What changed in this filing

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Item 1. Business

2023-02-16 compared with 2022-02-17 · 129 added, 102 removed, 157 unchanged (60% of the section changed)

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and its subsidiaries.

References herein to “2021”, “fiscal 2021” or “fiscal year 2021” refer to the fiscal year ended January 1, 2022.

References herein to “2022”, “fiscal 2022” or “fiscal year 2022” refer to the fiscal year ended December 31, 2022.

References herein to “2021”, “fiscal 2021” or “fiscal year 2021” refer to the fiscal year ended January 1, 2022.

References herein to “2020”, “fiscal 2020” or “fiscal year 2020” refer to the fiscal year ended December 26, 2020.

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As a result of using this convention, the fiscal year 2021 contained 53 weeks while each of fiscal 2022 and fiscal 2020 contained 52 weeks.

Founded in 1927, Littelfuse is an industrial technology manufacturing company empowering a sustainable, connected, and safer world.

Founded in 1927, Littelfuse is a diversified, industrial technology manufacturing company empowering a sustainable, connected, and safer world.

Across more than 20 countries, and with approximately 18,000 global associates, the Company partners with customers to design and deliver innovative, reliable solutions.

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Electronics, Transportation, and Industrial.

Within these segments, the Company designs, manufactures and sells components, modules and subassemblies to empower the long-term structural themes of sustainability, connectivity and safety.

Within these segments, the Company designs, manufactures and sells electronic components, modules and subassemblies to empower the long-term mega growth themes of sustainability, connectivity and safety.

Over the last decade the Company has positioned itself within the center of these global structural growth themes by helping to enable its customers’ applications focused on a more sustainable, connected, and safer world.

The ever-increasing complexity of applications surrounding these themes continues to drive greater demand for the Company’s reliable products and a higher level of product content.

As a result, the Company has evolved its presence across the industrial, transportation and electronics end markets it serves, which is relatively balanced.

With a long list of target applications within each primary end market, the Company believes its balanced approach is healthy for the long-term sustainability of its business, increases diversification and creates additional growth opportunities.

Across electronics end

markets, product demand is largely driven by the amplified themes of electrification, energy efficiency, automation, and connectivity.

The ever-increasing complexity of applications surrounding these themes continues to drive greater demand for the Company’s innovative, reliable products and a higher level of product content within a broad range of applications.

With its expanding, diversified, product portfolio, the Company has evolved its presence across the industrial, transportation and electronics end markets it serves.

The Company's exposure with each of these end markets is relatively balanced.

With a deep list of target applications within each primary end market, the Company believes its balanced approach is healthy for the long-term sustainability of its business, increases diversification and creates additional growth opportunities.

Across electronics end markets, product demand is largely driven by electrification, energy and power efficiency, automation, connectivity, and safety.

In transportation end markets, including passenger and commercial vehicles, the ongoing electronification and electrification of applications is driving increased product demand.

Across industrial end markets, product demand is driven by a more sustainable ecosystem.

For example, solar and wind energy, and energy storage systems that enable lower carbon emissions, the ongoing proliferation of electric vehicles and charging stations, more efficient climate control units, increasing requirements for electrical safety, and the rising demand for factory and process automation.

For example, renewables, including solar and wind energy, and energy storage systems that enable lower carbon emissions, the ongoing proliferation of electric vehicles and charging stations, more efficient climate control units, increasing requirements for electrical safety, the rising demand for factory and process automation, and motor drives and power supplies.

For segment and geographical information and consolidated net sales and operating income see Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations and Note 16, Segment Information, of the Notes to Consolidated Financial Statements included in this Annual Report.

• Electronics Segment :

Consists of one of the broadest product offerings in the industry, including fuses and fuse accessories, positive temperature coefficient (“PTC”) resettable fuses, polymer electrostatic discharge (“ESD”) suppressors, varistors, reed switch based magnetic sensing, gas discharge tubes;

Consists of one of the broadest product offerings in the industry, including fuses and fuse accessories, positive temperature coefficient (“PTC”) resettable fuses, electromechanical switches and interconnect solutions, polymer electrostatic discharge (“ESD”) suppressors, varistors, reed switch based magnetic sensing, gas discharge tubes;

semiconductor products such as discrete transient voltage suppressor (“TVS”) diodes, TVS diode arrays, protection and switching thyristors, silicon and silicon carbide metal-oxide-semiconductor field effect transistors (“MOSFETs”) and diodes;

and insulated gate bipolar transistors (“IGBT”) technologies.

