Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Jan. 02, 2015 | Feb. 09, 2015 | Jul. 04, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 2-Jan-15 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ISIL | ||
Entity Registrant Name | INTERSIL CORP/DE | ||
Entity Central Index Key | 1096325 | ||
Current Fiscal Year End Date | -1 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 130,506,137 | ||
Entity Public Float | $2 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Consolidated Statements Of Operations [Abstract] | |||
Revenue | $562,555 | $575,195 | $607,864 |
Cost of revenue | 235,800 | 258,588 | 277,698 |
Gross profit | 326,755 | 316,607 | 330,166 |
Operating costs and expenses: | |||
Research and development | 125,851 | 130,541 | 166,884 |
Selling, general and administrative | 99,926 | 113,333 | 134,314 |
Amortization of purchased intangibles | 22,241 | 24,579 | 29,185 |
Restructuring and related costs | 28,694 | 10,490 | |
Income from IP agreements | -14,412 | ||
Provision for export compliance settlement | 4,000 | 6,000 | |
Operating income | 74,737 | 13,460 | 3,705 |
Interest expense and other | -1,742 | -1,901 | -12,291 |
Gain on investments | 1,538 | 2,318 | 920 |
Income (loss) before income taxes | 74,533 | 13,877 | -7,666 |
Income tax expense | 19,721 | 11,022 | 29,983 |
Net income (loss) | $54,812 | $2,855 | ($37,649) |
Earnings (loss) per share: | |||
Basic | $0.42 | $0.02 | ($0.30) |
Diluted | $0.41 | $0.02 | ($0.30) |
Cash dividends declared per common share | $0.48 | $0.48 | $0.48 |
Weighted average common shares outstanding | |||
Basic | 129,149 | 127,151 | 127,032 |
Diluted | 132,657 | 127,998 | 127,032 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | |||
Net income (loss) | $54,812 | $2,855 | ($37,649) |
Realized losses on interest rate swaps & available-for-sale investments, reclassified to net income (loss) | 3,450 | ||
Tax effect | -1,294 | ||
Currency translation adjustments | -1,791 | -512 | 225 |
Comprehensive income (loss) | $53,021 | $2,343 | ($35,268) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jan. 02, 2015 | Jan. 03, 2014 |
In Thousands, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | $211,216 | $194,787 |
Trade receivables, net of allowances ($13,218 as of January 2, 2015 and $14,274 as of January 3, 2014) | 55,585 | 49,466 |
Inventories | 73,770 | 62,408 |
Prepaid expenses and other current assets | 9,779 | 9,752 |
Income taxes receivable | 1,162 | 1,091 |
Deferred income taxes assets | 20,433 | 22,328 |
Total Current Assets | 371,945 | 339,832 |
Non-current Assets | ||
Property, plant & equipment, net of accumulated depreciation ($260,403 as of January 2, 2015 and $246,480 as of January 3, 2014) | 72,272 | 81,867 |
Purchased intangibles, net of accumulated amortization ($99,500 as of January 2, 2015 and $97,939 as of January 3, 2014) | 34,400 | 56,641 |
Goodwill | 565,424 | 565,424 |
Deferred income tax assets | 39,334 | 73,008 |
Other non-current assets | 70,885 | 74,624 |
Total Non-current Assets | 782,315 | 851,564 |
Total Assets | 1,154,260 | 1,191,396 |
Current Liabilities | ||
Trade payables | 26,246 | 26,248 |
Accrued compensation | 40,854 | 42,014 |
Deferred income | 11,631 | 11,936 |
Other accrued expenses and liabilities | 23,993 | 35,103 |
Income taxes payable | 2,790 | 14,588 |
Total Current Liabilities | 105,514 | 129,889 |
Non-current Liabilities | ||
Income taxes payable | 59,745 | 90,102 |
Other non-current liabilities | 7,453 | 13,603 |
Total Non-current Liabilities | 67,198 | 103,705 |
Shareholders' Equity: | ||
Preferred stock, $0.01 par value, 2 million shares authorized; no shares issued or outstanding | ||
Class A common stock, $0.01 par value, voting; 600 million shares authorized; 130,216,901 shares issued and outstanding as of January 2, 2015 and 127,714,810 shares issued and outstanding as of January 3, 2014 | 1,302 | 1,277 |
Additional paid-in capital | 1,591,432 | 1,620,732 |
Accumulated deficit | -612,123 | -666,935 |
Accumulated other comprehensive income | 937 | 2,728 |
Total Shareholders' Equity | 981,548 | 957,802 |
Total Liabilities and Shareholders' Equity | $1,154,260 | $1,191,396 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jan. 02, 2015 | Jan. 03, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets [Abstract] | ||
Trade receivables, allowances | $13,218 | $14,274 |
Property, plant and equipment, accumulated depreciation | 260,403 | 246,480 |
Purchased intangibles, accumulated amortization | $99,500 | $97,939 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A common stock, par value | $0.01 | $0.01 |
Class A common stock, shares authorized | 600,000,000 | 600,000,000 |
Class A common stock, shares issued | 130,216,901 | 127,714,810 |
Class A common stock, shares outstanding | 130,216,901 | 127,714,810 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Common Stock Class A [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
In Thousands | |||||
Balance as of at Dec. 30, 2011 | $1,265 | $1,710,705 | ($632,141) | $859 | $1,080,688 |
Net income (loss) | -37,649 | -37,649 | |||
Dividends paid, $0.48 per common share | -60,955 | -60,955 | |||
Dividends accrued to Award holders prior to vesting | -501 | -501 | |||
Equity-based compensation expense | 24,607 | 24,607 | |||
Shares issued under share-based award plans | 17 | 3,734 | 3,751 | ||
Tax impact of shares issued under share-based award plans | -2,452 | -2,452 | |||
Foreign currency translation | 225 | 225 | |||
Realized losses on interest rate swaps, net of tax, reclassified | 2,156 | 2,156 | |||
Shares repurchased and retired | -19 | -15,243 | -15,262 | ||
Balance as of at Dec. 28, 2012 | 1,263 | 1,659,895 | -669,790 | 3,240 | 994,608 |
Net income (loss) | 2,855 | 2,855 | |||
Dividends paid, $0.48 per common share | -61,025 | -61,025 | |||
Dividends accrued to Award holders prior to vesting | -1,094 | -1,094 | |||
Equity-based compensation expense | 19,091 | 19,091 | |||
Shares issued under share-based award plans | 14 | 4,316 | 4,330 | ||
Tax impact of shares issued under share-based award plans | -451 | -451 | |||
Foreign currency translation | -512 | -512 | |||
Balance as of at Jan. 03, 2014 | 1,277 | 1,620,732 | -666,935 | 2,728 | 957,802 |
Net income (loss) | 54,812 | 54,812 | |||
Dividends paid, $0.48 per common share | -61,960 | -61,960 | |||
Dividends accrued to Award holders prior to vesting | -1,798 | -1,798 | |||
Equity-based compensation expense | 18,688 | 18,688 | |||
Shares issued under share-based award plans | 25 | 15,533 | 15,558 | ||
Tax impact of shares issued under share-based award plans | 237 | 237 | |||
Foreign currency translation | -1,791 | -1,791 | |||
Balance as of at Jan. 02, 2015 | $1,302 | $1,591,432 | ($612,123) | $937 | $981,548 |
Recovered_Sheet1
Consolidated Statements Of Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | |
Consolidated Statements Of Shareholders' Equity [Abstract] | |||
Dividends paid per share | $0.48 | $0.48 | $0.48 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Operating Activities | |||
Net income (loss) | $54,812 | $2,855 | ($37,649) |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||
Depreciation and amortization | 41,664 | 43,529 | 48,652 |
Equity-based compensation | 18,688 | 19,091 | 24,607 |
Excess tax benefit received on exercise of stock options | -1,158 | -474 | -2,455 |
Loss / (gain) on disposal of property and equipment, net | 71 | 102 | -67 |
Gain on investments | -1,075 | -866 | |
Non-cash portion of restructuring charges | 7,184 | ||
Deferred income taxes | 35,569 | 10,196 | 14,003 |
Changes in operating assets and liabilities: | |||
Trade receivables | -6,118 | 5,218 | 10,190 |
Inventories | -11,363 | 12,461 | 23,021 |
Prepaid expenses and other current assets | -28 | 625 | 2,491 |
Trade payables and accrued liabilities | -13,032 | 17,355 | -6,752 |
Income taxes | -42,226 | -9,417 | -41,327 |
Other, net | -2,415 | -1,145 | 857 |
Net cash flows from operating activities | 73,389 | 106,714 | 35,571 |
Investing Activities | |||
Proceeds from short-term investments | 4,750 | 26,500 | |
Proceeds from long-term investments | 1,075 | 866 | |
Proceeds from sales of property, plant and equipment | 320 | ||
Purchase of property, plant and equipment | -9,857 | -18,581 | -12,540 |
Net cash flows used in investing activities | -8,782 | -12,965 | 14,280 |
Financing Activities | |||
Proceeds from exercise of equity-based awards | 15,558 | 4,330 | 3,751 |
Excess tax benefit received from exercise of equity-based awards | 1,381 | 23 | 3 |
Repayments of long-term debt | -200,000 | ||
Payment of credit facility fees | -855 | ||
Dividends paid | -62,910 | -61,920 | -62,057 |
Repurchase of common stock | -15,262 | ||
Net cash flows from financing activities | -45,971 | -57,567 | -274,420 |
Effect of exchange rates on cash and cash equivalents | -2,207 | -205 | -314 |
Net change in cash and cash equivalents | 16,429 | 35,977 | -224,883 |
Cash and cash equivalents at the beginning of the period | 194,787 | 158,810 | 383,693 |
Cash and cash equivalents at the end of the period | $211,216 | $194,787 | $158,810 |
Organization_And_Basis_Of_Pres
Organization And Basis Of Presentation | 12 Months Ended |
Jan. 02, 2015 | |
Organization And Basis Of Presentation [Abstract] | |
Organization And Basis Of Presentation | NOTE 1—ORGANIZATION AND BASIS OF PRESENTATION |
Intersil Corporation (“Intersil,” which may also be referred to as “we,” “us” or “our”) is a leading provider of innovative power management and precision analog solutions. Our products address some of the largest markets within the industrial and infrastructure, computing and high-end consumer markets. | |
Basis of Presentation | |
We utilize a 52/53 week fiscal year, ending on the nearest Friday to December 31. Fiscal year 2013 was a 53 week period with an extra week included in our second quarter. Quarterly or annual periods vary from exact calendar quarters or years. | |
The consolidated financial statements include the accounts of Intersil and its subsidiaries. All intercompany accounts and transactions have been eliminated. | |
Reclassifications | |
Certain prior year amounts have been reclassified to conform to current year presentation. | |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |||||
Jan. 02, 2015 | ||||||
Significant Accounting Policies [Abstract] | ||||||
Significant Accounting Policies | NOTE 2—SIGNIFICANT ACCOUNTING POLICIES | |||||
Cash and Cash Equivalents—Cash equivalents consist of highly liquid investments with original maturities of three months or less at the time of purchase. Investments with original maturities over three months are classified as short-term investments. We determine the appropriate classification of our cash and cash equivalents at the time of purchase. | ||||||
Short-term Investments—Our short-term investments are considered available-for-sale. We record the unrealized gains and losses, net of tax, in shareholders’ equity as a component of accumulated other comprehensive income (“OCI”). We determine the cost of securities sold based on the specific identification method. Realized gains or losses are recorded in gains / loss on sale of investments and impairment losses that are determined to be other-than-temporary are recorded in other-than-temporary impairment losses in our consolidated statement of operations. | ||||||
Non-Marketable Equity Securities—Non-marketable equity securities are accounted for at historical cost or, if we have significant influence over the investee, using the equity method of accounting. These investments are evaluated for impairment quarterly. Such analysis requires significant judgment to identify events or circumstances that would likely have a significant other than temporary adverse effect on the carrying value of the investment. | ||||||
Deferred Compensation Plan Assets—We have made available a non-qualified deferred compensation plan for certain eligible employees. Participants can direct the investment of their deferred compensation plan accounts from a portfolio of funds from which earnings are measured. Although participants direct the investment of these funds, they are classified as trading securities and are included in other non-current assets because they remain our assets until they are actually paid out to the participants. We maintain a portfolio of $11.1 million in mutual fund investments and corporate-owned life insurance under the plan. Changes in the fair value of the asset are recorded as a gain (loss) on deferred compensation investments and changes in the fair value of the liability are recorded as a component of compensation expense. In general, the compensation expense (benefit) is substantially offset by the gains and losses on the investment. During fiscal 2014, 2013 and 2012, we recorded gains on deferred compensation investments of $0.5 million, $1.5 million, and $0.9 million, respectively and compensation expense of $0.7 million, $1.7 million, and $1.1 million, respectively. | ||||||
Fair Value Measurements—In order to determine the fair value of our assets and liabilities, we utilize three levels of inputs, focusing on the most observable inputs when available. Observable inputs are generally developed based on market data obtained from independent sources, whereas unobservable inputs reflect our assumptions about what market participants would use to value the asset or liability, based on the best information available in the circumstances. The three levels of inputs are as follows: | ||||||
Level 1—Quoted prices in active markets which are unadjusted and accessible as of the measurement date for identical, unrestricted assets or liabilities; | ||||||
Level 2—Quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly; | ||||||
Level 3—Prices or valuations that require inputs that are unobservable and significant to the overall fair value measurement. | ||||||
If we use more than one level of input that significantly affects fair value, we include the fair value under the lowest input level used. | ||||||
Derivatives— We record the fair value of our derivative financial instruments in the consolidated financial statements in other current assets or other accrued expenses, regardless of the purpose or intent for holding the derivative contract. We account for these instruments based on whether they meet the criteria for designation as hedging transactions, either as cash flow or fair value hedges. A hedge of the exposure to variability in the cash flows of an asset or a liability, or of a forecasted transaction, is referred to as a cash flow hedge. A hedge of the exposure to changes in fair value of an asset or a liability, or of an unrecognized firm commitment, is referred to as a fair value hedge. The criteria for designating a derivative as a hedge include the instrument’s effectiveness in risk reduction and, in most cases, a one-to-one matching of the derivative instrument to its underlying transaction. | ||||||
Changes in the fair value of derivative instruments designated as a cash flow hedge are recorded in OCI to the extent the derivative instrument is effective. Changes in the fair values of derivatives not designated for hedge accounting and any ineffectiveness measured in designated hedge transactions are reported in earnings as they occur. Gains and losses on derivatives not designated as hedges are recognized currently in earnings and generally offset changes in the values of related assets, liabilities or debt. Hedges on forecasted foreign cash flow commitments do not qualify for deferral, as the hedges are not related to a specific, identifiable transaction. Therefore, gains and losses on changes in the fair market value of the foreign exchange contracts are recognized currently in cost of revenue. | ||||||
The changes in the fair value of our interest rate swaps are recorded in OCI to the extent that the swap is effective. Any ineffectiveness will be recorded in income. We currently have no outstanding swap contracts in place. | ||||||
Trade Receivables, net —Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Accounts receivable are reduced by an allowance for doubtful accounts, which reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on the aging of our accounts receivable, historical experience, known troubled accounts, management judgment and other currently available evidence. When items are deemed uncollectible, we charge them against the allowance for collection losses. We provide for estimated losses from collection problems in the current period, as a component of revenue. We utilize credit limits, ongoing evaluation and trade receivable monitoring procedures to reduce the risk of credit loss. Credit is extended based on an evaluation of the customer’s financial condition and collateral is generally not required. Accounts receivable are also recorded net of sales returns and distributor allowances. These amounts are recorded when it is both probable and estimable that discounts will be granted or products will be returned. - Please see “Revenue Recognition” for further details. | ||||||
Inventories—Inventories are carried at the lower of standard cost (which approximates actual cost, determined by the first-in-first-out method) or market. The carrying value of our inventories is reduced for any difference between cost and estimated market value of inventories that is determined to be obsolete or unmarketable, based upon assumptions about future demand and market conditions. Inventory adjustments establish a new cost basis and are considered permanent even if circumstances later suggest that increased carrying amounts are recoverable. If demand is higher than expected, we may sell inventory that had previously been written down. | ||||||
Property, Plant and Equipment—Buildings, machinery and equipment are carried at cost, less accumulated depreciation and impairment charges, if any. We expense repairs and maintenance costs that do not extend an asset’s useful life or increase an asset’s capacity. Depreciation is computed using the straight-line method over the estimated useful life of the asset. The estimated useful lives of buildings, which include leasehold improvements, range between 10 and 30 years, or over the lease period, whichever is shorter. The estimated useful lives of machinery and equipment range between three and eight years. We lease certain facilities under operating leases and record the effective rental expense in the appropriate period on the straight-line method. | ||||||
Asset Impairment—We recognize impairment losses on long-lived assets when indicators of impairment exist and our estimate of undiscounted cash flows generated by those assets is less than the assets’ carrying amounts. The impairment loss is measured by comparing the fair value of the asset to its carrying amount. Fair value is estimated based on discounted future cash flows or market value, if available. Assets that qualify as held for sale are stated at the lower of the assets’ carrying amount or fair value and depreciation is no longer recognized. | ||||||
Goodwill— Goodwill is an indefinite-lived intangible asset that is not amortized, but instead is tested for impairment annually or more frequently if indicators of impairment exist. We perform an annual assessment of goodwill in the fourth quarter of each fiscal year, or more frequently if indications of potential impairment exist. We consider various qualitative factors, including macroeconomic and industry conditions, financial performance of the company, changes in the stock price of the company to determine whether it is necessary to perform a quantitative test for goodwill impairment. If we believe, as a result of our qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required. Under the quantitative test, goodwill is tested under a two-step method for impairment at a level of reporting referred to as a reporting unit. Step one of the quantitative analysis involves identifying potential impairment by comparing the fair value of each reporting unit with its carrying amount and, if applicable, step two involves estimation of the impairment loss, which is the amount of excess of carrying amount of goodwill over the implied fair value of the reporting unit goodwill. In fiscal 2014, based on the qualitative assessment, we concluded that a quantitative two-step assessment was not required to be performed. In fiscal 2013, we performed a quantitative two-step assessment and concluded that the carrying value of goodwill at the date of the assessment had not been impaired. | ||||||
Purchased Intangibles—Purchased intangible assets with finite lives are carried at cost less accumulated amortization. Amortization is computed on a straight-line basis over their estimated useful lives. Purchased intangibles include intangible assets subject to amortization, which are our developed technologies, backlog, customer relationships and intellectual property. We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. We measure recoverability of long-lived assets by comparing the carrying amount of the asset group to the future undiscounted net cash flows expected to be generated by those assets. If such assets are considered to be impaired, we recognize an impairment charge for the amount by which the carrying amounts of the assets exceeds the fair value of the assets. | ||||||
Income Taxes—We follow the liability method of accounting for income taxes. Current income taxes payable and receivable and deferred income taxes resulting from temporary differences between the financial statements and the tax basis of assets and liabilities are separately classified on the consolidated balance sheets. | ||||||
Uncertain tax positions and unrecognized tax benefits (“UTBs”)—We record our tax expense based on various probabilities of sustaining certain tax positions, using a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. We record our UTBs as a component of non-current income taxes payable, unless payment is expected within one year. | ||||||
Applicable guidance requires us to record our tax expense based on various estimates of probabilities of sustaining certain tax positions. As a result of this and other factors, our estimate of tax expense could change. | ||||||
We classify accrued interest and penalties on income tax matters in the liabilities section of the balance sheet as non-current income taxes payable. When the interest and penalty portions of such uncertain tax positions are adjusted, it is classified as income tax expense. All of the uncertain tax positions and UTBs as of January 2, 2015 would impact our effective tax rate should they be recognized. | ||||||
In the ordinary course of business, the ultimate tax outcome of many transactions and calculations is uncertain, as the calculation of tax liabilities involves the application of complex tax laws in the United States, Malaysia and other jurisdictions. We recognize liabilities for additional taxes that may be due on tax audit issues based on an estimate of the ultimate resolution of those issues. Although we believe the estimates are reasonable, the final outcome may be different than amounts we estimate. Such determinations could have a material impact on the income tax expense (benefit), effective tax rate and operating results in the period they occur. In addition, the effective tax rate reflected in our forward-looking statements is based on current enacted tax laws in the jurisdictions in which we do business. Significant changes in enacted tax law could materially impact our estimates. | ||||||
