Company: COHU
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001437749-25-004612
Chunk: 93

Company: COHU INC
Filing Date: 2025-02-20
Form: 10-K
Item: Item 1
Chunk 93
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 our best estimate at December 28, 2024, we will continue to monitor customer liquidity and other economic conditions, which may result in changes to our estimates regarding expected credit losses.

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			COHU, INC.

			NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

			Inventories – Inventories are stated at the lower of cost, determined on a first-in, first-out basis, or net realizable value. Cost includes labor, material and overhead costs. Determining the net realizable value of inventories involves numerous estimates and judgments including projecting average selling prices and sales volumes for future periods. As a result of these analyses, we record a charge to cost of sales in advance of the period when the inventory is sold, which occurs when estimated market values are below our costs. Charges to cost of sales for excess and obsolete inventories totaled $5.4 million, $4.5 million and $7.2 million in fiscal 2024, 2023 and 2022, respectively.

			Inventories by category were as follows (in thousands):

			December 28,

			December 30,

			2024

			2023

			Raw materials and purchased parts

			$
			94,970

			$
			103,118

			Work in process

			25,833

			26,820

			Finished goods

			21,058

			25,855

			Total inventories

			$
			141,861

			$
			155,793

			Property, Plant and Equipment – Depreciation and amortization of property, plant and equipment, both owned and under financing lease, is calculated principally on the straight‑line method based on estimated useful lives of thirty to forty years for buildings, five to fifteen years for building improvements, three to ten years for machinery, equipment and software and the lease life for financing leases. Land is not depreciated.

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

			December 28,

			December 30,

			2024

			2023

			Land and land improvements

			$
			6,941

			$
			7,301

			Buildings and building improvements

			47,733

			39,677

			Machinery and equipment

			104,767