KULICKE AND SOFFA INDUSTRIES, INC. Forward-Looking Statements In addition to historical information, this filing contains statements relating to future events or our future results. These statements are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and are subject to the safe harbor provisions created by statute. Such forward-looking statements include, but are not limited to, statements with respect to our future revenue, increasing, continuing or strengthening, or decreasing or weakening, demand for our products, replacement demand, our research and development efforts, our ability to identify and realize new growth opportunities, our ability to control costs and our operational flexibility as a result of (among other factors): •our expectations regarding the potential impacts on our business of the COVID-19 pandemic, including the economic and public health effects, and of governmental and other responses to these impacts; •projected growth rates in the overall semiconductor industry, the semiconductor assembly equipment market, and the market for semiconductor packaging materials; and •projected demand for ball bonder, wedge bonder, advanced packaging and electronic assembly equipment and for tools, spare parts and services. Generally, words such as "may," "will," "should," "could," "anticipate," "expect," "intend," "estimate," "plan," "continue," "goal" and "believe," or the negative of or other variations on these and other similar expressions identify forward-looking statements. These forward-looking statements are made only as of the date of this filing. We do not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements are based on current expectations and involve risks and uncertainties. Our future results could differ significantly from those expressed or implied by our forward-looking statements. These risks and uncertainties include, without limitation, those described below and under the heading "Risk Factors" in this report and in our Annual Report on Form 10-K for the fiscal year endedOctober 3, 2020 (the "Annual Report") and our other reports filed from time to time with theSecurities and Exchange Commission . This discussion should be read in conjunction with the Consolidated Condensed Financial Statements and Notes included in this report, as well as our audited financial statements included in the Annual Report. We operate in a rapidly changing and competitive environment. New risks emerge from time to time and it is not possible for us to predict all risks that may affect us. Given those risks and uncertainties, investors should not place undue reliance on forward-looking statements as predictions of actual results. OVERVIEWKulicke and Soffa Industries, Inc. ("we," the "Company" or "K&S") is a leading provider of semiconductor, LED and electronic assembly solutions serving the global automotive, consumer, communications, computing and industrial markets. Founded in 1951, we pride ourselves on establishing foundations for technological advancement-creating, pioneering interconnect solutions that enable performance improvements, power efficiency, form-factor reductions and assembly excellence of current and next-generation semiconductor devices. Leveraging decades of development and process technology expertise, our expanding portfolio provides equipment solutions, aftermarket products and services supporting a comprehensive set of interconnect technologies including wire bonding, advanced packaging, lithography, and electronics assembly. Dedicated to empowering technological discovery, always, we collaborate with customers and technology partners to push the boundaries of possibility, enabling a smarter future. We design, manufacture and sell capital equipment and tools used to assemble semiconductor devices, including integrated circuits ("ICs"), high and low powered discrete devices, light-emitting diodes ("LEDs"), and power modules. In addition, we have a portfolio of equipment that is used to assemble components onto electronic circuit boards. We also service, maintain, repair and upgrade our equipment and sell consumable aftermarket tools for our and our peer companies' equipment. Our customers primarily consist of semiconductor device manufacturers, integrated device manufacturers ("IDMs"), outsourced semiconductor assembly and test providers ("OSATs"), other electronics manufacturers and automotive electronics suppliers. Our goal is to be the technology leader and the most competitive supplier in terms of cost and performance in each of our major product lines. Accordingly, we invest in research and engineering projects intended to enhance our position as a leader in 25 -------------------------------------------------------------------------------- Table of Contents semiconductor assembly technology. We also remain focused on our cost structure through continuous improvement and optimization of operations. Cost reduction efforts are an important part of our normal ongoing operations and are intended to generate savings without compromising overall product quality and service. The Company operates two reportable segments consisting of: Capital Equipment and Aftermarket Products and Services ("APS"). The Company has aggregated twelve operating segments as ofJanuary 2, 2021 , with six operating segments within the Capital Equipment reportable segment and six operating segments within the APS reportable segment. Our Capital Equipment segment engages in the manufacture