$	416	$	302	$	1,812
Other restructuring charges	—		97		—		97		—		186		—		186
Total restructuring charges	542		97		133		772		1,094		602		302		1,998
Total	$	542	$	97	$	133	$	772	$	1,094	$	602	$	302	$	1,998

	Three months ended September 26, 2020								Nine months ended September 26, 2020
(in thousands)	Electronics		Automotive		Industrial		Total		Electronics		Automotive		Industrial		Total
Employee terminations	$	388	$	162	$	648	$	1,198	$	2,125	$	770	$	1,719	$	4,614
Other restructuring charges	—		—		79		79		—		108		104		212
Total restructuring charges	388		162		727		1,277		2,125		878		1,823		4,826
Impairment	—		—		—		—		—		33,841		2,237		36,078
Total	$	388	$	162	$	727	$	1,277	$	2,125	$	34,719	$	4,060	$	40,904

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Debt (Tables)

9 Months Ended

Sep. 25, 2021

Debt Disclosure [Abstract]

Schedule of long-term debt instruments

The carrying amounts of debt at September 25, 2021 and December 26, 2020 are as follows:

(in thousands)	September 25, 2021		December 26, 2020
Revolving Credit Facility	$	100,000	$	130,000
Euro Senior Notes, Series A due 2023	137,173		142,679
Euro Senior Notes, Series B due 2028	111,380		115,850
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	(3,441)		(4,114)
Total debt	647,731		687,034
Less: Current maturities	(27,619)		—
Total long-term debt	$	620,112	$	687,034

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Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 25, 2021

Fair Value Disclosures [Abstract]

Schedule of 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 September 25, 2021:

	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	$	15,970	$	—	$	—	$	15,970
Investments in equity securities	27,358		—		—		27,358
Mutual funds	14,711		—		—		14,711
Total	$	58,039	$	—	$	—	$	58,039

The following table presents assets measured at fair value by classification within the fair value hierarchy as of December 26, 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	$	73,461	$	—	$	—	$	73,461
Investments in equity securities	19,186		—		—		19,186
Mutual funds	13,249		—		—		13,249
Total	$	105,896	$	—	$	—	$	105,896

Schedule of 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 September 25, 2021 and December 26, 2020 were as follows:

	September 25, 2021				December 26, 2020
(in thousands)	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Euro Senior Notes, Series A due 2023	$	137,173	$	138,825	$	142,679	$	144,323
Euro Senior Notes, Series B due 2028	111,380		116,425		115,850		123,588
USD Senior Notes, Series A due 2022	25,000		25,167		25,000		25,437
USD Senior Notes, Series B due 2027	100,000		106,585		100,000		109,552
USD Senior Notes, Series A due 2025	50,000		52,567		50,000		53,474
USD Senior Notes, Series B due 2030	125,000		133,376		125,000		138,036

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Benefit Plans (Tables)

9 Months Ended

Sep. 25, 2021

Retirement Benefits [Abstract]

Schedule of net benefit costs

The components of net periodic benefit cost for the three and nine months ended September 25, 2021 and September 26, 2020 were as follows: 

	For the Three Months Ended				For the Nine Months Ended
(in thousands)	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
Components of net periodic benefit cost:
Service cost	$	684	$	615	$	2,086	$	1,825
Interest cost	434		511		1,317		1,655
Expected return on plan assets	(361)		(422)		(1,099)		(1,551)
Amortization of prior service and net actuarial loss	327		279		992		688
Net periodic benefit cost	$	1,084	$	983	$	3,296	$	2,617

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Other Comprehensive (Loss) Income (Tables)

9 Months Ended

Sep. 25, 2021

Equity [Abstract]

Schedule of components of comprehensive income (loss)

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

(in thousands)	Three Months Ended September 25, 2021						Three Months Ended September 26, 2020
	Pre-tax		Tax		Net of Tax		Pre-tax		Tax		Net of Tax
Defined benefit pension plan and other adjustments	$	601	$	114	$	487	$	273	$	(290)	$	563
Foreign currency translation adjustments	(5,441)		—		(5,441)		16,418		—		16,418
Total change in other comprehensive (loss) income	$	(4,840)	$	114	$	(4,954)	$	16,691	$	(290)	$	16,981
(in thousands)	Nine Months Ended September 25, 2021						Nine Months Ended September 26, 2020
	Pre-tax		Tax		Net of Tax		Pre-tax		Tax		Net of Tax
Defined benefit pension plan adjustments	$	1,479	$	209	$	1,270	(12,270)		(2,555)		$	(9,715)
Foreign currency translation adjustments	(5,641)		—		(5,641)		$	9,300	$	—	$	9,300
Total change in other comprehensive (loss) income	$	(4,162)	$	209	$	(4,371)	$	(2,970)	$	(2,555)	$	(415)

Schedule of accumulated other comprehensive income (loss)

The following tables set forth the changes in accumulated other comprehensive (loss) by component for the nine months ended September 25, 2021 and September 26, 2020:

(in thousands)	Defined benefit pension plan and other adjustments		Foreign currency translation adjustment		Accumulated other comprehensive (loss)
Balance at December 26, 2020	$	(34,141)	$	(57,016)	$	(91,157)
Activity in the period	1,270		(5,641)		(4,371)
Balance at September 25, 2021	$	(32,871)	$	(62,657)	$	(95,528)

(in thousands)	Defined benefit pension plan and other adjustments		Foreign currency translation adjustment		Accumulated other comprehensive (loss)
Balance at December 28, 2019	$	(18,046)	$	(88,777)	$	(106,823)
Activity in the period	(9,715)		9,300		(415)
Balance at September 26, 2020	$	(27,761)	$	(79,477)	$	(107,238)