Restructuring— We record restructuring charges when severance obligations are probable, reasonably estimable and the vested right attributable to the employees’ service is already rendered. We recognize a liability for costs associated with exit or disposal activities including costs associated with leases, when a liability is incurred rather than when an exit or disposal plan is approved. We continually evaluate the adequacy of the remaining liabilities under our restructuring initiatives. Although we believe that these estimates accurately reflect the costs of our restructuring plans, actual results may differ, thereby requiring us to record additional provisions or reverse a portion of such provisions. | ||||||
Revenue Recognition—Revenue is generally recognized when a product is shipped, provided that persuasive evidence of a sales arrangement exists, the price is fixed or determinable, title and risk has transferred, collection of resulting receivables is reasonably assured, there are no customer acceptance requirements and there are no remaining significant obligations. Customers typically provide a customer request date (“CRD”) which indicates the preferred date for receipt of the ordered products. Based on estimated transit time and other logistics, we may deliver products to the carrier in advance of the CRD and recognize revenue from the sale of such products at the time of shipment. We defer revenue recognition when the shipment occurs more than 10 days in advance of the CRD. | ||||||
Shipments to distributors are made under agreements which provide for certain pricing adjustments (referred to as “ship and debit”) and limited product return privileges, under a stock rotation provision. The distributor may also receive additional price protection on a percentage of unsold inventories they hold. Accordingly, we make estimates of price adjustments based upon inventory reported by distributors as of the balance sheet date and record this as a distributor allowance. We rely on historical distributor allowances to estimate these adjustments. Distributors may also receive allowances for certain parts returned under a stock rotation provision of the distributor agreement. We estimate the stock rotation provision based on the percentage of sales made to distributors and historical returns. | ||||||
For certain distributors, we defer recognition until the distributors resell the products to their end customer (“sell-through distributor”). Revenue at published list price and cost of revenue to sell-through distributors are deferred until either the product is resold by the distributor or, in certain cases, return privileges terminate, at which time revenue and cost of revenue are recorded in the consolidated statement of operations. The final price is also subject to ship and debit credits, reducing the final amount recorded in revenue at resale. | ||||||
The following table summarizes the deferred income balance, primarily consisting of sell-through distributors (in thousands): | ||||||
As of January 2, 2015 | As of January 3, 2014 | |||||
Deferred revenue at published list price | $ | 14,546 | $ | 15,075 | ||
Deferred cost of revenue | $ | -2,915 | $ | -3,139 | ||
Deferred income | $ | 11,631 | $ | 11,936 | ||
Distributors provide us periodic data regarding the product, price, quantity, and end customer when products are resold as well as the quantities of our products they still have in stock. We must use estimates and apply judgment to reconcile distributors' reported inventories to their activities. Any error in our judgment could lead to inaccurate reporting of our revenue, cost of revenue, trade receivables, deferred income, and net income. | ||||||
Warranty—We provide for the estimated cost of product warranties at the time revenue is recognized. While we engage in extensive product quality programs and processes, including actively monitoring and evaluating the quality of our suppliers, the estimated warranty obligation is affected by ongoing product failure rates and material usage costs incurred in correcting a product failure. Actual product failure rates or material usage costs that differ from estimates result in revisions to the estimated warranty liability. We warrant for a limited period of time that our products will be free from defects in material workmanship and possess the electrical characteristics to which we have committed. We estimate warranty allowances based on historical warranty experience. Historically, warranty expenses were not material to our consolidated financial statements. | ||||||
Research and Development—Research and development costs consist of the cost of designing, developing and testing new or significantly enhanced products and are expensed as incurred. | ||||||
Advertising Expense—Advertising costs are expensed in the period incurred. Advertising expense was $4.2 million, $3.4 million, and $6.3 million in 2014, 2013 and 2012, respectively. | ||||||
Equity-based Compensation—Our equity-based compensation plans allow several forms of equity compensation including stock options (“Options”), restricted and deferred stock awards (“Awards”) and employee stock purchase plans (“ESPPs”). The 2008 Equity Compensation Plan (“2008 Plan”) includes several available forms of stock compensation of which only Options and Awards have been granted to date. Awards issued consist of deferred stock units and restricted stock units, which may differ in regard to the timing of the related prospective taxable event to the recipient. | ||||||
Additionally, we have an ESPP Plan (“2000 Plan”) whereby eligible employees can purchase shares of Intersil’s common stock through payroll deductions at a price not less than 85% of the market value of the stock on specified dates, with no look-back provision. | ||||||
Our plans allow employees an option to have awards withheld as a means of meeting minimum statutory tax withholding requirements. For the majority of awards granted, the number of shares issued on the date the awards vest is net of the minimum statutory withholding requirements that we pay in cash to the appropriate taxing authorities on behalf of our employees. In our consolidated financial statements, we treat shares withheld for tax purposes on behalf of our employees in connection with the vesting of awards as common stock repurchases because they reduce the number of shares that would have been issued upon vesting. Withheld shares are cancelled immediately and are not considered outstanding. | ||||||
Equity-based compensation cost is measured at the grant date, based on the fair value of the awards ultimately expected to vest, and is recognized as an expense, on a straight-line basis, over the requisite service period. We use a lattice method of valuation for estimating the grant date fair value of awards that include market-based vesting conditions. The compensation cost is amortized straight-line over the requisite service period. Calculating fair value requires us to estimate certain key assumptions in the valuation model, including expected stock price volatility, the risk-free interest rate in the market, expected life of the award, and annualized dividend yield. Volatility is one of the most significant determinants of fair value. We estimate our volatility using the actual historic volatility of our stock price. In case of awards that include market-based vesting conditions, our estimate for volatility includes actual historical volatility of stock prices of certain peer companies. We estimate our expected risk-free interest rate by using the zero-coupon U.S. Treasury rate at the time of the grant related to the expected life of the grant. Expected forfeitures must be estimated to offset the compensation cost expected to be recorded in the financial statements. We estimate forfeitures based on historical information about turnover for each appropriate employee level. We estimate the annualized dividend yield by dividing the current annualized dividend by the closing stock price on the date of grant. | ||||||
Most options vest 25% in the first year and quarterly thereafter for three or four years and generally have seven year contract lives. For Awards, the expected life for amortization of the grant date fair value is the vesting term, generally three years in the case of deferred stock units and four years in the case of restricted stock units. We issue new shares of common stock upon the exercise of Options. | ||||||
Grants with only a performance condition requirement are evaluated periodically for the estimated number of shares that might be issued when fully vested. The fair value measurement and its effect on income is then adjusted as a result of these periodic evaluations. If our estimate of the number of shares expected to be earned (vested) changes, we will be required to adjust the amount of equity-based compensation recognized for the service provided to the date of the change in estimate, on a cumulative basis, to reflect the higher or lower number of shares expected to vest. Such adjustments could materially increase or decrease the amount of equity-based compensation recognized in any period, particularly the period of the change in the estimate, and in aggregate as compared to the initial fair value measurement. Therefore, the use of performance-based forms of equity-based compensation can cause more volatility in our net income in various periods and in aggregate. We do not currently have any grants that include only a performance condition requirement. | ||||||
Loss Contingencies—We estimate and accrue loss contingencies at the point that the losses become probable. For litigation, our practice is to include an estimate of legal costs for defense. | ||||||
Retirement Benefits—We sponsor a 401(K) savings and investment plan that allows eligible U.S employees to participate in making pre-tax contributions to the 401(K). We match the employee contributions on a dollar-for-dollar basis up to a certain predetermined percentage. Employees fully vest in the matching contributions after five years of service. We made matching contributions of $4.5 million, $5.4 million, and $6.2 million during fiscal years 2014, 2013, and 2012 respectively. | ||||||
We have voluntary defined contribution plans in various non-U.S. locations. Further, we maintain a limited number of defined benefit plans for certain non-U.S. locations. Total costs under these plans were $0.8 million, $3.6 million, and $1.3 million during fiscal years 2014, 2013, and 2012 respectively. Accrued liabilities relating to these unfunded plans were $6.8 million and $7.5 million as of January 2, 2015 and January 3, 2014, respectively. | ||||||
Foreign Currency Translation— For subsidiaries in which the functional currency is the local currency, gains and losses resulting from translation of foreign currency financial statements into U.S. dollars are recorded as a component of accumulated other comprehensive income. Cumulative translation adjustments in accumulated OCI were $0.9 million, $2.7 million, and $3.2 million as of January 2, 2015, January 3, 2014, and December 28, 2012, respectively. For subsidiaries where the functional currency is the U.S. dollar, gains and losses resulting from re-measuring transactions denominated in currencies other than the US dollar have not been significant for any period presented. | ||||||
Segment Information—We report our results in one reportable segment. We design and develop innovative power management and precision analog integrated circuits (“ICs”). Our chief executive officer is our chief operating decision maker. | ||||||
Use of Estimates—The financial statements have been prepared in conformity with accounting principles generally accepted in the United States and require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | ||||||
Recent Adopted Accounting Guidance | ||||||
In July 2013, the FASB issued an accounting standard update that provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward or a tax credit carryforward exists. Under the new standard update, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, is to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward or a tax credit carryforward. This accounting standard update was effective for our first quarter of fiscal 2014 and applied prospectively. Impact of application of this accounting standard on our Consolidated Financial Statements as been discussed in Note 9 – Income Taxes. | ||||||
In July 2012, the FASB issued an accounting standard update intended to simplify how an entity tests indefinite-lived intangible assets and goodwill for impairment by providing entities with an option to perform a qualitative assessment to determine whether further impairment testing is necessary. This accounting standard update became effective for us beginning in the first quarter of fiscal 2014, and its adoption did not have any impact on our Consolidated Financial Statements. | ||||||
In December 2011, the Financial Accounting Standards Board (“FASB”) issued accounting standards update that requires additional disclosure to enhance the comparability of U.S. GAAP and International Financial Reporting Standards financial statements. In January 2013, the FASB issued Accounting Standards Update 2013-01 "Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities." This standard provided additional guidance on the scope of ASU 2011-11. Retrospective application is required and the guidance concerns disclosure only. The standard was effective for our first quarter of fiscal year 2013 and did not have a material impact on our financial statements. | ||||||
Recent Accounting Guidance Not Yet Adopted | ||||||
In June 2014, the FASB issued authoritative guidance that resolves the diverse accounting treatment for share-based payment awards that require a specific performance target to be achieved in order for employees to become eligible to vest in the awards. The guidance applies to entities that grant their employees share-based awards that include a performance target that could be achieved after the requisite service period. The guidance explicitly requires that a performance target of this nature be treated as a performance condition and should not be reflected in estimating the grant-date fair value of the award. We are currently evaluating the impact that this guidance will have on our financial condition and results of operations. | ||||||
On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for Intersil on December 31, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. | ||||||
In April 2014, the FASB issued authoritative guidance that raises the threshold for a disposal transaction to qualify as a discontinued operation and requires additional disclosures about discontinued operations and disposals of individually significant components that do not qualify as discontinued operations. This guidance will be effective prospectively for the first quarter of our fiscal year 2016, which will only affect any dispositions we may make after the effective date. | ||||||
In March 2013, the FASB issued an accounting standard update requiring an entity to release into net income the entire amount of a cumulative translation adjustment related to its investment in a foreign entity when as a parent it sells either a part or all of its investment in the foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets within the foreign entity. This accounting standard update is effective for the Company beginning in the first quarter of fiscal 2015. Upon adoption, the application of this accounting standard update did not have any impact to the Company's Consolidated Financial Statements. | ||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||
Jan. 02, 2015 | ||||||||||
Fair Value Measurements [Abstract] | ||||||||||
Fair Value Measurements | NOTE 3—FAIR VALUE MEASUREMENTS | |||||||||
We determine fair value on the following assets using these input levels (in thousands): | ||||||||||
Fair value as of January 2, 2015 using: | ||||||||||
Total | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | ||||||||
Assets | ||||||||||
Other non-current assets: | ||||||||||
Deferred compensation investments | $ | 11,144 | $ | 353 | $ | 10,791 | ||||
Total assets measured at fair value | $ | 11,144 | $ | 353 | $ | 10,791 | ||||
Fair value as of January 3, 2014 using: | ||||||||||
Total | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | ||||||||
Assets | ||||||||||
Other non-current assets: | ||||||||||
Deferred compensation investments | $ | 11,579 | $ | 491 | $ | 11,088 | ||||
Total assets measured at fair value | $ | 11,579 | $ | 491 | $ | 11,088 | ||||
There were no transfers into or out of Level 1, Level 2, or Level 3 financial assets and liabilities during fiscal years 2014 or 2013. | ||||||||||
For actively traded securities and bank time deposits, we generally rely upon the valuations as provided by the third-party custodian of these assets or liabilities. | ||||||||||
Financial_Instruments_and_Deri
Financial Instruments and Derivatives | 12 Months Ended | |||||||
Jan. 02, 2015 | ||||||||
Financial Instruments and Derivatives [Abstract] | ||||||||
Financial Instruments and Derivatives | NOTE 4—FINANCIAL INSTRUMENTS AND DERIVATIVES | |||||||
We did not have any derivative instruments designated as hedging instruments outstanding on January 2, 2015 or January 3, 2014. | ||||||||
Year ended | ||||||||
Income statement location | 28-Dec-12 | |||||||
Interest rate swap agreements | ||||||||
Loss reclassified from accumulated OCI to earnings (effective portion) | Interest expense and fees | $ | -6,547 | |||||
Loss recognized in earnings (ineffective portion) | Interest expense and fees | $ | -95 | |||||
During the third quarter of fiscal 2011, we entered into additional interest rate swap transactions with a notional value of $150.0 million to hedge a portion of the risk of changes in the benchmark interest rate of the one-month London Interbank Offered Rate (“LIBOR”) related to our new outstanding revolving credit facility. Under the terms of the swaps, we effectively converted $150.0 million of our variable-rate revolving credit facility to fixed interest rates through August 8, 2016. | ||||||||
During the fourth quarter of fiscal 2012, we repaid the outstanding balance of our revolving credit facility. As a result, we determined that the forecasted interest payments associated with the original hedge transactions would no longer occur. The remaining balance in OCI, before tax, of $5.8 million, related to the effective portion of the loss on the swaps, was reclassified to interest expense and fees. We settled the swaps for $3.7 million during fiscal 2012. | ||||||||
The effects of derivatives not designated as hedging instruments on the consolidated statements of operations are as follows (in thousands): | ||||||||
Year ended | ||||||||
Income statement location | 28-Dec-12 | |||||||
Loss on foreign exchange options | Cost of revenue | -679 | ||||||
The table below describes total open foreign exchange contracts (all are options to sell foreign currencies) (in thousands): | ||||||||
Year ended | ||||||||
28-Dec-12 | ||||||||
Unrealized (loss) gain on foreign exchange contracts | $ | -653 | ||||||
Purchases and sales of foreign exchange contracts | 31,428 | |||||||
Notional amount of open contracts as of year end | 12,429 | |||||||
Notional Amount of Open Foreign Currency Contracts | Euros | U.S. Dollars | Range of Maturities | |||||
28-Dec-12 | € | 10,000 | $ | 12,429 | 1 - 5 months | |||
Inventories
Inventories | 12 Months Ended | |||||
Jan. 02, 2015 | ||||||
Inventories [Abstract] | ||||||
Inventories | NOTE 5—INVENTORIES | |||||
Inventories are summarized below (in thousands): | ||||||
As of | As of | |||||
2-Jan-15 | 3-Jan-14 | |||||
Finished products | $ | 22,758 | $ | 20,783 | ||
Work in process | 47,083 | 38,759 | ||||
Raw materials | 3,929 | 2,866 | ||||
Total inventories | $ | 73,770 | $ | 62,408 | ||
As of January 2, 2015, we were committed to purchase $18.5 million of inventory from suppliers. | ||||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | |||||
Jan. 02, 2015 | ||||||
Property, Plant and Equipment [Abstract] | ||||||
Property, Plant and Equipment | NOTE 6—PROPERTY, PLANT AND EQUIPMENT | |||||
Property, plant and equipment are summarized below (in thousands): | ||||||
As of | As of | |||||
2-Jan-15 | 3-Jan-14 | |||||
Land | $ | 1,708 | $ | 1,708 | ||
Buildings and leasehold improvements | 60,728 | 59,743 | ||||
Machinery and equipment | 264,325 | 244,940 | ||||
Construction in progress | 5,914 | 21,956 | ||||
Total property, plant and equipment | 332,675 | 328,347 | ||||
Accumulated depreciation and leasehold amortization | -260,403 | -246,480 | ||||
Total property, plant and equipment, net | $ | 72,272 | $ | 81,867 | ||
Depreciation expense was $19.4 million, $19.0 million, and $19.5 million for fiscal years 2014, 2013 and 2012, respectively. Non-cash accruals for purchases of property, plant and equipment were immaterial for fiscal years 2014 and 2013, respectively, and $1.5 million for fiscal 2012. As of January 2, 2015, we had open capital asset purchase commitments of $1.3 million. | ||||||
Goodwill_And_Purchased_Intangi
Goodwill And Purchased Intangibles | 12 Months Ended | ||||||||
Jan. 02, 2015 | |||||||||
Goodwill And Purchased Intangibles [Abstract] | |||||||||
Goodwill And Purchased Intangibles | NOTE 7—GOODWILL AND PURCHASED INTANGIBLES | ||||||||
Goodwill—The following table summarizes changes in net goodwill balances for our one reportable segment (in thousands): | |||||||||
Gross goodwill balance as of January 2, 2015 and January 3, 2014 | $ | 1,720,100 | |||||||
Accumulated impairment charge | -1,154,676 | ||||||||
Net goodwill balance as of January 2, 2015 and January 3, 2014 | $ | 565,424 | |||||||
During the third quarter of fiscal year 2013, we reorganized from three reporting units into four reporting units – specialty, mobile, precision and industrial & infrastructure. We performed a fair value analysis to allocate our goodwill at the time of the reorganization and performed an impairment test of goodwill as of the date of reorganization. Based on our analysis, no impairment was indicated. | |||||||||
We perform an annual test of goodwill in the fourth quarter of each fiscal year. In fiscal years 2014, 2013 and 2012, we recorded no impairment of goodwill based on our analysis. The fair value of the reporting units was significantly in excess of the carrying value as of October 4, 2014, the first day of our fourth quarter and the date at which we performed our qualitative assessment. During fiscal years 2013 and 2012, we had performed a quantitative assessment. | |||||||||
If we experience significant declines in our stock price, market capitalization, future expected cash flows, significant adverse changes in the business climate or continuing slower growth rates, we may need to perform additional impairment analysis of our goodwill in future periods prior to our annual test in the fourth quarter. We can provide no assurance that the significant assumptions used in our analysis will not change substantially and any additional analysis could result in additional impairment charges. | |||||||||
