Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 30, 2017 | Mar. 02, 2018 | Jul. 01, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | LATTICE SEMICONDUCTOR CORP | ||
Entity Central Index Key | 855,658 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 30, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-30 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 124,210,928 | ||
Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Filer | No | ||
Entity Public Float | $ 613,585,307 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 106,815 | $ 106,552 |
Short-term marketable securities | 4,982 | 10,308 |
Accounts receivable, net of allowance for doubtful accounts | 55,104 | 99,637 |
Inventories | 79,903 | 79,168 |
Prepaid expenses and other current assets | 16,567 | 19,035 |
Total current assets | 263,371 | 314,700 |
Property and equipment, net | 40,423 | 49,481 |
Intangible assets, net | 51,308 | 118,863 |
Goodwill | 267,514 | 269,758 |
Deferred income taxes | 198 | 372 |
Other long-term assets | 13,147 | 13,709 |
Total assets | 635,961 | 766,883 |
Current liabilities: | ||
Accounts payable and accrued expenses (includes restructuring) | 54,405 | 80,933 |
Accrued payroll obligations | 10,416 | 9,865 |
Current portion of long-term debt | 1,508 | 33,767 |
Deferred income and allowances on sales to sell-through distributors | 17,250 | 32,257 |
Deferred licensing and services revenue | 68 | 728 |
Total current liabilities | 83,647 | 157,550 |
Long-term debt | 299,667 | 300,855 |
Other long-term liabilities | 34,954 | 38,048 |
Total liabilities | 418,268 | 496,453 |
Commitments and contingencies (Notes 13 and 20) | ||
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; 123,895,000 shares issued and outstanding as of December 30, 2017 and 121,645,000 shares issued and outstanding as of December 31, 2016 | 1,239 | 1,216 |
Additional paid-in capital | 695,768 | 680,315 |
Accumulated deficit | (477,862) | (406,945) |
Accumulated other comprehensive loss | (1,452) | (4,156) |
Total stockholders' equity | 217,693 | 270,430 |
Total liabilities and stockholders' equity | $ 635,961 | $ 766,883 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 123,895,000 | 121,645,000 |
Common stock, shares outstanding | 123,895,000 | 121,645,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Revenue: | |||
Product | $ 356,502 | $ 390,704 | $ 369,200 |
Licensing and services | 29,459 | 36,350 | 36,766 |
Total revenue | 385,961 | 427,054 | 405,966 |
Costs and expenses: | |||
Cost of product revenue | 164,657 | 179,983 | 184,914 |
Cost of licensing and services revenue | 4,725 | 637 | 1,143 |
Research and development | 103,357 | 117,518 | 136,868 |
Selling, general, and administrative | 90,718 | 98,602 | 97,349 |
Amortization of acquired intangible assets | 31,340 | 33,575 | 29,580 |
Restructuring charges | 7,196 | 9,267 | 19,239 |
Acquisition related charges | 3,781 | 6,305 | 22,450 |
Impairment of goodwill and acquired intangible assets | 32,431 | 7,866 | 21,655 |
Gain on sale of building | (4,624) | 0 | 0 |
Total costs and expenses | 433,581 | 453,753 | 513,198 |
Loss from operations | (47,620) | (26,699) | (107,232) |
Interest expense | (18,807) | (20,327) | (18,389) |
Other (expense) income, net | (3,286) | 2,844 | (1,072) |
Loss before income taxes | (69,713) | (44,182) | (126,693) |
Income tax expense | 849 | 9,917 | 32,540 |
Net loss | $ (70,562) | $ (54,099) | $ (159,233) |
Net loss per share, basic and diluted (in dollars per share) | $ (0.58) | $ (0.45) | $ (1.36) |
Shares used in per share calculations, basic and diluted (in shares) | 122,677 | 119,994 | 117,387 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (70,562) | $ (54,099) | $ (159,233) |
Other comprehensive loss: | |||
Unrealized loss related to marketable securities, net of tax | (73) | (172) | (69) |
Reclassification adjustment for losses related to marketable securities included in other (expense) income | 252 | 79 | 442 |
Translation adjustment loss, net of tax | 2,620 | (1,303) | (1,243) |
Change in actuarial valuation of defined benefit pension | (95) | 150 | (156) |
Comprehensive loss | $ (67,858) | $ (55,345) | $ (160,259) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common stock | Paid-in capital | Treasury stock | Accumulated deficit | Accumulated other comprehensive loss | |
Beginning balances (in shares) at Jan. 03, 2015 | 117,288 | ||||||
Beginning balances at Jan. 03, 2015 | $ 440,975 | $ 1,173 | $ 635,299 | $ 0 | $ (193,613) | $ (1,884) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (159,233) | (159,233) | |||||
Unrealized loss related to marketable securities, net of tax | (69) | (69) | |||||
Recognized loss on redemption of marketable securities, previously unrealized | 442 | 442 | |||||
Translation adjustments, net of tax | (1,243) | (1,243) | |||||
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs (in shares) | 2,415 | ||||||
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax | 2,186 | $ 25 | 2,161 | ||||
Stock repurchase | (6,970) | (6,970) | |||||
Retirement of treasury stock (shares) | (1,052) | ||||||
Retirement of treasury stock | 0 | $ (11) | (6,959) | 6,970 | |||
Stock-based compensation expense related to options, ESPP and RSUs | 18,396 | 18,396 | |||||
Fair value of partially vested stock options and RSUs assumed in acquisition | 5,139 | 5,139 | |||||
Defined benefit pension, net of actuarial losses | (156) | (156) | |||||
Redemption of noncontrolling interest, net of previous accretion to redemption value. | 6,053 | 6,053 | |||||
Ending balances (in shares) at Jan. 02, 2016 | 118,651 | ||||||
Ending balances at Jan. 02, 2016 | 305,520 | $ 1,187 | 660,089 | 0 | (352,846) | (2,910) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (54,099) | (54,099) | |||||
Unrealized loss related to marketable securities, net of tax | (172) | (172) | |||||
Recognized loss on redemption of marketable securities, previously unrealized | 79 | 79 | |||||
Translation adjustments, net of tax | (1,303) | (1,303) | |||||
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs (in shares) | 2,994 | ||||||
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax | 4,042 | $ 29 | 4,013 | ||||
Stock-based compensation expense related to options, ESPP and RSUs | 16,213 | 16,213 | |||||
Defined benefit pension, net of actuarial losses | $ 150 | 150 | |||||
Ending balances (in shares) at Dec. 31, 2016 | 121,645 | 121,645 | |||||
Ending balances at Dec. 31, 2016 | $ 270,430 | $ 1,216 | 680,315 | 0 | (406,945) | (4,156) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Accounting method transition adjustment | [1] | (355) | (355) | ||||
Net loss | (70,562) | (70,562) | |||||
Unrealized loss related to marketable securities, net of tax | (73) | (73) | |||||
Recognized loss on redemption of marketable securities, previously unrealized | 252 | 252 | |||||
Translation adjustments, net of tax | 2,620 | 2,620 | |||||
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs (in shares) | 2,250 | ||||||
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax | 2,818 | $ 23 | 2,795 | ||||
Stock-based compensation expense related to options, ESPP and RSUs | [2] | 12,658 | 12,658 | ||||
Defined benefit pension, net of actuarial losses | $ (95) | (95) | |||||
Ending balances (in shares) at Dec. 30, 2017 | 123,895 | 123,895 | |||||
Ending balances at Dec. 30, 2017 | $ 217,693 | $ 1,239 | $ 695,768 | $ 0 | $ (477,862) | $ (1,452) | |
[1] | During the first quarter of fiscal 2017, we early adopted ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.This guidance is required to be applied on a modified retrospective basis through a cumulative-effect adjustment to the balance sheet as of the beginningof the fiscal year of adoption. As a result of this adoption, we recorded a nominal amount to accumulated deficit, as detailed in the table above. | ||||||
[2] | In the third quarter of fiscal 2017, in relation to the sale of 100% of the equity of our Hyderabad, India subsidiary and certain assets related to our SimplayLabs testing and certification business, certain stock compensation was accelerated due to a change of control agreement. As a result of this acceleration,the equity effect of stock compensation shown above includes approximately $0.1 million that was charged to restructuring expense as part of the June2017 Plan (see Note 15). |
CONSOLIDATED STATEMENTS OF STO7
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) $ in Thousands | 3 Months Ended |
Sep. 30, 2017USD ($) | |
June 2017 Plan | |
Stock-based compensation expense related to options, ESPP and RSUs | $ 100 |
Disposed of by Sale | Hyderabad | |
Ownership percentage | 100.00% |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Cash flows from operating activities: | |||
Net loss | $ (70,562) | $ (54,099) | $ (159,233) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 57,861 | 61,806 | 60,808 |
Impairment of goodwill and acquired intangible assets | 32,431 | 7,866 | 21,655 |
Amortization of debt issuance costs and discount | 1,982 | 1,350 | 2,835 |
Change in deferred income tax provision | (154) | 90 | 21,367 |
Loss on sale or maturity of marketable securities | 252 | 79 | 333 |
Gain on forward contracts | (77) | (184) | 0 |
Stock-based compensation expense | 12,543 | 16,213 | 18,396 |
(Gain) loss on disposal of fixed assets | (75) | 597 | 0 |
Gain on sale of building | (4,624) | 0 | 0 |
Loss (Gain) on sale of assets and business units | 1,496 | (2,646) | 0 |
Impairment of cost-method investment | 1,761 | 1,459 | 492 |
Changes in assets and liabilities: | |||
Accounts receivable, net | 44,613 | (11,419) | 4,578 |
Inventories | (902) | (3,272) | 9,868 |
Prepaid expenses and other assets | 889 | (2,270) | (6,710) |
Accounts payable and accrued expenses (includes restructuring) | (23,588) | 8,338 | 6,301 |
Accrued payroll obligations | 726 | 402 | (10,202) |
Income taxes payable | (556) | 3,216 | 1,749 |
Deferred income and allowances on sales to sell-through distributors | (15,007) | 14,391 | 2,920 |
Deferred licensing and services revenue | (495) | (183) | 1,958 |
Net cash provided by (used in) operating activities | 38,514 | 41,734 | (22,885) |
Cash flows from investing activities: | |||
Proceeds from sales of and maturities of short-term marketable securities | 12,689 | 14,897 | 142,956 |
Purchase of marketable securities | (7,420) | (7,490) | (15,982) |
Cash paid for business acquisition, net of cash acquired | 0 | 0 | (431,068) |
Proceeds from sale of building | 7,895 | 0 | 0 |
Cash paid for costs of sale of building | (1,004) | 0 | 0 |
Capital expenditures | (12,855) | (16,717) | (18,209) |
Proceeds from sale of assets and business units, net of cash sold | 967 | 1,972 | 0 |
Repayment received on short-term loan to cost-method investee | 2,000 | 0 | 0 |
Short-term loan to cost-method investee | (2,000) | 0 | 0 |
Cash paid for a cost-method investment | 0 | (1,000) | (5,000) |
Cash paid for software licenses | (8,532) | (9,035) | (9,515) |
Net cash used in investing activities | (8,260) | (17,373) | (336,818) |
Cash flows from financing activities: | |||
Restricted stock unit withholdings | (3,267) | (3,565) | (3,493) |
Proceeds from issuance of common stock | 6,085 | 7,607 | 5,679 |
Net proceeds from issuance of long-term debt | 0 | 0 | 346,500 |
Cash paid for debt issuance costs | 0 | 0 | (8,283) |
Repayment of debt | (35,429) | (5,154) | (2,625) |
Purchase of treasury stock | 0 | 0 | (6,970) |
Cash paid to redeem noncontrolling interest | 0 | 0 | (867) |
Net cash (used in) provided by financing activities | (32,611) | (1,112) | 329,941 |
Effect of exchange rate change on cash | 2,620 | (1,303) | (1,243) |
Net increase (decrease) in cash and cash equivalents | 263 | 21,946 | (31,005) |
Beginning cash and cash equivalents | 106,552 | 84,606 | 115,611 |
Ending cash and cash equivalents | 106,815 | 106,552 | 84,606 |
Supplemental cash flow information: | |||
Change in unrealized loss related to marketable securities, net of tax, included in Accumulated other comprehensive loss | 73 | 172 | 69 |
Income taxes paid, net of refunds | 2,387 | 9,359 | 8,339 |
Interest paid | 20,649 | 18,159 | 11,071 |
Accrued purchases of property and equipment | 588 | 1,028 | 1,277 |
Note receivable resulting from sale of assets and business units | 3,050 | 0 | 0 |
Transfer of residual temporary equity to additional paid-in capital on redemption of noncontrolling interest | $ 0 | $ 0 | $ 6,773 |
Nature of Operations and Signif
Nature of Operations and Significant Accounting Policies | 12 Months Ended |
Dec. 30, 2017 | |
Accounting Policies [Abstract] | |
Nature of Operations and Significant Accounting Policies | Nature of Operations and Significant Accounting Policies Nature of Operations Lattice Semiconductor (“Lattice,” the “Company,” “we,” “us,” or “our”) is a Delaware company that develops semiconductor technologies that we monetize through products, solutions, and licenses. We engage in smart connectivity solutions, providing intellectual property ("IP") and low-power, small form-factor devices that enable global customers to quickly and easily develop innovative, smart, and connected products. Our broad end-market exposure extends from mobile devices and consumer electronics to industrial and automotive equipment, communications and computing infrastructure, and licensing. We do not manufacture our own silicon wafers. We maintain strategic relationships with large, established semiconductor foundries located in Asia to source our finished silicon wafers. In addition, all of our assembly operations and most of our test and logistics operations are performed by outside suppliers located in Asia. We perform certain test operations and reliability and quality assurance processes internally. We place substantial emphasis on new product development and believe that continued investment in this area is required to maintain and improve our competitive position. Our product development activities emphasize new proprietary products, advanced packaging, enhancement of existing products and process technologies, and improvement of software development tools. Research and development activities occur primarily in: Hillsboro, Oregon; San Jose, California; Shanghai, China; and Muntinlupa City, Philippines. Fiscal Reporting Period We report based on a 52 or 53-week fiscal year ending on the Saturday closest to December 31. Our fiscal 2017, 2016, and 2015 were 52-week years that ended December 30, 2017 , December 31, 2016 , and January 2, 2016 respectively. Our fiscal 2018 will be a 52-week year and will end on December 29, 2018 . All references to quarterly or yearly financial results are references to the results for the relevant fiscal period. Principles of Consolidation The accompanying Consolidated Financial Statements include the accounts of Lattice and its subsidiaries after the elimination of all intercompany balances and transactions. Reclassifications Certain amounts in prior fiscal years in the accompanying consolidated financial statements and notes thereto have been reclassified to conform to the presentation adopted in the current fiscal year. These reclassifications had no material effect on the results of operations or financial position for any period presented. We had previously treated an investment as an equity-method investment and reported equity in net loss of an unconsolidated affiliate separately, amounting to approximately $1.5 million and $0.5 million for the years ended December 31, 2016 and January 2, 2016, respectively. We have reclassified the prior year losses to Other (expense) income, net on our Consolidated Statements of Income to be consistent with the current year treatment of the investment as a cost-method investment. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts and classification of assets, such as marketable securities, accounts receivable, inventory, goodwill (including the assessment of reporting unit), intangible assets, current and deferred income taxes, accrued liabilities (including restructuring charges and bonus arrangements), deferred income and allowances on sales to sell-through distributors, disclosure of contingent assets and liabilities at the date of the financial statements, amounts used in acquisition valuations and purchase accounting, impairment assessments, 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 that 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 Consolidated 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 our 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 .” 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 obligations, 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 have any Level 3 instruments during the periods presented. 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, and we collect an annual Japanese consumption tax refund in yen. Gains or losses from foreign exchange rate fluctuations on balances denominated in foreign currencies are reflected in Other (expense) income, net . Realized gains or losses on foreign currency transactions were not significant for the periods presented. We translate accounts denominated in foreign currencies in accordance with ASC 830, “ Foreign Currency Matters ,” using the current rate method under which asset and liability accounts are translated at the current rate, while stockholders' equity accounts are translated at the appropriate historical rates, and revenue and expense accounts are translated at average monthly exchange rates. Translation adjustments related to the consolidation of foreign subsidiary financial statements are reflected in Accumulated other comprehensive loss in Stockholders' equity (See our Consolidated Statements of Stockholders' Equity ). Derivative Financial Instruments We mitigate foreign currency exchange rate risk by entering into foreign currency forward exchange contracts, details of which are presented in the following table: December 30, 2017 December 31, 2016 Total cost of contracts for Japanese yen (in thousands) $ 2,204 $ 2,323 Number of contracts 2 2 Settlement month June 2018 June 2017 Although these hedges mitigate our foreign currency exchange rate exposure from an economic perspective, they were not designated as "effective" hedges under U.S. GAAP and as such are adjusted to fair value through Other (expense) income, net , with gains of approximately $0.1 million and approximately $0.2 million , respectively, for the years ended December 30, 2017 and December 31, 2016 . We do not hold or issue derivative financial instruments for trading or speculative purposes. Concentration Risk Potential exposure to concentration risk may impact revenue, trade receivables, marketable securities, and supply of wafers for our new products. Customer concentration risk may impact revenue. The percentage of total revenue attributable to our top five end customers and largest end customer is presented in the following table: Year Ended December 30, December 31, January 2, Revenue attributable to top five end customers 26 % 27 % 32 % Revenue attributable to largest end customer 7.3 % 9.9 % 9.3 % No end customer 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 sell-through distributors as a percentage of total revenue is presented in the following table: Year Ended December 30, December 31, January 2, Revenue attributable to sell-through distributors 66 % 61 % 45 % Our largest distributor groups also account for a substantial portion of our trade receivables. At December 30, 2017 , one distributor group accounted for 54% of gross trade receivables. At December 31, 2016 , two distributor groups accounted for 38% and 24% , respectively, of gross trade receivables. No other distributor group or end customer 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 $9.4 million and $9.3 million at December 30, 2017 and December 31, 2016 , respectively. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on assessment of known troubled accounts, analysis of the aging of our accounts receivable, historical experience, management judgment, and other currently available evidence. We write off accounts receivable against the allowance when we determine a balance is uncollectible and no longer actively pursue collection of the receivable. The amounts of accounts receivable written off were insignificant for all periods presented. Bad debt expense was negligible for fiscal 2017. During fiscal 2016, we recorded a full allowance on our accounts receivable, net of deferred revenue, from a bankrupt distributor group resulting in an increase in allowance for doubtful accounts of $9.0 million and bad debt expense of $7.5 million in that year. 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; however, certain of our products are sourced from a single foundry and changing from one foundry to another can have a significant cost. Revenue Recognition and Deferred Income The following describes our revenue recognition policy during fiscal 2017. In fiscal 2018, we will adopt ASU 2014-09, Revenue from Contracts with Customers (Topic 606). S ee "New Accounting Pronouncements" later in this Note 1 for a discussion of the impact of adoption on our revenue recognition. Product Revenue We sell our products though several channels: 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 product revenue are reflected in Net loss in our Consolidated Statements of Operations, 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) December 30, 2017 December 31, 2016 Inventory valued at published list price and held by sell-through distributors with right of return $ 74,788 $ 86,218 Allowance for distributor advances (44,990 ) (37,090 ) Deferred cost of sales related to inventory held by sell-through distributors (12,548 ) (16,871 ) Total Deferred income and allowances on sales to sell-through distributors $ 17,250 $ 32,257 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 and/or royalties 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 to us by customers. 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 Founders of the HDMI consortium. The contractual allocation formula is subject to periodic adjustment, generally every three years. The most recent agreement expired on December 31, 2016 and a new agreement has not yet been entered into covering the period beginning January 1, 2017. As a result, the HDMI agent is unable to distribute the majority of the royalties collected to the Founders and, given that the fixed and determinable revenue recognition criteria has not been met, we are unable to recognize all of the HDMI royalty revenue for the fiscal year ended December 30, 2017. Our estimate of unbilled receivables from the HDMI agent that are not reflected in our financial statements at December 30, 2017 are in the $5 million to $10 million range. We acted as the agent of the HDMI consortium until December 31, 2016. From time to time, as the agent, we performed audits on royalty reporting customers to ensure compliance. As a result of those compliance efforts, we entered into settlement agreements for the payment of unreported royalties. The contractual terms of those agreements provided for upfront payment of unreported royalties or payment over a period of time, generally not to exceed one year. Revenue from those arrangements was recognized when the agreement was executed by both parties, as long as price was fixed and determinable and collection was reasonably assured. Inventories and Cost of Product Revenue Inventories are recorded at the lower of average cost determined on a first-in-first-out basis or market. We establish provisions for inventory if it is obsolete or we hold quantities which are in excess of projected customer demand. The creation of such provisions results in a write-down of inventory to net realizable value and a charge to Cost of product revenue. Shipping and handling costs are included in Cost of product revenue in our Consolidated Statements of Operations. 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 and building space. Leasehold improvements are amortized over the shorter of the non-cancelable lease term or the estimated useful life of the assets. 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. Variable Interest Entities and Equity Investments in Privately Held Companies We have an interest in an entity that is a Variable Interest Entity ("VIE"). If we are the primary beneficiary of a VIE, we are required to consolidate it. To determine if we are the primary beneficiary, we evaluate whether we have the power to direct the activities that most significantly impact the VIE's economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our evaluation includes identification of significant activities and an assessment of our ability to direct those activities based on governance provisions and arrangements to provide or receive product and process technology, product supply, operations services, equity funding, financing, and other applicable agreements and circumstances. Our assessments of whether we are the primary beneficiary of our VIE requires significant assumptions and judgments. We have concluded that we are not the primary beneficiary of this VIE as we do not have the power to direct the activities that most significantly impact the VIE's economic performance. Equity investments in privately held companies that we are not required to consolidate are accounted for under the cost method, as assessed under ASC 325-20, " Cost Method Investments ." These investments are reviewed on a quarterly basis to determine if their values have been impaired and adjustments are recorded as necessary. We assess the potential impairment of these investments by applying a fair value analysis using a revenue multiple approach. Declines in value that are judged to be other-than-temporary are reported in Other (expense) income, net in the accompanying Consolidated Statements of Operations with a commensurate decrease in the carrying value of the investment (see Note 10). Upon disposition of these investments, the specific identification method is used to determine the cost basis in computing realized gains or losses. Impairment of Long-Lived Assets Long-lived assets, including amortizable intangible assets, are carried on our financial statements based on their cost less accumulated depreciation or amortization. We monitor the carrying value of our long-lived assets for potential impairment and test the recoverability of such assets annually during the fourth quarter and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. These events or changes in circumstances, including management decisions pertaining to such assets, are referred to as impairment indicators. If an impairment indicator occurs, we perform a test of recoverability by comparing the carrying value of the asset group to its undiscounted expected future cash flows. If the carrying values are in excess of undiscounted expected future cash flows, we measure any impairment by comparing the fair value of the asset group to its carrying value. Fair value is generally determined by considering (i) internally developed discounted projected cash flow analysis of the asset group; (ii) actual third-party valuations; and/or (iii) information available regarding the current market for similar asset groups. If the fair value of the asset group is determined to be less than the carrying amount of the asset group, an impairment in the amount of the difference is recorded in the period that the impairment indicator occurs and is included in our Consolidated Statements of Operations. Estimating future cash flows requires significant judgment and projections may vary from the cash flows eventually realized, which could impact our ability to accurately assess whether an asset has been impaired. The results of our assessments are detailed in Note 9. Valuation of Goodwill Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. We review goodwill for impairment annually during the fourth quarter and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. When evaluating whether goodwill is impaired, we make a qualitative assessment to determine if it is more likely than not that the reporting unit's fair value is less than the carrying amount. If the qualitative assessment determines that it is more likely than not that the fair value is less than the carrying amount, the fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and we must measure the impairment loss. The impairment loss, if any, is recognized for any excess of the carrying amount of the reporting unit's goodwill over the implied fair value of the goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. If the fair value of the reporting unit exceeds its carrying value, no further impairment analysis is needed. For purposes of testing goodwill for impairment, we currently operate as a single reporting unit: the core Lattice ("Core") business, which includes intellectual property and semiconductor devices. In fiscal 2015 only, we separately tested goodwill for impairment in Qterics, a discrete software-as-a-service business unit that was an immaterial operating segment in the Lattice legal entity structure prior to its sale to an unrelated third party in April 2016. Although these two operating units constituted two reportable segments in fiscal 2015, we combined Qterics with our Core business and reported them together as one reportable segment due to the immaterial nature of the Qterics unit. The results of our assessments are detailed in Note 9. Leases We lease office space and classify our leases as either operating or capital lease arrangements in accordance with the criteria of ASC 840, “ Leases .” Certain of our office space operating leases contain provisions under which monthly rent escalates over time and certain leases may also contain provisions for reimbursement of a specified amount of leasehold improvements. When lease agreements contain escalating rent clauses, we recognize expense on a straight-line basis over the term of the lease. When lease agreements provide allowances for leasehold improvements, we capitalize the leasehold improvement assets and amortize them on a straight-line basis over the lesser of the lease term or the estimated useful life of the asset, and reduce rent expense on a straight-line basis over the term of the lease by the amount of the asset capitalized. Restructuring Charges Expenses associated with exit or disposal activities are recognized when incurred under ASC 420, “ Exit or Disposal Cost Obligations ,” for everything but severance. Because the Company has a history of paying severance benefits, the cost of severance benefits associated with a restructuring plan is recorded when such costs are probable and the amount can be reasonably estimated in accordance with ASC 712, “ Compensation - Nonretirement Postemployment Benefits .” When leased facilities are vacated, an amount equal to the total future lease obligations from the date of vacating the premises through the expiration of the lease, net of any future sublease income, is recorded as a part of restructuring charges. Research and Development Research and development expenses include costs for compensation and benefits, development masks, engineering wafers, depreciation, licenses, and outside engineering services. These expenditures are for the design of new products, intellectual property cores, processes, packaging, and software to support new products. Research and development costs are expensed as incurred. Accounting for Income Taxes Our provision for income tax is comprised of our current tax liability and changes in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements using enacted tax rates and laws that will be in effect when the difference is expected to reverse. Valuation allowances are provided to reduce deferred tax assets to an amount that in management’s judgment is more-likely-than-not to be recoverable against future taxable income. U.S. tax reform required a deemed repatriation of foreign earnings as of December 30, 2017 and no future U.S. taxes will be due on these earnings because of enactment of a 100% dividends received deduction. Foreign earnings may be subject to withholding taxes if they are distributed and repatriated to Lattice in the United States. Our income tax calculations are based on application of the respective U.S. federal, state or foreign tax law. Our tax filings, however, are subject to audit by the relevant tax authorities. Accordingly, we recognize tax liabilities based upon our estimate of whether, and the extent to which, additional taxes will be due when such estimates are more-likely-than-not to be sustained. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. To the extent the final tax liabilities are different than the amounts originally accrued, the increases or decreases as well as any interest or penalties are recorded as income tax expense or benefit in the Consolidated Statements of Operations. In assessing the ability to realize deferred tax assets, we evaluate both positive and negative evidence that may exist and consider whether it is more-likely-than-not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Any adjustment to the net deferred tax asset valuation allowance is recorded in the Consolidated Statements of Operations for the period that the adjustment is determined to be required. Stock-Based Compensati |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Dec. 30, 2017 | |
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. 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: Year Ended (in thousands, except per share data) December 30, December 31, January 2, Net loss $ (70,562 ) $ (54,099 ) $ (159,233 ) Shares used in basic and diluted net loss per share 122,677 119,994 117,387 Basic and diluted net loss per share $ (0.58 ) $ (0.45 ) $ (1.36 ) The computation of diluted net loss per share excludes the effects of stock options, RSUs, and ESPP shares that are antidilutive, aggregating approximately the following number of shares: Year Ended (in thousands) December 30, December 31, January 2, Stock options, RSUs, and ESPP shares excluded as they are antidilutive 6,622 8,978 9,243 Stock options, RSUs, and ESPP shares are considered antidilutive when the aggregate of exercise price and unrecognized stock-based compensation expense are greater than the average market price for our common stock during the period. Stock options, RSUs, and ESPP shares that are antidilutive at December 30, 2017 could become dilutive in the future. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 30, 2017 | |
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 have contractual maturities of up to two years, with less than one year remaining term as of December 30, 2017 and December 31, 2016 . The following table summarizes the composition of our Short-term marketable securities at fair value: (In thousands) December 30, 2017 December 31, 2016 Short-term marketable securities: Corporate and government bonds and notes $ 4,982 $ 10,230 Certificates of deposit — 78 Total marketable securities $ 4,982 $ 10,308 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value measurements as of Fair value measurements as of December 30, 2017 December 31, 2016 (In thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Short-term marketable securities $ 4,982 $ 4,982 $ — $ — $ 10,308 $ 10,230 $ 78 $ — Foreign currency forward exchange contracts, net 77 — 77 — 184 — 184 — Total fair value of financial instruments $ 5,059 $ 4,982 $ 77 $ — $ 10,492 $ 10,230 $ 262 $ — We invest in various financial instruments that may include 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 ." 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, as summarized in Note 1. There were no transfers between any of the levels during fiscal 2017 , 2016 , and 2015 . In accordance with ASC 320, “ Investments-Debt and Equity Securities ,” we recorded an unrealized loss of approximately $0.1 million during the fiscal year ended December 30, 2017 , and an unrealized loss of approximately $0.2 million during the fiscal year ended December 31, 2016 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 material adverse effect on our operating results. If we were to liquidate our position in these securities, it is likely that the amount of any future realized gain or loss would be different from the unrealized gain or loss reported in Accumulated other comprehensive loss . |
Inventories
Inventories | 12 Months Ended |
Dec. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (In thousands) December 30, 2017 December 31, 2016 Work in progress $ 49,642 $ 50,688 Finished goods 30,261 28,480 Total inventories $ 79,903 $ 79,168 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment (In thousands) December 30, 2017 December 31, 2016 Buildings $ — $ 3,554 Computer and test equipment 155,492 162,388 Office furniture and equipment 2,914 3,460 Leasehold and building improvements 13,277 14,865 171,683 184,267 Accumulated depreciation and amortization (131,260 ) (134,786 ) $ 40,423 $ 49,481 Depreciation and amortization expense for property and equipment was $16.3 million and $18.4 million for fiscal years 2017 and 2016 , respectively. For fiscal year 2015 , depreciation and amortization expense for property and equipment was $18.1 million , including $1.5 million of restructuring expense. In August 2017, we sold building space which we owned in Shanghai, China. The building space was vacated in fiscal 2015, upon consolidation of facilities to a single, alternate site in Shanghai following our acquisition of Silicon Image, and was sold for gross proceeds of approximately $7.9 million . As of the sale date, the asset had a historical cost of $3.6 million , accumulated depreciation of $1.4 million and we incurred $1.1 million of direct selling costs, resulting in a net gain on sale of $4.6 million , which is presented as Gain on sale of building in our Consolidated Statements of Operations . In November 2014, we sold land and buildings, comprising the former location of our corporate headquarters and executive office in Hillsboro, Oregon, for net proceeds of approximately $14.6 million . This property had a historical cost of $30.9 million and accumulated depreciation of $17.9 million , resulting in a net gain on sale of $1.6 million . We leased back a portion of the facilities for a lease term of eight years, resulting in deferral of the gain, which is being amortized over the life of the lease. |
Sales of Assets and Business Un
Sales of Assets and Business Units, Business Combinations, and Goodwill | 12 Months Ended |
Dec. 30, 2017 | |
Sales of Assets and Business Units, Business Combinations and Goodwill [Abstract] | |
Sales of Assets and Business Units, Business Combinations, and Goodwill | Sales of Assets and Business Units, Business Combinations, and Goodwill Sales of Assets and Business Units On September 30, 2017, in conjunction with our June 2017 restructuring plan (see Note 15), we sold 100% of the equity of our Hyderabad, India subsidiary and certain assets related to our Simplay Labs testing and certification business to Invecas, Inc. The fair value of purchase price consideration was $5.3 million , which was comprised of $2.3 million of cash and a $3.0 million note receivable. We recorded a $1.8 million loss on the sale, including a $2.2 million disposal of a relative fair value share of our goodwill, which is included in Other (expense) income, net in the Consolidated Statements of Operations . 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 was included in Other (expense) income, net in the Consolidated Statements of Operations in the period of sale. In the second quarter of fiscal 2017, we received a final escrow payment of $0.3 million related to the sale of Qterics, which was included as a gain in Other (expense) income, net in the Consolidated Statements of Operations for the period of receipt. Business Combinations On March 10, 2015, we acquired 100% of the outstanding equity of Silicon Image, Inc. ("Silicon Image"), a provider of video, audio, and data connectivity solutions for the mobile, consumer electronics, and personal computer markets for total fair value purchase consideration of $588.5 million in cash and assumed partially vested stock options and RSUs. Purchase consideration was allocated to the tangible and intangible assets and liabilities assumed on the basis of the respective estimated fair values on the acquisition date. The 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. 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 either fiscal 2017 or fiscal 2016 as no indicators of impairment were present. A $ 12.7 million charge to fully impair the Qterics goodwill was recorded for fiscal 2015 (Note 9). In the first quarter of 2016, we finalized our valuation and allocation of purchase price consideration related to the acquisition of Silicon Image, Inc. ("Silicon Image") resulting in $2.1 million of additional long-term liabilities related to an uncertain tax position and $0.1 million of other tax-related adjustments with an equivalent revision to Goodwill , which is reflected in the Consolidated Balance Sheets for the period ended December 31, 2016 . As part of our accounting for the asset sale to Invecas, Inc. in September 2017, we recorded a $2.2 million disposal of a relative fair value share of our Goodwill . Changes to the Goodwill balances on the Consolidated Balance Sheets are summarized in the following table: (In thousands) December 30, 2017 December 31, 2016 Beginning balance $ 269,758 $ 267,549 Additions — 2,209 Disposals (2,244 ) — Ending balance $ 267,514 $ 269,758 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 30, 2017 | |
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 ." Additionally, during fiscal 2015 and 2017, we licensed additional third-party technology. 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. During the first quarter of fiscal 2017 , we sold a portfolio of patents that had been acquired in our acquisition of Silicon Image for $18.0 million . This amount was received in two installments over the first and second quarters of fiscal 2017, and was recognized as licensing and services revenue in our Consolidated Statements of Operations during the respective periods in which the installment payments were received. As a result of this transaction, Intangible assets, net was reduced by approximately $3.5 million on our Consolidated Balance Sheets . We monitor the carrying value of our intangible assets for potential impairment and test the recoverability of such assets annually during the fourth quarter and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. The results of our assessments are summarized below and more fully detailed in Note 9. During the fourth quarter of fiscal 2017, we finalized our impairment assessment procedures related to certain of the developed technology intangible assets acquired in our acquisition of Silicon Image, resulting in a $3.8 million reduction to the preliminary impairment charge of $36.2 million recorded in the third quarter of fiscal 2017, for a net impairment charge of $32.4 million in fiscal 2017. During the third quarter of fiscal 2016, we recorded a $7.9 million impairment charge to the intangible assets associated with future HDMI adopter fees. During the fourth quarter of fiscal 2015, we recorded a $9.0 million impairment charge to the intangible assets of the then Qterics operating segment comprising developed technology of $3.9 million , and customer relationships of $5.1 million . With the sale of Qterics in April 2016, its balances for intangible assets, accumulated amortization, and impairment have been removed from the balance for Intangible assets, net in the Consolidated Balance Sheet as of December 31, 2016. The following tables summarize the details of our Intangible assets, net as of December 30, 2017 and December 31, 2016 : December 30, 2017 (In thousands) Weighted Average Amortization Period (in years) Gross Impairment Accumulated Amortization Intangible assets, net Developed technology 4.7 $ 158,700 $ (32,431 ) $ (81,847 ) $ 44,422 Customer relationships 5.7 22,934 — (16,696 ) 6,238 Licensed technology 3.5 2,392 — (1,744 ) 648 Total identified intangible assets $ 184,026 $ (32,431 ) $ (100,287 ) $ 51,308 December 31, 2016 (In thousands) Weighted Average Amortization Period (in years) Gross Impairment Accumulated Amortization Intangible assets, net Developed technology 4.7 $ 141,359 $ — $ (55,493 ) $ 85,866 Customer relationships 6.1 30,800 (7,866 ) (13,694 ) 9,240 Licensed technology 3.3 2,127 — (1,201 ) 926 Patents 5 769 — (279 ) 490 Total identified finite-lived intangible assets 175,055 (7,866 ) (70,667 ) 96,522 In-process research and development indefinite 22,341 — — 22,341 Total identified intangible assets $ 197,396 $ (7,866 ) $ (70,667 ) $ 118,863 We recorded amortization expense related to intangible assets on the Consolidated Statements of Operations as presented in the following table: Year Ended (In thousands) December 30, 2017 December 31, 2016 January 2, 2016 Research and development $ 569 $ 745 $ 731 Amortization of acquired intangible assets 31,340 33,575 29,580 $ 31,909 $ 34,320 $ 30,311 The annual expected amortization expense of acquired intangible assets with finite lives is as follows: (In thousands) Amount 2018 $ 19,419 2019 16,619 2020 7,504 2021 5,148 2022 2,352 Thereafter 266 Total $ 51,308 |
Impairment of Goodwill and Acqu
Impairment of Goodwill and Acquired Intangible Assets | 12 Months Ended |
Dec. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment of Goodwill and Acquired Intangible Assets | Impairment of Goodwill and Acquired Intangible Assets In connection with our acquisitions of Silicon Image in March 2015 and SiliconBlue in December 2011 we recorded goodwill and identifiable intangible assets related to developed technology, customer relationships, licensed technology, patents, and in-process research. We monitor the carrying value of our goodwill and acquired intangible assets for potential impairment and test the recoverability of such assets annually during the fourth quarter and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. When we are required to determine the fair value of intangible assets other than goodwill, we use the income approach. We start with a forecast of all expected net cash flows associated with the asset and then apply a discount rate to arrive at fair value. In the third quarter of fiscal 2017, we updated our annual strategic long-range plan, which resulted in revised forecasts. We also sold 100% of the equity of our Hyderabad, India subsidiary and certain assets related to our Simplay Labs testing and certification business to an unrelated third party. We determined that these activities constituted impairment indicators related to the developed technology intangible assets acquired in our acquisition of Silicon Image. Our assessment of the fair value of these intangible assets concluded that they had been impaired as of September 30, 2017, and we recorded a preliminary impairment charge of $36.2 million in the Consolidated Statements of Operations . During the fourth quarter of fiscal 2017, we completed our detailed analysis and evaluation of the information and assumptions used in the determination of the impairment charge, which included reviewing information, inputs, assumptions, and valuation methodologies used to estimate the fair value of these intangible assets, and finalization of review by an independent valuation expert. As a result, we recorded a $3.8 million reduction to the preliminary impairment charge recorded in the third quarter of fiscal 2017, for a net impairment charge of $32.4 million in fiscal 2017. No impairment charges related to goodwill were recorded in fiscal 2017 as no indicators of impairment were present. In September 2016, the Founders of the HDMI consortium, of which we are a member, amended the existing Founders Agreement as part of a regular amendment process resulting in changes to our role as agent for the HDMI consortium and to the model for sharing adopter fee revenues. Under the terms of the amendment agreement, our role as the agent was terminated effective January 1, 2017 and a new independent entity was appointed to act as the new HDMI licensing agent with responsibility for licensing and the distribution of royalties among Founders. 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 acquired in the Silicon Image acquisition associated with future HDMI adopter fees. Our assessment of the fair value of these intangible assets concluded that they had been impaired as of the end of the third quarter of fiscal 2016, and we recorded a $7.9 million impairment charge in the Consolidated Statements of Operations . No impairment charges related to goodwill were recorded in fiscal 2016 as no indicators of impairment were present. For fiscal 2015, the impairment of goodwill and intangible assets was related to Qterics, Inc., which was acquired in the March 2015 acquisition of Silicon Image. During the fourth quarter of fiscal 2016 , we determined that we experienced an impairment indicator related to the long-lived assets of the Qterics operating segment. For purposes of testing for impairment in fiscal 2015, the Company operated as two reporting units: the continuing core Lattice ("Core") business, which includes intellectual property and semiconductor devices, and Qterics, which was a discrete software-as-a-service business unit in the Lattice legal entity structure until it was sold in April 2016. Although these two operating segments constituted two reportable segments in fiscal 2015, we combined Qterics with our Core business and reported them together as one reportable segment due to the immaterial nature of the Qterics segment. Following this assessment, we concluded that goodwill and intangible assets had been impaired in the Qterics segment as of December 31, 2016 . As a result we recorded an impairment charge amounting to $21.7 million , or approximately 92% of the previous value of goodwill and intangible assets, in the Consolidated Statements of Operations for the year ended December 31, 2016 , comprising $12.7 million pertaining to goodwill, $3.9 million pertaining to developed technology, and $5.1 million pertaining to customer relationships. The valuation was based on the market approach and was our best estimate of fair value as of the end of fiscal 2015. No impairment charges were recorded for the Core segment in fiscal 2015 |
Cost Method Investment and Coll
Cost Method Investment and Collaborative Arrangement | 12 Months Ended |
Dec. 30, 2017 | |
Investments, All Other Investments [Abstract] | |
Cost Method Investment | Cost Method Investment and Collaborative Arrangement During fiscal 2015 , we purchased a series of preferred stock ownership interests in a privately-held company that designs human-computer interaction technology for total consideration of $5.0 million . This gross investment constituted a 22.7% ownership interest. 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 . In each of the second and third quarters of fiscal 2017, we advanced the investee $1.0 million through a short-term instrument, bringing our total short-term advances to the investee to $2.0 million . As these advances were due and payable in the fourth quarter of fiscal 2017, they were included in Prepaid expenses and other current assets in our Consolidated Balance Sheets while outstanding. The investee repaid the total advances in October 2017. In 2017, we signed new development and licensing contracts with the investee, and the investee obtaining preferred debt that effectively subordinates our ownership position between their debt and common shareholders. After evaluating these events and our investment position, we concluded that we have a variable interest in the privately-held company. However, since we are not the primary beneficiary of the investee, are not holding in-substance common stock, and do not have a significant amount of influence to direct the activities that most significantly impact the investee’s economic performance, accordingly we account for our investment in this company under the cost method. We assessed this investment for impairment as of December 30, 2017 by applying a fair value analysis using a revenue multiple approach. This yielded a fair value for our ownership stake of $2.3 million , which was less than its carrying value at the date of assessment. We determined that this impairment was other-than-temporary and adjusted the carrying value to the fair value. The total impairment adjustments against this investment that we have recognized through Other (expense) income, net in the Consolidated Statements of Operations are presented in the following table: Year Ended (In thousands) December 30, 2017 December 31, 2016 January 2, 2016 Impairment of cost-basis investment $ (1,761 ) $ (1,459 ) $ (492 ) Through December 30, 2017 , we have reduced the value of our investment by approximately $3.7 million . The net balance of our investment included in Other long-term assets in the Consolidated Balance Sheets is detailed in the following table: (In thousands) Total Balance at January 2, 2016 $ 4,508 Investment made during fiscal year 1,000 Impairment of cost-basis investment (1,459 ) Balance at December 31, 2016 4,049 Impairment of cost-basis investment (1,761 ) Balance at December 30, 2017 $ 2,288 At December 30, 2017, our maximum exposure to loss as a result of involvement with this VIE totals $2.9 million , which is comprised of the $2.3 million fair value of our investment plus $0.6 million of prepaid royalties further described in the section below on the related collaborative arrangement. Collaborative Arrangement Concurrent with the initiation of the investment discussed above, we entered into a collaborative arrangement with the investee. Under this arrangement, the parties undertook the development of certain fast, multi-touch sensing devices for touch screen controller applications. The new development and licensing agreements we entered into in 2017 specified the transfer of certain Intellectual Property ("IP") from the investee to us, payment of royalties from us to the investee and from investee to us for future sales of co-developed products, as well as an agreement to perform certain services for each other at no charge. We will also make periodic payments to the investee. These will be automatically credited against any future revenue share amount owed to investee and will be accounted for as prepaid royalties under ASC 340-10-05-05. The schedule of periodic payments for prepaid royalties is as follows: Amount of each Fiscal Year Frequency payment (In thousands) 2017 In the fourth calendar quarter $ 625 2018 At the end of each calendar quarter $ 875 2019 At the end of each calendar quarter $ 1,250 At December 30, 2017, royalties prepaid to the investee total $0.6 million and are included in Prepaid expenses and other current assets in our Consolidated Balance Sheets. There is no liability related to these payments as they are contractually associated with specific future periods. |
Collaborative Arrangement | Cost Method Investment and Collaborative Arrangement During fiscal 2015 , we purchased a series of preferred stock ownership interests in a privately-held company that designs human-computer interaction technology for total consideration of $5.0 million . This gross investment constituted a 22.7% ownership interest. 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 . In each of the second and third quarters of fiscal 2017, we advanced the investee $1.0 million through a short-term instrument, bringing our total short-term advances to the investee to $2.0 million . As these advances were due and payable in the fourth quarter of fiscal 2017, they were included in Prepaid expenses and other current assets in our Consolidated Balance Sheets while outstanding. The investee repaid the total advances in October 2017. In 2017, we signed new development and licensing contracts with the investee, and the investee obtaining preferred debt that effectively subordinates our ownership position between their debt and common shareholders. After evaluating these events and our investment position, we concluded that we have a variable interest in the privately-held company. However, since we are not the primary beneficiary of the investee, are not holding in-substance common stock, and do not have a significant amount of influence to direct the activities that most significantly impact the investee’s economic performance, accordingly we account for our investment in this company under the cost method. We assessed this investment for impairment as of December 30, 2017 by applying a fair value analysis using a revenue multiple approach. This yielded a fair value for our ownership stake of $2.3 million , which was less than its carrying value at the date of assessment. We determined that this impairment was other-than-temporary and adjusted the carrying value to the fair value. The total impairment adjustments against this investment that we have recognized through Other (expense) income, net in the Consolidated Statements of Operations are presented in the following table: Year Ended (In thousands) December 30, 2017 December 31, 2016 January 2, 2016 Impairment of cost-basis investment $ (1,761 ) $ (1,459 ) $ (492 ) Through December 30, 2017 , we have reduced the value of our investment by approximately $3.7 million . The net balance of our investment included in Other long-term assets in the Consolidated Balance Sheets is detailed in the following table: (In thousands) Total Balance at January 2, 2016 $ 4,508 Investment made during fiscal year 1,000 Impairment of cost-basis investment (1,459 ) Balance at December 31, 2016 4,049 Impairment of cost-basis investment (1,761 ) Balance at December 30, 2017 $ 2,288 At December 30, 2017, our maximum exposure to loss as a result of involvement with this VIE totals $2.9 million , which is comprised of the $2.3 million fair value of our investment plus $0.6 million of prepaid royalties further described in the section below on the related collaborative arrangement. Collaborative Arrangement Concurrent with the initiation of the investment discussed above, we entered into a collaborative arrangement with the investee. Under this arrangement, the parties undertook the development of certain fast, multi-touch sensing devices for touch screen controller applications. The new development and licensing agreements we entered into in 2017 specified the transfer of certain Intellectual Property ("IP") from the investee to us, payment of royalties from us to the investee and from investee to us for future sales of co-developed products, as well as an agreement to perform certain services for each other at no charge. We will also make periodic payments to the investee. These will be automatically credited against any future revenue share amount owed to investee and will be accounted for as prepaid royalties under ASC 340-10-05-05. The schedule of periodic payments for prepaid royalties is as follows: Amount of each Fiscal Year Frequency payment (In thousands) 2017 In the fourth calendar quarter $ 625 2018 At the end of each calendar quarter $ 875 2019 At the end of each calendar quarter $ 1,250 At December 30, 2017, royalties prepaid to the investee total $0.6 million and are included in Prepaid expenses and other current assets in our Consolidated Balance Sheets. There is no liability related to these payments as they are contractually associated with specific future periods. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 30, 2017 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Included in Accounts payable and accrued expenses in the Consolidated Balance Sheets are the following balances: (In thousands) December 30, 2017 December 31, 2016 Trade accounts payable $ 35,350 $ 37,800 Liability for non-cancelable contracts 4,531 5,744 Payable to members of the MHL and HDMI consortia* 87 9,698 Other accrued expenses 14,437 27,691 Total accounts payable and accrued expenses $ 54,405 $ 80,933 * As an agent of the MHL consortium, we administer royalty reporting and distributions to the members of this consortium. This excludes amounts payable to us, and is payable quarterly based on collections from MHL customers. Our role as the agent of the HDMI consortium terminated on January 1, 2017 and, therefore, the balance as of December 30, 2017 is due to MHL consortium members only. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 12 Months Ended |
Dec. 30, 2017 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interest With the acquisition of Silicon Image on March 10, 2015, we also assumed a redeemable noncontrolling interest which comprised a 7% investment in Qterics amounting to $7.0 million invested by the noncontrolling interest holder initially entered into on December 4, 2014. The investment was redeemable at fair market value at the third-party holder's option on the third, fourth, or fifth year anniversaries. If the fair market value at the redemption date, as negotiated and agreed to by the parties, did not exceed $21 million , the redemption price would be 130% of the fair market value. As of the acquisition date, the fair value of the noncontrolling interest was determined to be $7.2 million , recorded as temporary equity and reported as Redeemable noncontrolling interest in the Consolidated Balance Sheets. We elected to accrete the carrying value to the estimated redemption value over the three -year redemption period and reported the accretion charge as a reduction to Additional-paid-in-capital. During fiscal 2015, we recorded cumulative accretion charges amounting to $0.4 million bringing the value of the redeemable noncontrolling interest to $7.6 million . During the fourth quarter of fiscal 2015, we entered into an agreement with the holder pursuant to which the entire interest was redeemed for a cash payment of approximately $0.9 million . The difference between the carrying value and the redemption amount of approximately $6.7 million was partially offset by accretion charges and net loss attributable to noncontrolling interest recorded prior to redemption totaling approximately $0.6 million . The net amount of approximately $6.1 million was recorded as Additional paid-in-capital during the year ended January 2, 2016 (See our Consolidated Statements of Stockholders' Equity ). |
Lease Obligations
Lease Obligations | 12 Months Ended |
Dec. 30, 2017 | |
Leases [Abstract] | |
Lease Obligations | Lease Obligations Certain of our facilities are leased under operating leases, which expire at various times through 2026. Rental expense under operating leases was $8.9 million , $9.5 million and $7.4 million for fiscal years 2017 , 2016 and 2015 , respectively. Future minimum lease commitments at December 30, 2017 were as follows: Fiscal year Amount (In thousands) 2018 $ 6,310 2019 4,784 2020 4,860 2021 4,654 2022 4,694 Thereafter 14,259 $ 39,561 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The domestic and foreign components of loss before income taxes were as follows: Year Ended (In thousands) December 30, 2017 December 31, 2016 January 2, 2016 Domestic $ (17,341 ) $ (33,962 ) $ (93,229 ) Foreign (52,372 ) (10,220 ) (33,464 ) Loss before taxes $ (69,713 ) $ (44,182 ) $ (126,693 ) The components of the income tax expense are as follows: Year Ended (In thousands) December 30, 2017 December 31, 2016 January 2, 2016 Current: Federal $ 508 $ 1,896 $ 968 State 30 13 80 Foreign 304 7,918 10,634 842 9,827 11,682 Deferred: Federal — — 18,713 State — — 2,318 Foreign 7 90 (173 ) 7 90 20,858 Income tax expense $ 849 $ 9,917 $ 32,540 Income tax expense differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pretax income as a result of the following differences: Year Ended December 30, 2017 December 31, 2016 January 2, 2016 % % % Statutory federal rate (35) (35) (35) Adjustments for tax effects of: State taxes, net (7) 7 (6) Research and development credits (1) (2) (2) Stock compensation 3 3 1 Foreign rate differential 28 15 12 Foreign dividends 1 — 5 Foreign withholding taxes — 9 3 Other permanent — 3 4 Goodwill impairment — — 4 Valuation allowance (73) 17 46 Change in uncertain tax benefit accrual 1 5 (8) Stock compensation adoption (8) — — Tax rate change 93 — 3 Other (1) 1 (1) Effective income tax rate 1 23 26 ASC 740, “ Income Taxes ”, provides for the recognition of deferred tax assets if realization of these assets is more-likely-than-not. We evaluate both positive and negative evidence to determine if some or all of our deferred tax assets should be recognized on a quarterly basis. In fiscal 2015, we completed the acquisition of Silicon Image, Inc. At the time of the acquisition, we evaluated the combined entity's net deferred income taxes, which included an assessment of the cumulative income or loss over the prior three-year period, to determine if a valuation allowance is required. After considering the significant loss for fiscal 2015, the company recorded a valuation allowance on its net federal and state deferred tax assets. 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 in fiscal 2015. 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. Through December 30, 2017 , we continued to evaluate the valuation allowance position in the United States and concluded we should maintain a valuation allowance against the net federal and state deferred tax assets. We will continue to evaluate both positive and negative evidence in future periods to determine if more deferred tax assets should be recognized. We don't have a valuation allowance in any foreign jurisdictions as it has been concluded it is more likely than not that we will realize the net deferred tax assets in future periods. The net decrease in the total valuation allowance affecting the effective tax rate for the year ended December 30, 2017 was approximately $51.0 million , mainly attributable to the tax impact of the recent tax law change that reduced the value of our income tax deferred tax assets and reduced the related valuation allowance. The components of our net deferred tax assets are as follows: (In thousands) December 30, 2017 December 31, 2016 Deferred tax assets: Accrued expenses and reserves $ 3,096 $ 5,143 Inventory 2 290 Deferred Revenue 228 426 Stock-based and deferred compensation 4,018 7,269 Intangible assets 19,576 20,063 Fixed assets 216 678 Net operating loss carry forwards 86,410 137,521 Tax credit carry forwards 90,530 89,174 Capital loss carry forwards 3,926 962 Other 2,323 2,973 210,325 264,499 Less: valuation allowance (209,691 ) (260,687 ) Net deferred tax assets 634 3,812 Deferred tax liabilities: Fixed Assets 559 — Other 16 3,746 Total deferred tax liabilities 575 3,746 Net deferred tax assets $ 59 $ 66 At December 30, 2017 , we had U.S. federal net operating loss ("NOL") carryforwards (pretax) of approximately $351.4 million that expire at various dates between 2018 and 2036 . We had state NOL carryforwards (pretax) of approximately $162.9 million that expire at various dates from 2018 through 2036 . We also had federal and state credit carryforwards of $50.2 million and $59.2 million , respectively. Of the $59.3 million state credit carryforwards, $57.9 million do not expire. The federal and remaining state credits expire at various dates from 2018 through 2037 . Future utilization of federal and state net operating losses and tax credit carry forwards may be limited if cumulative changes to ownership exceed 50% within any three -year period. This has not occurred through fiscal 2017. If there is a significant change in ownership, future tax attribute utilization may be restricted (§382 limitation) and NOL carryforwards and/or R&D credits will be reduced to reflect the limitation. U.S. tax reform required a deemed repatriation of deferred foreign earnings as of December 30, 2017 and no future U.S. taxes will be due on these earnings because of enactment of a 100% dividends received deduction. At December 30, 2017 , we had no impact from this transition tax due to negative post-1986 earnings and profits. At December 30, 2017 , our unrecognized tax benefits associated with uncertain tax positions were $44.8 million , of which $42.9 million , if recognized, would affect the effective tax rate, subject to valuation allowance. As of December 30, 2017 , interest and penalties associated with unrecognized tax benefits were $8.1 million . Our liability for uncertain tax positions (including penalties and interest) was $26.9 million and $29.6 million at December 30, 2017 and December 31, 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 of $24.6 million is netted against deferred tax assets. The following table summarizes the changes to unrecognized tax benefits for fiscal years 2017, 2016 and 2015: (In thousands) Amount Balance at January 3, 2015 $ 18,673 Additions based on tax positions related to the current year 4,381 Additions based on tax positions of prior years — Additions due to acquisition 41,083 Reduction for tax positions of prior years (14,958 ) Settlements — Reduction as a result of lapse of applicable statute of limitations (972 ) Balance at January 2, 2016 48,207 Additions based on tax positions related to the current year 2,573 Additions based on tax positions of prior years 530 Additions due to acquisition — Reduction for tax positions of prior years (1,824 ) Settlements — Reduction as a result of lapse of applicable statute of limitations (1,863 ) Balance at December 31, 2016 47,623 Additions based on tax positions related to the current year 471 Additions based on tax positions of prior years 11 Additions due to acquisition — Reductions for tax positions of prior years (1,226 ) Settlements — Reduction as a result of lapse of applicable statute of limitations (2,047 ) Balance at December 30, 2017 $ 44,832 At December 30, 2017, it is reasonably possible that $1.5 million of unrecognized tax benefits and $0.1 million of associated interest and penalties could be recognized during the next twelve months. We are subject to federal and state income tax as well as income tax in the various foreign jurisdictions in which we operate. Additionally, the years that remain subject to examination are 2014 for federal income taxes, 2013 for state income taxes, and 2011 for foreign income taxes, including years ending thereafter. However, to the extent allowed by law, the tax authorities may have the right to examine prior periods where net operating losses or tax credits were generated and carried forward, and make adjustments up to the amount of the net operating losses or credit carryforward amount. Our income tax return for China is currently under examination for 2014 through 2016 . We are not under examination in any other jurisdiction. On December 18, 2015, the Protecting Americans from Tax Hikes Act of 2015 (the "2015 Tax Act") was enacted. The 2015 Tax Act included several business tax provisions including the permanent extension of the credit for qualified research and development. The tax benefit in each year resulting from these reinstatements of the federal research and development tax credit was offset by a valuation allowance and therefore did not impact our annual effective tax rate. The Tax Cuts and Jobs Act (the "2017 Tax Act"), enacted December 22, 2017, contains provisions that affect us, but the impact will be absorbed by utilizing NOL carry forwards. Reduction of the corporate tax rate from 35% to 21% reduced the value of our domestic deferred tax assets and reduced our associated full valuation allowance on those assets, resulting in no net impact on our Consolidated Statements of Operation. The SEC issued SAB 118 on December 22, 2017 which addresses situations where the registrant does not have all the necessary information available or analyzed to complete the accounting for certain income tax effects under the 2017 Tax Act. Due to the lack of authoritative guidance issued, complexity, and enactment timing of the 2017 Tax Act, we have made a reasonable estimate of the income tax effect of the deemed repatriation of deferred foreign earnings. We may refine this as additional guidance, clarification, and analysis is available. Any changes to our estimate will be reflected in continuing operations in the period the amounts are determined and within the “measurement period” allowed under SAB 118. 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 | 12 Months Ended |
Dec. 30, 2017 | |
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 any changes in sublease assumptions should they occur, which will be expensed as incurred. Under this plan, approximately $0.1 million of credit, and $7.3 million and $13.3 million of expense was incurred during the years ended December 30, 2017 , December 31, 2016 , and January 2, 2016 , respectively. Approximately $20.5 million of total expense has been incurred through December 30, 2017 under the March 2015 Plan, and we believe this amount approximates the total costs expected. 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 this reduction, approximately $0.7 million of credit, and $2.0 million and $5.9 million of expense was incurred during the years ended December 30, 2017 , December 31, 2016 , and January 2, 2016 , respectively. Approximately $7.2 million of total expense has been incurred through December 30, 2017 under the September 2015 Reduction, and we believe this amount approximates the total costs expected. In June 2017, our Board of Directors approved an additional internal restructuring plan (the "June 2017 Plan"), which included the sale of 100% of the equity of our Hyderabad, India subsidiary and certain assets related to our Simplay Labs testing and certification business, a worldwide workforce reduction, and an initiative to reduce our infrastructure costs. These actions are part of an overall plan to achieve financial targets and to enhance our financial and competitive position by better aligning our revenue and operating expenses. Approximately $8.0 million of total expense has been incurred through December 30, 2017 under the June 2017 Plan, and we expect the total cost to be approximately $8.0 million to $19.0 million . For fiscal 2017 , the approximately $8.0 million of expense related to the June 2017 Plan has been offset by credits from the March 2015 Plan and the September 2015 Reduction discussed above totaling approximately $0.8 million , resulting in the net charge of approximately $7.2 million 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 activity related to the restructuring plans described above: (In thousands) Severance & related * Lease termination Software Contracts & Engineering Tools** Other Total Balance at January 3, 2015 $ — $ 43 $ — $ 139 $ 182 Restructuring charges 12,861 2,667 3,040 671 19,239 Costs paid or otherwise settled (9,165 ) (1,705 ) (2,663 ) (810 ) (14,343 ) Balance at January 2, 2016 $ 3,696 $ 1,005 $ 377 $ — $ 5,078 Restructuring charges 2,883 2,993 1,903 1,488 9,267 Costs paid or otherwise settled (5,778 ) (2,962 ) (2,255 ) (1,476 ) (12,471 ) Balance at December 31, 2016 $ 801 $ 1,036 $ 25 $ 12 $ 1,874 Restructuring charges 2,484 811 3,066 835 7,196 Costs paid or otherwise settled (2,093 ) (977 ) (2,731 ) (822 ) (6,623 ) Balance at December 30, 2017 $ 1,192 $ 870 $ 360 $ 25 $ 2,447 * Includes employee relocation costs and accelerated stock compensation ** Includes cancellation of contracts, asset impairments, and accelerated depreciation on certain enterprise resource planning and customer relationship management systems |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 30, 2017 | |
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 one-month LIBOR, subject to a 1.00% floor, plus a spread of 4.25% . The current effective interest rate on the Term Loan is 6.29% . The Term Loan is payable through a combination of (i) quarterly installments of approximately $0.9 million , (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. In the first quarter of fiscal 2017 , we made a required additional principal payment of $9.9 million due to a sale of patents. In the second quarter of fiscal 2017 , we made another required additional principal payment of $8.3 million due to a sale of patents, and a required annual excess cash flow payment of $13.7 million . There were no other required principal payments outside of our quarterly installment payments. Over the next twelve months, our principal payments will be comprised mainly of regular quarterly installments. We have determined that the annual excess cash flow payment required in fiscal 2018, as calculated according to the Credit Agreement, is not material to our Consolidated Balance Sheet at December 30, 2017 . 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 December 30, 2017 . 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) December 30, 2017 December 31, 2016 Principal amount $ 306,791 $ 342,221 Unamortized original issue discount and debt issuance costs (5,616 ) (7,599 ) Less: Current portion of long-term debt (1,508 ) (33,767 ) Long-term debt $ 299,667 $ 300,855 Interest expense related to the Term Loan was included in Interest expense on the Consolidated Statements of Operations as follows: Year Ended (in thousands) December 30, 2017 December 31, 2016 January 2, 2016 Contractual interest $ 16,503 $ 18,518 $ 15,225 Amortization of debt issuance costs and discount 1,982 1,350 2,835 Total Interest expense related to the Term Loan $ 18,485 $ 19,868 $ 18,060 As of December 30, 2017 , expected future principal payments on the Term Loan were as follows: Fiscal year (in thousands) 2018 $ 3,500 2019 26,235 2020 59,187 2021 217,869 $ 306,791 |
