Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 02, 2016 | Feb. 26, 2016 | Jul. 04, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | LATTICE SEMICONDUCTOR CORP | ||
Entity Central Index Key | 855,658 | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 2, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --01-03 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding (actual number) | 118,994,539 | ||
Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Filer | No | ||
Entity Public Float | $ 567,750,755 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 02, 2016 | Jan. 03, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 84,606 | $ 115,611 |
Short-term marketable securities | 17,968 | 139,233 |
Accounts receivable, net of allowance for doubtful accounts | 88,471 | 62,372 |
Inventories | 75,896 | 64,925 |
Prepaid expenses and other current assets | 18,922 | 16,281 |
Total current assets | 285,863 | 398,422 |
Property and equipment, less accumulated depreciation of $118,943 at January 2, 2016 and $154,078 at January 3, 2015 | 51,852 | 27,796 |
Intangible assets, net of amortization | 162,583 | 9,537 |
Goodwill | 267,549 | 44,808 |
Deferred income taxes | 578 | 20,105 |
Other long-term assets | 17,495 | 9,862 |
Total assets | 785,920 | 510,530 |
Current liabilities: | ||
Accounts payable and accrued expenses (includes restructuring) | 74,298 | 32,171 |
Accrued payroll obligations | 9,463 | 13,629 |
Current portion of long-term debt | 7,557 | 0 |
Deferred income and allowances on sales to sell-through distributors | 17,866 | 14,946 |
Deferred licensing and services revenue | 1,993 | 0 |
Total current liabilities | 111,177 | 60,746 |
Long-term debt | 330,870 | 0 |
Other long-term liabilities | 38,353 | 8,809 |
Total liabilities | $ 480,400 | $ 69,555 |
Commitments and contingencies | ||
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; 118,651,000 shares issued and outstanding as of January 2, 2016 and 117,288,000 shares issued and outstanding as of January 3, 2015 | 1,187 | 1,173 |
Additional paid-in capital | 660,089 | 635,299 |
Accumulated deficit | (352,846) | (193,613) |
Accumulated other comprehensive loss | (2,910) | (1,884) |
Total stockholders' equity | 305,520 | 440,975 |
Total liabilities and stockholders' equity | $ 785,920 | $ 510,530 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parentheticals - USD ($) $ in Thousands | Jan. 02, 2016 | Jan. 03, 2015 |
Statement of Financial Position [Abstract] | ||
Accumulated Depreciation | $ 118,943 | $ 154,078 |
Preferred stock, par value per share (in dollars 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 (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 118,651,000 | 117,288,000 |
Common stock, shares outstanding | 118,651,000 | 117,288,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Income Statement [Abstract] | |||
Product | $ 369,200 | $ 366,127 | $ 332,525 |
Licensing and services | 36,766 | 0 | 0 |
Total revenue | 405,966 | 366,127 | 332,525 |
Costs and expenses: | |||
Cost of product revenue | 184,914 | 159,940 | 154,281 |
Cost of licensing and services revenue | 1,143 | 0 | 0 |
Research and development | 136,868 | 88,079 | 80,966 |
Selling, general, and administrative | 97,349 | 73,527 | 67,144 |
Acquisition related charges | 22,450 | 0 | 0 |
Restructuring charges | 19,239 | 17 | 388 |
Amortization of acquired intangible assets | 29,580 | 2,948 | 2,960 |
Impairment of goodwill and intangible assets | 21,655 | 0 | 0 |
Costs and expenses | 513,198 | 324,511 | 305,739 |
(Loss) income from operations | (107,232) | 41,616 | 26,786 |
Interest expense | (18,389) | (172) | (152) |
Other (expense) income, net | (832) | 1,497 | (148) |
(Loss) income before income taxes and equity in net loss of an unconsolidated affiliate | (126,453) | 42,941 | 26,486 |
Income tax expense (benefit) | 32,540 | (5,639) | 4,165 |
Equity in net loss of an unconsolidated affiliate, net of tax | (492) | 0 | 0 |
Net (loss) income | (159,485) | 48,580 | 22,321 |
Net loss attributable to noncontrolling interest | 252 | 0 | 0 |
Net (loss) income attributable to stockholders | $ (159,233) | $ 48,580 | $ 22,321 |
Net (loss) income per share | |||
Basic net (loss) income per share (in dollars per share) | $ (1.36) | $ 0.41 | $ 0.19 |
Diluted net (loss) income per share (in dollars per share) | $ (1.36) | $ 0.40 | $ 0.19 |
Shares used in per share calculations: | |||
Basic (in shares) | 117,387 | 117,708 | 115,701 |
Diluted (in shares) | 117,387 | 120,245 | 117,081 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) Statement - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ (159,485) | $ 48,580 | $ 22,321 |
Unrealized (loss) gain related to marketable securities, net | (69) | (373) | 284 |
Less: Reclassification adjustment for losses included in other (expense) income, net | 442 | 170 | 337 |
Realized gain on sale of auction rate securities, previously unrealized, net of tax | 0 | (1,147) | 0 |
Translation adjustment loss, net of tax | (1,243) | (330) | (505) |
Defined benefit pension, net of actuarial losses | (156) | (59) | 0 |
Comprehensive (loss) income | (160,511) | 46,841 | 22,437 |
Less: Comprehensive loss attributable to noncontrolling interest | 252 | 0 | 0 |
Comprehensive (loss) income attributable to stockholders | $ (160,259) | $ 46,841 | $ 22,437 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock | Paid-in capital | Treasury stock | Accumulated deficit | Accumulated other comprehensive loss |
Balances (shares) at Dec. 29, 2012 | 115,500,000 | |||||
Balances at Dec. 29, 2012 | $ 357,550 | $ 1,155 | $ 621,170 | $ 0 | $ (264,514) | $ (261) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income attributable to stockholders | 22,321 | 22,321 | ||||
Unrealized gain related to marketable securities, net of tax | 284 | 284 | ||||
Recognized loss on redemption of marketable securities, previously unrealized | 337 | 337 | ||||
Realized gain on sale of auction rate securities, previously unrealized, net of tax | 0 | |||||
Translation adjustments, net of tax | (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 | (6,161) | (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 | ||||
Defined benefit pension, net of actuarial losses | 0 | |||||
Balances (shares) at Dec. 28, 2013 | 115,671,000 | |||||
Balances at Dec. 28, 2013 | 385,680 | $ 1,157 | 626,861 | 0 | (242,193) | (145) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income attributable to stockholders | 48,580 | 48,580 | ||||
Unrealized gain related to marketable securities, net of tax | (373) | (373) | ||||
Recognized loss on redemption of marketable securities, previously unrealized | 170 | 170 | ||||
Realized gain on sale of auction rate securities, previously unrealized, net of tax | (1,147) | (1,147) | ||||
Translation adjustments, net of tax | (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 | (13,089) | (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 | ||||
Defined benefit pension, net of actuarial losses | $ (59) | (59) | ||||
Balances (shares) at Jan. 03, 2015 | 117,288,000 | 117,288,000 | ||||
Balances at Jan. 03, 2015 | $ 440,975 | $ 1,173 | 635,299 | 0 | (193,613) | (1,884) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income attributable to stockholders | (159,233) | (159,233) | ||||
Unrealized gain related to marketable securities, net of tax | (69) | (69) | ||||
Recognized loss on redemption of marketable securities, previously unrealized | 442 | 442 | ||||
Realized gain on sale of auction rate securities, previously unrealized, net of tax | 0 | |||||
Translation adjustments, net of tax | (1,243) | (1,243) | ||||
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs (net of taxes) (shares) | 2,415,000 | |||||
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax | 2,186 | $ 25 | 2,161 | |||
Stock repurchase | (6,970) | (6,970) | ||||
Retirement of treasury stock (shares) | (1,052,000) | |||||
Retirement of treasury stock | 0 | $ (11) | (6,959) | 6,970 | ||
Stock-based compensation expense related to options, ESPP and RSUs | 18,396 | 18,396 | ||||
Fair value of partially vested stock options and RSUs assumed in acquisition | 5,139 | 5,139 | ||||
Defined benefit pension, net of actuarial losses | (156) | (156) | ||||
Redemption of noncontrolling interest | $ 6,053 | 6,053 | ||||
Balances (shares) at Jan. 02, 2016 | 118,651,000 | 118,651,000 | ||||
Balances at Jan. 02, 2016 | $ 305,520 | $ 1,187 | $ 660,089 | $ 0 | $ (352,846) | $ (2,910) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Statement of Cash Flows [Abstract] | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ (159,485) | $ 48,580 | $ 22,321 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 60,808 | 22,248 | 20,807 |
Impairment of goodwill and intangible assets | 21,655 | 0 | 0 |
Amortization of debt issuance costs and discount | 2,835 | 0 | 0 |
Change in deferred income tax provision | 21,367 | (7,222) | 2,358 |
Loss (gain) on sale or maturity of marketable securities | 333 | (1,698) | 0 |
Stock-based compensation expense | 18,396 | 12,802 | 9,522 |
Equity in net loss of an unconsolidated affiliate | 492 | 0 | 0 |
Changes in assets and liabilities: | |||
Accounts receivable, net | 4,578 | (12,287) | (3,138) |
Inventories | 9,868 | (18,703) | (2,028) |
Prepaid expenses and other assets | (6,710) | (3,200) | (1,339) |
Accounts payable and accrued expenses (includes restructuring) | 6,553 | (7,819) | 3,549 |
Accrued payroll obligations | (10,202) | (30) | 7,510 |
Income taxes payable | 1,749 | 0 | 0 |
Deferred income and allowances on sales to sell-through distributors | 2,920 | 7,451 | (3,058) |
Deferred licensing and services revenue | 1,958 | 0 | 0 |
Net cash (used in) provided by operating activities | (22,885) | 40,122 | 56,504 |
Cash flows from investing activities: | |||
Proceeds from sales or maturities of marketable securities | 142,956 | 101,861 | 67,318 |
Purchase of marketable securities, net | (15,982) | (139,792) | (103,861) |
Proceeds from sale of auction rate securities | 0 | 5,488 | 0 |
Cash paid for business acquisition, net of cash acquired | (431,068) | 0 | 0 |
Proceeds from sale of land and building | 0 | 14,625 | 0 |
Capital expenditures, net | (18,209) | (10,267) | (12,500) |
Cash paid for a non-marketable equity-method investment | (5,000) | 0 | 0 |
Cash paid for software licenses | (9,515) | (6,059) | (7,353) |
Net cash used in investing activities | (336,818) | (34,144) | (56,396) |
Cash flows from financing activities: | |||
Net share settlement upon issuance of restricted stock units | (3,493) | (3,427) | (744) |
Purchase of treasury stock | (6,970) | (13,089) | (6,161) |
Net proceeds from issuance of common stock | 5,679 | 12,168 | 3,076 |
Net proceeds from issuance of long-term debt | 346,500 | 0 | 0 |
Cash paid for debt issuance costs | (8,283) | 0 | 0 |
Repayment of debt | (2,625) | 0 | 0 |
Cash paid to redeem noncontrolling interest | (867) | 0 | 0 |
Net cash provided by (used in) financing activities | 329,941 | (4,348) | (3,829) |
Effect of exchange rate change on cash | (1,243) | (329) | (505) |
Net (decrease) increase in cash and cash equivalents | (31,005) | 1,301 | (4,226) |
Beginning cash and cash equivalents | 115,611 | 114,310 | 118,536 |
Ending cash and cash equivalents | 84,606 | 115,611 | 114,310 |
Supplemental disclosures of non-cash investing and financing activities: | |||
Change in unrealized (loss) gain related to marketable securities, net of tax, included in Accumulated other comprehensive loss | (69) | (373) | 284 |
Income taxes paid, net of refunds | 8,339 | 1,599 | 1,370 |
Interest paid | 11,071 | 0 | 0 |
Accrued purchases of plant and equipment | 799 | (34) | 122 |
Transfer of residual temporary equity to additional paid-in capital on redemption of noncontrolling interest | $ 6,773 | $ 0 | $ 0 |
Nature of Operations and Signif
Nature of Operations and Significant Accounting Policies | 12 Months Ended |
Jan. 02, 2016 | |
Accounting Policies [Abstract] | |
Nature of Operations and Significant Accounting Policies | Nature of Operations and Significant Accounting Policies Nature of Operations Lattice Semiconductor (“Lattice,” the “Company,” “we,” “us,” or “our”) is a Delaware company that engages in smart connectivity solutions, providing intellectual property and low-power, small form-factor devices that enable global customers to quickly deliver innovative and differentiated cost and power efficient products. The Company's broad end-market exposure extends from consumer electronics to industrial equipment, communications infrastructure, and licensing. 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. Research and development activities occur primarily in: Hillsboro, Oregon; San Jose and Sunnyvale, California; Shanghai, China; Alabang, Philippines; and Hyderabad, India. Fiscal Reporting Period We report based on a 52 or 53-week fiscal year ending on the Saturday closest to December 31. Our fiscal 2015 was a 52-week year that ended January 2, 2016 . Our fiscal 2014 was a 53-week year, with a 14-week fourth quarter, that ended January 3, 2015. Our fiscal 2013, 2012, and 2011 were 52-week years that ended December 28, 2013, December 29, 2012, December 31, 2011, respectively. Our fiscal 2016 will be a 52-week year and will end on December 31, 2016 . All references to quarterly or yearly financial results are references to the results for the relevant fiscal period. Principles of Consolidation and Presentation The accompanying Consolidated Financial Statements include the accounts of Lattice and its subsidiaries after the elimination of all intercompany balances and transactions. Our results for the year ended January 2, 2016 include the results of Silicon Image for the approximately 10 -month period from March 11, 2015 through January 2, 2016 . Results presented for prior fiscal years are those historically reported for Lattice only. Certain balances in prior fiscal years have been reclassified to conform to the presentation adopted in the current year. Interest expense has been reclassified to be reported separately from Other (expense) income, net. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts and classification of assets, such as marketable securities, accounts receivable, inventory, 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 assets and liabilities at the date of the financial statements, amounts used in acquisition valuations and purchase accounting, and the reported amounts of product revenue, licensing and services revenue, and expenses during the fiscal periods presented. Actual results could differ from those estimates. 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 investments, as defined by U.S. GAAP, and record unrealized gains or losses to Accumulated other comprehensive loss on our Consolidated Balance Sheets, unless losses are considered other than temporary, in which case, those are recorded directly to the Consolidated Statements of Operations and Statements of Comprehensive (Loss) Income. 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. In the past we have also invested in auction rate securities. We value these instruments at their fair value and monitor the 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, we record an impairment charge and establish 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.” 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 (expense) income, 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 mitigate foreign currency exchange rate risk by entering into foreign currency forward exchange contracts. We had forward contracts for Japanese yen of $3.3 million and $4.2 million at January 2, 2016 and January 3, 2015, respectively. Two contracts outstanding at January 2, 2016 settled in January 2016 and the other four contracts will settle in June 2016 . One of the contracts outstanding at January 3, 2015 settled in January 2015 and the other five contracts settled in June 2015 . 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 (expense) income, net, with an impact of less than $0.1 million and approximately $0.4 million for the years end January 2, 2016 and January 3, 2015, respectively. Concentration Risk Potential exposure to concentration risk may impact revenue, trade receivables, marketable securities, and supply of wafers for our new products. Customer concentration risk may impact revenue. For fiscal years 2015, 2014, and 2013, our top five end customers constituted approximately 32% , 45% , and 44% , respectively, of our revenue. Our largest end customer in fiscal year 2015 accounted for 9% of total revenue. Our two largest end customers in fiscal year 2014 and our largest end customer in fiscal year 2013 accounted for 19% , 12% , and 22% , respectively, of total revenue. No other end customers accounted for more than 10% of total revenue during these periods. Sales through distributors have historically accounted for a significant portion of our total revenue. For each of the fiscal years 2015, 2014 and 2013, revenue attributable to resale of products by sell-through distributors as a percentage of our total revenue was 45% . Our two largest distributor groups also account for a substantial portion of our trade receivables. At January 2, 2016 and January 3, 2015, one distributor group accounted for 29% and 45% , respectively, and the other accounted for 15% and 16% , respectively, of gross trade receivables. No other distributor groups or end customers accounted for more than 10% of gross trade receivables at these dates. Concentration of credit risk with respect to trade receivables is mitigated by our credit and collection process including active management of collections, credit limits, routine credit evaluations for essentially all customers and secure transactions with letters of credit or advance payments where appropriate. Accounts receivable do not bear interest and are shown net of allowances for doubtful accounts of $0.6 million and $0.9 million at January 2, 2016 and January 3, 2015 , respectively. We regularly review our allowance for doubtful accounts and the aging of our accounts receivable. Write-offs for uncollected trade receivables have not been significant to date. We place our investments primarily through one financial institution and mitigate the concentration of credit risk by limiting the maximum portion of the investment portfolio which may be invested in any one instrument. Our investment policy defines approved credit ratings for investment securities. Investments on-hand in marketable securities consisted primarily of money market instruments, “AA” or better corporate notes and bonds and commercial paper, and U.S. government agency obligations. See Note 3 for a discussion of the liquidity attributes of our marketable securities. 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 Product Revenue We sell our products directly to end customers, 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 original equipment manufacturers ("OEMs") and sell-in distributors is generally recognized upon shipment. Reserves for sell-in stock rotations, where applicable, are estimated primarily from historical experience and provided for at the time of 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. 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 sales 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 (loss) income, and Accounts receivable, net 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) January 2, 2016 January 3, 2015 Inventory valued at published list price and held by sell-through distributors with right of return $ 47,086 $ 50,854 Allowance for distributor advances (22,290 ) (29,490 ) Deferred cost of sales related to inventory held by sell-through distributors (6,930 ) (6,418 ) Total Deferred income and allowances on sales to sell-through distributors $ 17,866 $ 14,946 A significant portion of our revenue in fiscal 2015 was from sell-through distributors. For the fiscal years 2015, 2014 and 2013, resale of products by sell-through distributors as a percentage of our total revenue was 45% in each year. 