Summary of reclassification out of accumulated other comprehensive income

Amounts reclassified from accumulated other comprehensive (loss) to earnings for the three and nine months ended September 25, 2021 and September 26, 2020 were as follows:

	Three Months Ended				Nine Months Ended
(in thousands)	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
Pension and Postemployment plans:
Amortization of prior service and net actuarial loss	$	501	$	452	$	1,514	$	1,226

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Earnings Per Share (Tables)

9 Months Ended

Sep. 25, 2021

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				Nine Months Ended
(in thousands, except per share amounts)	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
Numerator:
Net income as reported	$	92,054	$	55,356	$	231,862	$	71,009
Denominator:
Weighted average shares outstanding
Basic	24,622		24,357		24,582		24,354
Effect of dilutive securities	304		216		322		181
Diluted	24,926		24,573		24,904		24,535
Earnings Per Share:
Basic earnings per share	$	3.74	$	2.27	$	9.43	$	2.92
Diluted earnings per share	$	3.69	$	2.25	$	9.31	$	2.89

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Related Party Transactions (Tables)

9 Months Ended

Sep. 25, 2021

Related Party Transactions [Abstract]

Schedule of related party transactions

	For the Three Months Ended September 25, 2021						For the Three Months Ended September 26, 2020
(in millions)	Powersem		EB Tech		ATEC		Powersem		EB Tech		ATEC
Sales to related party	$	—	$	—	$	—	$	0.4	$	—	$	—
Purchase material/service from related party	0.8		0.1		3.1		0.8		—		2.4
	For the Nine Months Ended September 25, 2021						For the Nine Months Ended September 26, 2020
(in millions)	Powersem		EB Tech		ATEC		Powersem		EB Tech		ATEC
Sales to related party	$	0.2	$	—	$	—	$	1.1	$	—	$	—
Purchase material/service from related party	2.6		0.3		8.9		1.8		—		5.8
	September 25, 2021						December 26, 2020
(in millions)	Powersem		EB Tech		ATEC		Powersem		EB Tech		ATEC
Accounts receivable balance	$	—	$	—	$	—	$	0.1	$	—	$	—
Accounts payable balance	0.1		—		2.1		0.1		—		0.2

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Segment Information (Tables)

9 Months Ended

Sep. 25, 2021

Segment Reporting [Abstract]

Schedule of segment reporting information, by segment

Segment information is summarized as follows: 

	Three Months Ended				Nine Months Ended
(in thousands)	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
Net sales
Electronics	$	347,240	$	255,349	$	959,122	$	692,809
Automotive	124,415		104,724		386,262		271,493
Industrial	67,926		31,493		181,479		80,697
Total net sales	$	539,581	$	391,566	$	1,526,863	$	1,044,999
Depreciation and amortization
Electronics	$	15,503	$	15,819	$	45,998	46,967
Automotive	7,075		7,370		21,094		21,628
Industrial	2,058		1,140		5,957		3,270
Total depreciation and amortization	$	24,636	$	24,329	$	73,049	$	71,865
Operating income
Electronics	$	100,524	$	45,860	$	230,283	$	110,783
Automotive	15,806		15,383		55,380		20,642
Industrial	6,571		4,898		18,452		8,409
Other(a)	(2,794)		(1,583)		(11,270)		(42,476)
Total operating income	120,107		64,558		292,845		97,358
Interest expense	4,602		4,988		13,901		16,261
Foreign exchange loss (gain)	3,154		(6,174)		8,315		(9,600)
Other income, net	(1,240)		(1,682)		(10,867)		(1,643)
Income before income taxes	$	113,591	$	67,426	$	281,496	$	92,340

(a) Included in “Other” Operating income for the third quarter of 2021 was $6.8 million year-to-date of purchase accounting inventory step-up charges, $2.0 million ($3.4 million year-to-date) of legal and professional fees and other integration expenses related to Hartland and other contemplated acquisitions, and $0.8 million ($2.0 million year-to-date) of restructuring, impairment and other charges, primarily related to employee termination costs. See Note 7, Restructuring, Impairment, and Other Charges, for further discussion. In addition, there was a year-to-date gain of $0.9 million recorded for the sale of a building within the Electronics segment.

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				Nine Months Ended
(in thousands)	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
Net sales
United States	$	172,995	$	106,121	$	458,723	$	285,901
China	160,628		126,506		455,872		314,547
Other countries(a)	205,958		158,939		612,268		444,551
Total net sales	$	539,581	$	391,566	$	1,526,863	$	1,044,999

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

(in thousands)	September 25, 2021		December 26, 2020
Long-lived assets
United States	$	47,533	$	46,132
China	90,984		85,876
Mexico	82,882		70,125
Germany	40,115		37,976
Philippines	68,594		66,994
Other countries(a)	34,221		37,075
Total long-lived assets	$	364,329	$	344,178

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

	Nine Months Ended
(in thousands)	September 25, 2021		September 26, 2020
Additions to long-lived assets
United States	$	3,696	$	2,712
China	13,790		6,414
Mexico	22,518		7,291
Germany	6,994		3,793
Philippines	10,109		15,331
Other countries(a)	3,527		1,152
Total additions to long-lived assets	$	60,634	$	36,693

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

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Summary of Significant Accounting Policies and Other Information (Details) customer in Thousands, associate in Thousands	9 Months Ended
	Sep. 25, 2021 associate country customer
Accounting Policies [Abstract]
Countries where product is used (country) | country	15
Global associates (associate) | associate	12
Number of customers (over) | customer	100