The segment covers a broad range of end markets, including industrial motor drives and power conversion, automotive electronics, electric vehicle and related infrastructure, power supplies, data centers and telecommunications, medical devices, alternative energy and energy storage, building and home automation, appliances, and mobile electronics.

The segment covers a broad range of end markets, including industrial motor drives and power conversion, automotive electronics, electric vehicle and related charging infrastructure, aerospace, power supplies, data centers and telecommunications, medical devices, alternative energy and energy storage, building and home automation, appliances, and mobile electronics.

• Transportation Segment:

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The term “Transportation” represents a more comprehensive description of the Company’s broad range of products, and the applications and end markets it serves .

Consists of a wide range of circuit protection, power control and sensing technologies for global original equipment manufacturers (“OEMs”), Tier-one suppliers and parts and aftermarket distributors in passenger vehicle, heavy duty truck, off-road vehicles, material handling, agricultural, construction and other commercial vehicle end markets.

Consists of a wide range of circuit protection, power control and sensing technologies for global original equipment manufacturers (“OEMs”), Tier-one suppliers and parts and aftermarket distributors in passenger vehicle, heavy-duty truck, off-road vehicle, material handling, agricultural, construction and other commercial vehicle end markets.

Passenger vehicle products are used in internal combustion engine, hybrid and electric vehicles including blade fuses, battery cable protectors, resettable fuses, high-current fuses, high-voltage fuses, and sensor products designed to monitor the occupant’s safety and environment as well as the vehicle’s powertrain.

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• Industrial Segment:

Consists of industrial circuit protection (industrial fuse), industrial controls (protection relay, contactors, transformers) and temperature sensors for use in various applications such as renewable energy and energy storage systems, electric vehicle infrastructure, HVAC systems, industrial safety, non-residential construction, MRO, mining and industrial automation.

In February 2021, the Company announced its new five-year strategic plan which builds upon its strengths from its previous strategy.

Consists of industrial circuit protection (industrial fuses), industrial controls (protection relays, contactors, and transformers) and temperature sensors for use in various applications such as renewable energy and energy storage systems, electric vehicle infrastructure, HVAC systems, industrial safety, non-residential construction, MRO, mining and industrial automation.

In February 2021, the Company announced its five-year strategic plan which builds upon its strengths from its previous strategy.

The Company is well-positioned within the center of the global structural growth themes of sustainability, connectivity, and safety, which will continue to drive increased demand for the Company’s products across the transportation, industrial and electronics end markets that it serves.

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The Company expects to achieve this through content and share gains, expanded presence in high-growth markets and geographies, and targeting high-growth and niche applications.

The Company will continue to invest in its people, as well as customer-driven innovation, eMobility, and its digital infrastructure to improve customer experience, and its operating systems.

It plans to capitalize on growth opportunities where technologies and applications are converging across its product segments, while continuing to acquire and integrate businesses that fit its strategic focus areas.

The Company continues to drive commercial excellence through investments in its people, customer-driven innovation, strategic acquisitions and integration of these businesses, eMobility, and its digital infrastructure to improve the

customer experience, and its operating systems.

These investments enable the Company to capitalize on growth opportunities where technologies and applications are converging across its product segments.

The Company's resilient growth strategy and business model has delivered sustained double-digit sales and earnings growth over the last five, ten and fifteen years.

Recent Acquisitions

• C&K Switches:

On July 19, 2022, the Company acquired C&K Switches (“C&K”) for $540 million in cash.

Founded in 1928, C&K is a leading designer and manufacturer of high-performance electromechanical switches and interconnect solutions with a strong global presence across a broad range of end markets, including industrial, transportation, datacom, and aerospace.

At the time the Company and C&K entered into a definitive agreement, C&K had annualized sales of over $200 million.

The business is reported as part of the electronics-passive products and sensors business within the Company's Electronics segment.

The Company financed the transaction through a combination of cash on hand and debt.

On April 12, 2022, the Company acquired Embed Ltd.

Founded in 2005, Embed is a proven provider of embedded software and firmware developed for a broad range of applications serving transportation end markets, primarily including commercial vehicle electronification and eMobility.

