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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2011	Feb. 10, 2012	Jun. 24, 2011
Document and Entity Information [Abstract]
Entity Registrant Name	COHU INC
Entity Central Index Key	0000021535
Document Type	10-K
Document Period End Date	Dec. 31, 2011
Amendment Flag	false
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 164,000,000
Entity Common Stock, Shares Outstanding		24,355,295

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 25, 2010
Current assets:
Cash and cash equivalents	$ 53,262	$ 45,921
Short-term investments	51,740	52,254
Accounts receivable, net	41,922	66,801
Inventories:
Raw materials and purchased parts	47,186	34,922
Work in process	15,504	17,470
Finished goods	19,999	10,832
Total inventories	82,689	63,224
Deferred income taxes	6,646	5,991
Other current assets	7,557	6,026
Total current assets	243,816	240,217
Property, plant and equipment, at cost:
Land and land improvements	12,002	12,057
Buildings and building improvements	31,190	31,117
Machinery and equipment	38,007	41,630
Property plant and equipment, gross	81,199	84,804
Less accumulated depreciation and amortization	(44,218)	(45,000)
Net property, plant and equipment	36,981	39,804
Goodwill	58,060	58,498
Intangible assets, net	21,828	26,523
Other assets	923	1,001
Total assets	361,608	366,043
Current liabilities:
Accounts payable	18,625	18,198
Accrued compensation and benefits	12,652	16,944
Accrued warranty	6,801	5,016
Deferred profit	2,821	14,834
Income taxes payable	2,518	8,802
Other accrued liabilities	8,454	7,740
Total current liabilities	51,871	71,534
Other accrued liabilities	5,964	5,931
Deferred income taxes	12,742	13,853
Commitments and contingencies
Stockholders' equity:
Preferred stock, $1 par value; 1,000 shares authorized, none issued
Common stock, $1 par value; 60,000 shares authorized, 24,330 shares issued and outstanding in 2011 and 23,989 shares in 2010	24,330	23,989
Paid-in capital	77,658	71,799
Retained earnings	189,055	179,134
Accumulated other comprehensive loss	(12)	(197)
Total stockholders' equity	291,031	274,725
Total liabilities and stockholders' equity	$ 361,608	$ 366,043

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Dec. 31, 2011	Dec. 25, 2010
Consolidated Balance Sheets [Abstract]
Preferred stock, par value	$ 1	$ 1
Preferred stock, shares authorized	1,000	1,000
Preferred stock, shares issued
Common stock, par value	$ 1	$ 1
Common stock, shares authorized	60,000	60,000
Common stock, shares issued	24,330	23,989
Common stock, shares outstanding	24,330	23,989

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 25, 2010	Dec. 26, 2009
Consolidated Statements of Operations [Abstract]
Net sales	$ 308,968	$ 322,667	$ 171,261
Cost and expenses:
Cost of sales	208,839	212,672	118,873
Research and development	36,230	36,201	31,964
Selling, general and administrative	46,563	44,117	35,519
Total cost and expenses	291,632	292,990	186,356
Income (loss) from operations	17,336	29,677	(15,095)
Interest and other income	442	561	1,300
Income (loss) before income taxes	17,778	30,238	(13,795)
Income tax provision	2,059	5,594	14,373
Net income (loss)	$ 15,719	$ 24,644	$ (28,168)
Income (loss) per share:
Basic	$ 0.65	$ 1.04	$ (1.20)
Diluted	$ 0.64	$ 1.02	$ (1.20)
Weighted average shares used in computing income (loss) per share:
Basic	24,134	23,732	23,412
Diluted	24,501	24,097	23,412

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common stock $1 par value	Paid-in capital	Retained earnings	Accumulated other comprehensive income (loss)
Beginning balance at Dec. 27, 2008	$ 285,539	$ 23,344	$ 61,076	$ 193,985	$ 7,134
Components of comprehensive income (loss):
Net income (loss)	(28,168)			(28,168)
Changes in cumulative translation adjustment	1,538				1,538
Adjustments related to postretirement benefits, net of income taxes	(444)				(444)
Changes in unrealized gains and losses on investments, net of income taxes	434				434
Comprehensive income (loss)	(26,640)
Cash dividends - $0.24 per share	(5,624)			(5,624)
Shares issued under employee stock purchase plan	1,128	136	992
Shares issued for restricted stock units vested		102	(102)
Repurchase and retirement of stock	(419)	(35)	(384)
Share-based compensation expense	3,378		3,378
Tax benefit (deficiency) from equity awards	(113)		(113)
Ending balance at Dec. 26, 2009	257,249	23,547	64,847	160,193	8,662
Components of comprehensive income (loss):
Net income (loss)	24,644			24,644
Changes in cumulative translation adjustment	(7,270)				(7,270)
Adjustments related to postretirement benefits, net of income taxes	(1,506)				(1,506)
Changes in unrealized gains and losses on investments, net of income taxes	(83)				(83)
Comprehensive income (loss)	15,785
Cash dividends - $0.24 per share	(5,703)			(5,703)
Exercise of stock options	2,869	263	2,606
Shares issued under employee stock purchase plan	1,213	112	1,101
Shares issued for restricted stock units vested		101	(101)
Repurchase and retirement of stock	(465)	(34)	(431)
Share-based compensation expense	3,543		3,543
Tax benefit (deficiency) from equity awards	234		234
Ending balance at Dec. 25, 2010	274,725	23,989	71,799	179,134	(197)
Components of comprehensive income (loss):
Net income (loss)	15,719			15,719
Changes in cumulative translation adjustment	(1,076)				(1,076)
Adjustments related to postretirement benefits, net of income taxes	1,267				1,267
Changes in unrealized gains and losses on investments, net of income taxes	(6)				(6)
Comprehensive income (loss)	15,904
Cash dividends - $0.24 per share	(5,798)			(5,798)
Exercise of stock options	1,111	123	988
Shares issued under employee stock purchase plan	1,262	120	1,142
Shares issued for restricted stock units vested		139	(139)
Repurchase and retirement of stock	(462)	(41)	(421)
Share-based compensation expense	4,287		4,287
Tax benefit (deficiency) from equity awards	2		2
Ending balance at Dec. 31, 2011	$ 291,031	$ 24,330	$ 77,658	$ 189,055	$ (12)

Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2011	Dec. 25, 2010	Dec. 26, 2009
Cash dividend, per share	$ 0.24	$ 0.24	$ 0.24
Retained earnings
Cash dividend, per share	$ 0.24	$ 0.24	$ 0.24

