Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 01, 2016 | Nov. 08, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | LATTICE SEMICONDUCTOR CORP | |
Entity Central Index Key | 855,658 | |
Document Type | 10-Q | |
Document Period End Date | Oct. 1, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding (actual number) | 121,153,068 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Income Statement [Abstract] | ||||
Product | $ 102,816 | $ 98,572 | $ 280,374 | $ 280,587 |
Licensing and services | 10,409 | 11,143 | 28,572 | 24,185 |
Total revenue | 113,225 | 109,715 | 308,946 | 304,772 |
Costs and expenses: | ||||
Cost of product revenue | 45,695 | 49,415 | 125,412 | 138,250 |
Cost of licensing and services revenue | 106 | 451 | 580 | 715 |
Research and development | 27,747 | 37,619 | 91,270 | 104,813 |
Selling, general, and administrative | 29,244 | 23,819 | 75,857 | 73,096 |
Amortization of acquired intangible assets | 8,260 | 8,941 | 25,292 | 20,824 |
Restructuring charges | 317 | 6,818 | 8,316 | 15,780 |
Acquisition related charges | 0 | 610 | 94 | 22,078 |
Impairment of intangible assets | 7,866 | 0 | 7,866 | 0 |
Costs and Expenses | 119,235 | 127,673 | 334,687 | 375,556 |
Loss from operations | (6,010) | (17,958) | (25,741) | (70,784) |
Interest expense | (5,235) | (5,754) | (15,257) | (12,870) |
Other income (expense), net | 209 | (841) | 3,558 | (1,095) |
Loss before income taxes and equity in net loss of an unconsolidated affiliate | (11,036) | (24,553) | (37,440) | (84,749) |
Income tax expense | 971 | 309 | 7,410 | 29,030 |
Equity in net loss of an unconsolidated affiliate, net of tax | (407) | 0 | (1,085) | 0 |
Net loss | $ (12,414) | $ (24,862) | $ (45,935) | $ (113,779) |
Net loss per share, basic and diluted (in usd per shares) | $ (0.10) | $ (0.21) | $ (0.38) | $ (0.97) |
Shares used in per share calculations, basic and diluted (in shares) | 120,584 | 117,669 | 119,596 | 117,151 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Loss (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (12,414) | $ (24,862) | $ (45,935) | $ (113,779) |
Other comprehensive loss: | ||||
Unrealized loss related to marketable securities, net of tax | (61) | (130) | (88) | (133) |
Reclassification adjustment for losses related to marketable securities included in other income (expense), net of tax | 0 | 209 | 38 | 443 |
Translation adjustment, net of tax | (138) | (697) | (579) | (752) |
Change in actuarial valuation of defined benefit pension | 0 | (1) | 141 | (156) |
Comprehensive loss | $ (12,613) | $ (25,481) | $ (46,423) | $ (114,377) |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Oct. 01, 2016 | Jan. 02, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 87,163 | $ 84,606 |
Short-term marketable securities | 11,751 | 17,968 |
Accounts receivable, net of allowance for doubtful accounts | 93,946 | 88,471 |
Inventories | 80,540 | 75,896 |
Prepaid expenses and other current assets | 18,614 | 18,922 |
Total current assets | 292,014 | 285,863 |
Property and equipment, less accumulated depreciation of $130,968 at October 1, 2016 and $118,943 at January 2, 2016 | 51,576 | 51,852 |
Intangible assets, net of amortization | 127,332 | 162,583 |
Goodwill | 269,771 | 267,549 |
Deferred income taxes | 473 | 578 |
Other long-term assets | 15,087 | 17,495 |
Total assets | 756,253 | 785,920 |
Current liabilities: | ||
Accounts payable and accrued expenses (includes restructuring) | 76,986 | 74,298 |
Accrued payroll obligations | 9,009 | 9,463 |
Current portion of long-term debt | 27,613 | 7,557 |
Deferred income and allowances on sales to sell-through distributors | 20,933 | 17,866 |
Deferred licensing and services revenue | 653 | 1,993 |
Total current liabilities | 135,194 | 111,177 |
Long-term debt | 307,747 | 330,870 |
Other long-term liabilities | 39,638 | 38,353 |
Total liabilities | 482,579 | 480,400 |
Contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value, 10,000,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $.01 par value, 300,000,000 shares authorized; 121,000,000 shares issued and outstanding as of October 1, 2016 and 118,651,000 shares issued and outstanding as of January 2, 2016 | 1,210 | 1,187 |
Additional paid-in capital | 674,643 | 660,089 |
Accumulated deficit | (398,781) | (352,846) |
Accumulated other comprehensive loss | (3,398) | (2,910) |
Total stockholders' equity | 273,674 | 305,520 |
Total liabilities and stockholders' equity | $ 756,253 | $ 785,920 |
Consolidated Balance Sheets (u5
Consolidated Balance Sheets (unaudited) (Parentheticals) - USD ($) $ in Thousands | Oct. 01, 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 | 121,000,000 | 118,651,000 |
Common stock, shares outstanding | 121,000,000 | 118,651,000 |
Accumulated depreciation | $ 130,968 | $ 118,943 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 01, 2016 | Oct. 03, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (45,935) | $ (113,779) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 47,908 | 42,916 |
Impairment of intangible assets | 7,866 | 0 |
Amortization of debt issuance costs and discount | 1,212 | 2,037 |
Change in deferred income tax provision | 0 | 17,689 |
Loss on sale or maturity of marketable securities | 72 | 336 |
Stock-based compensation expense | 12,107 | 13,609 |
Loss on disposal of fixed assets | 263 | 0 |
Gain on sale of business unit | (2,646) | 0 |
Equity in net loss of an unconsolidated affiliate, net of tax | 1,085 | 0 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (5,728) | 7,708 |
Inventories | (4,644) | 6,738 |
Prepaid expenses and other current assets | (2,227) | (2,776) |
Accounts payable and accrued expenses (includes restructuring) | 6,295 | 7,786 |
Accrued payroll obligations | (454) | (10,309) |
Income taxes payable | 1,335 | 971 |
Deferred income and allowances on sales to sell-through distributors | 3,067 | 5,481 |
Deferred income and allowances on sales to sell-through distributors | (258) | 967 |
Net cash provided by (used in) operating activities | 19,318 | (20,626) |
Cash flows from investing activities: | ||
Proceeds from sales of and maturities of short-term marketable securities | 11,977 | 142,956 |
Purchases of marketable securities, net | (5,961) | (4,005) |
Cash paid for business acquisition, net of cash acquired | 0 | (431,068) |
Capital expenditures | (13,991) | (11,584) |
Proceeds from sale of business unit, net of cash sold | 1,972 | 0 |
Cash paid for a non-marketable equity method investment | (1,000) | (3,000) |
Cash paid for software licenses | (7,370) | (5,393) |
Net cash used in investing activities | (14,373) | (312,094) |
Cash flows from financing activities: | ||
Proceeds from issuance of restricted stock units, net of withholding taxes | (2,883) | (2,660) |
Purchases of treasury stock | 0 | (6,970) |
Net proceeds from issuance of common stock | 5,353 | 3,382 |
Net proceeds from issuance of long-term debt | 0 | 346,500 |
Cash paid for debt issuance costs | 0 | (8,283) |
Repayment of debt | (4,279) | (1,750) |
Net cash (used in) provided by financing activities | (1,809) | 330,219 |
Effect of exchange rate change on cash | (579) | (754) |
Net increase in cash and cash equivalents | 2,557 | (3,255) |
Beginning cash and cash equivalents | 84,606 | 115,611 |
Ending cash and cash equivalents | 87,163 | 112,356 |
Supplemental cash flow information: | ||
Change in unrealized gain (loss) related to marketable securities, net of tax, included in Accumulated other comprehensive loss | (50) | (133) |
Income taxes paid, net of refunds | 7,250 | 5,403 |
Interest paid | 13,849 | 6,225 |
Accrued purchases of plant and equipment | $ 402 | $ 817 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Oct. 01, 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 third quarter of fiscal 2016 and third quarter of fiscal 2015 ended on October 1, 2016 and October 3, 2015 , respectively. All references to quarterly, three or nine months ended financial results are references to the results for the relevant 13-week or 39-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 nine months ended October 3, 2015 include the results of Silicon Image, Inc. ("Silicon Image") for the approximately 29-week period from March 11, 2015 through October 3, 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 amounting to $0.1 million and $0.2 million was reported separately for the third quarter and first nine months, respectively, of fiscal 2015 and 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 While our revenues and the majority of our expenses are denominated in U.S. dollars, we have international subsidiary and branch operations that conduct some transactions in foreign currencies. In addition, a portion of our silicon wafer and other purchases were historically denominated in Japanese yen, we billed certain Japanese customers in yen, and we 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 accord-ance 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 October 1, 2016 and January 2, 2016 , we had open contracts for Japanese yen of $ 1.3 million and $ 3.3 million , respectively. The one contract outstanding at October 1, 2016 will settle in June 2017 . Of the six contracts outstanding at January 2, 2016 , two settled in January 2016 and four settled 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 less than $0.1 million for both the fiscal quarters ended October 1, 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 products. Customer concentration risk may impact revenue. Our top five end customers constituted approximately 32% of our revenue for the third quarter of fiscal 2016 , compared to approximately 31% for the third quarter of fiscal 2015 . Our top five end customers constituted approximately 25% of our revenue for the first nine months of fiscal 2016 , compared to approximately 33% for the first nine months of fiscal 2015 . Our largest end customer accounted for approximately 14% of total revenue in the third quarter of fiscal 2016 and 7% of total revenue in the first nine months of fiscal 2016 . In the third quarter and first nine months of fiscal 2015, our largest end customer accounted for approximately 9% and 11% , respectively, of total revenue. 