Company: COHU
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001437749-25-004612
Chunk: 129

Company: COHU INC
Filing Date: 2025-02-20
Form: 10-K
Item: Item 1
Chunk 129
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 EQT on Cohu’s consolidated statements of operations and comprehensive income were not material.

In connection with the acquisition of EQT, during the twelve-month periods ended December 28, 2024 and December 30, 2023 we incurred acquisition-related costs, which were expensed as selling, general and administrative costs totaling $0.1 million and $1.1 million, respectively. No acquisition-related costs were incurred for EQT in fiscal 2022.

			8.

			Derivative Financial Instruments

Economic (Non-Designated) Hedges

We enter into foreign currency forward contracts to manage our foreign exchange exposure related to intercompany transactions and other balance sheet items that are subject to revaluation. For accounting purposes, our foreign currency forward contracts that are not designated as hedging instruments are recorded at fair value as of the end of our reporting period in our consolidated balance sheets with changes in fair value recorded within foreign transaction gain (loss) in our consolidated statements of operations for both realized and unrealized gains and losses. The gain or loss recorded on these instruments is substantially offset by the remeasurement adjustment on the foreign currency denominated asset or liability.

The location and amount of losses related to non-designated derivative instruments in the consolidated statements of operations were as follows (in thousands):

			Derivatives Not Designated

			Location of Gain (Loss)

			Fiscal Year

			as Hedging Instruments

			Recognized on Derivatives

			2024

			2023

			2022

			Foreign exchange forward contracts

			Foreign transaction gain (loss)

			$
			(7,542
			)
			 
			$
			(2,127
			)
			 
			$
			(5,356
			)

Net Investment Hedges

In the third quarter of fiscal 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.

76

			COHU, INC.

			NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

			Derivatives Designated

			Location of Gain (Loss)

			Fiscal Year

			as Hedging Instruments

			Recogn