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 25, 2010	Dec. 26, 2009
Cash flows from operating activities:
Net income (loss)	$ 15,719	$ 24,644	$ (28,168)
Adjustments to reconcile net income (loss) to net cash provided from operating activities:
Depreciation and amortization	10,067	10,988	11,029
Share-based compensation expense	4,287	3,543	3,378
Deferred income taxes	(1,676)	(1,971)	17,360
Accrued retiree benefits	381	(222)	348
Excess tax benefit from stock options exercised	(2)	(234)
Loss on investment write-down			79
Changes in current assets and liabilities:
Accounts receivable	24,877	(23,434)	(11,226)
Inventories	(20,865)	(13,866)	708
Accounts payable	427	(4,402)	10,757
Other current assets	(1,549)	2,958	(522)
Income taxes payable, including excess stock option exercise benefits	(6,462)	7,334	(514)
Customer advances	(121)	(279)	(1,590)
Deferred profit	(12,013)	9,512	888
Accrued compensation, warranty and other liabilities	(832)	4,944	235
Net cash provided from operating activities	12,238	19,515	2,762
Cash flows from investing activities:
Purchases of short-term investments	(75,128)	(52,491)	(44,562)
Sales and maturities of short-term investments	75,657	46,979	56,458
Purchases of property, plant and equipment	(1,413)	(4,579)	(2,507)
Other assets	78	314	42
Net cash (used for) provided from investing activities	(806)	(9,777)	9,431
Cash flows from financing activities:
Issuance of stock, net	1,911	3,617	709
Excess tax benefit from stock options exercised	2	234
Cash dividends paid	(5,777)	(5,679)	(5,610)
Net cash used for financing activities	(3,864)	(1,828)	(4,901)
Effect of exchange rate changes on cash and cash equivalents	(227)	(236)	761
Net increase in cash and cash equivalents	7,341	7,674	8,053
Cash and cash equivalents at beginning of year	45,921	38,247	30,194
Cash and cash equivalents at end of year	53,262	45,921	38,247
Cash paid (refunded) during the year for:
Income taxes	10,203	(2,138)	(4,201)
Inventory capitalized as capital assets	1,380	2,990	578
Dividends declared but not yet paid	$ 1,455	$ 1,434	$ 1,410

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

1.	Summary of Significant Accounting Policies

Basis of Presentation – Cohu, Inc. (“Cohu”, “we”, “our” and “us”), through our wholly owned subsidiaries, is a provider of semiconductor test equipment, microwave communication systems and video cameras. Our Consolidated Financial Statements include the accounts of Cohu and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates.

Our fiscal years are based on a 52- or 53-week period ending on the last Saturday in December. Our current fiscal year ended on December 31, 2011 consisted of 53 weeks. Our fiscal years ended December 25, 2010 and December 26, 2009 consisted of 52 weeks.

Risks and Uncertainties – We are subject to a number of risks and uncertainties that may significantly impact our future operating results. These risks and uncertainties are discussed under Part I, Item 1A. “Risk Factors” included in this Annual Report on Form 10-K. Understanding these risks and uncertainties is integral to the review of our consolidated financial statements.

Income (Loss) Per Share – Basic income (loss) per common share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. Diluted income (loss) per share includes the dilutive effect of common shares potentially issuable upon the exercise of stock options, vesting of outstanding restricted stock units and issuance of stock under our employee stock purchase plan using the treasury stock method. In loss periods, potentially dilutive securities are excluded from the per share computations due to their anti-dilutive effect. For purposes of computing diluted income per share, stock options with exercise prices that exceed the average fair market value of our common stock for the period are excluded. For the years ended December 31, 2011 and December 25, 2010 approximately 1,956,000 and 1,724,000 shares of our common stock were excluded from the computation, respectively.

The following table reconciles the denominators used in computing basic and diluted income (loss) per share:


(in thousands)	2011		2010		2009
Weighted average common shares outstanding		24,134		23,732		23,412
Effect of dilutive stock options and restricted stock units		367		365		—

		24,501		24,097		23,412

Cash, Cash Equivalents and Short-term Investments – Highly liquid investments with insignificant interest rate risk and original maturities of three months or less are classified as cash and cash equivalents. Investments with maturities greater than three months are classified as short-term investments. All of our short-term investments are classified as available-for-sale and are reported at fair value, with any unrealized gains and losses, net of tax, recorded as a separate component of accumulated other comprehensive income in stockholders’ equity. We manage our cash equivalents and short-term investments as a single portfolio of highly marketable securities. We have the ability and intent, if necessary, to liquidate any of our investments in order to meet the liquidity needs of our current operations during the next 12 months. Accordingly, investments with contractual maturities greater than one year from December 31, 2011 have been classified as current assets in the accompanying consolidated balance sheets.

Fair Value of Financial Instruments – The carrying amounts of our financial instruments, including cash and cash equivalents, short-term investments, accounts receivable, accounts payable and accrued expenses, approximate fair value due to the short maturities of these financial instruments.

Concentration of Credit Risk – Financial instruments that potentially subject us to significant credit risk consist principally of cash equivalents, short-term investments and trade accounts receivable. We invest in a variety of financial instruments and, by policy, limit the amount of credit exposure with any one issuer.

Trade accounts receivable are presented net of allowance for doubtful accounts of $0.5 million at December 31, 2011 and $0.6 million at December 25, 2010. Our customers include semiconductor manufacturers and semiconductor test subcontractors and other customers located throughout many areas of the world. While we believe that our allowance for doubtful accounts is adequate and represents our best estimate at December 31, 2011, we will continue to monitor customer liquidity and other economic conditions, which may result in changes to our estimates regarding collectability.

Inventories – Inventories are stated at the lower of cost, determined on a current average or first-in, first-out basis, or market. Cost includes labor, material and overhead costs. Determining market value of inventories involves numerous estimates and judgments including projecting average selling prices and sales volumes for future periods and costs to complete and dispose of inventory. As a result of these analyses, we record a charge to cost of sales in advance of the period when the inventory is sold when market values are below our costs. Charges to cost of sales for excess and obsolete inventories aggregated $5.8 million, $1.7 million, and $4.4 million in 2011, 2010 and 2009, respectively.

Property, Plant and Equipment – Depreciation and amortization of property, plant and equipment 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 and three to ten years for machinery, equipment and software.

Goodwill, Purchased Intangible Assets and Other Long-lived Assets – We evaluate goodwill for impairment annually and when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. We test goodwill for impairment by first comparing the book value of net assets to the fair value of the reporting units. If the fair value is determined to be less than the book value, a second step is performed to compute the amount of impairment as the difference between the estimated fair value of goodwill and the carrying value. We estimated the fair values of our reporting units primarily using the income approach valuation methodology that includes the discounted cash flow method, taking into consideration the market approach and certain market multiples as a validation of the values derived using the discounted cash flow methodology. Forecasts of future cash flows are based on our best estimate of future net sales and operating expenses, based primarily on customer forecasts, industry trade organization data and general economic conditions.

We conduct our annual impairment test as of October 1 of each year, and have determined there is no impairment as of October 1, 2011. Other events and changes in circumstances may also require goodwill to be tested for impairment between annual measurement dates. While a decline in stock price and market capitalization is not specifically cited as a goodwill impairment indicator, a company’s stock price and market capitalization should be considered in determining whether it is more likely than not that the fair value of a reporting unit is less that its carrying value. Additionally, a significant decline in a company’s stock price may suggest that an adverse change in the business climate may have caused the fair value of one or more reporting units to fall below their carrying value. The financial and credit market volatility directly impacts our fair value measurement through our stock price that we use to determine our market capitalization. During times of volatility, significant judgment must be applied to determine whether credit or stock price changes are a short-term swing or a longer-term trend. As of December 31, 2011 we do not believe there have been any events or circumstances that would require us to perform an interim goodwill impairment review, however, a sustained decline in Cohu’s market capitalization below its book value could lead us to determine, in a future period, that an interim goodwill impairment review is required and may result in an impairment charge which would have a negative impact on our results of operations.

Long-lived assets, other than goodwill, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or any other significant adverse change that would indicate that the carrying amount of an asset or group of assets may not be recoverable. For long-lived assets, impairment losses are only recorded if the asset’s carrying amount is not recoverable through its undiscounted, probability-weighted future cash flows. We measure the impairment loss based on the difference between the carrying amount and estimated fair value.

