Silicon Laboratories (SLAB) 10-Q 28 Oct 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Oct. 03, 2015	Oct. 20, 2015
Document and Entity Information
Entity Registrant Name	SILICON LABORATORIES INC
Entity Central Index Key	1,038,074
Document Type	10-Q
Document Period End Date	Oct. 3, 2015
Amendment Flag	false
Current Fiscal Year End Date	--01-02
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		41,574,684
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Current assets:
Cash and cash equivalents	$ 135,640	$ 141,706
Short-term investments	112,670	193,489
Accounts receivable, net of allowances for doubtful accounts of $695 at October 3, 2015 and $786 at January 3, 2015	61,030	70,367
Inventories	51,957	52,631
Deferred income taxes	19,155	21,173
Prepaid expenses and other current assets	48,903	49,171
Total current assets	429,355	528,537
Long-term investments	7,240	7,419
Property and equipment, net	130,283	132,820
Goodwill	263,925	228,781
Other intangible assets, net	121,208	115,021
Other assets, net	26,040	29,983
Total assets	978,051	1,042,561
Current liabilities:
Accounts payable	30,306	38,922
Current portion of long-term debt	10,000	10,000
Accrued expenses	50,080	73,646
Deferred income on shipments to distributors	37,881	38,662
Income taxes	1,074	2,084
Total current liabilities	129,341	163,314
Long-term debt	70,000	77,500
Other non-current liabilities	37,234	43,691
Total liabilities	$ 236,575	$ 284,505
Commitments and contingencies
Stockholders' equity:
Preferred stock - $0.0001 par value; 10,000 shares authorized; no shares issued and outstanding
Common stock - $0.0001 par value; 250,000 shares authorized; 41,570 and 42,225 shares issued and outstanding at October 3, 2015 and January 3, 2015, respectively	$ 4	$ 4
Additional paid-in capital		29,501
Retained earnings	742,091	728,633
Accumulated other comprehensive loss	(619)	(82)
Total stockholders' equity	741,476	758,056
Total liabilities and stockholders' equity	$ 978,051	$ 1,042,561

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Condensed Consolidated Balance Sheets
Accounts receivable, allowances for doubtful accounts (in dollars)	$ 695	$ 786
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000	10,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	250,000	250,000
Common stock, shares issued	41,570	42,225
Common stock, shares outstanding	41,570	42,225

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Condensed Consolidated Statements of Income
Revenues	$ 156,194	$ 158,144	$ 484,755	$ 458,753
Cost of revenues	62,759	62,033	197,523	176,874
Gross margin	93,435	96,111	287,232	281,879
Operating expenses:
Research and development	46,483	42,517	140,805	126,846
Selling, general and administrative	35,729	43,990	118,989	114,618
Operating expenses	82,212	86,507	259,794	241,464
Operating income	11,223	9,604	27,438	40,415
Other income (expense):
Interest income	186	231	544	733
Interest expense	(687)	(768)	(2,160)	(2,346)
Other income (expense), net	(280)	42	218	103
Income before income taxes	10,442	9,109	26,040	38,905
Provision for income taxes	467	3,501	2,112	10,908
Net income	$ 9,975	$ 5,608	$ 23,928	$ 27,997
Earnings per share:
Basic (in dollars per share)	$ 0.24	$ 0.13	$ 0.56	$ 0.65
Diluted (in dollars per share)	$ 0.23	$ 0.13	$ 0.55	$ 0.64
Weighted-average common shares outstanding:
Basic (in shares)	42,331	43,112	42,522	43,218
Diluted (in shares)	42,795	43,815	43,135	44,030

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Condensed Consolidated Statements of Comprehensive Income
Net income	$ 9,975	$ 5,608	$ 23,928	$ 27,997
Net changes to available-for-sale securities
Unrealized gains (losses) arising during the period	154	417	(179)	889
Reclassification for gains included in net income			10
Net changes to cash flow hedges
Unrealized gains (losses) arising during the period	(459)	193	(1,035)	(434)
Reclassification for losses included in net income	165	142	376	428
Other comprehensive income (loss), before tax	(140)	752	(828)	883
Provision (benefit) for income taxes	(50)	263	(291)	309
Other comprehensive income (loss)	(90)	489	(537)	574
Comprehensive income	$ 9,885	$ 6,097	$ 23,391	$ 28,571

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014
Operating Activities
Net income	$ 23,928	$ 27,997
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation of property and equipment	9,293	9,512
Amortization of other intangible assets and other assets	21,686	13,090
Stock-based compensation expense	30,798	28,173
Income tax benefit from stock-based awards	1,727	413
Excess income tax benefit from stock-based awards	(2,118)	(654)
Deferred income taxes	1,571	3,894
Changes in operating assets and liabilities:
Accounts receivable	12,097	769
Inventories	2,259	(1,591)
Prepaid expenses and other assets	8,409	12,627
Accounts payable	(5,686)	5,074
Accrued expenses	(280)	28,756
Deferred income on shipments to distributors	(2,825)	6,215
Income taxes	(3,413)	(4,898)
Other non-current liabilities	(10,031)	(21,790)
Net cash provided by operating activities	87,415	107,587
Investing Activities
Purchases of available-for-sale investments	(55,433)	(137,373)
Proceeds from sales and maturities of available-for-sale investments	136,262	100,009
Purchases of property and equipment	(7,281)	(5,500)
Purchases of other assets	(5,291)	(3,339)
Acquisition of business, net of cash acquired	(76,899)
Net cash used in investing activities	(8,642)	(46,203)
Financing Activities
Proceeds from issuance of common stock, net of cash paid for withheld taxes	(77)	8,559
Excess income tax benefit from stock-based awards	2,118	654
Repurchases of common stock	(71,448)	(50,942)
Payment of acquisition-related contingent consideration	(4,464)
Proceeds from issuance of long-term debt, net	81,238
Payments on debt	(92,206)	(3,750)
Net cash used in financing activities	(84,839)	(45,479)
Increase (decrease) in cash and cash equivalents	(6,066)	15,905
Cash and cash equivalents at beginning of period	141,706	95,800
Cash and cash equivalents at end of period	$ 135,640	$ 111,705

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Oct. 03, 2015
Significant Accounting Policies
Significant Accounting Policies	1. Significant Accounting Policies Basis of Presentation and Principles of Consolidation The Condensed Consolidated Financial Statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments which, in the opinion of management, are necessary to present fairly the condensed consolidated financial position of Silicon Laboratories Inc. and its subsidiaries (collectively, the “Company”) at October 3, 2015 and January 3, 2015, the condensed consolidated results of its operations for the three and nine months ended October 3, 2015 and September 27, 2014, the Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended October 3, 2015 and September 27, 2014, and the Condensed Consolidated Statements of Cash Flows for the nine months ended October 3, 2015 and September 27, 2014. All intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated results of operations for the three and nine months ended October 3, 2015 are not necessarily indicative of the results to be expected for the full year. The accompanying unaudited Condensed Consolidated Financial Statements do not include certain footnotes and financial presentations normally required under U.S. generally accepted accounting principles (GAAP). Therefore, these Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto for the year ended January 3, 2015, included in the Company’s Form 10-K filed with the Securities and Exchange Commission (SEC) on February 6, 2015. The Company prepares financial statements on a 52-53 week year that ends on the Saturday closest to December 31. Reclassifications Certain reclassifications have been made to prior year financial statements to conform to current year presentation. Revenue Recognition Revenues are generated predominately by sales of the Company’s integrated circuits (ICs). The Company recognizes revenue when all of the following criteria are met: 1) there is persuasive evidence that an arrangement exists, 2) delivery of goods has occurred, 3) the sales price is fixed or determinable, and 4) collectibility is reasonably assured. Generally, revenue from product sales to direct customers and contract manufacturers is recognized upon shipment. A portion of the Company’s sales are made to distributors under agreements allowing certain rights of return and price protection related to the final selling price to the end customers. Accordingly, the Company defers revenue and cost of revenue on such sales until the distributors sell the product to the end customers. The net balance of deferred revenue less deferred cost of revenue associated with inventory shipped to a distributor but not yet sold to an end customer is recorded in the deferred income on shipments to distributors liability on the Consolidated Balance Sheet. Such net deferred income balance reflects the Company’s estimate of the impact of rights of return and price protection. A small portion of the Company’s revenues is derived from the sale of patents. The above revenue recognition criteria for patent sales are generally met upon the execution of the patent sale agreement. Recent Accounting Pronouncements In September 2015, the Financial Accounting Standards Board (FASB) issued FASB Accounting Standards Update (ASU) No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. In July 2015, the FASB issued FASB ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In April 2015, the FASB issued FASB ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. In May 2014, the FASB issued FASB ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date

Earnings Per Share

Earnings Per Share	9 Months Ended
	Oct. 03, 2015
Earnings Per Share
Earnings Per Share	2. Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, Net income $ 9,975 $ 5,608 $ 23,928 $ 27,997 Shares used in computing basic earnings per share 42,331 43,112 42,522 43,218 Effect of dilutive securities: Stock options and other stock-based awards 464 703 613 812 Shares used in computing diluted earnings per share 42,795 43,815 43,135 44,030 Earnings per share: Basic $ 0.24 $ 0.13 $ 0.56 $ 0.65 Diluted $ 0.23 $ 0.13 $ 0.55 $ 0.64 For the three months ended October 3, 2015 and September 27, 2014 and the nine months ended October 3, 2015 and September 27, 2014, approximately 0.1 million, 0.1 million, 0.1 million and 0.1 million shares, respectively, were not included in the diluted earnings per share calculation since the shares were anti-dilutive.

Cash, Cash Equivalents and Inve

Cash, Cash Equivalents and Investments	9 Months Ended
	Oct. 03, 2015
Cash, Cash Equivalents and Investments
Cash, Cash Equivalents and Investments	3. Cash, Cash Equivalents and Investments The Company’s cash equivalents and short-term investments as of October 3, 2015 consisted of municipal bonds, money market funds, variable-rate demand notes, certificates of deposit, international government bonds and corporate bonds. The Company’s long-term investments consisted of auction-rate securities. In fiscal 2008, auctions for many of the Company’s auction-rate securities failed because sell orders exceeded buy orders. As of October 3, 2015, the Company held $8.0 million par value auction-rate securities, all of which have experienced failed auctions. The underlying assets of the securities consisted of student loans and municipal bonds, of which $6.0 million were guaranteed by the U.S. government and the remaining $2.0 million were privately insured. As of October 3, 2015, $6.0 million of the auction-rate securities had credit ratings of AA and $2.0 million had a credit rating of A. These securities have contractual maturity dates ranging from 2033 to 2046 at October 3, 2015. The Company is receiving the underlying cash flows on all of its auction-rate securities. The principal amounts associated with failed auctions are not expected to be accessible until a successful auction occurs, the issuer redeems the securities, a buyer is found outside of the auction process or the underlying securities mature. The Company does not expect to need access to the capital represented by any of its auction-rate securities prior to their maturities. The Company does not intend to sell, and believes it is not more likely than not that it will be required to sell, its auction-rate securities before their anticipated recovery in market value or final settlement at the underlying par value. The Company believes that the credit ratings and credit support of the security issuers indicate that they have the ability to settle the securities at par value. As such, the Company has determined that no other-than-temporary impairment losses existed as of October 3, 2015. The Company’s cash, cash equivalents and investments consisted of the following (in thousands): October 3, 2015 Cost Gross Gross Fair Value Cash and Cash Equivalents: Cash on hand $ 68,421 $ — $ — $ 68,421 Available-for-sale securities: Money market funds 63,316 — — 63,316 Certificates of deposit 3,903 — — 3,903 Total available-for-sale securities 67,219 — — 67,219 Total cash and cash equivalents $ 135,640 $ — $ — $ 135,640 Short-term Investments: Available-for-sale securities: Municipal bonds $ 98,605 $ (10 ) $ 146 $ 98,741 Variable-rate demand notes 9,495 — — 9,495 International government bonds 2,234 — 1 2,235 Corporate bonds 2,202 (3 ) — 2,199 Total short-term investments $ 112,536 $ (13 ) $ 147 $ 112,670 Long-term Investments: Available-for-sale securities: Auction rate securities $ 8,000 $ (760 ) $ — $ 7,240 Total long-term investments $ 8,000 $ (760 ) $ — $ 7,240 January 3, 2015 Cost Gross Gross Fair Value Cash and Cash Equivalents: Cash on hand $ 52,144 $ — $ — $ 52,144 Available-for-sale securities: Money market funds 71,415 — — 71,415 Certificates of deposit 7,739 — — 7,739 Commercial paper 5,348 — — 5,348 Municipal bonds 1,756 — 1 1,757 U.S. government agency 1,202 — — 1,202 Corporate bonds 1,101 — — 1,101 U.S. government bonds 1,000 — — 1,000 Total available-for-sale securities 89,561 — 1 89,562 Total cash and cash equivalents $ 141,705 $ — $ 1 $ 141,706 Short-term Investments: Available-for-sale securities: Municipal bonds $ 129,005 $ (25 ) $ 172 $ 129,152 Corporate bonds 33,043 (35 ) 25 33,033 Variable-rate demand notes 12,915 — — 12,915 Commercial paper 8,995 — — 8,995 Asset-backed securities 5,380 (3 ) — 5,377 International government bonds 2,526 (10 ) — 2,516 U.S. government bonds 650 — — 650 U.S. government agency 601 — — 601 Certificates of deposit 250 — — 250 Total short-term investments $ 193,365 $ (73 ) $ 197 $ 193,489 Long-term Investments: Available-for-sale securities: Auction rate securities $ 8,000 $ (581 ) $ — $ 7,419 Total long-term investments $ 8,000 $ (581 ) $ — $ 7,419 The available-for-sale investments that were in a continuous unrealized loss position, aggregated by length of time that individual securities have been in a continuous loss position, were as follows (in thousands): Less Than 12 Months 12 Months or Greater Total As of October 3, 2015 Fair Gross Fair Gross Fair Gross Municipal bonds $ 8,274 $ (10 ) $ — $ — $ 8,274 $ (10 ) Auction rate securities — — 7,240 (760 ) 7,240 (760 ) International government bonds 2,199 (3 ) — — 2,199 (3 ) $ 10,473 $ (13 ) $ 7,240 $ (760 ) $ 17,713 $ (773 ) Less Than 12 Months 12 Months or Greater Total As of January 3, 2015 Fair Gross Fair Gross Fair Gross Municipal bonds $ 23,735 $ (25 ) $ — $ — $ 23,735 $ (25 ) Corporate bonds 20,327 (35 ) — — 20,327 (35 ) Auction rate securities — — 7,419 (581 ) 7,419 (581 ) Asset-backed securities 5,080 (3 ) — — 5,080 (3 ) International government bond 2,516 (10 ) — — 2,516 (10 ) $ 51,658 $ (73 ) $ 7,419 $ (581 ) $ 59,077 $ (654 ) The gross unrealized losses as of October 3, 2015 and January 3, 2015 were due primarily to the illiquidity of the Company’s auction-rate securities and, to a lesser extent, to changes in market interest rates. The following summarizes the contractual underlying maturities of the Company’s Cost Fair Due in one year or less $ 139,704 $ 139,779 Due after one year through ten years 33,136 33,195 Due after ten years 14,915 14,155 $ 187,755 $ 187,129

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Oct. 03, 2015
Derivative Financial Instruments
Derivative Financial Instruments	4. Derivative Financial Instruments The Company uses derivative financial instruments to manage certain exposures to the variability of interest rates and foreign currency exchange rates. The Company’s objective is to offset increases and decreases in expenses resulting from these exposures with gains and losses on the derivative contracts, thereby reducing volatility of earnings. Interest Rate Swaps The Company is exposed to interest rate fluctuations in the normal course of its business, including through its Credit Facilities. The interest payments on the facility are calculated using a variable-rate of interest. The Company has entered into an interest rate swap agreement with an original notional value of $100 million (equal to the full amount borrowed under the Credit Facilities) and, effectively, converted the Eurodollar portion of the variable-rate interest payments to fixed-rate interest payments through July 2017. The Company’s interest rate swap agreement is designated and qualifies as a cash flow hedge. The Company estimates the fair values of The Company measures the effectiveness of its cash flow hedge by comparing the change in fair value of the hedged variable interest payments with the change in fair value of the interest rate swap. The Company recognizes ineffective portions of the hedge, as well as amounts not included in the assessment of effectiveness, in the Consolidated Statement of Income. As of October 3, 2015, no portion of the gains or losses from the Company’s hedging instrument was excluded from the assessment of effectiveness. Hedge ineffectiveness was not material for any of the periods presented. The Company’s derivative financial instrument in cash flow hedging relationships consisted of the following (in thousands): Fair Value Balance Sheet Location October 3, January 3, Interest rate swap Other assets, net $ — $ 331 Other non-current liabilities 329 — The before-tax effect of derivative instruments in cash flow hedging relationships was as follows (in thousands): Gain (Loss) Recognized in Location of Loss Loss Reclassified Three Months Ended Three Months Ended October 3, September 27, October 3, September 27, Interest rate swaps $ (459 ) $ 193 Interest expense $ (165 ) $ (142 ) Nine Months Ended Nine Months Ended October 3, September 27, October 3, September 27, Interest rate swaps $ (1,035 ) $ (434 ) Interest expense $ (376 ) $ (428 ) The Company expects to reclassify $0.3 million of its interest rate swap losses included in accumulated other comprehensive loss as of October 3, 2015 into earnings in the next 12 months, which would be offset by lower interest payments. Foreign Currency Forward Contracts The Company uses foreign currency forward contracts to manage exposure to foreign exchange risk. These instruments are used to reduce the earnings impact that exchange rate fluctuations have on non-U.S. dollar balance sheet exposures. The Company recognizes gains and losses on the foreign currency forward contracts in other income (expense), net in the Consolidated Statement of Income in the same period as the remeasurement loss and gain of the related foreign currency denominated asset or liability. The Company does not apply hedge accounting to its foreign currency derivative instruments. As of October 3, 2015, the Company held one foreign currency forward contract denominated in Norwegian Krone with a notional value of $5.3 million. The fair value of the contract was not material as of October 3, 2015. The contract has a maturity date of December 30, 2015 and it was not designated as a hedging instrument. The Company held no foreign currency forward contracts during the three and nine months ended September 27, 2014. The before-tax effect of derivative instruments not designated as hedging instruments was as follows (in thousands): Three Months Ended Nine Months Ended Gain (Loss) Recognized in Income October 3, September 27, October 3, September 27, Location Foreign currency forward contracts $ 379 $ — $ 825 $ — Other income (expense), net

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Oct. 03, 2015
Fair Value of Financial Instruments
Fair Value of Financial Instruments	5. Fair Value of Financial Instruments The fair values of the Company’s financial instruments are recorded using a hierarchal disclosure framework based upon the level of subjectivity of the inputs used in measuring assets and liabilities. The three levels are described below: Level 1 - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 - Inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 - Inputs are unobservable for the asset or liability and are developed based on the best information available in the circumstances, which might include the Company’s own data. The following summarizes the valuation of the Company’s financial instruments (in thousands). The tables do not include either cash on hand or assets and liabilities that are measured at historical cost or any basis other than fair value. Fair Value Measurements Description Quoted Prices in Significant Other Significant Total Assets: Cash Equivalents: Money market funds $ 63,316 $ — $ — $ 63,316 Certificates of deposit — 3,903 — 3,903 Total cash equivalents $ 63,316 $ 3,903 $ — $ 67,219 Short-term Investments: Municipal bonds $ — $ 98,741 $ — $ 98,741 Variable-rate demand notes — 9,495 — 9,495 International government bonds — 2,235 — 2,235 Corporate bonds — 2,199 — 2,199 Total short-term investments $ — $ 112,670 $ — $ 112,670 Long-term Investments: Auction rate securities $ — $ — $ 7,240 $ 7,240 Total long-term investments $ — $ — $ 7,240 $ 7,240 Total $ 63,316 $ 116,573 $ 7,240 $ 187,129 Liabilities: Accrued expenses: Contingent consideration $ — $ — $ 4,070 $ 4,070 Other non-current liabilities: Contingent consideration $ — $ — $ 9,192 $ 9,192 Derivative instruments — 329 — 329 $ — $ 329 $ 9,192 $ 9,521 Total $ — $ 329 $ 13,262 $ 13,591 Fair Value Measurements Description Quoted Prices in Significant Other Significant Total Assets: Cash Equivalents: Money market funds $ 71,415 $ — $ — $ 71,415 Certificates of deposit — 7,739 — 7,739 Commercial paper — 5,348 — 5,348 Municipal bonds — 1,757 — 1,757 U.S. government agency — 1,202 — 1,202 Corporate bonds — 1,101 — 1,101 U.S. government bonds 1,000 — — 1,000 Total cash equivalents $ 72,415 $ 17,147 $ — $ 89,562 Short-term Investments: Municipal bonds $ — $ 129,152 $ — $ 129,152 Corporate bonds — 33,033 — 33,033 Variable-rate demand notes — 12,915 — 12,915 Commercial paper — 8,995 — 8,995 Asset-backed securities — 5,377 — 5,377 International government bonds — 2,516 — 2,516 U.S. government bond 650 — — 650 U.S. government agency — 601 — 601 Certificates of deposit — 250 — 250 Total short-term investments $ 650 $ 192,839 $ — $ 193,489 Long-term Investments: Auction rate securities $ — $ — $ 7,419 $ 7,419 Total long-term investments $ — $ — $ 7,419 $ 7,419 Other assets, net: Derivative instruments $ — $ 331 $ — $ 331 Total $ — $ 331 $ — $ 331 Total $ 73,065 $ 210,317 $ 7,419 $ 290,801 Liabilities: Accrued expenses: Contingent consideration $ — $ — $ 4,288 $ 4,288 Other non-current liabilities: Contingent consideration $ — $ — $ 14,150 $ 14,150 Total $ — $ — $ 18,438 $ 18,438 The Company’s cash equivalents and short-term investments that are classified as Level 1 are valued using quoted prices and other relevant information generated by market transactions involving identical assets. Cash equivalents and short-term investments classified as Level 2 are valued using non-binding market consensus prices that are corroborated with observable market data; quoted market prices for similar instruments in active markets; or pricing models, such as a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data. Investments classified as Level 3 are valued using a discounted cash flow model. The assumptions used in preparing the discounted cash flow model include estimates for interest rates, amount of cash flows, expected holding periods of the securities and a discount to reflect the Company’s inability to liquidate the securities. The Company’s derivative instruments are valued using discounted cash flow models. The assumptions used in preparing the valuation models include quoted interest swap rates, foreign exchange rates, forward and spot prices for currencies, and market observable data of similar instruments. The Company’s contingent consideration is valued using a Monte Carlo simulation model or a probability weighted discounted cash flow model. The assumptions used in preparing the Monte Carlo simulation model include estimates for revenue growth rates, revenue volatility, contractual terms and discount rates. The assumptions used in preparing the discounted cash flow model include estimates for outcomes if milestone goals are achieved, the probability of achieving each outcome and discount rates. The following summarizes quantitative information about Level 3 fair value measurements. Auction rate securities Fair Value at Valuation Technique Unobservable Input Weighted Average $ 7,240 Discounted cash flow Estimated yield 1.04% Expected holding period 10 years Estimated discount rate 3.46% The Company has followed an established internal control procedure used in valuing auction rate securities. The procedure involves the analysis of valuation techniques and evaluation of unobservable inputs commonly used by market participants to price similar instruments, and which have been demonstrated to provide reasonable estimates of prices obtained in actual market transactions. Outputs from the valuation process are assessed against various market sources when they are available, including marketplace quotes, recent trades of similar illiquid securities, benchmark indices and independent pricing services. The technique and unobservable input parameters may be recalibrated periodically to achieve an appropriate estimation of the fair value of the securities. Significant changes in any of the unobservable inputs used in the fair value measurement of auction rate securities in isolation could result in a significantly lower or higher fair value measurement. An increase in expected yield would result in a higher fair value measurement, whereas an increase in expected holding period or estimated discount rate would result in a lower fair value measurement. Generally, a change in the assumptions used for expected holding period is accompanied by a directionally similar change in the assumptions used for estimated yield and discount rate. Contingent consideration Fair Value at Valuation Technique Unobservable Input Range $ 13,262 Monte Carlo simulation Expected revenue growth rate 38.6% – 47.0% Expected revenue volatility 20.0% Expected term 0.3 years – 3.3 years Estimated discount rate 0.34% – 1.44% The Company has followed an established internal control procedure used in valuing contingent consideration. The valuation of contingent consideration for the Energy Micro acquisition is based on a Monte Carlo simulation model. The fair value of this valuation is estimated on a quarterly basis through a collaborative effort by the Company’s sales, marketing and finance departments. Significant changes in any of the unobservable inputs used in the fair value measurement of contingent consideration in isolation could result in a significantly lower or higher fair value. A change in projected revenue growth rates would be accompanied by a directionally similar change in fair value. The following summarizes the activity in Level 3 financial instruments for the three and nine months ended October 3, 2015 (in thousands): Assets Auction Rate Securities Three Months Nine Months Beginning balance $ 7,179 $ 7,419 Gain (loss) included in other comprehensive income (loss) 61 (179 ) Balance at October 3, 2015 $ 7,240 $ 7,240 Liabilities Contingent Consideration (1) Three Months Nine Months Beginning balance $ 15,092 $ 18,438 Settlements — (4,464 ) Gain recognized in earnings (2) (1,830 ) (712 ) Balance at October 3, 2015 $ 13,262 $ 13,262 Net gain for the period included in earnings attributable to contingent consideration held at the end of the period: $ 1,830 $ 712 (1) (2) Fair values of other financial instruments The Company’s debt under the Credit Facilities bears interest at the Eurodollar rate plus an applicable margin. The Credit Facilities are recorded at cost, but are measured at fair value for disclosure purposes. Fair value is estimated based on Level 2 inputs, using a discounted cash flow analysis of future principal payments and projected interest based on current market rates. As of October 3, 2015 and January 3, 2015, the fair value of the Company’s debt under the Credit Facilities was approximately $80.0 million and $87.4 million, respectively. The Company’s other financial instruments, including cash, accounts receivable and accounts payable, are recorded at amounts that approximate their fair values due to their short maturities.

Balance Sheet Details

Balance Sheet Details	9 Months Ended
	Oct. 03, 2015
Balance Sheet Details
Balance Sheet Details	6. Balance Sheet Details The following shows the details of selected Condensed Consolidated Balance Sheet items (in thousands): Inventories October 3, January 3, Work in progress $ 38,107 $ 40,640 Finished goods 13,850 11,991 $ 51,957 $ 52,631

Acquisitions

Acquisitions	9 Months Ended
	Oct. 03, 2015
Acquisitions
Acquisitions	7. Bluegiga On January 30, 2015, the Company acquired The Company acquired Bluegiga The Company believes that this strategic acquisition will accelerate its entry into the wireless module market Amount Weighted-Average Intangible assets: In-process research and development $ 5,710 Not amortized Developed technology 12,190 8 Customer relationships 6,670 4 Trademarks 880 3 25,450 Cash and cash equivalents 1,132 Other current assets 6,156 Goodwill 35,145 Other non-current assets 208 Current liabilities (3,289 ) Non-current deferred tax liabilities, net (4,328 ) Long-term debt (2,232 ) Other non-current liabilities (220 ) Total purchase price $ 58,022 The allocation of the purchase price is preliminary and subject to change, based on the finalization of income tax matters. Accordingly, adjustments may be made to the values of the assets acquired and liabilities assumed as additional information is obtained about the facts and circumstances that existed at the valuation date. In-process research and development (IPR&D) represents acquired technology that had not achieved technological feasibility as of the acquisition date and had no alternative future use. The IPR&D recorded in connection with the acquisition of Bluegiga consisted primarily of Bluetooth Smart Ready and Bluetooth Smart modules and software stacks. The fair value of these technologies was determined using the income approach. The discount rate applicable to the cash flows was 16.1%. The significant risks associated with the projects include the Company’s potential inability to produce working models and the final products gaining customer acceptance. Pro forma information related to this acquisition has not been presented because it would not be materially different from amounts reported. The Company recorded approximately $1.2 million of acquisition-related costs in selling, general and administrative expenses during the nine months ended October 3, 2015. Energy Micro On July 1, 2013, the Company acquired Energy Micro AS for approximately $140.6 million, including: 1) Initial consideration of $107.4 million; 2) Deferred consideration with an estimated fair value of $19.2 million at the date of acquisition; and 3) Contingent consideration (the “Earn-Out”) with an estimated fair value of $14.0 million at the date of acquisition. The Earn-Out is payable on an annual basis over a five-year period from fiscal 2014 through 2018 (the “Earn-Out Period”) and in no event shall exceed $6,666,666 per year, unless revenue from the Earn-Out Products exceeds $400 million in a single fiscal year during the Earn-Out Period (in which case, the entire Earn-Out amount less any amounts previously paid will become payable). Approximately $20.3 million of the initial consideration was withheld by the Company as security for breaches of representations and warranties and certain other expressly enumerated matters (the “Holdback”). A portion of the Earn-Out (28.76%) is contingent on the continued employment of certain key employees for the three years following the acquisition date (the “Departure Percentage”). The Departure Percentage was accounted for as a transaction separate from the business combination based on its economic substance and will be recorded as post-combination compensation expense in the Company’s financial statements during the Earn-Out period. In the first quarter of 2015, the Company made the following payments in connection with the acquisition: (a) approximately $20.0 million was paid for the release of the Holdback; and (b) approximately $6.3 million was paid for the first annual period of the Earn-out. Approximately $1.8 million of the Earn-out payment represented the Departure Percentage portion and was recorded as compensation expense during fiscal 2014. The remaining approximately $4.5 million of the Earn-out payment represented additional consideration.

Debt

Debt	9 Months Ended
	Oct. 03, 2015
Debt
Debt	8. Debt On July 31, 2012, the Company and certain of its domestic subsidiaries (the “Guarantors”) entered into a $230 million five-year Credit Agreement (the “Credit Agreement”), which consisted of a $100 million Term Loan Facility and a $130 million Revolving Credit Facility (collectively, the “Credit Facilities”). On July 24, 2015, the Company and the Guarantors amended the Credit Agreement (the “Amended Credit Agreement”) in order to, among other things, increase the borrowing capacity under the Revolving Credit Facility to $300 million, eliminate the Term Loan Facility and extend the maturity date to five years from the closing date. On July 24, 2015, the Company borrowed $82.5 million under the Amended Credit Agreement and paid off the remaining balance of its Term Loan Facility. The Amended Credit Agreement includes a $25 million letter of credit sublimit and a $10 million swingline loan sublimit. The Company also has an option to increase the size of the borrowing capacity by up to an aggregate of $200 million in additional commitments, subject to certain conditions. The Revolving Credit Facility, other than swingline loans, will bear interest at the Eurodollar rate plus an applicable margin or, at the option of the Company, a base rate (defined as the highest of the Wells Fargo prime rate, the Federal Funds rate plus 0.50% and the Eurodollar Base Rate plus 1.00%) plus an applicable margin. Swingline loans accrue interest at the base rate plus the applicable margin for base rate loans. The applicable margins for the Eurodollar rate loans range from 1.25% to 2.00% and for base rate loans range from 0.25% to 1.00%, depending in each case, on the leverage ratio as defined in the Agreement. The Amended Credit Agreement contains various conditions, covenants and representations with which the Company must be in compliance in order to borrow funds and to avoid an event of default, including financial covenants that the Company must maintain a leverage ratio (funded debt/EBITDA) of no more than 3.00 to 1 and a minimum fixed charge coverage ratio (EBITDA/interest payments, income taxes and capital expenditures) of no less than 1.25 to 1. As of October 3, 2015, the Company was in compliance with all covenants of the The Company assumed $2.2 million of debt in connection with its acquisition of Bluegiga. The debt instruments bear interest at rates between 1.0% and 3.0%. On September 25, 2015, the Company paid off the remaining balance of the acquired debt. Interest Rate Swap Agreement In connection with the $100 million borrowed under the Credit Facilities, the Company entered into an interest rate swap agreement as a hedge against the Eurodollar portion of such variable interest payments. Under the terms of the swap agreement, the Company effectively converted the Eurodollar portion of the interest on the Credit Facilities to a fixed interest rate of 0.764% through July 2017. As of October 3, 2015, the combined interest rate of the Credit Facilities (which includes an applicable margin) and the interest rate swap was 2.264%. See Note 4, Derivative Financial Instruments

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Oct. 03, 2015
Stockholders' Equity
Stockholders' Equity	9. Stockholders’ Equity Common Stock The Company issued 1.0 million shares of common stock during the nine months ended October 3, 2015. Share Repurchase Programs The Board of Directors authorized the following share repurchase programs (in thousands): Program Program Program August 2015 December 2016 $ 100,000 October 2014 December 2015 $ 100,000 January 2014 January 2015 $ 100,000 January 2013 January 2014 $ 50,000 These programs allow for repurchases to be made in the open market or in private transactions, including structured or accelerated transactions, subject to applicable legal requirements and market conditions. The Company repurchased 1.6 million shares of its common stock for $71.4 million during the nine months ended Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of taxes, were as follows (in thousands): Unrealized Gain Net Unrealized Losses Total Balance at January 3, 2015 $ 215 $ (297 ) $ (82 ) Other comprehensive loss before reclassifications (672 ) (116 ) (788 ) Amount reclassified from accumulated other comprehensive loss 245 6 251 Net change for the period (427 ) (110 ) (537 ) Balance at October 3, 2015 $ (212 ) $ (407 ) $ (619 ) Reclassifications From Accumulated Other Comprehensive Loss Three Months Ended Nine Months Ended Reclassification (in thousands) October 3, September 27, October 3, September 27, Losses on cash flow hedges to: Interest expense $ (165 ) $ (142 ) $ (376 ) $ (428 ) Losses on available-for-sale securities to: Interest income — — (10 ) — (165 ) (142 ) (386 ) (428 ) Income tax benefit 58 50 135 150 Total reclassifications $ (107 ) $ (92 ) $ (251 ) $ (278 )

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Oct. 03, 2015
Stock-Based Compensation
Stock-Based Compensation	10. Stock-Based Compensation In fiscal 2009, the stockholders of the Company approved the 2009 Stock Incentive Plan (the “2009 Plan”) and the 2009 Employee Stock Purchase Plan (the “2009 Purchase Plan”). In fiscal 2014, the stockholders of the Company approved amendments to both the 2009 Plan and the 2009 Purchase Plan. The amendments authorized additional shares of common stock for issuance, to comply with changes in applicable law, improve the Company’s corporate governance and to implement other best practices. The amended plans are currently effective. Stock-based compensation costs are based on the fair values on the date of grant for stock options and on the date of enrollment for the employee stock purchase plans, estimated by using the Black-Scholes option-pricing model. The fair values of stock awards and restricted stock units (RSUs) equal their intrinsic value on the date of grant. The fair values of market stock units (MSUs) generally are estimated using a Monte Carlo simulation based on the date of grant. The following table presents details of stock-based compensation costs recognized in the Condensed Consolidated Statements of Income (in thousands): Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, Cost of revenues $ 249 $ 201 $ 708 $ 574 Research and development 4,623 4,713 14,378 13,282 Selling, general and administrative 4,350 4,700 15,712 14,317 9,222 9,614 30,798 28,173 Income tax benefit 1,089 1,158 3,575 3,056 $ 8,133 $ 8,456 $ 27,223 $ 25,117 The Company had approximately $55.3 million of total unrecognized compensation costs related to granted stock awards as of October 3, 2015 that are expected to be recognized over a weighted-average period of approximately 2.0 years. There were no significant stock-based compensation costs capitalized into assets in any of the periods presented.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Oct. 03, 2015
Commitments and Contingencies
Commitments and Contingencies	11. Commitments and Contingencies Patent Litigation On January 21, 2014, Cresta Technology Corporation (“Cresta Technology”), a Delaware corporation, filed a lawsuit against the Company, Samsung Electronics Co., Ltd., Samsung Electronics America, Inc., LG Electronics Inc. and LG Electronics U.S.A., Inc. in the United States District Court in the District of Delaware, alleging infringement of United States Patent Nos. 7,075,585, 7,265,792 and 7,251,466. The lawsuit relates to the Company’s family of television tuner products. Cresta Technology seeks unspecified compensatory and enhanced damages, attorney fees and a permanent injunction. On January 28, 2014, Cresta Technology also filed a complaint with the United States International Trade Commission (“ITC”) alleging infringement of the same patents against the Company, Samsung and LG Electronics and seeking to prevent the importation and sale of allegedly infringing products in the United States. The ITC instituted an investigation based on Cresta Technology’s complaint on February 27, 2014. The Delaware District Court action has been stayed pending completion of the proceedings in the ITC. The Company intends to vigorously defend against these allegations. An evidentiary hearing in this ITC Investigation concluded on December 5, 2014. The ITC Administrative Law Judge (“ALJ”) issued an Initial Determination on February 27, 2015, finding that all the patent claims asserted against the Company’s products were either invalid or not infringed. The ALJ also found that Cresta Technology failed to establish the ITC’s domestic industry requirement. Accordingly, the ALJ found no violation by the Company. On September 29, 2015, the ITC issued its Final Determination, finding that all the patent claims asserted against the Company’s products were either invalid or not infringed and that Cresta Technology failed to establish the ITC’s domestic industry requirement. Accordingly, the ITC found no violation by the Company and terminated the Investigation. On May 6, 2014, the Company filed a complaint with the ITC alleging infringement of United States Patent Nos. 6,137,372 and 6,233,441 against Cresta Technology, Hauppauge Digital, Inc., Hauppague Computer Works, Inc., PCTV Systems, S.a.r.l., Luxembourg and PCTV Systems S.a.r.l., seeking to prevent the importation and sale of allegedly infringing products in the United States. On July 1, 2014, the Administrative Law Judge accepted a consent order whereby Cresta Technology will not sell for importation, import or sell in the United States television tuners that infringe the Company’s United States Patent Nos. 6,137,372 and 6,233,441. Accordingly, this ITC investigation has been terminated in its entirety. On July 16, 2014, the Company filed a lawsuit against Cresta Technology in the United States District Court in the Northern District of California alleging infringement of United States Patent Nos. 6,308,055, 6,304,146, 6,137,372, 6,233,441, 6,965,761 and 7,353,011. The Company is seeking a permanent injunction stopping the sale of all allegedly infringing Cresta Technology products and an award of damages and attorney fees. As is customary in the semiconductor industry, the Company provides indemnification protection to its customers for intellectual property claims related to the Company’s products. The Company has not accrued any material liability on its consolidated balance sheet related to such indemnification obligations in connection with the Cresta Technology litigation. At this time, the Company cannot predict the outcome of these matters or the resulting financial impact to it, if any. Other The Company is involved in various other legal proceedings that have arisen in the normal course of business. While the ultimate results of these matters cannot be predicted with certainty, the Company does not expect them to have a material adverse effect on its consolidated financial statements.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Oct. 03, 2015
Related Party Transactions
Related Party Transactions	12. Related Party Transactions On July 1, 2013, Geir Førre joined the Company as senior vice president. Mr. Førre was chief executive officer of Energy Micro, until it was acquired by the Company. Mr. Førre was the beneficial owner of approximately 30% of the Energy Micro equity and accordingly received approximately $35 million at closing. In the first quarter of 2015, Mr. Førre received approximately $6.1 million of the $20.0 million paid for the holdback related to potential indemnification claims and approximately $1.9 million of the $6.3 million paid for the fiscal 2014 earn-out. Mr. Førre may receive up to approximately $8.1 million of the remaining potential $26.7 million earn-out for fiscal 2015 through 2018. On October 17, 2013, the Company appointed Alf-Egil Bogen to its board of directors. Mr. Bogen was chief marketing officer of Energy Micro, until it was acquired by the Company. Mr. Bogen was the beneficial owner of approximately 2% of the Energy Micro equity and accordingly received approximately $0.9 million at closing. In the first quarter of 2015, Mr. Bogen received approximately $0.4 million of the $20.0 million paid for the holdback related to potential indemnification claims and approximately $0.1 million of the $6.3 million paid for the fiscal 2014 earn-out. Mr. Bogen may receive up to approximately $0.5 million of the remaining potential $26.7 million earn-out for fiscal 2015 through 2018. Mr. Bogen had invested approximately $0.8 million in Energy Micro prior to the acquisition.

Income Taxes

Income Taxes	9 Months Ended
	Oct. 03, 2015
Income Taxes
Income Taxes	13. Income Taxes Provision for income taxes includes both domestic and foreign income taxes at the applicable statutory rates adjusted for non-deductible expenses, research and development tax credits and other permanent differences. Income tax expense was $0.5 million and $3.5 million for the three months ended October 3, 2015 and September 27, 2014, resulting in effective tax rates of 4.5% and 38.4%, respectively. Income tax expense was $2.1 million and $10.9 million for the nine months ended October 3, 2015 and September 27, 2014, resulting in effective tax rates of 8.1% and 28.0%, respectively. The effective tax rate for both the three months and nine months ended October 3, 2015 decreased from the prior periods, primarily due to an increase in the foreign tax rate benefit in the current periods resulting from the completion of payments related to an intercompany licensing transaction. For the three months ended October 3, 2015 the effective tax rate was further decreased by a decrease in the current period of nondeductible costs related to the Energy Micro acquisition. For the nine months ended October 3, 2015, the decrease in the effective tax rate was partially offset by the release during the prior period of unrecognized tax benefits related to an uncertain tax position that was closed by statute. At October 3, 2015, the Company had gross unrecognized tax benefits of $3.7 million, all of which would affect the effective tax rate if recognized. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. The Company believes it is reasonably possible that the gross unrecognized tax benefits will decrease by approximately $0.9 million in the next 12 months due to the lapse of the statute of limitations applicable to tax deductions and tax credits claimed on prior year tax returns. On July 27, 2015, in Altera Corp. v. Commissioner, the U.S. Tax Court issued an opinion related to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. A final decision has yet to be issued by the Tax Court due to other outstanding issues related to the case. At this time, the U.S. Department of the Treasury has not withdrawn the requirement to include stock-based compensation from its regulations. The Company has reviewed this case and its impact and has concluded that no adjustment to the condensed consolidated financial statements is appropriate at this time. The Company will continue to monitor ongoing developments and potential impacts to the condensed consolidated financial statements. The tax years 2010 through 2015 remain open to examination by the major taxing jurisdictions to which the Company is subject. The Company is not currently under audit in any major taxing jurisdiction.

Significant Accounting Polici20

Significant Accounting Policies (Policies)	9 Months Ended
	Oct. 03, 2015
Significant Accounting Policies
Reclassifications	Reclassifications Certain reclassifications have been made to prior year financial statements to conform to current year presentation.
Revenue Recognition	Revenue Recognition Revenues are generated predominately by sales of the Company’s integrated circuits (ICs). The Company recognizes revenue when all of the following criteria are met: 1) there is persuasive evidence that an arrangement exists, 2) delivery of goods has occurred, 3) the sales price is fixed or determinable, and 4) collectibility is reasonably assured. Generally, revenue from product sales to direct customers and contract manufacturers is recognized upon shipment. A portion of the Company’s sales are made to distributors under agreements allowing certain rights of return and price protection related to the final selling price to the end customers. Accordingly, the Company defers revenue and cost of revenue on such sales until the distributors sell the product to the end customers. The net balance of deferred revenue less deferred cost of revenue associated with inventory shipped to a distributor but not yet sold to an end customer is recorded in the deferred income on shipments to distributors liability on the Consolidated Balance Sheet. Such net deferred income balance reflects the Company’s estimate of the impact of rights of return and price protection. A small portion of the Company’s revenues is derived from the sale of patents. The above revenue recognition criteria for patent sales are generally met upon the execution of the patent sale agreement.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Oct. 03, 2015
Earnings Per Share
Schedule of computation of basic and diluted earnings per share	The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, Net income $ 9,975 $ 5,608 $ 23,928 $ 27,997 Shares used in computing basic earnings per share 42,331 43,112 42,522 43,218 Effect of dilutive securities: Stock options and other stock-based awards 464 703 613 812 Shares used in computing diluted earnings per share 42,795 43,815 43,135 44,030 Earnings per share: Basic $ 0.24 $ 0.13 $ 0.56 $ 0.65 Diluted $ 0.23 $ 0.13 $ 0.55 $ 0.64

Cash, Cash Equivalents and In22

Cash, Cash Equivalents and Investments (Tables)	9 Months Ended
	Oct. 03, 2015
Cash, Cash Equivalents and Investments
Schedule of cash, cash equivalents, and investments	The Company’s cash, cash equivalents and investments consisted of the following (in thousands): October 3, 2015 Cost Gross Gross Fair Value Cash and Cash Equivalents: Cash on hand $ 68,421 $ — $ — $ 68,421 Available-for-sale securities: Money market funds 63,316 — — 63,316 Certificates of deposit 3,903 — — 3,903 Total available-for-sale securities 67,219 — — 67,219 Total cash and cash equivalents $ 135,640 $ — $ — $ 135,640 Short-term Investments: Available-for-sale securities: Municipal bonds $ 98,605 $ (10 ) $ 146 $ 98,741 Variable-rate demand notes 9,495 — — 9,495 International government bonds 2,234 — 1 2,235 Corporate bonds 2,202 (3 ) — 2,199 Total short-term investments $ 112,536 $ (13 ) $ 147 $ 112,670 Long-term Investments: Available-for-sale securities: Auction rate securities $ 8,000 $ (760 ) $ — $ 7,240 Total long-term investments $ 8,000 $ (760 ) $ — $ 7,240 January 3, 2015 Cost Gross Gross Fair Value Cash and Cash Equivalents: Cash on hand $ 52,144 $ — $ — $ 52,144 Available-for-sale securities: Money market funds 71,415 — — 71,415 Certificates of deposit 7,739 — — 7,739 Commercial paper 5,348 — — 5,348 Municipal bonds 1,756 — 1 1,757 U.S. government agency 1,202 — — 1,202 Corporate bonds 1,101 — — 1,101 U.S. government bonds 1,000 — — 1,000 Total available-for-sale securities 89,561 — 1 89,562 Total cash and cash equivalents $ 141,705 $ — $ 1 $ 141,706 Short-term Investments: Available-for-sale securities: Municipal bonds $ 129,005 $ (25 ) $ 172 $ 129,152 Corporate bonds 33,043 (35 ) 25 33,033 Variable-rate demand notes 12,915 — — 12,915 Commercial paper 8,995 — — 8,995 Asset-backed securities 5,380 (3 ) — 5,377 International government bonds 2,526 (10 ) — 2,516 U.S. government bonds 650 — — 650 U.S. government agency 601 — — 601 Certificates of deposit 250 — — 250 Total short-term investments $ 193,365 $ (73 ) $ 197 $ 193,489 Long-term Investments: Available-for-sale securities: Auction rate securities $ 8,000 $ (581 ) $ — $ 7,419 Total long-term investments $ 8,000 $ (581 ) $ — $ 7,419
Schedule of available-for-sale investments in continuous unrealized loss position by length of time	The available-for-sale investments that were in a continuous unrealized loss position, aggregated by length of time that individual securities have been in a continuous loss position, were as follows (in thousands): Less Than 12 Months 12 Months or Greater Total As of October 3, 2015 Fair Gross Fair Gross Fair Gross Municipal bonds $ 8,274 $ (10 ) $ — $ — $ 8,274 $ (10 ) Auction rate securities — — 7,240 (760 ) 7,240 (760 ) International government bonds 2,199 (3 ) — — 2,199 (3 ) $ 10,473 $ (13 ) $ 7,240 $ (760 ) $ 17,713 $ (773 ) Less Than 12 Months 12 Months or Greater Total As of January 3, 2015 Fair Gross Fair Gross Fair Gross Municipal bonds $ 23,735 $ (25 ) $ — $ — $ 23,735 $ (25 ) Corporate bonds 20,327 (35 ) — — 20,327 (35 ) Auction rate securities — — 7,419 (581 ) 7,419 (581 ) Asset-backed securities 5,080 (3 ) — — 5,080 (3 ) International government bond 2,516 (10 ) — — 2,516 (10 ) $ 51,658 $ (73 ) $ 7,419 $ (581 ) $ 59,077 $ (654 )
Summarization of contractual underlying maturities of available-for-sale investments	The following summarizes the contractual underlying maturities of the Company’s Cost Fair Due in one year or less $ 139,704 $ 139,779 Due after one year through ten years 33,136 33,195 Due after ten years 14,915 14,155 $ 187,755 $ 187,129

Derivative Financial Instrume23

Derivative Financial Instruments (Tables)	9 Months Ended
	Oct. 03, 2015
Derivative Financial Instruments
Schedule of derivative financial instrument	The Company’s derivative financial instrument in cash flow hedging relationships consisted of the following (in thousands): Fair Value Balance Sheet Location October 3, January 3, Interest rate swap Other assets, net $ — $ 331 Other non-current liabilities 329 —
Schedule of before-tax effect of derivative instruments in cash flow hedging relationships	The before-tax effect of derivative instruments in cash flow hedging relationships was as follows (in thousands): Gain (Loss) Recognized in Location of Loss Loss Reclassified Three Months Ended Three Months Ended October 3, September 27, October 3, September 27, Interest rate swaps $ (459 ) $ 193 Interest expense $ (165 ) $ (142 ) Nine Months Ended Nine Months Ended October 3, September 27, October 3, September 27, Interest rate swaps $ (1,035 ) $ (434 ) Interest expense $ (376 ) $ (428 )
Schedule of before-tax effect of derivative instruments not designated as hedging instruments	The before-tax effect of derivative instruments not designated as hedging instruments was as follows (in thousands): Three Months Ended Nine Months Ended Gain (Loss) Recognized in Income October 3, September 27, October 3, September 27, Location Foreign currency forward contracts $ 379 $ — $ 825 $ — Other income (expense), net

Fair Value of Financial Instr24

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Oct. 03, 2015
Fair Value of Financial Instruments
Financial assets and liabilities measured at fair value on a recurring basis	The following summarizes the valuation of the Company’s financial instruments (in thousands). Fair Value Measurements Description Quoted Prices in Significant Other Significant Total Assets: Cash Equivalents: Money market funds $ 63,316 $ — $ — $ 63,316 Certificates of deposit — 3,903 — 3,903 Total cash equivalents $ 63,316 $ 3,903 $ — $ 67,219 Short-term Investments: Municipal bonds $ — $ 98,741 $ — $ 98,741 Variable-rate demand notes — 9,495 — 9,495 International government bonds — 2,235 — 2,235 Corporate bonds — 2,199 — 2,199 Total short-term investments $ — $ 112,670 $ — $ 112,670 Long-term Investments: Auction rate securities $ — $ — $ 7,240 $ 7,240 Total long-term investments $ — $ — $ 7,240 $ 7,240 Total $ 63,316 $ 116,573 $ 7,240 $ 187,129 Liabilities: Accrued expenses: Contingent consideration $ — $ — $ 4,070 $ 4,070 Other non-current liabilities: Contingent consideration $ — $ — $ 9,192 $ 9,192 Derivative instruments — 329 — 329 $ — $ 329 $ 9,192 $ 9,521 Total $ — $ 329 $ 13,262 $ 13,591 Fair Value Measurements Description Quoted Prices in Significant Other Significant Total Assets: Cash Equivalents: Money market funds $ 71,415 $ — $ — $ 71,415 Certificates of deposit — 7,739 — 7,739 Commercial paper — 5,348 — 5,348 Municipal bonds — 1,757 — 1,757 U.S. government agency — 1,202 — 1,202 Corporate bonds — 1,101 — 1,101 U.S. government bonds 1,000 — — 1,000 Total cash equivalents $ 72,415 $ 17,147 $ — $ 89,562 Short-term Investments: Municipal bonds $ — $ 129,152 $ — $ 129,152 Corporate bonds — 33,033 — 33,033 Variable-rate demand notes — 12,915 — 12,915 Commercial paper — 8,995 — 8,995 Asset-backed securities — 5,377 — 5,377 International government bonds — 2,516 — 2,516 U.S. government bond 650 — — 650 U.S. government agency — 601 — 601 Certificates of deposit — 250 — 250 Total short-term investments $ 650 $ 192,839 $ — $ 193,489 Long-term Investments: Auction rate securities $ — $ — $ 7,419 $ 7,419 Total long-term investments $ — $ — $ 7,419 $ 7,419 Other assets, net: Derivative instruments $ — $ 331 $ — $ 331 Total $ — $ 331 $ — $ 331 Total $ 73,065 $ 210,317 $ 7,419 $ 290,801 Liabilities: Accrued expenses: Contingent consideration $ — $ — $ 4,288 $ 4,288 Other non-current liabilities: Contingent consideration $ — $ — $ 14,150 $ 14,150 Total $ — $ — $ 18,438 $ 18,438
Summary of quantitative information about level 3 asset fair value measurements	Auction rate securities Fair Value at Valuation Technique Unobservable Input Weighted Average $ 7,240 Discounted cash flow Estimated yield 1.04% Expected holding period 10 years Estimated discount rate 3.46%
Summary of quantitative information about level 3 liability fair value measurements	Contingent consideration Fair Value at Valuation Technique Unobservable Input Range $ 13,262 Monte Carlo simulation Expected revenue growth rate 38.6% – 47.0% Expected revenue volatility 20.0% Expected term 0.3 years – 3.3 years Estimated discount rate 0.34% – 1.44%
Summary of activity in Level 3 financial instruments	The following summarizes the activity in Level 3 financial instruments for the three and nine months ended October 3, 2015 (in thousands): Assets Auction Rate Securities Three Months Nine Months Beginning balance $ 7,179 $ 7,419 Gain (loss) included in other comprehensive income (loss) 61 (179 ) Balance at October 3, 2015 $ 7,240 $ 7,240 Liabilities Contingent Consideration (1) Three Months Nine Months Beginning balance $ 15,092 $ 18,438 Settlements — (4,464 ) Gain recognized in earnings (2) (1,830 ) (712 ) Balance at October 3, 2015 $ 13,262 $ 13,262 Net gain for the period included in earnings attributable to contingent consideration held at the end of the period: $ 1,830 $ 712 (1) (2)

Balance Sheet Details (Tables)

Balance Sheet Details (Tables)	9 Months Ended
	Oct. 03, 2015
Balance Sheet Details
Inventories	The following shows the details of selected Condensed Consolidated Balance Sheet items (in thousands): Inventories October 3, January 3, Work in progress $ 38,107 $ 40,640 Finished goods 13,850 11,991 $ 51,957 $ 52,631

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Oct. 03, 2015
Acquisitions
Schedule of purchase price allocation	The purchase price was allocated as follows (in thousands): Amount Weighted-Average Intangible assets: In-process research and development $ 5,710 Not amortized Developed technology 12,190 8 Customer relationships 6,670 4 Trademarks 880 3 25,450 Cash and cash equivalents 1,132 Other current assets 6,156 Goodwill 35,145 Other non-current assets 208 Current liabilities (3,289 ) Non-current deferred tax liabilities, net (4,328 ) Long-term debt (2,232 ) Other non-current liabilities (220 ) Total purchase price $ 58,022

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Oct. 03, 2015
Stockholders' Equity
Schedule of share repurchase programs	The Board of Directors authorized the following share repurchase programs (in thousands): Program Program Program August 2015 December 2016 $ 100,000 October 2014 December 2015 $ 100,000 January 2014 January 2015 $ 100,000 January 2013 January 2014 $ 50,000
Schedule of components of accumulated other comprehensive loss, net of taxes	The components of accumulated other comprehensive loss, net of taxes, were as follows (in thousands): Unrealized Gain Net Unrealized Losses Total Balance at January 3, 2015 $ 215 $ (297 ) $ (82 ) Other comprehensive loss before reclassifications (672 ) (116 ) (788 ) Amount reclassified from accumulated other comprehensive loss 245 6 251 Net change for the period (427 ) (110 ) (537 ) Balance at October 3, 2015 $ (212 ) $ (407 ) $ (619 )
Schedule of Reclassifications From Accumulated Other Comprehensive Loss	Three Months Ended Nine Months Ended Reclassification (in thousands) October 3, September 27, October 3, September 27, Losses on cash flow hedges to: Interest expense $ (165 ) $ (142 ) $ (376 ) $ (428 ) Losses on available-for-sale securities to: Interest income — — (10 ) — (165 ) (142 ) (386 ) (428 ) Income tax benefit 58 50 135 150 Total reclassifications $ (107 ) $ (92 ) $ (251 ) $ (278 )

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Oct. 03, 2015
Stock-Based Compensation
Schedule of stock-based compensation costs recognized in the Consolidated Statements of Income	The following table presents details of stock-based compensation costs recognized in the Condensed Consolidated Statements of Income (in thousands): Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, Cost of revenues $ 249 $ 201 $ 708 $ 574 Research and development 4,623 4,713 14,378 13,282 Selling, general and administrative 4,350 4,700 15,712 14,317 9,222 9,614 30,798 28,173 Income tax benefit 1,089 1,158 3,575 3,056 $ 8,133 $ 8,456 $ 27,223 $ 25,117

Significant Accounting Polici29

Significant Accounting Policies (Details)	9 Months Ended	12 Months Ended
	Oct. 03, 2015	Jan. 03, 2015
Basis of Presentation and Principles of Consolidation
Length of fiscal year	364 days	371 days
Number of days in each fiscal quarter for 52-week fiscal year	91 days
Low end of range
Basis of Presentation and Principles of Consolidation
Length of fiscal year	364 days
High end of range
Basis of Presentation and Principles of Consolidation
Length of fiscal year	371 days

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Earnings Per Share
Net income	$ 9,975	$ 5,608	$ 23,928	$ 27,997
Shares used in computing basic earnings per share	42,331	43,112	42,522	43,218
Effect of dilutive securities:
Stock options and other stock-based awards (in shares)	464	703	613	812
Shares used in computing diluted earnings per share	42,795	43,815	43,135	44,030
Earnings per share:
Basic (in dollars per share)	$ 0.24	$ 0.13	$ 0.56	$ 0.65
Diluted (in dollars per share)	$ 0.23	$ 0.13	$ 0.55	$ 0.64
Shares excluded from computation of diluted earning per share	100	100	100	100

Cash, Cash Equivalents and In31

Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 03, 2015	Jan. 03, 2015
Available-for-sale securities
Available-for-sale securities, Cost	$ 187,755
Cash, cash equivalents and investments
Auction-rate securities guaranteed by the U.S. government	6,000
Auction-rate securities privately insured	2,000
Auction-rate securities having credit rating 'AA'	6,000
Auction-rate securities having credit rating 'A'	2,000
Other-than-temporary impairment losses	0
Cash on hand, Cost	68,421	$ 52,144
Cash on hand, Fair Value	68,421	52,144
Cash and cash equivalents, Cost	135,640	141,705
Cash and cash equivalents, Gross Unrealized Gains		1
Cash and cash equivalents, Fair Value	135,640	141,706
Cash Equivalents:
Available-for-sale securities
Available-for-sale securities, Cost	67,219	89,561
Available-for-sale securities, Gross Unrealized Gains		1
Available-for-sale securities, Fair Value	67,219	89,562
Short-term Investments:
Available-for-sale securities
Available-for-sale securities, Cost	112,536	193,365
Available-for-sale securities, Gross Unrealized Losses	(13)	(73)
Available-for-sale securities, Gross Unrealized Gains	147	197
Available-for-sale securities, Fair Value	112,670	193,489
Long-term Investments:
Available-for-sale securities
Available-for-sale securities, Cost	8,000	8,000
Available-for-sale securities, Gross Unrealized Losses	(760)	(581)
Available-for-sale securities, Fair Value	7,240	7,419
Money market funds | Cash Equivalents:
Available-for-sale securities
Available-for-sale securities, Cost	63,316	71,415
Available-for-sale securities, Fair Value	63,316	71,415
Municipal bonds | Cash Equivalents:
Available-for-sale securities
Available-for-sale securities, Cost		1,756
Available-for-sale securities, Gross Unrealized Gains		1
Available-for-sale securities, Fair Value		1,757
Municipal bonds | Short-term Investments:
Available-for-sale securities
Available-for-sale securities, Cost	98,605	129,005
Available-for-sale securities, Gross Unrealized Losses	(10)	(25)
Available-for-sale securities, Gross Unrealized Gains	146	172
Available-for-sale securities, Fair Value	98,741	129,152
Variable-rate demand notes | Short-term Investments:
Available-for-sale securities
Available-for-sale securities, Cost	9,495	12,915
Available-for-sale securities, Fair Value	9,495	12,915
Corporate bonds | Cash Equivalents:
Available-for-sale securities
Available-for-sale securities, Cost		1,101
Available-for-sale securities, Fair Value		1,101
Corporate bonds | Short-term Investments:
Available-for-sale securities
Available-for-sale securities, Cost	2,202	33,043
Available-for-sale securities, Gross Unrealized Losses	(3)	(35)
Available-for-sale securities, Gross Unrealized Gains		25
Available-for-sale securities, Fair Value	2,199	33,033
International government bonds | Short-term Investments:
Available-for-sale securities
Available-for-sale securities, Cost	2,234	2,526
Available-for-sale securities, Gross Unrealized Losses		(10)
Available-for-sale securities, Gross Unrealized Gains	1
Available-for-sale securities, Fair Value	2,235	2,516
Commercial paper | Cash Equivalents:
Available-for-sale securities
Available-for-sale securities, Cost		5,348
Available-for-sale securities, Fair Value		5,348
Commercial paper | Short-term Investments:
Available-for-sale securities
Available-for-sale securities, Cost		8,995
Available-for-sale securities, Fair Value		8,995
Certificates of deposit | Cash Equivalents:
Available-for-sale securities
Available-for-sale securities, Cost	3,903	7,739
Available-for-sale securities, Fair Value	3,903	7,739
Certificates of deposit | Short-term Investments:
Available-for-sale securities
Available-for-sale securities, Cost		250
Available-for-sale securities, Fair Value		250
US government agency | Cash Equivalents:
Available-for-sale securities
Available-for-sale securities, Cost		1,202
Available-for-sale securities, Fair Value		1,202
US government agency | Short-term Investments:
Available-for-sale securities
Available-for-sale securities, Cost		601
Available-for-sale securities, Fair Value		601
U.S. government bonds | Cash Equivalents:
Available-for-sale securities
Available-for-sale securities, Cost		1,000
Available-for-sale securities, Fair Value		1,000
U.S. government bonds | Short-term Investments:
Available-for-sale securities
Available-for-sale securities, Cost		650
Available-for-sale securities, Fair Value		650
Asset-backed securities | Short-term Investments:
Available-for-sale securities
Available-for-sale securities, Cost		5,380
Available-for-sale securities, Gross Unrealized Losses		(3)
Available-for-sale securities, Fair Value		5,377
Auction rate securities | Long-term Investments:
Available-for-sale securities
Available-for-sale securities, Cost	8,000	8,000
Available-for-sale securities, Gross Unrealized Losses	(760)	(581)
Available-for-sale securities, Fair Value	$ 7,240	$ 7,419

Cash, Cash Equivalents and In32

Cash, Cash Equivalents and Investments (Details 2) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months	$ 10,473	$ 51,658
Fair value of available-for-sale securities, continuous loss position for twelve months or longer	7,240	7,419
Total fair value of available-for-sale securities, continuous loss position	17,713	59,077
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses	(13)	(73)
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses	(760)	(581)
Available-for-sale securities, total gross unrealized losses	(773)	(654)
Cost
Due in one year or less, Cost	139,704
Due after one year through ten years, Cost	33,136
Due after ten years, Cost	14,915
Total Cost	187,755
Fair Value
Due in one year or less, Fair Value	139,779
Due after one year through ten years, Fair Value	33,195
Due after ten years, Fair Value	14,155
Total Fair Value	187,129
Municipal bonds
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months	8,274	23,735
Total fair value of available-for-sale securities, continuous loss position	8,274	23,735
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses	(10)	(25)
Available-for-sale securities, total gross unrealized losses	(10)	(25)
Corporate bonds
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months		20,327
Total fair value of available-for-sale securities, continuous loss position		20,327
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses		(35)
Available-for-sale securities, total gross unrealized losses		(35)
Auction rate securities
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for twelve months or longer	7,240	7,419
Total fair value of available-for-sale securities, continuous loss position	7,240	7,419
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses	(760)	(581)
Available-for-sale securities, total gross unrealized losses	(760)	(581)
Asset-backed securities
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months		5,080
Total fair value of available-for-sale securities, continuous loss position		5,080
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses		(3)
Available-for-sale securities, total gross unrealized losses		(3)
International government bonds
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months	2,199	2,516
Total fair value of available-for-sale securities, continuous loss position	2,199	2,516
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses	(3)	(10)
Available-for-sale securities, total gross unrealized losses	$ (3)	$ (10)

Derivative Financial Instrume33

Derivative Financial Instruments (Details) $ in Millions	Oct. 03, 2015USD ($)
Cash flow hedges | Interest rate swaps
Notional amount
Original notional value	$ 100

Derivative Financial Instrume34

Derivative Financial Instruments (Details 2) - USD ($) $ in Thousands	9 Months Ended
	Oct. 03, 2015	Jan. 03, 2015
Derivative financial instrument
Gains or losses from the hedging instrument which was excluded from the assessment of effectiveness	$ 0
Other assets, net
Derivative financial instrument
Fair value of interest rate swap		$ 331
Other non-current liabilities:
Derivative financial instrument
Fair value of interest rate swap	$ 329

Derivative Financial Instrume35

Derivative Financial Instruments (Details 3) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015USD ($)contract	Sep. 27, 2014USD ($)contract	Oct. 03, 2015USD ($)contract	Sep. 27, 2014USD ($)contract
Derivative Instruments, Gain (Loss)
Reclassification of interest rate swap losses included in accumulated other comprehensive loss into earnings in the next 12 months	$ 300		$ 300
Not Designated as Hedging Instrument | Foreign currency forward contracts
Derivative Instruments, Gain (Loss)
Number of foreign currency forward contract held | contract	1	0	1	0
Original notional value	$ 5,300		$ 5,300
Not Designated as Hedging Instrument | Foreign currency forward contracts | Other income (expense), net
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Income	379		825
Cash flow hedges | Interest rate swaps
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) during period	(459)	$ 193	(1,035)	$ (434)
Original notional value	100,000		100,000
Cash flow hedges | Interest rate swaps | Interest expense
Derivative Instruments, Gain (Loss)
Loss Reclassified from Accumulated OCI into Income (Effective Portion), included in rent and interest expense during period	$ (165)	$ (142)	$ (376)	$ (428)

Fair Value of Financial Instr36

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	$ 135,640	$ 141,706
Total short-term investments	112,670	193,489
Total long-term investments	7,240	7,419
Assets and liabilities measured at fair value on recurring basis
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	67,219	89,562
Total short-term investments	112,670	193,489
Total long-term investments	7,240	7,419
Derivative instruments		331
Other assets, net		331
Total assets at fair value	187,129	290,801
Total liabilities at fair value	13,591	18,438
Assets and liabilities measured at fair value on recurring basis | Accrued expenses:
Financial assets and liabilities measured at fair value on a recurring basis
Contingent consideration, current	4,070	4,288
Assets and liabilities measured at fair value on recurring basis | Other non-current liabilities:
Financial assets and liabilities measured at fair value on a recurring basis
Contingent consideration, noncurrent	9,192	14,150
Derivative instruments	329
Total liabilities at fair value	9,521
Assets and liabilities measured at fair value on recurring basis | Money market funds
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	63,316	71,415
Assets and liabilities measured at fair value on recurring basis | Certificates of deposit
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	3,903	7,739
Total short-term investments		250
Assets and liabilities measured at fair value on recurring basis | Commercial paper
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents		5,348
Total short-term investments		8,995
Assets and liabilities measured at fair value on recurring basis | Municipal bonds
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents		1,757
Total short-term investments	98,741	129,152
Assets and liabilities measured at fair value on recurring basis | Variable-rate demand notes
Financial assets and liabilities measured at fair value on a recurring basis
Total short-term investments	9,495	12,915
Assets and liabilities measured at fair value on recurring basis | Asset-backed securities
Financial assets and liabilities measured at fair value on a recurring basis
Total short-term investments		5,377
Assets and liabilities measured at fair value on recurring basis | International government bonds
Financial assets and liabilities measured at fair value on a recurring basis
Total short-term investments	2,235	2,516
Assets and liabilities measured at fair value on recurring basis | US government agency
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents		1,202
Total short-term investments		601
Assets and liabilities measured at fair value on recurring basis | Corporate bonds
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents		1,101
Total short-term investments	2,199	33,033
Assets and liabilities measured at fair value on recurring basis | U.S. government bonds
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents		1,000
Total short-term investments		650
Assets and liabilities measured at fair value on recurring basis | Auction rate securities
Financial assets and liabilities measured at fair value on a recurring basis
Total long-term investments	7,240	7,419
Assets and liabilities measured at fair value on recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	63,316	72,415
Total short-term investments		650
Total assets at fair value	63,316	73,065
Assets and liabilities measured at fair value on recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	63,316	71,415
Assets and liabilities measured at fair value on recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government bonds
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents		1,000
Total short-term investments		650
Assets and liabilities measured at fair value on recurring basis | Significant Other Observable Inputs (Level 2)
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	3,903	17,147
Total short-term investments	112,670	192,839
Derivative instruments		331
Other assets, net		331
Total assets at fair value	116,573	210,317
Total liabilities at fair value	329
Assets and liabilities measured at fair value on recurring basis | Significant Other Observable Inputs (Level 2) | Other non-current liabilities:
Financial assets and liabilities measured at fair value on a recurring basis
Derivative instruments	329
Total liabilities at fair value	329
Assets and liabilities measured at fair value on recurring basis | Significant Other Observable Inputs (Level 2) | Certificates of deposit
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	3,903	7,739
Total short-term investments		250
Assets and liabilities measured at fair value on recurring basis | Significant Other Observable Inputs (Level 2) | Commercial paper
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents		5,348
Total short-term investments		8,995
Assets and liabilities measured at fair value on recurring basis | Significant Other Observable Inputs (Level 2) | Municipal bonds
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents		1,757
Total short-term investments	98,741	129,152
Assets and liabilities measured at fair value on recurring basis | Significant Other Observable Inputs (Level 2) | Variable-rate demand notes
Financial assets and liabilities measured at fair value on a recurring basis
Total short-term investments	9,495	12,915
Assets and liabilities measured at fair value on recurring basis | Significant Other Observable Inputs (Level 2) | Asset-backed securities
Financial assets and liabilities measured at fair value on a recurring basis
Total short-term investments		5,377
Assets and liabilities measured at fair value on recurring basis | Significant Other Observable Inputs (Level 2) | International government bonds
Financial assets and liabilities measured at fair value on a recurring basis
Total short-term investments	2,235	2,516
Assets and liabilities measured at fair value on recurring basis | Significant Other Observable Inputs (Level 2) | US government agency
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents		1,202
Total short-term investments		601
Assets and liabilities measured at fair value on recurring basis | Significant Other Observable Inputs (Level 2) | Corporate bonds
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents		1,101
Total short-term investments	2,199	33,033
Assets and liabilities measured at fair value on recurring basis | Significant Unobservable Inputs (Level 3)
Financial assets and liabilities measured at fair value on a recurring basis
Total long-term investments	7,240	7,419
Total assets at fair value	7,240	7,419
Total liabilities at fair value	13,262	18,438
Assets and liabilities measured at fair value on recurring basis | Significant Unobservable Inputs (Level 3) | Accrued expenses:
Financial assets and liabilities measured at fair value on a recurring basis
Contingent consideration, current	4,070	4,288
Assets and liabilities measured at fair value on recurring basis | Significant Unobservable Inputs (Level 3) | Other non-current liabilities:
Financial assets and liabilities measured at fair value on a recurring basis
Contingent consideration, noncurrent	9,192	14,150
Total liabilities at fair value	9,192
Assets and liabilities measured at fair value on recurring basis | Significant Unobservable Inputs (Level 3) | Auction rate securities
Financial assets and liabilities measured at fair value on a recurring basis
Total long-term investments	$ 7,240	$ 7,419

Fair Value of Financial Instr37

Fair Value of Financial Instruments (Details 2) - Auction rate securities - Significant Unobservable Inputs (Level 3) - USD ($) $ in Thousands	9 Months Ended
	Oct. 03, 2015	Jul. 04, 2015	Jan. 03, 2015
Weighted Average | Discounted cash flow
Quantitative information for Level 3 Fair Value Measurements Assets
Estimated yield (as a percent)	1.04%
Expected holding period	10 years
Estimated discount rate (as a percent)	3.46%
Assets and liabilities measured at fair value on recurring basis
Quantitative information for Level 3 Fair Value Measurements Assets
Fair value balance at the end of the period	$ 7,240	$ 7,179	$ 7,419

Fair Value of Financial Instr38

Fair Value of Financial Instruments (Details 3) - Contingent consideration - Significant Unobservable Inputs (Level 3) - USD ($) $ in Thousands	9 Months Ended
	Oct. 03, 2015	Jul. 04, 2015	Jan. 03, 2015
Monte Carlo simulation
Quantitative information for Level 3 fair value measurements liabilities
Expected revenue volatility (as a percent)	20.00%
Low end of range | Monte Carlo simulation
Quantitative information for Level 3 fair value measurements liabilities
Expected revenue growth rate (as a percent)	38.60%
Expected term	3 months 18 days
Estimated discount rate (as a percent)	0.34%
High end of range | Monte Carlo simulation
Quantitative information for Level 3 fair value measurements liabilities
Expected revenue growth rate (as a percent)	47.00%
Expected term	3 years 3 months 18 days
Estimated discount rate (as a percent)	1.44%
Assets and liabilities measured at fair value on recurring basis
Quantitative information for Level 3 fair value measurements liabilities
Fair value at the end of the period	$ 13,262	$ 15,092	$ 18,438

Fair Value of Financial Instr39

Fair Value of Financial Instruments (Details 4) - Assets and liabilities measured at fair value on recurring basis - Significant Unobservable Inputs (Level 3) - Auction rate securities - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Oct. 03, 2015	Oct. 03, 2015
Fair value assets reconciliation of changes
Balance at the beginning of the period	$ 7,179	$ 7,419
Gain (loss) included in other comprehensive income (loss)	61	(179)
Balance at the end of the period	$ 7,240	$ 7,240

Fair Value of Financial Instr40

Fair Value of Financial Instruments (Details 5) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Oct. 03, 2015	Oct. 03, 2015	Jan. 03, 2015
Credit Facilities
Fair value liabilities reconciliation of changes
Fair value of debt	$ 80,000	$ 80,000	$ 87,400
Assets and liabilities measured at fair value on recurring basis | Significant Unobservable Inputs (Level 3) | Contingent consideration
Fair value liabilities reconciliation of changes
Balance at the beginning of the period	15,092	18,438
Settlements		(4,464)
Gain recognized in earnings	(1,830)	(712)
Balance at the end of the period	13,262	13,262
Net gain for the period included in earnings attributable to contingent consideration held at the end of the period:	$ 1,830	$ 712

Balance Sheet Details (Details)

Balance Sheet Details (Details) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Inventories
Work in progress	$ 38,107	$ 40,640
Finished goods	13,850	11,991
Total inventories	$ 51,957	$ 52,631

Acquisitions (Details)

Acquisitions (Details) - USD ($)	Jan. 30, 2015	Jul. 01, 2013	Apr. 04, 2015	Oct. 03, 2015	Jan. 03, 2015
Acquisition
Payment of earn-out for the first annual period				$ 4,464,000
Purchase price allocation
Goodwill				263,925,000	$ 228,781,000
Bluegiga
Acquisition
Cash consideration	$ 58,000,000
Amount of initial consideration held in escrow by the company as security for breaches of representations and warranties and certain other expressly enumerated matters	9,400,000
Purchase price allocation
Intangible assets	25,450,000
Cash and cash equivalents	1,132,000
Other current assets	6,156,000
Goodwill	35,145,000
Other non-current assets	208,000
Current liabilities	(3,289,000)
Non-current deferred tax liabilities, net	(4,328,000)
Long-term debt	(2,232,000)
Other non-current liabilities	(220,000)
Total purchase price	$ 58,022,000
Acquisition-related costs recorded in selling, general and administrative expenses				$ 1,200,000
Discount rate applicable to the cash flows (as a percent)	16.10%
Bluegiga | Developed technology
Purchase price allocation
Intangible assets	$ 12,190,000
Weighted-Average Amortization Period	8 years
Bluegiga | Customer relationships
Purchase price allocation
Intangible assets	$ 6,670,000
Weighted-Average Amortization Period	4 years
Bluegiga | Trademarks
Purchase price allocation
Intangible assets	$ 880,000
Weighted-Average Amortization Period	3 years
Bluegiga | In-process research and development
Purchase price allocation
Intangible assets	$ 5,710,000
Energy Micro
Acquisition
Cash consideration			$ 20,000,000
Purchase price of acquisition		$ 140,600,000
Initial consideration		107,400,000
Deferred consideration in the form of a promissory note, fair value		19,200,000
Earn-Out, fair value		$ 14,000,000
Earn out period		5 years
Maximum annual Earn-Out payment		$ 6,666,666
Minimum revenue in single fiscal year from Earn-Out products required to make the entire Earn-Out amount payable		400,000,000
Amount of initial consideration held in escrow by the company as security for breaches of representations and warranties and certain other expressly enumerated matters		$ 20,300,000
Percentage of Earn-Out contingent on the continued employment of certain key employees		28.76%
Period of continued employment of key employees for calculating Earn-out portion following acquisition date		3 years
Payment of earn-out for the first annual period			6,300,000
Earn-out payment representing the Departure Percentage portion and recorded as compensation expense			1,800,000
Remaining Earn-out payment representing additional consideration			$ 4,500,000

Debt (Details)

Debt (Details) $ in Thousands	Jul. 24, 2015USD ($)	Jul. 31, 2012USD ($)	Oct. 03, 2015	Jan. 30, 2015USD ($)
Bluegiga
Debt
Debt in connection with acquisition				$ 2,232
Debt instrument, interest rate, minimum			1.00%
Debt instrument, interest rate, maximum			3.00%
Credit Facilities
Debt
Maximum borrowing capacity		$ 100,000
Fixed interest rate percentage			0.764%
Combined interest rate percentage			2.264%
Credit Agreement
Debt
Maximum borrowing capacity		$ 230,000
Term of debt instrument		5 years
Amount borrowed under the Amended Credit Agreement	$ 82,500
Maximum leverage ratio			3
Minimum fixed charge coverage ratio			1.25
Revolving Credit Facility
Debt
Maximum borrowing capacity	$ 300,000	$ 130,000
Term of debt instrument	5 years
Sublimit on letters of credit		25,000
Sublimit on swingline loan		$ 10,000
Additional increase in borrowing capacity of the line of credit available at the entity's option	$ 200,000
Revolving credit facility, other than swingline loans | Federal Funds
Debt
Interest rate added to the base rate (as a percent)			0.50%
Revolving credit facility, other than swingline loans | Eurodollar base rate
Debt
Interest rate added to the base rate (as a percent)			1.00%
Revolving credit facility, other than swingline loans | Eurodollar | Low end of range
Debt
Interest rate added to the base rate (as a percent)			1.25%
Revolving credit facility, other than swingline loans | Eurodollar | High end of range
Debt
Interest rate added to the base rate (as a percent)			2.00%
Revolving credit facility, swingline and other loans | Base rate | Low end of range
Debt
Interest rate added to the base rate (as a percent)			0.25%
Revolving credit facility, swingline and other loans | Base rate | High end of range
Debt
Interest rate added to the base rate (as a percent)			1.00%

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ in Thousands, shares in Millions	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014	Aug. 31, 2015	Oct. 31, 2014	Jan. 31, 2014	Jan. 31, 2013
Number of shares of common stock issued			1
Components of accumulated other comprehensive loss, net of taxes
Balance at beginning of the period			$ 758,056
Other comprehensive income (loss)	$ (90)	$ 489	(537)	$ 574
Balance at end of the period	741,476		$ 741,476
Repurchase of common stock (in shares)			1.6	1.3
Repurchase of common stock			$ 71,400	$ 53,900
Unrealized Gain on Cash Flow Hedge
Components of accumulated other comprehensive loss, net of taxes
Balance at beginning of the period			215
Other comprehensive loss before reclassifications			(672)
Amounts reclassified from accumulated other comprehensive loss			245
Other comprehensive income (loss)			(427)
Balance at end of the period	(212)		(212)
Net Unrealized Losses on Available-For-Sale Securities
Components of accumulated other comprehensive loss, net of taxes
Balance at beginning of the period			(297)
Other comprehensive loss before reclassifications			(116)
Amounts reclassified from accumulated other comprehensive loss			6
Other comprehensive income (loss)			(110)
Balance at end of the period	(407)		(407)
Accumulated Other Comprehensive Loss
Components of accumulated other comprehensive loss, net of taxes
Balance at beginning of the period			(82)
Other comprehensive loss before reclassifications			(788)
Amounts reclassified from accumulated other comprehensive loss			251
Other comprehensive income (loss)			(537)
Balance at end of the period	$ (619)		$ (619)
High end of range
Program Amount authorized to repurchase					$ 100,000	$ 100,000	$ 100,000	$ 50,000

Stockholders' Equity (Details 2

Stockholders' Equity (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Amounts Reclassified from AOCI
Interest expense	$ (687)	$ (768)	$ (2,160)	$ (2,346)
Income before income taxes	10,442	9,109	26,040	38,905
Income tax benefit	(467)	(3,501)	(2,112)	(10,908)
Net income	9,975	5,608	23,928	27,997
Reclassifications From Accumulated Other Comprehensive Loss
Amounts Reclassified from AOCI
Income before income taxes	(165)	(142)	(386)	(428)
Income tax benefit	58	50	135	150
Net income	(107)	(92)	(251)	(278)
Unrealized Gain on Cash Flow Hedge | Reclassifications From Accumulated Other Comprehensive Loss
Amounts Reclassified from AOCI
Interest expense	$ (165)	$ (142)	(376)	$ (428)
Net Unrealized Losses on Available-For-Sale Securities | Reclassifications From Accumulated Other Comprehensive Loss
Amounts Reclassified from AOCI
Interest income			$ (10)

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Stock-based compensation costs
Share based compensation cost before tax	$ 9,222	$ 9,614	$ 30,798	$ 28,173
Income tax benefit	1,089	1,158	3,575	3,056
Share based compensation cost after tax	8,133	8,456	27,223	25,117
Total unrecognized compensation costs related to awards	55,300		$ 55,300
Weighted-average period of recognition of unrecognized compensation costs			2 years
Cost of revenues
Stock-based compensation costs
Share based compensation cost before tax	249	201	$ 708	574
Research and development
Stock-based compensation costs
Share based compensation cost before tax	4,623	4,713	14,378	13,282
Selling, general and administrative
Stock-based compensation costs
Share based compensation cost before tax	$ 4,350	$ 4,700	$ 15,712	$ 14,317

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	Jul. 01, 2013	Apr. 04, 2015	Oct. 03, 2015
Related Party Transaction
Payment of the fiscal 2014 earn-out			$ 4,464
Energy Micro
Related Party Transaction
Cash consideration		$ 20,000
Payment of the fiscal 2014 earn-out		6,300
Contingent consideration		26,700
Mr. Forre | Energy Micro
Related Party Transaction
Beneficial ownership percentage	30.00%
Cash consideration	$ 35,000	6,100
Payment of the fiscal 2014 earn-out		1,900
Contingent consideration		8,100
Mr. Bogen | Energy Micro
Related Party Transaction
Beneficial ownership percentage	2.00%
Cash consideration	$ 900	400
Payment of the fiscal 2014 earn-out		100
Contingent consideration		$ 500
Investment in acquired entity by related party prior to the acquisition	$ 800

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Income Taxes
Income tax expense	$ 467	$ 3,501	$ 2,112	$ 10,908
Effective income tax rate (as a percent)	4.50%	38.40%	8.10%	28.00%
Gross unrecognized tax benefits	$ 3,700		$ 3,700
Amount of estimated decrease in unrecognized tax benefits	$ 900		$ 900