0001039399-20-000011 | 10-K | XBRL Viewer

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Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 28, 2019
Accounting Policies [Abstract]
Fiscal Year	Fiscal YearOur fiscal year ends on the last Saturday in December.
Basis of Consolidation	Basis of Consolidation and Foreign Currency Translation The consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. On October 9, 2019, we completed the acquisition of FRT GmbH and, accordingly, our Consolidated Statements of Income include the results of operations of FRT GmbH since that date. See Note 4.
Foreign Currency Translation	The functional currencies of certain of our foreign subsidiaries are the local currencies and, accordingly, all assets and liabilities of these foreign operations are translated to U.S. Dollars at current period-end exchange rates, and revenues and expenses are translated to U.S. Dollars using average exchange rates in effect during the period. The gains and losses from the foreign currency translation of these subsidiaries' financial statements are included as a separate component of stockholders' equity on our Consolidated Balance Sheets under Accumulated other comprehensive income (loss). Certain other of our foreign subsidiaries use the U.S. Dollar as their functional currency. Accordingly, monetary assets and liabilities in non-functional currencies of these subsidiaries are remeasured using exchange rates in effect at the end of the period. Revenues and costs in local currency are remeasured using average exchange rates for the period, except for costs related to those balance sheet items that are remeasured using historical exchange rates. The resulting remeasurement gains and losses are included in the Consolidated Statements of Income as a component of Other income (expense), net as incurred.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Estimates may change as new information is obtained. We believe that the estimates, assumptions and judgments involved in revenue recognition, fair value of marketable securities, fair value of derivative financial instruments used to hedge both foreign currency and interest rate exposures, allowance for doubtful accounts, reserves for product warranty, valuation of obsolete and slow moving inventory, assets acquired and liabilities assumed in business combinations, legal contingencies, valuation of goodwill, the assessment of recoverability of long-lived assets, valuation and recognition of stock-based compensation, provision for income taxes and valuation of deferred tax assets have the greatest potential impact on our consolidated financial statements. Actual results could differ from those estimates.
Business Aquisitions	Business Acquisitions Our consolidated financial statements include the operations of acquired businesses after the completion of their respective acquisitions. We account for acquired businesses using the acquisition method of accounting, which requires, among other things, that assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date, and that the fair value of acquired intangibles be recorded on the balance sheet. Transaction costs are expensed as incurred. Any excess of the purchase price over the assigned fair values of the net assets acquired is recorded as goodwill.
Cash and Cash Equivalents	Cash and Cash Equivalents and Marketable SecuritiesCash and cash equivalents consist of deposits and financial instruments which are readily convertible into cash and have original maturities of 90 days or less at the time of acquisition.
Marketable Securities	Marketable securities consist primarily of highly liquid investments with maturities of greater than 90 days when purchased. We classify our marketable securities as available-for-sale and, accordingly, report them at fair value with the related unrealized gains and losses included in Accumulated other comprehensive income (loss) in our Consolidated Balance Sheets. Any unrealized losses which are considered to be other-than-temporary are recorded in Other income (expense), net, in the Consolidated Statements of Income. Realized gains and losses on the sale of marketable securities are determined using the specific-identification method and recorded in Other income (expense), net, in the Consolidated Statements of Income. All of our available-for-sale investments are subject to a periodic impairment review. We record a charge to earnings when a decline in fair value is significantly below cost basis and judged to be other-than-temporary, or have other indicators of impairments. If the fair value of an available-for-sale investment is less than its amortized cost basis, an other-than-temporary impairment is triggered in circumstances where (1) we intend to sell the instrument; (2) it is more likely than not that we will be required to sell the instrument before recovery of its amortized cost basis; or (3) a credit loss exists where we do not expect to recover the entire amortized cost basis of the instrument. If we intend to sell, or it is more likely than not that we will be required to sell, the available-for-sale investment before recovery of its amortized cost basis, we recognize an other-than-temporary impairment charge equal to the difference between the investment's amortized cost basis and its fair value.
Foreign Exchange Management	Foreign Exchange Management We transact business in various foreign currencies. We enter into forward foreign exchange contracts in an effort to mitigate the risks associated with currency fluctuations on certain foreign currency balance sheet exposures and certain operational costs denominated in local currency impacting our statement of income. For accounting purposes, certain of our foreign currency forward contracts are not designated as hedging instruments and, accordingly, we record the fair value of these contracts as of the end of our reporting period in our Consolidated Balance Sheets with changes in fair value recorded within Other income (expense), net in our Consolidated Statements of Income for both realized and unrealized gains and losses. Certain of our foreign currency forward contracts are designated as cash flow hedges, and, accordingly, we record the fair value of these contracts as of the end of our reporting period in our Consolidated Balance Sheets with changes in fair value recorded as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the same period in which the hedged transaction affects earnings, and in the same line item on the Consolidated Statements of Income as the impact of the hedge transaction. We do not use derivative financial instruments for trading or speculative purposes.
Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts The majority of our accounts receivable are derived from sales to large multinational semiconductor manufacturers throughout the world, are recorded at their invoiced amount and do not bear interest. In order to monitor potential credit losses, we perform ongoing credit evaluations of our customers' financial condition. An allowance for doubtful accounts is maintained based upon our assessment of the expected collectability of all accounts receivable. The allowance for doubtful accounts is reviewed and assessed for adequacy on a quarterly basis. We take into consideration (1) any circumstances of which we are aware of a customer's inability to meet its financial obligations and (2) our judgments as to prevailing economic conditions in the industry and their impact on our customers. If circumstances change, and the financial condition of our customers is adversely affected and they are unable to meet their financial obligations, we may need to take additional allowances, which would result in an increase in our operating expense.
Inventories	Inventories We state our inventories at the lower of cost (principally standard cost which approximates actual cost on a first in, first out basis) or net realizable value. We continually assess the value of our inventory and will periodically write down its value for estimated excess inventory and product obsolescence based upon an analysis of existing inventory quantities compared to estimated future consumption. Future consumption is estimated based upon assumptions about how past consumption, recent purchases, backlog and other factors indicate future consumption. On a quarterly basis, we review existing inventory quantities in comparison to our past consumption, recent purchases, backlog and other factors to determine what inventory quantities, if any, may not be sellable. Based on this analysis, we record an adjustment to the cost basis of inventory when evidence exists that the net realizable value of inventory is lower than its cost, which occurs when we have excess and/or obsolete inventory. Once the value is adjusted, the original cost of our inventory, less the related inventory write-down, represents the new cost basis. Reversal of these write downs is recognized only when the related inventory has been scrapped or sold. Shipping and handling costs are classified as a component of Cost of revenues in the Consolidated Statements of Income. We design, manufacture and sell a custom product into a market that has been subject to cyclicality and significant demand fluctuations. Many of our products are complex, custom to a specific chip design and have to be delivered on short lead-times. Probe cards are manufactured in low volumes, but, for certain materials, the purchases are often subject to minimum order quantities in excess of the actual underlying probe card demand. It is not uncommon for us to acquire production materials and commence production activities based on estimated production yields and forecasted demand prior to, or in excess of, actual demand for our probe cards. These factors result in normal recurring inventory valuation charges to Cost of revenues.
Restricted Cash	Restricted CashRestricted cash is comprised primarily of funds held by our foreign subsidiaries for employee obligations, office leases, customer deposits, and temporary customs import permits.
Property, Plant, and Equipment	Property, Plant, and Equipment Property, plant and equipment is stated at cost less accumulated depreciation and amortization. Depreciation is provided on a straight-line method. Machinery and equipment, computer equipment and software, and furniture and fixtures are depreciated over 1 to 5 years. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the related asset. Construction-in-progress assets are not depreciated until the assets are placed in service. Upon sale or retirement of assets, the cost and related accumulated depreciation or amortization are removed from the Consolidated Balance Sheets and the resulting gain or loss is reflected in Operating income in our Consolidated Statements of Income.
Goodwill	Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable assets acquired and liabilities assumed. Goodwill is not amortized, rather assessed, at least annually, for impairment at a reporting unit level. Impairment of goodwill exists when the carrying amount of a reporting unit exceeds its fair value. A goodwill impairment loss is recognized for the amount that the carrying amount of the reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. If the fair value of a reporting unit exceeds the carrying amount, goodwill of the reporting unit is not considered impaired. We evaluate impairment by first assessing qualitative factors to determine whether it is necessary to perform a quantitative impairment test. If we determine, as a result of the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative impairment test is required. Otherwise, no further testing is required. We perform our annual goodwill impairment test in the fourth quarter of each year by assessing qualitative factors, including, but not limited to an assessment of our market capitalization, which was significantly higher than our book value. Based on these tests, we determined that the quantitative impairment test was not required and no impairment charges were recorded in fiscal 2019, 2018 or 2017. The evaluation of goodwill for impairment requires the exercise of judgment. In the event of future changes in business conditions, we will be required to reassess and update our forecasts and estimates used in future impairment analysis. If the results of these analysis are lower than current estimates, a material impairment charge may result at that time.
Intangible Assets	Intangible Assets Intangible assets consist of acquisition related intangible assets and intellectual property. The intangible assets are being amortized over periods of 1 to 10 years, which reflect the pattern in which economic benefits of the assets are expected to be realized. We perform a review of intangible assets when facts and circumstances indicate that the useful life is shorter than originally estimated or that the carrying amount of assets may not be recoverable. Such facts and circumstances include significant adverse changes in the business climate or legal factors; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the intangible assets; and current expectation that the intangible assets will more likely than not be sold or disposed of before the end of their estimated useful lives. We assess the recoverability of identified intangible assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets We test long-lived assets or asset groups, such as property, plant and equipment and intangible assets, for recoverability when events or changes in circumstances indicate that their carrying amounts may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed of before the end of its estimated useful life. Recoverability is assessed based on the carrying amounts of the asset or asset group and the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value.
Concentration of Credit Risk and Other Risk and Uncertainties	Concentration of Credit Risk and Other Risks and UncertaintiesFinancial instruments that potentially subject us to concentrations of credit risk consist primarily of cash equivalents, marketable securities and accounts receivable. Our cash equivalents and marketable securities are held in safekeeping by large, credit worthy financial institutions. We invest our excess cash primarily in U.S. banks, government and agency bonds, money market funds and corporate obligations. We have established guidelines relative to credit ratings, diversification and maturities that seek to maintain safety and liquidity. Deposits in these banks may exceed the amounts of insurance provided on such deposits. To date, we have not experienced any losses on our deposits of cash and cash equivalents. We market and sell our products to a relatively narrow base of customers and generally do not require collateral.
Revenue Recognition	Revenue Recognition Revenue is recognized upon transferring control of products and services, and the amounts recognized reflect the consideration we expect to be entitled to receive in exchange for these products and services. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. An arrangement may include some or all of the following products and services: probe cards, systems, accessories, installation services, service contracts and extended warranty contracts. We sell our products and services direct to customers and to partners in two distribution channels: global direct sales force and through a combination of manufacturers’ representatives and distributors. We adopted Accounting Standards Codification ("ASC") Topic No. 606 effective on December 31, 2017, the first day of fiscal year 2018, using the modified retrospective method. We applied ASC 606 to all contracts not completed as of the date of adoption in order to determine any adjustment to the opening balance of accumulated deficit as of December 31, 2017. We did not restate any prior financial statements presented. No adjustment was recorded to accumulated deficit as of the adoption date and reported revenue would not have been different under legacy GAAP. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. In contracts with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligation is distinct within the context of the contract at contract inception. Performance obligations that are not distinct at contract inception are combined and accounted for as one unit of account. Generally, the performance obligations in a contract are considered distinct within the context of the contract and are accounted for as separate units of account. Our products may be customized to our customers’ specifications, however, control of our product is typically transferred to the customer at the point in time the product is either shipped or delivered, depending on the terms of the arrangement, as the criteria for overtime recognition is not met. In limited circumstances, substantive acceptance by the customer exists which results in the deferral of revenue until acceptance is formally received from the customer. Judgment may be required in determining if the acceptance clause is substantive. Installation services are routinely provided to customers purchasing our systems. Installation services are a distinct performance obligation apart from the systems and recognized in the period they are performed. Service contracts, which include repair and maintenance service contracts, and extended warranty contracts are also distinct performance obligations and recognized over the contractual service period, which ranges from one to three years. For these service contracts recognized over time, we use an input measure, days elapsed, to measure progress. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. In determining the transaction price, we evaluate whether the price is subject to refund or adjustment to determine the net consideration to which we expect to be entitled. We generally do not grant return privileges, except for defective products during the warranty period. Sales incentives and other programs that we may make available to these customers are considered to be a form of variable consideration, which is estimated in determining the contract’s transaction price to be allocated to the performance obligations. We have elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component as our standard payment terms are less than one year. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation based on its relative stand-alone selling price. The stand-alone selling prices are determined based on observable prices, which are the prices at which we separately sell these products. For items which do not have observable prices, we use our best estimate of the stand-alone selling prices. Transaction price allocated to the remaining performance obligations: On December 28, 2019, we had $4.1 million of remaining performance obligations, which were comprised of deferred service contracts and extended warranty contracts not yet delivered. We expect to recognize approximately 75.1% of our remaining performance obligations as revenue in fiscal 2020, approximately 15.0% in fiscal 2021, and approximately 9.9% in fiscal 2022 and thereafter. The foregoing excludes the value of remaining performance obligations that have original durations of one year or less, and also excludes information about variable consideration allocated entirely to a wholly unsatisfied performance obligation. Contract balances: The timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable is recorded at the invoiced amount, net of an allowance for doubtful accounts. A receivable is recognized in the period we deliver goods or provide services or when our right to consideration is unconditional. A contract asset is recorded when we have performed under the contract but our right to consideration is conditional on something other than the passage of time. Contract assets as of December 28, 2019 and December 29, 2018 were $0.9 million and $0.3 million, respectively, and are reported on the Consolidated Balance Sheets as a component of Prepaid expenses and other current assets. Contract liabilities include payments received in advance of performance under a contract and are satisfied as the associated revenue is recognized. Contract liabilities are reported on the Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period as a component of Deferred revenue and Other liabilities. Contract liabilities totaled $10.8 million and $5.7 million at December 28, 2019 and December 29, 2018, respectively. During fiscal 2019, we recognized $4.2 million of revenue that was included in contract liabilities as of December 29, 2018. Costs to obtain a contract: We generally expense sales commissions when incurred as a component of Selling, general and administrative expense as the amortization period is typically less than one year. Revenue by Category: Refer to Note 15 for further details.
Warranty Obligations	Warranty Obligations We offer warranties on certain products and record a liability for the estimated future costs associated with warranty claims at the time revenue is recognized. The warranty liability is based upon historical experience and our estimate of the level of future costs. While we engage in product quality programs and processes, our warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. We continuously monitor product returns for warranty and maintain a reserve for the related expenses based upon our historical experience and any specifically identified field failures. As we sell new products to our customers, we must exercise considerable judgment in estimating the expected failure rates. This estimating process is based on historical experience of similar products, as well as various other assumptions that we believe to be reasonable under the circumstances. We provide for the estimated cost of product warranties at the time revenue is recognized. Warranty costs are reflected in the Consolidated Statement of Income as a Cost of revenues.
Research and Development	Research and Development Research and development expenses include expenses related to product development, engineering and material costs. All research and development costs are expensed as incurred.
Income Taxes	Income Taxes We utilize the asset and liability method of accounting for income taxes, under which deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse and for operating losses and tax credit carryforwards. We estimate our provision for income taxes and amounts ultimately payable or recoverable in numerous tax jurisdictions around the world. Estimates involve interpretations of regulations and are inherently complex. Resolution of income tax treatments in individual jurisdictions may not be known for many years after completion of any fiscal year. We are required to evaluate the realizability of our deferred tax assets on an ongoing basis to determine whether there is a need for a valuation allowance with respect to such deferred tax assets. A valuation allowance is recorded when it is more likely than not that some or all of the deferred tax assets will not be realized. In evaluating the ability to recover deferred tax assets, we consider all available positive and negative evidence giving greater weight to our recent cumulative income, our historical ability to utilize net operating losses in recent years and our forecast of future taxable income, including the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. We recognize and measure uncertain tax positions taken or expected to be taken in a tax return if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized are then measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. We report a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. We adjust these reserves in light of changing facts and circumstances, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate, as well as the related net interest. We recognize interest and penalties related to unrecognized tax benefits within the income tax provision. Accrued interest and penalties are included within the related tax liability in the Consolidated Balance Sheets. We file annual income tax returns in multiple taxing jurisdictions around the world. A number of years may elapse before an uncertain tax position is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, we believe that our related liability reflects the most likely outcome. We adjust the liability, as well as the related interest, in light of changing facts and circumstances. Settlement of any particular position could require the use of cash. See Note 13 for additional information, including the Tax Cuts and Jobs Act enacted in December 2017.
Stock-based Compensation	Stock-Based Compensation We recognize compensation expense for all stock-based awards based on the grant-date estimated fair values, net of an estimated forfeiture rate. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service periods in our Consolidated Statements of Income. The fair value of stock options is measured using the Black-Scholes option pricing model, while the fair value for restricted stock units ("RSUs") is measured based on the closing market price of our common stock on the date of grant. The fair value of Performance RSUs ("PRSU") is based on certain market performance criteria is measured using the Monte Carlo simulation pricing model. See Notes 11 and 12 for additional information.
Net Loss Per Share	Net Income Per ShareBasic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed giving effect to all potentially dilutive common stock and common stock equivalents, including stock options, RSUs and common stock subject to repurchase.
Fair Value Measurement	Whenever possible, the fair values of our financial assets and liabilities are determined using quoted market prices of identical securities or quoted market prices of similar securities from active markets. The three levels of inputs that may be used to measure fair value are as follows: •Level 1 valuations are obtained from real-time quotes for transactions in active exchange markets involving identical securities; •Level 2 valuations utilize significant observable inputs, such as quoted prices for similar assets or liabilities, quoted prices near the reporting date in markets that are less active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 valuations utilize unobservable inputs to the valuation methodology and include our own data about assumptions market participants would use in pricing the asset or liability based on the best information available under the circumstances. We did not have any transfers of assets or liabilities measured at fair value on a recurring basis to or from Level 1, Level 2 or Level 3 during fiscal 2019, 2018 or 2017. The carrying values of Cash, Accounts receivable, net, Restricted cash, Prepaid expenses and other current assets, Accounts payable, Accrued liabilities, and short-term Term loan approximate fair value due to their short maturities. No changes were made to our valuation techniques during fiscal 2019. Cash Equivalents The fair value of our cash equivalents is determined based on quoted market prices for similar or identical securities. Marketable Securities We classify our marketable securities as available-for-sale and value them utilizing a market approach. Our investments are priced by pricing vendors who provide observable inputs for their pricing without applying significant judgment. Broker pricing is used mainly when a quoted price is not available, the investment is not priced by our pricing vendors or when a broker price is more reflective of fair value. Our broker-priced investments are categorized as Level 2 investments because fair value is based on similar assets without applying significant judgments. In addition, all of our investments have a sufficient level of trading volume to demonstrate that the fair value is appropriate. Contingent Consideration Contingent consideration, arising from the acquisition of FRT (see Note 4), is a cash amount equal to 1.5x EBIT as defined in the purchase agreement, up to a maximum of €10.3 million, payable subject to the performance of the acquired business in calendar 2020. We estimated the fair value of contingent consideration using a probability weighted approach. Key assumptions in determining the fair value of contingent consideration include estimating the probability of achieving certain EBIT levels and discounting at an appropriate discount rate. There was no change in the value of contingent consideration since the acquisition of FRT and as of December 28, 2019.
New Accounting Pronouncements	New Accounting Pronouncements

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Current assets:
Cash and cash equivalents	$ 144,545	$ 98,472
Marketable securities	76,327	50,531
Accounts receivable, net	97,868	95,333
Inventories, net	83,258	77,706
Restricted cash	1,981	849
Prepaid expenses and other current assets	15,064	14,929
Total current assets	419,043	337,820
Restricted cash	1,411	1,225
Property, plant and equipment, net	58,747	54,054
Goodwill	199,196	189,214
Intangibles, net	57,610	67,640
Deferred tax assets	71,252	77,301
Other assets	1,203	968
Total assets	839,882	728,222
Current liabilities:
Accounts payable	40,914	40,006
Accrued liabilities	36,439	27,731
Current portion of term loans, net of unamortized issuance cost of $29 and $160	42,846	29,840
Deferred revenue	9,810	4,941
Total current liabilities	136,560	102,518
Term loan, less current portion, net of unamortized issuance cost of $0 and $29	15,639	34,971
Deferred tax liabilities	6,986	2,355
Other liabilities	10,612	8,214
Total liabilities	198,885	148,058
Commitments and Contingencies
Stockholders' equity:
10,000,000 shares authorized; no shares issued and outstanding	0	0
250,000,000 shares authorized; 75,764,990 and 74,139,712 shares issued and outstanding	76	74
Additional paid-in capital	885,821	862,897
Accumulated other comprehensive income (loss)	(659)	780
Accumulated deficit	(244,241)	(283,587)
Total stockholders' equity	640,997	580,164
Total liabilities and stockholders' equity	839,882	728,222
Right-of-use assets	31,420	0
Operating Lease, Liability, Current	6,551	0
Operating Lease, Liability, Noncurrent	$ 29,088	$ 0

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 39,346	$ 104,036	$ 40,913
Other comprehensive income (loss), net of tax:
Translation adjustments and other	(1,028)	(1,902)	6,764
Unrealized gains (losses) on available-for-sale marketable securities	316	(8)	(206)
Unrealized gains (losses) on derivative instruments	(727)	(331)	203
Other comprehensive income (loss), net of tax	(1,439)	(2,241)	6,761
Comprehensive income	$ 37,907	$ 101,795	$ 47,674

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 25, 2021	Dec. 26, 2020	Dec. 28, 2019	Dec. 29, 2018
Disaggregation of Revenue [Line Items]
Remaining performance obligations				$ 4.1
Contract assets				0.9	$ 0.3
Contract liabilities				10.8	5.7
Revenue recognized on contract liabilities				$ 4.2	$ 4.8
Minimum
Disaggregation of Revenue [Line Items]
Revenue recognition period				1 year
Maximum
Disaggregation of Revenue [Line Items]
Revenue recognition period				3 years
Scenario, Forecast
Disaggregation of Revenue [Line Items]
Remaining performance obligations expected to be recognized	9.90%	15.00%	75.10%

Goodwill and Intangible Assets - Goodwill (Details) - USD ($)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 189,214,000	$ 189,920,000	$ 188,010,000
Foreign currency translation	10,148,000
Goodwill, gross, as of December 30, 2017	(166,000)	(706,000)	1,910,000
Goodwill, ending balance	199,196,000	189,214,000	189,920,000
Goodwill impairments	0
Probe Cards
Goodwill [Roll Forward]
Goodwill, beginning balance	172,482,000	172,482,000	172,482,000
Foreign currency translation	0
Goodwill, gross, as of December 30, 2017	0	0	0
Goodwill, ending balance	172,482,000	172,482,000	172,482,000
Systems
Goodwill [Roll Forward]
Goodwill, beginning balance	16,732,000	17,438,000	15,528,000
Foreign currency translation	10,148,000
Goodwill, gross, as of December 30, 2017	(166,000)	(706,000)	1,910,000
Goodwill, ending balance	$ 26,714,000	$ 16,732,000	$ 17,438,000

Formation and Business of the Company	12 Months Ended
Formation and Business of the Company	Dec. 28, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Formation and Business of the Company	Formation and Nature of Business FormFactor, Inc. was incorporated in Delaware on April 15, 1993 and is headquartered in Livermore, California. We are a leading provider of electrical test and measurement technologies. We provide a broad range of high-performance probe cards, analytical probes, probe stations, metrology systems, and thermal sub-systems to both semiconductor companies and scientific institutions. Our products provide electrical and optical metrology information from a variety of semiconductor and electro-optical devices and integrated circuits from research, to development through production. Customers use our products and services to lower production costs, improve yields, and enable development of complex next generation products. We believe our technology leadership enables critical roadmap advances for our customers. We also design, develop, manufacture and market advanced wafer probing and thermal solutions for the electrical and optical measurement and testing of high performance semiconductor devices. Design, development and manufacturing operations are located in Beaverton, Oregon, United States and Bergisch Gladbach, Munich and Thiendorf, Germany, and sales, service and support operations are located in the United States, Germany, France, South Korea, Japan, Taiwan, China and Singapore. Fiscal Year Our fiscal year ends on the last Saturday in December. The fiscal years ended on December 28, 2019, December 29, 2018 and December 30, 2017 each consisted of 52 weeks, respectively. Reclassifications Certain immaterial reclassifications were made to the prior year financial statements to conform to the current year presentation.

