Littelfuse Inc 10-Q for FY2024 Q3

Littelfuse Inc /De (LFUS)

10-Q 2024-10-30 For: 2024-09-28

Added on April 10, 2026

About this 10-Q

Littelfuse Inc filed this 10-Q on October 30, 2024, covering the quarter ended September 28, 2024 (FY2024 Q3).

Headline figures

Quarter ended September 28, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $567.39M; down 6.5% from $607.07M a year earlier
Net income: $58.06M; up 0.5% from net income of $57.79M a year earlier
Diluted EPS: $2.32; up 0.9% from $2.30 a year earlier

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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)


		Page

PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets as of September 28, 2024 (unaudited) and December 30, 2023	3
	Condensed Consolidated Statements of Net Income for the three and nine months ended September 28, 2024 (unaudited) and September 30, 2023 (unaudited)	4
	Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 28, 2024 (unaudited) and September 30, 2023 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the nine months ended September 28, 2024 (unaudited) and September 30, 2023 (unaudited)	6
	Condensed Consolidated Statements of Stockholders' Equity for the nine months ended September 28, 2024 (unaudited) and September 30, 2023 (unaudited)	7
	Notes to Condensed Consolidated Financial Statements (unaudited)	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	31
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	41
Item 4.	Controls and Procedures	42
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	42
Item 1A.	Risk Factors	42
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	42
Item 3.	Defaults Upon Senior Securities	43
Item 4.	Mine Safety Disclosures	43
Item 5.	Other Information	43
Item 6.	Exhibits	44
Signatures		45


	(Unaudited)
(in thousands, except share and per share data)	September 28, 2024		December 30, 2023
ASSETS
Current assets:
Cash and cash equivalents (Note 1)	$	629,670	$	555,513
Short-term investments	1,011		235
Trade receivables, less allowances of $76,151 and $84,696 at September 28, 2024 and December 30, 2023, respectively	338,758		287,018
Inventories (Note 3)	453,781		474,607
Prepaid income taxes and income taxes receivable	6,793		8,701
Prepaid expenses and other current assets	132,510		82,526
Total current assets	1,562,523		1,408,600











Net property, plant, and equipment (Note 4)	481,592		493,153
Intangible assets, net of amortization (Note 5)	560,994		606,136
Goodwill (Note 5)	1,317,748		1,309,998
Investments	26,607		24,821
Deferred income taxes	11,955		10,486
Right of use lease assets	60,277		62,370
Other long-term assets	40,548		79,711
Total assets	$	4,062,244	$	3,995,275
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	179,486	$	173,535



Accrued liabilities (Note 6)	152,772		149,214
Accrued income taxes	39,809		38,725
Current portion of long-term debt (Note 8)	67,799		14,020
Total current liabilities	439,866		375,494
Long-term debt, less current portion (Note 8)	799,949		857,915
Deferred income taxes	95,554		110,820
Accrued post-retirement benefits	31,373		34,422
Non-current lease liabilities	52,074		49,472
Other long-term liabilities	70,328		86,671
Total liabilities	$	1,489,144	$	1,514,794
Commitments and contingencies (Note 15)
Shareholders’ equity:
Common stock, par value $0.01 per share: 34,000,000 shares authorized; shares issued, September 28, 2024–26,749,671; December 30, 2023–26,624,071	262		262
Additional paid-in capital	1,043,736		1,012,325
Treasury stock, at cost: 1,936,668 and 1,711,290 shares, respectively	(305,259)		(259,263)
Accumulated other comprehensive loss	(50,782)		(55,817)
Retained earnings	1,884,823		1,782,662
Littelfuse, Inc. shareholders’ equity	2,572,780		2,480,169
Non-controlling interest	320		312
Total equity	2,573,100		2,480,481
Total liabilities and equity	$	4,062,244	$	3,995,275


	Three Months Ended				Nine Months Ended
(in thousands, except per share data)	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Net sales	$	567,390	$	607,071	$	1,661,263	$	1,828,850
Cost of sales	351,498		380,200		1,050,559		1,122,190
Gross profit	215,892		226,871		610,704		706,660

Selling, general, and administrative expenses	83,897		87,204		263,395		270,057

Research and development expenses	26,470		25,484		81,283		77,270
Amortization of intangibles	15,864		16,022		47,418		49,773
Restructuring, impairment, and other charges	1,840		4,516		10,329		13,221
Total operating expenses	128,071		133,226		402,425		410,321
Operating income	87,821		93,645		208,279		296,339