and sale of ball bonders, wafer level bonders, wedge bonders, advanced packaging and electronic assembly solutions to semiconductor device manufacturers, IDMs, OSATs, other electronics manufacturers and automotive electronics suppliers. Our APS segment engages in the manufacture and sale of a variety of tools for a broad range of semiconductor packaging applications, spare parts, equipment repair, maintenance and servicing, training services, refurbishment and upgrades for our equipment. Business Environment The semiconductor business environment is highly volatile and is driven by internal dynamics, both cyclical and seasonal, in addition to macroeconomic forces. Over the long term, semiconductor consumption has historically grown, and is forecast to continue to grow. This growth is driven, in part, by regular advances in device performance and by price declines that result from improvements in manufacturing technology. In order to exploit these trends, semiconductor manufacturers, both IDMs and OSATs, periodically invest aggressively in latest generation capital equipment. This buying pattern often leads to periods of excess supply and reduced capital spending-the so-called semiconductor cycle. Within this broad semiconductor cycle there are also, generally weaker, seasonal effects that are specifically tied to annual, end-consumer purchasing patterns. Typically, semiconductor manufacturers prepare for heightened demand by adding or replacing equipment capacity by the end of the September quarter. Occasionally, this results in subsequent reductions in the December quarter. This annual seasonality can be overshadowed by effects of the broader semiconductor cycle. Macroeconomic factors also affect the industry, primarily through their effect on business and consumer demand for electronic devices, as well as other products that have significant electronic content such as automobiles, white goods, and telecommunication equipment. There can be no assurances regarding levels of demand for our products and we believe historic industry-wide volatility will persist. In theAsia/Pacific region, our customer base has also become more geographically concentrated as a result of economic and industry conditions. Approximately 97.5% and 91.7% of our net revenue for the three months endedJanuary 2, 2021 andDecember 28, 2019 , respectively, was for shipments to customer locations outside of theU.S. , primarily in theAsia/Pacific region. Approximately 48.6% and 50.3% of our net revenue for the three months endedJanuary 2, 2021 andDecember 28, 2019 , respectively, was for shipments to customers located inChina , which is subject to risks and uncertainties related to the respective policies of the governments ofChina and theU.S. TheU.S. and several other countries have levied tariffs on certain goods and have introduced other trade restrictions, which, together with the impact of the COVID-19 pandemic discussed below, has resulted in substantial uncertainties in the semiconductor, LED, memory and automotive market with a resulting softening demand. While the Company anticipates long-term growth in semiconductor consumption, the adverse impacts on demand, which began in the fourth quarter of fiscal 2018, may continue through fiscal 2021 and beyond. Our Capital Equipment segment is primarily affected by the industry's internal cyclical and seasonal dynamics in addition to broader macroeconomic factors that can positively or negatively affect our financial performance. The sales mix of IDM and OSAT customers in any period also impacts financial performance, as changes in this mix can affect our products' average selling prices and gross margins due to differences in volume purchases and machine configurations required by each customer type. Our APS segment has historically been less volatile than our Capital Equipment segment. The APS sales are more directly tied to semiconductor unit consumption rather than capacity requirements and production capability improvements. We continue to position our business to leverage our research and development leadership and innovation and to focus our efforts on mitigating volatility, improving profitability and ensuring longer-term growth. We remain focused on operational excellence, expanding our product offerings and managing our business efficiently throughout the business cycles. Our visibility into future demand is generally limited, forecasting is difficult, and we generally experience typical industry seasonality. To limit potential adverse cyclical, seasonal and macroeconomic effects on our financial position, we have continued our efforts to maintain a strong balance sheet. As ofJanuary 2, 2021 , our total cash, cash equivalents and short-term investments were 26 -------------------------------------------------------------------------------- Table of Contents$576.7 million , a$46.5 million increase from the prior fiscal year end. We believe our strong cash position will allow us to continue to invest in product development and pursue non-organic opportunities. Key Events in Fiscal 2021 COVID-19 Pandemic The COVID-19 pandemic has significantly impacted the global economy, disrupted global supply chains, created volatility in equity market valuations, created significant volatility and disruption in financial markets, and significantly increased unemployment levels. In addition, the pandemic has resulted in temporary closures and failures of many businesses and the institution