Leases - Components of Lease Expense (Details) $ in Thousands	12 Months Ended
	Dec. 28, 2019 USD ($)
Leases [Abstract]
Operating lease expense	$ 6,985
Short-term lease expense	142
Variable lease expense	1,286
Lease, Cost	$ 8,413

Stockholders' Equity - Preferred Stock (Details) - $ / shares	Dec. 28, 2019	Dec. 29, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Preferred stock authorized (in shares)	10,000,000	10,000,000
Preferred stock par value (in USD per share)	$ 0.001	$ 0.001
Preferred Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Preferred stock authorized (in shares)	10,000,000
Preferred stock par value (in USD per share)	$ 0.001

Summary of Significant Accounting Policies - Property, Plant, and Equipment (Details)	12 Months Ended
	Dec. 28, 2019
Machinery and Equipment \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant, and equipment useful lives	1 year
Machinery and Equipment \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant, and equipment useful lives	5 years
Computer Equipment and Software \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant, and equipment useful lives	1 year
Computer Equipment and Software \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant, and equipment useful lives	5 years
Furniture and Fixtures \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant, and equipment useful lives	1 year
Furniture and Fixtures \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant, and equipment useful lives	5 years

Stockholders' Equity - Equity Incentive Plans (Details) - Equity Incentive Plan	12 Months Ended
	Dec. 28, 2019 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance (in shares)	15,000,000.0
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant (in shares)	4,600,000
Stock option vesting period	3 years
Term of options granted	7 years
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option vesting period	3 years

Debt - Future Principle and Interest Payments (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Debt Instrument [Line Items]
Principal, 2020	$ 42,838
Principal, 2021	7,838
Principal, 2022	7,838
Principal, total	58,514	$ 65,000
Interest, 2020	777
Interest, 2021	155
Interest, 2022	47
Interest, total	979
Total payments, 2020	43,615
Total payments, 2021	7,993
Total payments, 2022	7,885
Long-Term Debt, Maturities, Total Payments Due	$ 59,493
FRT Term Loan [Member]
Debt Instrument [Line Items]
Stated rate	1.35%
CMI Term Loan [Member]
Debt Instrument [Line Items]
Stated rate	3.71%

Stock-Based Compensation - Valuation Assumptions (Details) - Employee Stock	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%	0.00%	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	36.60%	44.85%	46.20%
Risk-free interest rate	2.04%	0.83%	0.65%
Expected term (in years)	6 months	6 months	6 months
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	59.51%	48.94%	46.33%
Risk-free interest rate	2.46%	2.22%	1.15%
Expected term (in years)	1 year	1 year	1 year

Income Taxes - Tax Credits and Carryforwards (Details) $ in Thousands	Dec. 28, 2019 USD ($)
California
Operating Loss Carryforwards [Line Items]
Research credits	$ 39,228
Singapore
Operating Loss Carryforwards [Line Items]
Singapore net operating loss carryforwards	8,340
Federal
Operating Loss Carryforwards [Line Items]
Federal research and development tax credit	37,494
Net operating loss carryforwards	14,589
Foreign tax credit carryforwards	1,134
Alternative minimum tax credits	195
State
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 243,934

Stock-Based Compensation - Stock-based compensation details (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date per share fair value of RSUs granted	$ 15.12	$ 13.79	$ 13.20
Total intrinsic value of stock options exercised	$ 1,814	$ 631	$ 5,946
Fair value of RSUs vested	$ 23,450	$ 17,541	$ 18,339

Summary of Significant Accounting Policies - Warranty Obligations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Movement in Standard Product Warranty Accrual [Roll Forward]
Warranty Accrual beginning balance	$ 2,102	$ 3,662	$ 2,972
Accruals	3,881	3,181	8,115
Settlements	(4,041)	(4,741)	(7,425)
Warranty Accrual ending balance	$ 1,942	$ 2,102	$ 3,662

Leases - Schedule of Future Minimum Payments Due Under Prior Lease Guidance (Details) $ in Thousands	Dec. 29, 2018 USD ($)
Leases [Abstract]
2019	$ 6,256
2020	6,522
2021	5,742
2022	4,786
2023	4,355
Thereafter	20,382
Operating Leases, Future Minimum Payments Due	$ 48,043

Derivative Financial Instruments

12 Months Ended

Dec. 28, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Foreign Exchange Derivative Contracts

We operate and sell our products in various global markets. As a result, we are exposed to changes in foreign currency exchange rates. We utilize foreign currency forward contracts to hedge against future movements in foreign exchange rates that affect certain existing foreign currency denominated assets and liabilities and forecasted foreign currency revenue and expense transactions. Under this program, our strategy is to have increases or decreases in our foreign currency exposures mitigated by gains or losses on the foreign currency forward contracts in order to mitigate the risks and volatility associated with foreign currency transaction gains or losses.

We do not use derivative financial instruments for speculative or trading purposes. For accounting purposes, certain of our foreign currency forward contracts are not designated as hedging instruments and, accordingly, we record the fair value of these contracts as of the end of our reporting period in our Consolidated Balance Sheets with changes in fair value recorded within Other income (expense), net in our Consolidated Statements of Income for both realized and unrealized gains and losses. Certain of our foreign currency forward contracts are designated as cash flow hedges, and, accordingly, we record the fair value of these contracts as of the end of our reporting period in our Consolidated Balance Sheets with changes in fair value recorded as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the same period in which the hedged transaction affects earnings, and in the same line item on the Consolidated Statements of Income as the impact of the hedge transaction. At December 28, 2019, we expect to reclassify $0.1 million of the amount accumulated in other comprehensive income (loss) to earnings during the next 12 months, due to the recognition in earnings of the hedged forecasted transactions.

The fair value of our foreign exchange derivative contracts was determined based on current foreign currency exchange rates and forward points. All of our foreign exchange derivative contracts outstanding at December 28, 2019 will mature by the third quarter of fiscal 2020.

The following table provides information about our foreign currency forward contracts outstanding as of December 28, 2019 (in thousands):


Currency	Contract Position	Contract Amount (Local Currency)	Contract Amount (U.S. Dollars)


Euro	Buy	(3,367)	$	(3,932)
Japanese Yen	Sell	2,553,864	23,343
Korean Won	Buy	(2,669,885)	(2,304)


Total USD notional amount of outstanding foreign exchange contracts			$	17,107

Our foreign currency contracts are classified within Level 2 of the fair value hierarchy as they are valued using pricing models that utilize observable market inputs.

The location and amount of gains (losses) related to non-designated derivative instruments in the Consolidated Statements of Income were as follows (in thousands):


	Location of Gain (Loss) Recognized on Derivatives	Fiscal Year Ended
Derivatives Not Designated as Hedging Instruments				December 28, 2019			December 29, 2018			December 30, 2017
Foreign exchange forward contracts	Other income (expense), net	$	248		$	906		$	(2,505)

The location and amount of gains (losses) related to derivative instruments designated as cash flow hedges on our Consolidated Statements of Income was as follows (in thousands):


	Amount of Loss Recognized in Accumulated OCI on Derivative		Location of Loss Reclassified from Accumulated OCI into Income	Amount of Loss Reclassified from Accumulated OCI into Income
Fiscal 2019	$	93	Cost of revenues	$	526
			Research and development	75
			Selling, general and administrative	172
				$	773

Fiscal 2018	$	—		$	—

Interest Rate Swaps

Pursuant to our interest rate and risk management strategy, during fiscal 2016 we entered into an interest rate swap agreement with HSBC and other lenders to hedge the interest payments on the Term Loan for the notional amount of $95.6 million. As future levels of LIBOR over the life of the loan are uncertain, we entered into these interest-rate swap agreements to hedge the exposure in interest rate risks associated with the movement in LIBOR rates. By entering into the agreements, we convert a floating rate interest at one-month LIBOR plus 2.00% into a fixed rate interest at 2.94%. As of December 28, 2019, the notional amount of the loan that is subject to this interest rate swap was $22.5 million. See Note 5 for additional information.

For accounting purposes, the interest-rate swap contracts qualify for and are designated as cash flow hedges. All hedging relationships are formally documented, and the hedges are designed to offset changes to future cash flows on hedged transactions. We evaluate hedge effectiveness at hedge inception and on an ongoing basis. Amounts expected to be reclassified from Other comprehensive income (loss) into earnings in the next twelve months were insignificant at December 28, 2019.

The fair value of our interest rate swap contracts is determined at the end of each reporting period based on valuation models that use interest rate yield curves as inputs. For accounting purposes, our interest rate swap contracts qualify for, and are designated as, cash flow hedges. The cash flows associated with the interest rate swaps are reported in Net cash provided by operating activities in our Consolidated Statements of Cash Flows.

The estimated fair value of the interest rate swaps as of December 28, 2019 and December 29, 2018 was reported as a derivative asset of approximately $0.1 million and $0.9 million, respectively, within Prepaid expenses and other current assets and Other assets in our Consolidated Balance Sheets.

The impact of the interest rate swaps on the Consolidated Statements of Income was as follows (in thousands):


	Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)		Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)		Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion )	Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion )
Fiscal 2019	$	(86)	Other income (expense), net	$	548	Other income (expense), net	$	—
Fiscal 2018	$	340	Other income (expense), net	$	721	Other income (expense), net	$	—
Fiscal 2017	$	287	Other income (expense), net	$	84	Other income (expense), net	$	29

See also Note 8.

Income Taxes (Tables)

12 Months Ended

Dec. 28, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Loss Before Income Taxes

The components of income before income taxes were as follows (in thousands):


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
United States	$	41,115	$	20,877	$	31,492
Foreign	9,948		13,050		10,714
	$	51,063	$	33,927	$	42,206

Schedule of Components of Provision for Income Taxes

The components of the provision (benefit) for income taxes are as follows (in thousands):


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
Current provision (benefit):
Federal	$	179	$	79	$	(2,130)
State	2,302		388		17
Foreign	4,202		4,687		4,069
	6,683		5,154		1,956
Deferred provision (benefit):
Federal	8,128		(72,295)		66
State	(1,898)		(2,056)		—
Foreign	(1,196)		(912)		(729)
	5,034		(75,263)		(663)
Total provision (benefit) for income taxes	$	11,717	$	(70,109)	$	1,293

Schedule of Effective Income Tax Rate Reconciliation

The following is a reconciliation of the difference between income taxes computed by applying the federal statutory rate of 21% and the provision (benefit) from income taxes for fiscal 2019 and 2018 and applying the federal statutory rate of 35% and the provision for income taxes for 2017 (in thousands):


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
U.S. statutory federal tax rate	$	10,723	$	7,125	$	14,772
State taxes, net of federal benefit	441		778		951
Stock-based compensation	(911)		(453)		(1,428)
Research and development credits	(6,436)		(3,213)		(1,979)
Foreign taxes at rates different than the U.S.	1,454		1,287		(271)
Other permanent differences	(148)		152		160
Global intangible low-taxed income	1,369		1,828		—
Mandatory deemed repatriation	—		—		1,655
Change in valuation allowance	2,567		(75,803)		(12,207)
Other	2,658		(1,810)		(360)
Total	$	11,717	$	(70,109)	$	1,293

Schedule of Deferred Tax Assets and Liabilities

Significant deferred tax assets and liabilities consisted of the following (in thousands):


	As of
	December 28, 2019		December 29, 2018
Tax credits	$	44,696	$	39,586
Inventory reserve	12,350		10,850
Other reserves and accruals	5,852		5,398
Non-statutory stock options	2,982		2,722
Depreciation and amortization	27,758		1,979
Net operating loss carryforwards	21,410		61,275
Gross deferred tax assets	115,048		121,810
Valuation allowance	(36,604)		(34,037)
Total deferred tax assets	78,444		87,773
Acquired intangibles and fixed assets	(13,997)		(12,667)
Unrealized investment gains	(106)		(107)
Tax on undistributed earnings	(75)		(53)
Total deferred tax liabilities	(14,178)		(12,827)
Net deferred tax assets	$	64,266	$	74,946

Summary of Tax Credit Carryforwards

Tax credits and carryforwards available to us at December 28, 2019 consisted of the following (in thousands):


	Amount		Latest Expiration Date
Federal research and development tax credit	$	37,494	2021-2039
Federal net operating loss carryforwards	14,589		2031-2035
Foreign tax credit carryforwards	1,134		2020-2027
Alternative minimum tax credits	195		Indefinite
California research credits	39,228		Indefinite

State net operating loss carryforwards	243,934		2024-2036

Singapore net operating loss carryforwards	$	8,340	Indefinite

Schedule of Unrecognized Tax Benefits

The following table reflects changes in the unrecognized tax benefits (in thousands):


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
Unrecognized tax benefit, beginning balance	$	25,224	$	18,296	$	17,978
Additions based on tax positions related to the current year	3,679		1,677		694
Additions based on tax positions from prior years	—		5,332		—
Reductions for tax positions of prior years	(5)		(7)		—
Reductions due to lapse of the applicable statute of limitations	(98)		(74)		(376)
Unrecognized tax benefit, ending balance	$	28,800	$	25,224	$	18,296

Interest and penalties recognized as a component of Provision (benefit) for income taxes	$	59	$	71	$	67
Interest and penalties accrued at period end	212		230		218

Leases - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Leases - Narrative (Details) - USD ($) $ in Thousands	Dec. 29, 2018	Dec. 30, 2017	Dec. 28, 2019	Dec. 30, 2018
Lessee, Lease, Description [Line Items]
Lease liabilities				$ 40,000
Right-of-use assets	$ 0		$ 31,420	$ 35,700
Operating lease, renewal term			20 years
Operating lease, weighted average remaining lease term			7 years
Operating lease, weighted average discount rate			4.70%
Rent expense	$ 8,400	$ 7,900
Minimum
Lessee, Lease, Description [Line Items]
Operating lease, term of contract			1 year
Automobiles \| Minimum
Lessee, Lease, Description [Line Items]
Operating lease, term of contract			1 year
Automobiles \| Maximum
Lessee, Lease, Description [Line Items]
Operating lease, term of contract			4 years

Leases

12 Months Ended

Dec. 29, 2018

Leases [Abstract]

Leases

Adoption of New Accounting Standards

ASU 2016-02, ASU 2018-10, ASU 2018-11 and ASU 2019-01

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, "Leases (Topic 842)," which requires the recognition of right-of-use assets and lease liabilities for all long-term leases, including operating leases, on the balance sheet. ASU 2016-02 was amended in July 2018 by both ASU 2018-10, "Codification Improvements to Topic 842, Leases," and ASU 2018-11, "Leases (Topic 842): Targeted Improvements" and in March 2019 by ASU 2019-01, "Leases (Topic 842): Codification Improvements." ASU 2016-02, provides additional guidance on the measurement of the right-of-use assets and lease liabilities and requires enhanced disclosures about our leasing arrangements. Topic 842 replaced the prior existing lease accounting rules under Accounting Standards Codification 840, "Leases (Topic 840)."

We adopted Topic 842 and all related amendments on December 30, 2018, the first day of fiscal 2019, using the modified transition approach. The modified transition approach permits a company to use its effective date as the date of initial application to apply the standard to its leases, and, therefore, not restate comparative prior period financial information. Consequently, prior period financial information is not updated, and the disclosures required under the new standard will not be provided for dates and periods before December 30, 2018.

The standard provides several optional practical expedients in transition. We elected the "package of practical expedients," which permits us to not reassess, under the new standard, our prior conclusions about lease identification, lease classification and initial direct costs. We did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to us. The new standard also provides practical expedients for an entity’s ongoing accounting. We elected the short-term lease recognition exemption. This means, for those leases that qualify, we will not recognize a right-of-use asset or lease liability, and this includes not recognizing right-of-use assets or lease liabilities for existing short-term leases of those assets in transition. We also elected the practical expedient to not separate lease and non-lease components for all our leases. The adoption of the lease standard did not have any effect on our previously reported Consolidated Statements of Income and did not result in a cumulative catch-up adjustment to opening equity.

Upon adoption, we recognized operating lease liabilities of approximately $40.0 million based on the present value of the remaining minimum rental payments. We also recognized corresponding operating lease, right-of-use-assets of approximately $35.7 million, net of deferred rent, which is classified separately in our Consolidated Balance Sheets.

These operating lease, right-of-use assets relate to real estate space under non-cancelable operating lease agreements for commercial and industrial space, as well as for our corporate headquarters located in Livermore, California. Our leases have remaining terms of 1 to 15 years, and some leases include options to extend up to 20 years. We also have operating leases for automobiles with remaining lease terms of 1 to 4 years. We did not include any of our renewal options in our lease terms for calculating our lease liability as the renewal options allow us to maintain operational flexibility and we are not reasonably certain we will exercise these options at this time. The weighted-average remaining lease term for our operating leases was 7 years at December 28, 2019 and the weighted-average discount rate was 4.70% based on our incremental borrowing rate as of the adoption date of Topic 842.

The components of lease expense for the year ended December 28, 2019 upon the adoption of ASC 842 were as follows (in thousands):


	Lease Expense
Operating lease expense	$	6,985
Short-term lease expense	142
Variable lease expense	1,286
	$	8,413

Rent expense under prior lease accounting rules (Topic 840) for fiscal 2018 and 2017 was $8.4 million and $7.9 million, respectively.

Future minimum payments under our non-cancelable operating leases under the new lease accounting rules (Topic 842) were as follows as of December 28, 2019 (in thousands):


Fiscal Year	Amount
2020	$	7,387
2021	6,647
2022	5,477
2023	4,937
2024	4,770
Thereafter	22,165
Total minimum lease payments	51,383
Less: interest	(15,744)
Present value of net minimum lease payments	35,639
Less: current portion	(6,551)
Total long-term operating lease liabilities	$	29,088

Future minimum payments under our non-cancelable operating leases under prior lease accounting rules (Topic 840) were as follows as of December 29, 2018 (in thousands):


Fiscal Year	Amount
2019	$	6,256
2020	6,522
2021	5,742
2022	4,786
2023	4,355
Thereafter	20,382
	$	48,043

Summary of Significant Accounting Policies - Intangibles (Details)	12 Months Ended
	Dec. 28, 2019
Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible asset weighted average useful life	1 year
Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible asset weighted average useful life	10 years

Summary of Significant Accounting Policies - Comprehensive Loss (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Accounting Policies [Abstract]
Unrealized losses on available-for-sale marketable securities	$ (352)	$ (668)
Translation adjustments and other	53	1,081
Unrealized gains (losses) on derivative instruments	(360)	367
Accumulated other comprehensive income (loss)	$ (659)	$ 780

- Definition

Accumulated adjustment, net of tax, that results from the process of translating subsidiary financial statements and foreign equity investments into the reporting currency from the functional currency of the reporting entity, net of reclassification of realized foreign currency translation gains or losses.