The business is included in the commercial vehicle business within the Company's Transportation segment.

The acquisition was funded with the Company’s cash on hand.

The total purchase consideration was $9.2 million, net of cash.

• Carling Technologies:

On November 30, 2021, the Company acquired Carling Technologies (“Carling”), a leader in switching, circuit protection and power distribution technologies with a strong global presence in commercial transportation, communications infrastructure and marine markets.

On November 30, 2021, the Company acquired Carling Technologies (“Carling”), a leader in switching, circuit protection and power distribution technologies with a strong global presence in commercial vehicle electronification, communications infrastructure and marine markets.

At the time of acquisition, Carling had annualized sales of approximately $170 million.

The purchase price for Carling was $315 million subject to change for working capital adjustments and the operations of Carling are included in the Transportation segment.

The purchase price for Carling was $315 million subject to change for working capital adjustments and the operations of Carling are included in the commercial vehicle business within the Company’s Transportation segment.

The acquisition was funded with the Company's cash on hand.

• 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.

At the time of acquisition, Hartland had annualized sales of approximately

At the time of acquisition, Hartland had annualized sales of approximately $70 million.

The purchase price for Hartland was $111.0 million and the operations of Hartland are included in the Industrial segment.

The net cash payment of $108.5 million was funded by the Company’s cash on hand.

• IXYS Corporation:

On January 17, 2018, the Company acquired IXYS corporation ("IXYS"), a global pioneer in the power semiconductor and integrated circuit markets with a focus on medium to high voltage power semiconductors across the industrial, communications, consumer and medical markets.

On January 17, 2018, the Company acquired IXYS Corporation ("IXYS"), a global pioneer in the power semiconductor and integrated circuit markets with a focus on medium to high voltage power semiconductors across the industrial, eMobility, communications, consumer and medical end markets.

IXYS had a broad customer base, serving more than 3,500 customers through its direct sales force and global distribution partners.

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The operations of IXYS are included in the Electronics segment.

On July 7, 2017, the Company acquired the assets of U.S.

Sensor Corporation (“U.S.

Sensor”) for $24.3 million.

Sensor manufactures a variety of high quality negative temperature coefficient thermistor probes and assemblies across a number of industrial end markets.

The operations of U.S.

Sensor are included in the Industrial segment.

• Monolith Semiconductor Inc.

On February 28, 2017, pursuant to a Securities Purchase Agreement between the Company and the stockholders of Monolith Semiconductor Inc.

(“Monolith”), a U.S.

start-up Company developing silicon carbide technology, the Company increased its investment in Monolith by acquiring approximately 62% of the outstanding common stock of Monolith for $15.0 million.

During 2018, the Company acquired the remaining outstanding stock of Monolith for $9.0 million based on Monolith meeting certain technical and sales targets, and now owns 100% of Monolith.

The operations of Monolith are included in the Electronics segment.

Sales and Operations

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Electronics Segment

The Company designs, manufactures and sells components and modules to empower the long-term mega sustainability themes.

The ever-increasing complexity of applications surrounding these themes continues to drive greater demand for the Company’s reliable products and a higher level of product content.

As a result, the Company has evolved its presence across the industrial, transportation and electronics end markets it serves.

The Company designs, manufactures and sells electronic components and modules empowering its customers’ applications focused on a more sustainable, connected, and safer world.

Technologies within the Electronics segment provide protection, power control and sensing capabilities.

Circuit protection technologies in the Electronics Segment are designed to protect against harmful occurrences like voltage spikes, short circuits, power surges and electrostatic discharge.

Products include fuses and fuse accessories, PTC resettable fuses, ESD suppressors, varistors, gas discharge tubes, and semiconductor products such as discrete TVS diodes, TVS diode arrays, and protection thyristors.

The need for complex sensor technologies continues to grow, as products become increasingly sophisticated, smarter and more connected.

Sensor products in the Segment are used in a wide variety of applications including appliances, building and home automation, industrial controls, and commercial vehicles.

The Company also offers a wide range of power control products used to convert and regulate energy and safely and efficiently control power across a broad spectrum of industrial applications like renewable energy and energy storage systems, motor drives and power conversion.

Products include a comprehensive portfolio of semiconductor components and modules including thyristors, MOSFETs, rectifiers and fast recovery diodes, IGBTs and wide band gap devices.

