Financial Analysis

"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 Companys Condensed Consolidated Financial Statements from the date of the acquisition. Basler Electric On December 11, 2025, the Company completed the acquisition of Basler Electric Company (""Basler""). Basler is a leading designer and manufacturer of innovative electrical control and protection solutions for high-growth industrial markets including grid and utility infrastructure, power generation and data center. At the time of acquisition, Basler had annualized sales of approximately $130 million. The business is reported within the Companys Industrial segment. The purchase price for Basler was $361.7 million and is subject to a working capital adjustment. The Company financed the transaction with cash on hand. The total purchase consideration of $353.1 million, net of cash acquired, has been allocated, on a preliminary basis, based on estimated fair values of assets acquired and liabilities assumed. The purchase price allocation is preliminary because the determination of the fair value of the net assets acquired, including the third-party valuation of acquired tangible assets, is not yet finalized. Thus, the preliminary measurements of fair value set forth in the table …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"Commitments and Contingencies Off-Balance Sheet Arrangements As of June 27, 2026, the Company did not have any off-balance sheet arrangements, as defined under SEC rules. Specifically, the Company was not liable for guarantees of indebtedness owed by third parties, the Company was not directly liable for the debt of any unconsolidated entity and the Company did not have any retained or contingent interest in assets. The Company does not participate in transactions that generate relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities. Product Warranty Liabilities The Company's policy is to accrue for warranty claims when a loss is both probable and estimable. Liabilities for warranty claims have historically not been material and in limited instances, customers may make claims for costs they incurred or other damages related to a claim. The Company carries insurance for potential product liability claims at coverage levels based on the Company's prior claims experience. This coverage is subject to deductibles, and various terms and conditions. The Company cannot assure that the level of coverage will be sufficient to cover every possible claim that can arise in its businesses, now or in the future, or that such coverage always will be available should the Company, now or in the future, wish to extend, increase or otherwise adjust its insurance. The Company has been notified by o …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Debt The carrying amounts of debt at June 27, 2026 and December 27, 2025 were as follows: (in thousands) June 27, 2026 December 27, 2025 Revolving credit facility $ 200,000 $ 100,000 Term loan 266,250 Euro Senior Notes, Series B due 2028 107,982 111,977 U.S. Senior Notes, Series B due 2027 100,000 100,000 U.S. Senior Notes, Series B due 2030 125,000 125,000 U.S. Senior Notes, due 2032 100,000 100,000 Other 1,233 Unamortized debt issuance costs (3,322) (1,833) Total debt 629,660 802,627 Less: Current maturities (100,000) (96,233) Total long-term debt $ 529,660 $ 706,394 Revolving Credit Facility and Term Loan On March 12, 2026, the Company entered into an Amended and Restated Credit Agreement (the ""Credit Agreement"") to amend and restate and effect certain changes to its existing credit agreement, dated as of June 30, 2022 (the Existing Credit Agreement), including, among other changes: (i) paying off and eliminating the $300 million unsecured term loan credit facility; (ii) increasing the size of the revolving credit facility from $700 million to $800 million; and (iii) extending the maturity date to March 12, 2031 (the Maturity Date). As a result of entering into the Credit Agreement, the Company paid off $62.5 million of the term loan and replaced $200 million of the term loan under the Existing Credit Agreement with $200 million borrowing under the revolving credit facility under the Credit Agreement. Pursuant to the Credit Agreement, the Company may, from time to time, …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables disaggregate the Companys revenue by primary business units for the three and six months ended June 27, 2026 and June 28, 2025: Three Months Ended June 27, 2026 Six Months Ended June 27, 2026 (in thousands) Electronics Segment Transportation Segment Industrial Segment Total Electronics Segment Transportation Segment Industrial Segment Total Electronics Passive Products and Sensors $ 213,379 $ $ $ 213,379 $ 400,502 $ $ $ 400,502 Electronics Semiconductor 193,041 193,041 368,693 368,693 Commercial Vehicle Products 90,617 90,617 169,498 169,498 Passenger Car Products 76,500 76,500 152,740 152,740 Automotive Sensors 15,294 15,294 30,554 30,554 Industrial Products 149,950 149,950 $ 273,763 273,763 Total $ 