of social distancing and sheltering-in-place requirements in many jurisdictions. As these measures were relaxed, in certain jurisdictions there has been a resurgence of illnesses, which has led to more severe restrictions. In response to the pandemic, we have temporarily closed certain offices inthe United States ,Europe andAsia as well as executed our Business Continuity Plan ("BCP"), which measures have disrupted how we operate our business. While we are currently operating at nearly full capacity in all of our manufacturing locations, work-from-home practices were instituted across every office worldwide, which have impacted our non-manufacturing productivity, including our research & development. At this point, our BCP has not included significant headcount reductions or changes in our overall liquidity position. As certain countries relaxed the measures over the past few months, we have restarted certain activities in accordance with local guidelines. We have not experienced significant delays in customer deliveries, but our supply chain is strained in some cases as the availability of materials, logistics and freight options are challenging in many jurisdictions. Demand for our products was consistent with or exceeded our expectations for the first quarter of fiscal 2021. We believe semiconductor industry macroeconomics have not changed and we anticipate the industry's long-term growth projections will normalize, but the sector could continue to see short-term volatility and potential disruption. Various countries have announced measures, including government grants, tax changes and tax credits, among other types of relief, in response to the pandemic. For fiscal 2021, we have received a$1.3 million COVID-19-related grant from theSingapore government as well as other measures including rental rebates and social insurance exemption, which are not material to our operating results. Based on our current evaluation, the pandemic has not had a material impact on our financial condition and operating results in fiscal 2021 to date. We believe that our existing cash, cash equivalents, short-term investments, existing Facility Agreements, and anticipated cash flows from operations will be sufficient to meet our liquidity and capital requirements, notwithstanding the COVID-19 pandemic, for at least the next twelve months from the date of filing. However, as this is a highly dynamic situation, and it is still developing rapidly, including as new strains of COVID-19 emerge, there is uncertainty surrounding our business, and our near- and long-term liquidity, financial condition and operating results could deteriorate. For other information, please see the Annual Report. 27 -------------------------------------------------------------------------------- Table of Contents RESULTS OF OPERATIONS The following tables reflect our income from operations for the three months endedJanuary 2, 2021 andDecember 28, 2019 : Three months ended (dollar amounts in thousands) January 2, 2021 December 28, 2019 $ Change % Change Net revenue$ 267,857 $ 144,297$ 123,560 85.6 % Cost of sales 146,371 73,933 72,438 98.0 % Gross profit 121,486 70,364 51,122 72.7 % Selling, general and administrative 35,900 28,658 7,242 25.3 % Research and development 31,544 28,292 3,252 11.5 % Operating expenses 67,444 56,950 10,494 18.4 % Income from operations $ 54,042 $ 13,414$ 40,628 302.9 % Net Revenue Our net revenues for the three months endedJanuary 2, 2021 increased as compared to our net revenues for the three months endedDecember 28, 2019 . The increase in net revenue is primarily due to higher volume in both Capital Equipment and APS. The following tables reflect net revenue by business segment for the three months endedJanuary 2, 2021 andDecember 28, 2019 : Three months ended (dollar amounts in thousands) January 2, 2021 December 28, 2019 $ Change % Change % of total net % of total net Net Revenue revenue Net Revenue revenue Capital Equipment$ 223,089 83.3 %$ 102,324 70.9 %$ 120,765 118.0 % APS 44,768 16.7 % 41,973 29.1 % 2,795 6.7 % Total net revenue$ 267,857 100.0 %$ 144,297 100.0 %$ 123,560 85.6 % Capital Equipment For the three months endedJanuary 2, 2021 , the higher Capital Equipment net revenue as compared to the prior year period was primarily driven by growing demand in the general semiconductor end market for consumer applications and telecommunication infrastructure renewal for 5G buildout and in the LED end market for both the adoption of the advanced LED display and sequential improvements for general lighting LED. This was partially offset by unfavorable price variance due to less favorable customer mix. APS For the three months endedJanuary 2, 2021 , the higher APS net revenue as compared to the prior year period was primarily due to higher volume in spares and services. This was partially offset by lower volume in the wire bonding tools business. Gross Profit Margin
The following tables reflect gross profit margin as a percentage of net revenue
by reportable segments for the three months ended
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Three months ended Basis Point
January 2, 2021 December 28, 2019 Change
Capital Equipment 43.0 % 45.2 % (220)
APS 57.0 % 57.4 % (40)
Total gross profit margin 45.4 % 48.8 % (340)
Capital Equipment
For the three months ended January 2, 2021 , the lower Capital Equipment gross
profit margin as compared to the prior year period was primarily driven by less
favorable product mix.