Common Stock Repurchase Program
Common Stock Repurchase Program | 12 Months Ended |
Dec. 30, 2017 | |
Equity [Abstract] | |
Common Stock Repurchase Program | Common Stock Repurchase Program We did no t repurchase any shares in either fiscal year 2017 or 2016. We most recently repurchased shares in fiscal year 2015 under a stock repurchase program approved by our Board of Directors on March 3, 2014 . This 2014 program authorized the repurchase of up to $20.0 million of outstanding common stock from time to time over a period of twelve months. The 2014 program completed during the first quarter of fiscal 2015, during which approximately 1.1 million shares were repurchased for approximately $7.0 million . All shares repurchased in fiscal 2015 under the 2014 program were retired during fiscal 2015 (see our Consolidated Statements of Shareholders' Equity). All repurchases were open market transactions funded from available working capital. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stockholders' Equity | Stockholders' Equity Employee and Director Stock Options, Restricted Stock and ESPP We have four equity incentive plans (the "1996 Stock Incentive Plan," the "2001 Stock Plan," the "2013 Incentive Plan" and the "2011 Non-Employee Director Equity Incentive Plan"). Awards granted under the 1996 Stock Incentive Plan and the 2001 Stock Plan remain outstanding, but no shares are available for future awards under these plans. Shares remain available for grants to employees and non-employee directors only under the 2013 Incentive Plan and the 2011 Non-Employee Director Equity Incentive Plan, respectively. "Incentive stock options" under Section 422 of the U.S. Internal Revenue Code and restricted stock unit ("RSU") grants are part of our equity compensation practices for employees who receive equity grants. Options and RSUs generally vest quarterly over a four -year period beginning on the grant date. The contractual terms of options granted do not exceed ten years. In May 2012, the Company's stockholders approved the 2012 Employee Stock Purchase Plan ("2012 ESPP"), which authorizes the issuance of 3.0 million shares of common stock to eligible employees to purchase shares of common stock through payroll deductions, which cannot exceed 10% of an employee's compensation. The purchase price of the shares is the lower of 85% of the fair market value of the stock at the beginning of each six-month offering period or 85% of the fair market value at the end of such period. During fiscal 2017 only, the ESPP was suspended. We have treated the 2012 ESPP as a compensatory plan. We recorded no related compensation expense in fiscal 2017 , and related compensation expense of $0.6 million and $0.4 million for fiscal years 2016 and 2015 , respectively. At December 30, 2017 , a total of 3.6 million shares of our common stock were available for future grants under the 2013 Incentive Plan and the 2011 Non-Employee Director Equity Incentive Plan. Shares subject to stock option grants that expire or are canceled, without delivery of such shares, generally become available for re-issuance under equity incentive plans. At December 30, 2017 , a total of 1.9 million shares of our common stock were available for future purchases under the 2012 ESPP. On March 10, 2015, in conjunction with the acquisition of Silicon Image, we assumed certain outstanding stock option and RSU grants of the Silicon Image Equity Incentive Plans. We assumed all stock option grants that were unvested or vested and out-of-the-money and all outstanding unvested RSU grants. The exchange ratio for the conversion was 1.09816 for all grants. The conversion ratio was determined by the weighted average closing price of Lattice common stock for the ten days prior to the acquisition date divided by the offer price of $7.30 . The converted outstanding option grants totaled 2,087,605 shares and converted RSU grants totaled 2,025,255 shares as of March 10, 2015. As of December 30, 2017 , 275,991 options and 30,679 RSU shares arising from this conversion remained outstanding. Stock-Based Compensation Total stock-based compensation expense included in our Consolidated Statements of Operations is presented in the following table: Year Ended (In thousands) December 30, 2017 December 31, 2016 January 2, 2016 Cost of products sold $ 795 $ 888 $ 1,416 Research and development 5,245 7,928 9,141 Selling, general, and administrative 6,503 7,397 6,793 Acquisition related charges — — 4,293 Total stock-based compensation $ 12,543 $ 16,213 $ 21,643 Of the $21.6 million total stock-based compensation for the twelve months ended January 2, 2016, $3.9 million was paid in cash during the period as a result of the acquisition of Silicon Image on March 10, 2015. ASC 718, “Compensation-Stock Compensation (“ASC 718”),” requires that we recognize compensation expense for only the portion of employee and director options and ESPP rights that are expected to vest. The fair values of each option award on the date of grant and of the shares expected to be issued under the employee stock purchase plan are estimated using the Black-Scholes valuation model and the assumptions noted in the following table. The expected term is based on historical vested option exercises and includes an estimate of the expected term for options that are fully vested and outstanding. The expected volatility of both stock options and ESPP shares is based on the daily historical volatility of our stock price, measured over the expected term of the option or the ESPP purchase period. The risk-free interest rate is based on the implied yield on a U.S. Treasury zero-coupon issue with a remaining term closest to the expected term of the option. The dividend yield reflects that we have not paid any cash dividends since inception and do not intend to pay any cash dividends in the foreseeable future. The following table summarizes the assumptions used in the valuation of stock option and ESPP compensation: Year Ended December 30, 2017 December 31, 2016 January 2, 2016 Employee and Director Stock Options Expected volatility 40.96% to 48.01% 44.2% to 50.8% 43.6% to 47.3% Risk-free interest rate 1.99% to 2.09% .94% to 2.06% 1.4% to 1.7% Expected term (years) 4.08 to 4.25 4.06 to 4.78 4.08 to 4.75 Dividend yield —% —% —% Employee Stock Purchase Plan * Weighted average expected volatility —% 57.9% 33.6% Weighted average risk-free interest rate —% 0.43% 0.12% Expected term N/A 6 months 6 months Dividend yield —% —% —% * ESPP suspended during fiscal 2017 only At December 30, 2017 , there was $12.4 million of total unrecognized compensation cost related to unvested employee and director stock options, which is expected to be recognized over a weighted average period of 2.8 years . Our current practice is to issue new shares to satisfy option exercises. Compensation expense for all stock-based compensation awards is recognized using the straight-line method. The following table summarizes our stock option activity and related information for the year ended December 30, 2017 : (Shares and aggregate intrinsic value in thousands) Shares Weighted Weighted average Aggregate Balance, December 31, 2016 12,566 $ 5.70 Granted 3,732 5.73 Exercised (1,803 ) 5.07 Forfeited or expired (1,556 ) 6.00 Balance, December 30, 2017 12,939 $ 5.77 Vested and expected to vest at December 30, 2017 12,939 $ 5.77 4.47 $ 3,333 Exercisable, December 30, 2017 6,601 $ 5.81 2.87 $ 2,485 The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the Company's closing stock price on the last trading day of the fiscal year and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on that day. This amount changes based on the fair market value of the Company's stock. Total intrinsic value of options exercised for fiscal 2017 , 2016 and 2015 , and was $2.2 million , $3.3 million and $2.5 million , respectively. The total fair value of options and RSUs vested and expensed in fiscal 2017 , 2016 and 2015 and was $12.5 million , $15.6 million and $18.0 million , respectively. The resultant grant date weighted-average fair values for stock options granted, calculated using the Black-Scholes option pricing model with the noted assumptions for stock options, were $2.02 , $2.14 and $2.35 for fiscal years 2017 , 2016 and 2015 , respectively. The weighted average fair values for the ESPP, calculated using the Black-Scholes option pricing model with the noted assumptions for the ESPP, were $0.00 , $1.82 and $1.51 for fiscal years 2017 , 2016 and 2015 , respectively. The following table summarizes our RSU activity for the year ended December 30, 2017 : (Shares in thousands) Shares Weighted average grant date fair value Balance, December 31, 2016 3,247 $ 5.90 Granted 1,530 5.83 Exercised (1,478 ) 5.95 Forfeited or expired (533 ) 5.84 Balance, December 30, 2017 2,766 $ 5.85 At December 30, 2017 there was $14.4 million of total unrecognized compensation cost related to unvested RSUs. Our current practice is to issue new shares when RSUs vest. Compensation expense for RSUs is recognized using the straight-line method over the related vesting period. In fiscal years 2015 through 2017, we granted stock options and RSUs with a market condition to certain executives. The options have a two year vesting and vest between 0% and 200% of the target amount, based on the Company's relative Total Shareholder Return (TSR) when compared to the TSR of a component of companies of the PHLX Semiconductor Sector Index over a two year period. TSR is a measure of stock price appreciation plus dividends paid, if any, in the performance period. The fair values of the options and RSUs were determined and fixed on the date of grant using a lattice-based option-pricing valuation model incorporating a Monte-Carlo simulation and a consideration of the likelihood that we would achieve the market condition. The following table summarizes the activity for our stock options with a market condition: (Shares in thousands) Unvested Vested Total Balance, December 31, 2016 597 — 597 Granted 475 — 475 Vested (92 ) 92 — Exercised — (9 ) (9 ) Canceled (273 ) — (273 ) Balance, December 30, 2017 707 83 790 Additionally, we granted 70 thousand RSUs with a market condition to a certain executive in fiscal 2015. These RSUs had the same market condition as the stock options above and were canceled in fiscal 2016 due to termination. We incurred stock compensation expense related to these stock option and RSU market condition awards of approximately $0.5 million , $0.8 million , and $0.6 million in fiscal years 2017 , 2016 , and 2015 , respectively, which is recorded as a component of total options and RSU expense. The following table summarizes the assumptions used in the valuation of stock options and RSUs with a market condition: Year Ended December 30, 2017 December 31, 2016 January 2, 2016 Executive stock options with a market condition Expected volatility 41% 46% 44% to 46% Risk-free interest rate 1.9% 1.1% 1.4% Expected term (years) 4.5 4.5 4.5 Dividend yield —% —% —% Executive RSUs with a market condition Expected volatility n/a n/a 36.9% Risk-free interest rate n/a n/a 0.6% Expected term (years) n/a n/a 2.0 Dividend yield n/a n/a —% |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 30, 2017 | |
Compensation Related Costs [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Qualified Investment Plan In 1990, we adopted a 401(k) plan, which provides participants with an opportunity to accumulate funds for retirement. The plan does not allow investments in the Company's common stock. The plan allows for the Company to make discretionary matching contributions in cash. We recorded matching contributions of approximately $0.8 million in fiscal 2017 , and of approximately $0.9 million in each of fiscal 2016 and fiscal 2015 . 2017 Cash Incentive Plan On December 20, 2016, upon the recommendation of the Compensation Committee, the Board of Directors of the Company approved the 2017 Cash Incentive Plan (the “2017 Cash Plan”). The chief executive officer, other executive officers, and other members of senior management, including vice presidents and director-level employees, together with all other employees of the Company not on the Company's sales incentive plan are eligible to participate in the 2017 Cash Plan. Under the 2017 Cash Plan, individual cash incentive payments for the eligible employees will be based both on Company financial performance, as measured by achievement of operating income (before incentive plan accruals) and revenue goals within specified ranges established by the Compensation Committee, and Company performance, as measured by the achievement of personal management objectives. The Compensation Committee determines the performance of the chief executive officer, the chief financial officer and other participants based on the achievement of the management objectives established by the Compensation Committee during the first fiscal quarter of 2017. There was $7.2 million of expense recorded under this plan in fiscal 2017. 2016 Cash Incentive Plan On December 21, 2015, upon the recommendation of the Compensation Committee, the Board of Directors of the Company approved the 2016 Cash Incentive Plan (the “2016 Cash Plan”). The chief executive officer, other executive officers, and other members of senior management, including vice presidents and director-level employees, together with all other employees of the Company not on the Company's sales incentive plan are eligible to participate in the 2016 Cash Plan. Under the 2016 Cash Plan, individual cash incentive payments for the eligible employees will be based both on Company financial performance, as measured by achievement of operating income (before incentive plan accruals) and revenue goals within specified ranges established by the Compensation Committee, and Company performance, as measured by the achievement of personal management objectives. The Compensation Committee determines the performance of the chief executive officer, the chief financial officer and other participants based on the achievement of the management objectives established by the Compensation Committee during the first fiscal quarter of 2016. There was $4.7 million of expense recorded under this plan in fiscal 2016. 2015 Cash Incentive Plan On December 4, 2014, upon the recommendation of the Compensation Committee, the Board of Directors of the Company approved the 2015 Cash Incentive Plan (the “2015 Cash Plan”). The chief executive officer, other executive officers, and other members of senior management, including vice presidents and director-level employees, together with all other employees of the Company not on the Company's sales incentive plan were eligible to participate in the 2015 Cash Plan. Under the 2015 Cash Plan, individual cash incentive payments for the eligible employees were based both on Company financial performance, as measured by achievement of operating income (before incentive plan accruals) and revenue goals within specified ranges established by the Compensation Committee, and Company performance, as measured by the achievement of personal management objectives. The Compensation Committee determined the performance of the chief executive officer, the chief financial officer and other participants based on the achievement of the management objectives established by the Compensation Committee during the first fiscal quarter of 2015. There was $1.0 million of expense recorded under this plan in fiscal 2015. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal Matters From time to time, we are exposed to certain asserted and unasserted potential claims. 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. 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. Other Matters We maintain certain Value-Added Tax ("VAT") benefits derived from our research and development operations that require filing tax exempt status documentation with local taxing authorities. In relation to one of our Chinese legal entities, we are undergoing an audit of this documentation as of December 30, 2017 . This audit may or may not result in favorable or unfavorable findings. Due to the uncertainty in both the outcome and the estimated the range of any findings, no liability been accrued as of December 30, 2017 . We believe the findings would not have a material impact on our Consolidated Financial Statements and could be in a range from $0 to less than $2 million . |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 30, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Valuation and Qualifying Accounts The following table displays the activity related to changes in our valuation and qualifying accounts: (In thousands) Balance at Balance received through acquisition Charged (Credit) to Charged (credit) to Settlements & write-offs Balance at end Fiscal year ended December 30, 2017 Allowance for deferred taxes 260,687 — (50,960 ) (36 ) — 209,691 Allowance for doubtful accounts 9,299 — 3 38 31 9,371 Allowance for warranty expense 352 — 100 — (197 ) 255 $ 270,338 $ — $ (50,857 ) $ 2 $ (166 ) $ 219,317 Fiscal year ended December 31, 2016 Allowance for deferred taxes $ 252,578 $ — $ 7,450 $ 659 $ — $ 260,687 Allowance for doubtful accounts 621 — 7,362 2,284 (968 ) 9,299 Allowance for warranty expense 370 — 216 — (234 ) 352 $ 253,569 $ — $ 15,028 $ 2,943 $ (1,202 ) $ 270,338 Fiscal year ended January 2, 2016 Allowance for deferred taxes $ 141,215 $ 52,481 $ 58,658 $ 224 $ — $ 252,578 Allowance for doubtful accounts 875 — (438 ) 189 (5 ) 621 Allowance for warranty expense 81 136 153 — — 370 $ 142,171 $ 52,617 $ 58,373 $ 413 $ (5 ) $ 253,569 |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information Segment Information As of December 30, 2017 , we 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 prior to the sale of Qterics in April 2016. Geographic Information Our revenue by major geographic area, based on ship-to location, is presented in the following table: Year Ended (In thousands) December 30, 2017 December 31, 2016 January 2, 2016 United States: $ 48,315 13% $ 51,752 12% $ 33,677 8% China* 193,590 50 186,865 44 165,582 41 Europe 44,547 12 59,835 14 55,596 14 Japan 42,286 11 49,080 12 44,067 11 Taiwan 14,846 4 31,322 7 31,181 8 Other Asia* 26,916 7 37,826 9 67,704 17 Other Americas 15,461 4 10,374 3 8,159 2 Total foreign revenue 337,646 87 375,302 88 372,289 92 Total revenue $ 385,961 100% $ 427,054 100% $ 405,966 100% * During 2017, we realigned our geographic categories to group Hong Kong with China rather than with Other Asia. Prior periods have been reclassified to match current period presentation. We assign revenue to geographies based on the customer ship-to address at the point where revenue is recognized. In the case of sell-in distributors and OEM customers, revenue is typically recognized, and geography is assigned, when products are shipped to our distributor or customer. In the case of sell-through distributors, revenue is recognized when resale occurs and geography is assigned based on the customer location on the resale reports provided by the distributor. Our Property and equipment, net by country at the end of each period was as follows: (In thousands) December 30, 2017 December 31, 2016 January 2, 2016 United States $ 30,338 $ 30,532 $ 25,615 China 4,632 10,617 14,998 Philippines 3,883 4,928 3,948 Taiwan 958 2,310 3,677 India — 215 1,470 Japan 313 637 1,211 Other 299 242 933 Total foreign property and equipment, net 10,085 18,949 26,237 Total property and equipment, net $ 40,423 $ 49,481 $ 51,852 Revenue by Distributors Our largest customers are often distributors and sales through distributors have historically made up a significant portion of our total revenue. Revenue attributable to resale of products by our primary distributors as a percentage of total revenue is presented in the following table: % of Total Revenue in Year Ended December 30, 2017 December 31, 2016 January 2, 2016 Arrow Electronics Inc. 24 % 24 % 20 % Weikeng Group 27 22 12 All others 15 15 13 All sell-through distributors 66 % 61 % 45 % Orders from our sell-through distributors are initially recorded at published list prices; however, for a majority of our sales, the final selling price is determined at the time of resale and in accordance with a distributor price agreement. 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. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) A summary of the Company's consolidated quarterly results of operations is as follows: 2017 2016 (In thousands, except per share data) Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Revenue $ 95,266 $ 91,971 $ 94,137 $ 104,587 $ 118,108 $ 113,225 $ 99,209 $ 96,512 Gross margin 51,216 53,322 51,209 60,832 63,480 67,424 58,426 57,104 Restructuring charges 2,483 3,071 1,576 66 951 317 2,568 5,431 Net loss $ (7,213 ) $ (43,052 ) $ (13,022 ) $ (7,275 ) $ (8,164 ) $ (12,414 ) $ (13,810 ) $ (19,711 ) Net loss per share - basic and diluted $ (0.06 ) $ (0.35 ) $ (0.11 ) $ (0.06 ) $ (0.07 ) $ (0.10 ) $ (0.12 ) $ (0.17 ) |
