Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 01, 2016 | Feb. 05, 2016 | Jul. 03, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 1, 2016 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ISIL | ||
Entity Registrant Name | INTERSIL CORP/DE | ||
Entity Central Index Key | 1,096,325 | ||
Current Fiscal Year End Date | --01-01 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 132,766,569 | ||
Entity Public Float | $ 1.6 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Consolidated Statement Of Income [Abstract] | |||
Revenue | $ 521,616 | $ 562,555 | $ 575,195 |
Cost of revenue | 213,820 | 235,800 | 258,588 |
Gross profit | 307,796 | 326,755 | 316,607 |
Operating costs and expenses: | |||
Research and development | 126,350 | 125,851 | 130,541 |
Selling, general and administrative | 96,963 | 99,926 | 113,333 |
Amortization of purchased intangibles | 17,625 | 22,241 | 24,579 |
Restructuring and related costs | 28,694 | ||
Provision for export compliance settlement | 4,000 | 6,000 | |
Provision for TAOS litigation | 81,100 | ||
Operating (loss) income | (14,242) | 74,737 | 13,460 |
Interest expense and other | (1,415) | (1,742) | (1,901) |
Gain on investments, net | 885 | 1,538 | 2,318 |
(Loss) income before taxes | (14,772) | 74,533 | 13,877 |
Income tax (benefit) expense | (21,958) | 19,721 | 11,022 |
Net income | $ 7,186 | $ 54,812 | $ 2,855 |
Earnings per share | |||
Basic | $ 0.05 | $ 0.42 | $ 0.02 |
Diluted | 0.05 | 0.41 | 0.02 |
Cash dividends declared per common share | $ 0.48 | $ 0.48 | $ 0.48 |
Weighted average common shares outstanding: | |||
Basic | 131,793 | 129,149 | 127,151 |
Diluted | 133,273 | 132,657 | 127,998 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Consolidated Statements Of Comprehensive Income [Abstract] | |||
Net income | $ 7,186 | $ 54,812 | $ 2,855 |
Currency translation adjustments, net | (641) | (1,791) | (512) |
Actuarial changes in pension obligation | (1,271) | ||
Comprehensive income | $ 5,274 | $ 53,021 | $ 2,343 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 01, 2016 | Jan. 02, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 247,403 | $ 211,216 |
Trade receivables, net of reserves ($14,541 as of January 1, 2016 and $13,218 as of January 2, 2015) | 42,684 | 55,585 |
Inventories | 65,334 | 73,770 |
Prepaid expenses and other current assets | 7,176 | 9,779 |
Income taxes receivable | 7,584 | 1,162 |
Deferred income taxes assets | 20,433 | |
Total Current Assets | 370,181 | 371,945 |
Non-current Assets | ||
Property, plant & equipment, net of accumulated depreciation ($273,352 as of January 1, 2016 and $260,403 as of January 2, 2015) | 71,044 | 72,272 |
Purchased intangibles, net of accumulated amortization ($77,225 as of January 1, 2016 and $99,500 as of January 2, 2015) | 32,507 | 34,400 |
Goodwill | 571,770 | 565,424 |
Deferred income tax assets | 63,139 | 39,334 |
Other non-current assets | 29,977 | 70,885 |
Total Non-current Assets | 768,437 | 782,315 |
Total Assets | 1,138,618 | 1,154,260 |
Current Liabilities | ||
Trade payables | 23,382 | 26,246 |
Accrued compensation | 31,662 | 34,083 |
Other accrued expenses and liabilities | 17,251 | 23,993 |
Deferred income | 14,482 | 11,631 |
Income taxes payable | 3,270 | 2,790 |
Provision for TAOS litigation | 77,988 | |
Total Current Liabilities | 168,035 | 98,743 |
Non-current Liabilities | ||
Income taxes payable | 1,609 | 59,745 |
Other non-current liabilities | 14,225 | 14,224 |
Total Non-current Liabilities | $ 15,834 | $ 73,969 |
Stockholders' 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; 132,728,391 shares issued and outstanding as of January 1, 2016 and 130,216,901 shares issued and outstanding as of January 2, 2015 | $ 1,327 | $ 1,302 |
Additional paid-in capital | 1,559,334 | 1,591,432 |
Accumulated deficit | (604,937) | (612,123) |
Accumulated other comprehensive (loss) income | (975) | 937 |
Total Stockholders' Equity | 954,749 | 981,548 |
Total Liabilities and Stockholders' Equity | $ 1,138,618 | $ 1,154,260 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands | Jan. 01, 2016 | Jan. 02, 2015 |
Consolidated Balance Sheets [Abstract] | ||
Trade receivables, reserves | $ 14,541 | $ 13,218 |
Property, plant and equipment, accumulated depreciation | 273,352 | 260,403 |
Purchased intangibles, accumulated amortization | $ 77,225 | $ 99,500 |
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 | 132,728,391 | 130,216,901 |
Class A common stock, shares outstanding | 132,728,391 | 130,216,901 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Common Stock Class A [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance as of at Dec. 28, 2012 | $ 1,263 | $ 1,659,895 | $ (669,790) | $ 3,240 | $ 994,608 |
Net income | 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 equity-based award plans | 14 | 4,316 | 4,330 | ||
Tax impact of shares issued under equity-based award plans | (451) | (451) | |||
Currency translation adjustments, net | (512) | (512) | |||
Balance as of at Jan. 03, 2014 | 1,277 | 1,620,732 | (666,935) | 2,728 | 957,802 |
Net income | 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 equity-based award plans | 25 | 15,533 | 15,558 | ||
Tax impact of shares issued under equity-based award plans | 237 | 237 | |||
Currency translation adjustments, net | (1,791) | (1,791) | |||
Balance as of at Jan. 02, 2015 | 1,302 | 1,591,432 | (612,123) | 937 | 981,548 |
Net income | 7,186 | 7,186 | |||
Dividends paid, $0.48 per common share | (63,255) | (63,255) | |||
Dividends accrued to Award holders prior to vesting | (2,365) | (2,365) | |||
Equity-based compensation expense | 23,158 | 23,158 | |||
Shares issued under equity-based award plans | 25 | 10,364 | 10,389 | ||
Currency translation adjustments, net | (641) | (641) | |||
Unrealized losses on defined benefit pension plan | (1,271) | (1,271) | |||
Balance as of at Jan. 01, 2016 | $ 1,327 | $ 1,559,334 | $ (604,937) | $ (975) | $ 954,749 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Consolidated Statements Of Stockholders' Equity [Abstract] | |||
Dividends paid per share | $ 0.48 | $ 0.48 | $ 0.48 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Operating Activities | |||
Net income | $ 7,186 | $ 54,812 | $ 2,855 |
Adjustments to reconcile net income to net cash flows from operating activities: | |||
Depreciation | 15,285 | 19,423 | 18,950 |
Amortization of intangibles | 17,625 | 22,241 | 24,579 |
Equity-based compensation | 23,158 | 18,688 | 19,091 |
Deferred income taxes | (6,285) | 35,569 | 10,196 |
Excess tax benefit received on exercise of stock options | (3,013) | (1,158) | (474) |
Gain on disposal of property and equipment, net | 16 | 71 | 102 |
Non-cash portion of restructuring charges | 7,184 | ||
Gain on investments | (1,198) | (1,075) | (866) |
Changes in operating assets and liabilities: | |||
Trade receivables | 13,247 | (6,118) | 5,218 |
Inventories | 8,437 | (11,363) | 12,461 |
Prepaid expenses and other current assets | 2,616 | (28) | 625 |
Trade payables and accrued liabilities | (9,695) | (13,032) | 17,355 |
Provision for TAOS litigation | 77,988 | ||
Income taxes | (64,079) | (42,226) | (9,417) |
Other long-term assets / liabilities, net | 35,716 | (2,415) | (1,145) |
Net cash flows provided by operating activities | 117,004 | 73,389 | 106,714 |
Investing Activities | |||
Cash paid for acquisition, net of acquired cash | (15,948) | ||
Proceeds from short-term investments | 4,750 | ||
Proceeds from long-term investments | 1,198 | 1,075 | 866 |
Purchase of property, plant and equipment | (12,965) | (9,857) | (18,581) |
Net cash flows used in investing activities | (27,715) | (8,782) | (12,965) |
Financing Activities | |||
Proceeds, net of taxes withheld, from equity-based awards | 10,389 | 15,558 | 4,330 |
Excess tax benefit received from exercise of equity-based awards | 3,013 | 1,381 | 23 |
Dividends paid | (64,859) | (62,910) | (61,920) |
Net cash flows used in financing activities | (51,457) | (45,971) | (57,567) |
Effect of exchange rates on cash and cash equivalents | (1,645) | (2,207) | (205) |
Net change in cash and cash equivalents | 36,187 | 16,429 | 35,977 |
Cash and cash equivalents at the beginning of the period | 211,216 | 194,787 | 158,810 |
Cash and cash equivalents at the end of the period | $ 247,403 | $ 211,216 | $ 194,787 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Jan. 01, 2016 | |
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 & infrastructure and computing & consumer end-markets. Basis of Presentation We utilize a 52/53-week fiscal year, ending on the nearest Friday to December 31. 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 Policies
Significant Accounting Policies | 12 Months Ended |
Jan. 01, 2016 | |
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. 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 $ 9.9 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 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 2015, 2014, and 2013, we recorded gains on deferred compensation investments of $0.3 million, $0.5 million, and $1.5 million, respectively and compensation expense of $0.1 million, $0.7 million, and $1.7 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. 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 collection losses 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 our 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 value. The carrying value of our inventories is reduced for any difference between cost and estimated market value of inventory 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. Accounting for Business Combinations — We use the acquisition method of accounting for business combinations and recognize assets acquired and liabilities assumed at their fair values on the date of the acquisition. While we use our best estimates and assumptions to value assets acquired and liabilities assumed, including contingent considerations, where applicable, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we may adjust the values of assets acquired and liabilities assumed with a corresponding offset to goodwill. Upon the conclusion of the measurement period, or final determination of the values of the assets acquired and liabilities assumed, any subsequent adjustments to values of such assets and liabilities are recognized in our consolidated statements of operations. Asset Impairment— We recognize impairment losses on long-lived assets when indications 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 indications of impairment exist. We perform an annual assessment of goodwill in the fourth quarter of each 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 and 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 2015 and 2013, we performed a quantitative two-step assessment and concluded that the carrying value of goodwill had not been impaired as of the date of the assessment. In 2014, based on a qualitative assessment, we concluded that a quantitative two-step assessment was not required to be performed. Purchased Intangibles — Purchased intangible assets with finite lives are carried at cost less accumulated amortization. Amortization is computed on a straight-line basis over the asset’s estimated useful life. 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, or 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 UTBs as a component of non-current income taxes payable, unless payment is expected within one year. Applicable guidance requires us to record 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 1, 2016 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 U.S., 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. Significant changes in enacted tax law could materially impact our estimates. Restructuring — We record restructuring charges when severance obligations are probable and 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 — We recognize revenue related to sales of our products, net of sales returns and allowances, provided that (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred and title and risk of loss have transferred, (iii) the price is fixed or determinable and (iv) collectability is reasonably assured. Delivery is considered to have occurred when title and risk of loss have transferred to the customer. We consider the price to be fixed or determinable when the price is not subject to refund or adjustments or when such adjustments can be estimated. We evaluate the creditworthiness of our customers to determine that appropriate credit limits are established prior to the acceptance of an order. We initially invoice certain distributors at list price upon shipment and issue a credit for pricing adjustments (referred to as “ship and debit claims”), once product has been sold to the end customer and the distributor has met certain reporting requirements. We estimate and record a reserve for the ship and debit claims based on our assessment of contractual terms with the respective distributors, historical information and prevailing economic situation at the time recognition of revenue. 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 income. The final price is also subject to ship and debit credits, reducing the final amount recorded in revenue at resale. Revenue from sales of our products that are subject to inventory consignment agreements, including consignment arrangements with distributors, is recognized in accordance with the principles discussed above, but delivery occurs when the customer or distributor pulls product from consignment inventory that we store at designated locations. The following table summarizes the deferred income balance, primarily consisting of sell-through distributors (in thousands): As of January 1, 2016 As of January 2, 2015 Deferred revenue $ 17,626 $ 14,546 Deferred cost of revenue (3,144) (2,915) Deferred income $ 14,482 $ 11,631 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 $4.5 million, $ 4.2 million, and $3.4 million in 2015, 2014, and 2013, respectively. Equity-based Compensation —Our equity-based compensation plans allow several forms of equity compensation including stock options, or Options, restricted and deferred stock awards, or Awards, and employee stock purchase plans, or ESPPs. The 2008 Equity Compensation Plan, or the 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, 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 options and 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 options and awards that include market-based vesting conditions. 