Purchased intangibles—Substantially all of our purchased intangibles consist of multiple elements of developed technology which had estimated useful lives of five years at the time of purchase. Other purchased intangibles consist of other identifiable assets, primarily customer relationships, with estimated useful lives of four to seven years. Purchased intangibles are summarized as follows (in thousands): | |||||||||
As of January 2, 2015 | |||||||||
Definite-lived: developed technologies | Definite-lived: other | Total purchased intangibles | |||||||
Gross carrying amount | $ | 89,700 | $ | 44,200 | $ | 133,900 | |||
Accumulated amortization | 66,654 | 32,846 | 99,500 | ||||||
Purchased intangibles, net | $ | 23,046 | $ | 11,354 | $ | 34,400 | |||
As of January 3, 2014 | |||||||||
Definite-lived: developed technologies | Definite-lived: other | Total purchased intangibles | |||||||
Gross carrying amount | $ | 105,981 | $ | 48,599 | $ | 154,580 | |||
Accumulated amortization | 68,730 | 29,209 | 97,939 | ||||||
Purchased intangibles, net | $ | 37,251 | $ | 19,390 | $ | 56,641 | |||
We recorded amortization expense as follows (in thousands): | |||||||||
Year Ended | |||||||||
By statement of operations line item | 2-Jan-15 | 3-Jan-14 | 28-Dec-12 | ||||||
Amortization of purchased intangibles | $ | 22,241 | $ | 24,579 | $ | 29,185 | |||
We write-off those intangible assets that have become fully amortized during the year. Purchased intangibles were evaluated for impairment during fiscal 2013 and we recognized an impairment charge of $1.8 million on certain developed technology intangibles due to cost reduction initiatives included in our February 2013 restructuring plan (See Note 8). The impairment charge was included as a component of selling, general and administrative costs in our consolidated statements of operations. No impairment in carrying value of purchased intangibles was recorded in fiscal year 2014. | |||||||||
Expected amortization expense by fiscal year to the end of the current amortization schedule is as follows (in thousands): | |||||||||
To be recognized in: | |||||||||
Fiscal year 2015 | $ | 16,717 | |||||||
Fiscal year 2016 | 9,010 | ||||||||
Fiscal year 2017 | 6,757 | ||||||||
Fiscal year 2018 | 1,916 | ||||||||
Total expected amortization expense | $ | 34,400 | |||||||
Restructuring_and_Related_Cost
Restructuring and Related Costs | 12 Months Ended | ||
Jan. 02, 2015 | |||
Restructuring and Related Costs [Abstract] | |||
Restructuring and Related Costs | NOTE 8—RESTRUCTURING AND RELATED COSTS | ||
As part of an effort to streamline operations with changing market conditions and to create a more efficient organization, we had in prior fiscal years undertaken restructuring actions to reduce our workforce and consolidate facilities. Our restructuring costs consisted primarily of: (i) severance and termination benefit costs related to the reduction of our workforce; and (ii) lease termination costs and costs associated with permanently vacating certain facilities. | |||
In October 2013, we adopted a restructuring plan to realign our internal fabrication facilities with existing requirements, (the “October 2013 Plan”). The October 2013 plan includes a reduction of 1% of our worldwide workforce. The October 2013 plan was completed during fiscal year 2014. | |||
In the third quarter of fiscal year 2013, we adopted a rebalancing plan (the “July 2013 plan”) to better align our operating expenses with strategic growth areas for the purpose of improving competitiveness and execution across the business. The July 2013 plan included a reduction in our worldwide workforce of 12%, which has been gradually offset by the addition of new hires in design and development during 2014. We may incur additional expenses related to leases we exited under this plan, in the event the estimated fair value of liability associated with these leases increases due to changes in estimates. | |||
In the first quarter of fiscal year 2013, we adopted a restructuring plan (the “February 2013 plan”) to prioritize our sales and development efforts, strengthen financial performance and improve cash flow. The February 2013 plan included a reduction of 18% of our worldwide workforce. The February 2013 restructuring plan was completed at the end of fiscal 2013.. | |||
During fiscal year 2012, we initiated restructuring plans to reorganize certain operations and reduce our global workforce and other operating costs. The 2012 restructuring plans were substantially completed at the end of the fourth quarter of 2012. | |||
The amounts below relating to the restructuring plans are included in other accrued expenses and liabilities on the balance sheet. Activity during fiscal 2014 primarily related to the July 2013 plan (in thousands): | |||
Balance as of January 3, 2014 | $ | 6,063 | |
Costs incurred / (adjustments) | |||
Severance costs | -138 | ||
Lease exit costs | 604 | ||
Other costs | 53 | ||
Cash payments | |||
Severance payments | -4,748 | ||
Lease exit payments | -1,020 | ||
Other payments | -76 | ||
Balance as of January 2, 2015 | $ | 738 | |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Jan. 02, 2015 | ||||||||||||
Income Taxes [Abstract] | ||||||||||||
Income Taxes | NOTE 9—INCOME TAXES | |||||||||||
We are subject to filing requirements in the United States Federal jurisdiction and in many state and foreign jurisdictions for numerous consolidated and separate entity income tax returns. We are no longer subject to examination in the U.S. for years prior to 2013. | ||||||||||||
Income (loss) before income taxes is allocated between domestic and foreign jurisdictions as follows (in thousands): | ||||||||||||
Year Ended | ||||||||||||
2-Jan-15 | 3-Jan-14 | 28-Dec-12 | ||||||||||
Domestic | $ | 51,959 | $ | 22,140 | $ | 12,394 | ||||||
Foreign | 22,574 | -8,263 | -20,060 | |||||||||
Income (loss) before income taxes | $ | 74,533 | $ | 13,877 | $ | -7,666 | ||||||
Income tax expense—The provision for income taxes is summarized below (in thousands): | ||||||||||||
Year Ended | ||||||||||||
2-Jan-15 | 3-Jan-14 | 28-Dec-12 | ||||||||||
Current taxes: | ||||||||||||
Federal | $ | -14,366 | $ | -2,090 | $ | 10,300 | ||||||
State | -865 | 34 | 3,638 | |||||||||
Foreign | -617 | 2,879 | 2,042 | |||||||||
-15,848 | 823 | 15,980 | ||||||||||
Deferred taxes: | ||||||||||||
Federal | 23,337 | 11,911 | 20,329 | |||||||||
State | 2,536 | 545 | -4,871 | |||||||||
Foreign | 9,696 | -2,257 | -1,455 | |||||||||
35,569 | 10,199 | 14,003 | ||||||||||
Income tax expense | $ | 19,721 | $ | 11,022 | $ | 29,983 | ||||||
As a result of the exercise of non-qualified Options, the disqualifying disposition of incentive Options, the release of Awards and the disqualifying disposition of shares acquired under the ESPP, we realized tax benefits of $2.4 million, $1.3 million and $1.6 million during fiscal years 2014, 2013 and 2012, respectively. | ||||||||||||
We currently have a tax holiday in Malaysia resulting in a tax rate of 0%. This tax holiday began on July 1, 2009, and terminates on July 1, 2019. The table below summarizes the effects of operating in Malaysia under our tax holiday based on the Malaysian statutory tax rate (in thousands, except per share data). | ||||||||||||
Year Ended | ||||||||||||
2-Jan-15 | 3-Jan-14 | 28-Dec-12 | ||||||||||
Tax effects from earnings / (losses) attributable to Malaysia | $ | 5,611 | $ | -2,483 | $ | -5,132 | ||||||
Effect on earnings (loss) per share: | ||||||||||||
Basic | $ | 0.04 | $ | -0.02 | $ | -0.04 | ||||||
Diluted | $ | 0.04 | $ | -0.02 | $ | -0.04 | ||||||
Deferred income taxes—The components of net deferred income tax assets and liabilities are as follows (in thousands): | ||||||||||||
As of January 2, 2015 | As of January 3, 2014 | |||||||||||
Current | Non-Current | Current | Non-Current | |||||||||
Inventory | $ | 14,170 | $ | - | $ | 14,561 | $ | - | ||||
Property, plant and equipment | - | 4,158 | - | 3,445 | ||||||||
Accrued expenses | 4,869 | - | 5,343 | - | ||||||||
Equity-based compensation | - | 6,561 | - | 8,095 | ||||||||
Net operating loss carryforward | 1,025 | 19,766 | 1,285 | 23,327 | ||||||||
Capitalized research and development | - | 797 | - | 2,142 | ||||||||
Deferred compensation | - | 3,187 | - | 3,477 | ||||||||
Deferred revenue | 4,179 | - | 4,285 | - | ||||||||
Tax credits | - | 39,122 | 7,483 | 52,262 | ||||||||
Capital loss carryforward | - | 6,628 | - | 7,263 | ||||||||
Other, net | 458 | 3,824 | 480 | 4,388 | ||||||||
Deferred tax assets | 24,701 | 84,043 | 33,437 | 104,399 | ||||||||
Valuation allowance | -4,268 | -44,709 | -11,109 | -31,391 | ||||||||
Net deferred tax assets | $ | 20,433 | $ | 39,334 | $ | 22,328 | $ | 73,008 | ||||
The table below summarizes the activity in valuation allowances (in thousands): | ||||||||||||
As of January 2, 2015 | As of January 3, 2014 | |||||||||||
Beginning balance | $ | 42,500 | $ | 44,156 | ||||||||
(Decreases) related to state attributes | -48 | -1,537 | ||||||||||
Increases related to foreign net operating losses | 7,160 | - | ||||||||||
Decreases related to capital losses | -635 | -119 | ||||||||||
Ending balance | $ | 48,977 | $ | 42,500 | ||||||||
During the fiscal year ended January 2, 2015, we reduced our deferred tax assets by $0.6 million related to capital losses for expirations. The valuation allowances were also adjusted accordingly based on the deferred tax asset adjustments. | ||||||||||||
During the fiscal year ended January 2, 2015, we established a valuation allowance for the deferred tax assets attributable to the net operating losses (“NOLs”) for a foreign subsidiary. As of January 2, 2015 the said foreign subsidiary had net deferred tax assets of $7.2 million attributable to NOLs. Based upon an analysis of projected future taxable income, we have determined that we would not be able to generate income in the said foreign subsidiary to utilize the NOLs and as such determined that a full valuation allowance was required. We completed an analysis of projected future taxable income and determined that all remaining deferred tax assets, including NOLs and tax-credit carryforwards, are more likely than not to be realized in the foreseeable future. Therefore, we have not provided any additional valuation allowances on deferred tax assets as of January 2, 2015. | ||||||||||||
We have gross NOLs of $38.8 million from acquisitions that expire in tax years 2027 through 2028. The annual utilization of these NOLs is limited pursuant to Internal Revenue Code Section 382. We have gross federal R&D credit carryforwards of $13.8 million that will expire in tax years 2032 through 2034. | ||||||||||||
During the quarter ended April 4, 2014, we adopted Accounting Standards Update (ASU) No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists ("ASU 2013-11"). ASU 2013-11 clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. Adoption of this standard resulted in a $15.4 million decrease to our deferred tax assets and income tax payable during the fiscal year ended January 2, 2015. | ||||||||||||
Income Tax Rate Reconciliation—A reconciliation of the statutory United States income tax to our effective income tax is as follows ($ in thousands): | ||||||||||||
Year Ended | ||||||||||||
2-Jan-15 | January 3, | 28-Dec-12 | ||||||||||
2014 | ||||||||||||
Statutory U.S. income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||||||
Income tax provision reconciliation: | ||||||||||||
Tax at federal statutory income tax rate | $ | 26,087 | $ | 4,857 | $ | -2,683 | ||||||
State taxes | 1,356 | 1,198 | 997 | |||||||||
(Benefit) / Cost of earnings subject to tax rates other than U.S. | -7,918 | 3,505 | 7,293 | |||||||||
International equity-based compensation | 748 | 2,422 | 2,951 | |||||||||
Research credits | -4,608 | -10,313 | -3,910 | |||||||||
Change in unrecognized tax benefits | 2,765 | 116 | 20,675 | |||||||||
Subpart F—interest & stock gain | 437 | 326 | 621 | |||||||||
Manufacturing deduction | -675 | -370 | -100 | |||||||||
Amortization of deferred tax charge | -2,964 | -2,964 | -2,967 | |||||||||
Tax shortfalls on share based compensation | 1,381 | 3,277 | - | |||||||||
Export compliance settlement | 1,400 | 2,100 | - | |||||||||
Interest | - | 779 | - | |||||||||
Royalty income | 5,215 | 5,557 | 6,504 | |||||||||
Other items | -3,503 | 532 | 602 | |||||||||
Total income tax provision | $ | 19,721 | $ | 11,022 | $ | 29,983 | ||||||
Uncertain Tax Positions and Uncertain Tax Benefits (“UTBs”) | ||||||||||||
During fiscal 2014, we recorded an increase of $0.4 million of potential interest and penalties on UTBs in the consolidated statement of operations. During fiscal 2013, we recorded an increase of $1.8 million of potential interest on UTBs in the consolidated statement of operations. During fiscal 2012, we recorded a reduction of $6.1 million of potential interest and a reduction of $0.6 million of potential penalties on UTBs in the consolidated statement of operations. | ||||||||||||
The table below summarizes activity in gross UTBs (in thousands): | ||||||||||||
As of January 2, 2015 | As of January 3, 2014 | |||||||||||
Beginning balance (includes interest and penalties of $7,102 thousand as of January 3, 2014 | $ | 99,343 | $ | 112,867 | ||||||||
Increases related to current year tax positions | 1,152 | 1,157 | ||||||||||
Increases related to prior year tax positions | 2,515 | 10,874 | ||||||||||
Settlements with tax authorities | -24,804 | -25,555 | ||||||||||
Ending balance (includes $7,538 thousand of interest and penalties as of January 2, 2015) | $ | 78,206 | $ | 99,343 | ||||||||
The increases related to prior fiscal year tax positions in fiscal 2014 were primarily due to accrued interest on the UTBs. The increases related to current fiscal year tax positions do not have a material impact on the effective tax rate. | ||||||||||||
During fiscal 2014, we reached final settlement with the IRS in connection with the 2010 – 2012 examination periods. As a result of the settlement, we reduced our UTB balance by $16.4 million. This reduction included a $5.6 million cash payment to the IRS for additional tax, a $4.2 million decrease in deferred tax assets related to federal R&D tax credits, and a $6.6 million reduction to tax expense. Also during fiscal 2014, we reached final settlement with Swiss tax authorities in connection with the 2009 – 2012 examination periods. We decreased our UTBs in the amount of $7.5 million. This reduction included a $2.7 million cash payment consisting of $2.4 million of additional tax and $0.3 million of interest and a $4.8 million decrease in deferred tax assets related to utilization of a net operating loss attribute. During fiscal year 2014, we made cash payments of $0.3 million to various states related to the 2008 – 2009 IRS settlement. During fiscal year 2014, we made cash payments of $0.6 million to various states related to the 2005-2007 IRS settlement. | ||||||||||||
Within the next 12 months, we estimate that our UTB balance will be reduced by $0.1 million related to the state tax impact of the settlement with the IRS for tax years 2005 – 2007, $0.3 million related to the state tax impact of the settlement with the IRS for tax years 2008 – 2009, and $2.5 million related to the state tax impact of the settlement with the IRS for tax years 2010 – 2011. | ||||||||||||
We believe events that could occur in the next 12 months and cause a material change in unrecognized tax benefits include, but are not limited to, the following: | ||||||||||||
· | completion of examinations by the U.S. or foreign taxing authorities; and | |||||||||||
· | expiration of statute of limitations on our tax returns. | |||||||||||
The calculation of unrecognized tax benefits involves dealing with uncertainties in the application of complex global tax regulations. We regularly assess our tax positions in light of legislative, bilateral tax treaty, regulatory, tax holiday arrangements and judicial developments in the countries in which we do business. We believe it is reasonably possible that we may recognize approximately $20 million of our existing unrecognized tax benefits within the next twelve months as a result of the lapse of statutes of limitations and the resolution of agreements with domestic and various foreign tax authorities. | ||||||||||||
Other Income Tax Information | ||||||||||||
Income taxes paid were $29.0 million, $16.6 million and $49.4 million during fiscal years 2014, 2013 and 2012, respectively. Interest and penalties paid were $0.5 million during fiscal 2014, $0.9 million during fiscal 2013, and $13.5 million during fiscal 2012. | ||||||||||||
We have not provided U.S. income taxes on $366.8 million of accumulated undistributed earnings of our international subsidiaries because of our demonstrated intention to permanently reinvest these earnings. Should these earnings be remitted to the U.S. we would be subject to additional U.S. taxes and foreign withholding taxes. Determining the unrecognized deferred tax liability related to investments in these international subsidiaries that are permanently reinvested is not practicable and not expected in the foreseeable future. | ||||||||||||
Hypothetical Additional Paid in Capital (“APIC”) Pool—The hypothetical APIC pool represents the excess tax benefits related to share-based compensation that are available to absorb future tax deficiencies. If the amount of tax deficiencies is greater than the available hypothetical APIC pool, we record the excess as income tax expense in our consolidated statements of operations. We recognized $1.4 million and $3.3 million of income tax expense resulting from tax deficiencies related to equity-based compensation in our consolidated statements of operations during fiscal years 2014 and 2013, respectively. We did not recognize any tax expense resulting from tax deficiencies during 2012. | ||||||||||||
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||
Jan. 02, 2015 | ||||
Long Term Debt [Abstract] | ||||
Long-Term Debt | NOTE 10—LONG-TERM DEBT | |||
On September 1, 2011, we established a new five-year, $325.0 million revolving credit facility (the “Facility”). This Facility replaced our previous $300.0 million six-year term-loan facility and $75.0 million revolving credit facility. The Facility matures on September 1, 2016 and is payable in full upon maturity. We may request to increase the Facility by up to $75.0 million. Under the Facility, $25.0 million is available for the issuance of standby letters of credit, $10.0 million is available as swing line loans and $50.0 million is available for multicurrency borrowings. Amounts repaid under the Facility may be re-borrowed. | ||||
The Facility is secured by a first priority lien and security interest in (a) all of the equity interests and intercompany debt of our direct and indirect subsidiaries, except, in the case of foreign subsidiaries, to the extent that such pledge would be prohibited by applicable law or would result in adverse tax consequences, (b) all of our present and future tangible and intangible assets and our direct and indirect subsidiaries (other than immaterial subsidiaries and foreign subsidiaries) and (c) all proceeds and products of the property and assets described in clauses (a) and (b) above. Our obligations under the Facility are guaranteed by our direct and indirect wholly-owned subsidiaries (other than immaterial subsidiaries and foreign subsidiaries). | ||||
At our option, loans under the Facility will bear stated interest based on the Base Rate or Eurocurrency Rate, in each case plus the Applicable Rate (respectively, as defined in the credit agreement (the “Credit Agreement”), as amended governing the facility in Exhibit 10.1). The Base Rate will be, for any day, a fluctuating rate per annum equal to the highest of (a) 1/2 of 1.00% per annum above the Federal Funds Rate (as defined in the Credit Agreement), (b) Bank of America’s prime rate and (c) the Eurodollar Rate for a term of one month plus 1.00%. Eurodollar borrowings may be for one, two, three or six months (or such period that is 12 months or less, requested by Intersil and consented to by all the Lenders) and will be at an annual rate equal to the period-applicable Eurodollar Rate plus the Applicable Rate. The Applicable Rate for all revolving loans is based on a pricing grid ranging from 0.75% to 1.75% per annum for Base Rate loans and 1.75% to 2.75% for Eurocurrency Rate loans based on Intersil’s Consolidated Leverage Ratio (as defined in the Credit Agreement). | ||||
During the fiscal year ended December 28, 2012, we obtained two amendments to the Facility which further revised the requirements of certain debt covenants. We incurred fees related to the amendments of approximately $0.9 million, which have also been capitalized as part of the debt issuance costs. | ||||
We did not have any outstanding borrowings against the Facility as of January 2, 2015 or January 3, 2014. | ||||
Year Ended | ||||
28-Dec-12 | ||||
(in thousands) | ||||
Cash paid for interest | $ | 3,907 | ||
Weighted-average interest rate (pre-tax) | 2.48 | % | ||
Letters of Credit: We issue letters of credit during the ordinary course of business through major financial institutions as required by certain vendor contracts. We had outstanding letters of credit totaling $1.4 million as of January 2, 2015 and January 3, 2014. The standby letters of credit are secured by pledged deposits. | ||||
Income_From_Intellectual_Prope
Income From Intellectual Property ("IP") Agreements | 12 Months Ended |
Jan. 02, 2015 | |
Income From Intellectual Property ("IP") Agreements [Abstract] | |
Income From Intellectual Property ("IP") Agreements | NOTE 11—INCOME FROM INTELLECTUAL PROPERTY (“IP”) AGREEMENTS |
During the fourth quarter ended December 28, 2012, we recorded income of $1.0 million related to the sale of several patents. During the third quarter of fiscal year 2012, we recorded proceeds of $20.0 million, net of $6.6 million of legal costs, related to an IP agreement settling a trade secret misappropriation and patent infringement dispute with another semiconductor company. | |
Common_Stock_And_Dividends
Common Stock And Dividends | 12 Months Ended | ||||||||
Jan. 02, 2015 | |||||||||
Common Stock And Dividends [Abstract] | |||||||||
Common Stock And Dividends | NOTE 12—COMMON STOCK AND DIVIDENDS | ||||||||
Common Stock—Intersil shareholders approved an Amended and Restated Certificate of Incorporation in 2005 that restated authorized capital stock to consist of 600 million shares of Intersil Class A common stock, par value $0.01 per share, and two million shares of preferred stock. Holders of Class A common stock are entitled to one vote for each share held. The Board of Directors has broad discretionary authority to designate the terms of the preferred stock should it be issued. As of January 2, 2015 and January 3, 2014, no shares of preferred stock were outstanding. | |||||||||
The table below summarizes the Class A common stock activity for all periods presented (in thousands, except per share amounts): | |||||||||
Year Ended | |||||||||
January 2, | January 3, | 28-Dec-12 | |||||||
2015 | 2014 | ||||||||
Beginning balance | 127,715 | 126,250 | 126,483 | ||||||
Shares issued under stock plans, net of shares withheld for taxes | 2,502 | 1,465 | 1,667 | ||||||
Repurchase and retirement of common stock | - | - | -1,900 | ||||||
Ending balance | 130,217 | 127,715 | 126,250 | ||||||
Dividends paid to shareholders | $ | 61,960 | $ | 61,025 | $ | 60,955 | |||
Dividends paid per share | $ | 0.48 | $ | 0.48 | $ | 0.48 | |||
Dividends—We have paid a quarterly dividend since September 2003. In January 2015, the Board of Directors declared a dividend of $0.12 per share to be paid in the first quarter of 2015, which if annualized equates to $0.48 per share. Dividends in the future will be declared at the discretion of the Board of Directors upon consideration of business conditions, liquidity and outlook. | |||||||||
Risks_And_Uncertainties
Risks And Uncertainties | 12 Months Ended | |||||||||||
Jan. 02, 2015 | ||||||||||||
Risks And Uncertainties [Abstract] | ||||||||||||
Risks and Uncertainties | NOTE 13—RISKS AND UNCERTAINTIES | |||||||||||
Financial instruments - Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of cash equivalents, investments, accounts receivable and derivatives. We continually monitor our positions with and the credit quality of the governmental and financial institutions that issue our cash equivalents and investments. By policy, we limit our exposure to long-term investments and mitigate the credit risk through diversification and adherence to a policy requiring the purchase of highly-rated securities. In addition, we limit the amount of investment credit exposure with any one issuer. For foreign exchange contracts, we manage potential credit exposure primarily by restricting transactions with only high-credit quality counterparties. | ||||||||||||
We market our products for sale to customers, including distributors, primarily in Asia and the United States. We extend credit based on an evaluation of the customer’s financial condition and we generally do not require collateral. | ||||||||||||
Concentration of Operational Risk—We market our products for sale to customers, including distributors, primarily in Asia, Europe and the United States. We extend credit based on an evaluation of the customer’s financial condition and we generally do not require collateral. The table below shows revenue by country where such value exceeded 10% in any one year: | ||||||||||||
Fiscal Year | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Revenue by country | ||||||||||||
China | 50.9 | % | 52.9 | % | 55.4 | % | ||||||
United States | 18.1 | % | 15.7 | % | 14.0 | % | ||||||
In addition to those in the table above, our customers in each of Korea, Japan, Germany, Singapore, Taiwan, and Thailand, accounted for at least 1% of our total revenue in fiscal year 2014. | ||||||||||||
One distributor, Avnet, Inc. (“Avnet”), represented 18.4%, 17.0%, and 14.9% of revenue during fiscal years 2014, 2013 and 2012 respectively and 24.4% and 24.6% of trade receivables as of January 2, 2015 and January 3, 2014, respectively. Another distributor, WPG Holdings Ltd. (“WPG”), represented 10.8%, 12.2%, and 12.8% of revenue during fiscal years 2014, 2013 and 2012 respectively and a 7.7% and 13.8% of accounts receivable as of January 2, 2015 and January 3, 2014, respectively. | ||||||||||||
We relied on external vendors for 86.9% of our wafer supply as measured in units during fiscal 2014. Additionally, we rely primarily on external vendors for test, assembly and packaging services. The test, assembly and packaging vendors we utilize are mostly located in Asia, where a significant volume of our final product sales are made. | ||||||||||||
Geographic Information—The following table presents net revenue and long-lived asset information based on geographic region. Net revenue is based on the geographic location of the distributors, original equipment manufacturers or contract manufacturers who purchased our products, which may differ from the geographic location of the end customers. Long-lived assets include property, plant and equipment and are based on the physical location of the assets (in thousands): | ||||||||||||
Fiscal Year | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United States operations | ||||||||||||
Revenue | $ | 101,268 | $ | 90,348 | $ | 85,356 | ||||||
Tangible long-lived assets | $ | 55,681 | $ | 59,469 | $ | 54,048 | ||||||
International operations | ||||||||||||
Revenue | $ | 461,287 | $ | 484,847 | $ | 522,508 | ||||||
Tangible long-lived assets | $ | 16,591 | $ | 22,398 | $ | 31,326 | ||||||
Concentration of other risks - The semiconductor industry is characterized by rapid technological change, competitive pricing pressures, and cyclical market patterns. Our results of operations are affected by a wide variety of factors, including general economic conditions; economic conditions specific to the semiconductor industry; demand for our products; the timely introduction of new products; implementation of new manufacturing technologies; manufacturing capacity; the availability and cost of materials and supplies; competition; the ability to safeguard patents and intellectual property in a rapidly evolving market; and reliance on assembly and manufacturing foundries, independent distributors and sales representatives. As a result, we may experience substantial period-to-period fluctuations in future operating results due to the factors mentioned above or other factors. | ||||||||||||
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 12 Months Ended | ||||||||
Jan. 02, 2015 | |||||||||
Earnings (Loss) Per Share [Abstract] | |||||||||
Earnings (Loss) Per Share | NOTE 14—EARNINGS (LOSS) PER SHARE | ||||||||
The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): | |||||||||
Year Ended | |||||||||
2-Jan-15 | 3-Jan-14 | 28-Dec-12 | |||||||
Numerator: | |||||||||
Net income (loss) to common shareholders | $ | 54,812 | $ | 2,855 | $ | -37,649 | |||
Denominator: | |||||||||
Denominator for basic earnings (loss) per share—weighted average common shares | 129,149 | 127,151 | 127,032 | ||||||
Effect of stock options and awards | 3,508 | 847 | - | ||||||
Denominator for diluted earnings (loss) per share—adjusted weighted average common shares | 132,657 | 127,998 | 127,032 | ||||||
Earnings (loss) per share: | |||||||||
Basic | $ | 0.42 | $ | 0.02 | $ | -0.3 | |||
Diluted | $ | 0.41 | $ | 0.02 | $ | -0.3 | |||
Anti-dilutive shares not included in the above calculations: | |||||||||
Awards | 242 | 1,181 | 3,367 | ||||||
Options | 1,128 | 6,774 | 11,946 | ||||||
EquityBased_Compensation
Equity-Based Compensation | 12 Months Ended | |||||||||||||||
Jan. 02, 2015 | ||||||||||||||||
Equity-Based Compensation [Abstract] | ||||||||||||||||
Equity-Based Compensation | NOTE 15—EQUITY-BASED COMPENSATION | |||||||||||||||
Our equity compensation plans are summarized below (in thousands): | ||||||||||||||||
Equity Compensation Arrangement | Total Number of Shares in Arrangement | Shares Outstanding as of January 2, 2015 | Shares Available for Issuance at January 2, 2015 | |||||||||||||
1999 Plan | 36,250 | 196 | - | |||||||||||||
2008 Plan | 46,229 | 9,219 | 18,096 | |||||||||||||
2009 Option Exchange Plan | 2,914 | 894 | - | |||||||||||||
Inducement Plan | 433 | 325 | - | |||||||||||||
ESPP | 9,033 | - | 2,989 | |||||||||||||
94,859 | 10,634 | 21,085 | ||||||||||||||
Grant Date Fair Values and Underlying Assumptions; Contractual Terms | ||||||||||||||||
For Options granted in fiscal years 2014 and 2013, we estimated the fair value of each Option as of the date of grant with the following assumptions: | ||||||||||||||||
Year Ended | ||||||||||||||||
2-Jan-15 | 3-Jan-14 | |||||||||||||||
Expected volatilities | 32.20% | 38.20% | ||||||||||||||
Dividend yields | 3.60% | 5.70% | ||||||||||||||
Risk-free interest rate | 0.80% | 0.60% | ||||||||||||||
Expected lives, in years | 2.6 | 2.6 | ||||||||||||||
The following table represents the weighted-average fair value compensation cost per share of Options and Awards granted: | ||||||||||||||||
Year Ended | ||||||||||||||||
2-Jan-15 | 3-Jan-14 | 28-Dec-12 | ||||||||||||||
Options | $ | 2.18 | $ | 1.67 | $ | 2.55 | ||||||||||
Awards | $ | 13.12 | $ | 8.58 | $ | 9.14 | ||||||||||
Aggregate | $ | 12.76 | $ | 7.94 | $ | 5.62 | ||||||||||
Information Regarding Options and Awards—Information about Options and Awards as of January 2, 2015 and activity for Options and Awards for the three fiscal years then ended is presented below: | ||||||||||||||||
Options | Awards | Aggregate information | ||||||||||||||
Shares | Weighted-average exercise price | Weighted-average remaining contract lives | Shares | Aggregate intrinsic value | Aggregate unrecognized compensation cost | |||||||||||
(in thousands) | (per share) | (in years) | (in thousands) | (in thousands) | (in thousands) | |||||||||||
Outstanding as of December 30, 2011 | 13,948 | $ | 16.21 | 4.1 | 3,678 | |||||||||||
Granted (1) | 2,420 | 10.47 | 2,117 | |||||||||||||
Exercised (4) | -85 | 6.48 | -1,164 | |||||||||||||
Canceled | -4,337 | 16.79 | -1,264 | |||||||||||||
Outstanding as of December 28, 2012 | 11,946 | $ | 14.90 | 3.7 | 3,367 | |||||||||||
Granted (2) | 340 | 8.38 | 3,334 | |||||||||||||
Exercised (4) | -106 | 8.34 | -931 | |||||||||||||
Canceled | -4,684 | 16.89 | -1,166 | |||||||||||||
Outstanding as of January 3, 2014 | 7,496 | $ | 13.46 | 3.3 | 4,604 | |||||||||||
Granted (3) | 70 | 13.45 | 6.8 | 2,109 | ||||||||||||
Exercised (4) | -1,205 | 12.36 | 3.1 | -1,153 | ||||||||||||
Canceled | -978 | 19.28 | 0.7 | -309 | ||||||||||||
Outstanding as of January 2, 2015 | 5,383 | $ | 12.65 | 2.9 | 5,251 | $ | 91,358 | $ | 30,454 | |||||||
As of January 2, 2015: | ||||||||||||||||
Exercisable/vested (4) | 4,667 | $ | 12.86 | 2.7 | 67 | $ | 12,596 | |||||||||
Vested and expected to vest | 5,277 | $ | 12.69 | 2.9 | 3,986 | $ | 72,327 | |||||||||
-1 | Grants include 833,204 MSU Options and 380,821 MSU Awards issued in fiscal 2012. | |||||||||||||||
-2 | Grants include 784,000 MSU Awards issued in fiscal 2013. | |||||||||||||||
-3 | Grans include 433,564 MSU Awards issued in fiscal 2014. | |||||||||||||||
-4 | Awards exercised are those that have reached full vested status and been delivered to the recipients as a taxable event due to elective deferral available in the case of deferred stock units. Deferred stock units for which the deferral is elected timely are vested but still outstanding as Awards. Total un-issued shares related to deferred stock units as of January 2, 2015, were 66,670 shares as shown in the Awards column as Exercisable/vested. | |||||||||||||||
The weighted-average recognition period for the compensation cost is 3.5 years. The unrecognized compensation cost is expected to be recognized over a period of 1.5 years. | ||||||||||||||||
Additional Disclosures | Year Ended | |||||||||||||||
2-Jan-15 | 3-Jan-14 | 28-Dec-12 | ||||||||||||||
($ in thousands, share data in thousands) | ||||||||||||||||
Shares issued under the employee stock purchase plan | 495 | 712 | 813 | |||||||||||||
Aggregate intrinsic value of stock options exercised | $ | 2,445 | $ | 175 | $ | 281 | ||||||||||
The following table is a summary of the number and weighted-average grant date fair values regarding our unexercisable/unvested Options and Awards as of January 2, 2015 and activity during the fiscal year then ended (in thousands): | ||||||||||||||||
Options Unvested | Options-Weighted Average Grant Date Fair Values | Awards Unvested | Awards-Weighted Average Grant Date Fair Values | |||||||||||||
Unvested as of January 3, 2014 | 1,355 | $ | 2.86 | 4,530 | $ | 9.53 | ||||||||||
Granted | 70 | 2.18 | 2,109 | 13.12 | ||||||||||||
Vested | -614 | 3.15 | -1,146 | 11.52 | ||||||||||||
Forfeited | -94 | 2.97 | -309 | 10.24 | ||||||||||||
Unvested as of January 2, 2015 | 717 | $ | 2.86 | 5,184 | $ | 10.51 | ||||||||||
Financial Statement Effects and Presentation—The following table shows total equity-based compensation expense for the periods indicated that are included in the accompanying Consolidated Statements of Operations (in thousands): | ||||||||||||||||
Year Ended | ||||||||||||||||
2-Jan-15 | 3-Jan-14 | 28-Dec-12 | ||||||||||||||
By statement of operations line item | ||||||||||||||||
Cost of revenue | $ | 1,326 | $ | 1,387 | $ | 1,634 | ||||||||||
Research and development | $ | 8,468 | $ | 7,777 | $ | 11,304 | ||||||||||
Selling, general and administrative | $ | 8,894 | $ | 9,927 | $ | 11,670 | ||||||||||
By stock type | ||||||||||||||||
Stock options | $ | 1,189 | $ | 4,690 | $ | 9,426 | ||||||||||
Restricted and deferred stock awards | $ | 16,493 | $ | 13,378 | $ | 14,037 | ||||||||||
Employee stock purchase plan | $ | 1,006 | $ | 1,023 | $ | 1,145 | ||||||||||
As of January 2, 2015 | As of January 03, 2014 | |||||||||||||||
(in thousands) | ||||||||||||||||
Equity-based compensation capitalized in inventory | $ | - | $ | 341 | ||||||||||||
Market and Performance-based Grants — As of January 2, 2015, we had Options and Awards outstanding that include the usual service conditions as well as (1) market conditions related to total shareholder return and (2) performance conditions relating to revenue and operating income relative to peer companies. Under the terms of the agreements, participants may receive from 0 - 200% of the original grant. Equity-based compensation cost is measured at the grant date, based on the fair value of the number of shares ultimately expected to vest, and is recognized as an expense, on a straight line basis, over the requisite service period (shares in thousands): | ||||||||||||||||
As of January 2, 2015 | ||||||||||||||||
Options | Awards | |||||||||||||||
(in thousands) | ||||||||||||||||
Performance and market-based units outstanding | 368 | 1,343 | ||||||||||||||
Maximum shares that could be issued assuming the highest level of performance | 551 | 2,396 | ||||||||||||||
Performance and market-based shares expected to vest | 208 | 1,768 | ||||||||||||||
Amount to be recognized as compensation cost over the performance period | 1,510 | 10,616 | ||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||
Jan. 02, 2015 | ||||||
Commitments and Contingencies [Abstract] | ||||||
Commitments and Contingencies | NOTE 16—COMMITMENTS AND CONTINGENCIES | |||||
Indemnifications—The Harris Corporation (“Harris”) facilities in Palm Bay, Florida, are listed on the National Priorities List (“NPL”) for groundwater clean-up under the Comprehensive Environmental Response, Compensation and Liabilities Act, or Superfund. Intersil’s adjacent facility is included in the listing since it was owned by Harris at the time of the listing. Remediation activities associated with the NPL site have ceased. However, Harris is still obligated to conduct groundwater monitoring on the affected property for an unspecified period of time. Harris has indemnified Intersil against any environmental liabilities associated with this contamination. This indemnification does not expire, nor does it have a maximum amount. | ||||||
A former semiconductor manufacturing site in Taoyuan, Taiwan operated by RCA and/or General Electric allegedly has groundwater contamination and is subject to cleanup and monitoring efforts as well as claims of environmental pollution that allegedly caused adverse health effects. To the extent our Taiwan subsidiary is the successor in interest to any of RCA or General Electric’s activities at that site, Harris has indemnified Intersil against any environmental liabilities associated with the alleged contamination. This indemnification does not expire, nor does it have a maximum amount. | ||||||
We generally provide customers with a limited indemnification against intellectual property infringement claims related to our products. We accrue for known indemnification issues if a loss is probable and can be reasonably estimated, and accrue for estimated incurred but unidentified issues based on historical activity. | ||||||
In certain instances when we sell product groups, we may retain certain liabilities for known exposures and provide indemnification to the buyer with respect to future claims arising from events occurring prior to the sale date, including liabilities for taxes, legal matters, intellectual property infringement, environmental exposures and other obligations. The terms of the indemnifications vary in duration, from one to two years for certain types of indemnities, to terms for tax indemnifications that are generally aligned to the applicable statute of limitations for the jurisdiction in which the divestiture occurred, and terms for environmental indemnities that typically do not expire. The maximum potential future payments that we could be required to make under these indemnifications are either contractually limited to a specified amount or unlimited. We believe that the maximum potential future payments that we could be required to make under these indemnifications are not determinable at this time, as any future payments would be dependent on the type and extent of the related claims, and all available defenses, which are not estimable. | ||||||
Leases and Commitments—Total rental expense amounted to $7.7 million, $8.8 million, and $11.0 million for 2014, 2013 and 2012, respectively. Future minimum lease commitments under non-cancelable operating leases primarily related to land and office buildings amounted to $33.1 million as of January 2, 2015. | ||||||
The following table sets forth future minimum lease commitments and non-cancelable purchase commitments as of January 2, 2015 (in thousands): | ||||||
Future minimum lease commitments | Non-cancelable purchase commitments | |||||
2015 | $ | 7,704 | $ | 98,587 | ||
2016 | 6,969 | 985 | ||||
2017 | 6,329 | 2,399 | ||||
2018 | 6,031 | 1,237 | ||||
Thereafter | 6,033 | 513 | ||||
Total future minimum commitments | $ | 33,066 | $ | 103,721 | ||
Litigation_Matters
Litigation Matters | 12 Months Ended |
Jan. 02, 2015 | |
Litigation Matters [Abstract] | |
Litigation Matters | NOTE 17—LITIGATION MATTERS |
A portion of our activities are subject to export control regulations by the U.S. Department of State (“DOS”) under the U.S. Arms Export Control Act (AECA) and International Traffic in Arms Regulations (ITAR 22 CFR 120-130). In September 2010, in response to a request for information, we disclosed to the Directorate of Defense Trade Controls (DDTC) information concerning export activities for the time frame 2005 through 2010. The DOS administers the DDTC authority under ITAR 22 CFR 120-130 to impose civil penalties and other administrative sanctions for violations, including debarment from engaging in the exporting of defense articles. In June of 2013, DDTC notified us of potential violations of the ITAR and that it was considering pursuing administrative proceedings under Part 128 of the ITAR. On June 16, 2014, we entered into a Consent Agreement (the “Agreement”) with the Office of Defense Trade Controls Compliance (“DTCC”), Bureau of Political-Military Affairs, DOS for the purpose of resolving the ITAR compliance matter. The Agreement has a two-year term and provides for: (i) payment of an aggregate civil penalty of $10 million, $4 million of which is suspended and eligible for offset credit based on verified expenditures for certain past and future remedial compliance measures; (ii) the appointment of an internal Special Compliance Official to oversee compliance with the Agreement and U.S. export control regulations; (iii) two external audits of the Company’s ITAR compliance program; and (iv) continued implementation of ongoing remedial compliance measures and additional remedial compliance measures related to automated systems and ITAR compliance policies, procedures, and training. In connection with the settlement, we estimated and recorded a $6 million charge in the fiscal quarter ended October 4, 2013 and an additional $4 million charge in the fiscal quarter ended April 4, 2014 when the amount of the penalty was determined. The $6 million portion of the settlement that is not subject to suspension will be paid in installments, with $3 million paid in June 2014, and $3 million payable in June 2015. We expect that investments made in its export control compliance program will be eligible for credit against the suspended portion of the settlement amount, which include: additional staffing, ongoing implementation of a new software system, employee training, and establishment of a regular compliance audit program and corrective action process. We also expect that these investments in remedial compliance measures will be sufficient to cover the $4 million suspended payment. | |
Texas Advanced Optoelectronic Solutions, Inc. (“TAOS”) named Intersil as a defendant in a lawsuit filed on November 25, 2008, in the United States District Court for the Eastern District of Texas. Discovery has been completed, and a jury trial for the case is under way. In this action, TAOS alleges patent infringement, breach of contract, trade secret misappropriation, and tortious interference with a business relationship, and has stated during trial that it is seeking in the range of $49 million in compensatory damages, and exemplary damages, costs and interest in an unspecified amount as well as injunctive relief. We dispute TAOS’ claims, which we believe are without merit, and are defending ourselves vigorously. Given the unpredictable nature of this type of litigation and because the outcome remains subject to appeal, there is significant uncertainty regarding the ultimate outcome of this lawsuit. | |
We are currently party to various claims and legal proceedings, including those discussed above. When we believe that a loss is probable and the amount of the loss can be reasonably estimated, we recognize the estimated amount of the loss. We include legal costs in the estimate of losses. As additional information becomes available, we reassess any potential liability related to these matters and, if necessary, revise the estimates. | |
We do not believe, based on currently available facts and circumstances, that the ultimate outcome of these matters, individually and in the aggregate will have a material adverse effect on our financial position or overall trends in results of our operations. During the periods presented we have not recorded any accrual for loss contingencies associated with any legal proceedings, nor determined that an unfavorable outcome is probable. As a result, no amounts have been accrued or disclosed in the accompanying consolidated financial statements with respect to these legal proceedings, as potential losses for such matters are not considered probable. However, litigation is subject to inherent uncertainties and unfavorable rulings could occur, including an award of substantial monetary damages or issuance of an injunction prohibiting us from selling one or more products. From time to time, we may enter into confidential discussions regarding the potential settlement of such lawsuits. Any settlement of pending litigation could require us to incur substantial costs and other ongoing expenses, such as future royalty payments in the case of an intellectual property dispute. There can be no assurances that the actual amounts required to satisfy any liabilities arising from the matters described above will not have a material adverse effect on our results of operations, financial position or cash flows. | |
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | |||||||||||||||
Jan. 02, 2015 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||
Quarterly Financial Data | NOTE 18—QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||||||
The following is a summary of unaudited quarterly financial information for the periods indicated (in thousands, except per share data): | ||||||||||||||||