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 product revenue, Deferred income and allowances on sales to sell-through distributors, and Net (loss) income. Licensing and Services Revenue Our licensing and services revenue is comprised of revenue from our intellectual property ("IP") core licensing activity, patent monetization activities, device management system and remote support services, and royalty and adopter fee revenue from our standards activities. These activities are complementary to our product sales and help us monetize our intellectual property and accelerate market adoption curves associated with our technology and standards. From time to time we enter into patent sale and licensing agreements to monetize and license a broad portfolio of our patented inventions. Such licensing agreements may include upfront license fees and ongoing royalties. The contractual terms of the agreements generally provide for payments of upfront license fees over an extended period of time. Revenue from such license fees is recognized when payments become due and payable as long as all other revenue recognition criteria are met, while revenue from royalties is recognized when reported. We enter into IP licensing agreements that generally provide licensees the right to incorporate our IP components into their products pursuant to terms and conditions that vary by licensee. Revenue earned under these agreements is classified as Licensing and services revenue. Our IP licensing agreements generally include multiple elements, which may include one or more off-the-shelf or customized IP licenses bundled with support services covering a fixed period of time, generally one year. If the different elements of a multiple-element arrangement qualify as separate units of accounting, we allocate the total arrangement consideration to each element based on relative selling price. Amounts allocated to off-the-shelf IP licenses are recognized at the time of sale provided the other conditions for revenue recognition have been met. Amounts allocated to the support services are deferred and recognized on a straight-line basis over the support period, generally one year. Certain licensing agreements provide for royalty payments based on agreed-upon royalty rates, which may be fixed or variable depending on the terms of the agreement. The amount of revenue we recognize is based on a specified time period or on the agreed-upon royalty rate multiplied by the number of units shipped by the customer. From time to time, we enter into IP licensing agreements that involve significant modification, customization or engineering services. Revenues derived from these contracts are accounted for using the percentage-of-completion method or completed contract method. The completed contract method is used for contracts where there is a risk of final acceptance by the customer or for short-term contracts. HDMI royalty revenue is determined by a contractual allocation formula agreed to by the members of the HDMI consortium. Evidence of an arrangement, as to HDMI royalty revenue, is deemed complete when all of the members of the HDMI consortium agree on the royalty sharing formula. 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 product revenue. 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. Equity Investments in Privately Held Companies Equity investments in privately-held companies are reviewed on a quarterly basis to determine if their values have been impaired and adjustments are recorded as necessary. We assess the potential impairment of these investments by considering available evidence such as the investee’s historical and projected operating results, progress towards meeting business milestones, ability to meet expense forecasts, and the prospects for industry or market in which the investee operates. Upon disposition of these investments, the specific identification method is used to determine the cost basis in computing realized gains or losses. Declines in value that are judged to be other-than-temporary are reported in interest income and other, net in the accompanying Consolidated Statements of Operations. The accounting method for equity investments in privately-held companies is assessed under ASC 323-10, Equity Method and Joint Ventures . Investments for which we have the ability to exert significant influence on the investee are accounted for under the equity method with our proportionate share of the investee’s operating results recognized through the Consolidated Statements of Operations, along with a commensurate increase or decrease in the carrying value of the investment. Impairment of Long-Lived Assets 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 Statements 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. The results of our current year assessment are detailed in Note 9. 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. We review 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, we make a qualitative assessment to determine if it is more likely than not that the reporting unit's fair value is less than the carrying amount. If the qualitative assessment determines that it is more likely than not that the fair value is less than the 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 we 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 two reporting units: the core Lattice ("Core") business, which includes intellectual property and semiconductor devices, and Qterics, a discrete software-as-a-service business unit in the Lattice legal entity structure. Although these two operating segments constitute two reportable segments, we combine Qterics with our Core business and report them together as one reportable segment due to the immaterial nature of the Qterics segment. The results of our current year assessment are detailed in Note 9. 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, is recorded as a part of restructuring charges. Research and Development Research and development expenses include costs for compensation and benefits, development masks, engineering wafers, depreciation, licenses, and outside engineering services. These expenditures are for the design of new products, intellectual property cores, processes, packaging, and software to support new products. Research and development costs are expensed as incurred. Accounting for Income Taxes Our provision for income tax is comprised of our current tax liability and changes 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 2, 2016, U.S. income taxes were not provided on approximately $3.2 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, these earnings would be subject to Chinese withholding taxes and would be subject to additional U.S. income taxes but offset by net operating loss carryforwards which have been fully reserved. Our income tax calculations are based on application of the respective U.S. federal, state or foreign tax law. Our tax filings, however, are subject to audit by the relevant tax authorities. Accordingly, we recognize tax liabilities based upon our 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 We use the Black-Scholes option pricing model to estimate the fair value of substantially all share-based awards consistent with the provisions of ASC 718, “Compensation - Stock Compensation.” Option pricing models, including the Black-Scholes model, require the use of input assumptions, including expected volatility, expected term, expected dividend rate, and expected risk-free rate of return. The assumptions for expected volatility and expected term most significantly affect the grant date fair value. We have also used a lattice-based option-pricing model to determine and fix the fair value of stock options with a market condition granted to certain executives. This valuation model incorporates a Monte-Carlo simulation, and considered the likelihood that we would achieve the market condition. The options have a two year vesting and vest between 0% and 200% of the target amount, based on the Company's relative Total Shareholder Return ("TSR") when compared to the TSR of a component of companies of the PHLX Semiconductor Sector Index over a two year period. TSR is a measure of stock price appreciation plus dividends paid, if any, in the performance period. Redeemable Noncontrolling Interests Noncontrolling interests that are redeemable at the option of the holder are classified as temporary equity in the Consolidated Balance Sheets. Differences between the carrying value and the estimated redemption value are accreted through a charge to additional paid-in capital over the redemption period using the effective interest method. New Accounting Pronouncements 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. While ASU 2014-09 was to be effective for annual periods and interim periods beginning after December 15, 2016, in August 2015, the FASB issued ASU 2015-14 deferring the effective date of ASU 2014-09 to periods beginning on or after December 15, 2017, with early adoption permitted for annual reporting periods beginning after December 15, 2016, and interim periods within that year. With the deferral, we intend to adopt ASU 2014-09 on December 31, 2017. 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 adopt |
Net (Loss) Income per Share
Net (Loss) Income per Share | 12 Months Ended |
Jan. 02, 2016 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income per Share | Net (Loss) Income Per Share We compute basic Net (loss) income per share by dividing Net (loss) income available to 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, restricted stock units ("RSUs"), Employee Stock Purchase Plan ("ESPP") shares, and treasury stock. 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 deferred tax benefit or cost associated with stock-based compensation expense. When we are in a net loss position, the treasury stock method is not used. A reconciliation of basic and diluted Net (loss) income per share is presented below: Year Ended (in thousands, except per share data) January 2, January 3, December 28, Net (loss) income attributable to stockholders $ (159,233 ) $ 48,580 $ 22,321 Shares used in basic Net (loss) income per share 117,387 117,708 115,701 Dilutive effect of stock options, RSUs and ESPP shares — 2,537 1,380 Shares used in diluted Net (loss) income per share 117,387 120,245 117,081 Basic Net (loss) income per share $ (1.36 ) $ 0.41 $ 0.19 Diluted Net (loss) income per share $ (1.36 ) $ 0.40 $ 0.19 The computation of diluted Net (loss) income per share for fiscal year 2015 excludes the effects of stock options, RSUs, and ESPP shares, aggregating approximately 9.2 million which are antidilutive. The computation of diluted Net (loss) income 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 and 7.8 million shares, for fiscal years 2014 and 2013, 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 2, 2016 could become dilutive in the future. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Jan. 02, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities Our short-term marketable securities have contractual maturities of up to two years. The following table summarizes the remaining maturities of our marketable securities at fair value: (In thousands) January 2, January 3, Short-term marketable securities: Maturing within one year $ 12,144 $ 60,965 Maturing between one and two years 5,824 78,268 Total marketable securities $ 17,968 $ 139,233 The following table summarizes the composition of our marketable securities at fair value: (In thousands) January 2, January 3, Short-term marketable securities: Corporate and government bonds and notes $ 17,888 $ 139,233 Certificates of deposit 80 — Total marketable securities $ 17,968 $ 139,233 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Jan. 02, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value measurements as of January 2, 2016 Fair value measurements as of (In thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Short-term marketable securities $ 17,968 $ 17,888 $ 80 $ — $ 139,233 $ 139,233 $ — $ — Foreign currency forward exchange contracts, net (12 ) — (12 ) — 414 — 414 — Total fair value of financial instruments $ 17,956 $ 17,888 $ 68 $ — $ 139,647 $ 139,233 $ 414 $ — We invest in various financial instruments including corporate and government bonds and notes, and commercial paper. In the past we have also invested in auction rate securities. In addition, we enter into foreign currency forward exchange contracts to mitigate our foreign currency exchange rate exposure. We carry 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 U.S. Government 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 Sheets. 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 certificates of deposit and 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 entirely made up of auction rate securities that consisted of student loan asset-backed notes and were classified as Long-term marketable securities on our Consolidated Balance Sheets. There were no transfers between any of the levels during fiscal 2015, 2014, and 2013. During the fiscal years ended January 2, 2016 and January 3, 2015, the following changes occurred in our Level 3 instruments: Year Ended (In thousands) January 2, January 3, Beginning fair value of Long-term marketable securities $ — $ 5,241 Fair value of securities sold or redeemed — (5,488 ) Realized gain from increase in fair value — 247 Ending fair value of Long-term marketable securities $ — $ — In the second quarter of the fiscal year ended January 3, 2015, we sold our remaining auction rate securities with a par value of $5.7 million with an estimated fair value of $5.2 million , for $5.5 million . As a result, we reported a gain of $1.7 million in the Consolidated Statements of Operations and relieved $1.1 million of previously unrealized gain, net of taxes, from Accumulated other comprehensive loss in fiscal 2014. In accordance with ASC 320, “Investments-Debt and Equity Securities,” we recorded an unrealized loss of less than $0.1 million during the fiscal year ended January 2, 2016, and an unrealized loss of $0.4 million during the fiscal year ended January 3, 2015 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. If we were to determine in the future that any further decline in fair value is other-than-temporary, we would record an impairment charge, which could have a materially adverse effect on our operating results. If we were to liquidate our position in these securities, it is likely that the amount of any future realized gain or loss would be different from the unrealized gain or loss reported in Accumulated other comprehensive loss. |
Inventories
Inventories | 12 Months Ended |
Jan. 02, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (In thousands) January 2, 2016 January 3, 2015 Work in progress $ 57,865 $ 49,554 Finished goods 18,031 15,371 Total inventories $ 75,896 $ 64,925 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jan. 02, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment (In thousands) January 2, 2016 January 3, 2015 Buildings $ 3,554 $ 3,516 Computer and test equipment 148,995 158,117 Office furniture and equipment 3,880 7,028 Leasehold and building improvements 14,366 13,213 170,795 181,874 Accumulated depreciation and amortization (118,943 ) (154,078 ) $ 51,852 $ 27,796 Depreciation and amortization expense for Property and equipment was $18.1 million , including $1.5 million of restructuring expense, $11.4 million , and $11.2 million for fiscal years 2015, 2014, and 2013, respectively. In November 2014, we sold land and buildings, comprising the former location of our corporate headquarters and executive office 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 is being amortized over the life of the lease. |
Business Combinations and Goodw
Business Combinations and Goodwill | 12 Months Ended |
Jan. 02, 2016 | |
Business Combinations [Abstract] | |
Business Combinations and Goodwill | Business Combinations and Goodwill On March 10, 2015, we acquired 100% of the outstanding equity of Silicon Image, Inc. ("Silicon Image"), a provider of video, audio, and data connectivity solutions for the mobile, consumer electronics, and personal computer markets. The fair value of the purchase price consideration consisted of the following: (In thousands) Estimated Fair Value Cash paid to Silicon Image shareholders $ 575,955 Cash paid for options and RSUs 7,383 Fair value of partially vested stock options and RSUs assumed 5,139 Total purchase consideration $ 588,477 There is no contingent consideration included in the determination of the purchase consideration. Purchase consideration was allocated to the tangible and intangible assets and liabilities assumed on the basis of the respective estimated fair values on the acquisition date. The purchase price allocation has been substantially completed, but may be subject to revision as we perform and complete more detailed analysis of certain tax matters. The allocation of the total purchase price is as follows: (In thousands) Estimated Fair Value Assets acquired: Cash, cash equivalents and short-term investments $ 157,923 Accounts receivable 30,677 Inventory 20,839 Other current assets 7,183 Property, plant and equipment 23,429 Other non-current assets 1,573 Intangible assets 192,079 Goodwill 235,401 Total assets acquired 669,104 Liabilities assumed Accounts payable and other accrued liabilities 47,735 Other current liabilities 1,252 Long-term liabilities 24,468 Redeemable noncontrolling interest 7,172 Total liabilities assumed 80,627 Fair value of net assets acquired $ 588,477 The following table presents details of the identified intangible assets acquired through the acquisition of Silicon Image: (In thousands) Asset Life in Years Fair Value Developed technology 3-5 $ 125,000 Customer relationships 4-7 29,458 Licensed technology 3-5 1,852 Patents 5 769 Total identified finite-lived intangible assets 157,079 In-process research and development indefinite 35,000 Total identified intangible assets $ 192,079 We do not believe there is any significant residual value associated with these intangible assets. We are amortizing the intangible assets using the straight-line method over their estimated useful lives. The estimation of the fair values of the intangible assets required the use of valuation techniques including the income approach and the cost approach, and entailed consideration of all the relevant factors that might affect the fair value such as present value factors, and estimates of future revenues and costs. Silicon Image’s results of operations and the estimated fair value of the assets acquired and liabilities assumed are included in Lattice's unaudited consolidated financial statements effective March 11, 2015. Silicon Image's revenue and net loss attributable to stockholders for the period from March 11, 2015 through January 2, 2016 were approximately $135.6 million and $77.0 million , respectively. Acquisition related charges, which were expensed as incurred, were approximately $8.2 million . Goodwill Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and intangible assets. The goodwill recognized in the acquisition of Silicon Image was derived from expected benefits from cost synergies and knowledgeable and experienced workforce who joined the Company after the acquisition. Goodwill will not be amortized, but will instead be tested for impairment annually or more frequently if certain indicators of impairment are present. We do not expect goodwill impairment to be tax deductible for income tax purposes. A $ 12.7 million charge to fully impair the goodwill in the Qterics operating segment was recorded for fiscal 2015 (Note 9). No impairment charges relating to goodwill or intangible assets were recorded for fiscal 2014 or 2013 as no indicators of impairment were present. The goodwill balance of $267.5 million at January 2, 2016 is comprised of $44.8 million from prior acquisitions combined with the $235.4 million from the acquisition of Silicon Image, reduced by the fiscal 2015 goodwill impairment charge of $12.7 million . Unaudited Pro Forma Financial Information The unaudited pro forma financial information in the table below summarizes the combined results of operations for the Company and Silicon Image as if the merger occurred on December 29, 2013, the first day of our 2014 fiscal year. The pro forma financial information for the periods presented includes adjustments to amortization and depreciation for intangible assets and property, plant, and equipment acquired; adjustments to share-based compensation expense; and interest expense for the additional indebtedness incurred as part of the acquisition. The total of nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings for the year ended January 3, 2015 and excluded from the reported pro forma revenue and earnings for the year ended January 2, 2016 was $30.6 million related to acquisition-related charges. The pro forma financial information as presented below is for informational purposes only, is based on certain assumptions and estimates, and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of the first period presented. The unaudited pro forma financial information for the fiscal year ended January 2, 2016 combined the historical results of the Company for the fiscal year ended January 2, 2016, the historical results of Silicon Image for the fiscal year ended January 2, 2016, and the effects of the pro forma adjustments described above. The unaudited pro forma financial information for the fiscal year ended January 3, 2015 combined the historical results of the Company for the fiscal year ended January 3, 2015, the historical results of Silicon Image for the fiscal year ended January 3, 2015, and the effects of the pro forma adjustments described above. Year Ended (Dollars in thousands, except per share data) January 2, 2016 January 3, 2015 Total revenues $ 450,867 $ 624,179 Net (loss) income attributable to stockholders $ (147,436 ) $ 10,376 Basic net (loss) income per share $ (1.26 ) $ 0.09 Diluted net (loss) income per share $ (1.26 ) $ 0.09 The pro forma adjustments did not have any impact on the pro forma combined provision for income taxes for fiscal 2015 and 2014 due to net loss positions and valuation allowances on deferred income tax assets in those periods. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Jan. 02, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets In connection with our acquisitions of Silicon Image in March 2015 and SiliconBlue in December 2011 we recorded identifiable intangible assets related to developed technology, customer relationships, licensed technology, patents, and in-process research and development based on guidance for determining fair value under the provisions of ASC 820. Additionally, during fiscal 2015, we licensed additional third-party technology. During the fourth quarter of 2015, we recorded a $9.0 million impairment charge to the intangible assets of the Qterics operating segment comprising developed technology of $3.9 million , and customer relationships of $5.1 million (Note 9). The following table summarizes the details of our total purchased intangible assets: Weighted Average Amortization Period (in years) Gross Impairment Accumulated Amortization Intangible assets, net of amortization (In thousands) January 2, 2016 Developed technology 4.7 $ 135,700 $ (3,856 ) $ (28,384 ) $ 103,460 Customer relationships 5.5 37,258 (5,139 ) (10,156 ) 21,963 Licensed technology 2.5 2,127 — (610 ) 1,517 Patents 5 769 — (126 ) 643 Total identified finite-lived intangible assets 175,854 (8,995 ) (39,276 ) 127,583 In-process research and development indefinite 35,000 — — 35,000 Total identified intangible assets $ 210,854 $ (8,995 ) $ (39,276 ) $ 162,583 We recorded amortization expense associated with these intangible assets on the Consolidated Statements of Operations as follows: Year Ended (In thousands) January 2, 2016 January 3, 2015 December 28, 2013 Research and development $ 731 $ — $ — Amortization of acquired intangible assets 28,849 2,948 2,960 $ 29,580 $ 2,948 $ 2,960 The annual expected amortization expense of acquired intangible assets with finite lives is as follows: (In thousands) Amount 2016 $ 34,892 2017 33,275 2018 26,793 2019 24,009 2020 6,248 Thereafter 2,366 Total $ 127,583 |
Impairment of Goodwill and Inta
Impairment of Goodwill and Intangible Assets | 12 Months Ended |
Jan. 02, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment of Goodwill and Intangible Assets | Impairment of Goodwill and Intangible Assets For fiscal 2015, the Impairment of goodwill and intangible assets is related to Qterics, Inc., which was acquired in the March 2015 acquisition of Silicon Image. During the fourth quarter of fiscal 2015 , we determined that we experienced an impairment indicator related to the long-lived assets of the Qterics operating segment. For purposes of testing for impairment, the Company operates as two reporting units: the core Lattice ("Core") business, which includes intellectual property and semiconductor devices, and Qterics, a discrete software-as-a-service business unit in the Lattice legal entity structure. Although these two operating segments constitute two reportable segments, we combine Qterics with our Core business and report them together as one reportable segment due to the immaterial nature of the Qterics segment. Following this assessment, we concluded that goodwill and intangible assets has been impaired in the Qterics segment as of January 2, 2016 . As a result we recorded an impairment charge amounting to $21.7 million , or approximately 92% of the previous value of goodwill and intangible assets, in the Consolidated Statements of Operations for the year ended January 2, 2016 , comprising $12.7 million pertaining to goodwill, $3.9 million pertaining to developed technology, and $5.1 million pertaining to customer relationships. The valuation was based on the market approach and is our best estimate of fair value as of year end. No impairment charges were recorded for the Core segment in fiscal 2015, and we had no impairment charges in either fiscal 2014 or 2013. |
Equity Method Investment
Equity Method Investment | 12 Months Ended |
Jan. 02, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment | Equity Method Investment In the first and third quarters of fiscal 2015 , we purchased a preferred stock ownership interest in a privately-held company that designs human-computer interaction technology for a total consideration of $3.0 million . This investment accounted for a 15.8% ownership interest by the end of the third quarter of fiscal 2015 and was accounted for under the cost method as we did not have the ability to exert significant influence over the investee. In the fourth quarter of fiscal 2015 , we increased our ownership interest to 22.7% by making an additional investment of $2.0 million . This increased our gross investment in the investee to $5.0 million . As a result of the change in ownership interest and after considering the changes in the level of our participation in the management and interaction with the investee, we determined that we have the ability to exert significant influence on the investee. Accordingly, we changed our accounting for the investment from the cost method to the equity method and will hence recognize our proportionate share of the investee’s operating results. As a result of this change, we recognized our proportionate share of the investee’s net loss in the Consolidated Statements of Operations for the year ended January 2, 2016 . Through January 2, 2016 , we have reduced the value of our investment by approximately $0.5 million , representing our proportionate share of the privately-held company’s net loss. The net balance of our investment amounting to $4.5 million has been included in Other long-term assets in the Consolidated Balance Sheets as of January 2, 2016 . |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Jan. 02, 2016 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses As an agent of the HDMI and MHL consortia, we administer royalty reporting and distributions to the members of these consortia. Included in Accounts payable and accrued liabilities as of January 2, 2016 is $16.6 million payable to consortia members. This excludes amounts payable to us, and is payable quarterly based on collections from HDMI and MHL customers. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 12 Months Ended |
Jan. 02, 2016 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interest With the acquisition of Silicon Image on March 10, 2015, we also assumed a redeemable noncontrolling interest which comprised a 7% investment in Qterics amounting to $7.0 million invested by the noncontrolling interest holder initially entered into on December 4, 2014. The investment was redeemable at fair market value at the third-party holder's option on the third, fourth, or fifth year anniversaries. If the fair market value at the redemption date, as negotiated and agreed to by the parties, does not exceed $21 million , the redemption price will be 130% of the fair market value. As of the acquisition date, the fair value of the noncontrolling interest was determined to be $7.2 million (Note 7), recorded as temporary equity and reported as Redeemable noncontrolling interest in the Consolidated Balance Sheets. The Company elected to accrete the carrying value to the estimated redemption value over the three -year redemption period and reported the accretion charge as a reduction to additional-paid-in-capital. During fiscal 2015 , we recorded cumulative accretion charges amounting to $0.4 million bringing the value of the redeemable noncontrolling interest to $7.6 million . During the fourth quarter of fiscal 2015, we entered into an agreement with the holder pursuant to which the entire interest was redeemed for a cash payment of approximately $0.9 million . The difference between the carrying value and the redemption amount totaling approximately $6.7 million has been recorded as additional-paid-in-capital during the year ended January 2, 2016 . |
Lease Obligations
Lease Obligations | 12 Months Ended |
Jan. 02, 2016 | |
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 operating leases was $7.4 million , $4.5 million and $4.6 million for fiscal years 2015, 2014 and 2013, respectively. Future minimum lease commitments at January 2, 2016 were as follows: Fiscal year Amount (In thousands) 2016 $ 8,964 2017 9,025 2018 6,859 2019 4,587 2020 4,533 Thereafter 23,541 $ 57,509 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 02, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The domestic and foreign components of (Loss) income before income taxes were as follows: Year Ended (In thousands) January 2, 2016 January 3, 2015 December 28, 2013 Domestic $ (92,989 ) $ 6,292 $ 6,293 Foreign (33,464 ) 36,649 20,193 (Loss) income before taxes $ (126,453 ) $ 42,941 $ 26,486 The components of the income tax expense (benefit) are as follows: Year Ended (In thousands) January 2, January 3, December 28, Current: Federal $ 968 $ 329 $ 251 State 80 5 (527 ) Foreign 10,634 1,944 1,616 11,682 2,278 1,340 Deferred: Federal 18,713 (7,416 ) 2,549 State 2,318 (513 ) 342 Foreign (173 ) 12 (66 ) 20,858 (7,917 ) 2,825 Income tax expense (benefit) $ 32,540 $ (5,639 ) $ 4,165 Income tax expense (benefit) 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 2, January 3, December 28, % % % Statutory federal rate (35) 35 35 Adjustments for tax effects of: State taxes, net (6) 1 2 Research and development credits (3) (9) (11) Stock compensation 1 1 3 Foreign rate differential 12 (25) (20) Foreign dividends 5 1 — Foreign withholding taxes 3 — — Capital loss expiration — 7 2 Other permanent 4 — — Goodwill impairment 4 — — Valuation allowance 46 (23) 6 Change in uncertain tax benefit accrual (8) 1 (1) Tax rate change 3 (4) (1) Other — 2 1 Effective income tax rate 26 (13) 16 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. 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. In 2015, we completed the acquisition of Silicon Image, Inc. At the time of the acquisition, we evaluated the combined entity's net deferred income taxes, which included an assessment of the cumulative income or loss over the prior three-year period, to determine if a valuation allowance is required. After considering the significant loss for 2015, the Company recorded a valuation allowance on its net federal and state deferred tax assets. We will continue to evaluate both positive and negative evidence in future periods to determine if more deferred tax assets should be recognized. We don't 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 increase in the total valuation allowance affecting the effective tax rate for the year ended January 2, 2016 was approximately $58.7 million . The components of our net deferred tax assets are as follows: (In thousands) January 2, January 3, Deferred tax assets: Accrued expenses and reserves $ 5,690 $ 5,416 Inventory 303 — Deferred Revenue 3,177 — Stock-based and deferred compensation 7,674 5,530 Intangible assets 16,959 9,841 Fixed assets — 983 Net operating loss carry forwards 131,829 96,543 Tax credit carry forwards 87,909 40,588 Capital loss carry forwards 1,262 4,142 Other 2,458 220 257,261 163,263 Less: valuation allowance (252,578 ) (141,215 ) Net deferred tax assets 4,683 22,048 Deferred tax liabilities: Fixed Assets 791 — Other 3,734 717 Total deferred tax liabilities 4,525 717 Net deferred tax assets $ 158 $ 21,331 At January 2, 2016 , we had federal net operating loss carryforwards (pretax) of approximately $339.9 million that expire at various dates between 2023 and 2035 . We had state net operating loss carryforwards (pretax) of approximately $239.9 million that expire at various dates from 2016 through 2035 . We also had federal and state credit carryforwards of $48.2 million and $55.9 million of which $53.4 million do not expire. The remaining credits expire at various dates from 2016 through 2035 . 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 2015. 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 2, 2016 , U.S. income taxes were not provided for approximately $3.2 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 2, 2016 , our unrecognized tax benefits associated with uncertain tax positions were $48.2 million , of which $45.1 million , if recognized, would affect the effective tax rate, subject to valuation allowance. As of January 2, 2016 , interest and penalties associated with unrecognized tax benefits were $5.3 million . The following table summarizes the changes to unrecognized tax benefits for fiscal years 2015, 2014 and 2013: (In thousands) Amount 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 Additions based on tax positions related to the current year 4,381 Additions based on tax positions of prior years — Additions due to acquisition 41,083 Reductions for tax positions of prior years (14,958 ) Reduction as a result of lapse of applicable statute of limitations (972 ) Balance at January 2, 2016 48,207 At January 2, 2016 , it is reasonably possible that $1.8 million of unrecognized tax benefits and less than $0.1 million of associated interest and penalties could significantly change during the next twelve months. Our French income tax returns are 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 2012 for federal income taxes, 2011 for state income taxes, and 2009 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. On December 18, 2015, the Protecting Americans from Tax Hikes Act of 2015 was enacted. The Act included several business tax provisions including the permanent extension of the credit for qualified research and development. 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. 02, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In March 2015, our Board of Directors approved an internal restructuring plan (the "March 2015 Plan"), in connection with our acquisition of Silicon Image. The March 2015 Plan was designed to realize synergies from the acquisition by eliminating redundancies created as a result of combining the two companies. This included reductions in our worldwide workforce and consolidation of facilities, systems, and engineering tools. We expect the total cost of the March 2015 Plan to be in the range of approximately $14.0 million to $19.0 million and to be substantially completed by the end of second quarter of fiscal 2016. For fiscal year 2015, approximately $13.3 million of expense was incurred under the March 2015 plan. A substantial portion of the March 2015 Plan was completed in the first half of fiscal 2015 and the actual expenses have been in the estimated range. We expect a small amount of restructuring expense under this plan to continue into fiscal 2016, primarily related to charges associated with the consolidation of facilities. In September 2015, we implemented a further reduction of our worldwide workforce (the "September 2015 Reduction") separate from the March 2015 Plan. The September 2015 Reduction was designed to resize the company in line with the market environment and to better balance our workforce with the long-term strategic needs of our business. We expect the total cost of the September 2015 Reduction to be in the range of approximately $6.0 million to $6.5 million and to be substantially completed by the end of the second quarter of 2016. For fiscal year 2015, approximately $5.9 million of expense was incurred under the September 2015 Reduction plan. Less than $0.1 million was incurred in the fiscal year 2015 relating to a prior restructuring plan. These expenses were recorded to Restructuring charges on the Statements of Operations. The restructuring accrual balance is presented in Accounts payable and accrued expenses (includes restructuring) on the Consolidated Balance Sheets. The following table displays the activity related to the restructuring plans described above: (In thousands) Severance and related Lease termination Systems & Engineering Tools* Other Total Balance at December 29, 2012 $ 2,373 $ 793 $ — $ 258 $ 3,424 Restructuring charges 109 224 — 253 586 Costs paid or otherwise settled (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 Costs paid or otherwise settled (8 ) (341 ) — (18 ) (367 ) Adjustments to prior restructuring costs (9 ) 15 — 1 7 Balance at January 3, 2015 $ — $ 43 — $ 139 $ 182 Restructuring charges 12,861 2,667 3,040 671 19,239 Costs paid or otherwise settled (9,165 ) (1,705 ) (2,663 ) (810 ) (14,343 ) Adjustments to prior restructuring costs — — — — — Balance at January 2, 2016 $ 3,696 $ 1,005 $ 377 $ — $ 5,078 * Includes cancellation of contracts and accelerated depreciation of ERP systems |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jan. 02, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-Term Debt On March 10, 2015, we entered into a secured credit agreement (the "Credit Agreement") with Jefferies Finance, LLC and certain other lenders for purposes of funding, in part, our acquisition of Silicon Image. The Credit Agreement provided for a $350 million term loan (the "Term Loan") maturing on March 10, 2021 (the "Term Loan Maturity Date"). We received $346.5 million net of an original issue discount of $3.5 million and we paid debt issuance costs of $8.3 million . The Term Loan bears variable interest equal to the LIBOR, subject to a 1.00% floor, plus a spread of 4.25% . The current effective interest rate on the Term Loan is 6.14% . The Term Loan is payable through a combination of quarterly installments of approximately $0.9 million , which began on July 4, 2015, annual excess cash flow payments as defined in the Credit Agreement, which are due 95 days after the last day of our fiscal year, and any payments due upon certain issuances of additional indebtedness and certain asset dispositions, with any remaining outstanding principal amount due and payable on the Term Loan Maturity Date. The percentage of excess cash flow we are required to pay ranges from 0% to 75% , depending on our leverage and other factors as defined in the Credit Agreement. Currently, the Credit Agreement would require a 75% excess cash flow payment. As of year end, we expect to be required to make principal payments of $7.0 million , in addition to required quarterly payments, in 2016. While the Credit Agreement does not contain financial covenants, it does contain informational covenants and certain restrictive covenants, including limitations on liens, mergers and consolidations, sales of assets, payment of dividends, and indebtedness. We were in compliance with all such covenants at January 2, 2015. The original issue discount and the debt issuance costs have been accounted for as a reduction to the carrying value of the Term Loan on our Consolidated Balance Sheets and are being amortized to Interest expense in our Consolidated Statements of Operations over the contractual term, using the effective interest method. The carrying value of the Term Loan is reflected in our Consolidated Balance Sheets as follows: (in thousands) January 2, 2016 January 3, 2015 Principal amount $ 347,375 $ — Unamortized original issue discount and debt issuance costs (8,948 ) — Less: Current portion of long-term debt (7,557 ) — Long-term debt $ 330,870 $ — Interest expense related to the Term Loan was included in Interest expense on the Consolidated Statements of Operations as follows: Year Ended (in thousands) January 2, 2016 January 3, 2015 December 28, 2013 Contractual interest $ 15,225 — — Amortization of debt issuance costs and discount 2,835 — — Total Interest expense related to the Term Loan $ 18,060 $ — $ — As of January 2, 2016, expected future principal payments on the Term Loan were as follows: Fiscal year (in thousands) 2016 $ 10,500 2017 56,173 2018 82,773 2019 107,396 2020 69,040 Thereafter 21,493 $ 347,375 |