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, the expected life of the award and the annualized dividend yield. Volatility is one of the most significant determinants of fair value. We estimate our volatility using the actual historical volatility of our stock price. In case of options and 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. 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. Expected forfeitures are estimated and offset the compensation costs recorded in the financial statements. 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, gener ally 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. Loss Contingencies —We estimate and accrue loss contingencies at the point that the losses become probable. For litigation, we include an estimate of legal costs for defense as part of the reserve for loss contingencies. 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) plan. 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 $4.8 million, $4.5 million, and $5.4 million during 2015, 2014, and 2013, 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 $0.9 million, $0.8 million, and $3.6 million during 2015, 2014, and 2013, respectively. Accrued liabilities relating to these unfunded plans were $7.8 million and $6.8 million as of January 1, 2016 and January 2, 2015, 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, or OCI. Cumulative translation adjustments in accumulated OCI were $ 0.3 million, $0.9 million, and $2.7 million as of January 1, 2016, January 2, 2015, and January 3, 2014, respectively. Segment Information— We report our results in one reportable segment. We design and develop innovative power management and precision analog integrated circuits, or 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 U.S. 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. Recently Adopted Accounting Guidance In November 2015, FASB issued guidance intended to simplify accounting for deferred taxes. Existing GAAP guidance requires us to record deferred tax balances as either current or non-current in accordance with the classification of the underlying attributes. We elected to early adopt this guidance using the prospective method. Please see discussion under Note 9 for the discussion related to impact of the early adoption of this guidance. In January 2015, FASB issued guidance on simplifying income statement presentation by eliminating the concept of extraordinary items from U.S. GAAP. The amendments in this update are effective for us from November 1, 2016, and in interim periods during that year. A reporting entity may apply the amendments prospectively and retrospectively to all periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the year of adoption. We have evaluated the accounting guidance and determined that there is no impact of this update to our consolidated financial statements. In March 2013, 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 was effective for us beginning in the first quarter of 2015. Upon adoption, the application of this accounting standard update did not have a material impact to our consolidated financial statements. Recent Accounting Guidance Not Yet Adopted In September 2015, FASB issued guidance intended to simplify accounting for adjustments to provisional amounts recorded in connection with business combinations. The guidance will be effective for us beginning in 2016. Early adoption is permitted. We do not expect this guidance to have a material impact to our consolidated financial statements. In July 2015, FASB issued guidance to simplify the accounting for inventory and to more closely align their guidance with international accounting standards. The amendments in this update apply to companies which use inventory valuation methods other than last-in, first-out and the retail inventory method to change the way that they subsequently measure the value of inventory on their balance sheet. Under the new guidance, inventory should be valued at the lower of cost and net realizable value rather than the lower of cost and market. The guidance is effective for us beginning in 2016. We do not expect this amended guidance to have an impact to our consolidated financial statements, as the new guidance aligns with our current practice of using net realizable value as our estimate of market value. In February 2015, FASB issued an amendment to the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The guidance is effective for us beginning in 2016. We do not expect that the adoption of this guidance will have an impact to our consolidated financial statements. In June 2014, FASB issued authoritative guidance that resolves the diverse accounting treatment for equity-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 equity-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. The guidance is effective for us beginning in 2016. We are currently evaluating the impact that this guidance will have on our financial condition and results of operations. In May 2014, FASB issued authoritative guidance, 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. In July 2015, FASB announced that implementation of this guidance will be delayed by one year. When issued, this guidance is expected to replace most existing revenue recognition guidance in U.S. GAAP. The new standard will be effective for us on December 31, 2018. 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 this guidance 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, 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 2016, which will only affect any dispositions we may make after the effective date. |
Business Combinations
Business Combinations | 12 Months Ended |
Jan. 01, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | NOTE 3—BUSINESS COMBINATIONS On September 8, 2015 , we acquired Great Wall Semiconductor Corporation, or GWS, a privately held manufacturer of metal oxide semiconductor field-effect transistors. We acquired GWS to broaden our product portfolio to better serve our customers who purchase certain commercial and radiation-hardened power management products. The purchase consideration consisted of $ 18.9 million in cash, of which $ 2.8 million is held in escrow for a period of 16 months and is subject to claims for contingent liabilities and working capital adjustments. In addition, the acquisition agreement provides for a cash earn-out payment of up to an additional $ 4.0 million if either specified revenue targets are achieved or a disposition event occurs on or before December 30, 2016. A disposition event would include transfer of GWS or its assets, or a transfer of a majority of the assets or acquisition of Intersil by a third party. We estimated that the fair value of the earn-out as of the acquisition date based on the probability of achievement was not material. The purchase price was allocated to the identifiable assets and liabilities of GWS based on their estimated fair value at the acquisition date. We engaged an independent third party to assist with the determination of the fair value of certain identifiable intangible assets and the earn-out. In determining the fair value of the purchased intangible assets and earn-out, management made various estimates and assumptions from significant unobservable inputs (Level 3). The fair value of purchased identifiable intangible assets was determined using discounted cash flow models from projections prepared by management. The fair value of the earn-out was derived using a Monte Carlo simulation model that includes significant unobservable inputs. The purchase price was preliminarily allocated as of the date of the acquisition as follows (in thousands): Assets acquired Current assets: Cash $ 201 Account receivable 346 Prepaid expenses & other assets 319 Non-current assets: Developed technology 13,232 Customer relationships 2,500 Goodwill 6,346 Total assets acquired 22,944 Liabilities acquired Current liabilities: Accounts payable 703 Accrued expenses 97 Deferred revenue 266 Non-current liabilities: Deferred taxes 2,969 Total liabilities acquired 4,035 Net assets acquired 18,909 We prepared an initial determination of the fair value of the assets acquired and liabilities assumed as of the acquisition date using preliminary information. Developed Technology and Customer Relationships have estimated useful lives of seven and three years, respectively. The excess of the fair value of consideration paid over the fair value of the net assets and the identifiable intangible assets acquired and the liabilities assumed resulted in recognition of goodwill of $ 6.3 million, including the value of workforce. The recognition of goodwill primarily related to expected future products and technologies. All of the goodwill recorded was assigned to our Industrial & Infrastructure reporting unit. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 01, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | NOTE 4—FAIR VALUE MEASUREMENTS We determine fair value on the following assets using these input levels (in thousands): Fair value as of January 1, 2016 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 $ 9,855 $ 400 $ 9,455 Total assets measured at fair value $ 9,855 $ 400 $ 9,455 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 We did not have any Level 3 assets as at the end of 2015 or 2014. There were no transfers into or out of Level 1 or Level 2 financial assets and liabilities during 2015 or 2014. For actively traded securities and bank time deposits, we generally rely upon the valuations provided by the third-party custodian of these assets or liabilities. |
Inventories
Inventories | 12 Months Ended |
Jan. 01, 2016 | |
Inventories [Abstract] | |
Inventories | NOTE 5—INVENTORIES Inventories are summarized below (in thousands): As of As of January 1, 2016 January 2, 2015 Finished products $ 22,522 $ 22,758 Work in process 38,238 47,083 Raw materials 4,574 3,929 Total inventories $ 65,334 $ 73,770 As of January 1, 2016, we were committed to purchase $ 18.7 million of inventory from our suppliers. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Jan. 01, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | NOTE 6—PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are summarized b elow (in thousands): As of As of January 1, 2016 January 2, 2015 Land $ 1,708 $ 1,708 Buildings and leasehold improvements 60,939 60,728 Machinery and equipment 267,832 264,325 Construction in progress 13,917 5,914 Total property, plant and equipment 344,396 332,675 Accumulated depreciation and leasehold amortization (273,352) (260,403) Total property, plant and equipment, net $ 71,044 $ 72,272 Depreciation expense was $15.3 million, $19.4 million, and $19.0 million for 2015, 2014, and 2013, respectively. Non-cash accruals for purchases of property, plant and equipment were immaterial for 2015, 2014, and 2013, respectively. As of January 1, 2016, we had open capital asset purchase commitments of $3.1 million. |
Goodwill And Purchased Intangib
Goodwill And Purchased Intangibles | 12 Months Ended |
Jan. 01, 2016 | |
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 $ 1,720,100 Accumulated impairment charge (1,154,676) Goodwill from GWS acquisition 6,346 Net goodwill balance as of January 1, 2016 $ 571,770 During the first quarter of 2015, we reorganized from four reporting units to three reporting units . As a result of this reorganization, we performed a fair value analysis immediately prior to the reallocation which did not indicate any impairment in the carrying value of goodwill. In addition, we reallocated our existing goodwill balances to the new reporting units utilizing a relative fair value allocation approach in accordance with FASB ASC Topic 350. We perform an annual test of goodwill in the fourth quarter of each year. In 2015, 2014, and 2013, 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 3, 2015, the first day of our fourth quarter of 2015 and the date at which we performed our quantitative assessment. During year 2014, we had performed a qualitative assessment. If we experience significant declines in our stock price, market capitalization, future expected cash flows, significant adverse changes in the business climate or 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 three to seven years. Purchased intangibles are summarized as follows (in thousands): As of January 1, 2016 Definite-lived: developed technologies Definite-lived: other Total purchased intangibles Gross carrying amount $ 63,032 $ 46,700 $ 109,732 Accumulated amortization 36,065 41,160 77,225 Purchased intangibles, net $ 26,967 $ 5,540 $ 32,507 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 We write-off those intangible assets that have become fully amortized during the year. Expected amortization expense by year to the end of the current amortization schedule is as follow (in thousands): To be recognized in: 2016 $ 11,734 2017 9,480 2018 4,362 2019 1,890 2020 and thereafter 5,041 Total expected amortization expense $ 32,507 |
Restructuring and Related Costs
Restructuring and Related Costs | 12 Months Ended |
Jan. 01, 2016 | |