Nature of Operations and Sign32
Nature of Operations and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 30, 2017 | |
Accounting Policies [Abstract] | |
Fiscal Reporting Period | Fiscal Reporting Period We report based on a 52 or 53-week fiscal year ending on the Saturday closest to December 31. Our fiscal 2017, 2016, and 2015 were 52-week years that ended December 30, 2017 , December 31, 2016 , and January 2, 2016 respectively. Our fiscal 2018 will be a 52-week year and will end on December 29, 2018 . All references to quarterly or yearly financial results are references to the results for the relevant fiscal period. |
Principles of Consolidation and Presentation | Principles of Consolidation The accompanying Consolidated Financial Statements include the accounts of Lattice and its subsidiaries after the elimination of all intercompany balances and transactions |
Reclassifications | Reclassifications Certain amounts in prior fiscal years in the accompanying consolidated financial statements and notes thereto have been reclassified to conform to the presentation adopted in the current fiscal year. These reclassifications had no material effect on the results of operations or financial position for any period presented. We had previously treated an investment as an equity-method investment and reported equity in net loss of an unconsolidated affiliate separately, amounting to approximately $1.5 million and $0.5 million for the years ended December 31, 2016 and January 2, 2016, respectively. We have reclassified the prior year losses to Other (expense) income, net on our Consolidated Statements of Income to be consistent with the current year treatment of the investment as a cost-method investment. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts and classification of assets, such as marketable securities, accounts receivable, inventory, goodwill (including the assessment of reporting unit), intangible assets, current and deferred income taxes, accrued liabilities (including restructuring charges and bonus arrangements), deferred income and allowances on sales to sell-through distributors, disclosure of contingent assets and liabilities at the date of the financial statements, amounts used in acquisition valuations and purchase accounting, impairment assessments, and the reported amounts of product revenue, licensing and services revenue, and expenses during the fiscal periods presented. Actual results could differ from those estimates. |
Cash Equivalents and Marketable Securities | Cash Equivalents and Marketable Securities We consider all investments that are readily convertible into cash and that 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 Consolidated 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 our 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 .” 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 obligations, 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 have any Level 3 instruments during the periods presented. |
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, and we collect an annual Japanese consumption tax refund in yen. Gains or losses from foreign exchange rate fluctuations on balances denominated in foreign currencies are reflected in Other (expense) income, net . Realized gains or losses on foreign currency transactions were not significant for the periods presented. We translate accounts denominated in foreign currencies in accordance with ASC 830, “ Foreign Currency Matters ,” using the current rate method under which asset and liability accounts are translated at the current rate, while stockholders' equity accounts are translated at the appropriate historical rates, and revenue and expense accounts are translated at average monthly exchange rates. Translation adjustments related to the consolidation of foreign subsidiary financial statements are reflected in Accumulated other comprehensive loss in Stockholders' equity (See our Consolidated Statements of Stockholders' Equity ). |
Derivative Financial Instruments | Derivative Financial Instruments We mitigate foreign currency exchange rate risk by entering into foreign currency forward exchange contracts, details of which are presented in the following table: December 30, 2017 December 31, 2016 Total cost of contracts for Japanese yen (in thousands) $ 2,204 $ 2,323 Number of contracts 2 2 Settlement month June 2018 June 2017 Although these hedges mitigate our foreign currency exchange rate exposure from an economic perspective, they were not designated as "effective" hedges under U.S. GAAP and as such are adjusted to fair value through Other (expense) income, net , with gains of approximately $0.1 million and approximately $0.2 million , respectively, for the years ended December 30, 2017 and December 31, 2016 . We do not hold or issue derivative financial instruments for trading or speculative purposes. |
Concentration Risk | Concentration Risk Potential exposure to concentration risk may impact revenue, trade receivables, marketable securities, and supply of wafers for our new products. Customer concentration risk may impact revenue. The percentage of total revenue attributable to our top five end customers and largest end customer is presented in the following table: Year Ended December 30, December 31, January 2, Revenue attributable to top five end customers 26 % 27 % 32 % Revenue attributable to largest end customer 7.3 % 9.9 % 9.3 % No end customer 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 sell-through distributors as a percentage of total revenue is presented in the following table: Year Ended December 30, December 31, January 2, Revenue attributable to sell-through distributors 66 % 61 % 45 % Our largest distributor groups also account for a substantial portion of our trade receivables. At December 30, 2017 , one distributor group accounted for 54% of gross trade receivables. At December 31, 2016 , two distributor groups accounted for 38% and 24% , respectively, of gross trade receivables. No other distributor group or end customer 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 $9.4 million and $9.3 million at December 30, 2017 and December 31, 2016 , respectively. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on assessment of known troubled accounts, analysis of the aging of our accounts receivable, historical experience, management judgment, and other currently available evidence. We write off accounts receivable against the allowance when we determine a balance is uncollectible and no longer actively pursue collection of the receivable. The amounts of accounts receivable written off were insignificant for all periods presented. Bad debt expense was negligible for fiscal 2017. During fiscal 2016, we recorded a full allowance on our accounts receivable, net of deferred revenue, from a bankrupt distributor group resulting in an increase in allowance for doubtful accounts of $9.0 million and bad debt expense of $7.5 million in that year. 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; however, certain of our products are sourced from a single foundry and changing from one foundry to another can have a significant cost. |
Revenue Recognition and Deferred Income | Revenue Recognition and Deferred Income The following describes our revenue recognition policy during fiscal 2017. In fiscal 2018, we will adopt ASU 2014-09, Revenue from Contracts with Customers (Topic 606). S ee "New Accounting Pronouncements" later in this Note 1 for a discussion of the impact of adoption on our revenue recognition. Product Revenue We sell our products though several channels: 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 product revenue are reflected in Net loss in our Consolidated Statements of Operations, and Accounts receivable, net is adjusted to reflect the final selling price. 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 and/or royalties 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 to us by customers. 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 Founders of the HDMI consortium. The contractual allocation formula is subject to periodic adjustment, generally every three years. The most recent agreement expired on December 31, 2016 and a new agreement has not yet been entered into covering the period beginning January 1, 2017. As a result, the HDMI agent is unable to distribute the majority of the royalties collected to the Founders and, given that the fixed and determinable revenue recognition criteria has not been met, we are unable to recognize all of the HDMI royalty revenue for the fiscal year ended December 30, 2017. Our estimate of unbilled receivables from the HDMI agent that are not reflected in our financial statements at December 30, 2017 are in the $5 million to $10 million range. We acted as the agent of the HDMI consortium until December 31, 2016. From time to time, as the agent, we performed audits on royalty reporting customers to ensure compliance. As a result of those compliance efforts, we entered into settlement agreements for the payment of unreported royalties. The contractual terms of those agreements provided for upfront payment of unreported royalties or payment over a period of time, generally not to exceed one year. Revenue from those arrangements was recognized when the agreement was executed by both parties, as long as price was fixed and determinable and collection was reasonably assured. |
Inventories and Cost of Product Revenue | Inventories and Cost of Product Revenue Inventories are recorded at the lower of average cost determined on a first-in-first-out basis or market. We establish provisions for inventory if it is obsolete or we hold quantities which are in excess of projected customer demand. The creation of such provisions results in a write-down of inventory to net realizable value and a charge to Cost of product revenue. Shipping and handling costs are included in Cost of product revenue in our Consolidated Statements of Operations. |
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 and building space. Leasehold improvements are amortized over the shorter of the non-cancelable lease term or the estimated useful life of the assets. 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. |
Variable Interest Entities | We have an interest in an entity that is a Variable Interest Entity ("VIE"). If we are the primary beneficiary of a VIE, we are required to consolidate it. To determine if we are the primary beneficiary, we evaluate whether we have the power to direct the activities that most significantly impact the VIE's economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our evaluation includes identification of significant activities and an assessment of our ability to direct those activities based on governance provisions and arrangements to provide or receive product and process technology, product supply, operations services, equity funding, financing, and other applicable agreements and circumstances. Our assessments of whether we are the primary beneficiary of our VIE requires significant assumptions and judgments. We have concluded that we are not the primary beneficiary of this VIE as we do not have the power to direct the activities that most significantly impact the VIE's economic performance. |
Equity Investments in Privately Held Companies | Equity investments in privately held companies that we are not required to consolidate are accounted for under the cost method, as assessed under ASC 325-20, " Cost Method Investments ." These investments are reviewed on a quarterly basis to determine if their values have been impaired and adjustments are recorded as necessary. We assess the potential impairment of these investments by applying a fair value analysis using a revenue multiple approach. Declines in value that are judged to be other-than-temporary are reported in Other (expense) income, net in the accompanying Consolidated Statements of Operations with a commensurate decrease in the carrying value of the investment (see Note 10). Upon disposition of these investments, the specific identification method is used to determine the cost basis in computing realized gains or losses. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, including amortizable intangible assets, are carried on our financial statements based on their cost less accumulated depreciation or amortization. We monitor the carrying value of our long-lived assets for potential impairment and test the recoverability of such assets annually during the fourth quarter and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. These events or changes in circumstances, including management decisions pertaining to such assets, are referred to as impairment indicators. If an impairment indicator occurs, we perform a test of recoverability by comparing the carrying value of the asset group to its undiscounted expected future cash flows. If the carrying values are in excess of undiscounted expected future cash flows, we measure any impairment by comparing the fair value of the asset group to its carrying value. Fair value is generally determined by considering (i) internally developed discounted projected cash flow analysis of the asset group; (ii) actual third-party valuations; and/or (iii) information available regarding the current market for similar asset groups. If the fair value of the asset group is determined to be less than the carrying amount of the asset group, an impairment in the amount of the difference is recorded in the period that the impairment indicator occurs and is included in our Consolidated Statements of Operations. Estimating future cash flows requires significant judgment and projections may vary from the cash flows eventually realized, which could impact our ability to accurately assess whether an asset has been impaired. The results of our assessments are detailed in Note 9. |
Valuation of Goodwill | Valuation of Goodwill Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. We review goodwill for impairment annually during the fourth quarter and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. When evaluating whether goodwill is impaired, we make a qualitative assessment to determine if it is more likely than not that the reporting unit's fair value is less than the carrying amount. If the qualitative assessment determines that it is more likely than not that the fair value is less than the carrying amount, the fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and we must measure the impairment loss. The impairment loss, if any, is recognized for any excess of the carrying amount of the reporting unit's goodwill over the implied fair value of the goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. If the fair value of the reporting unit exceeds its carrying value, no further impairment analysis is needed. For purposes of testing goodwill for impairment, we currently operate as a single reporting unit: the core Lattice ("Core") business, which includes intellectual property and semiconductor devices. In fiscal 2015 only, we separately tested goodwill for impairment in Qterics, a discrete software-as-a-service business unit that was an immaterial operating segment in the Lattice legal entity structure prior to its sale to an unrelated third party in April 2016. Although these two operating units constituted two reportable segments in fiscal 2015, we combined Qterics with our Core business and reported them together as one reportable segment due to the immaterial nature of the Qterics unit. The results of our assessments are detailed in Note 9. |
Leases | Leases We lease office space and classify our leases as either operating or capital lease arrangements in accordance with the criteria of ASC 840, “ Leases .” Certain of our office space operating leases contain provisions under which monthly rent escalates over time and certain leases may also contain provisions for reimbursement of a specified amount of leasehold improvements. When lease agreements contain escalating rent clauses, we recognize expense on a straight-line basis over the term of the lease. When lease agreements provide allowances for leasehold improvements, we capitalize the leasehold improvement assets and amortize them on a straight-line basis over the lesser of the lease term or the estimated useful life of the asset, and reduce rent expense on a straight-line basis over the term of the lease by the amount of the asset capitalized. |