APS
For the three months ended January 2, 2021 , the APS gross profit margin was
generally consistent with the prior year period.
Income from Operations
For the three months ended January 2, 2021 , the higher income from operations as
compared to the prior year period was primarily due to higher contribution from
Capital Equipment as a result of increased Capital Equipment revenue, as
discussed above.
The following tables reflect income from operations by business segment for the
three months ended January 2, 2021 and December 28, 2019 :
Three months ended
(dollar amounts in thousands)
$ Change % Change Capital Equipment$ 44,895 $ 2,708$ 42,187 1,557.9 % APS 9,147 10,706 (1,559) (14.6) % Total income from operations$ 54,042 $ 13,414
Capital Equipment For the three months endedJanuary 2, 2021 , the higher Capital Equipment income from operations as compared to the prior year period was primarily due to higher demand as explained under 'Net Revenue' above. APS For the three months endedJanuary 2, 2021 , the lower APS income from operations as compared to the prior year period was primarily due to unfavorable foreign exchange impact. Operating Expenses The following tables reflect operating expenses for the three months endedJanuary 2, 2021 andDecember 28, 2019 : Three months ended (dollar amounts in thousands) January 2, 2021 December 28, 2019 $ Change % Change
Selling, general & administrative
28,658$ 7,242 25.3 % Research & development 31,544 28,292 3,252 11.5 % Total$ 67,444 $ 56,950$ 10,494 18.4 % Selling, General and Administrative ("SG&A") For the three months endedJanuary 2, 2021 , the higher SG&A expenses as compared to the prior year period were primarily due to$4.4 million higher staff costs related to an increase in incentive compensation and headcount,$3.1 million unfavorable 29 -------------------------------------------------------------------------------- Table of Contents variance in foreign exchange and$1.4 million higher professional expenses. These were partially offset by a$1.3 million COVID-19-related grant received from theSingapore government and$0.3 million lower restructuring expenses. Research and Development ("R&D") For the three months endedJanuary 2, 2021 , the higher R&D expenses as compared to the prior year period were primarily due to higher staff costs related to an increase in incentive compensation and headcount. Interest Income and Expense The following tables reflect interest income and interest expense for the three months endedJanuary 2, 2021 andDecember 28, 2019 : Three months ended (dollar amounts in thousands) January 2, 2021 December 28, 2019 $ Change % Change Interest income$ 651 $ 2,839$ (2,188) (77.1) % Interest expense$ (32) $ (583)$ (551) (94.5) % Interest income For the three months endedJanuary 2, 2021 , the lower interest income as compared to the prior year period was primarily due to lower weighted average interest rate on cash, cash equivalents and short-term investments. Interest expense For the three months endedJanuary 2, 2021 , the lower interest expense as compared to prior year period was primarily due to the absence of interest expense related to the Overdraft Facility. Please refer to Note 9 of Item 1 for discussion on the facility. Provision for Income Taxes The following table reflects the provision for income taxes and the effective tax rate for the three months endedJanuary 2, 2021 andDecember 28, 2019 : Three months ended (dollar amounts in thousands) January 2, 2021 December 28, 2019 Change Provision for income taxes$ 6,298 $ 2,133$ 4,165 Effective tax rate 11.5 % 13.6 % (2.1) % Please refer to Note 13 of Item 1 for discussion on the provision for income taxes and the effective tax rate for the three months endedJanuary 2, 2021 as compared to the prior year period.
