Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Feb. 26, 2015 | Jun. 27, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | LATTICE SEMICONDUCTOR CORP | ||
Entity Central Index Key | 855658 | ||
Document Type | 10-K | ||
Document Period End Date | 3-Jan-15 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -2 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding (actual number) | 116,645,921 | ||
Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Filer | No | ||
Entity Public Float | $760,876,091 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $115,611 | $114,310 |
Accounts receivable, net | 62,372 | 50,085 |
Inventories | 64,925 | 46,222 |
Prepaid expenses and other current assets | 16,281 | 13,679 |
Total current assets | 398,422 | 325,801 |
Property and equipment, less accumulated depreciation | 27,796 | 41,719 |
Other long-term assets | 9,862 | 6,120 |
Intangible assets, net of amortization | 9,537 | 12,484 |
Goodwill | 44,808 | 44,808 |
Deferred income taxes | 20,105 | 11,703 |
Total assets | 510,530 | 447,876 |
Current liabilities: | ||
Accounts payable and accrued expenses | 32,171 | 37,454 |
Accrued payroll obligations | 13,629 | 13,659 |
Deferred income and allowances on sales to sell-through distributors | 14,946 | 7,495 |
Total current liabilities | 60,746 | 58,608 |
Long-term liabilities | 8,809 | 3,588 |
Total liabilities | 69,555 | 62,196 |
Stockholders' equity: | ||
Preferred stock, $.01 par value, 10,000,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $.01 par value, 300,000,000 shares authorized; 117,288,000 shares issued and outstanding as of January 3, 2015 and 115,671,000 shares issued and outstanding as of December 28, 2013 | 1,173 | 1,157 |
Paid-in capital | 635,299 | 626,861 |
Accumulated other comprehensive loss | -1,884 | -145 |
Accumulated deficit | -193,613 | -242,193 |
Total stockholders' equity | 440,975 | 385,680 |
Total liabilities and stockholders' equity | 510,530 | 447,876 |
Available-for-sale Securities, Current | 139,233 | 101,505 |
Available-for-sale Securities, Noncurrent | $0 | $5,241 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets Parentheticals (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share | $0.01 | $0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 117,288,000 | 115,671,000 |
Common stock, shares outstanding | 117,288,000 | 115,671,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Income Statement [Abstract] | |||
Revenue | $366,127 | $332,525 | $279,256 |
Costs and expenses: | |||
Cost of products sold | 159,940 | 154,281 | 128,499 |
Research and development | 88,079 | 80,966 | 77,610 |
Selling, general and administrative | 73,527 | 67,144 | 72,317 |
Acquisition related charges, including amortization of intangible assets | 2,948 | 2,960 | 4,178 |
Restructuring charges | 17 | 388 | 6,018 |
Costs and expenses | 324,511 | 305,739 | 288,622 |
Income (loss) from operations | 41,616 | 26,786 | -9,366 |
Other income (expense), net | 1,325 | -300 | 505 |
Income (loss) before taxes | 42,941 | 26,486 | -8,861 |
Income tax (benefit) expense | -5,639 | 4,165 | 20,745 |
Net income (loss) | $48,580 | $22,321 | ($29,606) |
Net income (loss) per share | |||
Basic (in dollars per share) | $0.41 | $0.19 | ($0.25) |
Diluted (in dollars per share) | $0.40 | $0.19 | ($0.25) |
Shares used in per share calculations: | |||
Basic (in shares) | 117,708 | 115,701 | 117,194 |
Diluted (in shares) | 120,245 | 117,081 | 117,194 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) Statement (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $48,580 | $22,321 | ($29,606) |
Unrealized (loss) gain related to marketable securities, net | -373 | 284 | -57 |
Reclassification adjustment for losses (gains) included in net income (loss) | 170 | 337 | -78 |
Realized gain on sale of auction rate securities, previously unrealized, net of tax | -1,147 | 0 | 0 |
Translation adjustment (loss) gain | -330 | -505 | 219 |
Other | -59 | 0 | 0 |
Comprehensive income (loss) | $46,841 | $22,437 | ($29,522) |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Common stock | Paid-in capital | Treasury stock | Accumulated deficit | Accumulated other comprehensive loss |
In Thousands, except Share data | ||||||
Balances at Dec. 31, 2011 | $393,561 | $1,177 | $627,637 | $0 | ($234,908) | ($345) |
Balances (shares) at Dec. 31, 2011 | 117,675,000 | |||||
Net income (loss) | -29,606 | -29,606 | ||||
Unrealized gain (loss) related to marketable securities, net | -57 | -57 | ||||
Realized gain on sale of auction rate securities, previously unrealized, net of tax | 0 | |||||
Recognized loss on redemption of marketable securities, previously unrealized | -78 | -78 | ||||
Translation adjustments | 219 | 219 | ||||
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs (net of taxes) (shares) | 1,896,000 | |||||
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs (net of tax) | 3,550 | 19 | 3,531 | |||
Stock repurchase (shares) | 0 | |||||
Stock repurchase | -17,549 | 0 | -17,549 | |||
Retirement of treasury stock (shares) | -4,071,000 | |||||
Retirement of treasury stock | 0 | -41 | -17,508 | 17,549 | ||
Stock-based compensation expense related to options, ESPP and RSUs | 7,510 | 7,510 | ||||
Other | 0 | |||||
Balances at Dec. 29, 2012 | 357,550 | 1,155 | 621,170 | 0 | -264,514 | -261 |
Balances (shares) at Dec. 29, 2012 | 115,500,000 | |||||
Net income (loss) | 22,321 | 22,321 | ||||
Unrealized gain (loss) related to marketable securities, net | 284 | 284 | ||||
Realized gain on sale of auction rate securities, previously unrealized, net of tax | 0 | |||||
Recognized loss on redemption of marketable securities, previously unrealized | 337 | 337 | ||||
Translation adjustments | -505 | -505 | ||||
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs (net of taxes) (shares) | 1,580,000 | |||||
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs (net of tax) | 2,332 | 16 | 2,316 | |||
Stock repurchase (shares) | 0 | |||||
Stock repurchase | -6,161 | 0 | -6,161 | |||
Retirement of treasury stock (shares) | -1,409,000 | |||||
Retirement of treasury stock | 0 | -14 | -6,147 | 6,161 | ||
Stock-based compensation expense related to options, ESPP and RSUs | 9,522 | 9,522 | ||||
Other | 0 | |||||
Balances at Dec. 28, 2013 | 385,680 | 1,157 | 626,861 | 0 | -242,193 | -145 |
Balances (shares) at Dec. 28, 2013 | 115,671,000 | 115,671,000 | ||||
Net income (loss) | 48,580 | 48,580 | ||||
Unrealized gain (loss) related to marketable securities, net | -373 | -373 | ||||
Realized gain on sale of auction rate securities, previously unrealized, net of tax | -1,147 | -1,147 | ||||
Recognized loss on redemption of marketable securities, previously unrealized | 170 | 170 | ||||
Translation adjustments | -330 | -330 | ||||
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs (net of taxes) (shares) | 3,560,000 | |||||
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs (net of tax) | 8,741 | 35 | 8,706 | |||
Stock repurchase (shares) | 0 | |||||
Stock repurchase | -13,089 | 0 | -13,089 | |||
Retirement of treasury stock (shares) | -1,943,000 | |||||
Retirement of treasury stock | 0 | -19 | -13,070 | 13,089 | ||
Stock-based compensation expense related to options, ESPP and RSUs | 12,802 | 12,802 | ||||
Other | -59 | -59 | ||||
Balances at Jan. 03, 2015 | $440,975 | $1,173 | $635,299 | $0 | ($193,613) | ($1,884) |
Balances (shares) at Jan. 03, 2015 | 117,288,000 | 117,288,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Cash flows from operating activities: | |||
Net income (loss) | $48,580 | $22,321 | ($29,606) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 22,248 | 20,807 | 22,149 |
Change in deferred income tax (benefit) provision | -7,222 | 2,358 | 19,224 |
Gain on sale or maturity of marketable securities, net | -1,698 | 0 | -393 |
Stock-based compensation | 12,802 | 9,522 | 7,510 |
Changes in assets and liabilities: net of acquisitions | |||
Accounts receivable, net | -12,287 | -3,138 | -9,954 |
Inventories | -18,703 | -2,028 | -6,916 |
Prepaid expenses and other assets | -3,200 | -1,339 | 387 |
Accounts payable and accrued expenses (includes restructuring) | -7,819 | 3,549 | 5,307 |
Accrued payroll obligations | -30 | 7,510 | -3,224 |
Deferred income and allowances on sales to sell-through distributors | 7,451 | -3,058 | -208 |
Net cash provided by operating activities | 40,122 | 56,504 | 4,276 |
Cash flows from investing activities: | |||
Proceeds from sales or maturities of marketable securities | 101,861 | 67,318 | 56,408 |
Purchase of marketable securities, net | -139,792 | -103,861 | -50,076 |
Proceeds from sale of auction rate securities | 5,488 | 0 | 0 |
Proceeds from sale of land and building | 14,625 | 0 | 0 |
Capital expenditures, net | -10,267 | -12,500 | -13,593 |
Other investing activities | -6,059 | -7,353 | -6,122 |
Net cash used in investing activities | -34,144 | -56,396 | -13,383 |
Cash flows from financing activities: | |||
Net share settlement upon issuance of RSUs | -3,427 | -744 | -832 |
Purchase of treasury stock | -13,089 | -6,161 | -17,549 |
Net proceeds from issuance of common stock | 12,168 | 3,076 | 4,382 |
Net cash used in financing activities | -4,348 | -3,829 | -13,999 |
Effect of exchange rate change on cash | -329 | -505 | 219 |
Net increase (decrease) in cash and cash equivalents | 1,301 | -4,226 | -22,887 |
Beginning cash and cash equivalents | 114,310 | 118,536 | 141,423 |
Ending cash and cash equivalents | 115,611 | 114,310 | 118,536 |
Supplemental disclosures of non-cash investing and financing activities: | |||
Unrealized (loss) gain related to marketable securities, net, included in Accumulated other comprehensive loss | -373 | 284 | -57 |
Income taxes paid, net of refunds | 1,599 | 1,370 | 908 |
Accrued purchases of plant and equipment | ($34) | $122 | $331 |
Nature_of_Operations_and_Signi
Nature of Operations and Significant Accounting Policies | 12 Months Ended | |||||||||||
Jan. 03, 2015 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Nature of Operations and Significant Accounting Policies | Nature of Operations and Significant Accounting Policies | |||||||||||
Nature of Operations | ||||||||||||
Lattice Semiconductor Corporation (“Lattice,” the “Company,” “we,” “us,” or “our”) designs, develops and markets programmable logic products and related software. Programmable logic products are widely used semiconductor components that can be configured by end customers as specific logic circuits, enabling shorter design cycle times and reduced development costs. Our end customers are primarily original equipment manufacturers (“OEMs”) in the Communications, Industrial and Consumer end markets. | ||||||||||||
We do not manufacture our own silicon wafers. We maintain strategic relationships with large semiconductor foundries to source our finished silicon wafers in Asia. In addition, all of our assembly operations and most of our test and logistics operations are performed by outside suppliers in Asia. We perform certain test operations and reliability and quality assurance processes internally. | ||||||||||||
We place substantial emphasis on new product development and believe that continued investment in this area is required to maintain and improve our competitive position. Our product development activities emphasize new proprietary products, advanced packaging, enhancement of existing products and process technologies, and improvement of software development tools. Product development activities occur primarily in: Hillsboro, Oregon; San Jose, California; Shanghai, China; Bangalore, India; and Alabang, Philippines. | ||||||||||||
Fiscal Reporting Period | ||||||||||||
We report based on a 52 or 53-week fiscal year ending on the Saturday closest to December 31. Our fiscal 2014 was a 53-week year that ended January 3, 2015. Our fiscal 2013, 2012, 2011, and 2010 were 52-week years that ended December 28, 2013, December 29, 2012, December 31, 2011, and January 1, 2011, respectively. Our fiscal 2015 will be a 52-week year and will end on January 2, 2016. All references to quarterly or yearly financial results are references to the results for the relevant fiscal period. | ||||||||||||
Principles of Consolidation | ||||||||||||
The accompanying Consolidated Financial Statements include the accounts of Lattice and its subsidiaries, all of which are wholly owned, after the elimination of all intercompany balances and transactions. Certain balances in prior fiscal years have been reclassified to conform to the presentation adopted in the current year. | ||||||||||||
Cash Equivalents and Marketable Securities | ||||||||||||
We consider all investments that are readily convertible into cash and have original maturities of three months or less, to be cash equivalents. Cash equivalents consist primarily of highly liquid investments in time deposits or money market accounts and are carried at cost. We account for marketable securities as available for sale with unrealized gains or losses recorded to Accumulated other comprehensive loss, unless losses are considered other-than-temporary, in which case, losses are charged to the Consolidated Statements of Operations. Deposits with financial institutions at times exceed Federal Deposit Insurance Corporation insurance limits. | ||||||||||||
Fair Value of Financial Instruments | ||||||||||||
We invest in various financial instruments including corporate and government bonds, notes and commercial paper. We were also invested in auction rate securities until June 2014. The Company values these instruments at fair value and monitors their portfolio for impairment on a periodic basis. In the event that the carrying value of an investment exceeds its fair value and the decline in value is determined to be other-than-temporary, the Company records an impairment charge and establishes a new carrying value. We assess other-than-temporary impairment of marketable securities in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures.” The framework under the provisions of ASC 820 establishes three levels of inputs that may be used to measure fair value. Each level of input has different levels of subjectivity and difficulty involved in determining fair value. | ||||||||||||
Level 1 instruments are characterized generally by quoted prices for identical assets or liabilities in active markets. Therefore, determining fair value for Level 1 instruments generally does not require significant management judgment, and the estimation is not difficult. | ||||||||||||
Level 2 instruments include inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices for identical instruments in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||
Level 3 instruments include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Our auction rate securities were classified as Level 3 instruments. Management used a combination of the market and income approach to derive the fair value of auction rate securities, which included third party valuation results, investment broker provided market information and available information on the credit quality of the underlying collateral. As a result, the determination of fair value for Level 3 instruments requires significant management judgment and subjectivity. Our Level 3 instruments were classified as Long-term marketable securities on our Consolidated Balance Sheets and were entirely made up of auction rate securities that consisted of student loan asset-backed notes. During fiscal 2014 we sold our Level 3 instruments, which consisted entirely of auction rate securities. | ||||||||||||
Foreign Exchange and Translation of Foreign Currencies | ||||||||||||
We have international subsidiary and branch operations. In addition, a portion of our silicon wafer and other purchases are denominated in Japanese yen, we bill certain Japanese customers in yen and collect a Japanese consumption tax refund in yen. Gains or losses from foreign exchange rate fluctuations on balances denominated in foreign currencies are reflected in Other income (expense), net. Realized and unrealized gains or losses on foreign currency transactions were not significant for the periods presented. We translate accounts denominated in foreign currencies in accordance with ASC 830, “Foreign Currency Matters,” using the current rate method under which asset and liability accounts are translated at the current rate, while stockholders' equity accounts are translated at the appropriate historical rates, and revenue and expense accounts are translated at average monthly exchange rates. Translation adjustments related to the consolidation of foreign subsidiary financial statements are reflected in Accumulated other comprehensive loss in Stockholders' equity. | ||||||||||||
Derivative Financial Instruments | ||||||||||||
We had forward contracts for Japanese yen of $4.2 million and $2.3 million at January 3, 2015 and December 28, 2013, respectively. One contract outstanding at January 3, 2015 settled in January 2015 and the other five contracts will settle in June 2015. The contracts outstanding at December 28, 2013 settled in January 2014 and June 2014, respectively. Although such hedges mitigate our foreign currency exchange rate exposure from an economic perspective they were not designated as "effective" hedges for accounting purposes and are adjusted to fair value through Other income (expense), net, with an impact of approximately $0.4 million and less than $0.1 million for the years end January 3, 2015 and December 28, 2013, respectively. | ||||||||||||
Concentration Risk | ||||||||||||
Potential exposure to concentration risk consists primarily of revenue concentration, cash and cash equivalents, marketable securities, accounts receivable and supply of wafers for our new products. One OEM end customer accounted for 19% of revenue in fiscal 2014, while a second OEM end customer accounted for 12% of total revenue in fiscal 2014. One OEM end customer accounted for 22% of revenue in fiscal 2013. No end customer accounted for more than 10% of revenue in fiscal 2012. We place our investments primarily through two financial institutions and mitigate the concentration of credit risk by limiting the maximum portion of the investment portfolio which may be invested in any one instrument. The Company's investment policy defines approved credit ratings for investment securities. Investments on-hand consisted primarily of money market instruments, “AA” or better corporate notes and bonds and commercial paper, and U.S. government agency obligations. See Note 4 for a discussion of the liquidity attributes of our marketable securities. | ||||||||||||
Concentration of credit risk with respect to accounts receivable is mitigated by our credit and collection process. Accounts receivable are recorded at the invoice amount, do not bear interest, and are shown net of allowances for doubtful accounts of $0.9 million and $0.9 million at January 3, 2015 and December 28, 2013, respectively. We perform credit evaluations for essentially all customers and secure transactions with letters of credit or advance payments where appropriate. We regularly review our allowance for doubtful accounts and the aging of our accounts receivable. Write-offs for uncollected accounts receivable have not been significant to date. | ||||||||||||
We rely on a limited number of foundries for our wafer purchases including: Fujitsu Limited, Seiko Epson Corporation, Taiwan Semiconductor Manufacturing Company, Ltd and United Microelectronics Corporation. | ||||||||||||
Revenue Recognition and Deferred Income | ||||||||||||
We sell our products directly to end customers or through a network of independent manufacturers' representatives and indirectly through a network of independent sell-in and sell-through distributors. Distributors provide periodic data regarding the product, price, quantity, and end customer when products are resold, as well as the quantities of our products they still have in stock. | ||||||||||||
Revenue from sales to OEMs or sell-in distributors is recognized upon shipment. Revenue from sales by our sell-through distributors is recognized at the time of reported resale. Under both types of revenue recognition, persuasive evidence of an arrangement exists, the price is fixed or determinable, title has transferred, collection of resulting receivables is reasonably assured, and there are no remaining customer acceptance requirements and no remaining significant performance obligations. Revenue and Cost of products sold are presented net of taxes collected on behalf of government authorities. | ||||||||||||