Common Stock Repurchase Program
Common Stock Repurchase Program | 12 Months Ended |
Jan. 02, 2016 | |
Equity [Abstract] | |
Common Stock Repurchase Program | Common Stock Repurchase Program On March 3, 2014 , our 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. Under this program during fiscal 2014 , approximately 1.9 million shares were repurchased for $13.1 million . The 2014 program completed during the first quarter of fiscal 2015, during which approximately 1.1 million shares were repurchased for approximately $7.0 million . All shares repurchased under the 2014 program were retired by the end of the fiscal year in which they were repurchased. All repurchases were open market transactions funded from available working capital. On February 27, 2013 , our 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. Under this program 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. The 2013 program expired during the first quarter of fiscal 2014. No shares were repurchased during those three months. All shares repurchased under the 2013 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. 02, 2016 | |
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. 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 $0.4 million , $0.3 million and $0.2 million for the fiscal years 2015, 2014 and 2013, respectively. At January 2, 2016, a total of 5.2 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. At January 2, 2016, a total of 2.3 million shares of our common stock were available for future purchases under the 2012 ESPP. On March 10, 2015, in conjunction with the acquisition of Silicon Image, we assumed certain outstanding stock option and RSU grants of the Silicon Image Equity Incentive Plan. We assumed all outstanding unvested RSU grants, and all stock option grants that were unvested or vested and out-of-the-money. The exchange ratio for the conversion was 1.098160 for all grants. The conversion ratio was determined by the weighted average closing price of Lattice stock for the ten days prior to the acquisition date divided by the offer price of $7.30 . The converted outstanding option grants totaled 2,087,605 shares and converted RSU grants totaled 2,025,255 shares as of March 10, 2015. As of the year ended January 2, 2016, 1,622,007 options and 1,056,368 RSU shares arising from this conversion remained outstanding. Stock-Based Compensation Total stock-based compensation expense included in our Consolidated Statements of Operations was as follows: Year Ended (In thousands) January 2, January 3, December 28, Line item: Cost of products sold $ 1,416 $ 819 $ 627 Research and development 9,141 5,176 3,916 Selling, general, and administrative 6,793 6,807 4,979 Acquisition related charges 4,293 — — Total stock-based compensation $ 21,643 $ 12,802 $ 9,522 Total stock-based compensation for the twelve months ended January 2, 2016 was $21.6 million of which $3.9 million was paid during the period. 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. The expected term is based on historical vested option exercises and includes an estimate of the expected term for options that are fully vested and outstanding. 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. The following table summarizes the assumptions used in the valuation of stock option and ESPP compensation for fiscal years 2015, 2014, and 2013: Year Ended January 2, January 3, December 28, Employee and Director Stock Options Expected volatility 43.6% to 47.3% 45.4% to 50.4% 51.4% to 54.3% Risk-free interest rate 1.4% to 1.7% 1.5% to1.7% 0.7% to 1.0% Expected term (years) 4.08 to 4.75 4.1 to 4.7 years 4.1 to 4.5 years Dividend yield —% —% —% Employee Stock Purchase Plan Weighted average expected volatility 33.6% 38.7% 48.0% Weighted average risk-free interest rate 0.12% 0.08% 0.11% Expected term (years) 6 months 6 months 6 months Dividend yield —% —% —% At January 2, 2016, there was $10.8 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 4.2 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 2, 2016: (Shares and aggregate intrinsic value in thousands) Shares Weighted Weighted average Aggregate Balance, January 3, 2015 9,369 $ 5.45 Grants as a result of Acquisition 2,087 4.63 Granted 2,348 5.68 Exercised (1,159 ) 3.95 Forfeited or expired (1,201 ) 5.77 Balance, January 2, 2016 11,444 $ 5.46 Vested and expected to vest at January 2, 2016 11,444 $ 5.46 4.26 $ 12,719 Exercisable, January 2, 2016 6,692 $ 5.32 3.26 $ 8,256 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 2015, 2014 and 2013, and was $2.5 million , $7.8 million and $2.5 million , respectively. The total fair value of options and RSUs vested and expensed in fiscal 2015, 2014 and 2013 and was $18.0 million , $12.8 million and $9.3 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 $2.35 , $2.93 and $2.10 for fiscal years 2015, 2014 and 2013, respectively. The weighted average fair values calculated using the Black-Scholes option pricing model for the ESPP were $1.51 , $1.73 and $1.29 for fiscal years 2015, 2014 and 2013, respectively. During fiscal year 2015, we granted approximately 327,200 stock options and 70,000 RSUs with a market condition to certain executives. The options and RSUs have a two year vesting and vest between 0% and 200% of the target amount, based on the Company's relative Total Shareholder Return (TSR) when compared to the TSR of a component of companies of the PHLX Semiconductor Sector Index over a two year period. The fair values of the options 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 condition. TSR is a measure of stock price appreciation plus dividends paid, if any, in the performance period. As of January 2, 2016, 327,200 stock options and 70,000 RSUs with a market condition were outstanding. In 2015, we incurred stock compensation expense of $0.6 million related to these market condition awards. During fiscal year 2014, we granted approximately 98,600 market-based RSUs in two equal tranches, each of which vest upon achievement of certain market-based conditions. The fair values of the market-based RSUs 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. Both tranches vested and we incurred total stock compensation expense related to performance based awards of $0.7 million for the fiscal year ended January 3, 2015. The following table summarizes the assumptions used in the valuation of stock options and RSUs with a market condition for fiscal years 2015 and 2014. No stock options or RSUs with a market condition were granted in fiscal year 2013: Year Ended January 2, January 3, Executive stock options with a market condition Expected volatility 44% to 46% n/a Risk-free interest rate 1.4% n/a Expected term (years) 4.5 n/a Dividend yield —% n/a Executive RSUs with a market condition Expected volatility 36.9% 53.5% Risk-free interest rate 0.6% 2.2% Expected term (years) 2.0 0.24 Dividend yield —% —% The following table summarizes our RSU activity for the year ended January 2, 2016: (Shares in thousands) Shares Weighted average grant date fair value Balance at January 3, 2015 2,021 $ 6.66 Grants as a result of Acquisition 2,025 5.37 Granted 3,203 5.92 Vested (1,624 ) 6.04 Forfeited (868 ) 6.02 Balance at January 2, 2016 4,757 $ 5.95 At January 2, 2016 there was $24.4 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. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jan. 02, 2016 | |
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. We recorded matching contributions of $0.9 million in fiscal 2015. No matching contributions were recorded in fiscal 2014 or 2013. 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 determines 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 determines 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. 2015 Cash Incentive Plan On December 4, 2014, upon the recommendation of the Compensation Committee, the Board of Directors of the Company approved the 2015 Cash Incentive Plan (the “2015 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 2015 Cash Plan. Under the 2015 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 determines 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 2015. There was $1.0 million of expense recorded under this plan in fiscal 2015. |
Contingencies
Contingencies | 12 Months Ended |
Jan. 02, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters | Contingencies Legal Matters On or about January 29, 2015, Silicon Image, 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 of Silicon Image 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 were purported class actions brought on behalf of Silicon Image stockholders, asserting claims against each member of the Silicon Image Board for breach of fiduciary duty, and against various officers of the Silicon Image, the Company, and the Company’s wholly-owned merger subsidiary for aiding and abetting breach of fiduciary duty. The lawsuits alleged that the Merger did not appropriately value Silicon Image, was the result of an inadequate process, and included preclusive deal devices. The amended complaints also asserted that the Silicon Image’s disclosures regarding the Merger in its Schedule 14D-9 omitted material information regarding the Merger. Each of these complaints purported to seek unspecified damages. The Delaware cases have been settled and this settlement has been approved by the court. The settlement did not have a material adverse effect on our financial position. The California cases were dismissed with prejudice on February 29, 2019. 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. On September 21, 2015, the parties entered into a settlement agreement. Under that agreement, we received a non-exclusive, irrevocable, fully paid up, perpetual, worldwide license for use of the asserted patents. The license fully exhausts and includes all claims of the asserted patents. The settlement did not have a material adverse effect on our financial position. On October 22, 2015, the case was dismissed with prejudice. In March 2014, the China National Development and Reform Commission ("NDRC") notified HDMI Licensing, LLC ("HDMI LLC"), a wholly-owned subsidiary of the Company and the agent for an entity charged with administering the HDMI specification, that the NDRC was investigating HDMI LLC’s licensing activities in China under the Chinese Anti-Monopoly Law ("AML"). The NDRC has available a broad range of remedies with respect to business practices it deems to violate the AML, including the ability to issue an order to cease conduct deemed illegal, confiscate gains deemed illegally obtained, impose a fine and require modifications to business practices. In July 2015, the NDRC concluded its investigation and informed HDMI LLC that it did not intend to impose monetary penalties on HDMI LLC, subject to HDMI LLC entering into a settlement agreement with the China Video Industry Association (“CVIA”) relating to various issues arising in connection with HDMI LLC licensing to Chinese companies. HDMI LLC is negotiating the specific implementation terms of this agreement with CVIA. Lattice cannot predict the outcome of this matter because administrative proceedings and negotiations with industry associations are inherently uncertain. At this stage of the proceedings, we do not have an estimate of the likelihood or the amount of any financial consequences to the Company. In January 2016 the Company commenced a suit against Technicolor SA and its affiliates in the United States District Court for the Northern District of California alleging that Technicolor had infringed certain patents relating to the HDMI specification. Technicolor has informed the Company that it will attempt to raise as a counterclaim a claim for payment to Technicolor and other HDMI founders their respective share of any HDMI adopters’ fees not used by Lattice and its predecessor in interest Silicon Image in the marketing and other activities in furtherance of the HDMI standard. Technicolor previously has indicated its belief that the HDMI founders enjoy a right to these funds but has never pursued such claims. At this stage of the proceedings, we do not have an estimate of the likelihood or the amount of any financial consequences to the Company. We are 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. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Jan. 02, 2016 | |
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 Balance received through acquisition Charged (Credit) to Charged to Write-offs Balance at end Fiscal year ended January 2, 2016 Allowance for deferred taxes 141,215 52,481 58,658 224 — 252,578 Allowance for doubtful accounts 875 — (438 ) 189 (5 ) 621 Allowance for warranty expense 81 136 153 — — 370 142,171 52,617 58,373 413 (5 ) 253,569 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 |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Jan. 02, 2016 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information Segment Information We have two operating segments: the core Lattice ("Core") business, which includes intellectual property and semiconductor devices, and Qterics, a discrete software-as-a-service business unit in the Lattice legal entity structure. Although these two operating segments constitute two reportable segments, we combine Qterics with our Core business and report them together as one reportable segment due to the immaterial nature of the Qterics segment. For the twelve months ended January 2, 2016 , revenue generated by Qterics comprised 0.3% of Total revenue. For the twelve months ended January 2, 2016 , Qterics accounted for 16.3% of the total Net loss attributable to stockholders, due primarily to a $21.7 million impairment of goodwill and intangible assets related to this segment (Note 9). As of January 2, 2016 , the Total assets of Qterics comprised 0.8% of the Total assets of the company. Geographic Information Our revenue by major geographic area based on ship-to location was as follows: Year Ended (In thousands) January 2, 2016 January 3, 2015 December 28, 2013 United States: $ 33,677 8% $ 30,848 8% $ 28,506 9% China 147,688 36 159,155 43 148,018 45 Europe 55,596 14 59,041 16 47,459 14 Japan 44,067 11 31,207 9 26,538 8 Taiwan 31,181 8 6,691 2 6,708 2 Other Asia 85,598 21 69,778 19 64,425 19 Other Americas 8,159 2 9,407 3 10,871 3 Total foreign revenue 372,289 92 335,279 92 304,019 91 Total revenue $ 405,966 100% $ 366,127 100% $ 332,525 100% 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. Our property and equipment, net by country at the end of each period was as follows: (In thousands) January 2, 2016 January 3, 2015 United States 25,615 14,250 China 14,998 5,626 Philippines 3,948 3,658 Taiwan 3,677 405 India 1,470 248 Japan 1,211 1,732 Other 933 1,877 Total foreign property and equipment, net 26,237 13,546 Total property and equipment, net 51,852 27,796 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 2015 2014 2013 Arrow Electronics Inc. (including Nu Horizons Electronics) 20 % 24 % 23 % Weikeng Group 12 10 12 All others 13 11 10 All sell-through distributors 45 % 45 % 45 % 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. 02, 2016 | |
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: 2015 * 2014 (In thousands, except per share data) Q4 Q3 Q2 Q1 Q4 ** Q3 Q2 Q1 Revenue $ 101,194 $ 109,715 $ 106,460 $ 88,597 $ 83,600 $ 86,570 $ 99,320 $ 96,637 Gross margin 54,102 59,849 58,126 47,832 46,263 50,811 54,975 54,138 Restructuring charges 3,459 6,818 4,068 4,894 1 2 3 11 Net (loss) income attributable to stockholders (45,454 ) (24,862 ) (35,570 ) (53,347 ) 15,419 9,406 11,771 11,984 Basic net (loss) income per share $ (0.38 ) $ (0.21 ) $ (0.30 ) $ (0.46 ) $ 0.13 $ 0.08 $ 0.10 $ 0.10 Diluted net (loss) income per share $ (0.38 ) $ (0.21 ) $ (0.30 ) $ (0.46 ) $ 0.13 $ 0.08 $ 0.10 $ 0.10 * Our results for the year ended January 2, 2016 include the results of Silicon Image for the approximately 10 -month period from March 11, 2015 through January 2, 2016 . The first quarter of fiscal 2015 ended on April 4, 2015. Results presented for prior fiscal quarters are those historically reported for Lattice only. ** The fourth quarter of 2014 was a 14-week quarter as compared to the other quarters in 2015 and 2014, which were based on our standard 13-week quarter. |
Nature of Operations and Sign31
Nature of Operations and Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 02, 2016 | |
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 2015 was a 52-week year that ended January 2, 2016 . Our fiscal 2014 was a 53-week year, with a 14-week fourth quarter, that ended January 3, 2015. Our fiscal 2013, 2012, and 2011 were 52-week years that ended December 28, 2013, December 29, 2012, December 31, 2011, respectively. Our fiscal 2016 will be a 52-week year and will end on December 31, 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 and Presentation The accompanying Consolidated Financial Statements include the accounts of Lattice and its subsidiaries after the elimination of all intercompany balances and transactions. Our results for the year ended January 2, 2016 include the results of Silicon Image for the approximately 10 -month period from March 11, 2015 through January 2, 2016 . Results presented for prior fiscal years are those historically reported for Lattice only. Certain balances in prior fiscal years have been reclassified to conform to the presentation adopted in the current year. Interest expense has been reclassified to be reported separately from Other (expense) income, net. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts and classification of assets, such as marketable securities, accounts receivable, inventory, 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 assets and liabilities at the date of the financial statements, amounts used in acquisition valuations and purchase accounting, and the reported amounts of product revenue, licensing and services revenue, and expenses during the fiscal periods presented. Actual results could differ from those estimates. |
Cash Equivalents and Marketable Securities | 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 investments, as defined by U.S. GAAP, and record unrealized gains or losses to Accumulated other comprehensive loss on our Consolidated Balance Sheets, unless losses are considered other than temporary, in which case, those are recorded directly to the Consolidated Statements of Operations and Statements of Comprehensive (Loss) Income. 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. In the past we have also invested in auction rate securities. We value these instruments at their fair value and monitor the 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, we record an impairment charge and establish 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.” 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 (expense) income, 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 mitigate foreign currency exchange rate risk by entering into foreign currency forward exchange contracts. We had forward contracts for Japanese yen of $3.3 million and $4.2 million at January 2, 2016 and January 3, 2015, respectively. Two contracts outstanding at January 2, 2016 settled in January 2016 and the other four contracts will settle in June 2016 . One of the contracts outstanding at January 3, 2015 settled in January 2015 and the other five contracts settled in June 2015 . 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 (expense) income, net, with an impact of less than $0.1 million and approximately $0.4 million for the years end January 2, 2016 and January 3, 2015, respectively. |