Product Warranty – Product warranty costs are accrued in the period sales are recognized. Our products are generally sold with standard warranty periods, which differ by product, ranging from 12- to 36-months. Parts and labor are typically covered under the terms of the warranty agreement. Our warranty expense accruals are based on historical and estimated costs by product and configuration. From time-to-time we offer customers extended warranties beyond the standard warranty period. In those situations the revenue relating to the extended warranty is deferred at its estimated fair value and recognized on a straight-line basis over the contract period. Costs associated with our extended warranty contracts are expensed as incurred.

Income Taxes – We assess our income tax positions and record tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances and information available at the reporting dates. For those tax positions where it is more-likely-than-not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50 percent likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more-likely-than-not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Where applicable, associated interest has also been recognized and recorded, net of federal and state tax benefits, in income tax expense.

Contingencies and Litigation – We assess the probability of adverse judgments in connection with current and threatened litigation. We would accrue the cost of an adverse judgment if, in our estimation, the adverse outcome is probable and we can reasonably estimate the ultimate cost.

Revenue Recognition – Our net sales are derived from the sale of products and services and are adjusted for estimated returns and allowances, which historically have been insignificant. We recognize revenue when there is persuasive evidence of an arrangement, title and risk of loss have passed, delivery has occurred or the services have been rendered, the sales price is fixed or determinable and collection of the related receivable is reasonably assured. Title and risk of loss generally pass to our customers upon shipment. In circumstances where either title or risk of loss pass upon destination or acceptance, we defer revenue recognition until such events occur.

Revenue for established products that have previously satisfied a customer’s acceptance requirements and provide for full payment tied to shipment is generally recognized upon shipment and passage of title. In certain instances, customer payment terms may provide that a minority portion (e.g. 20%) of the equipment purchase price be paid only upon customer acceptance. In those situations, the majority portion (e.g. 80%) of revenue where payment is tied to shipment and the entire product cost of sale are recognized upon shipment and passage of title and the minority portion of the purchase price related to customer acceptance is deferred and recognized upon receipt of customer acceptance. In cases where a prior history of customer acceptance cannot be demonstrated or from sales where customer payment dates are not determinable and in the case of new products, revenue is deferred until customer acceptance has been received. Our post-shipment obligations typically include installation and standard warranties. The estimated fair value of installation related revenue is recognized in the period the installation is performed. Service revenue is recognized ratably over the period of the related contract. Spares and kit revenue is generally recognized upon shipment.

Certain of our equipment sales are accounted for as multiple-element arrangements. A multiple-element arrangement is a transaction which may involve the delivery or performance of multiple products, services, or rights to use assets, and performance may occur at different points in time or over different periods of time. For arrangements containing multiple elements initiated prior to December 26, 2010, the first day of our fiscal 2011, the revenue relating to the undelivered elements is deferred at their estimated relative fair values until delivery of the deferred elements. For arrangements initiated or materially modified subsequent to December 26, 2010 containing multiple elements, the revenue relating to the undelivered elements is deferred using the relative selling price method utilizing estimated sales prices until delivery of the deferred elements. We limit the amount of revenue recognition for delivered elements to the amount that is not contingent on the future delivery of products or services, future performance obligations or subject to customer-specified return or adjustment.

On shipments where sales are not recognized, gross profit is generally recorded as deferred profit in our consolidated balance sheet representing the difference between the receivable recorded and the inventory shipped. In certain instances where customer payments are received prior to product shipment, the customer’s payments are recorded as customer advances in our consolidated balance sheet. At December 31, 2011, we had total deferred revenue of approximately $6.6 million and deferred profit of $2.8 million. At December 25, 2010, we had total deferred revenue of approximately $36.9 million and deferred profit of $14.8 million.

Advertising Costs – Advertising costs are expensed as incurred and were not material for all periods presented.

Share-based Compensation – We measure and recognize all share-based compensation under the fair value method. Our estimate of share-based compensation expense requires a number of complex and subjective assumptions including our stock price volatility, employee exercise patterns (expected life of the options), future forfeitures and related tax effects. The assumptions used in calculating the fair value of share-based awards represent our best estimates, but these estimates involve inherent uncertainties and the application of management judgment. Although we believe the assumptions and estimates we have made are reasonable and appropriate, changes in assumptions could materially impact our reported financial results.

Foreign Currency Translation – Assets and liabilities of those subsidiaries that use the U.S. dollar as their functional currency are translated using exchange rates in effect at the end of the period, except for nonmonetary assets, such as inventories and property, plant and equipment, which are translated using historical exchange rates. Revenues and costs are translated using average exchange rates for the period, except for costs related to those balance sheet items that are translated using historical exchange rates. Gains and losses on foreign currency transactions are recognized as incurred. Our subsidiaries located in Germany, designated the Euro as their functional currency and, as a result, their assets and liabilities are translated at the rate of exchange at the balance sheet date, while revenue and expenses are translated using the average exchange rate for the period. Cumulative translation adjustments resulting from the translation of the financial statements are included as a separate component of stockholders’ equity. Foreign currency gains and losses were not significant in any period and are included in the consolidated statements of operations.

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements – In January 2010, the Financial Accounting Standards Board (“FASB”) issued guidance to add additional disclosures about the different classes of assets and liabilities measured at fair value, the valuation techniques and inputs used, and the activity in Level 3 fair value measurements (as defined in Note 3 below). We adopted this guidance on December 26, 2010, the first day of our 2011 fiscal year. Adoption of this new guidance did not have a material impact on our financial statement disclosures.

In October 2009, the FASB amended the guidance for allocating revenue to multiple deliverables in a contract. This new guidance is effective as of the first day of our 2011 fiscal year. In accordance with the amendment, companies can allocate consideration in a multiple element arrangement in a manner that better reflects the transaction economics. When vendor specific objective evidence or third party evidence for deliverables in an arrangement cannot be determined, companies will now be allowed to develop a best estimate of the selling price to separate deliverables and allocate arrangement consideration using the relative selling price method. Additionally, use of the residual method has been eliminated. We adopted this guidance on December 26, 2010, the first day of our 2011 fiscal year. Adoption of this new guidance did not have a material impact on our consolidated financial position or results of operations.

In October 2009, the FASB issued new accounting guidance for the accounting for certain revenue arrangements that include software elements. The new guidance amends the scope of pre-existing software revenue guidance by removing from the guidance non-software components of tangible products and certain software components of tangible products. The new guidance is effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. We adopted this guidance on December 26, 2010, the first day of our 2011 fiscal year. Adoption of this new guidance did not have a material impact on our consolidated financial position or results of operations.

Recently Issued Accounting Pronouncements – In September 2011, the FASB issued guidance to amend and simplify the rules related to testing goodwill for impairment. The revised guidance allows an entity to make an initial qualitative evaluation, based on the entity’s events and circumstances, to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The results of this qualitative assessment determine whether it is necessary to perform the currently required two-step impairment test. The new guidance is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. We do not believe our adoption of the new guidance in the first quarter of fiscal 2012 will have a material impact on our consolidated financial position, results of operations or cash flows.