406,420 $ 182,411 $ 149,950 $ 738,781 $ 769,195 $ 352,792 $ 273,763 $ 1,395,750 Three Months Ended June 28, 2025 Six Months Ended June 28, 2025 (in thousands) Electronics Segment Transportation Segment Industrial Segment Total Electronics Segment Transportation Segment Industrial Segment Total Electronics Passive Products and Sensors $ 168,699 $ $ $ 168,699 $ 317,659 $ $ $ 317,659 Electronics Semiconductor 166,967 166,967 325,256 325,256 Commercial Vehicle Products 86,260 86,260 164,029 164,029 Passenger Car Products 76,151 76,151 145,186 145,186 Automotive Sensors 16,989 16,989 32,047 32,047 Industrial Products 98,347 98,347 183,543 183,543 Total $ 335,666 $ 179,400 $ 98,347 $ 613,413 $ 642,915 $ 341,262 $ 183,543 $ 1,167,720 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"Fair Value of Assets and Liabilities For assets and liabilities measured at fair value on a recurring and nonrecurring basis, a three-level hierarchy of measurements based upon observable and unobservable inputs is used to arrive at fair value. Observable inputs are developed based on market data obtained from independent sources, while unobservable inputs reflect the Companys assumptions about valuation based on the best information available in the circumstances. Depending on the inputs, the Company classifies each fair value measurement as follows: Level 1 Valuations based on unadjusted quoted prices for identical assets or liabilities in active markets; Level 2 Valuations based upon quoted prices for similar instruments, prices for identical or similar instruments in markets that are not active, or model-derived valuations, all of whose significant inputs are observable or can be corroborated by observable market data; Level 3 Valuations based upon one or more significant unobservable inputs. There were no transfers in or out of Level 1, Level 2 or Level 3 during the period. Following is a description of the valuation methodologies used for instruments measured at fair value and their classification in the valuation hierarchy. Cash Equivalents Cash equivalents primarily consist of money market funds, certificates of deposit, and short-term time deposits, which are held with institutions with sound credit ratings and are highly liquid. The Company classified cash equivale …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Other Intangible Assets The amounts for goodwill and changes in the carrying value by segment for the six months ended June 27, 2026 were as follows: (in thousands) Electronics Transportation Industrial Total Net goodwill as of December 27, 2025 Gross goodwill as of December 27, 2025 $ 1,027,462 $ 242,192 $ 338,739 $ 1,608,393 Accumulated impairment losses as of December 27, 2025 (303,133) (44,793) (49,056) (396,982) Total 724,329 197,399 289,683 1,211,411 Changes during 2026: Adjustments (a) 8,634 8,634 Foreign currency translation adjustments (12,651) (1,275) (2,258) (16,184) Net goodwill as of June 27, 2026 Gross goodwill as of June 27, 2026 1,008,254 240,467 343,356 1,592,077 Accumulated impairment losses as of June 27, 2026 (296,576) (44,343) (47,297) (388,216) Total $ 711,678 $ 196,124 $ 296,059 $ 1,203,861 (a) The adjustments were related to the acquisition of Basler. The components of intangible assets as of June 27, 2026 and December 27, 2025 were as follows: As of June 27, 2026 (in thousands) Gross Carrying Value Accumulated Amortization Net Book Value Land use rights $ 17,078 $ 3,969 $ 13,109 Patents, licenses, and software 286,518 216,236 70,282 Distribution network 42,139 42,139 Customer relationships, trademarks, and tradenames 780,730 310,610 470,120 Total $ 1,126,465 $ 572,954 $ 553,511 As of December 27, 2025 (in thousands) Gross Carrying Value Accumulated Amortization Net Book Value Land use rights $ 16,661 $ 3,613 $ 13,048 Patents, licenses, an …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes The effective tax rate for the three and six months ended June 27, 2026 was 23.6% and 23.0%, respectively, compared to the effective tax rate for the three and six months ended June 28, 2025 of 26.7% and 27.0%, respectively. The effective tax rate for 2026 was lower than the effective tax rate for the comparable 2025 periods primarily due to lapses in the statute of limitations for previously unrecognized tax benefits and excess tax benefits for share based compensation recognized in 2026, as well as foreign exchange losses in non-U.S. jurisdictions with no related tax benefit recognized in 2025. The effective tax rate for three and six months ended June 27, 2026 was higher than the statutory tax rate primarily due to losses in non-U.S. jurisdictions with no related tax benefit, partially offset by lapses in the statute of limitations for previously unrecognized tax benefits as well as excess tax benefits for share based compensation. The effective tax rate for the three and six months ended June 28, 2025 was higher than the statutory tax rate primarily due to foreign exchange losses and losses in non-U.S. jurisdictions with no related tax benefit.