Interest expense	9,772		10,101		29,358		29,803
Foreign exchange loss	9,630		11,776		4,273		8,697
Other income, net	(9,297)		(3,527)		(19,916)		(11,810)
Income before income taxes	77,716		75,295		194,564		269,649
Income taxes	19,658		17,507		42,588		53,045
Net income	$	58,058	$	57,788	$	151,976	$	216,604

Earnings per share:
Basic	$	2.34	$	2.32	$	6.12	$	8.72
Diluted	$	2.32	$	2.30	$	6.07	$	8.63

Weighted-average shares and equivalent shares outstanding:
Basic	24,796		24,893		24,822		24,838
Diluted	25,025		25,143		25,040		25,100


	Three Months Ended				Nine Months Ended
(in thousands)	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Net income	$	58,058	$	57,788	$	151,976	$	216,604
Other comprehensive income (loss):
Defined benefit pension plan and other adjustments, net of tax	191		(3)		861		(156)


Cash flow hedges, net of tax	(8,297)		1,546		(6,389)		2,141
Foreign currency translation adjustments	64,499		(3,677)		10,563		(5,747)
Comprehensive income	$	114,451	$	55,654	$	157,011	$	212,842


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


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


	Nine Months Ended
(in thousands)	September 28, 2024		September 30, 2023
OPERATING ACTIVITIES
Net income	$	151,976	$	216,604
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	51,025		53,510
Amortization of intangibles	47,418		49,773

Deferred revenue	(1,764)		1,769

Impairment charges	933		4,742

Stock-based compensation	21,428		20,132
(Gain) loss on investments and other assets	(1,947)		922

Deferred income taxes	(16,346)		(689)
Other	690		7,829
Changes in operating assets and liabilities:
Trade receivables	(50,672)		(21,752)
Inventories	19,865		66,456
Accounts payable	5,460		(38,475)



Accrued liabilities and income taxes	(19,434)		(61,359)
Prepaid expenses and other assets	(1,633)		13,678
Net cash provided by operating activities	206,999		313,140
INVESTING ACTIVITIES
Acquisitions of businesses, net of cash acquired	—		(198,810)

Purchases of property, plant, and equipment	(50,065)		(63,166)
Net proceeds from sale of property, plant and equipment, and other	8,931		597
Net cash used in investing activities	(41,134)		(261,379)
FINANCING ACTIVITIES




Repayments of other debts	(2,037)		(2,027)
Payments of term loan	(3,750)		(5,625)

Net proceeds related to stock-based award activities	5,037		6,481
Repurchases of common stock	(40,862)		—

Cash dividends paid	(49,687)		(45,973)
Net cash used in financing activities	(91,299)		(47,144)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(396)		(7,965)
Increase (decrease) in cash, cash equivalents, and restricted cash	74,170		(3,348)
Cash, cash equivalents, and restricted cash at beginning of period	557,123		564,939
Cash, cash equivalents, and restricted cash at end of period	$	631,293	$	561,591
Supplementary Cash Flow Information
Reconciliation of cash and cash equivalents:
Cash and cash equivalents	$	629,670	$	560,056

Restricted cash included in other long-term assets	$	1,623	$	1,535
Cash paid during the period for interest	$	30,094	$	33,177

Capital expenditures, not yet paid	$	9,217	$	9,780


	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 30, 2023	$	262	$	1,012,325	$	(259,263)	$	(55,817)	$	1,782,662	$	312	$	2,480,481
Net income	—		—		—		—		48,452		—		48,452



Other comprehensive loss, net of tax	—		—		—		(30,291)		—		—		(30,291)
Stock-based compensation	—		3,617		—		—		—		—		3,617
Non-controlling interest	—		—		—		—		2		(2)		—
Withheld shares on restricted share units for withholding taxes	—		—		(4)		—		—		—		(4)
Stock options exercised	—		1,369		—		—		—		—		1,369
Repurchases of common stock	—		—		(16,131)		—		—		—		(16,131)
Cash dividends paid ($0.65 per share)	—		—		—		—		(16,200)		—		(16,200)
Balance at March 30, 2024	$	262	$	1,017,311	$	(275,398)	$	(86,108)	$	1,814,916	$	310	$	2,471,293
Net income	—		—		—		—		45,466		—		45,466