Quarters Ended | ||||||||||||||||
2-Jan-15 | 3-Oct-14 | 4-Jul-14 | 4-Apr-14 | 3-Jan-14 | 4-Oct-13 | 5-Jul-13 | 29-Mar-13 | |||||||||
Revenue | $ 131,126 | $ 143,612 | $ 147,761 | $ 140,056 | $ 145,993 | $ 152,644 | $ 144,834 | $ 131,724 | ||||||||
Gross profit | 78,193 | 83,849 | 85,808 | 78,905 | 81,145 | 84,636 | 79,893 | 70,933 | ||||||||
Net income (loss) | 17,274 | 13,887 | 13,646 | 10,005 | 7,508 | -8,178 | 1,002 | 2,522 | ||||||||
Income (loss) per share (basic): | 0.13 | 0.11 | 0.11 | 0.08 | 0.06 | -0.06 | 0.01 | 0.02 | ||||||||
Income (loss) per share (diluted): | 0.13 | 0.10 | 0.10 | 0.08 | 0.06 | -0.06 | 0.01 | 0.02 | ||||||||
Valuation_And_Qualifying_Accou
Valuation And Qualifying Accounts (Summary Of Valuation And Qualifying Accounts) | 12 Months Ended | ||||||||||
Jan. 02, 2015 | |||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||
Valuation and Qualifying Accounts | SCHEDULE II | ||||||||||
Valuation and Qualifying Accounts | |||||||||||
(in thousands) | |||||||||||
Valuation and qualifying accounts deducted from the assets to which they apply | Balance as of Beginning of Period | Additions Charged to Costs and Expenses | Additions Charged (Credited) to Other Accounts | Deduction from Allowances | Balance as of End of Period | ||||||
Allowance for uncollectible accounts | |||||||||||
2014 | $ 526 | $ 210 | $ (733) | $ - | $ 3 | ||||||
2013 | $ 26 | $ 1,319 | $ (819) | $ - | $ 526 | ||||||
2012 | $ 168 | $ (142) | $ - | $ - | $ 26 | ||||||
Sales returns and allowances | |||||||||||
2014 | $ 13,754 | $ 101,321 | $ - | $ (101,788) | $ 13,287 | ||||||
2013 | $ 14,865 | $ 86,520 | $ (599) | $ (87,032) | $ 13,754 | ||||||
2012 | $ 14,471 | $ 96,463 | $ 271 | $ (96,340) | $ 14,865 | ||||||
The additions charged to costs and expenses are classified as reduction of revenue for the allowance for uncollectible accounts and sales returns and allowances. | |||||||||||
Organization_And_Basis_Of_Pres1
Organization And Basis Of Presentation (Policy) | 12 Months Ended |
Jan. 02, 2015 | |
Organization And Basis Of Presentation [Abstract] | |
Fiscal Period | We utilize a 52/53 week fiscal year, ending on the nearest Friday to December 31. Fiscal year 2013 was a 53 week period with an extra week included in our second quarter. Quarterly or annual periods vary from exact calendar quarters or years. |
Consolidation | The consolidated financial statements include the accounts of Intersil and its subsidiaries. All intercompany accounts and transactions have been eliminated. |
Reclassifications | Reclassifications |
Certain prior year amounts have been reclassified to conform to current year presentation. | |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | |||||
Jan. 02, 2015 | ||||||
Significant Accounting Policies [Abstract] | ||||||
Cash and Cash Equivalents | Cash and Cash Equivalents—Cash equivalents consist of highly liquid investments with original maturities of three months or less at the time of purchase. Investments with original maturities over three months are classified as short-term investments. We determine the appropriate classification of our cash and cash equivalents at the time of purchase. | |||||
Short-Term Investments | Short-term Investments—Our short-term investments are considered available-for-sale. We record the unrealized gains and losses, net of tax, in shareholders’ equity as a component of accumulated other comprehensive income (“OCI”). We determine the cost of securities sold based on the specific identification method. Realized gains or losses are recorded in gains / loss on sale of investments and impairment losses that are determined to be other-than-temporary are recorded in other-than-temporary impairment losses in our consolidated statement of operations. | |||||
Non-Marketable Equity Securities | Non-Marketable Equity Securities—Non-marketable equity securities are accounted for at historical cost or, if we have significant influence over the investee, using the equity method of accounting. These investments are evaluated for impairment quarterly. Such analysis requires significant judgment to identify events or circumstances that would likely have a significant other than temporary adverse effect on the carrying value of the investment. | |||||
Deferred Compensation Plan Assets | Deferred Compensation Plan Assets—We have made available a non-qualified deferred compensation plan for certain eligible employees. Participants can direct the investment of their deferred compensation plan accounts from a portfolio of funds from which earnings are measured. Although participants direct the investment of these funds, they are classified as trading securities and are included in other non-current assets because they remain our assets until they are actually paid out to the participants. We maintain a portfolio of $11.1 million in mutual fund investments and corporate-owned life insurance under the plan. Changes in the fair value of the asset are recorded as a gain (loss) on deferred compensation investments and changes in the fair value of the liability are recorded as a component of compensation expense. In general, the compensation expense (benefit) is substantially offset by the gains and losses on the investment. During fiscal 2014, 2013 and 2012, we recorded gains on deferred compensation investments of $0.5 million, $1.5 million, and $0.9 million, respectively and compensation expense of $0.7 million, $1.7 million, and $1.1 million, respectively. | |||||
Fair Value Measurements | Fair Value Measurements—In order to determine the fair value of our assets and liabilities, we utilize three levels of inputs, focusing on the most observable inputs when available. Observable inputs are generally developed based on market data obtained from independent sources, whereas unobservable inputs reflect our assumptions about what market participants would use to value the asset or liability, based on the best information available in the circumstances. The three levels of inputs are as follows: | |||||
Level 1—Quoted prices in active markets which are unadjusted and accessible as of the measurement date for identical, unrestricted assets or liabilities; | ||||||
Level 2—Quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly; | ||||||
Level 3—Prices or valuations that require inputs that are unobservable and significant to the overall fair value measurement. | ||||||
If we use more than one level of input that significantly affects fair value, we include the fair value under the lowest input level used. | ||||||
Derivatives | Derivatives— We record the fair value of our derivative financial instruments in the consolidated financial statements in other current assets or other accrued expenses, regardless of the purpose or intent for holding the derivative contract. We account for these instruments based on whether they meet the criteria for designation as hedging transactions, either as cash flow or fair value hedges. A hedge of the exposure to variability in the cash flows of an asset or a liability, or of a forecasted transaction, is referred to as a cash flow hedge. A hedge of the exposure to changes in fair value of an asset or a liability, or of an unrecognized firm commitment, is referred to as a fair value hedge. The criteria for designating a derivative as a hedge include the instrument’s effectiveness in risk reduction and, in most cases, a one-to-one matching of the derivative instrument to its underlying transaction. | |||||
Changes in the fair value of derivative instruments designated as a cash flow hedge are recorded in OCI to the extent the derivative instrument is effective. Changes in the fair values of derivatives not designated for hedge accounting and any ineffectiveness measured in designated hedge transactions are reported in earnings as they occur. Gains and losses on derivatives not designated as hedges are recognized currently in earnings and generally offset changes in the values of related assets, liabilities or debt. Hedges on forecasted foreign cash flow commitments do not qualify for deferral, as the hedges are not related to a specific, identifiable transaction. Therefore, gains and losses on changes in the fair market value of the foreign exchange contracts are recognized currently in cost of revenue. | ||||||
The changes in the fair value of our interest rate swaps are recorded in OCI to the extent that the swap is effective. Any ineffectiveness will be recorded in income. We currently have no outstanding swap contracts in place. | ||||||
Trade Receivables, net | Trade Receivables, net —Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Accounts receivable are reduced by an allowance for doubtful accounts, which reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on the aging of our accounts receivable, historical experience, known troubled accounts, management judgment and other currently available evidence. When items are deemed uncollectible, we charge them against the allowance for collection losses. We provide for estimated losses from collection problems in the current period, as a component of revenue. We utilize credit limits, ongoing evaluation and trade receivable monitoring procedures to reduce the risk of credit loss. Credit is extended based on an evaluation of the customer’s financial condition and collateral is generally not required. Accounts receivable are also recorded net of sales returns and distributor allowances. These amounts are recorded when it is both probable and estimable that discounts will be granted or products will be returned. - Please see “Revenue Recognition” for further details. | |||||
Inventories | Inventories—Inventories are carried at the lower of standard cost (which approximates actual cost, determined by the first-in-first-out method) or market. The carrying value of our inventories is reduced for any difference between cost and estimated market value of inventories that is determined to be obsolete or unmarketable, based upon assumptions about future demand and market conditions. Inventory adjustments establish a new cost basis and are considered permanent even if circumstances later suggest that increased carrying amounts are recoverable. If demand is higher than expected, we may sell inventory that had previously been written down. | |||||
Property, Plant and Equipment | Property, Plant and Equipment—Buildings, machinery and equipment are carried at cost, less accumulated depreciation and impairment charges, if any. We expense repairs and maintenance costs that do not extend an asset’s useful life or increase an asset’s capacity. Depreciation is computed using the straight-line method over the estimated useful life of the asset. The estimated useful lives of buildings, which include leasehold improvements, range between 10 and 30 years, or over the lease period, whichever is shorter. The estimated useful lives of machinery and equipment range between three and eight years. We lease certain facilities under operating leases and record the effective rental expense in the appropriate period on the straight-line method. | |||||
Asset Impairment | Asset Impairment—We recognize impairment losses on long-lived assets when indicators of impairment exist and our estimate of undiscounted cash flows generated by those assets is less than the assets’ carrying amounts. The impairment loss is measured by comparing the fair value of the asset to its carrying amount. Fair value is estimated based on discounted future cash flows or market value, if available. Assets that qualify as held for sale are stated at the lower of the assets’ carrying amount or fair value and depreciation is no longer recognized. | |||||
Goodwill | Goodwill— Goodwill is an indefinite-lived intangible asset that is not amortized, but instead is tested for impairment annually or more frequently if indicators of impairment exist. | |||||
Purchased Intangibles | Purchased Intangibles—Purchased intangible assets with finite lives are carried at cost less accumulated amortization. Amortization is computed on a straight-line basis over their estimated useful lives. Purchased intangibles include intangible assets subject to amortization, which are our developed technologies, backlog, customer relationships and intellectual property. We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. We measure recoverability of long-lived assets by comparing the carrying amount of the asset group to the future undiscounted net cash flows expected to be generated by those assets. If such assets are considered to be impaired, we recognize an impairment charge for the amount by which the carrying amounts of the assets exceeds the fair value of the assets. | |||||
Income Taxes | Income Taxes—We follow the liability method of accounting for income taxes. Current income taxes payable and receivable and deferred income taxes resulting from temporary differences between the financial statements and the tax basis of assets and liabilities are separately classified on the consolidated balance sheets. | |||||
Uncertain Tax Positions and Unrecognized Tax Benefits | Uncertain tax positions and unrecognized tax benefits (“UTBs”)—We record our tax expense based on various probabilities of sustaining certain tax positions, using a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. We record our UTBs as a component of non-current income taxes payable, unless payment is expected within one year. | |||||
Applicable guidance requires us to record our tax expense based on various estimates of probabilities of sustaining certain tax positions. As a result of this and other factors, our estimate of tax expense could change. | ||||||
We classify accrued interest and penalties on income tax matters in the liabilities section of the balance sheet as non-current income taxes payable. When the interest and penalty portions of such uncertain tax positions are adjusted, it is classified as income tax expense. All of the uncertain tax positions and UTBs as of January 2, 2015 would impact our effective tax rate should they be recognized. | ||||||
In the ordinary course of business, the ultimate tax outcome of many transactions and calculations is uncertain, as the calculation of tax liabilities involves the application of complex tax laws in the United States, Malaysia and other jurisdictions. We recognize liabilities for additional taxes that may be due on tax audit issues based on an estimate of the ultimate resolution of those issues. Although we believe the estimates are reasonable, the final outcome may be different than amounts we estimate. Such determinations could have a material impact on the income tax expense (benefit), effective tax rate and operating results in the period they occur. In addition, the effective tax rate reflected in our forward-looking statements is based on current enacted tax laws in the jurisdictions in which we do business. Significant changes in enacted tax law could materially impact our estimates. | ||||||
Restructuring | Restructuring— We record restructuring charges when severance obligations are probable, reasonably estimable and the vested right attributable to the employees’ service is already rendered. We recognize a liability for costs associated with exit or disposal activities including costs associated with leases, when a liability is incurred rather than when an exit or disposal plan is approved. We continually evaluate the adequacy of the remaining liabilities under our restructuring initiatives. Although we believe that these estimates accurately reflect the costs of our restructuring plans, actual results may differ, thereby requiring us to record additional provisions or reverse a portion of such provisions. | |||||
Revenue Recognition | Revenue Recognition—Revenue is generally recognized when a product is shipped, provided that persuasive evidence of a sales arrangement exists, the price is fixed or determinable, title and risk has transferred, collection of resulting receivables is reasonably assured, there are no customer acceptance requirements and there are no remaining significant obligations. Customers typically provide a customer request date (“CRD”) which indicates the preferred date for receipt of the ordered products. Based on estimated transit time and other logistics, we may deliver products to the carrier in advance of the CRD and recognize revenue from the sale of such products at the time of shipment. We defer revenue recognition when the shipment occurs more than 10 days in advance of the CRD. | |||||
Shipments to distributors are made under agreements which provide for certain pricing adjustments (referred to as “ship and debit”) and limited product return privileges, under a stock rotation provision. The distributor may also receive additional price protection on a percentage of unsold inventories they hold. Accordingly, we make estimates of price adjustments based upon inventory reported by distributors as of the balance sheet date and record this as a distributor allowance. We rely on historical distributor allowances to estimate these adjustments. Distributors may also receive allowances for certain parts returned under a stock rotation provision of the distributor agreement. We estimate the stock rotation provision based on the percentage of sales made to distributors and historical returns. | ||||||
For certain distributors, we defer recognition until the distributors resell the products to their end customer (“sell-through distributor”). Revenue at published list price and cost of revenue to sell-through distributors are deferred until either the product is resold by the distributor or, in certain cases, return privileges terminate, at which time revenue and cost of revenue are recorded in the consolidated statement of operations. The final price is also subject to ship and debit credits, reducing the final amount recorded in revenue at resale. | ||||||
The following table summarizes the deferred income balance, primarily consisting of sell-through distributors (in thousands): | ||||||
As of January 2, 2015 | As of January 3, 2014 | |||||
Deferred revenue at published list price | $ | 14,546 | $ | 15,075 | ||
Deferred cost of revenue | $ | -2,915 | $ | -3,139 | ||
Deferred income | $ | 11,631 | $ | 11,936 | ||
Distributors provide us periodic data regarding the product, price, quantity, and end customer when products are resold as well as the quantities of our products they still have in stock. We must use estimates and apply judgment to reconcile distributors' reported inventories to their activities. Any error in our judgment could lead to inaccurate reporting of our revenue, cost of revenue, trade receivables, deferred income, and net income | ||||||
Warranty | Warranty—We provide for the estimated cost of product warranties at the time revenue is recognized. While we engage in extensive product quality programs and processes, including actively monitoring and evaluating the quality of our suppliers, the estimated warranty obligation is affected by ongoing product failure rates and material usage costs incurred in correcting a product failure. Actual product failure rates or material usage costs that differ from estimates result in revisions to the estimated warranty liability. We warrant for a limited period of time that our products will be free from defects in material workmanship and possess the electrical characteristics to which we have committed. We estimate warranty allowances based on historical warranty experience. Historically, warranty expenses were not material to our consolidated financial statements. | |||||
Research and Development | Research and Development—Research and development costs consist of the cost of designing, developing and testing new or significantly enhanced products and are expensed as incurred. | |||||
Advertising Expense | Advertising Expense—Advertising costs are expensed in the period incurred. Advertising expense was $4.2 million, $3.4 million, and $6.3 million in 2014, 2013 and 2012, respectively. | |||||
Equity-based Compensation | Equity-based Compensation—Our equity-based compensation plans allow several forms of equity compensation including stock options (“Options”), restricted and deferred stock awards (“Awards”) and employee stock purchase plans (“ESPPs”). The 2008 Equity Compensation Plan (“2008 Plan”) includes several available forms of stock compensation of which only Options and Awards have been granted to date. Awards issued consist of deferred stock units and restricted stock units, which may differ in regard to the timing of the related prospective taxable event to the recipient. | |||||
Additionally, we have an ESPP Plan (“2000 Plan”) whereby eligible employees can purchase shares of Intersil’s common stock through payroll deductions at a price not less than 85% of the market value of the stock on specified dates, with no look-back provision. | ||||||
Our plans allow employees an option to have awards withheld as a means of meeting minimum statutory tax withholding requirements. For the majority of awards granted, the number of shares issued on the date the awards vest is net of the minimum statutory withholding requirements that we pay in cash to the appropriate taxing authorities on behalf of our employees. In our consolidated financial statements, we treat shares withheld for tax purposes on behalf of our employees in connection with the vesting of awards as common stock repurchases because they reduce the number of shares that would have been issued upon vesting. Withheld shares are cancelled immediately and are not considered outstanding. | ||||||
Equity-based compensation cost is measured at the grant date, based on the fair value of the awards ultimately expected to vest, and is recognized as an expense, on a straight-line basis, over the requisite service period. We use a lattice method of valuation for estimating the grant date fair value of awards that include market-based vesting conditions. The compensation cost is amortized straight-line over the requisite service period. Calculating fair value requires us to estimate certain key assumptions in the valuation model, including expected stock price volatility, the risk-free interest rate in the market, expected life of the award, and annualized dividend yield. Volatility is one of the most significant determinants of fair value. We estimate our volatility using the actual historic volatility of our stock price. In case of awards that include market-based vesting conditions, our estimate for volatility includes actual historical volatility of stock prices of certain peer companies. We estimate our expected risk-free interest rate by using the zero-coupon U.S. Treasury rate at the time of the grant related to the expected life of the grant. Expected forfeitures must be estimated to offset the compensation cost expected to be recorded in the financial statements. We estimate forfeitures based on historical information about turnover for each appropriate employee level. We estimate the annualized dividend yield by dividing the current annualized dividend by the closing stock price on the date of grant. | ||||||
Most options vest 25% in the first year and quarterly thereafter for three or four years and generally have seven year contract lives. For Awards, the expected life for amortization of the grant date fair value is the vesting term, generally three years in the case of deferred stock units and four years in the case of restricted stock units. We issue new shares of common stock upon the exercise of Options. | ||||||