Concentration Risk | Concentration Risk Potential exposure to concentration risk may impact revenue, trade receivables, marketable securities, and supply of wafers for our new products. Customer concentration risk may impact revenue. For fiscal years 2015, 2014, and 2013, our top five end customers constituted approximately 32% , 45% , and 44% , respectively, of our revenue. Our largest end customer in fiscal year 2015 accounted for 9% of total revenue. Our two largest end customers in fiscal year 2014 and our largest end customer in fiscal year 2013 accounted for 19% , 12% , and 22% , respectively, of total revenue. No other end customers accounted for more than 10% of total revenue during these periods. Sales through distributors have historically accounted for a significant portion of our total revenue. For each of the fiscal years 2015, 2014 and 2013, revenue attributable to resale of products by sell-through distributors as a percentage of our total revenue was 45% . Our two largest distributor groups also account for a substantial portion of our trade receivables. At January 2, 2016 and January 3, 2015, one distributor group accounted for 29% and 45% , respectively, and the other accounted for 15% and 16% , respectively, of gross trade receivables. No other distributor groups or end customers accounted for more than 10% of gross trade receivables at these dates. Concentration of credit risk with respect to trade receivables is mitigated by our credit and collection process including active management of collections, credit limits, routine credit evaluations for essentially all customers and secure transactions with letters of credit or advance payments where appropriate. Accounts receivable do not bear interest and are shown net of allowances for doubtful accounts of $0.6 million and $0.9 million at January 2, 2016 and January 3, 2015 , respectively. We regularly review our allowance for doubtful accounts and the aging of our accounts receivable. Write-offs for uncollected trade receivables have not been significant to date. We place our investments primarily through one financial institution and mitigate the concentration of credit risk by limiting the maximum portion of the investment portfolio which may be invested in any one instrument. Our investment policy defines approved credit ratings for investment securities. Investments on-hand in marketable securities consisted primarily of money market instruments, “AA” or better corporate notes and bonds and commercial paper, and U.S. government agency obligations. See Note 3 for a discussion of the liquidity attributes of our marketable securities. 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 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 product revenue, Deferred income and allowances on sales to sell-through distributors, and Net (loss) income. Licensing and Services Revenue Our licensing and services revenue is comprised of revenue from our intellectual property ("IP") core licensing activity, patent monetization activities, device management system and remote support services, and royalty and adopter fee revenue from our standards activities. These activities are complementary to our product sales and help us monetize our intellectual property and accelerate market adoption curves associated with our technology and standards. From time to time we enter into patent sale and licensing agreements to monetize and license a broad portfolio of our patented inventions. Such licensing agreements may include upfront license fees and ongoing royalties. The contractual terms of the agreements generally provide for payments of upfront license fees over an extended period of time. Revenue from such license fees is recognized when payments become due and payable as long as all other revenue recognition criteria are met, while revenue from royalties is recognized when reported. We enter into IP licensing agreements that generally provide licensees the right to incorporate our IP components into their products pursuant to terms and conditions that vary by licensee. Revenue earned under these agreements is classified as Licensing and services revenue. Our IP licensing agreements generally include multiple elements, which may include one or more off-the-shelf or customized IP licenses bundled with support services covering a fixed period of time, generally one year. If the different elements of a multiple-element arrangement qualify as separate units of accounting, we allocate the total arrangement consideration to each element based on relative selling price. Amounts allocated to off-the-shelf IP licenses are recognized at the time of sale provided the other conditions for revenue recognition have been met. Amounts allocated to the support services are deferred and recognized on a straight-line basis over the support period, generally one year. Certain licensing agreements provide for royalty payments based on agreed-upon royalty rates, which may be fixed or variable depending on the terms of the agreement. The amount of revenue we recognize is based on a specified time period or on the agreed-upon royalty rate multiplied by the number of units shipped by the customer. From time to time, we enter into IP licensing agreements that involve significant modification, customization or engineering services. Revenues derived from these contracts are accounted for using the percentage-of-completion method or completed contract method. The completed contract method is used for contracts where there is a risk of final acceptance by the customer or for short-term contracts. HDMI royalty revenue is determined by a contractual allocation formula agreed to by the members of the HDMI consortium. Evidence of an arrangement, as to HDMI royalty revenue, is deemed complete when all of the members of the HDMI consortium agree on the royalty sharing formula. Revenue Recognition and Deferred Income Product Revenue We sell our products directly to end customers, 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 original equipment manufacturers ("OEMs") and sell-in distributors is generally recognized upon shipment. Reserves for sell-in stock rotations, where applicable, are estimated primarily from historical experience and provided for at the time of 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. 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 sales 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 (loss) income, and Accounts receivable, net are adjusted to reflect the final selling price. |
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 product revenue. |
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. |
Equity Investments in Privately Held Companies | Equity Investments in Privately Held Companies Equity investments in privately-held companies are reviewed on a quarterly basis to determine if their values have been impaired and adjustments are recorded as necessary. We assess the potential impairment of these investments by considering available evidence such as the investee’s historical and projected operating results, progress towards meeting business milestones, ability to meet expense forecasts, and the prospects for industry or market in which the investee operates. Upon disposition of these investments, the specific identification method is used to determine the cost basis in computing realized gains or losses. Declines in value that are judged to be other-than-temporary are reported in interest income and other, net in the accompanying Consolidated Statements of Operations. The accounting method for equity investments in privately-held companies is assessed under ASC 323-10, Equity Method and Joint Ventures . Investments for which we have the ability to exert significant influence on the investee are accounted for under the equity method with our proportionate share of the investee’s operating results recognized through the Consolidated Statements of Operations, along with a commensurate increase or decrease in the carrying value of the investment. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets 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 Statements 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. The results of our current year assessment are detailed in Note 9. |
Valuation of Goodwill | 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. We review 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, we make a qualitative assessment to determine if it is more likely than not that the reporting unit's fair value is less than the carrying amount. If the qualitative assessment determines that it is more likely than not that the fair value is less than the 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 we 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 two reporting units: the core Lattice ("Core") business, which includes intellectual property and semiconductor devices, and Qterics, a discrete software-as-a-service business unit in the Lattice legal entity structure. Although these two operating segments constitute two reportable segments, we combine Qterics with our Core business and report them together as one reportable segment due to the immaterial nature of the Qterics segment. The results of our current year assessment are detailed in Note 9. |
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, is recorded as a part of restructuring charges. |
Research and Development | Research and Development Research and development expenses include costs for compensation and benefits, development masks, engineering wafers, depreciation, licenses, and outside engineering services. These expenditures are for the design of new products, intellectual property cores, processes, packaging, and software to support new products. Research and development costs are expensed as incurred. |
Accounting for Income Taxes | Accounting for Income Taxes Our provision for income tax is comprised of our current tax liability and changes 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 2, 2016, U.S. income taxes were not provided on approximately $3.2 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, these earnings would be subject to Chinese withholding taxes and would be subject to additional U.S. income taxes but offset by net operating loss carryforwards which have been fully reserved. Our income tax calculations are based on application of the respective U.S. federal, state or foreign tax law. Our tax filings, however, are subject to audit by the relevant tax authorities. Accordingly, we recognize tax liabilities based upon our 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 We use the Black-Scholes option pricing model to estimate the fair value of substantially all share-based awards consistent with the provisions of ASC 718, “Compensation - Stock Compensation.” Option pricing models, including the Black-Scholes model, require the use of input assumptions, including expected volatility, expected term, expected dividend rate, and expected risk-free rate of return. The assumptions for expected volatility and expected term most significantly affect the grant date fair value. We have also used a lattice-based option-pricing model to determine and fix the fair value of stock options with a market condition granted to certain executives. This valuation model incorporates a Monte-Carlo simulation, and considered the likelihood that we would achieve the market condition. The options have a two year vesting and vest between 0% and 200% of the target amount, based on the Company's relative Total Shareholder Return ("TSR") when compared to the TSR of a component of companies of the PHLX Semiconductor Sector Index over a two year period. TSR is a measure of stock price appreciation plus dividends paid, if any, in the performance period. |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests Noncontrolling interests that are redeemable at the option of the holder are classified as temporary equity in the Consolidated Balance Sheets. Differences between the carrying value and the estimated redemption value are accreted through a charge to additional paid-in capital over the redemption period using the effective interest method. |
New Accounting Pronouncements | New Accounting Pronouncements 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. While ASU 2014-09 was to be effective for annual periods and interim periods beginning after December 15, 2016, in August 2015, the FASB issued ASU 2015-14 deferring the effective date of ASU 2014-09 to periods beginning on or after December 15, 2017, with early adoption permitted for annual reporting periods beginning after December 15, 2016, and interim periods within that year. With the deferral, we intend to adopt ASU 2014-09 on December 31, 2017. 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. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Cost . The ASU requires debt issuance costs associated with a recognized debt liability to be presented on the balance sheet as a direct deduction from the carrying amount of the corresponding debt liability. This new guidance is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. An entity should apply the new guidance on a retrospective basis. We adopted this ASU effective with the first quarter of fiscal year 2015. The adoption of this accounting standard update did not have a material impact to our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory . Under this ASU, inventory will be measured at the “lower of cost and net realizable value” and options that currently exist for “market value” will be eliminated. The ASU defines net realizable value as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measure-ment. ASU 2015-11 is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. We do not expect the adoption of this accounting standard update to impact our consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments . This ASU eliminates the requirement to restate prior period financial statements for measurement period adjustments following a business combination. The new guidance requires that the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is determined. The prior period impact of the adjustment should be either presented separately on the face of the income statement or disclosed in the notes. The guidance is effective for interim and annual periods beginning after December 15, 2015. Early application is permitted and should be applied prospectively. We do not expect the adoption of this accounting standard update to impact our consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes , to eliminate the current requirements to classify deferred income tax assets and liabilities between current and noncurrent. To simplify the presentation of deferred income taxes, the amendments in this update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. For public business entities, the amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. We have elected to adopt this standard early and have implemented the change prospectively as of the fourth quarter of fiscal 2015; prior periods were not adjusted. The impact of early adoption on prior years is not significant due to our valuation allowance. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , to mainly change the accounting for investments in equity securities and financial liabilities carried at fair value as well as to modify the presentation and disclosure requirements for financial instruments. The ASU is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. Adoption of the ASU is retrospective with a cumulative adjustment to retained earnings or accumulated deficit as of the adoption date. We do not expect the adoption of this accounting standard update to impact our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), aimed at making leasing activities more transparent and comparable. The new standard requires substantially all leases be recognized by lessees on their balance sheet as a right-of-use asset and corresponding lease liability, including today’s operating leases. For public business entities, the standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. For all other entities, the standard is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early application is permitted for all entities. We are currently evaluating the impact of ASU 2016-02 on our consolidated financial statements and related disclosures. |
Nature of Operations and Sign32
Nature of Operations and Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
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) January 2, 2016 January 3, 2015 Inventory valued at published list price and held by sell-through distributors with right of return $ 47,086 $ 50,854 Allowance for distributor advances (22,290 ) (29,490 ) Deferred cost of sales related to inventory held by sell-through distributors (6,930 ) (6,418 ) Total Deferred income and allowances on sales to sell-through distributors $ 17,866 $ 14,946 |
Net (Loss) Income per Share (Ta
Net (Loss) Income per Share (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation | A reconciliation of basic and diluted Net (loss) income per share is presented below: Year Ended (in thousands, except per share data) January 2, January 3, December 28, Net (loss) income attributable to stockholders $ (159,233 ) $ 48,580 $ 22,321 Shares used in basic Net (loss) income per share 117,387 117,708 115,701 Dilutive effect of stock options, RSUs and ESPP shares — 2,537 1,380 Shares used in diluted Net (loss) income per share 117,387 120,245 117,081 Basic Net (loss) income per share $ (1.36 ) $ 0.41 $ 0.19 Diluted Net (loss) income per share $ (1.36 ) $ 0.40 $ 0.19 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
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 2, January 3, Short-term marketable securities: Maturing within one year $ 12,144 $ 60,965 Maturing between one and two years 5,824 78,268 Total marketable securities $ 17,968 $ 139,233 |
Schedule of Composition of Marketable Securities | The following table summarizes the composition of our marketable securities at fair value: (In thousands) January 2, January 3, Short-term marketable securities: Corporate and government bonds and notes $ 17,888 $ 139,233 Certificates of deposit 80 — Total marketable securities $ 17,968 $ 139,233 |
Fair Value of Financial Instr35
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value measurements as of January 2, 2016 Fair value measurements as of (In thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Short-term marketable securities $ 17,968 $ 17,888 $ 80 $ — $ 139,233 $ 139,233 $ — $ — Foreign currency forward exchange contracts, net (12 ) — (12 ) — 414 — 414 — Total fair value of financial instruments $ 17,956 $ 17,888 $ 68 $ — $ 139,647 $ 139,233 $ 414 $ — |
Schedule of Changes In Level 3 Instruments | During the fiscal years ended January 2, 2016 and January 3, 2015, the following changes occurred in our Level 3 instruments: Year Ended (In thousands) January 2, January 3, Beginning fair value of Long-term marketable securities $ — $ 5,241 Fair value of securities sold or redeemed — (5,488 ) Realized gain from increase in fair value — 247 Ending fair value of Long-term marketable securities $ — $ — |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | (In thousands) January 2, 2016 January 3, 2015 Work in progress $ 57,865 $ 49,554 Finished goods 18,031 15,371 Total inventories $ 75,896 $ 64,925 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment (In thousands) January 2, 2016 January 3, 2015 Buildings $ 3,554 $ 3,516 Computer and test equipment 148,995 158,117 Office furniture and equipment 3,880 7,028 Leasehold and building improvements 14,366 13,213 170,795 181,874 Accumulated depreciation and amortization (118,943 ) (154,078 ) $ 51,852 $ 27,796 |
Business Combinations and Goo38
Business Combinations and Goodwill Business Combination (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The fair value of the purchase price consideration consisted of the following: (In thousands) Estimated Fair Value Cash paid to Silicon Image shareholders $ 575,955 Cash paid for options and RSUs 7,383 Fair value of partially vested stock options and RSUs assumed 5,139 Total purchase consideration $ 588,477 The allocation of the total purchase price is as follows: (In thousands) Estimated Fair Value Assets acquired: Cash, cash equivalents and short-term investments $ 157,923 Accounts receivable 30,677 Inventory 20,839 Other current assets 7,183 Property, plant and equipment 23,429 Other non-current assets 1,573 Intangible assets 192,079 Goodwill 235,401 Total assets acquired 669,104 Liabilities assumed Accounts payable and other accrued liabilities 47,735 Other current liabilities 1,252 Long-term liabilities 24,468 Redeemable noncontrolling interest 7,172 Total liabilities assumed 80,627 Fair value of net assets acquired $ 588,477 The following table presents details of the identified intangible assets acquired through the acquisition of Silicon Image: (In thousands) Asset Life in Years Fair Value Developed technology 3-5 $ 125,000 Customer relationships 4-7 29,458 Licensed technology 3-5 1,852 Patents 5 769 Total identified finite-lived intangible assets 157,079 In-process research and development indefinite 35,000 Total identified intangible assets $ 192,079 |