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Summary of Significant Accounting Policies and Other Information - Revenue Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2021	Sep. 26, 2020	Sep. 25, 2021	Sep. 26, 2020
Disaggregation of Revenue
Net sales	$ 539,581	$ 391,566	$ 1,526,863	$ 1,044,999
Electronics – Passive Products and Sensors
Disaggregation of Revenue
Net sales	171,299	108,253	459,012	285,697
Electronics – Semiconductor
Disaggregation of Revenue
Net sales	175,941	147,096	500,110	407,112
Passenger Car Products
Disaggregation of Revenue
Net sales	64,630	52,691	200,579	135,645
Automotive Sensors
Disaggregation of Revenue
Net sales	24,112	26,093	79,081	64,166
Commercial Vehicle Products
Disaggregation of Revenue
Net sales	35,673	25,940	106,602	71,682
Industrial Products
Disaggregation of Revenue
Net sales	67,926	31,493	181,479	80,697
Electronics Segment
Disaggregation of Revenue
Net sales	347,240	255,349	959,122	692,809
Electronics Segment | Electronics – Passive Products and Sensors
Disaggregation of Revenue
Net sales	171,299	108,253	459,012	285,697
Electronics Segment | Electronics – Semiconductor
Disaggregation of Revenue
Net sales	175,941	147,096	500,110	407,112
Automotive Segment
Disaggregation of Revenue
Net sales	124,415	104,724	386,262	271,493
Automotive Segment | Passenger Car Products
Disaggregation of Revenue
Net sales	64,630	52,691	200,579	135,645
Automotive Segment | Automotive Sensors
Disaggregation of Revenue
Net sales	24,112	26,093	79,081	64,166
Automotive Segment | Commercial Vehicle Products
Disaggregation of Revenue
Net sales	35,673	25,940	106,602	71,682
Industrial Segment
Disaggregation of Revenue
Net sales	67,926	31,493	181,479	80,697
Industrial Segment | Industrial Products
Disaggregation of Revenue
Net sales	$ 67,926	$ 31,493	$ 181,479	$ 80,697

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Summary of Significant Accounting Policies and Other Information - Cash and cash equivalents (Details) - USD ($) $ in Thousands	Sep. 25, 2021	Dec. 26, 2020	Sep. 26, 2020	Dec. 28, 2019
Accounting Policies [Abstract]
Cash and cash equivalents	$ 690,682	$ 687,525	$ 641,890
Restricted cash included in prepaid expenses and other current assets	3,483	0	0
Restricted cash included in other assets	1,704	0	0
Total cash, cash equivalents and restricted cash	$ 695,869	$ 687,525	$ 641,890	$ 531,139

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Acquisitions - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
	Jan. 28, 2021	Sep. 25, 2021	Sep. 25, 2021	Sep. 26, 2020
Business Acquisition
Cash, net of cash acquired, and restricted cash			$ 110,646	$ 0
Restricted cash		$ 1,700	1,700
Acquisition related costs			$ 800
Inventory amortization period (in years)			4 months
Hartland Controls
Business Acquisition
Annualized sales	$ 70,000
Hartland Controls
Business Acquisition
Cash acquired from acquisition	112,300
Cash, net of cash acquired, and restricted cash	109,852
Net sales		29,300	$ 72,300
Income (loss) before income taxes		$ 1,200	(1,300)
Inventory adjustment	$ 6,800
Hartland Controls | Corporate Non-Segment | Operating Income (Loss)
Business Acquisition
Inventory adjustment			$ 6,800

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Acquisitions - Preliminary Price Allocation (Details) - USD ($) $ in Thousands		9 Months Ended
	Jan. 28, 2021	Sep. 25, 2021	Sep. 26, 2020	Dec. 26, 2020
Total purchase consideration:
Cash, net of cash acquired, and restricted cash		$ 110,646	$ 0
Allocation of consideration to assets acquired and liabilities assumed:
Goodwill		$ 847,205		$ 816,812
Hartland Controls
Total purchase consideration:
Cash, net of cash acquired, and restricted cash	$ 109,852
Allocation of consideration to assets acquired and liabilities assumed:
Trade receivables, net	13,027
Inventories	35,808
Other current assets	2,224
Property, plant, and equipment	6,296
Intangible assets	39,660
Goodwill	40,442
Other non-current assets	3,787
Current liabilities	(24,846)
Other non-current liabilities	(6,546)
Assets acquired and liabilities assumed	$ 109,852

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Acquisitions - Business Acquisition Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2021	Sep. 26, 2020	Sep. 25, 2021	Sep. 26, 2020
Business Combination and Asset Acquisition [Abstract]
Net sales	$ 539,581	$ 414,100	$ 1,533,901	$ 1,101,430
Income before income taxes	113,591	69,478	289,530	90,516
Net income	$ 92,054	$ 56,961	$ 238,197	$ 69,526
Net income per share — basic (in dollars per share)	$ 3.74	$ 2.34	$ 9.69	$ 2.85
Net income per share — diluted (in dollars per share)	$ 3.69	$ 2.32	$ 9.56	$ 2.83

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Acquisitions - Pro Forma Information Adjustments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2021	Sep. 26, 2020	Sep. 25, 2021	Sep. 26, 2020
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment
Net income	$ 92,054	$ 56,961	$ 238,197	$ 69,526
Amortization
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment
Net income	0	(838)	(280)	(2,514)
Depreciation
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment
Net income	0	44	7	139
Transaction costs
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment
Net income	0	0	835	(835)
Amortization of inventory step-up
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment
Net income	0	0	6,808	(6,796)
Income tax (expense) benefit of above items
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment
Net income	$ 0	$ 167	$ (1,555)	$ 2,107

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Inventories - Components of Inventories (Details) - USD ($) $ in Thousands	Sep. 25, 2021	Dec. 26, 2020
Inventory Disclosure [Abstract]
Raw materials	$ 121,282	$ 85,394
Work in process	109,347	92,783
Finished goods	161,567	114,641
Inventory Reserves	(35,172)	(34,816)
Total	$ 357,024	$ 258,002