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 third quarter of fiscal 2016 and fiscal 2015 was 62% and 46% , respectively. Revenue attributable to resale of products by our sell-through distributors for the first nine months of fiscal 2016 and fiscal 2015 was 58% and 45% , respectively. Our two largest distributor groups also account for a substantial portion of our trade receivables. At October 1, 2016 and January 2, 2016 , one distributor group accounted for 35% and 29% , respectively, and the other accounted for 31% 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. We regularly review our allowance for doubtful accounts and the aging of our accounts receivable. Accounts receivable do not bear interest and are shown net of allowances for doubtful accounts of $7.2 million at October 1, 2016 and $0.6 million at January 2, 2016 . Towards the end of our fiscal quarter, we received notice from one of our distributor groups that indicated a high likelihood of their bankruptcy. As a result, we wrote off our accounts receivable, net of deferred revenue, from the distributor group resulting in an increase in allowance for doubtful accounts of $6.6 million and bad debt expense of $7.5 million for both the third quarter and first nine months of fiscal 2016 . Bad debt expense was negligible for the third quarter and first nine months of fiscal 2015 . 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. We seek to mitigate the concentration of supply risk by establishing, maintaining and managing multiple foundry relationships, but certain of our products are sourced from a single foundry. 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. For this reason, we do not recognize revenue until products are resold by sell-through distributors to an end customer. 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. At the time of shipment to sell-through 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) October 1, January 2, Inventory valued at published list prices and held by sell-through distributors with right of return $ 79,199 $ 47,086 Allowance for distributor advances (37,910 ) (22,290 ) Deferred cost of sales related to inventory held by sell-through distributors (20,356 ) (6,930 ) Total Deferred income and allowances on sales to sell-through distributors $ 20,933 $ 17,866 Inventory valued at published list prices and held by sell-through distributors with a right of return was greater at October 1, 2016 compared to January 2, 2016 due to an inventory buildup for new programmable products business for a major mobile handset provider that started in the second quarter of fiscal 2016, as well as due to seasonal inventory buildup for year-end primarily at our Asian distributors. A significant portion of our revenue in the third quarter and first nine months 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 62% and 58% for the three and nine months ended October 1, 2016 , respectively, and 46% and 45% for the three and nine months ended October 3, 2015 , respectively. We use estimates and apply judgment to reconcile sell-through distributors' inventories. 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, and royalty and adopter fee revenue from our standards activities. These activities are complementary to our product sales and help us monetize our IP 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 reported 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 associated with 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 it relates 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 payment 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 collection 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 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 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 2016-09, 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. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The new guidance is intended to reduce diversity in practice in how cash receipts and cash payments are classified in the statement of cash flows. For public business entities, this guidance will be effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted. We are currently evaluating the impact of ASU 2016-15 on our consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . This update is intended to recognize the income tax consequences of intra-entity transfers of assets other than inventory when they occur by removing the exception to postpone recognition until the asset has been sold to an outside party. For public business entities, this guidance is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted, and it is required to be applied on a modified retrospective basis through a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. We have not yet determined the impact of ASU 2016-16 on our consolidated condensed financial statements and related disclosures. |
Net Loss per Share
Net Loss per Share | 9 Months Ended |
Oct. 01, 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 Nine Months Ended (in thousands, except per share data) October 1, October 3, October 1, October 3, Basic and diluted net loss $ (12,414 ) $ (24,862 ) $ (45,935 ) $ (113,779 ) Shares used in basic and diluted net loss per share 120,584 117,669 119,596 117,151 Basic and diluted net loss per share $ (0.10 ) $ (0.21 ) $ (0.38 ) $ (0.97 ) The computation of diluted net loss per share for the three and nine months ended October 1, 2016 excludes the effects of stock options, RSUs, and ESPP shares, aggregating approximately 8.2 million shares and 8.3 million shares, respectively, which are antidilutive. The computation of diluted net loss per share for the three and nine months ended October 3, 2015 excludes the effects of stock options, RSUs, and ESPP shares aggregating approximately 3.2 million shares and 9.4 million shares, respectively, 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 October 1, 2016 could become dilutive in the future. |
Marketable Securities
Marketable Securities | 9 Months Ended |
Oct. 01, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities We classify our marketable securities as short-term based on their nature and availability for use in current operations. Our short-term marketable securities currently have contractual maturities of up to two years. The following table summarizes the remaining maturities of our marketable securities at fair value: (In thousands) October 1, 2016 January 2, 2016 Short-term marketable securities: Maturing within one year $ 8,742 $ 12,144 Maturing between one and two years 3,009 5,824 Total marketable securities $ 11,751 $ 17,968 The following table summarizes the composition of our marketable securities at fair value: (In thousands) October 1, 2016 January 2, 2016 Short-term marketable securities: Corporate and government bonds and notes, and commercial paper $ 11,672 $ 17,888 Certificates of deposit 79 80 Total marketable securities $ 11,751 $ 17,968 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Oct. 01, 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 October 1, 2016 January 2, 2016 (In thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Short-term marketable securities $ 11,751 $ 11,672 $ 79 $ — $ 17,968 $ 17,888 $ 80 $ — Foreign currency forward exchange contracts, net — — — — (12 ) — (12 ) — Total fair value of financial instruments $ 11,751 $ 11,672 $ 79 $ — $ 17,956 $ 17,888 $ 68 $ — We invest in various financial instruments including corporate and government bonds and notes, commercial paper, and certificates of deposit. 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. As a result, the determination of fair value for Level 3 instruments requires significant management judgment and subjectivity. We did not hold any Level 3 instruments during the periods presented. There were no transfers between any of the levels during the first nine 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 the nine months ended October 1, 2016 and approximately $0.1 million during the nine months ended October 3, 2015 on certain short-term marketable securities (Level 1 instruments), which have been recorded in accumulated other comprehensive loss. Future fluctuations in fair value related to these instruments that 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 | 9 Months Ended |
Oct. 01, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (In thousands) October 1, 2016 January 2, 2016 Work in progress $ 53,772 $ 57,865 Finished goods 26,768 18,031 Total inventories $ 80,540 $ 75,896 |
Business Combinations and Goodw
Business Combinations and Goodwill | 9 Months Ended |
Oct. 01, 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, a provider of video, audio, and data connectivity solutions for the mobile, consumer electronics, and personal computer markets. Silicon Image’s results of operations and the acquired cost value of the assets purchased and liabilities assumed are included in Lattice's consolidated financial statements effective March 11, 2015. 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 was no contingent consideration in this acquisition. 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. 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 October 1, 2016. The purchase price allocation has been completed after a final detailed analysis of certain tax matters. 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. 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 is not amortized, but is instead 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 were recorded for the first nine months of 2016 or 2015 as no indicators of impairment were present. The goodwill balance of $270 million at October 1, 2016 is comprised of $45 million from prior acquisitions combined with $238 million from the acquisition of Silicon Image, reduced by a goodwill impairment charge of $13 million in the fourth quarter of fiscal 2015. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Oct. 01, 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. In September 2016, the founders of the HDMI consortium ("Founders"), of which we are a member, updated the Founders Agreement as part of an amendment process resulting in changes to our role as agent for the HDMI consortium and to the model for sharing adopter fee revenues. Lattice has historically served the role of the HDMI Licensing Agent via a wholly owned subsidiary, HDMI Licensing LLC. Under the terms of the amendment agreement, a new independent entity will act as the HDMI Licensing Agent and will be responsible for licensing and the distribution of royalties among Founders; Lattice will continue to serve the role of Agent until the appointment of the new licensing agent, which is expected to occur in fiscal 2017. As a result of the amended model for sharing revenue, we will be entitled to a reduced share of adopter fees paid by parties adopting the HDMI standard. We determined that this modification constituted an impairment indicator related to the intangible assets associated with future HDMI adopter fees. Our assessment of the new value of these intangible assets concluded that they had been impaired as of October 1, 2016, and we recorded a $7.9 million non-cash impairment charge in the Consolidated Statements of Operations. We do not anticipate any future cash expenditures related to this impairment. No impairment charges related to intangible assets were recorded for the first nine months of 2015 as no indicators of impairment were present. The following table summarizes the details of our total purchased intangible assets as of the end of the third quarter of fiscal 2016 : Weighted Average Amortization Period (in years) Gross Impairment Accumulated Amortization Intangible assets, net of amortization (In thousands) October 1, 2016 Developed technology 4.7 $ 130,859 $ — $ (48,153 ) $ 82,706 Customer relationships 6.1 30,800 (7,866 ) (12,751 ) 10,183 Licensed technology 3.3 2,127 — (1,053 ) 1,074 Patents 5 769 — (241 ) 528 Total identified finite-lived intangible assets 164,555 (7,866 ) (62,198 ) 94,491 In-process research and development indefinite 32,841 — — 32,841 Total identified intangible assets $ 197,396 $ (7,866 ) $ (62,198 ) $ 127,332 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 Nine Months Ended (In thousands) October 1, October 3, October 1, October 3, Research and development $ 186 $ 223 $ 559 $ 507 Amortization of acquired intangible assets 8,260 8,941 25,292 20,824 $ 8,446 $ 9,164 $ 25,851 $ 21,331 The annual expected amortization expense related to acquired intangible assets with finite lives is as follows: (In thousands) Amount 2016 (remaining 3 months) $ 8,119 2017 31,659 2018 25,777 2019 22,993 2020 5,290 Thereafter 653 Total $ 94,491 |
Equity Method Investment
Equity Method Investment | 9 Months Ended |
Oct. 01, 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 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. In the third quarter of fiscal 2016 , we made an additional investment of $1.0 million via a convertible debt instrument, bringing our gross investment in the investee to $6.0 million . We have determined that this additional investment is an in-substance common stock and has been included in our equity method accounting but that, in its unconverted state, it does not change our ownership interest. Applying the equity method, our proportionate share of the investee's net loss for the third quarter and first nine months of fiscal 2016 was $0.4 million and $1.1 million , respectively, which we have recognized in the Consolidated Statements of Operations. Through October 1, 2016 , we have reduced the value of our investment by approximately $1.6 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 $4.4 million has been included in other long-term assets in the Consolidated Balance Sheets as of October 1, 2016 . |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 9 Months Ended |
Oct. 01, 2016 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Included in accounts payable and accrued liabilities as of October 1, 2016 and January 2, 2016 were the following balances: (In thousands) October 1, 2016 January 2, 2016 Trade accounts payable $ 35,230 $ 18,616 Payable to members of the HDMI and MHL consortia* 8,872 16,643 Other accrued expenses 32,884 39,039 Total accounts payable and accrued expenses $ 76,986 $ 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 | 9 Months Ended |
Oct. 01, 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 nine months ended October 1, 2016 — — (45,935 ) — (45,935 ) Unrealized loss related to marketable securities, net of tax — — — (88 ) (88 ) Reclassification adjustment for losses related to marketable securities included in other income (expense), net of tax — — — 38 38 Translation adjustments, net of tax — — — (579 ) (579 ) Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax 23 2,448 — — 2,471 Stock-based compensation expense related to stock options, ESPP and RSUs — 12,106 — — 12,106 Defined benefit pension, net of actuarial losses — — — 141 141 Balances, October 1, 2016 $ 1,210 $ 674,643 $ (398,781 ) $ (3,398 ) $ 273,674 |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 01, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended October 1, 2016 and October 3, 2015 , we recorded an income tax provision of approximately $1.0 million and $0.3 million , respectively. For the nine months ended October 1, 2016 and October 3, 2015 , we recorded an income tax provision of approximately $7.4 million and $29.0 million , respectively. The income tax provision for the three and nine months ended October 1, 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 negative effective tax rates for the three and nine months ended October 1, 2016 is primarily due to a valuation allowance increase that offsets the otherwise expected tax benefit from the pretax loss in the United States and the zero tax rate in Bermuda which results in no tax benefit for the pretax loss in Bermuda. During the first quarter of 2015, we concluded that it was more-likely-than-not that we would not 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 2013, state and local, for years before 2012, or foreign, for years before 2010. 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 Indian income tax return is currently under examination for the tax year ended March 31, 2016 , 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 (including penalties and interest) was $29.4 million and $26.9 million at October 1, 2016 and January 2, 2016 , respectively, and is recorded as a component of other long-term liabilities on our Consolidated Balance Sheets. The remainder of our uncertain tax position exposure is netted against deferred tax assets. 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 | 9 Months Ended |
Oct. 01, 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, consolidation of facilities, and cancellation of software contracts and engineering tools. The March 2015 Plan is substantially complete subject to certain remaining expected costs that we do not expect to be material and which will be expensed as incurred under U.S. GAAP rules through the first quarter of fiscal 2017, and any changes in sublease assumptions should they occur. Under this plan, approximately $0.3 million and $6.3 million of expense was incurred during the three and nine months, respectively, ended October 1, 2016 , and $1.4 million and $10.3 million of expense was incurred during the three and nine months, respectively, ended October 3, 2015 . Approximately $19.6 million of total expense has been incurred through October 1, 2016 under the March 2015 Plan. We expect the total cost of the March 2015 Plan to be approximately $21.0 million . 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. The September 2015 Reduction is substantially complete subject to certain remaining expected costs, which we do not expect to be material but which will be expensed as incurred under U.S. GAAP rules through the first quarter of fiscal 2017. Under this reduction, no expense and approximately $2.0 million of expense was incurred during the three and nine months, respectively, ended October 1, 2016 and $5.5 million expense was incurred during the three and nine months ended October 3, 2015 due to the timing of implementation. Approximately $8.0 million of total expense has been incurred through October 1, 2016 under the September 2015 Reduction. We expect the total cost of the September 2015 Reduction to be approximately $9.0 million . 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 actions 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 12,491 1,107 2,000 182 15,780 Costs paid or otherwise settled (5,825 ) (560 ) (1,551 ) (321 ) (8,257 ) Balance at October 3, 2015 $ 6,666 $ 590 $ 449 $ — $ 7,705 Balance at January 2, 2016 $ 3,696 $ 1,005 $ 377 $ — $ 5,078 Restructuring charges 1,863 2,343 1,917 2,193 8,316 Costs paid or otherwise settled (4,688 ) (2,315 ) (2,211 ) (2,066 ) (11,280 ) Balance at October 1, 2016 $ 871 $ 1,033 $ 83 $ 127 $ 2,114 * Includes cancellation of contracts, asset impairments, and accelerated depreciation on certain enterprise resource planning and customer resource management systems |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Oct. 01, 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 October 1, 2016 , subject to a 1.00% floor, plus a spread of 4.25% . The current effective interest rate on the Term Loan is 5.97% . The Term Loan is payable through a combination of (i) quarterly installments of approximately $0.9 million , which began on July 4, 2015, (ii) 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 (iii) 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. In the second quarter of fiscal 2016 , we made a required additional principal payment of $1.7 million due to the sale of Qterics. Over the next twelve months, our principal payments will be comprised mainly of regular quarterly installments along with an expected annual excess cash flow payment. 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 October 1, 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) October 1, 2016 January 2, 2016 Principal amount $ 343,096 $ 347,375 Unamortized original issue discount and debt costs (7,736 ) (8,948 ) Less: Current portion of long-term debt (27,613 ) (7,557 ) Long-term debt $ 307,747 $ 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 Nine Months Ended (In thousands) October 1, October 3, October 1, October 3, Contractual interest $ 4,563 $ 4,633 $ 13,798 $ 10,553 Amortization of original issue discount and debt costs 553 932 1,212 2,037 Total Interest expense related to the Term Loan $ 5,116 $ 5,565 $ 15,010 $ 12,590 As of October 1, 2016 , minimum expected future principal payments on the Term Loan were as follows: Fiscal year (in thousands) 2016 (remaining 3 months) $ 875 2017 38,008 2018 52,895 2019 60,247 2020 64,794 Thereafter 126,277 $ 343,096 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Oct. 01, 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 Nine Months Ended (In thousands) October 1, October 3, October 1, October 3, Cost of products sold $ 231 $ 406 $ 656 $ 1,044 Research and development 2,024 2,789 5,951 6,644 Selling, general and administrative 2,054 1,004 5,500 4,874 Acquisition related charges — 402 — 4,293 Total stock-based compensation $ 4,309 $ 4,601 $ 12,107 $ 16,855 Of the $16.9 million total stock-based compensation for the nine months ended October 3, 2015 , $3.9 million was paid in cash during the period as a result of the acquisition of Silicon Image on March 10, 2015. There have been no cash payments related to stock compensation in fiscal 2016. We have granted stock options and RSUs with a market condition to certain executives, amounting to approximately 327,200 stock options and 70,000 RSUs during the first and second quarters of fiscal 2015 and approximately 321,900 stock options in the second quarter of fiscal 2016. 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. TSR is a measure of stock price appreciation plus dividends paid, if any, in the performance 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. Of these grants with a market condition, approximately 596,600 stock options were outstanding as of October 1, 2016 . We incurred stock compensation expense related to these market condition awards of approximately $0.2 million and approximately $0.4 million in the third quarter and first nine months, respectively, of fiscal 2016 and approximately $0.1 million and approximately $0.4 million in the third quarter and first nine months, respectively, of fiscal 2015 . |
Contingencies
Contingencies | 9 Months Ended |
Oct. 01, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal Matters In February 2016, we 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 on infringed certain patents relating to the HDMI specification. Technicolor filed an answer to our complaint on April 11, 2016, which included various defenses to the alleged patent infringement. Technicolor also has informed us that it may attempt to raise as a counterclaim or in separate litigation a claim for payment to Technicolor and other 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 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 us. 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 | 9 Months Ended |
Oct. 01, 2016 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information Segment Information As of October 1, 2016 , Lattice had one operating segment: the core Lattice business, which includes IP and semiconductor devices. Qterics, a discrete software-as-a-service business unit, was previously an immaterial operating segment in the Lattice legal entity structure. In April 2016, we sold Qterics to an unrelated third party for net proceeds of $2.0 million , net of cash sold, resulting in a gain of $2.6 million . The gain has been included in Other income (expense), net in the Consolidated Statements of Operations. Geographic Information Our revenue by major geographic area, based on ship-to location, was as follows: Three Months Ended Nine Months Ended (In thousands) October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Asia $ 83,797 74 % $ 86,443 79 % $ 216,964 70 % $ 232,372 76 % Europe 13,111 12 13,061 12 43,849 14 43,005 14 Americas 16,317 14 10,211 9 48,133 16 29,395 10 Total revenue $ 113,225 100 % $ 109,715 100 % $ 308,946 100 % $ 304,772 100 % 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 October 1, 2016 as compared to January 2, 2016 . |
Subsequent Event
Subsequent Event | 9 Months Ended |
Oct. 01, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On November 3, 2016, Lattice Semiconductor Corporation and Canyon Bridge Capital Partners, Inc. (“Canyon Bridge”) announced that the Company and Canyon Bridge Acquisition Company, Inc. (“Parent”), an affiliate of Canyon Bridge, have signed a definitive agreement under which Parent will acquire all outstanding shares of Lattice for approximately $1.3 billion inclusive of Lattice’s net debt, or $8.30 per share in cash. The transaction has been unanimously approved by both companies’ boards of directors and is expected to close in early 2017 subject to customary closing conditions, regulatory approvals and approval by Lattice’s shareholders. Upon the completion of the transaction, Lattice will be a wholly owned subsidiary of Parent. |
Basis of Presentation and Sig24
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 01, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Presentation | 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 nine months ended October 3, 2015 include the results of Silicon Image, Inc. ("Silicon Image") for the approximately 29-week period from March 11, 2015 through October 3, 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 amounting to $0.1 million and $0.2 million was reported separately for the third quarter and first nine months, respectively, of fiscal 2015 and 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 While our revenues and the majority of our expenses are denominated in U.S. dollars, we have international subsidiary and branch operations that conduct some transactions in foreign currencies. In addition, a portion of our silicon wafer and other purchases were historically denominated in Japanese yen, we billed certain Japanese customers in yen, and we 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 accord-ance 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 October 1, 2016 and January 2, 2016 , we had open contracts for Japanese yen of $ 1.3 million and $ 3.3 million , respectively. The one contract outstanding at October 1, 2016 will settle in June 2017 . Of the six contracts outstanding at January 2, 2016 , two settled in January 2016 and four settled 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 less than $0.1 million for both the fiscal quarters ended October 1, 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 products. Customer concentration risk may impact revenue. Our top five end customers constituted approximately 32% of our revenue for the third quarter of fiscal 2016 , compared to approximately 31% for the third quarter of fiscal 2015 . Our top five end customers constituted approximately 25% of our revenue for the first nine months of fiscal 2016 , compared to approximately 33% for the first nine months of fiscal 2015 . Our largest end customer accounted for approximately 14% of total revenue in the third quarter of fiscal 2016 and 7% of total revenue in the first nine months of fiscal 2016 . In the third quarter and first nine months of fiscal 2015, our largest end customer accounted for approximately 9% and 11% , respectively, of total revenue. 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 third quarter of fiscal 2016 and fiscal 2015 was 62% and 46% , respectively. Revenue attributable to resale of products by our sell-through distributors for the first nine months of fiscal 2016 and fiscal 2015 was 58% and 45% , respectively. Our two largest distributor groups also account for a substantial portion of our trade receivables. At October 1, 2016 and January 2, 2016 , one distributor group accounted for 35% and 29% , respectively, and the other accounted for 31% 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. We regularly review our allowance for doubtful accounts and the aging of our accounts receivable. Accounts receivable do not bear interest and are shown net of allowances for doubtful accounts of $7.2 million at October 1, 2016 and $0.6 million at January 2, 2016 . Towards the end of our fiscal quarter, we received notice from one of our distributor groups that indicated a high likelihood of their bankruptcy. As a result, we wrote off our accounts receivable, net of deferred revenue, from the distributor group resulting in an increase in allowance for doubtful accounts of $6.6 million and bad debt expense of $7.5 million for both the third quarter and first nine months of fiscal 2016 . Bad debt expense was negligible for the third quarter and first nine months of fiscal 2015 . 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. We seek to mitigate the concentration of supply risk by establishing, maintaining and managing multiple foundry relationships, but certain of our products are sourced from a single foundry. |
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. For this reason, we do not recognize revenue until products are resold by sell-through distributors to an end customer. 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. At the time of shipment to sell-through 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' inventories. 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, and royalty and adopter fee revenue from our standards activities. These activities are complementary to our product sales and help us monetize our IP 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 reported 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 associated with 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 it relates 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 payment 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 collection 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 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 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 2016-09, 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. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The new guidance is intended to reduce diversity in practice in how cash receipts and cash payments are classified in the statement of cash flows. For public business entities, this guidance will be effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted. We are currently evaluating the impact of ASU 2016-15 on our consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . This update is intended to recognize the income tax consequences of intra-entity transfers of assets other than inventory when they occur by removing the exception to postpone recognition until the asset has been sold to an outside party. For public business entities, this guidance is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted, and it is required to be applied on a modified retrospective basis through a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. We have not yet determined the impact of ASU 2016-16 on our consolidated condensed financial statements and related disclosures. |
Basis of Presentation and Sig25
Basis of Presentation and Significant Accounting Policies (Tables) | 9 Months Ended |
Oct. 01, 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) October 1, January 2, Inventory valued at published list prices and held by sell-through distributors with right of return $ 79,199 $ 47,086 Allowance for distributor advances (37,910 ) (22,290 ) Deferred cost of sales related to inventory held by sell-through distributors (20,356 ) (6,930 ) Total Deferred income and allowances on sales to sell-through distributors $ 20,933 $ 17,866 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 9 Months Ended |
Oct. 01, 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 Nine Months Ended (in thousands, except per share data) October 1, October 3, October 1, October 3, Basic and diluted net loss $ (12,414 ) $ (24,862 ) $ (45,935 ) $ (113,779 ) Shares used in basic and diluted net loss per share 120,584 117,669 119,596 117,151 Basic and diluted net loss per share $ (0.10 ) $ (0.21 ) $ (0.38 ) $ (0.97 ) |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Oct. 01, 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) October 1, 2016 January 2, 2016 Short-term marketable securities: Maturing within one year $ 8,742 $ 12,144 Maturing between one and two years 3,009 5,824 Total marketable securities $ 11,751 $ 17,968 |
Schedule of Composition of Marketable Securities | The following table summarizes the composition of our marketable securities at fair value: (In thousands) October 1, 2016 January 2, 2016 Short-term marketable securities: Corporate and government bonds and notes, and commercial paper $ 11,672 $ 17,888 Certificates of deposit 79 80 Total marketable securities $ 11,751 $ 17,968 |
Fair Value of Financial Instr28
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Instruments | Fair value measurements as of Fair value measurements as of October 1, 2016 January 2, 2016 (In thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Short-term marketable securities $ 11,751 $ 11,672 $ 79 $ — $ 17,968 $ 17,888 $ 80 $ — Foreign currency forward exchange contracts, net — — — — (12 ) — (12 ) — Total fair value of financial instruments $ 11,751 $ 11,672 $ 79 $ — $ 17,956 $ 17,888 $ 68 $ — |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | (In thousands) October 1, 2016 January 2, 2016 Work in progress $ 53,772 $ 57,865 Finished goods 26,768 18,031 Total inventories $ 80,540 $ 75,896 |
Business Combinations and Goo30
Business Combinations and Goodwill (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The fair value of the purchase price consideration consisted of the following: (In thousands) Estimated Fair Value Cash paid to Silicon Image shareholders $ 575,955 Cash paid for options and RSUs 7,383 Fair value of partially vested stock options and RSUs assumed 5,139 Total purchase consideration $ 588,477 The 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 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Oct. 01, 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 as of the end of the third quarter of fiscal 2016 : Weighted Average Amortization Period (in years) Gross Impairment Accumulated Amortization Intangible assets, net of amortization (In thousands) October 1, 2016 Developed technology 4.7 $ 130,859 $ — $ (48,153 ) $ 82,706 Customer relationships 6.1 30,800 (7,866 ) (12,751 ) 10,183 Licensed technology 3.3 2,127 — (1,053 ) 1,074 Patents 5 769 — (241 ) 528 Total identified finite-lived intangible assets 164,555 (7,866 ) (62,198 ) 94,491 In-process research and development indefinite 32,841 — — 32,841 Total identified intangible assets $ 197,396 $ (7,866 ) $ (62,198 ) $ 127,332 |
Schedule of Acquired Indefinite-lived Intangible Assets by Major Class | The following table summarizes the details of our total purchased intangible assets as of the end of the third quarter of fiscal 2016 : Weighted Average Amortization Period (in years) Gross Impairment Accumulated Amortization Intangible assets, net of amortization (In thousands) October 1, 2016 Developed technology 4.7 $ 130,859 $ — $ (48,153 ) $ 82,706 Customer relationships 6.1 30,800 (7,866 ) (12,751 ) 10,183 Licensed technology 3.3 2,127 — (1,053 ) 1,074 Patents 5 769 — (241 ) 528 Total identified finite-lived intangible assets 164,555 (7,866 ) (62,198 ) 94,491 In-process research and development indefinite 32,841 — — 32,841 Total identified intangible assets $ 197,396 $ (7,866 ) $ (62,198 ) $ 127,332 |
Finite-lived Intangible Assets Amortization Expense | We recorded amortization expense on the Consolidated Statements of Operations as follows: Three Months Ended Nine Months Ended (In thousands) October 1, October 3, October 1, October 3, Research and development $ 186 $ 223 $ 559 $ 507 Amortization of acquired intangible assets 8,260 8,941 25,292 20,824 $ 8,446 $ 9,164 $ 25,851 $ 21,331 |
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 3 months) $ 8,119 2017 31,659 2018 25,777 2019 22,993 2020 5,290 Thereafter 653 Total $ 94,491 |
Accounts Payable and Accrued 32
Accounts Payable and Accrued Expenses (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Included in accounts payable and accrued liabilities as of October 1, 2016 and January 2, 2016 were the following balances: (In thousands) October 1, 2016 January 2, 2016 Trade accounts payable $ 35,230 $ 18,616 Payable to members of the HDMI and MHL consortia* 8,872 16,643 Other accrued expenses 32,884 39,039 Total accounts payable and accrued expenses $ 76,986 $ 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' Equi33
Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Oct. 01, 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 nine months ended October 1, 2016 — — (45,935 ) — (45,935 ) Unrealized loss related to marketable securities, net of tax — — — (88 ) (88 ) Reclassification adjustment for losses related to marketable securities included in other income (expense), net of tax — — — 38 38 Translation adjustments, net of tax — — — (579 ) (579 ) Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax 23 2,448 — — 2,471 Stock-based compensation expense related to stock options, ESPP and RSUs — 12,106 — — 12,106 Defined benefit pension, net of actuarial losses — — — 141 141 Balances, October 1, 2016 $ 1,210 $ 674,643 $ (398,781 ) $ (3,398 ) $ 273,674 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Oct. 01, 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 actions 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 12,491 1,107 2,000 182 15,780 Costs paid or otherwise settled (5,825 ) (560 ) (1,551 ) (321 ) (8,257 ) Balance at October 3, 2015 $ 6,666 $ 590 $ 449 $ — $ 7,705 Balance at January 2, 2016 $ 3,696 $ 1,005 $ 377 $ — $ 5,078 Restructuring charges 1,863 2,343 1,917 2,193 8,316 Costs paid or otherwise settled (4,688 ) (2,315 ) (2,211 ) (2,066 ) (11,280 ) Balance at October 1, 2016 $ 871 $ 1,033 $ 83 $ 127 $ 2,114 * Includes cancellation of contracts, asset impairments, and accelerated depreciation on certain enterprise resource planning and customer resource management systems |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Oct. 01, 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) October 1, 2016 January 2, 2016 Principal amount $ 343,096 $ 347,375 Unamortized original issue discount and debt costs (7,736 ) (8,948 ) Less: Current portion of long-term debt (27,613 ) (7,557 ) Long-term debt $ 307,747 $ 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 Nine Months Ended (In thousands) October 1, October 3, October 1, October 3, Contractual interest $ 4,563 $ 4,633 $ 13,798 $ 10,553 Amortization of original issue discount and debt costs 553 932 1,212 2,037 Total Interest expense related to the Term Loan $ 5,116 $ 5,565 $ 15,010 $ 12,590 |
Schedule of Debt | As of October 1, 2016 , minimum expected future principal payments on the Term Loan were as follows: Fiscal year (in thousands) 2016 (remaining 3 months) $ 875 2017 38,008 2018 52,895 2019 60,247 2020 64,794 Thereafter 126,277 $ 343,096 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Oct. 01, 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 Nine Months Ended (In thousands) October 1, October 3, October 1, October 3, Cost of products sold $ 231 $ 406 $ 656 $ 1,044 Research and development 2,024 2,789 5,951 6,644 Selling, general and administrative 2,054 1,004 5,500 4,874 Acquisition related charges — 402 — 4,293 Total stock-based compensation $ 4,309 $ 4,601 $ 12,107 $ 16,855 |
Segment and Geographic Inform37
Segment and Geographic Information (Tables) | 9 Months Ended |
Oct. 01, 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 Nine Months Ended (In thousands) October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Asia $ 83,797 74 % $ 86,443 79 % $ 216,964 70 % $ 232,372 76 % Europe 13,111 12 13,061 12 43,849 14 43,005 14 Americas 16,317 14 10,211 9 48,133 16 29,395 10 Total revenue $ 113,225 100 % $ 109,715 100 % $ 308,946 100 % $ 304,772 100 % |
Basis of Presentation and Sig38
Basis of Presentation and Significant Accounting Policies (Details) $ in Thousands | Oct. 01, 2016USD ($)Contract | Jan. 02, 2016USD ($)Contract | Oct. 01, 2016USD ($)Contract | Jan. 02, 2016USD ($)Contract | Oct. 03, 2015USD ($) | Oct. 01, 2016USD ($)Contract | Oct. 03, 2015USD ($) | Jun. 30, 2016Contract | Jan. 31, 2016Contract |
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||||
Net loss attributable to noncontrolling interest | $ 102 | $ 203 | |||||||
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |||||||||
Derivative contracts | Contract | 1 | 1 | 1 | ||||||
Risks and Uncertainties [Abstract] | |||||||||
Allowance for doubtful accounts | $ 7,200 | $ 600 | $ 7,200 | $ 600 | $ 7,200 | ||||
Increase in allowance for doubtful accounts | 6,600 | ||||||||
Bad debt expense | 7,500 | 7,500 | |||||||
Deferred Revenue and Credits [Abstract] | |||||||||
Inventory valued at published list prices and held by sell-through distributors with right of return | 79,199 | 47,086 | 79,199 | 47,086 | 79,199 | ||||
Allowance for distributor advances | (37,910) | (22,290) | (37,910) | (22,290) | (37,910) | ||||
Deferred cost of sales related to inventory held by sell-through distributors | (20,356) | (6,930) | (20,356) | (6,930) | (20,356) | ||||
Total Deferred income and allowances on sales to sell-through distributors | 20,933 | 17,866 | $ 20,933 | 17,866 | $ 20,933 | ||||
Revenue | Customer Concentration Risk | |||||||||
Risks and Uncertainties [Abstract] | |||||||||
Concentration Risk | 14.00% | 7.00% | |||||||
Sales Revenue | Customer Concentration Risk | |||||||||
Risks and Uncertainties [Abstract] | |||||||||
Concentration Risk | 32.00% | 31.00% | 25.00% | 33.00% | |||||
Sell-Through Distributors | Customer Concentration Risk | |||||||||
Risks and Uncertainties [Abstract] | |||||||||
Concentration Risk | 62.00% | 46.00% | 58.00% | 45.00% | |||||
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 | $ 1,300 | $ 3,300 | $ 1,300 | $ 3,300 | $ 1,300 | ||||
Not designated as effective hedges for accounting purposes | Derivative One | |||||||||
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |||||||||
Derivative contracts | Contract | 6 | 6 | 4 | 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 | 9.00% | 11.00% | |||||||
Sell-Through Distributor A | Sell-Through Distributors | Customer Concentration Risk | |||||||||
Risks and Uncertainties [Abstract] | |||||||||
Concentration Risk | 35.00% | 29.00% | |||||||
Sell-Through Distributor B | Sell-Through Distributors | Customer Concentration Risk | |||||||||
Risks and Uncertainties [Abstract] | |||||||||
Concentration Risk | 31.00% | 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 | $ 100 | $ 100 | |||||||
Equipment | Minimum | |||||||||
Deferred Revenue and Credits [Abstract] | |||||||||
Property, plant and equipment, useful life | 3 years | ||||||||
Equipment | Maximum | |||||||||
Deferred Revenue and Credits [Abstract] | |||||||||
Property, plant and equipment, useful life | 5 years | ||||||||
Tools, Dies and Molds | Minimum | |||||||||
Deferred Revenue and Credits [Abstract] | |||||||||
Property, plant and equipment, useful life | 1 year | ||||||||
Tools, Dies and Molds | Maximum | |||||||||
Deferred Revenue and Credits [Abstract] | |||||||||
Property, plant and equipment, useful life | 3 years | ||||||||
Building | |||||||||
Deferred Revenue and Credits [Abstract] | |||||||||
Property, plant and equipment, useful life | 30 years | ||||||||
Software Development | Minimum | |||||||||
Deferred Revenue and Credits [Abstract] | |||||||||
Property, plant and equipment, useful life | 3 years | ||||||||
Software Development | Maximum | |||||||||
Deferred Revenue and Credits [Abstract] | |||||||||
Property, plant and equipment, useful life | 5 years |
Net Loss per Share (Details)
Net Loss per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Earnings Per Share [Abstract] | ||||
Basic and diluted Net loss | $ (12,414) | $ (24,862) | $ (45,935) | $ (113,779) |
Shares used in basic and diluted Net loss per share | 120,584 | 117,669 | 119,596 | 117,151 |
Basic and diluted Net loss per share (in usd per share) | $ (0.10) | $ (0.21) | $ (0.38) | $ (0.97) |
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 | 3,200 | 8,300 | 9,400 |
Marketable Securities Compositi
Marketable Securities Composition (Details) - Short-term marketable securities - USD ($) $ in Thousands | Oct. 01, 2016 | Jan. 02, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Maturing within one year | $ 8,742 | $ 12,144 |
Maturing between one and two years | 3,009 | 5,824 |
Total marketable securities | 11,751 | 17,968 |
Corporate and government bonds and notes, and commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total marketable securities | 11,672 | 17,888 |
Certificates of deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total marketable securities | $ 79 | $ 80 |
Fair Value of Financial Instr41
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Oct. 01, 2016 | Jan. 02, 2016 |
Total | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Foreign currency forward exchange contracts, net | $ 0 | $ (12) |
Total fair value of financial instruments | 11,751 | 17,956 |
Short-term marketable securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of marketable securities | 11,751 | 17,968 |
Short-term marketable securities | Total | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of marketable securities | 11,751 | 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 | 11,672 | 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 | 11,672 | 17,888 |
Level 2 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Foreign currency forward exchange contracts, net | 0 | (12) |
Total fair value of financial instruments | 79 | 68 |
Level 2 | Short-term marketable securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of marketable securities | 79 | 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 Instr42
Fair Value of Financial Instruments Unobservable Inputs (Details) - Short-term marketable securities - USD ($) $ in Millions | 9 Months Ended | |
Oct. 01, 2016 | Oct. 03, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized loss (less than) | $ 0.1 | |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized loss (less than) | $ 0.1 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Oct. 01, 2016 | Jan. 02, 2016 |
Inventory Disclosure [Abstract] | ||
Work in progress | $ 53,772 | $ 57,865 |
Finished goods | 26,768 | 18,031 |
Total inventories | $ 80,540 | $ 75,896 |
Business Combinations and Goo44
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 Goo45
Business Combinations and Goodwill (Allocation of the Purchase Price) (Details) - USD ($) $ in Thousands | Oct. 01, 2016 | Jan. 02, 2016 | Mar. 10, 2015 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||
Goodwill | $ 269,771 | $ 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 | ||
Goodwill | $ 238,000 | 237,608 | |
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 Goo46
Business Combinations and Goodwill (Identified Intangible Assets Acquired) (Details) - Silicon Image, Inc $ in Thousands | Mar. 10, 2015USD ($) |
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 |
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 Goo47
Business Combinations and Goodwill (Narrative) (Details) - USD ($) | Mar. 10, 2015 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 01, 2016 | Oct. 03, 2015 |
Business Acquisition [Line Items] | |||||
Goodwill and intangible asset impairment | $ 0 | $ 0 | |||
Goodwill | $ 267,549,000 | 269,771,000 | |||
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 | $ 237,608,000 | 238,000,000 | |||
Series of Individually Immaterial Business Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 45,000,000 | ||||
SiliconBlue Technologies Ltd. and Silicon Image, Inc | |||||
Business Acquisition [Line Items] | |||||
Goodwill and intangible asset impairment | $ 13,000,000 |
Intangible Assets (Intangible A
Intangible Assets (Intangible Assets) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | Jan. 02, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Impairment | $ (7,866,000) | $ 0 | $ (7,866,000) | $ 0 | |
Total | 94,491,000 | 94,491,000 | |||
Intangible assets, net of amortization | 127,332,000 | 127,332,000 | $ 162,583,000 | ||
Customer relationships | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Impairment | (7,866,000) | $ 0 | |||
SiliconBlue Technologies Ltd. and Silicon Image, Inc | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Gross | 164,555,000 | 164,555,000 | |||
Accumulated Amortization | (62,198,000) | (62,198,000) | |||
Total | 94,491,000 | 94,491,000 | |||
Intangible Assets, Gross (Excluding Goodwill) | 197,396,000 | 197,396,000 | |||
Intangible assets, net of amortization | 127,332,000 | $ 127,332,000 | |||
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 | 130,859,000 | $ 130,859,000 | |||
Accumulated Amortization | (48,153,000) | (48,153,000) | |||
Total | 82,706,000 | $ 82,706,000 | |||
SiliconBlue Technologies Ltd. and Silicon Image, Inc | Customer relationships | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Weighted Average Amortization Period (in years) | 6 years 1 month 6 days | ||||
Gross | 30,800,000 | $ 30,800,000 | |||
Accumulated Amortization | (12,751,000) | (12,751,000) | |||
Total | 10,183,000 | $ 10,183,000 | |||
SiliconBlue Technologies Ltd. and Silicon Image, Inc | Licensing Agreements | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Weighted Average Amortization Period (in years) | 3 years 3 months 18 days | ||||
Gross | 2,127,000 | $ 2,127,000 | |||
Accumulated Amortization | (1,053,000) | (1,053,000) | |||
Total | 1,074,000 | $ 1,074,000 | |||
SiliconBlue Technologies Ltd. and Silicon Image, Inc | Patents | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Weighted Average Amortization Period (in years) | 5 years | ||||
Gross | 769,000 | $ 769,000 | |||
Accumulated Amortization | (241,000) | (241,000) | |||
Total | 528,000 | 528,000 | |||
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) | $ 32,841,000 | $ 32,841,000 |
Intangible Assets (Amortization
Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of acquired intangible assets | $ 8,260 | $ 8,941 | $ 25,292 | $ 20,824 |
SiliconBlue Technologies Ltd. and Silicon Image, Inc | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of acquired intangible assets | 8,446 | 9,164 | 25,851 | 21,331 |
Research and development | SiliconBlue Technologies Ltd. and Silicon Image, Inc | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of acquired intangible assets | $ 186 | $ 223 | $ 559 | $ 507 |
Intangible Assets (Intangible50
Intangible Assets (Intangible Assets, Amortization Expense) (Details) $ in Thousands | Oct. 01, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2016 (remaining 3 months) | $ 8,119 |
2,017 | 31,659 |
2,018 | 25,777 |
2,019 | 22,993 |
2,020 | 5,290 |
Thereafter | 653 |
Total | $ 94,491 |
Equity Method Investment (Detai
Equity Method Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 15 Months Ended | |||
Oct. 01, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Cash paid for a non-marketable equity-method investment | $ 3,000 | |||||
Cost method investment, ownership percentage | 15.80% | 15.80% | ||||
Equity method investment, ownership percentage | 22.70% | |||||
Payments to acquire equity method investments | $ 1,000 | $ 2,000 | $ 1,000 | $ 3,000 | ||
Equity method investment, gross | 6,000 | 6,000 | $ 6,000 | |||
Equity method investments | $ 5,000 | |||||
Equity in net loss of an unconsolidated affiliate, net of tax | (407) | $ 0 | (1,085) | $ 0 | (1,600) | |
Other Noncurrent Assets | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investments | $ 4,400 | $ 4,400 | $ 4,400 |
Accounts Payable and Accrued 52
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Oct. 01, 2016 | Jan. 02, 2016 |
Related Party Transaction [Line Items] | ||
Trade accounts payable | $ 35,230 | $ 18,616 |
Accounts payable and accrued expenses (includes restructuring) | 76,986 | 74,298 |
Other accrued expenses | 32,884 | 39,039 |
Total accounts payable and accrued expenses | 76,986 | 74,298 |
Consortia | ||
Related Party Transaction [Line Items] | ||
Accounts payable and accrued expenses (includes restructuring) | $ 8,872 | $ 16,643 |
Changes in Stockholders' Equi53
Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 305,520 | |||
Net loss for the nine months ended October 1, 2016 | (45,935) | |||
Unrealized loss related to marketable securities, net of tax | $ (61) | $ (130) | (88) | $ (133) |
Reclassification adjustment for losses related to marketable securities included in other income (expense), net of tax | 0 | 209 | 38 | 443 |
Translation adjustments, net of tax | (138) | (697) | (579) | (752) |
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax | 2,471 | |||
Stock-based compensation expense related to stock options, ESPP and RSUs | 12,106 | |||
Defined benefit pension, net of actuarial losses | 0 | $ (1) | 141 | $ (156) |
Ending balance | 273,674 | 273,674 | ||
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 | 23 | |||
Ending balance | 1,210 | 1,210 | ||
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 | 2,448 | |||
Stock-based compensation expense related to stock options, ESPP and RSUs | 12,106 | |||
Ending balance | 674,643 | 674,643 | ||
Accumulated deficit | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (352,846) | |||
Net loss for the nine months ended October 1, 2016 | (45,935) | |||
Defined benefit pension, net of actuarial losses | 0 | |||
Ending balance | (398,781) | (398,781) | ||
Accumulated other comprehensive loss | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (2,910) | |||
Unrealized loss related to marketable securities, net of tax | (88) | |||