Business Acquisition, Pro Forma Information | The unaudited pro forma financial information for the fiscal year ended January 3, 2015 combined the historical results of the Company for the fiscal year ended January 3, 2015, the historical results of Silicon Image for the fiscal year ended January 3, 2015, and the effects of the pro forma adjustments described above. Year Ended (Dollars in thousands, except per share data) January 2, 2016 January 3, 2015 Total revenues $ 450,867 $ 624,179 Net (loss) income attributable to stockholders $ (147,436 ) $ 10,376 Basic net (loss) income per share $ (1.26 ) $ 0.09 Diluted net (loss) income per share $ (1.26 ) $ 0.09 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following table summarizes the details of our total purchased intangible assets: Weighted Average Amortization Period (in years) Gross Impairment Accumulated Amortization Intangible assets, net of amortization (In thousands) January 2, 2016 Developed technology 4.7 $ 135,700 $ (3,856 ) $ (28,384 ) $ 103,460 Customer relationships 5.5 37,258 (5,139 ) (10,156 ) 21,963 Licensed technology 2.5 2,127 — (610 ) 1,517 Patents 5 769 — (126 ) 643 Total identified finite-lived intangible assets 175,854 (8,995 ) (39,276 ) 127,583 In-process research and development indefinite 35,000 — — 35,000 Total identified intangible assets $ 210,854 $ (8,995 ) $ (39,276 ) $ 162,583 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The annual expected amortization expense of acquired intangible assets with finite lives is as follows: (In thousands) Amount 2016 $ 34,892 2017 33,275 2018 26,793 2019 24,009 2020 6,248 Thereafter 2,366 Total $ 127,583 |
Finite-lived Intangible Assets Amortization Expense | We recorded amortization expense associated with these intangible assets on the Consolidated Statements of Operations as follows: Year Ended (In thousands) January 2, 2016 January 3, 2015 December 28, 2013 Research and development $ 731 $ — $ — Amortization of acquired intangible assets 28,849 2,948 2,960 $ 29,580 $ 2,948 $ 2,960 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Leases [Abstract] | |
Operating Leases of Lessee Disclosure | Future minimum lease commitments at January 2, 2016 were as follows: Fiscal year Amount (In thousands) 2016 $ 8,964 2017 9,025 2018 6,859 2019 4,587 2020 4,533 Thereafter 23,541 $ 57,509 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The domestic and foreign components of (Loss) income before income taxes were as follows: Year Ended (In thousands) January 2, 2016 January 3, 2015 December 28, 2013 Domestic $ (92,989 ) $ 6,292 $ 6,293 Foreign (33,464 ) 36,649 20,193 (Loss) income before taxes $ (126,453 ) $ 42,941 $ 26,486 |
Schedule of Components of Income Tax Expense (Benefit) | The components of the income tax expense (benefit) are as follows: Year Ended (In thousands) January 2, January 3, December 28, Current: Federal $ 968 $ 329 $ 251 State 80 5 (527 ) Foreign 10,634 1,944 1,616 11,682 2,278 1,340 Deferred: Federal 18,713 (7,416 ) 2,549 State 2,318 (513 ) 342 Foreign (173 ) 12 (66 ) 20,858 (7,917 ) 2,825 Income tax expense (benefit) $ 32,540 $ (5,639 ) $ 4,165 |
Schedule of Effective Income Tax Rate Reconciliation | Income tax expense (benefit) 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 2, January 3, December 28, % % % Statutory federal rate (35) 35 35 Adjustments for tax effects of: State taxes, net (6) 1 2 Research and development credits (3) (9) (11) Stock compensation 1 1 3 Foreign rate differential 12 (25) (20) Foreign dividends 5 1 — Foreign withholding taxes 3 — — Capital loss expiration — 7 2 Other permanent 4 — — Goodwill impairment 4 — — Valuation allowance 46 (23) 6 Change in uncertain tax benefit accrual (8) 1 (1) Tax rate change 3 (4) (1) Other — 2 1 Effective income tax rate 26 (13) 16 |
Schedule of Deferred Tax Assets and Liabilities | The components of our net deferred tax assets are as follows: (In thousands) January 2, January 3, Deferred tax assets: Accrued expenses and reserves $ 5,690 $ 5,416 Inventory 303 — Deferred Revenue 3,177 — Stock-based and deferred compensation 7,674 5,530 Intangible assets 16,959 9,841 Fixed assets — 983 Net operating loss carry forwards 131,829 96,543 Tax credit carry forwards 87,909 40,588 Capital loss carry forwards 1,262 4,142 Other 2,458 220 257,261 163,263 Less: valuation allowance (252,578 ) (141,215 ) Net deferred tax assets 4,683 22,048 Deferred tax liabilities: Fixed Assets 791 — Other 3,734 717 Total deferred tax liabilities 4,525 717 Net deferred tax assets $ 158 $ 21,331 |
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 2015, 2014 and 2013: (In thousands) Amount 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 Additions based on tax positions related to the current year 4,381 Additions based on tax positions of prior years — Additions due to acquisition 41,083 Reductions for tax positions of prior years (14,958 ) Reduction as a result of lapse of applicable statute of limitations (972 ) Balance at January 2, 2016 48,207 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
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 Systems & Engineering Tools* Other Total Balance at December 29, 2012 $ 2,373 $ 793 $ — $ 258 $ 3,424 Restructuring charges 109 224 — 253 586 Costs paid or otherwise settled (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 Costs paid or otherwise settled (8 ) (341 ) — (18 ) (367 ) Adjustments to prior restructuring costs (9 ) 15 — 1 7 Balance at January 3, 2015 $ — $ 43 — $ 139 $ 182 Restructuring charges 12,861 2,667 3,040 671 19,239 Costs paid or otherwise settled (9,165 ) (1,705 ) (2,663 ) (810 ) (14,343 ) Adjustments to prior restructuring costs — — — — — Balance at January 2, 2016 $ 3,696 $ 1,005 $ 377 $ — $ 5,078 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended | |
Jan. 02, 2016 | Jan. 03, 2015 | |
Debt Disclosure [Abstract] | ||
Schedule of Long-term Debt Instruments | The carrying value of the Term Loan is reflected in our Consolidated Balance Sheets as follows: (in thousands) January 2, 2016 January 3, 2015 Principal amount $ 347,375 $ — Unamortized original issue discount and debt issuance costs (8,948 ) — Less: Current portion of long-term debt (7,557 ) — Long-term debt $ 330,870 $ — | |
Interest Income and Interest Expense Disclosure | Interest expense related to the Term Loan was included in Interest expense on the Consolidated Statements of Operations as follows: Year Ended (in thousands) January 2, 2016 January 3, 2015 December 28, 2013 Contractual interest $ 15,225 — — Amortization of debt issuance costs and discount 2,835 — — Total Interest expense related to the Term Loan $ 18,060 $ — $ — | |
Future principal payments | As of January 2, 2016, expected future principal payments on the Term Loan were as follows: Fiscal year (in thousands) 2016 $ 10,500 2017 56,173 2018 82,773 2019 107,396 2020 69,040 Thereafter 21,493 $ 347,375 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
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 2, January 3, December 28, Line item: Cost of products sold $ 1,416 $ 819 $ 627 Research and development 9,141 5,176 3,916 Selling, general, and administrative 6,793 6,807 4,979 Acquisition related charges 4,293 — — Total stock-based compensation $ 21,643 $ 12,802 $ 9,522 |
Schedule of Share-based Payment Award, Stock Options and Employee Stock Purchase Plan, Valuation Assumptions | The following table summarizes the assumptions used in the valuation of stock option and ESPP compensation for fiscal years 2015, 2014, and 2013: Year Ended January 2, January 3, December 28, Employee and Director Stock Options Expected volatility 43.6% to 47.3% 45.4% to 50.4% 51.4% to 54.3% Risk-free interest rate 1.4% to 1.7% 1.5% to1.7% 0.7% to 1.0% Expected term (years) 4.08 to 4.75 4.1 to 4.7 years 4.1 to 4.5 years Dividend yield —% —% —% Employee Stock Purchase Plan Weighted average expected volatility 33.6% 38.7% 48.0% Weighted average risk-free interest rate 0.12% 0.08% 0.11% Expected term (years) 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 2, 2016: (Shares and aggregate intrinsic value in thousands) Shares Weighted Weighted average Aggregate Balance, January 3, 2015 9,369 $ 5.45 Grants as a result of Acquisition 2,087 4.63 Granted 2,348 5.68 Exercised (1,159 ) 3.95 Forfeited or expired (1,201 ) 5.77 Balance, January 2, 2016 11,444 $ 5.46 Vested and expected to vest at January 2, 2016 11,444 $ 5.46 4.26 $ 12,719 Exercisable, January 2, 2016 6,692 $ 5.32 3.26 $ 8,256 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table summarizes the assumptions used in the valuation of stock options and RSUs with a market condition for fiscal years 2015 and 2014. No stock options or RSUs with a market condition were granted in fiscal year 2013: Year Ended January 2, January 3, Executive stock options with a market condition Expected volatility 44% to 46% n/a Risk-free interest rate 1.4% n/a Expected term (years) 4.5 n/a Dividend yield —% n/a Executive RSUs with a market condition Expected volatility 36.9% 53.5% Risk-free interest rate 0.6% 2.2% Expected term (years) 2.0 0.24 Dividend yield —% —% |
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes our RSU activity for the year ended January 2, 2016: (Shares in thousands) Shares Weighted average grant date fair value Balance at January 3, 2015 2,021 $ 6.66 Grants as a result of Acquisition 2,025 5.37 Granted 3,203 5.92 Vested (1,624 ) 6.04 Forfeited (868 ) 6.02 Balance at January 2, 2016 4,757 $ 5.95 |
Valuation and Qualifying Acco45
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
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 Balance received through acquisition Charged (Credit) to Charged to Write-offs Balance at end Fiscal year ended January 2, 2016 Allowance for deferred taxes 141,215 52,481 58,658 224 — 252,578 Allowance for doubtful accounts 875 — (438 ) 189 (5 ) 621 Allowance for warranty expense 81 136 153 — — 370 142,171 52,617 58,373 413 (5 ) 253,569 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 |
Segment and Geographic Inform46
Segment and Geographic Information (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
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) January 2, 2016 January 3, 2015 December 28, 2013 United States: $ 33,677 8% $ 30,848 8% $ 28,506 9% China 147,688 36 159,155 43 148,018 45 Europe 55,596 14 59,041 16 47,459 14 Japan 44,067 11 31,207 9 26,538 8 Taiwan 31,181 8 6,691 2 6,708 2 Other Asia 85,598 21 69,778 19 64,425 19 Other Americas 8,159 2 9,407 3 10,871 3 Total foreign revenue 372,289 92 335,279 92 304,019 91 Total revenue $ 405,966 100% $ 366,127 100% $ 332,525 100% |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | Our property and equipment, net by country at the end of each period was as follows: (In thousands) January 2, 2016 January 3, 2015 United States 25,615 14,250 China 14,998 5,626 Philippines 3,948 3,658 Taiwan 3,677 405 India 1,470 248 Japan 1,211 1,732 Other 933 1,877 Total foreign property and equipment, net 26,237 13,546 Total property and equipment, net 51,852 27,796 |
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 2015 2014 2013 Arrow Electronics Inc. (including Nu Horizons Electronics) 20 % 24 % 23 % Weikeng Group 12 10 12 All others 13 11 10 All sell-through distributors 45 % 45 % 45 % |
Quarterly Financial Data (Una47
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | A summary of the Company's consolidated quarterly results of operations is as follows: 2015 * 2014 (In thousands, except per share data) Q4 Q3 Q2 Q1 Q4 ** Q3 Q2 Q1 Revenue $ 101,194 $ 109,715 $ 106,460 $ 88,597 $ 83,600 $ 86,570 $ 99,320 $ 96,637 Gross margin 54,102 59,849 58,126 47,832 46,263 50,811 54,975 54,138 Restructuring charges 3,459 6,818 4,068 4,894 1 2 3 11 Net (loss) income attributable to stockholders (45,454 ) (24,862 ) (35,570 ) (53,347 ) 15,419 9,406 11,771 11,984 Basic net (loss) income per share $ (0.38 ) $ (0.21 ) $ (0.30 ) $ (0.46 ) $ 0.13 $ 0.08 $ 0.10 $ 0.10 Diluted net (loss) income per share $ (0.38 ) $ (0.21 ) $ (0.30 ) $ (0.46 ) $ 0.13 $ 0.08 $ 0.10 $ 0.10 * Our results for the year ended January 2, 2016 include the results of Silicon Image for the approximately 10 -month period from March 11, 2015 through January 2, 2016 . The first quarter of fiscal 2015 ended on April 4, 2015. Results presented for prior fiscal quarters are those historically reported for Lattice only. ** The fourth quarter of 2014 was a 14-week quarter as compared to the other quarters in 2015 and 2014, which were based on our standard 13-week quarter. |
Nature of Operations and Sign48
Nature of Operations and Significant Accounting Policies (Details) $ in Thousands | 9 Months Ended | 10 Months Ended | 12 Months Ended | ||
Oct. 03, 2015 | Jan. 02, 2016USD ($)customerContract | Jan. 02, 2016USD ($)segmentcustomerContract | Jan. 03, 2015USD ($)customerContract | Dec. 28, 2013customer | |
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||
Concentration percentage | 45.00% | 45.00% | 45.00% | ||
Number of Operating Segments | segment | 2 | ||||
Award Requisite Service Period | 2 years | ||||
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |||||
Fair value adjustment through earnings on foreign exchange contracts not designated as hedges | $ 100 | $ 400 | |||
Risks and Uncertainties [Abstract] | |||||
Allowance for doubtful accounts | $ 600 | 600 | 900 | ||
Deferred Revenue and Credits [Abstract] | |||||
Inventory valued at published list price and held by sell-through distributors with right of return | 47,086 | 47,086 | 50,854 | ||
Allowance for distributor advances | (22,290) | (22,290) | (29,490) | ||
Deferred cost of sales related to inventory held by sell-through distributors | (6,930) | (6,930) | (6,418) | ||
Total Deferred income and allowances on sales to sell-through distributors | 17,866 | 17,866 | $ 14,946 | ||
Property, Plant and Equipment [Abstract] | |||||
Undistributed earnings of our Chinese subsidiary | $ 3,200 | $ 3,200 | |||
Number of industry segments | segment | 1 | ||||
Building | |||||
Property, Plant and Equipment [Abstract] | |||||
Estimated useful lives of PP&E | 30 years | ||||
Sales Revenue, Net | Customer Concentration Risk | |||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||
Concentration number of customers | customer | 5 | 5 | 5 | 5 | |
Concentration percentage | 32.00% | 45.00% | 44.00% | ||
Sell-Through Distributors | Customer Concentration Risk | |||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||
Concentration percentage | 45.00% | 45.00% | 45.00% | ||
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 | |||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||
Award Requisite Service Period | 10 years | ||||
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 | $ 3,300 | $ 3,300 | $ 4,200 | ||
Derivative, Number of Instruments Held | Contract | 2 | 2 | 1 | ||
Not designated as hedges for accounting purposes | Derivative One | |||||
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |||||
Derivative, Number of Instruments Held | Contract | 4 | 4 | 5 | ||
Customer A | Sales Revenue, Net | Customer Concentration Risk | |||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||
Concentration percentage | 9.00% | 19.00% | 22.00% | ||
Customer B | Sales Revenue, Net | Customer Concentration Risk | |||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||
Concentration percentage | 12.00% | ||||
Sell-Through Distributor A | Sell-Through Distributors | Customer Concentration Risk | |||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||
Concentration percentage | 29.00% | 45.00% | |||
Sell-Through Distributor B | Sell-Through Distributors | Customer Concentration Risk | |||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||
Concentration percentage | 15.00% | 16.00% | |||
Performance Shares | Minimum | |||||
Property, Plant and Equipment [Abstract] | |||||
Award Vesting Rights, Percentage | 0.00% | ||||
Performance Shares | Maximum | |||||
Property, Plant and Equipment [Abstract] | |||||
Award Vesting Rights, Percentage | 200.00% | ||||
Silicon Image, Inc | |||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||
Fiscal Period Duration | 10 months |
Net (Loss) Income per Share (De
Net (Loss) Income per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Net (loss) income attributable to stockholders | $ (45,454) | $ (24,862) | $ (35,570) | $ (53,347) | $ 15,419 | $ 9,406 | $ 11,771 | $ 11,984 | $ (159,233) | $ 48,580 | $ 22,321 |
Shares used in basic Net (loss) income per share | 117,387 | 117,708 | 115,701 | ||||||||
Dilutive effect of stock options, RSUs and ESPP shares | 0 | 2,537 | 1,380 | ||||||||
Shares used in diluted Net (loss) income per share | 117,387 | 120,245 | 117,081 | ||||||||
Basic Net (loss) income per share | $ (0.38) | $ (0.21) | $ (0.30) | $ (0.46) | $ 0.13 | $ 0.08 | $ 0.10 | $ 0.10 | $ (1.36) | $ 0.41 | $ 0.19 |
Diluted Net (loss) income per share | $ (0.38) | $ (0.21) | $ (0.30) | $ (0.46) | $ 0.13 | $ 0.08 | $ 0.10 | $ 0.10 | $ (1.36) | $ 0.40 | $ 0.19 |
Stock options, RSU's and ESPP shares | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Aggregate antidilutive shares excluded from computation of diluted net (loss) income per share | 9,200 | 2,600 | 7,800 |
Marketable Securities Compositi
Marketable Securities Composition (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2016 | Jan. 03, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Term of maturities of investments considered short-term | 2 years | |
Short-term marketable securities | $ 17,968 | $ 139,233 |
Short-term marketable securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Short-term marketable securities | 17,968 | 139,233 |
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 | 12,144 | 60,965 |
Maturing between one and two years | 5,824 | 78,268 |
Short-term marketable securities | 17,888 | 139,233 |
Short-term marketable securities | Certificates of deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Short-term marketable securities | $ 80 | $ 0 |
Fair Value of Financial Instr51
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jan. 02, 2016 | Jan. 03, 2015 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Short-term marketable securities | $ 17,968 | $ 139,233 |
Short Term | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Short-term marketable securities | 17,968 | 139,233 |
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 | 17,888 | 139,233 |
Level 1 | Short Term | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Short-term marketable securities | 17,888 | 139,233 |
Level 2 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Foreign currency forward exchange contracts, net | (12) | 414 |
Total fair value of financial instruments | 68 | 414 |
Level 2 | Short Term | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Short-term marketable securities | 80 | 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 | 0 |
Level 3 | Short Term | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Short-term marketable securities | 0 | 0 |
Estimate of Fair Value Measurement | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Foreign currency forward exchange contracts, net | (12) | 414 |
Total fair value of financial instruments | 17,956 | 139,647 |
Estimate of Fair Value Measurement | Short Term | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Short-term marketable securities | $ 17,968 | $ 139,233 |
Fair Value of Financial Instr52
Fair Value of Financial Instruments Unobservable Inputs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 28, 2014 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Ending fair value of Long-term marketable securities | $ 5,200 | |||
Marketable Securities, Realized Gain (Loss) | $ 1,700 | |||