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Property, Plant, and Equipment (Details) - USD ($) $ in Thousands	Sep. 25, 2021	Dec. 26, 2020
Property, Plant and Equipment
Accumulated depreciation and amortization	$ (513,664)	$ (480,390)
Total	364,329	344,178
Land
Property, Plant and Equipment
Property, plant, and equipment, gross	22,887	22,851
Building
Property, Plant and Equipment
Property, plant, and equipment, gross	129,135	123,497
Equipment
Property, Plant and Equipment
Property, plant, and equipment, gross	$ 725,971	$ 678,220

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Property, Plant, and Equipment - Depreciation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2021	Sep. 26, 2020	Sep. 25, 2021	Sep. 26, 2020
Property, Plant and Equipment [Abstract]
Depreciation	$ 14,200	$ 14,200	$ 41,441	$ 41,953

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Goodwill and Other Intangible Assets - Amounts for Goodwill and Changes in Carrying Value by Operating Segment (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 25, 2021	Dec. 26, 2020
Goodwill
Gross goodwill	$ 892,711	$ 862,230
Accumulated impairment losses	(45,506)	(45,418)
Net goodwill	847,205	816,812
Additions	42,056
Currency translation	(11,663)
Electronics
Goodwill
Gross goodwill	666,795	676,325
Accumulated impairment losses	0	0
Net goodwill	666,795	676,325
Additions	0
Currency translation	(9,530)
Automotive
Goodwill
Gross goodwill	137,783	138,354
Accumulated impairment losses	(36,403)	(36,423)
Net goodwill	101,380	101,931
Additions	1,614
Currency translation	(2,165)
Industrial
Goodwill
Gross goodwill	88,133	47,551
Accumulated impairment losses	(9,103)	(8,995)
Net goodwill	79,030	$ 38,556
Additions	40,442
Currency translation	$ 32

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Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 25, 2021	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Sep. 25, 2021	Sep. 26, 2020	Jan. 28, 2021	Dec. 26, 2020
Goodwill
Goodwill	$ 847,205				$ 847,205			$ 816,812
Amortization of intangibles	10,446	$ 10,104			31,608	$ 29,912
Impairment of intangibles				$ 300
Acquired finite lived intangibles					42,056
Automotive Sensors
Goodwill
Goodwill impairment charge			$ 33,800
Goodwill	$ 9,500				9,500
Hartland Controls
Goodwill
Goodwill							$ 40,442
Acquired finite lived intangibles					$ 39,700

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Goodwill and Other Intangible Assets - Details of Other Intangible Assets and Related Future Amortization Expense (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 25, 2021	Dec. 26, 2020
Finite-Lived Intangible Assets
Gross Carrying Value	$ 596,216	$ 563,464
Accumulated Amortization	300,450	271,577
Net Book Value	295,766	291,887
Amount	39,660
Land use rights
Finite-Lived Intangible Assets
Gross Carrying Value	10,354	10,280
Accumulated Amortization	2,230	2,007
Net Book Value	8,124	8,273
Patents, licenses and software
Finite-Lived Intangible Assets
Gross Carrying Value	142,606	137,210
Accumulated Amortization	99,834	92,868
Net Book Value	$ 42,772	44,342
Weighted Average Useful Life	9 years 2 months 12 days
Amount	$ 7,559
Distribution network
Finite-Lived Intangible Assets
Gross Carrying Value	43,601	43,910
Accumulated Amortization	40,306	38,980
Net Book Value	3,295	4,930
Customer relationships, trademarks, and tradenames
Finite-Lived Intangible Assets
Gross Carrying Value	399,655	372,064
Accumulated Amortization	158,080	137,722
Net Book Value	$ 241,575	$ 234,342
Weighted Average Useful Life	13 years 8 months 12 days
Amount	$ 32,101

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Goodwill and Other Intangible Assets - Estimated Amortization Expense Related to Intangible Assets with Definite Lives (Details) $ in Thousands	Sep. 25, 2021 USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity
2021	$ 41,922
2022	40,761
2023	36,461
2024	33,038
2025	33,019
2026 and thereafter	142,173
Total	$ 327,374

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Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 25, 2021	Dec. 26, 2020
Payables and Accruals [Abstract]
Employee-related liabilities	$ 80,034	$ 50,689
Operating lease liability	8,649	6,811
Other non-income taxes	5,352	2,126
Professional services	3,375	3,321
Restructuring liability	3,075	4,195
Interest	2,598	4,517
Deferred revenue	867	2,959
Customer liability	740	3,858
Other	34,980	32,002
Total	$ 139,670	$ 110,478