Grants with only a performance condition requirement are evaluated periodically for the estimated number of shares that might be issued when fully vested. The fair value measurement and its effect on income is then adjusted as a result of these periodic evaluations. If our estimate of the number of shares expected to be earned (vested) changes, we will be required to adjust the amount of equity-based compensation recognized for the service provided to the date of the change in estimate, on a cumulative basis, to reflect the higher or lower number of shares expected to vest. Such adjustments could materially increase or decrease the amount of equity-based compensation recognized in any period, particularly the period of the change in the estimate, and in aggregate as compared to the initial fair value measurement. Therefore, the use of performance-based forms of equity-based compensation can cause more volatility in our net income in various periods and in aggregate. We do not currently have any grants that include only a performance condition requirement. | ||||||
Loss Contingencies | Loss Contingencies—We estimate and accrue loss contingencies at the point that the losses become probable. For litigation, our practice is to include an estimate of legal costs for defense. | |||||
Retirement Benefits | Retirement Benefits—We sponsor a 401(K) savings and investment plan that allows eligible U.S employees to participate in making pre-tax contributions to the 401(K). We match the employee contributions on a dollar-for-dollar basis up to a certain predetermined percentage. Employees fully vest in the matching contributions after five years of service. We made matching contributions of $4.5 million, $5.4 million, and $6.2 million during fiscal years 2014, 2013, and 2012 respectively. | |||||
We have voluntary defined contribution plans in various non-U.S. locations. Further, we maintain a limited number of defined benefit plans for certain non-U.S. locations. Total costs under these plans were $0.8 million, $3.6 million, and $1.3 million during fiscal years 2014, 2013, and 2012 respectively. Accrued liabilities relating to these unfunded plans were $6.8 million and $7.5 million as of January 2, 2015 and January 3, 2014, respectively. | ||||||
Foreign Currency Translation | Foreign Currency Translation— For subsidiaries in which the functional currency is the local currency, gains and losses resulting from translation of foreign currency financial statements into U.S. dollars are recorded as a component of accumulated other comprehensive income. Cumulative translation adjustments in accumulated OCI were $0.9 million, $2.7 million, and $3.2 million as of January 2, 2015, January 3, 2014, and December 28, 2012, respectively. For subsidiaries where the functional currency is the U.S. dollar, gains and losses resulting from re-measuring transactions denominated in currencies other than the US dollar have not been significant for any period presented. | |||||
Segment Information | Segment Information—We report our results in one reportable segment. We design and develop innovative power management and precision analog integrated circuits (“ICs”). Our chief executive officer is our chief operating decision maker. | |||||
Use of Estimates | Use of Estimates—The financial statements have been prepared in conformity with accounting principles generally accepted in the United States and require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |||||
Recent Accounting Guidance | Recent Adopted Accounting Guidance | |||||
In July 2013, the FASB issued an accounting standard update that provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward or a tax credit carryforward exists. Under the new standard update, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, is to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward or a tax credit carryforward. This accounting standard update was effective for our first quarter of fiscal 2014 and applied prospectively. Impact of application of this accounting standard on our Consolidated Financial Statements as been discussed in Note 9 – Income Taxes. | ||||||
In July 2012, the FASB issued an accounting standard update intended to simplify how an entity tests indefinite-lived intangible assets and goodwill for impairment by providing entities with an option to perform a qualitative assessment to determine whether further impairment testing is necessary. This accounting standard update became effective for us beginning in the first quarter of fiscal 2014, and its adoption did not have any impact on our Consolidated Financial Statements. | ||||||
In December 2011, the Financial Accounting Standards Board (“FASB”) issued accounting standards update that requires additional disclosure to enhance the comparability of U.S. GAAP and International Financial Reporting Standards financial statements. In January 2013, the FASB issued Accounting Standards Update 2013-01 "Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities." This standard provided additional guidance on the scope of ASU 2011-11. Retrospective application is required and the guidance concerns disclosure only. The standard was effective for our first quarter of fiscal year 2013 and did not have a material impact on our financial statements. | ||||||
Recent Accounting Guidance Not Yet Adopted | ||||||
In June 2014, the FASB issued authoritative guidance that resolves the diverse accounting treatment for share-based payment awards that require a specific performance target to be achieved in order for employees to become eligible to vest in the awards. The guidance applies to entities that grant their employees share-based awards that include a performance target that could be achieved after the requisite service period. The guidance explicitly requires that a performance target of this nature be treated as a performance condition and should not be reflected in estimating the grant-date fair value of the award. We are currently evaluating the impact that this guidance will have on our financial condition and results of operations. | ||||||
On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for Intersil on December 31, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. | ||||||
In April 2014, the FASB issued authoritative guidance that raises the threshold for a disposal transaction to qualify as a discontinued operation and requires additional disclosures about discontinued operations and disposals of individually significant components that do not qualify as discontinued operations. This guidance will be effective prospectively for the first quarter of our fiscal year 2016, which will only affect any dispositions we may make after the effective date. | ||||||
In March 2013, the FASB issued an accounting standard update requiring an entity to release into net income the entire amount of a cumulative translation adjustment related to its investment in a foreign entity when as a parent it sells either a part or all of its investment in the foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets within the foreign entity. This accounting standard update is effective for the Company beginning in the first quarter of fiscal 2015. Upon adoption, the application of this accounting standard update did not have any impact to the Company's Consolidated Financial Statements. | ||||||
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | |||||
Jan. 02, 2015 | ||||||
Significant Accounting Policies [Abstract] | ||||||
Summary of Deferred Net Income | ||||||
As of January 2, 2015 | As of January 3, 2014 | |||||
Deferred revenue at published list price | $ | 14,546 | $ | 15,075 | ||
Deferred cost of revenue | $ | -2,915 | $ | -3,139 | ||
Deferred income | $ | 11,631 | $ | 11,936 | ||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||
Jan. 02, 2015 | ||||||||||
Fair Value Measurements [Abstract] | ||||||||||
Fair Value Of Financial Assets | ||||||||||
Fair value as of January 2, 2015 using: | ||||||||||
Total | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | ||||||||
Assets | ||||||||||
Other non-current assets: | ||||||||||
Deferred compensation investments | $ | 11,144 | $ | 353 | $ | 10,791 | ||||
Total assets measured at fair value | $ | 11,144 | $ | 353 | $ | 10,791 | ||||
Fair value as of January 3, 2014 using: | ||||||||||
Total | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | ||||||||
Assets | ||||||||||
Other non-current assets: | ||||||||||
Deferred compensation investments | $ | 11,579 | $ | 491 | $ | 11,088 | ||||
Total assets measured at fair value | $ | 11,579 | $ | 491 | $ | 11,088 | ||||
Recovered_Sheet2
Financial Instruments And Derivatives (Tables) | 12 Months Ended | |||||||
Jan. 02, 2015 | ||||||||
Derivative [Line Items] | ||||||||
ScheduleOfOpenForeignExchangeContracts | ||||||||
Year ended | ||||||||
28-Dec-12 | ||||||||
Unrealized (loss) gain on foreign exchange contracts | $ | -653 | ||||||
Purchases and sales of foreign exchange contracts | 31,428 | |||||||
Notional amount of open contracts as of year end | 12,429 | |||||||
Summary Of Notional Amount Of Open Foreign Exchange Contracts | ||||||||
Notional Amount of Open Foreign Currency Contracts | Euros | U.S. Dollars | Range of Maturities | |||||
28-Dec-12 | € | 10,000 | $ | 12,429 | 1 - 5 months | |||
Derivatives Designated As Hedging Instruments | ||||||||
Derivative [Line Items] | ||||||||
Effect of Derivatives in condensed Financial Statements | ||||||||
Year ended | ||||||||
Income statement location | 28-Dec-12 | |||||||
Interest rate swap agreements | ||||||||
Loss reclassified from accumulated OCI to earnings (effective portion) | Interest expense and fees | $ | -6,547 | |||||
Loss recognized in earnings (ineffective portion) | Interest expense and fees | $ | -95 | |||||
Derivatives Not Designated As Hedging Instruments | ||||||||
Derivative [Line Items] | ||||||||
Effect of Derivatives in condensed Financial Statements | ||||||||
Year ended | ||||||||
Income statement location | 28-Dec-12 | |||||||
Loss on foreign exchange options | Cost of revenue | -679 | ||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||
Jan. 02, 2015 | ||||||
Inventories [Abstract] | ||||||
Schedule Of Inventories | ||||||
As of | As of | |||||
2-Jan-15 | 3-Jan-14 | |||||
Finished products | $ | 22,758 | $ | 20,783 | ||
Work in process | 47,083 | 38,759 | ||||
Raw materials | 3,929 | 2,866 | ||||
Total inventories | $ | 73,770 | $ | 62,408 | ||
Property_Plant_And_Equipment_T
Property, Plant And Equipment (Tables) | 12 Months Ended | |||||
Jan. 02, 2015 | ||||||
Property, Plant and Equipment [Abstract] | ||||||
Property, Plant And Equipment | ||||||
As of | As of | |||||
2-Jan-15 | 3-Jan-14 | |||||
Land | $ | 1,708 | $ | 1,708 | ||
Buildings and leasehold improvements | 60,728 | 59,743 | ||||
Machinery and equipment | 264,325 | 244,940 | ||||
Construction in progress | 5,914 | 21,956 | ||||
Total property, plant and equipment | 332,675 | 328,347 | ||||
Accumulated depreciation and leasehold amortization | -260,403 | -246,480 | ||||
Total property, plant and equipment, net | $ | 72,272 | $ | 81,867 | ||
Goodwill_And_Purchased_Intangi1
Goodwill And Purchased Intangibles (Tables) | 12 Months Ended | ||||||||
Jan. 02, 2015 | |||||||||
Goodwill And Purchased Intangibles [Abstract] | |||||||||
Amortization Expense | |||||||||
Year Ended | |||||||||
By statement of operations line item | 2-Jan-15 | 3-Jan-14 | 28-Dec-12 | ||||||
Amortization of purchased intangibles | $ | 22,241 | $ | 24,579 | $ | 29,185 | |||
Summary Of Changes In Net Goodwill Balance For Reportable Segment | |||||||||
Gross goodwill balance as of January 2, 2015 and January 3, 2014 | $ | 1,720,100 | |||||||
Accumulated impairment charge | -1,154,676 | ||||||||
Net goodwill balance as of January 2, 2015 and January 3, 2014 | $ | 565,424 | |||||||
Purchased Intangibles | |||||||||
As of January 2, 2015 | |||||||||
Definite-lived: developed technologies | Definite-lived: other | Total purchased intangibles | |||||||
Gross carrying amount | $ | 89,700 | $ | 44,200 | $ | 133,900 | |||
Accumulated amortization | 66,654 | 32,846 | 99,500 | ||||||
Purchased intangibles, net | $ | 23,046 | $ | 11,354 | $ | 34,400 | |||
As of January 3, 2014 | |||||||||
Definite-lived: developed technologies | Definite-lived: other | Total purchased intangibles | |||||||
Gross carrying amount | $ | 105,981 | $ | 48,599 | $ | 154,580 | |||
Accumulated amortization | 68,730 | 29,209 | 97,939 | ||||||
Purchased intangibles, net | $ | 37,251 | $ | 19,390 | $ | 56,641 | |||
Expected Amortization Expense | |||||||||
To be recognized in: | |||||||||
Fiscal year 2015 | $ | 16,717 | |||||||
Fiscal year 2016 | 9,010 | ||||||||
Fiscal year 2017 | 6,757 | ||||||||
Fiscal year 2018 | 1,916 | ||||||||
Total expected amortization expense | $ | 34,400 | |||||||
Restructuring_and_Related_Cost1
Restructuring and Related Costs (Tables) | 12 Months Ended | ||
Jan. 02, 2015 | |||
Restructuring and Related Costs [Abstract] | |||
Summary Restructuring Related Costs | |||
Balance as of January 3, 2014 | $ | 6,063 | |
Costs incurred / (adjustments) | |||
Severance costs | -138 | ||
Lease exit costs | 604 | ||
Other costs | 53 | ||
Cash payments | |||
Severance payments | -4,748 | ||
Lease exit payments | -1,020 | ||
Other payments | -76 | ||
Balance as of January 2, 2015 | $ | 738 | |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Jan. 02, 2015 | ||||||||||||
Income Taxes [Abstract] | ||||||||||||
Summary of Income Before Income Taxes Allocated Between Domestic and Foreign Jurisidictions | ||||||||||||
Year Ended | ||||||||||||
2-Jan-15 | 3-Jan-14 | 28-Dec-12 | ||||||||||
Domestic | $ | 51,959 | $ | 22,140 | $ | 12,394 | ||||||
Foreign | 22,574 | -8,263 | -20,060 | |||||||||
Income (loss) before income taxes | $ | 74,533 | $ | 13,877 | $ | -7,666 | ||||||
Components of Income Tax Expense (Benefit) | ||||||||||||
Year Ended | ||||||||||||
2-Jan-15 | 3-Jan-14 | 28-Dec-12 | ||||||||||
Current taxes: | ||||||||||||
Federal | $ | -14,366 | $ | -2,090 | $ | 10,300 | ||||||
State | -865 | 34 | 3,638 | |||||||||
Foreign | -617 | 2,879 | 2,042 | |||||||||
-15,848 | 823 | 15,980 | ||||||||||
Deferred taxes: | ||||||||||||
Federal | 23,337 | 11,911 | 20,329 | |||||||||
State | 2,536 | 545 | -4,871 | |||||||||
Foreign | 9,696 | -2,257 | -1,455 | |||||||||
35,569 | 10,199 | 14,003 | ||||||||||
Income tax expense | $ | 19,721 | $ | 11,022 | $ | 29,983 | ||||||
Operating Benefit Under the Tax Holiday | ||||||||||||
Year Ended | ||||||||||||
2-Jan-15 | 3-Jan-14 | 28-Dec-12 | ||||||||||
Tax effects from earnings / (losses) attributable to Malaysia | $ | 5,611 | $ | -2,483 | $ | -5,132 | ||||||
Effect on earnings (loss) per share: | ||||||||||||
Basic | $ | 0.04 | $ | -0.02 | $ | -0.04 | ||||||
Diluted | $ | 0.04 | $ | -0.02 | $ | -0.04 | ||||||
Deferred Tax Assets and Liabilities | ||||||||||||
As of January 2, 2015 | As of January 3, 2014 | |||||||||||
Current | Non-Current | Current | Non-Current | |||||||||
Inventory | $ | 14,170 | $ | - | $ | 14,561 | $ | - | ||||
Property, plant and equipment | - | 4,158 | - | 3,445 | ||||||||
Accrued expenses | 4,869 | - | 5,343 | - | ||||||||
Equity-based compensation | - | 6,561 | - | 8,095 | ||||||||
Net operating loss carryforward | 1,025 | 19,766 | 1,285 | 23,327 | ||||||||
Capitalized research and development | - | 797 | - | 2,142 | ||||||||
Deferred compensation | - | 3,187 | - | 3,477 | ||||||||
Deferred revenue | 4,179 | - | 4,285 | - | ||||||||
Tax credits | - | 39,122 | 7,483 | 52,262 | ||||||||
Capital loss carryforward | - | 6,628 | - | 7,263 | ||||||||
Other, net | 458 | 3,824 | 480 | 4,388 | ||||||||
Deferred tax assets | 24,701 | 84,043 | 33,437 | 104,399 | ||||||||
Valuation allowance | -4,268 | -44,709 | -11,109 | -31,391 | ||||||||
Net deferred tax assets | $ | 20,433 | $ | 39,334 | $ | 22,328 | $ | 73,008 | ||||
Summary of Valuation Allowance | ||||||||||||
As of January 2, 2015 | As of January 3, 2014 | |||||||||||
Beginning balance | $ | 42,500 | $ | 44,156 | ||||||||
(Decreases) related to state attributes | -48 | -1,537 | ||||||||||
Increases related to foreign net operating losses | 7,160 | - | ||||||||||
Decreases related to capital losses | -635 | -119 | ||||||||||
Ending balance | $ | 48,977 | $ | 42,500 | ||||||||
Income Tax Rate Reconciliation | ||||||||||||
Year Ended | ||||||||||||
2-Jan-15 | January 3, | 28-Dec-12 | ||||||||||
2014 | ||||||||||||
Statutory U.S. income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||||||
Income tax provision reconciliation: | ||||||||||||
Tax at federal statutory income tax rate | $ | 26,087 | $ | 4,857 | $ | -2,683 | ||||||
State taxes | 1,356 | 1,198 | 997 | |||||||||
(Benefit) / Cost of earnings subject to tax rates other than U.S. | -7,918 | 3,505 | 7,293 | |||||||||
International equity-based compensation | 748 | 2,422 | 2,951 | |||||||||
Research credits | -4,608 | -10,313 | -3,910 | |||||||||
Change in unrecognized tax benefits | 2,765 | 116 | 20,675 | |||||||||
Subpart F—interest & stock gain | 437 | 326 | 621 | |||||||||
Manufacturing deduction | -675 | -370 | -100 | |||||||||
Amortization of deferred tax charge | -2,964 | -2,964 | -2,967 | |||||||||
Tax shortfalls on share based compensation | 1,381 | 3,277 | - | |||||||||
Export compliance settlement | 1,400 | 2,100 | - | |||||||||
Interest | - | 779 | - | |||||||||
Royalty income | 5,215 | 5,557 | 6,504 | |||||||||
Other items | -3,503 | 532 | 602 | |||||||||
Total income tax provision | $ | 19,721 | $ | 11,022 | $ | 29,983 | ||||||
Summary Of Activity In Unrecognized Tax Benefits Resulting From Uncertain Tax Positions | ||||||||||||
As of January 2, 2015 | As of January 3, 2014 | |||||||||||
Beginning balance (includes interest and penalties of $7,102 thousand as of January 3, 2014 | $ | 99,343 | $ | 112,867 | ||||||||
Increases related to current year tax positions | 1,152 | 1,157 | ||||||||||
Increases related to prior year tax positions | 2,515 | 10,874 | ||||||||||
Settlements with tax authorities | -24,804 | -25,555 | ||||||||||
Ending balance (includes $7,538 thousand of interest and penalties as of January 2, 2015) | $ | 78,206 | $ | 99,343 | ||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||
Jan. 02, 2015 | ||||
Long Term Debt [Abstract] | ||||
Schedule Of Cash Paid For Interest | ||||
Year Ended | ||||
28-Dec-12 | ||||
(in thousands) | ||||
Cash paid for interest | $ | 3,907 | ||
Weighted-average interest rate (pre-tax) | 2.48 | % | ||
Common_Stock_And_Dividends_Tab
Common Stock And Dividends (Tables) | 12 Months Ended | ||||||||
Jan. 02, 2015 | |||||||||
Common Stock And Dividends [Abstract] | |||||||||
Share Activity For Class A Common Stock | |||||||||
Year Ended | |||||||||
January 2, | January 3, | 28-Dec-12 | |||||||
2015 | 2014 | ||||||||
Beginning balance | 127,715 | 126,250 | 126,483 | ||||||
Shares issued under stock plans, net of shares withheld for taxes | 2,502 | 1,465 | 1,667 | ||||||
Repurchase and retirement of common stock | - | - | -1,900 | ||||||
Ending balance | 130,217 | 127,715 | 126,250 | ||||||
Dividends paid to shareholders | $ | 61,960 | $ | 61,025 | $ | 60,955 | |||
Dividends paid per share | $ | 0.48 | $ | 0.48 | $ | 0.48 | |||
Risks_And_Uncertainties_Tables
Risks And Uncertainties (Tables) | 12 Months Ended | |||||||||||
Jan. 02, 2015 | ||||||||||||
Risks And Uncertainties [Abstract] | ||||||||||||
Operations By Geographic Area | ||||||||||||
Fiscal Year | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United States operations | ||||||||||||
Revenue | $ | 101,268 | $ | 90,348 | $ | 85,356 | ||||||
Tangible long-lived assets | $ | 55,681 | $ | 59,469 | $ | 54,048 | ||||||
International operations | ||||||||||||
Revenue | $ | 461,287 | $ | 484,847 | $ | 522,508 | ||||||
Tangible long-lived assets | $ | 16,591 | $ | 22,398 | $ | 31,326 | ||||||
Sales By Country | ||||||||||||
Fiscal Year | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Revenue by country | ||||||||||||
China | 50.9 | % | 52.9 | % | 55.4 | % | ||||||
United States | 18.1 | % | 15.7 | % | 14.0 | % | ||||||
Earnings_Loss_Per_Share_Tables
Earnings (Loss) Per Share (Tables) | 12 Months Ended | ||||||||
Jan. 02, 2015 | |||||||||
Earnings (Loss) Per Share [Abstract] | |||||||||
Computation Of Basic And Diluted (Loss) Earnings Per Share | |||||||||
Year Ended | |||||||||
2-Jan-15 | 3-Jan-14 | 28-Dec-12 | |||||||
Numerator: | |||||||||
Net income (loss) to common shareholders | $ | 54,812 | $ | 2,855 | $ | -37,649 | |||
Denominator: | |||||||||
Denominator for basic earnings (loss) per share—weighted average common shares | 129,149 | 127,151 | 127,032 | ||||||
Effect of stock options and awards | 3,508 | 847 | - | ||||||
Denominator for diluted earnings (loss) per share—adjusted weighted average common shares | 132,657 | 127,998 | 127,032 | ||||||
Earnings (loss) per share: | |||||||||
Basic | $ | 0.42 | $ | 0.02 | $ | -0.3 | |||
Diluted | $ | 0.41 | $ | 0.02 | $ | -0.3 | |||
Anti-dilutive shares not included in the above calculations: | |||||||||
Awards | 242 | 1,181 | 3,367 | ||||||
Options | 1,128 | 6,774 | 11,946 | ||||||
EquityBased_Compensation_Table
Equity-Based Compensation (Tables) | 12 Months Ended | |||||||||||||||
Jan. 02, 2015 | ||||||||||||||||
Equity-Based Compensation [Abstract] | ||||||||||||||||
Summary Of Equity Compensation Arrangement | ||||||||||||||||
Equity Compensation Arrangement | Total Number of Shares in Arrangement | Shares Outstanding as of January 2, 2015 | Shares Available for Issuance at January 2, 2015 | |||||||||||||
1999 Plan | 36,250 | 196 | - | |||||||||||||
2008 Plan | 46,229 | 9,219 | 18,096 | |||||||||||||
2009 Option Exchange Plan | 2,914 | 894 | - | |||||||||||||
Inducement Plan | 433 | 325 | - | |||||||||||||
ESPP | 9,033 | - | 2,989 | |||||||||||||
94,859 | 10,634 | 21,085 | ||||||||||||||
Fair Value Assumptions In Lattice Model For Options Awarded | ||||||||||||||||
Year Ended | ||||||||||||||||
2-Jan-15 | 3-Jan-14 | |||||||||||||||
Expected volatilities | 32.20% | 38.20% | ||||||||||||||
Dividend yields | 3.60% | 5.70% | ||||||||||||||
Risk-free interest rate | 0.80% | 0.60% | ||||||||||||||
Expected lives, in years | 2.6 | 2.6 | ||||||||||||||
Summary Of Weighted-Average Fair Value Compensation Cost Per Share Of Awards Granted | ||||||||||||||||
Year Ended | ||||||||||||||||
2-Jan-15 | 3-Jan-14 | 28-Dec-12 | ||||||||||||||
Options | $ | 2.18 | $ | 1.67 | $ | 2.55 | ||||||||||
Awards | $ | 13.12 | $ | 8.58 | $ | 9.14 | ||||||||||
Aggregate | $ | 12.76 | $ | 7.94 | $ | 5.62 | ||||||||||
Equity-Based Compensation Summary | ||||||||||||||||
Options | Awards | Aggregate information | ||||||||||||||
Shares | Weighted-average exercise price | Weighted-average remaining contract lives | Shares | Aggregate intrinsic value | Aggregate unrecognized compensation cost | |||||||||||
(in thousands) | (per share) | (in years) | (in thousands) | (in thousands) | (in thousands) | |||||||||||
Outstanding as of December 30, 2011 | 13,948 | $ | 16.21 | 4.1 | 3,678 | |||||||||||
Granted (1) | 2,420 | 10.47 | 2,117 | |||||||||||||
Exercised (4) | -85 | 6.48 | -1,164 | |||||||||||||
Canceled | -4,337 | 16.79 | -1,264 | |||||||||||||
Outstanding as of December 28, 2012 | 11,946 | $ | 14.90 | 3.7 | 3,367 | |||||||||||
Granted (2) | 340 | 8.38 | 3,334 | |||||||||||||