In June 2011, the FASB issued new guidance on the presentation of comprehensive income. Specifically, the new guidance allows an entity to present components of net income and other comprehensive income in one continuous statement, referred to as the statement of comprehensive income, or in two separate, but consecutive statements. The new guidance eliminates the current option to report other comprehensive income and its components in the statement of changes in equity. While the new guidance changes the presentation of comprehensive income, there are no changes to the components that are recognized in net income or other comprehensive income under current accounting guidance. This new guidance is effective for fiscal years and interim periods beginning after December 15, 2011, however, the requirement to show the reclassification from other comprehensive to net income by line item on the face of the financial statements has been deferred until further notice from the FASB. We do not believe our adoption of the new guidance in the first quarter of fiscal 2012 will have a material impact on our consolidated financial position, results of operations or cash flows.

In May 2011, the FASB issued new guidance to achieve common fair value measurement and disclosure requirements between GAAP and International Financial Reporting Standards. This new guidance amends current fair value measurement and disclosure guidance to include increased transparency around valuation inputs and investment categorization. This new guidance is effective for fiscal years and interim periods beginning after December 15, 2011. We do not believe our adoption of the new guidance in the first quarter of fiscal 2012 will have a material impact on our consolidated financial position, results of operations or cash flows.

Goodwill and Purchased Intangible Assets

12 Months Ended

Dec. 31, 2011

Goodwill and Purchased Intangible Assets [Abstract]

Goodwill and Purchased Intangible Assets

2.	Goodwill and Purchased Intangible Assets

Goodwill and Purchased Intangible Assets

Changes in the carrying value of goodwill by reportable segment during the years ended December 31, 2011 and December 25, 2010 were as follows (in thousands):


	Semiconductor Equipment			Microwave Communications			Total Goodwill
Balance, December 26, 2009	$	58,318		$	3,446		$	61,764
Impact of currency exchange		(3,038	)		(228	)		(3,266	)

Balance, December 25, 2010		55,280			3,218			58,498
Impact of currency exchange		(408	)		(30	)		(438	)

Balance, December 31, 2011	$	54,872		$	3,188		$	58,060

Our purchased intangible assets, subject to amortization, were as follows (in thousands):


	December 31, 2011						December 25, 2010
	Gross Carrying Amount		Accumulated Amortization		Remaining Useful Life		Gross Carrying Amount		Accumulated Amortization
Rasco technology	$	31,737	$	12,149		5.0 years	$	32,154	$	8,290
Unigen technology		7,020		7,020		0 years		7,020		6,779
AVS technology		2,325		2,325		0 years		2,156		2,008

	$	41,082	$	21,494			$	41,330	$	17,077

The amounts included in the table above for the years ended December 31, 2011 and December 25, 2010 exclude approximately $2.2 million and $2.3 million, respectively, related to the Rasco trade name which has an indefinite life and is not being amortized.

Expense related to purchased intangible assets, subject to amortization, was approximately $4.6 million, $6.1 million and $6.3 million in 2011, 2010 and 2009, respectively. As of December 31, 2011, we expect amortization expense in future periods to be as follows: 2012 – $4.0 million; 2013 - $4.0 million; 2014 - $4.0 million; 2015 - $4.0 million; and 2016 - $3.6 million.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Cash, Cash Equivalents and Short-term Investments

12 Months Ended

Dec. 31, 2011

Cash, Cash Equivalents and Short-term Investments [Abstract]

Cash, Cash Equivalents and Short-term Investments

3.	Cash, Cash Equivalents and Short-term Investments

Our cash, cash equivalents, and short-term investments consisted primarily of cash, corporate debt securities, government and government agency securities, state and municipal securities, money market funds and other investment grade securities. We do not hold investment securities for trading purposes. All short-term investments are classified as available-for-sale and recorded at fair value. Investment securities are exposed to market risk due to changes in interest rates and credit risk and we monitor credit risk and attempt to mitigate exposure by making high-quality investments and through investment diversification.

Gains and losses on investments are calculated using the specific-identification method and are recognized during the period in which the investment is sold or when an investment experiences an other-than-temporary decline in value. Factors that could indicate an impairment exists include, but are not limited to: earnings performance, changes in credit rating or adverse changes in the regulatory or economic environment of the asset. Gross realized gains and losses on sales of short-term investments are included in interest income. Realized gains and losses for the periods presented were not significant.

Investments that we have classified as short-term, by security type, are as follows (in thousands):


	2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses ⁽¹⁾		Estimated Fair Value
U.S. Treasury securities	$	3,258	$	9	$	—	$	3,267
Corporate debt securities ⁽²⁾		22,454		6		2		22,458
Municipal securities		4,315		—		—		4,315
Government-sponsored
enterprise securities		19,033		32		15		19,050
Bank certificates of deposit		2,650		—		—		2,650

	$	51,710	$	47	$	17	$	51,740


	2010
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. Treasury securities	$	6,778	$	9	$	—	$	6,787
Corporate debt securities ⁽²⁾		18,010		28		4		18,034
Municipal securities		11,102		1		—		11,103
Government-sponsored
enterprise securities		15,105		8		20		15,093
Bank certificates of deposit		1,000		—		—		1,000
Asset-backed securities		236		1		—		237

	$	52,231	$	47	$	24	$	52,254

(1)

As of December 31, 2011, the cost and fair value of investments with loss positions were approximately $12.8 million. We evaluated the nature of these investments, credit worthiness of the issuer and the duration of these impairments to determine if an other-than-temporary decline in fair value had occurred and concluded that these losses were temporary and we have the ability and intent to hold these investments to maturity.

(2)	Corporate debt securities include investments in financial and other corporate institutions. No single issuer represents a significant portion of the total corporate debt securities portfolio.

Effective maturities of short-term investments at December 31, 2011, were as follows:


(in thousands)	Amortized Cost		Estimated Fair Value
Due in one year or less	$	44,034	$	44,079
Due after one year through two years		7,676		7,661

	$	51,710	$	51,740

Our municipal securities include variable rate demand notes which can be put (sold at par) typically on a daily basis with settlement periods ranging from the same day to one week and have varying contractual maturities through 2037. These securities can be used for short-term liquidity needs and are held for limited periods of time. At December 31, 2011 these securities had amortized cost and fair value of $1.9 million and are included in “Due in one year or less” in the table above.

Accounting standards pertaining to fair value measurements establish a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. When available, we use quoted market prices to determine the fair value of our investments, and they are included in Level 1. When quoted market prices are unobservable, we use quotes from independent pricing vendors based on recent trading activity and other relevant information.

The following table summarizes, by major security type, our assets that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands):


	Fair value measurements at December 31, 2011 using:
	Level 1		Level 2		Level 3		Total estimated fair value
Cash	$	25,359	$	—	$	—	$	25,359
U.S. Treasury securities		3,267		—		—		3,267
Corporate debt securities		—		27,208		—		27,208
Municipal securities		—		4,315		—		4,315
Government-sponsored enterprise securities		—		19,050		—		19,050
Money market funds		—		22,753		—		22,753
Bank certificates of deposit		—		3,050		—		3,050

	$	28,626	$	76,376	$	—	$	105,002


	Fair value measurements at December 25, 2010 using:
	Level 1		Level 2		Level 3		Total estimated fair value
Cash	$	18,842	$	—	$	—	$	18,842
U.S. Treasury securities		6,787		—		—		6,787
Corporate debt securities		—		21,432		—		21,432
Municipal securities		—		11,852		—		11,852
Government-sponsored enterprise securities				15,093				15,093
Money market funds		—		22,932		—		22,932
Bank certificates of deposit		—		1,000		—		1,000
Asset-backed securities		—		237		—		237