LIQUIDITY AND CAPITAL RESOURCES
The following table reflects total cash, cash equivalents, and short-term
investments as of
As of
(dollar amounts in thousands) January 2, 2021 October 3, 2020 $ Change
Cash and cash equivalents $
239,670
Short-term investments 337,000 342,000 (5,000) Total cash, cash equivalents, and short-term investments $
576,670
50.3 % 50.3 %
The following table reflects a summary of the Consolidated Condensed Statement
of Cash Flow information for the three months ended
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Three months ended
(in thousands) January 2, 2021 December 28, 2019
Net cash provided by operating activities $ 58,635 $ 25,028
Net cash provided by investing activities 224 106,487
Net cash (used in)/provided by financing activities (9,207) 2,152
Effect of exchange rate changes on cash and cash equivalents 1,891 (477)
Changes in cash and cash equivalents $ 51,543 $ 133,190
Cash and cash equivalents, beginning of period 188,127 364,184
Cash and cash equivalents, end of period $ 239,670 $ 497,374
Three months ended January 2, 2021
Net cash provided by operating activities was primarily due to net income of
$48.4 million , non-cash adjustments to net income of $10.2 million and a net
change in operating assets and liabilities of $0.1 million . The net change in
operating assets and liabilities was primarily driven by an increase in accounts
payable, accrued expenses and other current liabilities of $39.0 million , and an
increase in income taxes payable of $2.8 million . This was partially offset by
an increase in accounts and other receivable of $28.6 million , and an increase
in inventory of $13.1 million .
The higher accounts payable, accrued expenses and other current liabilities was
primarily due to higher purchases, and higher accruals on customer rebate in the
first quarter of fiscal 2021. The increase in income taxes payable was mainly
due to additional tax payable. The increase in accounts and other receivable was
due to increase in sales. The increase in inventory was due to higher
manufacturing activities in anticipation of higher demand in subsequent periods.
Net cash provided by investing activities was due to net redemption of
short-term investments of $5.0 million . This was partially offset by capital
expenditures of $4.9 million .
Net cash used in financing activities was primarily due to common stock
repurchases of $1.7 million and dividend payments of $7.4 million .
Three months ended December 28, 2019
Net cash provided by operating activities was primarily due to net income of
$13.5 million and non-cash adjustments to net income of $11.9 million and the
decrease in net change in operating assets and liabilities of $0.4 million . The
decrease in net change in operating assets and liabilities was primarily driven
by a increase in inventory of $7.0 million , and an increase in accounts and
notes receivables of $3.0 million . This was partially offset by an increase in
accounts payable, accrued expenses and other current liabilities of $8.0
million , and an increase of income taxes payable of $1.0 million .
The increase in inventory was due to higher manufacturing activities in first
quarter of fiscal 2020 as compared to the fourth quarter of fiscal 2019 in
anticipation of higher demand in subsequent period. The increase in accounts
receivable was due to higher sales in the first quarter of fiscal 2020 as
compared to the fourth quarter of fiscal 2019. The higher accounts payable,
accrued expenses and other current liabilities was primarily due to higher
purchases made in the first quarter of fiscal 2020. The increase in income taxes
payable was mainly due to additional tax payable.
Net cash provided by investing activities was due to net redemption of
short-term investments of $110.0 million . This was partially offset by capital
expenditures of $2.2 million and an equity investment of $1.3 million .
Net cash used in financing activities was primarily due to proceeds from the
Overdraft Facility of $15.1 million . This was partially offset by common stock
repurchases of $5.3 million and dividend payments of $7.6 million .
Fiscal 2021 Liquidity and Capital Resource Outlook
We expect our aggregate fiscal 2021 capital expenditures to be between
approximately $32.0 million and $36.0 million , of which approximately $3.7
million has been incurred through the first quarter. Expenditures are
anticipated to be primarily used for R&D projects, enhancements to our
manufacturing operations, improvements to our information technology security,
the continuing implementation of an enterprise resource planning system and
leasehold improvements for our facilities. Our ability to make these
expenditures will depend, in part, on our future cash flows, which are
determined by our future operating performance and, therefore, subject to
prevailing global macroeconomic conditions, including the impact from the
COVID-19 pandemic, as well as financial, business and other factors, some of
which are beyond our control.
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As of January 2, 2021 and October 3, 2020 , approximately $542.0 million and
$492.0 million of cash, cash equivalents, and short-term investments were held
by the Company's foreign subsidiaries, respectively, with a portion of the cash
amounts expected to be available for use in the U.S. without incurring
additional U.S. income tax.
The Company's international operations and capital requirements are anticipated
to be funded primarily by cash generated by foreign operating activities and
cash held by foreign subsidiaries. Most of the Company's operations and
liquidity needs are outside the U.S. The Company's U.S. operations and capital
requirements are anticipated to be funded primarily by cash generated from U.S.
operating activities, and by our existing Facility Agreements. In the future,
the Company may repatriate additional cash held by foreign subsidiaries that has
already been subject to U.S. income taxes. We believe these sources of cash and
liquidity are sufficient to meet our business needs in the U.S. for the
foreseeable future including funding of U.S. operations, capital expenditures,
repayment of outstanding balances under the Facility Agreements, the dividend
program, and the share repurchase program as approved by the Board of Directors.