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 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 2013, we adopted a rebalancing plan, we refer to as 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 and 2015. During the fourth quarter of 2015, we negotiated a termination of the lease arrangement of the real property we exited as a part of the July 2013 Plan. Amounts related to the July 2013 plan as on January 1, 2016 and January 2, 2015 was $ 0.5 million and $ 0.7 million respectively, and are included in other accrued expenses and liabilities on the balance sheet. The July 2013 Plan will be completed in the first quarter of 2016 upon payment of the associated lease termination fee. The July 2013 Plan will be completed in the first quarter of 2016 upon payment of the associated lease termination fee. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 01, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 9—INCOME TAXES Income (loss) before income taxes is allocated between domestic and foreign jurisdictions as follows (in thousands): Year Ended January 1, 2016 January 2, 2015 January 3, 2014 Domestic $ 32,729 $ 51,959 $ 22,140 Foreign (47,501) 22,574 (8,263) (Loss) income before income taxes $ (14,772) $ 74,533 $ 13,877 Income tax expense —The provision for income taxes is summarized below (in thousands): Year Ended January 1, 2016 January 2, 2015 January 3, 2014 Current taxes: Federal $ (18,221) $ (14,366) $ (2,090) State 113 (865) 34 Foreign 2,422 (617) 2,879 (15,686) (15,848) 823 Deferred taxes: Federal (6,391) 23,337 11,911 State (24) 2,536 545 Foreign 143 9,696 (2,257) (6,272) 35,569 10,199 Income tax (benefit) expense $ (21,958) $ 19,721 $ 11,022 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 $3.2 million, $2.4 million and $1.3 million during 2015, 2014 and 2013, 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 January 1, 2016 January 2, 2015 January 3, 2014 Tax effects from earnings / (losses) attributable to Malaysia $ (11,628) $ 5,611 $ (2,483) Effect on earnings (loss) per share: Basic $ (0.09) $ 0.04 $ (0.02) Diluted $ (0.09) $ 0.04 $ (0.02) Deferred income taxes —The components of net deferred income tax assets and liabilities are as follows (in thousands): As of January 1, 2016 As of January 2, 2015 Non-Current Current Non-Current Inventories $ 13,049 $ 14,170 $ - Property, plant and equipment 1,681 - 4,158 Accrued expenses 4,658 4,869 - Equity-based compensation 6,480 - 6,561 Net operating loss carryforward 25,584 1,025 19,766 Capitalized research and development 108 - 797 Deferred compensation 4,350 - 3,187 Deferred revenue 5,526 4,179 - Tax credits 43,010 - 24,877 Capital loss carryforward 6,592 - 6,628 Other, net 298 458 3,826 Deferred tax assets 111,336 24,701 69,800 Intangibles (4,642) - - Deferred tax liabilities (4,642) - - Valuation allowance (43,555) (4,268) (30,466) Net deferred tax assets $ 63,139 $ 20,433 $ 39,334 During November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”, which simplifies the presentation of deferred income taxes. This ASU requires that deferred tax assets and liabilities be classified as non-current in a statement of financial position. We early adopted ASU 2015-17 effective January 1, 2016 on a prospective basis. Adoption of this ASU resulted in a reclassification of our net current deferred tax asset to the net non-current deferred tax asset in our Consolidated Balance Sheet. No prior periods were retrospectively adjusted. The table below summarizes the activity in valuation allowances (in thousands): January 1, 2016 January 2, 2015 Beginning balance $ 34,733 $ 28,256 Increases related to state attributes 5,745 (48) Increases related to foreign net operating losses 3,113 7,160 Decreases related to capital losses (36) (635) Ending balance $ 43,555 $ 34,733 During 2015, we adjusted the valuation allowance for the deferred tax assets attributable to the net operating losses (“NOLs”) for a foreign subsidiary. As of January 1, 2016 the said foreign subsidiary had net deferred tax assets of $ 10.3 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 for the NOL. We also increased the valuation allowance for state tax credits generated during the year that we believe are not likely to be utilize d in the future due to a lack of projected taxable income in the state with the tax credits. 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 1, 2016. We have gross NOLs of $ 43.4 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 $ 17.4 million that will expire in tax years 2032 through 2034. Income Tax Rate Reconciliation —A reconciliation of the statutory United States income tax to our effective income tax is as follows (in thousands, except percentages): Year Ended January 1, 2016 January 2, 2015 January 3, 2014 Statutory U.S. income tax rate 35 % 35.0 % 35.0 % Income tax provision reconciliation: Tax at federal statutory income tax rate $ (5,169) $ 26,087 $ 4,857 State taxes 1,775 1,356 1,198 Effect of Foreign Operations 15,853 (7,918) 3,505 International equity-based compensation 349 748 2,422 Research credits (5,741) (4,608) (10,313) Change in unrecognized tax benefits (28,002) 2,765 116 Subpart F—interest & stock gain 155 437 326 Manufacturing deduction (529) (675) (370) Amortization of deferred tax charge (3,999) (2,964) (2,964) Tax shortfalls on equity-based compensation 92 1,381 3,277 Export compliance settlement - 1,400 2,100 Interest - - 779 Royalty income 4,717 5,215 5,557 Deferred tax true-ups (1,205) (2,299) - Other items (254) (1,204) 532 Total income tax (benefit) provision $ (21,958) $ 19,721 $ 11,022 Uncertain Tax Positions and Uncertain Tax Benefits (“UTBs”) During 2015, 2014 and 2013, we recorded an increase (decrease) of $(7.4) million, $0.4 million, and $1.8 million of potential interest and penalties on UTBs. We recognize potential accrued interest and penalties related to unrecognized tax benefits in income tax expense. The table below summarizes activity in gross UTBs (in thousands): January 1, 2016 January 2, 2015 January 3, 2014 Beginning balance (includes $ 7,538 thousand of interest and penalties as of January 2, 2015) $ 78,206 99,343 112,867 Increases related to current year tax positions 3,004 1,152 1,157 Increases related to prior year tax positions - 2,515 10,874 Settlements with tax authorities (548) (24,804) (25,555) Increases related to acquisitions 1,464 - - Decreases related to lapses of statutes of limitations (73,395) - - Ending balance (includes $ 124 thousand of interest and penalties as of January 1, 2016) $ 8,731 78,206 99,343 The decreases related to prior year tax positions in 2015 were primarily due to statute expirations on the UTBs. The increases related to current year tax positions do not have a material impact on the effective tax rate. During 2015, we made cash payments for accrued interest on the 2010 – 2012 final settlement with the IRS in the amount of $ 0.6 million, and paid $ 0.6 million to the states related to the final settlement. The $ 73.4 million decrease in the UTB balance due to the lapse of the statute of limitations primarily relates to various transfer pricing issues in the United States in the 2010 tax year. During 2014, we reached final settlement with the IRS in connection with the 2010 – 2012 examination periods. As a result of the settlement, we reduced the 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 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 2014, we made cash payments of $ 0.3 million to various states related to the 2008 – 2009 IRS settlement. During 2014, we made cash payments of $ 0.6 million to various states related to the 2005-2007 IRS settlement. We do not expect our UTBs to change significantly within the next 12 months. 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. Other Income Tax Information Income taxes paid were $8.0 million, $29.0 million and $16.6 million 2015, 2014 and 2013, respectively. Interest and penalties paid were $0.6 million during 2015, $0.5 million during 2014, and $0.9 million during 2013. We have not provided U.S. income taxes on $ 276.3 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. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jan. 01, 2016 | |
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. This credit facility replaced our previous $ 300.0 million six -year term-loan facility and $ 75.0 million revolving credit facility. The credit facility matures on September 1, 2016 and is payable in full upon maturity. We may request to increase the credit facility by up to $ 75.0 million. Under the credit 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 credit facility may be re-borrowed. The credit 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 credit facility are guaranteed by our direct and indirect wholly-owned subsidiaries (other than immaterial subsidiaries and foreign subsidiaries). At our option, loans under the credit facility will bear interest based on the Base Rate or Eurocurrency Rate, in each case plus the Applicable Rate (each term, respectively, as defined in the credit agreement (the “Credit Agreement”), as amended governing the credit facility). The Base Rate will be, for any day, a fluctuating rate per annum equal to the highest of (a) 0.50% 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, as defined in the Credit Agreement) 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 our Consolidated Leverage Ratio (as defined in the Credit Agreement). We did not have any outstanding borrowings against the credit facility as of January 1, 2016 or January 2, 2015. Letters of Credit: We issue letters of credit in the ordinary course of business through major financial institutions as required by certain vendor contracts. We had outstanding letters of credit totaling $ 1.3 million as of January 1, 2016 and January 2, 2015. The standby letters of credit are secured by pledged deposits. |
Common Stock And Dividends
Common Stock And Dividends | 12 Months Ended |
Jan. 01, 2016 | |
Common Stock And Dividends [Abstract] | |
Common Stock And Dividends | NOTE 11—COMMON STOCK AND DIVIDENDS Common Stock —Our stockholders 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, par value $0.01 per share. 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 1, 2016 and January 2, 2015, no shares of preferred stock were outstanding. The table below summarizes the Class A common stock activity (in thousands): Beginning balance as of January 2, 2015 130,217 Shares issued under stock plans, net of shares withheld for taxes 2,511 Ending balance as of January 1, 2016 132,728 Dividends — We have paid a quarterly dividend since September 2003. In January 2016 , the Board of Directors declared a dividend of $ 0.12 per share to stockholders of record as of February 16, 2016 to be paid on or about February 26, 2016 . Dividends in the future will be declared at the discretion of the Board of Directors upon consideration of business conditions, liquidity and outlo ok . |
Risks And Uncertainties
Risks And Uncertainties | 12 Months Ended |
Jan. 01, 2016 | |
Risks And Uncertainties [Abstract] | |
Risks and Uncertainties | NOTE 12— 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 U.S. 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 U.S. 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: Year Ended January 1, 2016 January 2, 2015 January 3, 2014 Revenue by country China 47.1 % 50.9 % 52.9 % United States 17.4 % 18.1 % 15.7 % In addition to those in the table above, our customers in each of South Korea, Japan, Germany, Singapore, Taiwan, and Thailand accounted for at least 1% of our total revenue in 2015 and 2014 . One distributor represented 20.7% , 18.4% and 17.0% of revenue during 2015, 2014 and 2013, respectively, and 17.8% and 24.4% of trade receivables as of January 1, 2016 and January 2, 2015, respectively. We relied on external vendors for 86.0% and 86.9% of our wafer supply as measured in units during 2015 and 2014, respectively. Additionally, we rely primarily on external vendors for test, assembly and packaging services. The test, assembly and packaging vendors we utilize are located mainly in Asia, where a significant volume of our final product sales are made. Geographic Information —The following table presents 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): Year Ended January 1, 2016 January 2, 2015 January 3, 2014 North America operations Revenue $ 91,932 $ 101,268 $ 90,348 Tangible long-lived assets $ 52,991 $ 55,681 $ 59,469 International operations Revenue $ 429,684 $ 461,287 $ 484,847 Tangible long-lived assets $ 18,053 $ 16,591 $ 22,398 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 Per Share
Earnings Per Share | 12 Months Ended |
Jan. 01, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 13 —EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Year Ended January 1, 2016 January 2, 2015 January 3, 2014 Numerator : Net income to common stockholders $ 7,186 $ 54,812 $ 2,855 Denominator: Denominator for basic earnings per share—weighted average common shares 131,793 129,149 127,151 Effect of stock options and awards 1,480 3,508 847 Denominator for diluted earnings per share—adjusted weighted average common shares 133,273 132,657 127,998 Earnings per share: Basic $ 0.05 $ 0.42 $ 0.02 Diluted $ 0.05 $ 0.41 $ 0.02 Anti-dilutive shares not included in the above calculations: Awards - 242 1,181 Options 1,194 1,128 6,774 |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Jan. 01, 2016 | |
Equity-Based Compensation [Abstract] | |