	$	25,629	$	72,546	$	—	$	98,175

- Definition

The entire disclosure for cash and cash equivalent footnotes, which may include the types of deposits and money market instruments, applicable carrying amounts, restricted amounts and compensating balance arrangements. Cash and equivalents include: (1) currency on hand (2) demand deposits with banks or financial institutions (3) other kinds of accounts that have the general characteristics of demand deposits (4) short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only investments maturing within three months from the date of acquisition qualify.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 1
-Article 5

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 7
-Footnote 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 8, 9, 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section H
-Subsection 3

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Cash
-URI http://asc.fasb.org/extlink&oid=6506951

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Cash Equivalents
-URI http://asc.fasb.org/extlink&oid=6507016

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6367179&loc=d3e4273-108586

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.1)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 6.H.3)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13728-122682

+ Details

Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2011

Comprehensive Income (Loss) and Stockholder Rights Plan [Abstract]

Comprehensive Income (Loss)

4.	Comprehensive Income (Loss)

Our accumulated other comprehensive loss totaled approximately $12,000 and $0.2 million at December 31, 2011 and December 25, 2010, respectively, and was attributed to, net of income taxes where applicable, foreign currency adjustments resulting from the translation of certain accounts into U.S. dollars where the functional currency is the Euro, unrealized losses and gains on investments and adjustments to accumulated postretirement benefit obligations.

Amounts included in accumulated other comprehensive income (loss) are as follows:


(in thousands)	Unrealized Investment Gains and Losses			Postretirement Obligations			Foreign Currency Translation Adjustments			Accumulated Other Comprehensive Income (Loss)
Balance, December 27, 2008	$	(336	)	$	(159	)	$	7,629		$	7,134
Fiscal 2009 activity		434			(444	)		1,538			1,528

Balance, December 26, 2009		98			(603	)		9,167			8,662
Fiscal 2010 activity		(83	)		(1,506	)		(7,270	)		(8,859	)

Balance, December 25, 2010		15			(2,109	)		1,897			(197	)
Fiscal 2011 activity		(6	)		1,267			(1,076	)		185

Balance, December 31, 2011	$	9		$	(842	)	$	821		$	(12	)

- Definition

The entire disclosure for comprehensive income. Includes, but is not limited to, the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains (losses) on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains (losses) on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains (losses) on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain (loss) and net prior service cost or credit for pension plans and other postretirement benefit plans.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 14-26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e637-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e681-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e653-108580

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e709-108580

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 55
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6920433&loc=d3e998-108581

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e640-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Reclassification Adjustments
-URI http://asc.fasb.org/extlink&oid=6522872

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e716-108580

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e689-108580

+ Details

Employee Benefit Plans

12 Months Ended

Dec. 31, 2011

Employee Benefit Plans [Abstract]

Employee Benefit Plans

5.	Employee Benefit Plans

Retirement Plans – We have a voluntary defined contribution retirement 401(k) plan whereby we match employee contributions. During 2009 and 2010, to control costs and preserve cash in response to the economic uncertainty caused by the global economic crisis, we suspended the matching contribution to our employee 401(k) plan. In 2011 we re-started our matching contribution at 1.5% of eligible employee compensation and made contributions to the plan of approximately $0.5 million. Certain of our foreign employees participate in defined benefit pension plans. The related expense and benefit obligation of these plans were not significant for any period presented.

Retiree Medical Benefits – We provide post-retirement health benefits to certain executives and directors under a noncontributory plan. The net periodic benefit cost was $0.4 million, $0.3 million and $0.2 million in 2011, 2010 and 2009, respectively. We fund benefits as costs are incurred and as a result there are no plan assets.

The weighted average discount rate used in determining the accumulated post-retirement benefit obligation was 4.2% in 2011, 5.4% in 2010 and 5.8% in 2009. Annual rates of increase of the cost of health benefits were assumed to be 9.5% in 2012. These rates were then assumed to decrease 0.5% per year to 5.0% in 2021 and remain level thereafter. A one percent increase (decrease) in health care cost trend rates would increase (decrease) the 2011 net periodic benefit cost by approximately $37,000 ($30,000) and the accumulated post-retirement benefit obligation as of December 31, 2011, by approximately $393,000 ($328,000).

The following table sets forth the post-retirement benefit obligation to the funded status of the plan which approximates the liability we have recorded in our consolidated balance sheets:


(in thousands)	2011			2010
Accumulated benefit obligation at beginning of year	$	3,909		$	2,839
Service cost		20			18
Interest cost		208			155
Actuarial (gain) loss		(1,137	)		1,022
Benefits paid		(91	)		(125	)

Accumulated benefit obligation at end of year		2,909			3,909
Plan assets at end of year		—			—

Funded status	$	(2,909	)	$	(3,909	)

The total unrecognized net actuarial loss that will be amortized over the future service period, excluding the effect of income taxes, was approximately $0.8 million at December 31, 2011.

Deferred Compensation – The Cohu, Inc. Deferred Compensation Plan allows certain of our officers to defer a portion of their current compensation. We have purchased life insurance policies on the participants with Cohu as the named beneficiary. Participant contributions, distributions and investment earnings and losses are accumulated in a separate account for each participant. At December 31, 2011 and December 25, 2010, the payroll liability to participants, included in accrued compensation and benefits in the consolidated balance sheet, was approximately $2.0 million and $2.1 million, respectively and the cash surrender value of the related life insurance policies included in other current assets was approximately $1.6 million, for both periods presented.

Employee Stock Purchase Plan – The Cohu, Inc. 1997 Employee Stock Purchase Plan (“the Plan”) provides for the issuance of a maximum of 1,900,000 shares of our common stock. Under the Plan, eligible employees may purchase shares of common stock through payroll deductions. The price paid for the common stock is equal to 85% of the fair market value of our common stock on specified dates. In 2011, 2010, and 2009, 120,240, 112,745 and 136,228 shares, respectively, were issued under the Plan. At December 31, 2011, there were 637,354 shares reserved for issuance under the Plan.

Stock Options – Under our equity incentive plans, stock options may be granted to employees, consultants and outside directors to purchase a fixed number of shares of our common stock at prices not less than 100% of the fair market value at the date of grant. Options generally vest and become exercisable after one year or in four annual increments beginning one year after the grant date and expire five to ten years from the grant date. At December 31, 2011, 1,158,160 shares were available for future equity grants under the Cohu, Inc. 2005 Equity Incentive Plan. We have historically issued new shares of Cohu common stock upon share option exercise.

Stock option activity under our share-based compensation plans was as follows:


	2011					2010					2009
(in thousands, except per share data)	Shares			Wt. Avg. Ex. Price		Shares			Wt. Avg. Ex. Price		Shares			Wt. Avg. Ex. Price
Outstanding, beginning of year		3,210		$	12.89		3,221		$	12.87		2,193		$	15.91
Granted		157		$	13.33		380		$	13.77		1,229		$	7.45
Exercised		(123	)	$	9.03		(263	)	$	10.92		—		$	—
Canceled		(132	)	$	14.24		(128	)	$	19.06		(201	)	$	12.94

Outstanding, end of year		3,112		$	13.01		3,210		$	12.89		3,221		$	12.87

Options exercisable at year end		2,112		$	14.44		1,857		$	15.26		1,766		$	16.40

The aggregate intrinsic value of options exercised during 2011 and 2010 was approximately $0.6 million, and $0.8 million, respectively. There were no options exercised during 2009. At December 31, 2011, the aggregate intrinsic value of options outstanding, vested and expected to vest were each approximately $3.9 million and the aggregate intrinsic value of options exercisable was approximately $1.6 million.