The 2018 acquisition of IXYS expanded the Company's power semiconductor portfolio in medium and high-power industrial applications and technology expertise.

The Company expects to continue to diversify and expand its presence within the industrial market, leveraging the strong IXYS industrial OEM customer base.

As products become increasingly sophisticated, smarter and more connected, the need for complex sensor technologies continues to grow.

Sensor products in the Electronics Segment are used in a wide variety of applications including appliances, building and home automation, industrial controls, and commercial vehicles.

The 2018 acquisition of IXYS expanded the Company's power semiconductor portfolio in medium and high-power industrial applications and technology expertise and OEM customer base.

The acquisition of C&K Switches in 2022 significantly expanded the Company's electromechanical switches and interconnect solutions portfolios, which primarily serves industrial, transportation and datacom applications.

Through the growth of its product portfolio within the segment, the Company has expanded its presence across the industrial, transportation and electronics end markets it serves.

The Company expects to continue to expanding its martket presence by leveraging its broad, global access and reach with its strong go-to-market strategy via its strategic distribution partnerships and deep OEM relationships, and by continuing to expand its product portfolio through organic and inorganic investments.

Transportation Segment

The Company is a primary supplier of fuses and circuit protection technologies to global automotive OEMs, through sales made to Tier One automotive suppliers, main-fuse box, and wire harness manufacturers that incorporate the fuses into their products, as well as automotive component parts manufacturers, and automotive parts distributors.

The Company also sells its fuses in the replacement parts market, with its products being sold through merchandisers, discount stores, and service stations, as well as under private label by national firms.

The Company is a primary supplier of circuit protection technologies, as well as certain sensing technologies to global automotive OEMs, mainly through sales made to Tier One automotive suppliers, main-fuse box, and wire harness manufacturers that incorporate these technologies into their products, as well as automotive component parts manufacturers, and automotive parts distributors.

The Company also sells some of its circuit protection products in the replacement parts market, with its products being sold through merchandisers, discount stores, and service stations, as well as under private label by national firms.

Passenger vehicle products include both protection and sensing technologies used in internal combustion engine, hybrid and electric vehicles.

Protection technologies include blade fuses, battery cable protectors, resettable fuses, high-current and high voltage fuses.

Sensing technologies are used in a variety of applications including occupant safety, speed, solar, fluid, position, harness, and battery management systems.

The Company’s commercial vehicle business includes a variety of products including power distribution modules and units, low and high current switches, circuit breakers, relays, battery management products, ignition key switches, and trailer connectors.

These products are used in applications serving a number of end markets, including heavy-duty truck, construction, agriculture, material handling and marine.

These products are used in applications largely serving commercial vehicle end markets including heavy-duty truck, construction, agriculture, material handling and marine.

Products are sold directly to a mix of OEMs, Tier One suppliers, aftermarket channels, as well as through general distribution.

The acquisition of Carling Technologies significantly expanded the Company's switching, circuit protection and power distribution product portfolios.

The Company expects to continue to expand its presence within transportation end markets, leveraging its strong OEM, Tier One and distributor customer base and go-to-market strength, and by continuing to expand its product portfolio through organic and inorganic investments.

The acquisition of Carling Technologies in 2021 significantly expanded the Company's presence in commercial vehicle end markets.

The product portfolio, including switching, circuit protection and power distribution products portfolios, are primarily used in commercial vehicle applications, as well as certain telecom and datacom applications.

The Company expects to continue to expand its presence across its end markets, leveraging its strong OEM, Tier One and distributor customer base and go-to-market strength, and by continuing to expand its product portfolio through organic and inorganic investments.

Industrial Segment

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These products are used to protect personnel and equipment from excessive currents, over voltages, and electrical shock hazards.

Products are sold direct to OEMs, and through electrical distributors and electronics distribution channels.

The 2021 acquisition of Hartland expanded the Company’s contactors and transformers product portfolios.

The Company expects to continue to expand its presence within industrial end markets, leveraging its strong customer base, and go-to-market strength, and by continuing to expand its product portfolio through organic and inorganic investments.

Products are sold direct to OEMs, and through both electrical and electronics distribution channels.

The 2021 acquisition of Hartland expanded the Company’s contactors and transformers product portfolios, which primarily services HVAC and e-Mobility off-board charging applications.