Orders from our sell-through distributors are initially recorded at published list prices; however, for a majority of our sales, the final selling price is determined at the time of resale and in accordance with a distributor price agreement. In certain circumstances, we allow sell-through distributors to return unsold products. At times, we protect our sell-through distributors against reductions in published list prices. For these reasons, we do not recognize revenue until products are resold by sell-through distributors to an end customer. | ||||||||||||
For sell-through distributors, at the time of shipment to distributors, we (a) record Accounts receivable at published list price since there is a legally enforceable obligation from the distributor to pay us currently for product delivered, (b) relieve inventory for the carrying value of goods shipped since legal title has passed to the distributor, and (c) record deferred revenue and deferred cost of sales in Deferred income and allowances on sales to sell-through distributors in the liability section of our Consolidated Balance Sheets. The final price is set at the time of resale and is determined in accordance with a distributor price agreement. Revenue and cost of products sold 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 products sold are reflected in Net income (loss), and Accounts receivable are adjusted to reflect the final selling price. | ||||||||||||
The components of Deferred income and allowances on sales to sell-through distributors are presented in the following table | ||||||||||||
(In thousands) | 3-Jan-15 | 28-Dec-13 | ||||||||||
Inventory valued at published list price and held by sell-through distributors with right of return | $ | 50,854 | $ | 36,056 | ||||||||
Allowance for distributor advances | (29,490 | ) | (24,090 | ) | ||||||||
Deferred cost of sales related to inventory held by sell-through distributors | (6,418 | ) | (4,471 | ) | ||||||||
Total Deferred income and allowances on sales to sell-through distributors | $ | 14,946 | $ | 7,495 | ||||||||
A significant portion of our revenue in fiscal 2014 was from sell-through distributors. For the fiscal years 2014, 2013 and 2012, resale of products by sell-through distributors as a percentage of our total revenue was 45%, 45% and 55%, respectively. | ||||||||||||
We must use estimates and apply judgment to reconcile sell-through distributors' reported inventories to their activities. Errors in our estimates or judgments could result in inaccurate reporting of our Revenue, Cost of products sold, Deferred income and allowances on sales to sell-through distributors, and Net income (loss). | ||||||||||||
Inventories | ||||||||||||
Inventories are recorded at the lower of actual cost determined on a first-in-first-out basis or market. We establish provisions for inventory if it is obsolete or we hold quantities which are in excess of projected customer demand. The creation of such provisions results in a write-down of inventory to net realizable value and a charge to Cost of products sold. | ||||||||||||
Property and Equipment | ||||||||||||
Property and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method for financial reporting purposes over the estimated useful lives of the related assets, generally three to five years for equipment and software, one to three years for tooling and thirty years for buildings. Upon disposal of Property and equipment, the accounts are relieved of the costs and related accumulated depreciation and amortization, and resulting gains or losses are reflected in the Consolidated Statements of Operations for recognized gains and losses, or in the Consolidated Balance Sheets for deferred gains and losses. Repair and maintenance costs are expensed as incurred. | ||||||||||||
Asset Impairments | ||||||||||||
Long-lived assets, including amortizable intangible assets, are carried on our financial statements based on their cost less accumulated depreciation or amortization. We monitor the carrying value of our long-lived assets for potential impairment and test the recoverability of such assets whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. These events or changes in circumstances, including management decisions pertaining to such assets, are referred to as impairment indicators. If an impairment indicator occurs, we perform a test of recoverability by comparing the carrying value of the asset group to its undiscounted expected future cash flows. If the carrying values are in excess of undiscounted expected future cash flows, we measure any impairment by comparing the fair value of the asset group to its carrying value. Fair value is generally determined by considering (i) internally developed discounted projected cash flow analysis of the asset group; (ii) actual third-party valuations; and/or (iii) information available regarding the current market for similar asset groups. If the fair value of the asset group is determined to be less than the carrying amount of the asset group, an impairment in the amount of the difference is recorded in the period that the impairment indicator occurs and is included in our Consolidated Statement of Operations. Estimating future cash flows requires significant judgment and projections may vary from the cash flows eventually realized, which could impact our ability to accurately assess whether an asset has been impaired. No impairment charges were recorded for the fiscal year ended 2014. | ||||||||||||
Valuation of Goodwill | ||||||||||||
Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The Company reviews goodwill for impairment annually during the fourth quarter and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. When evaluating whether goodwill is impaired, the Company makes a qualitative assessment to determine if it is more likely than not that the reporting unit's fair value is less than its carrying amount. If the qualitative assessment determines that it is more likely than not that its fair value is less than its carrying amount, the fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the Company must measure the impairment loss. The impairment loss, if any, is recognized for any excess of the carrying amount of the reporting unit's goodwill over the implied fair value of the goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. If the fair value of the reporting unit exceeds its carrying value, no further impairment analysis is needed. For purposes of testing goodwill for impairment, the Company operates as a single reporting unit. No goodwill impairment charges were recorded for the fiscal year ended 2014. | ||||||||||||
Leases | ||||||||||||
We lease office space and classify our leases as either operating or capital lease arrangements in accordance with the criteria of ASC 840, “Leases.” Certain of our office space operating leases contain provisions under which monthly rent escalates over time and certain leases may also contain provisions for reimbursement of a specified amount of leasehold improvements. When lease agreements contain escalating rent clauses, we recognize expense on a straight-line basis over the term of the lease. When lease agreements provide allowances for leasehold improvements, we capitalize the leasehold improvement assets and amortize them on a straight-line basis over the lesser of the lease term or the estimated useful life of the asset, and reduce rent expense on a straight-line basis over the term of the lease by the amount of the asset capitalized. | ||||||||||||
Restructuring Charges | ||||||||||||
Expenses associated with exit or disposal activities are recognized when incurred under ASC 420, “Exit or Disposal Cost Obligations,” for everything but severance. Because the Company has a history of paying severance benefits, the cost of severance benefits associated with a restructuring plan is recorded when such costs are probable and the amount can be reasonably estimated in accordance with ASC 712, “Compensation - Nonretirement Postemployment Benefits.” When leased facilities are vacated, an amount equal to the total future lease obligations from the date of vacating the premises through the expiration of the lease, net of any future sublease income, was recorded as a part of restructuring charges. | ||||||||||||
Research and Development | ||||||||||||
Research and development costs are expensed as incurred. | ||||||||||||
Accounting for Income Taxes | ||||||||||||
The Company’s provision for income tax is comprised of its current tax liability and change in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements using enacted tax rates and laws that will be in effect when the difference is expected to reverse. Valuation allowances are provided to reduce deferred tax assets to an amount that in management’s judgment is more-likely-than-not to be recoverable against future taxable income. At January 3, 2015, U.S. income taxes were not provided on approximately $3.3 million of the undistributed earnings of our Chinese subsidiary as we intend to reinvest these earnings indefinitely. If these earnings were distributed to the U.S. in the form of dividends or otherwise, we would be subject to additional U.S. income taxes. | ||||||||||||
The Company’s income tax calculations are based on application of the respective U.S. federal, state or foreign tax law. The Company’s tax filings, however, are subject to audit by the relevant tax authorities. Accordingly, the Company recognizes tax liabilities based upon its estimate of whether, and the extent to which, additional taxes will be due when such estimates are more-likely-than-not to be sustained. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. To the extent the final tax liabilities are different than the amounts originally accrued, the increases or decreases as well as any interest or penalties are recorded as income tax expense or benefit in the Consolidated Statements of Operations. | ||||||||||||
In assessing the ability to realize deferred tax assets, the Company evaluates both positive and negative evidence that may exist and consider whether it is more-likely-than-not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. | ||||||||||||
Any adjustment to the net deferred tax asset valuation allowance is recorded in the Consolidated Statements of Operations for the period that the adjustment is determined to be required. | ||||||||||||
Stock-Based Compensation | ||||||||||||
The Company records stock-based compensation expense related to employee and director stock options, restricted stock units (“RSUs”), and the Employee Stock Purchase Plan (“ESPP”) in accordance with ASC 718, “Compensation - Stock Compensation.” | ||||||||||||
Net Income (Loss) Per Share | ||||||||||||
We compute basic income (loss) per share by dividing Net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. To determine diluted share count, we apply the treasury stock method to determine the dilutive effect of outstanding stock option shares, RSUs and ESPP shares. Our application of the treasury stock method includes as assumed proceeds, the average unamortized stock-based compensation expense for the period and the impact of the pro forma net deferred tax benefit or cost associated with stock-based compensation expense. | ||||||||||||
A reconciliation of basic and diluted Net income (loss) per share is presented below: | ||||||||||||
Year Ended | ||||||||||||
(in thousands, except per share data) | January 3, | December 28, | December 29, | |||||||||
2015 | 2013 | 2012 | ||||||||||
Basic and diluted Net income (loss) | $ | 48,580 | $ | 22,321 | $ | (29,606 | ) | |||||
Shares used in basic Net income (loss) per share | 117,708 | 115,701 | 117,194 | |||||||||
Dilutive effect of stock options, RSUs and ESPP shares | 2,537 | 1,380 | — | |||||||||
Shares used in diluted Net income (loss) per share | 120,245 | 117,081 | 117,194 | |||||||||
Basic Net income (loss) per share | $ | 0.41 | $ | 0.19 | $ | (0.25 | ) | |||||
Diluted Net income (loss) per share | $ | 0.4 | $ | 0.19 | $ | (0.25 | ) | |||||
The computation of diluted Net income (loss) per share for fiscal years 2014 and 2013, respectively, includes the effects of stock options, RSUs and ESPP shares aggregating approximately 2.5 million and 1.4 million, respectively, as they are dilutive, and excludes the effects of stock options, RSUs and ESPP shares aggregating approximately 2.6 million, 7.8 million and 10.6 million shares, for fiscal years 2014, 2013 and 2012, respectively, as they are antidilutive. Stock options, RSUs and ESPP shares are considered antidilutive when the aggregate of exercise price, unrecognized stock-based compensation expense and excess tax benefit are greater than the average market price for our common stock during the period or when the Company is in a net loss position, as the effects would reduce the loss per share. Stock options and RSUs that are antidilutive at January 3, 2015 could become dilutive in the future. | ||||||||||||
Use of Estimates | ||||||||||||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts and classification of assets, such as marketable securities, accounts receivable, inventory, auction rate securities, goodwill - including the assessment of reporting unit, intangible assets, current and deferred income taxes, accrued liabilities - including restructuring charges and bonus arrangements, deferred income and allowances on sales to sell-through distributors, disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the fiscal periods presented. Actual results could differ from those estimates. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Jan. 03, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements |
In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the criteria for reporting discontinued operations to only those disposals which represent a strategic shift in operations. In addition, the new guidance requires expanded disclosures about discontinued operations, including pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. The new standard became effective for us on January 4, 2015. Early adoption is permitted, but only for disposals (or classifications as held-for-sale) that have not been reported in financial statements previously issued or available for issuance. We do not expect the adoption of this accounting standard update to impact our consolidated financial statements. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance under U.S. GAAP when it becomes effective. The new standard will become effective for us on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are currently evaluating the impact of ASU 2014-09 on our consolidated financial statements and related disclosures and have not yet selected a transition method. | |
In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, which focuses on the consolidation evaluation for reporting organizations and requires the evaluation of whether or not certain legal entities should be consolidated. All legal entities are subject to reevaluation under the revised consolidation model. The new standard will become effective for us on January 3, 2016. Early adoption is permitted, including adoption in an interim period. We do not expect the adoption of this accounting standard update to impact our consolidated financial statements. | |
On January 26, 2015, we entered into an agreement to commence a cash tender offer to acquire Silicon Image, Inc. The transaction will close upon the successful tender of required shares and regulatory approval. We are currently evaluating the impact of new accounting pronouncements as they relate to this business. |
Business_Combinations_and_Good
Business Combinations and Goodwill | 12 Months Ended |
Jan. 03, 2015 | |
Business Combinations [Abstract] | |
Business Combinations and Goodwill | Business Combinations and Goodwill |
In December 2011, we acquired SiliconBlue Technologies Ltd., ("SiliconBlue"), for $63.2 million in cash. Of the total purchase price, $43.9 million was allocated to goodwill, $18.5 million was allocated to intangible assets, and the remaining to net tangible assets acquired. The goodwill and identifiable intangible assets are not deductible for tax purposes. SiliconBlue was consolidated into our financial statements beginning in December 2011. | |
No impairment charges relating to goodwill and intangible assets have been recorded. | |
On January 26, 2015, we entered into an agreement to commence a cash tender offer to acquire Silicon Image, Inc., a leading provider of wired and wireless connectivity solutions, for $7.30 in cash per share, resulting in a purchase price of approximately $602.05 million, plus related fees and expenses. The transaction was approved by the board of directors of each company and is expected to close upon the successful tender of required shares and regulatory approval. The transaction will be funded through a combination of cash on hand and $350.0 million of new debt financing. |
Marketable_Securities
Marketable Securities | 12 Months Ended | |||||||||||||||||||
Jan. 03, 2015 | ||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||
Marketable Securities | Marketable Securities | |||||||||||||||||||
Our short-term marketable securities have contractual maturities of up to 2.1 years, and our long-term marketable securities had contractual maturities of up to 6.2 years. The following table summarizes the remaining maturities of our marketable securities at fair value: | ||||||||||||||||||||
(In thousands) | January 3, | December 28, | ||||||||||||||||||
2015 | 2013 | |||||||||||||||||||
Short-term marketable securities: | ||||||||||||||||||||
Maturing within one year | $ | 60,965 | $ | 51,920 | ||||||||||||||||
Maturing between one and two years | 78,268 | $ | 49,585 | |||||||||||||||||
Long-term marketable securities: | ||||||||||||||||||||
Maturing in more than ten years | — | 5,241 | ||||||||||||||||||
Total marketable securities | $ | 139,233 | $ | 106,746 | ||||||||||||||||
The following table summarizes the composition of our marketable securities at fair value: | ||||||||||||||||||||
(In thousands) | January 3, | December 28, | ||||||||||||||||||
2015 | 2013 | |||||||||||||||||||
Short-term marketable securities: | ||||||||||||||||||||
Corporate and government bonds and notes and commercial paper | $ | 139,233 | $ | 101,505 | ||||||||||||||||
Long-term marketable securities: | ||||||||||||||||||||
Federally-insured or FFELP guaranteed student loans | — | 5,241 | ||||||||||||||||||
Total marketable securities | $ | 139,233 | $ | 106,746 | ||||||||||||||||
The following table summarizes the composition of our auction rate securities: | ||||||||||||||||||||
3-Jan-15 | 28-Dec-13 | |||||||||||||||||||
(In thousands) | Par Value | Fair Value | S&P | Par Value | Fair Value | S&P | ||||||||||||||
Credit | Credit | |||||||||||||||||||
rating | rating | |||||||||||||||||||
Long-term marketable securities: | ||||||||||||||||||||
Federally-insured or FFELP guaranteed student loans | $ | — | $ | — | $ | 5,700 | $ | 5,241 | AA+ | |||||||||||
In June 2014, our remaining auction rate securities, with a par value of $5.7 million and an estimated fair value of $5.2 million, were sold for $5.5 million. As a result, we reported a gain of $1.7 million in the Consolidated Statement of Operations and relieved $1.1 million of previously unrecognized gain, net of taxes, from Accumulated other comprehensive loss in fiscal 2014. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | |||||||||||||||||||||||||||||||
Jan. 03, 2015 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | |||||||||||||||||||||||||||||||
Fair value measurements as of | Fair value measurements as of | |||||||||||||||||||||||||||||||
3-Jan-15 | 28-Dec-13 | |||||||||||||||||||||||||||||||
(In thousands) | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Short-term marketable securities | $ | 139,233 | $ | 139,233 | $ | — | $ | — | $ | 101,505 | $ | 101,505 | $ | — | $ | — | ||||||||||||||||
Long-term marketable securities | — | — | — | — | 5,241 | — | — | 5,241 | ||||||||||||||||||||||||
Foreign currency forward exchange contracts, net | 414 | — | 414 | — | 48 | — | 48 | — | ||||||||||||||||||||||||