Other comprehensive loss, net of tax	—		—		—		(21,067)		—		—		(21,067)
Stock-based compensation	—		13,271		—		—		—		—		13,271
Non-controlling interest	—		—		—		—		(48)		48		—
Withheld shares on restricted share units for withholding taxes	—		—		(4,754)		—		—		—		(4,754)
Stock options exercised	—		2,392		—		—		—		—		2,392
Repurchase of common stock, with excise tax					(24,984)								(24,984)


Cash dividends paid ($0.65 per share)	—		—		—		—		(16,130)		—		(16,130)
Balance at June 29, 2024	$	262	$	1,032,974	$	(305,136)	$	(107,175)	$	1,844,204	$	358	$	2,465,487
Net income	—		—		—		—		58,058		—		58,058



Other comprehensive gain, net of tax	—		—		—		56,393		—		—		56,393
Stock-based compensation	—		4,540		—		—		—		—		4,540
Non-controlling interest									(82)		(38)		(120)
Withheld shares on restricted share units for withholding taxes	—		—		(188)		—		—		—		(188)
Stock options exercised	—		6,222										6,222
Excise tax adjustment on stock options exercised	—		—		65		—		—		—		65

Cash dividends paid ($0.70 per share)	—		—		—		—		(17,357)		—		(17,357)
Balance at September 28, 2024	$	262	$	1,043,736	$	(305,259)	$	(50,782)	$	1,884,823	$	320	$	2,573,100


	Three Months Ended September 28, 2024								Nine Months Ended September 28, 2024
(in thousands)	Electronics Segment		Transportation Segment		Industrial Segment		Total		Electronics Segment		Transportation Segment		Industrial Segment		Total
Electronics – Semiconductor	$	151,954	$	—	$	—	$	151,954	$	469,389	$	—	$	—	$	469,389
Electronics – Passive Products and Sensors	152,234		—		—		152,234		431,543		—		—		431,543
Commercial Vehicle Products	—		82,077		—		82,077		—		242,350		—		242,350
Passenger Car Products	—		71,299		—		71,299		—		210,597		—		210,597
Automotive Sensors	—		18,005		—		18,005		—		57,764		—		57,764
Industrial Products	—		—		91,821		91,821		—		—		249,620		249,620
Total	$	304,188	$	171,381	$	91,821	$	567,390	$	900,932	$	510,711	$	249,620	$	1,661,263


	Three Months Ended September 30, 2023								Nine Months Ended September 30, 2023
(in thousands)	Electronics Segment		Transportation Segment		Industrial Segment		Total		Electronics Segment		Transportation Segment		Industrial Segment		Total
Electronics – Semiconductor	$	191,523	$	—	$	—	$	191,523	$	598,813	$	—	$	—	$	598,813
Electronics – Passive Products and Sensors	152,410		—		—		152,410		453,860		—		—		453,860
Commercial Vehicle Products	—		81,290		—		81,290		—		248,765		—		248,765
Passenger Car Products	—		72,524		—		72,524		—		200,104		—		200,104
Automotive Sensors	—		23,205		—		23,205		—		66,839		—		66,839
Industrial Products	—		—		86,119		86,119						260,469		260,469
Total	$	343,933	$	177,019	$	86,119	$	607,071	$	1,052,673	$	515,708	$	260,469	$	1,828,850


(in thousands)	September 28, 2024		December 30, 2023
Cash and cash equivalents	$	629,670	$	555,513

Restricted cash included in other long-term assets	1,623		1,610
Total cash, cash equivalents, and restricted cash	$	631,293	$	557,123


(in thousands)	Purchase Price Allocation
Total purchase consideration:
Cash, net of cash acquired	$	158,260
Allocation of consideration to assets acquired and liabilities assumed:
Trade receivables	3,359
Inventories	3,678
Other current assets	718
Property, plant, and equipment	1,328
Intangible assets	68,000
Goodwill	93,937
Other long-term assets	573
Current liabilities	(4,335)

Other long-term liabilities	(8,998)
	$	158,260


(in thousands, except per share amounts)	Three Months Ended September 30, 2023		Nine Months Ended September 30, 2023
Net sales	$	607,071	$	1,830,736
Income before income taxes	75,071		271,165
Net income	57,591		217,930
Net income per share — basic	2.31		8.77
Net income per share — diluted	2.29		8.68