Equity-Based Compensation | NOTE 14—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 1, 2016 Shares Available for Issuance at January 1, 2016 1999 Plan 36,250 24 - 2008 Plan 46,352 8,563 14,262 2009 Option Exchange Plan 2,914 719 - Inducement Plan 433 216 - ESPP 9,033 - 2,451 94,982 9,522 16,713 Grant Date Fair Values and Underlying Assumptions; Contractual Terms For Options granted in 2015 and 2014, we estimated the fair value of each Option as of the date of grant with the following assumptions: Year Ended January 1, 2016 January 2, 2015 Expected volatilities 32.1% 32.2% Dividend yields 4.0% 3.6% Risk-free interest rate 1.0% 0.8% 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 January 1, 2016 January 2, 2015 January 3, 2014 Options $ 1.88 $ 2.18 $ 1.67 Awards $ 14.20 $ 13.12 $ 8.58 Information Regarding Options and Awards —Information about Options and Awards as of January 1, 2016 and activity for Options and Awards for the three years then ended is presented below: Options Awards Aggregate information Shares Weighted-average 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 28, 2012 11,946 $ 14.90 3.7 3,367 Granted(1) 340 8.38 3,334 Exercised (2) (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 (1) 70 13.45 2,109 Exercised (2) (1,205) 12.36 (1,153) Canceled (978) 19.28 (309) Outstanding as of January 2, 2015 5,383 $ 12.65 2.9 5,251 Granted (1) 40 12.01 6.3 2,321 Exercised (2) (908) 12.01 1.8 (1,527) Canceled (502) 18.02 1.2 (536) Outstanding as of January 1, 2016 4,013 $ 12.02 2.2 5,509 $ 75,432 $ 29,042 As of January 1, 2016: Exercisable/vested (2) 3,881 $ 12.01 2.1 67 $ 5,974 Vested and expected to vest 4,013 $ 12.02 2.2 4,078 $ 57,278 (1) Grants include 360,153 , 433,564 , and 784,000 MSU Awards issued in 2015, 2014, and 2013, respectively. (2) Awards exercised are those that have reached full vested status and have 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 1, 2016 were 67 thousand shares as shown in the Awards column as Exercisable/vested. The unrecognized compensation cost is expected to be recognized over a period of 1.79 years. Additional Disclosures Year Ended January 1, 2016 January 2, 2015 January 3, 2014 (in thousands) Shares issued under the employee stock purchase plan 537 495 712 Aggregate intrinsic value of stock options exercised $ 2,243 $ 2,445 $ 175 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 1, 2016 and activity during the year then ended ( in thousands , except per share data ): Options Unvested Options-Weighted Average Grant Date Fair Values Awards Unvested Awards-Weighted Average Grant Date Fair Values Unvested as of January 2, 2015 717 $ 2.86 5,184 $ 10.51 Granted 40 1.88 2,321 14.20 Vested (573) 2.23 (1,527) 10.37 Forfeited (52) 2.79 (536) 11.18 Unvested as of January 1, 2016 132 $ 5.29 5,442 $ 12.28 Financial Statement Effects and Presentation —The following table shows total equity-based compensation expense for the periods indicated (in thousands): Year Ended January 1, 2016 January 2, 2015 January 3, 2014 By statement of income line item Cost of revenue $ 1,400 $ 1,326 $ 1,387 Research and development $ 10,167 $ 8,468 $ 7,777 Selling, general and administrative $ 11,591 $ 8,894 $ 9,927 By stock type Stock options $ 617 $ 1,189 $ 4,690 Restricted and deferred stock awards $ 21,464 $ 16,493 $ 13,378 Employee stock purchase plan $ 1,077 $ 1,006 $ 1,023 Market and Performance-based Grants — As of January 1, 2016, we had Options and Awards outstanding that include the usual service conditions as well as (1) market conditions related to total stockholder 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 - 300% 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): January 1, 2016 Options Awards (in thousands) Performance and market-based units outstanding 368 1,393 Maximum shares that could be issued assuming the highest level of performance 341 2,948 Performance and market-based shares vested / expected to vest 341 1,552 Amount to be recognized as compensation cost over the performance period $ - $ 1,778 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 01, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | NOTE 15—COMMITMENTS AND CONTINGENCIES TAOS litigation Texas Advanced Optoelectronic Solutions, Inc., or TAOS, named us as a defendant in a lawsuit filed on November 25, 2008 in the United States District Court for the Eastern District of Texas. In this action, TAOS alleged four claims consisting of patent infringement, breach of contract, trade secret misappropriation, and tortious interference with a business relationship. On March 6, 2015, the jury found in favor of TAOS on each of the four claims and recommended to the court that we pay $ 48.7 million in actual damages and $ 10.0 million in exemplary damages on the trade secret misappropriation claim along with $ 74,000 in damages for patent infringement. The jury’s verdict also included other duplicate damages of $ 30.0 million. After the trial, TAOS filed post-trial motions seeking unspecified attorneys’ fees, enhanced patent infringement damages, $ 18.1 million in pre-judgment interest, which will continue to accrue until the judgment is entered, and a permanent injunction enjoining us from making or selling certain ambient light sensor products. We have vigorously opposed each of these motions. We filed post-trial motions for a new trial and renewed a motion for judgment as a matter of law. In January 2016, the court heard oral arguments on TAOS’ motions for a permanent injunction and unspecified attorneys’ fees and declined to hear oral argument on the other motions before it. The court has not provided a timeframe in which it will provide its ruling on the motions filed by the parties. We are prepared to file an appeal with the U.S. Court of Appeals for the Federal Circuit. As a consequence of the verdict, during 2015, we recorded a provision of $ 81.1 million related to this matter, including pre-judgment interest and estimated legal costs, but excluding the damages we believe to be duplicative. During 2015, we incurred $ 3.1 million of legal costs, and, as such, the accrual outstanding as of January 1, 2016 was $ 78.0 million. Given the unpredictable nature of this type of litigation and because the outcome remains subject to post-trial motions and appeal, the ultimate impact of this lawsuit may be materially different from our estimate. Environmental matter In a correspondence dated September 28, 2015, Thomson Consumer Electronics Television Taiwan, Ltd., or TCETVT, notified us that it reserved its right to seek indemnification from us for any and all costs, fees and expenses incurred as a result of a toxic tort class action lawsuit filed in Taiwan against TCETVT and others. The lawsuit pertains to alleged injuries resulting from groundwater contamination at a manufacturing facility in Taiwan currently owned by TCETVT, which was previously owned and operated by predecessors (including General Electric and Harris Corporation) of our Taiwan subsidiary, Intersil Ltd. In the September 28 correspondence, TCETVT also informed us that the Taipei District Court entered a judgment of $ 18.5 million in the lawsuit against TCETVT , which judgment has been appealed. In addition, TCETVT informed us that they have incurred costs of $ 11.2 million in defending against the lawsuit through September 1, 2015. We were also advised by TCETVT that additional claimants made be added to the lawsuit and TCETVT believes that if such additional claimants were successfully added, the resulting liability could be as high as $ 200 million. TCETVT also informed us that it reserved its right to seek indemnification from us for any and all costs associated with the remediation of the contamination on that site and nearby areas. TCETVT claims they have incurred $ 15.9 million in remediation-related costs through September 1, 2015. Under the terms of the 1999 Master Transaction Agreement between Harris Corporation and Intersil, whereby Harris transferred its semiconductor business assets to us, environmental liabilities (including those associated with Harris’ Taiwan semiconductor operations) were expressly retained by Harris. The Master Transaction Agreement also requires Harris to indemnify us for any and all costs relating to those retained environmental liabilities. We have denied liability to TCETVT for the costs associated with the lawsuit as well as the costs associated with the remediation of the contamination on the site. We have also submitted a claim notice to Harris seeking defense and indemnification from Harris under the Master Transaction Agreement for any and all claims made by TCETVT in connection with this matter. Harris has not yet agreed to indemnify us for the liability asserted by TCETVT. Export compliance settlement A portion of our activities are subject to export control regulations administered by the U.S. Department of State, or DOS, under the U.S. Arms Export Control Act, or AECA, and the International Traffic in Arms Regulations, or ITAR. In September 2010, in response to a request for information, we disclosed to the Directorate of Defense Trade Controls, or DTCC, information concerning export activities for the years of 2005 through 2010. ITAR gives the DOS authority to impose civil penalties and other administrative sanctions for violations, including debarment from engaging in the exporting of defense articles. In June of 2013, the DTCC notified us of potential ITAR violations and that it was considering pursuing administrative proceedings against us. On June 16, 2014, we entered into a Consent Agreement with the DTCC for the purpose of resolving the potential ITAR violations. Our agreement with the DTCC 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 an 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 Consent Agreement and U.S. export control regulations, in general; (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 quarter ended October 4, 2013 and an additional $ 4 million charge in the quarter ended April 4, 2014 when the amount of the penalty was determined. The $ 6 million portion of the settlement that was not subject to suspension was paid in two installments of $ 3 million each, paid in June 2014 and June 2015. We expect that investments made in our export control compliance program, 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, will be eligible for credit against the suspended portion of the settlement amount. We expect that these investments in remedial compliance measures will be sufficient to cover the $4 million suspended payment. At the end of 2015, we had spent $ 3.0 million on improvements to our export compliance program. We are currently party to various claims and legal proceedings, including the ones 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 incur indemnification obligations for intellectual property infringement claims related to our products. We accrue for known indemnification issues and estimate unidentified issues based on historical activity . 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 in excess of amounts already accrued. 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. Leases and Commitments Total rental expense amounted to $7.8 m illion , $7.7 million, and $8.8 million for 2015, 2014, and 2013, respectively. Future minimum lease commitments under non-cancelable operating leases primarily related to land and office buildings amounted to $ 28.1 million as of January 1, 2016. The following table sets forth future minimum lease commitments and non-cancelable purchase commitments as of January 1, 2016 (in thousands): Future minimum lease commitments Non-cancelable purchase commitments 2016 $ 5,540 $ 22,773 2017 4,958 - 2018 4,309 - 2019 3,128 - Thereafter 10,140 - Total future minimum commitments $ 28,075 $ 22,773 |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Jan. 01, 2016 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | NOTE 16—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 Jan 1, 2016 Oct 2, 2015 Jul 3, 2015 Apr 3, 2015 Jan 2, 2015 Oct 3, 2014 Jul 4, 2014 Apr 4, 2014 Revenue $ 126,626 $ 128,396 $ 132,441 $ 134,153 $ 131,126 $ 143,612 $ 147,761 $ 140,056 Gross profit 72,919 76,058 78,493 80,326 78,193 83,849 85,808 78,905 Net income (loss) 21,302 16,984 37,724 (68,824) 17,274 13,887 13,646 10,005 Income (loss) per share (basic): 0.16 0.13 0.29 (0.53) 0.13 0.11 0.11 0.08 Income (loss) per share (diluted): 0.16 0.13 0.28 (0.53) 0.13 0.10 0.10 0.08 |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts (Summary Of Valuation And Qualifying Accounts) | 12 Months Ended |
Jan. 01, 2016 | |
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 Revenue, Costs and Expenses Additions Charged (Credited) to Other Accounts Deduction from Allowances Balance as of End of Period Allowance for uncollectible accounts 2015 $ 3 $ - $ - $ - $ 3 2014 $ 526 $ 210 $ (733) $ - $ 3 2013 $ 26 $ 1,319 $ (819) $ - $ 526 Sales returns and allowances 2015 $ 13,287 $ 88,582 $ - $ (87,238) $ 14,631 2014 $ 13,754 $ 101,321 $ - $ (101,788) $ 13,287 2013 $ 14,865 $ 86,520 $ (599) $ (87,032) $ 13,754 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 Pre26
Organization and Basis of Presentation (Policy) | 12 Months Ended |
Jan. 01, 2016 | |
Organization and Basis of Presentation [Abstract] | |
Fiscal Period | We utilize a 52/53-week fiscal year, ending on the nearest Friday to December 31. 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 Polici27
Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 01, 2016 | |
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. |
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 $ 9.9 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 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 2015, 2014, and 2013, we recorded gains on deferred compensation investments of $0.3 million, $0.5 million, and $1.5 million, respectively and compensation expense of $0.1 million, $0.7 million, and $1.7 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. |
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 collection losses 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 our 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 value. The carrying value of our inventories is reduced for any difference between cost and estimated market value of inventory 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. |
Accounting for Business Combinations | Accounting for Business Combinations —We use the acquisition method of accounting for business combinations and recognize assets acquired and liabilities assumed at their fair values on the date of the acquisition. While we use our best estimates and assumptions to value assets acquired and liabilities assumed, including contingent considerations, where applicable, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we may adjust the values of assets acquired and liabilities assumed with a corresponding offset to goodwill. Upon the conclusion of the measurement period, or final determination of the values of the assets acquired and liabilities assumed, any subsequent adjustments to values of such assets and liabilities are recognized in our consolidated statements of operations. |
Asset Impairment | Asset Impairment— We recognize impairment losses on long-lived assets when indications 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 indications of impairment exist. We perform an annual assessment of goodwill in the fourth quarter of each 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 and 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 2015 and 2013, we performed a quantitative two-step assessment and concluded that the carrying value of goodwill had not been impaired as of the date of the assessment. In 2014, based on a qualitative assessment, we concluded that a quantitative two-step assessment was not required to be performed. |
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 the asset’s estimated useful life. 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, or UTBs | Uncertain tax positions and unrecognized tax benefits, or 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 UTBs as a component of non-current income taxes payable, unless payment is expected within one year. Applicable guidance requires us to record 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 1, 2016 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 U.S., 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. Significant changes in enacted tax law could materially impact our estimates. |