The Company expects to continue to expand its presence across its end markets, leveraging its growing customer base, and go-to-market strength, and by continuing to expand its product portfolio through organic and inorganic investments.

PRODUCT DESIGN AND DEVELOPMENT

The Company employs scientific, engineering, and other personnel to continually improve its existing product lines and to develop new products at its research, product design, and development (“R&D”) and engineering facilities with primary locations in China, Germany, Italy, Japan, Lithuania, Mexico, Philippines, Taiwan (China), United Kingdom ("U.K."), and the U.S.

The Company employs scientific, engineering, and other personnel to continually improve its existing product lines and to develop new products at its research, product design, and development (“R&D”) and engineering facilities with primary locations in China, France, Germany, Italy, Japan, Lithuania, Mexico, Philippines, Taiwan (China), United Kingdom ("U.K."), and the U.S.

The Company maintains a staff of engineers, chemists, material scientists and technicians whose primary responsibility is to design and develop new products.

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During fiscal years 2022, 2021, and 2020, the Company expended $95.6 million, $65.9 million, and $52.5 million, respectively, on R&D.

Over the years, the Company has expanded its industry-leading technical expertise to support its customers, and ultimately diversify its solutions offering.

With the intensifying complexity of applications, its superior engineering and design-in capabilities, and product portfolio, continue to deliver increasing value to customers.

The Company’s strong global presence allows it to utilize its deep and broad application knowledge to help enable its customers’ applications across the industrial, transportation and electronics markets.

PATENTS, TRADEMARKS, AND OTHER INTELLECTUAL PROPERTY

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MANUFACTURING

The Company’s manufacturing facilities are in China, Germany, Italy, Japan, Lithuania, Mexico, Philippines, Portugal, the U.K., and the U.S.

The Company performs the majority of its own fabrication and maintains in-house capabilities for metal stamping, surface mount assembly, plating (silver, nickel, zinc, and oxides) and thermoplastic molding.

The Company’s manufacturing facilities are in China, France, Germany, India, Italy, Japan, Lithuania, Mexico, Philippines, the U.K., the U.S., and Vietnam.

In addition, the Company fabricates semiconductor wafers for certain applications and maintains in-house capability for epitaxy fabrication, die attach, and wafer probe testing.

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The principal raw materials for the Company’s products include copper and copper alloys, resin and heat-resistant plastics, zinc, melamine, glass, silver, gold, raw silicon, solder, rubber, and various gases.

The Company’s strategy is to prequalify suppliers for quality assurance and supply continuity, and when possible, to localize supply sources close to its manufacturing sites.

The Company’s strategy is to prequalify suppliers for quality assurance and supply continuity, as much as possible, to localize supply sources close to its manufacturing sites.

This helps to minimize the transportation of materials, and ultimately reduces the Company’s environmental footprint by decreasing emissions, consistent with its sustainability strategy.

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The direct sales force closely works with global OEM, Tier One automotive, consulting engineers, and major end customers to design-in and sell all of the Company’s products.

The distributors provide fulfillment for a majority of customers including those partnered with electronic manufacturing services ("EMS").

The Company has sales offices and direct sales channels in a number of countries around the world.

The Company has sales offices and direct sales channels in number of countries around the world.

The Company's channel partners provide fulfillment services for its end customers, including those partnered with electronic manufacturing services ("EMS"), as well as some demand creation activities.

Electronics Segment

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In selected areas, the Company also uses distributors to service smaller customers and to provide supply chain fulfillment for certain customers.

The Company also leverages its transportation customer relationships to sell products from the Electronics segment into transportation end markets, primarily to Tier One automotive customers.

These revenues are reported in the Electronics segment.

The Company also leverages its transportation customer relationships to sell products from the Electronics and Industrial segments into transportation end markets, primarily to Tier One and OEM automotive customers.

Respective revenues are reported in the Electronics and Industrial segments.

Industrial Segment

The Company markets and sells its Industrial segment products direct to OEMs, and through electrical distributors and electronics distribution channels to various end customers including electrical contractors, factories, municipalities, and utilities.

The Company markets and sells its Industrial segment products direct to OEMs, and through both electrical and electronics distribution channels to various end customers including electrical contractors, factories, municipalities, and utilities.

The Company directly sells to over 5,000 customers and distributors worldwide.