We believe that our existing cash, cash equivalents, short-term investments,
existing Facility Agreements, and anticipated cash flows from operations will be
sufficient to meet our liquidity and capital requirements, notwithstanding the
COVID-19 pandemic, for at least the next twelve months from the date of filing.
Our liquidity is affected by many factors, some based on normal operations of
our business and others related to global economic conditions and industry
uncertainties, which we cannot predict. We also cannot predict economic
conditions or industry downturns or the timing, strength or duration of
recoveries. We intend to continue to use our cash for working capital needs and
for general corporate purposes.
In this unprecedented environment, as a result of the COVID-19 pandemic or for
other reasons, we may seek, as we believe appropriate, additional debt or equity
financing that would provide capital for general corporate purposes, working
capital funding, additional liquidity needs or to fund future growth
opportunities, including possible acquisitions. The timing and amount of
potential capital requirements cannot be determined at this time and will depend
on a number of factors, including the actual and projected demand for our
products, semiconductor and semiconductor capital equipment industry conditions,
competitive factors, and the condition of financial markets.
Share Repurchase Program
On August 15, 2017 , the Company's Board of Directors authorized a program (the
"Program") to repurchase up to $100 million in total of the Company's common
stock on or before August 1, 2020 . In 2018 and 2019, the Board of Directors
increased the share repurchase authorization under the Program to $200 million
and $300 million , respectively. On July 3, 2020 , the Board of Directors
increased the share repurchase authorization under the Company's existing share
repurchase program by an additional $100 million to $400 million , and extended
its duration through August 1, 2022 . The Company has entered into a written
trading plan under Rule 10b5-1 of the Exchange Act to facilitate repurchases
under the Program. The Program may be suspended or discontinued at any time and
is funded using the Company's available cash, cash equivalents and short-term
investments. Under the Program, shares may be repurchased through open market
and/or privately negotiated transactions at prices deemed appropriate by
management. The timing and amount of repurchase transactions under the Program
depend on market conditions as well as corporate and regulatory considerations.
During the three months ended January 2, 2021 , the Company repurchased a total
of approximately 48.0 thousand shares of common stock under the Program at a
cost of approximately $1.2 million . As of January 2, 2021 , our remaining stock
repurchase authorization under the Program was approximately $140.9 million .
Dividends
On December 10, 2020 , the Board of Directors declared a quarterly dividend of
$0.14 per share of common stock. Dividends paid during the three months ended
January 2, 2021 totaled $7.4 million . The declaration of any future cash
dividend is at the discretion of the Board of Directors and will depend on the
Company's financial condition, results of operations, capital requirements,
business conditions and other factors, as well as a determination that such
dividends are in the best interests of the Company's shareholders.
Other Obligations and Contingent Payments
In accordance with GAAP, certain obligations and commitments are not required to
be included in the Consolidated Condensed Balance Sheets and Statements of
Operations. These obligations and commitments, while entered into in the normal
course of business, may have a material impact on our liquidity and are
disclosed in the table below.
As of January 2, 2021 , the Company has deferred tax liabilities of $33.0 million
and unrecognized tax benefits within the income taxes payable for uncertain tax
positions of $13.1 million , inclusive of accrued interest on uncertain tax
positions of $1.6 million , substantially all of which would affect our effective
tax rate in the future, if recognized. It is reasonably possible that the amount
of the unrecognized tax benefit with respect to certain unrecognized tax
positions will increase or decrease
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Table of Contents during the next 12 months due to the expected lapse of statutes of limitation and / or settlements of tax examinations. These amounts are not included in the table below because given the number of years and numerous matters that remain subject to examination in various tax jurisdictions, we cannot practicably estimate the timing or financial outcomes of these examinations. When estimating its tax positions, the Company considers and evaluates numerous complex areas of taxation, which may require periodic adjustments and which may not reflect the final tax liabilities. The following table presents certain payments due by the Company under contractual obligations with minimum firm commitments as ofJanuary 2, 2021 :
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