Restructuring | Restructuring — We record restructuring charges when severance obligations are probable and 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 — We recognize revenue related to sales of our products, net of sales returns and allowances, provided that (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred and title and risk of loss have transferred, (iii) the price is fixed or determinable and (iv) collectability is reasonably assured. Delivery is considered to have occurred when title and risk of loss have transferred to the customer. We consider the price to be fixed or determinable when the price is not subject to refund or adjustments or when such adjustments can be estimated. We evaluate the creditworthiness of our customers to determine that appropriate credit limits are established prior to the acceptance of an order. We initially invoice certain distributors at list price upon shipment and issue a credit for pricing adjustments (referred to as “ship and debit claims”), once product has been sold to the end customer and the distributor has met certain reporting requirements. We estimate and record a reserve for the ship and debit claims based on our assessment of contractual terms with the respective distributors, historical information and prevailing economic situation at the time recognition of revenue. 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 income. The final price is also subject to ship and debit credits, reducing the final amount recorded in revenue at resale. Revenue from sales of our products that are subject to inventory consignment agreements, including consignment arrangements with distributors, is recognized in accordance with the principles discussed above, but delivery occurs when the customer or distributor pulls product from consignment inventory that we store at designated locations. The following table summarizes the deferred income balance, primarily consisting of sell-through distributors (in thousands): As of January 1, 2016 As of January 2, 2015 Deferred revenue $ 17,626 $ 14,546 Deferred cost of revenue (3,144) (2,915) Deferred income $ 14,482 $ 11,631 |
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 $4.5 million, $ 4.2 million, and $3.4 million in 2015, 2014, and 2013, respectively. |
Equity-based Compensation | Equity-based Compensation —Our equity-based compensation plans allow several forms of equity compensation including stock options, or Options, restricted and deferred stock awards, or Awards, and employee stock purchase plans, or ESPPs. The 2008 Equity Compensation Plan, or the 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, 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 options and 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 options and awards that include market-based vesting conditions. 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, the expected life of the award and the annualized dividend yield. Volatility is one of the most significant determinants of fair value. We estimate our volatility using the actual historical volatility of our stock price. In case of options and 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. 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. Expected forfeitures are estimated and offset the compensation costs recorded in the financial statements. 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. |
Loss Contingencies | Loss Contingencies —We estimate and accrue loss contingencies at the point that the losses become probable. For litigation, we include an estimate of legal costs for defense as part of the reserve for loss contingencies. |
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) plan. 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 $4.8 million, $4.5 million, and $5.4 million during 2015, 2014, and 2013, 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 $0.9 million, $0.8 million, and $3.6 million during 2015, 2014, and 2013, respectively. Accrued liabilities relating to these unfunded plans were $7.8 million and $6.8 million as of January 1, 2016 and January 2, 2015, 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, or OCI. Cumulative translation adjustments in accumulated OCI were $ 0.3 million, $0.9 million, and $2.7 million as of January 1, 2016, January 2, 2015, and January 3, 2014, respectively. |
Segment Information | Segment Information— We report our results in one reportable segment. We design and develop innovative power management and precision analog integrated circuits, or 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 U.S. 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 | Recently Adopted Accounting Guidance In November 2015, FASB issued guidance intended to simplify accounting for deferred taxes. Existing GAAP guidance requires us to record deferred tax balances as either current or non-current in accordance with the classification of the underlying attributes. We elected to early adopt this guidance using the prospective method. Please see discussion under Note 9 for the discussion related to impact of the early adoption of this guidance. In January 2015, FASB issued guidance on simplifying income statement presentation by eliminating the concept of extraordinary items from U.S. GAAP. The amendments in this update are effective for us from November 1, 2016, and in interim periods during that year. A reporting entity may apply the amendments prospectively and retrospectively to all periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the year of adoption. We have evaluated the accounting guidance and determined that there is no impact of this update to our consolidated financial statements. In March 2013, 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 was effective for us beginning in the first quarter of 2015. Upon adoption, the application of this accounting standard update did not have a material impact to our consolidated financial statements. Recent Accounting Guidance Not Yet Adopted In September 2015, FASB issued guidance intended to simplify accounting for adjustments to provisional amounts recorded in connection with business combinations. The guidance will be effective for us beginning in 2016. Early adoption is permitted. We do not expect this guidance to have a material impact to our consolidated financial statements. In July 2015, FASB issued guidance to simplify the accounting for inventory and to more closely align their guidance with international accounting standards. The amendments in this update apply to companies which use inventory valuation methods other than last-in, first-out and the retail inventory method to change the way that they subsequently measure the value of inventory on their balance sheet. Under the new guidance, inventory should be valued at the lower of cost and net realizable value rather than the lower of cost and market. The guidance is effective for us beginning in 2016. We do not expect this amended guidance to have an impact to our consolidated financial statements, as the new guidance aligns with our current practice of using net realizable value as our estimate of market value. In February 2015, FASB issued an amendment to the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The guidance is effective for us beginning in 2016. We do not expect that the adoption of this guidance will have an impact to our consolidated financial statements. In June 2014, FASB issued authoritative guidance that resolves the diverse accounting treatment for equity-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 equity-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. The guidance is effective for us beginning in 2016. We are currently evaluating the impact that this guidance will have on our financial condition and results of operations. In May 2014, FASB issued authoritative guidance, 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. In July 2015, FASB announced that implementation of this guidance will be delayed by one year. When issued, this guidance is expected to replace most existing revenue recognition guidance in U.S. GAAP. The new standard will be effective for us on December 31, 2018. 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 this guidance 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, 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 2016, which will only affect any dispositions we may make after the effective date. |
Significant Accounting Polici28
Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 01, 2016 | |
Significant Accounting Policies [Abstract] | |
Summary of Deferred Net Income | As of January 1, 2016 As of January 2, 2015 Deferred revenue $ 17,626 $ 14,546 Deferred cost of revenue (3,144) (2,915) Deferred income $ 14,482 $ 11,631 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Jan. 01, 2016 | |
Business Combinations [Abstract] | |
Business Acquisition Purchase Price Allocation | Assets acquired Current assets: Cash $ 201 Account receivable 346 Prepaid expenses & other assets 319 Non-current assets: Developed technology 13,232 Customer relationships 2,500 Goodwill 6,346 Total assets acquired 22,944 Liabilities acquired Current liabilities: Accounts payable 703 Accrued expenses 97 Deferred revenue 266 Non-current liabilities: Deferred taxes 2,969 Total liabilities acquired 4,035 Net assets acquired 18,909 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 01, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value of Financial Assets | Fair value as of January 1, 2016 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 $ 9,855 $ 400 $ 9,455 Total assets measured at fair value $ 9,855 $ 400 $ 9,455 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 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jan. 01, 2016 | |
Inventories [Abstract] | |
Schedule Of Inventories | As of As of January 1, 2016 January 2, 2015 Finished products $ 22,522 $ 22,758 Work in process 38,238 47,083 Raw materials 4,574 3,929 Total inventories $ 65,334 $ 73,770 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 12 Months Ended |
Jan. 01, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant And Equipment | As of As of January 1, 2016 January 2, 2015 Land $ 1,708 $ 1,708 Buildings and leasehold improvements 60,939 60,728 Machinery and equipment 267,832 264,325 Construction in progress 13,917 5,914 Total property, plant and equipment 344,396 332,675 Accumulated depreciation and leasehold amortization (273,352) (260,403) Total property, plant and equipment, net $ 71,044 $ 72,272 |
Goodwill And Purchased Intang33
Goodwill And Purchased Intangibles (Tables) | 12 Months Ended |
Jan. 01, 2016 | |
Goodwill And Purchased Intangibles [Abstract] | |
Summary Of Changes In Net Goodwill Balance For Reportable Segment | Gross goodwill balance as of January 2, 2015 $ 1,720,100 Accumulated impairment charge (1,154,676) Goodwill from GWS acquisition 6,346 Net goodwill balance as of January 1, 2016 $ 571,770 |
Purchased Intangibles | As of January 1, 2016 Definite-lived: developed technologies Definite-lived: other Total purchased intangibles Gross carrying amount $ 63,032 $ 46,700 $ 109,732 Accumulated amortization 36,065 41,160 77,225 Purchased intangibles, net $ 26,967 $ 5,540 $ 32,507 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 |
Expected Amortization Expense | To be recognized in: 2016 $ 11,734 2017 9,480 2018 4,362 2019 1,890 2020 and thereafter 5,041 Total expected amortization expense $ 32,507 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 01, 2016 | |
Income Taxes [Abstract] | |
Summary of Income (Loss) Before Income Taxes Allocated Between Domestic and Foreign Jurisidictions | Year Ended January 1, 2016 January 2, 2015 January 3, 2014 Domestic $ 32,729 $ 51,959 $ 22,140 Foreign (47,501) 22,574 (8,263) (Loss) income before income taxes $ (14,772) $ 74,533 $ 13,877 |
Components of Income Tax Expense (Benefit) | Year Ended January 1, 2016 January 2, 2015 January 3, 2014 Current taxes: Federal $ (18,221) $ (14,366) $ (2,090) State 113 (865) 34 Foreign 2,422 (617) 2,879 (15,686) (15,848) 823 Deferred taxes: Federal (6,391) 23,337 11,911 State (24) 2,536 545 Foreign 143 9,696 (2,257) (6,272) 35,569 10,199 Income tax (benefit) expense $ (21,958) $ 19,721 $ 11,022 |
Operating Benefit Under the Tax Holiday | Year Ended January 1, 2016 January 2, 2015 January 3, 2014 Tax effects from earnings / (losses) attributable to Malaysia $ (11,628) $ 5,611 $ (2,483) Effect on earnings (loss) per share: Basic $ (0.09) $ 0.04 $ (0.02) Diluted $ (0.09) $ 0.04 $ (0.02) |
Deferred Tax Assets and Liabilities | As of January 1, 2016 As of January 2, 2015 Non-Current Current Non-Current Inventories $ 13,049 $ 14,170 $ - Property, plant and equipment 1,681 - 4,158 Accrued expenses 4,658 4,869 - Equity-based compensation 6,480 - 6,561 Net operating loss carryforward 25,584 1,025 19,766 Capitalized research and development 108 - 797 Deferred compensation 4,350 - 3,187 Deferred revenue 5,526 4,179 - Tax credits 43,010 - 24,877 Capital loss carryforward 6,592 - 6,628 Other, net 298 458 3,826 Deferred tax assets 111,336 24,701 69,800 Intangibles (4,642) - - Deferred tax liabilities (4,642) - - Valuation allowance (43,555) (4,268) (30,466) Net deferred tax assets $ 63,139 $ 20,433 $ 39,334 |
Summary of Valuation Allowance | January 1, 2016 January 2, 2015 Beginning balance $ 34,733 $ 28,256 Increases related to state attributes 5,745 (48) Increases related to foreign net operating losses 3,113 7,160 Decreases related to capital losses (36) (635) Ending balance $ 43,555 $ 34,733 |
Income Tax Rate Reconciliation | Year Ended January 1, 2016 January 2, 2015 January 3, 2014 Statutory U.S. income tax rate 35 % 35.0 % 35.0 % Income tax provision reconciliation: Tax at federal statutory income tax rate $ (5,169) $ 26,087 $ 4,857 State taxes 1,775 1,356 1,198 Effect of Foreign Operations 15,853 (7,918) 3,505 International equity-based compensation 349 748 2,422 Research credits (5,741) (4,608) (10,313) Change in unrecognized tax benefits (28,002) 2,765 116 Subpart F—interest & stock gain 155 437 326 Manufacturing deduction (529) (675) (370) Amortization of deferred tax charge (3,999) (2,964) (2,964) Tax shortfalls on equity-based compensation 92 1,381 3,277 Export compliance settlement - 1,400 2,100 Interest - - 779 Royalty income 4,717 5,215 5,557 Deferred tax true-ups (1,205) (2,299) - Other items (254) (1,204) 532 Total income tax (benefit) provision $ (21,958) $ 19,721 $ 11,022 |