Exercised (4) | -106 | 8.34 | -931 | |||||||||||||
Canceled | -4,684 | 16.89 | -1,166 | |||||||||||||
Outstanding as of January 3, 2014 | 7,496 | $ | 13.46 | 3.3 | 4,604 | |||||||||||
Granted (3) | 70 | 13.45 | 6.8 | 2,109 | ||||||||||||
Exercised (4) | -1,205 | 12.36 | 3.1 | -1,153 | ||||||||||||
Canceled | -978 | 19.28 | 0.7 | -309 | ||||||||||||
Outstanding as of January 2, 2015 | 5,383 | $ | 12.65 | 2.9 | 5,251 | $ | 91,358 | $ | 30,454 | |||||||
As of January 2, 2015: | ||||||||||||||||
Exercisable/vested (4) | 4,667 | $ | 12.86 | 2.7 | 67 | $ | 12,596 | |||||||||
Vested and expected to vest | 5,277 | $ | 12.69 | 2.9 | 3,986 | $ | 72,327 | |||||||||
-1 | Grants include 833,204 MSU Options and 380,821 MSU Awards issued in fiscal 2012. | |||||||||||||||
-2 | Grants include 784,000 MSU Awards issued in fiscal 2013. | |||||||||||||||
-3 | Grans include 433,564 MSU Awards issued in fiscal 2014. | |||||||||||||||
-4 | Awards exercised are those that have reached full vested status and been delivered to the recipients as a taxable event due to elective deferral available in the case of deferred stock units. Deferred stock units for which the deferral is elected timely are vested but still outstanding as Awards. Total un-issued shares related to deferred stock units as of January 2, 2015, were 66,670 shares as shown in the Awards column as Exercisable/vested. | |||||||||||||||
Equity-Based Compensation, Additional Disclosures | ||||||||||||||||
Additional Disclosures | Year Ended | |||||||||||||||
2-Jan-15 | 3-Jan-14 | 28-Dec-12 | ||||||||||||||
($ in thousands, share data in thousands) | ||||||||||||||||
Shares issued under the employee stock purchase plan | 495 | 712 | 813 | |||||||||||||
Aggregate intrinsic value of stock options exercised | $ | 2,445 | $ | 175 | $ | 281 | ||||||||||
Summary Of Number And Weighted-Average Grant Date Fair Values Of Unexercisable And Unvested Options And Awards | ||||||||||||||||
Options Unvested | Options-Weighted Average Grant Date Fair Values | Awards Unvested | Awards-Weighted Average Grant Date Fair Values | |||||||||||||
Unvested as of January 3, 2014 | 1,355 | $ | 2.86 | 4,530 | $ | 9.53 | ||||||||||
Granted | 70 | 2.18 | 2,109 | 13.12 | ||||||||||||
Vested | -614 | 3.15 | -1,146 | 11.52 | ||||||||||||
Forfeited | -94 | 2.97 | -309 | 10.24 | ||||||||||||
Unvested as of January 2, 2015 | 717 | $ | 2.86 | 5,184 | $ | 10.51 | ||||||||||
Equity-Based Compensation Expense | ||||||||||||||||
Year Ended | ||||||||||||||||
2-Jan-15 | 3-Jan-14 | 28-Dec-12 | ||||||||||||||
By statement of operations line item | ||||||||||||||||
Cost of revenue | $ | 1,326 | $ | 1,387 | $ | 1,634 | ||||||||||
Research and development | $ | 8,468 | $ | 7,777 | $ | 11,304 | ||||||||||
Selling, general and administrative | $ | 8,894 | $ | 9,927 | $ | 11,670 | ||||||||||
By stock type | ||||||||||||||||
Stock options | $ | 1,189 | $ | 4,690 | $ | 9,426 | ||||||||||
Restricted and deferred stock awards | $ | 16,493 | $ | 13,378 | $ | 14,037 | ||||||||||
Employee stock purchase plan | $ | 1,006 | $ | 1,023 | $ | 1,145 | ||||||||||
As of January 2, 2015 | As of January 03, 2014 | |||||||||||||||
(in thousands) | ||||||||||||||||
Equity-based compensation capitalized in inventory | $ | - | $ | 341 | ||||||||||||
Performance-Based Grants | ||||||||||||||||
As of January 2, 2015 | ||||||||||||||||
Options | Awards | |||||||||||||||
(in thousands) | ||||||||||||||||
Performance and market-based units outstanding | 368 | 1,343 | ||||||||||||||
Maximum shares that could be issued assuming the highest level of performance | 551 | 2,396 | ||||||||||||||
Performance and market-based shares expected to vest | 208 | 1,768 | ||||||||||||||
Amount to be recognized as compensation cost over the performance period | 1,510 | 10,616 | ||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||
Jan. 02, 2015 | ||||||
Commitments and Contingencies [Abstract] | ||||||
Schedule Of Future Contractual Obligations And Off Balance Sheet Arrangements | ||||||
Future minimum lease commitments | Non-cancelable purchase commitments | |||||
2015 | $ | 7,704 | $ | 98,587 | ||
2016 | 6,969 | 985 | ||||
2017 | 6,329 | 2,399 | ||||
2018 | 6,031 | 1,237 | ||||
Thereafter | 6,033 | 513 | ||||
Total future minimum commitments | $ | 33,066 | $ | 103,721 | ||
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | |||||||||||||||
Jan. 02, 2015 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||
Summary of Unaudited Quarterly Financial Information | ||||||||||||||||
Quarters Ended | ||||||||||||||||
2-Jan-15 | 3-Oct-14 | 4-Jul-14 | 4-Apr-14 | 3-Jan-14 | 4-Oct-13 | 5-Jul-13 | 29-Mar-13 | |||||||||
Revenue | $ 131,126 | $ 143,612 | $ 147,761 | $ 140,056 | $ 145,993 | $ 152,644 | $ 144,834 | $ 131,724 | ||||||||
Gross profit | 78,193 | 83,849 | 85,808 | 78,905 | 81,145 | 84,636 | 79,893 | 70,933 | ||||||||
Net income (loss) | 17,274 | 13,887 | 13,646 | 10,005 | 7,508 | -8,178 | 1,002 | 2,522 | ||||||||
Income (loss) per share (basic): | 0.13 | 0.11 | 0.11 | 0.08 | 0.06 | -0.06 | 0.01 | 0.02 | ||||||||
Income (loss) per share (diluted): | 0.13 | 0.10 | 0.10 | 0.08 | 0.06 | -0.06 | 0.01 | 0.02 | ||||||||
Significant_Accounting_Policie3
Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | ||
Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | |
segment | |||
Significant Accounting Policies [Line Items] | |||
Fair value measurement of assets | $11,144,000 | $11,579,000 | |
Gain on deferred compensation investments, net | 500,000 | 1,500,000 | 900,000 |
Deferred Compensation expense | 700,000 | 1,700,000 | 1,100,000 |
Advertising expense | 4,200,000 | 3,400,000 | 6,300,000 |
Percentage of grants vesting in first year | 25.00% | ||
Accrued liabilities relating to unfunded plans | 6,800,000 | 7,500,000 | |
Cumulative translation adjustments in AOCI | 900,000 | 2,700,000 | 3,200,000 |
Number of reportable segments | 1 | ||
Deferred Stock Units [Member] | |||
Significant Accounting Policies [Line Items] | |||
Expected life for amortization of grant date fair value (in years) | 3 years | ||
Restricted Stock Units (RSUs) [Member] | |||
Significant Accounting Policies [Line Items] | |||
Expected life for amortization of grant date fair value (in years) | 4 years | ||
Employee Stock Purchase Plan [Member] | |||
Significant Accounting Policies [Line Items] | |||
Percentage of stock market price paid by employees on date of purchase | 85.00% | ||
Options [Member] | |||
Significant Accounting Policies [Line Items] | |||
Options contract period (in years) | 7 years | ||
Options [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Expected life for amortization of grant date fair value (in years) | 4 years | ||
Options [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Expected life for amortization of grant date fair value (in years) | 3 years | ||
Defined Contribution Pension [Member] | |||
Significant Accounting Policies [Line Items] | |||
Vesting period | 5 years | ||
Retirement plans expense | 4,500,000 | 5,400,000 | 6,200,000 |
Pension Plan, Defined Benefit [Member] | |||
Significant Accounting Policies [Line Items] | |||
Retirement plans expense | $800,000 | $3,600,000 | $1,300,000 |
Buildings And Leasehold Improvements [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 30 years | ||
Buildings And Leasehold Improvements [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 8 years | ||
Machinery and Equipment [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years |
Significant_Accounting_Policie4
Significant Accounting Policies (Summary Of Deferred Net Revenue) (Details) (USD $) | Jan. 02, 2015 | Jan. 03, 2014 |
In Thousands, unless otherwise specified | ||
Significant Accounting Policies [Abstract] | ||
Deferred revenue at published list price | $14,546 | $15,075 |
Deferred cost of revenue | -2,915 | -3,139 |
Deferred Income Total | $11,631 | $11,936 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Jan. 02, 2015 | Jan. 03, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation investments | $11,144 | $11,579 |
Total assets measured at fair value | 11,144 | 11,579 |
Fair value transfers of assets from level 1 to level 2 | 0 | 0 |
Fair value transfers of assets from level 2 to level 1 | 0 | 0 |
Fair value transfers of liabilities from level 1 to level 2 | 0 | 0 |
Fair value transfers of liabilities from level 2 to level 1 | 0 | 0 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation investments | 353 | 491 |
Total assets measured at fair value | 353 | 491 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation investments | 10,791 | 11,088 |
Total assets measured at fair value | $10,791 | $11,088 |
Financial_Instruments_And_Deri1
Financial Instruments And Derivatives (Narrative) (Details) | 12 Months Ended | 3 Months Ended | ||||
Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | Dec. 28, 2012 | Oct. 03, 2011 | Dec. 28, 2012 | |
USD ($) | USD ($) | USD ($) | EUR (€) | Interest Rate Swap Agreements | Reclassification out of Accumulated Other Comprehensive Income [Member] | |
USD ($) | USD ($) | |||||
Derivative [Line Items] | ||||||
Notional amount | $12,429,000 | € 10,000,000 | $150,000,000 | |||
Interest expense | 1,742,000 | 1,901,000 | 12,291,000 | 5,800,000 | ||
Settlement of swaps | $3,700,000 |
Financial_Instruments_And_Deri2
Financial Instruments And Derivatives (Effect Of Derivatives In Condensed Financial Statements) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 28, 2012 |
Derivative Instruments and Hedges, Assets [Abstract] | |
Loss reclassified from accumulated OCI to earnings (effective portion) | ($6,547) |
Loss recognized in earnings (ineffective portion) | ($95) |
Financial_Instruments_And_Deri3
Financial Instruments And Derivatives (Effects Of Derivatives Not Designated As Hedging Instruments On Consolidated Statement Of Operations) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 28, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |
Loss on foreign exchange options | ($653) |
Cost of Revenue [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Loss on foreign exchange options | ($679) |
Financial_Instruments_And_Deri4
Financial Instruments And Derivatives (Summary Of Open Foreign Exchange Contracts) (Details) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2012 | Dec. 28, 2012 |
USD ($) | EUR (€) | |
Derivative Instruments and Hedges, Assets [Abstract] | ||
Unrealized (loss) gain on foreign exchange options | ($653) | |
Purchases and sales of foreign exchange contracts | 31,428 | |
Notional amount | $12,429 | € 10,000 |
Financial_Instruments_And_Deri5
Financial Instruments And Derivatives (Notional Amount Of Open Foreign Currency Contracts) (Details) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 02, 2015 | Dec. 28, 2012 | Dec. 28, 2012 |
USD ($) | EUR (€) | ||
Derivative Instruments and Hedges, Assets [Abstract] | |||
Derivative, Lower Remaining Maturity Range | 1 month | ||
Derivative, Higher Remaining Maturity Range | 5 months | ||
Notional amount of open foreign currency contracts | $12,429 | € 10,000 |
Inventories_Narrative_Details
Inventories (Narrative) (Details) (Inventories [Member], USD $) | Jan. 02, 2015 |
In Millions, unless otherwise specified | |
Inventories [Member] | |
Long-term Purchase Commitment [Line Items] | |
Purchase Commitment, Remaining Minimum Amount Committed | $18.50 |
Inventories_Details
Inventories (Details) (USD $) | Jan. 02, 2015 | Jan. 03, 2014 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ||
Finished products | $22,758 | $20,783 |
Work in process | 47,083 | 38,759 |
Raw materials | 3,929 | 2,866 |
Total inventories | $73,770 | $62,408 |
Property_Plant_And_Equipment_N
Property, Plant And Equipment (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $19.40 | $19 | $19.50 |
Capital expenditures included in accounts payable | 0 | 1.5 | |
Capital Addition Purchase Commitments [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Purchase Commitment, Remaining Minimum Amount Committed | $1.30 |
Property_Plant_And_Equipment_S
Property, Plant And Equipment (Summary Of Property, Plant And Equipment) (Details) (USD $) | Jan. 02, 2015 | Jan. 03, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | $332,675 | $328,347 |
Accumulated depreciation and leasehold amortization | -260,403 | -246,480 |
Property, Plant and Equipment, Net, Total | 72,272 | 81,867 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 1,708 | 1,708 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 60,728 | 59,743 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 264,325 | 244,940 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | $5,914 | $21,956 |
Goodwill_And_Purchased_Intangi2
Goodwill And Purchased Intangibles (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jan. 03, 2014 | Oct. 04, 2013 | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
item | item | segment | |||
Finite-Lived Intangible Assets [Line Items] | |||||
Number of reportable segments | 1 | ||||
Number of reporting units | 4 | 3 | |||
Impairment of goodwill | $0 | $0 | $0 | ||
Impairment of Intangible Assets, Finite-lived | $0 | $1,800 | |||
Definite-Lived: Developed Technologies [Member] | Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite Lived Intangible Asset Useful Life | 5 years | ||||
Definite-Lived: Other [Member] | Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite Lived Intangible Asset Useful Life | 4 years | ||||
Definite-Lived: Other [Member] | Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite Lived Intangible Asset Useful Life | 7 years |
Goodwill_And_Purchased_Intangi3
Goodwill And Purchased Intangibles (Summary Of Changes in Net Goodwill Balance) (Details) (USD $) | Jan. 02, 2015 | Jan. 03, 2014 |
In Thousands, unless otherwise specified | ||
Goodwill And Purchased Intangibles [Abstract] | ||
Gross goodwill balance as of beginning of period | $1,720,100 | |
Accumulated impairment charge | -1,154,676 | |
Net goodwill balance as of beginning of period | $565,424 | $565,424 |
Goodwill_And_Purchased_Intangi4
Goodwill And Purchased Intangibles (Purchased Intangibles) (Details) (USD $) | Jan. 02, 2015 | Jan. 03, 2014 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $133,900 | $154,580 |
Accumulated amortization | 99,500 | 97,939 |
Total expected amortization expense | 34,400 | 56,641 |
Definite-Lived: Developed Technologies [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 89,700 | 105,981 |
Accumulated amortization | 66,654 | 68,730 |
Total expected amortization expense | 23,046 | 37,251 |
Definite-Lived: Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 44,200 | 48,599 |
Accumulated amortization | 32,846 | 29,209 |
Total expected amortization expense | $11,354 | $19,390 |
Goodwill_And_Purchased_Intangi5
Goodwill And Purchased Intangibles (Amortization Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Goodwill And Purchased Intangibles [Abstract] | |||
Amortization of purchased intangibles | $22,241 | $24,579 | $29,185 |
Goodwill_And_Purchased_Intangi6
Goodwill And Purchased Intangibles (Expected Amortization Expense) (Details) (USD $) | Jan. 02, 2015 | Jan. 03, 2014 |
In Thousands, unless otherwise specified | ||
Goodwill And Purchased Intangibles [Abstract] | ||
Fiscal year 2015 | $16,717 | |
Fiscal year 2016 | 9,010 | |
Fiscal year 2017 | 6,757 | |
Fiscal year 2018 | 1,916 | |
Total expected amortization expense | $34,400 | $56,641 |
Restructuring_and_Related_Cost2
Restructuring and Related Costs (Narrative) (Details) | 12 Months Ended |
Jan. 02, 2015 | |
Restructuring activity from the February 2013 plan [member] | |
Restructuring and Related Cost [Abstract] | |
Restructuring and Related Cost, Number of Positions Eliminated, Period Percent | 18.00% |
Restructuring Activity From October 2013 Plan [Member] | |
Restructuring and Related Cost [Abstract] | |
Restructuring and Related Cost, Number of Positions Eliminated, Period Percent | 1.00% |
Restructuring activity from the July 2013 plan [Member] | |
Restructuring and Related Cost [Abstract] | |
Restructuring and Related Cost, Number of Positions Eliminated, Period Percent | 12.00% |
Restructuring_and_Related_Cost3
Restructuring and Related Costs (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2014 | Dec. 28, 2012 | Jan. 02, 2015 |
Restructuring and Related Cost [Abstract] | |||
Costs incurred / (adjustments) | $28,694 | $10,490 | |
Balance as of January 2, 2015 | 6,063 | 738 | |
Employee Severance [Member] | |||
Restructuring and Related Cost [Abstract] | |||
Costs incurred / (adjustments) | -138 | ||
Cash payments | -4,748 | ||
Lease Exit [Member] | |||
Restructuring and Related Cost [Abstract] | |||
Costs incurred / (adjustments) | 604 | ||
Cash payments | -1,020 | ||
Other Restructuring [Member] | |||
Restructuring and Related Cost [Abstract] | |||
Costs incurred / (adjustments) | 53 | ||
Cash payments | ($76) |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | |
Income Taxes [Line Items] | |||
Tax benefit from exercise of stock options | $2,400,000 | $1,300,000 | $1,600,000 |
Net operating losses from acquisitions | 38,800,000 | ||
Gross federal R&D credit carryforwards | 13,800,000 | ||
Decrease to deferred tax assets as a result of ASU No. 2013-11 | 15,400,000 | ||
Potential interest and penalties on unrecognized tax benefits | 400,000 | 1,800,000 | |
Potential interest on unrecognized tax benefits | -6,100,000 | ||
Potential penalties on unrecognized tax benefits | -600,000 | ||
Settlements with tax authorities | 24,804,000 | 25,555,000 | |
Cash payment from settlement with tax authorities | 500,000 | 900,000 | 13,500,000 |
Estimated change in unrecognized tax benefits | 20,000,000 | ||
Income taxes paid | 29,000,000 | 16,600,000 | 49,400,000 |
Accumulated undistributed earnings from international subsidiaries | 366,800,000 | ||
Income tax expense resulting from tax deficiencies related to equity-based compensation | 1,400,000 | 3,300,000 | 0 |
Tax Years 2010 to 2012 [Member] | Internal Revenue Service (IRS) [Member] | |||
Income Taxes [Line Items] | |||
Settlements with tax authorities | 16,400,000 | ||
Cash payment from settlement with tax authorities | 5,600,000 | ||
Decrease in deferred tax assets related to federal R&D tax credits | 4,200,000 | ||
Decreases related to settlements with tax authorities | 6,600,000 | ||
Tax Years 2009 to 2012 [Member] | Swiss Federal Tax Administration (FTA) [Member] | |||
Income Taxes [Line Items] | |||
Settlements with tax authorities | 7,500,000 | ||
Cash payment from settlement with tax authorities | 2,700,000 | ||
Cash payment due to additional tax from settlement with tax authorities | 2,400,000 | ||
Cash payment due to interest from settlement with tax authorities | 300,000 | ||
Decrease in deferred tax asset related to net operating loss | 4,800,000 | ||
Tax Years 2008-2009 [Member] | Internal Revenue Service (IRS) [Member] | |||
Income Taxes [Line Items] | |||
Cash payment from settlement with tax authorities | 300,000 | ||
Estimated change in unrecognized tax benefits | 300,000 | ||
Tax Years 2005-2007 [Member] | Internal Revenue Service (IRS) [Member] | |||
Income Taxes [Line Items] | |||
Cash payment from settlement with tax authorities | 600,000 | ||
Estimated change in unrecognized tax benefits | 100,000 | ||
Tax Years 2010 to 2011 [Member] | Internal Revenue Service (IRS) [Member] | |||
Income Taxes [Line Items] | |||
Estimated change in unrecognized tax benefits | 2,500,000 | ||
Foreign Net Operating Losses [Member] | |||
Income Taxes [Line Items] | |||
Increase (decrease) in valuation allowance | 7,160,000 | ||
Capital Losses [Member] | |||
Income Taxes [Line Items] | |||
Increase (decrease) in valuation allowance | ($635,000) | ($119,000) |
Income_Taxes_Summary_Of_Income
Income Taxes (Summary Of Income Before Income Taxes Allocated Between Domestic and Foreign Jurisdictions) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Income Taxes [Abstract] | |||
Domestic | $51,959 | $22,140 | $12,394 |
Foreign | 22,574 | -8,263 | -20,060 |
Income (loss) before income taxes | $74,533 | $13,877 | ($7,666) |
Income_Taxes_Components_Of_Inc
Income Taxes (Components Of Income Tax Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Income Taxes [Abstract] | |||
Federal | ($14,366) | ($2,090) | $10,300 |
State | -865 | 34 | 3,638 |
Foreign | -617 | 2,879 | 2,042 |
Current Income Tax Expense (Benefit), Total | -15,848 | 823 | 15,980 |
Federal | 23,337 | 11,911 | 20,329 |
State | 2,536 | 545 | -4,871 |
Foreign | 9,696 | -2,257 | -1,455 |
Total deferred income tax expense | 35,569 | 10,199 | 14,003 |
Income tax expense | $19,721 | $11,022 | $29,983 |
Income_Taxes_Summary_Of_Tax_Ho
Income Taxes (Summary Of Tax Holiday Operating Benefits) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Income Taxes [Abstract] | |||
Tax effects from earnings / (losses) attributable to Malaysia | $5,611 | ($2,483) | ($5,132) |
Income tax holidy, effect on earnings per share, basic | $0.04 | ($0.02) | ($0.04) |
Income tax holidy, effect on earnings per share, diluted | $0.04 | ($0.02) | ($0.04) |
Income Tax Holiday, Termination Date | 1-Jul-19 | ||
Income Tax Holiday Tax Rate | 0.00% |
Income_Taxes_Deferred_Tax_Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) (USD $) | Jan. 02, 2015 | Jan. 03, 2014 |
In Thousands, unless otherwise specified | ||
Income Taxes [Abstract] | ||
Inventory: current | $14,170 | $14,561 |
Property, plant and equipment: non-current | 4,158 | 3,445 |
Accrued expenses: current | 4,869 | 5,343 |
Equity-based compensation: non-current | 6,561 | 8,095 |
Net operating loss carryforward, current | 1,025 | 1,285 |
Net operating loss carryforward, noncurrent | 19,766 | 23,327 |
Capitalized research and development: non-current | 797 | 2,142 |
Deferred compensation: non-current | 3,187 | 3,477 |
Deferred revenue: current | 4,179 | 4,285 |
Tax credits: current | 7,483 | |
Tax credits: noncurrent | 39,122 | 52,262 |
Capital loss carryforward: non-current | 6,628 | 7,263 |
Other, net: current | 458 | 480 |
Other, net: non-current | 3,824 | 4,388 |
Deferred tax assets: current | 24,701 | 33,437 |
Deferred tax assets: non-current | 84,043 | 104,399 |
Valuation allowance: current | -4,268 | -11,109 |
Valuation allowance: non-current | -44,709 | -31,391 |
Net deferred tax assets: current | 20,433 | 22,328 |
Net deferred tax assets: non-current | $39,334 | $73,008 |
Income_Taxes_Summary_Of_Valuat
Income Taxes (Summary Of Valuation Allowance) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Valuation Allowance [Line Items] | |||
Balance as of beginning of period | $44,156 | ||
Balance as of end of period | 48,977 | 42,500 | 44,156 |
State Attributes [Member] | |||
Valuation Allowance [Line Items] | |||
Increase (decrease) in valuation allowance | -48 | -1,537 | |
Foreign Net Operating Losses [Member] | |||
Valuation Allowance [Line Items] | |||
Increase (decrease) in valuation allowance | 7,160 | ||
Capital Losses [Member] | |||
Valuation Allowance [Line Items] | |||
Increase (decrease) in valuation allowance | ($635) | ($119) |
Income_Taxes_Income_Tax_Rate_R
Income Taxes (Income Tax Rate Reconciliation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Income Taxes [Abstract] | |||
Statutory U.S. income tax rate | 35.00% | 35.00% | 35.00% |
Tax at federal statutory income tax rate | $26,087 | $4,857 | ($2,683) |
State taxes | 1,356 | 1,198 | 997 |
(Benefit) / Cost of earnings subject to tax rates other than U.S. | -7,918 | 3,505 | 7,293 |
International equity-based compensation | 748 | 2,422 | 2,951 |