Total fair value of financial instruments | $ | 139,647 | $ | 139,233 | $ | 414 | $ | — | $ | 106,794 | $ | 101,505 | $ | 48 | $ | 5,241 | ||||||||||||||||
We invest in various financial instruments including corporate and government bonds and notes, and commercial paper. We were also invested in auction rate securities until June 2014. In addition, we enter into foreign currency forward exchange contracts to mitigate our foreign currency exchange rate exposure. The Company carries these instruments at their fair value in accordance with ASC 820. The framework under the provisions of ASC 820 establishes three levels of inputs that may be used to measure fair value. Each level of input has different levels of subjectivity and difficulty involved in determining fair value. | ||||||||||||||||||||||||||||||||
Level 1 instruments generally represent quoted prices for identical assets or liabilities in active markets. Therefore, determining fair value for Level 1 instruments generally does not require significant management judgment, and the estimation is not difficult. Our Level 1 instruments consist of federal agency, corporate notes and bonds, and commercial paper that are traded in active markets and are classified as Short-term marketable securities on our Consolidated Balance Sheet. | ||||||||||||||||||||||||||||||||
Level 2 instruments include inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices for identical instruments in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Our Level 2 instruments consist of foreign currency exchange contracts entered into to hedge against fluctuation in the Japanese yen. | ||||||||||||||||||||||||||||||||
Level 3 instruments include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Our auction rate securities were classified as Level 3 instruments. Management used a combination of the market and income approach to derive the fair value of auction rate securities, which included third party valuation results, investment broker provided market information and available information on the credit quality of the underlying collateral. As a result, the determination of fair value for Level 3 instruments requires significant management judgment and subjectivity. Our Level 3 instruments were classified as Long-term marketable securities on our Consolidated Balance Sheets and were entirely made up of auction rate securities that consisted of student loan asset-backed notes. During second quarter of fiscal 2014 we sold our Level 3 instruments, which consisted entirely of auction rate securities. | ||||||||||||||||||||||||||||||||
There were no transfers between any of the levels during fiscal 2014, 2013 and 2012. | ||||||||||||||||||||||||||||||||
During the fiscal years ended January 3, 2015 and December 28, 2013, the following changes occurred in our Level 3 instruments: | ||||||||||||||||||||||||||||||||
Year Ended | ||||||||||||||||||||||||||||||||
(In thousands) | January 3, | December 28, | ||||||||||||||||||||||||||||||
2015 | 2013 | |||||||||||||||||||||||||||||||
Beginning fair value of Long-term marketable securities | $ | 5,241 | $ | 4,717 | ||||||||||||||||||||||||||||
Fair value of securities sold or redeemed | (5,488 | ) | — | |||||||||||||||||||||||||||||
Realized gain from increase in fair value | 247 | — | ||||||||||||||||||||||||||||||
Temporary fluctuations in fair value | — | 524 | ||||||||||||||||||||||||||||||
Ending fair value of Long-term marketable securities | $ | — | $ | 5,241 | ||||||||||||||||||||||||||||
In accordance with ASC 320, “Investments-Debt and Equity Securities,” the Company recorded an unrealized loss of $0.4 million during the fiscal year ended January 3, 2015 and an unrealized gain of $0.3 million during the fiscal year ended December 28, 2013, on certain Short-term marketable securities (Level 1 instruments), which have been recorded in Accumulated other comprehensive loss. Future fluctuations in fair value related to these instruments that the Company deems to be temporary, including any recoveries of previous write-downs, would be recorded to Accumulated other comprehensive loss. In addition, during the fiscal year ended January 3, 2015, the Company realized a gain of $1.7 million related to the sale of a portion of its Long-term marketable securities portfolio. No sale activity for Long-term marketable securities occurred during the fiscal year ended December 28, 2013. |
Inventories
Inventories | 12 Months Ended | |||||||
Jan. 03, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
(In thousands) | January 3, | December 28, | ||||||
2015 | 2013 | |||||||
Work in progress | $ | 49,554 | $ | 32,111 | ||||
Finished goods | 15,371 | 14,111 | ||||||
Total inventories | $ | 64,925 | $ | 46,222 | ||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Jan. 03, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and Equipment | Property and Equipment | |||||||
(In thousands) | January 3, | December 28, | ||||||
2015 | 2013 | |||||||
Land | $ | — | $ | 1,456 | ||||
Buildings | 3,516 | 27,827 | ||||||
Computer and test equipment | 158,117 | 154,508 | ||||||
Office furniture and equipment | 7,028 | 9,122 | ||||||
Leasehold and building improvements | 13,213 | 16,695 | ||||||
181,874 | 209,608 | |||||||
Accumulated depreciation and amortization | (154,078 | ) | (167,889 | ) | ||||
$ | 27,796 | $ | 41,719 | |||||
Depreciation expense was $11.4 million, $11.2 million and $13.6 million for fiscal years 2014, 2013 and 2012, respectively. | ||||||||
In November 2014, we sold land and buildings, comprising our headquarters in Hillsboro, Oregon, for net proceeds of approximately $14.6 million. This property had a historical cost of $30.9 million and accumulated depreciation of $17.9 million, resulting in a net gain on sale of $1.6 million. We leased back a portion of the facilities for a lease term of eight years, resulting in deferral of the gain, which will be amortized over the life of the lease. |
Intangible_Assets_and_Acquisit
Intangible Assets and Acquisition Related Charges | 12 Months Ended | ||||||||||||||
Jan. 03, 2015 | |||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||
Intangible Assets and Acquisition Related Charges | Intangible Assets and Acquisition Related Charges | ||||||||||||||
In connection with our acquisition of SiliconBlue in December 2011, we recorded identifiable intangible assets related to developed technology and customer relationships based on guidance for determining fair value under the provisions of ASC 820. The following table summarizes the details of the Company’s total purchased intangible assets: | |||||||||||||||
(In thousands) | Weighted Average Amortization Period (in years) | Gross | Accumulated Amortization | Intangible assets, net of amortization January 3, 2015 | |||||||||||
Developed technology | 7 | $ | 10,700 | $ | (4,649 | ) | $ | 6,051 | |||||||
Customer relationships | 5.5 | 7,800 | (4,314 | ) | 3,486 | ||||||||||
Total | 6.3 | $ | 18,500 | $ | (8,963 | ) | $ | 9,537 | |||||||
Amortization expense associated with these intangible assets is reported as Acquisition related charges, including amortization of intangible assets in the Consolidated Statements of Operations and amounted to $2.9 million in each of the fiscal years 2014, 2013 and 2012. We expect amortization expense related to these intangible assets to approximate $2.9 million in 2015 and 2016, $2.2 million in 2017 and $1.5 million in 2018. | |||||||||||||||
Acquisition related charges, including amortization of intangible assets in the Consolidated Statements of Operations, also include severance and professional fees related to the acquisition, as well as expensed stepped up value of inventory collectively, amounting to less than $0.1 million in 2014 and 2013, and $1.2 million, in 2012, respectively. |
Lease_Obligations
Lease Obligations | 12 Months Ended | ||||
Jan. 03, 2015 | |||||
Leases [Abstract] | |||||
Lease Obligations | Lease Obligations | ||||
Certain of our facilities are leased under operating leases, which expire at various times through 2026. Rental expense under the operating leases was $4.5 million $4.6 million and $3.7 million for fiscal years 2014, 2013 and 2012, respectively. Future minimum lease commitments at January 3, 2015 are as follows: | |||||
Fiscal year | Amount | ||||
(In thousands) | |||||
2015 | $ | 4,125 | |||
2016 | 3,702 | ||||
2017 | 3,440 | ||||
2018 | 3,449 | ||||
2019 | 3,534 | ||||
Thereafter | 22,708 | ||||
$ | 40,958 | ||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
The domestic and foreign components of Income (loss) before income taxes were as follows: | |||||||||||||
Year Ended | |||||||||||||
(In thousands) | January 3, 2015 | December 28, 2013 | December 29, 2012 | ||||||||||
Domestic | $ | 6,292 | $ | 6,293 | $ | 51,859 | |||||||
Foreign | 36,649 | 20,193 | (60,720 | ) | |||||||||
Income (loss) before taxes | $ | 42,941 | $ | 26,486 | $ | (8,861 | ) | ||||||
The components of the income tax (benefit) expense are as follows: | |||||||||||||
Year Ended | |||||||||||||
(In thousands) | January 3, | December 28, | December 29, | ||||||||||
2015 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | 329 | $ | 251 | $ | (344 | ) | ||||||
State | 5 | (527 | ) | 36 | |||||||||
Foreign | 1,944 | 1,616 | 1,498 | ||||||||||
2,278 | 1,340 | 1,190 | |||||||||||
Deferred: | |||||||||||||
Federal | (7,416 | ) | 2,549 | 18,000 | |||||||||
State | (513 | ) | 342 | 1,487 | |||||||||
Foreign | 12 | (66 | ) | 68 | |||||||||
(7,917 | ) | 2,825 | 19,555 | ||||||||||
Income tax (benefit) expense | $ | (5,639 | ) | $ | 4,165 | $ | 20,745 | ||||||
Income tax (benefit) expense differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pretax income as a result of the following differences: | |||||||||||||
Year Ended | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
% | % | % | |||||||||||
Statutory federal rate | 35 | 35 | 35 | ||||||||||
Adjustments for tax effects of: | |||||||||||||
State taxes, net | 1 | 2 | -2 | ||||||||||
Research and development credits | -9 | -11 | -1 | ||||||||||
Stock compensation | 1 | 3 | -3 | ||||||||||
Foreign rate differential | -25 | -20 | -252 | ||||||||||
Foreign dividends | 1 | — | 3 | ||||||||||
Capital loss expiration | 7 | 2 | — | ||||||||||
Valuation allowance | -23 | 6 | -19 | ||||||||||
Change in uncertain tax benefit accrual | 1 | -1 | 3 | ||||||||||
Tax rate change | -4 | -1 | — | ||||||||||
Other | 2 | 1 | 2 | ||||||||||
Effective income tax rate | -13 | 16 | -234 | ||||||||||
ASC 740, “Income Taxes”, provides for the recognition of deferred tax assets if realization of these assets is more-likely-than-not. We evaluate both positive and negative evidence to determine if some or all of our deferred tax assets should be recognized on a quarterly basis. | |||||||||||||
On December 31, 2011, we began to implement a global tax structure to more effectively align the Company's corporate structure with the geographic business operations including responsibility for sales and manufacturing activities. The global tax structure was completed during the first quarter of 2012 upon the intercompany sale of inventory and fixed assets. During 2012, this inventory was sold to end customers in the ordinary course of business resulting in income before taxes in the U.S. and a loss before taxes in foreign jurisdictions. Because these foreign jurisdictions have 0% income tax rates, we received no tax benefit associated with the losses resulting in a significant foreign rate differential. Taxes have been applied to the gain on sale based on U.S. statutory tax rates, offset by deferred tax assets. This resulted in an increase to the effective tax rate and a net income tax provision of $13.7 million during 2012. | |||||||||||||
During the fourth quarter of 2014, we concluded that it was more-likely-than-not that we would be able to realize the benefit of a portion of our remaining deferred tax assets, resulting in a tax benefit of $11.5 million and a federal and state net deferred tax asset of $21.3 million. We based this conclusion on improved operating results over the past two years and our expectations about generating taxable income in the foreseeable future. We exercised significant judgment and considered estimates about our ability to generate revenue, gross profits, operating income and jurisdictional taxable income in future periods under our tax structure in reaching this decision. We will continue to evaluate both positive and negative evidence in future periods to determine if additional deferred tax assets should be recognized. We do not have a valuation allowance in any foreign jurisdictions as it has been concluded it is more-likely-than-not that we will realize the net deferred tax assets in future periods. The net decrease in the total valuation allowance affecting the effective tax rate for the year ended January 3, 2015 was approximately $9.7 million. | |||||||||||||
The components of our net deferred tax assets are as follows: | |||||||||||||
(In thousands) | January 3, | December 28, | |||||||||||
2015 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Accrued expenses and reserves | $ | 5,416 | $ | 4,959 | |||||||||
Stock-based and deferred compensation | 5,530 | 4,986 | |||||||||||
Intangible assets | 9,841 | 8,456 | |||||||||||
Fixed assets | 983 | 828 | |||||||||||
Net operating loss carry forwards | 96,543 | 101,144 | |||||||||||
Tax credit carry forwards | 40,588 | 36,644 | |||||||||||
Capital loss carry forwards | 4,142 | 6,698 | |||||||||||
Unrealized loss on securities | — | 758 | |||||||||||
Other | 220 | 143 | |||||||||||
163,263 | 164,616 | ||||||||||||
Less: valuation allowance | (141,215 | ) | (150,528 | ) | |||||||||
Net deferred tax assets | 22,048 | 14,088 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Other | 717 | 969 | |||||||||||
Total deferred tax liabilities | 717 | 969 | |||||||||||
Net deferred tax assets | $ | 21,331 | $ | 13,119 | |||||||||
Of the total Net deferred tax assets, $1.2 million and $1.4 million are considered current and included in Prepaid expenses and other current assets on the Consolidated Balance Sheets as of January 3, 2015 and December 28, 2013, respectively. | |||||||||||||
At January 3, 2015, we had federal net operating loss carryforwards (pretax) of approximately $301.8 million that expire at various dates between 2023 and 2032. We had state net operating loss carryforwards (pretax) of approximately $141.3 million that expire at various dates from 2015 through 2032. We also had federal and state credit carryforwards of $17.7 million and $26.3 million of which $24.5 million do not expire. The remaining credits expire at various dates from 2015 through 2034. | |||||||||||||
Future utilization of federal and state net operating losses and tax credit carry forwards may be limited if cumulative changes to ownership exceed 50% within any three-year period, which has not occurred through fiscal 2014. However, if there is a significant change in ownership, the future utilization may be limited and the deferred tax asset would be reduced to the amount available. | |||||||||||||
At January 3, 2015, U.S. income taxes were not provided for approximately $3.3 million of the undistributed earnings of our Chinese subsidiary. We intend to reinvest these earnings indefinitely. If these earnings were distributed to the U.S. in the form of dividends or otherwise, we would be subject to additional U.S. income taxes and foreign withholding taxes. | |||||||||||||
At January 3, 2015, our unrecognized tax benefits associated with uncertain tax positions were $18.7 million, of which $17.4 million, if recognized, would affect the effective tax rate, subject to valuation allowance. As of January 3, 2015, interest and penalties associated with unrecognized tax benefits were $0.2 million. | |||||||||||||
The following table summarizes the changes to unrecognized tax benefits for fiscal years 2014, 2013 and 2012: | |||||||||||||
(In thousands) | Amount | ||||||||||||
Balance at December 31, 2011 | 21,552 | ||||||||||||
Additions based on tax positions related to the current year | 384 | ||||||||||||
Additions based on tax positions of prior years | 192 | ||||||||||||
Reduction for tax positions of prior years | (26 | ) | |||||||||||
Settlements | (30 | ) | |||||||||||
Reduction as a result of lapse of applicable statute of limitations | (392 | ) | |||||||||||
Balance at December 29, 2012 | $ | 21,680 | |||||||||||
Additions based on tax positions related to the current year | 1,600 | ||||||||||||
Additions based on tax positions of prior years | 68 | ||||||||||||
Reduction for tax positions of prior years | — | ||||||||||||
Settlements | (338 | ) | |||||||||||
Reduction as a result of lapse of applicable statute of limitations | (367 | ) | |||||||||||
Balance at December 28, 2013 | 22,643 | ||||||||||||
Additions based on tax positions related to the current year | 770 | ||||||||||||
Additions based on tax positions of prior years | — | ||||||||||||
Reduction for tax positions of prior years | (4,673 | ) | |||||||||||
Settlements | — | ||||||||||||
Reduction as a result of lapse of applicable statute of limitations | (67 | ) | |||||||||||
Balance at January 3, 2015 | 18,673 | ||||||||||||
At January 3, 2015, it was reasonably possible that $14.2 million of unrecognized tax benefits and less than $0.1 million of associated interest and penalties could significantly change during the next twelve months. The $14.2 million potential change would represent a decrease in unrecognized tax benefits, with $14.1 million related to the valuation of our intellectual property sold to our Bermuda subsidiary, which is currently under tax authority examination. The remaining $0.1 million related to tax filings for years that will no longer be subject to examination under expiring statutes of limitations. | |||||||||||||
Our U.S. and French income tax returns are both currently under examination for 2011 and 2012, as well as our Singapore income tax return for 2012. We are not under examination in any state jurisdictions or any other foreign jurisdictions. | |||||||||||||
We are subject to federal and state income tax as well as income tax in the various foreign jurisdictions in which we operate. Additionally, the years that remain subject to examination are 2011 for federal income taxes, 2010 for state income taxes, and 2008 for foreign income taxes, including years ending thereafter. However, to the extent allowed by law, the tax authorities may have the right to examine prior periods where net operating losses or tax credits were generated and carried forward, and make adjustments up to the amount of the net operating losses or credit carryforward amount. | |||||||||||||
The American Taxpayer Relief Act of 2012, which reinstated the United States federal research and development tax credit retroactively from January 1, 2012 through December 31, 2013, was not enacted into law until the first quarter of 2013. The Tax Increase Prevention Tax Act of 2014 was enacted into law in the fourth quarter of 2014 and extended the research and development tax credit through December 31, 2014. The tax benefit in each year resulting from these reinstatements of the federal research and development tax credit was offset by a valuation allowance and therefore did not impact our annual effective tax rate. |
Restructuring
Restructuring | 12 Months Ended | |||||||||||||||
Jan. 03, 2015 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||
Restructuring | Restructuring | |||||||||||||||
In October 2012, the Company's Board of Directors adopted the "2012 restructuring plan." In connection with this restructuring plan, the Company reduced its headcount by approximately 110 employees and eliminated certain sites, including its sites in Pennsylvania and Illinois. In connection with this action, the Company recorded Restructuring charges in the Statements of Operations of approximately $17 thousand and approximately $0.4 million during 2014 and 2013, respectively. In 2012, the Company recorded Restructuring charges of $5.4 million related to the 2012 restructuring plan and $0.7 million related to the 2011 restructuring plan which was completed during the second quarter of 2012. | ||||||||||||||||
The following table displays the activity related to the restructuring plans described above: | ||||||||||||||||
(In thousands) | Severance and related | Lease termination | Other | Total | ||||||||||||
Balance at December 31, 2011 | $ | 1,556 | $ | 26 | $ | — | $ | 1,582 | ||||||||
Restructuring charges | 4,277 | 1,083 | 776 | 6,136 | ||||||||||||
Cash payments | (3,356 | ) | (302 | ) | (518 | ) | (4,176 | ) | ||||||||
Adjustments to prior restructuring costs | (104 | ) | (14 | ) | — | (118 | ) | |||||||||
Balance at December 29, 2012 | $ | 2,373 | $ | 793 | $ | 258 | $ | 3,424 | ||||||||
Restructuring charges | 109 | 224 | 253 | 586 | ||||||||||||
Cash payments | (2,315 | ) | (740 | ) | (225 | ) | (3,280 | ) | ||||||||
Adjustments to prior restructuring costs | (150 | ) | 91 | (139 | ) | (198 | ) | |||||||||
Balance at December 28, 2013 | $ | 17 | $ | 368 | $ | 147 | $ | 532 | ||||||||
Restructuring charges | — | 1 | 9 | 10 | ||||||||||||
Cash payments | (8 | ) | (341 | ) | (18 | ) | (367 | ) | ||||||||
Adjustments to prior restructuring costs | (9 | ) | 15 | 1 | 7 | |||||||||||
Balance at January 3, 2015 | $ | — | $ | 43 | $ | 139 | $ | 182 | ||||||||
Common_Stock_Repurchase_Progra
Common Stock Repurchase Program | 12 Months Ended |
Jan. 03, 2015 | |
Equity [Abstract] | |
Common Stock Repurchase Program | Common Stock Repurchase Program |
On March 3, 2014, the Company's Board of Directors approved a stock repurchase program pursuant to which up to $20.0 million of outstanding common stock may be repurchased from time to time. The duration of the repurchase program is twelve months. Under this program during fiscal 2014, approximately 1.9 million shares were repurchased for $13.1 million. At January 3, 2015, we had approximately $6.9 million remaining under the approved program. All shares repurchased under this program were retired by January 3, 2015. All repurchases were open market transactions funded from available working capital. The 2014 program was completed during February 2015 for the approved amount. | |
On February 27, 2013, the Company's Board of Directors approved a stock repurchase program pursuant to which up to $20.0 million of outstanding common stock may be repurchased from time to time. The duration of the repurchase program was twelve months. During fiscal 2013, approximately 0.8 million shares were repurchased at $3.7 million. At December 28, 2013, we had approximately $16.3 million remaining under the approved program. All shares repurchased under this program were retired by December 28, 2013. All repurchases were open market transactions funded from available working capital. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Stockholders' Equity | Stockholders' Equity | ||||||||||||
Employee and Director Stock Options, Restricted Stock and ESPP | |||||||||||||
We have four equity incentive plans (the "1996 Stock Incentive Plan," the "2001 Stock Plan," the "2013 Incentive Plan" and the "2011 Non-Employee Director Equity Incentive Plan"). Awards granted under the 1996 Stock Incentive Plan and the 2001 Stock Plan remain outstanding, but no shares are available for future awards under these plans. Shares remain available for grants to employees and non-employee directors only under the 2013 Incentive Plan and the 2011 Non-Employee Director Equity Incentive Plan. "Incentive stock options" under Section 422 of the U.S. Internal Revenue Code and restricted stock unit ("RSU") grants are part of our equity compensation practices for employees who receive equity grants. Options and RSUs generally vest quarterly over a four-year period beginning on the grant date. The contractual terms of options granted do not exceed ten years. | |||||||||||||
At January 3, 2015, a total of 9.6 million shares of our common stock were available for future grants under the Plans. Shares subject to stock option grants that expire or are canceled, without delivery of such shares, generally become available for re-issuance under the Plans. | |||||||||||||
In May 2012, the Company's stockholders approved the 2012 Employee Stock Purchase Plan ("2012 ESPP"). The Plan authorizes the issuance of 3,000,000 shares of common stock to eligible employees to purchase shares of common stock through payroll deductions, which cannot exceed 10% of an employee's compensation. The purchase price of the shares is the lower of 85% of the fair market value of the stock at the beginning of each six-month offering period or 85% of the fair market value at the end of such period. Employees are required to hold purchased shares for six months. We have treated the 2012 ESPP as a compensatory plan, and recorded related compensation expense of $0.3 million, $0.2 million and less than $0.1 million for the fiscal years 2014, 2013 and 2012, respectively. At January 3, 2015, a total of 2.5 million shares of our common stock were available for future purchases under the 2012 ESPP. | |||||||||||||
The Company's ESPP, which was amended and approved by our stockholders in May 2007 ("2007 ESPP"), permits eligible employees to purchase shares of common stock through payroll deductions, not to exceed 10% of an employee's compensation. The purchase price of the shares is the lower of 85% of the fair market value of the stock at the beginning of each six-month offering period or 85% of the fair market value at the end of such period, but in no event less than the book value per share at the mid-point of each offering period. An aggregate of 5,500,000 shares of common stock have been authorized for issuance under the plan. We have treated the 2007 ESPP as a compensatory plan and recorded compensation expense related to the 2007 ESPP of $0.1 million for fiscal 2012. The 2007 ESPP was replaced with the 2012 ESPP in May 2012. | |||||||||||||
Stock-Based Compensation | |||||||||||||
Total stock-based compensation expense included in our Consolidated Statements of Operations was as follows: | |||||||||||||
Year Ended | |||||||||||||
(In thousands) | January 3, | December 28, | December 29, | ||||||||||
2015 | 2013 | 2012 | |||||||||||
Line item: | |||||||||||||
Cost of products sold | $ | 819 | $ | 627 | $ | 525 | |||||||
Research and development | 5,176 | 3,916 | 3,009 | ||||||||||
Selling, general and administrative | 6,807 | 4,979 | 3,976 | ||||||||||
Total stock-based compensation | $ | 12,802 | $ | 9,522 | $ | 7,510 | |||||||
ASC 718, “Compensation-Stock Compensation (“ASC 718”),” requires that we recognize compensation expense for only the portion of employee and director options and ESPP rights that are expected to vest. | |||||||||||||
The fair value of each option award is estimated on the date of grant using the Black-Scholes valuation model and the assumptions noted in the following table. Beginning January 1, 2006, in connection with the adoption of ASC 718, the Company examined the historical pattern of option exercises in an effort to determine if there were any discernible activity patterns based on certain employee populations. From this analysis, the Company identified two employee populations. Prior to January 3, 2009, the Company used the simplified method as prescribed by the SEC's Staff Accounting Bulletin No. 107. The Company now believes that it has sufficient internal historical data to refine the expected term assumption. As such, the expected term computation is based on historical vested option exercises and includes an estimate of the expected term for options that were fully vested and outstanding at January 3, 2009 for each of the two populations identified. The expected volatility of both stock options and ESPP shares is based on the daily historical volatility of our stock price, measured over the expected term of the option or the ESPP purchase period. The risk-free interest rate is based on the implied yield on a U.S. Treasury zero-coupon issue with a remaining term closest to the expected term of the option. The dividend yield reflects that we have not paid any cash dividends since inception and do not intend to pay any cash dividends in the foreseeable future. | |||||||||||||
Year Ended | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
Employee and Director Stock Options | |||||||||||||
Expected volatility | 45.4% to 50.4% | 51.4% to 54.3% | 58.1% to 59.5% | ||||||||||
Risk-free interest rate | 1.5%-1.7% | 0.7% to 1.0% | 0.6% to 1.0% | ||||||||||
Expected term | 4.1 to 4.7 years | 4.1 to 4.5 years | 4.1 to 4.5 years | ||||||||||
Dividend yield | —% | —% | —% | ||||||||||
Employee Stock Purchase Plan | |||||||||||||
Weighted average expected volatility | 38.70% | 48.00% | 50.00% | ||||||||||
Weighted average risk-free interest rate | 0.08% | 0.11% | 0.12% | ||||||||||
Expected term | 6 months | 6 months | 6 months | ||||||||||
Dividend yield | —% | —% | —% | ||||||||||
At January 3, 2015, there was $10.0 million of total unrecognized compensation cost related to unvested employee and director stock options, which is expected to be recognized over a weighted average period of 4.6 years. Our current practice is to issue new shares to satisfy option exercises. Compensation expense for all stock-based compensation awards is recognized using the straight-line method. | |||||||||||||
The following table summarizes our stock option activity and related information for the year ended January 3, 2015: | |||||||||||||
(Shares and aggregate intrinsic value in thousands) | Shares | Weighted | Weighted average | Aggregate | |||||||||
average | remaining | Intrinsic Value | |||||||||||
exercise price | contractual term (years) | ||||||||||||
Balance, December 28, 2013 | 10,441 | $ | 4.88 | ||||||||||
Granted | 1,932 | 7.16 | |||||||||||
Exercised | (2,486 | ) | 4.41 | ||||||||||
Forfeited or expired | (512 | ) | 5.41 | ||||||||||
Balance, January 3, 2015 | 9,375 | $ | 5.45 | ||||||||||
Vested and expected to vest at January 3, 2015 | 9,375 | $ | 5.45 | 4.56 | $ | 14,427 | |||||||
Exercisable, January 3, 2015 | 5,114 | $ | 5.01 | 3.66 | $ | 9,827 | |||||||
The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the Company's closing stock price on the last trading day of the fiscal year and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on that day. This amount changes based on the fair market value of the Company's stock. Total intrinsic value of options exercised for fiscal 2014, 2013 and 2012, and was $7.8 million, $2.5 million and $3.4 million, respectively. The total fair value of options and RSUs vested and expensed in fiscal 2014, 2013 and 2012 and was $12.8 million, $9.3 million and $7.4 million, respectively. | |||||||||||||
The resultant grant date weighted-average fair values calculated using the Black-Scholes option pricing model and the noted assumptions for stock options granted were $2.93, $2.10 and $2.74 for fiscal years 2014, 2013 and 2012, respectively. The weighted average fair values calculated using the Black-Scholes option pricing model for the ESPP were $1.73, $1.29 and $1.35 for fiscal years 2014, 2013 and 2012, respectively. | |||||||||||||
The following table summarizes our RSU activity for the year ended January 3, 2015: | |||||||||||||
(Shares in thousands) | Shares | Weighted average grant date fair value | |||||||||||
Balance at December 28, 2013 | 2,190 | $ | 5.49 | ||||||||||
Granted | 1,316 | 7.5 | |||||||||||
Vested | (1,302 | ) | 5.61 | ||||||||||
Forfeited | (183 | ) | 6.18 | ||||||||||
Balance at January 3, 2015 | 2,021 | $ | 6.66 | ||||||||||
At January 3, 2015, there was $11.1 million of total unrecognized compensation cost related to unvested RSUs. Our current practice is to issue new shares when RSUs vest. Compensation expense for RSUs is recognized using the straight-line method over the related vesting period. | |||||||||||||
At January 3, 2015, a total of 9.6 million shares of our common stock were available for future grants under our stock option plans. Shares subject to stock option grants that expire or are canceled without delivery of such shares generally become available for re-issuance under these plans. At January 3, 2015, a total of 2.5 million shares of our common stock were available for future purchases under our ESPP. | |||||||||||||
During the fiscal year ended January 3, 2015, we granted 98,592 market-based, restricted stock units in two equal tranches, each of which vest upon achievement of certain market-based conditions. The fair values of the market-based restricted stock units were determined and fixed on the date of grant using a lattice-based option-pricing valuation model, which incorporates a Monte-Carlo simulation, and considered the likelihood that we would achieve the market-based conditions. During the first quarter of fiscal 2014, the first tranche of 49,296 restricted stock units vested and we incurred stock compensation expense related to performance based awards of $0.5 million. During the second quarter of fiscal 2014, the second tranche of 49,296 restricted stock units vested and we incurred stock compensation expense related to performance based awards of $0.2 million, amounting to a total stock compensation expense related to performance based awards of $0.7 million for the fiscal year ended January 3, 2015. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Jan. 03, 2015 | |
Compensation Related Costs [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans |
Qualified Investment Plan | |
In 1990, we adopted a 401(k) plan, which provides participants with an opportunity to accumulate funds for retirement. The plan does not allow investments in the Company's common stock. The plan allows for the Company to make discretionary matching contributions in cash. The Company recorded no matching contributions in fiscal 2014 or 2013, but matched contributions for a total of $0.8 million in fiscal 2012. | |
2013 Cash Incentive Plan | |
On February 4, 2013, upon the recommendation of the Compensation Committee, the Board of Directors of the Company approved the 2013 Cash Incentive Plan (the “2013 Cash Plan”). The Chief Executive Officer, other executive officers, and other members of senior management, including vice presidents and director-level employees, together with all other employees of the Company not on the Company's sales incentive plan are eligible to participate in the 2013 Cash Plan. Under the 2013 Cash Plan, individual cash incentive payments for the eligible employees will be based both on Company financial performance, as measured by achievement of operating income (before incentive plan accruals) and revenue goals within specified ranges established by the Compensation Committee, and Company performance, as measured by the achievement of personal management objectives. The Compensation Committee will determine the performance of the chief executive officer, the chief financial officer and other participants based on the achievement of the management objectives established by the committee during the first fiscal quarter of 2013. There was $11.3 million of expense recorded under this plan in fiscal 2013. | |
2014 Cash Incentive Plan | |
On February 3, 2014, upon the recommendation of the Compensation Committee, the Board of Directors of the Company approved the 2014 Cash Incentive Plan (the “2014 Cash Plan”). The Chief Executive Officer, other executive officers, and other members of senior management, including vice presidents and director-level employees, together with all other employees of the Company not on the Company's sales incentive plan are eligible to participate in the 2014 Cash Plan. Under the 2014 Cash Plan, individual cash incentive payments for the eligible employees will be based both on Company financial performance, as measured by achievement of operating income (before incentive plan accruals) and revenue goals within specified ranges established by the Compensation Committee, and Company performance, as measured by the achievement of personal management objectives. The Compensation Committee will determine the performance of the chief executive officer, the chief financial officer and other participants based on the achievement of the management objectives established by the committee during the first fiscal quarter of 2014. There was $11.6 million of expense recorded under this plan in fiscal 2014. |
Legal_Matters
Legal Matters | 12 Months Ended |
Jan. 03, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters | Legal Matters |
In November 2014, a patent infringement lawsuit was filed by Papst Licensing GmbH & Co., KG ("Papst") against us in the U.S. District Court for the District of Delaware. In the complaint, Papst alleges that certain of the simulator or simulation products sold by the Company may infringe one or more of the patents held by Papst. No discovery has been conducted with respect to these allegations. At this stage of the proceedings, Lattice does not have an estimate of the likelihood or the amount of any potential exposure to the Company. The Company believes that it possesses defenses to these claims and intends to vigorously defend this litigation. It is reasonably possible that the actual losses may exceed our accrued liabilities, however, and we cannot currently estimate such amount. | |
On or about January 29, 2015, Silicon Image, Inc., members of its Board, the Company and the Company’s wholly-owned merger acquisition subsidiary, were named as defendants in two complaints filed in Santa Clara Superior Court by alleged stockholders in connection with the proposed merger of Silicon Image and the Company. Both complaints were dated January 29, 2015 and were captioned respectively Molland v. George, et al. and Stein v. Silicon Image, Inc. et. al. Five additional complaints were subsequently filed on January 30, 2015, February 4, 2015 and February 9, 2015 in Delaware Chancery Court by alleged stockholders of Silicon Image, Inc. in connection with the Merger, captioned respectively Pfeiffer v. Martino et. al.; Lipinski v. Silicon Image, Inc. et. al.; Feldbaum et. al. v. Silicon Image, Inc. et. al; Nelson v. Silicon Image, Inc. et. al. and Partansky v. Silicon Image, Inc. et. al. The five Delaware matters were subsequently consolidated into an action captioned In re Silicon Image Stockholders Litigation by order of the Delaware Chancery Court on February 11, 2015, and a consolidated amended complaint was filed in the matter on February 13, 2015. Two complaints captioned Tapia v. Silicon Image, Inc. et. al. and Caldwel v. Silicon Image, Inc. were also filed on February 4, 2015 and February 9, 2015 in Santa Clara Superior Court by alleged stockholders in connection with the Merger. Amended complaints were filed in the Molland and Stein actions on February 11, 2015. | |
Each of these lawsuits are purported class actions brought on behalf of Silicon Image stockholders, asserting claims against each member of the Board for breach of fiduciary duty, and against various of the Silicon Image, Silicon Image’s Board, the Company, and the Company’s wholly-owned merger subsidiary for aiding and abetting breach of fiduciary duty. The lawsuits allege that the Merger does not appropriately value Silicon Image, was the result of an inadequate process, and includes preclusive deal devices. The amended complaints also assert that the Silicon Image’s disclosures regarding the Merger in its Schedule 14D-9 omitted material information regarding the Merger. Each of these complaints purport to seek unspecified damages and may seek injunctive relief preventing consummation of the transactions. | |
The Company believes that the claims in these complaints are without merit and intends to vigorously defend this litigation. | |
An adverse judgment for monetary damages could have an adverse effect on the operations of the Company. A preliminary injunction could delay or jeopardize the completion of the Merger, and an adverse judgment granting permanent injunctive relief could indefinitely enjoin completion of the Merger. | |
We are also exposed to certain other asserted and unasserted potential claims. There can be no assurance that, with respect to potential claims made against us, we could resolve such claims under terms and conditions that would not have a material adverse effect on our business, our liquidity or our financial results. Periodically, we review the status of each significant matter and assess its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and a range of possible losses can be estimated, we then accrue a liability for the estimated loss based on the provisions of FASB ASC 450, “Contingencies" (“ASC 450”). Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based only on the best information available at the time. As additional information becomes available, we reassess the potential liability related to pending claims and litigation and may revise estimates. Presently, no accrual has been estimated under ASC 450 for potential losses that may or may not arise from the current lawsuits in which we are involved. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts (Notes) | 12 Months Ended | |||||||||||||||||||