Summary of Activity in Unrecognized Tax Benefits Resulting From Uncertain Tax Positions | January 1, 2016 January 2, 2015 January 3, 2014 Beginning balance (includes $ 7,538 thousand of interest and penalties as of January 2, 2015) $ 78,206 99,343 112,867 Increases related to current year tax positions 3,004 1,152 1,157 Increases related to prior year tax positions - 2,515 10,874 Settlements with tax authorities (548) (24,804) (25,555) Increases related to acquisitions 1,464 - - Decreases related to lapses of statutes of limitations (73,395) - - Ending balance (includes $ 124 thousand of interest and penalties as of January 1, 2016) $ 8,731 78,206 99,343 |
Common Stock And Dividends (Tab
Common Stock And Dividends (Tables) | 12 Months Ended |
Jan. 01, 2016 | |
Common Stock And Dividends [Abstract] | |
Share Activity For Class A Common Stock | Beginning balance as of January 2, 2015 130,217 Shares issued under stock plans, net of shares withheld for taxes 2,511 Ending balance as of January 1, 2016 132,728 |
Risks And Uncertainties (Tables
Risks And Uncertainties (Tables) | 12 Months Ended |
Jan. 01, 2016 | |
Risks And Uncertainties [Abstract] | |
Operations By Geographic Area | Year Ended January 1, 2016 January 2, 2015 January 3, 2014 North America operations Revenue $ 91,932 $ 101,268 $ 90,348 Tangible long-lived assets $ 52,991 $ 55,681 $ 59,469 International operations Revenue $ 429,684 $ 461,287 $ 484,847 Tangible long-lived assets $ 18,053 $ 16,591 $ 22,398 |
Sales By Country | Year Ended January 1, 2016 January 2, 2015 January 3, 2014 Revenue by country China 47.1 % 50.9 % 52.9 % United States 17.4 % 18.1 % 15.7 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jan. 01, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Basic And Diluted Earnings Per Share | Year Ended January 1, 2016 January 2, 2015 January 3, 2014 Numerator : Net income to common stockholders $ 7,186 $ 54,812 $ 2,855 Denominator: Denominator for basic earnings per share—weighted average common shares 131,793 129,149 127,151 Effect of stock options and awards 1,480 3,508 847 Denominator for diluted earnings per share—adjusted weighted average common shares 133,273 132,657 127,998 Earnings per share: Basic $ 0.05 $ 0.42 $ 0.02 Diluted $ 0.05 $ 0.41 $ 0.02 Anti-dilutive shares not included in the above calculations: Awards - 242 1,181 Options 1,194 1,128 6,774 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Jan. 01, 2016 | |
Equity-Based Compensation [Abstract] | |
Summary Of Equity Compensation Arrangement | Equity Compensation Arrangement Total Number of Shares in Arrangement Shares Outstanding as of January 1, 2016 Shares Available for Issuance at January 1, 2016 1999 Plan 36,250 24 - 2008 Plan 46,352 8,563 14,262 2009 Option Exchange Plan 2,914 719 - Inducement Plan 433 216 - ESPP 9,033 - 2,451 94,982 9,522 16,713 |
Fair Value Assumptions In Lattice Model For Options Awarded | Year Ended January 1, 2016 January 2, 2015 Expected volatilities 32.1% 32.2% Dividend yields 4.0% 3.6% Risk-free interest rate 1.0% 0.8% Expected lives, in years 2.6 2.6 |
Summary Of Weighted-Average Fair Value Compensation Cost Per Share Of Awards Granted | Year Ended January 1, 2016 January 2, 2015 January 3, 2014 Options $ 1.88 $ 2.18 $ 1.67 Awards $ 14.20 $ 13.12 $ 8.58 |
Equity-Based Compensation Summary | Options Awards Aggregate information Shares Weighted-average 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 28, 2012 11,946 $ 14.90 3.7 3,367 Granted(1) 340 8.38 3,334 Exercised (2) (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 (1) 70 13.45 2,109 Exercised (2) (1,205) 12.36 (1,153) Canceled (978) 19.28 (309) Outstanding as of January 2, 2015 5,383 $ 12.65 2.9 5,251 Granted (1) 40 12.01 6.3 2,321 Exercised (2) (908) 12.01 1.8 (1,527) Canceled (502) 18.02 1.2 (536) Outstanding as of January 1, 2016 4,013 $ 12.02 2.2 5,509 $ 75,432 $ 29,042 As of January 1, 2016: Exercisable/vested (2) 3,881 $ 12.01 2.1 67 $ 5,974 Vested and expected to vest 4,013 $ 12.02 2.2 4,078 $ 57,278 (1) Grants include 360,153 , 433,564 , and 784,000 MSU Awards issued in 2015, 2014, and 2013, respectively. (2) Awards exercised are those that have reached full vested status and have 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 1, 2016 were 67 thousand shares as shown in the Awards column as Exercisable/vested. |
Equity-Based Compensation, Additional Disclosures | Additional Disclosures Year Ended January 1, 2016 January 2, 2015 January 3, 2014 (in thousands) Shares issued under the employee stock purchase plan 537 495 712 Aggregate intrinsic value of stock options exercised $ 2,243 $ 2,445 $ 175 |
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 2, 2015 717 $ 2.86 5,184 $ 10.51 Granted 40 1.88 2,321 14.20 Vested (573) 2.23 (1,527) 10.37 Forfeited (52) 2.79 (536) 11.18 Unvested as of January 1, 2016 132 $ 5.29 5,442 $ 12.28 |
Equity-Based Compensation Expense | Year Ended January 1, 2016 January 2, 2015 January 3, 2014 By statement of income line item Cost of revenue $ 1,400 $ 1,326 $ 1,387 Research and development $ 10,167 $ 8,468 $ 7,777 Selling, general and administrative $ 11,591 $ 8,894 $ 9,927 By stock type Stock options $ 617 $ 1,189 $ 4,690 Restricted and deferred stock awards $ 21,464 $ 16,493 $ 13,378 Employee stock purchase plan $ 1,077 $ 1,006 $ 1,023 |
Performance-Based Grants | January 1, 2016 Options Awards (in thousands) Performance and market-based units outstanding 368 1,393 Maximum shares that could be issued assuming the highest level of performance 341 2,948 Performance and market-based shares vested / expected to vest 341 1,552 Amount to be recognized as compensation cost over the performance period $ - $ 1,778 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jan. 01, 2016 | |
Commitments and Contingencies [Abstract] | |
Schedule Of Future Contractual Obligations And Off Balance Sheet Arrangements | Future minimum lease commitments Non-cancelable purchase commitments 2016 $ 5,540 $ 22,773 2017 4,958 - 2018 4,309 - 2019 3,128 - Thereafter 10,140 - Total future minimum commitments $ 28,075 $ 22,773 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Jan. 01, 2016 | |
Quarterly Financial Data [Abstract] | |
Summary of Unaudited Quarterly Financial Information | Quarters Ended Jan 1, 2016 Oct 2, 2015 Jul 3, 2015 Apr 3, 2015 Jan 2, 2015 Oct 3, 2014 Jul 4, 2014 Apr 4, 2014 Revenue $ 126,626 $ 128,396 $ 132,441 $ 134,153 $ 131,126 $ 143,612 $ 147,761 $ 140,056 Gross profit 72,919 76,058 78,493 80,326 78,193 83,849 85,808 78,905 Net income (loss) 21,302 16,984 37,724 (68,824) 17,274 13,887 13,646 10,005 Income (loss) per share (basic): 0.16 0.13 0.29 (0.53) 0.13 0.11 0.11 0.08 Income (loss) per share (diluted): 0.16 0.13 0.28 (0.53) 0.13 0.10 0.10 0.08 |
Significant Accounting Polici41
Significant Accounting Policies (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2016USD ($)segment | Jan. 02, 2015USD ($) | Jan. 03, 2014USD ($) | |
Significant Accounting Policies [Line Items] | |||
Deferred compensation investments | $ 9,855 | $ 11,144 | |
Gain on deferred compensation investments, net | 300 | 500 | $ 1,500 |
Deferred Compensation expense | 100 | 700 | 1,700 |
Advertising expense | $ 4,500 | 4,200 | 3,400 |
Percentage of grants vesting in first year | 25.00% | ||
Cumulative translation adjustments in AOCI | $ 300 | 900 | 2,700 |
Number of reportable segments | segment | 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] | |||
Options contract period (in years) | 4 years | ||
Options [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Options contract period (in years) | 3 years | ||
Foreign Pension Plan [Member] | |||
Significant Accounting Policies [Line Items] | |||
Accrued liabilities relating to unfunded plans | $ 7,800 | 6,800 | |
Retirement plans expense | $ 900 | 800 | 3,600 |
Pension Plan [Member] | |||
Significant Accounting Policies [Line Items] | |||
Vesting period | 5 years | ||
Retirement plans expense | $ 4,800 | $ 4,500 | $ 5,400 |
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 Polici42
Significant Accounting Policies (Summary Of Deferred Net Revenue) (Details) - USD ($) $ in Thousands | Jan. 01, 2016 | Jan. 02, 2015 |
Significant Accounting Policies [Abstract] | ||
Deferred revenue | $ 17,626 | $ 14,546 |
Deferred cost of revenue | (3,144) | (2,915) |
Deferred income | $ 14,482 | $ 11,631 |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) - USD ($) $ in Thousands | Sep. 08, 2015 | Jan. 01, 2016 | Jan. 02, 2015 |
Business Acquisition [Line Items] | |||
Goodwill | $ 571,770 | $ 565,424 | |
Great Wall Semiconductor (“GWS”) [Member] | |||
Business Acquisition [Line Items] | |||
Business acquisition, date of acquisition | Sep. 8, 2015 | ||
Business acquisition purchase consideration | $ 18,909 | ||
Adjustments for contingencies and working capital adjustments | 2,800 | ||
Purchase consideration amount held in escrow, period | 16 months | ||
Goodwill | 6,346 | ||
Great Wall Semiconductor (“GWS”) [Member] | Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Business combination, cash earn-out payment | $ 4,000 |
Business Combinations (Purchase
Business Combinations (Purchase Price Allocation at Date of Acquisition) (Details) - USD ($) $ in Thousands | Jan. 01, 2016 | Sep. 08, 2015 | Jan. 02, 2015 |
Business Acquisition [Line Items] | |||
Goodwill | $ 571,770 | $ 565,424 | |
GreatWallSemiconductor [Member] | |||
Business Acquisition [Line Items] | |||
Cash | $ 201 | ||
Account receivable | 346 | ||
Prepaid expenses & other assets | 319 | ||
Goodwill | 6,346 | ||
Total assets acquired | 22,944 | ||
Accounts payable | 703 | ||
Accrued expenses | 97 | ||
Deferred revenue | 266 | ||
Deferred taxes, non-current | 2,969 | ||
Total liabilities acquired | 4,035 | ||
Net assets acquired | 18,909 | ||
Developed Technologies [Member] | GreatWallSemiconductor [Member] | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets, other than Goodwill | 13,232 | ||
Customer Relationships [Member] | GreatWallSemiconductor [Member] | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets, other than Goodwill | $ 2,500 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jan. 01, 2016 | Jan. 02, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation investments | $ 9,855 | $ 11,144 |
Total assets measured at fair value | 9,855 | 11,144 |
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 | 400 | 353 |
Total assets measured at fair value | 400 | 353 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation investments | 9,455 | 10,791 |
Total assets measured at fair value | 9,455 | 10,791 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | $ 0 | $ 0 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) $ in Millions | Jan. 01, 2016USD ($) |
Inventories [Member] | |
Long-term Purchase Commitment [Line Items] | |
Purchase Commitment, Remaining Minimum Amount Committed | $ 18.7 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jan. 01, 2016 | Jan. 02, 2015 |
Inventories [Abstract] | ||
Finished products | $ 22,522 | $ 22,758 |
Work in process | 38,238 | 47,083 |
Raw materials | 4,574 | 3,929 |
Total inventories | $ 65,334 | $ 73,770 |
Property, Plant And Equipment48
Property, Plant And Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 15,285 | $ 19,423 | $ 18,950 |
Capital Addition Purchase Commitments [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Purchase Commitment, Remaining Minimum Amount Committed | $ 3,100 |
Property, Plant And Equipment49
Property, Plant And Equipment (Summary Of Property, Plant And Equipment) (Details) - USD ($) $ in Thousands | Jan. 01, 2016 | Jan. 02, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | $ 344,396 | $ 332,675 |
Accumulated depreciation and leasehold amortization | (273,352) | (260,403) |
Property, Plant and Equipment, Net | 71,044 | 72,272 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 1,708 | 1,708 |
Buildings and Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 60,939 | 60,728 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 267,832 | 264,325 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | $ 13,917 | $ 5,914 |
Goodwill And Purchased Intang50
Goodwill And Purchased Intangibles (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Apr. 03, 2015item | Jan. 01, 2016USD ($)segment | Jan. 02, 2015USD ($)item | Jan. 03, 2014USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||
Number of Reportable Segments | segment | 1 | |||
Number of reporting units | item | 3 | 4 | ||
Impairment of goodwill | $ | $ 0 | $ 0 | $ 0 | |
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 | 3 years | |||
Definite-Lived: Other [Member] | Maximum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite lived intangible asset useful life | 7 years |
Goodwill And Purchased Intang51
Goodwill And Purchased Intangibles (Summary Of Changes in Net Goodwill Balance) (Details) $ in Thousands | 12 Months Ended |
Jan. 01, 2016USD ($) | |
Goodwill And Purchased Intangibles [Abstract] | |
Gross goodwill balance, beginning of period | $ 1,720,100 |
Accumulated impairment charge | (1,154,676) |
Goodwill from GWS acquisition | 6,346 |
Net goodwill balance, end of period | $ 571,770 |
Goodwill And Purchased Intang52
Goodwill And Purchased Intangibles (Purchased Intangibles) (Details) - USD ($) $ in Thousands | Jan. 01, 2016 | Jan. 02, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 109,732 | $ 133,900 |
Accumulated amortization | 77,225 | 99,500 |
Total expected amortization expense | 32,507 | 34,400 |
Developed Technologies [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 63,032 | 89,700 |
Accumulated amortization | 36,065 | 66,654 |
Total expected amortization expense | 26,967 | 23,046 |
Definite-Lived: Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 46,700 | 44,200 |
Accumulated amortization | 41,160 | 32,846 |
Total expected amortization expense | $ 5,540 | $ 11,354 |
Goodwill And Purchased Intang53
Goodwill And Purchased Intangibles (Expected Amortization Expense) (Details) - USD ($) $ in Thousands | Jan. 01, 2016 | Jan. 02, 2015 |
Goodwill And Purchased Intangibles [Abstract] | ||
2,016 | $ 11,734 | |
2,017 | 9,480 | |
2,018 | 4,362 | |
2,019 | 1,890 | |
2020 and thereafter | 5,041 | |
Total expected amortization expense | $ 32,507 | $ 34,400 |
Restructuring and Related Cos54