(in thousands)	Electronics		Transportation		Industrial		Total
Net goodwill as of December 30, 2023
Gross goodwill as of December 30, 2023	$	936,505	$	237,115	$	179,117	$	1,352,737
Accumulated impairment losses as of December 30, 2023	—		(34,004)		(8,735)		(42,739)
Total	936,505		203,111		170,382		1,309,998
Changes during 2024:


Foreign currency translation adjustments	3,581		1,881		2,288		7,750
Net goodwill as of September 28, 2024
Gross goodwill as of September 28, 2024	940,086		239,777		181,237		1,361,100
Accumulated impairment losses as of September 28, 2024	—		(34,785)		(8,567)		(43,352)
Total	$	940,086	$	204,992	$	172,670	$	1,317,748


(in thousands)	September 28, 2024		December 30, 2023
Raw materials	$	202,119	$	201,984
Work in process	137,713		137,688
Finished goods	178,570		195,886
Inventory reserves	(64,621)		(60,951)
Total	$	453,781	$	474,607


(in thousands)	September 28, 2024		December 30, 2023
Land and land improvements	$	18,442	$	22,212
Building and building improvements	200,856		202,764
Machinery and equipment	896,045		859,060

Accumulated depreciation	(633,751)		(590,883)
Total	$	481,592	$	493,153


	As of September 28, 2024
(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Land use rights	$	16,731	$	2,989	$	13,742
Patents, licenses, and software	277,011		181,471		95,540
Distribution network	42,106		42,106		—
Customer relationships, trademarks, and tradenames	691,519		239,807		451,712

Total	$	1,027,367	$	466,373	$	560,994


	December 30, 2023
(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Land use rights	$	17,621	$	2,786	$	14,835
Patents, licenses, and software	275,337		163,799		111,538
Distribution network	43,210		43,210		—
Customer relationships, trademarks, and tradenames	689,244		209,481		479,763
Total	$	1,025,412	$	419,276	$	606,136


(in thousands)	Amount
Remainder of 2024	$	16,000
2025	63,795
2026	52,706
2027	50,597
2028	49,970
2029 and thereafter	327,926
Total	$	560,994


(in thousands)	Condensed Consolidated Balance Sheet Classification	September 28, 2024		December 30, 2023
Derivatives designated as hedging instruments
Interest rate swap agreement:
Designated as cash flow hedge	Prepaid expenses and other current assets	$	1,792	$	3,712
	Other long-term assets	$	713	$	2,140
Zero cost collar agreement:
Designated as cash flow hedge	Prepaid expenses and other current assets	$	60	$	—
	Accrued liabilities	$	4,307	$	—
	Other long-term liabilities	$	1	$	—


	Fair Value Measurements Using
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Cash equivalents	$	552,735	$	—	$	—	$	552,735
Investments in equity securities	12,888		—		—		12,888
Mutual funds	23,479		—		—		23,479
Total	$	589,102	$	—	$	—	$	589,102


	For the Three Months Ended				For the Nine Months Ended
(in thousands)	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Components of net periodic benefit cost:
Service cost	$	753	$	700	$	2,318	$	2,087
Interest cost	961		961		2,931		2,850
Expected return on plan assets	(527)		(470)		(1,555)		(1,409)
Amortization of prior service and net actuarial loss	47		12		139		34
Net periodic benefit cost	$	1,234	$	1,203	$	3,833	$	3,562


(in thousands)	Three Months Ended September 28, 2024						Three Months Ended September 30, 2023
	Pre-tax		Tax		Net of Tax		Pre-tax		Tax		Net of Tax
Defined benefit pension plan and other adjustments	$	205	$	(14)	$	191	$	(3)	$	—	$	(3)
Cash flow hedges	(9,860)		1,563		(8,297)		2,034		(488)		1,546
Foreign currency translation adjustments (a)	66,331		(1,832)		64,499		(4,301)		624		(3,677)
Total change in other comprehensive income (loss)	$	56,676	$	(283)	$	56,393	$	(2,270)	$	136	$	(2,134)

