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lfus-20210327

Table of Contents

United States

Securities and Exchange Commission

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 27, 2021


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___ to ___

Commission file number 0-20388

LITTELFUSE, INC.

(Exact name of registrant as specified in its charter)


Delaware		36-3795742
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
8755 West Higgins Road
Suite 500
Chicago	Illinois	60631
(Address of principal executive offices)		(ZIP Code)

Registrant’s telephone number, including area code: 773-628-1000

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol

Name of exchange on which registered

Common Stock, $0.01 par value

LFUS

NASDAQ

Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act (Check one): Large accelerated filer [X] Accelerated filer [ ] Non-accelerated filer [ ] Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Yes [ ] No [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No [X]

As of April 23, 2021, the registrant had outstanding 24,555,229 shares of Common Stock, net of Treasury Shares.

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TABLE OF CONTENTS


		Page

PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets as of March 27, 2021 (unaudited) and December 26, 2020	3
	Condensed Consolidated Statements of Net Income for the three months ended March 27, 2021 (unaudited) and March 28, 2020 (unaudited)	4
	Condensed Consolidated Statements of Comprehensive Income for the three months ended March 27, 2021 (unaudited) and March 28, 2020 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the three months ended March 27, 2021 (unaudited) and March 28, 2020 (unaudited)	6
	Condensed Consolidated Statements of Stockholders' Equity for the three months ended March 27, 2021 (unaudited) and March 28, 2020 (unaudited)	7
	Notes to Condensed Consolidated Financial Statements (unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	32
Item 4.	Controls and Procedures	32
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 3.	Defaults Upon Senior Securities	33
Item 4.	Mine Safety Disclosures	33
Item 5.	Other Information	34
Item 6.	Exhibits	34
Signatures		35

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LITTELFUSE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS


	(Unaudited)
(in thousands)	March 27, 2021		December 26, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	572,771	$	687,525
Short-term investments	53		54
Trade receivables, less allowances of $42,624 and $45,237 at March 27, 2021 and December 26, 2020, respectively	276,687		232,760
Inventories	295,057		258,002
Prepaid income taxes and income taxes receivable	4,146		3,029
Prepaid expenses and other current assets	43,698		35,939
Total current assets	1,192,412		1,217,309





Net property, plant, and equipment	344,914		344,178
Intangible assets, net of amortization	317,294		291,887
Goodwill	845,586		816,812
Investments	37,285		30,547
Deferred income taxes	9,854		11,224
Right of use lease assets, net	19,560		17,615
Other assets	19,965		18,021
Total assets	$	2,786,870	$	2,747,593
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	179,723	$	145,984



Accrued liabilities	98,354		110,478
Accrued income taxes	23,468		19,186
Current portion of long-term debt	25,000		—
Total current liabilities	326,545		275,648
Long-term debt, less current portion	623,865		687,034
Deferred income taxes	51,229		50,134
Accrued post-retirement benefits	42,894		45,802
Non-current operating lease liabilities	14,190		12,950
Other long-term liabilities	67,410		67,252
Shareholders’ equity:
Common stock, par value $0.01 per share: 34,000,000 shares authorized; shares issued, March 27, 2021–26,196,472; December 26, 2020–26,131,544	259		259
Additional paid-in capital	918,762		907,858
Treasury stock, at cost: 1,644,283 and 1,644,283 shares, respectively	(242,366)		(242,366)
Accumulated other comprehensive loss	(96,028)		(91,157)
Retained earnings	1,079,979		1,034,048
Littelfuse, Inc. shareholders’ equity	1,660,606		1,608,642
Non-controlling interest	131		131
Total equity	1,660,737		1,608,773
Total liabilities and equity	$	2,786,870	$	2,747,593

See accompanying Notes to Condensed Consolidated Financial Statements.

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LITTELFUSE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME

(Unaudited)


	Three Months Ended
(in thousands, except per share data)	March 27, 2021		March 28, 2020
Net sales	$	463,794	$	346,096
Cost of sales	303,328		221,740
Gross profit	160,466		124,356

Selling, general, and administrative expenses	58,288		51,200

Research and development expenses	14,739		14,463
Amortization of intangibles	10,521		9,981
Restructuring, impairment, and other charges	437		3,962
Total operating expenses	83,985		79,606
Operating income	76,481		44,750

Interest expense	4,673		5,418
Foreign exchange loss	6,837		2,584
Other (income) expense, net	(7,737)		1,249
Income before income taxes	72,708		35,499
Income taxes	14,995		10,855
Net income	$	57,713	$	24,644

Earnings per share:
Basic	$	2.35	$	1.01
Diluted	$	2.32	$	1.00

Weighted-average shares and equivalent shares outstanding:
Basic	24,532		24,393
Diluted	24,892		24,578

See accompanying Notes to Condensed Consolidated Financial Statements.

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LITTELFUSE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	Three Months Ended
(in thousands)	March 27, 2021		March 28, 2020
Net income	$	57,713	$	24,644
Other comprehensive income (loss):
Pension and postemployment adjustment, net of tax	454		561



Foreign currency translation adjustments	(5,325)		(15,540)
Comprehensive income	$	52,842	$	9,665

See accompanying Notes to Condensed Consolidated Financial Statements.

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LITTELFUSE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Three Months Ended
(in thousands)	March 27, 2021		March 28, 2020
OPERATING ACTIVITIES
Net income	$	57,713	$	24,644
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	13,677		13,821
Amortization of intangibles	10,521		9,981

Deferred revenue	(157)		(145)
Non-cash inventory charges	3,489		—
Impairment charges	—		2,237

Stock-based compensation	3,395		2,965
(Gain) loss on investments and other assets	(7,675)		2,604
Deferred income taxes	378		616
Other	8,537		3,547
Changes in operating assets and liabilities:
Trade receivables	(32,973)		(9,457)
Inventories	(6,152)		6,667
Accounts payable	17,070		(3,964)



Accrued liabilities and income taxes	(15,427)		(7,012)
Prepaid expenses and other assets	(2,230)		(1,225)
Net cash provided by operating activities	50,166		45,279

INVESTING ACTIVITIES
Acquisitions of businesses, net of cash acquired	(109,852)		—


Purchases of property, plant, and equipment	(14,721)		(16,586)
Net proceeds from sale of property, plant and equipment	2,553		50
Net cash used in investing activities	(122,020)		(16,536)

FINANCING ACTIVITIES
Proceeds of revolving credit facility	—		100,000
Payments of revolving credit facility	(30,000)		—


Payments of term loan	—		(2,500)
Net proceeds related to stock-based award activities	7,509		2,956
Purchases of common stock	—		(22,927)

Cash dividends paid	(11,782)		(11,725)
Net cash (used in) provided by financing activities	(34,273)		65,804
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(4,101)		(5,111)
(Decrease) increase in cash, cash equivalents, and restricted cash	(110,228)		89,436
Cash, cash equivalents, and restricted cash at beginning of period	687,525		531,139
Cash, cash equivalents, and restricted cash at end of period	$	577,297	$	620,575
Supplementary Cash Flow Information
Reconciliation of cash and cash equivalents:
Cash and cash equivalents	$	572,771	$	620,575
Restricted cash included in prepaid expenses and other current assets	$	3,462	—
Restricted cash included in other assets	$	1,064	$	—
Cash paid during the period for interest	$	6,235	$	7,354

Capital expenditures, not yet paid	$	4,141	$	5,832

See accompanying Notes to Condensed Consolidated Financial Statements.

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LITTELFUSE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited)


	Littelfuse, Inc. Shareholders’ Equity
(in thousands, except share and per share data)	Common Stock		Addl. Paid in Capital		Treasury Stock		Accum. Other Comp. (Loss)		Retained Earnings		Non-controlling Interest		Total
Balance at December 26, 2020	$	259	$	907,858	$	(242,366)	$	(91,157)	$	1,034,048	$	131	$	1,608,773
Net income	—		—		—		—		57,713		—		57,713


Other comprehensive loss, net of tax	—		—		—		(4,871)		—		—		(4,871)
Stock-based compensation	—		3,395		—		—		—		—		3,395


Stock options exercised	—		7,509		—		—		—		—		7,509

Cash dividends paid ($0.48 per share)	—		—		—		—		(11,782)		—		(11,782)
Balance at March 27, 2021	$	259	$	918,762	$	(242,366)	$	(96,028)	$	1,079,979	$	131	$	1,660,737


	Littelfuse, Inc. Shareholders’ Equity
(in thousands, except share and per share data)	Common Stock		Addl. Paid in Capital		Treasury Stock		Accum. Other Comp. (Loss)		Retained Earnings		Non-controlling Interest		Total
Balance at December 28, 2019	$	256	$	867,996	$	(216,447)	$	(106,823)	$	950,901	$	131	$	1,496,014
Net income	—		—		—		—		24,644		—		24,644