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Restructuring, Impairment and Other Charges (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 25, 2021	Sep. 26, 2020	Jun. 27, 2020	Sep. 25, 2021	Sep. 26, 2020	Dec. 26, 2020
Restructuring Cost and Reserve
Total restructuring charges	$ 772	$ 1,277		$ 1,998	$ 4,826
Impairment charges		0		0	36,078
Restructuring costs	772	1,277		1,998	40,904
Restructuring reserves	3,100			3,100		$ 4,200
Employee terminations
Restructuring Cost and Reserve
Total restructuring charges	675	1,198		1,812	4,614
Other restructuring charges
Restructuring Cost and Reserve
Total restructuring charges	97	79		186	212
Electronics
Restructuring Cost and Reserve
Total restructuring charges	542	388		1,094	2,125
Impairment charges		0			0
Restructuring costs	542	388		1,094	2,125
Electronics | Employee terminations
Restructuring Cost and Reserve
Total restructuring charges	542	388		1,094	2,125
Electronics | Other restructuring charges
Restructuring Cost and Reserve
Total restructuring charges	0	0		0	0
Automotive
Restructuring Cost and Reserve
Total restructuring charges	97	162		602	878
Impairment charges		0			33,841
Restructuring costs	97	162		602	34,719
Automotive | Employee terminations
Restructuring Cost and Reserve
Total restructuring charges	0	162		416	770
Automotive | Other restructuring charges
Restructuring Cost and Reserve
Total restructuring charges	97	0		186	108
Automotive | Facility Closing
Restructuring Cost and Reserve
Goodwill impairment charge			$ 33,800
Industrial
Restructuring Cost and Reserve
Total restructuring charges	133	727		302	1,823
Impairment charges		0			2,237
Restructuring costs	133	727		302	4,060
Industrial | Employee terminations
Restructuring Cost and Reserve
Total restructuring charges	133	648		302	1,719
Industrial | Other restructuring charges
Restructuring Cost and Reserve
Total restructuring charges	$ 0	$ 79		$ 0	$ 104
Industrial | Facility Closing
Restructuring Cost and Reserve
Impairment charges			$ 2,200

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Debt - Carrying Amounts of Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 25, 2021	Dec. 26, 2020
Debt Instrument
Unamortized debt issuance costs	$ (3,441)	$ (4,114)
Total debt	647,731	687,034
Less: Current maturities	(27,619)	0
Total long-term debt	620,112	687,034
Revolving Credit Facility
Debt Instrument
Long-term debt, gross	100,000	130,000
Senior Notes | Euro Senior Notes, Series A due 2023
Debt Instrument
Long-term debt, gross	137,173	142,679
Senior Notes | Euro Senior Notes, Series B due 2028
Debt Instrument
Long-term debt, gross	111,380	115,850
Senior Notes | U.S. Senior Notes, Series A due 2022
Debt Instrument
Long-term debt, gross	25,000	25,000
Senior Notes | U.S. Senior Notes, Series B due 2027
Debt Instrument
Long-term debt, gross	100,000	100,000
Senior Notes | U.S. Senior Notes, Series A due 2025
Debt Instrument
Long-term debt, gross	50,000	50,000
Senior Notes | U.S. Senior Notes, Series B due 2030
Debt Instrument
Long-term debt, gross	125,000	125,000
Other
Debt Instrument
Long-term debt, gross	$ 2,619	$ 2,619

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Debt - Narrative (Details)		3 Months Ended		9 Months Ended
	Apr. 03, 2020 USD ($)	Sep. 25, 2021 USD ($)	Sep. 26, 2020 USD ($)	Sep. 25, 2021 USD ($)	Sep. 26, 2020 USD ($)	Dec. 26, 2020 USD ($)	Apr. 02, 2020 USD ($)	Jan. 16, 2018 USD ($)	Nov. 15, 2017 USD ($) series	Feb. 15, 2017 USD ($)	Dec. 08, 2016 USD ($) series	Dec. 08, 2016 EUR (€) series
Debt Instrument
Payments of revolving credit facility				$ 30,000,000	$ 60,000,000
Cash paid interest during the period		$ 6,100,000	$ 6,400,000	$ 14,830,000	$ 17,228,000
Credit Agreement
Debt Instrument
Effective interest rate (percent)		1.33%		1.33%
Letter of credit outstanding (less than)		$ 0		$ 0
Credit Agreement | Minimum
Debt Instrument
Commitment fee (percent)				0.125%
Credit Agreement | Maximum
Debt Instrument
Commitment fee (percent)				0.20%
Credit Agreement | LIBOR | Minimum
Debt Instrument
Basis spread on variable rate (percent)				1.25%
Credit Agreement | LIBOR | Maximum
Debt Instrument
Basis spread on variable rate (percent)				2.00%
Credit Agreement | Base Rate | Minimum
Debt Instrument
Basis spread on variable rate (percent)				0.25%
Credit Agreement | Base Rate | Maximum
Debt Instrument
Basis spread on variable rate (percent)				1.00%
Credit Agreement | Revolving Credit Facility
Debt Instrument
Remaining borrowing capacity		600,000,000		$ 600,000,000
Term Loan
Debt Instrument
Elimination of unsecured team loan facility	$ 200,000,000
Long-term debt, gross							$ 140,000,000
Senior Notes | Euro Senior Notes, Series A and B
Debt Instrument
Face amount of debt | €												€ 212,000,000
Number of series | series											2	2
Senior Notes | Euro Senior Notes, Series A due 2023
Debt Instrument
Long-term debt, gross		137,173,000		137,173,000		$ 142,679,000
Face amount of debt | €												€ 117,000,000
Stated interest rate (percent)											1.14%	1.14%
Senior Notes | Euro Senior Notes, Series B due 2028
Debt Instrument
Long-term debt, gross		111,380,000		111,380,000		115,850,000
Face amount of debt | €												€ 95,000,000
Stated interest rate (percent)											1.83%	1.83%
Senior Notes | U.S. Senior Notes, Series A and B
Debt Instrument
Face amount of debt											$ 125,000,000
Number of series | series											2	2
Senior Notes | U.S. Senior Notes, Series A
Debt Instrument
Face amount of debt										$ 25,000,000
Stated interest rate (percent)										3.03%
Senior Notes | U.S. Senior Notes, Series B
Debt Instrument
Face amount of debt										$ 100,000,000
Stated interest rate (percent)										3.74%
Senior Notes | US Senior Notes A and B Due 2025 and 2030
Debt Instrument
Face amount of debt									$ 175,000,000
Number of series | series									2
Senior Notes | U.S. Senior Notes, Series A due 2025
Debt Instrument
Long-term debt, gross		50,000,000		50,000,000		50,000,000
Face amount of debt								$ 50,000,000
Stated interest rate (percent)								3.48%
Senior Notes | U.S. Senior Notes, Series B due 2030
Debt Instrument
Long-term debt, gross		$ 125,000,000		$ 125,000,000		$ 125,000,000
Face amount of debt								$ 125,000,000
Stated interest rate (percent)								3.78%