Research credits | -4,608 | -10,313 | -3,910 |
Change in unrecognized tax benefits | 2,765 | 116 | 20,675 |
Subpart F interest & stock gain | 437 | 326 | 621 |
Manufacturing deduction | -675 | -370 | -100 |
Amortization of deferred tax charge | -2,964 | -2,964 | -2,967 |
Tax shortfalls on share based compensation | 1,381 | 3,277 | |
Export compliance settlement | 1,400 | 2,100 | |
Interest | 779 | ||
Royalty Income | 5,215 | 5,557 | 6,504 |
Other items | -3,503 | 532 | 602 |
Income tax expense | $19,721 | $11,022 | $29,983 |
Income_Taxes_Summary_Of_Activi
Income Taxes (Summary Of Activity In Unrecognized Tax Benefits Resulting From Uncertain Tax Positions) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 |
Income Taxes [Abstract] | ||
Beginning balance (includes $7,102 of interest and penalties as of January 3, 2014) | $99,343 | $112,867 |
Increases related to current year tax positions | 1,152 | 1,157 |
Increases related to prior year tax positions | 2,515 | 10,874 |
Settlements with tax authorities | -24,804 | -25,555 |
Ending balance (includes $7,538 of interest and penalties as of January 2, 2015) | 78,206 | 99,343 |
Interest and penalties | $7,538 | $7,102 |
LongTerm_Debt_Narrative_Detail
Long-Term Debt (Narrative) (Details) (USD $) | 12 Months Ended | ||
Jan. 02, 2015 | Jan. 03, 2014 | Dec. 30, 2011 | |
Debt Instrument [Line Items] | |||
Term of credit facility | 5 years | ||
Debt instrument, issuance date | 1-Sep-11 | ||
Senior secured revolving credit facility | $325,000,000 | ||
Senior secured term-loan facility | 300,000,000 | ||
Previous revolving credit facility | 75,000,000 | ||
Facility maturity date | 1-Sep-16 | ||
Debt Instrument Basis Spread On Variable Rate | 0.50% | ||
Payment of credit facility fees | 900,000 | ||
Outstanding letters of credit | 1,400,000 | 1,400,000 | |
Standby Letters of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Senior secured revolving credit facility | 25,000,000 | ||
Previous Term-Loan Facility | |||
Debt Instrument [Line Items] | |||
Term of credit facility | 6 years | ||
Increase in revolving credit facility | 75,000,000 | ||
Swing Line Loans | |||
Debt Instrument [Line Items] | |||
Senior secured revolving credit facility | 10,000,000 | ||
Multicurrency Borrowings | |||
Debt Instrument [Line Items] | |||
Senior secured revolving credit facility | $50,000,000 | ||
Eurodollar Borrowing Period One [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Borrowing Period | 1 month | ||
Eurodollar Borrowing Period Two [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Borrowing Period | 2 months | ||
Eurodollar Borrowing Period Three [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Borrowing Period | 3 months | ||
Eurodollar Borrowing Period Four [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Borrowing Period | 6 months | ||
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Borrowing Period | 12 months | ||
Eurocurrency Rate Loans | |||
Debt Instrument [Line Items] | |||
Debt Instrument Basis Spread On Variable Rate | 1.00% | ||
Eurocurrency Rate Loans | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Revolving loans applicable rate | 1.75% | ||
Eurocurrency Rate Loans | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Revolving loans applicable rate | 2.75% | ||
Base Rate Loans | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Revolving loans applicable rate | 0.75% | ||
Base Rate Loans | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Revolving loans applicable rate | 1.75% |
LongTerm_Debt_Schedule_Of_Cash
Long-Term Debt (Schedule Of Cash Paid For Interest) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 28, 2012 |
Long Term Debt [Abstract] | |
Cash paid for interest | $3,907 |
Weighted-average interest rate (pre-tax) | 2.48% |
Income_From_Intellectual_Prope1
Income From Intellectual Property ("IP") Agreements (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2012 | Sep. 28, 2012 |
Income From Intellectual Property ("IP") Agreements [Abstract] | ||
Sale of patents | $1 | |
Income from intellectual property agreement, gross | 20 | |
Intellectual property agreement costs | $6.60 |
Common_Stock_And_Dividends_Nar
Common Stock And Dividends (Narrative) (Details) (USD $) | 12 Months Ended | ||
Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | |
Dividends Payable [Line Items] | |||
Class A common stock, shares authorized | 600,000,000 | 600,000,000 | 600,000,000 |
Class A common stock, par value | $0.01 | $0.01 | |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 | |
Preferred stock, shares outstanding | 0 | 0 | |
Cash dividends declared per common share | $0.48 | $0.48 | $0.48 |
Installment Q1 FY2015 [Member] | |||
Dividends Payable [Line Items] | |||
Cash dividends declared per common share | $0.12 | ||
Installment FY2015 [Member] | |||
Dividends Payable [Line Items] | |||
Cash dividends declared per common share | $0.48 |
Common_Stock_And_Dividends_Sha
Common Stock And Dividends (Share Activity For Class A Common Stock) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Common Stock And Dividends [Abstract] | |||
Beginning balance | 127,714,810 | 126,250,000 | 126,483,000 |
Shares issued under stock plans, net of shares withheld for taxes | 2,502,000 | 1,465,000 | 1,667,000 |
Repurchase and retirement of common stock | -1,900,000 | ||
Ending balance | 130,216,901 | 127,714,810 | 126,250,000 |
Dividends paid to shareholders | $61,960 | $61,025 | $60,955 |
Dividends paid per share | $0.48 | $0.48 | $0.48 |
Risks_And_Uncertainties_Narrat
Risks And Uncertainties (Narrative) (Details) | 12 Months Ended | ||
Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | |
Revenue [Member] | Supplier Concentration Risk [Member] | Avnet [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 18.40% | 17.00% | 14.90% |
Revenue [Member] | Supplier Concentration Risk [Member] | WPG Holdings Ltd [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 10.80% | 12.20% | 12.80% |
Trade Receivable [Member] | Supplier Concentration Risk [Member] | Avnet [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 24.40% | 24.60% | |
Trade Receivable [Member] | Supplier Concentration Risk [Member] | WPG Holdings Ltd [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 7.70% | 13.80% | |
Wafers [Member] | Supplier Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 86.90% | ||
KOREA, REPUBLIC OF | Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 1.00% | ||
JAPAN | Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 1.00% | ||
TAIWAN, PROVINCE OF CHINA | Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 1.00% | ||
GERMANY | Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 1.00% | ||
SINGAPORE | Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 1.00% | ||
THAILAND | Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 1.00% |
Risks_And_Uncertainties_Sales_
Risks And Uncertainties (Sales By Country) (Details) (Revenue [Member]) | 12 Months Ended | ||
Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | |
China [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 50.90% | 52.90% | 55.40% |
United States [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 18.10% | 15.70% | 14.00% |
Risks_And_Uncertainties_Operat
Risks And Uncertainties (Operations By Geographic Area) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $562,555 | $575,195 | $607,864 |
Tangible long-lived assets | 72,272 | 81,867 | |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 101,268 | 90,348 | 85,356 |
Tangible long-lived assets | 55,681 | 59,469 | 54,048 |
International Operations [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 461,287 | 484,847 | 522,508 |
Tangible long-lived assets | $16,591 | $22,398 | $31,326 |
Earnings_Loss_Per_Share_Detail
Earnings (Loss) Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 02, 2015 | Oct. 03, 2014 | Jul. 04, 2014 | Apr. 04, 2014 | Jan. 03, 2014 | Oct. 04, 2013 | Jul. 05, 2013 | Mar. 29, 2013 | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Net income (loss) to common shareholders | $54,812 | $2,855 | ($37,649) | ||||||||
Denominator for basic earnings (loss) per share-weighted average common shares | 129,149 | 127,151 | 127,032 | ||||||||
Effect of stock options and awards | 3,508 | 847 | |||||||||
Denominator for diluted earnings (loss) per share adjusted-weighted average common shares | 132,657 | 127,998 | 127,032 | ||||||||
Basic | $0.13 | $0.11 | $0.11 | $0.08 | $0.06 | ($0.06) | $0.01 | $0.02 | $0.42 | $0.02 | ($0.30) |
Diluted | $0.13 | $0.10 | $0.10 | $0.08 | $0.06 | ($0.06) | $0.01 | $0.02 | $0.41 | $0.02 | ($0.30) |
Awards [Member] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Anti-dilutive shares not included in the above calculations | 242 | 1,181 | 3,367 | ||||||||
Options [Member] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Anti-dilutive shares not included in the above calculations | 1,128 | 6,774 | 11,946 |
EquityBased_Compensation_Summa
Equity-Based Compensation (Summary Of Equity Compensation Arrangement) (Details) | Jan. 02, 2015 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total Number of Shares in Arrangement | 94,859,000 |
Shares Outstanding | 10,634,000 |
Shares Available for Issuance | 21,085,000 |
1999 Plan [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total Number of Shares in Arrangement | 36,250,000 |
Shares Outstanding | 196,000 |
2008 Plan [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total Number of Shares in Arrangement | 46,229,000 |
Shares Outstanding | 9,219,000 |
Shares Available for Issuance | 18,096,000 |
2009 Option Exchange Plan [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total Number of Shares in Arrangement | 2,914,000 |
Shares Outstanding | 894,000 |
Inducement Plan [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total Number of Shares in Arrangement | 433,000 |
Shares Outstanding | 325,000 |
Employee Stock Purchase Plan [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total Number of Shares in Arrangement | 9,033,000 |
Shares Available for Issuance | 2,989,000 |
EquityBased_Compensation_Fair_
Equity-Based Compensation (Fair Value Assumptions In Lattice Model For Options Awarded) (Details) | 12 Months Ended | |
Jan. 02, 2015 | Jan. 03, 2014 | |
Equity-Based Compensation [Abstract] | ||
Expected volatilities | 32.20% | 38.20% |
Dividend yields | 3.60% | 5.70% |
Risk-free interest rate | 0.80% | 0.60% |
Expected lives, in years | 2 years 7 months 6 days | 2 years 7 months 6 days |
EquityBased_Compensation_Summa1
Equity-Based Compensation (Summary Of Weighted-Average Fair Value Compensation Cost Per Share Of Awards Granted) (Details) (USD $) | 12 Months Ended | ||
Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | |
Equity-Based Compensation [Abstract] | |||
Weighted-average fair value compensation cost per share of Options | $2.18 | $1.67 | $2.55 |
Weighted-average fair value compensation cost per share of Awards | $13.12 | $8.58 | $9.14 |
Weighted-average fair value compensation cost per share of Options and Awards | $12.76 | $7.94 | $5.62 |
EquityBased_Compensation_Equit
Equity-Based Compensation (Equity Based Compensation Summary) (Details) (USD $) | 12 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | Dec. 30, 2011 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares, Beginning balance | 7,496,000 | 11,946,000 | 13,948,000 | ||||
Shares, Granted | 70,000 | [1],[2] | 340,000 | [3] | 2,420,000 | ||
Shares, Exercised | -1,205,000 | [4] | -106,000 | [4] | -85,000 | [4] | |
Shares, Canceled | -978,000 | -4,684,000 | -4,337,000 | ||||
Shares, Outstanding, Ending balance | 5,383,000 | 7,496,000 | 11,946,000 | 13,948,000 | |||
Shares, Exercisable/vested | 4,667,000 | [4] | |||||
Shares, Number vested and expected to ultimately vest | 5,277,000 | ||||||
Options, Weighted-average exercise price (per share), Outstanding, beginning balance | $13.46 | $14.90 | $16.21 | ||||
Options, Weighted-average exercise price (per share), Granted | $13.45 | [1],[2] | $8.38 | [3] | $10.47 | ||
Options, Weighted-average exercise price (per share), Exercised | $12.36 | [4] | $8.34 | [4] | $6.48 | [4] | |
Options, Weighted-average exercise price (per share), Canceled | $19.28 | $16.89 | $16.79 | ||||
Options, Weighted-average exercise price (per share), Outstanding, ending balance | $12.65 | $13.46 | $14.90 | $16.21 | |||
Options, Weighted-average exercise price (per share), Exercisable/vested | $12.86 | [4] | |||||
Options, Weighted-average exercise price (per share), Number vested and expected to ultimately vest | $12.69 | ||||||
Options, Weighted-average remaining contract lives (in years), Outstanding. beginning balance | 2 years 10 months 24 days | 3 years 3 months 18 days | 3 years 8 months 12 days | 4 years 1 month 6 days | |||
Options, Weighted-average remaining contract lives (in years), Granted | 6 years 9 months 18 days | [1],[2] | |||||
Options, Weighted-average remaining contract lives (in years), Exercised | 3 years 1 month 6 days | [4] | |||||
Options, Weighted-average remaining contract lives (in years), Canceled | 8 months 12 days | ||||||
Options, Weighted-average remaining contract lives (in years), Outstanding, ending balance | 2 years 10 months 24 days | 3 years 3 months 18 days | 3 years 8 months 12 days | 4 years 1 month 6 days | |||
Options, Weighted-average remaining contract lives (in years), Exercisable/vested | 2 years 8 months 12 days | [4] | |||||
Options, Weighted-average remaining contract lives (in years), Number vested and expected to ultimately vest | 2 years 10 months 24 days | ||||||
Awards, Shares, Outstanding, Beginning balance | 4,604,000 | 3,367,000 | 3,678,000 | ||||
Awards, Shares, Granted | 2,109,000 | [1],[2] | 3,334,000 | [3] | 2,117,000 | ||
Awards, Shares, Exercised | -1,153,000 | [4] | -931,000 | [4] | -1,164,000 | [4] | |
Awards, Shares, Canceled | -309,000 | -1,166,000 | -1,264,000 | ||||
Awards, Shares, Outstanding, Ending Balance | 5,251,000 | 4,604,000 | 3,367,000 | 3,678,000 | |||
Awards, Shares, Exercisable/Vested | 66,670 | [4] | |||||
Awards, Shares, Number vested and expected to ultimately vest | 3,986,000 | ||||||
Awards, Aggregate intrinsic value, Outstanding | $91,358 | ||||||
Awards, Aggregate intrinsic value, Exercisable/vested | 12,596 | [4] | |||||
Awards, Aggregate intrinsic value, Vested and expected to vest | 72,327 | ||||||
Aggregate unrecognized compensation cost, Outstanding | $30,454 | ||||||
Share-based compensation arrangement by share-based payment award, unrecognized compensation cost expected period for recognition | 3 years 6 months | ||||||
Weighted-average recognition period of unrecognized compensation cost, years | 1 year 6 months | ||||||
MSU Awards [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares issued under plan | 433,564 | 784,000 | 380,821 | ||||
MSU Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares issued under plan | 833,204 | ||||||
[1] | Grants include 784,000 MSU Awards issued in fiscal 2013. | ||||||
[2] | Grans include 433,564 MSU Awards issued in fiscal 2014. | ||||||
[3] | Grants include 833,204 MSU Options and 380,821 MSU Awards issued in fiscal 2012. | ||||||
[4] | Awards exercised are those that have reached full vested status and been delivered to the recipients as a taxable event due to elective deferral available in the case of deferred stock units. Deferred stock units for which the deferral is elected timely are vested but still outstanding as Awards. Total un-issued shares related to deferred stock units as of January 2, 2015, were 66,670 shares as shown in the Awards column as Exercisable/vested. |
EquityBased_Compensation_Equit1
Equity-Based Compensation (Equity-Based Compensation, Additional Disclosures) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Equity-Based Compensation [Abstract] | |||
Shares issued under the employee stock purchase plan | 495 | 712 | 813 |
Aggregate intrinsic value of stock options exercised | $2,445 | $175 | $281 |
EquityBased_Compensation_Summa2
Equity-Based Compensation (Summary Of Number And Weighted-Average Grant Date Fair Values Of Unexercisable And Unvested Options And Awards) (Details) (USD $) | 12 Months Ended | ||||
Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | |||
Equity-Based Compensation [Abstract] | |||||
Options Unvested | 1,355,000 | ||||
Shares, Granted | 70,000 | [1],[2] | 340,000 | [3] | 2,420,000 |
Vested | -614,000 | ||||
Forfeited | -94,000 | ||||
Options Unvested | 717,000 | 1,355,000 | |||
Options, Weighted Average Grant Date Fair Values, Unvested | 2.86 | ||||
Weighted-average fair value compensation cost per share of Options | $2.18 | $1.67 | $2.55 | ||
Options-Weighted Average Grant Date Fair Values, Vested | 3.15 | ||||
Options-Weighted Average Grant Date Fair Values, Forfeited | 2.97 | ||||
Options-Weighted Average Grant Date Fair Values, Unvested | 2.86 | 2.86 | |||
Awards, Shares, Outstanding, Beginning balance | 4,530,000 | ||||
Awards Unvested, Granted | 2,109,000 | [1],[2] | 3,334,000 | [3] | 2,117,000 |
Awards, Shares, Exercised | -1,146,000 | ||||
Awards, Shares, Canceled | -309,000 | -1,166,000 | -1,264,000 | ||
Awards, Shares, Outstanding, Ending Balance | 5,184,000 | 4,530,000 | |||
Awards, Weighted Average Grant Date Fair Values, Unvested | $9.53 | ||||
Awards, Weighted Average Grant Date Fair Values, Granted | $13.12 | $8.58 | $9.14 | ||
Awards, Weighted Average Grant Date Fair Values, Vested | $11.52 | ||||
Awards, Weighted Average Grant Date Fair Values, Forfeited | $10.24 | ||||
Awards, Weighted Average Grant Date Fair Values, Unvested | $10.51 | $9.53 | |||
[1] | Grants include 784,000 MSU Awards issued in fiscal 2013. | ||||
[2] | Grans include 433,564 MSU Awards issued in fiscal 2014. | ||||
[3] | Grants include 833,204 MSU Options and 380,821 MSU Awards issued in fiscal 2012. |
EquityBased_Compensation_Equit2
Equity-Based Compensation (Equity-Based Compensation Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Equity-based compensation capitalized in inventory | $341 | ||
Options [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Equity-based compensation expense | 1,189 | 4,690 | 9,426 |
Awards [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Equity-based compensation expense | 16,493 | 13,378 | 14,037 |
Employee Stock Purchase Plan [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Equity-based compensation expense | 1,006 | 1,023 | 1,145 |
Cost of Revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Equity-based compensation expense | 1,326 | 1,387 | 1,634 |
Research and Development Expense [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Equity-based compensation expense | 8,468 | 7,777 | 11,304 |
Selling, General and Administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Equity-based compensation expense | $8,894 | $9,927 | $11,670 |
EquityBased_Compensation_Marke
Equity-Based Compensation (Market and Performance-Based Grants) (Details) (USD $) | Jan. 02, 2015 |
In Thousands, unless otherwise specified | |
Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance and market-based units outstanding | 368 |
Maximum shares that could be issued assuming the highest level of performance and market | 551 |
Performance and market-based shares expected to vest | 208 |
Amount to be recognized as compensation cost over the performance period | $1,510 |
Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance and market-based units outstanding | 1,343 |
Maximum shares that could be issued assuming the highest level of performance and market | 2,396 |
Performance and market-based shares expected to vest | 1,768 |
Amount to be recognized as compensation cost over the performance period | $10,616 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narrative) (Details) (USD $) | 12 Months Ended | ||
Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | |
Commitments and Contingencies [Abstract] | |||
Rent expense | $7,700,000 | $8,800,000 | $11,000,000 |
Total future minimum lease commitments | $33,066,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Schedule Of Future Contractual Obligations And Off Balance Sheet Arrangements) (Details) (USD $) | Jan. 02, 2015 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies [Abstract] | |
Future minimum lease commitments due 2015 | $7,704 |
Future minimum lease commitments due 2016 | 6,969 |
Future minimum lease commitments due 2017 | 6,329 |
Future minimum lease commitments due 2018 | 6,031 |
Future minimum lease commitments due thereafter | 6,033 |
Total future minimum lease commitments | 33,066 |
Non-cancelable purchase commitments due 2015 | 98,587 |
Non-cancelable purchase commitments due 2016 | 985 |
Non-cancelable purchase commitments due 2017 | 2,399 |
Non-cancelable purchase commitments due 2018 | 1,237 |
Non-cancelable purchase commitments due thereafter | 513 |
Total non-cancelable purchase commitments | $103,721 |
Litigation_Matters_Details
Litigation Matters (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | ||
Jan. 02, 2015 | Jan. 03, 2014 | Jun. 30, 2013 | Apr. 04, 2014 | Oct. 04, 2013 | |
Loss Contingencies [Line Items] | |||||
Provision for export compliance settlement | $4,000,000 | $6,000,000 | |||
Consent Agreement [Member] | |||||
Loss Contingencies [Line Items] | |||||
Charge recorded from legal matters | 4,000,000 | 6,000,000 | |||
Payments for legal matters | 10,000,000 | 3,000,000 | |||
Accrual for loss contingency | 3,000,000 | ||||
Taos Plaintiff [Member] | |||||
Loss Contingencies [Line Items] | |||||
Maximum potential loss | $49,000,000 |
Quarterly_Financial_Data_Summa
Quarterly Financial Data (Summary Of Unaudited Quarterly Financial Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 02, 2015 | Oct. 03, 2014 | Jul. 04, 2014 | Apr. 04, 2014 | Jan. 03, 2014 | Oct. 04, 2013 | Jul. 05, 2013 | Mar. 29, 2013 | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Quarterly Financial Data [Abstract] | |||||||||||
Revenue | $131,126 | $143,612 | $147,761 | $140,056 | $145,993 | $152,644 | $144,834 | $131,724 | |||
Gross Profit | 78,193 | 83,849 | 85,808 | 78,905 | 81,145 | 84,636 | 79,893 | 70,933 | 326,755 | 316,607 | 330,166 |
Income (loss) per share (basic): | $0.13 | $0.11 | $0.11 | $0.08 | $0.06 | ($0.06) | $0.01 | $0.02 | $0.42 | $0.02 | ($0.30) |
Income (loss) per share (diluted): | $0.13 | $0.10 | $0.10 | $0.08 | $0.06 | ($0.06) | $0.01 | $0.02 | $0.41 | $0.02 | ($0.30) |
Net (loss) income | $17,274 | $13,887 | $13,646 | $10,005 | $7,508 | ($8,178) | $1,002 | $2,522 |
Valuation_And_Qualifying_Accou1
Valuation And Qualifying Accounts (Summary Of Valuation And Qualifying Accounts) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Allowance For Uncollectible Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation Allowances and Reserves, Balance, Beginning Balance | $526 | $26 | $168 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 210 | 1,319 | -142 |
Valuation Allowances and Reserves, Charged to Other Accounts | -733 | -819 | |
Valuation Allowances and Reserves, Balance, Ending Balance | 3 | 526 | 26 |
Allowance for Sales Returns [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation Allowances and Reserves, Balance, Beginning Balance | 13,754 | 14,865 | 14,471 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 101,321 | 86,520 | 96,463 |
Valuation Allowances and Reserves, Charged to Other Accounts | -599 | 271 | |
Valuation Allowances and Reserves, Deductions | -101,788 | -87,032 | -96,340 |
Valuation Allowances and Reserves, Balance, Ending Balance | $13,287 | $13,754 | $14,865 |