Other comprehensive loss, net of tax	—		—		—		(14,979)		—		—		(14,979)
Stock-based compensation	—		2,965		—		—		—		—		2,965

Withheld shares on restricted share units for withholding taxes	—		—		(443)		—		—		—		(443)
Stock options exercised	—		3,399		—		—		—		—		3,399
Repurchases of common stock	—		—		(22,927)		—		—		—		(22,927)

Cash dividends paid ($0.48 per share)	—		—		—		—		(11,725)		—		(11,725)
Balance at March 28, 2020	$	256	$	874,360	$	(239,817)	$	(121,802)	$	963,820	$	131	$	1,476,948

See accompanying Notes to Condensed Consolidated Financial Statements.

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Notes to Condensed Consolidated Financial Statements

1. Summary of Significant Accounting Policies and Other Information

Nature of Operations

Founded in 1927, Littelfuse is an industrial technology manufacturing company empowering a sustainable, connected, and safer world. Across more than 15 countries, and with 12,000 global associates, we partner with customers to design and deliver innovative, reliable solutions. Serving over 100,000 end customers, our products are found in a variety of industrial, transportation and electronics end markets – everywhere, every day.

Basis of Presentation

The Company’s accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures normally included in the consolidated balance sheets, statements of net income and comprehensive income, statements of cash flows, and statement of stockholders' equity prepared in conformity with U.S. GAAP have been condensed or omitted as permitted by such rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. They have been prepared in accordance with accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 26, 2020 which should be read in conjunction with the disclosures therein. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal, recurring nature. Operating results for interim periods are not necessarily indicative of annual operating results.

Revenue Recognition

Revenue Disaggregation

The following tables disaggregate the Company’s revenue by primary business units for the three months ended March 27, 2021 and March 28, 2020:


	Three Months Ended March 27, 2021
(in thousands)	Electronics Segment		Automotive Segment		Industrial Segment		Total
Electronics – Passive Products and Sensors	$	132,437	$	—	$	—	$	132,437
Electronics – Semiconductor	154,098		—		—		154,098
Passenger Car Products	—		67,901		—		67,901
Automotive Sensors	—		28,284		—		28,284
Commercial Vehicle Products	—		32,344		—		32,344
Industrial Products	—		—		48,730		48,730
Total	$	286,535	$	128,529	$	48,730	$	463,794

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	Three Months Ended March 28, 2020
(in thousands)	Electronics Segment		Automotive Segment		Industrial Segment		Total
Electronics – Passive Products and Sensors	$	84,598	$	—	$	—	$	84,598
Electronics – Semiconductor	129,591		—		—		129,591
Passenger Car Products	—		52,645		—		52,645
Automotive Sensors	—		24,174		—		24,174
Commercial Vehicle Products	—		27,951		—		27,951
Industrial Products	—		—		27,137		27,137
Total	$	214,189	$	104,770	$	27,137	$	346,096

See Note 15, Segment Information for net sales by segment and countries.

Revenue Recognition

The Company recognizes revenue on product sales in the period in which the Company satisfies its performance obligation and control of the product is transferred to the customer. The Company’s sales arrangements with customers are predominately short term in nature and generally provide for transfer of control at the time of shipment as this is the point at which title and risk of loss of the product transfers to the customer. At the end of each period, for those shipments where title to the products and the risk of loss and rewards of ownership do not transfer until the product has been received by the customer, the Company adjusts revenues and cost of sales for the delay between the time that the products are shipped and when they are received by the customer. The amount of revenue recorded reflects the consideration to which the Company expects to be entitled in exchange for goods and may include adjustments for customer allowance, rebates and price adjustments. The Company’s distribution channels are primarily through direct sales and independent third-party distributors.

The Company elected the practical expedient under Accounting Standards Codification ("ASC") 340-40-25-4 to expense commissions when incurred as the amortization period of the commission asset the Company would have otherwise recognized is less than one year.

Revenue and Billing

The Company generally accepts orders from customers through receipt of purchase orders or electronic data interchange based on written sales agreements and purchasing contracts. Contract pricing and selling agreement terms are based on market factors, costs, and competition. Pricing is often negotiated as an adjustment (premium or discount) from the Company’s published price lists. The customer is invoiced when the Company’s products are shipped to them in accordance with the terms of the sales agreement. As the Company’s standard payment terms are less than one year, the Company elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company also elected the practical expedient provided in ASC 606-10-25-18B to treat all product shipping and handling activities as fulfillment activities, and therefore recognize the gross revenue associated with the contract, inclusive of any shipping and handling revenue.

Ship and Debit Program

Some of the terms of the Company’s sales agreements and normal business conditions provide customers (distributors) the ability to receive price adjustments on products previously shipped and invoiced. This practice is common in the industry and is referred to as a “ship and debit” program. This program allows the distributor to debit the Company for the difference between the distributors’ contracted price and a lower price for specific transactions. Under certain circumstances (usually in a competitive situation or large volume opportunity), a distributor will request authorization for pricing allowances to reduce its price. When the Company approves such a reduction, the distributor is authorized to “debit” its account for the difference between the contracted price and the lower approved price. The Company establishes reserves for this program based on historic activity, electronic distributor inventory levels and actual authorizations for the debit and recognizes these debits as a reduction of revenue.

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Return to Stock

The Company has a return to stock policy whereby certain customers, with prior authorization from Littelfuse management, can return previously purchased goods for full or partial credit. The Company establishes an estimated allowance for these returns based on historic activity. Sales revenue and cost of sales are reduced to anticipate estimated returns.

Volume Rebates

The Company offers volume based sales incentives to certain customers to encourage greater product sales. If customers achieve their specific quarterly or annual sales targets, they are entitled to rebates. The Company estimates the projected amount of rebates that will be achieved by the customer and recognizes this estimated cost as a reduction to revenue as products are sold.

Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash at March 27, 2021 and December 26, 2020 reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statement of Cash Flows.


(in thousands)	March 27, 2021		December 26, 2020
Cash and cash equivalents	$	572,771	$	687,525
Restricted cash included in prepaid expenses and other current assets	3,462		—
Restricted cash included in other assets	1,064		$	—
Total cash, cash equivalents and restricted cash	$	577,297	$	687,525

Recently Adopted Accounting Standards

In December 2019, the Financial Accounting Standards Board (FASB) issued ASU No. 2019-12, "Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes" as part of its initiative to reduce complexity in the accounting standards. The guidance is effective for fiscal years beginning after December 15, 2020 with early adoption permitted. The adoption of ASU 2019-12 did not have a material impact on our Condensed Consolidated Financial Statements.

2. Acquisitions

The Company accounts for acquisitions using the acquisition method in accordance with ASC 805, “Business Combinations,” in which assets acquired and liabilities assumed are recorded at fair value as of the date of acquisition. The operating results of the acquired business are included in the Company’s Consolidated Financial Statements from the date of the acquisition.

Hartland Controls

On January 28, 2021, the Company acquired Hartland Controls ("Hartland"), a manufacturer and leading supplier of electrical components used primarily in heating, ventilation, air conditioning (HVAC) and other industrial and control systems applications with annualized sales of approximately $70 million. The purchase price for Hartland was approximately $112.3 million and the operations of Hartland are included in the Industrial segment.

The total purchase consideration of $109.9 million, net of cash, cash equivalents, and restricted cash has been allocated, on a preliminary basis, to assets acquired and liabilities assumed, as of the completion of the acquisition, based on preliminary estimated fair values. The purchase consideration is subject to change for the final working capital adjustments. As of March 27, 2021, the Company had restricted cash of $1.7 million in an escrow account for general indemnification purposes. The purchase price allocation is preliminary because the evaluations necessary to assess the fair values of the net assets acquired are still in process. The primary areas that are not yet finalized relate to the completion of the valuations of certain acquired income tax assets and liabilities. As a result, these allocations are subject to change during the purchase price allocation period as the valuations are finalized.

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The following table summarizes the purchase price allocation of the fair value of assets acquired and liabilities assumed in the Hartland acquisition:


(in thousands)	Purchase Price Allocation
Total purchase consideration:
Cash, net of cash acquired, and restricted cash	$	109,852
Allocation of consideration to assets acquired and liabilities assumed:
Trade receivables, net	14,305
Inventories	36,306
Other current assets	2,384
Property, plant, and equipment	6,296
Intangible assets	39,660
Goodwill	38,929
Other non-current assets	3,542
Current liabilities	(25,024)
Other non-current liabilities	(6,546)
	$	109,852

All Hartland goodwill, other assets and liabilities were recorded in the Industrial segment and are primarily reflected in the Americas and Asia-Pacific geographic areas. The goodwill resulting from this acquisition consists largely of the Company’s expected future product sales and synergies from combining Hartland’s products and technology with the Company’s existing industrial products portfolio. Goodwill resulting from the Hartland acquisition is not expected to be deductible for tax purposes.

Included in the Company’s Condensed Consolidated Statements of Net Income for the three months ended March 27, 2021 are net sales of approximately $16.7 million, and a loss before income taxes of $2.2 million, since the January 28, 2021 acquisition of Hartland.

The Company recorded a $6.8 million step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation. The step-up is being amortized as a non-cash charge to cost of goods sold during the first and second quarters of 2021, as the acquired inventory is sold, and reflected as other non-segment costs. During the three months ended March 27, 2021, the Company recognized a charge of $3.5 million for the amortization of this fair value inventory step-up.

During the three months ended March 27, 2021, the Company incurred approximately $0.7 million of legal and professional fees related to this acquisition recognized as Selling, general, and administrative expenses. These costs were reflected as other non-segment costs.

Pro Forma Results

The following table summarizes, on an unaudited pro forma basis, the combined results of operations of the Company and Hartland as though the acquisition had occurred as of December 29, 2019. The pro forma amounts presented are not necessarily indicative of either the actual consolidated results had the Hartland acquisition occurred as of December 29, 2019 or of future consolidated operating results.


	For the Three Months Ended
(in thousands, except per share amounts)	March 27, 2021		March 28, 2020
Net sales	$	470,832	$	363,617
Income before income taxes	77,288		31,431
Net income	61,317		21,438
Net income per share — basic	2.50		0.88
Net income per share — diluted	2.46		0.87

Pro forma results presented above primarily reflect the following adjustments:

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	For the Three Months Ended
(in thousands)	March 27, 2021		March 28, 2020
Amortization(a)	$	(279)	$	(834)
Depreciation	7		48
Transaction costs(b)	707		(707)
Amortization of inventory step-up(c)	3,490		(5,137)
Income tax (expense) benefit of above items	(831)		1,398

(a)The amortization adjustment for the three months ended March 28, 2020 primarily reflects incremental amortization resulting for the measurement of intangibles at their fair values.

(b)The transaction cost adjustments reflect the reversal of certain bank and attorney fees from the three months ended March 27, 2021 and recognition of those fees during the three months ended March 28, 2020.

(c)The amortization of inventory step-up adjustment reflects the reversal of the amount recognized during the three months ended March 27, 2021 and the recognition of a full quarter of the amortization during the three months ended March 28, 2020. The inventory step-up was amortized over four months as the inventory was sold.

3. Inventories

The components of inventories at March 27, 2021 and December 26, 2020 are as follows:


(in thousands)	March 27, 2021		December 26, 2020
Raw materials	$	97,695	$	85,394
Work in process	102,285		92,783
Finished goods	130,138		114,641
Inventory Reserves	(35,061)		(34,816)
Total	$	295,057	$	258,002

4. Property, Plant, and Equipment

The components of net property, plant, and equipment at March 27, 2021 and December 26, 2020 are as follows:


(in thousands)	March 27, 2021		December 26, 2020
Land	$	22,711	$	22,851
Building	124,192		123,497
Equipment	687,563		678,220
Accumulated depreciation and amortization	(489,552)		(480,390)
Total	$	344,914	$	344,178

The Company recorded depreciation expense of $13.7 million and $13.8 million for the three months ended March 27, 2021 and March 28, 2020, respectively.

5. Goodwill and Other Intangible Assets

The amounts for goodwill and changes in the carrying value by segment for the three months ended March 27, 2021 are as follows:

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(in thousands)	Electronics		Automotive		Industrial		Total
Net book value of goodwill as of December 26, 2020
Gross goodwill as of December 26, 2020	$	676,325	$	138,354	$	47,551	$	862,230
Accumulated impairment losses as of December 26, 2020	—		(36,423)		(8,995)		(45,418)
Total	676,325		101,931		38,556		816,812
Changes during 2021:
Additions(a)	—		—		38,929		38,929

Currency translation	(8,124)		(2,012)		(19)		(10,155)
Net book value of goodwill as of March 27, 2021
Gross goodwill as of March 27, 2021	668,201		136,229		86,461		890,891
Accumulated impairment losses as of March 27, 2021	—		(36,310)		(8,995)		(45,305)
Total	$	668,201	$	99,919	$	77,466	$	845,586

(a) The additions resulted from the acquisition of Hartland.