Information about stock options outstanding at December 31, 2011 is as follows (options in thousands):


	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding		Approximate Wt. Avg. Remaining Life (Years)		Wt. Avg. Ex. Price		Number Exercisable		Wt. Avg. Ex. Price
$ 7.32 - $10.83		1,037		7.4		$ 7.54		411		$ 7.40
$10.84 - $16.26		1,150		5.6		$ 14.28		779		$ 14.48
$16.27 - $24.41		910		2.9		$ 17.41		907		$ 17.41
$24.42 - $36.63		15		1.4		$ 25.60		15		$ 25.60

		3,112		5.4		$ 13.01		2,112		$ 14.44

Restricted Stock Units – Under our equity incentive plans, restricted stock units may be granted to employees, consultants and outside directors. Restricted stock units vest over either a one-year or a four-year period from the date of grant. Prior to vesting, restricted stock units do not have dividend equivalent rights, do not have voting rights and the shares underlying the restricted stock units are not considered issued and outstanding. Shares of our common stock will be issued on the date the restricted stock units vest.

Restricted stock unit activity under our share-based compensation plans was as follows:


	2011					2010					2009
(in thousands, except per share data)	Units			Wt. Avg. Fair Value		Units			Wt. Avg. Fair Value		Units			Wt. Avg. Fair Value
Outstanding, beginning of year		373		$	13.35		155		$	14.60		253		$	15.40
Granted		75		$	13.00		323		$	12.90		11		$	9.28
Vested		(139	)	$	13.91		(101	)	$	14.68		(102	)	$	15.30
Canceled		(10	)	$	13.41		(4	)	$	15.40		(7	)	$	14.74

Outstanding, end of year		299		$	12.98		373		$	13.35		155		$	14.60

Share-based Compensation – We estimate the fair value of each share-based award on the grant date using the Black-Scholes valuation model. Option valuation models, including Black-Scholes, require the input of highly subjective assumptions, and changes in the assumptions used can materially affect the grant date fair value of an award. These assumptions include the risk-free rate of interest, expected dividend yield, expected volatility, and the expected life of the award. The risk-free rate of interest is based on the U.S. Treasury rates appropriate for the expected term of the award as of the grant date. Expected dividends are based, primarily, on historical factors related to our common stock. Expected volatility is based on historic, weekly stock price observations of our common stock during the period immediately preceding the share-based award grant that is equal in length to the award’s expected term. We believe that historical volatility is the best estimate of future volatility. Expected life of the award is based on historical option exercise data. Estimated forfeitures are required to be included as a part of the grant date expense estimate. We used historical data to estimate expected employee behaviors related to option exercises and forfeitures.

Share-based compensation expense related to restricted stock unit awards is calculated based on the market price of our common stock on the date of grant, reduced by the present value of dividends expected to be paid on our common stock prior to vesting of the restricted stock unit.

The following weighted average assumptions were used to value share-based awards granted:


Employee Stock Purchase Plan	2011		2010		2009
Dividend yield		1.9%		1.8%		2.1%
Expected volatility		42.4%		48.2%		54.7%
Risk-free interest rate		0.1%		0.2%		0.8%
Expected term of options		0.5 years		0.5 years		0.5 years
Weighted-average grant date fair value per share		$3.77		$3.90		$3.57

Employee Stock Options	2011		2010		2009
Dividend yield		2.0%		1.6%		3.1%
Expected volatility		45.8%		46.6%		45.0%
Risk-free interest rate		1.9%		1.6%		1.8%
Expected term of options		6.0 years		5.9 years		5.5 years
Weighted-average grant date fair value per share		$5.06		$5.39		$2.41

Restricted Stock Units	2011		2010		2009
Dividend yield		1.8%		1.7%		2.5%

Reported share-based compensation is classified in the consolidated financial statements as follows:


(in thousands)	2011		2010		2009
Cost of sales	$	420	$	297	$	347
Research and development		1,356		1,121		1,145
Selling, general and administrative		2,511		2,125		1,886

Total share-based compensation		4,287		3,543		3,378
Income tax benefit		—		—		—

Total share-based compensation, net of tax	$	4,287	$	3,543	$	3,378

At December 31, 2011, excluding a reduction for forfeitures, we had approximately $2.9 million of pre-tax unrecognized compensation cost related to unvested stock options which is expected to be recognized over a weighted-average period of approximately 1.9 years.

At December 31, 2011, excluding a reduction for forfeitures, we had approximately $3.5 million of pre-tax unrecognized compensation cost related to unvested restricted stock units which is expected to be recognized over a weighted-average period of approximately 2.6 years.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

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+ Details

Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

6.	Income Taxes

Significant components of the provision (benefit) for income taxes are as follows:


(in thousands)	2011			2010			2009
Current:
U.S. Federal	$	(90	)	$	1,239		$	(4,025	)
U.S. State		(250	)		(71	)		47
Foreign		4,075			6,397			991

Total current		3,735			7,565			(2,987	)
Deferred:
U.S. Federal		(977	)		(1,519	)		17,285
U.S. State		(4	)		(207	)		2,590
Foreign		(695	)		(245	)		(2,515	)

Total deferred		(1,676	)		(1,971	)		17,360

	$	2,059		$	5,594		$	14,373

Income (loss) before income taxes consisted of the following:


(in thousands)	2011		2010		2009
U.S.	$	8,154	$	7,059	$	(8,430	)
Foreign		9,624		23,179		(5,365	)

Total	$	17,778	$	30,238	$	(13,795	)

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting and tax purposes. Significant components of our deferred tax assets and liabilities were as follows:


(in thousands)	2011			2010
Deferred tax assets:
Inventory, receivable and warranty reserves	$	12,604		$	10,446
Net operating loss carryforwards		1,069			1,077
Tax credit carryforwards		7,213			6,135
Accrued employee benefits		2,233			2,672
Deferred profit		688			3,842
Stock-based compensation		2,715			1,887
Acquisition basis differences		2,369			2,593
Excess of book over tax depreciation		—			135
Capitalized research expenses, accrued interest and other		207			316

Gross deferred tax assets		29,098			29,103
Less valuation allowance		(22,352	)		(23,295	)

Total deferred tax assets		6,746			5,808
Deferred tax liabilities:
Excess of tax over book depreciation		211			—
Gain on facilities sale		2,788			2,788
Acquisition basis differences		9,591			10,584
Prepaid and other		252			299

Total deferred tax liabilities		12,842			13,671

Net deferred tax liabilities	$	(6,096	)	$	(7,863	)

Companies are required to assess whether a valuation allowance should be recorded against their deferred tax assets (“DTAs”) based on the consideration of all available evidence, using a “more likely than not” realization standard. The four sources of taxable income that must be considered in determining whether DTAs will be realized are, (1) future reversals of existing taxable temporary differences (i.e. offset of gross deferred tax assets against gross deferred tax liabilities); (2) taxable income in prior carryback years, if carryback is permitted under the tax law; (3) tax planning strategies and (4) future taxable income exclusive of reversing temporary differences and carryforwards.

In assessing whether a valuation allowance is required, significant weight is to be given to evidence that can be objectively verified. We have evaluated our DTAs each reporting period, including an assessment of our cumulative income or loss over the prior three-year period and future periods, to determine if a valuation allowance was required. A significant negative factor in our assessment was Cohu's three-year cumulative U.S. loss history at the end of the 2009 and 2010 fiscal year periods.