+ References + Details

Segments and Geographic Information - Operating Results By Segment (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 28, 2019 USD ($)	Sep. 28, 2019 USD ($)	Jun. 29, 2019 USD ($)	Mar. 30, 2019 USD ($)	Dec. 29, 2018 USD ($)	Sep. 29, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 28, 2019 USD ($) segment	Dec. 29, 2018 USD ($)	Dec. 30, 2017 USD ($)
Segment Reporting [Abstract]
Number of reportable segments \| segment									2
Segment Reporting Information [Line Items]
Revenues	$ 178,629	$ 140,604	$ 138,018	$ 132,213	$ 140,887	$ 134,989	$ 135,509	$ 118,290	$ 589,464	$ 529,675	$ 548,441
Gross profit	$ 74,305	$ 55,318	$ 55,352	$ 52,521	$ 56,022	$ 52,970	$ 56,218	$ 45,129	$ 237,496	$ 210,339	$ 215,597
Gross margin									40.30%	39.70%	39.30%
Probe Cards
Segment Reporting Information [Line Items]
Revenues									$ 491,363	$ 434,269	$ 454,794
Systems
Segment Reporting Information [Line Items]
Revenues									98,101	95,406	93,647
Operating Segments \| Probe Cards
Segment Reporting Information [Line Items]
Revenues									491,363	434,269	454,794
Gross profit									$ 211,382	$ 187,320	$ 195,903
Gross margin									43.00%	43.10%	43.10%
Operating Segments \| Systems
Segment Reporting Information [Line Items]
Revenues									$ 98,101	$ 95,406	$ 93,647
Gross profit									$ 50,927	$ 47,074	46,647
Gross margin									51.90%	49.30%
Corporate and Other
Segment Reporting Information [Line Items]
Revenues									$ 0	$ 0	0
Gross profit									$ (24,813)	$ (24,055)	$ (26,953)
Gross margin									0.00%	0.00%	0.00%

Balance Sheet Components - Marketable Securities (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Debt Securities, Available-for-sale [Abstract]
Amortized Cost	$ 76,231	$ 50,753
Gross Unrealized Gains	123	2
Gross Unrealized Losses	(27)	(224)
Fair Value	76,327	50,531
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract]
Due in one year or less - Amortized Cost	38,899	35,269
Due in one year to five years - Amortized Cost	37,332	15,484
Amortized Cost	76,231	50,753
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract]
Due in one year or less - Fair Value	38,944	35,172
Due in one year to five years - Fair Value	37,383	15,359
Fair Value	76,327	50,531
U.S. Treasuries
Debt Securities, Available-for-sale [Abstract]
Amortized Cost	10,458	7,997
Gross Unrealized Gains	11	1
Gross Unrealized Losses	0	(1)
Fair Value	10,469	7,997
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract]
Amortized Cost	10,458	7,997
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract]
Fair Value	10,469	7,997
Commercial paper
Debt Securities, Available-for-sale [Abstract]
Amortized Cost	3,914	2,296
Gross Unrealized Gains	1	0
Gross Unrealized Losses	(4)	(1)
Fair Value	3,911	2,295
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract]
Amortized Cost	3,914	2,296
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract]
Fair Value	3,911	2,295
Corporate bonds
Debt Securities, Available-for-sale [Abstract]
Amortized Cost	33,867	30,833
Gross Unrealized Gains	68	1
Gross Unrealized Losses	(7)	(160)
Fair Value	33,928	30,674
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract]
Amortized Cost	33,867	30,833
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract]
Fair Value	33,928	30,674
Certificates of deposit
Debt Securities, Available-for-sale [Abstract]
Amortized Cost	3,584	960
Gross Unrealized Gains	5	0
Gross Unrealized Losses	0	(3)
Fair Value	3,589	957
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract]
Amortized Cost	3,584	960
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract]
Fair Value	3,589	957
Agency securities (Federal)
Debt Securities, Available-for-sale [Abstract]
Amortized Cost	24,408	8,667
Gross Unrealized Gains	38	0
Gross Unrealized Losses	(16)	(59)
Fair Value	24,430	8,608
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract]
Amortized Cost	24,408	8,667
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract]
Fair Value	$ 24,430	$ 8,608

Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balance at beginning of year	$ 185	$ 200	$ 299
Charges (reversals) to costs and expenses	37	(15)	(99)
Balance at end of year	$ 222	$ 185	$ 200

Acquisition - Intangible Assets Acquired (Details) - USD ($) $ in Thousands	Oct. 09, 2019	Dec. 30, 2017
Cascade Microtech
Business Acquisition [Line Items]
Total intangible assets		$ 17,550
FRT
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 10,148
Total intangible assets	$ 17,550
Intangible asset weighted average useful life	7 years
Developed technologies \| FRT
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 12,626
Intangible asset weighted average useful life	8 years
Customer relationships \| FRT
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 3,071
Intangible asset weighted average useful life	6 years
Backlog \| FRT
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 1,645
Intangible asset weighted average useful life	6 months
Trade name \| FRT
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 208
Intangible asset weighted average useful life	2 years

Derivative Financial Instruments - Interest Rate Swaps (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016	Jul. 25, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Notional Amount				$ 95,600
Interest Rate Swap
Derivative Instruments, Gain (Loss) [Line Items]
Derivative asset	$ 26	$ 871
Interest Rate Swap \| Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Derivative asset	100	900
Interest Rate Swap \| Designated as Hedging Instrument \| Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)	(86)	340	$ 287
Interest Rate Swap \| Other income (expense), net \| Designated as Hedging Instrument \| Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	548	721	84
Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion )	0	$ 0	$ 29
Senior Secured Term Loan
Derivative Instruments, Gain (Loss) [Line Items]
Fixed interest rate, derivative					2.94%
Derivative, Notional Amount	$ 22,500
LIBOR \| Senior Secured Term Loan
Derivative Instruments, Gain (Loss) [Line Items]
Derivative variable rate basis spread					2.00%

Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Quarterly Financial Data [Abstract]
Revenues	$ 178,629	$ 140,604	$ 138,018	$ 132,213	$ 140,887	$ 134,989	$ 135,509	$ 118,290	$ 589,464	$ 529,675	$ 548,441
Cost of revenues	104,324	85,286	82,666	79,692	84,865	82,019	79,291	73,161	351,968	319,336	332,844
Gross profit	74,305	55,318	55,352	52,521	56,022	52,970	56,218	45,129	237,496	210,339	215,597
Operating expenses:
Research and development	21,606	20,096	20,074	19,723	18,398	18,857	19,675	18,046	81,499	74,976	73,807
Selling, general and administrative	28,981	25,887	26,283	25,184	25,828	24,745	25,232	23,449	106,335	99,254	95,489
Total operating expenses	50,587	45,983	46,357	44,907	44,226	43,602	44,907	41,495	187,834	174,230	169,296
Operating income	23,718	9,335	8,995	7,614	11,796	9,368	11,311	3,634	49,662	36,109	46,301
Interest income	726	724	684	580	404	369	326	257	2,714	1,356	548
Interest expense	(376)	(422)	(522)	(595)	(660)	(777)	(910)	(967)	(1,915)	(3,314)	(4,491)
Other income (expense), net	379	226	81	(84)	117	121	50	(512)	602	(224)	(152)
Income before income taxes	24,447	9,863	9,238	7,515	11,657	9,081	10,777	2,412	51,063	33,927	42,206
Provision (benefit) for income taxes	5,811	1,584	2,290	2,032	(73,443)	1,393	1,654	287	11,717	(70,109)	1,293
Net income	$ 18,636	$ 8,279	$ 6,948	$ 5,483	$ 85,100	$ 7,688	$ 9,123	$ 2,125	$ 39,346	$ 104,036	$ 40,913
Net income per share:
Basic (in USD per share)	$ 0.25	$ 0.11	$ 0.09	$ 0.07	$ 1.15	$ 0.10	$ 0.12	$ 0.03	$ 0.52	$ 1.42	$ 0.57
Diluted (in USD per share)	$ 0.24	$ 0.11	$ 0.09	$ 0.07	$ 1.13	$ 0.10	$ 0.12	$ 0.03	$ 0.51	$ 1.38	$ 0.55
Weighted-average number of shares used in per share calculations:
Basic (in shares)	75,731	75,280	74,478	74,362	74,108	73,837	73,157	72,826	74,994	73,482	72,292
Diluted (in shares)	78,055	77,291	76,189	76,009	75,416	74,962	74,533	74,342	77,286	75,182	74,239
Condensed Income Statements, Captions [Line Items]
Decrease in valuation allowance					$ (75,800)					$ 75,800
Benefit for income taxes	$ (5,811)	$ (1,584)	$ (2,290)	$ (2,032)	$ 73,443	$ (1,393)	$ (1,654)	$ (287)	$ (11,717)	$ 70,109	$ (1,293)

Stock-Based Compensation - Stock-based Compensation Expense (Details) - Employee Stock - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation, net of tax	$ 23,176	$ 17,827	$ 16,339
Cost of revenues
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restructuring and impairment charges, net	4,055	3,525	3,539
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restructuring and impairment charges, net	6,367	5,398	5,341
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restructuring and impairment charges, net	$ 12,754	$ 8,904	$ 7,459

Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Accounting Policies [Abstract]
Aggregate inventory write downs	$ 10,421	$ 10,479	$ 9,259

Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Current provision (benefit):
Federal									$ 179	$ 79	$ (2,130)
State									2,302	388	17
Foreign									4,202	4,687	4,069
Total current provision (benefit)									6,683	5,154	1,956
Deferred provision (benefit):
Federal									8,128	(72,295)	66
State									(1,898)	(2,056)	0
Foreign									(1,196)	(912)	(729)
Total deferred provision (benefit)									5,034	(75,263)	(663)
Income Tax Expense (Benefit), Total	$ 5,811	$ 1,584	$ 2,290	$ 2,032	$ (73,443)	$ 1,393	$ 1,654	$ 287	$ 11,717	$ (70,109)	$ 1,293

Employee Benefit Plans (Details) $ in Millions	12 Months Ended
Employee Benefit Plans (Details) $ in Millions	Dec. 28, 2019 USD ($) plan	Dec. 29, 2018 USD ($)	Dec. 30, 2017 USD ($)
Retirement Benefits [Abstract]
Number of benefit plans \| plan	1,000
Cost recognized under defined contribution plans \| $	$ 2.1	$ 2.0	$ 1.9

Derivative Financial Instruments - Foreign Currency Derivatives (Details) € in Thousands, ₩ in Thousands, ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 28, 2019 USD ($)	Dec. 29, 2018 USD ($)	Dec. 30, 2017 USD ($)	Dec. 28, 2019 EUR (€)	Dec. 28, 2019 JPY (¥)	Dec. 28, 2019 KRW (₩)
Derivatives, Fair Value [Line Items]
Cash flow hedge amount to be reclassified within twelve months	$ 100
Not Designated as Hedging Instrument \| Foreign Exchange Forward
Derivatives, Fair Value [Line Items]
Total USD notional amount of outstanding foreign exchange contracts	17,107
Not Designated as Hedging Instrument \| Foreign Exchange Forward \| Other income (expense), net
Derivatives, Fair Value [Line Items]
Foreign exchange forward contracts	248	$ 906	$ (2,505)
Short [Member] \| Not Designated as Hedging Instrument \| Foreign Exchange Forward \| Euro
Derivatives, Fair Value [Line Items]
Derivative Liability, Notional Amount	3,932			€ 3,367
Short [Member] \| Not Designated as Hedging Instrument \| Foreign Exchange Forward \| Japanese Yen
Derivatives, Fair Value [Line Items]
Derivative asset contract amount	23,343				¥ 2,553,864
Short [Member] \| Not Designated as Hedging Instrument \| Foreign Exchange Forward \| Korean Won
Derivatives, Fair Value [Line Items]
Derivative Liability, Notional Amount	$ 2,304					₩ 2,669,885

Income Taxes - Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Income Tax Disclosure [Abstract]
Federal statutory rate									21.00%
Income Tax Reconciliation
U.S. statutory federal tax rate									$ 10,723	$ 7,125	$ 14,772
State taxes, net of federal benefit									441	778	951
Stock-based compensation									(911)	(453)	(1,428)
Research and development credits									(6,436)	(3,213)	(1,979)
Foreign taxes at rates different than the U.S.									1,454	1,287	(271)
Other permanent differences									(148)	152	160
Global intangible low-taxed income									1,369	1,828	0
Mandatory deemed repatriation									0	0	1,655
Change in valuation allowance									2,567	(75,803)	(12,207)
Other									2,658	(1,810)	(360)
Income Tax Expense (Benefit), Total	$ 5,811	$ 1,584	$ 2,290	$ 2,032	$ (73,443)	$ 1,393	$ 1,654	$ 287	$ 11,717	$ (70,109)	$ 1,293

Stockholders' Equity - Stock Options (Details)	12 Months Ended
Stockholders' Equity - Stock Options (Details)	Dec. 28, 2019 USD ($) $ / shares shares
Additional Disclosures
Weighted Average Remaining Contractual Life, Outstanding	2 years 1 month 28 days
Weighted Average Remaining Contractual Life, Exercisable	2 years 1 month 28 days
Equity Incentive Plan
Number of Shares
Number of Shares, Outstanding (in shares) \| shares	524,725
Number of Shares, Options exercised (in shares) \| shares	(162,956)
Number of Shares, Outstanding (in shares) \| shares	361,769
Weighted Average Exercise Price
Weighted Average Exercise Price, Outstanding (in USD per share) \| $ / shares	$ 8.00
Weighted Average Exercise Price, Options exercised (in USD per share) \| $ / shares	7.21
Weighted Average Exercise Price, Outstanding (in USD per share) \| $ / shares	$ 8.35
Vested and Expected to Vest
Number of Shares, Vested and expected to vest (in shares) \| shares	361,769
Weighted Average Exercise Price, Vested and expected to vest (in USD per share) \| $ / shares	$ 8.35
Aggregate Intrinsic Value, Vested and expected to vest \| $	$ 6,400,367
Additional Disclosures
Number of Shares, Exercisable (in shares) \| shares	361,769
Weighted Average Exercise Price, Exercisable (in USD per share) \| $ / shares	$ 8.35
Aggregate Intrinsic Value, Outstanding \| $	$ 6,400,367
Aggregate Intrinsic Value, Exercisable \| $	$ 6,400,367

Acquisition

12 Months Ended

Dec. 28, 2019

Business Combinations [Abstract]

Acquisition

AcquisitionOn October 9, 2019, we acquired 100% of the shares of FRT GmbH ("FRT"), a German-based company, for total consideration of $25.9 million, net of cash acquired of $1.7 million. The fair value of the purchase consideration was comprised of a $22.2 million cash payment and $5.4 million of contingent consideration. The contingent consideration is a cash amount equal to 1.5x Earnings Before Interest and Tax ("EBIT") as defined in the purchase agreement, from a minimum of zero up to a maximum of €10.3 million, payable subject to the performance of the acquired business in calendar 2020. We estimated the fair value of contingent consideration using a probability weighted approach. Key assumptions in determining the fair value of contingent

consideration include estimating the probability of achieving certain EBIT levels and discounting at an appropriate discount rate. This acquisition strengthens our leadership in test and measurement by expanding our addressable market into 3D hybrid surface metrology and extending the optical applications scope of our existing Systems segment.

The acquisition was accounted for using the acquisition method of accounting, with FormFactor treated as the acquirer. The acquired assets and liabilities of FRT were recorded at their respective fair values including an amount for goodwill representing the difference between the acquisition consideration and the fair value of the identifiable net assets.

During fiscal 2019, we incurred approximately $0.5 million in transaction costs related to the acquisition, which primarily consisted of legal, accounting and valuation-related expenses. These expenses were recorded in Selling, general and administrative expense in the accompanying Consolidated Statements of Income.

Our Consolidated Statements of Income include the financial results of FRT subsequent to the acquisition date of October 9, 2019. Revenue related to FRT since the acquisition date that was included in our Consolidated Statements of Income for fiscal 2019 was approximately $3.9 million.

Separate from the purchase agreement, we entered into a term loan agreement with a lender for an aggregate amount of $23.4 million to finance the acquisition. See Note 5 for additional information.

The acquisition price was allocated to the tangible and identified intangible assets acquired and liabilities assumed as of the closing date of the acquisition based upon their respective fair values. The fair values assigned to assets acquired and liabilities assumed were based on management’s assumptions as of the reporting date. We have not yet finalized the purchase accounting as certain amounts are preliminary, specifically related to the valuation of intangible assets, and due to ongoing validation of acquired tangible assets and liabilities. The amounts reported below and in the Consolidated Statements of Income and Consolidated Balance Sheets represent our best estimate of the fair value based on information available to us at this time.

The table below summarizes the estimated fair value of assets acquired and liabilities assumed following the adjustments mentioned above (in thousands) as of the acquisition date:


	Amount
Cash and cash equivalents	$	1,683
Accounts receivable	3,057
Inventory	2,643
Property, plant and equipment	696
Operating lease, right-of-use-assets	335
Prepaid expenses and other current assets	838
Tangible assets acquired	9,252
Customer deposits	(2,013)
Accounts payable and accrued liabilities	(1,235)
Operating lease liabilities	(335)
Deferred tax liabilities	(5,796)

Total tangible assets acquired and liabilities assumed	(127)
Intangible assets	17,550
Goodwill	10,148
Net assets acquired	$	27,571

The intangible assets as of the closing date of the acquisition included (in thousands):


	Amount		Weighted Average Useful Life (in years)
Developed technologies	$	12,626	8.0
Customer relationships	3,071		6.0
Order backlog	1,645		0.5
Trade names	208		2.0

Total intangible assets	$	17,550	7.0

Indications of fair value of the intangible assets acquired in connection with the acquisition were determined using either the income, market or replacement cost methodologies. The intangible assets are being amortized over periods which reflect the pattern in which economic benefits of the assets are expected to be realized.

Identifiable Intangible Assets

Valuation of intangible assets involves multiple assumptions. The key assumptions are described below.

Developed technology acquired primarily consists of existing technology related to hybrid 3D surface metrology measurement equipment. We valued the developed technology using the multi-period excess earnings method under the income approach. Using this approach, the estimated fair values were calculated using expected future cash flows from specific products discounted to their net present values at an appropriate risk-adjusted rate of return.

Customer relationships represent the fair value of future projected revenues that will be derived from the sale of products to FRT's existing customers. We valued customer relationships using the incremental cash flow method. This method estimates value based on the incremental cash flow afforded by having the customers relationships in place on the acquisition date versus having no relationships in place and needing to replicate or replace those relationships. The incremental cash flows are then discounted to a present value to arrive at an estimate of fair value for this asset class.

Order backlog represents business under existing contractual obligations. Expected cash flow from order backlog was valued on a direct cash flow basis.

The identified trade names intangibles relate to the estimated fair value of future cash flows related to the FRT brand. We valued trade names by applying the relief-from-royalty method under the income approach. This method is based on the application of a royalty rate to forecasted revenue under the trade name.

Goodwill

The excess of purchase price over the fair value assigned to the assets acquired and liabilities assumed represents the amount of goodwill resulting from the acquisition. We believe the factors that contributed to goodwill include synergies that are specific to our consolidated business, such as cost savings and operational efficiencies, and the acquisition of a talented workforce that expands our expertise in business development and commercializing semiconductor test products, none of which qualify for recognition as a separate intangible asset. We do not expect any portion of this goodwill to be deductible for tax purposes. The goodwill attributable to the acquisition was recorded as a non-current asset and is not amortized, but is subject to an annual review for impairment.

The goodwill arising from the acquisition was allocated to the FRT reporting unit within the Systems reportable segment.

We have not presented unaudited combined pro forma financial information as the FRT acquisition was not significant to our consolidated results of operations and financial position.