Realized gain on sale of auction rate securities, previously unrealized, net of tax | $ 0 | 1,147 | $ 0 | |
Level 1 | Short Term | Maximum | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Unrealized loss | 100 | 400 | ||
Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning fair value of Long-term marketable securities | 0 | 5,241 | ||
Fair value of securities sold or redeemed | (5,500) | 0 | (5,488) | |
Realized gain from increase in fair value | 0 | 247 | ||
Ending fair value of Long-term marketable securities | $ 0 | $ 0 | $ 5,241 | |
Federally-Insured OR FFELP Guaranteed Student Loan Auction Rate Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Par Value Of Available For Sale Securities | $ 5,700 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jan. 02, 2016 | Jan. 03, 2015 |
Inventory Disclosure [Abstract] | ||
Work in progress | $ 57,865 | $ 49,554 |
Finished goods | 18,031 | 15,371 |
Total inventories | $ 75,896 | $ 64,925 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2014 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 170,795 | $ 181,874 | ||
Accumulated depreciation and amortization | (118,943) | (154,078) | ||
Property and equipment, net | 51,852 | 27,796 | ||
Depreciation expense | 18,100 | 11,400 | $ 11,200 | |
Proceeds from sale of land and building | 0 | 14,625 | $ 0 | |
Buildings | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 3,554 | 3,516 | ||
Computer and test equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 148,995 | 158,117 | ||
Office furniture and equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 3,880 | 7,028 | ||
Leasehold and building improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 14,366 | $ 13,213 | ||
Land and Building | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 30,900 | |||
Accumulated depreciation and amortization | (17,900) | |||
Proceeds from sale of land and building | 14,600 | |||
Gain (Loss) on Disposition of Property Plant Equipment | $ 1,600 | |||
Lease term | 8 years | |||
Restructuring | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | $ 1,500 |
Business Combinations and Goo55
Business Combinations and Goodwill Consideration (Details) - Silicon Image, Inc $ in Thousands | Mar. 10, 2015USD ($) |
Business Acquisition [Line Items] | |
Cash paid to Silicon Image shareholders | $ 575,955 |
Cash paid for options and RSUs | 7,383 |
Fair value of partially vested stock options and RSUs assumed | 5,139 |
Total purchase consideration | $ 588,477 |
Business Combinations and Goo56
Business Combinations and Goodwill (Allocation of the Purchase Price) (Details) - USD ($) $ in Thousands | Jan. 02, 2016 | Oct. 03, 2015 | Mar. 10, 2015 | Jan. 03, 2015 | Dec. 04, 2014 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 267,549 | $ 44,808 | |||
Redeemable noncontrolling interest | $ 7,600 | ||||
Silicon Image, Inc | |||||
Business Acquisition [Line Items] | |||||
Cash, cash equivalents and short-term investments | $ 157,923 | ||||
Accounts receivable | 30,677 | ||||
Inventory | 20,839 | ||||
Other current assets | 7,183 | ||||
Property, plant and equipment | 23,429 | ||||
Other non-current assets | 1,573 | ||||
Intangible assets | 192,079 | ||||
Goodwill | $ 235,400 | 235,401 | |||
Total assets acquired | 669,104 | ||||
Accounts payable and other accrued liabilities | 47,735 | ||||
Other current liabilities | 1,252 | ||||
Long-term liabilities | 24,468 | ||||
Redeemable noncontrolling interest | 7,172 | $ 7,000 | |||
Total liabilities assumed | 80,627 | ||||
Fair value of net assets acquired | $ 588,477 |
Business Combinations and Goo57
Business Combinations and Goodwill (Identified Intangible Assets Acquired) (Details) - Silicon Image, Inc $ in Thousands | Mar. 10, 2015USD ($) |
Business Acquisition [Line Items] | |
Intangible assets | $ 157,079 |
Total identified intangible assets | 192,079 |
Developed technology | |
Business Acquisition [Line Items] | |
Intangible assets | 125,000 |
Customer relationships | |
Business Acquisition [Line Items] | |
Intangible assets | 29,458 |
Licensed technology | |
Business Acquisition [Line Items] | |
Intangible assets | $ 1,852 |
Patents | |
Business Acquisition [Line Items] | |
Asset Life in Years | 5 years |
Intangible assets | $ 769 |
In-process research and development | |
Business Acquisition [Line Items] | |
In-process research and development | $ 35,000 |
Minimum | Developed technology | |
Business Acquisition [Line Items] | |
Asset Life in Years | 3 years |
Minimum | Customer relationships | |
Business Acquisition [Line Items] | |
Asset Life in Years | 4 years |
Minimum | Licensed technology | |
Business Acquisition [Line Items] | |
Asset Life in Years | 3 years |
Maximum | Developed technology | |
Business Acquisition [Line Items] | |
Asset Life in Years | 5 years |
Maximum | Customer relationships | |
Business Acquisition [Line Items] | |
Asset Life in Years | 7 years |
Maximum | Licensed technology | |
Business Acquisition [Line Items] | |
Asset Life in Years | 5 years |
Business Combinations and Goo58
Business Combinations and Goodwill (Pro Forma Financial Information) (Details) (Details) - Silicon Image, Inc - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 02, 2016 | Jan. 03, 2015 | |
Business Acquisition [Line Items] | ||
Total revenues | $ 450,867 | $ 624,179 |
Net (loss) income attributable to stockholders | $ (147,436) | $ 10,376 |
Basic net (loss) income per share (usd per share) | $ (1.26) | $ 0.09 |
Diluted net (loss) income per share (usd per share) | $ (1.26) | $ 0.09 |
Business Combinations and Goo59
Business Combinations and Goodwill (Narrative) (Details) - USD ($) $ in Thousands | Mar. 10, 2015 | Jan. 02, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 04, 2014 |
Business Acquisition [Line Items] | ||||||
Impairment of goodwill and intangible assets | $ 21,655 | $ 0 | $ 0 | |||
Goodwill | $ 267,549 | 267,549 | $ 44,808 | |||
Silicon Image, Inc | ||||||
Business Acquisition [Line Items] | ||||||
Interests acquired | 100.00% | 7.00% | ||||
Business combination, pro forma information, revenue of acquiree since acquisition date, actual | 135,600 | |||||
Business combination, pro forma information, earnings or loss of acquiree since acquisition date, actual | 77,000 | |||||
BusinesscCombination, acquisition related costs | 8,200 | |||||
Goodwill | $ 235,401 | 235,400 | 235,400 | |||
Fair value of partially vested stock options and RSUs assumed | $ 5,139 | |||||
SiliconBlue Technologies Ltd. and Silicon Image, Inc | ||||||
Business Acquisition [Line Items] | ||||||
Impairment of goodwill and intangible assets | 12,700 | |||||
Prior Acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 44,800 | 44,800 | ||||
Scenario, Adjustment | Silicon Image, Inc | ||||||
Business Acquisition [Line Items] | ||||||
BusinesscCombination, acquisition related costs | 30,600 | |||||
Qterics | ||||||
Business Acquisition [Line Items] | ||||||
Impairment of goodwill and intangible assets | $ 12,700 |
Intangible Assets (Intangible A
Intangible Assets (Intangible Assets) (Details) - USD ($) $ in Thousands | Mar. 10, 2015 | Jan. 02, 2016 | Jan. 02, 2016 | Jan. 03, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, net of amortization | $ 127,583 | $ 127,583 | ||
Impairment | (9,000) | (8,995) | ||
Intangible assets, net of amortization | 162,583 | 162,583 | $ 9,537 | |
SiliconBlue Technologies Ltd. and Silicon Image, Inc | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, net of amortization | 127,583 | 127,583 | ||
Gross | 210,854 | 210,854 | ||
Gross | 175,854 | 175,854 | ||
Accumulated Amortization | (39,276) | (39,276) | ||
Intangible assets, net of amortization | 162,583 | 162,583 | ||
SiliconBlue Technologies Ltd. and Silicon Image, Inc | Developed technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Asset Life in Years | 4 years 8 months 12 days | |||
Intangible assets, net of amortization | 103,460 | 103,460 | ||
Gross | 135,700 | 135,700 | ||
Impairment | (3,856) | |||
Accumulated Amortization | (28,384) | (28,384) | ||
SiliconBlue Technologies Ltd. and Silicon Image, Inc | Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Asset Life in Years | 5 years 6 months | |||
Intangible assets, net of amortization | 21,963 | 21,963 | ||
Gross | 37,258 | 37,258 | ||
Impairment | (5,139) | |||
Accumulated Amortization | (10,156) | (10,156) | ||
SiliconBlue Technologies Ltd. and Silicon Image, Inc | Licensed technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Asset Life in Years | 2 years 6 months | |||
Intangible assets, net of amortization | 1,517 | 1,517 | ||
Gross | 2,127 | 2,127 | ||
Impairment | 0 | |||
Accumulated Amortization | (610) | (610) | ||
SiliconBlue Technologies Ltd. and Silicon Image, Inc | Patents | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Asset Life in Years | 5 years | |||
Intangible assets, net of amortization | 643 | 643 | ||
Gross | 769 | 769 | ||
Impairment | 0 | |||
Accumulated Amortization | (126) | (126) | ||
In-process research and development | SiliconBlue Technologies Ltd. and Silicon Image, Inc | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
In-process research and development | $ 35,000 | 35,000 | ||
Impairment | $ 0 |
Intangible Assets (Amortization
Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of acquired intangible assets | $ 29,580 | $ 2,948 | $ 2,960 |
SiliconBlue Technologies Ltd. and Silicon Image, Inc | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of acquired intangible assets | 28,849 | 2,948 | 2,960 |
Research and development | SiliconBlue Technologies Ltd. and Silicon Image, Inc | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of acquired intangible assets | $ 731 | $ 0 | $ 0 |
Intangible Assets (Intangible62
Intangible Assets (Intangible Assets, Amortization Expense) (Details) $ in Thousands | Jan. 02, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,016 | $ 34,892 |
2,017 | 33,275 |
2,018 | 26,793 |
2,019 | 24,009 |
2,020 | 6,248 |
Thereafter | 2,366 |
Intangible assets, net of amortization | $ 127,583 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jan. 02, 2016 | Jan. 02, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Impairment | $ 9,000 | $ 8,995 |
SiliconBlue Technologies Ltd. and Silicon Image, Inc | Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment | 3,856 | |
SiliconBlue Technologies Ltd. and Silicon Image, Inc | Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment | $ 5,139 |
Impairment of Goodwill and In64
Impairment of Goodwill and Intangible Assets (Details) | 3 Months Ended | 12 Months Ended | ||
Jan. 02, 2016USD ($) | Jan. 02, 2016USD ($)segment | Jan. 03, 2015USD ($) | Dec. 28, 2013USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||
Number of Operating Segments | segment | 2 | |||
Number of industry segments | segment | 1 | |||
Impairment of goodwill and intangible assets | $ 21,655,000 | $ 0 | $ 0 | |
Impairment | $ 9,000,000 | 8,995,000 | ||
SiliconBlue Technologies Ltd. and Silicon Image, Inc | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of goodwill and intangible assets | 12,700,000 | |||
SiliconBlue Technologies Ltd. and Silicon Image, Inc | Developed technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment | 3,856,000 | |||
SiliconBlue Technologies Ltd. and Silicon Image, Inc | Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment | 5,139,000 | |||
Lattice | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of goodwill and intangible assets | 0 | |||
Qterics | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of goodwill and intangible assets | $ 12,700,000 | |||
Goodwill and Intangible Asset Impairment, Percent | 92.00% |
Equity Method Investment (Detai
Equity Method Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jan. 02, 2016 | Oct. 03, 2015 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Payments to acquire securities non-marketable securities | $ 3,000 | ||||
Cost method investment, ownership percentage | 15.80% | ||||
Equity method investment, ownership percentage | 22.70% | 22.70% | |||
Cost method investments, original cost | $ 2,000 | $ 5,000 | $ 0 | $ 0 | |
Equity method investments | 5,000 | 5,000 | |||
Equity in net loss of an unconsolidated affiliate, net of tax | (492) | $ 0 | $ 0 | ||
Other Noncurrent Assets | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Equity method investments | $ 4,500 | $ 4,500 |
Accounts Payable and Accrued 66
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Jan. 02, 2016 | Jan. 03, 2015 |
Related Party Transaction [Line Items] | ||
Accounts payable and accrued expenses (includes restructuring) | $ 74,298 | $ 32,171 |
Consortia | ||
Related Party Transaction [Line Items] | ||
Accounts payable and accrued expenses (includes restructuring) | $ 16,600 |
Redeemable Noncontrolling Int67
Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Jan. 02, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | Oct. 03, 2015 | Mar. 10, 2015 | Dec. 04, 2014 | |
Business Acquisition [Line Items] | |||||||
Redeemable noncontrolling interest | $ 7,600 | ||||||
Redeemable Noncontrolling Interest, Equity, Range of Estimated Fair Value, High | $ 21,000 | $ 21,000 | |||||
Noncontrolling Interest, Redemption Price, Fair Value, Percentage | 130.00% | 130.00% | |||||
Redeemable Noncontrolling Interest, Redemption Period | 3 years | ||||||
Payments for Repurchase of Redeemable Noncontrolling Interest | $ 900 | $ 867 | $ 0 | $ 0 | |||
Noncontrolling Interest, Period Increase (Decrease) | 400 | ||||||
Redemption of noncontrolling interest | $ 6,700 | $ 6,053 | |||||
Silicon Image, Inc | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | 7.00% | |||||
Redeemable noncontrolling interest | $ 7,172 | $ 7,000 | |||||
Redeemable Noncontrolling Interest, Equity, Fair Value | $ 7,200 |
Lease Obligations (Details)
Lease Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Leases [Abstract] | |||
Rental expense under operating leases | $ 7,400 | $ 4,500 | $ 4,600 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,016 | 8,964 | ||
2,017 | 9,025 | ||
2,018 | 6,859 | ||
2,019 | 4,587 | ||
2,020 | 4,533 | ||
Thereafter | 23,541 | ||
Total future minimum lease commitments | $ 57,509 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Results of Operations, Income before Income Taxes [Abstract] | |||
Domestic | $ (92,989) | $ 6,292 | $ 6,293 |
Foreign | (33,464) | 36,649 | 20,193 |
(Loss) income before income taxes and equity in net loss of an unconsolidated affiliate | (126,453) | 42,941 | 26,486 |
Current: | |||
Federal | 968 | 329 | 251 |
State | 80 | 5 | (527) |
Foreign | 10,634 | 1,944 | 1,616 |
Current income tax (provision) benefit | 11,682 | 2,278 | 1,340 |
Deferred: | |||
Federal | 18,713 | (7,416) | 2,549 |
State | 2,318 | (513) | 342 |
Foreign | (173) | 12 | (66) |
Deferred income tax (provision) benefit | 20,858 | (7,917) | 2,825 |
Income tax expense (benefit) | $ 32,540 | $ (5,639) | $ 4,165 |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Statutory federal rate | (35.00%) | 35.00% | 35.00% |
State taxes, net | (6.00%) | 1.00% | 2.00% |
Research and development credits | (3.00%) | (9.00%) | (11.00%) |
Stock compensation | 1.00% | 1.00% | 3.00% |
Foreign rate differential | 12.00% | (25.00%) | (20.00%) |
Foreign dividends | 5.00% | 1.00% | 0.00% |
Foreign withholding taxes | 3.00% | 0.00% | 0.00% |
Capital loss expiration | (0.00%) | 7.00% | 2.00% |
Other permanent | 4.00% | 0.00% | 0.00% |
Goodwill impairment | 4.00% | 0.00% | 0.00% |
Valuation allowance | 46.00% | (23.00%) | 6.00% |
Change in uncertain tax benefit accrual | (8.00%) | 1.00% | (1.00%) |
Tax rate change | 3.00% | (4.00%) | (1.00%) |
Other | 0.00% | 2.00% | 1.00% |
Effective income tax rate | 26.00% | (13.00%) | 16.00% |
Income Taxes (Discussion of Val
Income Taxes (Discussion of Valuation Allowance and Net Deferred Tax Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jan. 03, 2015 | Jan. 02, 2016 | |
Valuation Allowance [Line Items] | ||
Resulting tax benefit from realization of the benefit of a portion of remaining deferred tax assets | $ 11,500 | |
Resulting net deferred tax asset | 21,300 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 58,700 | |
Deferred tax assets: | ||
Accrued expenses and reserves | 5,416 | 5,690 |
Inventory | 0 | 303 |
Deferred Revenue | 0 | 3,177 |
Stock-based and deferred compensation | 5,530 | 7,674 |
Intangible assets | 9,841 | 16,959 |
Fixed assets | 983 | 0 |
Net operating loss carry forwards | 96,543 | 131,829 |
Tax credit carry forwards | 40,588 | 87,909 |
Capital loss carry forwards | 4,142 | 1,262 |
Other | 220 | 2,458 |
Gross deferred tax assets | 163,263 | 257,261 |
Less: valuation allowance | (141,215) | (252,578) |
Net deferred tax assets | 22,048 | 4,683 |
Deferred tax liabilities | ||
Fixed Assets | 0 | 791 |
Other | 717 | 3,734 |
Total deferred tax liabilities | 717 | 4,525 |
Net deferred tax assets | $ 21,331 | 158 |
Do not expire | ||
Valuation Allowance [Line Items] | ||
Tax credit carryforwards | 53,400 | |
Federal | ||
Valuation Allowance [Line Items] | ||
Operating loss carryforwards | 339,900 | |
Tax credit carryforwards | 48,200 | |
State | ||
Valuation Allowance [Line Items] | ||
Operating loss carryforwards | 239,900 | |
Tax credit carryforwards | $ 55,900 |
Income Taxes (Discussion of Unr
Income Taxes (Discussion of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | Jan. 02, 2016 | |
Income Tax Contingency [Line Items] | ||||
Undistributed earnings of our Chinese subsidiary | $ 3,200 | |||
Unrecognized tax benefits associated with uncertain tax positions | $ 18,673 | $ 22,643 | $ 21,680 | 48,207 |
Unrecognized tax benefits associated with uncertain tax positions that, if recognized, would affect the effective tax rate | 45,100 | |||
Interest and penalties associated with unrecognized tax benefits | 5,300 | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Beginning balance | 18,673 | 22,643 | 21,680 | |
Additions based on tax positions related to the current year | 4,381 | 770 | 1,600 | |
Additions based on tax positions of prior years | 0 | 0 | 68 | |
Additions due to acquisition | 41,083 | |||
Reduction for tax positions of prior years | (14,958) | (4,673) | 0 | |
Settlements | 0 | (338) | ||
Reduction as a result of lapse of applicable statute of limitations | (972) | (67) | (367) | |
Ending balance | $ 48,207 | $ 18,673 | $ 22,643 | |
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 | 1,800 | |||
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 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | $ 182 | $ 532 | $ 3,424 |
Restructuring charges | 19,239 | 10 | 586 |
Costs paid or otherwise settled | (14,343) | (367) | (3,280) |
Adjustments to prior restructuring costs | 0 | 7 | (198) |
Ending Balance | 5,078 | 182 | 532 |
Severance and related | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 0 | 17 | 2,373 |
Restructuring charges | 12,861 | 0 | 109 |
Costs paid or otherwise settled | (9,165) | (8) | (2,315) |
Adjustments to prior restructuring costs | 0 | (9) | (150) |
Ending Balance | 3,696 | 0 | 17 |
Lease termination | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 43 | 368 | 793 |
Restructuring charges | 2,667 | 1 | 224 |
Costs paid or otherwise settled | (1,705) | (341) | (740) |
Adjustments to prior restructuring costs | 0 | 15 | 91 |
Ending Balance | 1,005 | 43 | 368 |
System and Engineering Tools [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 0 | 0 | 0 |
Restructuring charges | 3,040 | 0 | 0 |
Costs paid or otherwise settled | (2,663) | 0 | 0 |
Adjustments to prior restructuring costs | 0 | 0 | 0 |
Ending Balance | 377 | 0 | 0 |
Other | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 139 | 147 | 258 |
Restructuring charges | 671 | 9 | 253 |
Costs paid or otherwise settled | (810) | (18) | (225) |
Adjustments to prior restructuring costs | 0 | 1 | (139) |
Ending Balance | $ 0 | $ 139 | $ 147 |
Restructuring Narrative (Detail
Restructuring Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | $ 3,459 | $ 6,818 | $ 4,068 | $ 4,894 | $ 1 | $ 2 | $ 3 | $ 11 | $ 19,239 | $ 17 | $ 388 |
March 2015 Plan | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 13,300 | ||||||||||
Restructuring Plan 2012 | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 100 | ||||||||||
Severance and related | September 2015 Reduction | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 5,900 | ||||||||||
Minimum | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and Related Cost, Expected Cost | 14,000 | 14,000 | |||||||||