Jan. 03, 2015 | ||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure | Valuation and Qualifying Accounts | |||||||||||||||||||
The following table displays the activity related to changes in our valuation and qualifying accounts: | ||||||||||||||||||||
(In thousands) | Balance at | Charged (Credit) to | Charged to | Write-offs | Balance at end | |||||||||||||||
beginning of | costs and | other accounts | net of | of period | ||||||||||||||||
period | expenses | recoveries | ||||||||||||||||||
Fiscal year ended January 3, 2015 | ||||||||||||||||||||
Allowance for deferred taxes | 150,528 | (9,958 | ) | 645 | — | 141,215 | ||||||||||||||
Allowance for doubtful accounts | 878 | — | — | (3 | ) | 875 | ||||||||||||||
Allowance for warranty expense | — | 81 | — | — | 81 | |||||||||||||||
151,406 | (9,877 | ) | 645 | (3 | ) | 142,171 | ||||||||||||||
Fiscal year ended December 28, 2013: | ||||||||||||||||||||
Allowance for deferred taxes | 149,209 | 1,636 | (317 | ) | — | 150,528 | ||||||||||||||
Allowance for doubtful accounts | 1,122 | 41 | — | (285 | ) | 878 | ||||||||||||||
Allowance for warranty expense | — | — | — | — | — | |||||||||||||||
150,331 | 1,677 | (317 | ) | (285 | ) | 151,406 | ||||||||||||||
Fiscal year ended December 29, 2012: | ||||||||||||||||||||
Allowance for deferred taxes | $ | 147,499 | $ | 1,652 | $ | 58 | $ | — | $ | 149,209 | ||||||||||
Allowance for doubtful accounts | 939 | 286 | — | (103 | ) | 1,122 | ||||||||||||||
Allowance for warranty expense | — | — | — | — | — | |||||||||||||||
$ | 148,438 | $ | 1,938 | $ | 58 | $ | (103 | ) | $ | 150,331 | ||||||||||
Segment_and_Geographic_Informa
Segment and Geographic Information | 12 Months Ended | |||||||||||||||||||||
Jan. 03, 2015 | ||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||
Segment and Geographic Information | Segment and Geographic Information | |||||||||||||||||||||
We operate in one industry segment comprising the design, development, manufacture and marketing of high performance programmable logic devices. Our revenue by major geographic area based on ship-to location was as follows: | ||||||||||||||||||||||
Year Ended | ||||||||||||||||||||||
(In thousands) | 3-Jan-15 | 28-Dec-13 | 29-Dec-12 | |||||||||||||||||||
United States: | $ | 30,848 | 8 | % | $ | 28,506 | 9 | % | 34,172 | 12 | % | |||||||||||
China | 159,155 | 43 | 148,018 | 45 | 113,585 | 41 | ||||||||||||||||
Europe | 59,041 | 16 | 47,459 | 14 | 48,202 | 17 | ||||||||||||||||
Japan | 31,207 | 9 | 26,538 | 8 | 35,696 | 13 | ||||||||||||||||
Taiwan | 6,691 | 2 | 6,708 | 2 | 8,276 | 3 | ||||||||||||||||
Other Asia | 69,778 | 19 | 64,425 | 19 | 32,254 | 12 | ||||||||||||||||
Other Americas | 9,407 | 3 | 10,871 | 3 | 7,071 | 2 | ||||||||||||||||
Total foreign revenue | 335,279 | 92 | 304,019 | 91 | 245,084 | 88 | ||||||||||||||||
Total revenue | $ | 366,127 | 100 | % | $ | 332,525 | 100 | % | $ | 279,256 | 100 | % | ||||||||||
We assign revenue to geographies based on the customer ship-to address at the point where revenue is recognized. In the case of sell-in distributors and OEM customers, revenue is typically recognized, and geography is assigned, when products are shipped to our distributor or customer. In the case of sell-through distributors, revenue is recognized when resale occurs and geography is assigned based on the customer location on the resale reports provided by the distributor. | ||||||||||||||||||||||
Revenue by Distributors | ||||||||||||||||||||||
Our largest customers are often distributors and sales through distributors have historically made up a significant portion of our total revenue. Revenue attributable to resales of products by our primary distributors are as follows: | ||||||||||||||||||||||
% of Total Revenue | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Arrow Electronics Inc. (including Nu Horizons Electronics) | 24 | % | 23 | % | 28 | % | ||||||||||||||||
Weikeng Group | 10 | 12 | 12 | |||||||||||||||||||
All others | 11 | 10 | 15 | |||||||||||||||||||
All sell-through distributors | 45 | % | 45 | % | 55 | % | ||||||||||||||||
Orders from our sell-through distributors are initially recorded at published list prices; however, for a majority of our sales, the final selling price is determined at the time of resale and in accordance with a distributor price agreement. In certain circumstances, we allow sell-through distributors to return unsold products. At times, we protect our sell-through distributors against reductions in published list prices. For these reasons, we do not recognize revenue until products are resold by sell-through distributors to an end customer. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) | ||||||||||||||||||||||||||||||||
A summary of the Company's consolidated quarterly results of operations is as follows: | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
(In thousands, except per share data) | Q4 * | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
Revenue | $ | 83,600 | $ | 86,570 | $ | 99,320 | $ | 96,637 | $ | 89,519 | $ | 87,154 | $ | 84,694 | $ | 71,158 | |||||||||||||||||
Gross margin | 46,263 | 50,811 | 54,975 | 54,138 | 48,603 | 46,376 | 45,110 | 38,155 | |||||||||||||||||||||||||
Restructuring charges | 1 | 2 | 3 | 11 | 131 | 85 | 19 | 153 | |||||||||||||||||||||||||
Net income (loss) | 15,419 | 9,406 | 11,771 | 11,984 | 6,547 | 8,844 | 5,040 | 1,890 | |||||||||||||||||||||||||
Basic net income per share | $ | 0.13 | $ | 0.08 | $ | 0.1 | $ | 0.1 | $ | 0.06 | $ | 0.08 | $ | 0.04 | $ | 0.02 | |||||||||||||||||
Diluted net income per share | $ | 0.13 | $ | 0.08 | $ | 0.1 | $ | 0.1 | $ | 0.06 | $ | 0.08 | $ | 0.04 | $ | 0.02 | |||||||||||||||||
* The fourth quarter of 2014 was a 14-week quarter as compared to the prior quarters in 2014 and 2013, which were based on our standard 13-week quarter. |
Nature_of_Operations_and_Signi1
Nature of Operations and Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 03, 2015 | |
Accounting Policies [Abstract] | |
Fiscal Reporting Period | Fiscal Reporting Period |
We report based on a 52 or 53-week fiscal year ending on the Saturday closest to December 31. Our fiscal 2014 was a 53-week year that ended January 3, 2015. Our fiscal 2013, 2012, 2011, and 2010 were 52-week years that ended December 28, 2013, December 29, 2012, December 31, 2011, and January 1, 2011, respectively. Our fiscal 2015 will be a 52-week year and will end on January 2, 2016. All references to quarterly or yearly financial results are references to the results for the relevant fiscal period. | |
Principles of Consolidation | Principles of Consolidation |
The accompanying Consolidated Financial Statements include the accounts of Lattice and its subsidiaries, all of which are wholly owned, after the elimination of all intercompany balances and transactions. Certain balances in prior fiscal years have been reclassified to conform to the presentation adopted in the current year. | |
Cash Equivalents | Cash Equivalents and Marketable Securities |
We consider all investments that are readily convertible into cash and have original maturities of three months or less, to be cash equivalents. Cash equivalents consist primarily of highly liquid investments in time deposits or money market accounts and are carried at cost. | |
Marketable Securities | We account for marketable securities as available for sale with unrealized gains or losses recorded to Accumulated other comprehensive loss, unless losses are considered other-than-temporary, in which case, losses are charged to the Consolidated Statements of Operations. Deposits with financial institutions at times exceed Federal Deposit Insurance Corporation insurance limits. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
We invest in various financial instruments including corporate and government bonds, notes and commercial paper. We were also invested in auction rate securities until June 2014. The Company values these instruments at fair value and monitors their portfolio for impairment on a periodic basis. In the event that the carrying value of an investment exceeds its fair value and the decline in value is determined to be other-than-temporary, the Company records an impairment charge and establishes a new carrying value. We assess other-than-temporary impairment of marketable securities in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures.” The framework under the provisions of ASC 820 establishes three levels of inputs that may be used to measure fair value. Each level of input has different levels of subjectivity and difficulty involved in determining fair value. | |
Level 1 instruments are characterized generally by quoted prices for identical assets or liabilities in active markets. Therefore, determining fair value for Level 1 instruments generally does not require significant management judgment, and the estimation is not difficult. | |
Level 2 instruments include inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices for identical instruments in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |
Level 3 instruments include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Our auction rate securities were classified as Level 3 instruments. Management used a combination of the market and income approach to derive the fair value of auction rate securities, which included third party valuation results, investment broker provided market information and available information on the credit quality of the underlying collateral. As a result, the determination of fair value for Level 3 instruments requires significant management judgment and subjectivity. Our Level 3 instruments were classified as Long-term marketable securities on our Consolidated Balance Sheets and were entirely made up of auction rate securities that consisted of student loan asset-backed notes. During fiscal 2014 we sold our Level 3 instruments, which consisted entirely of auction rate securities. | |
Foreign Exchange and Translation of Foreign Currencies | Foreign Exchange and Translation of Foreign Currencies |
We have international subsidiary and branch operations. In addition, a portion of our silicon wafer and other purchases are denominated in Japanese yen, we bill certain Japanese customers in yen and collect a Japanese consumption tax refund in yen. Gains or losses from foreign exchange rate fluctuations on balances denominated in foreign currencies are reflected in Other income (expense), net. Realized and unrealized gains or losses on foreign currency transactions were not significant for the periods presented. We translate accounts denominated in foreign currencies in accordance with ASC 830, “Foreign Currency Matters,” using the current rate method under which asset and liability accounts are translated at the current rate, while stockholders' equity accounts are translated at the appropriate historical rates, and revenue and expense accounts are translated at average monthly exchange rates. Translation adjustments related to the consolidation of foreign subsidiary financial statements are reflected in Accumulated other comprehensive loss in Stockholders' equity. | |
Derivative Financial Instruments | Derivative Financial Instruments |
We had forward contracts for Japanese yen of $4.2 million and $2.3 million at January 3, 2015 and December 28, 2013, respectively. One contract outstanding at January 3, 2015 settled in January 2015 and the other five contracts will settle in June 2015. The contracts outstanding at December 28, 2013 settled in January 2014 and June 2014, respectively. Although such hedges mitigate our foreign currency exchange rate exposure from an economic perspective they were not designated as "effective" hedges for accounting purposes and are adjusted to fair value through Other income (expense), net, with an impact of approximately $0.4 million and less than $0.1 million for the years end January 3, 2015 and December 28, 2013, respectively. | |
Concentration Risk | Concentration Risk |
Potential exposure to concentration risk consists primarily of revenue concentration, cash and cash equivalents, marketable securities, accounts receivable and supply of wafers for our new products. One OEM end customer accounted for 19% of revenue in fiscal 2014, while a second OEM end customer accounted for 12% of total revenue in fiscal 2014. One OEM end customer accounted for 22% of revenue in fiscal 2013. No end customer accounted for more than 10% of revenue in fiscal 2012. We place our investments primarily through two financial institutions and mitigate the concentration of credit risk by limiting the maximum portion of the investment portfolio which may be invested in any one instrument. The Company's investment policy defines approved credit ratings for investment securities. Investments on-hand consisted primarily of money market instruments, “AA” or better corporate notes and bonds and commercial paper, and U.S. government agency obligations. See Note 4 for a discussion of the liquidity attributes of our marketable securities. | |
Concentration of credit risk with respect to accounts receivable is mitigated by our credit and collection process. Accounts receivable are recorded at the invoice amount, do not bear interest, and are shown net of allowances for doubtful accounts of $0.9 million and $0.9 million at January 3, 2015 and December 28, 2013, respectively. We perform credit evaluations for essentially all customers and secure transactions with letters of credit or advance payments where appropriate. We regularly review our allowance for doubtful accounts and the aging of our accounts receivable. Write-offs for uncollected accounts receivable have not been significant to date. | |
We rely on a limited number of foundries for our wafer purchases including: Fujitsu Limited, Seiko Epson Corporation, Taiwan Semiconductor Manufacturing Company, Ltd and United Microelectronics Corporation | |
Revenue Recognition and Deferred Income | Revenue Recognition and Deferred Income |
We sell our products directly to end customers or through a network of independent manufacturers' representatives and indirectly through a network of independent sell-in and sell-through distributors. Distributors provide periodic data regarding the product, price, quantity, and end customer when products are resold, as well as the quantities of our products they still have in stock. | |
Revenue from sales to OEMs or sell-in distributors is recognized upon shipment. Revenue from sales by our sell-through distributors is recognized at the time of reported resale. Under both types of revenue recognition, persuasive evidence of an arrangement exists, the price is fixed or determinable, title has transferred, collection of resulting receivables is reasonably assured, and there are no remaining customer acceptance requirements and no remaining significant performance obligations. Revenue and Cost of products sold are presented net of taxes collected on behalf of government authorities. | |
Orders from our sell-through distributors are initially recorded at published list prices; however, for a majority of our sales, the final selling price is determined at the time of resale and in accordance with a distributor price agreement. In certain circumstances, we allow sell-through distributors to return unsold products. At times, we protect our sell-through distributors against reductions in published list prices. For these reasons, we do not recognize revenue until products are resold by sell-through distributors to an end customer. | |
For sell-through distributors, at the time of shipment to distributors, we (a) record Accounts receivable at published list price since there is a legally enforceable obligation from the distributor to pay us currently for product delivered, (b) relieve inventory for the carrying value of goods shipped since legal title has passed to the distributor, and (c) record deferred revenue and deferred cost of sales in Deferred income and allowances on sales to sell-through distributors in the liability section of our Consolidated Balance Sheets. The final price is set at the time of resale and is determined in accordance with a distributor price agreement. Revenue and cost of products sold 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 products sold are reflected in Net income (loss), and Accounts receivable are adjusted to reflect the final selling price. | |
We must use estimates and apply judgment to reconcile sell-through distributors' reported inventories to their activities. Errors in our estimates or judgments could result in inaccurate reporting of our Revenue, Cost of products sold, Deferred income and allowances on sales to sell-through distributors, and Net income (loss). | |
Inventories | Inventories |
Inventories are recorded at the lower of actual cost determined on a first-in-first-out basis or market. We establish provisions for inventory if it is obsolete or we hold quantities which are in excess of projected customer demand. The creation of such provisions results in a write-down of inventory to net realizable value and a charge to Cost of products sold. | |
Property and Equipment | Property and Equipment |
Property and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method for financial reporting purposes over the estimated useful lives of the related assets, generally three to five years for equipment and software, one to three years for tooling and thirty years for buildings. Upon disposal of Property and equipment, the accounts are relieved of the costs and related accumulated depreciation and amortization, and resulting gains or losses are reflected in the Consolidated Statements of Operations for recognized gains and losses, or in the Consolidated Balance Sheets for deferred gains and losses. Repair and maintenance costs are expensed as incurred. | |
Asset Impairments, Valuation of Goodwill | Asset Impairments |
Long-lived assets, including amortizable intangible assets, are carried on our financial statements based on their cost less accumulated depreciation or amortization. We monitor the carrying value of our long-lived assets for potential impairment and test the recoverability of such assets whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. These events or changes in circumstances, including management decisions pertaining to such assets, are referred to as impairment indicators. If an impairment indicator occurs, we perform a test of recoverability by comparing the carrying value of the asset group to its undiscounted expected future cash flows. If the carrying values are in excess of undiscounted expected future cash flows, we measure any impairment by comparing the fair value of the asset group to its carrying value. Fair value is generally determined by considering (i) internally developed discounted projected cash flow analysis of the asset group; (ii) actual third-party valuations; and/or (iii) information available regarding the current market for similar asset groups. If the fair value of the asset group is determined to be less than the carrying amount of the asset group, an impairment in the amount of the difference is recorded in the period that the impairment indicator occurs and is included in our Consolidated Statement of Operations. Estimating future cash flows requires significant judgment and projections may vary from the cash flows eventually realized, which could impact our ability to accurately assess whether an asset has been impaired. No impairment charges were recorded for the fiscal year ended 2014. | |
Valuation of Goodwill | |
Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The Company reviews goodwill for impairment annually during the fourth quarter and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. When evaluating whether goodwill is impaired, the Company makes a qualitative assessment to determine if it is more likely than not that the reporting unit's fair value is less than its carrying amount. If the qualitative assessment determines that it is more likely than not that its fair value is less than its carrying amount, the fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the Company must measure the impairment loss. The impairment loss, if any, is recognized for any excess of the carrying amount of the reporting unit's goodwill over the implied fair value of the goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. If the fair value of the reporting unit exceeds its carrying value, no further impairment analysis is needed. For purposes of testing goodwill for impairment, the Company operates as a single reporting unit. No goodwill impairment charges were recorded for the fiscal year ended 2014. | |
Leases | Leases |
We lease office space and classify our leases as either operating or capital lease arrangements in accordance with the criteria of ASC 840, “Leases.” Certain of our office space operating leases contain provisions under which monthly rent escalates over time and certain leases may also contain provisions for reimbursement of a specified amount of leasehold improvements. When lease agreements contain escalating rent clauses, we recognize expense on a straight-line basis over the term of the lease. When lease agreements provide allowances for leasehold improvements, we capitalize the leasehold improvement assets and amortize them on a straight-line basis over the lesser of the lease term or the estimated useful life of the asset, and reduce rent expense on a straight-line basis over the term of the lease by the amount of the asset capitalized. | |
Restructuring Charges | Restructuring Charges |
Expenses associated with exit or disposal activities are recognized when incurred under ASC 420, “Exit or Disposal Cost Obligations,” for everything but severance. Because the Company has a history of paying severance benefits, the cost of severance benefits associated with a restructuring plan is recorded when such costs are probable and the amount can be reasonably estimated in accordance with ASC 712, “Compensation - Nonretirement Postemployment Benefits.” When leased facilities are vacated, an amount equal to the total future lease obligations from the date of vacating the premises through the expiration of the lease, net of any future sublease income, was recorded as a part of restructuring charges. | |
Research and Development | Research and Development |
Research and development costs are expensed as incurred. | |
Accounting for Income Taxes | Accounting for Income Taxes |
The Company’s provision for income tax is comprised of its current tax liability and change in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements using enacted tax rates and laws that will be in effect when the difference is expected to reverse. Valuation allowances are provided to reduce deferred tax assets to an amount that in management’s judgment is more-likely-than-not to be recoverable against future taxable income. At January 3, 2015, U.S. income taxes were not provided on approximately $3.3 million of the undistributed earnings of our Chinese subsidiary as we intend to reinvest these earnings indefinitely. If these earnings were distributed to the U.S. in the form of dividends or otherwise, we would be subject to additional U.S. income taxes. | |
The Company’s income tax calculations are based on application of the respective U.S. federal, state or foreign tax law. The Company’s tax filings, however, are subject to audit by the relevant tax authorities. Accordingly, the Company recognizes tax liabilities based upon its estimate of whether, and the extent to which, additional taxes will be due when such estimates are more-likely-than-not to be sustained. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. To the extent the final tax liabilities are different than the amounts originally accrued, the increases or decreases as well as any interest or penalties are recorded as income tax expense or benefit in the Consolidated Statements of Operations. | |
In assessing the ability to realize deferred tax assets, the Company evaluates both positive and negative evidence that may exist and consider whether it is more-likely-than-not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. | |
Any adjustment to the net deferred tax asset valuation allowance is recorded in the Consolidated Statements of Operations for the period that the adjustment is determined to be required. | |
Share-Based Compensation | Stock-Based Compensation |
The Company records stock-based compensation expense related to employee and director stock options, restricted stock units (“RSUs”), and the Employee Stock Purchase Plan (“ESPP”) in accordance with ASC 718, “Compensation - Stock Compensation.” | |
Net (Loss) Income Per Share | Net Income (Loss) Per Share |
We compute basic income (loss) per share by dividing Net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. To determine diluted share count, we apply the treasury stock method to determine the dilutive effect of outstanding stock option shares, RSUs and ESPP shares. Our application of the treasury stock method includes as assumed proceeds, the average unamortized stock-based compensation expense for the period and the impact of the pro forma net deferred tax benefit or cost associated with stock-based compensation expense. | |
Use of Estimates | Use of Estimates |
The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts and classification of assets, such as marketable securities, accounts receivable, inventory, auction rate securities, goodwill - including the assessment of reporting unit, intangible assets, current and deferred income taxes, accrued liabilities - including restructuring charges and bonus arrangements, deferred income and allowances on sales to sell-through distributors, disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the fiscal periods presented. Actual results could differ from those estimates. | |
New Accounting Pronouncements | In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the criteria for reporting discontinued operations to only those disposals which represent a strategic shift in operations. In addition, the new guidance requires expanded disclosures about discontinued operations, including pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. The new standard became effective for us on January 4, 2015. Early adoption is permitted, but only for disposals (or classifications as held-for-sale) that have not been reported in financial statements previously issued or available for issuance. We do not expect the adoption of this accounting standard update to impact our consolidated financial statements. |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance under U.S. GAAP when it becomes effective. The new standard will become effective for us on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are currently evaluating the impact of ASU 2014-09 on our consolidated financial statements and related disclosures and have not yet selected a transition method. | |
In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, which focuses on the consolidation evaluation for reporting organizations and requires the evaluation of whether or not certain legal entities should be consolidated. All legal entities are subject to reevaluation under the revised consolidation model. The new standard will become effective for us on January 3, 2016. Early adoption is permitted, including adoption in an interim period. We do not expect the adoption of this accounting standard update to impact our consolidated financial statements. | |
On January 26, 2015, we entered into an agreement to commence a cash tender offer to acquire Silicon Image, Inc. The transaction will close upon the successful tender of required shares and regulatory approval. We are currently evaluating the impact of new accounting pronouncements as they relate to this business. |
Nature_of_Operations_and_Signi2
Nature of Operations and Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Jan. 03, 2015 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Schedule of Components of Deferred Income and Allowances on Sales to Sell-Through Distributors | The components of Deferred income and allowances on sales to sell-through distributors are presented in the following table | |||||||||||
(In thousands) | 3-Jan-15 | 28-Dec-13 | ||||||||||
Inventory valued at published list price and held by sell-through distributors with right of return | $ | 50,854 | $ | 36,056 | ||||||||
Allowance for distributor advances | (29,490 | ) | (24,090 | ) | ||||||||
Deferred cost of sales related to inventory held by sell-through distributors | (6,418 | ) | (4,471 | ) | ||||||||
Total Deferred income and allowances on sales to sell-through distributors | $ | 14,946 | $ | 7,495 | ||||||||
Schedule of Earnings Per Share Reconciliation | A reconciliation of basic and diluted Net income (loss) per share is presented below: | |||||||||||
Year Ended | ||||||||||||
(in thousands, except per share data) | January 3, | December 28, | December 29, | |||||||||
2015 | 2013 | 2012 | ||||||||||
Basic and diluted Net income (loss) | $ | 48,580 | $ | 22,321 | $ | (29,606 | ) | |||||
Shares used in basic Net income (loss) per share | 117,708 | 115,701 | 117,194 | |||||||||
Dilutive effect of stock options, RSUs and ESPP shares | 2,537 | 1,380 | — | |||||||||
Shares used in diluted Net income (loss) per share | 120,245 | 117,081 | 117,194 | |||||||||
Basic Net income (loss) per share | $ | 0.41 | $ | 0.19 | $ | (0.25 | ) | |||||
Diluted Net income (loss) per share | $ | 0.4 | $ | 0.19 | $ | (0.25 | ) | |||||
Marketable_Securities_Tables
Marketable Securities (Tables) | 12 Months Ended | |||||||||||||||||||
Jan. 03, 2015 | ||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||
Schedule of Contractual Maturities of Marketable Securities | The following table summarizes the remaining maturities of our marketable securities at fair value: | |||||||||||||||||||
(In thousands) | January 3, | December 28, | ||||||||||||||||||
2015 | 2013 | |||||||||||||||||||
Short-term marketable securities: | ||||||||||||||||||||
Maturing within one year | $ | 60,965 | $ | 51,920 | ||||||||||||||||
Maturing between one and two years | 78,268 | $ | 49,585 | |||||||||||||||||
Long-term marketable securities: | ||||||||||||||||||||
Maturing in more than ten years | — | 5,241 | ||||||||||||||||||
Total marketable securities | $ | 139,233 | $ | 106,746 | ||||||||||||||||
Schedule of Composition of Marketable Securities | The following table summarizes the composition of our marketable securities at fair value: | |||||||||||||||||||
(In thousands) | January 3, | December 28, | ||||||||||||||||||
2015 | 2013 | |||||||||||||||||||
Short-term marketable securities: | ||||||||||||||||||||
Corporate and government bonds and notes and commercial paper | $ | 139,233 | $ | 101,505 | ||||||||||||||||
Long-term marketable securities: | ||||||||||||||||||||
Federally-insured or FFELP guaranteed student loans | — | 5,241 | ||||||||||||||||||
Total marketable securities | $ | 139,233 | $ | 106,746 | ||||||||||||||||
Schedule of Composition of Auction Rate Securities | The following table summarizes the composition of our auction rate securities: | |||||||||||||||||||
3-Jan-15 | 28-Dec-13 | |||||||||||||||||||
(In thousands) | Par Value | Fair Value | S&P | Par Value | Fair Value | S&P | ||||||||||||||
Credit | Credit | |||||||||||||||||||
rating | rating | |||||||||||||||||||
Long-term marketable securities: | ||||||||||||||||||||
Federally-insured or FFELP guaranteed student loans | $ | — | $ | — | $ | 5,700 | $ | 5,241 | AA+ | |||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Jan. 03, 2015 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Schedule of Fair Value of Financial Instruments | Fair Value of Financial Instruments | |||||||||||||||||||||||||||||||
Fair value measurements as of | Fair value measurements as of | |||||||||||||||||||||||||||||||
3-Jan-15 | 28-Dec-13 | |||||||||||||||||||||||||||||||
(In thousands) | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Short-term marketable securities | $ | 139,233 | $ | 139,233 | $ | — | $ | — | $ | 101,505 | $ | 101,505 | $ | — | $ | — | ||||||||||||||||
Long-term marketable securities | — | — | — | — | 5,241 | — | — | 5,241 | ||||||||||||||||||||||||
Foreign currency forward exchange contracts, net | 414 | — | 414 | — | 48 | — | 48 | — | ||||||||||||||||||||||||
Total fair value of financial instruments | $ | 139,647 | $ | 139,233 | $ | 414 | $ | — | $ | 106,794 | $ | 101,505 | $ | 48 | $ | 5,241 | ||||||||||||||||
Schedule of Changes In Level 3 Instruments | During the fiscal years ended January 3, 2015 and December 28, 2013, the following changes occurred in our Level 3 instruments: | |||||||||||||||||||||||||||||||
Year Ended | ||||||||||||||||||||||||||||||||
(In thousands) | January 3, | December 28, | ||||||||||||||||||||||||||||||
2015 | 2013 | |||||||||||||||||||||||||||||||
Beginning fair value of Long-term marketable securities | $ | 5,241 | $ | 4,717 | ||||||||||||||||||||||||||||
Fair value of securities sold or redeemed | (5,488 | ) | — | |||||||||||||||||||||||||||||
Realized gain from increase in fair value | 247 | — | ||||||||||||||||||||||||||||||
Temporary fluctuations in fair value | — | 524 | ||||||||||||||||||||||||||||||
Ending fair value of Long-term marketable securities | $ | — | $ | 5,241 | ||||||||||||||||||||||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Jan. 03, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of Inventories | ||||||||
(In thousands) | January 3, | December 28, | ||||||
2015 | 2013 | |||||||
Work in progress | $ | 49,554 | $ | 32,111 | ||||
Finished goods | 15,371 | 14,111 | ||||||
Total inventories | $ | 64,925 | $ | 46,222 | ||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Jan. 03, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and Equipment | Property and Equipment | |||||||
(In thousands) | January 3, | December 28, | ||||||
2015 | 2013 | |||||||
Land | $ | — | $ | 1,456 | ||||
Buildings | 3,516 | 27,827 | ||||||
Computer and test equipment | 158,117 | 154,508 | ||||||
Office furniture and equipment | 7,028 | 9,122 | ||||||
Leasehold and building improvements | 13,213 | 16,695 | ||||||
181,874 | 209,608 | |||||||
Accumulated depreciation and amortization | (154,078 | ) | (167,889 | ) | ||||
$ | 27,796 | $ | 41,719 | |||||
Intangible_Assets_and_Acquisit1
Intangible Assets and Acquisition Related Charges (Tables) | 12 Months Ended | ||||||||||||||
Jan. 03, 2015 | |||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||
Schedule of Finite-Lived Intangible Assets | The following table summarizes the details of the Company’s total purchased intangible assets: | ||||||||||||||
(In thousands) | Weighted Average Amortization Period (in years) | Gross | Accumulated Amortization | Intangible assets, net of amortization January 3, 2015 | |||||||||||
Developed technology | 7 | $ | 10,700 | $ | (4,649 | ) | $ | 6,051 | |||||||
Customer relationships | 5.5 | 7,800 | (4,314 | ) | 3,486 | ||||||||||
Total | 6.3 | $ | 18,500 | $ | (8,963 | ) | $ | 9,537 | |||||||
Lease_Obligations_Tables
Lease Obligations (Tables) | 12 Months Ended | ||||
Jan. 03, 2015 | |||||
Leases [Abstract] | |||||
Operating Leases of Lessee Disclosure | Future minimum lease commitments at January 3, 2015 are as follows: | ||||
Fiscal year | Amount | ||||
(In thousands) | |||||
2015 | $ | 4,125 | |||
2016 | 3,702 | ||||
2017 | 3,440 | ||||
2018 | 3,449 | ||||
2019 | 3,534 | ||||
Thereafter | 22,708 | ||||
$ | 40,958 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign | The domestic and foreign components of Income (loss) before income taxes were as follows: | ||||||||||||
Year Ended | |||||||||||||
(In thousands) | January 3, 2015 | December 28, 2013 | December 29, 2012 | ||||||||||
Domestic | $ | 6,292 | $ | 6,293 | $ | 51,859 | |||||||
Foreign | 36,649 | 20,193 | (60,720 | ) | |||||||||
Income (loss) before taxes | $ | 42,941 | $ | 26,486 | $ | (8,861 | ) | ||||||
Schedule of Components of Income Tax Expense (Benefit) | The components of the income tax (benefit) expense are as follows: | ||||||||||||
Year Ended | |||||||||||||
(In thousands) | January 3, | December 28, | December 29, | ||||||||||
2015 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | 329 | $ | 251 | $ | (344 | ) | ||||||
State | 5 | (527 | ) | 36 | |||||||||
Foreign | 1,944 | 1,616 | 1,498 | ||||||||||
2,278 | 1,340 | 1,190 | |||||||||||
Deferred: | |||||||||||||
Federal | (7,416 | ) | 2,549 | 18,000 | |||||||||
State | (513 | ) | 342 | 1,487 | |||||||||
Foreign | 12 | (66 | ) | 68 | |||||||||
(7,917 | ) | 2,825 | 19,555 | ||||||||||
Income tax (benefit) expense | $ | (5,639 | ) | $ | 4,165 | $ | 20,745 | ||||||
Schedule of Effective Income Tax Rate Reconciliation | Income tax (benefit) expense differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pretax income as a result of the following differences: | ||||||||||||
Year Ended | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
% | % | % | |||||||||||
Statutory federal rate | 35 | 35 | 35 | ||||||||||
Adjustments for tax effects of: | |||||||||||||
State taxes, net | 1 | 2 | -2 | ||||||||||
Research and development credits | -9 | -11 | -1 | ||||||||||
Stock compensation | 1 | 3 | -3 | ||||||||||
Foreign rate differential | -25 | -20 | -252 | ||||||||||
Foreign dividends | 1 | — | 3 | ||||||||||
Capital loss expiration | 7 | 2 | — | ||||||||||
Valuation allowance | -23 | 6 | -19 | ||||||||||
Change in uncertain tax benefit accrual | 1 | -1 | 3 | ||||||||||
Tax rate change | -4 | -1 | — | ||||||||||
Other | 2 | 1 | 2 | ||||||||||
Effective income tax rate | -13 | 16 | -234 | ||||||||||
Schedule of Deferred Tax Assets and Liabilities | The components of our net deferred tax assets are as follows: | ||||||||||||
(In thousands) | January 3, | December 28, | |||||||||||
2015 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Accrued expenses and reserves | $ | 5,416 | $ | 4,959 | |||||||||
Stock-based and deferred compensation | 5,530 | 4,986 | |||||||||||
Intangible assets | 9,841 | 8,456 | |||||||||||
Fixed assets | 983 | 828 | |||||||||||
Net operating loss carry forwards | 96,543 | 101,144 | |||||||||||
Tax credit carry forwards | 40,588 | 36,644 | |||||||||||
Capital loss carry forwards | 4,142 | 6,698 | |||||||||||
Unrealized loss on securities | — | 758 | |||||||||||
Other | 220 | 143 | |||||||||||
163,263 | 164,616 | ||||||||||||
Less: valuation allowance | (141,215 | ) | (150,528 | ) | |||||||||
Net deferred tax assets | 22,048 | 14,088 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Other | 717 | 969 | |||||||||||
Total deferred tax liabilities | 717 | 969 | |||||||||||
Net deferred tax assets | $ | 21,331 | $ | 13,119 | |||||||||
Schedule of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns Roll Forward | The following table summarizes the changes to unrecognized tax benefits for fiscal years 2014, 2013 and 2012: | ||||||||||||
(In thousands) | Amount | ||||||||||||
Balance at December 31, 2011 | 21,552 | ||||||||||||
Additions based on tax positions related to the current year | 384 | ||||||||||||
Additions based on tax positions of prior years | 192 | ||||||||||||
Reduction for tax positions of prior years | (26 | ) | |||||||||||
Settlements | (30 | ) | |||||||||||
Reduction as a result of lapse of applicable statute of limitations | (392 | ) | |||||||||||
Balance at December 29, 2012 | $ | 21,680 | |||||||||||
Additions based on tax positions related to the current year | 1,600 | ||||||||||||
Additions based on tax positions of prior years | 68 | ||||||||||||
Reduction for tax positions of prior years | — | ||||||||||||
Settlements | (338 | ) | |||||||||||
Reduction as a result of lapse of applicable statute of limitations | (367 | ) | |||||||||||
Balance at December 28, 2013 | 22,643 | ||||||||||||
Additions based on tax positions related to the current year | 770 | ||||||||||||
Additions based on tax positions of prior years | — | ||||||||||||
Reduction for tax positions of prior years | (4,673 | ) | |||||||||||
Settlements | — | ||||||||||||
Reduction as a result of lapse of applicable statute of limitations | (67 | ) | |||||||||||
Balance at January 3, 2015 | 18,673 | ||||||||||||