Income Taxes - Undistributed Earnings (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Income Tax Contingency [Line Items]
Repatriation of earnings of foreign subsidiaries	$ 26,100
Deferred tax liabilities on undistributed earnings	75	$ 53	$ 66
Non-US
Income Tax Contingency [Line Items]
Repatriation of earnings of foreign subsidiaries	12,000
United States
Income Tax Contingency [Line Items]
Repatriation of earnings of foreign subsidiaries	$ 14,100

Fair Value (Details) - USD ($)	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	$ 76,327,000	$ 50,531,000
Total assets	93,450,000	52,586,000
Liabilities measured at fair value	5,604,000	0
Contingent consideration	(5,364,000)
Foreign exchange derivative contract
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative contracts	41,000
Derivative Liability	240,000
Interest rate swap derivative contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative contracts	26,000	871,000
Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	17,056,000	1,184,000
U.S. Treasuries
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	10,468,000	7,997,000
Certificates of deposit
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	3,590,000	957,000
Agency securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	24,430,000	8,608,000
Corporate bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	33,928,000	30,674,000
Commercial paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	3,911,000	2,295,000
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	10,468,000	7,997,000
Total assets	27,524,000	9,181,000
Liabilities measured at fair value	0
Contingent consideration	0
Level 1 \| Foreign exchange derivative contract
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative contracts	0
Derivative Liability	0
Level 1 \| Interest rate swap derivative contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative contracts	0	0
Level 1 \| Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	17,056,000	1,184,000
Level 1 \| U.S. Treasuries
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	10,468,000	7,997,000
Level 1 \| Certificates of deposit
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	0	0
Level 1 \| Agency securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	0	0
Level 1 \| Corporate bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	0	0
Level 1 \| Commercial paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	0	0
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	65,859,000	42,534,000
Total assets	65,926,000	43,405,000
Liabilities measured at fair value	240,000
Contingent consideration	0
Level 2 \| Foreign exchange derivative contract
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative contracts	41,000
Derivative Liability	240,000
Level 2 \| Interest rate swap derivative contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative contracts	26,000	871,000
Level 2 \| Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0	0
Level 2 \| U.S. Treasuries
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	0	0
Level 2 \| Certificates of deposit
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	3,590,000	957,000
Level 2 \| Agency securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	24,430,000	8,608,000
Level 2 \| Corporate bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	33,928,000	30,674,000
Level 2 \| Commercial paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	3,911,000	2,295,000
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities measured at fair value	(5,364,000)
Contingent consideration	(5,364,000)
Nonrecurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets (liabilities), net	$ 0	$ 0	$ 0

Goodwill and Intangible Assets - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Indefinite-lived Intangible Assets [Line Items]
Impairment of intangible assets	$ 0	$ 0

Summary of Significant Accounting Policies - Net Loss per Share (Details) - shares shares in Thousands	3 Months Ended								12 Months Ended
	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Accounting Policies [Abstract]
Weighted-average shares used in computing basic net loss per share (in shares)	75,731	75,280	74,478	74,362	74,108	73,837	73,157	72,826	74,994	73,482	72,292
Add potentially dilutive securities (in shares)									2,292	1,700	1,947
Weighted-average shares used in computing basic and diluted net loss per share (in shares)	78,055	77,291	76,189	76,009	75,416	74,962	74,533	74,342	77,286	75,182	74,239

Debt (Tables)

12 Months Ended

Dec. 28, 2019

Debt Disclosure [Abstract]

Schedule of Debt

Our debt consisted of the following (in thousands):


	December 28, 2019		December 29, 2018
Term loans	$	58,514	$	65,000
Less unamortized issuance costs	(29)		(189)
Term loans less issuance costs	$	58,485	$	64,811

Schedule of Maturities of Long-term Debt

Future principal and interest payments on our term loans as of December 28, 2019, based on the interest rate in effect at that date were as follows (in thousands):


	Payments Due In Fiscal Year
	2020		2021		2022		Total



Term loans - principal payments	$	42,838	$	7,838	$	7,838	$	58,514
Term loans - interest payments⁽¹⁾	777		155		47		979
Total	$	43,615	$	7,993	$	7,885	$	59,493

⁽¹⁾ Represents our minimum interest payment commitments at 1.35% per annum for the FRT Term Loan and 3.71% per annum for the CMI Term Loan.

New Accounting Pronouncements (Notes)	12 Months Ended
New Accounting Pronouncements (Notes)	Dec. 28, 2019
Accounting Policies [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements

Stock-Based Compensation - Unrecognized Stock-Based Compensation (Details) $ in Thousands	12 Months Ended
	Dec. 28, 2019 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation - non-options	$ 30,895
Weighted Average Recognition Period (Years)	1 year 10 months 24 days
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation - non-options	$ 24,038
Weighted Average Recognition Period (Years)	1 year 10 months 24 days
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation - non-options	$ 287
Weighted Average Recognition Period (Years)	1 month 6 days
Performance Restricted Stock Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation - non-options	$ 6,570
Weighted Average Recognition Period (Years)	2 years

Segments and Geographic Information - Long-Lived Assets by Geographical Location (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Long-Lived Assets [Line Items]
Long-lived assets	$ 346,973	$ 310,908	$ 334,158
United States
Long-Lived Assets [Line Items]
Long-lived assets	287,600	280,405	299,574
Japan
Long-Lived Assets [Line Items]
Long-lived assets	52,309	26,118	30,922
Asia-Pacific
Long-Lived Assets [Line Items]
Long-lived assets	$ 7,064	$ 4,385	$ 3,662

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 28, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Goodwill by reportable segment was as follows (in thousands):


	Probe Cards		Systems		Total
Goodwill, gross, as of December 31, 2016	$	172,482	$	15,528	$	188,010
Foreign currency translation	—		1,910		1,910
Goodwill, gross, as of December 30, 2017	172,482		17,438		189,920
Foreign currency translation	—		(706)		(706)
Goodwill, gross, as of December 29, 2018	172,482		16,732		189,214
Additions - FRT GmbH acquisition	—		10,148		10,148
Foreign currency translation	—		(166)		(166)
Goodwill, gross, as of December 28, 2019	$	172,482	$	26,714	$	199,196

Schedule of Finite-lived Intangible Assets

Intangible assets were as follows (in thousands):


	December 28, 2019										December 29, 2018
Other Intangible Assets	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Existing developed technologies	$	154,951	$	116,138	$	38,813	$	143,408	$	97,111	$	46,297
Trade name	7,816		6,976		840		12,023		9,173		2,850
Customer relationships	44,229		27,057		17,172		40,146		21,653		18,493
Backlog	1,676		891		785		—		—		—
	$	208,672	$	151,062	$	57,610	$	195,577	$	127,937	$	67,640

Schedule of Amortization Expense

Amortization expense was included in our Consolidated Statements of Income as follows (in thousands):


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
Cost of revenues	$	20,036	$	20,530	$	22,800
Selling, general and administrative	7,636		8,843		8,140
	$	27,672	$	29,373	$	30,940

Schedule of Remaining Estimated Amortization Expense

The estimated future amortization of intangible assets is as follows (in thousands):


Fiscal Year	Amount
2020	$	26,270
2021	14,739
2022	5,553
2023	3,813
2024	2,073
Thereafter	5,162
Total	$	57,610

Document and Entity Information Document - USD ($)	12 Months Ended
Document and Entity Information Document - USD ($)	Dec. 28, 2019	Feb. 14, 2020	Jun. 29, 2019
Cover page.
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 28, 2019
Document Transition Report	false
Entity File Number	000-50307
Entity Registrant Name	FormFactor, Inc.
Entity Central Index Key	0001039399
Amendment Flag	false
Current Fiscal Year End Date	--12-28
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	13-3711155
Entity Address, Address Line One	7005 Southfront Road
Entity Address, City or Town	Livermore
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94551
City Area Code	925
Local Phone Number	290-4000
Title of 12(b) Security	Common stock, $0.001 par value
Trading Symbol	FORM
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
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 Public Float			$ 546,284,970
Entity Common Stock, Shares Outstanding (in shares)		76,148,088
Documents Incorporated by Reference	Portions of the registrant's definitive Proxy Statement for the 2020 Annual Meeting of Stockholders, which will be filed within 120 days of the end of the registrant's fiscal year ended December 28, 2019, are incorporated by reference in Part III hereof. Except with respect to information specifically incorporated by reference in this Annual Report on Form 10-K, the Proxy Statement is not deemed to be filed as a part of this Annual Report on Form 10-K.

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Dec. 28, 2019
Retirement Benefits [Abstract]
Employee Benefit Plans	Employee Benefit PlansWe have an employee savings plan that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. The plan is designed to provide employees with an accumulation of funds for retirement on a tax-deferred basis and provide for annual discretionary employer contributions. The total charge to net Income under the 401(k) plan for fiscal 2019, 2018 and 2017 aggregated $2.1 million, $2.0 million and $1.9 million, respectively.

Balance Sheet Components

12 Months Ended

Dec. 28, 2019

Balance Sheet Components [Abstract]

Balance Sheet Components

Marketable Securities

Marketable securities consisted of the following (in thousands):


December 28, 2019	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasuries	$	10,458	$	11	$	—	$	10,469
Commercial paper	3,914		1		(4)		3,911
Corporate bond	33,867		68		(7)		33,928
Certificate of deposit	3,584		5		—		3,589
Agency securities	24,408		38		(16)		24,430
	$	76,231	$	123	$	(27)	$	76,327


December 29, 2018	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasuries	$	7,997	$	1	$	(1)	$	7,997
Commercial paper	2,296		—		(1)		2,295
Corporate bond	30,833		1		(160)		30,674
Certificate of deposit	960		—		(3)		957
Agency securities	8,667		—		(59)		8,608
	$	50,753	$	2	$	(224)	$	50,531

We classify our marketable securities as available-for-sale. All marketable securities represent the investment of funds available for current operations, notwithstanding their contractual maturities. Such marketable securities are recorded at fair value and unrealized gains and losses are recorded in Accumulated other comprehensive income (loss) until realized.

We typically invest in highly-rated securities with low probabilities of default. Our investment policy requires investments to be rated single A or better, limits the types of acceptable investments, concentration as to security holder and duration of the investment. The gross unrealized gains and losses in fiscal 2019 and 2018 were caused primarily by changes in interest rates.

The longer the duration of marketable securities, the more susceptible they are to changes in market interest rates and bond yields. As yields increase, those securities with a lower yield-at-cost show a mark-to-market unrealized loss. We anticipate recovering the full cost of the securities either as market conditions improve, or as the securities mature. Accordingly, we believe that the unrealized losses are not other-than-temporary. When evaluating the investments for other-than-temporary impairment, we review factors such as the length of time and extent to which fair value has been below the amortized cost basis, current market liquidity, interest rate risk, the financial condition of the issuer, and credit rating downgrades. As of December 28, 2019 and December 29, 2018, gross unrealized losses related to our marketable securities portfolio were not material.

The contractual maturities of marketable securities were as follows (in thousands):


	December 28, 2019						December 29, 2018
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	38,899	$	38,944	$	35,269	$	35,172
Due after one year to five years	37,332		37,383		15,484		15,359
	$	76,231	$	76,327	$	50,753	$	50,531

See also Note 8.

Inventories, net

Inventories consisted of the following (in thousands):


	December 28, 2019		December 29, 2018
Raw materials	$	38,528	$	43,380
Work-in-progress	29,720		20,431
Finished goods	15,010		13,895
	$	83,258	$	77,706

Property, Plant and Equipment, net

Property, plant and equipment, net consisted of the following (in thousands):


	December 28, 2019		December 29, 2018
Machinery and equipment	$	201,861	$	192,108
Computer equipment and software	35,192		32,906
Furniture and fixtures	6,756		6,478
Leasehold improvements	76,081		75,285
Sub-total	319,890		306,777
Less: Accumulated depreciation and amortization	(273,001)		(263,102)
Net property, plant and equipment	46,889		43,675
Construction-in-progress	11,858		10,379
Total	$	58,747	$	54,054

Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):


	December 28, 2019		December 29, 2018
Accrued compensation and benefits	$	21,329	$	15,600
Accrued employee stock purchase plan contributions withheld	3,331		3,174
Accrued warranty	1,942		2,102
Accrued income and other taxes	6,846		4,222
Other accrued expenses	2,991		2,633
	$	36,439	$	27,731

Commitments and Contingencies - Operating Leases (Details) $ in Thousands	Dec. 29, 2018 USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2019	$ 6,256
2020	6,522
2021	5,742
2022	4,786
2023	4,355
Thereafter	20,382
Operating Leases, Future Minimum Payments Due, Total	$ 48,043

New Accounting Pronouncements (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 30, 2018	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Cash and Cash Equivalents, at Carrying Value	$ 144,545		$ 98,472
Restricted Cash and Cash Equivalents, Current	1,981		849
Restricted Cash and Cash Equivalents, Noncurrent	1,411		1,225
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	147,937		100,546	$ 92,726	$ 102,596
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right-of-use assets	$ 31,420	$ 35,700	$ 0
Lease liabilities		$ 40,000

CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Statement of Financial Position [Abstract]
Current unamortized debt issuance costs	$ 29	$ 160
Noncurrent unamortized debt issuance costs	$ 0	$ 29
Preferred stock par value (in USD per share)	$ 0.001	$ 0.001
Preferred stock authorized (in shares)	10,000,000	10,000,000
Preferred stock issued (in shares)	0	0
Preferred stock outstanding (in shares)	0	0
Common stock, par value (in USD per share)	$ 0.001	$ 0.001
Common stock authorized (in shares)	250,000,000	250,000,000
Common stock outstanding (in shares)	75,764,990	74,139,712

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Cash flows from operating activities:
Net income	$ 39,346	$ 104,036	$ 40,913
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	17,185	14,314	13,626
Amortization	27,672	29,373	30,940
Amortization (accretion) of discount on investments	(365)	(10)	38
Reduction in the carrying amount of right-of-use assets	5,269	0	0
Stock-based compensation expense	23,176	17,827	16,339
Amortization of debt issuance costs	160	390	619
Deferred income tax provision (benefit)	4,954	(74,908)	(590)
Benefit for doubtful accounts receivable	0	0	(99)
Provision for excess and obsolete inventories	10,421	10,479	9,259
Acquired inventory step-up amortization	465	0	569
Loss on disposal of long-lived assets	486	325	510
Foreign currency transaction losses (gains)	408	125	(1,717)
Loss (gain) on derivative instruments	110	0	(10)
Changes in assets and liabilities:
Accounts receivable	481	(13,830)	(10,651)
Inventories	(14,295)	(21,298)	(15,635)
Prepaid expenses and other current assets	230	1,204	457
Other assets	(441)	707	61
Accounts payable	(27)	3,050	741
Accrued liabilities	7,517	(6,219)	872
Other liabilities	166	3,109	111
Deferred revenues	3,130	26	(30)
Operating lease liabilities	(5,000)	0	0
Net cash provided by operating activities	121,048	68,700	86,323
Cash flows from investing activities:
Acquisition of property, plant and equipment	(20,847)	(19,869)	(17,756)
Acquisition of FRT GmbH, net of cash acquired	(20,524)	0	0
Proceeds from sale of subsidiary	132	94	68
Proceeds from sale of property and property, plant and equipment	0	23	0
Purchases of marketable securities	(76,327)	(30,566)	(50,733)
Proceeds from maturities of marketable securities	51,214	29,023	8,996
Net cash used in investing activities	(66,352)	(21,295)	(59,425)
Cash flows from financing activities:
Proceeds from issuances of common stock	8,093	7,712	19,510
Purchase and retirement of common stock	0	0	(18,970)
Tax withholdings related to net share settlements of equity awards	(8,025)	(5,791)	(6,885)
Proceeds from term loan	23,354	0	0
Payments on term loan	(30,000)	(41,250)	(33,125)
Net cash used in financing activities	(6,578)	(39,329)	(39,470)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(727)	(256)	2,702
Net increase (decrease) in cash, cash equivalents and restricted cash	47,391	7,820	(9,870)
Cash, cash equivalents and restricted cash, beginning of year	100,546	92,726	102,596
Cash, cash equivalents and restricted cash, end of year	147,937	100,546	92,726
Supplemental disclosure of non-cash investing and financing activities:
Operating lease, right-of-use assets obtained in exchange for lease obligations	36,709	0	0
Contingent consideration payable related to FRT acquisition	5,364	0	0
Change in accounts payable and accrued liabilities related to property, plant and equipment purchases	866	2,290	(33)
Supplemental disclosure of cash flow information:
Income taxes paid, net	4,324	4,576	3,172
Cash paid for interest	$ 1,405	$ 3,113	$ 3,836

Acquisition (Tables)

12 Months Ended

Dec. 28, 2019

Business Combinations [Abstract]

Schedule of Assets Acquired and Liabilities Assumed

The table below summarizes the estimated fair value of assets acquired and liabilities assumed following the adjustments mentioned above (in thousands) as of the acquisition date:


	Amount
Cash and cash equivalents	$	1,683
Accounts receivable	3,057
Inventory	2,643
Property, plant and equipment	696
Operating lease, right-of-use-assets	335
Prepaid expenses and other current assets	838
Tangible assets acquired	9,252
Customer deposits	(2,013)
Accounts payable and accrued liabilities	(1,235)
Operating lease liabilities	(335)
Deferred tax liabilities	(5,796)

Total tangible assets acquired and liabilities assumed	(127)
Intangible assets	17,550
Goodwill	10,148
Net assets acquired	$	27,571

Summary of Finite-Lived Intangible Assets Acquired

The intangible assets as of the closing date of the acquisition included (in thousands):


	Amount		Weighted Average Useful Life (in years)
Developed technologies	$	12,626	8.0
Customer relationships	3,071		6.0
Order backlog	1,645		0.5
Trade names	208		2.0

Total intangible assets	$	17,550	7.0

Summary of Indefinite-Lived Intangible Assets Acquired

The intangible assets as of the closing date of the acquisition included (in thousands):


	Amount		Weighted Average Useful Life (in years)
Developed technologies	$	12,626	8.0
Customer relationships	3,071		6.0
Order backlog	1,645		0.5
Trade names	208		2.0

Total intangible assets	$	17,550	7.0

Goodwill and Intangible Assets

12 Months Ended

Dec. 28, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill

Goodwill by reportable segment was as follows (in thousands):


	Probe Cards		Systems		Total
Goodwill, gross, as of December 31, 2016	$	172,482	$	15,528	$	188,010
Foreign currency translation	—		1,910		1,910
Goodwill, gross, as of December 30, 2017	172,482		17,438		189,920
Foreign currency translation	—		(706)		(706)
Goodwill, gross, as of December 29, 2018	172,482		16,732		189,214
Additions - FRT GmbH acquisition	—		10,148		10,148
Foreign currency translation	—		(166)		(166)
Goodwill, gross, as of December 28, 2019	$	172,482	$	26,714	$	199,196

We have not recorded any goodwill impairments as of December 28, 2019.

Intangible Assets

Intangible assets were as follows (in thousands):


	December 28, 2019										December 29, 2018
Other Intangible Assets	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Existing developed technologies	$	154,951	$	116,138	$	38,813	$	143,408	$	97,111	$	46,297
Trade name	7,816		6,976		840		12,023		9,173		2,850
Customer relationships	44,229		27,057		17,172		40,146		21,653		18,493
Backlog	1,676		891		785		—		—		—
	$	208,672	$	151,062	$	57,610	$	195,577	$	127,937	$	67,640

During fiscal 2019, we disposed of certain fully amortized trade names.

Amortization expense was included in our Consolidated Statements of Income as follows (in thousands):


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
Cost of revenues	$	20,036	$	20,530	$	22,800
Selling, general and administrative	7,636		8,843		8,140
	$	27,672	$	29,373	$	30,940

The estimated future amortization of intangible assets is as follows (in thousands):


Fiscal Year	Amount
2020	$	26,270
2021	14,739
2022	5,553
2023	3,813
2024	2,073
Thereafter	5,162
Total	$	57,610

We did not record any impairment of intangible assets in fiscal 2019, 2018 and 2017.

Selected Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 28, 2019

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Data (Unaudited)

The following selected quarterly financial data should be read in conjunction with our consolidated financial statements and the related notes and Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations. This information has been derived from our unaudited consolidated financial statements that, in our opinion, reflect all recurring adjustments necessary to fairly present this information when read in conjunction with our consolidated financial statements and the related notes. The results of operations for any quarter are not necessarily indicative of the results to be expected for any future period.


	Fiscal Quarters Ended
	Dec. 28, 2019		Sep. 28, 2019		June 29, 2019		March 30, 2019		Dec. 29, 2018⁽¹⁾		Sep. 29, 2018		June 30, 2018		March 31, 2018
	(in thousands, except per share data)
Revenues	$	178,629	$	140,604	$	138,018	$	132,213	$	140,887	$	134,989	$	135,509	$	118,290
Cost of revenues	104,324		85,286		82,666		79,692		84,865		82,019		79,291		73,161
Gross profit	74,305		55,318		55,352		52,521		56,022		52,970		56,218		45,129
Operating Expenses:
Research and development	21,606		20,096		20,074		19,723		18,398		18,857		19,675		18,046
Selling, general and administrative	28,981		25,887		26,283		25,184		25,828		24,745		25,232		23,449




Total operating expenses	50,587		45,983		46,357		44,907		44,226		43,602		44,907		41,495
Operating income	23,718		9,335		8,995		7,614		11,796		9,368		11,311		3,634
Interest income	726		724		684		580		404		369		326		257
Interest expense	(376)		(422)		(522)		(595)		(660)		(777)		(910)		(967)
Other income (expense), net	379		226		81		(84)		117		121		50		(512)
Income before income taxes	24,447		9,863		9,238		7,515		11,657		9,081		10,777		2,412
Provision (benefit) for income taxes	5,811		1,584		2,290		2,032		(73,443)		1,393		1,654		287
Net income	$	18,636	$	8,279	$	6,948	$	5,483	$	85,100	$	7,688	$	9,123	$	2,125
Net income per share:⁽²⁾
Basic	$	0.25	$	0.11	$	0.09	$	0.07	$	1.15	$	0.10	$	0.12	$	0.03
Diluted	$	0.24	$	0.11	$	0.09	$	0.07	$	1.13	$	0.10	$	0.12	$	0.03
Weighted average number of shares used in per share calculations:
Basic	75,731		75,280		74,478		74,362		74,108		73,837		73,157		72,826
Diluted	78,055		77,291		76,189		76,009		75,416		74,962		74,533		74,342

(1)In the fourth quarter of fiscal 2018, the tax benefit included a $75.8 million benefit from a valuation allowance release against certain U.S. deferred tax assets.

(2)Quarterly net income per share amounts may not add to the yearly totals due to rounding.

Stockholders' Equity - Employee Stock Purchase Plan (Details)	12 Months Ended
	Dec. 28, 2019 purchase_period $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Discount from market price, offering date	85.00%
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance (in shares)	7,000,000
Number of purchase periods, 12 months offering period \| purchase_period	2
Number of purchase periods, 6 months offering period \| purchase_period	1
Issuance of common stock under the Employee Stock Purchase Plan (in shares)	544,271
Weighted average exercise price, exercisable (in USD per share) \| $ / shares	$ 12.51
Weighted average discount (in USD per share) \| $ / shares	$ 3.40
Shares available for grant (in shares)	2,657,222

Fair Value

12 Months Ended

Dec. 28, 2019

Fair Value Disclosures [Abstract]

Fair Value

Whenever possible, the fair values of our financial assets and liabilities are determined using quoted market prices of identical securities or quoted market prices of similar securities from active markets. The three levels of inputs that may be used to measure fair value are as follows:

•Level 1 valuations are obtained from real-time quotes for transactions in active exchange markets involving identical securities;

•Level 2 valuations utilize significant observable inputs, such as quoted prices for similar assets or liabilities, quoted prices near the reporting date in markets that are less active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

•Level 3 valuations utilize unobservable inputs to the valuation methodology and include our own data about assumptions market participants would use in pricing the asset or liability based on the best information available under the circumstances.

