Company: COHU
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001437749-25-024281
Chunk: 37

Company: COHU INC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 1
Chunk 37
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2024 we began hedging foreign currency risk associated with net investment positions in certain of our foreign subsidiaries. To accomplish this, we enter into foreign currency forward contracts that are designated as hedges of our net investment.

The location and amount of losses from net investment hedges recorded in the foreign currency translation component of accumulated AOCL were as follows (in thousands):

			Three Months Ended

			Six Months Ended

			Derivatives designated

			Location of gain (loss)

			June 28,

			June 29,

			June 28,

			June 29,

			as hedging instruments

			recognized on derivatives

			2025

			2024

			2025

			2024

			Foreign exchange forward contracts

			AOCL

			$
			(6,102
			)

			N/A

			$
			(8,671
			)

			N/A

Gains recognized in foreign transaction loss, in the condensed consolidated statements of operations for the portion of the net investment hedges excluded from the assessment of hedge effectiveness was $0.4 million and $0.7 million for the three- and six-month periods ended June 28, 2025, respectively.

Cash flows associated with settlements of our non-designated foreign currency forward contracts are reported in net cash provided by operating activities and our net investment hedges are included in investing activities in our condensed consolidated statements of cash flows.

23

Cohu, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

June 28, 2025

Fair Value

The fair value of our foreign currency forward contracts was determined based on current foreign currency exchange rates and forward points. All our foreign currency forward contracts outstanding on June 28, 2025 will mature during the fourth quarter of fiscal 2025.

The following table provides information about our foreign currency forward contracts outstanding as of June 28, 2025 (in thousands):

			Contract Amount

			Contract Amount

			Currency

			Contract Position

			(Local Currency)

			(U.S. Dollars)

			Euro

			Buy

			36,543

			$
			41,600

			Swiss Franc

			Buy

			7,189

			8,800

			South Korean Won

			Buy

			2,745,860

			2,000