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | |||||||||||||||
Jan. 03, 2015 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | The following table displays the activity related to the restructuring plans described above: | |||||||||||||||
(In thousands) | Severance and related | Lease termination | Other | Total | ||||||||||||
Balance at December 31, 2011 | $ | 1,556 | $ | 26 | $ | — | $ | 1,582 | ||||||||
Restructuring charges | 4,277 | 1,083 | 776 | 6,136 | ||||||||||||
Cash payments | (3,356 | ) | (302 | ) | (518 | ) | (4,176 | ) | ||||||||
Adjustments to prior restructuring costs | (104 | ) | (14 | ) | — | (118 | ) | |||||||||
Balance at December 29, 2012 | $ | 2,373 | $ | 793 | $ | 258 | $ | 3,424 | ||||||||
Restructuring charges | 109 | 224 | 253 | 586 | ||||||||||||
Cash payments | (2,315 | ) | (740 | ) | (225 | ) | (3,280 | ) | ||||||||
Adjustments to prior restructuring costs | (150 | ) | 91 | (139 | ) | (198 | ) | |||||||||
Balance at December 28, 2013 | $ | 17 | $ | 368 | $ | 147 | $ | 532 | ||||||||
Restructuring charges | — | 1 | 9 | 10 | ||||||||||||
Cash payments | (8 | ) | (341 | ) | (18 | ) | (367 | ) | ||||||||
Adjustments to prior restructuring costs | (9 | ) | 15 | 1 | 7 | |||||||||||
Balance at January 3, 2015 | $ | — | $ | 43 | $ | 139 | $ | 182 | ||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Schedule of Stock-Based Compensation Expense | Total stock-based compensation expense included in our Consolidated Statements of Operations was as follows: | ||||||||||||
Year Ended | |||||||||||||
(In thousands) | January 3, | December 28, | December 29, | ||||||||||
2015 | 2013 | 2012 | |||||||||||
Line item: | |||||||||||||
Cost of products sold | $ | 819 | $ | 627 | $ | 525 | |||||||
Research and development | 5,176 | 3,916 | 3,009 | ||||||||||
Selling, general and administrative | 6,807 | 4,979 | 3,976 | ||||||||||
Total stock-based compensation | $ | 12,802 | $ | 9,522 | $ | 7,510 | |||||||
Schedule of Share-based Payment Award, Stock Options and Employee Stock Purchase Plan, Valuation Assumptions | |||||||||||||
Year Ended | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
2015 | 2013 | 2012 | |||||||||||
Employee and Director Stock Options | |||||||||||||
Expected volatility | 45.4% to 50.4% | 51.4% to 54.3% | 58.1% to 59.5% | ||||||||||
Risk-free interest rate | 1.5%-1.7% | 0.7% to 1.0% | 0.6% to 1.0% | ||||||||||
Expected term | 4.1 to 4.7 years | 4.1 to 4.5 years | 4.1 to 4.5 years | ||||||||||
Dividend yield | —% | —% | —% | ||||||||||
Employee Stock Purchase Plan | |||||||||||||
Weighted average expected volatility | 38.70% | 48.00% | 50.00% | ||||||||||
Weighted average risk-free interest rate | 0.08% | 0.11% | 0.12% | ||||||||||
Expected term | 6 months | 6 months | 6 months | ||||||||||
Dividend yield | —% | —% | —% | ||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes our stock option activity and related information for the year ended January 3, 2015: | ||||||||||||
(Shares and aggregate intrinsic value in thousands) | Shares | Weighted | Weighted average | Aggregate | |||||||||
average | remaining | Intrinsic Value | |||||||||||
exercise price | contractual term (years) | ||||||||||||
Balance, December 28, 2013 | 10,441 | $ | 4.88 | ||||||||||
Granted | 1,932 | 7.16 | |||||||||||
Exercised | (2,486 | ) | 4.41 | ||||||||||
Forfeited or expired | (512 | ) | 5.41 | ||||||||||
Balance, January 3, 2015 | 9,375 | $ | 5.45 | ||||||||||
Vested and expected to vest at January 3, 2015 | 9,375 | $ | 5.45 | 4.56 | $ | 14,427 | |||||||
Exercisable, January 3, 2015 | 5,114 | $ | 5.01 | 3.66 | $ | 9,827 | |||||||
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes our RSU activity for the year ended January 3, 2015: | ||||||||||||
(Shares in thousands) | Shares | Weighted average grant date fair value | |||||||||||
Balance at December 28, 2013 | 2,190 | $ | 5.49 | ||||||||||
Granted | 1,316 | 7.5 | |||||||||||
Vested | (1,302 | ) | 5.61 | ||||||||||
Forfeited | (183 | ) | 6.18 | ||||||||||
Balance at January 3, 2015 | 2,021 | $ | 6.66 | ||||||||||
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Tables) | 12 Months Ended | |||||||||||||||||||
Jan. 03, 2015 | ||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||||
Valuation and Qualifying Accounts | The following table displays the activity related to changes in our valuation and qualifying accounts: | |||||||||||||||||||
(In thousands) | Balance at | Charged (Credit) to | Charged to | Write-offs | Balance at end | |||||||||||||||
beginning of | costs and | other accounts | net of | of period | ||||||||||||||||
period | expenses | recoveries | ||||||||||||||||||
Fiscal year ended January 3, 2015 | ||||||||||||||||||||
Allowance for deferred taxes | 150,528 | (9,958 | ) | 645 | — | 141,215 | ||||||||||||||
Allowance for doubtful accounts | 878 | — | — | (3 | ) | 875 | ||||||||||||||
Allowance for warranty expense | — | 81 | — | — | 81 | |||||||||||||||
151,406 | (9,877 | ) | 645 | (3 | ) | 142,171 | ||||||||||||||
Fiscal year ended December 28, 2013: | ||||||||||||||||||||
Allowance for deferred taxes | 149,209 | 1,636 | (317 | ) | — | 150,528 | ||||||||||||||
Allowance for doubtful accounts | 1,122 | 41 | — | (285 | ) | 878 | ||||||||||||||
Allowance for warranty expense | — | — | — | — | — | |||||||||||||||
150,331 | 1,677 | (317 | ) | (285 | ) | 151,406 | ||||||||||||||
Fiscal year ended December 29, 2012: | ||||||||||||||||||||
Allowance for deferred taxes | $ | 147,499 | $ | 1,652 | $ | 58 | $ | — | $ | 149,209 | ||||||||||
Allowance for doubtful accounts | 939 | 286 | — | (103 | ) | 1,122 | ||||||||||||||
Allowance for warranty expense | — | — | — | — | — | |||||||||||||||
$ | 148,438 | $ | 1,938 | $ | 58 | $ | (103 | ) | $ | 150,331 | ||||||||||
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 12 Months Ended | |||||||||||||||||||||
Jan. 03, 2015 | ||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||
Schedule of Revenue by Major Geographic Area | Our revenue by major geographic area based on ship-to location was as follows: | |||||||||||||||||||||
Year Ended | ||||||||||||||||||||||
(In thousands) | 3-Jan-15 | 28-Dec-13 | 29-Dec-12 | |||||||||||||||||||
United States: | $ | 30,848 | 8 | % | $ | 28,506 | 9 | % | 34,172 | 12 | % | |||||||||||
China | 159,155 | 43 | 148,018 | 45 | 113,585 | 41 | ||||||||||||||||
Europe | 59,041 | 16 | 47,459 | 14 | 48,202 | 17 | ||||||||||||||||
Japan | 31,207 | 9 | 26,538 | 8 | 35,696 | 13 | ||||||||||||||||
Taiwan | 6,691 | 2 | 6,708 | 2 | 8,276 | 3 | ||||||||||||||||
Other Asia | 69,778 | 19 | 64,425 | 19 | 32,254 | 12 | ||||||||||||||||
Other Americas | 9,407 | 3 | 10,871 | 3 | 7,071 | 2 | ||||||||||||||||
Total foreign revenue | 335,279 | 92 | 304,019 | 91 | 245,084 | 88 | ||||||||||||||||
Total revenue | $ | 366,127 | 100 | % | $ | 332,525 | 100 | % | $ | 279,256 | 100 | % | ||||||||||
Schedule of Revenue by Major Customers by Reporting Segments | Revenue attributable to resales of products by our primary distributors are as follows: | |||||||||||||||||||||
% of Total Revenue | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Arrow Electronics Inc. (including Nu Horizons Electronics) | 24 | % | 23 | % | 28 | % | ||||||||||||||||
Weikeng Group | 10 | 12 | 12 | |||||||||||||||||||
All others | 11 | 10 | 15 | |||||||||||||||||||
All sell-through distributors | 45 | % | 45 | % | 55 | % |
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information | A summary of the Company's consolidated quarterly results of operations is as follows: | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
(In thousands, except per share data) | Q4 * | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
Revenue | $ | 83,600 | $ | 86,570 | $ | 99,320 | $ | 96,637 | $ | 89,519 | $ | 87,154 | $ | 84,694 | $ | 71,158 | |||||||||||||||||
Gross margin | 46,263 | 50,811 | 54,975 | 54,138 | 48,603 | 46,376 | 45,110 | 38,155 | |||||||||||||||||||||||||
Restructuring charges | 1 | 2 | 3 | 11 | 131 | 85 | 19 | 153 | |||||||||||||||||||||||||
Net income (loss) | 15,419 | 9,406 | 11,771 | 11,984 | 6,547 | 8,844 | 5,040 | 1,890 | |||||||||||||||||||||||||
Basic net income per share | $ | 0.13 | $ | 0.08 | $ | 0.1 | $ | 0.1 | $ | 0.06 | $ | 0.08 | $ | 0.04 | $ | 0.02 | |||||||||||||||||
Diluted net income per share | $ | 0.13 | $ | 0.08 | $ | 0.1 | $ | 0.1 | $ | 0.06 | $ | 0.08 | $ | 0.04 | $ | 0.02 | |||||||||||||||||
* The fourth quarter of 2014 was a 14-week quarter as compared to the prior quarters in 2014 and 2013, which were based on our standard 13-week quarter. |
Nature_of_Operations_and_Signi3
Nature of Operations and Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Jan. 02, 2016 | |
Basis of Presentation and Significant Accounting Policies [Line Items] | ||||||||||||
Fiscal year duration | 371 days | 364 days | ||||||||||
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | ||||||||||||
Fair value adjustment through earnings on foreign exchange contracts not designated as hedges | $400,000 | $100,000 | ||||||||||
Risks and Uncertainties [Abstract] | ||||||||||||
Allowance for doubtful accounts | 900,000 | 900,000 | 900,000 | 900,000 | ||||||||
Deferred Revenue and Credits [Abstract] | ||||||||||||
Inventory valued at published list price and held by sell-through distributors with right of return | 50,854,000 | 36,056,000 | 50,854,000 | 36,056,000 | ||||||||
Allowance for distributor advances | -29,490,000 | -24,090,000 | -29,490,000 | -24,090,000 | ||||||||
Deferred cost of sales related to inventory held by sell-through distributors | -6,418,000 | -4,471,000 | -6,418,000 | -4,471,000 | ||||||||
Total Deferred income and allowances on sales to sell-through distributors | 14,946,000 | 7,495,000 | 14,946,000 | 7,495,000 | ||||||||
Resale of product by sell-through distributors as a percentage of total revenue | 45.00% | 45.00% | 55.00% | |||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||
Undistributed earnings of our Chinese subsidiary | 3,300,000 | 3,300,000 | ||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Net income (loss) | 15,419,000 | 9,406,000 | 11,771,000 | 11,984,000 | 6,547,000 | 8,844,000 | 5,040,000 | 1,890,000 | 48,580,000 | 22,321,000 | -29,606,000 | |
Shares used in basic Net income (loss) per share | 117,708,000 | 115,701,000 | 117,194,000 | |||||||||
Dilutive effect of stock options, RSUs and ESPP shares | 2,537,000 | 1,380,000 | 0 | |||||||||
Shares used in diluted Net income (loss) per share | 120,245,000 | 117,081,000 | 117,194,000 | |||||||||
Basic Net income (loss) per share | $0.13 | $0.08 | $0.10 | $0.10 | $0.06 | $0.08 | $0.04 | $0.02 | $0.41 | $0.19 | ($0.25) | |
Diluted Net income (loss) per share | $0.13 | $0.08 | $0.10 | $0.10 | $0.06 | $0.08 | $0.04 | $0.02 | $0.40 | $0.19 | ($0.25) | |
Stock options, RSU's and ESPP shares | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Aggregate antidilutive shares excluded from computation of diluted net (loss) income per share | 2,600,000 | 7,800,000 | 10,600,000 | |||||||||
Building | ||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||
Estimated useful lives of PP&E | 30 years | |||||||||||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||||||||||||
Deferred Revenue and Credits [Abstract] | ||||||||||||
Resale of product by sell-through distributors as a percentage of total revenue | 22.00% | |||||||||||
Sales Revenue | Sell-Through Distributors | ||||||||||||
Deferred Revenue and Credits [Abstract] | ||||||||||||
Resale of product by sell-through distributors as a percentage of total revenue | 45.00% | 45.00% | 55.00% | |||||||||
Minimum | Equipment and software | ||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||
Estimated useful lives of PP&E | 3 years | |||||||||||
Minimum | Tooling | ||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||
Estimated useful lives of PP&E | 1 year | |||||||||||
Maximum | ||||||||||||
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | ||||||||||||
Fair value adjustment through earnings on foreign exchange contracts not designated as hedges | 500,000 | 500,000 | ||||||||||
Maximum | Equipment and software | ||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||
Estimated useful lives of PP&E | 5 years | |||||||||||
Maximum | Tooling | ||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||
Estimated useful lives of PP&E | 3 years | |||||||||||
Not designated as hedges for accounting purposes | Foreign exchange contracts | ||||||||||||
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | ||||||||||||
Foreign exchange contracts outstanding | $4,200,000 | $2,300,000 | $4,200,000 | $2,300,000 | ||||||||
Next fiscal year - 2015 | ||||||||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | ||||||||||||
Fiscal year duration | 364 days | |||||||||||
Customer A [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||||||||||||
Deferred Revenue and Credits [Abstract] | ||||||||||||
Resale of product by sell-through distributors as a percentage of total revenue | 19.00% | |||||||||||
Customer B [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||||||||||||
Deferred Revenue and Credits [Abstract] | ||||||||||||
Resale of product by sell-through distributors as a percentage of total revenue | 12.00% |
Business_Combinations_and_Good1
Business Combinations and Goodwill (Details) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | |
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 31, 2011 | Jan. 26, 2015 | |
Business Acquisition [Line Items] | ||||
Goodwill | $44,808,000 | $44,808,000 | ||
Goodwill and intangible asset impairment | 0 | 0 | ||
SiliconBlue Technologies Ltd. | ||||
Business Acquisition [Line Items] | ||||
Consideration in cash | 63,200,000 | |||
Goodwill | 43,900,000 | |||
Intangible assets | 18,500,000 | |||
Subsequent Event [Member] | Silicon Image, Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, share price | $7.30 | |||
Business combination, consideration transferred | $602,050,000 |
Marketable_Securities_Composit
Marketable Securities Composition (Details) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 | Jun. 19, 2014 |
In Thousands, unless otherwise specified | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair value of marketable securities | $139,233 | $106,746 | |
Federally-insured or FFELP guaranteed student loan auction rate securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair value of marketable securities | 0 | 5,200 | |
Short-term marketable securities | Corporate and government bonds and notes and commercial paper | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Maturing within one year | 60,965 | 51,920 | |
Maturing between one and two years | 78,268 | 49,585 | |
Fair value of marketable securities | 139,233 | 101,505 | |
Long-term marketable securities | Federally-insured or FFELP guaranteed student loan auction rate securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Maturing in more than ten years | $0 | $5,241 |
Marketable_Securities_Auction_
Marketable Securities Auction Rate (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Jun. 19, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Fair Value | $139,233,000 | $106,746,000 | ||
Previously unrecognized gain relieved on sale of student loan auction rate securities | -170,000 | -337,000 | 78,000 | |
Total auction rate securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Fair Value | 5,241,000 | |||
Federally-insured or FFELP guaranteed student loan auction rate securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Par Value | 0 | 5,700,000 | 5,700,000 | |
Fair Value | 0 | 5,200,000 | ||
Sale proceeds from student loan auction rate securities sold at par | 5,500,000 | |||
Realized gain on sale of securities | 1,700,000 | |||
Previously unrecognized gain relieved on sale of student loan auction rate securities | $1,100,000 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of marketable securities | $139,233 | $106,746 |
Level 1 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Foreign currency forward exchange contracts, net | 0 | 0 |
Total fair value of financial instruments | 139,233 | 101,505 |
Level 1 | Short Term | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of marketable securities | 139,233 | 101,505 |
Level 1 | Long Term | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of marketable securities | 0 | 0 |
Level 2 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Foreign currency forward exchange contracts, net | 414 | 48 |
Total fair value of financial instruments | 414 | 48 |
Level 2 | Short Term | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of marketable securities | 0 | 0 |
Level 2 | Long Term | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of marketable securities | 0 | 0 |
Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Foreign currency forward exchange contracts, net | 0 | 0 |
Total fair value of financial instruments | 0 | 5,241 |
Level 3 | Short Term | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of marketable securities | 0 | 0 |
Level 3 | Long Term | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of marketable securities | 0 | 5,241 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Foreign currency forward exchange contracts, net | 414 | 48 |
Total fair value of financial instruments | 139,647 | 106,794 |
Estimate of Fair Value Measurement [Member] | Short Term | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of marketable securities | 139,233 | 101,505 |
Estimate of Fair Value Measurement [Member] | Long Term | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of marketable securities | $0 | $5,241 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments Unobservable Inputs (Details) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 31, 2011 | |
Long Term | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Realized gain on sale of securities | $1,700,000 | ||
Level 1 | Short Term | Maximum | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Unrealized loss | 400,000 | -300,000 | |
Level 3 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning fair value of Long-term marketable securities | 5,241,000 | 4,717,000 | |
Fair value of securities sold or redeemed | -5,488,000 | 0 | |
Temporary fluctuations in fair value | 0 | 524,000 | |
Realized gain from increase in fair value | 247,000 | 0 | |
Ending fair value of Long-term marketable securities | $0 | $5,241,000 | $4,717,000 |
Inventories_Details
Inventories (Details) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Work in progress | $49,554 | $32,111 |
Finished goods | 15,371 | 14,111 |
Total inventories | $64,925 | $46,222 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Nov. 30, 2014 | |
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $181,874,000 | $209,608,000 | ||
Accumulated depreciation and amortization | -154,078,000 | -167,889,000 | ||
Property and equipment, net | 27,796,000 | 41,719,000 | ||
Proceeds from sale of land and building | 14,625,000 | 0 | 0 | |
Depreciation expense | 11,400,000 | 11,200,000 | 13,600,000 | |
Land | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 0 | 1,456,000 | ||
Buildings | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 3,516,000 | 27,827,000 | ||
Computer and test equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 158,117,000 | 154,508,000 | ||
Office furniture and equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 7,028,000 | 9,122,000 | ||
Leasehold and building improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 13,213,000 | 16,695,000 | ||
Land and Building | ||||
Property, Plant and Equipment [Line Items] | ||||
Gain (Loss) on Disposition of Property Plant Equipment | 1,600,000 | |||
Property and equipment, gross | 30,900,000 | |||
Accumulated depreciation and amortization | -17,900,000 | |||
Proceeds from sale of land and building | $14,600,000 | |||
Lease term | 8 years |
Intangible_Assets_and_Acquisit2
Intangible Assets and Acquisition Related Charges (Details) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Finite-Lived Intangible Assets [Line Items] | |||
Acquisition related charges, including amortization of intangible assets | $2,948,000 | $2,960,000 | $4,178,000 |
Acquisition related charges | 100,000 | 100,000 | 1,200,000 |
SiliconBlue Technologies Ltd. | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Period (in years) | 6 years 3 months 18 days | ||
Gross | 18,500,000 | ||
Accumulated Amortization | -8,963,000 | ||
Intangible assets, net of amortization | 9,537,000 | ||