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In the Electronics segment, the Company’s competitors include Eaton Corporation, Bourns Inc., TDK, ON Semiconductor Corporation, Infineon Technologies, STMicroelectronics NV, Semtech Corporation, and Vishay Intertechnology Inc.

In the Transportation segment, the Company’s competitors include Eaton Corporation, Pacific Engineering, MTA (Meccanotecnica Codognese), CTS Corporation, Amphenol Corporation, Sensata Technologies Holding NV, and TE Connectivity Ltd.

In the Transportation segment, the Company’s competitors include Eaton Corporation, Pacific Engineering, MTA (Meccanotecnica Codognese), Amphenol Corporation, Sensata Technologies Holding NV, and TE Connectivity Ltd.

In the Industrial segment, the Company’s major competitors include Eaton Corporation, GE Multilin, and Mersen.

The Company believes that it globally competes on the basis of innovative products, the breadth of its product line, the quality, design and performance of its products based on their reliability, consistency and safety, its technical capabilities and application expertise, and the responsiveness of its customer service.

The backlog of unfilled orders at January 1, 2022 was approximately $1,657.1 million, compared to $709.9 million at December 26, 2020 with the increase primarily driven by all segments and acquisition.

The backlog of unfilled orders at December 31, 2022 was approximately $1,646.1 million, compared to $1,657.1 million at January 1, 2022 with the decrease primarily driven by a reduction across the Electronics and Transportation segments.

Substantially all the orders currently in backlog are scheduled for delivery in 2023.

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A passion for engineering excellence and an innovative spirit have been a part of what it means to work at Littelfuse since its founding in 1927.

The Company hires bright minds who want to make a big impact and are committed to improve the safety, reliability and performance of our customers’ products.

The Company hires bright minds who want to make a big impact and are committed to improve the safety, reliability and performance of our customers’ products that use electrical energy.

As the Company's human capital is critical to its success, the Company strives to make Littelfuse a safe, diverse, and inclusive workplace, provide competitive compensation, benefits, and health and wellness programs, offer appropriate training and promote community involvement.

Employee Data

At January 1, 2022, the Company had approximately 17,000 full-time, part-time and temporary employees;

On December 31, 2022, the Company had approximately 18,000 full-time, part-time and temporary employees;

of which 52% are female and 48% are male;

and of which 49%, 39% and 12% are located in the Americas, Asia-Pacific region, and Europe, respectively.

Littelfuse core values – Customer Focus, Teamwork, Results Driven, Integrity and Innovation – guide conversations, decisions, and interactions for our business.

Together, they are the foundation of the Company's working relationships both internally and externally and the Company asks each of associates to exemplify these high standards every day.

Governance & Oversight

The Chief Human Resources Officer ("CHRO") is responsible for developing and executing the Company’s human capital strategy.

This includes establishing and implementing the Company's global policies and programs for leadership and employee development, compensation, benefits, workforce planning, human resources systems, and ensuring effective and efficient internal company operations.

This includes establishing and implementing global policies and programs for leadership and employee development,

compensation, benefits, workforce planning, human resources systems, and ensuring effective and efficient internal company operations.

The CHRO is responsible for developing and integrating the Company’s diversity, inclusion, and belonging strategy in its business operations.

The Chief Executive Officer ("CEO") and CHRO regularly update the Company's board of directors on human capital matters.

Leadership and Employee Development

The Company is committed to identifying and developing our next generation of leaders.

The Company's talent review and succession planning processes support the development of the Company's talent pipeline, as well as the diversity of its talent.

The Company is focused on both the recruitment of diverse candidates and the development of the Company's diverse employees to provide the opportunity to advance their careers and move into leadership positions within the Company.

Globally, the Company conducts enterprise-wide talent review processes with the CEO, business unit and function leaders focusing on the Company's high-performing and high-potential talent, diverse talent, and the succession for the Company's most critical roles.

Also, the Company's board of directors reviews and assesses management development plans for senior executives and the succession plans relating to those positions.

From the Company's production lines to its engineering labs, the office or distribution center, the contributions of the Company's talented teams make a critical difference.

The Company's goal is to ensure that every employee is provided with the appropriate resources and opportunities to enjoy a successful and rewarding career at Littelfuse.

The Company's training programs cover topics including job-skills, enterprise six-sigma, Lean manufacturing, information security, and ethics and compliance.

All global associates are required to take the Company's annual Code of Conduct training, which is made available in local languages for the Company's global workforce.