We did not have any transfers of assets or liabilities measured at fair value on a recurring basis to or from Level 1, Level 2 or Level 3 during fiscal 2019, 2018 or 2017.

The carrying values of Cash, Accounts receivable, net, Restricted cash, Prepaid expenses and other current assets, Accounts payable, Accrued liabilities, and short-term Term loan approximate fair value due to their short maturities.

No changes were made to our valuation techniques during fiscal 2019.

Cash Equivalents

The fair value of our cash equivalents is determined based on quoted market prices for similar or identical securities.

Marketable Securities

We classify our marketable securities as available-for-sale and value them utilizing a market approach. Our investments are priced by pricing vendors who provide observable inputs for their pricing without applying significant judgment. Broker pricing is used mainly when a quoted price is not available, the investment is not priced by our pricing vendors or when a broker price is more reflective of fair value. Our broker-priced investments are categorized as Level 2 investments because fair value is based on similar assets without applying significant judgments. In addition, all of our investments have a sufficient level of trading volume to demonstrate that the fair value is appropriate.

Contingent Consideration

Contingent consideration, arising from the acquisition of FRT (see Note 4), is a cash amount equal to 1.5x EBIT as defined in the purchase agreement, up to a maximum of €10.3 million, payable subject to the performance of the acquired business in calendar 2020. We estimated the fair value of contingent consideration using a probability weighted approach. Key assumptions in determining the fair value of contingent consideration include estimating the probability of achieving certain EBIT levels and discounting at an appropriate discount rate. There was no change in the value of contingent consideration since the acquisition of FRT and as of December 28, 2019.

Assets and liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis were as follows (in thousands):


December 28, 2019	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	17,056	$	—	$	—	$	17,056

Marketable securities:
U.S. Treasuries	10,468		—		—		10,468
Certificates of deposit	—		3,590		—		3,590
Agency securities	—		24,430		—		24,430
Corporate bonds	—		33,928		—		33,928
Commercial paper	—		3,911		—		3,911
	10,468		65,859		—		76,327
Foreign exchange derivative contracts	—		41		—		41
Interest rate swap derivative contracts	—		26		—		26
Total assets	$	27,524	$	65,926	$	—	$	93,450
Liabilities:
Foreign exchange derivative contracts	$	—	$	(240)	$	—	$	(240)
Contingent consideration	—		—		(5,364)		(5,364)
Total liabilities	$	—	$	(240)	$	(5,364)	$	(5,604)


December 29, 2018	Level 1		Level 2		Total
Assets:
Cash equivalents:
Money market funds	$	1,184	$	—	$	1,184


Marketable securities:
U.S. Treasuries	7,997		—		7,997
Certificates of deposit	—		957		957
Agency securities	—		8,608		8,608
Corporate bonds	—		30,674		30,674
Commercial paper	—		2,295		2,295
	7,997		42,534		50,531

Interest rate swap derivative contracts	—		871		871
Total assets	$	9,181	$	43,405	$	52,586

We did not have any liabilities measured at fair value on a recurring basis at December 29, 2018.

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

We measure and report goodwill and intangible assets at fair value on a non-recurring basis if we determine these assets to be impaired or in the period when we make a business acquisition. Other than as discussed in Note 4, there were no assets or liabilities measured at fair value on a nonrecurring basis during fiscal 2019, 2018 or 2017.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Stockholders' Equity - Restricted Stock Units (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted Average Grant Date Fair Value, Granted (in USD per share)	$ 15.12	$ 13.79	$ 13.20
Performance Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Stock options granted (in shares)	273,000,000,000	318,100	333,333
Stock-based compensation expense	$ 4.4	$ 4.7	$ 4.1
Equity Incentive Plan \| Restricted Stock Units
Number of Shares
Number of Shares, Restricted stock units, beginning balance (in shares)	3,102,226
Number of Shares, Granted (in shares)	1,510,211
Number of Shares, Vested (in shares)	(1,391,373)
Number of Shares, Canceled (in shares)	(152,064)
Number of Shares, Restricted stock units, ending balance (in shares)	3,069,000	3,102,226
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted Average Grant Date Fair Value, Restricted stock units, beginning balance (in USD per share)	$ 12.79
Weighted Average Grant Date Fair Value, Granted (in USD per share)	15.12
Weighted Average Grant Date Fair Value, Vested (in USD per share)	11.91
Weighted Average Grant Date Fair Value, Canceled (in USD per share)	13.47
Weighted Average Grant Date Fair Value, Restricted stock units, ending balance(in USD per share)	$ 14.30	$ 12.79
Minimum \| Performance Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Performance period	2 years
Maximum \| Performance Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Performance period	3 years

Debt

12 Months Ended

Dec. 28, 2019

Debt Disclosure [Abstract]

Debt

Our debt consisted of the following (in thousands):


	December 28, 2019		December 29, 2018
Term loans	$	58,514	$	65,000
Less unamortized issuance costs	(29)		(189)
Term loans less issuance costs	$	58,485	$	64,811

CMI Term Loan

On June 24, 2016, we entered into a Credit Agreement (the “Credit Agreement”) with HSBC Bank USA, National Association ("HSBC"), as administrative agent, co-lead arranger, sole bookrunner and syndication agent, other lenders that may from time-to-time be a party to the Credit Agreement, and certain guarantors. Pursuant to the Credit Agreement, the lenders have provided us with a senior secured term loan facility of $150 million (the “CMI Term Loan”). The proceeds of the CMI Term Loan were used to finance a portion of the purchase price paid in connection with the Cascade Microtech acquisition in fiscal 2016 and to pay related bank fees and expenses.

The CMI Term Loan bears interest at a rate equal to, at our option, (i) the applicable London Interbank Offered Rate ("LIBOR") rate plus 2.00% per annum or (ii) Base Rate (as defined in the Credit Agreement) plus 1.00% per annum. We have initially elected to pay interest at 2.00% over the one-month LIBOR rate. Interest payments are payable in quarterly installments over a five-year period. The interest rate at December 28, 2019 was 3.71%.

The principal payments on the CMI Term Loan are paid in equal quarterly installments that began June 30, 2016, in an annual amount equal to 5% for year one, 10% for year two, 20% for year three, 30% for year four and 35% for year five. In addition to quarterly installments, we made prepayments totaling $15.0 million in fiscal 2018 and $20.0 million in fiscal 2017. We did not make any prepayments in fiscal 2019. The planned final payment on the CMI Term Loan is scheduled for the third quarter of fiscal 2020.

On July 25, 2016, we entered into an interest-rate swap agreement with HSBC and other lenders to hedge the interest payments on the CMI Term Loan. See Note 7 for additional information.

The obligations under the CMI Term Loan are fully and unconditionally guaranteed by certain of our existing and subsequently acquired or organized direct and indirect domestic subsidiaries and are secured by a perfected first priority security interest in substantially all of our assets and the assets of those guarantors, subject to certain customary exceptions.

The CMI Term Loan contains negative covenants customary for financing of this type, including covenants that place limitations on the incurrence of additional indebtedness, the creation of liens, the payment of dividends; dispositions; fundamental changes, including mergers and acquisitions; loans and investments; sale leasebacks; negative pledges; transactions with affiliates; changes in fiscal year; sanctions and anti-bribery laws and regulations, and modifications to charter documents in a manner materially adverse to the Lenders. The CMI Term Loan also contains affirmative covenants and representations and warranties customary for financing of this type.

In addition, the CMI Term Loan contains financial maintenance covenants requiring:

•a ratio of total debt to earnings before interest, taxes, depreciation and amortization ("EBITDA") not in excess of 2.50 to 1.00; and

•a fixed charge coverage ratio of not less than 1.50 to 1.00, stepping down to 1.30 to 1.00 at the end of the fiscal quarter ended June 30, 2018 and to 1.20 to 1.00 at the end of the fiscal quarter ending June 30, 2019.

As of December 28, 2019, we were in compliance with all of the financial covenants.

The CMI Term Loan contains customary events of default, including (subject to certain materiality thresholds and grace periods) payment default, failure to comply with covenants, material inaccuracy of representation or warranty, bankruptcy or insolvency proceedings, change of control, certain material Employee Retirement Security Act ("ERISA") events and cross event of default and cross-acceleration in respect of other material debt.

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Income Statement [Abstract]
Revenues	$ 178,629	$ 140,604	$ 138,018	$ 132,213	$ 140,887	$ 134,989	$ 135,509	$ 118,290	$ 589,464	$ 529,675	$ 548,441
Cost of revenues	104,324	85,286	82,666	79,692	84,865	82,019	79,291	73,161	351,968	319,336	332,844
Gross profit	74,305	55,318	55,352	52,521	56,022	52,970	56,218	45,129	237,496	210,339	215,597
Operating expenses:
Research and development	21,606	20,096	20,074	19,723	18,398	18,857	19,675	18,046	81,499	74,976	73,807
Selling, general and administrative	28,981	25,887	26,283	25,184	25,828	24,745	25,232	23,449	106,335	99,254	95,489
Total operating expenses	50,587	45,983	46,357	44,907	44,226	43,602	44,907	41,495	187,834	174,230	169,296
Operating income	23,718	9,335	8,995	7,614	11,796	9,368	11,311	3,634	49,662	36,109	46,301
Interest income	726	724	684	580	404	369	326	257	2,714	1,356	548
Interest expense	(376)	(422)	(522)	(595)	(660)	(777)	(910)	(967)	(1,915)	(3,314)	(4,491)
Other income (expense), net	379	226	81	(84)	117	121	50	(512)	602	(224)	(152)
Income before income taxes	24,447	9,863	9,238	7,515	11,657	9,081	10,777	2,412	51,063	33,927	42,206
Provision (benefit) for income taxes	5,811	1,584	2,290	2,032	(73,443)	1,393	1,654	287	11,717	(70,109)	1,293
Net income	$ 18,636	$ 8,279	$ 6,948	$ 5,483	$ 85,100	$ 7,688	$ 9,123	$ 2,125	$ 39,346	$ 104,036	$ 40,913
Net income per share:
Basic (in USD per share)	$ 0.25	$ 0.11	$ 0.09	$ 0.07	$ 1.15	$ 0.10	$ 0.12	$ 0.03	$ 0.52	$ 1.42	$ 0.57
Diluted (in USD per share)	$ 0.24	$ 0.11	$ 0.09	$ 0.07	$ 1.13	$ 0.10	$ 0.12	$ 0.03	$ 0.51	$ 1.38	$ 0.55
Weighted-average number of shares used in per share calculations:
Basic (in shares)	75,731	75,280	74,478	74,362	74,108	73,837	73,157	72,826	74,994	73,482	72,292
Diluted (in shares)	78,055	77,291	76,189	76,009	75,416	74,962	74,533	74,342	77,286	75,182	74,239

Balance Sheet Components - Property Plant and Equipment (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 319,890	$ 306,777
Less: Accumulated depreciation and amortization	(273,001)	(263,102)
Property Plant And Equipment Net, Excludes Construction in Progress	46,889	43,675
Construction-in-progress	11,858	10,379
Property, plant and equipment, net	58,747	54,054
Machinery and Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	201,861	192,108
Computer Equipment and Software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	35,192	32,906
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	6,756	6,478
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 76,081	$ 75,285

Goodwill and Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Property, Plant and Equipment [Line Items]
Amortization of intangible assets	$ 27,672	$ 29,373	$ 30,940
Finite-Lived Intangible Assets, Net, Amortization Expense, Rolling Maturity [Abstract]
2019	26,270
2020	14,739
2021	5,553
2022	3,813
2023	2,073
Total	57,610
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	5,162
Cost of Sales
Property, Plant and Equipment [Line Items]
Amortization of intangible assets	20,036	20,530	22,800
Selling, General and Administrative Expenses
Property, Plant and Equipment [Line Items]
Amortization of intangible assets	$ 7,636	$ 8,843	$ 8,140

Impairment of Long-lived Assets - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Long Lived Assets Held-for-sale [Line Items]
Impairment of intangible assets	$ 0	$ 0

Summary of Significant Accounting Policies

12 Months Ended

Dec. 28, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Basis of Consolidation and Foreign Currency Translation

The consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated.

On October 9, 2019, we completed the acquisition of FRT GmbH and, accordingly, our Consolidated Statements of Income include the results of operations of FRT GmbH since that date. See Note 4.

The functional currencies of certain of our foreign subsidiaries are the local currencies and, accordingly, all assets and liabilities of these foreign operations are translated to U.S. Dollars at current period-end exchange rates, and revenues and expenses are translated to U.S. Dollars using average exchange rates in effect during the period. The gains and losses from the foreign currency translation of these subsidiaries' financial statements are included as a separate component of stockholders' equity on our Consolidated Balance Sheets under Accumulated other comprehensive income (loss).

Certain other of our foreign subsidiaries use the U.S. Dollar as their functional currency. Accordingly, monetary assets and liabilities in non-functional currencies of these subsidiaries are remeasured using exchange rates in effect at the end of the period. Revenues and costs in local currency are remeasured using average exchange rates for the period, except for costs related to those balance sheet items that are remeasured using historical exchange rates. The resulting remeasurement gains and losses are included in the Consolidated Statements of Income as a component of Other income (expense), net as incurred.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Estimates may change as new information is obtained. We believe that the estimates, assumptions and judgments involved in revenue recognition, fair value of marketable securities, fair value of derivative financial instruments used to hedge both foreign currency and interest rate exposures, allowance for doubtful accounts, reserves for product warranty, valuation of obsolete and slow moving inventory, assets acquired and liabilities assumed in business combinations, legal contingencies, valuation of goodwill, the assessment of recoverability of long-lived assets, valuation and recognition of stock-based compensation, provision for income taxes and valuation of deferred tax assets have the greatest potential impact on our consolidated financial statements. Actual results could differ from those estimates.

Business Acquisitions

Our consolidated financial statements include the operations of acquired businesses after the completion of their respective acquisitions. We account for acquired businesses using the acquisition method of accounting, which requires, among other things, that assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date, and that the fair value of acquired intangibles be recorded on the balance sheet. Transaction costs are expensed as incurred. Any excess of the purchase price over the assigned fair values of the net assets acquired is recorded as goodwill.

Cash and Cash Equivalents and Marketable Securities

Cash and cash equivalents consist of deposits and financial instruments which are readily convertible into cash and have original maturities of 90 days or less at the time of acquisition. Marketable securities consist primarily of highly liquid investments with maturities of greater than 90 days when purchased. We classify our marketable securities as available-for-sale and, accordingly, report them at fair value with the related unrealized gains and losses included in Accumulated other comprehensive income (loss) in our Consolidated Balance Sheets. Any unrealized losses which are considered to be other-than-temporary are recorded in Other income (expense), net, in the Consolidated Statements of Income. Realized gains and losses on the sale of marketable securities are determined using the specific-identification method and recorded in Other income (expense), net, in the Consolidated Statements of Income.

All of our available-for-sale investments are subject to a periodic impairment review. We record a charge to earnings when a decline in fair value is significantly below cost basis and judged to be other-than-temporary, or have other indicators of impairments. If the fair value of an available-for-sale investment is less than its amortized cost basis, an other-than-temporary impairment is triggered in circumstances where (1) we intend to sell the instrument; (2) it is more likely than not that we will be required to sell the instrument before recovery of its amortized cost basis; or (3) a credit loss exists where we do not expect to recover the entire amortized cost basis of the instrument. If we intend to sell, or it is more likely than not that we will be required to sell, the available-for-sale investment before recovery of its amortized cost basis, we recognize an other-than-temporary impairment charge equal to the difference between the investment's amortized cost basis and its fair value. We did not record any other-than-temporary impairments during fiscal 2019, 2018 or 2017.

Foreign Exchange Management

We transact business in various foreign currencies. We enter into forward foreign exchange contracts in an effort to mitigate the risks associated with currency fluctuations on certain foreign currency balance sheet exposures and certain operational costs denominated in local currency impacting our statement of income. For accounting purposes, certain of our foreign currency forward contracts are not designated as hedging instruments and, accordingly, we record the fair value of these contracts as of the end of our reporting period in our Consolidated Balance Sheets with changes in fair value recorded within Other income (expense), net in our Consolidated Statements of Income for both realized and unrealized gains and losses. Certain of our foreign currency forward contracts are designated as cash flow hedges, and, accordingly, we record the fair value of these contracts as of the end of our reporting period in our Consolidated Balance Sheets with changes in fair value recorded as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the same period in which the hedged transaction affects earnings, and in the same line item on the Consolidated Statements of Income as the impact of the hedge transaction. We do not use derivative financial instruments for trading or speculative purposes.

Accounts Receivable and Allowance for Doubtful Accounts

The majority of our accounts receivable are derived from sales to large multinational semiconductor manufacturers throughout the world, are recorded at their invoiced amount and do not bear interest.

In order to monitor potential credit losses, we perform ongoing credit evaluations of our customers' financial condition. An allowance for doubtful accounts is maintained based upon our assessment of the expected collectability of all accounts receivable. The allowance for doubtful accounts is reviewed and assessed for adequacy on a quarterly basis. We take into consideration (1) any circumstances of which we are aware of a customer's inability to meet its financial obligations and (2) our judgments as to prevailing economic conditions in the industry and their impact on our customers. If circumstances change, and the financial condition of our customers is adversely affected and they are unable to meet their financial obligations, we may need to take additional allowances, which would result in an increase in our operating expense.

Activity related to our allowance for doubtful accounts receivable was as follows (in thousands):


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
Balance at beginning of year	$	185	$	200	$	299
Charges (reversals) to costs and expenses	37		(15)		(99)

Balance at end of year	$	222	$	185	$	200

Inventories

We state our inventories at the lower of cost (principally standard cost which approximates actual cost on a first in, first out basis) or net realizable value. We continually assess the value of our inventory and will periodically write down its value for estimated excess inventory and product obsolescence based upon an analysis of existing inventory quantities compared to estimated future consumption. Future consumption is estimated based upon assumptions about how past consumption, recent purchases, backlog and other factors indicate future consumption. On a quarterly basis, we review existing inventory quantities in comparison to our past consumption, recent purchases, backlog and other factors to determine what inventory quantities, if any, may not be sellable. Based on this analysis, we record an adjustment to the cost basis of inventory when evidence exists that the net realizable value of inventory is lower than its cost, which occurs when we have excess and/or obsolete inventory. Once the value is adjusted, the original cost of our inventory, less the related inventory write-down, represents the new cost basis. Reversal of these write downs is recognized only when the related inventory has been scrapped or sold. Shipping and handling costs are classified as a component of Cost of revenues in the Consolidated Statements of Income.

We design, manufacture and sell a custom product into a market that has been subject to cyclicality and significant demand fluctuations. Many of our products are complex, custom to a specific chip design and have to be delivered on short lead-times. Probe cards are manufactured in low volumes, but, for certain materials, the purchases are often subject to minimum order quantities in excess of the actual underlying probe card demand. It is not uncommon for us to acquire production materials and commence production activities based on estimated production yields and forecasted demand prior to, or in excess of, actual demand for our probe cards. These factors result in normal recurring inventory valuation charges to Cost of revenues.

Inventory write downs totaled $10.4 million, $10.5 million and $9.3 million for fiscal 2019, 2018 and 2017, respectively.

Restricted Cash

Restricted cash is comprised primarily of funds held by our foreign subsidiaries for employee obligations, office leases, customer deposits, and temporary customs import permits.

Property, Plant, and Equipment

Property, plant and equipment is stated at cost less accumulated depreciation and amortization. Depreciation is provided on a straight-line method. Machinery and equipment, computer equipment and software, and furniture and fixtures are depreciated over 1 to 5 years.

Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the related asset. Construction-in-progress assets are not depreciated until the assets are placed in service. Upon sale or retirement of assets, the cost and related accumulated depreciation or amortization are removed from the Consolidated Balance Sheets and the resulting gain or loss is reflected in Operating income in our Consolidated Statements of Income.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of identifiable assets acquired and liabilities assumed. Goodwill is not amortized, rather assessed, at least annually, for impairment at a reporting unit level. Impairment of goodwill exists when the carrying amount of a reporting unit exceeds its fair value. A goodwill impairment loss is recognized for the amount that the carrying amount of the reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. If the fair value of a reporting unit exceeds the carrying amount, goodwill of the reporting unit is not considered impaired.

We evaluate impairment by first assessing qualitative factors to determine whether it is necessary to perform a quantitative impairment test. If we determine, as a result of the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative impairment test is required. Otherwise, no further testing is required.

We perform our annual goodwill impairment test in the fourth quarter of each year by assessing qualitative factors, including, but not limited to an assessment of our market capitalization, which was significantly higher than our book value. Based on these tests, we determined that the quantitative impairment test was not required and no impairment charges were recorded in fiscal 2019, 2018 or 2017.

The evaluation of goodwill for impairment requires the exercise of judgment. In the event of future changes in business conditions, we will be required to reassess and update our forecasts and estimates used in future impairment analysis. If the results of these analysis are lower than current estimates, a material impairment charge may result at that time.

See Note 9 for additional information.

Intangible Assets

Intangible assets consist of acquisition related intangible assets and intellectual property. The intangible assets are being amortized over periods of 1 to 10 years, which reflect the pattern in which economic benefits of the assets are expected to be realized. We perform a review of intangible assets when facts and circumstances indicate that the useful life is shorter than originally estimated or that the carrying amount of assets may not be recoverable. Such facts and circumstances include significant adverse changes in the business climate or legal factors; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the intangible assets; and current expectation that the intangible assets will more likely than not be sold or disposed of before the end of their estimated useful lives. We assess the recoverability of identified intangible assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets.