2015 | 2,900,000 | ||
2016 | 2,900,000 | ||
2017 | 2,200,000 | ||
2018 | 1,500,000 | ||
SiliconBlue Technologies Ltd. | Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Period (in years) | 7 years | ||
Gross | 10,700,000 | ||
Accumulated Amortization | -4,649,000 | ||
Intangible assets, net of amortization | 6,051,000 | ||
SiliconBlue Technologies Ltd. | Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Period (in years) | 5 years 6 months | ||
Gross | 7,800,000 | ||
Accumulated Amortization | -4,314,000 | ||
Intangible assets, net of amortization | $3,486,000 |
Lease_Obligations_Details
Lease Obligations (Details) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Leases [Abstract] | |||
Rental expense under operating leases | $4,500,000 | $4,600,000 | $3,700,000 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2015 | 4,125,000 | ||
2016 | 3,702,000 | ||
2017 | 3,440,000 | ||
2018 | 3,449,000 | ||
2019 | 3,534,000 | ||
Thereafter | 22,708,000 | ||
Total future minimum lease commitments | $40,958,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Results of Operations, Income before Income Taxes [Abstract] | |||
Domestic | $6,292 | $6,293 | $51,859 |
Foreign | 36,649 | 20,193 | -60,720 |
Income (loss) before taxes | 42,941 | 26,486 | -8,861 |
Current: | |||
Federal | 329 | 251 | -344 |
State | 5 | -527 | 36 |
Foreign | 1,944 | 1,616 | 1,498 |
Current income tax (provision) benefit | 2,278 | 1,340 | 1,190 |
Deferred: | |||
Federal | -7,416 | 2,549 | 18,000 |
State | -513 | 342 | 1,487 |
Foreign | 12 | -66 | 68 |
Deferred income tax (provision) benefit | -7,917 | 2,825 | 19,555 |
Income tax (benefit) expense | -5,639 | 4,165 | 20,745 |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Statutory federal rate | 35.00% | 35.00% | 35.00% |
State taxes, net | 1.00% | 2.00% | -2.00% |
Research and development credits | -9.00% | -11.00% | -1.00% |
Stock compensation | 1.00% | 3.00% | -3.00% |
Foreign rate differential | -25.00% | -20.00% | -252.00% |
Foreign dividends | 1.00% | 0.00% | 3.00% |
Capital loss expiration | 7.00% | 2.00% | 0.00% |
Valuation allowance | -23.00% | 6.00% | -19.00% |
Change in uncertain tax benefit accrual | 1.00% | -1.00% | 3.00% |
Tax rate change | -4.00% | -1.00% | 0.00% |
Other | 2.00% | 1.00% | 2.00% |
Effective income tax rate | -13.00% | 16.00% | -234.00% |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | $67 | $367 | $392 |
Income_Taxes_Discussion_of_Val
Income Taxes (Discussion of Valuation Allowance and Net Deferred Tax Assets) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2011 | Jan. 03, 2015 | Dec. 28, 2013 | |
Valuation Allowance [Line Items] | |||
Tax provision related to the intercompany sale of inventory | $13,700,000 | ||
Resulting tax benefit from realization of the benefit of a portion of remaining deferred tax assets | 11,500,000 | ||
Resulting net deferred tax asset | 21,300,000 | ||
Increase (decrease) in valuation allowance | 9,700,000 | ||
Deferred tax assets: | |||
Accrued expenses and reserves | 5,416,000 | 4,959,000 | |
Stock-based and deferred compensation | 5,530,000 | 4,986,000 | |
Intangible assets | 9,841,000 | 8,456,000 | |
Fixed assets | 983,000 | 828,000 | |
Net operating loss carry forwards | 96,543,000 | 101,144,000 | |
Tax credit carry forwards | 40,588,000 | 36,644,000 | |
Capital loss carry forwards | 4,142,000 | 6,698,000 | |
Unrealized loss on securities | 0 | 758,000 | |
Other | 220,000 | 143,000 | |
Gross deferred tax assets | 163,263,000 | 164,616,000 | |
Less: valuation allowance | -141,215,000 | -150,528,000 | |
Net deferred tax assets | 22,048,000 | 14,088,000 | |
Deferred tax liabilities | |||
Other | 717,000 | 969,000 | |
Total deferred tax liabilities | 717,000 | 969,000 | |
Net deferred tax assets | 21,331,000 | 13,119,000 | |
Do not expire | |||
Valuation Allowance [Line Items] | |||
Tax credit carryforwards | 24,500,000 | ||
Prepaid expenses and other current assets | |||
Valuation Allowance [Line Items] | |||
Net deferred tax assets, current | 1,200,000 | 1,400,000 | |
Federal | |||
Valuation Allowance [Line Items] | |||
Operating loss carryforwards | 301,800,000 | ||
Tax credit carryforwards | 17,700,000 | ||
State | |||
Valuation Allowance [Line Items] | |||
Operating loss carryforwards | 141,300,000 | ||
Tax credit carryforwards | $26,300,000 |
Income_Taxes_Discussion_of_Unr
Income Taxes (Discussion of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Income Tax Contingency [Line Items] | |||
Undistributed earnings of our Chinese subsidiary | $3,300,000 | ||
Unrecognized tax benefits associated with uncertain tax positions | 18,673,000 | 22,643,000 | 21,680,000 |
Unrecognized tax benefits associated with uncertain tax positions that, if recognized, would affect the effective tax rate | 17,400,000 | ||
Interest and penalties associated with unrecognized tax benefits | 200,000 | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | 22,643,000 | 21,680,000 | 21,552,000 |
Additions based on tax positions related to the current year | 770,000 | 1,600,000 | 384,000 |
Additions based on tax positions of prior years | 0 | 68,000 | 192,000 |
Reduction for tax positions of prior years | -4,673,000 | 0 | -26,000 |
Settlements | 0 | -338,000 | -30,000 |
Reduction as a result of lapse of applicable statute of limitations | -67,000 | -367,000 | -392,000 |
Ending balance | 18,673,000 | 22,643,000 | 21,680,000 |
Income Tax Examination, Estimate of Possible Loss | 14,100,000 | ||
Unrecognized tax benefits, remaining, not subject to examination, lapse of applicable statute of limitations | 67,000 | ||
Expiration of statutes of limitations | Foreign tax filings | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Amount of unrecognized tax benefits that could significantly change during the next twelve months | 14,200,000 | ||
Expiration of statutes of limitations | Foreign tax filings | Maximum | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Amount of associated interest and penalties that could significantly change within the next twelve months | $100,000 |
Restructuring_Details
Restructuring (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 29, 2012 | Jun. 30, 2012 | Oct. 31, 2012 |
employee | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Restructuring charges | $1 | $2 | $3 | $11 | $131 | $85 | $19 | $153 | $17 | $388 | $6,018 | |||
Restructuring Reserve [Roll Forward] | ||||||||||||||
Beginning Balance | 532 | 3,424 | 532 | 3,424 | 1,582 | 1,582 | ||||||||
Restructuring charges | 10 | 586 | 6,136 | |||||||||||
Cash payments | -367 | -3,280 | -4,176 | |||||||||||
Adjustments to prior restructuring costs | 7 | -198 | -118 | |||||||||||
Ending Balance | 182 | 532 | 182 | 532 | 3,424 | 3,424 | ||||||||
Severance and related | ||||||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||||||
Beginning Balance | 17 | 2,373 | 17 | 2,373 | 1,556 | 1,556 | ||||||||
Restructuring charges | 0 | 109 | 4,277 | |||||||||||
Cash payments | -8 | -2,315 | -3,356 | |||||||||||
Adjustments to prior restructuring costs | -9 | -150 | -104 | |||||||||||
Ending Balance | 0 | 17 | 0 | 17 | 2,373 | 2,373 | ||||||||
Lease termination | ||||||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||||||
Beginning Balance | 368 | 793 | 368 | 793 | 26 | 26 | ||||||||
Restructuring charges | 1 | 224 | 1,083 | |||||||||||
Cash payments | -341 | -740 | -302 | |||||||||||
Adjustments to prior restructuring costs | 15 | 91 | -14 | |||||||||||
Ending Balance | 43 | 368 | 43 | 368 | 793 | 793 | ||||||||
Other | ||||||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||||||
Beginning Balance | 147 | 258 | 147 | 258 | 0 | 0 | ||||||||
Restructuring charges | 9 | 253 | 776 | |||||||||||
Cash payments | -18 | -225 | -518 | |||||||||||
Adjustments to prior restructuring costs | 1 | -139 | 0 | |||||||||||
Ending Balance | 139 | 147 | 139 | 147 | 258 | 258 | ||||||||
2012 Restructuring Plan | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Approximate reduction in headcount | 110 | |||||||||||||
Restructuring charges | 5,400 | |||||||||||||
2011 Restructuring Plan | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Restructuring charges | $700 |
Common_Stock_Repurchase_Progra1
Common Stock Repurchase Program (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Mar. 03, 2014 | Feb. 27, 2013 |
Stock repurchase program authorized on March 3, 2014 | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $20 | |||
Number of shares repurchased | 1.9 | |||
Value of shares repurchased | 13.1 | |||
Remaining amount under the approved program | 6.9 | |||
Stock repurchase program authorized on February 27, 2013 | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | 20 | |||
Number of shares repurchased | 0.8 | |||
Value of shares repurchased | 3.7 | |||
Remaining amount under the approved program | $16.30 |
Stockholders_Equity_Employee_a
Stockholders' Equity (Employee and Director Stock Options, Restricted Stock and ESPP) (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | 31-May-12 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $12,802 | $9,522 | $7,510 | |
2012 ESPP | ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 2,500,000 | 3,000,000 | ||
Percentage of employee's compensation maximum for employee share purchases | 10.00% | |||
Purchase price of shares as percentage of fair market value | 85.00% | |||
2012 ESPP | ESPP | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 300 | 200 | 100 | |
2007 ESPP | ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 5,500,000 | |||
Purchase price of shares as percentage of fair market value | 85.00% | |||
2007 ESPP | ESPP | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $100 |
Stockholders_Equity_Total_Stoc
Stockholders' Equity (Total Stock-based Compensation Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | $12,802 | $9,522 | $7,510 |
Cost of products sold | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 819 | 627 | 525 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 5,176 | 3,916 | 3,009 |
Selling, general and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | $6,807 | $4,979 | $3,976 |
Stockholders_Equity_Employee_a1
Stockholders' Equity (Employee and Director Stock Options, Restricted Stock and ESPP) (Details 2) (USD $) | 12 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Jun. 28, 2014 | Mar. 29, 2014 | Sep. 27, 2014 | |
population | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of employee populations for fair value assumptions | 2 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Total unrecognized compensation cost related to unvested employee and director stock options | $10,000,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Beginning balance | 10,441,000 | 10,441,000 | 10,441,000 | |||
Granted | 1,932,000 | |||||
Exercised | -2,486,000 | |||||
Forfeited or expired | -512,000 | |||||
Ending balance | 9,375,000 | 10,441,000 | ||||
Vested and expected to vest at end of period, Shares | 9,375,000 | |||||
Exercisable at end of period, Shares | 5,114,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||||
Beginning balance | $4.88 | $4.88 | $4.88 | |||
Granted | $7.16 | |||||
Exercised | $4.41 | |||||
Forfeited or expired | $5.41 | |||||
Ending balance | $5.45 | $4.88 | ||||
Vested and expected to vest at end of period, Weighted average exercise price | $5.45 | |||||
Exercisable at end of period, Weighted average exercise price | $5.01 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | ||||||
Vested and expected to vest at end of period, Weighted average remaining contractual term | 4 years 204 days | |||||
Vested and expected to vest at end of period, aggregate intrinsic value | 14,427,000 | |||||
Exercisable at end of period, Weighted average remaining contractual term | 3 years 241 days | |||||
Exercisable at end of period, aggregate intrinsic value | 9,827,000 | |||||
Total intrinsic value of options exercised | 7,800,000 | 2,500,000 | 3,400,000 | |||
Total fair value of options and RSU's vested and expensed | 12,800,000 | 9,300,000 | 7,400,000 | |||
Grant date weighted average fair values based on fair value assumptions, options | $2.93 | $2.10 | $2.74 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Compensation expense | 12,802,000 | 9,522,000 | 7,510,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||||
Shares of common stock available for future grants | 9,600,000 | |||||
Shares of common stock available for future purchases under ESPP | 2,500,000 | |||||
Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Expected volatility, percent, minimum | 45.40% | 51.40% | 58.10% | |||
Expected volatility, percent, maximum | 50.40% | 54.30% | 59.50% | |||
Risk-free interest rate, percent, minimum | 1.50% | 0.70% | 0.60% | |||
Risk-free interest rate, percent, maximum | 1.70% | 1.00% | 1.00% | |||
Dividend yield | 0.00% | 0.00% | 0.00% | |||
Weighted average period for recognition | 4 years 7 months | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||||
Shares of common stock available for future grants | 9,600,000 | |||||
Stock options | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Expected term | 4 years 1 month 6 days | 4 years 1 month 6 days | 4 years 1 month 6 days | |||
Stock options | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Expected term | 4 years 8 months 12 days | 4 years 6 months | 4 years 6 months | |||
ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Expected term | 6 months | 6 months | 6 months | |||
Dividend yield | 0.00% | 0.00% | 0.00% | |||
Weighted average expected volatility rate (percent) | 38.70% | 48.00% | 50.00% | |||
Weighted average risk-free interest rate (percent) | 0.08% | 0.11% | 0.12% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | ||||||
Grant date weighted average fair values based on fair assumptions, non-options | $1.73 | $1.29 | $1.35 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||||
Granted, Weighted average grant date fair value | $1.73 | $1.29 | $1.35 | |||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | ||||||
Grant date weighted average fair values based on fair assumptions, non-options | $7.50 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Balance at the beginning of period, Shares | 2,190,000 | 2,190,000 | 2,190,000 | |||
Granted, Shares | 1,316,000 | 98,592 | 700,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Number of Tranches | 2 | |||||
Vested, Shares | -1,302,000 | -49,296 | ||||
Forfeited, Shares | -183,000 | |||||
Balance at the end of period, Shares | 2,021,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||||
Balance at the beginning of period, Weighted average grant date fair value | $5.49 | $5.49 | $5.49 | |||
Granted, Weighted average grant date fair value | $7.50 | |||||
Vested, Weighted average grant date fair value | $5.61 | |||||
Forfeited, Weighted average grant date fair value | $6.18 | |||||
Balance at the end of period, Weighted average grant date fair value | $6.66 | |||||
Unrecognized compensation expense related to unvested RSU's | 11,100,000 | |||||
Q1 2014 Grant [Member] | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Compensation expense | 500,000 | |||||
Q2 2014 Grant [Member] | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Compensation expense | 200,000 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 |
Compensation Related Costs [Abstract] | ||
Employer matching contribution to a 401(k) plan | $0 | $0.80 |
2013 Plan | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Charge related to incentive compensation | 11.3 | |
2014 Plan | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Charge related to incentive compensation | $11.60 |
Valuation_and_Qualifying_Accou2
Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation Allowances and Reserves, Balance | $151,406 | $150,331 | $148,438 |
Valuation Allowances and Reserves, Charged (Credit) to Cost and Expense | -9,877 | 1,677 | 1,938 |
Valuation Allowances and Reserves, Charged to Other Accounts | 645 | -317 | 58 |
Valuation Allowances and Reserves, Write-offs, Net Of Recoveries | -3 | -285 | -103 |
Valuation Allowances and Reserves, Balance | 142,171 | 151,406 | 150,331 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation Allowances and Reserves, Balance | 150,528 | 149,209 | 147,499 |
Valuation Allowances and Reserves, Charged (Credit) to Cost and Expense | -9,958 | 1,636 | 1,652 |
Valuation Allowances and Reserves, Charged to Other Accounts | 645 | -317 | 58 |
Valuation Allowances and Reserves, Write-offs, Net Of Recoveries | 0 | 0 | 0 |
Valuation Allowances and Reserves, Balance | 141,215 | 150,528 | 149,209 |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation Allowances and Reserves, Balance | 878 | 1,122 | 939 |
Valuation Allowances and Reserves, Charged (Credit) to Cost and Expense | 0 | 41 | 286 |
Valuation Allowances and Reserves, Charged to Other Accounts | 0 | 0 | 0 |
Valuation Allowances and Reserves, Write-offs, Net Of Recoveries | -3 | -285 | -103 |
Valuation Allowances and Reserves, Balance | 875 | 878 | 1,122 |
Warranty Reserves [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation Allowances and Reserves, Balance | 0 | 0 | 0 |
Valuation Allowances and Reserves, Charged (Credit) to Cost and Expense | 81 | 0 | 0 |
Valuation Allowances and Reserves, Charged to Other Accounts | 0 | 0 | 0 |
Valuation Allowances and Reserves, Write-offs, Net Of Recoveries | 0 | 0 | 0 |
Valuation Allowances and Reserves, Balance | $81 | $0 | $0 |
Segment_and_Geographic_Informa2
Segment and Geographic Information (Revenue by Major Geographic Area) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
segment | |||
Segment Reporting [Abstract] | |||
Number of industry segments | 1 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $366,127 | $332,525 | $279,256 |
Total revenue, percent | 100.00% | 100.00% | 100.00% |
United States: | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 30,848 | 28,506 | 34,172 |
Total revenue, percent | 8.00% | 9.00% | 12.00% |
Total foreign revenue | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 335,279 | 304,019 | 245,084 |
Total revenue, percent | 92.00% | 91.00% | 88.00% |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 159,155 | 148,018 | 113,585 |
Total revenue, percent | 43.00% | 45.00% | 41.00% |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 59,041 | 47,459 | 48,202 |
Total revenue, percent | 16.00% | 14.00% | 17.00% |
Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 31,207 | 26,538 | 35,696 |
Total revenue, percent | 9.00% | 8.00% | 13.00% |
Taiwan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 6,691 | 6,708 | 8,276 |
Total revenue, percent | 2.00% | 2.00% | 3.00% |
Other Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 69,778 | 64,425 | 32,254 |
Total revenue, percent | 19.00% | 19.00% | 12.00% |
Other Americas | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $9,407 | $10,871 | $7,071 |
Total revenue, percent | 3.00% | 3.00% | 2.00% |
Segment_and_Geographic_Informa3
Segment and Geographic Information (Revenue by Primary Distributor) (Details) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Revenue, Major Customer [Line Items] | |||
Revenue from all sell-through distributors | 45.00% | 45.00% | 55.00% |
Arrow Electronics Inc. (including Nu Horizons Electronics) | |||
Revenue, Major Customer [Line Items] | |||
Revenue from all sell-through distributors | 24.00% | 23.00% | 28.00% |
Weikeng Group | |||
Revenue, Major Customer [Line Items] | |||
Revenue from all sell-through distributors | 10.00% | 12.00% | 12.00% |
All others | |||
Revenue, Major Customer [Line Items] | |||
Revenue from all sell-through distributors | 11.00% | 10.00% | 15.00% |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $83,600 | $86,570 | $99,320 | $96,637 | $89,519 | $87,154 | $84,694 | $71,158 | $366,127 | $332,525 | $279,256 |
Gross margin | 46,263 | 50,811 | 54,975 | 54,138 | 48,603 | 46,376 | 45,110 | 38,155 | |||
Restructuring charges | 1 | 2 | 3 | 11 | 131 | 85 | 19 | 153 | 17 | 388 | 6,018 |
Net income (loss) | $15,419 | $9,406 | $11,771 | $11,984 | $6,547 | $8,844 | $5,040 | $1,890 | $48,580 | $22,321 | ($29,606) |
Basic net (loss) income per share (in dollars per share) | $0.13 | $0.08 | $0.10 | $0.10 | $0.06 | $0.08 | $0.04 | $0.02 | $0.41 | $0.19 | ($0.25) |
Diluted net (loss) income per share (in dollars per share) | $0.13 | $0.08 | $0.10 | $0.10 | $0.06 | $0.08 | $0.04 | $0.02 | $0.40 | $0.19 | ($0.25) |