After a review of the four sources of taxable income described above and in view of our three-year cumulative U.S. loss, we recorded an increase in our valuation allowance on U.S. DTAs, with a corresponding charge to our income tax provision, of approximately $19.6 million in the second quarter of fiscal 2009.

Notwithstanding our 36-month domestic, cumulative GAAP pretax income of approximately $7 million at the end of 2011, with (i) the weak semiconductor equipment industry business conditions we have experienced in the second half of 2011, (ii) global economic uncertainty and (iii) our significant gross deferred tax assets we were unable to conclude at December 31, 2011 that it was “more likely than not” that our DTAs would be realized and, consistent with 2010 and 2011, will only reverse the valuation allowance and reinstate DTAs to the extent we accrue taxes on future income. We will evaluate the realizability of our DTAs at the end of each quarterly reporting period in 2012 and should circumstances change it is possible the remaining valuation allowance, or a portion thereof, will be reversed during 2012.

Our valuation allowance on DTAs at December 31, 2011 and December 25, 2010 was approximately $22.4 million and $23.3 million, respectively. The remaining gross DTAs for which a valuation allowance was not recorded are realizable through future reversals of existing taxable temporary differences or loss carryback. As the realization of DTAs is determined by tax jurisdiction, the significant deferred tax liability recorded as part of the 2008 acquisition of Rasco, a German corporation, was not a source of taxable income in assessing the realization of our DTAs in the U.S.

The reconciliation of income tax computed at the U.S. federal statutory tax rate to the provision (benefit) for income taxes is as follows:


(in thousands)	2011			2010			2009
Tax at U.S. 35% statutory rate	$	6,223		$	10,583		$	(4,828	)
State income taxes, net of federal tax benefit		(941	)		95			(1,051	)
Settlements, adjustments and releases from statute expirations		(791	)		(712	)		(166	)
Change in effective tax rate for deferred balances		—			638			—
Federal tax credits		(707	)		(688	)		(375	)
Stock-based compensation on which no tax benefit provided		202			55			157
Change in valuation allowance		(483	)		(2,027	)		20,562
Foreign income taxed at different rates		(726	)		(1,740	)		(130	)
Other, net		(718	)		(610	)		204

	$	2,059		$	5,594		$	14,373

State income taxes, net of federal benefit, have been reduced by research tax credits totaling approximately $0.6 million in all periods presented.

At December 31, 2011, we had state and foreign net operating loss carryforwards of approximately $19.6 million and $0.1 million, respectively, that expire in various tax years through 2031. We also have federal and state tax credit carryforwards at December 31, 2011 of approximately $2.0 million and $10.0 million, respectively, certain of which expire in various tax years beginning in 2014 through 2031 or have no expiration date.

U.S. income taxes have not been provided on approximately $20.0 million of accumulated undistributed earnings of certain foreign subsidiaries, as we currently intend to indefinitely reinvest these earnings in operations outside the U.S. It is not practicable to estimate the amount of tax that might be payable if some or all of such earnings were to be remitted. We have certain tax holidays or incentives with respect to our operations in Singapore and the Philippines. These holidays or incentives require compliance with certain conditions and expire at various dates through 2020. The impact of these holidays or incentives on net income was not significant for fiscal years ended December 2011, 2010 and 2009.

A reconciliation of our gross unrecognized tax benefits is as follows:


(in thousands)	2011			2010			2009
Balance at beginning of year	$	5,069		$	4,886		$	4,562
Gross additions for tax positions of current year		1,455			578			964
Gross additions (reductions) for tax positions of prior years		126			(23	)		22
Reductions as a result of settlements with tax authorities		—			—			(135	)
Reductions as a result of a lapse of the statute of limitations		(1,269	)		(372	)		(527	)

Balance at end of year	$	5,381		$	5,069		$	4,886

If the unrecognized tax benefits at December 31, 2011 are ultimately recognized, approximately $3.1 million would result in a reduction in our income tax expense and effective tax rate. We are unable to estimate the range of any reasonably possible increase or decrease in our gross unrecognized tax benefits over the next 12 months. However, we do not expect any such outcome will result in a material change to our financial condition or results of operations.

We recognize interest and penalties related to unrecognized tax benefits in income tax expense. Cohu had approximately $0.4 million and $0.6 million accrued for the payment of interest and penalties at December 31, 2011 and December 25, 2010, respectively. Interest expense recognized in 2011, 2010 and 2009 was approximately $0.2 million, $0.1 million and $0.1 million, respectively.

In 2009 and 2010 we concluded routine examinations by the Internal Revenue Service of our 2005 to 2008 U.S. income tax returns without any material adjustments. In 2010 the Internal Revenue Service commenced a routine examination of our 2009 U.S. income tax return as a result of our net operating loss carryback. This examination was concluded in 2010 without any material adjustments.

Our U.S. federal and state income tax returns for years after 2007 and 2006, respectively, remain open to examination, subject to the statute of limitations. The statute of limitations for the assessment and collection of income taxes related to our foreign tax returns varies by country. In the foreign countries where we have significant operations these time periods generally range from four to six years after the year for which the tax is due.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Segment and Related Information

12 Months Ended

Dec. 31, 2011

Segment and Related Information

7.	Segment and Related Information

Our reportable segments are business units that offer different products and are managed separately because each business requires different technology and marketing strategies. Our three segments are: semiconductor equipment, microwave communications and video cameras.

The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. We allocate resources and evaluate the performance of segments based on profit or loss from operations, excluding interest, corporate expenses and unusual gains or losses. Intersegment sales were not significant for any period.

Financial information by industry segment is presented below:


(in thousands)	2011			2010			2009
Net sales by segment:
Semiconductor equipment	$	260,648		$	273,566		$	119,998
Microwave communications		29,967			31,705			34,093
Video cameras		18,353			17,396			17,170

Total consolidated net sales and net sales for reportable segments	$	308,968		$	322,667		$	171,261


Segment profit (loss):
Semiconductor equipment	$	20,040		$	29,654		$	(17,704	)
Microwave communications		1,510			3,679			5,868
Video cameras		807			561			773

Profit (loss) for reportable segments		22,357			33,894			(11,063	)
Other unallocated amounts:
Corporate expenses		(5,021	)		(4,217	)		(4,032	)
Interest and other income		442			561			1,300

Income (loss) from operations before income taxes	$	17,778		$	30,238		$	(13,795	)


(in thousands)	2011		2010		2009
Depreciation and amortization by segment deducted in arriving at profit (loss):
Semiconductor equipment	$	4,313	$	3,596	$	3,248
Microwave communications		893		1,096		1,299
Video cameras		216		237		227

		5,422		4,929		4,774
Intangible amortization		4,645		6,059		6,255

Total depreciation and amortization for reportable segments	$	10,067	$	10,988	$	11,029

Capital expenditures by segment:
Semiconductor equipment	$	991	$	3,973	$	1,911
Microwave communications		313		440		454
Video cameras		109		166		142

Total consolidated capital expenditures	$	1,413	$	4,579	$	2,507


(in thousands)	2011		2010		2009
Total assets by segment:
Semiconductor equipment	$	255,189	$	255,246	$	216,818
Microwave communications		21,968		27,812		20,937
Video cameras		11,598		11,092		10,082

