XML 18 R9.htm IDEA: XBRL DOCUMENT
v3.23.2

Summary of Significant Accounting Policies and Other Information | 6 Months Ended
--- | ---
Jul. 01, 2023
Accounting Policies [Abstract] |
Summary of Significant Accounting Policies and Other Information | Summary of Significant Accounting Policies and Other Information Nature of Operations Founded in 1927, Littelfuse is a diversified, industrial technology manufacturing company empowering a sustainable, connected, and safer world. Across more than 20 countries, and with approximate ly 18,000 glob al associates, the Company partners with customers to design and deliver innovative, reliable solutions. Serving over 100,000 end customers, the Company’s products are found in a variety of industrial, transportation and electronics end markets – everywhere, every day. Basis of Presentation The Company’s accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures normally included in the consolidated balance sheets, statements of net income and comprehensive income, statements of cash flows, and statements of stockholders' equity prepared in conformity with U.S. GAAP have been condensed or omitted as permitted by such rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. They have been prepared in accordance with accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, which should be read in conjunction with the disclosures therein. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal, recurring nature. Operating results for interim periods are not necessarily indicative of annual operating results. Revenue Recognition Revenue Disaggregation The following tables disaggregate the Company’s revenue by primary business units for the three and six months ended July 1, 2023 and July 2, 2022:
|  | Three Months Ended July 1, 2023 |  | Six Months Ended July 1, 2023
(in thousands) |  | Electronics Segment |  | Transportation Segment |  | Industrial Segment |  | Total |  | Electronics Segment |  | Transportation Segment |  | Industrial Segment |  | Total
Electronics – Passive Products and Sensors |  | $ | 152,852 |  |  | $ | — |  |  | $ | — |  |  | $ | 152,852 |  |  | $ | 301,450 |  |  | $ | — |  |  | $ | — |  |  | $ | 301,450 |
Electronics – Semiconductor |  | 197,295 |  |  | — |  |  | — |  |  | 197,295 |  |  | 407,290 |  |  | — |  |  | — |  |  | 407,290 |
Passenger Car Products |  | — |  |  | 65,883 |  |  | — |  |  | 65,883 |  |  | — |  |  | 127,580 |  |  | — |  |  | 127,580 |
Automotive Sensors |  | — |  |  | 22,836 |  |  | — |  |  | 22,836 |  |  | — |  |  | 43,634 |  |  | — |  |  | 43,634 |
Commercial Vehicle Products |  | — |  |  | 83,329 |  |  | — |  |  | 83,329 |  |  | — |  |  | 167,475 |  |  | — |  |  | 167,475 |
Industrial Products |  | — |  |  | — |  |  | 89,802 |  |  | 89,802 |  |  | — |  |  | — |  |  | 174,350 |  |  | 174,350 |
Total |  | $ | 350,147 |  |  | $ | 172,048 |  |  | $ | 89,802 |  |  | $ | 611,997 |  |  | $ | 708,740 |  |  | $ | 338,689 |  |  | $ | 174,350 |  |  | $ | 1,221,779 |
|  | Three Months Ended July 2, 2022 |  | Six Months Ended July 2, 2022
(in thousands) |  | Electronics Segment |  | Transportation Segment |  | Industrial Segment |  | Total |  | Electronics Segment |  | Transportation Segment |  | Industrial Segment |  | Total
Electronics – Passive Products and Sensors |  | $ | 162,313 |  |  | $ | — |  |  | $ | — |  |  | $ | 162,313 |  |  | $ | 332,256 |  |  | $ | — |  |  | $ | — |  |  | $ | 332,256 |
Electronics – Semiconductor |  | 195,863 |  |  | — |  |  | — |  |  | 195,863 |  |  | 391,741 |  |  | — |  |  | — |  |  | 391,741 |
Passenger Car Products |  | — |  |  | 59,778 |  |  | — |  |  | 59,778 |  |  | — |  |  | 124,272 |  |  | — |  |  | 124,272 |
Automotive Sensors |  | — |  |  | 23,201 |  |  | — |  |  | 23,201 |  |  | — |  |  | 49,338 |  |  | — |  |  | 49,338 |
Commercial Vehicle Products |  | — |  |  | 99,048 |  |  | — |  |  | 99,048 |  |  | — |  |  | 192,921 |  |  | — |  |  | 192,921 |
Industrial Products |  | — |  |  | — |  |  | 78,233 |  |  | 78,233 |  |  |  |  |  |  | 151,238 |  |  | 151,238 |
Total |  | $ | 358,176 |  |  | $ | 182,027 |  |  | $ | 78,233 |  |  | $ | 618,436 |  |  | $ | 723,997 |  |  | $ | 366,531 |  |  | $ | 151,238 |  |  | $ | 1,241,766 |
See Note 15, Segment Information for net sales by segment and countries. Revenue Recognition The Company recognizes revenue on product sales in the period in which the Company satisfies its performance obligation and control of the product is transferred to the customer. The Company’s sales arrangements with customers are predominately short term in nature and generally provide for transfer of control at the time of shipment as this is the point at which title and risk of loss of the product transfers to the customer. At the end of each period, for those shipments where title to the products and the risk of loss and rewards of ownership do not transfer until the product has been received by the customer, the Company adjusts revenues and cost of sales for the delay between the time that the products are shipped and when they are received by the customer. The amount of revenue recorded reflects the consideration to which the Company expects to be entitled in exchange for goods and may include adjustments for customer allowance, rebates and price adjustments. The Company’s distribution channels are primarily through direct sales and independent third-party