Minimum | Severance and related | September 2015 Reduction | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and Related Cost, Expected Cost | 6,000 | 6,000 | |||||||||
Maximum | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and Related Cost, Expected Cost | 19,000 | 19,000 | |||||||||
Maximum | Severance and related | September 2015 Reduction | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and Related Cost, Expected Cost | $ 6,500 | $ 6,500 |
Long-Term Debt (Debt Schedule)
Long-Term Debt (Debt Schedule) (Details) - USD ($) | 12 Months Ended | |||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | Mar. 10, 2015 | |
Debt Instrument [Line Items] | ||||
Principal amount | $ 347,375,000 | |||
Contractual interest | 15,225,000 | $ 0 | $ 0 | |
Amortization of debt issuance costs and discount | 2,835,000 | 0 | 0 | |
Total Interest expense related to the Term Loan | 18,060,000 | 0 | $ 0 | |
Line of Credit | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Principal amount | 347,375,000 | 0 | $ 350,000,000 | |
Unamortized original issue discount and debt issuance costs | (8,948,000) | 0 | $ (3,500,000) | |
Less: Current portion of long-term debt | (7,557,000) | 0 | ||
Long-term debt | $ 330,870,000 | $ 0 |
Long-Term Debt (Future Principa
Long-Term Debt (Future Principal Payments) (Details) $ in Thousands | Jan. 02, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,016 | $ 10,500 |
2,017 | 56,173 |
2,018 | 82,773 |
2,019 | 107,396 |
2,020 | 69,040 |
Thereafter | 21,493 |
Principal amount | $ 347,375 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | Mar. 10, 2015 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 |
Debt Instrument [Line Items] | ||||
Principal amount | $ 347,375,000 | |||
Repayment of debt | $ (2,625,000) | $ 0 | $ 0 | |
Annual excess cash flow payments | 95 days | |||
Balloon payment to be paid | $ 7,000,000 | |||
Line of Credit | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 350,000,000 | 347,375,000 | 0 | |
Repayment of debt | 346,500,000 | |||
Unamortized original issue discount and debt issuance costs | 3,500,000 | 8,948,000 | $ 0 | |
Debt issuance cost | $ 8,300,000 | |||
Interest rate, effective percentage | 6.14% | |||
Periodic payment | $ 900,000 | |||
Payment, percentage | 75.00% | |||
Line of Credit | Term Loan | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Interest rate, minimum | 1.00% | |||
Basis spread on variable rate | 4.25% | |||
Minimum | Line of Credit | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Payment, percentage | 0.00% | |||
Maximum | Line of Credit | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Payment, percentage | 75.00% |
Common Stock Repurchase Progr77
Common Stock Repurchase Program (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Apr. 04, 2015 | Mar. 29, 2014 | 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 | $ 20,000,000 | |||||
Number of shares repurchased | 1,100,000 | 1,900,000 | ||||
Value of shares repurchased | $ 7,000,000 | $ 13,100,000 | ||||
Stock repurchase program authorized on February 27, 2013 | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 20,000,000 | |||||
Number of shares repurchased | 0 | 800,000 | ||||
Value of shares repurchased | $ 3,700,000 | |||||
Remaining amount under the approved program | $ 16,300,000 |
Stockholders' Equity (Employee
Stockholders' Equity (Employee and Director Stock Options, Restricted Stock and ESPP) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | May. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 21,643 | $ 12,802 | $ 9,522 | |
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 700 | |||
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 5,200,000 | |||
2012 ESPP | ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 2,300,000 | 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 | $ 400 | $ 300 | $ 200 |
Stockholders' Equity (Total Sto
Stockholders' Equity (Total Stock-based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | $ 21,643 | $ 12,802 | $ 9,522 |
Cost of products sold | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 1,416 | 819 | 627 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 9,141 | 5,176 | 3,916 |
Selling, general, and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 6,793 | 6,807 | 4,979 |
Acquisition related charges | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | $ 4,293 | $ 0 | $ 0 |
Stockholders' Equity (Employe80
Stockholders' Equity (Employee and Director Stock Options, Restricted Stock and ESPP) (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
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 | $ 10,800 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Beginning balance | 9,369,000 | ||
Grants as a result of Acquisition | 2,087,000 | ||
Granted | 2,348,000 | ||
Exercised | (1,159,000) | ||
Forfeited or expired | (1,201,000) | ||
Ending balance | 11,444,000 | 9,369,000 | |
Vested and expected to vest at end of period, Shares | 11,444,000 | ||
Exercisable at end of period, Shares | 6,692,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Beginning balance | $ 5.45 | ||
Grants as a result of Acquisition | 4.63 | ||
Granted | 5.68 | ||
Exercised | 3.95 | ||
Forfeited or expired | 5.77 | ||
Ending balance | 5.46 | $ 5.45 | |
Vested and expected to vest at end of period, Weighted average exercise price | 5.46 | ||
Exercisable at end of period, Weighted average exercise price | $ 5.32 | ||
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 3 months 4 days | ||
Vested and expected to vest at end of period, aggregate intrinsic value | $ 12,719 | ||
Exercisable at end of period, Weighted average remaining contractual term | 3 years 3 months 4 days | ||
Exercisable at end of period, aggregate intrinsic value | $ 8,256 | ||
Total intrinsic value of options exercised | 2,500 | $ 7,800 | $ 2,500 |
Total fair value of options and RSU's vested and expensed | $ 18,000 | $ 12,800 | $ 9,300 |
Grant date weighted average fair values based on fair value assumptions, options | $ 2.35 | $ 2.93 | $ 2.10 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Grants as a result of Acquisition | 2,087,000 | ||
Compensation expense | $ 21,643 | $ 12,802 | $ 9,522 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Grants as a result of Acquisition | $ 4.63 | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected volatility, percent, minimum | 43.60% | 45.40% | 51.40% |
Expected volatility, percent, maximum | 47.30% | 50.40% | 543.00% |
Risk-free interest rate, percent, minimum | 1.40% | 1.50% | 0.70% |
Risk-free interest rate, percent, maximum | 1.70% | 1.70% | 1.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Weighted average period for recognition | 4 years 2 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Ending balance | 1,622,007 | ||
Stock options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected term (years) | 4 years 29 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 (years) | 4 years 9 months | 4 years 8 months 12 days | 4 years 6 months |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected term (years) | 6 months | 6 months | 6 months |
Dividend yield | 0.00% | 0.00% | 0.00% |
Weighted average expected volatility rate (percent) | 33.60% | 38.70% | 48.00% |
Risk-free interest rate | 0.12% | 0.08% | 0.11% |
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 | $ 1.51 | $ 1.73 | $ 1.29 |
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 | $ 1.51 | $ 1.73 | $ 1.29 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected term (years) | 2 years | 2 months 27 days | |
Dividend yield | 0.00% | 0.00% | |
Risk-free interest rate | 0.60% | 2.20% | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Grants as a result of Acquisition | 2,025,000 | ||
Granted | 70,000 | 98,600 | 0 |
Ending balance | 1,056,368 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Grants as a result of Acquisition | $ 5.37 | ||
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 | $ 5.92 | ||
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 | 2,021,000 | ||
Grants as a result of Acquisition | 2,025,000 | ||
Granted, Shares | 3,203,000 | ||
Vested, Shares | (1,624,000) | ||
Compensation expense | $ 700 | ||
Forfeited, Shares | (868,000) | ||
Balance at the end of period, Shares | 4,757,000 | 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 | $ 6.66 | ||
Grants as a result of Acquisition | 5.37 | ||
Granted, Weighted average grant date fair value | 5.92 | ||
Vested, Weighted average grant date fair value | 6.04 | ||
Forfeited, Weighted average grant date fair value | 6.02 | ||
Balance at the end of period, Weighted average grant date fair value | $ 5.95 | $ 6.66 | |
Unrecognized compensation expense related to unvested RSU's | $ 24,400 |
Stockholders' Equity (Valuation
Stockholders' Equity (Valuation of Stock Options and RSUs with a Market Condition) (Details) | 12 Months Ended | |
Jan. 02, 2016 | Jan. 03, 2015 | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.40% | |
Expected term (years) | 4 years 6 months | |
Dividend yield | 0.00% | |
Expected volatility, percent, minimum | 44.00% | |
Expected volatility, percent, maximum | 46.00% | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 36.90% | 53.50% |
Risk-free interest rate | 0.60% | 2.20% |
Expected term (years) | 2 years | 2 months 27 days |
Dividend yield | 0.00% | 0.00% |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) $ / shares in Units, $ in Thousands | Mar. 10, 2015$ / sharesshares | Oct. 03, 2015 | Jan. 02, 2016USD ($)plan$ / sharesshares | Jan. 03, 2015USD ($)tranch$ / sharesshares | Dec. 28, 2013USD ($)$ / sharesshares | May. 31, 2012shares |
Class of Stock [Line Items] | ||||||
Equity Incentive Plans, Number | plan | 4 | |||||
Compensation expense | $ | $ 21,643 | $ 12,802 | $ 9,522 | |||
Total unrecognized compensation cost related to unvested employee and director stock options | $ | $ 10,800 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares | $ 5.46 | $ 5.45 | ||||
Options, Outstanding, Number | 11,444,000 | 9,369,000 | ||||
Share-based Compensation, Cash Used to Settle Awards | $ | $ 3,900 | |||||
Total intrinsic value of options exercised | $ | 2,500 | $ 7,800 | 2,500 | |||
Total fair value of options and RSU's vested and expensed | $ | $ 18,000 | $ 12,800 | $ 9,300 | |||
Grant date weighted average fair values based on fair value assumptions, options | $ / shares | $ 2.35 | $ 2.93 | $ 2.10 | |||
Granted | 2,348,000 | |||||
Award Requisite Service Period | 2 years | |||||
Comparison period | 2 years | |||||
1996 Stock Incentive Plan [Member] | ||||||
Class of Stock [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 0 | |||||
2001 Stock Incentive Plan [Member] | ||||||
Class of Stock [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 0 | |||||
ESPP | ||||||
Class of Stock [Line Items] | ||||||
Number of shares authorized | 5,200,000 | |||||
Share-based Compensation Conversion Ratio | 1.098160 | |||||
Grant date weighted average fair values based on fair assumptions, non-options | $ / shares | $ 1.51 | $ 1.73 | $ 1.29 | |||
ESPP | 2012 ESPP | ||||||
Class of Stock [Line Items] | ||||||
Number of shares authorized | 2,300,000 | 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% | |||||
Stock options | ||||||
Class of Stock [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||
Options, Outstanding, Number | 2,087,605 | 1,622,007 | ||||
Weighted average period for recognition | 4 years 2 months | |||||
Performance Shares | ||||||
Class of Stock [Line Items] | ||||||
Compensation expense | $ | $ 600 | |||||
Granted | 327,200 | 0 | ||||
Options, Nonvested, Number of Shares | 327,200 | |||||
Restricted Stock Units (RSUs) | ||||||
Class of Stock [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||
Compensation expense | $ | $ 700 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares | $ 7.30 | |||||
Options, Outstanding, Number | 2,025,255 | 1,056,368 | ||||
Unrecognized compensation expense related to unvested RSU's | $ | $ 24,400 | |||||
Grant date weighted average fair values based on fair assumptions, non-options | $ / shares | $ 5.92 | |||||
Granted | 70,000 | 98,600 | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Number of Tranches | tranch | 2 | |||||
Options, Nonvested, Number of Shares | 70,000 | |||||
Maximum | ||||||
Class of Stock [Line Items] | ||||||
Award Requisite Service Period | 10 years | |||||
Maximum | ESPP | 2012 ESPP | ||||||
Class of Stock [Line Items] | ||||||
Compensation expense | $ | $ 400 | $ 300 | $ 200 | |||
Maximum | Performance Shares | ||||||
Class of Stock [Line Items] | ||||||
Award Vesting Rights, Percentage | 200.00% | |||||
Minimum | Performance Shares | ||||||
Class of Stock [Line Items] | ||||||
Award Vesting Rights, Percentage | 0.00% |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Compensation Related Costs [Abstract] | |||
Employer matching contribution to a 401(k) plan | $ 900,000 | $ 0 | $ 0 |
2013 Plan | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Charge related to incentive compensation | 11,300,000 | ||
2014 Plan | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Charge related to incentive compensation | $ 11,600,000 | ||
2015 Cash Plan | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Charge related to incentive compensation | $ 1,000,000 |
Contingencies Commitments and C
Contingencies Commitments and Contingencies (Details) - complant | Feb. 09, 2015 | Jan. 30, 2015 | Jan. 29, 2015 |
Molland v. George, et al. and Stein v. Silicon Image, Inc. | |||
Loss Contingencies [Line Items] | |||
Number of complaints | 2 | 5 | 2 |
Valuation and Qualifying Acco85
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 142,171 | $ 151,406 | $ 150,331 |
Balance received through acquisition | 52,617 | 0 | 0 |
Charged (Credit) to costs and expenses | 58,373 | (9,877) | 1,677 |
Charged to other accounts | 413 | 645 | (317) |
Write-offs net of recoveries | (5) | (3) | (285) |
Balance at end of period | 253,569 | 142,171 | 151,406 |
Allowance for deferred taxes | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 141,215 | 150,528 | 149,209 |
Balance received through acquisition | 52,481 | 0 | 0 |
Charged (Credit) to costs and expenses | 58,658 | (9,958) | 1,636 |
Charged to other accounts | 224 | 645 | (317) |
Write-offs net of recoveries | 0 | 0 | 0 |
Balance at end of period | 252,578 | 141,215 | 150,528 |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 875 | 878 | 1,122 |
Balance received through acquisition | 0 | 0 | 0 |
Charged (Credit) to costs and expenses | (438) | 0 | 41 |
Charged to other accounts | 189 | 0 | 0 |
Write-offs net of recoveries | (5) | (3) | (285) |
Balance at end of period | 621 | 875 | 878 |
Allowance for warranty expense | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 81 | 0 | 0 |
Balance received through acquisition | 136 | 0 | 0 |
Charged (Credit) to costs and expenses | 153 | 81 | 0 |
Charged to other accounts | 0 | 0 | 0 |
Write-offs net of recoveries | 0 | 0 | 0 |
Balance at end of period | $ 370 | $ 81 | $ 0 |
Segment and Geographic Inform86
Segment and Geographic Information (Revenue by Major Geographic Area) (Details) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016USD ($)segment | Jan. 03, 2015USD ($) | Dec. 28, 2013USD ($) | |
Segment Reporting [Abstract] | |||
Number of industry segments | segment | 1 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 405,966 | $ 366,127 | $ 332,525 |
Total revenue, percent | 100.00% | 100.00% | 100.00% |
United States: | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 33,677 | $ 30,848 | $ 28,506 |
Total revenue, percent | 8.00% | 8.00% | 9.00% |
Total foreign revenue | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 372,289 | $ 335,279 | $ 304,019 |
Total revenue, percent | 92.00% | 92.00% | 91.00% |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 147,688 | $ 159,155 | $ 148,018 |
Total revenue, percent | 36.00% | 43.00% | 45.00% |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 55,596 | $ 59,041 | $ 47,459 |
Total revenue, percent | 14.00% | 16.00% | 14.00% |
Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 44,067 | $ 31,207 | $ 26,538 |
Total revenue, percent | 11.00% | 9.00% | 8.00% |
Taiwan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 31,181 | $ 6,691 | $ 6,708 |
Total revenue, percent | 8.00% | 2.00% | 2.00% |
Other Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 85,598 | $ 69,778 | $ 64,425 |
Total revenue, percent | 21.00% | 19.00% | 19.00% |
Other Americas | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 8,159 | $ 9,407 | $ 10,871 |
Total revenue, percent | 2.00% | 3.00% | 3.00% |
Segment and Geographic Inform87
Segment and Geographic Information (Revenue by Primary Distributor) (Details) | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Revenue, Major Customer [Line Items] | |||
Revenue from all sell-through distributors | 45.00% | 45.00% | 45.00% |
Arrow Electronics Inc. (including Nu Horizons Electronics) | |||
Revenue, Major Customer [Line Items] | |||
Revenue from all sell-through distributors | 20.00% | 24.00% | 23.00% |
Weikeng Group | |||
Revenue, Major Customer [Line Items] | |||
Revenue from all sell-through distributors | 12.00% | 10.00% | 12.00% |
All others | |||
Revenue, Major Customer [Line Items] | |||
Revenue from all sell-through distributors | 13.00% | 11.00% | 10.00% |
Segment and Geographic Inform88
Segment and Geographic Information (Property and Equipment, Net by Country) (Details) - USD ($) $ in Thousands | Jan. 02, 2016 | Jan. 03, 2015 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, less accumulated depreciation of $118,943 at January 2, 2016 and $154,078 at January 3, 2015 | $ 51,852 | $ 27,796 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, less accumulated depreciation of $118,943 at January 2, 2016 and $154,078 at January 3, 2015 | 25,615 | 14,250 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, less accumulated depreciation of $118,943 at January 2, 2016 and $154,078 at January 3, 2015 | 14,998 | 5,626 |
Philippines | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, less accumulated depreciation of $118,943 at January 2, 2016 and $154,078 at January 3, 2015 | 3,948 | 3,658 |
Taiwan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, less accumulated depreciation of $118,943 at January 2, 2016 and $154,078 at January 3, 2015 | 3,677 | 405 |
India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, less accumulated depreciation of $118,943 at January 2, 2016 and $154,078 at January 3, 2015 | 1,470 | 248 |
Japan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, less accumulated depreciation of $118,943 at January 2, 2016 and $154,078 at January 3, 2015 | 1,211 | 1,732 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, less accumulated depreciation of $118,943 at January 2, 2016 and $154,078 at January 3, 2015 | 933 | 1,877 |
Foreign | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, less accumulated depreciation of $118,943 at January 2, 2016 and $154,078 at January 3, 2015 | $ 26,237 | $ 13,546 |
Segment and Geographic Inform89
Segment and Geographic Information (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016USD ($)segment | Jan. 03, 2015USD ($) | Dec. 28, 2013USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of Operating Segments | segment | 2 | ||
Number of industry segments | segment | 1 | ||
Impairment of goodwill and intangible assets | $ | $ 21,655 | $ 0 | $ 0 |
Qterics | |||
Segment Reporting Information [Line Items] | |||
Revenue, Percent | 0.30% | ||
Net Loss, Percent | 16.30% | ||
Impairment of goodwill and intangible assets | $ | $ 12,700 | ||
Assets, Percent | 0.80% |
Quarterly Financial Data (Una90
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 101,194 | $ 109,715 | $ 106,460 | $ 88,597 | $ 83,600 | $ 86,570 | $ 99,320 | $ 96,637 | $ 405,966 | $ 366,127 | $ 332,525 |
Gross margin | 54,102 | 59,849 | 58,126 | 47,832 | 46,263 | 50,811 | 54,975 | 54,138 | |||
Restructuring charges | 3,459 | 6,818 | 4,068 | 4,894 | 1 | 2 | 3 | 11 | 19,239 | 17 | 388 |
Net (loss) income attributable to stockholders | $ (45,454) | $ (24,862) | $ (35,570) | $ (53,347) | $ 15,419 | $ 9,406 | $ 11,771 | $ 11,984 | $ (159,233) | $ 48,580 | $ 22,321 |
Basic net (loss) income per share (in dollars per share) | $ (0.38) | $ (0.21) | $ (0.30) | $ (0.46) | $ 0.13 | $ 0.08 | $ 0.10 | $ 0.10 | $ (1.36) | $ 0.41 | $ 0.19 |
Diluted net (loss) income per share (in dollars per share) | $ (0.38) | $ (0.21) | $ (0.30) | $ (0.46) | $ 0.13 | $ 0.08 | $ 0.10 | $ 0.10 | $ (1.36) | $ 0.40 | $ 0.19 |