See Note 9 for additional information.

Impairment of Long-Lived Assets

We test long-lived assets or asset groups, such as property, plant and equipment and intangible assets, for recoverability when events or changes in circumstances indicate that their carrying amounts may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed of before the end of its estimated useful life.

Recoverability is assessed based on the carrying amounts of the asset or asset group and the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value.

Concentration of Credit Risk and Other Risks and Uncertainties

Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash equivalents, marketable securities and accounts receivable. Our cash equivalents and marketable securities are held in safekeeping by large, credit worthy financial institutions. We invest our excess cash primarily in U.S. banks, government and agency bonds, money market funds and corporate obligations. We have established guidelines relative to credit ratings, diversification and maturities that seek to maintain safety and liquidity. Deposits in these banks may exceed the amounts of insurance provided on such deposits. To date, we have not experienced any losses on our deposits of cash and cash equivalents. We market and sell our products to a relatively narrow base of customers and generally do not require collateral.

The following customers represented 10% or more of our revenues:


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
Intel Corporation	25.3	%	19.0	%	25.9	%
Samsung Electronics., LTD.	11.5	%	*		*

* Less than 10% of revenues.

At December 28, 2019, three customers accounted for 25.7%, 15.1% and 11.5% of gross accounts receivable, respectively. At December 29, 2018, two customers accounted for 27.8% and 13.0% of gross accounts receivable, respectively. No other customers accounted for 10% or more of gross accounts receivable for these fiscal period ends. We operate in the competitive semiconductor industry, including the Dynamic Random Access Memory, or DRAM, Flash memory, and Foundry & Logic and probe stations markets, which have been characterized by price erosion, rapid technological change, short product life cycles and heightened foreign and domestic competition. Significant technological changes in the industry could adversely affect our operating results.

We are exposed to non-performance risk by counterparties on our derivative instruments used in hedging activities. We seek to minimize risk by diversifying our hedging program across multiple financial institutions. These counterparties are large international financial institutions, and, to date, no such counterparty has failed to meet its financial obligations to us.

Certain components for our products that meet our requirements are available only from a limited number of suppliers. The rapid rate of technological change and the necessity of developing and manufacturing products with short life cycles may intensify our reliance on such suppliers. The inability to obtain components as required, or to develop alternative sources, if and as required in the future, could result in delays or reductions in product shipments, which in turn could have a material adverse effect on our business, financial condition, results of operations or cash flows.

Revenue Recognition

Revenue is recognized upon transferring control of products and services, and the amounts recognized reflect the consideration we expect to be entitled to receive in exchange for these products and services. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. An arrangement may include some or all of the following products and services: probe cards, systems, accessories, installation services, service contracts and extended warranty contracts. We sell our products and services direct to customers and to partners in two distribution channels: global direct sales force and through a combination of manufacturers’ representatives and distributors.

We adopted Accounting Standards Codification ("ASC") Topic No. 606 effective on December 31, 2017, the first day of fiscal year 2018, using the modified retrospective method. We applied ASC 606 to all contracts not completed as of the date of adoption in order to determine any adjustment to the opening balance of accumulated deficit as of December 31, 2017. We did not restate any prior financial statements presented. No adjustment was recorded to accumulated deficit as of the adoption date and reported revenue would not have been different under legacy GAAP.

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. In contracts with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligation is distinct within the context of the contract at contract inception. Performance obligations that are not distinct at contract inception are combined and accounted for as one unit of account. Generally, the performance obligations in a contract are considered distinct within the context of the contract and are accounted for as separate units of account.

Our products may be customized to our customers’ specifications, however, control of our product is typically transferred to the customer at the point in time the product is either shipped or delivered, depending on the terms of the arrangement, as the criteria for overtime recognition is not met. In limited circumstances, substantive acceptance by the customer exists which results in the deferral of revenue until acceptance is formally received from the customer. Judgment may be required in determining if the acceptance clause is substantive.

Installation services are routinely provided to customers purchasing our systems. Installation services are a distinct performance obligation apart from the systems and recognized in the period they are performed. Service contracts, which include repair and maintenance service contracts, and extended warranty contracts are also distinct performance obligations and recognized over the contractual service period, which ranges from one to three years. For these service contracts recognized over time, we use an input measure, days elapsed, to measure progress.

A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. In determining the transaction price, we evaluate whether the price is subject to refund or adjustment to determine the net consideration to which we expect to be entitled. We generally do not grant return privileges, except for defective products during the warranty period. Sales incentives and other programs that we may make available to these customers are considered to be a form of variable consideration, which is estimated in determining the contract’s transaction price to be allocated to the performance obligations. We have elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component as our standard payment terms are less than one year.

For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation based on its relative stand-alone selling price. The stand-alone selling prices are determined based on observable prices, which are the prices at which we separately sell these products. For items which do not have observable prices, we use our best estimate of the stand-alone selling prices.

Transaction price allocated to the remaining performance obligations: On December 28, 2019, we had $4.1 million of remaining performance obligations, which were comprised of deferred service contracts and extended warranty contracts not yet delivered. We expect to recognize approximately 75.1% of our remaining performance obligations as revenue in fiscal 2020, approximately 15.0% in fiscal 2021, and approximately 9.9% in fiscal 2022 and thereafter. The foregoing excludes the value of remaining performance obligations that have original durations of one year or less, and also excludes information about variable consideration allocated entirely to a wholly unsatisfied performance obligation.

Contract balances: The timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable is recorded at the invoiced amount, net of an allowance for doubtful accounts. A receivable is recognized in the period we deliver goods or provide services or when our right to consideration is unconditional. A contract asset is recorded when we have performed under the contract but our right to consideration is conditional on something other than the passage of time. Contract assets as of December 28, 2019 and December 29, 2018 were $0.9 million and $0.3 million, respectively, and are reported on the Consolidated Balance Sheets as a component of Prepaid expenses and other current assets.

Contract liabilities include payments received in advance of performance under a contract and are satisfied as the associated revenue is recognized. Contract liabilities are reported on the Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period as a component of Deferred revenue and Other liabilities. Contract liabilities totaled $10.8 million and $5.7 million at December 28, 2019 and December 29, 2018, respectively. During fiscal 2019, we recognized $4.2 million of revenue that was included in contract liabilities as of December 29, 2018.

Costs to obtain a contract: We generally expense sales commissions when incurred as a component of Selling, general and administrative expense as the amortization period is typically less than one year.

Revenue by Category: Refer to Note 15 for further details.

Warranty Obligations

We offer warranties on certain products and record a liability for the estimated future costs associated with warranty claims at the time revenue is recognized. The warranty liability is based upon historical experience and our estimate of the level of future costs. While we engage in product quality programs and processes, our warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. We continuously monitor product returns for warranty and maintain a reserve for the related expenses based upon our historical experience and any specifically identified field failures. As we sell new products to our customers, we must exercise considerable judgment in estimating the expected failure rates. This estimating process is based on historical experience of similar products, as well as various other assumptions that we believe to be reasonable under the circumstances.

We provide for the estimated cost of product warranties at the time revenue is recognized. Warranty costs are reflected in the Consolidated Statement of Income as a Cost of revenues.

A reconciliation of the changes in our warranty liability is as follows (in thousands):


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
Balance at beginning of year	$	2,102	$	3,662	$	2,972

Accruals	3,881		3,181		8,115
Settlements	(4,041)		(4,741)		(7,425)
Balance at end of year	$	1,942	$	2,102	$	3,662

Research and Development

Research and development expenses include expenses related to product development, engineering and material costs. All research and development costs are expensed as incurred.

Income Taxes

We utilize the asset and liability method of accounting for income taxes, under which deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse and for operating losses and tax credit carryforwards. We estimate our provision for income taxes and amounts ultimately payable or recoverable in numerous tax jurisdictions around the world. Estimates involve interpretations of regulations and are inherently complex. Resolution of income tax treatments in individual jurisdictions may not be known for many years after completion of any fiscal year. We are required to evaluate the realizability of our deferred tax assets on an ongoing basis to determine whether there is a need for a valuation allowance with respect to such deferred tax assets. A valuation allowance is recorded when it is more likely than not that some or all of the deferred tax assets will not be realized. In evaluating the ability to recover deferred tax assets, we consider all available positive and negative evidence giving greater weight to our recent cumulative income, our historical ability to utilize net operating losses in recent years and our forecast of future taxable income, including the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies.

We recognize and measure uncertain tax positions taken or expected to be taken in a tax return if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized are then measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. We report a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. We adjust these reserves in light of changing facts and circumstances, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate, as well as the related net interest. We recognize interest and penalties related to unrecognized tax benefits within the income tax provision. Accrued interest and penalties are included within the related tax liability in the Consolidated Balance Sheets.

We file annual income tax returns in multiple taxing jurisdictions around the world. A number of years may elapse before an uncertain tax position is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, we believe that our related liability reflects the most likely outcome. We adjust the liability, as well as the related interest, in light of changing facts and circumstances. Settlement of any particular position could require the use of cash.

See Note 13 for additional information, including the Tax Cuts and Jobs Act enacted in December 2017.

Stock-Based Compensation

We recognize compensation expense for all stock-based awards based on the grant-date estimated fair values, net of an estimated forfeiture rate. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service periods in our Consolidated Statements of Income. The fair value of stock options is measured using the Black-Scholes option pricing model, while the fair value for restricted stock units ("RSUs") is measured based on the closing market price of our common stock on the date of grant. The fair value of Performance RSUs ("PRSU") is based on certain market performance criteria is measured using the Monte Carlo simulation pricing model.

See Notes 11 and 12 for additional information.

Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed giving effect to all potentially dilutive common stock and common stock equivalents, including stock options, RSUs and common stock subject to repurchase.

The following table reconciles the shares used in calculating basic net income per share and diluted net income per share (in thousands):


	Fiscal Year Ended
	December 28, 2019	December 29, 2018	December 30, 2017



Weighted-average shares used in computing basic net income per share	74,994	73,482	72,292
Add potentially dilutive securities	2,292	1,700	1,947
Weighted-average shares used in computing basic and diluted net income per share	77,286	75,182	74,239

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) ("OCI") includes the following items, the impact of which has been excluded from earnings and reflected as components of stockholders' equity as shown below (in thousands):


	December 28, 2019		December 29, 2018
Unrealized losses on available-for-sale marketable securities	$	(352)	$	(668)
Translation adjustments and other	53		1,081
Unrealized gains (losses) on derivative instruments	(360)		367

Accumulated other comprehensive income (loss)	$	(659)	$	780

Acquisition - Additional Information (Details) € in Millions		3 Months Ended	12 Months Ended
	Oct. 09, 2019 USD ($)	Dec. 28, 2019 USD ($)	Dec. 28, 2019 USD ($)	Dec. 29, 2018 USD ($)	Dec. 30, 2017 USD ($)	Oct. 09, 2019 EUR (€)	Jun. 24, 2016 USD ($)
Business Acquisition [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired	$ 22,200,000		$ 20,524,000	$ 0	$ 0
Total acquisition consideration	25,900,000
Operating lease, right-of-use assets obtained in exchange for lease obligations			36,709,000	$ 0	$ 0
Contingent consideration	5,400,000	$ (5,364,000)	(5,364,000)
Maximum
Business Acquisition [Line Items]
Contingent consideration \| €						€ 10.3
FRT
Business Acquisition [Line Items]
Revenues		$ 3,900,000
Cascade Microtech \| Senior Secured Term Loan
Business Acquisition [Line Items]
Senior secured loan to finance merger							$ 150,000,000
FRT
Business Acquisition [Line Items]
Cash acquired in combination	1,683,000
Transaction costs related to acquisition			$ 500,000
Finite-lived intangible assets acquired	10,148,000
FRT \| Developed technologies
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	12,626,000
FRT \| Customer relationships
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	3,071,000
FRT \| Trade name
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 208,000

Stockholders' Equity

12 Months Ended

Dec. 28, 2019

Equity [Abstract]

Stockholders' Equity

Preferred Stock

We have authorized 10,000,000 shares of undesignated preferred stock, $0.001 par value, none of which is issued and outstanding. Our Board of Directors shall determine the rights, preferences, privileges and restrictions of the preferred stock, including dividends rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking fund terms and the number of shares constituting any series or the designation of any series.

Common Stock

Each share of common stock has the right to one vote. The holders of common stock are also entitled to receive dividends whenever funds are legally available and when declared by the Board of Directors, subject to the prior rights of holders, if any, of all classes of stock outstanding having priority rights as to dividends. No dividends have been declared or paid as of December 28, 2019.

Common Stock Repurchase Program

In February 2017, our Board of Directors authorized a program to repurchase up to $25 million of outstanding common stock to offset potential dilution from issuances of common stock under our stock-based incentive plans. The share repurchase program expired on February 1, 2020. During fiscal 2019 and 2018, we did not repurchase any shares. During fiscal 2017, we repurchased 1,367,617 shares of common stock for $19.0 million.

Equity Incentive Plan

We currently grant equity-based awards under our Equity Incentive Plan, as amended (the "2012 Plan") which was approved by our stockholders. As amended, the 2012 Plan has authorized for issuance a total of 15.0 million shares, 4.6 million of which were available for grant as of December 28, 2019.

RSUs granted under the 2012 Plan generally vest over three years in annual tranches, though we have granted, and will continue to grant, such awards that vest over a shorter term for employee retention purposes.

The 2012 Plan provides that incentive stock options may be granted to our employees and nonqualified stock options, and all awards other than incentive stock options, may be granted to employees, directors and consultants. The exercise price of incentive stock options must be at least equal to the fair market value of our common stock on the date of grant. All restricted stock units and options granted under the 2012 Plan generally vest over three years and expire after seven years, unless otherwise determined by the Compensation Committee of the Board of Directors.

Stock Options

Stock option activity was as follows:


	Outstanding Options
	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life in Years	Aggregate Intrinsic Value








Outstanding at December 29, 2018	524,725	$	8.00

Options exercised	(162,956)	7.21

Outstanding at December 28, 2019	361,769	$	8.35	2.16	$	6,400,367
Vested and expected to vest at December 28, 2019	361,769	$	8.35	2.16	$	6,400,367
Exercisable at December 28, 2019	361,769	$	8.35	2.16	$	6,400,367

Restricted Stock Units

RSUs, including Performance Restricted Stock Units ("PRSUs") are converted into shares of our common stock upon vesting on a one-for-one basis. The vesting of RSUs is subject to the employee's continuing service. RSU activity was as follows:


	Number of Shares	Weighted Average Grant Date Fair Value
Restricted stock units at December 29, 2018	3,102,226	$	12.79
Granted	1,510,211	15.12
Vested	(1,391,373)	11.91
Canceled	(152,064)	13.47
Restricted stock units at December 28, 2019	3,069,000	14.30

The PRSUs granted in fiscal 2019, 2018 and 2017 listed below vest based on us achieving certain market performance criteria. The performance criteria are based on a metric called Total Shareholder Return ("TSR") for the performance period of two or three years, relative to the TSR of the companies identified as being part of the S&P Semiconductor Select Industry Index (FormFactor peer companies) as of a specific date.

Of the 195,000 PRSUs granted in fiscal 2016, 60,000 shares were forfeited. Therefore, 135,000 shares vested in fiscal 2019. These shares achieved 119.7% TSR performance, which resulted in 161,595 shares released in 2019.

PRSU grant activity was as follows:

Fiscal Year Ended

December 28, 2019

December 29, 2018

December 30, 2017

Grant Date

June 4, 2019

August 16, 2018

July 20, 2017

Performance period

July 1, 2019 - June 30, 2022

July 1, 2018 - June 30, 2021

July 1, 2017 - June 30, 2020

Number of shares

273,000

318,100

333,333

TSR as-of date

June 4, 2019

August 16, 2018

July 1, 2017

Stock-based compensation

$4.4 million

$4.7 million

$4.1 million

Employee Stock Purchase Plan

Our 2012 Employee Stock Purchase Plan (the "ESPP"), as amended, allows for the issuance of a total of 7,000,000 shares. The offering periods under the ESPP are 12 months commencing on February 1 of each calendar year and ending on January 31 of the subsequent calendar year, and a six-month fixed offering period commencing on August 1 of each calendar year and ending on January 31 of the subsequent calendar year. The 12-month offering period consists of two six-month purchase periods and the six-month offering period consists of one six-month purchase period. The price of the common stock purchased is 85% of the lesser of the fair market value of the common stock on the first day of the applicable offering period or the last day of each purchase period.

During fiscal 2019, employees purchased 544,271 shares under this program at a weighted average exercise price of $12.51 per share, which represented a weighted average discount of $3.40 per share from the fair value of the stock purchased. As of December 28, 2019, 2,657,222 shares remained available for issuance.

Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 28, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Foreign Currency Forward Contracts Outstanding

The following table provides information about our foreign currency forward contracts outstanding as of December 28, 2019 (in thousands):


Currency	Contract Position	Contract Amount (Local Currency)	Contract Amount (U.S. Dollars)


Euro	Buy	(3,367)	$	(3,932)
Japanese Yen	Sell	2,553,864	23,343
Korean Won	Buy	(2,669,885)	(2,304)


Total USD notional amount of outstanding foreign exchange contracts			$	17,107

The location and amount of gains (losses) related to derivative instruments designated as cash flow hedges on our Consolidated Statements of Income was as follows (in thousands):


	Amount of Loss Recognized in Accumulated OCI on Derivative		Location of Loss Reclassified from Accumulated OCI into Income	Amount of Loss Reclassified from Accumulated OCI into Income
Fiscal 2019	$	93	Cost of revenues	$	526
			Research and development	75
			Selling, general and administrative	172
				$	773

Fiscal 2018	$	—		$	—

Schedule of Non-designated Derivative Gains (Losses)

The location and amount of gains (losses) related to non-designated derivative instruments in the Consolidated Statements of Income were as follows (in thousands):


	Location of Gain (Loss) Recognized on Derivatives	Fiscal Year Ended
Derivatives Not Designated as Hedging Instruments				December 28, 2019			December 29, 2018			December 30, 2017
Foreign exchange forward contracts	Other income (expense), net	$	248		$	906		$	(2,505)

Schedule of the Impact of Cash Flow Hedges on Consolidated Financial Statements

The impact of the interest rate swaps on the Consolidated Statements of Income was as follows (in thousands):


	Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)		Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)		Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion )	Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion )
Fiscal 2019	$	(86)	Other income (expense), net	$	548	Other income (expense), net	$	—
Fiscal 2018	$	340	Other income (expense), net	$	721	Other income (expense), net	$	—
Fiscal 2017	$	287	Other income (expense), net	$	84	Other income (expense), net	$	29

Stockholders' Equity (Tables)

12 Months Ended

Dec. 28, 2019

Equity [Abstract]

Schedule of Stock Option Activity

Stock option activity was as follows:


	Outstanding Options
	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life in Years	Aggregate Intrinsic Value








Outstanding at December 29, 2018	524,725	$	8.00

Options exercised	(162,956)	7.21

Outstanding at December 28, 2019	361,769	$	8.35	2.16	$	6,400,367
Vested and expected to vest at December 28, 2019	361,769	$	8.35	2.16	$	6,400,367
Exercisable at December 28, 2019	361,769	$	8.35	2.16	$	6,400,367

Schedule of Restricted Stock Unit Activity

RSU activity was as follows:


	Number of Shares	Weighted Average Grant Date Fair Value
Restricted stock units at December 29, 2018	3,102,226	$	12.79
Granted	1,510,211	15.12
Vested	(1,391,373)	11.91
Canceled	(152,064)	13.47
Restricted stock units at December 28, 2019	3,069,000	14.30

Schedule of Performance Restricted Stock Unit Activity

PRSU grant activity was as follows:

Fiscal Year Ended

December 28, 2019

December 29, 2018

December 30, 2017

Grant Date

June 4, 2019

August 16, 2018

July 20, 2017

Performance period

July 1, 2019 - June 30, 2022

July 1, 2018 - June 30, 2021

July 1, 2017 - June 30, 2020

Number of shares

273,000

318,100

333,333

TSR as-of date

June 4, 2019

August 16, 2018

July 1, 2017

Stock-based compensation

$4.4 million

$4.7 million

$4.1 million

Balance Sheet Components - Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Accrued Liabilities, Current [Abstract]
Accrued compensation and benefits	$ 21,329	$ 15,600
Accrued employee stock purchase plan contributions withheld	3,331	3,174
Accrued warranty	1,942	2,102
Accrued income and other taxes	6,846	4,222
Other accrued expenses	2,991	2,633
Total	$ 36,439	$ 27,731

Income Taxes - Tax Cuts and Jobs Act of 2017 (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Income Tax Disclosure [Abstract]
Federal statutory rate	21.00%
Release of valuation allowance		$ 800
Provisional income inclusion for deemed repatriation		15,700
Deferred tax liabilities on undistributed earnings	$ 75	$ 53	$ 66

Segments and Geographic Information (Tables)

12 Months Ended

Dec. 28, 2019

Segment Reporting [Abstract]

Operating Results by Reportable Segments

The following table summarizes the operating results by reportable segment (dollars in thousands):


	Fiscal 2019
	Probe Cards			Systems			Corporate and Other			Total
Revenues	$	491,363		$	98,101		$	—		$	589,464
Gross profit	$	211,382		$	50,927		$	(24,813)		$	237,496
Gross margin	43.0		%	51.9		%	—		%	40.3		%


	Fiscal 2018
	Probe Cards			Systems			Corporate and Other			Total
Revenues	$	434,269		$	95,406		$	—		$	529,675
Gross profit	$	187,320		$	47,074		$	(24,055)		$	210,339
Gross margin	43.1		%	49.3		%	—		%	39.7		%


	Fiscal 2017
	Probe Cards			Systems		Corporate and Other			Total
Revenues	$	454,794		$	93,647	$	—		$	548,441
Gross profit	$	195,903		$	46,647	$	(26,953)		$	215,597
Gross margin	43.1		%	49.8%		—		%	39.3		%

Summary of Revenue by Geographic Region

The following table summarizes revenue, by geographic region, as a percentage of total revenues based upon ship-to location:


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
United States	26.3	%	25.2	%	34.0	%
South Korea	19.8		17.2		14.9
China	18.0		14.7		11.1
Taiwan	14.7		20.3		17.7
Japan	8.9		9.4		8.1
Europe	7.0		7.5		8.2
Asia-Pacific ⁽¹⁾	3.7		4.9		5.5
Rest of the world	1.6		0.8		0.5
Total Revenues	100.0	%	100.0	%	100.0	%

⁽¹⁾Asia-Pacific includes all countries in the region except Taiwan, South Korea, China, and Japan, which are disclosed separately.