The Company also has regional development programs that assist the Company's current and future leaders to develop leadership skills and grow their careers in Littelfuse.

Diversity and Inclusion

Our Values & Culture

Littelfuse core values have been instrumental in driving success for our business.

Values of Customer Focus, Teamwork, Results-Driven, Integrity and Innovation have guided conversations and decision-making that provided direction for our company.

As we continue to grow and scale, we recognize that it is critical to evolve our culture.

In 2022, we engaged in a project to evaluate and mature our values.

Throughout 2023 we will roll-out new values and provide regular engagement points for our associates as we drive culture advancement.

Diversity, Inclusion & Belonging

As part of driving sustainable success, The Company values and celebrates diversity in every aspect of work with customers, stakeholders, suppliers and each other.

The Company's commitment to diversity and equity empowers its associates to innovate, deliver bold solutions and drive growth with the multifaceted insight that comes from true community.

The Company believes that when everyone is included, everyone wins.

Our Diversity, Inclusion and Belonging Council focuses on enhancing the diversity across the Company's stakeholders through bold solutions, to drive sustainable success across the company.

In addition, the Company also has a number of employee resource groups, each sponsored by a member of our executive leadership team, that enhance its inclusive and diverse culture.

One example is the Company's Women’s Initiative Network (WiN).

WiN was established to provide a forum to inspire and accelerate associate advancement and development through networking, mentoring, coaching and education.

Compensation and Benefits

The Company provides compensation and benefits programs designed to be both competitive and equitable, in order to attract, retain and motivate highly qualified associates.

The components of the Company's compensation program vary by region and employee-type, and include items such as base salary, performance-based bonus plans, equity awards, paid time off, and tuition reimbursement.

The Company's commitment to diversity, inclusion and belonging creates a collaborative environment that draws out associates’ unique capabilities that contribute to innovation, deliver bold solutions and drive growth.

Long-standing programs, policies and initiatives supporting a diverse and inclusive workplace remain in place and continue to expand.

The Company’s employee resource groups (ERGs) continue to expand to support broader demographics and identities.

Existing ERGs have grown to have a presence in more countries and provide impactful development and mentoring opportunities.

Leadership is accountable for creating a diverse and inclusive work environment.

To support leadership team in diversity, inclusion and belonging effort, we provided Inclusion training to senior leaders across the businesses.

Our senior leaders have also established goals around diversity, inclusion & belonging which are part of the annual goal setting and performance process.

As an industrial technology manufacturing company, we are committed to challenging the status quo by strengthening existing and building new female talent pipelines to improve gender equity.To demonstrate such commitment, the Company established an aspirational goal of achieving at least 25% female leadership representation globally by 2026.

In 2022, female leadership increased by 1% to 21%, while overall, 52% of the Company’s associates identify as female.

We also believe that our workforce should be fully representative of the communities where it operates.

The Company also established an aspirational goal to increase the representation of Black African American employees in the U.S.

to at least 5% by 2026.

As a result of the continued effort on recruiting, developing and retaining talent, Black African American representation has increased from 3% in 2021 to 3.5% in 2022.

Talent Management, Development & Succession Planning

Building and maintaining a strong talent pipeline is essential to sustained performance and achievement of the Company's growth strategy.

The leadership team incorporates talent strategy into the annual business strategy review process to ensure the Company has the capabilities and capacity to meet current and future requirements.

The Company conducts enterprise-wide, global talent review processes with the CEO, business unit and function leaders focusing on the Company's high-performing and high-potential talent, diverse talent, and succession plans for the Company's most critical roles.

Also, the Company's board of directors reviews and assesses management development plans for senior executives and the succession plans relating to those positions.

The Company is also actively investing in identifying and developing the pipeline of future global leaders and technical experts.

One area of focus has been early career talent pipelines and programs, resulting in an expanded focus on internships and other college/university recruitment pipelines.

More specifically, accelerated development programs (e.g.

such as the Company's global RISE engineering program) have been implemented to strengthen the pipeline of talent required to sustain business growth.

As the Company continues to focus on developing the talent pipeline, we are also investing in strengthening our leadership capability through leadership mentoring and training.

The leadership training includes a mix of internal and external programs and partnerships addressing fundamental leadership skills to engage, motivate and develop our talent.