Restructuring and Related Costs (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Restructuring and Related Cost [Abstract] | |||
Restructuring and related costs | $ 28,694 | ||
Restructuring activity from the July 2013 plan [Member] | |||
Restructuring and Related Cost [Abstract] | |||
Restructuring and related costs | $ 500 | $ 700 | |
Restructuring and related cost, number of positions eliminated | 12.00% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Income Taxes [Line Items] | |||
Tax benefit from exercise of stock options under ESPP | $ 3,200 | $ 2,400 | $ 1,300 |
Net operating losses from acquisitions | 43,400 | ||
Gross federal R&D credit carryforwards | 17,400 | ||
Increase (decrease) in unrecognized tax benefits | (7,400) | 400 | 1,800 |
Cash payment from settlement with tax authorities | 600 | 500 | 900 |
Decreases related to lapses of statutes of limitations | (73,395) | ||
Settlements with tax authorities | 548 | 24,804 | 25,555 |
Income taxes paid | 8,000 | 29,000 | $ 16,600 |
Accumulated undistributed earnings from international subsidiaries | $ 276,300 | ||
Malaysia Tax [Member] | |||
Income Taxes [Line Items] | |||
Income tax holiday tax rate | 0.00% | ||
Income tax holiday, termination date | July 1, 2019 | ||
Tax Years 2010 to 2012 [Member] | Internal Revenue Service (IRS) [Member] | |||
Income Taxes [Line Items] | |||
Cash payment from settlement with tax authorities | $ 600 | 5,600 | |
Settlements with tax authorities | 16,400 | ||
Decrease in deferred tax assets related to federal R&D tax credits | 4,200 | ||
Decreases related to settlements with tax authorities | 6,600 | ||
Tax Years 2009 to 2012 [Member] | Swiss Federal Tax Administration (FTA) [Member] | |||
Income Taxes [Line Items] | |||
Cash payment from settlement with tax authorities | 2,700 | ||
Settlements with tax authorities | 7,500 | ||
Cash payment due to additional tax from settlement with tax authorities | 2,400 | ||
Cash payment due to interest from settlement with tax authorities | 300 | ||
Decrease in deferred tax asset related to net operating loss | 4,800 | ||
Tax Years 2008-2009 [Member] | Internal Revenue Service (IRS) [Member] | |||
Income Taxes [Line Items] | |||
Cash payment from settlement with tax authorities | 300 | ||
Tax Years 2005-2007 [Member] | Internal Revenue Service (IRS) [Member] | |||
Income Taxes [Line Items] | |||
Cash payment from settlement with tax authorities | $ 600 | ||
State and Local Jurisdiction [Member] | Tax Years 2010 to 2012 [Member] | |||
Income Taxes [Line Items] | |||
Cash payment from settlement with tax authorities | 600 | ||
Foreign Net Operating Losses [Member] | |||
Income Taxes [Line Items] | |||
Net deferred tax assets attributable to NOLs | $ 10,300 |
Income Taxes (Summary Of Income
Income Taxes (Summary Of Income (Loss) Before Income Taxes Allocated Between Domestic and Foreign Jurisdictions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Income Taxes [Abstract] | |||
Domestic | $ 32,729 | $ 51,959 | $ 22,140 |
Foreign | (47,501) | 22,574 | (8,263) |
(Loss) income before taxes | $ (14,772) | $ 74,533 | $ 13,877 |
Income Taxes (Components Of Inc
Income Taxes (Components Of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Income Taxes [Abstract] | |||
Federal | $ (18,221) | $ (14,366) | $ (2,090) |
State | 113 | (865) | 34 |
Foreign | 2,422 | (617) | 2,879 |
Current Income Tax Expense (Benefit), Total | (15,686) | (15,848) | 823 |
Federal | (6,391) | 23,337 | 11,911 |
State | (24) | 2,536 | 545 |
Foreign | 143 | 9,696 | (2,257) |
Total deferred income tax expense | (6,272) | 35,569 | 10,199 |
Income tax (benefit) expense | $ (21,958) | $ 19,721 | $ 11,022 |
Income Taxes (Summary Of Tax Ho
Income Taxes (Summary Of Tax Holiday Operating Benefits) (Details) - Malaysia Tax [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Tax effects from earnings / (losses) attributable to Malaysia | $ (11,628) | $ 5,611 | $ (2,483) |
Income tax holidy, effect on earnings (loss) per share, basic | $ (0.09) | $ 0.04 | $ (0.02) |
Income tax holidy, effect on earnings (loss) per share, diluted | $ (0.09) | $ 0.04 | $ (0.02) |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jan. 01, 2016 | Jan. 02, 2015 |
Net deferred tax assets: current | $ 20,433 | |
Net deferred tax assets: non-current | $ 63,139 | 39,334 |
Current [Member] | ||
Inventories | 14,170 | |
Accrued expenses | 4,869 | |
Net operating loss carryforward | 1,025 | |
Deferred revenue | 4,179 | |
Other, net | 458 | |
Deferred tax assets: current | 24,701 | |
Valuation allowance: current | (4,268) | |
Net deferred tax assets: current | 20,433 | |
Non-Current [Member] | ||
Inventories | 13,049 | |
Property, plant and equipment | 1,681 | 4,158 |
Accrued expenses | 4,658 | |
Equity-based compensation | 6,480 | 6,561 |
Net operating loss carryforward | 25,584 | 19,766 |
Capitalized research and development | 108 | 797 |
Deferred compensation | 4,350 | 3,187 |
Deferred revenue | 5,526 | |
Tax credits | 43,010 | 24,877 |
Capital loss carryforward | 6,592 | 6,628 |
Other, net | 298 | 3,826 |
Deferred tax assets: non-current | 111,336 | 69,800 |
Deferred tax liabilities: intangibles | (4,642) | |
Deferred tax liabilities | (4,642) | |
Valuation allowance: non-current | (43,555) | (30,466) |
Net deferred tax assets: non-current | $ 63,139 | $ 39,334 |
Income Taxes (Summary Of Valuat
Income Taxes (Summary Of Valuation Allowance) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 01, 2016 | Jan. 02, 2015 | |
Valuation Allowance [Line Items] | ||
Balance as of beginning of period | $ 34,733 | $ 28,256 |
Balance as of end of period | 43,555 | 34,733 |
State Attributes [Member] | ||
Valuation Allowance [Line Items] | ||
Increase (decrease) in valuation allowance | 5,745 | (48) |
Foreign Net Operating Losses [Member] | ||
Valuation Allowance [Line Items] | ||
Increase (decrease) in valuation allowance | 3,113 | 7,160 |
Capital Losses [Member] | ||
Valuation Allowance [Line Items] | ||
Increase (decrease) in valuation allowance | $ (36) | $ (635) |
Income Taxes (Income Tax Rate R
Income Taxes (Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Income Taxes [Abstract] | |||
Statutory U.S. income tax rate | 35.00% | 35.00% | 35.00% |
Tax at federal statutory income tax rate | $ (5,169) | $ 26,087 | $ 4,857 |
State taxes | 1,775 | 1,356 | 1,198 |
Effect of Foreign Operations | 15,853 | (7,918) | 3,505 |
International equity-based compensation | 349 | 748 | 2,422 |
Research credits | (5,741) | (4,608) | (10,313) |
Change in unrecognized tax benefits | (28,002) | 2,765 | 116 |
Subpart F interest & stock gain | 155 | 437 | 326 |
Manufacturing deduction | (529) | (675) | (370) |
Amortization of deferred tax charge | (3,999) | (2,964) | (2,964) |
Tax shortfalls on equity based compensation | 92 | 1,381 | 3,277 |
Export compliance settlement | 1,400 | 2,100 | |
Interest | 779 | ||
Royalty Income | 4,717 | 5,215 | 5,557 |
Deferred tax true-ups | (1,205) | (2,299) | |
Other items | (254) | (1,204) | 532 |
Income tax (benefit) expense | $ (21,958) | $ 19,721 | $ 11,022 |
Income Taxes (Summary Of Activi
Income Taxes (Summary Of Activity In Unrecognized Tax Benefits Resulting From Uncertain Tax Positions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Beginning balance (includes $7,538 thousand of interest and penalties as of January 2, 2015) | $ 78,206 | $ 99,343 | $ 112,867 |
Increases related to current year tax positions | 3,004 | 1,152 | 1,157 |
Increases related to prior year tax positions | 2,515 | 10,874 | |
Settlements with tax authorities | (548) | (24,804) | (25,555) |
Increases related acquisitions | 1,464 | ||
Decreases related to lapses of statutes of limitations | (73,395) | ||
Ending balance (includes $124 thousand of interest and penalties as of January 1, 2016) | 8,731 | 78,206 | $ 99,343 |
Interest and penalties | $ 124 | $ 7,538 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 01, 2016 | Jan. 02, 2015 | Sep. 01, 2011 | Aug. 31, 2011 | |
Debt Instrument [Line Items] | ||||
Outstanding letters of credit | $ 1.3 | $ 1.3 | ||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Term of credit facility | 5 years | |||
Debt instrument, issuance date | Sep. 1, 2011 | |||
Credit facility maximum borrowing capacity | $ 325 | |||
Debt instrument maturity date | Sep. 1, 2016 | |||
Increase in additional borrowing capacity | $ 75 | |||
Credit facility outstanding borrowings | 0 | $ 0 | ||
Standby Letters of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility maximum borrowing capacity | $ 25 | |||
Previous Term-Loan Facility | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Term of credit facility | 6 years | |||
Credit facility maximum borrowing capacity | $ 300 | |||
Previous Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility maximum borrowing capacity | $ 75 | |||
Swing Line Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility maximum borrowing capacity | $ 10 | |||
Multicurrency Borrowings [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility maximum borrowing capacity | $ 50 | |||
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 | |||
Eurodollar Borrowing Period Five [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument borrowing period | 12 months | |||
Eurocurrency Rate Loans | ||||
Debt Instrument [Line Items] | ||||
Debt instrument variable interest rate | 1.00% | |||
Eurocurrency Rate Loans | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument variable interest rate | 1.75% | |||
Eurocurrency Rate Loans | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument variable interest rate | 2.75% | |||
Base Rate Loans | ||||
Debt Instrument [Line Items] | ||||
Debt instrument variable interest rate | 0.50% | |||
Base Rate Loans | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument variable interest rate | 0.75% | |||
Base Rate Loans | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument variable interest rate | 1.75% |
Common Stock And Dividends (Nar
Common Stock And Dividends (Narrative) (Details) - $ / shares | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 31, 2016 | Jan. 02, 2015 | |
Dividends Payable [Line Items] | |||
Class A common stock, shares authorized | 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, par value | $ 0.01 | $ 0.01 | |
Preferred Stock Shares Outstanding | 0 | 0 | |
Dividend declared date | Jan. 31, 2016 | ||
Dividend record date | Feb. 16, 2016 | ||
Dividend payable date | Feb. 26, 2016 | ||
Subsequent Event [Member] | |||
Dividends Payable [Line Items] | |||
Dividends declared and payable, amount per share | $ 0.12 |
Common Stock And Dividends (Sha
Common Stock And Dividends (Share Activity For Class A Common Stock) (Details) | 12 Months Ended |
Jan. 01, 2016shares | |
Common Stock And Dividends [Abstract] | |
Beginning balance | 130,216,901 |
Shares issued under stock plans, net of shares withheld for taxes | 2,511,000 |
Ending balance | 132,728,391 |
Risks And Uncertainties (Narrat
Risks And Uncertainties (Narrative) (Details) | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Revenue [Member] | Supplier Concentration Risk [Member] | Distributor I [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 20.70% | 18.40% | 17.00% |
Trade Receivable [Member] | Supplier Concentration Risk [Member] | Distributor I [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 17.80% | 24.40% | |
Wafers [Member] | Supplier Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 86.00% | 86.90% | |
KOREA, REPUBLIC OF | Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 1.00% | 1.00% | |
JAPAN | Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 1.00% | 1.00% | |
GERMANY | Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 1.00% | 1.00% | |
SINGAPORE | Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 1.00% | 1.00% | |
TAIWAN, PROVINCE OF CHINA | Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 1.00% | 1.00% | |
THAILAND | Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 1.00% | 1.00% |
Risks And Uncertainties (Sales
Risks And Uncertainties (Sales By Country) (Details) - Revenue [Member] | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
China [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 47.10% | 50.90% | 52.90% |
United States [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 17.40% | 18.10% | 15.70% |
Risks And Uncertainties (Operat
Risks And Uncertainties (Operations By Geographic Area) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 521,616 | $ 562,555 | $ 575,195 |
Tangible long-lived assets | 71,044 | 72,272 | |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 91,932 | 101,268 | 90,348 |
Tangible long-lived assets | 52,991 | 55,681 | 59,469 |
International Operations [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 429,684 | 461,287 | 484,847 |
Tangible long-lived assets | $ 18,053 | $ 16,591 | $ 22,398 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 01, 2016 | Oct. 02, 2015 | Jul. 03, 2015 | Apr. 03, 2015 | Jan. 02, 2015 | Oct. 03, 2014 | Jul. 04, 2014 | Apr. 04, 2014 | Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Net income to common stockholders | $ 7,186 | $ 54,812 | $ 2,855 | ||||||||
Denominator for basic earnings per share—weighted average common shares | 131,793 | 129,149 | 127,151 | ||||||||
Effect of stock options and awards | 1,480 | 3,508 | 847 | ||||||||
Denominator for diluted earnings per share—adjusted weighted average common shares | 133,273 | 132,657 | 127,998 | ||||||||
Basic | $ 0.16 | $ 0.13 | $ 0.29 | $ (0.53) | $ 0.13 | $ 0.11 | $ 0.11 | $ 0.08 | $ 0.05 | $ 0.42 | $ 0.02 |
Diluted | $ 0.16 | $ 0.13 | $ 0.28 | $ (0.53) | $ 0.13 | $ 0.10 | $ 0.10 | $ 0.08 | $ 0.05 | $ 0.41 | $ 0.02 |
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 | |||||||||
Options [Member] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Anti-dilutive shares not included in the above calculations | 1,194 | 1,128 | 6,774 |
Equity-Based Compensation (Summ
Equity-Based Compensation (Summary Of Equity Compensation Arrangement) (Details) shares in Thousands | Jan. 01, 2016shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total Number of Shares in Arrangement | 94,982 |
Shares Outstanding | 9,522 |
Shares Available for Issuance | 16,713 |
1999 Plan [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total Number of Shares in Arrangement | 36,250 |
Shares Outstanding | 24 |
2008 Plan [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total Number of Shares in Arrangement | 46,352 |