Summary of Revenue by Market

The following table summarizes revenue by market (in thousands):


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
Foundry & Logic	$	318,552	$	258,459	$	313,714
DRAM	147,257		135,333		124,685
Flash	25,554		40,477		16,395
Systems	98,101		95,406		93,647
Total revenues	$	589,464	$	529,675	$	548,441

Summary of Revenue by Timing of Recognition

The following table summarizes revenue by timing of revenue recognition (in thousands):


	Fiscal Year Ended
	December 28, 2019										December 29, 2018								December 30, 2017
	Probe Cards		Systems		Total		Probe Cards		Systems		Total		Probe Cards		Systems		Total
Products transferred at a point in time	$	488,925	$	93,837	$	582,762	$	432,033	$	91,514	$	523,547	$	452,946	$	90,107	$	543,053
Services transferred over time	2,438		4,264		6,702		2,236		3,892		6,128		1,848		3,540		5,388
Total	$	491,363	$	98,101	$	589,464	$	434,269	$	95,406	$	529,675	$	454,794	$	93,647	$	548,441

Long-lived Assets by Location

Long-lived assets, comprised of Operating lease, right-of-use-assets, Property, plant and equipment, net, Goodwill and Intangibles, net, reported based on the location of the asset was as follows (in thousands):


	December 28, 2019		December 29, 2018		December 30, 2017
United States	$	287,600	$	280,405	$	299,574
Europe	52,309		26,118		30,922
Asia-Pacific	7,064		4,385		3,662
Total	$	346,973	$	310,908	$	334,158

Stock-Based Compensation

12 Months Ended

Dec. 28, 2019

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation Expense

Certain information regarding our stock-based compensation was as follows (in thousands, except per share amounts):


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017

Weighted average grant date per share fair value of RSUs granted	$	15.12	$	13.79	$	13.20
Total intrinsic value of stock options exercised	1,814		631		5,946
Fair value of RSUs vested	$	23,450	$	17,541	$	18,339

Stock-based compensation expense was included in the Consolidated Statements of Income as follows (in thousands):


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
Stock-based compensation expense included in:
Cost of revenues	$	4,055	$	3,525	$	3,539
Research and development	6,367		5,398		5,341
Selling, general and administrative	12,754		8,904		7,459

Total stock-based compensation	$	23,176	$	17,827	$	16,339

Unrecognized Stock-Based Compensation Expense

Unrecognized stock-based compensation expense at December 28, 2019 consisted of the following (in thousands):


	Unrecognized Expense		Weighted Average Recognition Period (Years)

Restricted stock units	$	24,038	1.9
Performance restricted stock units	6,570		2.0
Employee stock purchase plan	287		0.1
Total unrecognized stock-based compensation expense	$	30,895	1.9

Valuation Assumptions

The following assumptions were used in estimating the fair value of PRSUs:


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
PRSUs:
Dividend yield	—	%	—	%	—	%
Expected volatility	47.34%		45.61%		45.99%
Risk-free interest rate	1.83%		2.67%		1.50%
Expected life (in years)	3.07		2.87		2.95

The following assumptions were used in estimating the fair value of shares under the Employee Stock Purchase Plan:


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017






Employee Stock Purchase Plan:
Dividend yield	—	%	—	%	—	%
Expected volatility	36.60% - 59.51%		44.85% - 48.94%		46.20% - 46.33%
Risk-free interest rate	2.04% - 2.46%		0.83% - 2.22%		0.65% - 1.15%
Expected life (in years)	0.5 - 1.0		0.5 - 1.0		0.5 - 1.0

Balance Sheet Components - Inventory (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Balance Sheet Components [Abstract]
Raw materials	$ 38,528	$ 43,380
Work-in-progress	29,720	20,431
Finished goods	15,010	13,895
Inventory, Net	$ 83,258	$ 77,706

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 28, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Leases See Note 6. Environmental Matters We are subject to U.S. federal, state, local, and foreign governmental laws and regulations relating to the protection of the environment, including those governing the discharge of pollutants into the air and water, the management and disposal of hazardous substances and wastes, the clean-up of contaminated sites and the maintenance of a safe workplace. We believe that we comply in all material respects with the environmental laws and regulations that apply to us. We did not receive any notices of violations of environmental laws and regulations in fiscal 2019, 2018 or 2017. In the future, we may receive notices of violations of environmental regulations, or otherwise learn of such violations. Environmental contamination or violations may negatively impact our business. Indemnification Arrangements We have entered, and may from time to time in the ordinary course of our business enter, into contractual arrangements with third parties that include indemnification obligations. Under these contractual arrangements, we have agreed to defend, indemnify and/or hold the third party harmless from and against certain liabilities. These arrangements include indemnities in favor of customers in the event that our products or services infringe a third party's intellectual property or cause property or other indemnities in favor of our lessors in connection with facility leasehold liabilities that we may cause. In addition, we have entered into indemnification agreements with our directors and certain of our officers, and our bylaws contain indemnification obligations in favor of our directors, officers and agents. These indemnity arrangements may limit the type of the claim, the total amount that we can be required to pay in connection with the indemnification obligation and the time within which an indemnification claim can be made. The duration of the indemnification obligation may vary, and for most arrangements, survives the agreement term and is indefinite. We believe that substantially all of our indemnity arrangements provide either for limitations on the maximum potential future payments we could be obligated to make, or for limitations on the types of claims and damages we could be obligated to indemnify, or both. However, it is not possible to determine or reasonably estimate the maximum potential amount of future payments under these indemnification obligations due to the varying terms of such obligations, a lack of history of prior indemnification claims, the unique facts and circumstances involved in each particular contractual arrangement and in each potential future claim for indemnification, and the contingency of any potential liabilities upon the occurrence of events that are not reasonably determinable. We have not had any material requests for indemnification under these arrangements. We have not recorded any liabilities for these indemnification arrangements on our Consolidated Balance Sheets as of December 28, 2019 or December 29, 2018. Legal Matters From time to time, we may be subject to legal proceedings and claims in the ordinary course of business. As of December 28, 2019, and as of the filing of these financial statements, we were not involved in any material legal proceedings. In the future, we may become a party to additional legal proceedings that may require us to spend significant resources. Litigation can be expensive and disruptive to normal business operations. The results of legal proceedings are difficult to predict, and the costs incurred in litigation can be substantial, regardless of outcome.

Segments and Geographic Information - Revenue by Product Group (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Revenue from External Customers [Line Items]
Revenues	$ 178,629	$ 140,604	$ 138,018	$ 132,213	$ 140,887	$ 134,989	$ 135,509	$ 118,290	$ 589,464	$ 529,675	$ 548,441
Foundry & Logic
Revenue from External Customers [Line Items]
Revenues									318,552	258,459	313,714
DRAM
Revenue from External Customers [Line Items]
Revenues									147,257	135,333	124,685
Flash
Revenue from External Customers [Line Items]
Revenues									25,554	40,477	16,395
Systems
Revenue from External Customers [Line Items]
Revenues									$ 98,101	$ 95,406	$ 93,647

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Balances (in shares) at Dec. 31, 2016		70,907,847
Balances at Dec. 31, 2016	$ 401,056	$ 71	$ 833,341	$ (3,740)	$ (428,616)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock pursuant to exercise of options for cash (in shares)		1,473,389
Issuance of common stock pursuant to exercise of options for cash	13,837	$ 1	13,836
Issuance of common stock pursuant to vesting of restricted stock units (in shares)		862,596
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax	(6,885)	$ 1	(6,886)
Issuance of common stock under the Employee Stock Purchase Plan (in shares)		655,961
Issuance of common stock pursuant to exercise of options for cash	5,695	$ 1	5,694
Issuance of common stock under the Employee Stock Purchase Plan	0
Purchase and retirement of common stock (in shares)		(1,367,617)
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax	(18,970)	$ (1)	(18,969)
Purchase and retirement of common stock	16,230		16,230
Stock-based compensation	0		(130)		130
Stock-based compensation	6,761			6,761
Net income	$ 40,913				40,913
Balances (in shares) at Dec. 30, 2017	72,532,176
Balances at Dec. 30, 2017	$ 458,637	$ 73	843,116	3,021	(387,573)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock pursuant to exercise of options for cash (in shares)		134,609
Issuance of common stock pursuant to exercise of options for cash	1,158		1,158
Issuance of common stock pursuant to vesting of restricted stock units (in shares)		862,630
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax	(5,791)	$ 0	(5,791)
Issuance of common stock under the Employee Stock Purchase Plan (in shares)		610,297
Issuance of common stock pursuant to exercise of options for cash	6,662	$ 1	6,661
Issuance of common stock under the Employee Stock Purchase Plan	0
Purchase and retirement of common stock	17,753		17,753
Stock-based compensation	(50)				(50)
Stock-based compensation	(2,241)			(2,241)
Net income	$ 104,036				104,036
Balances (in shares) at Dec. 29, 2018	74,139,712	74,139,712
Balances at Dec. 29, 2018	$ 580,164	$ 74	862,897	780	(283,587)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock pursuant to exercise of options for cash (in shares)		162,956
Issuance of common stock pursuant to exercise of options for cash	1,176		1,176
Issuance of common stock pursuant to vesting of restricted stock units (in shares)		918,051
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax	(8,025)	$ 1	(8,026)
Issuance of common stock under the Employee Stock Purchase Plan (in shares)		544,271
Issuance of common stock pursuant to exercise of options for cash	6,807	$ 1	6,806
Issuance of common stock under the Employee Stock Purchase Plan	36,709
Purchase and retirement of common stock	22,968		22,968
Stock-based compensation	(1,439)			(1,439)
Net income	$ 39,346				39,346
Balances (in shares) at Dec. 28, 2019	75,764,990
Balances at Dec. 28, 2019	$ 640,997	$ 76	$ 885,821	$ (659)	$ (244,241)

Leases (Tables)

12 Months Ended

Dec. 28, 2019

Dec. 29, 2018

Leases [Abstract]

Components of Lease Expense

The components of lease expense for the year ended December 28, 2019 upon the adoption of ASC 842 were as follows (in thousands):


	Lease Expense
Operating lease expense	$	6,985
Short-term lease expense	142
Variable lease expense	1,286
	$	8,413

Schedule of Future Minimum Payments Under Leases - Topic 842

Future minimum payments under our non-cancelable operating leases under the new lease accounting rules (Topic 842) were as follows as of December 28, 2019 (in thousands):


Fiscal Year	Amount
2020	$	7,387
2021	6,647
2022	5,477
2023	4,937
2024	4,770
Thereafter	22,165
Total minimum lease payments	51,383
Less: interest	(15,744)
Present value of net minimum lease payments	35,639
Less: current portion	(6,551)
Total long-term operating lease liabilities	$	29,088

Schedule of Future Minimum Payments Under Leases - Topic 840

Future minimum payments under our non-cancelable operating leases under prior lease accounting rules (Topic 840) were as follows as of December 29, 2018 (in thousands):


Fiscal Year	Amount
2019	$	6,256
2020	6,522
2021	5,742
2022	4,786
2023	4,355
Thereafter	20,382
	$	48,043

Segments and Geographic Information

12 Months Ended

Dec. 28, 2019

Segment Reporting [Abstract]

Segments and Geographic Information

We operate in two reportable segments consisting of the Probe Cards Segment and the Systems Segment.

Our chief operating decision maker ("CODM") is our Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire company.

The following table summarizes the operating results by reportable segment (dollars in thousands):


	Fiscal 2019
	Probe Cards			Systems			Corporate and Other			Total
Revenues	$	491,363		$	98,101		$	—		$	589,464
Gross profit	$	211,382		$	50,927		$	(24,813)		$	237,496
Gross margin	43.0		%	51.9		%	—		%	40.3		%


	Fiscal 2018
	Probe Cards			Systems			Corporate and Other			Total
Revenues	$	434,269		$	95,406		$	—		$	529,675
Gross profit	$	187,320		$	47,074		$	(24,055)		$	210,339
Gross margin	43.1		%	49.3		%	—		%	39.7		%


	Fiscal 2017
	Probe Cards			Systems		Corporate and Other			Total
Revenues	$	454,794		$	93,647	$	—		$	548,441
Gross profit	$	195,903		$	46,647	$	(26,953)		$	215,597
Gross margin	43.1		%	49.8%		—		%	39.3		%

Operating results provide useful information to our management for assessment of our performance and results of operations. Certain components of our operating results are utilized to determine executive compensation along with other measures.

Corporate and Other includes unallocated expenses relating to amortization of intangible assets, share-based compensation expense, acquisition-related costs, including charges related to inventory stepped up to fair value, and other costs, which are not used in evaluating the results of, or in allocating resources to, our reportable segments. Acquisition-related costs include transaction costs and any costs directly related to the acquisition and integration of acquired businesses.

The following table summarizes revenue, by geographic region, as a percentage of total revenues based upon ship-to location:


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
United States	26.3	%	25.2	%	34.0	%
South Korea	19.8		17.2		14.9
China	18.0		14.7		11.1
Taiwan	14.7		20.3		17.7
Japan	8.9		9.4		8.1
Europe	7.0		7.5		8.2
Asia-Pacific ⁽¹⁾	3.7		4.9		5.5
Rest of the world	1.6		0.8		0.5
Total Revenues	100.0	%	100.0	%	100.0	%

⁽¹⁾Asia-Pacific includes all countries in the region except Taiwan, South Korea, China, and Japan, which are disclosed separately.

The following table summarizes revenue by market (in thousands):


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
Foundry & Logic	$	318,552	$	258,459	$	313,714
DRAM	147,257		135,333		124,685
Flash	25,554		40,477		16,395
Systems	98,101		95,406		93,647
Total revenues	$	589,464	$	529,675	$	548,441

The following table summarizes revenue by timing of revenue recognition (in thousands):


	Fiscal Year Ended
	December 28, 2019										December 29, 2018								December 30, 2017
	Probe Cards		Systems		Total		Probe Cards		Systems		Total		Probe Cards		Systems		Total
Products transferred at a point in time	$	488,925	$	93,837	$	582,762	$	432,033	$	91,514	$	523,547	$	452,946	$	90,107	$	543,053
Services transferred over time	2,438		4,264		6,702		2,236		3,892		6,128		1,848		3,540		5,388
Total	$	491,363	$	98,101	$	589,464	$	434,269	$	95,406	$	529,675	$	454,794	$	93,647	$	548,441


	December 28, 2019		December 29, 2018		December 30, 2017
United States	$	287,600	$	280,405	$	299,574
Europe	52,309		26,118		30,922
Asia-Pacific	7,064		4,385		3,662
Total	$	346,973	$	310,908	$	334,158

Income Taxes - Components of Loss Before Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract]
United States									$ 41,115	$ 20,877	$ 31,492
Foreign									9,948	13,050	10,714
Income before income taxes	$ 24,447	$ 9,863	$ 9,238	$ 7,515	$ 11,657	$ 9,081	$ 10,777	$ 2,412	$ 51,063	$ 33,927	$ 42,206

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 29, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Payments Under Leases - Topic 840

Future minimum payments under our non-cancelable operating leases under prior lease accounting rules (Topic 840) were as follows as of December 29, 2018 (in thousands):


Fiscal Year	Amount
2019	$	6,256
2020	6,522
2021	5,742
2022	4,786
2023	4,355
Thereafter	20,382
	$	48,043

Stockholders' Equity - Common Stock (Details) - USD ($)	12 Months Ended
Stockholders' Equity - Common Stock (Details) - USD ($)	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017	Feb. 28, 2017
Class of Stock [Line Items]
Dividends declared and paid	$ 0
Stock repurchased during the period, amount			$ 18,970,000
Purchase and retirement of common stock	$ 0	$ 0	$ (18,970,000)
Common Stock
Class of Stock [Line Items]
Stock repurchase program authorized amount				$ 25,000,000
Stock repurchased during the period (in shares)			1,367,617

Segments and Geographic Information - Revenue by Country (Details) - Geographic Concentration Risk - Geographic Concentration Risk	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Product Information [Line Items]
Total Revenues	100.00%	100.00%	100.00%
United States
Product Information [Line Items]
Total Revenues	26.30%	25.20%	34.00%
China
Product Information [Line Items]
Total Revenues	14.70%	20.30%	17.70%
South Korea
Product Information [Line Items]
Total Revenues	19.80%	17.20%	14.90%
Taiwan
Product Information [Line Items]
Total Revenues	18.00%	14.70%	11.10%
Japan
Product Information [Line Items]
Total Revenues	8.90%	9.40%	8.10%
Japan
Product Information [Line Items]
Total Revenues	7.00%	7.50%	8.20%
Asia-Pacific
Product Information [Line Items]
Total Revenues	3.70%	4.90%	5.50%
Rest of the world
Product Information [Line Items]
Total Revenues	1.60%	0.80%	0.50%

Debt - Additional Information (Details) - USD ($)			12 Months Ended
Debt - Additional Information (Details) - USD ($)	Oct. 25, 2019	Jun. 24, 2016	Dec. 29, 2018	Dec. 30, 2017	Dec. 28, 2019
Debt Instrument [Line Items]
Debt to earnings ratio, in year two		2.50
Minimum fixed charge coverage ratio in years one and two		1.50
Minimum fixed charge coverage ratio in year three		1.30
Minimum fixed charge coverage ratio, in year four and thereafter		1.20
FRT Term Loan [Member]
Debt Instrument [Line Items]
Senior secured loan to finance merger	$ 23,400,000
Stated rate					1.35%
Long-term line of credit, quarterly repayment amount	$ 1,900,000
Euro Interbank Offered Rate (EURIBOR) \| FRT Term Loan [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	175.00%
Senior Secured Term Loan
Debt Instrument [Line Items]
Interest payment term		5 years
Debt principal payable in current year, percentage		5.00%
Debt principal payable in year two, percentage		10.00%
Debt principal payable in year three, percentage		20.00%
Debt principal payable in year four, percentage		30.00%
Debt principal payable in year five, percentage		35.00%
Senior Secured Term Loan \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		2.00%
Senior Secured Term Loan \| Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate		1.00%
Senior Secured Term Loan \| Cascade Microtech
Debt Instrument [Line Items]
Senior secured loan to finance merger		$ 150,000,000
Repayments of debt			$ 15,000,000.0	$ 20,000,000.0
Senior Secured Term Loan \| Cascade Microtech \| FRT Term Loan [Member]
Debt Instrument [Line Items]
Senior secured loan to finance merger		$ 23,400,000

Segments and Geographic Information - Revenue by Timing of Recognition (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues	$ 178,629	$ 140,604	$ 138,018	$ 132,213	$ 140,887	$ 134,989	$ 135,509	$ 118,290	$ 589,464	$ 529,675	$ 548,441
Products transferred at a point in time
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues									582,762	523,547	543,053
Services transferred over time
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues									6,702	6,128	5,388
Probe Cards
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues									491,363	434,269	454,794
Probe Cards \| Products transferred at a point in time
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues									488,925	432,033	452,946
Probe Cards \| Services transferred over time
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues									2,438	2,236	1,848
Systems
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues									98,101	95,406	93,647
Systems \| Products transferred at a point in time
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues									93,837	91,514	90,107
Systems \| Services transferred over time
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues									$ 4,264	$ 3,892	$ 3,540

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 28, 2019

Accounting Policies [Abstract]

Schedules of Concentration of Risk, by Customer

The following customers represented 10% or more of our revenues:


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
Intel Corporation	25.3	%	19.0	%	25.9	%
Samsung Electronics., LTD.	11.5	%	*		*

Schedule of Product Warranty Liability Reconciliation

A reconciliation of the changes in our warranty liability is as follows (in thousands):


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
Balance at beginning of year	$	2,102	$	3,662	$	2,972

Accruals	3,881		3,181		8,115
Settlements	(4,041)		(4,741)		(7,425)
Balance at end of year	$	1,942	$	2,102	$	3,662

Schedule of Allowance for Doubtful Accounts

Activity related to our allowance for doubtful accounts receivable was as follows (in thousands):


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
Balance at beginning of year	$	185	$	200	$	299
Charges (reversals) to costs and expenses	37		(15)		(99)

Balance at end of year	$	222	$	185	$	200

Schedule of Calculation of Numerator and Denominator in Earnings Per Share

The following table reconciles the shares used in calculating basic net income per share and diluted net income per share (in thousands):


	Fiscal Year Ended
	December 28, 2019	December 29, 2018	December 30, 2017



Weighted-average shares used in computing basic net income per share	74,994	73,482	72,292
Add potentially dilutive securities	2,292	1,700	1,947
Weighted-average shares used in computing basic and diluted net income per share	77,286	75,182	74,239

Schedule of Accumulated Other Comprehensive Loss


	December 28, 2019		December 29, 2018
Unrealized losses on available-for-sale marketable securities	$	(352)	$	(668)
Translation adjustments and other	53		1,081
Unrealized gains (losses) on derivative instruments	(360)		367