IncomeTaxDisclosureTextBlock

"Recently Adopted Accounting Standards In September 2025, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Updates (""ASU"") No. 2025-05, ""Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets."" The amendments in this update provide entities with a practical expedient when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606. In developing reasonable and supportable forecasts as part of estimating expected credit losses, the practical expedient allows entities to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset. The guidance is effective for fiscal years beginning after December 15, 2025 with early adoption permitted. The adoption of ASU 2025-05 did not have a material impact on the Company's Condensed Consolidated Financial Statements. Recently Issued Accounting Standards In September 2025, the FASB issued ASU No. 2025-06, ""Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software."" The amendments in this update require the entity to start capitalizing software costs when both of the following criteria are met: (1) management has authorized and committed to funding the software project, and (2) it is probable that the project will be com …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Benefit Plans The Company has Company-sponsored and mandatory defined benefit pension plans covering employees in the United Kingdom (""U.K.""), Germany, the Philippines, China, Japan, Mexico, Italy, and France. The amount of the retirement benefits provided under the plans is generally based on years of service and final average pay. The Company recognizes interest cost, expected return on plan assets, and amortization of prior service, net within Other income, net in the Condensed Consolidated Statements of Operations. The components of net periodic benefit cost for the three and six months ended June 27, 2026 and June 28, 2025 were as follows: For the Three Months Ended For the Six Months Ended (in thousands) June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Components of net periodic benefit cost: Service cost $ 939 $ 758 $ 1,884 $ 1,485 Interest cost 1,221 1,003 2,445 1,957 Expected return on plan assets (473) (481) (954) (940) Amortization of prior service and net actuarial loss 116 102 232 171 Net periodic benefit cost $ 1,803 $ 1,382 $ 3,607 $ 2,673 The Company expects to make approximately $1.5 million of contributions to the plans and pay $2.3 million of benefits directly in 2026. On October 4, 2024, the Company entered into a definitive agreement to purchase a group annuity contract, under which an insurance company will be required to pay pension payments to the Companys United Kingdom pension plan to match required pension payments until a later buyout, at …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Related Party Transactions As a result of the Companys acquisition of IXYS, the Company has equity ownership in various investments that are accounted for under the equity method. The following is a description of the investments and related party transactions. Powersem GmbH: The Company owns 45% of the outstanding equity of Powersem GmbH (Powersem), a module manufacturer based in Germany. EB Tech Co., Ltd.: The Company owns approximately 15% of the outstanding equity of EB Tech Co., Ltd. (EB Tech), a company with expertise in radiation technology based in South Korea. Automated Technology (Phil), Inc. : The Company owns approximately 24% of the outstanding common shares of Automated Technology (Phil), Inc. (ATEC), a supplier located in the Philippines that provides assembly and test services. Three Months Ended June 27, 2026 Three Months Ended June 28, 2025 (in millions) Powersem EB Tech ATEC Powersem EB Tech ATEC Sales to related party $ 0.4 $ $ $ 0.3 $ $ Purchase of material/service from related party 0.4 0.1 2.8 0.6 0.5 1.4 Six Months Ended June 27, 2026 Six Months Ended June 28, 2025 (in millions) Powersem EB Tech ATEC Powersem EB Tech ATEC Sales to related party $ 0.7 $ $ $ 0.6 $ $ Purchase material/service from related party 0.9 0.2 5.0 1.1 0.7 3.3 June 27, 2026 December 27, 2025 (in millions) Powersem EB Tech ATEC Powersem EB Tech ATEC Accounts receivable balance $ 0.1 $ $ $ $ $ Accounts payable balance 0.2 0.1 1.2 0.1 0.1 2.1 …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

"Segment Information The Company and its subsidiaries design, manufacture and sell components, modules and subassemblies to empower the long-term structural themes of sustainability, connectivity and safety. The Company aggregated its operating segments into the reportable segments: Electronics, Transportation, and Industrial. An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, and about which separate financial information is regularly evaluated by the Chief Operating Decision Maker (CODM) in deciding how to allocate resources. The CODM is the Companys President and Chief Executive Officer (CEO). The CODM allocates resources to and assesses the performance of each operating segment using information about its revenue and operating income (loss) before interest and taxes, but does not evaluate the operating segments using discrete balance sheet information and as such, segment asset information is not disclosed. The CODMs key decisions involve the allocation of resources, such as acquisitions, divestitures, investments, capital expenditures, significant customer contracts, and other key management resources, and assessment of performance, such as executive officer hiring, promotion, and compensation. The CODM uses operating income as the key metric when establishing targets in the annual budget and in evaluating the allocation of resources to each segment. The CODM regularly re …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Summary of Significant Accounting Policies and Other Information Nature of Operations Founded in 1927, Littelfuse, Inc. (""Littelfuse"" or the ""Company"") is a diversified, industrial technology manufacturing company empowering a sustainable, connected, and safer world. Across more than 20 countries, and with approximate l y 18,000 g lob al associates, the Company partners with customers to design and deliver innovative, reliable solutions. Serving over 100,000 end customers, the Companys products are found in a variety of industrial, transportation and electronics end markets everywhere, every day. Basis of Presentation The Companys 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 operations and comprehensive income, statements of cash flows, and statements 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 Companys Annual Report on Form 10-K for the fiscal year ended December 27, …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing