Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 02, 2016 | May. 09, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | LATTICE SEMICONDUCTOR CORP | |
Entity Central Index Key | 855,658 | |
Document Type | 10-Q | |
Document Period End Date | Apr. 2, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --01-02 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding (actual number) | 119,185,609 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Income Statement [Abstract] | ||
Product | $ 88,223 | $ 85,715 |
Licensing and services | 8,289 | 2,882 |
Total revenue | 96,512 | 88,597 |
Costs and expenses: | ||
Cost of product revenue | 39,007 | 40,672 |
Cost of licensing and services revenue | 401 | 93 |
Research and development | 32,608 | 27,642 |
Selling, general, and administrative | 23,608 | 21,088 |
Amortization of acquired intangible assets | 8,721 | 2,942 |
Restructuring charges | 5,431 | 4,894 |
Acquisition related charges | 94 | 18,198 |
Costs and Expenses | 109,870 | 115,529 |
Loss from operations | (13,358) | (26,932) |
Interest expense | (4,960) | (1,611) |
Other income (expense), net | 817 | (139) |
Loss before income taxes and equity in net loss of an unconsolidated affiliate | (17,501) | (28,682) |
Income tax expense | 1,900 | 24,665 |
Equity in net loss of an unconsolidated affiliate, net of tax | (310) | 0 |
Net loss | $ (19,711) | $ (53,347) |
Net loss per share: | ||
Net loss per share, basic and diluted (in usd per shares) | $ (0.17) | $ (0.46) |
Shares used in per share calculations: | ||
Shares used in per share calculations, basic and diluted (in shares) | 118,833 | 116,863 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Loss (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (19,711) | $ (53,347) |
Other comprehensive loss: | ||
Unrealized loss related to marketable securities, net of tax | (28) | (20) |
Reclassification adjustment for losses included in other income (expense), net of tax | 2 | 288 |
Translation adjustment, net of tax | 237 | (6) |
Change in actuarial valuation of defined benefit pension | 0 | (157) |
Comprehensive loss | $ (19,500) | $ (53,242) |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Apr. 02, 2016 | Jan. 02, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 104,619 | $ 84,606 |
Short-term marketable securities | 11,855 | 17,968 |
Accounts receivable, net of allowance for doubtful accounts | 84,399 | 88,471 |
Inventories | 82,598 | 75,896 |
Prepaid expenses and other current assets | 17,030 | 18,922 |
Total current assets | 300,501 | 285,863 |
Property and equipment, less accumulated depreciation of $123,219 at April 2, 2016 and $118,943 at January 2, 2016 | 53,318 | 51,852 |
Intangible assets, net of amortization | 153,675 | 162,583 |
Goodwill | 269,766 | 267,549 |
Deferred income taxes | 578 | 578 |
Other long-term assets | 15,791 | 17,495 |
Total assets | 793,629 | 785,920 |
Current liabilities: | ||
Accounts payable and accrued expenses (includes restructuring) | 90,820 | 74,298 |
Accrued payroll obligations | 6,015 | 9,463 |
Current portion of long-term debt | 2,308 | 7,557 |
Deferred income and allowances on sales to sell-through distributors | 24,773 | 17,866 |
Deferred licensing and services revenue | 1,834 | 1,993 |
Total current liabilities | 125,750 | 111,177 |
Long-term debt | 335,485 | 330,870 |
Other long-term liabilities | 41,226 | 38,353 |
Total liabilities | $ 502,461 | $ 480,400 |
Contingencies (Note 15) | ||
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; 119,095,000 shares issued and outstanding as of April 2, 2016 and 118,651,000 shares issued and outstanding as of January 2, 2016 | 1,191 | 1,187 |
Additional paid-in capital | 665,233 | 660,089 |
Accumulated deficit | (372,557) | (352,846) |
Accumulated other comprehensive loss | (2,699) | (2,910) |
Total stockholders' equity | 291,168 | 305,520 |
Total liabilities and stockholders' equity | $ 793,629 | $ 785,920 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Apr. 02, 2016 | Jan. 02, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share (in dollars per share) | $ 0.01000 | $ 0.01000 |
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) | $ 0.01000 | $ 0.01000 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 119,095,000 | 118,651,000 |
Common stock, shares outstanding | 119,095,000 | 118,651,000 |
Accumulated depreciation | $ 123,219 | $ 118,943 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (19,711) | $ (53,347) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 17,331 | 7,904 |
Amortization of debt issuance costs and discount | 241 | 284 |
Change in deferred income tax provision | 17 | 23,791 |
Loss on sale or maturity of marketable securities | 0 | 288 |
Loss on forward contracts | 152 | 0 |
Stock-based compensation expense | 4,556 | 5,621 |
Equity in net loss of an unconsolidated affiliate, net of tax | 310 | 0 |
Changes in assets and liabilities: | ||
Accounts receivable, net | 4,072 | 12,294 |
Inventories | (6,702) | 5,210 |
Prepaid expenses and other current assets | 1,457 | (62) |
Accounts payable and accrued expenses (includes restructuring) | 17,881 | (2,722) |
Accrued payroll obligations | (3,448) | (3,007) |
Income taxes payable | (118) | 0 |
Deferred income and allowances on sales to sell-through distributors | 6,907 | 3,770 |
Deferred income and allowances on sales to sell-through distributors | 179 | (39) |
Net cash provided by (used in) operating activities | 23,124 | (15) |
Cash flows from investing activities: | ||
Proceeds from sales or maturities of short-term marketable securities | 5,997 | 108,881 |
Purchases of marketable securities, net | 0 | (4,005) |
Cash paid for business acquisition, net of cash acquired | 0 | (425,890) |
Capital expenditures, net | (5,700) | (2,878) |
Cash paid for a non-marketable equity-method investment | 0 | (1,500) |
Cash paid for software licenses | (3,362) | (1,523) |
Net cash used in investing activities | (3,065) | (326,915) |
Cash flows from financing activities: | ||
Net share settlement upon issuance of restricted stock units | (525) | (1,126) |
Purchases of treasury stock | 0 | (6,993) |
Net proceeds from issuance of common stock | 1,117 | 866 |
Net proceeds from issuance of long-term debt | 0 | 346,500 |
Cash paid for debt issuance costs | 0 | (8,280) |
Repayment of debt | (875) | 0 |
Net cash (used in) provided by financing activities | (283) | 330,967 |
Effect of exchange rate change on cash | 237 | (6) |
Net increase in cash and cash equivalents | 20,013 | 4,031 |
Beginning cash and cash equivalents | 84,606 | 115,611 |
Ending cash and cash equivalents | 104,619 | 119,642 |
Supplemental cash flow information: | ||
Change in unrealized (loss) gain related to marketable securities, net of tax, included in Accumulated other comprehensive loss | (26) | 268 |
Income taxes paid, net of refunds | 2,496 | 1,063 |
Interest Paid | 4,671 | 0 |
Accrued purchases of plant and equipment | $ 217 | $ (433) |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Apr. 02, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies The accompanying Consolidated Financial Statements are unaudited and have been prepared by Lattice Semiconductor Corporation (“Lattice,” the “Company,” “we,” “us,” or “our”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and in our opinion include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of results for the interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") have been condensed or omitted pursuant to such rules and regulations. These Consolidated Financial Statements should be read in conjunction with our audited financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 2, 2016 . Fiscal Reporting Period We report based on a 52 or 53-week fiscal year ending on the Saturday closest to December 31. Our first quarter of fiscal 2016 and first quarter of fiscal 2015 ended on April 2, 2016 and April 4, 2015 , respectively. All references to quarterly or three months ended financial results are references to the results for the relevant 13-week 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 quarter ended April 4, 2015 include the results of Silicon Image for the approximately 3-week period from March 11, 2015 through April 4, 2015 . Certain balances in prior fiscal years have been reclassified to conform to the presentation adopted in the current year. Net loss attributable to noncontrolling interest reported separately for 2015 is now included in Other income (expense), net. Use of Estimates The preparation of financial statements in conformity with 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 units), 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. Deposits with financial institutions at times exceed Federal Deposit Insurance Corporation insurance limits. Fair Value of Financial Instruments We invest in various financial instruments, which may include corporate and government bonds, notes, and commercial paper. 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 would 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 and Disclosures.” The framework under the provisions of ASC 820 establishes three levels of inputs that may be used to measure fair value. Each level of input has different levels of subjectivity and difficulty involved in determining fair value. Foreign Exchange and Translation of Foreign Currencies We have international subsidiary and branch operations. In addition, a portion of our silicon wafer and other purchases are denominated in Japanese yen, we bill certain Japanese customers in yen and collect a Japanese consumption tax refund in yen. Gains or losses from foreign exchange rate fluctuations on balances denominated in foreign currencies are reflected in Other income (expense), net . Realized and unrealized gains or losses on foreign currency transactions were not significant for the periods presented. We translate accounts denominated in foreign currencies in accordance with ASC 830, “Foreign Currency Matters,” using the current rate method under which asset and liability accounts are translated at the current rate, while stockholders' equity accounts are translated at the appropriate historical rates, and revenue and expense accounts are translated at average monthly exchange rates. Translation adjustments related to the consolidation of foreign subsidiary financial statements are reflected in Accumulated other comprehensive loss in Stockholders' equity. Derivative Financial Instruments We mitigate foreign currency exchange rate risk by entering into foreign currency forward exchange contracts. At April 2, 2016 and January 2, 2016 , we had open contracts for Japanese yen of $ 2.1 million and $ 3.3 million , respectively. All five contracts outstanding at April 2, 2016 will settle in June 2016 . Of the six contracts outstanding at January 2, 2016 , two settled in January 2016 and four will settle in June 2016 . Although these hedges mitigate our foreign currency exchange rate exposure from an economic perspective, they were not designated as "effective" hedges for accounting purposes and as such are adjusted to fair value through Other income (expense), net , with an impact of approximately $0.2 million and less than $0.1 million , respectively, for the fiscal quarters ended April 2, 2016 and January 2, 2016 . We do not hold or issue derivative financial instruments for trading or speculative purposes. 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. Our top five end customers constituted approximately 27% of our revenue for the first quarter of fiscal 2016 , compared to approximately 35% for the first quarter of fiscal 2015 . Our largest end customer accounted for approximately 8% of total revenue in the first quarter of fiscal 2016 . Our two largest end customers each accounted for approximately 10% of total revenue in the first quarter of fiscal 2015 . No other 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. Revenue attributable to resale of products by our sell-through distributors for the first quarter of fiscal 2016 and fiscal 2015 was 53% and 48% , respectively. Our two largest distributor groups also account for a substantial portion of our trade receivables. At April 2, 2016 and January 2, 2016 , one distributor group accounted for 41% and 29% , respectively, and the other accounted for 11% and 15% , 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 $0.7 million and $0.6 million at April 2, 2016 and January 2, 2016 , 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 based primarily on 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. 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 , and Accounts receivable, net is 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) April 2, January 2, Inventory valued at published list prices and held by sell-through distributors with right of return $ 55,978 $ 47,086 Allowance for distributor advances (23,420 ) (22,290 ) Deferred cost of sales related to inventory held by sell-through distributors (7,785 ) (6,930 ) Total Deferred income and allowances on sales to sell-through distributors $ 24,773 $ 17,866 A significant portion of our revenue in the first quarter of both fiscal years 2016 and 2015 was from sell-through distributors. Resale of products by sell-through distributors as a percentage of total revenue was 53% for the three months ended April 2, 2016 and 48% for the three months ended April 4, 2015 . We use estimates and apply judgment to reconcile sell-through distributors' reported inventories to their activities. Errors in our estimates or judgments could result in inaccurate reporting of our Revenue, Cost of products sold, Deferred income and allowances on sales to sell-through distributors, and Net loss. 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 ("Founders") of the HDMI consortium. Evidence of an arrangement, as to HDMI royalty revenue, is deemed complete when all of the Founders agree on the royalty sharing formula. From time to time, we perform audits on our royalty reporting customers to ensure compliance. As a result of those compliance efforts, we may enter into settlement agreements for the payment of unreported royalties. The contractual terms of those agreements may provide for upfront payment of unreported royalties or over a period of time, generally not to exceed one year. Revenue from those arrangements is recognized when the agreement is executed by both parties, as long as price is fixed and determinable and collections is reasonably assured. 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. 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. 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 became effective for us on January 3, 2016. The adoption of this accounting standard update did not have a material impact on 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.” 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 have a material impact on 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 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, as opposed to the prior standard which required material adjustments be retroactively adjusted. We adopted the new standard on January 3, 2016. The adoption of this accounting standard update did not have a material impact on our consolidated financial statements. 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 are currently evaluating the impact of ASU 2016-01 on our consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires that substantially all leases, including today’s operating leases, be recognized by lessees on their balance sheet as a right-of-use asset and corresponding lease liability. For public business entities, the standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. 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. In March 2016, the FASB issued ASU 2016-07, Investments - Equity Method and Joint Ventures (Topic 323), Simplifying the Transition to the Equity Method of Accounting . This update eliminates the requirement that when an existing cost method investment qualifies for use of the equity method, an investor must restate its historical financial statements, as if the equity method had been used during all previous periods. Under the new guidance, at the point an investment qualifies for the equity method, any unrealized gain or loss in accumulated other comprehensive income/(loss) ("AOCI") will be recognized through earnings. The guidance is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. We are currently evaluating the impact of ASU 2016-07 on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation, Improvements to Employee Share-Based payment Accounting (Topic 718) . This update is intended to provide simplification of the accounting for share based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The guidance is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. We are currently evaluating the impact of ASU 2016-09 on our consolidated financial statements and related disclosures. |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Apr. 02, 2016 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss per Share We compute basic net loss per share by dividing net loss 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"), and Employee Stock Purchase Plan ("ESPP") shares. Our application of the treasury stock method includes, as assumed proceeds, the average unamortized stock-based compensation expense for the period and the impact of the pro forma deferred tax benefit or cost associated with stock-based compensation expense. When we are in a net loss position, we do not include dilutive securities as their inclusion would reduce the net loss per share. A summary of basic and diluted net loss per share is presented below: Three Months Ended (in thousands, except per share data) April 2, 2016 April 4, 2015 Basic and diluted Net loss $ (19,711 ) $ (53,347 ) Shares used in basic and diluted Net loss per share 118,833 116,863 Basic and diluted Net loss per share $ (0.17 ) $ (0.46 ) The computation of diluted net loss per share for the three months ended April 2, 2016 excludes the effects of stock options, RSUs, and ESPP shares, aggregating approximately 8.2 million shares, which are antidilutive. The computation of diluted Net loss per share for the three months ended April 4, 2015 excludes the effects of stock options, RSUs, and ESPP shares aggregating approximately 11.5 million shares, which 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, RSUs, and ESPP shares that are antidilutive at April 2, 2016 could become dilutive in the future. |
Marketable Securities
Marketable Securities | 3 Months Ended |
Apr. 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) April 2, 2016 January 2, 2016 Short-term marketable securities: Maturing within one year $ 11,855 $ 12,144 Maturing between one and two years — 5,824 Total marketable securities $ 11,855 $ 17,968 The following table summarizes the composition of our marketable securities at fair value: (In thousands) April 2, 2016 January 2, 2016 Short-term marketable securities: Corporate and government bonds and notes, and commercial paper $ 11,775 $ 17,888 Certificates of deposit 80 80 Total marketable securities $ 11,855 $ 17,968 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Apr. 02, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value measurements as of Fair value measurements as of April 2, 2016 January 2, 2016 (In thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Short-term marketable securities $ 11,855 $ 11,775 $ 80 $ — $ 17,968 $ 17,888 $ 80 $ — Foreign currency forward exchange contracts, net (152 ) — (152 ) — (12 ) — (12 ) — Total fair value of financial instruments $ 11,703 $ 11,775 $ (72 ) $ — $ 17,956 $ 17,888 $ 68 $ — We invest in various financial instruments including corporate and government bonds and notes, and commercial paper. 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, "Fair Value Measurements and Disclosures." The framework under the provisions of ASC 820 establishes three levels of inputs that may be used to measure fair value. Each level of input has different levels of subjectivity and difficulty involved in determining fair value. Level 1 instruments 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. There were no transfers between any of the levels during the first three months of fiscal 2016 or 2015 . In accordance with ASC 320, “Investments-Debt and Equity Securities,” we recorded an unrealized loss of less than $0.1 million during each of the three months ended April 2, 2016 and April 4, 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 we deem 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 comprehens ive loss. |
Inventories
Inventories | 3 Months Ended |
Apr. 02, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (In thousands) April 2, 2016 January 2, 2016 Work in progress $ 63,116 $ 57,865 Finished goods 19,482 18,031 Total inventories $ 82,598 $ 75,896 |
Business Combinations and Goodw
Business Combinations and Goodwill | 3 Months Ended |
Apr. 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 completed after a final detailed analysis of certain tax matters. In the first quarter of 2016, we revised our valuation and allocation of purchase price consideration resulting in $2.1 million of additional long-term liabilities related to an uncertain tax position with an equivalent revision to Goodwill, which is reflected in the Consolidated Balance Sheets for the period ended April 2, 2016. The final 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 and equipment 23,429 Other non-current assets 1,573 Intangible assets 192,079 Goodwill 237,608 Total assets acquired 671,311 Less liabilities assumed: Accounts payable and other accrued liabilities 47,735 Other current liabilities 1,252 Long-term liabilities 26,675 Redeemable noncontrolling interest 7,172 Total liabilities assumed 82,834 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. 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. No impairment charges relating to goodwill or intangible assets were recorded for the first three months of 2016 or 2015 as no indicators of impairment were present. The goodwill balance of $269.8 million at April 2, 2016 is comprised of $44.8 million from prior acquisitions combined with $237.6 million from the acquisition of Silicon Image, reduced by a fiscal 2015 goodwill impairment charge of $12.7 million . |
Intangible Assets
Intangible Assets | 3 Months Ended |
Apr. 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, "Fair Value Measurements and Disclosures." Additionally, during fiscal 2015, we licensed additional third-party technology. The following table summarizes the details of our total purchased intangible assets: Weighted Average Amortization Period (in years) Gross Accumulated Amortization Intangible assets, net of amortization (In thousands) April 2, 2016 Developed technology 4.7 $ 131,844 $ (35,801 ) $ 96,043 Customer relationships 5.5 30,800 (10,142 ) 20,658 Licensed technology 2.5 2,127 (758 ) 1,369 Patents 5 769 (164 ) 605 Total identified finite-lived intangible assets 165,540 (46,865 ) 118,675 In-process research and development indefinite 35,000 — 35,000 Total identified intangible assets $ 200,540 $ (46,865 ) $ 153,675 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. We recorded amortization expense on the Consolidated Statements of Operations as follows: Three Months Ended (In thousands) April 2, 2016 April 4, 2015 Research and development $ 186 $ 61 Amortization of acquired intangible assets 8,721 2,942 $ 8,907 $ 3,003 The annual expected amortization expense related to acquired intangible assets with finite lives is as follows: (In thousands) Amount 2016 (remaining 9 months) $ 26,169 2017 33,275 2018 26,793 2019 24,009 2020 6,063 Thereafter 2,366 Total $ 118,675 |
Equity Method Investment
Equity Method Investment | 3 Months Ended |
Apr. 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 of and interaction with the investee, we determined that we have the ability to exert significant influence over the investee. Accordingly, we changed our accounting for the investment from the cost method to the equity method and have hence recognized our proportionate share of the investee’s operating results in the Consolidated Statements of Operations. Applying the equity method, we recognized a charge of $0.3 million in the Consolidated Statements of Operations for the three months ended April 2, 2016 , which is our proportionate share of the investee’s net loss for the first quarter of 2016 . Through April 2, 2016 , we have reduced the value of our investment by approximately $0.8 million , representing our proportionate share of the privately-held company’s net loss accumulated to that date. The net balance of our investment amounting to $4.2 million has been included in Other long-term assets in the Consolidated Balance Sheets as of April 2, 2016 . |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 3 Months Ended |
Apr. 02, 2016 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Included in accounts payable and accrued liabilities as of April 2, 2016 and January 2, 2016 were the following balances: (In thousands) April 2, 2016 January 2, 2016 Trade accounts payable $ 33,901 $ 18,616 Payable to members of the HDMI and MHL consortia* 20,291 16,643 Other accrued expenses 36,628 39,039 Total accounts payable and accrued expenses $ 90,820 $ 74,298 *As an agent of the HDMI and MHL consortia, we administer royalty reporting and distributions to the members of these consortia. This excludes amounts payable to us, and is payable quarterly based on collections from HDMI and MHL customers. |
Changes in Stockholders' Equity
Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss | 3 Months Ended |
Apr. 02, 2016 | |
Stockholders' Equity Note [Abstract] | |
Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss | Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss (In thousands) Common stock Additional Paid-in capital Accumulated deficit Accumulated other comprehensive loss Total Balances, January 2, 2016 $ 1,187 $ 660,089 $ (352,846 ) $ (2,910 ) $ 305,520 Net loss for the three months ended April 2, 2016 — — (19,711 ) — (19,711 ) Unrealized loss related to marketable securities, net of tax — — — (28 ) (28 ) Recognized loss on redemption of marketable securities, previously unrealized — — — 2 2 Translation adjustments, net of tax — — — 237 237 Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax 4 588 — — 592 Stock-based compensation expense related to stock options, ESPP and RSUs — 4,556 — — 4,556 Balances, April 2, 2016 $ 1,191 $ 665,233 $ (372,557 ) $ (2,699 ) $ 291,168 |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 02, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended April 2, 2016 and April 4, 2015 , we recorded an income tax provision of approximately $1.9 million and $24.7 million , respectively. The income tax provision for the three months ended April 2, 2016 represents tax at the federal, state and foreign statutory tax rates adjusted for withholding taxes, changes in uncertain tax positions, changes in the U.S. valuation allowance, as well as other non-deductible items in the United States and foreign jurisdictions. The difference between the U.S. federal statutory tax rate of 35% and our effective tax rate is primarily due to a valuation allowance increase in the United States and income earned in lower tax rate jurisdictions, for which no U.S. income tax has been provided, because we intend to permanently reinvest these earnings outside of the United States. During the first quarter of 2015, we concluded that it was not more-likely-than-not that we would be able to realize the benefit of our remaining U.S. deferred tax assets, resulting in an increase to the valuation allowance and an increase to the tax provision of $21.0 million . We based this conclusion on changes to our expected operations in the United States as a result of the acquisition of Silicon Image. We exercised significant judgment and considered estimates about our ability to generate revenue and gross profits sufficient enough to offset expenditures in future periods within the United States. We are subject to federal income tax as well as income tax of multiple state and foreign jurisdictions. We are no longer subject to income tax examinations for the following jurisdictions and years: federal, for years before 2012, state and local, for years before 2011, or foreign, for years before 2009. However, U.S. federal net operating loss ("NOL") and credit carryforwards from all years are subject to examination and adjustments for at least three years following the year in which we used the attributes. 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 other jurisdiction. We believe that it is reasonably possible that $0.2 million of unrecognized tax benefits and less than $0.1 million of associated interest and penalties could be recognized during the next twelve months. The $0.2 million potential change would represent a decrease in unrecognized tax benefits, comprised of items related to tax filings for years that will no longer be subject to examination under expiring statutes of limitations. We have U.S. federal NOL carryforwards (pretax) of approximately $339.9 million at January 2, 2016 that expire at various dates between 2023 and 2035 . We have state net operating loss carryforwards (pretax) of approximately $239.9 million at January 2, 2016 that expire at various dates from 2016 through 2035 . We also have federal and state credit carryforwards of $48.2 million and $55.9 million , respectively at January 2, 2016, of which $53.4 million do not expire. The remaining credits expire at various dates from 2016 through 2034 . Our liability for uncertain tax positions was $24.4 million and $23.3 million at April 2, 2016 and January 2, 2016 , respectively, and is recorded as a component of other long-term liabilities on our Consolidated Balance Sheets. We are not currently paying U.S. federal income taxes and do not expect to pay such taxes until we fully utilize our tax NOL and credit carryforwards. We expect to pay a nominal amount of state income tax. We are paying foreign income and withholding taxes, which are reflected in income tax expense in our Consolidated Statements of Operations and are primarily related to the cost of operating offshore activities and subsidiaries. We accrue interest and penalties related to uncertain tax positions in income tax expense. |
Restructuring
Restructuring | 3 Months Ended |
Apr. 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, cancellation of software contracts, and engineering tools. We expect the total cost of the March 2015 Plan to be in the range of approximately $17.0 million to $21.0 million and to be substantially completed by the end of second quarter of fiscal 2016. Under this plan, approximately $3.6 million and $4.9 million of expense was incurred during the three months ended April 2, 2016 and April 4, 2015 , respectively, with approximately $16.9 million of total expense incurred through April 2, 2016 . 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 $7.0 million to $10.0 million and to be substantially completed by the end of the second quarter of fiscal 2016. Under this reduction, approximately $1.8 million of expense was incurred during the three months ended April 2, 2016 and no expense was incurred during the three months ended April 4, 2015 , with approximately $7.8 million of total expense incurred through April 2, 2016 . These expenses were recorded to restructuring charges on our Consolidated Statements of Operations. The restructuring accrual balance is presented in accounts payable and accrued expenses (includes restructuring) on our Consolidated Balance Sheets. The following table displays the combined activity related to the restructuring plans described above: (In thousands) Severance and related Lease Termination Software Contracts & Engineering Tools* Other Total Balance at January 3, 2015 $ — $ 43 $ — $ 139 $ 182 Restructuring charges 4,893 — — — 4,893 Costs paid or otherwise settled — (9 ) — (139 ) (148 ) Adjustments to prior restructuring costs — 1 — — 1 Balance at April 4, 2015 $ 4,893 $ 35 $ — $ — $ 4,928 Balance at January 2, 2016 $ 3,696 $ 1,005 $ 377 $ — $ 5,078 Restructuring charges 1,676 220 2,181 1,354 5,431 Costs paid or otherwise settled (3,056 ) (323 ) (2,245 ) (1,354 ) (6,978 ) Balance at April 2, 2016 $ 2,316 $ 902 $ 313 $ — $ 3,531 * Includes cancellation of contracts, asset impairments, and accelerated depreciation of ERP systems |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Apr. 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 3-month LIBOR as of April 2, 2016 , subject to a 1.00% floor, plus a spread of 4.25% . The current effective interest rate on the Term Loan is 6.06% . 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 April 2, 2016 , we expect to be required to make principal payments of $1.7 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 April 2, 2016 . 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 fair value of the Term Loan approximates the carrying value, which is reflected in our Consolidated Balance Sheets as follows: (In thousands) April 2, 2016 January 2, 2016 Principal amount $ 346,500 $ 347,375 Unamortized original issue discount and debt issuance costs (8,707 ) (8,948 ) Less: Current portion of long-term debt (2,308 ) (7,557 ) Long-term debt $ 335,485 $ 330,870 Interest expense related to the Term Loan was included in Interest expense on our Consolidated Statements of Operations as follows: Three Months Ended (In thousands) April 2, 2016 April 4, 2015 Contractual interest $ 4,620 $ 1,327 Amortization of debt issuance costs and discount 241 284 Total Interest expense related to the Term Loan $ 4,861 $ 1,611 As of April 2, 2016, expected future principal payments on the Term Loan were as follows: Fiscal year (in thousands) 2016 (remaining 9 months) $ 4,280 2017 36,181 2018 85,812 2019 90,544 2020 78,431 Thereafter 51,252 $ 346,500 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Apr. 02, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Total stock-based compensation expense included in our Consolidated Statements of Operations was as follows: Three Months Ended (In thousands) April 2, 2016 April 4, 2015 Line item: Cost of products sold $ 259 $ 240 Research and development 2,459 1,509 Selling, general and administrative 1,838 1,635 Acquisition related charges — 3,891 Total stock-based compensation $ 4,556 $ 7,275 Of the $7.3 million total stock-based compensation for the three months ended April 4, 2015 , $1.7 million was cashed out during the first quarter 2015 and $2.2 million was accrued in accrued payroll obligations on the Consolidated Balance Sheets as of April 4, 2015 , and paid out in the second quarter of 2015 . During the first and second quarters of fiscal 2015, we granted approximately 327,200 stock options and 70,000 RSUs with a market condition to certain executives. Since then, there have been no new grants with market conditions. 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 April 2, 2016 , approximately 296,300 stock options and 70,000 RSUs with market conditions were outstanding. In the first quarter of fiscal 2016 , we incurred stock compensation expense of less than $0.1 million related to these market condition awards. |
Contingencies
Contingencies | 3 Months Ended |
Apr. 02, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 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, 2016. 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 has negotiated the terms of this agreement with CVIA. In February 2016, the Company filed a complaint 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 filed an answer to the Company’s complaint on April 11, 2016, which included various defenses to the alleged patent infringement. Technicolor also has informed the Company that it will attempt to raise as a counterclaim or in separate litigation 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. |
Segment and Geographic Informat
Segment and Geographic Information | 3 Months Ended |
Apr. 02, 2016 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information Segment Information As of April 2, 2016 , Lattice had 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. On April 17, 2016, we entered into a definitive agreement to sell Qterics. The sale closed on April 27, 2016. 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 three month periods ended April 2, 2016 and April 4, 2015 , revenue generated by Qterics comprised 0.4% and 0.2% , respectively, of total Revenue. For the three month periods ended April 2, 2016 and April 4, 2015 , Qterics accounted for 4.1% and 0.4% , respectively, of the total Net loss. As of April 2, 2016 and January 2, 2016 , the Total assets of Qterics comprised 0.3% and 0.8% , respectively, of the Total assets of the Company. Geographic Information Our revenue by major geographic area, based on ship-to location, was as follows: Three Months Ended (In thousands) April 2, 2016 April 4, 2015 Asia $ 65,512 68 % $ 62,534 70 % Europe 16,009 17 16,467 19 Americas 14,991 15 9,596 11 Total revenue $ 96,512 100 % $ 88,597 100 % 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. There were no material changes to property and equipment by major geographic area as of April 2, 2016 as compared to January 2, 2016 . |
Basis of Presentation and Sig23
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 02, 2016 | |
Accounting Policies [Abstract] | |
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 quarter ended April 4, 2015 include the results of Silicon Image for the approximately 3-week period from March 11, 2015 through April 4, 2015 . Certain balances in prior fiscal years have been reclassified to conform to the presentation adopted in the current year. Net loss attributable to noncontrolling interest reported separately for 2015 is now included in Other income (expense), net. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with 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 units), 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 | We consider all investments that are readily convertible into cash and have original maturities of three months or less to be cash equivalents. Cash equivalents consist primarily of highly liquid investments in time deposits or money market accounts and are carried at cost. |
Marketable Securities | We account for marketable securities as available-for-sale 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. 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, which may include corporate and government bonds, notes, and commercial paper. 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 would 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 and Disclosures.” The framework under the provisions of ASC 820 establishes three levels of inputs that may be used to measure fair value. Each level of input has different levels of subjectivity and difficulty involved in determining fair value. |
Foreign Exchange and Translation of Foreign Currencies | Foreign Exchange and Translation of Foreign Currencies We have international subsidiary and branch operations. In addition, a portion of our silicon wafer and other purchases are denominated in Japanese yen, we bill certain Japanese customers in yen and collect a Japanese consumption tax refund in yen. Gains or losses from foreign exchange rate fluctuations on balances denominated in foreign currencies are reflected in Other income (expense), net . Realized and unrealized gains or losses on foreign currency transactions were not significant for the periods presented. We translate accounts denominated in foreign currencies in accordance with ASC 830, “Foreign Currency Matters,” using the current rate method under which asset and liability accounts are translated at the current rate, while stockholders' equity accounts are translated at the appropriate historical rates, and revenue and expense accounts are translated at average monthly exchange rates. Translation adjustments related to the consolidation of foreign subsidiary financial statements are reflected in Accumulated other comprehensive loss in Stockholders' equity. |
Derivative Financial Instruments | Derivative Financial Instruments We mitigate foreign currency exchange rate risk by entering into foreign currency forward exchange contracts. At April 2, 2016 and January 2, 2016 , we had open contracts for Japanese yen of $ 2.1 million and $ 3.3 million , respectively. All five contracts outstanding at April 2, 2016 will settle in June 2016 . Of the six contracts outstanding at January 2, 2016 , two settled in January 2016 and four will settle in June 2016 . Although these hedges mitigate our foreign currency exchange rate exposure from an economic perspective, they were not designated as "effective" hedges for accounting purposes and as such are adjusted to fair value through Other income (expense), net , with an impact of approximately $0.2 million and less than $0.1 million , respectively, for the fiscal quarters ended April 2, 2016 and January 2, 2016 . We do not hold or issue derivative financial instruments for trading or speculative purposes. |
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. Our top five end customers constituted approximately 27% of our revenue for the first quarter of fiscal 2016 , compared to approximately 35% for the first quarter of fiscal 2015 . Our largest end customer accounted for approximately 8% of total revenue in the first quarter of fiscal 2016 . Our two largest end customers each accounted for approximately 10% of total revenue in the first quarter of fiscal 2015 . No other 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. Revenue attributable to resale of products by our sell-through distributors for the first quarter of fiscal 2016 and fiscal 2015 was 53% and 48% , respectively. Our two largest distributor groups also account for a substantial portion of our trade receivables. At April 2, 2016 and January 2, 2016 , one distributor group accounted for 41% and 29% , respectively, and the other accounted for 11% and 15% , 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 $0.7 million and $0.6 million at April 2, 2016 and January 2, 2016 , 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 | 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 based primarily on 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. 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 , and Accounts receivable, net is adjusted to reflect the final selling price. We use estimates and apply judgment to reconcile sell-through distributors' reported inventories to their activities. Errors in our estimates or judgments could result in inaccurate reporting of our Revenue, Cost of products sold, Deferred income and allowances on sales to sell-through distributors, and Net loss. 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 ("Founders") of the HDMI consortium. Evidence of an arrangement, as to HDMI royalty revenue, is deemed complete when all of the Founders agree on the royalty sharing formula. From time to time, we perform audits on our royalty reporting customers to ensure compliance. As a result of those compliance efforts, we may enter into settlement agreements for the payment of unreported royalties. The contractual terms of those agreements may provide for upfront payment of unreported royalties or over a period of time, generally not to exceed one year. Revenue from those arrangements is recognized when the agreement is executed by both parties, as long as price is fixed and determinable and collections is reasonably assured. |
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. |
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. 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 became effective for us on January 3, 2016. The adoption of this accounting standard update did not have a material impact on 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.” 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 have a material impact on 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 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, as opposed to the prior standard which required material adjustments be retroactively adjusted. We adopted the new standard on January 3, 2016. The adoption of this accounting standard update did not have a material impact on our consolidated financial statements. 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 are currently evaluating the impact of ASU 2016-01 on our consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires that substantially all leases, including today’s operating leases, be recognized by lessees on their balance sheet as a right-of-use asset and corresponding lease liability. For public business entities, the standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. 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. In March 2016, the FASB issued ASU 2016-07, Investments - Equity Method and Joint Ventures (Topic 323), Simplifying the Transition to the Equity Method of Accounting . This update eliminates the requirement that when an existing cost method investment qualifies for use of the equity method, an investor must restate its historical financial statements, as if the equity method had been used during all previous periods. Under the new guidance, at the point an investment qualifies for the equity method, any unrealized gain or loss in accumulated other comprehensive income/(loss) ("AOCI") will be recognized through earnings. The guidance is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. We are currently evaluating the impact of ASU 2016-07 on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation, Improvements to Employee Share-Based payment Accounting (Topic 718) . This update is intended to provide simplification of the accounting for share based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The guidance is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. We are currently evaluating the impact of ASU 2016-09 on our consolidated financial statements and related disclosures. |
Basis of Presentation and Sig24
Basis of Presentation and Significant Accounting Policies (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Accounting Policies [Abstract] | |
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) April 2, January 2, Inventory valued at published list prices and held by sell-through distributors with right of return $ 55,978 $ 47,086 Allowance for distributor advances (23,420 ) (22,290 ) Deferred cost of sales related to inventory held by sell-through distributors (7,785 ) (6,930 ) Total Deferred income and allowances on sales to sell-through distributors $ 24,773 $ 17,866 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation | A summary of basic and diluted net loss per share is presented below: Three Months Ended (in thousands, except per share data) April 2, 2016 April 4, 2015 Basic and diluted Net loss $ (19,711 ) $ (53,347 ) Shares used in basic and diluted Net loss per share 118,833 116,863 Basic and diluted Net loss per share $ (0.17 ) $ (0.46 ) |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Apr. 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) April 2, 2016 January 2, 2016 Short-term marketable securities: Maturing within one year $ 11,855 $ 12,144 Maturing between one and two years — 5,824 Total marketable securities $ 11,855 $ 17,968 |
Schedule of Composition of Marketable Securities | The following table summarizes the composition of our marketable securities at fair value: (In thousands) April 2, 2016 January 2, 2016 Short-term marketable securities: Corporate and government bonds and notes, and commercial paper $ 11,775 $ 17,888 Certificates of deposit 80 80 Total marketable securities $ 11,855 $ 17,968 |
Fair Value of Financial Instr27
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Instruments | Fair value measurements as of Fair value measurements as of April 2, 2016 January 2, 2016 (In thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Short-term marketable securities $ 11,855 $ 11,775 $ 80 $ — $ 17,968 $ 17,888 $ 80 $ — Foreign currency forward exchange contracts, net (152 ) — (152 ) — (12 ) — (12 ) — Total fair value of financial instruments $ 11,703 $ 11,775 $ (72 ) $ — $ 17,956 $ 17,888 $ 68 $ — |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | (In thousands) April 2, 2016 January 2, 2016 Work in progress $ 63,116 $ 57,865 Finished goods 19,482 18,031 Total inventories $ 82,598 $ 75,896 |
Business Combinations and Goo29
Business Combinations and Goodwill (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The final 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 and equipment 23,429 Other non-current assets 1,573 Intangible assets 192,079 Goodwill 237,608 Total assets acquired 671,311 Less liabilities assumed: Accounts payable and other accrued liabilities 47,735 Other current liabilities 1,252 Long-term liabilities 26,675 Redeemable noncontrolling interest 7,172 Total liabilities assumed 82,834 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 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 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Finite-lived Intangible Assets by Major Class | The following table summarizes the details of our total purchased intangible assets: Weighted Average Amortization Period (in years) Gross Accumulated Amortization Intangible assets, net of amortization (In thousands) April 2, 2016 Developed technology 4.7 $ 131,844 $ (35,801 ) $ 96,043 Customer relationships 5.5 30,800 (10,142 ) 20,658 Licensed technology 2.5 2,127 (758 ) 1,369 Patents 5 769 (164 ) 605 Total identified finite-lived intangible assets 165,540 (46,865 ) 118,675 In-process research and development indefinite 35,000 — 35,000 Total identified intangible assets $ 200,540 $ (46,865 ) $ 153,675 |
Schedule of Acquired Indefinite-lived Intangible Assets by Major Class | The following table summarizes the details of our total purchased intangible assets: Weighted Average Amortization Period (in years) Gross Accumulated Amortization Intangible assets, net of amortization (In thousands) April 2, 2016 Developed technology 4.7 $ 131,844 $ (35,801 ) $ 96,043 Customer relationships 5.5 30,800 (10,142 ) 20,658 Licensed technology 2.5 2,127 (758 ) 1,369 Patents 5 769 (164 ) 605 Total identified finite-lived intangible assets 165,540 (46,865 ) 118,675 In-process research and development indefinite 35,000 — 35,000 Total identified intangible assets $ 200,540 $ (46,865 ) $ 153,675 |
Finite-lived Intangible Assets Amortization Expense | We recorded amortization expense on the Consolidated Statements of Operations as follows: Three Months Ended (In thousands) April 2, 2016 April 4, 2015 Research and development $ 186 $ 61 Amortization of acquired intangible assets 8,721 2,942 $ 8,907 $ 3,003 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The annual expected amortization expense related to acquired intangible assets with finite lives is as follows: (In thousands) Amount 2016 (remaining 9 months) $ 26,169 2017 33,275 2018 26,793 2019 24,009 2020 6,063 Thereafter 2,366 Total $ 118,675 |
Accounts Payable and Accrued 31
Accounts Payable and Accrued Expenses (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Included in accounts payable and accrued liabilities as of April 2, 2016 and January 2, 2016 were the following balances: (In thousands) April 2, 2016 January 2, 2016 Trade accounts payable $ 33,901 $ 18,616 Payable to members of the HDMI and MHL consortia* 20,291 16,643 Other accrued expenses 36,628 39,039 Total accounts payable and accrued expenses $ 90,820 $ 74,298 |
Changes in Stockholders' Equi32
Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Changes in Stockholders' Equity and Accumulated other Comprehensive Loss | (In thousands) Common stock Additional Paid-in capital Accumulated deficit Accumulated other comprehensive loss Total Balances, January 2, 2016 $ 1,187 $ 660,089 $ (352,846 ) $ (2,910 ) $ 305,520 Net loss for the three months ended April 2, 2016 — — (19,711 ) — (19,711 ) Unrealized loss related to marketable securities, net of tax — — — (28 ) (28 ) Recognized loss on redemption of marketable securities, previously unrealized — — — 2 2 Translation adjustments, net of tax — — — 237 237 Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax 4 588 — — 592 Stock-based compensation expense related to stock options, ESPP and RSUs — 4,556 — — 4,556 Balances, April 2, 2016 $ 1,191 $ 665,233 $ (372,557 ) $ (2,699 ) $ 291,168 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table displays the combined activity related to the restructuring plans described above: (In thousands) Severance and related Lease Termination Software Contracts & Engineering Tools* Other Total Balance at January 3, 2015 $ — $ 43 $ — $ 139 $ 182 Restructuring charges 4,893 — — — 4,893 Costs paid or otherwise settled — (9 ) — (139 ) (148 ) Adjustments to prior restructuring costs — 1 — — 1 Balance at April 4, 2015 $ 4,893 $ 35 $ — $ — $ 4,928 Balance at January 2, 2016 $ 3,696 $ 1,005 $ 377 $ — $ 5,078 Restructuring charges 1,676 220 2,181 1,354 5,431 Costs paid or otherwise settled (3,056 ) (323 ) (2,245 ) (1,354 ) (6,978 ) Balance at April 2, 2016 $ 2,316 $ 902 $ 313 $ — $ 3,531 * Includes cancellation of contracts, asset impairments, and accelerated depreciation of ERP systems |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The fair value of the Term Loan approximates the carrying value, which is reflected in our Consolidated Balance Sheets as follows: (In thousands) April 2, 2016 January 2, 2016 Principal amount $ 346,500 $ 347,375 Unamortized original issue discount and debt issuance costs (8,707 ) (8,948 ) Less: Current portion of long-term debt (2,308 ) (7,557 ) Long-term debt $ 335,485 $ 330,870 |
Interest Income and Interest Expense Disclosure | Interest expense related to the Term Loan was included in Interest expense on our Consolidated Statements of Operations as follows: Three Months Ended (In thousands) April 2, 2016 April 4, 2015 Contractual interest $ 4,620 $ 1,327 Amortization of debt issuance costs and discount 241 284 Total Interest expense related to the Term Loan $ 4,861 $ 1,611 |
Schedule of Debt | As of April 2, 2016, expected future principal payments on the Term Loan were as follows: Fiscal year (in thousands) 2016 (remaining 9 months) $ 4,280 2017 36,181 2018 85,812 2019 90,544 2020 78,431 Thereafter 51,252 $ 346,500 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Apr. 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: Three Months Ended (In thousands) April 2, 2016 April 4, 2015 Line item: Cost of products sold $ 259 $ 240 Research and development 2,459 1,509 Selling, general and administrative 1,838 1,635 Acquisition related charges — 3,891 Total stock-based compensation $ 4,556 $ 7,275 |
Segment and Geographic Inform36
Segment and Geographic Information (Tables) | 3 Months Ended |
Apr. 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: Three Months Ended (In thousands) April 2, 2016 April 4, 2015 Asia $ 65,512 68 % $ 62,534 70 % Europe 16,009 17 16,467 19 Americas 14,991 15 9,596 11 Total revenue $ 96,512 100 % $ 88,597 100 % |
Basis of Presentation and Sig37
Basis of Presentation and Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Apr. 02, 2016USD ($)Contract | Apr. 04, 2015 | Jan. 02, 2016USD ($)Contract | Jun. 30, 2016Contract | Jan. 31, 2016Contract | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |||||
Derivative contracts | Contract | 5 | ||||
Risks and Uncertainties [Abstract] | |||||
Allowance for doubtful accounts | $ 700 | $ 600 | |||
Deferred Revenue and Credits [Abstract] | |||||
Inventory valued at published list prices and held by sell-through distributors with right of return | 55,978 | 47,086 | |||
Allowance for distributor advances | (23,420) | (22,290) | |||
Deferred cost of sales related to inventory held by sell-through distributors | (7,785) | (6,930) | |||
Total Deferred income and allowances on sales to sell-through distributors | $ 24,773 | 17,866 | |||
Revenue | Customer Concentration Risk | |||||
Risks and Uncertainties [Abstract] | |||||
Concentration Risk | 8.00% | ||||
Sales Revenue | Customer Concentration Risk | |||||
Risks and Uncertainties [Abstract] | |||||
Concentration Risk | 27.00% | 35.00% | |||
Sell-Through Distributors | Customer Concentration Risk | |||||
Risks and Uncertainties [Abstract] | |||||
Concentration Risk | 53.00% | 48.00% | |||
Not designated as effective hedges for accounting purposes | Foreign exchange contracts | |||||
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |||||
Open foreign exchange contracts - notional amounts | $ 2,100 | $ 3,300 | |||
Not designated as effective hedges for accounting purposes | Derivative One | |||||
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |||||
Derivative contracts | Contract | 6 | 2 | |||
Maximum | |||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||
Term of maturities of investments considered cash and cash equivalents | 3 months | ||||
Customer A | Revenue | Customer Concentration Risk | |||||
Risks and Uncertainties [Abstract] | |||||
Concentration Risk | 10.00% | ||||
Sell-Through Distributor A | Sell-Through Distributors | Customer Concentration Risk | |||||
Risks and Uncertainties [Abstract] | |||||
Concentration Risk | 41.00% | 11.00% | |||
Sell-Through Distributor B | Sell-Through Distributors | Customer Concentration Risk | |||||
Risks and Uncertainties [Abstract] | |||||
Concentration Risk | 29.00% | 15.00% | |||
Other Nonoperating Income (Expense) | |||||
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |||||
Gain on foreign exchange contracts adjusted to fair value through earnings - less than | $ 200 | $ 100 | |||
Scenario, Forecast | Not designated as effective hedges for accounting purposes | Derivative One | |||||
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |||||
Derivative contracts | Contract | 4 |
Net Loss per Share (Details)
Net Loss per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Earnings Per Share [Abstract] | ||
Basic and diluted Net loss | $ (19,711) | $ (53,347) |
Shares used in diluted Net (loss) income per share (in shares) | 118,833 | 116,863 |
Net loss per share, basic and diluted (in usd per shares) | $ (0.17) | $ (0.46) |
Stock options, RSU's and ESPP shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of EPS (in shares) | 8,200 | 11,500 |
Marketable Securities Compositi
Marketable Securities Composition (Details) - Short-term marketable securities - USD ($) $ in Thousands | Apr. 02, 2016 | Jan. 02, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Maturing within one year | $ 11,855 | $ 12,144 |
Maturing between one and two years | 0 | 5,824 |
Total marketable securities | 11,855 | 17,968 |
Corporate and government bonds and notes, and commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total marketable securities | 11,775 | 17,888 |
Certificates of deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total marketable securities | $ 80 | $ 80 |
Fair Value of Financial Instr40
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Apr. 02, 2016 | Jan. 02, 2016 |
Total | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Foreign currency forward exchange contracts, net | $ (152) | $ (12) |
Total fair value of financial instruments | 11,703 | 17,956 |
Short-term marketable securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of marketable securities | 11,855 | 17,968 |
Short-term marketable securities | Total | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of marketable securities | 11,855 | 17,968 |
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 | 11,775 | 17,888 |
Level 1 | Short-term marketable securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of marketable securities | 11,775 | 17,888 |
Level 2 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Foreign currency forward exchange contracts, net | (152) | (12) |
Total fair value of financial instruments | (72) | 68 |
Level 2 | Short-term marketable securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of marketable securities | 80 | 80 |
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 marketable securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of marketable securities | $ 0 | $ 0 |
Fair Value of Financial Instr41
Fair Value of Financial Instruments Unobservable Inputs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Short-term marketable securities | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized gain (loss) | $ 0.1 | $ 0.1 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Apr. 02, 2016 | Jan. 02, 2016 |
Inventory Disclosure [Abstract] | ||
Work in progress | $ 63,116 | $ 57,865 |
Finished goods | 19,482 | 18,031 |
Total inventories | $ 82,598 | $ 75,896 |
Business Combinations and Goo43
Business Combinations and Goodwill (Acquisition Silicon Image) (Details) - Silicon Image, Inc - USD ($) $ in Thousands | Mar. 10, 2015 | Apr. 02, 2016 |
Business Combination, Consideration Transferred [Abstract] | ||
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 | $ 2,100 |
Total purchase consideration | $ 588,477 |
Business Combinations and Goo44
Business Combinations and Goodwill (Allocation of the Purchase Price) (Details) - USD ($) $ in Thousands | Apr. 02, 2016 | Jan. 02, 2016 | Mar. 10, 2015 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||
Goodwill | $ 269,766 | $ 267,549 | |
Silicon Image, Inc | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||
Cash, cash equivalents and short-term investments | 157,923 | ||
Accounts receivable | 30,677 | ||
Inventory | 20,839 | ||
Other current assets | 7,183 | ||
Property and equipment | 23,429 | ||
Other non-current assets | 1,573 | ||
Intangible assets | 192,079 | $ 192,079 | |
Goodwill | 237,608 | $ 237,600 | |
Total assets acquired | 671,311 | ||
Accounts payable and other accrued liabilities | 47,735 | ||
Other current liabilities | 1,252 | ||
Long-term liabilities | 26,675 | ||
Redeemable noncontrolling interest | 7,172 | ||
Total liabilities assumed | 82,834 | ||
Fair value of net assets acquired | $ 588,477 |
Business Combinations and Goo45
Business Combinations and Goodwill (Identified Intangible Assets Acquired) (Details) - Silicon Image, Inc - USD ($) $ in Thousands | Mar. 10, 2015 | Apr. 02, 2016 |
Allocation of purchase price to assets acquired based on fair values: | ||
Total identified finite-lived intangible assets | $ 157,079 | |
Total identified intangible assets | 192,079 | $ 192,079 |
Developed technology | ||
Allocation of purchase price to assets acquired based on fair values: | ||
Total identified finite-lived intangible assets | 125,000 | |
Customer relationships | ||
Allocation of purchase price to assets acquired based on fair values: | ||
Total identified finite-lived intangible assets | 29,458 | |
Licensing Agreements | ||
Allocation of purchase price to assets acquired based on fair values: | ||
Total identified finite-lived intangible assets | 1,852 | |
Patents | ||
Allocation of purchase price to assets acquired based on fair values: | ||
Total identified finite-lived intangible assets | $ 769 | |
Asset Life in Years | 5 years | |
In Process Research and Development [Member] | ||
Allocation of purchase price to assets acquired based on fair values: | ||
In-process research and development | $ 35,000 | |
Minimum | Developed technology | ||
Allocation of purchase price to assets acquired based on fair values: | ||
Asset Life in Years | 3 years | |
Minimum | Customer relationships | ||
Allocation of purchase price to assets acquired based on fair values: | ||
Asset Life in Years | 4 years | |
Minimum | Licensing Agreements | ||
Allocation of purchase price to assets acquired based on fair values: | ||
Asset Life in Years | 3 years | |
Maximum | Developed technology | ||
Allocation of purchase price to assets acquired based on fair values: | ||
Asset Life in Years | 5 years | |
Maximum | Customer relationships | ||
Allocation of purchase price to assets acquired based on fair values: | ||
Asset Life in Years | 7 years | |
Maximum | Licensing Agreements | ||
Allocation of purchase price to assets acquired based on fair values: | ||
Asset Life in Years | 5 years |
Business Combinations and Goo46
Business Combinations and Goodwill (Narrative) (Details) - USD ($) | Mar. 10, 2015 | Apr. 02, 2016 | Apr. 04, 2015 | Jan. 02, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill and intangible asset impairment | $ 0 | $ 0 | ||
Goodwill | 269,766,000 | $ 267,549,000 | ||
Silicon Image, Inc | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, percentage of ownership | 100.00% | |||
Fair value of partially vested stock options and RSUs assumed | $ 5,139,000 | 2,100,000 | ||
Goodwill | $ 237,600,000 | 237,608,000 | ||
Series of Individually Immaterial Business Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 44,800,000 | |||
SiliconBlue Technologies Ltd. and Silicon Image, Inc | ||||
Business Acquisition [Line Items] | ||||
Goodwill and intangible asset impairment | $ 12,700,000 |
Intangible Assets (Intangible A
Intangible Assets (Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Jan. 02, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 118,675 | |
Intangible Assets, Net (Excluding Goodwill) | 153,675 | $ 162,583 |
SiliconBlue Technologies Ltd. and Silicon Image, Inc | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 165,540 | |
Accumulated Amortization | (46,865) | |
Total | 118,675 | |
Intangible Assets, Gross (Excluding Goodwill) | 200,540 | |
Intangible Assets, Net (Excluding Goodwill) | $ 153,675 | |
SiliconBlue Technologies Ltd. and Silicon Image, Inc | Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (in years) | 4 years 8 months 12 days | |
Gross | $ 131,844 | |
Accumulated Amortization | (35,801) | |
Total | $ 96,043 | |
SiliconBlue Technologies Ltd. and Silicon Image, Inc | Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (in years) | 5 years 6 months | |
Gross | $ 30,800 | |
Accumulated Amortization | (10,142) | |
Total | $ 20,658 | |
SiliconBlue Technologies Ltd. and Silicon Image, Inc | Licensing Agreements | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (in years) | 2 years 6 months | |
Gross | $ 2,127 | |
Accumulated Amortization | (758) | |
Total | $ 1,369 | |
SiliconBlue Technologies Ltd. and Silicon Image, Inc | Patents | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (in years) | 5 years | |
Gross | $ 769 | |
Accumulated Amortization | (164) | |
Total | 605 | |
In Process Research and Development [Member] | SiliconBlue Technologies Ltd. and Silicon Image, Inc | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 35,000 |
Intangible Assets (Amortization
Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of acquired intangible assets | $ 8,721 | $ 2,942 |
SiliconBlue Technologies Ltd. and Silicon Image, Inc | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of acquired intangible assets | 8,907 | 3,003 |
Research and development | SiliconBlue Technologies Ltd. and Silicon Image, Inc | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of acquired intangible assets | $ 186 | $ 61 |
Intangible Assets (Intangible49
Intangible Assets (Intangible Assets, Amortization Expense) (Details) $ in Thousands | Apr. 02, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2016 (remaining 9 months) | $ 26,169 |
2,016 | 33,275 |
2,017 | 26,793 |
2,018 | 24,009 |
2,020 | 6,063 |
Thereafter | 2,366 |
Total | $ 118,675 |
Equity Method Investment (Detai
Equity Method Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Apr. 02, 2016 | Jan. 02, 2016 | Apr. 04, 2015 | Apr. 02, 2016 | Oct. 03, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||||
Cash paid for a non-marketable equity-method investment | $ 0 | $ 1,500 | $ 3,000 | ||
Cost method investment, ownership percentage | 15.80% | ||||
Equity method investment, ownership percentage | 22.70% | ||||
Payments to acquire equity method investments | $ 2,000 | ||||
Equity method investments | $ 5,000 | ||||
Equity in net loss of an unconsolidated affiliate, net of tax | (310) | $ 0 | $ (800) | ||
Other Noncurrent Assets | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments | $ 4,200 | $ 4,200 |
Accounts Payable and Accrued 51
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Apr. 02, 2016 | Jan. 02, 2016 |
Related Party Transaction [Line Items] | ||
Trade accounts payable | $ 33,901 | $ 18,616 |
Accounts payable and accrued expenses (includes restructuring) | 90,820 | 74,298 |
Other accrued expenses | 36,628 | 39,039 |
Total accounts payable and accrued expenses | 90,820 | 74,298 |
Consortia | ||
Related Party Transaction [Line Items] | ||
Accounts payable and accrued expenses (includes restructuring) | $ 20,291 | $ 16,643 |
Changes in Stockholders' Equi52
Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | $ 305,520 | |
Net loss for the three months ended April 2, 2016 | (19,711) | |
Unrealized loss related to marketable securities, net of tax | (28) | $ (20) |
Recognized loss on redemption of marketable securities, previously unrealized | 2 | 288 |