Accumulated other comprehensive income (loss)	$	(659)	$	780

Summary of Significant Accounting Policies - Concentration of Credit Risk and Other Risks and Uncertainties (Details) - Customer Concentration Risk	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Intel Corporation \| Customer Concentration Risk
Concentration Risk [Line Items]
Total revenues attributable to customers greater than 10%	25.30%	19.00%	25.90%
Major Customer 1 \| Accounts Receivable
Concentration Risk [Line Items]
Total revenues attributable to customers greater than 10%	25.70%	27.80%
Major Customer 2 \| Accounts Receivable
Concentration Risk [Line Items]
Total revenues attributable to customers greater than 10%	15.10%	13.00%
samsung electronics (member) \| Customer Concentration Risk
Concentration Risk [Line Items]
Total revenues attributable to customers greater than 10%	11.50%
Major Customer 3 [Member] \| Accounts Receivable
Concentration Risk [Line Items]
Total revenues attributable to customers greater than 10%	11.50%

Acquisition - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Oct. 09, 2019	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities				$ (10,148)
Goodwill	$ 199,196		$ 189,214	189,920	$ 188,010
Cascade Microtech
Business Acquisition [Line Items]
Accounts payable and accrued liabilities				(1,235)
Intangible assets				17,550
Goodwill				10,148
Total acquisition price				$ 27,571
FRT
Business Acquisition [Line Items]
Cash and cash equivalents		$ 1,683
Accounts receivable		3,057
Inventory		2,643
Prepaid expenses and other current assets		838
Property, plant and equipment		696
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets		9,252
Accounts payable and accrued liabilities		(1,235)
Deferred tax liabilities		(5,796)
Total tangible assets acquired and liabilities assumed		(127)
Intangible assets		17,550
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other		2,013
Finite-lived intangible assets acquired		$ 10,148

Fair Value (Tables)

12 Months Ended

Dec. 28, 2019

Fair Value Disclosures [Abstract]

Schedule of Fair Values Measured on Recurring Basis


December 28, 2019	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	17,056	$	—	$	—	$	17,056

Marketable securities:
U.S. Treasuries	10,468		—		—		10,468
Certificates of deposit	—		3,590		—		3,590
Agency securities	—		24,430		—		24,430
Corporate bonds	—		33,928		—		33,928
Commercial paper	—		3,911		—		3,911
	10,468		65,859		—		76,327
Foreign exchange derivative contracts	—		41		—		41
Interest rate swap derivative contracts	—		26		—		26
Total assets	$	27,524	$	65,926	$	—	$	93,450
Liabilities:
Foreign exchange derivative contracts	$	—	$	(240)	$	—	$	(240)
Contingent consideration	—		—		(5,364)		(5,364)
Total liabilities	$	—	$	(240)	$	(5,364)	$	(5,604)


December 29, 2018	Level 1		Level 2		Total
Assets:
Cash equivalents:
Money market funds	$	1,184	$	—	$	1,184


Marketable securities:
U.S. Treasuries	7,997		—		7,997
Certificates of deposit	—		957		957
Agency securities	—		8,608		8,608
Corporate bonds	—		30,674		30,674
Commercial paper	—		2,295		2,295
	7,997		42,534		50,531

Interest rate swap derivative contracts	—		871		871
Total assets	$	9,181	$	43,405	$	52,586

Balance Sheet Components (Tables)

12 Months Ended

Dec. 28, 2019

Balance Sheet Components [Abstract]

Schedule of Marketable Securities

Marketable securities consisted of the following (in thousands):


December 28, 2019	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasuries	$	10,458	$	11	$	—	$	10,469
Commercial paper	3,914		1		(4)		3,911
Corporate bond	33,867		68		(7)		33,928
Certificate of deposit	3,584		5		—		3,589
Agency securities	24,408		38		(16)		24,430
	$	76,231	$	123	$	(27)	$	76,327


December 29, 2018	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasuries	$	7,997	$	1	$	(1)	$	7,997
Commercial paper	2,296		—		(1)		2,295
Corporate bond	30,833		1		(160)		30,674
Certificate of deposit	960		—		(3)		957
Agency securities	8,667		—		(59)		8,608
	$	50,753	$	2	$	(224)	$	50,531

Contractual Maturity of Marketable Securities

The contractual maturities of marketable securities were as follows (in thousands):


	December 28, 2019						December 29, 2018
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	38,899	$	38,944	$	35,269	$	35,172
Due after one year to five years	37,332		37,383		15,484		15,359
	$	76,231	$	76,327	$	50,753	$	50,531

Schedule of Net Inventory

Inventories consisted of the following (in thousands):


	December 28, 2019		December 29, 2018
Raw materials	$	38,528	$	43,380
Work-in-progress	29,720		20,431
Finished goods	15,010		13,895
	$	83,258	$	77,706

Schedule of Property, Plant and Equipment

Property, plant and equipment, net consisted of the following (in thousands):


	December 28, 2019		December 29, 2018
Machinery and equipment	$	201,861	$	192,108
Computer equipment and software	35,192		32,906
Furniture and fixtures	6,756		6,478
Leasehold improvements	76,081		75,285
Sub-total	319,890		306,777
Less: Accumulated depreciation and amortization	(273,001)		(263,102)
Net property, plant and equipment	46,889		43,675
Construction-in-progress	11,858		10,379
Total	$	58,747	$	54,054

Schedule of Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):


	December 28, 2019		December 29, 2018
Accrued compensation and benefits	$	21,329	$	15,600
Accrued employee stock purchase plan contributions withheld	3,331		3,174
Accrued warranty	1,942		2,102
Accrued income and other taxes	6,846		4,222
Other accrued expenses	2,991		2,633
	$	36,439	$	27,731

Leases - Schedule of Future Minimum Payments Under Leases (Details) $ in Thousands	Dec. 28, 2019 USD ($)
Leases [Abstract]
2020	$ 7,387
2021	6,647
2022	5,477
2023	4,937
2024	4,770
Thereafter	22,165
Lessee, Operating Lease, Liability, Payments, Due	$ 51,383

Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Debt Disclosure [Abstract]
Long-term Debt, Gross	$ 58,514	$ 65,000
Debt Issuance Costs, Net	(29)	(189)
Total	$ 58,485	$ 64,811

Income Taxes

12 Months Ended

Dec. 28, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Components of Income Before Income Taxes

The components of income before income taxes were as follows (in thousands):


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
United States	$	41,115	$	20,877	$	31,492
Foreign	9,948		13,050		10,714
	$	51,063	$	33,927	$	42,206

Provision for Income Taxes

The components of the provision (benefit) for income taxes are as follows (in thousands):


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
Current provision (benefit):
Federal	$	179	$	79	$	(2,130)
State	2,302		388		17
Foreign	4,202		4,687		4,069
	6,683		5,154		1,956
Deferred provision (benefit):
Federal	8,128		(72,295)		66
State	(1,898)		(2,056)		—
Foreign	(1,196)		(912)		(729)
	5,034		(75,263)		(663)
Total provision (benefit) for income taxes	$	11,717	$	(70,109)	$	1,293

Tax Rate Reconciliation


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
U.S. statutory federal tax rate	$	10,723	$	7,125	$	14,772
State taxes, net of federal benefit	441		778		951
Stock-based compensation	(911)		(453)		(1,428)
Research and development credits	(6,436)		(3,213)		(1,979)
Foreign taxes at rates different than the U.S.	1,454		1,287		(271)
Other permanent differences	(148)		152		160
Global intangible low-taxed income	1,369		1,828		—
Mandatory deemed repatriation	—		—		1,655
Change in valuation allowance	2,567		(75,803)		(12,207)
Other	2,658		(1,810)		(360)
Total	$	11,717	$	(70,109)	$	1,293

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities are recognized for the future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax basis using enacted tax rates in effect for the year in which the differences are expected to be reversed.

Significant deferred tax assets and liabilities consisted of the following (in thousands):


	As of
	December 28, 2019		December 29, 2018
Tax credits	$	44,696	$	39,586
Inventory reserve	12,350		10,850
Other reserves and accruals	5,852		5,398
Non-statutory stock options	2,982		2,722
Depreciation and amortization	27,758		1,979
Net operating loss carryforwards	21,410		61,275
Gross deferred tax assets	115,048		121,810
Valuation allowance	(36,604)		(34,037)
Total deferred tax assets	78,444		87,773
Acquired intangibles and fixed assets	(13,997)		(12,667)
Unrealized investment gains	(106)		(107)
Tax on undistributed earnings	(75)		(53)
Total deferred tax liabilities	(14,178)		(12,827)
Net deferred tax assets	$	64,266	$	74,946

We are required to evaluate the realizability of our deferred tax assets in both our U.S. and non-U.S. jurisdictions on an ongoing basis to determine whether there is a need for a valuation allowance with respect to such deferred tax assets. From the fourth quarter of fiscal 2009 to the third quarter of fiscal 2018, we maintained a 100% valuation allowance against most of our U.S. deferred tax assets because there was insufficient positive evidence to overcome the existing negative evidence such that it was not more likely than not that the U.S. deferred tax assets were realizable. While we reported U.S. pre-tax income in fiscal 2015 and fiscal 2017, because we reported U.S. pre-tax losses during the previous seven fiscal years, we continued to maintain the 100% valuation allowance through the third quarter of fiscal 2018.

As of December 29, 2018, we had reported positive operating performance in the U.S. for two consecutive fiscal years and had also reported a cumulative three-year U.S. pre-tax profit. In addition, during the fourth quarter of fiscal 2018, we completed our financial plan for fiscal 2019 and expected continued positive operating performance in the U.S. We also considered forecasts of future taxable income and evaluated the utilization of net operating losses and tax credit carryforwards prior to their expiration. After considering these factors, we determined that the positive evidence overcame any negative evidence and concluded that it was more likely than not that the U.S. deferred tax assets were realizable. As a result, we released the valuation allowance against a significant portion of the U.S. federal deferred tax assets and a portion of the U.S. state deferred tax assets during the fourth quarter of fiscal 2018.

The valuation allowance decreased by $75.8 million in fiscal 2018, primarily due to the release of the valuation allowance on U.S. deferred tax assets. As of December 28, 2019, we maintained a valuation allowance of $36.6 million, primarily related to California deferred tax assets and foreign tax credit carryovers, due to uncertainty about the future realization of these assets.

Tax Credits and Carryforwards

Tax credits and carryforwards available to us at December 28, 2019 consisted of the following (in thousands):


	Amount		Latest Expiration Date
Federal research and development tax credit	$	37,494	2021-2039
Federal net operating loss carryforwards	14,589		2031-2035
Foreign tax credit carryforwards	1,134		2020-2027
Alternative minimum tax credits	195		Indefinite
California research credits	39,228		Indefinite

State net operating loss carryforwards	243,934		2024-2036

Singapore net operating loss carryforwards	$	8,340	Indefinite

Undistributed Earnings

As of December 28, 2019, unremitted earnings of foreign subsidiaries was estimated at $26.1 million. We intend to permanently invest $12.0 million of undistributed earnings indefinitely outside of the U.S. To the extent we repatriate the remaining $14.1 million of undistributed foreign earnings to the U.S., we established a deferred tax liability of $0.1 million for foreign withholding taxes.

Unrecognized Tax Benefits

We recognize the benefits of tax return positions if we determine that the positions are “more-likely-than-not” to be sustained by the taxing authority. Interest and penalties accrued on unrecognized tax benefits are recorded as tax expense in the period incurred.

The following table reflects changes in the unrecognized tax benefits (in thousands):


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
Unrecognized tax benefit, beginning balance	$	25,224	$	18,296	$	17,978
Additions based on tax positions related to the current year	3,679		1,677		694
Additions based on tax positions from prior years	—		5,332		—
Reductions for tax positions of prior years	(5)		(7)		—
Reductions due to lapse of the applicable statute of limitations	(98)		(74)		(376)
Unrecognized tax benefit, ending balance	$	28,800	$	25,224	$	18,296

Interest and penalties recognized as a component of Provision (benefit) for income taxes	$	59	$	71	$	67
Interest and penalties accrued at period end	212		230		218

Of the unrecognized tax benefits at December 28, 2019, $13.4 million would impact the effective tax rate if recognized.

The amount of income taxes we pay is subject to ongoing audits by federal, state and foreign tax authorities which might result in proposed assessments. Our estimate for the potential outcome for any uncertain tax issue is judgmental in nature. However, we believe we have adequately provided for any reasonably foreseeable outcome related to those matters. Our future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period the assessments are made or resolved or when statutes of limitation on potential assessments expire. As of December 28, 2019, changes to our uncertain tax positions in the next 12 months that are reasonably possible are not expected to have a significant impact on our financial position or results of operations.

At December 28, 2019, our tax years 2016 through 2019, 2015 through 2019 and 2014 through 2019, remain open for examination in the federal, state and foreign jurisdictions, respectively. However, to the extent allowed by law, the taxing authorities may have the right to examine prior periods where net operating losses and credits were generated and carried forward, and make adjustments up to the net operating loss and credit carryforward amounts.

Tax Cuts and Jobs Act of 2017

The Tax Act was enacted in December 2017. The Tax Act significantly changes U.S. tax law effective January 1, 2018 by, among other things, lowering U.S. corporate income tax rates from 35% to 21%, repealing corporate alternative minimum tax, implementing a territorial tax system and imposing a one-time transition tax on deemed repatriated earnings of foreign subsidiaries.

The Tax Act provided for the repeal of corporate alternative minimum tax and made AMT tax credits fully refundable in future years. As a result, we reassessed the realizability of our deferred tax assets and released the valuation allowance against $0.8 million of AMT tax credits at December 30, 2017.

Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. As a result of the reduction in the U.S. corporate income tax rate, we revalued our ending U.S. deferred tax assets at December 30, 2017, offset by a corresponding change in the U.S. valuation allowance with no material impact to the fiscal 2017 tax provision.

The Tax Act provided for a one-time transition tax on the deemed repatriation of post-1986 undistributed foreign subsidiary earnings and profits (“E&P”). The estimated tax effects of the provisional income inclusion of $15.7 million for the deemed repatriation transition tax was fully offset by the benefit of current and carryforward foreign tax credits previously subjected to a full valuation allowance. We paid no U.S. federal cash taxes on the deemed repatriation. The deemed repatriation of undistributed foreign earnings also resulted in a reassessment of the permanent reinvestment of undistributed foreign earnings and profits and we established a deferred tax liability of $66 thousand for withholding taxes associated with those earnings which were not permanently reinvested as of December 30, 2017.

The SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act and allows the registrant to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. We recognized the provisional impacts related to the one-time transition tax, the revaluation of deferred tax balances and reassessment of the realizability of deferred tax assets and included these estimates in our consolidated financial statements for the year ended December 30, 2017. We completed our analysis within the measurement period in accordance with SAB 118 and did not have a material impact to our consolidated financial statements.

Selected Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 28, 2019

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

The results of operations for any quarter are not necessarily indicative of the results to be expected for any future period.


	Fiscal Quarters Ended
	Dec. 28, 2019		Sep. 28, 2019		June 29, 2019		March 30, 2019		Dec. 29, 2018⁽¹⁾		Sep. 29, 2018		June 30, 2018		March 31, 2018
	(in thousands, except per share data)
Revenues	$	178,629	$	140,604	$	138,018	$	132,213	$	140,887	$	134,989	$	135,509	$	118,290
Cost of revenues	104,324		85,286		82,666		79,692		84,865		82,019		79,291		73,161
Gross profit	74,305		55,318		55,352		52,521		56,022		52,970		56,218		45,129
Operating Expenses:
Research and development	21,606		20,096		20,074		19,723		18,398		18,857		19,675		18,046
Selling, general and administrative	28,981		25,887		26,283		25,184		25,828		24,745		25,232		23,449




Total operating expenses	50,587		45,983		46,357		44,907		44,226		43,602		44,907		41,495
Operating income	23,718		9,335		8,995		7,614		11,796		9,368		11,311		3,634
Interest income	726		724		684		580		404		369		326		257
Interest expense	(376)		(422)		(522)		(595)		(660)		(777)		(910)		(967)
Other income (expense), net	379		226		81		(84)		117		121		50		(512)
Income before income taxes	24,447		9,863		9,238		7,515		11,657		9,081		10,777		2,412
Provision (benefit) for income taxes	5,811		1,584		2,290		2,032		(73,443)		1,393		1,654		287
Net income	$	18,636	$	8,279	$	6,948	$	5,483	$	85,100	$	7,688	$	9,123	$	2,125
Net income per share:⁽²⁾
Basic	$	0.25	$	0.11	$	0.09	$	0.07	$	1.15	$	0.10	$	0.12	$	0.03
Diluted	$	0.24	$	0.11	$	0.09	$	0.07	$	1.13	$	0.10	$	0.12	$	0.03
Weighted average number of shares used in per share calculations:
Basic	75,731		75,280		74,478		74,362		74,108		73,837		73,157		72,826
Diluted	78,055		77,291		76,189		76,009		75,416		74,962		74,533		74,342

(1)In the fourth quarter of fiscal 2018, the tax benefit included a $75.8 million benefit from a valuation allowance release against certain U.S. deferred tax assets.

(2)Quarterly net income per share amounts may not add to the yearly totals due to rounding.

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 28, 2019

Share-based Payment Arrangement [Abstract]

Schedule of Additional Information Regarding Stock Based Compensation

Certain information regarding our stock-based compensation was as follows (in thousands, except per share amounts):


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017

Weighted average grant date per share fair value of RSUs granted	$	15.12	$	13.79	$	13.20
Total intrinsic value of stock options exercised	1,814		631		5,946
Fair value of RSUs vested	$	23,450	$	17,541	$	18,339

Schedule of Stock-based Compensation Expense

Stock-based compensation expense was included in the Consolidated Statements of Income as follows (in thousands):


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
Stock-based compensation expense included in:
Cost of revenues	$	4,055	$	3,525	$	3,539
Research and development	6,367		5,398		5,341
Selling, general and administrative	12,754		8,904		7,459

Total stock-based compensation	$	23,176	$	17,827	$	16,339

Schedule of Unrecognized Compensation Expense

Unrecognized stock-based compensation expense at December 28, 2019 consisted of the following (in thousands):


	Unrecognized Expense		Weighted Average Recognition Period (Years)

Restricted stock units	$	24,038	1.9
Performance restricted stock units	6,570		2.0
Employee stock purchase plan	287		0.1
Total unrecognized stock-based compensation expense	$	30,895	1.9

Schedule of Assumptions, Fair Value of Employee Purchase Rights

The following assumptions were used in estimating the fair value of shares under the Employee Stock Purchase Plan:


	Fiscal Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017






Employee Stock Purchase Plan:
Dividend yield	—	%	—	%	—	%
Expected volatility	36.60% - 59.51%		44.85% - 48.94%		46.20% - 46.33%
Risk-free interest rate	2.04% - 2.46%		0.83% - 2.22%		0.65% - 1.15%
Expected life (in years)	0.5 - 1.0		0.5 - 1.0		0.5 - 1.0

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefit, beginning balance	$ 25,224	$ 18,296	$ 17,978
Additions based on tax positions related to the current year	3,679	1,677	694
Additions based on tax positions from prior years	0	5,332	0
Reductions for tax positions of prior years	(5)	(7)	0
Reductions due to lapse of the applicable statute of limitations	(98)	(74)	(376)
Unrecognized tax benefit, ending balance	28,800	25,224	18,296
Interest and penalties recognized as a component of Provision (benefit) for income taxes	59	71	67
Interest and penalties accrued at period end	212	$ 230	$ 218
Tax-effected unrecognized tax benefits	$ 13,400

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Finite-Lived Intangible Assets [Line Items]
Gross	$ 208,672	$ 195,577
Accumulated Amortization	151,062	127,937
Net	57,610	67,640
Existing developed technologies
Finite-Lived Intangible Assets [Line Items]
Gross	154,951	143,408
Accumulated Amortization	116,138	97,111
Net	38,813	46,297
Trade name
Finite-Lived Intangible Assets [Line Items]
Gross	7,816	12,023
Accumulated Amortization	6,976	9,173
Net	840	2,850
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross	44,229	40,146
Accumulated Amortization	27,057	21,653
Net	17,172	18,493
Backlog
Finite-Lived Intangible Assets [Line Items]
Gross	1,676	0
Accumulated Amortization	891	0
Net	$ 785	$ 0

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Components of Deferred Tax Assets and Liabilities [Abstract]
Tax credits	$ 39,586	$ 44,696	$ 39,586
Inventory reserve	10,850	12,350	10,850
Other reserves and accruals	5,398	5,852	5,398
Non-statutory stock options	2,722	2,982	2,722
Depreciation and amortization	1,979	27,758	1,979
Net operating loss carryforwards	61,275	21,410	61,275
Gross deferred tax assets	121,810	115,048	121,810
Valuation allowance	(34,037)	(36,604)	(34,037)
Total deferred tax assets	87,773	78,444	87,773
Acquired intangibles and fixed assets	(12,667)	(13,997)	(12,667)
Unrealized investment gains	(107)	(106)	(107)
Tax on undistributed earnings	(53)	(75)	(53)	$ (66)
Total deferred tax liabilities	(12,827)	(14,178)	(12,827)
Net deferred tax assets		$ 64,266
Net deferred tax liabilities	(74,946)		(74,946)
Decrease in valuation allowance	$ (75,800)		$ 75,800
Federal statutory rate		21.00%

Derivative Financial Instruments - Gains (Losses) Of Cash Flow Hedges (Details) - Foreign Exchange Forward - Designated as Hedging Instrument - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Derivatives, Fair Value [Line Items]
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)	$ 93	$ 0
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	773	$ 0
Cost of Sales
Derivatives, Fair Value [Line Items]
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	526
Research and development
Derivatives, Fair Value [Line Items]
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	75
Selling, general and administrative
Derivatives, Fair Value [Line Items]
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	$ 172