(in thousands)	Nine Months Ended September 28, 2024						Nine Months Ended September 30, 2023
	Pre-tax		Tax		Net of Tax		Pre-tax		Tax		Net of Tax
Defined benefit pension plan and other adjustments	$	901	$	(40)	$	861	$	(125)	$	(31)	$	(156)
Cash flow hedges	(7,349)		960		(6,389)		2,817		(676)		2,141
Foreign currency translation adjustments (a)	11,619		(1,056)		10,563		(6,098)		351		(5,747)
Total change in other comprehensive income (loss)	$	5,171	$	(136)	$	5,035	$	(3,406)	$	(356)	$	(3,762)


	Three Months Ended September 28, 2024						Three Months Ended September 30, 2023
(in millions)	Powersem		EB Tech		ATEC		Powersem		EB Tech		ATEC
Sales to related party	$	0.3	$	—	$	—	$	0.5	$	—	$	—
Purchase material/service from related party	0.6		0.2		0.6		1.2		0.1		2.0

	Nine Months Ended September 28, 2024						Nine Months Ended September 30, 2023
(in millions)	Powersem		EB-Tech		ATEC		Powersem		EB Tech		ATEC
Sales to related party	$	1.2	$	—	$	—	$	1.7	$	—	$	—
Purchase material/service from related party	3.0		0.6		3.5		3.3		0.3		7.6

	September 28, 2024						December 30, 2023
(in millions)	Powersem		EB Tech		ATEC		Powersem		EB Tech		ATEC
Accounts receivable balance	$	0.1	$	—	$	—	$	—	$	—	$	—
Accounts payable balance	$	0.5	$	—	$	0.1	$	0.5	$	—	$	1.0


	Third Quarter								First Nine Months
(in thousands)	2024		2023		Change		% Change		2024		2023		Change		% Change
Net sales	$	567,390	$	607,071	$	(39,681)	(6.5)	%	$	1,661,263	$	1,828,850	$	(167,587)	(9.2)	%
Cost of sales	351,498		380,200		(28,702)		(7.5)	%	1,050,559		1,122,190		(71,631)		(6.4)	%
Gross profit	215,892		226,871		(10,979)		(4.8)	%	610,704		706,660		(95,956)		(13.6)	%
Operating expenses	128,071		133,226		(5,155)		(3.9)	%	402,425		410,321		(7,896)		(1.9)	%
Operating income	87,821		93,645		(5,824)		(6.2)	%	208,279		296,339		(88,060)		(29.7)	%
Income before income taxes	77,716		75,295		2,421		3.2	%	194,564		269,649		(75,085)		(27.8)	%
Income taxes	19,658		17,507		2,151		12.3	%	42,588		53,045		(10,457)		(19.7)	%
Net income	$	58,058	$	57,788	$	270	0.5	%	$	151,976	$	216,604	$	(64,628)	(29.8)	%


Exhibit						Description

31.1*						Certification of David W. Heinzmann, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2*						Certification of Meenal A. Sethna, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1**						Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101						The following financial information from LITTELFUSE, Inc.'s Quarterly Report on Form 10-Q for the quarter ended September 28, 2024 formatted in Inline XBRL (Extensible Business Reporting Language) includes: (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Net Income, (iii) the Condensed Consolidated Statements of Comprehensive Income, (iv) the Condensed Consolidated Statements of Stockholders' Equity, (v) the Condensed Consolidated Statements of Cash Flows, and (vi) Notes to the Condensed Consolidated Financial Statements.

104						The cover page from this Quarterly Report on Form 10-Q for the quarter ended September 28, 2024, formatted in Inline XBRL.


*						Filed herewith.
**						Furnished herewith.


	Littelfuse, Inc.

	By:	/s/ Meenal A. Sethna
		Meenal A. Sethna
	Executive Vice President and Chief Financial Officer

Date: October 30, 2024	By:	/s/ Jeffrey G. Gorski
		Jeffrey G. Gorski
	Senior Vice President and Chief Accounting Officer


Dated: October 30, 2024
			/s/ David W. Heinzmann
			David W. Heinzmann President and Chief Executive Officer


Dated: October 30, 2024
			/s/ Meenal A. Sethna
			Meenal A. Sethna Executive Vice President and Chief Financial Officer


/s/ David W. Heinzmann						/s/ Meenal A. Sethna
David W. Heinzmann						Meenal A. Sethna
President and Chief Executive Officer						Executive Vice President and Chief Financial Officer



Dated: October 30, 2024						Dated: October 30, 2024