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Fair Value of Assets and Liabilities - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 25, 2021	Sep. 26, 2020	Mar. 28, 2020	Sep. 25, 2021	Sep. 26, 2020	Dec. 26, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Impairment of investments	$ 500	$ 100		$ 500	$ 100
Investments in equity securities	$ 27,358			$ 27,358		$ 19,186
Patents
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Other asset impairment charges			$ 300
Land and Building
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Other asset impairment charges			$ 1,900
Other Assets
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Investments in equity securities						$ 500

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Fair Value of Assets and Liabilities - Assets Measured at Fair Value (Details) - USD ($) $ in Thousands	Sep. 25, 2021	Dec. 26, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents	$ 15,970	$ 73,461
Investments in equity securities	27,358	19,186
Mutual funds	14,711	13,249
Total	58,039	105,896
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents	15,970	73,461
Investments in equity securities	27,358	19,186
Mutual funds	14,711	13,249
Total	58,039	105,896
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents	0	0
Investments in equity securities	0	0
Mutual funds	0	0
Total	0	0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents	0	0
Investments in equity securities	0	0
Mutual funds	0	0
Total	$ 0	$ 0

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Fair Value of Assets and Liabilities - Carrying Value and Estimated Fair Value of Senior Notes (Details) - Senior Notes - USD ($) $ in Thousands	Sep. 25, 2021	Dec. 26, 2020
Carrying Value | Euro Senior Notes, Series A due 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Long-term debt fair value	$ 137,173	$ 142,679
Carrying Value | Euro Senior Notes, Series B due 2028
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Long-term debt fair value	111,380	115,850
Carrying Value | U.S. Senior Notes, Series A due 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions
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
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
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
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
Long-term debt fair value	138,825	144,323
Estimated Fair Value | Euro Senior Notes, Series B due 2028
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Long-term debt fair value	116,425	123,588
Estimated Fair Value | U.S. Senior Notes, Series A due 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Long-term debt fair value	25,167	25,437
Estimated Fair Value | U.S. Senior Notes, Series B due 2027
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Long-term debt fair value	106,585	109,552
Estimated Fair Value | U.S. Senior Notes, Series A due 2025
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Long-term debt fair value	52,567	53,474
Estimated Fair Value | U.S. Senior Notes, Series B due 2030
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Long-term debt fair value	$ 133,376	$ 138,036

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Benefit Plans - Benefit Plan Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2021	Sep. 26, 2020	Sep. 25, 2021	Sep. 26, 2020
Retirement Benefits [Abstract]
Service cost	$ 684	$ 615	$ 2,086	$ 1,825
Interest cost	434	511	1,317	1,655
Expected return on plan assets	(361)	(422)	(1,099)	(1,551)
Amortization of prior service and net actuarial loss	327	279	992	688
Net periodic benefit cost	$ 1,084	$ 983	$ 3,296	$ 2,617

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Benefit Plans - Narrative (Details) $ in Thousands, £ in Millions			3 Months Ended					9 Months Ended
	Apr. 06, 2020 USD ($)	Apr. 06, 2020 GBP (£)	Dec. 31, 2021 USD ($)	Sep. 25, 2021 USD ($)	Sep. 26, 2020 USD ($)	Jun. 27, 2020 USD ($)	Jun. 27, 2020 GBP (£)	Sep. 25, 2021 USD ($)	Sep. 26, 2020 USD ($)	Apr. 07, 2020 USD ($)
Defined Benefit Plan Disclosure
Contributions expected				$ 2,200				$ 2,200
Expected direct payments				3,800				3,800
Defined benefit plan expense				1,084	$ 983			3,296	$ 2,617
Estimated decrease in pension cost										$ 55,000
Estimated percent reduction in pension costs										37.00%
Benefit obligation, unamortized actuarial loss	$ (13,400)	£ 13.4
Cash contribution						$ 10,400	£ 8.4
Defined benefit pension plan and other adjustments
Defined Benefit Plan Disclosure
Benefit obligation, unamortized actuarial loss | £		£ 10.9
Forecast | Minimum
Defined Benefit Plan Disclosure
Estimated settlement charge			$ 18,000
Forecast | Maximum
Defined Benefit Plan Disclosure
Estimated settlement charge			$ 22,000
Foreign Plan
Defined Benefit Plan Disclosure
Defined benefit plan expense				600	500			1,600	1,500
Other comprehensive income as component of net period benefit cost, before tax				$ 200	$ 200			$ 500	$ 500

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Other Comprehensive (Loss) Income - Schedule of Components of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 25, 2021	Jun. 26, 2021	Mar. 27, 2021	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Sep. 25, 2021	Sep. 26, 2020
Other Comprehensive Income (Loss)
Pre-tax	$ (4,840)			$ 16,691			$ (4,162)	$ (2,970)
Tax	114			(290)			209	(2,555)
Total change in other comprehensive (loss) income	(4,954)	$ 5,454	$ (4,871)	16,981	$ (2,417)	$ (14,979)	(4,371)	(415)
Defined benefit pension plan and other adjustments
Other Comprehensive Income (Loss)
Pre-tax	601			273			1,479	(12,270)
Tax	114			(290)			209	(2,555)
Total change in other comprehensive (loss) income	487			563			1,270	(9,715)
Foreign currency translation adjustment
Other Comprehensive Income (Loss)
Pre-tax	(5,441)			16,418			(5,641)	9,300
Tax	0			0			0	0
Total change in other comprehensive (loss) income	$ (5,441)			$ 16,418			$ (5,641)	$ 9,300

