Silicon Laboratories (SLAB) 10-Q 27 Apr 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 02, 2016	Apr. 19, 2016
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	Apr. 2, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		41,751,123
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Current assets:
Cash and cash equivalents	$ 126,690	$ 114,085
Short-term investments	126,824	128,901
Accounts receivable, net of allowances for doubtful accounts of $657 at April 2, 2016 and $671 at January 2, 2016	74,591	73,601
Inventories	48,923	53,895
Prepaid expenses and other current assets	44,222	52,658
Total current assets	421,250	423,140
Long-term investments	6,845	7,126
Property and equipment, net	130,099	131,132
Goodwill	272,722	272,722
Other intangible assets, net	113,800	121,354
Other assets, net	53,566	55,989
Total assets	998,282	1,011,463
Current liabilities:
Accounts payable	42,579	42,127
Current portion of long-term debt	10,000	10,000
Accrued expenses	58,391	52,131
Deferred income on shipments to distributors	41,042	35,448
Income taxes	3,084	2,615
Total current liabilities	155,096	142,321
Long-term debt	65,000	67,500
Other non-current liabilities	28,739	40,528
Total liabilities	$ 248,835	$ 250,349
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; 41,743 and 41,727 shares issued and outstanding at April 2, 2016 and January 2, 2016, respectively	$ 4	$ 4
Additional paid-in capital		13,868
Retained earnings	750,256	747,749
Accumulated other comprehensive loss	(813)	(507)
Total stockholders' equity	749,447	761,114
Total liabilities and stockholders' equity	$ 998,282	$ 1,011,463

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Condensed Consolidated Balance Sheets
Accounts receivable, allowances for doubtful accounts (in dollars)	$ 657	$ 671
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	41,743	41,727
Common stock, shares outstanding	41,743	41,727

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Condensed Consolidated Statements of Income
Revenues	$ 162,025	$ 163,705
Cost of revenues	66,494	67,336
Gross margin	95,531	96,369
Operating expenses:
Research and development	49,046	46,857
Selling, general and administrative	39,637	42,300
Operating expenses	88,683	89,157
Operating income	6,848	7,212
Other income (expense):
Interest income	271	192
Interest expense	(655)	(745)
Other income (expense), net	(391)	408
Income before income taxes	6,073	7,067
Provision for income taxes	265	689
Net income	$ 5,808	$ 6,378
Earnings per share:
Basic (in dollars per share)	$ 0.14	$ 0.15
Diluted (in dollars per share)	$ 0.14	$ 0.15
Weighted-average common shares outstanding:
Basic (in shares)	41,629	42,412
Diluted (in shares)	42,199	43,149

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Condensed Consolidated Statements of Comprehensive Income
Net income	$ 5,808	$ 6,378
Net changes to available-for-sale securities
Unrealized losses arising during the period	(251)	(20)
Reclassification for losses included in net income		10
Net changes to cash flow hedges
Unrealized losses arising during the period	(286)	(626)
Reclassification for losses included in net income	66	130
Other comprehensive loss, before tax	(471)	(506)
Benefit from income taxes	(165)	(177)
Other comprehensive loss	(306)	(329)
Comprehensive income	$ 5,502	$ 6,049

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Operating Activities
Net income	$ 5,808	$ 6,378
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation of property and equipment	3,310	2,987
Amortization of other intangible assets and other assets	7,980	6,521
Stock-based compensation expense	10,344	10,519
Income tax benefit (shortfall) from stock-based awards	(1,025)	1,773
Excess income tax benefit from stock-based awards	(6)	(1,785)
Deferred income taxes	(38)	6,844
Changes in operating assets and liabilities:
Accounts receivable	(990)	6,564
Inventories	4,580	(6,424)
Prepaid expenses and other assets	9,159	8,584
Accounts payable	1,559	447
Accrued expenses	6,260	(5,046)
Deferred income on shipments to distributors	5,558	(1,049)
Income taxes	494	(8,409)
Other non-current liabilities	(10,584)	(3,816)
Net cash provided by operating activities	42,409	24,088
Investing Activities
Purchases of available-for-sale investments	(44,547)	(13,037)
Proceeds from sales and maturities of available-for-sale investments	46,654	57,739
Purchases of property and equipment	(2,303)	(1,991)
Purchases of other assets	(1,107)	(935)
Acquisition of business, net of cash acquired		(76,899)
Net cash used in investing activities	(1,303)	(35,123)
Financing Activities
Payment of taxes withheld for vested stock awards, net of proceeds from the issuance of common stock	(7,523)	(2,561)
Excess income tax benefit from stock-based awards	6	1,785
Repurchases of common stock	(18,484)	(10,138)
Payment of acquisition-related contingent consideration		(4,464)
Payments on debt	(2,500)	(2,583)
Net cash used in financing activities	(28,501)	(17,961)
Increase (decrease) in cash and cash equivalents	12,605	(28,996)
Cash and cash equivalents at beginning of period	114,085	141,706
Cash and cash equivalents at end of period	$ 126,690	$ 112,710

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Apr. 02, 2016
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 April 2, 2016 and January 2, 2016, the condensed consolidated results of its operations for the three months ended April 2, 2016 and April 4, 2015, the Condensed Consolidated Statements of Comprehensive Income for the three months ended April 2, 2016 and April 4, 2015, and the Condensed Consolidated Statements of Cash Flows for the three months ended April 2, 2016 and April 4, 2015. All intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated results of operations for the three months ended April 2, 2016 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 2, 2016, included in the Company’s Form 10-K filed with the Securities and Exchange Commission (SEC) on February 5, 2016. The Company prepares financial statements on a Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Among the significant estimates affecting the financial statements are those related to inventories, stock-based compensation, investments in auction-rate securities, acquired intangible assets, goodwill, long-lived assets and income taxes. Actual results could differ from those estimates, and such differences could be material to the financial statements. Revenue Recognition Revenues are generated predominately by sales of the Company’s products. 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 March 2016, the Financial Accounting Standards Board (FASB) issued FASB Accounting Standards Update (ASU) No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. In February 2016, the FASB issued FASB ASU No. 2016-02, Leases (Topic 842) In January 2016, the FASB issued FASB ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. In July 2015, the FASB issued FASB ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory 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 Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net).

Earnings Per Share

Earnings Per Share	3 Months Ended
	Apr. 02, 2016
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 April 2, April 4, Net income $ 5,808 $ 6,378 Shares used in computing basic earnings per share 41,629 42,412 Effect of dilutive securities: Stock options and other stock-based awards 570 737 Shares used in computing diluted earnings per share 42,199 43,149 Earnings per share: Basic $ 0.14 $ 0.15 Diluted $ 0.14 $ 0.15 For the three months ended April 2, 2016 and April 4, 2015, approximately 0.8 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	3 Months Ended
	Apr. 02, 2016
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 April 2, 2016 consisted of municipal bonds, money market funds, variable-rate demand notes, corporate bonds, U.S. government bonds, asset-back securities, commercial paper, certificates of deposit and international government 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 April 2, 2016, 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 April 2, 2016, $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 April 2, 2016. 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 April 2, 2016. The Company’s cash, cash equivalents and investments consisted of the following (in thousands): April 2, 2016 Cost Gross Gross Fair Value Cash and cash equivalents: Cash on hand $ 76,197 $ — $ — $ 76,197 Available-for-sale securities: Money market funds 40,720 — — 40,720 Municipal bonds 5,724 — — 5,724 Certificates of deposit 2,849 — — 2,849 Commercial paper 1,200 — — 1,200 Total available-for-sale securities 50,493 — — 50,493 Total cash and cash equivalents $ 126,690 $ — $ — $ 126,690 Short-term investments: Available-for-sale securities: Municipal bonds $ 85,668 $ (14 ) $ 55 $ 85,709 Variable-rate demand notes 18,395 — — 18,395 Corporate bonds 8,021 (18 ) — 8,003 U.S. government bonds 6,004 — 5 6,009 Asset-backed securities 3,995 — 3 3,998 Commercial paper 2,489 — — 2,489 International government bonds 2,220 — 1 2,221 Total short-term investments $ 126,792 $ (32 ) $ 64 $ 126,824 Long-term investments: Available-for-sale securities: Auction rate securities $ 8,000 $ (1,155 ) $ — $ 6,845 Total long-term investments $ 8,000 $ (1,155 ) $ — $ 6,845 January 2, 2016 Cost Gross Gross Fair Value Cash and cash equivalents: Cash on hand $ 59,071 $ — $ — $ 59,071 Available-for-sale securities: — Money market funds 37,721 — — 37,721 Commercial paper 11,272 — — 11,272 Certificates of deposit 2,845 — — 2,845 U.S. government agency 1,599 — — 1,599 Municipal bonds 1,576 — 1 1,577 Total available-for-sale securities 55,013 — 1 55,014 Total cash and cash equivalents $ 114,084 $ — $ 1 $ 114,085 Short-term investments: Available-for-sale securities: Municipal bonds $ 93,506 $ (32 ) $ 42 $ 93,516 Commercial paper 11,176 — — 11,176 Variable-rate demand notes 8,995 — — 8,995 Certificates of deposit 8,000 — — 8,000 U.S. government agency 3,997 — 1 3,998 International government bonds 2,227 (7 ) — 2,220 Corporate bonds 999 (3 ) — 996 Total short-term investments $ 128,900 $ (42 ) $ 43 $ 128,901 Long-term investments: Available-for-sale securities: Auction rate securities $ 8,000 $ (874 ) $ — $ 7,126 Total long-term investments $ 8,000 $ (874 ) $ — $ 7,126 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 April 2, 2016 Fair Gross Fair Gross Fair Gross Municipal bonds $ 27,767 $ (11 ) $ 2,708 $ (3 ) $ 30,475 $ (14 ) Corporate bonds 8,003 (18 ) — — 8,003 (18 ) Auction rate securities — — 6,845 (1,155 ) 6,845 (1,155 ) $ 35,770 $ (29 ) $ 9,553 $ (1,158 ) $ 45,323 $ (1,187 ) Less Than 12 Months 12 Months or Greater Total As of January 2, 2016 Fair Gross Fair Gross Fair Gross Municipal bonds $ 29,271 $ (30 ) $ 1,198 $ (2 ) $ 30,469 $ (32 ) Auction rate securities — — 7,126 (874 ) 7,126 (874 ) International government bonds 2,220 (7 ) — — 2,220 (7 ) Corporate bonds 996 (3 ) — — 996 (3 ) $ 32,487 $ (40 ) $ 8,324 $ (876 ) $ 40,811 $ (916 ) The gross unrealized losses as of April 2, 2016 and January 2, 2016 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 $ 114,458 $ 114,470 Due after one year through ten years 41,002 41,022 Due after ten years 29,825 28,670 $ 185,285 $ 184,162

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Apr. 02, 2016
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 April 2, 2016, 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 April 2, January 2, Interest rate swap Other assets, net $ — $ 92 Other non-current liabilities 129 — The before-tax effect of derivative instruments in cash flow hedging relationships was as follows (in thousands): Loss Recognized in Location of Loss Loss Reclassified Three Months Ended Three Months Ended April 2, April 4, April 2, April 4, Interest rate swaps $ (286 ) $ (626 ) Interest expense $ (66 ) $ (130 ) The Company expects to reclassify $0.1 million of its interest rate swap losses included in accumulated other comprehensive loss as of April 2, 2016 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 April 2, 2016 and April 4, 2015, the Company held one foreign currency forward contract denominated in Norwegian Krone with a notional value of $4.8 million and $6.8 million, respectively. The fair value of the contracts was not material as of April 2, 2016 or April 4, 2015. The contract held as of April 2, 2016 has The before-tax effect of derivative instruments not designated as hedging instruments was as follows (in thousands): Three Months Ended Gain (Loss) Recognized in Income April 2, April 4, Location Foreign currency forward contracts $ (300 ) $ 550 Other income (expense), net

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Apr. 02, 2016
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 $ 40,720 $ — $ — $ 40,720 Municipal bonds — 5,724 — 5,724 Certificates of deposit — 2,849 — 2,849 Commercial paper — 1,200 — 1,200 Total cash equivalents $ 40,720 $ 9,773 $ — $ 50,493 Short-term investments: Municipal bonds $ — $ 85,709 $ — $ 85,709 Variable-rate demand notes — 18,395 — 18,395 Corporate bonds — 8,003 — 8,003 U.S. government bonds 6,009 — — 6,009 Asset-backed securities — 3,998 — 3,998 Commercial paper — 2,489 — 2,489 International government bonds — 2,221 — 2,221 Total short-term investments $ 6,009 $ 120,815 $ — $ 126,824 Long-term investments: Auction rate securities $ — $ — $ 6,845 $ 6,845 Total long-term investments $ — $ — $ 6,845 $ 6,845 Total $ 46,729 $ 130,588 $ 6,845 $ 184,162 Liabilities: Other non-current liabilities: Derivative instruments $ — $ 129 $ — $ 129 Total $ — $ 129 $ — $ 129 Fair Value Measurements Description Quoted Prices in Significant Other Significant Total Assets: Cash equivalents: Money market funds $ 37,721 $ — $ — $ 37,721 Commercial paper — 11,272 — 11,272 Certificates of deposit — 2,845 — 2,845 U.S. government agency — 1,599 — 1,599 Municipal bonds — 1,577 — 1,577 Total cash equivalents $ 37,721 $ 17,293 $ — $ 55,014 Short-term investments: Municipal bonds $ — $ 93,516 $ — $ 93,516 Commercial paper — 11,176 — 11,176 Variable-rate demand notes — 8,995 — 8,995 Certificates of deposit — 8,000 — 8,000 U.S. government agency — 3,998 — 3,998 International government bonds — 2,220 — 2,220 Corporate bonds — 996 — 996 Total short-term investments $ — $ 128,901 $ — $ 128,901 Long-term investments: Auction rate securities $ — $ — $ 7,126 $ 7,126 Total long-term investments $ — $ — $ 7,126 $ 7,126 Other assets, net: Derivative instruments $ — $ 92 $ — $ 92 Total $ — $ 92 $ — $ 92 Total $ 37,721 $ 146,286 $ 7,126 $ 191,133 Liabilities: Accrued expenses: Contingent consideration $ — $ — $ 4,749 $ 4,749 Other non-current liabilities: Contingent consideration $ — $ — $ 9,324 $ 9,324 Total $ — $ — $ 14,073 $ 14,073 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 $ 6,845 Discounted cash flow Estimated yield 1.09% Expected holding period 10 years Estimated discount rate 3.27% 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 The Company has followed an established internal control procedure used in valuing contingent consideration. The valuation of contingent consideration for the Energy Micro acquisition was based on a Monte Carlo simulation model. The fair value of this valuation was estimated on a quarterly basis through a collaborative effort by the Company’s sales, marketing and finance departments. The following summarizes the activity in Level 3 financial instruments for the three months ended April 2, 2016 (in thousands): Assets Auction Rate Securities Three Months Beginning balance $ 7,126 Loss included in other comprehensive loss (281 ) Balance at April 2, 2016 $ 6,845 Liabilities Contingent Consideration (1) Three Months Beginning balance $ 14,073 Settlements (2) (11,375 ) Gain recognized in earnings (3) (2,698 ) Balance at April 2, 2016 $ — (1) (2) Acquisitions (3) 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 April 2, 2016 and January 2, 2016, the fair value of the Company’s debt under the Credit Facilities was approximately $75.0 million and $77.5 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	3 Months Ended
	Apr. 02, 2016
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 April 2, January 2, Work in progress $ 34,689 $ 36,774 Finished goods 14,234 17,121 $ 48,923 $ 53,895

Acquisitions

Acquisitions	3 Months Ended
	Apr. 02, 2016
Acquisitions
Acquisitions	7. Energy Micro On July 1, 2013, the Company acquired Energy Micro. In the first quarter of 2015, the Company made the following payments in connection with the Energy Micro 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 was recorded as compensation expense during fiscal 2014. The remaining approximately $4.5 million of the earn-out payment represented additional consideration. On March 11, 2016, the Company entered into an agreement with Energy AS, the former parent of Energy Micro. The agreement settled the amount of the earn-out to be paid for fiscal 2015 through 2018. The total settlement amount was approximately $16.0 million (in lieu of potential payments of up to $26.7 million) and will be paid on or before May 11, 2016. The settlement amount represented approximately $11.4 million of additional consideration and approximately $4.6 million of compensation expense (of which approximately $2.7 million was recorded in the three months ended April 2, 2016 and approximately $1.9 million was recorded in fiscal 2015). The compensation expense recorded in fiscal 2016 was offset in part by a gain of approximately $2.7 million

Debt

Debt	3 Months Ended
	Apr. 02, 2016
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 April 2, 2016, the Company was in compliance with all covenants of the 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 April 2, 2016, 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	3 Months Ended
	Apr. 02, 2016
Stockholders' Equity
Stockholders' Equity	9. Stockholders’ Equity Common Stock The Company issued 0.4 million shares of common stock during the three months ended April 2, 2016. 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 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 0.4 million shares of its common stock for $18.5 million during the three 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 2, 2016 $ 60 $ (567 ) $ (507 ) Other comprehensive loss before reclassifications (186 ) (163 ) (349 ) Amount reclassified from accumulated other comprehensive loss 43 — 43 Net change for the period (143 ) (163 ) (306 ) Balance at April 2, 2016 $ (83 ) $ (730 ) $ (813 ) Reclassifications From Accumulated Other Comprehensive Loss Three Months Ended Reclassification (in thousands) April 2, April 4, Losses on cash flow hedges to: Interest expense $ (66 ) $ (130 ) Losses on available-for-sales securities to: Interest income — (10 ) (66 ) (140 ) Income tax benefit 23 49 Total reclassifications $ (43 ) $ (91 )

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Apr. 02, 2016
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 (such as restricted stock units (RSUs), performance stock units (PSUs) and restricted stock awards (RSAs)) 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 April 2, April 4, Cost of revenues $ 266 $ 230 Research and development 4,910 4,795 Selling, general and administrative 5,168 5,494 10,344 10,519 Income tax benefit 2,236 1,304 $ 8,108 $ 9,215 The Company had approximately $77.3 million of total unrecognized compensation costs related to granted stock awards as of April 2, 2016 that are expected to be recognized over a weighted-average period of approximately 2.5 years. There were no significant stock-based compensation costs capitalized into assets in any of the periods presented.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Apr. 02, 2016
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 three United States Patents (the “Cresta Patents”). The Delaware District Court action has been stayed. On January 28, 2014, Cresta Technology also filed a complaint with the United States International Trade Commission (“ITC”) alleging infringement of the same patents. 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. The ITC found no violation by the Company and terminated the investigation. On November 30, 2015, Cresta Technology filed an appeal of the ITC decision to the Federal Circuit. On March 8, 2016, pursuant to a stipulated dismissal, the Federal Circuit dismissed Cresta Technology’s appeal in its entirety. In a parallel process, the Company challenged the validity of the claims of the Cresta Patents asserted in the ITC investigation through a series of Inter-Partes Review (IPR) proceedings at the Patent Trial and Appeal Board (PTAB) of the United States Patent and Trademark Office (USPTO). On October 21, 2015, the USPTO issued final written decisions on a first set of reviewed claims finding all of the reviewed claims invalid. On December 18, 2015, Cresta Technology appealed those adverse decisions to the United States Court of Appeals for the Federal Circuit as to this first USPTO determination. The USPTO has instituted a second set of IPR proceedings against a second set of the remaining claims. On March 18, 2016, Cresta Technology filed for chapter 7 bankruptcy in the United States Bankruptcy Court for the Northern District of California. The second set of IPR proceedings are currently stayed due to Cresta Technology’s bankruptcy petition. 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 six United States Patents. The Company is seeking a permanent injunction and an award of damages and attorney fees. As a result of the chapter 7 bankruptcy filing by Cresta Technology, these proceedings are currently stayed. 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 Condensed Consolidated Balance Sheet related to such indemnification obligations in connection with the Cresta Technology litigation. The Company intends to continue to vigorously defend against Cresta Technology’s allegations and to continue to pursue its claims against Cresta and their patents. 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	3 Months Ended
	Apr. 02, 2016
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. On March 11, 2016, the Company entered into an agreement which settled the amount of the earn-out to be paid for fiscal 2015 through 2018. Under this agreement, Mr. Førre will receive approximately $4.8 million of the $16.0 million that will be paid. Alf-Egil Bogen served on the Company’s board of directors from October 17, 2013 to April 21, 2016. 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. Under the settlement agreement, Mr. Bogen will receive approximately $0.3 million of the $16.0 million that will be paid for fiscal 2015 through 2018 earn-out. Mr. Bogen had invested approximately $0.8 million in Energy Micro prior to the acquisition.

Income Taxes

Income Taxes	3 Months Ended
	Apr. 02, 2016
Income Taxes
Income Taxes	13. Income Taxes Provision for income taxes includes both domestic and foreign income taxes at the applicable tax rates adjusted for non-deductible expenses, research and development tax credits and other permanent differences. At April 2, 2016, the Company had gross unrecognized tax benefits of $4.2 million, of which $3.2 million 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 $1.1 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 December 1, 2015, the U.S. Tax Court issued its final decision with respect to Altera Corporation’s litigation with the Internal Revenue Service (“IRS”). The litigation relates to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. In its final decision, the Court accepted Altera’s position of excluding stock-based compensation from its cost-sharing arrangement and concluded that the related IRS Regulations were invalid. In February 2016, the IRS appealed the decision to the U.S Court of Appeals for the Ninth Circuit. Although the IRS has appealed the decision, based on the facts and circumstances of the Tax Court Case, the Company believes that it is more likely than not that the Tax Court decision will be upheld. Therefore, the Company continues to reflect the effects of the decision in its Condensed Consolidated Financial Statements. This change to cost-sharing is expected to increase the Company’s cumulative foreign earnings at the time of final resolution of the case. As such, the Company continues to accrue a deferred tax liability for the U.S. tax cost of potential repatriation of the associated foreign earnings because at this time, the Company cannot reasonably conclude that it will have the ability and intent to indefinitely reinvest these contingent earnings. The overall net impact on the Company’s Condensed Consolidated Financial Statements is not material. The Company will continue to monitor ongoing developments and potential impacts to its Condensed Consolidated Financial Statements. The tax years 2011 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)	3 Months Ended
	Apr. 02, 2016
Significant Accounting Policies
Revenue Recognition	Revenue Recognition Revenues are generated predominately by sales of the Company’s products. 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)	3 Months Ended
	Apr. 02, 2016
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 April 2, April 4, Net income $ 5,808 $ 6,378 Shares used in computing basic earnings per share 41,629 42,412 Effect of dilutive securities: Stock options and other stock-based awards 570 737 Shares used in computing diluted earnings per share 42,199 43,149 Earnings per share: Basic $ 0.14 $ 0.15 Diluted $ 0.14 $ 0.15

Cash, Cash Equivalents and In22

Cash, Cash Equivalents and Investments (Tables)	3 Months Ended
	Apr. 02, 2016
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): April 2, 2016 Cost Gross Gross Fair Value Cash and cash equivalents: Cash on hand $ 76,197 $ — $ — $ 76,197 Available-for-sale securities: Money market funds 40,720 — — 40,720 Municipal bonds 5,724 — — 5,724 Certificates of deposit 2,849 — — 2,849 Commercial paper 1,200 — — 1,200 Total available-for-sale securities 50,493 — — 50,493 Total cash and cash equivalents $ 126,690 $ — $ — $ 126,690 Short-term investments: Available-for-sale securities: Municipal bonds $ 85,668 $ (14 ) $ 55 $ 85,709 Variable-rate demand notes 18,395 — — 18,395 Corporate bonds 8,021 (18 ) — 8,003 U.S. government bonds 6,004 — 5 6,009 Asset-backed securities 3,995 — 3 3,998 Commercial paper 2,489 — — 2,489 International government bonds 2,220 — 1 2,221 Total short-term investments $ 126,792 $ (32 ) $ 64 $ 126,824 Long-term investments: Available-for-sale securities: Auction rate securities $ 8,000 $ (1,155 ) $ — $ 6,845 Total long-term investments $ 8,000 $ (1,155 ) $ — $ 6,845 January 2, 2016 Cost Gross Gross Fair Value Cash and cash equivalents: Cash on hand $ 59,071 $ — $ — $ 59,071 Available-for-sale securities: — Money market funds 37,721 — — 37,721 Commercial paper 11,272 — — 11,272 Certificates of deposit 2,845 — — 2,845 U.S. government agency 1,599 — — 1,599 Municipal bonds 1,576 — 1 1,577 Total available-for-sale securities 55,013 — 1 55,014 Total cash and cash equivalents $ 114,084 $ — $ 1 $ 114,085 Short-term investments: Available-for-sale securities: Municipal bonds $ 93,506 $ (32 ) $ 42 $ 93,516 Commercial paper 11,176 — — 11,176 Variable-rate demand notes 8,995 — — 8,995 Certificates of deposit 8,000 — — 8,000 U.S. government agency 3,997 — 1 3,998 International government bonds 2,227 (7 ) — 2,220 Corporate bonds 999 (3 ) — 996 Total short-term investments $ 128,900 $ (42 ) $ 43 $ 128,901 Long-term investments: Available-for-sale securities: Auction rate securities $ 8,000 $ (874 ) $ — $ 7,126 Total long-term investments $ 8,000 $ (874 ) $ — $ 7,126
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 April 2, 2016 Fair Gross Fair Gross Fair Gross Municipal bonds $ 27,767 $ (11 ) $ 2,708 $ (3 ) $ 30,475 $ (14 ) Corporate bonds 8,003 (18 ) — — 8,003 (18 ) Auction rate securities — — 6,845 (1,155 ) 6,845 (1,155 ) $ 35,770 $ (29 ) $ 9,553 $ (1,158 ) $ 45,323 $ (1,187 ) Less Than 12 Months 12 Months or Greater Total As of January 2, 2016 Fair Gross Fair Gross Fair Gross Municipal bonds $ 29,271 $ (30 ) $ 1,198 $ (2 ) $ 30,469 $ (32 ) Auction rate securities — — 7,126 (874 ) 7,126 (874 ) International government bonds 2,220 (7 ) — — 2,220 (7 ) Corporate bonds 996 (3 ) — — 996 (3 ) $ 32,487 $ (40 ) $ 8,324 $ (876 ) $ 40,811 $ (916 )
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 $ 114,458 $ 114,470 Due after one year through ten years 41,002 41,022 Due after ten years 29,825 28,670 $ 185,285 $ 184,162

Derivative Financial Instrume23

Derivative Financial Instruments (Tables)	3 Months Ended
	Apr. 02, 2016
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 April 2, January 2, Interest rate swap Other assets, net $ — $ 92 Other non-current liabilities 129 —
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): Loss Recognized in Location of Loss Loss Reclassified Three Months Ended Three Months Ended April 2, April 4, April 2, April 4, Interest rate swaps $ (286 ) $ (626 ) Interest expense $ (66 ) $ (130 )
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 Gain (Loss) Recognized in Income April 2, April 4, Location Foreign currency forward contracts $ (300 ) $ 550 Other income (expense), net

Fair Value of Financial Instr24

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Apr. 02, 2016
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). 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 $ 40,720 $ — $ — $ 40,720 Municipal bonds — 5,724 — 5,724 Certificates of deposit — 2,849 — 2,849 Commercial paper — 1,200 — 1,200 Total cash equivalents $ 40,720 $ 9,773 $ — $ 50,493 Short-term investments: Municipal bonds $ — $ 85,709 $ — $ 85,709 Variable-rate demand notes — 18,395 — 18,395 Corporate bonds — 8,003 — 8,003 U.S. government bonds 6,009 — — 6,009 Asset-backed securities — 3,998 — 3,998 Commercial paper — 2,489 — 2,489 International government bonds — 2,221 — 2,221 Total short-term investments $ 6,009 $ 120,815 $ — $ 126,824 Long-term investments: Auction rate securities $ — $ — $ 6,845 $ 6,845 Total long-term investments $ — $ — $ 6,845 $ 6,845 Total $ 46,729 $ 130,588 $ 6,845 $ 184,162 Liabilities: Other non-current liabilities: Derivative instruments $ — $ 129 $ — $ 129 Total $ — $ 129 $ — $ 129 Fair Value Measurements Description Quoted Prices in Significant Other Significant Total Assets: Cash equivalents: Money market funds $ 37,721 $ — $ — $ 37,721 Commercial paper — 11,272 — 11,272 Certificates of deposit — 2,845 — 2,845 U.S. government agency — 1,599 — 1,599 Municipal bonds — 1,577 — 1,577 Total cash equivalents $ 37,721 $ 17,293 $ — $ 55,014 Short-term investments: Municipal bonds $ — $ 93,516 $ — $ 93,516 Commercial paper — 11,176 — 11,176 Variable-rate demand notes — 8,995 — 8,995 Certificates of deposit — 8,000 — 8,000 U.S. government agency — 3,998 — 3,998 International government bonds — 2,220 — 2,220 Corporate bonds — 996 — 996 Total short-term investments $ — $ 128,901 $ — $ 128,901 Long-term investments: Auction rate securities $ — $ — $ 7,126 $ 7,126 Total long-term investments $ — $ — $ 7,126 $ 7,126 Other assets, net: Derivative instruments $ — $ 92 $ — $ 92 Total $ — $ 92 $ — $ 92 Total $ 37,721 $ 146,286 $ 7,126 $ 191,133 Liabilities: Accrued expenses: Contingent consideration $ — $ — $ 4,749 $ 4,749 Other non-current liabilities: Contingent consideration $ — $ — $ 9,324 $ 9,324 Total $ — $ — $ 14,073 $ 14,073
Summary of quantitative information about level 3 asset fair value measurements	The following summarizes quantitative information about Level 3 fair value measurements. Auction rate securities Fair Value at Valuation Technique Unobservable Input Weighted Average $ 6,845 Discounted cash flow Estimated yield 1.09% Expected holding period 10 years Estimated discount rate 3.27%
Summary of activity in Level 3 financial instruments	The following summarizes the activity in Level 3 financial instruments for the three months ended April 2, 2016 (in thousands): Assets Auction Rate Securities Three Months Beginning balance $ 7,126 Loss included in other comprehensive loss (281 ) Balance at April 2, 2016 $ 6,845 Liabilities Contingent Consideration (1) Three Months Beginning balance $ 14,073 Settlements (2) (11,375 ) Gain recognized in earnings (3) (2,698 ) Balance at April 2, 2016 $ — (1) (2) Acquisitions (3)

Balance Sheet Details (Tables)

Balance Sheet Details (Tables)	3 Months Ended
	Apr. 02, 2016
Balance Sheet Details
Inventories	The following shows the details of selected Condensed Consolidated Balance Sheet items (in thousands): Inventories April 2, January 2, Work in progress $ 34,689 $ 36,774 Finished goods 14,234 17,121 $ 48,923 $ 53,895

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Apr. 02, 2016
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
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 2, 2016 $ 60 $ (567 ) $ (507 ) Other comprehensive loss before reclassifications (186 ) (163 ) (349 ) Amount reclassified from accumulated other comprehensive loss 43 — 43 Net change for the period (143 ) (163 ) (306 ) Balance at April 2, 2016 $ (83 ) $ (730 ) $ (813 )
Schedule of Reclassifications From Accumulated Other Comprehensive Loss	Three Months Ended Reclassification (in thousands) April 2, April 4, Losses on cash flow hedges to: Interest expense $ (66 ) $ (130 ) Losses on available-for-sales securities to: Interest income — (10 ) (66 ) (140 ) Income tax benefit 23 49 Total reclassifications $ (43 ) $ (91 )

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Apr. 02, 2016
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 April 2, April 4, Cost of revenues $ 266 $ 230 Research and development 4,910 4,795 Selling, general and administrative 5,168 5,494 10,344 10,519 Income tax benefit 2,236 1,304 $ 8,108 $ 9,215

Significant Accounting Polici28

Significant Accounting Policies (Details)	3 Months Ended	12 Months Ended
	Apr. 02, 2016	Jan. 02, 2016
Basis of Presentation and Principles of Consolidation
Length of fiscal year	364 days	364 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
	Apr. 02, 2016	Apr. 04, 2015
Earnings Per Share
Net income	$ 5,808	$ 6,378
Shares used in computing basic earnings per share	41,629	42,412
Effect of dilutive securities:
Stock options and other stock-based awards (in shares)	570	737
Shares used in computing diluted earnings per share	42,199	43,149
Earnings per share:
Basic (in dollars per share)	$ 0.14	$ 0.15
Diluted (in dollars per share)	$ 0.14	$ 0.15
Shares excluded from computation of diluted earning per share	800	100

Cash, Cash Equivalents and In30

Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Jan. 02, 2016
Available-for-sale securities
Available-for-sale securities, Cost	$ 185,285
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	76,197	$ 59,071
Cash on hand, Fair Value	76,197	59,071
Cash and cash equivalents, Cost	126,690	114,084
Cash and cash equivalents, Gross Unrealized Gains		1
Cash and cash equivalents, Fair Value	126,690	114,085
Cash Equivalents:
Available-for-sale securities
Available-for-sale securities, Cost	50,493	55,013
Available-for-sale securities, Gross Unrealized Gains		1
Available-for-sale securities, Fair Value	50,493	55,014
Short-term Investments:
Available-for-sale securities
Available-for-sale securities, Cost	126,792	128,900
Available-for-sale securities, Gross Unrealized Losses	(32)	(42)
Available-for-sale securities, Gross Unrealized Gains	64	43
Available-for-sale securities, Fair Value	126,824	128,901
Long-term Investments:
Available-for-sale securities
Available-for-sale securities, Cost	8,000	8,000
Available-for-sale securities, Gross Unrealized Losses	(1,155)	(874)
Available-for-sale securities, Fair Value	6,845	7,126
Money market funds | Cash Equivalents:
Available-for-sale securities
Available-for-sale securities, Cost	40,720	37,721
Available-for-sale securities, Fair Value	40,720	37,721
Municipal bonds | Cash Equivalents:
Available-for-sale securities
Available-for-sale securities, Cost	5,724	1,576
Available-for-sale securities, Gross Unrealized Gains		1
Available-for-sale securities, Fair Value	5,724	1,577
Municipal bonds | Short-term Investments:
Available-for-sale securities
Available-for-sale securities, Cost	85,668	93,506
Available-for-sale securities, Gross Unrealized Losses	(14)	(32)
Available-for-sale securities, Gross Unrealized Gains	55	42
Available-for-sale securities, Fair Value	85,709	93,516
Commercial paper | Cash Equivalents:
Available-for-sale securities
Available-for-sale securities, Cost	1,200	11,272
Available-for-sale securities, Fair Value	1,200	11,272
Commercial paper | Short-term Investments:
Available-for-sale securities
Available-for-sale securities, Cost	2,489	11,176
Available-for-sale securities, Fair Value	2,489	11,176
Variable-rate demand notes | Short-term Investments:
Available-for-sale securities
Available-for-sale securities, Cost	18,395	8,995
Available-for-sale securities, Fair Value	18,395	8,995
Certificates of deposit | Cash Equivalents:
Available-for-sale securities
Available-for-sale securities, Cost	2,849	2,845
Available-for-sale securities, Fair Value	2,849	2,845
Certificates of deposit | Short-term Investments:
Available-for-sale securities
Available-for-sale securities, Cost		8,000
Available-for-sale securities, Fair Value		8,000
US government agency | Cash Equivalents:
Available-for-sale securities
Available-for-sale securities, Cost		1,599
Available-for-sale securities, Fair Value		1,599
US government agency | Short-term Investments:
Available-for-sale securities
Available-for-sale securities, Cost		3,997
Available-for-sale securities, Gross Unrealized Gains		1
Available-for-sale securities, Fair Value		3,998
International government bonds | Short-term Investments:
Available-for-sale securities
Available-for-sale securities, Cost	2,220	2,227
Available-for-sale securities, Gross Unrealized Losses		(7)
Available-for-sale securities, Gross Unrealized Gains	1
Available-for-sale securities, Fair Value	2,221	2,220
Corporate bonds | Short-term Investments:
Available-for-sale securities
Available-for-sale securities, Cost	8,021	999
Available-for-sale securities, Gross Unrealized Losses	(18)	(3)
Available-for-sale securities, Fair Value	8,003	996
U.S. government bonds | Short-term Investments:
Available-for-sale securities
Available-for-sale securities, Cost	6,004
Available-for-sale securities, Gross Unrealized Gains	5
Available-for-sale securities, Fair Value	6,009
Asset-backed securities | Short-term Investments:
Available-for-sale securities
Available-for-sale securities, Cost	3,995
Available-for-sale securities, Gross Unrealized Gains	3
Available-for-sale securities, Fair Value	3,998
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	(1,155)	(874)
Available-for-sale securities, Fair Value	$ 6,845	$ 7,126

Cash, Cash Equivalents and In31

Cash, Cash Equivalents and Investments - Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months	$ 35,770	$ 32,487
Fair value of available-for-sale securities, continuous loss position for twelve months or longer	9,553	8,324
Total fair value of available-for-sale securities, continuous loss position	45,323	40,811
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses	(29)	(40)
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses	(1,158)	(876)
Available-for-sale securities, total gross unrealized losses	(1,187)	(916)
Cost
Due in one year or less, Cost	114,458
Due after one year through ten years, Cost	41,002
Due after ten years, Cost	29,825
Total Cost	185,285
Fair Value
Due in one year or less, Fair Value	114,470
Due after one year through ten years, Fair Value	41,022
Due after ten years, Fair Value	28,670
Total Fair Value	184,162
Municipal bonds
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months	27,767	29,271
Fair value of available-for-sale securities, continuous loss position for twelve months or longer	2,708	1,198
Total fair value of available-for-sale securities, continuous loss position	30,475	30,469
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses	(11)	(30)
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses	(3)	(2)
Available-for-sale securities, total gross unrealized losses	(14)	(32)
Auction rate securities
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for twelve months or longer	6,845	7,126
Total fair value of available-for-sale securities, continuous loss position	6,845	7,126
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses	(1,155)	(874)
Available-for-sale securities, total gross unrealized losses	(1,155)	(874)
International government bonds
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months		2,220
Total fair value of available-for-sale securities, continuous loss position		2,220
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses		(7)
Available-for-sale securities, total gross unrealized losses		(7)
Corporate bonds
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months	8,003	996
Total fair value of available-for-sale securities, continuous loss position	8,003	996
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses	(18)	(3)
Available-for-sale securities, total gross unrealized losses	$ (18)	$ (3)

Derivative Financial Instrume32

Derivative Financial Instruments (Details) $ in Millions	Apr. 02, 2016USD ($)
Cash flow hedges | Interest rate swaps
Notional amount
Original notional value	$ 100

Derivative Financial Instrume33

Derivative Financial Instruments - Financial Instrument (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Jan. 02, 2016
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		$ 92
Other non-current liabilities:
Derivative financial instrument
Fair value of interest rate swap	$ 129

Derivative Financial Instrume34

Derivative Financial Instruments - Before-tax Effect (Details) $ in Thousands	3 Months Ended
	Apr. 02, 2016USD ($)contract	Apr. 04, 2015USD ($)contract
Derivative Instruments, Gain (Loss)
Reclassification of interest rate swap losses included in accumulated other comprehensive loss into earnings in the next 12 months	$ 100
Not Designated as Hedging Instrument | Foreign currency forward contracts
Derivative Instruments, Gain (Loss)
Number of foreign currency forward contract held | contract	1	1
Original notional value	$ 4,800	$ 6,800
Not Designated as Hedging Instrument | Foreign currency forward contracts | Other income (expense), net
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Income	(300)	550
Cash flow hedges | Interest rate swaps
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) during period	(286)	(626)
Original notional value	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	$ (66)	$ (130)

Fair Value of Financial Instr35

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	$ 126,690	$ 114,085
Total short-term investments	126,824	128,901
Total long-term investments	6,845	7,126
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	50,493	55,014
Total short-term investments	126,824	128,901
Total long-term investments	6,845	7,126
Derivative instruments		92
Other assets, net		92
Total assets at fair value	184,162	191,133
Total liabilities at fair value	129	14,073
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		4,749
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		9,324
Derivative instruments	129
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	40,720	37,721
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	2,849	2,845
Total short-term investments		8,000
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	1,200	11,272
Total short-term investments	2,489	11,176
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	5,724	1,577
Total short-term investments	85,709	93,516
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	18,395	8,995
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	3,998
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	2,221	2,220
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		1,599
Total short-term investments		3,998
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 short-term investments	8,003	996
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 short-term investments	6,009
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	6,845	7,126
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	40,720	37,721
Total short-term investments	6,009
Total assets at fair value	46,729	37,721
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	40,720	37,721
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 short-term investments	6,009
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	9,773	17,293
Total short-term investments	120,815	128,901
Derivative instruments		92
Other assets, net		92
Total assets at fair value	130,588	146,286
Total liabilities at fair value	129
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	129
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	2,849	2,845
Total short-term investments		8,000
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	1,200	11,272
Total short-term investments	2,489	11,176
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	5,724	1,577
Total short-term investments	85,709	93,516
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	18,395	8,995
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	3,998
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	2,221	2,220
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		1,599
Total short-term investments		3,998
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 short-term investments	8,003	996
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	6,845	7,126
Total assets at fair value	6,845	7,126
Total liabilities at fair value		14,073
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		4,749
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		9,324
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	$ 6,845	$ 7,126

Fair Value of Financial Instr36

Fair Value of Financial Instruments - Auction Rate Securities (Details) - Auction rate securities - Significant Unobservable Inputs (Level 3) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Jan. 02, 2016
Weighted Average | Discounted cash flow
Quantitative information for Level 3 Fair Value Measurements Assets
Estimated yield (as a percent)	1.09%
Expected holding period	10 years
Estimated discount rate (as a percent)	3.27%
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	$ 6,845	$ 7,126

Fair Value of Financial Instr37

Fair Value of Financial Instruments - Assets in Level 3 (Details) - Assets and liabilities measured at fair value on recurring basis - Significant Unobservable Inputs (Level 3) - Auction rate securities $ in Thousands	3 Months Ended
	Apr. 02, 2016USD ($)
Fair value assets reconciliation of changes
Balance at the beginning of the period	$ 7,126
Loss included in other comprehensive loss	(281)
Balance at the end of the period	$ 6,845

Fair Value of Financial Instr38

Fair Value of Financial Instruments - Liabilities in Level 3 (Details) - USD ($) $ in Thousands	Mar. 11, 2016	Apr. 02, 2016	Jan. 02, 2016
Credit Facilities
Fair value liabilities reconciliation of changes
Fair value of debt		$ 75,000	$ 77,500
Energy Micro
Fair value liabilities reconciliation of changes
Gain recognized in earnings		(2,700)
Compensation expense	$ 4,600	2,700	1,900
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		14,073
Settlements		(11,375)
Gain recognized in earnings		$ (2,698)
Balance at the end of the period			$ 14,073

Balance Sheet Details (Details)

Balance Sheet Details (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Inventories
Work in progress	$ 34,689	$ 36,774
Finished goods	14,234	17,121
Total inventories	$ 48,923	$ 53,895

Acquisitions (Details)

Acquisitions (Details) - USD ($) $ in Thousands	Mar. 11, 2016	Apr. 02, 2016	Apr. 04, 2015	Jan. 02, 2016
Acquisition
Payment of earn-out for the first annual period			$ 4,464
Energy Micro
Acquisition
Cash consideration			20,000
Payment of earn-out for the first annual period			6,300
Earn-out payment representing the Departure Percentage portion and recorded as compensation expense			1,800
Remaining Earn-out payment representing additional consideration			$ 4,500
Earn-Out, fair value	$ 16,000
Potential maximum contingent consideration that could be paid	26,700
Additional consideration	11,400
Compensation expense	$ 4,600	$ 2,700		$ 1,900
Gain from the adjustment to fair value due to settlement		$ 2,700

Debt (Details)

Debt (Details) $ in Millions	Jul. 24, 2015USD ($)	Jul. 31, 2012USD ($)	Apr. 02, 2016
Credit Facilities
Debt
Maximum borrowing capacity		$ 100
Fixed interest rate percentage			0.764%
Combined interest rate percentage			2.264%
Credit Agreement
Debt
Maximum borrowing capacity		$ 230
Term of debt instrument		5 years
Amount borrowed under the Amended Credit Agreement	$ 82.5
Maximum leverage ratio			3
Minimum fixed charge coverage ratio			1.25
Revolving Credit Facility
Debt
Maximum borrowing capacity	$ 300	$ 130
Term of debt instrument	5 years
Sublimit on letters of credit		25
Sublimit on swingline loan		$ 10
Additional increase in borrowing capacity of the line of credit available at the entity's option	$ 200
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 - Componen

Stockholders' Equity - Components of AOCI (Details) - USD ($) $ in Thousands, shares in Millions	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015	Aug. 31, 2015	Oct. 31, 2014	Jan. 31, 2014
Number of shares of common stock issued	0.4
Program Amount authorized to repurchase			$ 100,000	$ 100,000	$ 100,000
Repurchase of common stock (in shares)	0.4	0.2
Repurchase of common stock	$ 18,500	$ 10,100
Components of accumulated other comprehensive loss, net of taxes
Balance	761,114
Other comprehensive loss	(306)	$ (329)
Balance	749,447
Unrealized Gain on Cash Flow Hedge
Components of accumulated other comprehensive loss, net of taxes
Balance	60
Other comprehensive loss before reclassifications	(186)
Amounts reclassified from accumulated other comprehensive loss	43
Other comprehensive loss	(143)
Balance	(83)
Net Unrealized Losses on Available-For-Sale Securities
Components of accumulated other comprehensive loss, net of taxes
Balance	(567)
Other comprehensive loss before reclassifications	(163)
Other comprehensive loss	(163)
Balance	(730)
Accumulated Other Comprehensive Loss
Components of accumulated other comprehensive loss, net of taxes
Balance	(507)
Other comprehensive loss before reclassifications	(349)
Amounts reclassified from accumulated other comprehensive loss	43
Other comprehensive loss	(306)
Balance	$ (813)

Stockholders' Equity - Reclassi

Stockholders' Equity - Reclassified from AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Amounts Reclassified from AOCI
Interest expense	$ (655)	$ (745)
Income before income taxes	6,073	7,067
Income tax benefit	(265)	(689)
Net income	5,808	6,378
Reclassifications From Accumulated Other Comprehensive Loss
Amounts Reclassified from AOCI
Income before income taxes	(66)	(140)
Income tax benefit	23	49
Net income	(43)	(91)
Unrealized Gain on Cash Flow Hedge | Reclassifications From Accumulated Other Comprehensive Loss
Amounts Reclassified from AOCI
Interest expense	$ (66)	(130)
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
	Apr. 02, 2016	Apr. 04, 2015
Stock-based compensation costs
Share based compensation cost before tax	$ 10,344	$ 10,519
Income tax benefit	2,236	1,304
Share based compensation cost after tax	8,108	9,215
Total unrecognized compensation costs related to awards	$ 77,300
Weighted-average period of recognition of unrecognized compensation costs	2 years 6 months
Cost of revenues
Stock-based compensation costs
Share based compensation cost before tax	$ 266	230
Research and development
Stock-based compensation costs
Share based compensation cost before tax	4,910	4,795
Selling, general and administrative
Stock-based compensation costs
Share based compensation cost before tax	$ 5,168	$ 5,494

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	Oct. 17, 2013	Jul. 01, 2013	Apr. 04, 2015	Mar. 11, 2016
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
Total settlement amount				16,000
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				4,800
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				$ 300
Investment in acquired entity by related party prior to the acquisition		$ 800

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Deferred:
Income tax expense	$ 265	$ 689
Effective income tax rate reconciliation
Effective income tax rate (as a percent)	4.40%	9.70%
Components of deferred taxes
Gross unrecognized tax benefits	$ 4,200
Gross unrecognized tax benefits which would affect the effective tax rate if recognized	3,200
Amount of estimated decrease in unrecognized tax benefits	$ 1,100