Reclassification adjustment for losses related to marketable securities included in other income (expense), net of tax | 38 | |||
Translation adjustments, net of tax | (579) | |||
Defined benefit pension, net of actuarial losses | 141 | |||
Ending balance | $ (3,398) | $ (3,398) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | Jan. 02, 2016 | Apr. 04, 2015 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Income tax provision (benefit) | $ 971,000 | $ 309,000 | $ 7,410,000 | $ 29,030,000 | ||
Deferred tax assets, valuation allowance | $ 21,000,000 | |||||
Unrecognized tax benefits that could significantly change during the next twelve months | 200,000 | 200,000 | ||||
Total potential decrease in UTB | 200,000 | 200,000 | ||||
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 | $ 100,000 | $ 100,000 | ||||
U.S. Federal | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Statutory income tax rate | 35.00% | 35.00% | ||||
Bermuda | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Income tax provision (benefit) | $ 0 | $ 0 | ||||
Statutory income tax rate | 0.00% | 0.00% | ||||
Internal Revenue Service (IRS) | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Operating loss carryforwards | $ 339,900,000 | |||||
Tax credit carryforward, amount | 48,200,000 | |||||
State and Local Jurisdiction | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Operating loss carryforwards | 239,900,000 | |||||
Tax credit carryforward, amount | 55,900,000 | |||||
Other Long-term Liabilities | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Uncertain tax positions | $ 29,400,000 | $ 29,400,000 | 26,900,000 | |||
No Expiration Date | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Tax credit carryforward, amount | $ 53,400,000 |
Restructuring Narrative (Detail
Restructuring Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 13 Months Ended | 19 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 01, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 317 | $ 6,818 | $ 8,316 | $ 15,780 | ||
March 2015 Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 300 | 1,400 | 6,300 | 10,300 | $ 19,600 | |
September 2015 Reduction | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 0 | $ 0 | 2,000 | $ 5,500 | $ 8,000 | |
Maximum | March 2015 Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and elated cost, expected cost | 21,000 | 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 | $ 9,000 | $ 9,000 | $ 9,000 | $ 9,000 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 01, 2016 | Oct. 03, 2015 | |
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of the period | $ 5,078 | $ 182 |
Restructuring charges | 8,316 | 15,780 |
Costs paid or otherwise settled | (11,280) | (8,257) |
Balance at the end of the period | 2,114 | 7,705 |
Severance and related | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of the period | 3,696 | 0 |
Restructuring charges | 1,863 | 12,491 |
Costs paid or otherwise settled | (4,688) | (5,825) |
Balance at the end of the period | 871 | 6,666 |
Lease Termination | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of the period | 1,005 | 43 |
Restructuring charges | 2,343 | 1,107 |
Costs paid or otherwise settled | (2,315) | (560) |
Balance at the end of the period | 1,033 | 590 |
Software Contracts & Engineering Tools | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of the period | 377 | 0 |
Restructuring charges | 1,917 | 2,000 |
Costs paid or otherwise settled | (2,211) | (1,551) |
Balance at the end of the period | 83 | 449 |
Other | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of the period | 0 | 139 |
Restructuring charges | 2,193 | 182 |
Costs paid or otherwise settled | (2,066) | (321) |
Balance at the end of the period | $ 127 | $ 0 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | Oct. 01, 2016 | Mar. 10, 2015 | Jul. 02, 2016 | Oct. 01, 2016 | Oct. 03, 2015 | Jan. 02, 2016 |
Debt Instrument [Line Items] | ||||||
Principal amount | $ 343,096,000 | $ 343,096,000 | ||||
Proceeds from debt | (4,279,000) | $ (1,750,000) | ||||
Debt issuance cost | 0 | $ 8,283,000 | ||||
Line of Credit | Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | 343,096,000 | $ 350,000,000 | 343,096,000 | $ 347,375,000 | ||
Proceeds from debt | 346,500,000 | |||||
Debt instrument, unamortized discount | $ 7,736,000 | 3,500,000 | $ 7,736,000 | $ 8,948,000 | ||
Debt issuance cost | $ 8,300,000 | |||||
Debt instrument, interest rate, effective percentage | 5.97% | 5.97% | ||||
Debt instrument, periodic payment | $ 900,000 | |||||
Debt instrument, payment, percentage | 75.00% | |||||
Repayments of debt | $ 1,700,000 | |||||
Line of Credit | Term Loan | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
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% | |||||
Minimum | 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% | 1.00% | ||||
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 ($) | Oct. 01, 2016 | Jan. 02, 2016 | Mar. 10, 2015 |
Debt Instrument [Line Items] | |||
Principal amount | $ 343,096,000 | ||
Line of Credit | Term Loan | |||
Debt Instrument [Line Items] | |||
Principal amount | 343,096,000 | $ 347,375,000 | $ 350,000,000 |
Unamortized original issue discount and debt costs | (7,736,000) | (8,948,000) | $ (3,500,000) |
Less: Current portion of long-term debt | (27,613,000) | (7,557,000) | |
Long-term debt | $ 307,747,000 | $ 330,870,000 |
Long-Term Debt (Interest Expens
Long-Term Debt (Interest Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Debt Disclosure [Abstract] | ||||
Contractual interest | $ 4,563 | $ 4,633 | $ 13,798 | $ 10,553 |
Amortization of original issue discount and debt costs | 553 | 932 | 1,212 | 2,037 |
Total Interest expense related to the Term Loan | $ 5,116 | $ 5,565 | $ 15,010 | $ 12,590 |
Long-Term Debt (Future Principa
Long-Term Debt (Future Principal Payments) (Details) $ in Thousands | Oct. 01, 2016USD ($) |
Debt Disclosure [Abstract] | |
2016 (remaining 3 months) | $ 875 |
2,017 | 38,008 |
2,018 | 52,895 |
2,018 | 60,247 |
2,019 | 64,794 |
2,020 | 126,277 |
Total | $ 343,096 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock-based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 4,309 | $ 4,601 | $ 12,107 | $ 16,855 |
Cost of products sold | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 231 | 406 | 656 | 1,044 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 2,024 | 2,789 | 5,951 | 6,644 |
Selling, general and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 2,054 | 1,004 | 5,500 | 4,874 |
Acquisition-related Costs | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 0 | $ 402 | $ 0 | $ 4,293 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) | Mar. 10, 2015 | Oct. 01, 2016 | Jul. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | Jan. 02, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total stock-based compensation | $ 4,309,000 | $ 4,601,000 | $ 12,107,000 | $ 16,855,000 | ||||
Decrease in employee related liabilities | 0 | |||||||
Accrued payroll obligations | 9,009,000 | $ 9,009,000 | $ 9,463,000 | |||||
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 | $ 200,000 | $ 100,000 | $ 400,000 | $ 400,000 | ||||
Grants in Period (in shares) | 321,900 | 327,200 | ||||||
Options, nonvested, (in shares) | 596,600 | 596,600 | ||||||
Restricted Stock Units (RSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Grants in Period (in shares) | 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% | |||||||
Silicon Image, Inc | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Decrease in employee related liabilities | $ 3,900,000 |
Segment and Geographic Inform63
Segment and Geographic Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2016USD ($) | Oct. 01, 2016USD ($) | Oct. 03, 2015USD ($) | Oct. 01, 2016USD ($)segment | Oct. 03, 2015USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Number of operating segments | segment | 1 | ||||
Gain on sale of business unit | $ 2,646 | $ 0 | |||
Proceeds from sale of business unit, net of cash sold | 1,972 | 0 | |||
Total revenue | $ 113,225 | $ 109,715 | $ 308,946 | $ 304,772 | |
Total revenue as percentage | 100.00% | 100.00% | 100.00% | 100.00% | |
Asia | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | $ 83,797 | $ 86,443 | $ 216,964 | $ 232,372 | |
Total revenue as percentage | 74.00% | 79.00% | 70.00% | 76.00% | |
Europe | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | $ 13,111 | $ 13,061 | $ 43,849 | $ 43,005 | |
Total revenue as percentage | 12.00% | 12.00% | 14.00% | 14.00% | |
Americas | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | $ 16,317 | $ 10,211 | $ 48,133 | $ 29,395 | |
Total revenue as percentage | 14.00% | 9.00% | 16.00% | 10.00% | |
Qterics | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Gain on sale of business unit | $ 2,600 | ||||
Proceeds from sale of business unit, net of cash sold | $ 2,000 |
Subsequent Event (Details)
Subsequent Event (Details) - Canyon Bridge Capital Partners, Inc - Subsequent event $ / shares in Units, $ in Billions | Nov. 03, 2016USD ($)$ / shares |
Subsequent Event [Line Items] | |
Business combination consideration | $ | $ 1.3 |
Business acquisition, share price (in dollar per share) | $ / shares | $ 8.30 |