Compensation, Benefits and Employee Wellness

The Company provides compensation and benefits programs designed to be competitive and equitable to attract, retain and motivate highly qualified associates.

The components of the Company's compensation program vary by region and job-type, and include items such as base salary, performance-based bonus plans, equity awards, paid time off, and tuition reimbursement.

Global programs include a combination of statutory and additional supplemental benefits in the areas of health, welfare and retirement.

Health, Safety and Wellness

The Company is committed to the safety, health, human rights, and well-being of our employees.

The Company continuously evaluates opportunities to raise safety and health standards through the Company's environmental, health, and safety teams.

Compliance audits and internal processes are in place to stay ahead of workplace hazards, and the Company strives for a zero-injury workplace and to further our strong culture of safety.

The Company further supports the mental and physical well-being of the Company's employees through a range of wellness programs that promote a healthy lifestyle.

During the COVID-19 pandemic, the Company has prioritized the health and safety of its associates and their families.

In an effort to protect the health and safety of our associates, the Company has taken proactive steps in our facilities globally to implement safety procedures including hygiene and disinfection protocols, social distancing, and providing transportation alternatives for employees to get to work and personal protective equipment.

We support our employees' mental and physical well-being through various programs that promote a healthy lifestyle.

Our health & wellness programs vary across countries and are tailored to the needs of our employees from location to location.

Globally, we offer comprehensive medical benefits and an employee assistance program that provides confidential counseling at no charge for all our employees and their families to receive support with personal, health, life, financial, or work issues.

Health and Safety

Littelfuse considers the continuous improvement of our health and safety (H&S) programs as essential to the success of our growing company.

We are committed to meeting or exceeding H&S compliance requirements.

Our EHS(environmental health and safety) personnel are involved in evaluating compliance through audits (internal, external regulatory, and independent third-party) and providing training to employees to increase their H&S knowledge.

We strive for zero workplace injuries, incidents, and occupational illnesses.

Our total case incident rate remains below the industry average, and there were no work-related fatalities in 2022.

In 2022 and 2021, we added additional EHS professionals to focus on targeted safety programs.

Community Involvement

The Company encourages and sponsors employees to donate their time and other resources to improve the communities where they live and work.

The Company's teams around the globe regularly engage in local community outreach, sponsoring activities and initiatives that align with its overall community involvement strategy.

The causes the Company supports include science, technology, engineering and mathematics ("STEM") education, community improvement and environmental stewardship.

The Company works to affect positive change in the communities in which we work and live.

Our giving and volunteerism philosophy is aligned to three pillars:

Green – environment and conservation, STEM – technology innovation, and Equity – humanitarian, community and family.

These overarching pillars guide our actions while providing us with the flexibility to serve the diverse needs of our local communities.

We donate directly as a Company, match employee donations, and sponsor and encourage volunteerism that enables meaningful change around the globe.

SUSTAINABILITY

The Company is focused on creating long-term value for customers, employees, investors, and the communities where they live and work through sustainable business practices.

The Company is committed to the long-term value of a robust sustainability strategy, and has positioned our business within the global sustainability megatrend to enhance our product offering to help empower a sustainable, connected, and safer world.

Many of the Company's key end markets are linked to sustainable applications such as electric vehicles and charging infrastructure, renewable energy, and power management.

Sustainable end markets have been a focus of the Company for decades and the Company published its first Sustainability Report in 2021, as the Company aims to further communicate its commitment and progress towards key internal sustainability initiatives.

The initial focus areas in the Company's Sustainability Report include:

The Company publishes its Sustainability Report annually to communicate its commitment and progress towards key internal sustainability initiatives.

The focus areas of the Company's sustainability program include:

• business ethics

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• waste and hazardous material management

Additional information on how the Company manages each of these topics and the sustainability program progress is available in the Company's Sustainability Report, located on the Company's website at https://www.littelfuse.com/about-us/sustainability.aspx.

The contents of the Company's Sustainability Report and website are not incorporated by reference in this Annual Report on Form 10-K.

Additional information on how the Company manages each of these key areas and its sustainability program is available in the Company's Sustainability Reports, located on the Company's website at https://www.littelfuse.com/about-us/sustainability.aspx.

The contents of the Company's Sustainability Reports and website are not incorporated by reference in this Annual Report on Form 10-K.

ENVIRONMENTAL REGULATION

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What changed 10-K

Item 1. Business