Company: COHU
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001437749-25-004612
Chunk: 125

Company: COHU INC
Filing Date: 2025-02-20
Form: 10-K
Item: Item 1
Chunk 125
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 capital. The MCT Acquisition was accounted for in conformity with ASC Topic 805, Business Combinations, (“ASC 805”).

73

			COHU, INC.

			NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The acquired assets and liabilities of MCT were recorded at their respective fair values including an amount for goodwill representing the difference between the consideration paid and the fair value of the identifiable net assets. The purchase price allocation was finalized during the fourth quarter of 2023. The table below summarizes the assets acquired and liabilities assumed as of January 30, 2023 (in thousands):

			Current assets, including cash received

			$
			
			9,505

			Property, plant and equipment

			197

			Other assets

			356

			Intangible assets

			12,000

			Goodwill

			8,755

			Total assets acquired

			30,813

			Liabilities assumed

			(4,024
			)

			Net assets acquired

			$
			26,789

The allocation of the intangible assets subject to amortization is as follows (in thousands):

			Estimated

			Fair Value

			Weighted

			Average

			Useful Life

			(years)

			Developed technology

			$
			7,500

			7.0

			Customer relationships

			4,000

			10.0

			Product backlog

			500

			0.5

			Total intangible assets

			$
			12,000

Acquired intangible assets reported above are being amortized using the straight-line method over their estimated useful lives which approximates the pattern of how the economic benefit is expected to be used. This includes amounts allocated to customer relationships because of anticipated high customer retention rates that are common in the semiconductor capital equipment industry.

The value assigned to developed technology was determined by using the relief from royalty method under the income approach, which included assumptions related to revenue growth rates, royalty rates, and discount rates. Developed technology, which comprises products that have reached technological feasibility, includes the products in MCT’s product line. The revenue estimates used to value the developed technology were based on estimates of relevant market sizes and growth factors, expected trends in technology and the nature and expected timing of new product introductions by MCT and competitors. The estimated after-tax cash flows