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Other Comprehensive (Loss) Income - Narrative (Details) - Apr. 06, 2020 £ in Millions, $ in Millions	GBP (£)	USD ($)
Equity [Abstract]
Benefit obligation, unamortized actuarial loss	£ (13.4)	$ 13.4

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Other Comprehensive (Loss) Income - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 25, 2021	Jun. 26, 2021	Mar. 27, 2021	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Sep. 25, 2021	Sep. 26, 2020
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Balance	$ 1,742,220	$ 1,660,737	$ 1,608,773	$ 1,462,434	$ 1,476,948	$ 1,496,014	$ 1,608,773	$ 1,496,014
Other comprehensive loss, net of tax	(4,954)	5,454	(4,871)	16,981	(2,417)	(14,979)	(4,371)	(415)
Balance	1,821,398	1,742,220	1,660,737	1,529,562	1,462,434	1,476,948	1,821,398	1,529,562
Accumulated other comprehensive (loss)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Balance	(90,574)	(96,028)	(91,157)	(124,219)	(121,802)	(106,823)	(91,157)	(106,823)
Other comprehensive loss, net of tax	(4,954)	5,454	(4,871)	16,981	(2,417)	(14,979)
Balance	(95,528)	$ (90,574)	(96,028)	(107,238)	$ (124,219)	(121,802)	(95,528)	(107,238)
Defined benefit pension plan and other adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Balance			(34,141)			(18,046)	(34,141)	(18,046)
Other comprehensive loss, net of tax	487			563			1,270	(9,715)
Balance	(32,871)			(27,761)			(32,871)	(27,761)
Foreign currency translation adjustment
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Balance			$ (57,016)			$ (88,777)	(57,016)	(88,777)
Other comprehensive loss, net of tax	(5,441)			16,418			(5,641)	9,300
Balance	$ (62,657)			$ (79,477)			$ (62,657)	$ (79,477)

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Other Comprehensive (Loss) Income - Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2021	Sep. 26, 2020	Sep. 25, 2021	Sep. 26, 2020
Amortization of prior service and net actuarial loss | Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Amortization of prior service and net actuarial loss	$ 501	$ 452	$ 1,514	$ 1,226

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 25, 2021	Sep. 26, 2020	Jun. 27, 2020	Sep. 25, 2021	Sep. 26, 2020
Income Tax Disclosure [Abstract]
Effective tax rate (percent)	19.00%	17.90%		17.60%	23.10%
Facility Closing | Automotive
Income Tax
Goodwill impairment charge			$ 33.8

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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						9 Months Ended
	Sep. 25, 2021	Jun. 26, 2021	Mar. 27, 2021	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Sep. 25, 2021	Sep. 26, 2020
Numerator:
Net income as reported	$ 92,054	$ 82,095	$ 57,713	$ 55,356	$ (8,991)	$ 24,644	$ 231,862	$ 71,009
Weighted average shares outstanding
Basic (in shares)	24,622			24,357			24,582	24,354
Effect of dilutive securities (in shares)	304			216			322	181
Diluted (in shares)	24,926			24,573			24,904	24,535
Earnings Per Share:
Basic earnings per share (in dollars per share)	$ 3.74			$ 2.27			$ 9.43	$ 2.92
Diluted earnings per share (in dollars per share)	$ 3.69			$ 2.25			$ 9.31	$ 2.89

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Earnings Per Share - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 25, 2021	Sep. 26, 2020	Mar. 28, 2020	Sep. 25, 2021	Sep. 26, 2020	Apr. 28, 2021	Apr. 29, 2020	Apr. 26, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded (in shares)	57,936	290,262		32,773	194,857
Shares repurchased (in shares)	0			0	175,110
Repurchases of common stock			$ 22,927		$ 22,900
2019 Share Repurchase Program
Antidilutive Securities Excluded from Computation of Earnings Per Share
Repurchase authorized (in shares)								1,000,000
2020 Share Repurchase Program
Antidilutive Securities Excluded from Computation of Earnings Per Share
Repurchase authorized (in shares)						300,000,000	1,000,000

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Related Party Transactions (Details) - Equity Method Investee - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 25, 2021	Sep. 26, 2020	Sep. 25, 2021	Sep. 26, 2020	Dec. 26, 2020
Powersem
Related Party Transaction
Ownership percentage (percent)	45.00%		45.00%
Sales to related party	$ 0.0	$ 0.4	$ 0.2	$ 1.1
Purchase material/service from related party	0.8	0.8	2.6	1.8
Accounts receivable balance	0.0		0.0		$ 0.1
Accounts payable balance	$ 0.1		$ 0.1		0.1
EB Tech
Related Party Transaction
Ownership percentage (percent)	19.00%		19.00%
Sales to related party	$ 0.0	0.0	$ 0.0	0.0
Purchase material/service from related party	0.1	0.0	0.3	0.0
Accounts receivable balance	0.0		0.0		0.0
Accounts payable balance	$ 0.0		$ 0.0		0.0
ATEC
Related Party Transaction
Ownership percentage (percent)	24.00%		24.00%
Sales to related party	$ 0.0	0.0	$ 0.0	0.0
Purchase material/service from related party	3.1	$ 2.4	8.9	$ 5.8
Accounts receivable balance	0.0		0.0		0.0
Accounts payable balance	$ 2.1		$ 2.1		$ 0.2

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Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2021	Sep. 26, 2020	Sep. 25, 2021	Sep. 26, 2020
Segment Reporting Information
Net sales	$ 539,581	$ 391,566	$ 1,526,863	$ 1,044,999
Depreciation and amortization	24,636	24,329	73,049	71,865
Operating income	120,107	64,558	292,845	97,358
Interest expense	4,602	4,988	13,901	16,261
Foreign exchange loss (gain)	3,154	(6,174)	8,315	(9,600)
Other income, net	(1,240)	(1,682)	(10,867)	(1,643)
Income before income taxes	113,591	67,426	281,496	92,340
Electronics
Segment Reporting Information
Net sales	347,240	255,349	959,122	692,809
Depreciation and amortization	15,503	15,819	45,998	46,967
Electronics | Operating Segments
Segment Reporting Information
Operating income	100,524	45,860	230,283	110,783
Automotive
Segment Reporting Information
Net sales	124,415	104,724	386,262	271,493
Depreciation and amortization	7,075	7,370	21,094	21,628
Automotive | Operating Segments
Segment Reporting Information
Operating income	15,806	15,383	55,380	20,642
Industrial
Segment Reporting Information
Net sales	67,926	31,493	181,479	80,697
Depreciation and amortization	2,058	1,140	5,957	3,270
Industrial | Operating Segments
Segment Reporting Information
Operating income	6,571	4,898	18,452	8,409
Other | Corporate Non-Segment
Segment Reporting Information
Operating income	$ (2,794)	$ (1,583)	$ (11,270)	$ (42,476)

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Segment Information - Narrative (Details) $ in Thousands		3 Months Ended				9 Months Ended
	Jan. 28, 2021 USD ($)	Sep. 25, 2021 USD ($)	Sep. 26, 2020 USD ($)	Jun. 27, 2020 USD ($)	Mar. 28, 2020 USD ($)	Sep. 25, 2021 USD ($) segment	Sep. 26, 2020 USD ($)
Segment Reporting Information
Number of operating segments | segment						3
Acquisition related costs						$ 800
Restructuring charges		$ 772	$ 1,277			1,998	$ 4,826
Hartland Controls
Segment Reporting Information
Inventory adjustment	$ 6,800
IXYS
Segment Reporting Information
Restructuring charges			1,300				40,900
Operating Income (Loss) | IXYS
Segment Reporting Information
Acquisition related Costs and integration costs			300				1,600
Operating Income (Loss) | Corporate Non-Segment | Hartland Controls
Segment Reporting Information
Inventory adjustment						6,800
Other | Operating Income (Loss) | Hartland Controls
Segment Reporting Information
Acquisition related costs		2,000				3,400
Restructuring charges		800				2,000
Industrial
Segment Reporting Information
Restructuring charges		133	727			302	1,823
Electronics
Segment Reporting Information
Restructuring charges		542	388			1,094	2,125
Electronics | Hartland Controls
Segment Reporting Information
Gain (loss) on sale of properties						900
Automotive
Segment Reporting Information
Restructuring charges		97	162			602	878
Automotive | Senor Reporting Unit
Segment Reporting Information
Goodwill impairment charge			33,800
Automotive | IXYS
Segment Reporting Information
Other asset impairment charges					$ 2,200
Employee terminations
Segment Reporting Information
Restructuring charges		675	1,198			1,812	4,614
Employee terminations | IXYS
Segment Reporting Information
Restructuring charges			1,200				4,600
Employee terminations | Industrial
Segment Reporting Information
Restructuring charges		133	648			302	1,719
Employee terminations | Electronics
Segment Reporting Information
Restructuring charges		542	388			1,094	2,125
Employee terminations | Automotive
Segment Reporting Information
Restructuring charges		0	162			416	770
Facility Closing | Automotive
Segment Reporting Information
Goodwill impairment charge				$ 33,800
Other restructuring charges
Segment Reporting Information
Restructuring charges		97	79			186	212
Other restructuring charges | IXYS
Segment Reporting Information
Restructuring charges			100				200
Other restructuring charges | Industrial
Segment Reporting Information
Restructuring charges		0	79			0	104
Other restructuring charges | Electronics
Segment Reporting Information
Restructuring charges		0	0			0	0
Other restructuring charges | Automotive
Segment Reporting Information
Restructuring charges		$ 97	$ 0			$ 186	$ 108

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Segment Information - Revenues and Long-lived Assets by Geographical Area (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2021	Sep. 26, 2020	Sep. 25, 2021	Sep. 26, 2020	Dec. 26, 2020
Segment Reporting Information
Net sales	$ 539,581	$ 391,566	$ 1,526,863	$ 1,044,999
Long-lived assets	364,329		364,329		$ 344,178
Additions to long-lived assets			60,634	36,693
United States
Segment Reporting Information
Net sales	172,995	106,121	458,723	285,901
Long-lived assets	47,533		47,533		46,132
Additions to long-lived assets			3,696	2,712
China
Segment Reporting Information
Net sales	160,628	126,506	455,872	314,547
Long-lived assets	90,984		90,984		85,876
Additions to long-lived assets			13,790	6,414
Mexico
Segment Reporting Information
Long-lived assets	82,882		82,882		70,125
Additions to long-lived assets			22,518	7,291
Germany
Segment Reporting Information
Long-lived assets	40,115		40,115		37,976
Additions to long-lived assets			6,994	3,793
Philippines
Segment Reporting Information
Long-lived assets	68,594		68,594		66,994
Additions to long-lived assets			10,109	15,331
Other countries
Segment Reporting Information
Net sales	205,958	$ 158,939	612,268	444,551
Long-lived assets	$ 34,221		34,221		$ 37,075
Additions to long-lived assets			$ 3,527	$ 1,152

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Subsequent Events (Details) $ in Millions	Oct. 20, 2021 USD ($)
Subsequent Event | Carling Technologies, Inc. | Scenario, Plan
Subsequent Event [Line Items]
Cash	$ 315