The components of other intangible assets as of March 27, 2021 and December 26, 2020 are as follows:


	As of March 27, 2021
(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Land use rights	$	10,251	$	2,051	$	8,200
Patents, licenses and software	142,732		94,636		48,096
Distribution network	43,704		39,307		4,397
Customer relationships, trademarks, and tradenames	400,253		143,652		256,601

Total	$	596,940	$	279,646	$	317,294


	As of December 26, 2020
(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Land use rights	$	10,280	$	2,007	$	8,273
Patents, licenses and software	137,210		92,868		44,342
Distribution network	43,910		38,980		4,930
Customer relationships, trademarks, and tradenames	372,064		137,722		234,342
Total	$	563,464	$	271,577	$	291,887

During the three months ended March 27, 2021 and March 28, 2020, the Company recorded amortization expense of $10.5 million and $10.0 million, respectively.

The Company recognized a $0.3 million non-cash impairment charge in the first quarter of 2020 on a certain patent triggered by the Company’s announcement to consolidate a manufacturing facility within the Industrial segment.

During the three months ended March 27, 2021, the Company recorded additions to intangible assets of $39.7 million, related to the Hartland acquisition, the components of which were as follows:


(in thousands)	Weighted Average Useful Life	Amount
Patents, licenses and software	9.2	$	7,559

Customer relationships, trademarks, and tradenames	13.7	32,101
Total		$	39,660

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Estimated annual amortization expense related to intangible assets with definite lives as of March 27, 2021 is as follows:


(in thousands)	Amount
2021	$	41,545
2022	40,791
2023	36,491
2024	33,054
2025	32,603
2026 and thereafter	143,331
Total	$	327,815

6. Accrued Liabilities

The components of accrued liabilities as of March 27, 2021 and December 26, 2020 are as follows:


(in thousands)	March 27, 2021		December 26, 2020
Employee-related liabilities	$	45,135	$	50,689
Operating lease liability	7,177		6,811
Interest	2,636		4,517
Restructuring liability	2,588		4,195
Customer liability	794		3,858
Professional services	3,010		3,321
Deferred revenue	2,713		2,959

Other non-income taxes	1,903		2,126
Other	32,398		32,002
Total	$	98,354	$	110,478

Employee-related liabilities consist primarily of payroll, sales commissions, bonus, employee benefit accruals and workers’ compensation. Bonus accruals include amounts earned pursuant to the Company’s primary employee incentive compensation plans. Other accrued liabilities include miscellaneous operating accruals and other client-related liabilities.

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7. Restructuring, Impairment and Other Charges

The Company recorded restructuring, impairment and other charges for the three months ended March 27, 2021 and March 28, 2020 as follows:


	Three months ended March 27, 2021
(in thousands)	Electronics		Automotive		Industrial		Total
Employee terminations	$	257	$	—	$	163	$	420
Other restructuring charges	—		17		—		17
Total restructuring charges	257		17		163		437
Impairment	—		—		—		—

Total	$	257	$	17	$	163	$	437


	Three months ended March 28, 2020
(in thousands)	Electronics		Automotive		Industrial		Total
Employee terminations	$	881	$	399	$	321	$	1,601
Other restructuring charges	1		120		3		124
Total restructuring charges	882		519		324		1,725
Impairment	—		—		2,237		2,237

Total	$	882	$	519	$	2,561	$	3,962

2021

For the three months ended March 27, 2021, the Company recorded total restructuring charges of $0.4 million, primarily for employee termination costs. These charges primarily related to the reorganization of certain manufacturing, selling and administrative functions within the Electronics and Industrial segments.

2020

For the three months ended March 28, 2020, the Company recorded total restructuring charges of $1.7 million, for employee termination costs and other restructuring charges. These charges primarily related to the reorganization of certain manufacturing, selling and administrative functions across all segments and the announced consolidation of a manufacturing facility within the Industrial segment. The Company also recognized $2.2 million of impairment charges related to the land and building associated with the Company’s announcement to consolidate a manufacturing facility within the Industrial segment.

The restructuring liability as of March 27, 2021 and December 26, 2020 is $2.6 million and $4.2 million, respectively. The restructuring liability is included within accrued liabilities in the Condensed Consolidated Balance Sheets. The Company anticipates the remaining payments associated with employee terminations will primarily be completed by the first quarter of 2022.

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8. Debt

The carrying amounts of debt at March 27, 2021 and December 26, 2020 are as follows:


(in thousands)	March 27, 2021		December 26, 2020
Revolving Credit Facility	$	100,000	$	130,000

Euro Senior Notes, Series A due 2023	138,039		142,679
Euro Senior Notes, Series B due 2028	112,083</