distributors. The Company elected the practical expedient under Accounting Standards Codification ("ASC") 340-40-25-4 to expense commissions when incurred as the amortization period of the commission asset the Company would have otherwise recognized is less than one year. Revenue and Billing The Company generally accepts orders from customers through receipt of purchase orders or electronic data interchange based on written sales agreements and purchasing contracts. Contract pricing and selling agreement terms are based on market factors, costs, and competition. Pricing is often negotiated as an adjustment (premium or discount) from the Company’s published price lists. The customer is invoiced when the Company’s products are shipped to them in accordance with the terms of the sales agreement. As the Company’s standard payment terms are less than one year, the Company elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company also elected the practical expedient provided in ASC 606-10-25-18B to treat all product shipping and handling activities as fulfillment activities, and therefore recognize the gross revenue associated with the contract, inclusive of any shipping and handling revenue. Ship and Debit Program Some of the terms of the Company’s sales agreements and normal business conditions provide customers (distributors) the ability to receive price adjustments on products previously shipped and invoiced. This practice is common in the industry and is referred to as a “ship and debit” program. This program allows the distributor to debit the Company for the difference between the distributors’ contracted price and a lower price for specific transactions. Under certain circumstances (usually in a competitive situation or large volume opportunity), a distributor will request authorization for pricing allowances to reduce its price. When the Company approves such a reduction, the distributor is authorized to “debit” its account for the difference between the contracted price and the lower approved price. The Company establishes reserves for this program based on historical activity, distributor inventory levels and actual authorizations for the debit and recognizes these debits as a reduction of revenue. Return to Stock The Company has a return to stock policy whereby certain customers, with prior authorization from Littelfuse management, can return previously purchased goods for full or partial credit. The Company establishes an estimated allowance for these returns based on historical activity. Sales revenue and cost of sales are reduced to anticipate estimated returns. Volume Rebates The Company offers volume based sales incentives to certain customers to encourage greater product sales. If customers achieve their specific quarterly or annual sales targets, they are entitled to rebates. The Company estimates the projected amount of rebates that will be achieved by the customer and recognizes this estimated cost as a reduction to revenue as products are sold. Cash, Cash Equivalents, and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash at July 1, 2023 and December 31, 2022 reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statement of Cash Flows.
(in thousands) |  | July 1, 2023 |  | December 31, 2022
Cash and cash equivalents |  | $ | 480,743 |  |  | $ | 562,588 |
Restricted cash included in prepaid expenses and other current assets |  | 771 |  |  | 802 |
Restricted cash included in other long-term assets |  | 1,580 |  |  | 1,549 |
Total cash, cash equivalents, and restricted cash |  | $ | 483,094 |  |  | $ | 564,939 |
Recently Issued Accounting Standards In March 2023, the Financial Accounting Standards Board ("FASB") issued ASU No. 2023-01, "Leases (Topic 842): Common Control Arrangements". The standard requires that leasehold improvements associated with common control leases be: 1) Amortized by the lessee over the useful life of the leasehold improvements to the common control group (regardless of the lease term) as long as the lessee controls the use of the underlying asset (the leased asset) through a lease. However, if the lessor obtained the right to control the use of the underlying asset through a lease with another entity not within the same common control group, the amortization period may not exceed the amortization period of the common control group. 2) Accounted for as a transfer between entities under common control through an adjustment to equity (or net assets for not-for-profit entities) if, and when, the lessee no longer controls the use of the underlying asset. Additionally, those leasehold improvements are subject to the impairment guidance in Topic 360, Property, Plant, and Equipment. This standard is effective on January 1, 2024. The Company does not expect any material effect on the Company's Condensed Consolidated Financial Statements.

X
- References No definition available. + Details
Name: | us-gaap_AccountingPoliciesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for all significant accounting policies of the reporting entity. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483426/235-10-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 235 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//235/tableOfContent + Details
Name: | us-gaap_SignificantAccountingPoliciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration