Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 24, 2022 | Jul. 02, 2021 | |
Document and Entity Information | |||
Entity Registrant Name | SILICON LABORATORIES INC. | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --01-01 | ||
Document Period End Date | Jan. 1, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 000-29823 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 74-2793174 | ||
Entity Address, Address Line One | 400 West Cesar Chavez | ||
Entity Address, City or Town | Austin | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 78701 | ||
City Area Code | 512 | ||
Local Phone Number | 416-8500 | ||
Title of 12(b) Security | Common Stock, $0.0001 par value | ||
Trading Symbol | SLAB | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 6.7 | ||
Entity Common Stock, Shares Outstanding | 38,198,127 | ||
Entity Central Index Key | 0001038074 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Firm ID | 42 | ||
Auditor Location | Austin, Texas |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,074,623 | $ 202,720 |
Short-term investments | 964,582 | 521,963 |
Accounts receivable, net | 98,313 | 95,169 |
Inventories | 49,307 | 47,861 |
Prepaid expenses and other current assets | 51,748 | 87,103 |
Current assets of discontinued operations | 21,005 | |
Total current assets | 2,238,573 | 975,821 |
Property and equipment, net | 146,516 | 135,803 |
Goodwill | 376,389 | 376,389 |
Other intangible assets, net | 118,978 | 163,483 |
Other assets, net | 77,839 | 76,675 |
Non-current assets of discontinued operations | 265,316 | |
Total assets | 2,958,295 | 1,993,487 |
Current liabilities: | ||
Accounts payable | 47,327 | 54,949 |
Current portion of convertible debt, net | 450,599 | 134,480 |
Deferred revenue and returns liability | 13,849 | 12,986 |
Other current liabilities | 157,052 | 81,650 |
Current liabilities of discontinued operations | 433 | |
Total current liabilities | 668,827 | 284,498 |
Convertible debt, net | 428,945 | |
Other non-current liabilities | 77,044 | 79,752 |
Non-current liabilities of discontinued operations | 451 | |
Total liabilities | 745,871 | 793,646 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock - $0.0001 par value; 10,000 shares authorized; no shares issued | ||
Common stock - $0.0001 par value; 250,000 shares authorized; 38,481 and 43,925 shares issued and outstanding at January 1, 2022 and January 2, 2021, respectively | 4 | 4 |
Additional paid-in capital | 204,359 | |
Retained earnings | 2,214,839 | 993,664 |
Accumulated other comprehensive income (loss) | (2,419) | 1,814 |
Total stockholders' equity | 2,212,424 | 1,199,841 |
Total liabilities and stockholders' equity | $ 2,958,295 | $ 1,993,487 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Consolidated Balance Sheets | ||
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 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 250,000 | 250,000 |
Common stock, shares issued | 38,481 | 43,925 |
Common stock, shares outstanding | 38,481 | 43,925 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Consolidated Statements of Income | |||
Revenues | $ 720,860 | $ 510,928 | $ 473,785 |
Cost of revenues | 295,468 | 216,083 | 193,571 |
Gross profit | 425,392 | 294,845 | 280,214 |
Operating expenses: | |||
Research and development | 273,208 | 235,185 | 205,690 |
Selling, general and administrative | 185,022 | 166,748 | 163,167 |
Operating expenses | 458,230 | 401,933 | 368,857 |
Operating loss | (32,838) | (107,088) | (88,643) |
Other income (expense): | |||
Interest income and other, net | 5,696 | 9,027 | 12,865 |
Interest expense | (31,033) | (34,142) | (20,233) |
Loss from continuing operations before income taxes | (58,175) | (132,203) | (96,011) |
Provision (benefit) for income taxes | 13,427 | (14,602) | 6,984 |
Equity-method earnings | 13,728 | 2,116 | 320 |
Loss from continuing operations | (57,874) | (115,485) | (102,675) |
Income from discontinued operations, net of income taxes | 2,175,273 | 128,016 | 121,940 |
Net income | $ 2,117,399 | $ 12,531 | $ 19,265 |
Basic earnings (loss) per share: | |||
Continuing operations (in dollars per share) | $ (1.35) | $ (2.64) | $ (2.37) |
Net income (in dollars per share) | 49.44 | 0.29 | 0.44 |
Diluted earnings (loss) per share: | |||
Continuing operations (in dollars per share) | (1.35) | (2.64) | (2.37) |
Net income (in dollars per share) | $ 47.78 | $ 0.28 | $ 0.43 |
Weighted-average common shares outstanding: | |||
Basic (in shares) | 42,830 | 43,775 | 43,346 |
Diluted (in shares) | 44,315 | 44,372 | 44,290 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Consolidated Statements of Comprehensive Income | |||
Net income | $ 2,117,399 | $ 12,531 | $ 19,265 |
Net changes to available-for-sale securities: | |||
Unrealized gains (losses) arising during the period | (4,338) | 1,131 | 2,564 |
Reclassification for gains included in net income | (335) | (510) | (218) |
Net changes to cash flow hedges: | |||
Unrealized gains (losses) arising during the period | (598) | 33 | (321) |
Reclassification for (gains) losses included in net income | (87) | 825 | 784 |
Other comprehensive income (loss), before tax | (5,358) | 1,479 | 2,809 |
Provision (benefit) for income taxes | (1,125) | 311 | 589 |
Other comprehensive income (loss) | (4,233) | 1,168 | 2,220 |
Comprehensive income | $ 2,113,166 | $ 13,699 | $ 21,485 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-In Capital | Retained EarningsCumulative effect of adoption of accounting standard | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Cumulative effect of adoption of accounting standard | Total |
Balance at Dec. 29, 2018 | $ 4 | $ 107,517 | $ 961,343 | $ (1,574) | $ 1,067,290 | ||
Balance (in shares) at Dec. 29, 2018 | 43,088 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 19,265 | 19,265 | |||||
Other comprehensive loss | 2,220 | 2,220 | |||||
Stock issuances, net of shares withheld for taxes | (1,799) | (1,799) | |||||
Stock issuances, net of shares withheld for taxes (in shares) | 709 | ||||||
Repurchases of common stock | (26,716) | (26,716) | |||||
Repurchases of common stock (in shares) | (301) | ||||||
Stock-based compensation | 54,791 | 54,791 | |||||
Balance at Dec. 28, 2019 | $ 4 | 133,793 | $ 525 | 980,608 | 646 | $ 525 | 1,115,051 |
Balance (in shares) at Dec. 28, 2019 | 43,496 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 12,531 | 12,531 | |||||
Other comprehensive loss | 1,168 | 1,168 | |||||
Stock issuances, net of shares withheld for taxes | (3,109) | (3,109) | |||||
Stock issuances, net of shares withheld for taxes (in shares) | 639 | ||||||
Repurchases of common stock | (16,287) | (16,287) | |||||
Repurchases of common stock (in shares) | (210) | ||||||
Stock-based compensation | 60,065 | 60,065 | |||||
Convertible debt activity | 29,897 | 29,897 | |||||
Balance at Jan. 02, 2021 | $ 4 | 204,359 | 993,664 | 1,814 | $ 1,199,841 | ||
Balance (in shares) at Jan. 02, 2021 | 43,925 | 43,925 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 2,117,399 | $ 2,117,399 | |||||
Other comprehensive loss | (4,233) | (4,233) | |||||
Stock issuances, net of shares withheld for taxes | (8,056) | (8,056) | |||||
Stock issuances, net of shares withheld for taxes (in shares) | 548 | ||||||
Repurchases of common stock | (253,820) | (896,224) | (1,150,044) | ||||
Repurchases of common stock (in shares) | (6,520) | ||||||
Stock-based compensation | 58,264 | 58,264 | |||||
Convertible debt activity | $ (747) | (747) | |||||
Convertible debt activity (in shares) | 528 | ||||||
Balance at Jan. 01, 2022 | $ 4 | $ 2,214,839 | $ (2,419) | $ 2,212,424 | |||
Balance (in shares) at Jan. 01, 2022 | 38,481 | 38,481 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Operating Activities | |||
Net income | $ 2,117,399 | $ 12,531 | $ 19,265 |
Adjustments to reconcile net income to cash provided by (used in) operating activities of continuing operations: | |||
Income from discontinued operations, net of income taxes | (2,175,273) | (128,016) | (121,940) |
Depreciation of property and equipment | 18,051 | 16,267 | 15,193 |
Amortization of other intangible assets | 44,505 | 42,569 | 37,734 |
Amortization of debt discount and debt issuance costs | 22,767 | 21,433 | 13,485 |
Loss on extinguishment of convertible debt | 3,370 | 4,060 | |
Stock-based compensation expense | 56,842 | 49,454 | 44,334 |
Equity-method earnings | (13,728) | (2,116) | (320) |
Deferred income taxes | (3,414) | (6,533) | 23,048 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (3,144) | (17,612) | (2,401) |
Inventories | (1,510) | 9,148 | (4,203) |
Prepaid expenses and other assets | 44,664 | (50,664) | 6,970 |
Accounts payable | (7,704) | 15,263 | 7,830 |
Other current liabilities and income taxes | 2,109 | 3,215 | (6,867) |
Deferred revenue and returns liability | 863 | (6,694) | (3,243) |
Other non-current liabilities | (14,599) | 28,856 | (6,708) |
Net cash provided by (used in) operating activities of continuing operations | 91,198 | (8,839) | 22,177 |
Investing Activities | |||
Purchases of marketable securities | (1,541,971) | (519,567) | (424,524) |
Sales and maturities of marketable securities | 1,095,041 | 497,357 | 344,937 |
Purchases of property and equipment | (28,577) | (18,088) | (15,300) |
Purchases of other assets | (1,158) | (1,210) | (7,926) |
Acquisitions of businesses, net of cash acquired | (316,809) | ||
Net cash used in investing activities of continuing operations | (476,665) | (358,317) | (102,813) |
Financing Activities | |||
Proceeds from issuance of debt | 845,000 | ||
Payments on debt | (140,572) | (624,737) | (1,132) |
Repurchases of common stock | (1,150,044) | (16,287) | (26,716) |
Payment of taxes withheld for vested stock awards | (22,239) | (18,124) | (16,295) |
Proceeds from the issuance of common stock | 14,183 | 15,015 | 14,496 |
Net cash provided by (used in) financing activities of continuing operations | (1,298,672) | 200,867 | (29,647) |
Discontinued Operations | |||
Operating activities | (191,642) | 144,557 | 144,345 |
Investing activities | 2,747,684 | (2,694) | (3,959) |
Net cash provided by discontinued operations | 2,556,042 | 141,863 | 140,386 |
Increase (decrease) in cash and cash equivalents | 871,903 | (24,426) | 30,103 |
Cash and cash equivalents at beginning of period | 202,720 | 227,146 | 197,043 |
Cash and cash equivalents at end of period | 1,074,623 | 202,720 | 227,146 |
Supplemental Disclosure of Cash Flow Information: | |||
Interest paid | 5,010 | 8,662 | 6,367 |
Income taxes paid | $ 266,277 | $ 7,217 | $ 10,291 |
Description of Business
Description of Business | 12 Months Ended |
Jan. 01, 2022 | |
Description of Business | |
Description of Business | 1. Description of Business Silicon Laboratories Inc. (the “Company”), a Delaware corporation, is a leader in secure, intelligent wireless technology for a more connected world. Our integrated hardware and software platform, intuitive development tools, industry leading ecosystem and robust support enable customers in building advanced industrial, commercial, home and life applications. The Company provides analog-intensive, mixed-signal solutions for use in a variety of electronic products in a broad range of applications for the Internet of Things (IoT) including connected home and security, industrial automation and control, smart metering, smart lighting, commercial building automation, consumer electronics, asset tracking and medical instrumentation. Within the semiconductor industry, the Company is known as a “fabless” company meaning that the integrated circuits (ICs) incorporated in its products are manufactured by third-party foundry semiconductor companies. On April 22, 2021, the Company entered into an Asset Purchase Agreement pursuant to which Skyworks Solutions, Inc. agreed to acquire certain assets, rights, and properties, and assume certain liabilities, comprising the Company’s infrastructure and automotive business for $2.75 billion in cash. The transaction closed on July 26, 2021. The financial results of the infrastructure and automotive business have been presented as discontinued operations in the Consolidated Financial Statements because the sale represented a strategic shift for the Company. Prior period financial statements have been reclassified to reflect these changes for all periods presented. See Note 3, Discontinued Operations |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Jan. 01, 2022 | |
Significant Accounting Policies | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation and Principles of Consolidation The Company prepares financial statements on a 52- or 53-week fiscal year that ends on the Saturday closest to December 31. Fiscal 2021 had 52 weeks. Fiscal 2020 had 53 weeks with the extra week occurring in the first quarter of the year. Fiscal 2019 had 52 weeks. Fiscal 2021, 2020 and 2019 ended on January 1, 2022, January 2, 2021 and December 28, 2019, respectively. The accompanying Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Foreign Currency Transactions The Company’s foreign subsidiaries are considered to be extensions of the U.S. Company. The functional currency of the foreign subsidiaries is the U.S. dollar. Accordingly, gains and losses resulting from remeasuring transactions denominated in currencies other than U.S. dollars are included in interest income and other, net in the Consolidated Statements of Income. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) 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, goodwill, acquired intangible assets, other long-lived assets, revenue recognition, stock-based compensation and income taxes. Actual results could differ from those estimates, and such differences could be material to the financial statements. Fair Value of Financial Instruments The fair values of the Company’s financial instruments are recorded using a hierarchical 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 other than Level 1 that are directly or indirectly observable, such as quoted prices for similar assets or liabilities and quoted prices in less active markets. 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. 2. Significant Accounting Policies (Continued) Cash and Cash Equivalents Cash and cash equivalents consist of cash deposits, certificates of deposit, money market funds and investments in debt securities with original maturities of ninety days or less when purchased. Investments The Company’s investments typically have original maturities greater than ninety days as of the date of purchase and are classified as either available-for-sale or trading securities. Investments in available-for-sale securities are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive income (loss) in the Consolidated Balance Sheet. Investments in trading securities are reported at fair value, with both realized and unrealized gains and losses recorded in interest income and other, net in the Consolidated Statement of Income. Investments in which the Company has the ability and intent, if necessary, to liquidate in order to support its current operations (including those with contractual maturities greater than one year from the date of purchase) are classified as short-term. The Company reviews its available-for-sale investments as of the end of each reporting period for declines in fair value based on the specific identification method. The Company records an allowance for credit loss when a decline in fair value is due to credit-related factors. The Company considers various factors in determining whether an investment is impaired, including the severity of the impairment, changes in underlying credit ratings, forecasted recovery, its intent to sell or the likelihood that it would be required to sell the investment before its anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. When the Company concludes that a credit-related impairment has occurred, the Company assesses whether it intends to sell the security or if it is more likely than not that it will be required to sell the security before recovery. If either of these two conditions is met, the Company recognizes a charge in earnings equal to the entire difference between the security’s amortized cost basis and its fair value. If the Company does not intend to sell a security and it is not more likely than not that it will be required to sell the security before recovery, the unrealized loss is separated into an amount representing the credit loss, which is recognized in earnings, and the amount related to all other factors, which is recorded in accumulated other comprehensive income (loss). In addition, the Company has made equity investments in non-publicly traded companies. Equity investments in which the Company does not have control, but has the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. The Company’s proportionate share of income or loss is recorded in equity-method earning in the Consolidated Statements of Income. The Company has elected to use the measurement alternative under ASU 2019-04 to value non-marketable equity investments that do not have readily determinable fair values. Under the alternative, these non-marketable equity investments are recorded at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes of the same or similar securities in observable transactions. The Company periodically reviews its equity investments for declines in fair value based on the specific identification method and writes down investments to their estimated fair values when it determines that a decline has occurred. Derivative Financial Instruments The Company uses derivative financial instruments to manage certain exposures to the variability of 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. The Company does not use derivative contracts for speculative or trading purposes. The Company recognizes derivatives, on a gross basis, in the Consolidated Balance Sheet at fair value. Cash flows from derivatives are classified according to the nature of the cash receipt or payment in the Consolidated Statement of Cash Flows. The Company also uses foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on non-U.S. dollar balance sheet exposures. The Company does not apply hedge accounting to these foreign currency forward contracts. 2. Significant Accounting Policies (Continued) Inventories Inventories are stated at the lower of cost, determined using the first-in, first-out method, or net realizable value. The Company writes down the carrying value of inventory to net realizable value for estimated obsolescence or unmarketable inventory based upon assumptions about the age of inventory, future demand and market conditions. Inventory impairment charges establish a new cost basis for inventory and charges are not subsequently reversed to income even if circumstances later suggest that increased carrying amounts are recoverable. Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the useful lives of the assets ranging from three The Company owns the facilities for its headquarters in Austin, Texas. The buildings are located on land which is leased through 2099 from a third party. The rents for these ground leases were prepaid for the term of the leases. The buildings and leasehold interest in ground leases are being depreciated on a straight-line basis over their estimated useful lives of 40 years and 86 years, respectively. Business Combinations The Company records business combinations using the acquisition method of accounting and, accordingly, allocates the fair value of acquisition consideration to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of the assets acquired and liabilities assumed is recorded as goodwill. The results of operations of the businesses acquired are included in the Company’s consolidated results of operations beginning on the date of the acquisition. Long-Lived Assets Purchased intangible assets are stated at cost, net of accumulated amortization, and are amortized using the straight-line method over their estimated useful lives, ranging from two Long-lived assets “held and used” by the Company are reviewed for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets and is recorded in the period in which the determination was made. The Company tests goodwill for impairment annually as of the first day of its fourth fiscal quarter and in interim periods if events occur that would indicate that the carrying value of goodwill may be impaired. The Company assesses goodwill for impairment by comparing the fair value of the reporting unit to its carrying amount. In determining fair value, several valuation methodologies are allowed, although quoted market prices are the best evidence of fair value. If the fair value of the reporting unit is less than its carrying amount, an impairment loss is recognized equal to that excess amount. 2. Significant Accounting Policies (Continued) Leases At the commencement date of a lease, the Company recognizes a liability to make lease payments and an asset representing the right to use the underlying asset during the lease term. The lease liability is measured at the present value of lease payments over the lease term. As its leases typically do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date taking into consideration necessary adjustments for collateral, depending on the facts and circumstances of the lessee and the leased asset, and term to match the lease term. The right-of-use (“ROU”) asset is measured at cost, which includes the initial measurement of the lease liability and initial direct costs incurred by the Company and excludes lease incentives. Lease liabilities are recorded in other current liabilities and other non-current liabilities. ROU assets are recorded in other assets, net. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease costs are recognized on a straight-line basis over the lease term. Lease agreements that contain both lease and non-lease components are generally accounted for separately. Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Substantially all of the Company’s contracts with customers contain a single performance obligation, the sale of mixed-signal integrated circuit (IC) products. This performance obligation is satisfied when control of the product is transferred to the customer, which typically occurs upon delivery. Unsatisfied performance obligations primarily represent contracts for products with future delivery dates. The Company has opted to not disclose the amount of unsatisfied performance obligations as these contracts have original expected durations of less than one year . The transaction price reflects the Company’s expectations about the consideration it will be entitled to receive from the customer and may include fixed or variable amounts. Variable consideration primarily includes sales made to distributors under agreements allowing certain rights of return, referred to as stock rotation, and credits issued to the distributor due to price protection. The Company estimates variable consideration at the most likely amount to which it expects to be entitled. The estimate is based on information available to the Company, including recent sales activity and pricing data. The Company applies a constraint to its variable consideration estimate which considers both the likelihood of a return and the amount of a potential price concession. Variable consideration that does not meet revenue recognition criteria is deferred. The Company records a right of return asset in prepaid expenses and other current assets for the costs of distributor inventory not meeting revenue recognition criteria. A corresponding deferred revenue and returns liability amount is recorded for unrecognized revenue associated with such costs. The Company’s products carry a one-year replacement warranty. Payments are typically due within 30 days of invoicing and do not include a significant financing component. Shipping and Handling Shipping and handling costs are classified as a component of cost of revenues in the Consolidated Statements of Income. Stock-Based Compensation The Company has stock-based compensation plans, which are more fully described in Note 16, Stock-Based Compensation Research and Development Research and development costs are expensed as incurred. Research and development expense consists primarily of personnel-related expenses, including stock-based compensation, as well as new product masks, external consulting and services costs, equipment tooling, equipment depreciation, amortization of intangible assets, and an allocated portion of our occupancy costs. Assets purchased to support the Company’s ongoing research and development activities are capitalized when related to products which have achieved technological feasibility or have an alternative future use, and are amortized over their estimated useful lives. 2. Significant Accounting Policies (Continued) Advertising Advertising costs are expensed as incurred. Advertising expenses were not material for any of the periods presented. Income Taxes The Company accounts for income taxes using the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax laws and related rates that will be in effect when the differences are expected to reverse. These differences result in deferred tax assets and liabilities, which are included in the Company’s Consolidated Balance Sheets. The Company then assesses the likelihood that the deferred tax assets will be realized. A valuation allowance is established against deferred tax assets to the extent the Company believes that it is more likely than not that the deferred tax assets will not be realized, taking into consideration the level of historical taxable income and projections for future taxable income over the periods in which the temporary differences are deductible. Uncertain tax positions must meet a more-likely-than-not threshold to be recognized in the financial statements and the tax benefits recognized are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon final settlement. See Note 18, Income Taxes Recent Accounting Pronouncements In August 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40) |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Jan. 01, 2022 | |
Discontinued Operations. | |
Discontinued Operations | 3. Discontinued Operations On April 22, 2021, the Company entered into an Asset Purchase Agreement pursuant to which Skyworks Solutions, Inc. agreed to acquire certain assets, rights, and properties, and assume certain liabilities, comprising the Company’s infrastructure and automotive business for $2.75 billion in cash. The Company believes the sale accelerates its IoT market leadership and growth, making it a pure-play leader of intelligent, wireless connectivity for the IoT. The transaction closed on July 26, 2021. The financial results of the infrastructure and automotive business, which are readily distinguishable from other components of the Company, have been presented as discontinued operations in the Consolidated Financial Statements because the sale represented a strategic shift for the Company. The following table presents the financial results of the infrastructure and automotive business (the “discontinued operations”) in the Company’s Consolidated Statements of Income (In thousands, except per share data): Year Ended January 1, January 2, December 28, 2022 2021 2019 Revenues $ 233,918 $ 375,749 $ 363,770 Costs of revenues 95,457 143,068 133,700 Operating expenses 46,643 87,293 84,730 Operating income from discontinued operations 91,818 145,388 145,340 Gain on sale of discontinued operations 2,423,161 — — Income from discontinued operations before income taxes 2,514,979 145,388 145,340 Provision for income taxes 339,706 17,372 23,400 Income from discontinued operations $ 2,175,273 $ 128,016 $ 121,940 Income from discontinued operations per share: Basic $ 50.79 $ 2.92 $ 2.81 Diluted $ 49.09 $ 2.89 $ 2.75 The following table summarizes the assets and liabilities of the discontinued operations (in thousands): January 2, 2021 Assets Inventories $ 18,801 Prepaid expenses and other current assets 2,204 Goodwill 255,543 Other assets 9,773 Total assets $ 286,321 Liabilities Other current liabilities $ 433 Other non-current liabilities 451 Total liabilities $ 884 Continuing Involvement In connection with the closing of the sale, the Company entered into certain ancillary agreements with Skyworks, including a Transition Services Agreement ("TSA"). Through the TSA, the Company has subleased certain premises to Skyworks and will provide or provides various temporary support services for three |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jan. 01, 2022 | |
Earnings Per Share | |
Earnings Per Share | 4. Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): Year Ended January 1, January 2, December 28, 2022 2021 2019 Loss from continuing operations $ (57,874) $ (115,485) $ (102,675) Shares used in computing basic loss per share 42,830 43,775 43,346 Effect of dilutive securities: Stock-based awards and convertible debt — — — Shares used in computing diluted loss per share 42,830 43,775 43,346 Loss per share: Basic $ (1.35) $ (2.64) $ (2.37) Diluted $ (1.35) $ (2.64) $ (2.37) Diluted shares for fiscal 2021, 2020 and 2019 excluded 1.5 million, 0.6 million and 0.9 million shares, respectively, due to the Company’s loss from continuing operations for the periods. The Company intends to settle the principal amount of its convertible senior notes in cash and any excess value in shares in the event of a conversion. Accordingly, shares issuable upon conversion of the principal amount using the treasury stock method have been excluded from the calculation of diluted earnings per share. If the market value of the notes under certain prescribed conditions exceeds the conversion amount, the excess is included in the denominator for the computation of diluted earnings per share using the treasury stock method. For fiscal 2021, 2020 and 2019 approximately 1.0 million shares, 0.2 million shares and 0.4 million shares, respectively, were included in the denominator for the calculation of diluted earnings per share from net income. See Note 11, Debt |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Jan. 01, 2022 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | 5. Fair Value of Financial Instruments 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 at January 1, 2022 Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Description (Level 1) (Level 2) (Level 3) Total Assets: Cash equivalents: Money market funds $ 845,740 $ — $ — $ 845,740 Corporate debt securities — 3,552 — 3,552 Government debt securities — 2,950 — 2,950 Total cash equivalents $ 845,740 $ 6,502 $ — $ 852,242 Short-term investments: Government debt securities $ 71,509 $ 119,612 $ — $ 191,121 Corporate debt securities — 773,461 — 773,461 Total short-term investments $ 71,509 $ 893,073 $ — $ 964,582 Other assets, net: Auction rate securities $ — $ — $ 4,980 $ 4,980 Total $ — $ — $ 4,980 $ 4,980 Total $ 917,249 $ 899,575 $ 4,980 $ 1,821,804 Fair Value Measurements at January 2, 2021 Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Description (Level 1) (Level 2) (Level 3) Total Assets: Cash equivalents: Money market funds $ 75,606 $ — $ — $ 75,606 Corporate debt securities — 14,995 — 14,995 Government debt securities 2,355 2,564 — 4,919 Total cash equivalents $ 77,961 $ 17,559 $ — $ 95,520 Short-term investments: Government debt securities $ 38,461 $ 104,112 $ — $ 142,573 Corporate debt securities — 379,390 — 379,390 Total short-term investments $ 38,461 $ 483,502 $ — $ 521,963 Other assets, net: Auction rate securities $ — $ — $ 5,340 $ 5,340 Total $ — $ — $ 5,340 $ 5,340 Total $ 116,422 $ 501,061 $ 5,340 $ 622,823 5. Fair Value of Financial Instruments (Continued) Valuation methodology The Company’s cash equivalents and short-term investments that are 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; quoted prices in less 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 foreign exchange rates, forward and spot prices for currencies and market observable data of similar instruments. Contractual maturities of investments The Company’s investments are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive income (loss) in the Consolidated Balance Sheet. The following summarizes the contractual underlying maturities of the Company’s available-for-sale investments at January 1, 2022 (in thousands): Fair Cost Value Due in one year or less $ 578,734 $ 578,666 Due after one year through ten years 394,391 392,417 Due after ten years 6,000 4,980 $ 979,125 $ 976,063 Available-for-sale investments 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 Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized As of January 1, 2022 Value Losses Value Losses Value Losses Government debt securities $ 126,957 $ (750) $ — $ — $ 126,957 $ (750) Corporate debt securities 418,917 (1,451) 326 (1) 419,243 (1,452) Auction rate securities — — 4,980 (1,020) 4,980 (1,020) $ 545,874 $ (2,201) $ 5,306 $ (1,021) $ 551,180 $ (3,222) Less Than 12 Months 12 Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized As of January 2, 2021 Value Losses Value Losses Value Losses Government debt securities $ 10,146 $ (5) $ — $ — $ 10,146 $ (5) Corporate debt securities 51,909 (74) — — 51,909 (74) Auction rate securities — — 5,340 (660) 5,340 (660) $ 62,055 $ (79) $ 5,340 $ (660) $ 67,395 $ (739) The gross unrealized losses as of January 1, 2022 and January 2, 2021 were due primarily to changes in market interest rates and the illiquidity of the Company’s auction-rate securities. The Company’s auction-rate securities have been illiquid since 2008 when auctions for the securities failed because sell orders exceeded buy orders. These securities have a contractual maturity date of 2046. The Company is unable to predict if these funds will become available before their maturity date. 5. Fair Value of Financial Instruments (Continued) The Company records an allowance for credit loss when a decline in investment market value is due to credit-related factors. When evaluating an investment for impairment, the Company reviews factors such as the severity of the impairment, changes in underlying credit ratings, forecasted recovery, the Company’s intent to sell or the likelihood that it would be required to sell the investment before its anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. As of January 1, 2022, there were no material declines in the market value of available-for-sale investments due to credit-related factors. At January 1, 2022 and January 2, 2021, there were no material unrealized gains associated with the Company’s available-for-sale investments. Level 3 fair value measurements The following summarizes quantitative information about Level 3 fair value measurements. Auction rate securities Fair Value at January 1, 2022 (000s) Valuation Technique Unobservable Input Weighted Average $ 4,980 Discounted cash flow Estimated yield 1.07% Expected holding period 10 years Estimated discount rate 2.45% 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. The following summarizes the activity in Level 3 financial instruments for the years ended January 1, 2022 and January 2, 2021 (in thousands): Assets Year Ended January 1, January 2, Auction Rate Securities 2022 2021 Beginning balance $ 5,340 $ 5,647 Losses included in other comprehensive income (loss) (360) (307) Ending balance $ 4,980 $ 5,340 The Company’s debt is recorded at cost, but is measured at fair value for disclosure purposes. The fair value of the Company’s convertible senior notes is determined using observable market prices. The notes are traded in less active markets and are therefore classified as a Level 2 fair value measurement. As of January 1, 2022 and January 2, 2021, the fair value of the 0.625% convertible senior notes due in 2025 was $944.3 million and $671.4 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. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Jan. 01, 2022 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | 6. Derivative Financial Instruments The Company uses derivative financial instruments to manage certain exposures to the variability of 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. Non-designated Hedges Foreign Currency Forward Contracts The Company uses foreign currency forward contracts 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 interest income and other, 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 these foreign currency forward contracts. As of January 1, 2022, the Company held one foreign currency forward contract denominated in Singapore Dollars with a notional value of $3.7 million, and two foreign currency forward contracts denominated in Indian Rupees with an aggregate notional value of $7.4 million and one foreign currency forward contract denominated in the Hungarian Forint with a notional value of $2.1 million. The fair value of foreign contracts and contract losses recognized in income were not material for any of the periods presented. |
Balance Sheet Details
Balance Sheet Details | 12 Months Ended |
Jan. 01, 2022 | |
Balance Sheet Details | |
Balance Sheet Details | 7. Supplemental Information The following tables show the details of selected Consolidated Balance Sheet items (in thousands): Inventories January 1, January 2, 2022 2021 Work in progress $ 36,078 $ 41,747 Finished goods 13,229 6,114 $ 49,307 $ 47,861 Prepaid Expenses and Other Current Assets January 1, January 2, 2022 2021 Distributor advances $ 13,397 $ 51,190 Other 38,351 35,913 $ 51,748 $ 87,103 Property and Equipment January 1, January 2, 2022 2021 Buildings and improvements $ 122,163 $ 118,331 Equipment 48,876 39,378 Computers and purchased software 48,519 46,174 Leasehold interest in ground leases 23,840 23,840 Leasehold improvements 13,427 8,684 Furniture and fixtures 10,794 8,621 267,619 245,028 Accumulated depreciation (121,103) (109,225) $ 146,516 $ 135,803 Other Assets, net January 1, January 2, 2022 2021 Equity-method investment* $ 24,078 $ 10,057 Other 53,761 66,618 $ 77,839 $ 76,675 *The Company holds an 8% equity interest in China Walden Venture Investments III, a limited partnership. Other Current Liabilities January 1, January 2, 2022 2021 Accrued compensation and benefits $ 42,008 $ 46,633 Income taxes payable 73,771 5,797 Other 41,273 29,220 $ 157,052 $ 81,650 |
Risks and Uncertainties
Risks and Uncertainties | 12 Months Ended |
Jan. 01, 2022 | |
Risks and Uncertainties | |
Risks and Uncertainties | 8. Risks and Uncertainties Financial Instruments Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash equivalents, investments, accounts receivable, notes receivable and derivatives. The Company places its cash equivalents and investments primarily in municipal bonds, money market funds, corporate bonds, certificates of deposit, U.S. Treasury bills, U.S. government securities, agency securities, asset-back securities, commercial paper and auction-rate securities. Concentrations of credit risk with respect to accounts receivable are primarily due to customers with large outstanding balances. The Company’s customers that accounted for greater than 10% of accounts receivable consisted of the following distributors: January 1, January 2, 2022 2021 Arrow Electronics 28 % 28 % Edom Technology 18 % 21 % The Company performs periodic credit evaluations of its customers’ financial condition and generally requires no collateral from its customers. The Company provides an allowance for expected credit losses based upon the net amount expected to be collected on such receivables. Losses have not been significant for any of the periods presented. As a result of its use of derivative instruments, the Company is exposed to the risk that its counterparties will fail to meet their contractual obligations. To mitigate this counterparty credit risk, the Company has a policy to enter into contracts with only selected major financial institutions. The Company periodically reviews and re-assesses the creditworthiness of such counterparties based on a variety of factors. Distributor Advances On sales to distributors, the Company’s payment terms often require the distributor to initially pay amounts owed to the Company for an amount in excess of their ultimate cost. The Company’s sales price to its distributors may be higher than the amount that the distributors will ultimately owe the Company because distributors often negotiate price reductions after purchasing the product from the Company and such reductions are often significant. These negotiated price discounts are not granted until the distributor sells the product to the end customer, which may occur after the distributor has paid the original invoice amount to the Company. Payment of invoices prior to receiving an associated discount can have an adverse impact on the working capital of the Company’s distributors. Accordingly, the Company has entered into agreements with certain distributors whereby it advances cash to the distributors to reduce the distributor’s working capital requirements. The advance amounts are based on the distributor’s inventory balance, and are adjusted quarterly. Such amounts are recorded in prepaid expenses and other current assets in the Consolidated Balance Sheet. The terms of these advances are set forth in binding legal agreements and are unsecured, bear no interest on unsettled balances and are due upon demand. The agreements governing these advances can be cancelled by the Company at any time. Suppliers A significant portion of the Company’s products are fabricated by Taiwan Semiconductor Manufacturing Co. (TSMC) or Semiconductor Manufacturing International Corporation (SMIC). The inability of TSMC or SMIC to deliver wafers to the Company on a timely basis could impact the production of the Company’s products for a substantial period of time, which could have a material adverse effect on the Company’s business, financial condition, results of operations and cash flows. 8. Risks and Uncertainties (Continued) Customers The Company sells directly to end customers, distributors and contract manufacturers. Although the Company actually sells the products to, and is paid by, distributors and contract manufacturers, the Company refers to the end customer as its customer. None of the Company’s end customers accounted for greater than 10% of revenue during fiscal 2021, 2020 or 2019. The Company’s distributors that accounted for greater than 10% of revenue consisted of the following: Year Ended January 1, January 2, December 28, 2022 2021 2019 Arrow Electronics 28 % 28 % 26 % Edom Technology 18 % 19 % 18 % Sekorm 12 % 14 % 10 % |
Acquisition
Acquisition | 12 Months Ended |
Jan. 01, 2022 | |
Acquisition | |
Acquisition | 9. Acquisition Redpine Signals On April 28, 2020, the Company acquired the Wi-Fi and Bluetooth business of Redpine Signals. The Company believes the acquisition will accelerate its roadmap for Wi-Fi and Bluetooth silicon and software solutions. The purchase price was in excess of the fair value of the net assets acquired and, as a result, the Company recorded goodwill. A portion of the goodwill is deductible for tax purposes. The purchase price was allocated as follows (in thousands): Weighted-Average Amortization Period Amount (Years) Intangible assets: In-process research and development $ 11,753 Not amortized Developed technology 61,674 8 Customer relationships 2,450 2 Trademarks 661 2 76,538 Accounts receivable 1,395 Inventory 4,375 Other current assets 1,251 Goodwill 233,530 Other non-current assets 673 Current liabilities (856) Non-current liabilities (97) Total purchase price $ 316,809 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 $1.5 million of acquisition-related costs in selling, general and administrative expenses during fiscal 2020. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Jan. 01, 2022 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | 10. Goodwill and Other Intangible Assets Goodwill The following summarizes the activity in goodwill for the years ended January 1, 2022 and January 2, 2021 (in thousands): Year Ended January 1, January 2, 2022 2021 Beginning balance $ 376,389 $ 237,294 Additions due to business combinations — 139,095 Ending balance $ 376,389 $ 376,389 Other Intangible Assets The gross carrying amount and accumulated amortization of other intangible assets are as follows (in thousands): Weighted-Average Amortization January 1, 2022 January 2, 2021 Period Gross Accumulated Gross Accumulated (Years) Amount Amortization Amount Amortization Subject to amortization: Developed technology 8 $ 238,092 $ (124,337) $ 243,739 $ (109,417) Customer relationships 4 27,450 (24,958) 41,270 (30,321) Trademarks 5 11,471 (8,740) 12,771 (6,312) 7 277,013 (158,035) 297,780 (146,050) Not subject to amortization: In-process research and development Not amortized — — 11,753 — Total intangible assets $ 277,013 $ (158,035) $ 309,533 $ (146,050) Gross intangible assets decreased $32.5 million in fiscal 2021 due to the removal of fully amortized assets. The following table presents details of intangible asset amortization expense recognized in the Consolidated Statements of Income (in thousands): Year Ended January 1, January 2, December 28, 2022 2021 2019 Research and development $ 32,319 $ 31,351 $ 27,858 Selling, general and administrative 12,186 11,218 9,876 $ 44,505 $ 42,569 $ 37,734 The estimated aggregate amortization expense for intangible assets subject to amortization for each of the five succeeding fiscal years is as follows (in thousands): Fiscal Year 2022 $ 34,071 2023 25,374 2024 23,034 2025 13,369 2026 9,178 |
Debt
Debt | 12 Months Ended |
Jan. 01, 2022 | |
Debt | |
Debt | 11. Debt 0.625% Convertible Senior Notes On June 1, 2020, the Company completed a private offering of $535 million principal amount convertible senior notes (the “2025 Notes”). The 2025 Notes bear interest semi-annually at a rate of 0.625% per year and mature on June 15, 2025. The 2025 Notes are convertible at a conversion rate of 8.1980 shares of common stock per $1,000 principal amount of the 2025 Notes, or approximately 4.4 million shares of common stock, which is equivalent to a conversion price of approximately $121.98 per share. The conversion rate is subject to adjustment under certain circumstances, such as the repurchases of common stock under a “modified Dutch Auction” tender offer completed during fiscal 2021. Holders may convert the 2025 Notes under the following circumstances: during any calendar quarter after the calendar quarter ended on September 30, 2020 if the closing price of the Company’s common stock for at least 20 trading days in the 30 consecutive trading days ending on the last trading day of the preceding calendar quarter is greater than or equal to $159.51 per share, representing 130% of the conversion price of the 2025 Notes (“the Sales Price Trigger”); during the five business day period after any ten consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the closing sale price of our common stock and the conversion rate on each such trading day; if specified distributions or corporate events occur; if the Notes are called for redemption; or at any time after March 15, 2025. The Company may redeem all or any portion of the 2025 Notes, at its option, on or after June 20, 2023, if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days during any 30 consecutive trading day period. Upon conversion, the 2025 Notes may be settled in cash, shares of the Company’s common stock or a combination of cash and shares, at the Company’s election. The Sales Price Trigger condition was met on January 1, 2022, and as a result, holders may convert their 2025 Notes at any time during the quarter ending March 31, 2022. Accordingly, the net carrying amount of the 2025 Notes was reclassified into current liabilities. On January 2, 2022, the Company irrevocably elected cash settlement for the principal amount of the 2025 Notes. The Company intends to settle any excess value in shares in the event of a conversion. The Company incurred debt issuance costs of approximately $10.4 million, which was allocated to the liability and equity components in proportion to the allocation of the proceeds. The costs allocated to the liability component are being amortized as interest expense over the term of the 2025 Notes using the effective interest method. 1.375% Convertible Senior Notes On March 6, 2017, the Company completed a private offering of $400 million principal amount convertible senior notes (the “2022 Notes”). The Notes bore interest semi-annually at a rate of 1.375% per year and were scheduled to mature on March 1, 2022. On January 6, 2021, the Company issued a notice of redemption for the remaining $140.6 million principal amount of the 2022 Notes. Prior to the redemption, the Company received conversion notices representing $130.4 million principal amount of the notes. The Company paid $130.4 million in cash and issued 528,022 shares of common stock for the conversions. Notes representing $10.2 million principal amount were redeemed at par, plus accrued interest. All note conversions and redemptions were completed by March 22, 2021. The Company recognized a loss on debt extinguishment of $3.4 million during fiscal 2021, which was recorded in interest expense in the Consolidated Statements of Income. 11. Debt (Continued) Convertible Debt, Net The principal balances of the 2025 Notes and 2022 Notes (together, the "Notes") were separated into liability and equity components, and recorded initially at fair value. The excess of the principal amounts of the liability components over their carrying amounts represent the debt discount, which are amortized to interest expense over the term of the Notes using the effective interest method. The carrying amounts of the liability components was estimated by discounting the contractual cash flows of similar non-convertible debt at an appropriate market rate at the date of issuance. The carrying amount of the Notes consisted of the following (in thousands): January 1, January 2, 2022 2021 Liability component Principal $ 535,000 $ 675,567 Unamortized debt discount (78,519) (103,953) Unamortized debt issuance costs (5,882) (8,189) Net carrying amount $ 450,599 $ 563,425 Equity component Net carrying amount $ 107,928 $ 108,438 The liability components of the Notes are recorded in convertible debt on the Consolidated Balance Sheet. The equity components of the Notes are recorded in stockholders’ equity. The effective interest rate for the liability component was 5.336% for the 2025 Notes and 4.75% for the 2022 Notes. As of January 1, 2022, the remaining period over which the debt discount and debt issuance costs will be amortized was 3.5 years for the 2025 Notes. With the Company’s adoption of ASU 2020-06 in fiscal 2022, the principal balance of the 2025 Notes will no longer be separated between liability and equity components. This will result in an increase to the carrying value of its convertible debt by $78.5 million, representing the unamortized debt discount, with an offsetting reduction in stockholders’ equity. Interest expense related to the notes was comprised of the following (in thousands): Year Ended January 1, January 2, December 28, 2022 2021 2019 Contractual interest expense $ 3,662 $ 5,530 $ 5,485 Amortization of debt discount 21,112 19,375 11,717 Amortization of debt issuance costs 1,655 2,058 1,768 $ 26,429 $ 26,963 $ 18,970 Credit Facility The Company and certain of its domestic subsidiaries (the “Guarantors”) have a $400 million revolving credit facility with a maturity date of August 7, 2024. The credit facility 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 the greater of an aggregate of $250 million and 100% of EBITDA of the last four fiscal quarters, plus an amount that would not cause a secured leverage ratio (funded debt secured by assets/EBITDA) to exceed 3.25 to 1.00, subject to certain conditions. 11. Debt (Continued) The 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 1.00% to 1.75% and for base rate loans range from 0.00% to 0.75%, depending in each case, on the leverage ratio as defined in the credit facility. The credit facility 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 net leverage ratio (funded indebtedness/EBITDA) of no more than 4.25 to 1, a secured leverage ratio of no more than 3.50 to 1, and a minimum interest coverage ratio (EBITDA/interest payments) of no less than 2.50 to 1. As of January 1, 2022, the Company was in compliance with all covenants of the credit facility. The Company’s obligations under the credit facility are guaranteed by the Guarantors and are secured by a security interest in substantially all assets of the Company and the Guarantors. As of January 1, 2022, no amounts were outstanding on the credit facility. |
Leases
Leases | 12 Months Ended |
Jan. 01, 2022 | |
Leases | |
Leases | 12. Leases The Company leases certain facilities under operating lease agreements that expire at various dates through 2030. Some of these arrangements contain renewal options and require the Company to pay taxes, insurance and maintenance costs. Lease costs for operating leases were $7.4 million, $5.6 million and $5.8 million during fiscal 2021, 2020 and 2019, respectively. Supplemental Lease Information January 1, January 2, Balance Sheet Information (in thousands) 2022 2021 Operating lease right-of-use assets $ 27,896 $ 27,392 Operating lease liabilities $ 29,171 $ 29,017 Year Ended January 1, January 2, Cash Flow Information (in thousands) 2022 2021 Cash paid for operating lease liabilities $ 7,138 $ 5,541 Right-of-use assets obtained in exchange for operating lease obligations $ 6,335 $ 16,711 January 1, January 2, Operating Lease Information 2022 2021 Weighted-average remaining lease term 5.9 years 6.4 years Weighted-average discount rate 3.83 % 4.24 % 12. Leases (Continued) The maturities of operating lease liabilities as of January 1, 2022 were as follows (in thousands): Fiscal Year 2022 $ 7,136 2023 6,207 2024 5,188 2025 3,786 2026 2,623 Thereafter 7,403 Total lease payments 32,343 Less imputed interest (3,172) Total lease liabilities $ 29,171 Lease income The Company leases a portion of its headquarter facilities to other tenants. Lease income from operating leases was $4.9 million, $3.2 million and $4.0 million during fiscal 2021, 2020 and 2019, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 01, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | 13. Commitments and Contingencies Legal Proceedings The Company is involved in various legal proceedings that have arisen in the normal course of business. While the ultimate results cannot be predicted with certainty, the Company does not expect them to have a material adverse effect on its Consolidated Financial Statements. |
Share Repurchases
Share Repurchases | 12 Months Ended |
Jan. 01, 2022 | |
Share Repurchases | |
Share Repurchases | 14. Share Repurchases The Company repurchased 6.5 million shares, 0.2 million shares and 0.3 million shares of its common stock for $1.15 billion, $16.3 million and $26.7 million during fiscal 2021, 2020 and 2019, respectively. Shares repurchased in fiscal 2021 included purchases of 4.0 million shares through a “modified Dutch Auction” tender offer, 1.7 million shares through an accelerated share repurchase (“ASR”) agreement and 0.8 million shares through the Company’s existing share repurchase program. The tender offer commenced on August 3, 2021 and expired on August 30, 2021. Shares repurchased through the tender offer were priced at $160.00 per share, for an aggregate cost of $640.7 million, excluding fees and expenses relating to the tender offer. Under the ASR Agreement, the Company will repurchase an aggregate of $400 million of its common stock. In fiscal 2021, the Company received an aggregate initial share delivery of approximately 1.7 million shares, with the remaining shares, if any, expected to be delivered in the first fiscal quarter of 2022. Shares purchased through the tender offer, ASR agreement and share repurchase program were effectively retired upon repurchase. |
Revenues
Revenues | 12 Months Ended |
Jan. 01, 2022 | |
Revenues | |
Revenues | 15. Revenues Revenues were generated predominately by sales of the Company’s mixed-signal products. Revenue is recognized when control of the promised goods or services is transferred to the customer, which typically occurs upon delivery. The transaction price reflects the Company’s expectations about the consideration it will be entitled to receive from the customer and may include fixed or variable amounts. Variable consideration that does not meet revenue recognition criteria is deferred. 15. Revenues (Continued) A portion of the Company’s sales are made to distributors under agreements allowing certain rights of return and/or price protection related to the final selling price to the end customers. These factors impact the timing and uncertainty of revenues and cash flows. The Company recognized revenue of $12.4 million, $11.5 million and $10.3 million during fiscal 2021, 2020 and 2019, respectively, from performance obligations that were satisfied in previous reporting periods. The following disaggregates the Company’s revenue by sales channel (in thousands): Year Ended January 1, January 2, December 28, 2022 2021 2019 Distributors $ 584,010 $ 416,606 $ 361,645 Direct customers 136,850 94,322 112,140 $ 720,860 $ 510,928 $ 473,785 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jan. 01, 2022 | |
Stock-Based Compensation | |
Stock-Based Compensation | 16. Stock-Based Compensation Information in this footnote is inclusive of both continuing and discontinued operations, except as noted. 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 2017 and fiscal 2021, the stockholders of the Company approved amendments to both the 2009 Plan and the 2009 Purchase Plan. The purpose of the amendments was to authorize additional shares of common stock for issuance, to comply with changes in applicable law, to improve the Company’s corporate governance and to implement other best practices. 2009 Stock Incentive Plan Under the 2009 Plan, the following may be granted: stock options, stock appreciation rights, performance shares, performance stock units, restricted stock units (RSUs), restricted stock awards (RSAs), performance-based awards and other awards (collectively, all such grants are referred to as “awards”). The fiscal 2017 amendments to the 2009 Plan created a single share pool. All awards now deduct one share from the 2009 Plan shares available for issuance for each share granted. Awards granted under the 2009 Plan generally contain vesting provisions ranging from three to four years . The exercise price of stock options offered under the 2009 Plan may not be less than 100% of the fair market value of a share of our common stock on the date of grant. To the extent awards granted under the 2009 Plan terminate, expire or lapse for any reason, or are settled in cash, shares subject to such awards will again be available for grant. Stock Grants and Modifications The Company granted to its employees 0.6 million, 0.7 million and 0.7 million shares of full value awards and no stock options from the 2009 Plan during fiscal 2021, 2020 and 2019, respectively. The Company recorded $7.8 million in selling, general and administrative expense during fiscal 2021 in connection with the modification of certain equity awards. The modifications were pursuant to employee terminations. There were no other significant modifications made to any stock grants during fiscal 2021, 2020 or 2019. Included in the full value awards granted under the 2009 Plan in fiscal 2021 were 116,809 performance-based stock awards (PSUs). PSUs provide for the rights to acquire a number of shares of common stock for no cash consideration based upon the achievement of specified revenue objectives during the year. The requisite service period for these PSUs is approximately three years from the date of grant. There were no performance stock units (PSUs) granted during fiscal 2020 or 2019. 16. Stock-Based Compensation (Continued) Included in the full value awards granted under the 2009 Plan in fiscal 2020 and 2019 were a total of 82,000 and 93,000 market-based stock awards, respectively. The awards, also known as market stock units (MSUs), provide the rights to acquire a number of shares of common stock for no cash consideration based upon achievement of specified levels of market conditions. The requisite service period for these MSUs is also the vesting period, which is generally three years . MSUs granted in 2020 and 2019 measure the relative performance of the total stockholders’ return of the Company against that of a selected benchmarked group of companies. There were no MSUs granted in fiscal 2021. 2009 Employee Stock Purchase Plan The rights to purchase common stock granted under the 2009 Purchase Plan are intended to be treated as either (i) purchase rights granted under an “employee stock purchase plan,” as that term is defined in Section 423(b) of the Internal Revenue Code (the “423(b) Plan”), or (ii) purchase rights granted under an employee stock purchase plan that is not subject to the terms and conditions of Section 423(b) of the Internal Revenue Code (the “Non-423(b) Plan”). The Company will retain the discretion to grant purchase rights under either the 423(b) Plan or the Non-423(b) Plan. Eligible employees may purchase a limited number of shares of the Company’s common stock at no less than 85% of the fair market value of a share of common stock at prescribed purchase intervals during an offering period. Each offering period will be comprised of a series of one or more successive and/or overlapping purchase intervals and has a maximum term of 24 months . During fiscal 2021, 2020 and 2019, the Company issued 146,000, 177,000 and 208,000 shares, respectively, under the 2009 Purchase Plan to its employees. The weighted-average fair value for purchase rights granted in fiscal 2021 under the 2009 Purchase Plan was $41.59 per share. Accounting for Stock-Based Compensation Stock-based compensation costs are based on the fair values on the date of grant for stock awards and stock options and on the date of enrollment for the employee stock purchase plans. The fair values of stock awards (such as RSUs, PSUs and RSAs) are estimated based on their intrinsic values. The fair values of MSUs are estimated using a Monte Carlo simulation. The fair values of stock options and employee stock purchase plans are estimated using the Black-Scholes option-pricing model. The Black-Scholes valuation calculation requires the Company to estimate key assumptions such as future stock price volatility, expected terms, risk-free rates and dividend yield. Expected stock price volatility is based upon a combination of both historical volatility and implied volatility derived from traded options on the Company’s stock in the marketplace. Expected term is derived from an analysis of historical exercises and remaining contractual life of options. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. The Company has never paid cash dividends and does not currently intend to pay cash dividends, thus it has assumed a 0% dividend yield. The Monte Carlo simulation used to calculate the fair value of the MSUs simulates the present value of the potential outcomes of future stock prices of the Company and the Philadelphia Semiconductor Sector Total Return Index over the requisite service period. The projection of stock prices are based on the risk-free rate of return, the volatilities of the stock price of the Company and the Index, and the correlation of the stock price of the Company with the Index. The Company estimates potential forfeitures of stock grants and adjusts compensation cost recorded accordingly. The estimate of forfeitures will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures are recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of stock-based compensation expense to be recognized in future periods. The fair values of stock options and RSUs are amortized as compensation expense on a straight-line basis over the vesting period of the grants. The fair values of RSAs are fully expensed in the period of grant when shares are immediately issued with no vesting restrictions. The fair values of MSUs are amortized as compensation expense on a straight-line basis over the performance and service periods of the grants. The fair values of PSUs are amortized as compensation expense on a straight-line basis over the performance period when the performance is probable of achievement, and over the remaining service periods thereafter. Compensation expense recognized is shown in the operating activities section of the Consolidated Statements of Cash Flows. 16. Stock-Based Compensation (Continued) The fair values estimated from the Black-Scholes option-pricing model for ESPP shares granted were calculated using the following assumptions: Year Ended January 1, January 2, December 28, Employee Stock Purchase Plan 2022 2021 2019 Expected volatility 42 % 67 % 37 % Risk-free interest rate % 0.05 % 0.15 % 1.6 % Expected term (in months) 9 9 9 Dividend yield — — — The fair values estimated from the Monte Carlo simulation for MSUs were calculated using the following assumptions: Year Ended January 2, December 28, MSUs 2021 2019 Expected volatility 36 % 31 % Risk-free interest rate % 1.3 % 2.4 % Expected term (in years) 2.9 2.9 Dividend yield — — A summary of stock-based compensation activity with respect to fiscal 2021 follows: Weighted- Weighted-Average Aggregate Average Remaining Intrinsic Shares Exercise Contractual Term Value Stock Options (000s) Price (In Years) (000s) Outstanding at January 2, 2021 127 $ 39.16 5.11 $ 11,232 Outstanding at January 1, 2022 118 $ 38.80 4.12 $ 19,825 Vested at January 1, 2022 and expected to vest 118 $ 38.80 4.12 $ 19,825 Exercisable at January 1, 2022 118 $ 38.80 4.12 $ 19,825 Weighted- Weighted-Average Aggregate Average Remaining Intrinsic Shares Grant Date Vesting Term Value RSAs and RSUs (000s) Fair Value (In Years) (000s) Outstanding at January 2, 2021 1,106 $ 97.07 Granted 452 $ 135.28 Vested or issued (502) $ 95.04 Cancelled or forfeited (225) $ 108.61 Outstanding at January 1, 2022 831 $ 115.72 1.11 $ 171,476 Outstanding at January 1, 2022 and expected to vest 770 $ 115.10 1.11 $ 159,028 Weighted- Weighted-Average Aggregate Average Remaining Intrinsic Shares Grant Date Vesting Term Value PSUs and MSUs (000s) Fair Value (In Years) (000s) Outstanding at January 2, 2021 233 $ 79.80 Granted 117 $ 145.11 Earned or issued (37) $ 97.19 Cancelled or forfeited (67) $ 89.45 Outstanding at January 1, 2022 246 $ 105.58 1.44 $ 50,792 Outstanding at January 1, 2022 and expected to vest 224 $ 102.01 1.44 $ 46,297 16. Stock-Based Compensation (Continued) The following summarizes the Company’s weighted average fair value at the date of grant: Year Ended January 1, January 2, December 28, 2022 2021 2019 Per grant of RSAs and RSUs $ 135.28 $ 100.27 $ 89.35 Per grant of PSUs and MSUs $ 145.11 $ 98.58 $ 85.79 The following summarizes the Company’s stock-based payment and stock option values (in thousands): Year Ended January 1, January 2, December 28, 2022 2021 2019 Intrinsic value of stock options exercised $ 986 $ 558 $ — Intrinsic value of RSUs that vested $ 76,654 $ 48,534 $ 57,693 Grant date fair value of RSUs that vested $ 47,726 $ 37,477 $ 40,434 Intrinsic value of PSUs and MSUs that vested $ 5,231 $ 8,545 $ 3,649 Grant date fair value of PSUs and MSUs that vested $ 3,562 $ 6,302 $ 1,461 The Company received $14.2 million cash for the issuance of common stock, and paid $22.2 million for shares withheld for taxes, during fiscal 2021. The Company issues shares from the shares reserved under its stock plans upon the exercise of stock options, vesting of RSUs, PSUs and MSUs, and purchases through employee stock purchase plans. The Company does not currently expect to repurchase shares from any source to satisfy such obligation. The following table presents details of stock-based compensation costs recognized in the Consolidated Statements of Income (in thousands): Year Ended January 1, January 2, December 28, 2022 2021 2019 Cost of revenues $ 964 $ 970 $ 790 Research and development 24,986 23,359 19,996 Selling, general and administrative 30,892 25,125 23,548 56,842 49,454 44,334 Income tax benefit (954) (3,694) (2,584) Share-based compensation – continuing operations 55,888 45,760 41,750 Share-based compensation – discontinued operations, net (2,007) 10,715 10,574 Total $ 53,881 $ 56,475 $ 52,324 The Company had approximately $74.2 million of total unrecognized compensation cost related to equity grants under the 2009 Plan as of January 1, 2022 that is expected to be recognized over a weighted-average period of approximately 2.4 years. There were no significant stock-based compensation costs capitalized into assets in any of the periods presented. As of January 1, 2022, the Company had reserved shares of common stock for future issuance as follows (in thousands): 2009 Stock Incentive Plan 2,946 2009 Employee Stock Purchase Plan 1,254 Total shares reserved 4,200 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Jan. 01, 2022 | |
Employee Benefit Plan | |
Employee Benefit Plan | 17. Employee Benefit Plan The Company maintains a defined contribution or 401(k) Plan for its qualified U.S. employees. Participants may contribute a percentage of their compensation on a pre-tax basis, subject to a maximum annual contribution imposed by the Internal Revenue Code. The Company may make discretionary matching contributions as well as discretionary profit-sharing contributions to the 401(k) Plan. The Company contributed $3.5 million, $4.2 million and $3.9 million to the 401(k) Plan during fiscal 2021, 2020 and 2019, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 01, 2022 | |
Income Taxes | |
Income Taxes | Loss from continuing operations before income taxes includes the following components (in thousands): Year Ended January 1, January 2, December 28, 2022 2021 2019 Domestic $ (29,112) $ (58,104) $ (38,448) Foreign (29,063) (74,099) (57,563) $ (58,175) $ (132,203) $ (96,011) The provision (benefit) for income taxes consists of the following (in thousands): Year Ended January 1, January 2, December 28, 2022 2021 2019 Current: Domestic $ (12,630) $ (9,740) $ (20,962) Foreign 9,447 1,656 4,940 Total Current (3,183) (8,084) (16,022) Deferred: Domestic 17,873 (4,031) 33,624 Foreign (1,263) (2,487) (10,618) Total Deferred 16,610 (6,518) 23,006 Provision (benefit) for income taxes $ 13,427 $ (14,602) $ 6,984 The reconciliation of the federal statutory tax rate to the Company’s effective tax rate is as follows: Year Ended January 1, January 2, December 28, 2022 2021 2019 Federal statutory rate 21.0 % 21.0 % 21.0 % Foreign tax rate benefit (12.5) (11.1) (9.7) Research and development tax credits 0.1 4.2 5.3 GILTI and Subpart F Income (1.8) 0.2 0.2 (Nondeductible) nontaxable foreign items (4.9) 0.1 (2.5) Nondeductible officer compensation (7.8) (1.7) (2.0) Change in cost-sharing treatment of stock-based compensation — — (19.2) Excess tax benefit of stock-based compensation 2.8 0.4 0.8 Other tax effects of equity compensation 0.4 0.1 0.7 Change in prior period valuation allowance (8.0) (0.3) (0.7) (Nondeductible) nontaxable domestic items (2.1) (1.6) (1.6) Net operating loss not benefited (9.5) — — Other (0.8) (0.3) 0.4 Effective tax rate (23.1) % 11.0 % (7.3) % 18. Income Taxes (Continued) The effective tax rate for fiscal 2021 decreased from fiscal 2020 primarily due to the adoption of FASB ASU 2019-12, Simplifying the Accounting for Income Taxes, The higher provision for income taxes for fiscal 2021 was primarily due to the adoption of ASU 2019-12 as of the beginning of fiscal 2021. Under ASU 2019-12, which is being applied prospectively from the date of adoption, the income tax benefit of a loss from continuing operations should be reallocated to discontinued operations if the Company would be unable to benefit from the loss without considering the income from discontinued operations. As such, the income tax benefit from net operating losses associated with continuing operations for fiscal 2021 was reallocated to discontinued operations. Prior to ASU 2019-12, if the Company reported a loss from continuing operations and income from discontinued operations, income from discontinued operations would be considered in determining the income tax benefit allocated to continuing operations. Additionally, for fiscal 2021 there was an increase in the beginning of year valuation allowance on deferred tax assets for state attribute carryforwards as a result of changes in state tax estimates, primarily due to the divestiture of the infrastructure and automotive business. Tax on the gain from the divestiture of the infrastructure and automotive business of $346.9 million was recorded in discontinued operations for the current period, as well as additional tax benefits associated with discontinued operations of $7.2 million for fiscal 2021. As of January 1, 2022, income taxes payable of $74.9 million recorded in connection with the gain from the divestiture was included in other current liabilities in the Consolidated Balance Sheet. 18. Income Taxes (Continued) The Tax Cuts and Jobs Act was enacted in the U.S. on December 22, 2017 and required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously deferred from U.S income tax under U.S. tax law. The Company elected to pay the transition tax over the eight-year The Company has made an accounting policy election to treat global intangible low-taxed income (GILTI) as a period expense when incurred. Deferred Income Taxes Deferred tax assets and liabilities are recorded for the estimated tax impact of temporary differences between the tax basis and book basis of assets and liabilities. Significant components of the Company’s deferred taxes as of January 1, 2022 and January 2, 2021 were as follows (in thousands): January 1, January 2, 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 5,803 $ 6,839 Tax credit carryforwards 12,247 22,421 Intangible assets 8,687 9,802 Deferred income on shipments to distributors 4,588 3,099 Leases 6,033 6,335 Accrued liabilities 6,078 6,320 Other 4,180 5,513 47,616 60,329 Less: Valuation allowance (9,529) (5,311) 38,087 55,018 Deferred tax liabilities: Intangible assets 14,479 16,758 Fixed assets 8,692 8,473 Leases 5,664 5,999 Debt 16,399 21,674 Unrealized gain on equity method investment 3,342 587 Prepaid expenses and other 6,049 4,332 54,625 57,823 Net deferred tax assets (liabilities) $ (16,538) $ (2,805) As of January 1, 2022, the Company had federal net operating loss and research and development tax credit carryforwards of approximately $18.4 million and $1.8 million, respectively. These carryforwards expire in fiscal years 2022 through 2031. Recognition of these loss and credit carryforwards is subject to an annual limit, which may cause them to expire before they are used. The Company also had state loss, state tentative minimum tax credit, and state research and development tax credit carryforwards of approximately $30.6 million, $0.5 million, and $11.9 million, respectively. Certain of these carryforwards expire in fiscal years 2025 through 2036, and others do not expire. Recognition of some of these loss and credit carryforwards is subject to an annual limit, which may cause them to expire before they are used. 18. Income Taxes (Continued) A valuation allowance is established against a deferred tax asset when it is more likely than not that the deferred tax asset will not be realized. The Company maintains a valuation allowance with respect to certain deferred tax assets relating to state research and development tax credits, state net operating loss carryforwards and state alternative minimum tax credits. The following table summarizes the activity related to the valuation allowance for deferred tax assets (in thousands): Balance at Additions Beginning of Charged to Balance at Period Expenses Deductions End of Period Year ended January 1, 2022 $ 5,311 $ 5,370 $ (1,152) $ 9,529 Year ended January 2, 2021 $ 4,486 $ 847 $ (22) $ 5,311 Year ended December 28, 2019 $ 4,975 $ 1,044 $ (1,533) $ 4,486 At the end of fiscal 2021, undistributed earnings of certain of the Company’s foreign subsidiaries of approximately $107.8 million are intended to be permanently reinvested outside the U.S. Accordingly, no provision for foreign withholding tax and state income taxes associated with a distribution of these earnings has been made. Determination of the amount of the unrecognized deferred tax liability on these unremitted earnings is not practicable. Uncertain Tax Positions The following table summarizes the activity related to gross unrecognized tax benefits (in thousands): Year Ended January 1, January 2, December 28, 2022 2021 2019 Beginning balance $ 2,853 $ 2,276 $ 2,036 Additions based on tax positions related to current year 830 577 436 Reductions based on tax positions related to prior years (6) — (196) Ending balance $ 3,677 $ 2,853 $ 2,276 As of January 1, 2022, January 2, 2021 and December 28, 2019, the Company had gross unrecognized tax benefits, inclusive of interest, of $3.9 million, $3.0 million and $2.4 million, respectively, of which $3.9 million, $2.1 million and $1.9 million, respectively, would affect the effective tax rate if recognized. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision (benefit) for income taxes. These amounts were not material for any of the periods presented. Following the completion of the Norwegian Tax Administration (“NTA”) examination of the Company’s Norwegian subsidiary for income tax matters relating to fiscal years 2013 – 2016, the Company received an assessment from the NTA in December 2017 concerning an adjustment to its 2013 taxable income related to the pricing of an intercompany transaction. The Company is currently appealing the assessment. The adjustment to the pricing of the intercompany transaction results in approximately 141.3 million Norwegian kroner, or $16.0 million, additional Norwegian income tax. The Company disagrees with the NTA’s assessment and believes the Company’s position on this matter is more likely than not to be sustained. The Company plans to exhaust all available administrative remedies, and if unable to resolve this matter through administrative remedies with the NTA, the Company plans to pursue judicial remedies. The Company believes that it has accrued adequate reserves related to all matters contained in tax periods open to examination. Should the Company experience an unfavorable outcome in the NTA matter, however, such an outcome could have a material impact on its financial statements. Tax years 2015 through 2021 remain open to examination by the major taxing jurisdictions in which the Company operates. The Company is not currently under audit in any major taxing jurisdiction. 18. Income Taxes (Continued) The Company believes it is reasonably possible that its gross unrecognized tax benefits will decrease by approximately $0.5 million, inclusive of interest, in the next 12 months due to the lapse of the statute of limitations. |
Segment Information
Segment Information | 12 Months Ended |
Jan. 01, 2022 | |
Segment Information | |
Segment Information | 19. Segment Information The Company has one operating segment, mixed-signal analog intensive products, consisting of numerous product areas. The Company’s chief operating decision maker is considered to be its Chief Executive Officer. The chief operating decision maker allocates resources and assesses performance of the business and other activities at the operating segment level. Revenue is attributed to a geographic area based on the shipped-to location. The following summarizes the Company’s revenue by geographic area (in thousands): Year Ended January 1, January 2, December 28, 2022 2021 2019 United States $ 97,471 $ 59,458 $ 63,404 China 311,513 232,772 203,468 Rest of world 311,876 218,698 206,913 Total $ 720,860 $ 510,928 $ 473,785 The following summarizes the Company’s property and equipment, net by geographic area (in thousands): January 1, January 2, 2022 2021 United States $ 121,990 $ 125,310 Rest of world 24,526 10,493 Total $ 146,516 $ 135,803 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 01, 2022 | |
Significant Accounting Policies | |
Foreign Currency Transactions | Foreign Currency Transactions The Company’s foreign subsidiaries are considered to be extensions of the U.S. Company. The functional currency of the foreign subsidiaries is the U.S. dollar. Accordingly, gains and losses resulting from remeasuring transactions denominated in currencies other than U.S. dollars are included in interest income and other, net in the Consolidated Statements of Income. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) 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, goodwill, acquired intangible assets, other long-lived assets, revenue recognition, stock-based compensation and income taxes. Actual results could differ from those estimates, and such differences could be material to the financial statements. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair values of the Company’s financial instruments are recorded using a hierarchical 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 other than Level 1 that are directly or indirectly observable, such as quoted prices for similar assets or liabilities and quoted prices in less active markets. 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. |
Cash and Cash Equivalents | 2. Significant Accounting Policies (Continued) Cash and Cash Equivalents Cash and cash equivalents consist of cash deposits, certificates of deposit, money market funds and investments in debt securities with original maturities of ninety days or less when purchased. |
Investments | Investments The Company’s investments typically have original maturities greater than ninety days as of the date of purchase and are classified as either available-for-sale or trading securities. Investments in available-for-sale securities are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive income (loss) in the Consolidated Balance Sheet. Investments in trading securities are reported at fair value, with both realized and unrealized gains and losses recorded in interest income and other, net in the Consolidated Statement of Income. Investments in which the Company has the ability and intent, if necessary, to liquidate in order to support its current operations (including those with contractual maturities greater than one year from the date of purchase) are classified as short-term. The Company reviews its available-for-sale investments as of the end of each reporting period for declines in fair value based on the specific identification method. The Company records an allowance for credit loss when a decline in fair value is due to credit-related factors. The Company considers various factors in determining whether an investment is impaired, including the severity of the impairment, changes in underlying credit ratings, forecasted recovery, its intent to sell or the likelihood that it would be required to sell the investment before its anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. When the Company concludes that a credit-related impairment has occurred, the Company assesses whether it intends to sell the security or if it is more likely than not that it will be required to sell the security before recovery. If either of these two conditions is met, the Company recognizes a charge in earnings equal to the entire difference between the security’s amortized cost basis and its fair value. If the Company does not intend to sell a security and it is not more likely than not that it will be required to sell the security before recovery, the unrealized loss is separated into an amount representing the credit loss, which is recognized in earnings, and the amount related to all other factors, which is recorded in accumulated other comprehensive income (loss). In addition, the Company has made equity investments in non-publicly traded companies. Equity investments in which the Company does not have control, but has the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. The Company’s proportionate share of income or loss is recorded in equity-method earning in the Consolidated Statements of Income. The Company has elected to use the measurement alternative under ASU 2019-04 to value non-marketable equity investments that do not have readily determinable fair values. Under the alternative, these non-marketable equity investments are recorded at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes of the same or similar securities in observable transactions. The Company periodically reviews its equity investments for declines in fair value based on the specific identification method and writes down investments to their estimated fair values when it determines that a decline has occurred. |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivative financial instruments to manage certain exposures to the variability of 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. The Company does not use derivative contracts for speculative or trading purposes. The Company recognizes derivatives, on a gross basis, in the Consolidated Balance Sheet at fair value. Cash flows from derivatives are classified according to the nature of the cash receipt or payment in the Consolidated Statement of Cash Flows. The Company also uses foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on non-U.S. dollar balance sheet exposures. The Company does not apply hedge accounting to these foreign currency forward contracts. 2. Significant Accounting Policies (Continued) |
Inventories | Inventories Inventories are stated at the lower of cost, determined using the first-in, first-out method, or net realizable value. The Company writes down the carrying value of inventory to net realizable value for estimated obsolescence or unmarketable inventory based upon assumptions about the age of inventory, future demand and market conditions. Inventory impairment charges establish a new cost basis for inventory and charges are not subsequently reversed to income even if circumstances later suggest that increased carrying amounts are recoverable. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the useful lives of the assets ranging from three The Company owns the facilities for its headquarters in Austin, Texas. The buildings are located on land which is leased through 2099 from a third party. The rents for these ground leases were prepaid for the term of the leases. The buildings and leasehold interest in ground leases are being depreciated on a straight-line basis over their estimated useful lives of 40 years and 86 years, respectively. |
Business Combinations | Business Combinations The Company records business combinations using the acquisition method of accounting and, accordingly, allocates the fair value of acquisition consideration to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of the assets acquired and liabilities assumed is recorded as goodwill. The results of operations of the businesses acquired are included in the Company’s consolidated results of operations beginning on the date of the acquisition. |
Long-Lived Assets | Long-Lived Assets Purchased intangible assets are stated at cost, net of accumulated amortization, and are amortized using the straight-line method over their estimated useful lives, ranging from two Long-lived assets “held and used” by the Company are reviewed for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets and is recorded in the period in which the determination was made. The Company tests goodwill for impairment annually as of the first day of its fourth fiscal quarter and in interim periods if events occur that would indicate that the carrying value of goodwill may be impaired. The Company assesses goodwill for impairment by comparing the fair value of the reporting unit to its carrying amount. In determining fair value, several valuation methodologies are allowed, although quoted market prices are the best evidence of fair value. If the fair value of the reporting unit is less than its carrying amount, an impairment loss is recognized equal to that excess amount. |
Leases | Leases At the commencement date of a lease, the Company recognizes a liability to make lease payments and an asset representing the right to use the underlying asset during the lease term. The lease liability is measured at the present value of lease payments over the lease term. As its leases typically do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date taking into consideration necessary adjustments for collateral, depending on the facts and circumstances of the lessee and the leased asset, and term to match the lease term. The right-of-use (“ROU”) asset is measured at cost, which includes the initial measurement of the lease liability and initial direct costs incurred by the Company and excludes lease incentives. Lease liabilities are recorded in other current liabilities and other non-current liabilities. ROU assets are recorded in other assets, net. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease costs are recognized on a straight-line basis over the lease term. Lease agreements that contain both lease and non-lease components are generally accounted for separately. |
Revenue Recognition | Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Substantially all of the Company’s contracts with customers contain a single performance obligation, the sale of mixed-signal integrated circuit (IC) products. This performance obligation is satisfied when control of the product is transferred to the customer, which typically occurs upon delivery. Unsatisfied performance obligations primarily represent contracts for products with future delivery dates. The Company has opted to not disclose the amount of unsatisfied performance obligations as these contracts have original expected durations of less than one year . The transaction price reflects the Company’s expectations about the consideration it will be entitled to receive from the customer and may include fixed or variable amounts. Variable consideration primarily includes sales made to distributors under agreements allowing certain rights of return, referred to as stock rotation, and credits issued to the distributor due to price protection. The Company estimates variable consideration at the most likely amount to which it expects to be entitled. The estimate is based on information available to the Company, including recent sales activity and pricing data. The Company applies a constraint to its variable consideration estimate which considers both the likelihood of a return and the amount of a potential price concession. Variable consideration that does not meet revenue recognition criteria is deferred. The Company records a right of return asset in prepaid expenses and other current assets for the costs of distributor inventory not meeting revenue recognition criteria. A corresponding deferred revenue and returns liability amount is recorded for unrecognized revenue associated with such costs. The Company’s products carry a one-year replacement warranty. Payments are typically due within 30 days of invoicing and do not include a significant financing component. |
Shipping and Handling | Shipping and Handling Shipping and handling costs are classified as a component of cost of revenues in the Consolidated Statements of Income. |
Stock-Based Compensation | Stock-Based Compensation The Company has stock-based compensation plans, which are more fully described in Note 16, Stock-Based Compensation |
Research and Development | Research and Development Research and development costs are expensed as incurred. Research and development expense consists primarily of personnel-related expenses, including stock-based compensation, as well as new product masks, external consulting and services costs, equipment tooling, equipment depreciation, amortization of intangible assets, and an allocated portion of our occupancy costs. Assets purchased to support the Company’s ongoing research and development activities are capitalized when related to products which have achieved technological feasibility or have an alternative future use, and are amortized over their estimated useful lives. |
Advertising | Advertising Advertising costs are expensed as incurred. Advertising expenses were not material for any of the periods presented. |
Income Taxes | Income Taxes The Company accounts for income taxes using the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax laws and related rates that will be in effect when the differences are expected to reverse. These differences result in deferred tax assets and liabilities, which are included in the Company’s Consolidated Balance Sheets. The Company then assesses the likelihood that the deferred tax assets will be realized. A valuation allowance is established against deferred tax assets to the extent the Company believes that it is more likely than not that the deferred tax assets will not be realized, taking into consideration the level of historical taxable income and projections for future taxable income over the periods in which the temporary differences are deductible. Uncertain tax positions must meet a more-likely-than-not threshold to be recognized in the financial statements and the tax benefits recognized are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon final settlement. See Note 18, Income Taxes |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Discontinued Operations. | |
Schedule of financial results, assets and liabilities from discontinued operations | The following table presents the financial results of the infrastructure and automotive business (the “discontinued operations”) in the Company’s Consolidated Statements of Income (In thousands, except per share data): Year Ended January 1, January 2, December 28, 2022 2021 2019 Revenues $ 233,918 $ 375,749 $ 363,770 Costs of revenues 95,457 143,068 133,700 Operating expenses 46,643 87,293 84,730 Operating income from discontinued operations 91,818 145,388 145,340 Gain on sale of discontinued operations 2,423,161 — — Income from discontinued operations before income taxes 2,514,979 145,388 145,340 Provision for income taxes 339,706 17,372 23,400 Income from discontinued operations $ 2,175,273 $ 128,016 $ 121,940 Income from discontinued operations per share: Basic $ 50.79 $ 2.92 $ 2.81 Diluted $ 49.09 $ 2.89 $ 2.75 The following table summarizes the assets and liabilities of the discontinued operations (in thousands): January 2, 2021 Assets Inventories $ 18,801 Prepaid expenses and other current assets 2,204 Goodwill 255,543 Other assets 9,773 Total assets $ 286,321 Liabilities Other current liabilities $ 433 Other non-current liabilities 451 Total liabilities $ 884 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
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): Year Ended January 1, January 2, December 28, 2022 2021 2019 Loss from continuing operations $ (57,874) $ (115,485) $ (102,675) Shares used in computing basic loss per share 42,830 43,775 43,346 Effect of dilutive securities: Stock-based awards and convertible debt — — — Shares used in computing diluted loss per share 42,830 43,775 43,346 Loss per share: Basic $ (1.35) $ (2.64) $ (2.37) Diluted $ (1.35) $ (2.64) $ (2.37) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Fair Value of Financial Instruments | |
Summary of valuation of the financial instruments | 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 at January 1, 2022 Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Description (Level 1) (Level 2) (Level 3) Total Assets: Cash equivalents: Money market funds $ 845,740 $ — $ — $ 845,740 Corporate debt securities — 3,552 — 3,552 Government debt securities — 2,950 — 2,950 Total cash equivalents $ 845,740 $ 6,502 $ — $ 852,242 Short-term investments: Government debt securities $ 71,509 $ 119,612 $ — $ 191,121 Corporate debt securities — 773,461 — 773,461 Total short-term investments $ 71,509 $ 893,073 $ — $ 964,582 Other assets, net: Auction rate securities $ — $ — $ 4,980 $ 4,980 Total $ — $ — $ 4,980 $ 4,980 Total $ 917,249 $ 899,575 $ 4,980 $ 1,821,804 Fair Value Measurements at January 2, 2021 Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Description (Level 1) (Level 2) (Level 3) Total Assets: Cash equivalents: Money market funds $ 75,606 $ — $ — $ 75,606 Corporate debt securities — 14,995 — 14,995 Government debt securities 2,355 2,564 — 4,919 Total cash equivalents $ 77,961 $ 17,559 $ — $ 95,520 Short-term investments: Government debt securities $ 38,461 $ 104,112 $ — $ 142,573 Corporate debt securities — 379,390 — 379,390 Total short-term investments $ 38,461 $ 483,502 $ — $ 521,963 Other assets, net: Auction rate securities $ — $ — $ 5,340 $ 5,340 Total $ — $ — $ 5,340 $ 5,340 Total $ 116,422 $ 501,061 $ 5,340 $ 622,823 |
Schedule of maturities of the Company's available-for-sale investments and money market funds | Fair Cost Value Due in one year or less $ 578,734 $ 578,666 Due after one year through ten years 394,391 392,417 Due after ten years 6,000 4,980 $ 979,125 $ 976,063 |
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 Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized As of January 1, 2022 Value Losses Value Losses Value Losses Government debt securities $ 126,957 $ (750) $ — $ — $ 126,957 $ (750) Corporate debt securities 418,917 (1,451) 326 (1) 419,243 (1,452) Auction rate securities — — 4,980 (1,020) 4,980 (1,020) $ 545,874 $ (2,201) $ 5,306 $ (1,021) $ 551,180 $ (3,222) Less Than 12 Months 12 Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized As of January 2, 2021 Value Losses Value Losses Value Losses Government debt securities $ 10,146 $ (5) $ — $ — $ 10,146 $ (5) Corporate debt securities 51,909 (74) — — 51,909 (74) Auction rate securities — — 5,340 (660) 5,340 (660) $ 62,055 $ (79) $ 5,340 $ (660) $ 67,395 $ (739) |
Summary of quantitative information about level 3 fair value measurements | Auction rate securities Fair Value at January 1, 2022 (000s) Valuation Technique Unobservable Input Weighted Average $ 4,980 Discounted cash flow Estimated yield 1.07% Expected holding period 10 years Estimated discount rate 2.45% |
Summary of activity in Level 3 financial instruments | Assets Year Ended January 1, January 2, Auction Rate Securities 2022 2021 Beginning balance $ 5,340 $ 5,647 Losses included in other comprehensive income (loss) (360) (307) Ending balance $ 4,980 $ 5,340 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Balance Sheet Details | |
Schedule of Inventories | The following tables show the details of selected Consolidated Balance Sheet items (in thousands): January 1, January 2, 2022 2021 Work in progress $ 36,078 $ 41,747 Finished goods 13,229 6,114 $ 49,307 $ 47,861 |
Summary of Prepaid Expenses and Other Current Assets | January 1, January 2, 2022 2021 Distributor advances $ 13,397 $ 51,190 Other 38,351 35,913 $ 51,748 $ 87,103 |
Schedule of other assets net | January 1, January 2, 2022 2021 Equity-method investment* $ 24,078 $ 10,057 Other 53,761 66,618 $ 77,839 $ 76,675 *The Company holds an 8% equity interest in China Walden Venture Investments III, a limited partnership. |
Schedule of Property and Equipment | January 1, January 2, 2022 2021 Buildings and improvements $ 122,163 $ 118,331 Equipment 48,876 39,378 Computers and purchased software 48,519 46,174 Leasehold interest in ground leases 23,840 23,840 Leasehold improvements 13,427 8,684 Furniture and fixtures 10,794 8,621 267,619 245,028 Accumulated depreciation (121,103) (109,225) $ 146,516 $ 135,803 |
Schedule of Other Current Liabilities | January 1, January 2, 2022 2021 Accrued compensation and benefits $ 42,008 $ 46,633 Income taxes payable 73,771 5,797 Other 41,273 29,220 $ 157,052 $ 81,650 |
Risks and Uncertainties (Tables
Risks and Uncertainties (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Accounts receivable | |
Schedule of concentration risk | The Company’s customers that accounted for greater than 10% of accounts receivable consisted of the following distributors: January 1, January 2, 2022 2021 Arrow Electronics 28 % 28 % Edom Technology 18 % 21 % |
Revenue | |
Schedule of concentration risk | The Company’s distributors that accounted for greater than 10% of revenue consisted of the following: Year Ended January 1, January 2, December 28, 2022 2021 2019 Arrow Electronics 28 % 28 % 26 % Edom Technology 18 % 19 % 18 % Sekorm 12 % 14 % 10 % |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Redpine Signals | |
Schedule of purchase price allocation | Weighted-Average Amortization Period Amount (Years) Intangible assets: In-process research and development $ 11,753 Not amortized Developed technology 61,674 8 Customer relationships 2,450 2 Trademarks 661 2 76,538 Accounts receivable 1,395 Inventory 4,375 Other current assets 1,251 Goodwill 233,530 Other non-current assets 673 Current liabilities (856) Non-current liabilities (97) Total purchase price $ 316,809 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Goodwill and Other Intangible Assets | |
Summary of goodwill activity | The following summarizes the activity in goodwill for the years ended January 1, 2022 and January 2, 2021 (in thousands): Year Ended January 1, January 2, 2022 2021 Beginning balance $ 376,389 $ 237,294 Additions due to business combinations — 139,095 Ending balance $ 376,389 $ 376,389 |
Schedule of gross carrying amount and accumulated amortization of other intangible assets | The gross carrying amount and accumulated amortization of other intangible assets are as follows (in thousands): Weighted-Average Amortization January 1, 2022 January 2, 2021 Period Gross Accumulated Gross Accumulated (Years) Amount Amortization Amount Amortization Subject to amortization: Developed technology 8 $ 238,092 $ (124,337) $ 243,739 $ (109,417) Customer relationships 4 27,450 (24,958) 41,270 (30,321) Trademarks 5 11,471 (8,740) 12,771 (6,312) 7 277,013 (158,035) 297,780 (146,050) Not subject to amortization: In-process research and development Not amortized — — 11,753 — Total intangible assets $ 277,013 $ (158,035) $ 309,533 $ (146,050) |
Schedule of estimated aggregate amortization expense for intangible assets subject to amortization | The estimated aggregate amortization expense for intangible assets subject to amortization for each of the five succeeding fiscal years is as follows (in thousands): Fiscal Year 2022 $ 34,071 2023 25,374 2024 23,034 2025 13,369 2026 9,178 |
Schedule of amortization expense of intangible assets | The following table presents details of intangible asset amortization expense recognized in the Consolidated Statements of Income (in thousands): Year Ended January 1, January 2, December 28, 2022 2021 2019 Research and development $ 32,319 $ 31,351 $ 27,858 Selling, general and administrative 12,186 11,218 9,876 $ 44,505 $ 42,569 $ 37,734 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Debt | |
Summary of information about the equity and liability components of convertible debt | The carrying amount of the Notes consisted of the following (in thousands): January 1, January 2, 2022 2021 Liability component Principal $ 535,000 $ 675,567 Unamortized debt discount (78,519) (103,953) Unamortized debt issuance costs (5,882) (8,189) Net carrying amount $ 450,599 $ 563,425 Equity component Net carrying amount $ 107,928 $ 108,438 |
Schedule of components of interest expense | Interest expense related to the notes was comprised of the following (in thousands): Year Ended January 1, January 2, December 28, 2022 2021 2019 Contractual interest expense $ 3,662 $ 5,530 $ 5,485 Amortization of debt discount 21,112 19,375 11,717 Amortization of debt issuance costs 1,655 2,058 1,768 $ 26,429 $ 26,963 $ 18,970 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Leases | |
Summary of supplemental lease information | January 1, January 2, Balance Sheet Information (in thousands) 2022 2021 Operating lease right-of-use assets $ 27,896 $ 27,392 Operating lease liabilities $ 29,171 $ 29,017 Year Ended January 1, January 2, Cash Flow Information (in thousands) 2022 2021 Cash paid for operating lease liabilities $ 7,138 $ 5,541 Right-of-use assets obtained in exchange for operating lease obligations $ 6,335 $ 16,711 January 1, January 2, Operating Lease Information 2022 2021 Weighted-average remaining lease term 5.9 years 6.4 years Weighted-average discount rate 3.83 % 4.24 % |
Schedule of maturities of operating lease liabilities | The maturities of operating lease liabilities as of January 1, 2022 were as follows (in thousands): Fiscal Year 2022 $ 7,136 2023 6,207 2024 5,188 2025 3,786 2026 2,623 Thereafter 7,403 Total lease payments 32,343 Less imputed interest (3,172) Total lease liabilities $ 29,171 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Revenues | |
Schedule of disaggregation of revenue by sales channel | Year Ended January 1, January 2, December 28, 2022 2021 2019 Distributors $ 584,010 $ 416,606 $ 361,645 Direct customers 136,850 94,322 112,140 $ 720,860 $ 510,928 $ 473,785 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Stock-Based Compensation | |
Summary of assumptions used to estimate fair values for ESPP | The fair values estimated from the Black-Scholes option-pricing model for ESPP shares granted were calculated using the following assumptions: Year Ended January 1, January 2, December 28, Employee Stock Purchase Plan 2022 2021 2019 Expected volatility 42 % 67 % 37 % Risk-free interest rate % 0.05 % 0.15 % 1.6 % Expected term (in months) 9 9 9 Dividend yield — — — |
Summary of assumptions used to estimate fair values for MSUs | The fair values estimated from the Monte Carlo simulation for MSUs were calculated using the following assumptions: Year Ended January 2, December 28, MSUs 2021 2019 Expected volatility 36 % 31 % Risk-free interest rate % 1.3 % 2.4 % Expected term (in years) 2.9 2.9 Dividend yield — — |
Summary of stock-based compensation activity, options | A summary of stock-based compensation activity with respect to fiscal 2021 follows: Weighted- Weighted-Average Aggregate Average Remaining Intrinsic Shares Exercise Contractual Term Value Stock Options (000s) Price (In Years) (000s) Outstanding at January 2, 2021 127 $ 39.16 5.11 $ 11,232 Outstanding at January 1, 2022 118 $ 38.80 4.12 $ 19,825 Vested at January 1, 2022 and expected to vest 118 $ 38.80 4.12 $ 19,825 Exercisable at January 1, 2022 118 $ 38.80 4.12 $ 19,825 |
Summary of stock-based compensation activity, RSAs and RSUs | Weighted- Weighted-Average Aggregate Average Remaining Intrinsic Shares Grant Date Vesting Term Value RSAs and RSUs (000s) Fair Value (In Years) (000s) Outstanding at January 2, 2021 1,106 $ 97.07 Granted 452 $ 135.28 Vested or issued (502) $ 95.04 Cancelled or forfeited (225) $ 108.61 Outstanding at January 1, 2022 831 $ 115.72 1.11 $ 171,476 Outstanding at January 1, 2022 and expected to vest 770 $ 115.10 1.11 $ 159,028 |
Summary of stock-based compensation activity, PSUs and MSUs | Weighted- Weighted-Average Aggregate Average Remaining Intrinsic Shares Grant Date Vesting Term Value PSUs and MSUs (000s) Fair Value (In Years) (000s) Outstanding at January 2, 2021 233 $ 79.80 Granted 117 $ 145.11 Earned or issued (37) $ 97.19 Cancelled or forfeited (67) $ 89.45 Outstanding at January 1, 2022 246 $ 105.58 1.44 $ 50,792 Outstanding at January 1, 2022 and expected to vest 224 $ 102.01 1.44 $ 46,297 |
Summary of weighted average fair value at the date of grant | The following summarizes the Company’s weighted average fair value at the date of grant: Year Ended January 1, January 2, December 28, 2022 2021 2019 Per grant of RSAs and RSUs $ 135.28 $ 100.27 $ 89.35 Per grant of PSUs and MSUs $ 145.11 $ 98.58 $ 85.79 |
Summary of stock-based payment and stock option values | The following summarizes the Company’s stock-based payment and stock option values (in thousands): Year Ended January 1, January 2, December 28, 2022 2021 2019 Intrinsic value of stock options exercised $ 986 $ 558 $ — Intrinsic value of RSUs that vested $ 76,654 $ 48,534 $ 57,693 Grant date fair value of RSUs that vested $ 47,726 $ 37,477 $ 40,434 Intrinsic value of PSUs and MSUs that vested $ 5,231 $ 8,545 $ 3,649 Grant date fair value of PSUs and MSUs that vested $ 3,562 $ 6,302 $ 1,461 |
Schedule of stock-based compensation costs recognized in the Condensed Consolidated Statements of Income | The following table presents details of stock-based compensation costs recognized in the Consolidated Statements of Income (in thousands): Year Ended January 1, January 2, December 28, 2022 2021 2019 Cost of revenues $ 964 $ 970 $ 790 Research and development 24,986 23,359 19,996 Selling, general and administrative 30,892 25,125 23,548 56,842 49,454 44,334 Income tax benefit (954) (3,694) (2,584) Share-based compensation – continuing operations 55,888 45,760 41,750 Share-based compensation – discontinued operations, net (2,007) 10,715 10,574 Total $ 53,881 $ 56,475 $ 52,324 |
Summary of shares reserved of common stock for future issuance | As of January 1, 2022, the Company had reserved shares of common stock for future issuance as follows (in thousands): 2009 Stock Incentive Plan 2,946 2009 Employee Stock Purchase Plan 1,254 Total shares reserved 4,200 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Income Taxes | |
Schedule of income before income taxes | Loss from continuing operations before income taxes includes the following components (in thousands): Year Ended January 1, January 2, December 28, 2022 2021 2019 Domestic $ (29,112) $ (58,104) $ (38,448) Foreign (29,063) (74,099) (57,563) $ (58,175) $ (132,203) $ (96,011) |
Schedule of provision (benefit) for income taxes | The provision (benefit) for income taxes consists of the following (in thousands): Year Ended January 1, January 2, December 28, 2022 2021 2019 Current: Domestic $ (12,630) $ (9,740) $ (20,962) Foreign 9,447 1,656 4,940 Total Current (3,183) (8,084) (16,022) Deferred: Domestic 17,873 (4,031) 33,624 Foreign (1,263) (2,487) (10,618) Total Deferred 16,610 (6,518) 23,006 Provision (benefit) for income taxes $ 13,427 $ (14,602) $ 6,984 |
Schedule of reconciliation of federal statutory tax rate to effective tax rate | The reconciliation of the federal statutory tax rate to the Company’s effective tax rate is as follows: Year Ended January 1, January 2, December 28, 2022 2021 2019 Federal statutory rate 21.0 % 21.0 % 21.0 % Foreign tax rate benefit (12.5) (11.1) (9.7) Research and development tax credits 0.1 4.2 5.3 GILTI and Subpart F Income (1.8) 0.2 0.2 (Nondeductible) nontaxable foreign items (4.9) 0.1 (2.5) Nondeductible officer compensation (7.8) (1.7) (2.0) Change in cost-sharing treatment of stock-based compensation — — (19.2) Excess tax benefit of stock-based compensation 2.8 0.4 0.8 Other tax effects of equity compensation 0.4 0.1 0.7 Change in prior period valuation allowance (8.0) (0.3) (0.7) (Nondeductible) nontaxable domestic items (2.1) (1.6) (1.6) Net operating loss not benefited (9.5) — — Other (0.8) (0.3) 0.4 Effective tax rate (23.1) % 11.0 % (7.3) % |
Schedule of significant components of deferred taxes | Significant components of the Company’s deferred taxes as of January 1, 2022 and January 2, 2021 were as follows (in thousands): January 1, January 2, 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 5,803 $ 6,839 Tax credit carryforwards 12,247 22,421 Intangible assets 8,687 9,802 Deferred income on shipments to distributors 4,588 3,099 Leases 6,033 6,335 Accrued liabilities 6,078 6,320 Other 4,180 5,513 47,616 60,329 Less: Valuation allowance (9,529) (5,311) 38,087 55,018 Deferred tax liabilities: Intangible assets 14,479 16,758 Fixed assets 8,692 8,473 Leases 5,664 5,999 Debt 16,399 21,674 Unrealized gain on equity method investment 3,342 587 Prepaid expenses and other 6,049 4,332 54,625 57,823 Net deferred tax assets (liabilities) $ (16,538) $ (2,805) |
Schedule of valuation allowance | Balance at Additions Beginning of Charged to Balance at Period Expenses Deductions End of Period Year ended January 1, 2022 $ 5,311 $ 5,370 $ (1,152) $ 9,529 Year ended January 2, 2021 $ 4,486 $ 847 $ (22) $ 5,311 Year ended December 28, 2019 $ 4,975 $ 1,044 $ (1,533) $ 4,486 |
Schedule of activity related to gross unrecognized tax benefits | The following table summarizes the activity related to gross unrecognized tax benefits (in thousands): Year Ended January 1, January 2, December 28, 2022 2021 2019 Beginning balance $ 2,853 $ 2,276 $ 2,036 Additions based on tax positions related to current year 830 577 436 Reductions based on tax positions related to prior years (6) — (196) Ending balance $ 3,677 $ 2,853 $ 2,276 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Segment Information | |
Schedule of revenue attributed to geographic area based on shipped-to location | The following summarizes the Company’s revenue by geographic area (in thousands): Year Ended January 1, January 2, December 28, 2022 2021 2019 United States $ 97,471 $ 59,458 $ 63,404 China 311,513 232,772 203,468 Rest of world 311,876 218,698 206,913 Total $ 720,860 $ 510,928 $ 473,785 |
Schedule of property and equipment, net by geographic area | The following summarizes the Company’s property and equipment, net by geographic area (in thousands): January 1, January 2, 2022 2021 United States $ 121,990 $ 125,310 Rest of world 24,526 10,493 Total $ 146,516 $ 135,803 |
Description of Business (Detail
Description of Business (Details) $ in Millions | Apr. 22, 2021USD ($) |
Skyworks Solutions, Inc. | Discontinued Operations | Infrastructure and automotive business | |
Description of Business | |
Asset Purchase Agreement sale amount | $ 2,750 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Significant Accounting Policies | |||
Length of fiscal year | 364 days | 371 days | 364 days |
Minimum | |||
Significant Accounting Policies | |||
Length of fiscal year | 364 days | ||
Maximum | |||
Significant Accounting Policies | |||
Length of fiscal year | 371 days |
Significant Accounting Polici_4
Significant Accounting Policies - Property and Equipment, Long-Lived Assets and Leases (Details) | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Leases | ||
Operating lease right-of-use assets, Statement of Financial Position | Other assets, net | Other assets, net |
Operating lease liabilities, Statement of Financial Position | us-gaap:LiabilitiesOtherThanLongtermDebtNoncurrent, Other current liabilities | us-gaap:LiabilitiesOtherThanLongtermDebtNoncurrent, Other current liabilities |
Minimum | ||
Property and Equipment | ||
Useful life, Property and Equipment | 3 years | |
Long-Lived Assets | ||
Useful life, Intangible assets | 2 years | |
Maximum | ||
Property and Equipment | ||
Useful life, Property and Equipment | 15 years | |
Long-Lived Assets | ||
Useful life, Intangible assets | 12 years | |
Buildings | ||
Property and Equipment | ||
Useful life, Property and Equipment | 40 years | |
Leasehold interest in ground leases | ||
Property and Equipment | ||
Useful life, Property and Equipment | 86 years |
Significant Accounting Polici_5
Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2022 | |
Revenue Recognition | ||
Product replacement warranty | 1 year | |
0.625% Convertible Senior Notes (2025 Notes) | ASU 2020-06 | Pro Forma | ||
Revenue Recognition | ||
Increase in carrying value of convertible debt | $ 78.5 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 26, 2021 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | Apr. 22, 2021 |
Infrastructure and automotive business | |||||
Income from discontinued operations, net of income taxes | |||||
Gain on sale of discontinued operations | $ 346,900 | ||||
Provision for income taxes | 7,200 | ||||
Discontinued Operations | Transition Services Agreement | |||||
Continuing Involvement | |||||
TSA fees | 4,200 | ||||
Discontinued Operations | Infrastructure and automotive business | |||||
Income from discontinued operations, net of income taxes | |||||
Revenues | 233,918 | $ 375,749 | $ 363,770 | ||
Costs of revenues | 95,457 | 143,068 | 133,700 | ||
Operating expenses | 46,643 | 87,293 | 84,730 | ||
Operating income from discontinued operations | 91,818 | 145,388 | 145,340 | ||
Gain on sale of discontinued operations | 2,423,161 | ||||
Income from discontinued operations before income taxes | 2,514,979 | 145,388 | 145,340 | ||
Provision for income taxes | 339,706 | 17,372 | 23,400 | ||
Income from discontinued operations | $ 2,175,273 | $ 128,016 | $ 121,940 | ||
Income from discontinued operations per share: | |||||
Basic | $ 50.79 | $ 2.92 | $ 2.81 | ||
Diluted | $ 49.09 | $ 2.89 | $ 2.75 | ||
Assets | |||||
Inventories | $ 18,801 | ||||
Prepaid expenses and other current assets | 2,204 | ||||
Goodwill | 255,543 | ||||
Other assets | 9,773 | ||||
Total assets | 286,321 | ||||
Liabilities | |||||
Other current liabilities | 433 | ||||
Other non-current liabilities | 451 | ||||
Total liabilities | $ 884 | ||||
Discontinued Operations | Infrastructure and automotive business | Minimum | |||||
Continuing Involvement | |||||
Term of continuing involvement | 3 months | ||||
Discontinued Operations | Infrastructure and automotive business | Maximum | |||||
Continuing Involvement | |||||
Term of continuing involvement | 18 months | ||||
Discontinued Operations | Infrastructure and automotive business | Skyworks Solutions, Inc. | |||||
Discontinued Operations | |||||
Asset Purchase Agreement sale amount | $ 2,750,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Earnings Per Share | |||
Loss from continuing operations | $ (57,874) | $ (115,485) | $ (102,675) |
Shares used in computing basic loss per share | 42,830 | 43,775 | 43,346 |
Effect of dilutive securities: | |||
Stock-based awards and convertible debt | |||
Shares used in computing diluted loss per share | 42,830 | 43,775 | 43,346 |
Loss per share: | |||
Loss per share, Basic (in dollars per share) | $ (1.35) | $ (2.64) | $ (2.37) |
Loss per share, Diluted (in dollars per share) | $ (1.35) | $ (2.64) | $ (2.37) |
Shares excluded from calculation of diluted shares due to loss from continuing operations | 1,500 | 600 | 900 |
Shares attributable to dilutive effect of conversion of debt securities | 1,000 | 200 | 400 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of financial instruments (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Financial assets and liabilities measured at fair value on a recurring basis | ||
Short-term investments | $ 964,582 | $ 521,963 |
Recurring | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 852,242 | 95,520 |
Short-term investments | 964,582 | 521,963 |
Other assets, net | 4,980 | 5,340 |
Total assets at fair value | 1,821,804 | 622,823 |
Recurring | Money market funds | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 845,740 | 75,606 |
Recurring | Corporate debt securities | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 3,552 | 14,995 |
Short-term investments | 773,461 | 379,390 |
Recurring | Government debt securities | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 2,950 | 4,919 |
Short-term investments | 191,121 | 142,573 |
Recurring | Auction rate securities | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Other assets, net | 4,980 | 5,340 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 845,740 | 77,961 |
Short-term investments | 71,509 | 38,461 |
Total assets at fair value | 917,249 | 116,422 |
Recurring | 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 | ||
Cash equivalents | 845,740 | 75,606 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government debt securities | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 2,355 | |
Short-term investments | 71,509 | 38,461 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 6,502 | 17,559 |
Short-term investments | 893,073 | 483,502 |
Total assets at fair value | 899,575 | 501,061 |
Recurring | Significant Other Observable Inputs (Level 2) | Corporate debt securities | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 3,552 | 14,995 |
Short-term investments | 773,461 | 379,390 |
Recurring | Significant Other Observable Inputs (Level 2) | Government debt securities | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 2,950 | 2,564 |
Short-term investments | 119,612 | 104,112 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Other assets, net | 4,980 | 5,340 |
Total assets at fair value | 4,980 | 5,340 |
Recurring | Significant Unobservable Inputs (Level 3) | Auction rate securities | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Other assets, net | $ 4,980 | $ 5,340 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Contractual maturities of investments (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Cost | ||
Due in one year or less, Cost | $ 578,734 | |
Due after one year through ten years, Cost | 394,391 | |
Due after ten years, Cost | 6,000 | |
Total Cost | 979,125 | |
Fair Value | ||
Due in one year or less, Fair Value | 578,666 | |
Due after one year through ten years, Fair Value | 392,417 | |
Due after ten years, Fair Value | 4,980 | |
Total Fair Value | 976,063 | |
Continuous unrealized loss position, Fair Value | ||
Fair value of available-for-sale securities, continuous loss position for less than twelve months | 545,874 | $ 62,055 |
Fair value of available-for-sale securities, continuous loss position for twelve months or greater | 5,306 | 5,340 |
Total fair value of available-for-sale securities, continuous loss position | 551,180 | 67,395 |
Continuous unrealized loss position, Gross Unrealized Losses | ||
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses | (2,201) | (79) |
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses | (1,021) | (660) |
Available-for-sale securities, total gross unrealized losses | (3,222) | (739) |
Government debt securities | ||
Continuous unrealized loss position, Fair Value | ||
Fair value of available-for-sale securities, continuous loss position for less than twelve months | 126,957 | 10,146 |
Total fair value of available-for-sale securities, continuous loss position | 126,957 | 10,146 |
Continuous unrealized loss position, Gross Unrealized Losses | ||
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses | (750) | (5) |
Available-for-sale securities, total gross unrealized losses | (750) | (5) |
Corporate debt securities | ||
Continuous unrealized loss position, Fair Value | ||
Fair value of available-for-sale securities, continuous loss position for less than twelve months | 418,917 | 51,909 |
Fair value of available-for-sale securities, continuous loss position for twelve months or greater | 326 | |
Total fair value of available-for-sale securities, continuous loss position | 419,243 | 51,909 |
Continuous unrealized loss position, Gross Unrealized Losses | ||
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses | (1,451) | (74) |
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses | (1) | |
Available-for-sale securities, total gross unrealized losses | (1,452) | (74) |
Auction rate securities | ||
Continuous unrealized loss position, Fair Value | ||
Fair value of available-for-sale securities, continuous loss position for twelve months or greater | 4,980 | 5,340 |
Total fair value of available-for-sale securities, continuous loss position | 4,980 | 5,340 |
Continuous unrealized loss position, Gross Unrealized Losses | ||
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses | (1,020) | (660) |
Available-for-sale securities, total gross unrealized losses | $ (1,020) | $ (660) |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Auction rate securities (Details) | Jan. 01, 2022USD ($)itemY | Jan. 02, 2021USD ($) | Dec. 28, 2019USD ($) |
Quantitative information for Level 3 Fair Value Measurements Assets | |||
Fair value balance at the end of the period | $ 4,980,000 | $ 5,340,000 | $ 5,647,000 |
Weighted Average | Expected holding period | Discounted cash flow | |||
Quantitative information for Level 3 Fair Value Measurements Assets | |||
Unobservable Input | 10 | ||
Auction rate securities | Significant Unobservable Inputs (Level 3) | Weighted Average | Estimated yield | Discounted cash flow | |||
Quantitative information for Level 3 Fair Value Measurements Assets | |||
Unobservable Input | item | 0.0107 | ||
Auction rate securities | Significant Unobservable Inputs (Level 3) | Weighted Average | Expected holding period | Discounted cash flow | |||
Quantitative information for Level 3 Fair Value Measurements Assets | |||
Unobservable Input | Y | 10 | ||
Auction rate securities | Significant Unobservable Inputs (Level 3) | Weighted Average | Estimated discount rate | Discounted cash flow | |||
Quantitative information for Level 3 Fair Value Measurements Assets | |||
Unobservable Input | item | 0.0245 | ||
Auction rate securities | Recurring | Significant Unobservable Inputs (Level 3) | |||
Quantitative information for Level 3 Fair Value Measurements Assets | |||
Fair value balance at the end of the period | $ 4,980,000 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Activity in Level 3 financial instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Fair value assets reconciliation of changes | ||
Balance at the beginning of the period | $ 5,340 | $ 5,647 |
Loss included in other comprehensive income (loss) | (360) | (307) |
Balance at the end of the period | 4,980 | $ 5,340 |
Significant Unobservable Inputs (Level 3) | Recurring | Auction rate securities | ||
Fair value assets reconciliation of changes | ||
Balance at the end of the period | $ 4,980 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Fair values of other financial instruments (Details) - USD ($) $ in Millions | Jan. 01, 2022 | Jan. 02, 2021 | Jun. 01, 2020 | Mar. 06, 2017 |
0.625% Convertible Senior Notes (2025 Notes) | ||||
Fair values of other financial instruments | ||||
Interest rate (as a percent) | 0.625% | 0.625% | ||
Fair value of debt | $ 944.3 | $ 671.4 | ||
1.375% Convertible Senior Notes (2022 Notes) | ||||
Fair values of other financial instruments | ||||
Interest rate (as a percent) | 1.375% |
Derivative Financial Instrume_2
Derivative Financial Instruments (Details) - Non-designated Hedges - Foreign currency forward contracts $ in Millions | Jan. 01, 2022USD ($)contract |
Singapore Dollars | |
Derivative Financial Instruments | |
Number of foreign currency forward contracts held | contract | 1 |
Derivative, notional amount | $ | $ 3.7 |
Indian Rupees | |
Derivative Financial Instruments | |
Number of foreign currency forward contracts held | contract | 2 |
Derivative, notional amount | $ | $ 7.4 |
Hungarian Forint | |
Derivative Financial Instruments | |
Number of foreign currency forward contracts held | contract | 1 |
Derivative, notional amount | $ | $ 2.1 |
Balance Sheet Details (Details)
Balance Sheet Details (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Inventories | ||
Work in progress | $ 36,078 | $ 41,747 |
Finished goods | 13,229 | 6,114 |
Inventories | 49,307 | 47,861 |
Prepaid Expenses and Other Current Assets | ||
Distributor advances | 13,397 | 51,190 |
Other | 38,351 | 35,913 |
Prepaid Expenses and Other Current Assets | 51,748 | 87,103 |
Other Assets, net | ||
Equity-method investment | 24,078 | 10,057 |
Other | 53,761 | 66,618 |
Total Other Assets, net | 77,839 | 76,675 |
Property and Equipment | ||
Property and equipment, gross | 267,619 | 245,028 |
Accumulated depreciation | (121,103) | (109,225) |
Total Property and Equipment, net | 146,516 | 135,803 |
Other Current Liabilities | ||
Accrued compensation and benefits | 42,008 | 46,633 |
Income taxes payable | 73,771 | 5,797 |
Other | 41,273 | 29,220 |
Total Other Current Liabilities | $ 157,052 | 81,650 |
China Walden Venture Investments III | ||
Other Assets, net | ||
Percentage of equity interest held | 8.00% | |
Buildings and improvements | ||
Property and Equipment | ||
Property and equipment, gross | $ 122,163 | 118,331 |
Equipment | ||
Property and Equipment | ||
Property and equipment, gross | 48,876 | 39,378 |
Computers and purchased software | ||
Property and Equipment | ||
Property and equipment, gross | 48,519 | 46,174 |
Leasehold interest in ground leases | ||
Property and Equipment | ||
Property and equipment, gross | 23,840 | 23,840 |
Leasehold improvements | ||
Property and Equipment | ||
Property and equipment, gross | 13,427 | 8,684 |
Furniture and fixtures | ||
Property and Equipment | ||
Property and equipment, gross | $ 10,794 | $ 8,621 |
Risks and Uncertainties (Detail
Risks and Uncertainties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Risks and Uncertainties | |||
Equity method investments | $ 24,078 | $ 10,057 | |
Accounts receivable | Customers | Arrow Electronics | |||
Risks and Uncertainties | |||
Concentrations of credit risk (as a percent) | 28.00% | 28.00% | |
Accounts receivable | Customers | Edom Technology | |||
Risks and Uncertainties | |||
Concentrations of credit risk (as a percent) | 18.00% | 21.00% | |
Revenue | Distributors | Arrow Electronics | |||
Risks and Uncertainties | |||
Concentrations of credit risk (as a percent) | 28.00% | 28.00% | 26.00% |
Revenue | Distributors | Edom Technology | |||
Risks and Uncertainties | |||
Concentrations of credit risk (as a percent) | 18.00% | 19.00% | 18.00% |
Revenue | Distributors | Sekorm | |||
Risks and Uncertainties | |||
Concentrations of credit risk (as a percent) | 12.00% | 14.00% | 10.00% |
Acquisition (Details)
Acquisition (Details) - USD ($) $ in Thousands | Apr. 28, 2020 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 |
Purchase price allocation | ||||
Goodwill | $ 376,389 | $ 376,389 | $ 237,294 | |
Weighted-Average Amortization Period (Years) | 7 years | |||
Customer relationships | ||||
Purchase price allocation | ||||
Weighted-Average Amortization Period (Years) | 4 years | |||
Trademarks | ||||
Purchase price allocation | ||||
Weighted-Average Amortization Period (Years) | 5 years | |||
Redpine Signals | ||||
Purchase price allocation | ||||
Intangible assets | $ 76,538 | |||
Accounts receivable | 1,395 | |||
Inventory | 4,375 | |||
Other current assets | 1,251 | |||
Goodwill | 233,530 | |||
Other non-current assets | 673 | |||
Current liabilities | (856) | |||
Non-current liabilities | (97) | |||
Total purchase price | 316,809 | |||
Redpine Signals | Selling, general and administrative | ||||
Purchase price allocation | ||||
Acquisition-related costs | $ 1,500 | |||
Redpine Signals | Developed technology | ||||
Purchase price allocation | ||||
Intangible assets | $ 61,674 | |||
Weighted-Average Amortization Period (Years) | 8 years | |||
Redpine Signals | Customer relationships | ||||
Purchase price allocation | ||||
Intangible assets | $ 2,450 | |||
Weighted-Average Amortization Period (Years) | 2 years | |||
Redpine Signals | Trademarks | ||||
Purchase price allocation | ||||
Intangible assets | $ 661 | |||
Weighted-Average Amortization Period (Years) | 2 years | |||
Redpine Signals | In-process research and development | ||||
Purchase price allocation | ||||
Intangible assets | $ 11,753 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) $ in Thousands | 12 Months Ended |
Jan. 02, 2021USD ($) | |
Goodwill | |
Beginning balance | $ 237,294 |
Additions due to business combinations | 139,095 |
Ending balance | $ 376,389 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | Apr. 28, 2020 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 |
Subject to amortization: | ||||
Weighted-Average Amortization Period (Years) | 7 years | |||
Gross Amount | $ 277,013 | $ 297,780 | ||
Accumulated Amortization | (158,035) | (146,050) | ||
Total Other Intangible Assets | ||||
Gross Amount | 277,013 | 309,533 | ||
Removal of fully amortized intangible assets | 32,500 | |||
Amortization expense related to intangible assets | 44,505 | 42,569 | $ 37,734 | |
Research and development | ||||
Total Other Intangible Assets | ||||
Amortization expense related to intangible assets | 32,319 | 31,351 | 27,858 | |
Selling, general and administrative | ||||
Total Other Intangible Assets | ||||
Amortization expense related to intangible assets | $ 12,186 | 11,218 | $ 9,876 | |
In-process research and development | ||||
Not subject to amortization: | ||||
Not subject to amortization | 11,753 | |||
Core and developed technology | ||||
Subject to amortization: | ||||
Weighted-Average Amortization Period (Years) | 8 years | |||
Gross Amount | $ 238,092 | 243,739 | ||
Accumulated Amortization | $ (124,337) | (109,417) | ||
Customer relationships | ||||
Subject to amortization: | ||||
Weighted-Average Amortization Period (Years) | 4 years | |||
Gross Amount | $ 27,450 | 41,270 | ||
Accumulated Amortization | $ (24,958) | (30,321) | ||
Customer relationships | Redpine Signals | ||||
Subject to amortization: | ||||
Weighted-Average Amortization Period (Years) | 2 years | |||
Trademarks | ||||
Subject to amortization: | ||||
Weighted-Average Amortization Period (Years) | 5 years | |||
Gross Amount | $ 11,471 | 12,771 | ||
Accumulated Amortization | $ (8,740) | $ (6,312) | ||
Trademarks | Redpine Signals | ||||
Subject to amortization: | ||||
Weighted-Average Amortization Period (Years) | 2 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Amortization Expense For Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Goodwill and Other Intangible Assets | |||
Amortization expense of intangible asset | $ 44,505 | $ 42,569 | $ 37,734 |
Research and development | |||
Goodwill and Other Intangible Assets | |||
Amortization expense of intangible asset | 32,319 | 31,351 | 27,858 |
Selling, general and administrative | |||
Goodwill and Other Intangible Assets | |||
Amortization expense of intangible asset | $ 12,186 | $ 11,218 | $ 9,876 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Estimated aggregate amortization expense (Details) $ in Thousands | Jan. 01, 2022USD ($) |
Estimated aggregate amortization expense for intangible assets subject to amortization | |
2022 | $ 34,071 |
2023 | 25,374 |
2024 | 23,034 |
2025 | 13,369 |
2026 | $ 9,178 |
Debt - Convertible Senior Notes
Debt - Convertible Senior Notes (Details) $ / shares in Units, $ in Thousands | Jan. 06, 2021USD ($)shares | Jun. 01, 2020USD ($)D$ / shares | Jan. 01, 2022USD ($) | Jan. 02, 2021USD ($) | Mar. 06, 2017USD ($) |
Debt | |||||
Loss on debt extinguishment | $ (3,370) | $ (4,060) | |||
0.625% Convertible Senior Notes (2025 Notes) | |||||
Debt | |||||
Principal amount | $ 535,000 | ||||
Semi-annual interest rate | 0.625% | 0.625% | |||
Conversion rate, shares per $1,000 principal | 8.1980 | ||||
Conversion, number of shares of common stock | 4,400 | ||||
Initial conversion price | $ / shares | $ 121.98 | ||||
Debt issuance costs | $ 10,400 | ||||
0.625% Convertible Senior Notes (2025 Notes) | Conversion of Notes, Holders | |||||
Debt | |||||
Number of trading days within 30 trading day period | D | 20 | ||||
Number of consecutive trading days | D | 30 | ||||
Stock price trigger per share | $ / shares | $ 159.51 | ||||
Stock price trigger, as a percentage of conversion price | 130.00% | ||||
Number of consecutive business days after the 10 consecutive trading day period | D | 5 | ||||
Number of consecutive trading days before the five consecutive business days | D | 10 | ||||
Maximum threshold stock price, as a percentage of conversion price | 98.00% | ||||
0.625% Convertible Senior Notes (2025 Notes) | Conversion of Notes, Company | |||||
Debt | |||||
Stock price trigger, as a percentage of conversion price | 130.00% | ||||
Number of consecutive business days after the 10 consecutive trading day period | D | 20 | ||||
Number of consecutive trading days before the five consecutive business days | D | 30 | ||||
1.375% Convertible Senior Notes (2022 Notes) | |||||
Debt | |||||
Principal amount | $ 400,000 | ||||
Semi-annual interest rate | 1.375% | ||||
1.375% Convertible Senior Notes (2022 Notes) | Conversion of Notes, Holders | |||||
Debt | |||||
Principal amount of notes for conversion | $ 130,400 | ||||
Cash paid upon conversion | $ 130,400 | ||||
Number of shares issued in connection with conversion | shares | 528,022 | ||||
Debt amount redeemed | $ 10,200 | ||||
1.375% Convertible Senior Notes (2022 Notes) | Conversion of Notes, Holders | Interest expense | |||||
Debt | |||||
Loss on debt extinguishment | $ 3,400 | ||||
1.375% Convertible Senior Notes (2022 Notes) | Conversion of Notes, Company | |||||
Debt | |||||
Remaining principal amount | $ 140,600 |
Debt - Carrying amount of Notes
Debt - Carrying amount of Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2022 | Jan. 02, 2021 | |
0.625% Convertible Senior Notes (2025 Notes) | |||
Equity component | |||
Effective interest rate | 5.336% | ||
Amortization period of debt discount and debt issuance costs | 3 years 6 months | ||
0.625% Convertible Senior Notes (2025 Notes) | ASU 2020-06 | Pro Forma | |||
Equity component | |||
Increase in carrying value of convertible debt | $ 78,500 | ||
1.375% Convertible Senior Notes (2022 Notes) | |||
Equity component | |||
Effective interest rate | 4.75% | ||
Convertible Senior Notes | |||
Liability component | |||
Principal | $ 535,000 | $ 675,567 | |
Unamortized debt discount | (78,519) | (103,953) | |
Unamortized debt issuance costs | (5,882) | (8,189) | |
Net carrying amount | 450,599 | 563,425 | |
Equity component | |||
Net carrying amount | $ 107,928 | $ 108,438 |
Debt - Interest expense (Detail
Debt - Interest expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Interest expense related to the notes | |||
Interest Expense, Total | $ 31,033 | $ 34,142 | $ 20,233 |
Convertible Senior Notes | |||
Interest expense related to the notes | |||
Contractual interest expense | 3,662 | 5,530 | 5,485 |
Amortization of debt discount | 21,112 | 19,375 | 11,717 |
Amortization of debt issuance costs | 1,655 | 2,058 | 1,768 |
Interest Expense, Total | $ 26,429 | $ 26,963 | $ 18,970 |
Debt - Credit Facility (Details
Debt - Credit Facility (Details) $ in Millions | 12 Months Ended |
Jan. 01, 2022USD ($) | |
Credit Facility | Scenario: Company's option to increase borrowing capacity | |
Debt | |
Additional increase in borrowing capacity of the line of credit available at the entity's option | $ 250 |
Additional increase in borrowing capacity based on EBITDA (as a percent) | 100.00% |
Maximum secured leverage ratio | 3.25 |
Credit Facility | Scenario: Credit facility debt covenants | |
Debt | |
Maximum net leverage ratio | 4.25 |
Maximum secured leverage ratio | 3.50 |
Minimum interest coverage ratio | 2.50 |
Revolving Credit Facility | |
Debt | |
Maximum borrowing capacity | $ 400 |
Revolving credit facility, other than swingline loans | Federal Funds | |
Debt | |
Interest rate margin (as a percent) | 0.50% |
Revolving credit facility, other than swingline loans | Eurodollar Rate | |
Debt | |
Interest rate margin (as a percent) | 1.00% |
Revolving credit facility, other than swingline loans | Eurodollar Rate | Minimum | |
Debt | |
Interest rate margin (as a percent) | 1.00% |
Revolving credit facility, other than swingline loans | Eurodollar Rate | Maximum | |
Debt | |
Interest rate margin (as a percent) | 1.75% |
Revolving credit facility, other than swingline loans | Base Rate | Minimum | |
Debt | |
Interest rate margin (as a percent) | 0.00% |
Revolving credit facility, other than swingline loans | Base Rate | Maximum | |
Debt | |
Interest rate margin (as a percent) | 0.75% |
Letter of Credit | |
Debt | |
Maximum borrowing capacity | $ 25 |
Swingline Loans | |
Debt | |
Maximum borrowing capacity | $ 10 |
Leases - Supplemental Lease Inf
Leases - Supplemental Lease Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Leases | |||
Operating lease costs | $ 7,400 | $ 5,600 | $ 5,800 |
Balance Sheet Information | |||
Operating lease right-of-use assets | 27,896 | 27,392 | |
Operating lease liabilities | 29,171 | 29,017 | |
Cash Flow Information | |||
Cash paid for operating lease liabilities | 7,138 | 5,541 | |
Right-of-use assets obtained in exchange for operating lease obligations | $ 6,335 | $ 16,711 | |
Operating Lease Information | |||
Weighted-average remaining lease term | 5 years 10 months 24 days | 6 years 4 months 24 days | |
Weighted-average discount rate | 3.83% | 4.24% |
Leases - Maturities of operatin
Leases - Maturities of operating lease liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Leases | |||
2021 | $ 7,136 | ||
2022 | 6,207 | ||
2023 | 5,188 | ||
2024 | 3,786 | ||
2025 | 2,623 | ||
Thereafter | 7,403 | ||
Total lease payments | 32,343 | ||
Less imputed interest | (3,172) | ||
Total lease liabilities | $ 29,171 | $ 29,017 | |
Operating lease liabilities, Statement of Financial Position | us-gaap:LiabilitiesOtherThanLongtermDebtNoncurrent, Other current liabilities | us-gaap:LiabilitiesOtherThanLongtermDebtNoncurrent, Other current liabilities | |
Lease income from operating leases | $ 4,900 | $ 3,200 | $ 4,000 |
Share Repurchases (Details)
Share Repurchases (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Share Repurchase Programs | |||
Value of shares repurchased and retired | $ 1,150,044 | $ 16,287 | $ 26,716 |
Common Stock | |||
Share Repurchase Programs | |||
Number of shares repurchased and retired | 6,520 | 210 | 301 |
Number of shares repurchased | 6,500 | 200 | 300 |
Value of shares repurchased | $ 1,150,000 | $ 16,300 | $ 26,700 |
Number of shares delivered | 1,700 | ||
Accelerated Share Repurchase | Common Stock | |||
Share Repurchase Programs | |||
Value of shares repurchased and retired | $ 400,000 | ||
Number of shares repurchased | 1,700 | ||
Share Repurchases through Tender Offer | Common Stock | |||
Share Repurchase Programs | |||
Value of shares repurchased and retired | $ 640,700 | ||
Repurchase price per share | $ 160 | ||
Number of shares repurchased | 4,000 | ||
Share Repurchase Program | Common Stock | |||
Share Repurchase Programs | |||
Number of shares repurchased and retired | 800 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Revenues | |||
Revenue from performance obligations that were satisfied in previous reporting periods | $ 12,400 | $ 11,500 | $ 10,300 |
Revenues | 720,860 | 510,928 | 473,785 |
Sales Channel, Distributors | |||
Revenues | |||
Revenues | 584,010 | 416,606 | 361,645 |
Sales Channel, Direct customers | |||
Revenues | |||
Revenues | $ 136,850 | $ 94,322 | $ 112,140 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Incentive Plan (Details) - 2009 Stock Incentive Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Stock-Based Compensation | |||
Number of available shares deducted for each share granted | 1 | ||
Minimum | |||
Stock-Based Compensation | |||
Award vesting period | 3 years | ||
Maximum | |||
Stock-Based Compensation | |||
Award vesting period | 4 years | ||
Selling, general and administrative | |||
Stock-Based Compensation | |||
Expense related to modification of equity awards | $ 7,800 | ||
Full value awards | |||
Stock-Based Compensation | |||
Number of equity awards granted | 600,000 | 700,000 | 700,000 |
MSUs | |||
Stock-Based Compensation | |||
Award vesting period | 3 years | 3 years | 3 years |
Number of equity awards granted | 0 | 82,000 | 93,000 |
Cash consideration based upon achievement of specified levels of market conditions | $ 0 | $ 0 | $ 0 |
PSUs | |||
Stock-Based Compensation | |||
Award vesting period | 3 years | 3 years | 3 years |
Number of equity awards granted | 116,809 | 0 | 0 |
Cash consideration based upon achievement of specified levels of market conditions | $ 0 | $ 0 | $ 0 |
Stock options | |||
Stock-Based Compensation | |||
Stock options granted (in shares) | 0 | 0 | 0 |
Minimum exercise price as percentage of fair market value of shares on the date of grant | 100.00% | 100.00% | 100.00% |
Stock-Based Compensation - 2009
Stock-Based Compensation - 2009 Employee Stock Purchase Plan (Details) - 2009 Employee Stock Purchase Plan - $ / shares | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Stock-Based Compensation | |||
Minimum exercise price as percentage of fair market value of shares on the date of grant | 85.00% | 85.00% | 85.00% |
Term of award | 24 months | 24 months | 24 months |
Shares issued | 146,000 | 177,000 | 208,000 |
Weighted average fair value for purchase rights granted (in dollars per share) | $ 41.59 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value Assumptions (Details) | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
MSUs | |||
Fair value assumptions | |||
Expected volatility (as a percent) | 36.00% | 31.00% | |
Risk-free interest rate % | 1.30% | 2.40% | |
Expected term | 2 years 10 months 24 days | 2 years 10 months 24 days | |
Dividend yield (as a percent) | 0.00% | 0.00% | |
2009 Employee Stock Purchase Plan | |||
Fair value assumptions | |||
Expected volatility (as a percent) | 42.00% | 67.00% | 37.00% |
Risk-free interest rate % | 0.05% | 0.15% | 1.60% |
Expected term | 9 months | 9 months | 9 months |
Dividend yield (as a percent) | 0.00% | 0.00% | 0.00% |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock options activity (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Number of options | ||
Outstanding at the beginning of the year (in shares) | 127 | |
Outstanding at the end of the year (in shares) | 118 | 127 |
Vested and expected to vest at the end of the year (in shares) | 118 | |
Exercisable at the end of the year (in shares) | 118 | |
Weighted-Average Exercise Price | ||
Outstanding at the beginning of the year (in dollars per share) | $ 39.16 | |
Outstanding at the end of the year (in dollars per share) | 38.80 | $ 39.16 |
Vested and expected to vest at the end of the year (in dollars per share) | 38.80 | |
Exercisable at the end of the year (in dollars per share) | $ 38.80 | |
Weighted-Average Remaining Contractual Term (In years) | ||
Outstanding at the end of the year | 4 years 1 month 13 days | 5 years 1 month 9 days |
Vested and expected to vest at the end of the year | 4 years 1 month 13 days | |
Exercisable at the end of the year | 4 years 1 month 13 days | |
Aggregate Intrinsic Value | ||
Outstanding at the end of the year (in dollars) | $ 19,825 | $ 11,232 |
Vested and expected to vest at the end of the year (in dollars) | 19,825 | |
Options exercisable at the end of the year (in dollars) | $ 19,825 |
Stock-Based Compensation - RSAs
Stock-Based Compensation - RSAs and RSUs, PSUs and MSUs activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
RSAs and RSUs | |||
Number of equity awards | |||
Outstanding at the beginning the of year (in shares) | 1,106 | ||
Granted (in shares) | 452 | ||
Vested Earned or issued (in shares) | (502) | ||
Cancelled or forfeited (in shares) | (225) | ||
Outstanding at the end of the year (in shares) | 831 | 1,106 | |
Outstanding at the end of the year and expected to vest (in shares) | 770 | ||
Weighted-Average Grant Date Fair Value | |||
Outstanding at the beginning of the year (in dollars per share) | $ 97.07 | ||
Granted (in dollars per share) | 135.28 | $ 100.27 | $ 89.35 |
Vested Earned or issued (in dollars per share) | 95.04 | ||
Cancelled or forfeited (in dollars per share) | 108.61 | ||
Outstanding at the end of the year (in dollars per share) | 115.72 | $ 97.07 | |
Outstanding at the end of the year and expected to vest (in dollars per share) | $ 115.10 | ||
Weighted-Average Remaining Vesting Term | |||
Outstanding at the end of year | 1 year 1 month 9 days | ||
Outstanding at the end of year and expected to vest | 1 year 1 month 9 days | ||
Aggregate Intrinsic Value | |||
Outstanding at the end of the year (in dollars) | $ 171,476 | ||
Outstanding at the end of the year and expected to vest (in dollars) | $ 159,028 | ||
PSUs and MSUs | |||
Number of equity awards | |||
Outstanding at the beginning the of year (in shares) | 233 | ||
Granted (in shares) | 117 | ||
Vested Earned or issued (in shares) | (37) | ||
Cancelled or forfeited (in shares) | (67) | ||
Outstanding at the end of the year (in shares) | 246 | 233 | |
Outstanding at the end of the year and expected to vest (in shares) | 224 | ||
Weighted-Average Grant Date Fair Value | |||
Outstanding at the beginning of the year (in dollars per share) | $ 79.80 | ||
Granted (in dollars per share) | $ 145.11 | $ 98.58 | 85.79 |
Vested Earned or issued (in dollars per share) | 97.19 | ||
Cancelled or forfeited (in dollars per share) | 89.45 | ||
Outstanding at the end of the year (in dollars per share) | 105.58 | $ 79.80 | |
Outstanding at the end of the year and expected to vest (in dollars per share) | $ 102.01 | ||
Weighted-Average Remaining Vesting Term | |||
Outstanding at the end of year | 1 year 5 months 8 days | ||
Outstanding at the end of year and expected to vest | 1 year 5 months 8 days | ||
Aggregate Intrinsic Value | |||
Outstanding at the end of the year (in dollars) | $ 50,792 | ||
Outstanding at the end of the year and expected to vest (in dollars) | $ 46,297 |
Stock-Based Compensation - Gran
Stock-Based Compensation - Grant Date Weighted Average Fair Value (Details) - $ / shares | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
RSAs and RSUs | |||
Stock-Based Compensation | |||
Equity award, weighted average fair value at grant date | $ 135.28 | $ 100.27 | $ 89.35 |
PSUs and MSUs | |||
Stock-Based Compensation | |||
Equity award, weighted average fair value at grant date | $ 145.11 | $ 98.58 | $ 85.79 |
Stock-Based Compensation - St_3
Stock-Based Compensation - Stock-based payment and stock option values (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Stock-based payment and stock option values | |||
Cash received for the issuance of common stock, net of shares withheld for taxes | $ 14,200 | ||
Payment of taxes withheld for vested stock awards | 22,239 | $ 18,124 | $ 16,295 |
Stock options | |||
Stock-based payment and stock option values | |||
Intrinsic value of stock options exercised | 986 | 558 | |
RSUs | |||
Stock-based payment and stock option values | |||
Intrinsic value of stock-based payments that vested | 76,654 | 48,534 | 57,693 |
Grant date fair value of stock-based payments that vested | 47,726 | 37,477 | 40,434 |
PSUs and MSUs | |||
Stock-based payment and stock option values | |||
Intrinsic value of stock-based payments that vested | 5,231 | 8,545 | 3,649 |
Grant date fair value of stock-based payments that vested | $ 3,562 | $ 6,302 | $ 1,461 |
Stock-Based Compensation - St_4
Stock-Based Compensation - Stock-based compensation costs (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Stock-Based Compensation | |||
Stock-based compensation cost | $ 56,842 | $ 49,454 | $ 44,334 |
Income tax benefit | (954) | (3,694) | (2,584) |
Share based compensation costs after tax | $ 53,881 | 56,475 | 52,324 |
Reserved shares of common stock for future issuance | 4,200 | ||
Continuing operations | |||
Stock-Based Compensation | |||
Share based compensation costs after tax | $ 55,888 | 45,760 | 41,750 |
Discontinued operations | |||
Stock-Based Compensation | |||
Share based compensation costs after tax | (2,007) | 10,715 | 10,574 |
Cost of revenues | |||
Stock-Based Compensation | |||
Stock-based compensation cost | 964 | 970 | 790 |
Research and development | |||
Stock-Based Compensation | |||
Stock-based compensation cost | 24,986 | 23,359 | 19,996 |
Selling, general and administrative | |||
Stock-Based Compensation | |||
Stock-based compensation cost | 30,892 | $ 25,125 | $ 23,548 |
2009 Stock Incentive Plan | |||
Stock-Based Compensation | |||
Total unrecognized compensation costs related to awards | $ 74,200 | ||
Weighted-average period of recognition of unrecognized compensation costs | 2 years 4 months 24 days | ||
Reserved shares of common stock for future issuance | 2,946 | ||
2009 Employee Stock Purchase Plan | |||
Stock-Based Compensation | |||
Reserved shares of common stock for future issuance | 1,254 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Employee Benefit Plan | |||
Contributions made to the 401(k) Plan | $ 3.5 | $ 4.2 | $ 3.9 |
Income Taxes - Income before in
Income Taxes - Income before income taxes and provision (benefit) for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Income before income taxes | |||
Domestic | $ (29,112) | $ (58,104) | $ (38,448) |
Foreign | (29,063) | (74,099) | (57,563) |
Loss from continuing operations before income taxes | (58,175) | (132,203) | (96,011) |
Current: | |||
Domestic | (12,630) | (9,740) | (20,962) |
Foreign | 9,447 | 1,656 | 4,940 |
Total Current | (3,183) | (8,084) | (16,022) |
Deferred: | |||
Domestic | 17,873 | (4,031) | 33,624 |
Foreign | (1,263) | (2,487) | (10,618) |
Total Deferred | 16,610 | (6,518) | 23,006 |
Provision (benefit) for income taxes | $ 13,427 | $ (14,602) | $ 6,984 |
Income Taxes - Tax rate reconci
Income Taxes - Tax rate reconciliation (Details) | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Reconciliation of federal statutory tax rate to effective tax rate | |||
Federal statutory rate (as a percent) | 21.00% | 21.00% | 21.00% |
Foreign tax rate benefit (as a percent) | (12.50%) | (11.10%) | (9.70%) |
Research and development tax credits (as a percent) | 0.10% | 4.20% | 5.30% |
GILTI and Subpart F Income | (1.80%) | 0.20% | 0.20% |
(Nondeductible) nontaxable foreign items | (4.90%) | 0.10% | (2.50%) |
Nondeductible officer compensation | (7.80%) | (1.70%) | (2.00%) |
Change in cost-sharing treatment of stock-based compensation | (19.20%) | ||
Excess tax benefit of stock-based compensation | (2.80%) | (0.40%) | (0.80%) |
Other tax effects of equity compensation | 0.40% | 0.10% | 0.70% |
Change in prior period valuation allowance | (8.00%) | (0.30%) | (0.70%) |
(Nondeductible) nontaxable domestic items | (2.10%) | (1.60%) | (1.60%) |
Net operating loss not benefited | (9.50%) | ||
Other (as a percent) | (0.80%) | (0.30%) | 0.40% |
Effective Tax Rate (as a percent) | (23.10%) | 11.00% | (7.30%) |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Taxes (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 5,803 | $ 6,839 |
Tax credit carryforwards | 12,247 | 22,421 |
Intangible assets | 8,687 | 9,802 |
Deferred income on shipments to distributors | 4,588 | 3,099 |
Leases | 6,033 | 6,335 |
Accrued liabilities | 6,078 | 6,320 |
Other | 4,180 | 5,513 |
Deferred tax assets | 47,616 | 60,329 |
Less: Valuation allowance | (9,529) | (5,311) |
Deferred tax assets, net | 38,087 | 55,018 |
Deferred tax liabilities: | ||
Intangible assets | 14,479 | 16,758 |
Fixed assets | 8,692 | 8,473 |
Leases | 5,664 | 5,999 |
Debt | 16,399 | 21,674 |
Unrealized gain on equity method investment | 3,342 | 587 |
Prepaid expenses and other | 6,049 | 4,332 |
Deferred tax liabilities | 54,625 | 57,823 |
Net deferred tax liabilities | $ (16,538) | $ (2,805) |
Income Taxes - Valuation allowa
Income Taxes - Valuation allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Changes in the valuation allowance for deferred tax assets | |||
Balance at Beginning of Period | $ 5,311 | $ 4,486 | $ 4,975 |
Additions Charged to Expenses | 5,370 | 847 | 1,044 |
Deductions | (1,152) | (22) | (1,533) |
Balance at End of Period | 9,529 | $ 5,311 | $ 4,486 |
Undistributed earnings of foreign subsidiaries | 107,800 | ||
Provision for foreign withholding tax and state income taxes | $ 0 |
Income Taxes - Unrecognized tax
Income Taxes - Unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Summary of the activity related to gross unrecognized tax benefits | |||
Beginning balance | $ 2,853 | $ 2,276 | $ 2,036 |
Additions based on tax positions related to current year | 830 | 577 | 436 |
Reductions based on tax positions related to prior years | (6) | (196) | |
Ending balance | 3,677 | 2,853 | 2,276 |
Unrecognized tax benefits, other disclosures | |||
Gross unrecognized tax benefits, inclusive of interest | 3,900 | 3,000 | 2,400 |
Gross unrecognized tax benefits which would affect the effective tax rate if recognized | $ 3,900 | $ 2,100 | $ 1,900 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) kr in Millions, $ in Millions | Dec. 22, 2017 | Jan. 01, 2022USD ($) | Jan. 01, 2022NOK (kr) |
Income Taxes | |||
Period for payment of transition tax | 8 years | ||
Total transition tax obligation | $ 21.4 | ||
Reasonably possible amount of decrease in gross unrecognized tax benefits over the next 12 months | 0.5 | ||
Infrastructure and automotive business | |||
Income Taxes | |||
Gain from the divestiture of business | 346.9 | ||
Tax benefit associated with discontinued operations | 7.2 | ||
Other current liabilities | |||
Income Taxes | |||
Income taxes payable | 74.9 | ||
Transition tax obligation, current | 2.4 | ||
Other non-current liabilities | |||
Income Taxes | |||
Transition tax obligation, non-current | 19 | ||
Norwegian Tax Administration | 2013 | |||
Income Taxes | |||
Estimate of additional income tax expense | 16 | kr 141.3 | |
Federal | |||
Income Taxes | |||
Operating Loss Carryforwards | 18.4 | ||
Federal | Research and development tax credit | |||
Income Taxes | |||
Tax credit carryforwards | 1.8 | ||
State | |||
Income Taxes | |||
Operating Loss Carryforwards | 30.6 | ||
State | Tentative minimum tax credit | |||
Income Taxes | |||
Tax credit carryforwards | 0.5 | ||
State | Research and development tax credit | |||
Income Taxes | |||
Tax credit carryforwards | $ 11.9 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022USD ($)segment | Jan. 02, 2021USD ($) | Dec. 28, 2019USD ($) | |
Segment Information | |||
Number of operating segments | segment | 1 | ||
Revenues | $ 720,860 | $ 510,928 | $ 473,785 |
Property and equipment, net | 146,516 | 135,803 | |
United States | |||
Segment Information | |||
Revenues | 97,471 | 59,458 | 63,404 |
Property and equipment, net | 121,990 | 125,310 | |
China | |||
Segment Information | |||
Revenues | 311,513 | 232,772 | 203,468 |
Rest of world | |||
Segment Information | |||
Revenues | 311,876 | 218,698 | $ 206,913 |
Property and equipment, net | $ 24,526 | $ 10,493 |