Translation adjustments, net of tax | 237 | $ (6) |
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax | 592 | |
Stock-based compensation expense related to stock options, ESPP and RSUs | 4,556 | |
Ending balance | 291,168 | |
Common stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 1,187 | |
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax | 4 | |
Ending balance | 1,191 | |
Additional Paid-in capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 660,089 | |
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax | 588 | |
Stock-based compensation expense related to stock options, ESPP and RSUs | 4,556 | |
Ending balance | 665,233 | |
Accumulated deficit | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (352,846) | |
Net loss for the three months ended April 2, 2016 | (19,711) | |
Ending balance | (372,557) | |
Accumulated other comprehensive loss | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (2,910) | |
Unrealized loss related to marketable securities, net of tax | (28) | |
Recognized loss on redemption of marketable securities, previously unrealized | 2 | |
Translation adjustments, net of tax | 237 | |
Ending balance | $ (2,699) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 02, 2016 | Apr. 04, 2015 | Jan. 02, 2016 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Income tax expense | $ 1,900 | $ 24,665 | |
Deferred tax assets, valuation allowance | $ 21,000 | ||
Unrecognized tax benefits that could significantly change during the next twelve months | 200 | ||
Total potential decrease in UTB | 200 | ||
Maximum | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Unrecognized tax benefits, associated interest and penalties that could significantly change within the next twelve months | $ 100 | ||
U.S. Federal | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Statutory income tax rate | 35.00% | ||
Internal Revenue Service (IRS) | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Operating loss carryforwards | $ 339,900 | ||
Tax credit carryforward, amount | 48,200 | ||
State and Local Jurisdiction | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Operating loss carryforwards | 239,900 | ||
Tax credit carryforward, amount | 55,900 | ||
Other Long-term Liabilities | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Uncertain tax positions | $ 24,400 | 23,300 | |
No Expiration Date | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Tax credit carryforward, amount | $ 53,400 |
Restructuring Narrative (Detail
Restructuring Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 7 Months Ended | 15 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | Apr. 02, 2016 | Apr. 02, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 5,431 | $ 4,894 | ||
March 2015 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 3,600 | 4,900 | $ 16,900 | |
September 2015 Reduction | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,800 | $ 0 | $ 7,800 | |
Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and elated cost, expected cost | 17,000 | 17,000 | 17,000 | |
Minimum | Severance and related | September 2015 Reduction | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and elated cost, expected cost | 7,000 | 7,000 | 7,000 | |
Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and elated cost, expected cost | 21,000 | 21,000 | 21,000 | |
Maximum | Severance and related | September 2015 Reduction | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and elated cost, expected cost | $ 10,000 | $ 10,000 | $ 10,000 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of the period | $ 5,078 | $ 182 |
Restructuring charges | 5,431 | 4,893 |
Costs paid or otherwise settled | (6,978) | (148) |
Adjustments to prior restructuring costs | 1 | |
Balance at the end of the period | 3,531 | 4,928 |
Severance and related | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of the period | 3,696 | 0 |
Restructuring charges | 1,676 | 4,893 |
Costs paid or otherwise settled | (3,056) | 0 |
Adjustments to prior restructuring costs | 0 | |
Balance at the end of the period | 2,316 | 4,893 |
Lease Termination | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of the period | 1,005 | 43 |
Restructuring charges | 220 | 0 |
Costs paid or otherwise settled | (323) | (9) |
Adjustments to prior restructuring costs | 1 | |
Balance at the end of the period | 902 | 35 |
Software Contracts & Engineering Tools | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of the period | 377 | 0 |
Restructuring charges | 2,181 | 0 |
Costs paid or otherwise settled | (2,245) | 0 |
Adjustments to prior restructuring costs | 0 | |
Balance at the end of the period | 313 | 0 |
Other | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of the period | 0 | 139 |
Restructuring charges | 1,354 | 0 |
Costs paid or otherwise settled | (1,354) | (139) |
Adjustments to prior restructuring costs | 0 | |
Balance at the end of the period | $ 0 | $ 0 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | Mar. 10, 2015 | Apr. 02, 2016 | Apr. 04, 2015 | Jan. 02, 2016 |
Debt Instrument [Line Items] | ||||
Principal amount | $ 346,500,000 | |||
Repayment of debt | (875,000) | $ 0 | ||
Debt instrument, periodic payment terms, additional payments | 1,700,000 | |||
Line of Credit | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 350,000,000 | 346,500,000 | $ 347,375,000 | |
Repayment of debt | 346,500,000 | |||
Debt instrument, unamortized discount | 3,500,000 | 8,707,000 | $ 8,948,000 | |
Debt issuance cost | $ 8,300,000 | |||
Debt instrument, interest rate, effective percentage | 6.06% | |||
Debt instrument, periodic payment | $ 900,000 | |||
Debt instrument, payment, percentage | 75.00% | |||
Line of Credit | Term Loan | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage rate range, minimum | 1.00% | |||
Debt instrument, basis spread on variable rate | 4.25% | |||
Minimum | Line of Credit | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, payment, percentage | 0.00% | |||
Maximum | Line of Credit | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, payment, percentage | 75.00% |
Long-Term Debt (Debt Schedule)
Long-Term Debt (Debt Schedule) (Details) - USD ($) | Apr. 02, 2016 | Jan. 02, 2016 | Mar. 10, 2015 |
Debt Instrument [Line Items] | |||
Principal amount | $ 346,500,000 | ||
Line of Credit | Term Loan | |||
Debt Instrument [Line Items] | |||
Principal amount | 346,500,000 | $ 347,375,000 | $ 350,000,000 |
Unamortized original issue discount and debt issuance costs | (8,707,000) | (8,948,000) | $ (3,500,000) |
Less: Current portion of long-term debt | (2,308,000) | (7,557,000) | |
Long-term debt | $ 335,485,000 | $ 330,870,000 |
Long-Term Debt (Interest Expens
Long-Term Debt (Interest Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Debt Disclosure [Abstract] | ||
Contractual interest | $ 4,620 | $ 1,327 |
Amortization of debt issuance costs and discount | 241 | 284 |
Total Interest expense related to the Term Loan | $ 4,861 | $ 1,611 |
Long-Term Debt (Future Principa
Long-Term Debt (Future Principal Payments) (Details) $ in Thousands | Apr. 02, 2016USD ($) |
Debt Disclosure [Abstract] | |
2016 (remaining 9 months) | $ 4,280 |
2,017 | 36,181 |
2,018 | 85,812 |
2,018 | 90,544 |
2,019 | 78,431 |
2,020 | 51,252 |
Total | $ 346,500 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock-based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | $ 4,556 | $ 7,275 |
Cost of products sold | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 259 | 240 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 2,459 | 1,509 |
Selling, general and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 1,838 | 1,635 |
Acquisition-related Costs | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | $ 0 | $ 3,891 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | Jul. 04, 2015 | Apr. 02, 2016 | Jan. 02, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total stock-based compensation | $ 4,556 | $ 7,275 | |||
Decrease in employee related liabilities | 1,700 | ||||
Accrued payroll obligations | $ 6,015 | $ 2,200 | $ 6,015 | $ 9,463 | |
Award requisite service period | 2 years | ||||
Comparison period | 2 years | ||||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total stock-based compensation | $ 100 | ||||
Grants in Period (in shares) | 327,200 | 0 | 0 | ||
Options, nonvested, (in shares) | 296,300 | 296,300 | |||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grants in Period (in shares) | 70,000 | ||||
Options, nonvested, (in shares) | 70,000 | 70,000 | |||
Minimum | Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights, percentage | 0.00% | ||||
Maximum | Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights, percentage | 200.00% |
Contingencies (Details)
Contingencies (Details) - complant | Feb. 13, 2015 | Jan. 30, 2015 | Jan. 29, 2015 |
Molland v. George, et al. and Stein v. Silicon Image, Inc. | |||
Loss Contingencies [Line Items] | |||
Pending claims, number | 2 | 5 | 2 |
Segment and Geographic Inform63
Segment and Geographic Information (Details) $ in Thousands | 3 Months Ended | ||
Apr. 02, 2016USD ($)segment | Apr. 04, 2015USD ($) | Jan. 02, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of operating segments | segment | 2 | ||
Number of reportable segments | segment | 1 | ||
Total revenue | $ 96,512 | $ 88,597 | |
Total revenue as percentage | 100.00% | 100.00% | |
Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 65,512 | $ 62,534 | |
Total revenue as percentage | 68.00% | 70.00% | |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 16,009 | $ 16,467 | |
Total revenue as percentage | 17.00% | 19.00% | |
Americas | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 14,991 | $ 9,596 | |
Total revenue as percentage | 15.00% | 11.00% | |
Qterics | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue, percent | 0.40% | 0.20% | |
Net Loss, percent | 4.10% | 0.40% | |
Assets, percent | 0.30% | 0.80% |