Shares Outstanding | 8,563 |
Shares Available for Issuance | 14,262 |
2009 Option Exchange Plan [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total Number of Shares in Arrangement | 2,914 |
Shares Outstanding | 719 |
Inducement Plan [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total Number of Shares in Arrangement | 433 |
Shares Outstanding | 216 |
Employee Stock Purchase Plan [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total Number of Shares in Arrangement | 9,033 |
Shares Available for Issuance | 2,451 |
Equity-Based Compensation (Fair
Equity-Based Compensation (Fair Value Assumptions In Lattice Model For Options Awarded) (Details) | 12 Months Ended | |
Jan. 01, 2016 | Jan. 02, 2015 | |
Equity-Based Compensation [Abstract] | ||
Expected volatilities | 32.10% | 32.20% |
Dividend yields | 4.00% | 3.60% |
Risk-free interest rate | 1.00% | 0.80% |
Expected lives, in years | 2 years 7 months 6 days | 2 years 7 months 6 days |
Equity-Based Compensation (Su72
Equity-Based Compensation (Summary Of Weighted-Average Fair Value Compensation Cost Per Share Of Awards Granted) (Details) - $ / shares | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Equity-Based Compensation [Abstract] | |||
Weighted-average fair value compensation cost per share of Options | $ 1.88 | $ 2.18 | $ 1.67 |
Weighted-average fair value compensation cost per share of Awards | $ 14.20 | $ 13.12 | $ 8.58 |
Equity-Based Compensation (Equi
Equity-Based Compensation (Equity Based Compensation Summary) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares, Outstanding, Beginning balance | 5,383,000 | 7,496,000 | 11,946,000 | ||
Shares, Granted | [1] | 40,000 | 70,000 | 340,000 | |
Shares, Exercised | [2] | (908,000) | (1,205,000) | (106,000) | |
Shares, Canceled | (502,000) | (978,000) | (4,684,000) | ||
Shares, Outstanding, Ending balance | 4,013,000 | 5,383,000 | 7,496,000 | 11,946,000 | |
Shares, Exercisable/vested | [2] | 3,881,000 | |||
Shares, Number vested and expected to vest | 4,013,000 | ||||
Options, Weighted-average price (per share), Outstanding, beginning balance | $ 12.65 | $ 13.46 | $ 14.90 | ||
Options, Weighted-average price (per share), Granted | [1] | 12.01 | 13.45 | 8.38 | |
Options, Weighted-average price (per share), Exercised | [2] | 12.01 | 12.36 | 8.34 | |
Options, Weighted-average price (per share), Canceled | 18.02 | 19.28 | 16.89 | ||
Options, Weighted-average price (per share), Outstanding, ending balance | 12.02 | $ 12.65 | $ 13.46 | $ 14.90 | |
Options, Weighted-average price (per share), Exercisable/vested | [2] | 12.01 | |||
Options, Weighted-average price (per share), Number vested and expected to vest | $ 12.02 | ||||
Options, Weighted-average remaining contract lives (in years), Outstanding | 2 years 2 months 12 days | 2 years 10 months 24 days | 3 years 3 months 18 days | 3 years 8 months 12 days | |
Options, Weighted-average remaining contract lives (in years), Granted | [1] | 6 years 3 months 18 days | |||
Options, Weighted-average remaining contract lives (in years), Exercised | [2] | 1 year 9 months 18 days | |||
Options, Weighted-average remaining contract lives (in years), Canceled | 1 year 2 months 12 days | ||||
Options, Weighted-average remaining contract lives (in years), Exercisable/vested | [2] | 2 years 1 month 6 days | |||
Options, Weighted-average remaining contract lives (in years), Number vested and expected to vest | 2 years 2 months 12 days | ||||
Awards, Shares, Outstanding, Beginning balance | 5,251,000 | 4,604,000 | 3,367,000 | ||
Awards, Shares, Granted | [1] | 2,321,000 | 2,109,000 | 3,334,000 | |
Awards, Shares, Exercised | [2] | (1,527,000) | (1,153,000) | (931,000) | |
Awards, Shares, Canceled | (536,000) | (309,000) | (1,166,000) | ||
Awards, Shares, Outstanding, Ending Balance | 5,509,000 | 5,251,000 | 4,604,000 | 3,367,000 | |
Awards, Shares, Exercisable/Vested | [2] | 67,000 | |||
Awards, Shares, Number vested and expected to vest | 4,078,000 | ||||
Awards, Aggregate intrinsic value, Outstanding | $ 75,432 | ||||
Awards, Aggregate intrinsic value, Exercisable/vested | [2] | 5,974 | |||
Awards, Aggregate intrinsic value, Vested and expected to vest | 57,278 | ||||
Aggregate unrecognized compensation cost, Outstanding, ending balance | $ 29,042 | ||||
Weighted-average recognition period of unrecognized compensation cost, years | 1 year 9 months 15 days | ||||
MSU Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued under plan | 360,153 | 433,564 | 784,000 | ||
[1] | Grants include 360,153, 433,564, and 784,000 MSU Awards issued in 2015, 2014, and 2013, respectively. | ||||
[2] | Awards exercised are those that have reached full vested status and have 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 1, 2016 were 67 thousand shares as shown in the Awards column as Exercisable/vested. |
Equity-Based Compensation (Eq74
Equity-Based Compensation (Equity-Based Compensation, Additional Disclosures) (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Equity-Based Compensation [Abstract] | |||
Shares issued under the employee stock purchase plan | 537 | 495 | 712 |
Aggregate intrinsic value of stock options exercised | $ 2,243 | $ 2,445 | $ 175 |
Equity-Based Compensation (Su75
Equity-Based Compensation (Summary Of Number And Weighted-Average Grant Date Fair Values Of Unexercisable And Unvested Options And Awards) (Details) - $ / shares | 12 Months Ended | |||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted-average fair value compensation cost per share of Options | $ 1.88 | $ 2.18 | $ 1.67 | |
Awards Unvested, Granted | [1] | 2,321,000 | 2,109,000 | 3,334,000 |
Awards, Shares, Canceled | (536,000) | (309,000) | (1,166,000) | |
Awards, Weighted Average Grant Date Fair Values, Granted | $ 14.20 | $ 13.12 | $ 8.58 | |
Unvested Options [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options Unvested | 717,000 | |||
Shares, Granted | 40,000 | |||
Vested | (573,000) | |||
Forfeited | (52,000) | |||
Options Unvested | 132,000 | 717,000 | ||
Options, Weighted Average Grant Date Fair Values, Unvested | 2.86 | |||
Weighted-average fair value compensation cost per share of Options | $ 1.88 | |||
Options-Weighted Average Grant Date Fair Values, Vested | 2.23 | |||
Options-Weighted Average Grant Date Fair Values, Forfeited | 2.79 | |||
Options-Weighted Average Grant Date Fair Values, Unvested | 5.29 | 2.86 | ||
Unvested Awards [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Awards, Shares, Outstanding, Beginning balance | 5,184,000 | |||
Awards Unvested, Granted | 2,321,000 | |||
Awards, Shares, Vested | (1,527,000) | |||
Awards, Shares, Canceled | (536,000) | |||
Awards, Shares, Outstanding, Ending Balance | 5,442,000 | 5,184,000 | ||
Awards, Weighted Average Grant Date Fair Values, Unvested | $ 10.51 | |||
Awards, Weighted Average Grant Date Fair Values, Granted | 14.20 | |||
Awards, Weighted Average Grant Date Fair Values, Vested | 10.37 | |||
Awards, Weighted Average Grant Date Fair Values, Forfeited | 11.18 | |||
Awards, Weighted Average Grant Date Fair Values, Unvested | $ 12.28 | $ 10.51 | ||
[1] | Grants include 360,153, 433,564, and 784,000 MSU Awards issued in 2015, 2014, and 2013, respectively. |
Equity-Based Compensation (Eq76
Equity-Based Compensation (Equity-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Options [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Equity-based compensation expense | $ 617 | $ 1,189 | $ 4,690 |
Awards [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Equity-based compensation expense | 21,464 | 16,493 | 13,378 |
Employee Stock Purchase Plan [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Equity-based compensation expense | 1,077 | 1,006 | 1,023 |
Cost of Revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Equity-based compensation expense | 1,400 | 1,326 | 1,387 |
Research and Development Expense [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Equity-based compensation expense | 10,167 | 8,468 | 7,777 |
Selling, General and Administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Equity-based compensation expense | $ 11,591 | $ 8,894 | $ 9,927 |
Equity-Based Compensation (Mark
Equity-Based Compensation (Market and Performance-Based Grants) (Details) shares in Thousands, $ in Thousands | Jan. 01, 2016USD ($)shares |
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 | 341 |
Performance and market-based shares vested / expected to vest | 341 |
Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance and market-based units outstanding | 1,393 |
Maximum shares that could be issued assuming the highest level of performance | 2,948 |
Performance and market-based shares vested / expected to vest | 1,552 |
Amount to be recognized as compensation cost over the performance period | $ | $ 1,778 |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grants participants may receive from original grant | 0.00% |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grants participants may receive from original grant | 300.00% |
Commitments and Contingencies78
Commitments and Contingencies (Narrative) (Details) $ in Thousands | Sep. 28, 2015USD ($) | Mar. 06, 2015USD ($) | Jun. 16, 2014USD ($)item | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Apr. 04, 2014USD ($) | Oct. 04, 2013USD ($) | Jan. 01, 2016USD ($)claim | Jan. 02, 2015USD ($) | Jan. 03, 2014USD ($) |
Rent expense | $ 7,800 | $ 7,700 | $ 8,800 | |||||||
Future minimum lease commitments | 28,075 | |||||||||
Provision for TAOS litigation | 81,100 | |||||||||
Consent Agreement [Member] | ||||||||||
Agreement term with DTCC | 2 years | |||||||||
Charge recorded from legal matters | $ 4,000 | $ 6,000 | ||||||||
Amount spent to improve export compliance program | $ 3,000 | |||||||||
Consent Agreement [Member] | Civil Penality [Member] | ||||||||||
Accrual for loss contingency | $ 10,000 | |||||||||
Number of installments to settle legal payment | item | 2 | |||||||||
Consent Agreement [Member] | Civil Penality [Member] | Suspended And Eligible For Offset Credit [Member] | ||||||||||
Accrual for loss contingency | $ 4,000 | |||||||||
Consent Agreement [Member] | Civil Penality [Member] | Not Subject To Suspension [Member] | ||||||||||
Accrual for loss contingency | $ 6,000 | |||||||||
Payments for legal matters | $ 3,000 | $ 3,000 | ||||||||
TECTVT [Member] | Pending Litigation [Member] | ||||||||||
Loss contingency damage awarded value | $ 18,500 | |||||||||
Loss contingency damage sought value | $ 200,000 | |||||||||
TECTVT [Member] | Pending Litigation [Member] | Costs Related To Defending Lawsuit [Member] | ||||||||||
Loss contingency damage sought value | 11,200 | |||||||||
TECTVT [Member] | Pending Litigation [Member] | Costs Related To Remediation [Member] | ||||||||||
Loss contingency damage sought value | $ 15,900 | |||||||||
TAOS [Member] | ||||||||||
Lawsuit filed by TAOS, date | November 25, 2008 | |||||||||
Number of claims in favor of TAOS | claim | 4 | |||||||||
Legal costs incurred | $ 3,100 | |||||||||
Accrual for loss contingency | 78,000 | |||||||||
TAOS [Member] | Patent Infringement [Member] | ||||||||||
Loss contingency damage awarded value | $ 74 | |||||||||
TAOS [Member] | Actual Damage [Member] | ||||||||||
Loss contingency damage awarded value | 48,700 | |||||||||
TAOS [Member] | Pre-Judgment Interest [Member] | ||||||||||
Loss contingency damage sought value | $ 18,100 | |||||||||
TAOS [Member] | Other Duplicate Damages [Member] | ||||||||||
Loss contingency damage awarded value | 30,000 | |||||||||
TAOS [Member] | Exemplary Damage [Member] | ||||||||||
Loss contingency damage awarded value | $ 10,000 |
Commitments and Contingencies79
Commitments and Contingencies (Schedule Of Future Contractual Obligations And Off Balance Sheet Arrangements) (Details) $ in Thousands | Jan. 01, 2016USD ($) |
Commitments and Contingencies [Abstract] | |
Future minimum lease commitments due 2016 | $ 5,540 |
Future minimum lease commitments due 2017 | 4,958 |
Future minimum lease commitments due 2018 | 4,309 |
Future minimum lease commitments due 2019 | 3,128 |
Future minimum lease commitments due thereafter | 10,140 |
Total future minimum lease commitments | 28,075 |
Non-cancelable purchase commitments due 2016 | 22,773 |
Total non-cancelable purchase commitments | $ 22,773 |
Quarterly Financial Data (Summa
Quarterly Financial Data (Summary Of Unaudited Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 01, 2016 | Oct. 02, 2015 | Jul. 03, 2015 | Apr. 03, 2015 | Jan. 02, 2015 | Oct. 03, 2014 | Jul. 04, 2014 | Apr. 04, 2014 | Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Quarterly Financial Data [Abstract] | |||||||||||
Revenue | $ 126,626 | $ 128,396 | $ 132,441 | $ 134,153 | $ 131,126 | $ 143,612 | $ 147,761 | $ 140,056 | |||
Gross Profit | $ 72,919 | $ 76,058 | $ 78,493 | $ 80,326 | $ 78,193 | $ 83,849 | $ 85,808 | $ 78,905 | $ 307,796 | $ 326,755 | $ 316,607 |
Income (loss) per share (basic): | $ 0.16 | $ 0.13 | $ 0.29 | $ (0.53) | $ 0.13 | $ 0.11 | $ 0.11 | $ 0.08 | $ 0.05 | $ 0.42 | $ 0.02 |
Income (loss) per share (diluted): | $ 0.16 | $ 0.13 | $ 0.28 | $ (0.53) | $ 0.13 | $ 0.10 | $ 0.10 | $ 0.08 | $ 0.05 | $ 0.41 | $ 0.02 |
Net (loss) income | $ 21,302 | $ 16,984 | $ 37,724 | $ (68,824) | $ 17,274 | $ 13,887 | $ 13,646 | $ 10,005 |
Valuation And Qualifying Acco81
Valuation And Qualifying Accounts (Summary Of Valuation And Qualifying Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Allowance For Uncollectible Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation Allowances and Reserves, Balance, Beginning Balance | $ 3 | $ 526 | $ 26 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 210 | 1,319 | |
Valuation Allowances and Reserves, Charged to Other Accounts | (733) | (819) | |
Valuation Allowances and Reserves, Deductions | |||
Valuation Allowances and Reserves, Balance, Ending Balance | $ 3 | 3 | 526 |
Allowance for Sales Returns [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation Allowances and Reserves, Balance, Beginning Balance | 13,287 | 13,754 | 14,865 |
Valuation Allowances and Reserves, Charged to Cost and Expense | $ 88,582 | 101,321 | 86,520 |
Valuation Allowances and Reserves, Charged to Other Accounts | (599) | ||
Valuation Allowances and Reserves, Deductions | $ (87,238) | (101,788) | (87,032) |
Valuation Allowances and Reserves, Balance, Ending Balance | $ 14,631 | $ 13,287 | $ 13,754 |