Total assets for reportable segments		288,755		294,150		247,837
Corporate, principally cash and investments and deferred taxes		72,853		71,893		82,281

Total consolidated assets	$	361,608	$	366,043	$	330,118

Customers from the semiconductor equipment segment comprising 10% or greater of our consolidated net sales are summarized as follows:


	2011			2010			2009
Intel		36	%		26	%		30	%
Texas Instruments		11	%		14	%		*
Advanced Micro Devices		*			*			11	%
* Less than 10% of net sales

Net sales to customers, attributed to countries based on product shipment destination, were as follows:


(in thousands)	2011		2010		2009
United States	$	77,563	$	64,992	$	57,935
Malaysia		48,624		52,539		22,099
Philippines		40,368		51,659		10,617
China		37,824		50,454		21,076
Singapore		16,666		21,186		18,148
Rest of the World		87,923		81,837		41,386

Total	$	308,968	$	322,667	$	171,261

Geographic location of our property, plant and equipment and other long-lived assets was as follows:


(in thousands)	2011		2010
Property, plant and equipment:
United States	$	24,138	$	26,440
Germany		8,625		9,207
Asia (Singapore, Taiwan and the Philippines)		4,218		4,157

Total, net	$	36,981	$	39,804

Goodwill and other intangible assets:
Germany	$	56,089	$	60,981
United States		17,241		17,482
Singapore		6,558		6,558

Total, net	$	79,888	$	85,021

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Stockholder Rights Plan

12 Months Ended

Dec. 31, 2011

Comprehensive Income (Loss) and Stockholder Rights Plan [Abstract]

Stockholder Rights Plan

8.	Stockholder Rights Plan

In November, 1996, we adopted a Stockholder Rights Plan (“Rights Plan”) and declared a dividend distribution of one Preferred Stock Purchase Right (“Right”) for each share of common stock, payable to holders of record on December 3, 1996. Under the Rights Plan, each stockholder received one Right for each share of common stock owned. Each Right entitled the holder to buy one one-hundredth (1/100) of a share of Cohu’s Series A Preferred Stock for $90. As a result of the two-for-one stock split in September, 1999, each share of common stock was associated with one-half of a Right entitling the holder to purchase one two-hundredth (1/200) of a share of Series A Preferred Stock for $45. In November, 2006, we amended and restated our existing Rights Plan to extend its term to November 9, 2016 and make certain other changes. Pursuant to the amendment, to reflect the increase in the price of our common stock since the adoption of the Rights Plan, the exercise price of each Right was increased to $190. Consequently, each one-half of a Right entitles the holder to purchase one two-hundredth (1/200) of a share of Series A Preferred Stock for $95. The Rights are not presently exercisable and will only become exercisable following the occurrence of certain specified events. If these specified events occur, each Right will be adjusted to entitle its holder to receive, upon exercise, common stock having a value equal to two times the exercise price of the Right, or each Right will be adjusted to entitle its holder to receive common stock of the acquiring company having a value equal to two times the exercise price of the Right, depending on the circumstances. The Rights expire on November 9, 2016, and we may redeem them for $0.001 per Right. The Rights do not have voting or dividend rights and, until they become exercisable, have no dilutive effect on our earnings per share.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies

9.	Commitments and Contingencies

We lease certain of our facilities and equipment under non-cancelable operating leases. Rental expense for the years 2011, 2010 and 2009 was approximately $1.1 million, $1.3 million and $1.1 million, respectively. Future minimum lease payments at December 31, 2011 are as follows:


(in thousands)	2012		2013		2014		2015		2016		Thereafter		Total
Non-cancelable operating leases	$	819	$	772	$	517	$	—	$	—	$	—	$	2,108

From time-to-time we are involved in various legal proceedings, examinations by various tax authorities and claims that have arisen in the ordinary course of our businesses. Although the outcome of such legal proceedings, claims and examinations cannot be predicted with certainty, we do not believe any such matters exist at this time that will have a material adverse effect on our financial position or results of our operations.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher FASB
-Name Accounting Standards Codification
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-Subparagraph (SX 210.5-02.25)
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

+ Details

Guarantees

12 Months Ended

Dec. 31, 2011

Guarantees [Abstract]

Guarantees

10.

Guarantees

Changes in accrued warranty during the three-year period ended December 31, 2011 were as follows:


(in thousands)	2011			2010			2009
Beginning balance	$	5,016		$	3,747		$	4,924
Warranty accruals		10,987			6,071			3,383
Warranty payments		(9,202	)		(4,802	)		(4,560	)

Ending balance	$	6,801		$	5,016		$	3,747

During the ordinary course of business, we provide standby letters of credit instruments to certain parties as required. At December 31, 2011, the maximum potential amount of future payments that we could be required to make under these standby letters of credit was approximately $0.6 million. We have not recorded any liability in connection with these arrangements beyond that required to appropriately account for the underlying transaction being guaranteed. We do not believe, based on historical experience and information currently available, that it is probable that any amounts will be required to be paid under these arrangements.

Related Party Transactions

12 Months Ended

Dec. 31, 2011

Related Party Transactions

11.

Related Party Transactions

James A. Donahue, Chairman, President and CEO of Cohu, and Steven J. Bilodeau, a member of the Cohu Board of Directors, are both members of the Board of Directors of Standard Microsystems Corporation (“SMSC”), a customer of our semiconductor equipment segment. During 2011, 2010 and 2009, total sales to SMSC were approximately $0.5 million, $0.4 million, and $1.0 million, respectively. On December 8, 2011, William E. Bendush was elected to Cohu’s Board of Directors. Mr. Bendush is a member of the Board of Directors of Microsemi Corporation (“MSCC”), a customer of our semiconductor equipment segment. During 2011 total sales to MSCC were approximately $1.7 million.

- Definition

The entire disclosure for related party transactions, including the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
-Section 08
-Paragraph k

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 3A
-Section 04
-Paragraph b

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 57
-Paragraph 1-4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39622-107864

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39603-107864

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(k))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39691-107864

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39678-107864

+ Details

Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2011

Quarterly Financial Data (Unaudited) [Abstract]

Quarterly Financial Data (Unaudited)

12.

Quarterly Financial Data (Unaudited)


Quarter		First (a)		Second (a)		Third (a)		Fourth (a)		Year
(in thousands, except per share data)

Net sales:	2011	$	89,700	$	80,896	$	71,813	$	66,559	$	308,968
	2010	$	64,830	$	74,869	$	86,066	$	96,902	$	322,667
Gross profit:	2011	$	28,815	$	26,547	$	23,355	$	21,412	$	100,129
	2010	$	19,999	$	27,428	$	30,077	$	32,491	$	109,995
Net income:	2011	$	6,574	$	5,050	$	3,376	$	719	$	15,719
	2010	$	907	$	6,698	$	7,611	$	9,428	$	24,644

Net income per share (b):
Basic	2011	$	0.27	$	0.21	$	0.14	$	0.03	$	0.65
	2010	$	0.04	$	0.28	$	0.32	$	0.39	$	1.04
Diluted	2011	$	0.27	$	0.21	$	0.14	$	0.03	$	0.64
	2010	$	0.04	$	0.28	$	0.32	$	0.39	$	1.02

(a)

All quarters presented above were comprised of 13 weeks except the fourth quarter of 2011 which was comprised of 14 weeks.

(b)

The sum of the four quarters may not agree to the year total due to rounding within a quarter.

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References + Details