Restructuring Charges | Restructuring Charges Expenses associated with exit or disposal activities are recognized when incurred under ASC 420, “ Exit or Disposal Cost Obligations ,” for everything but severance. Because the Company has a history of paying severance benefits, the cost of severance benefits associated with a restructuring plan is recorded when such costs are probable and the amount can be reasonably estimated in accordance with ASC 712, “ Compensation - Nonretirement Postemployment Benefits .” When leased facilities are vacated, an amount equal to the total future lease obligations from the date of vacating the premises through the expiration of the lease, net of any future sublease income, is recorded as a part of restructuring charges. |
Research and Development | Research and Development Research and development expenses include costs for compensation and benefits, development masks, engineering wafers, depreciation, licenses, and outside engineering services. These expenditures are for the design of new products, intellectual property cores, processes, packaging, and software to support new products. Research and development costs are expensed as incurred. |
Accounting for Income Taxes | Accounting for Income Taxes Our provision for income tax is comprised of our current tax liability and changes in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements using enacted tax rates and laws that will be in effect when the difference is expected to reverse. Valuation allowances are provided to reduce deferred tax assets to an amount that in management’s judgment is more-likely-than-not to be recoverable against future taxable income. U.S. tax reform required a deemed repatriation of foreign earnings as of December 30, 2017 and no future U.S. taxes will be due on these earnings because of enactment of a 100% dividends received deduction. Foreign earnings may be subject to withholding taxes if they are distributed and repatriated to Lattice in the United States. Our income tax calculations are based on application of the respective U.S. federal, state or foreign tax law. Our tax filings, however, are subject to audit by the relevant tax authorities. Accordingly, we recognize tax liabilities based upon our estimate of whether, and the extent to which, additional taxes will be due when such estimates are more-likely-than-not to be sustained. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. To the extent the final tax liabilities are different than the amounts originally accrued, the increases or decreases as well as any interest or penalties are recorded as income tax expense or benefit in the Consolidated Statements of Operations. In assessing the ability to realize deferred tax assets, we evaluate both positive and negative evidence that may exist and consider whether it is more-likely-than-not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Any adjustment to the net deferred tax asset valuation allowance is recorded in the Consolidated Statements of Operations for the period that the adjustment is determined to be required. |
Stock-Based Compensation | Stock-Based Compensation We use the Black-Scholes option pricing model to estimate the fair value of substantially all share-based awards consistent with the provisions of ASC 718, “ Compensation - Stock Compensation .” Option pricing models, including the Black-Scholes model, require the use of input assumptions, including expected volatility, expected term, expected dividend rate, and expected risk-free rate of return. The assumptions for expected volatility and expected term most significantly affect the grant date fair value. We have also used a lattice-based option-pricing model to determine and fix the fair value of stock options with a market condition granted to certain executives. This valuation model incorporates a Monte-Carlo simulation, and considered the likelihood that we would achieve the market condition. The options have a two year vesting and vest between 0% and 200% of the target amount, based on the Company's relative Total Shareholder Return ("TSR") when compared to the TSR of a component of companies of the PHLX Semiconductor Sector Index over a two year period. TSR is a measure of stock price appreciation plus dividends paid, if any, in the performance period. |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Standards 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. Our adoption of this accounting standard update in the first quarter of fiscal 2017 did not have a material impact on our consolidated financial statements. 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. Our adoption of this accounting standard update in the first quarter of fiscal 2017 did not have a material impact on our consolidated financial statements. 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 early adopted this accounting standard in the first quarter of fiscal 2017 and recorded a nominal amount to accumulated deficit based on the guidance, as detailed in our Consolidated Statements of Stockholders' Equity . Recently Issued Accounting Standards In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) , 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. The new standard allows for two transition methods - (i) a full retrospective method applied to each prior reporting period presented, or (ii) a modified retrospective method applied with the cumulative effect of adoption recognized on December 31, 2017, the first day of our fiscal 2018. We will adopt this guidance on December 31, 2017 using the modified retrospective transition method, which will result in an adjustment to accumulated deficit for the cumulative effect of applying this guidance to contracts in process as of the adoption date. Under this approach, we will not restate the prior financial statements presented. This guidance requires us to provide additional disclosures of the amount by which each financial statement line item is affected in the current reporting period during 2018 as compared to the guidance that was in effect before the change, and an explanation of the reasons for significant changes. Based on our current assessment of the impacts of the standard to revenue, we believe the most significant impact of the new standard will be to accelerate the timing of revenue recognition on product shipments to our sell-through distributors. Assuming all other revenue recognition criteria have been met, the new guidance would require us to recognize revenue and costs relating to such sales upon shipment to the distributor - subject to reductions for estimated reserves for price adjustments and returns - rather than upon the ultimate sale by the distributor to its end customer, as is our current practice. The impact of this change will depend primarily on the level of inventory held by sell-through distributors at the beginning and end of each period. To the extent these inventory levels fluctuate significantly, revenue under the new standard could be materially different than that under the current standard. Revenue to our sell-through distributors accounted for approximately 66% and 61% of our total revenue, respectively, during the years ended December 30, 2017 and December 31, 2016. We also anticipate that the new standard will require us to recognize certain licensing revenues which are not recognizable under current GAAP due to the fixed and determinable revenue recognition criteria not being met. We anticipate that the cumulative adjustment resulting from this recognition will be a reduction to 2018 opening accumulated deficit in the $20 million to $30 million range, and we don’t anticipate a material change relating to capitalization of commission expenses. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , to mainly change the accounting for investments in equity securities and financial liabilities carried at fair value as well as to modify the presentation and disclosure requirements for financial instruments. The ASU is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. Adoption of the ASU is retrospective with a cumulative adjustment to retained earnings or accumulated deficit as of the adoption date. We do not expect that the adoption of ASU 2016-01 will have a material effect on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires the recognition of assets and liabilities arising from lease transactions on the balance sheet and will also require significant additional disclosures about the amount, timing, and uncertainty of cash flows from leases. Substantially all leases, including current operating leases, will be recognized by lessees on their balance sheet as a lease asset for its right to use the underlying asset and a lease liability for the corresponding lease obligation. The new guidance requires a modified prospective transition approach to recognize and measure leases at the beginning of the earliest period presented. 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 have commenced our implementation efforts, which have focused on considerations for external consultation and development of a project plan. We are currently evaluating the impact of ASU 2016-02 on our consolidated financial statements and related disclosures, including the increase in the assets and liabilities on our balance sheet, and the impact on our current lease portfolio from both a lessor and lessee perspective. To facilitate this, we are utilizing a comprehensive approach to review our lease portfolio, as well as assessing system requirements and control implications. We believe that we have sufficient time and resources to complete our implementation efforts no later than the first quarter of fiscal 2019. See Note 13 - Lease Obligations for our future minimum lease commitments under operating leases. 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 do not expect that the adoption of ASU 2016-15 will have a material effect on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business , which narrows the existing definition of a business and provides a framework for evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or a business. This update requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities (collectively, the set) is not a business. To be considered a business, the set would need to include an input and a substantive process that together significantly contribute to the ability to create outputs. The standard also narrows the definition of outputs. The definition of a business affects areas of accounting such as acquisitions, disposals and goodwill. Under the new guidance, fewer acquired sets are expected to be considered businesses. For public business entities, this guidance is effective for interim and annual periods beginning after December 15, 2017. The impact of ASU 2017-01 will depend upon the nature of future acquisitions or dispositions that we may make. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which simplifies the subsequent measurement of goodwill by eliminating step two from the goodwill impairment test. Under the new guidance, an entity will recognize an impairment charge for the amount by which the carrying value exceeds the fair value. This standard is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017 and requires a prospective transition method. We will early adopt this accounting standard effective fiscal 2018 on a prospective basis. We do not expect the standard to have an impact on our consolidated financial statements. We expect the adoption of this update to simplify our annual goodwill impairment testing process, by eliminating the need to estimate the implied fair value of a reporting unit’s goodwill, if its respective carrying value exceeds fair value. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting , which provides clarity on which changes to the terms or conditions of share-based payment awards require entities to apply the modification accounting provisions required in Topic 718. This standard is effective for all entities for annual reporting periods beginning after December 15, 2017, with early adoption permitted, including adoption in any interim period for which financial statements have not yet been issued. We do not expect that the adoption of ASU 2017-09 will have a material effect on our consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and simplifies the application of the hedge accounting guidance. This standard is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. We are currently evaluating the impact of ASU 2017-12 on our consolidated financial statements and related disclosures. |
Nature of Operations and Sign33
Nature of Operations and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Derivative Instruments | We mitigate foreign currency exchange rate risk by entering into foreign currency forward exchange contracts, details of which are presented in the following table: December 30, 2017 December 31, 2016 Total cost of contracts for Japanese yen (in thousands) $ 2,204 $ 2,323 Number of contracts 2 2 Settlement month June 2018 June 2017 |
Schedules of Revenue Concentration of Risk | The percentage of total revenue attributable to our top five end customers and largest end customer is presented in the following table: Year Ended December 30, December 31, January 2, Revenue attributable to top five end customers 26 % 27 % 32 % Revenue attributable to largest end customer 7.3 % 9.9 % 9.3 % Sales through distributors have historically accounted for a significant portion of our total revenue. Revenue attributable to resale of products by sell-through distributors as a percentage of total revenue is presented in the following table: Year Ended December 30, December 31, January 2, Revenue attributable to sell-through distributors 66 % 61 % 45 % |
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) December 30, 2017 December 31, 2016 Inventory valued at published list price and held by sell-through distributors with right of return $ 74,788 $ 86,218 Allowance for distributor advances (44,990 ) (37,090 ) Deferred cost of sales related to inventory held by sell-through distributors (12,548 ) (16,871 ) Total Deferred income and allowances on sales to sell-through distributors $ 17,250 $ 32,257 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation | A summary of basic and diluted net loss per share is presented below: Year Ended (in thousands, except per share data) December 30, December 31, January 2, Net loss $ (70,562 ) $ (54,099 ) $ (159,233 ) Shares used in basic and diluted net loss per share 122,677 119,994 117,387 Basic and diluted net loss per share $ (0.58 ) $ (0.45 ) $ (1.36 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The computation of diluted net loss per share excludes the effects of stock options, RSUs, and ESPP shares that are antidilutive, aggregating approximately the following number of shares: Year Ended (in thousands) December 30, December 31, January 2, Stock options, RSUs, and ESPP shares excluded as they are antidilutive 6,622 8,978 9,243 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Composition of Marketable Securities | The following table summarizes the composition of our Short-term marketable securities at fair value: (In thousands) December 30, 2017 December 31, 2016 Short-term marketable securities: Corporate and government bonds and notes $ 4,982 $ 10,230 Certificates of deposit — 78 Total marketable securities $ 4,982 $ 10,308 |
Fair Value of Financial Instr36
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Instruments | Fair value measurements as of Fair value measurements as of December 30, 2017 December 31, 2016 (In thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Short-term marketable securities $ 4,982 $ 4,982 $ — $ — $ 10,308 $ 10,230 $ 78 $ — Foreign currency forward exchange contracts, net 77 — 77 — 184 — 184 — Total fair value of financial instruments $ 5,059 $ 4,982 $ 77 $ — $ 10,492 $ 10,230 $ 262 $ — |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | (In thousands) December 30, 2017 December 31, 2016 Work in progress $ 49,642 $ 50,688 Finished goods 30,261 28,480 Total inventories $ 79,903 $ 79,168 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | (In thousands) December 30, 2017 December 31, 2016 Buildings $ — $ 3,554 Computer and test equipment 155,492 162,388 Office furniture and equipment 2,914 3,460 Leasehold and building improvements 13,277 14,865 171,683 184,267 Accumulated depreciation and amortization (131,260 ) (134,786 ) $ 40,423 $ 49,481 |
Sales of Assets and Business 39
Sales of Assets and Business Units, Business Combinations, and Goodwill (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Sales of Assets and Business Units, Business Combinations and Goodwill [Abstract] | |
Schedule of Goodwill | Changes to the Goodwill balances on the Consolidated Balance Sheets are summarized in the following table: (In thousands) December 30, 2017 December 31, 2016 Beginning balance $ 269,758 $ 267,549 Additions — 2,209 Disposals (2,244 ) — Ending balance $ 267,514 $ 269,758 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following tables summarize the details of our Intangible assets, net as of December 30, 2017 and December 31, 2016 : December 30, 2017 (In thousands) Weighted Average Amortization Period (in years) Gross Impairment Accumulated Amortization Intangible assets, net Developed technology 4.7 $ 158,700 $ (32,431 ) $ (81,847 ) $ 44,422 Customer relationships 5.7 22,934 — (16,696 ) 6,238 Licensed technology 3.5 2,392 — (1,744 ) 648 Total identified intangible assets $ 184,026 $ (32,431 ) $ (100,287 ) $ 51,308 December 31, 2016 (In thousands) Weighted Average Amortization Period (in years) Gross Impairment Accumulated Amortization Intangible assets, net Developed technology 4.7 $ 141,359 $ — $ (55,493 ) $ 85,866 Customer relationships 6.1 30,800 (7,866 ) (13,694 ) 9,240 Licensed technology 3.3 2,127 — (1,201 ) 926 Patents 5 769 — (279 ) 490 Total identified finite-lived intangible assets 175,055 (7,866 ) (70,667 ) 96,522 In-process research and development indefinite 22,341 — — 22,341 Total identified intangible assets $ 197,396 $ (7,866 ) $ (70,667 ) $ 118,863 |
Finite-lived Intangible Assets Amortization Expense | We recorded amortization expense related to intangible assets on the Consolidated Statements of Operations as presented in the following table: Year Ended (In thousands) December 30, 2017 December 31, 2016 January 2, 2016 Research and development $ 569 $ 745 $ 731 Amortization of acquired intangible assets 31,340 33,575 29,580 $ 31,909 $ 34,320 $ 30,311 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The annual expected amortization expense of acquired intangible assets with finite lives is as follows: (In thousands) Amount 2018 $ 19,419 2019 16,619 2020 7,504 2021 5,148 2022 2,352 Thereafter 266 Total $ 51,308 |
Cost Method Investment and Co41
Cost Method Investment and Collaborative Arrangement (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Investments, All Other Investments [Abstract] | |
Schedule of Impairment Adjustments Against Cost Method Investments | The total impairment adjustments against this investment that we have recognized through Other (expense) income, net in the Consolidated Statements of Operations are presented in the following table: Year Ended (In thousands) December 30, 2017 December 31, 2016 January 2, 2016 Impairment of cost-basis investment $ (1,761 ) $ (1,459 ) $ (492 ) |
Schedule of Cost Method Investments | The net balance of our investment included in Other long-term assets in the Consolidated Balance Sheets is detailed in the following table: (In thousands) Total Balance at January 2, 2016 $ 4,508 Investment made during fiscal year 1,000 Impairment of cost-basis investment (1,459 ) Balance at December 31, 2016 4,049 Impairment of cost-basis investment (1,761 ) Balance at December 30, 2017 $ 2,288 |
Schedule Of Periodic Payments For Prepaid Royalties | The schedule of periodic payments for prepaid royalties is as follows: Amount of each Fiscal Year Frequency payment (In thousands) 2017 In the fourth calendar quarter $ 625 2018 At the end of each calendar quarter $ 875 2019 At the end of each calendar quarter $ 1,250 |
Accounts Payable and Accrued 42
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Included in Accounts payable and accrued expenses in the Consolidated Balance Sheets are the following balances: (In thousands) December 30, 2017 December 31, 2016 Trade accounts payable $ 35,350 $ 37,800 Liability for non-cancelable contracts 4,531 5,744 Payable to members of the MHL and HDMI consortia* 87 9,698 Other accrued expenses 14,437 27,691 Total accounts payable and accrued expenses $ 54,405 $ 80,933 * As an agent of the MHL consortium, we administer royalty reporting and distributions to the members of this consortium. This excludes amounts payable to us, and is payable quarterly based on collections from MHL customers. Our role as the agent of the HDMI consortium terminated on January 1, 2017 and, therefore, the balance as of December 30, 2017 is due to MHL consortium members only. |
Lease Obligations (Tables)
Lease Obligations (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Leases [Abstract] | |
Operating Leases of Lessee Disclosure | Future minimum lease commitments at December 30, 2017 were as follows: Fiscal year Amount (In thousands) 2018 $ 6,310 2019 4,784 2020 4,860 2021 4,654 2022 4,694 Thereafter 14,259 $ 39,561 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The domestic and foreign components of loss before income taxes were as follows: Year Ended (In thousands) December 30, 2017 December 31, 2016 January 2, 2016 Domestic $ (17,341 ) $ (33,962 ) $ (93,229 ) Foreign (52,372 ) (10,220 ) (33,464 ) Loss before taxes $ (69,713 ) $ (44,182 ) $ (126,693 ) |
Schedule of Components of Income Tax Expense (Benefit) | The components of the income tax expense are as follows: Year Ended (In thousands) December 30, 2017 December 31, 2016 January 2, 2016 Current: Federal $ 508 $ 1,896 $ 968 State 30 13 80 Foreign 304 7,918 10,634 842 9,827 11,682 Deferred: Federal — — 18,713 State — — 2,318 Foreign 7 90 (173 ) 7 90 20,858 Income tax expense $ 849 $ 9,917 $ 32,540 |
Schedule of Effective Income Tax Rate Reconciliation | Income tax expense differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pretax income as a result of the following differences: Year Ended December 30, 2017 December 31, 2016 January 2, 2016 % % % Statutory federal rate (35) (35) (35) Adjustments for tax effects of: State taxes, net (7) 7 (6) Research and development credits (1) (2) (2) Stock compensation 3 3 1 Foreign rate differential 28 15 12 Foreign dividends 1 — 5 Foreign withholding taxes — 9 3 Other permanent — 3 4 Goodwill impairment — — 4 Valuation allowance (73) 17 46 Change in uncertain tax benefit accrual 1 5 (8) Stock compensation adoption (8) — — Tax rate change 93 — 3 Other (1) 1 (1) Effective income tax rate 1 23 26 |
Schedule of Deferred Tax Assets and Liabilities | The components of our net deferred tax assets are as follows: (In thousands) December 30, 2017 December 31, 2016 Deferred tax assets: Accrued expenses and reserves $ 3,096 $ 5,143 Inventory 2 290 Deferred Revenue 228 426 Stock-based and deferred compensation 4,018 7,269 Intangible assets 19,576 20,063 Fixed assets 216 678 Net operating loss carry forwards 86,410 137,521 Tax credit carry forwards 90,530 89,174 Capital loss carry forwards 3,926 962 Other 2,323 2,973 210,325 264,499 Less: valuation allowance (209,691 ) (260,687 ) Net deferred tax assets 634 3,812 Deferred tax liabilities: Fixed Assets 559 — Other 16 3,746 Total deferred tax liabilities 575 3,746 Net deferred tax assets $ 59 $ 66 |
Schedule of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns Roll Forward | The following table summarizes the changes to unrecognized tax benefits for fiscal years 2017, 2016 and 2015: (In thousands) Amount Balance at January 3, 2015 $ 18,673 Additions based on tax positions related to the current year 4,381 Additions based on tax positions of prior years — Additions due to acquisition 41,083 Reduction for tax positions of prior years (14,958 ) Settlements — Reduction as a result of lapse of applicable statute of limitations (972 ) Balance at January 2, 2016 48,207 Additions based on tax positions related to the current year 2,573 Additions based on tax positions of prior years 530 Additions due to acquisition — Reduction for tax positions of prior years (1,824 ) Settlements — Reduction as a result of lapse of applicable statute of limitations (1,863 ) Balance at December 31, 2016 47,623 Additions based on tax positions related to the current year 471 Additions based on tax positions of prior years 11 Additions due to acquisition — Reductions for tax positions of prior years (1,226 ) Settlements — Reduction as a result of lapse of applicable statute of limitations (2,047 ) Balance at December 30, 2017 $ 44,832 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table displays the activity related to the restructuring plans described above: (In thousands) Severance & related * Lease termination Software Contracts & Engineering Tools** Other Total Balance at January 3, 2015 $ — $ 43 $ — $ 139 $ 182 Restructuring charges 12,861 2,667 3,040 671 19,239 Costs paid or otherwise settled (9,165 ) (1,705 ) (2,663 ) (810 ) (14,343 ) Balance at January 2, 2016 $ 3,696 $ 1,005 $ 377 $ — $ 5,078 Restructuring charges 2,883 2,993 1,903 1,488 9,267 Costs paid or otherwise settled (5,778 ) (2,962 ) (2,255 ) (1,476 ) (12,471 ) Balance at December 31, 2016 $ 801 $ 1,036 $ 25 $ 12 $ 1,874 Restructuring charges 2,484 811 3,066 835 7,196 Costs paid or otherwise settled (2,093 ) (977 ) (2,731 ) (822 ) (6,623 ) Balance at December 30, 2017 $ 1,192 $ 870 $ 360 $ 25 $ 2,447 * Includes employee relocation costs and accelerated stock compensation ** Includes cancellation of contracts, asset impairments, and accelerated depreciation on certain enterprise resource planning and customer relationship management systems |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
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) December 30, 2017 December 31, 2016 Principal amount $ 306,791 $ 342,221 Unamortized original issue discount and debt issuance costs (5,616 ) (7,599 ) Less: Current portion of long-term debt (1,508 ) (33,767 ) Long-term debt $ 299,667 $ 300,855 |
Interest Income and Interest Expense Disclosure | Interest expense related to the Term Loan was included in Interest expense on the Consolidated Statements of Operations as follows: Year Ended (in thousands) December 30, 2017 December 31, 2016 January 2, 2016 Contractual interest $ 16,503 $ 18,518 $ 15,225 Amortization of debt issuance costs and discount 1,982 1,350 2,835 Total Interest expense related to the Term Loan $ 18,485 $ 19,868 $ 18,060 |
Future principal payments | As of December 30, 2017 , expected future principal payments on the Term Loan were as follows: Fiscal year (in thousands) 2018 $ 3,500 2019 26,235 2020 59,187 2021 217,869 $ 306,791 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
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 is presented in the following table: Year Ended (In thousands) December 30, 2017 December 31, 2016 January 2, 2016 Cost of products sold $ 795 $ 888 $ 1,416 Research and development 5,245 7,928 9,141 Selling, general, and administrative 6,503 7,397 6,793 Acquisition related charges — — 4,293 Total stock-based compensation $ 12,543 $ 16,213 $ 21,643 |
Schedule of Share-based Payment Award, Stock Options and Employee Stock Purchase Plan, Valuation Assumptions | The following table summarizes the assumptions used in the valuation of stock option and ESPP compensation: Year Ended December 30, 2017 December 31, 2016 January 2, 2016 Employee and Director Stock Options Expected volatility 40.96% to 48.01% 44.2% to 50.8% 43.6% to 47.3% Risk-free interest rate 1.99% to 2.09% .94% to 2.06% 1.4% to 1.7% Expected term (years) 4.08 to 4.25 4.06 to 4.78 4.08 to 4.75 Dividend yield —% —% —% Employee Stock Purchase Plan * Weighted average expected volatility —% 57.9% 33.6% Weighted average risk-free interest rate —% 0.43% 0.12% Expected term N/A 6 months 6 months Dividend yield —% —% —% * ESPP suspended during fiscal 2017 only |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes the activity for our stock options with a market condition: (Shares in thousands) Unvested Vested Total Balance, December 31, 2016 597 — 597 Granted 475 — 475 Vested (92 ) 92 — Exercised — (9 ) (9 ) Canceled (273 ) — (273 ) Balance, December 30, 2017 707 83 790 The following table summarizes our stock option activity and related information for the year ended December 30, 2017 : (Shares and aggregate intrinsic value in thousands) Shares Weighted Weighted average Aggregate Balance, December 31, 2016 12,566 $ 5.70 Granted 3,732 5.73 Exercised (1,803 ) 5.07 Forfeited or expired (1,556 ) 6.00 Balance, December 30, 2017 12,939 $ 5.77 Vested and expected to vest at December 30, 2017 12,939 $ 5.77 4.47 $ 3,333 Exercisable, December 30, 2017 6,601 $ 5.81 2.87 $ 2,485 |
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes our RSU activity for the year ended December 30, 2017 : (Shares in thousands) Shares Weighted average grant date fair value Balance, December 31, 2016 3,247 $ 5.90 Granted 1,530 5.83 Exercised (1,478 ) 5.95 Forfeited or expired (533 ) 5.84 Balance, December 30, 2017 2,766 $ 5.85 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table summarizes the assumptions used in the valuation of stock options and RSUs with a market condition: Year Ended December 30, 2017 December 31, 2016 January 2, 2016 Executive stock options with a market condition Expected volatility 41% 46% 44% to 46% Risk-free interest rate 1.9% 1.1% 1.4% Expected term (years) 4.5 4.5 4.5 Dividend yield —% —% —% Executive RSUs with a market condition Expected volatility n/a n/a 36.9% Risk-free interest rate n/a n/a 0.6% Expected term (years) n/a n/a 2.0 Dividend yield n/a n/a —% |
Valuation and Qualifying Acco48
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | The following table displays the activity related to changes in our valuation and qualifying accounts: (In thousands) Balance at Balance received through acquisition Charged (Credit) to Charged (credit) to Settlements & write-offs Balance at end Fiscal year ended December 30, 2017 Allowance for deferred taxes 260,687 — (50,960 ) (36 ) — 209,691 Allowance for doubtful accounts 9,299 — 3 38 31 9,371 Allowance for warranty expense 352 — 100 — (197 ) 255 $ 270,338 $ — $ (50,857 ) $ 2 $ (166 ) $ 219,317 Fiscal year ended December 31, 2016 Allowance for deferred taxes $ 252,578 $ — $ 7,450 $ 659 $ — $ 260,687 Allowance for doubtful accounts 621 — 7,362 2,284 (968 ) 9,299 Allowance for warranty expense 370 — 216 — (234 ) 352 $ 253,569 $ — $ 15,028 $ 2,943 $ (1,202 ) $ 270,338 Fiscal year ended January 2, 2016 Allowance for deferred taxes $ 141,215 $ 52,481 $ 58,658 $ 224 $ — $ 252,578 Allowance for doubtful accounts 875 — (438 ) 189 (5 ) 621 Allowance for warranty expense 81 136 153 — — 370 $ 142,171 $ 52,617 $ 58,373 $ 413 $ (5 ) $ 253,569 |
Segment and Geographic Inform49
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Major Geographic Area | Our revenue by major geographic area, based on ship-to location, is presented in the following table: Year Ended (In thousands) December 30, 2017 December 31, 2016 January 2, 2016 United States: $ 48,315 13% $ 51,752 12% $ 33,677 8% China* 193,590 50 186,865 44 165,582 41 Europe 44,547 12 59,835 14 55,596 14 Japan 42,286 11 49,080 12 44,067 11 Taiwan 14,846 4 31,322 7 31,181 8 Other Asia* 26,916 7 37,826 9 67,704 17 Other Americas 15,461 4 10,374 3 8,159 2 Total foreign revenue 337,646 87 375,302 88 372,289 92 Total revenue $ 385,961 100% $ 427,054 100% $ 405,966 100% * During 2017, we realigned our geographic categories to group Hong Kong with China rather than with Other Asia. Prior periods have been reclassified to match current period presentation. |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | Our Property and equipment, net by country at the end of each period was as follows: (In thousands) December 30, 2017 December 31, 2016 January 2, 2016 United States $ 30,338 $ 30,532 $ 25,615 China 4,632 10,617 14,998 Philippines 3,883 4,928 3,948 Taiwan 958 2,310 3,677 India — 215 1,470 Japan 313 637 1,211 Other 299 242 933 Total foreign property and equipment, net 10,085 18,949 26,237 Total property and equipment, net $ 40,423 $ 49,481 $ 51,852 |
Schedule of Revenue by Major Customers by Reporting Segments | Revenue attributable to resale of products by our primary distributors as a percentage of total revenue is presented in the following table: % of Total Revenue in Year Ended December 30, 2017 December 31, 2016 January 2, 2016 Arrow Electronics Inc. 24 % 24 % 20 % Weikeng Group 27 22 12 All others 15 15 13 All sell-through distributors 66 % 61 % 45 % |
Quarterly Financial Data (Una50
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | A summary of the Company's consolidated quarterly results of operations is as follows: 2017 2016 (In thousands, except per share data) Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Revenue $ 95,266 $ 91,971 $ 94,137 $ 104,587 $ 118,108 $ 113,225 $ 99,209 $ 96,512 Gross margin 51,216 53,322 51,209 60,832 63,480 67,424 58,426 57,104 Restructuring charges 2,483 3,071 1,576 66 951 317 2,568 5,431 Net loss $ (7,213 ) $ (43,052 ) $ (13,022 ) $ (7,275 ) $ (8,164 ) $ (12,414 ) $ (13,810 ) $ (19,711 ) Net loss per share - basic and diluted $ (0.06 ) $ (0.35 ) $ (0.11 ) $ (0.06 ) $ (0.07 ) $ (0.10 ) $ (0.12 ) $ (0.17 ) |
Nature of Operations and Sign51
Nature of Operations and Significant Accounting Policies - Reclassifications (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Accounting Policies [Abstract] | ||
Equity in net loss of an unconsolidated affiliate | $ 1.5 | $ 0.5 |
Nature of Operations and Sign52
Nature of Operations and Significant Accounting Policies - Derivative Financial Instruments (Details) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017USD ($)Contract | Dec. 31, 2016USD ($)Contract | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | ||
Gain on foreign exchange contracts adjusted to fair value through earnings - less than | $ 100 | $ 200 |
Foreign exchange contracts | ||
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | ||
Total cost of contracts for Japanese yen | $ 2,204 | $ 2,323 |
Number of contracts | Contract | 2 | 2 |
Nature of Operations and Sign53
Nature of Operations and Significant Accounting Policies - Concentration Risk (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Risks and Uncertainties [Abstract] | |||
Concentration Risk | 66.00% | 61.00% | 45.00% |
Allowance for doubtful accounts | $ 9.4 | $ 9.3 | |
Increase in allowance for doubtful accounts | 9 | ||
Bad debt expense | $ 7.5 | ||
Revenue | Sell-Through Distributors Concentration Risk | |||
Risks and Uncertainties [Abstract] | |||
Concentration Risk | 66.00% | 61.00% | 45.00% |
Top Five Customers | Revenue | Customer Concentration Risk | |||
Risks and Uncertainties [Abstract] | |||
Concentration Risk | 26.00% | 27.00% | 32.00% |
Largest Customer | Revenue | Customer Concentration Risk | |||
Risks and Uncertainties [Abstract] | |||
Concentration Risk | 7.30% | 9.90% | 9.30% |
Largest Distributor Group | Trade receivables | Sell-Through Distributors Concentration Risk | |||
Risks and Uncertainties [Abstract] | |||
Concentration Risk | 54.00% | 38.00% | |
Second Largest Distributor Group | Trade receivables | Sell-Through Distributors Concentration Risk | |||
Risks and Uncertainties [Abstract] | |||
Concentration Risk | 24.00% |
Nature of Operations and Sign54
Nature of Operations and Significant Accounting Policies - Revenue Recognition and Deferred Income (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Deferred Revenue and Credits [Abstract] | ||
Inventory valued at published list price and held by sell-through distributors with right of return | $ 74,788 | $ 86,218 |
Allowance for distributor advances | (44,990) | (37,090) |
Deferred cost of sales related to inventory held by sell-through distributors | (12,548) | (16,871) |
Total Deferred income and allowances on sales to sell-through distributors | 17,250 | $ 32,257 |
Minimum | ||
Deferred Revenue Arrangement [Line Items] | ||
Unbilled receivables | 5,000 | |
Maximum | ||
Deferred Revenue Arrangement [Line Items] | ||
Unbilled receivables | $ 10,000 |
Nature of Operations and Sign55
Nature of Operations and Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Dec. 30, 2017 | |
Equipment and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Equipment and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Tools, Dies and Molds | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 1 year |
Tools, Dies and Molds | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Building | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
Nature of Operations and Sign56
Nature of Operations and Significant Accounting Policies - Valuation of Goodwill (Details) - segment | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Accounting Policies [Abstract] | |||
Number of operating segment | 1 | 2 | |
Number of reportable segment | 1 | 1 | 2 |
Nature of Operations and Sign57
Nature of Operations and Significant Accounting Policies - Stock-Based Compensation (Details) | 12 Months Ended |
Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Contractual terms of options granted | 2 years |
Award vesting comparison period | 2 years |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Contractual terms of options granted | 10 years |
Performance Shares | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting percentage | 0.00% |
Performance Shares | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting percentage | 200.00% |
Nature of Operations and Sign58
Nature of Operations and Significant Accounting Policies - New Accounting Pronouncements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Concentration Risk | 66.00% | 61.00% | 45.00% |
Accumulated deficit | $ (477,862) | $ (406,945) | |
Sell-Through Distributors Concentration Risk | Revenue | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Concentration Risk | 66.00% | 61.00% | 45.00% |
Minimum | Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accumulated deficit | $ 20,000 | ||
Maximum | Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accumulated deficit | $ 30,000 |
Net Loss per Share (Details)
Net Loss per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net loss | $ (7,213) | $ (43,052) | $ (13,022) | $ (7,275) | $ (8,164) | $ (12,414) | $ (13,810) | $ (19,711) | $ (70,562) | $ (54,099) | $ (159,233) |
Shares used in basic and diluted net loss per share (in shares) | 122,677 | 119,994 | 117,387 | ||||||||
Basic and diluted net loss per share (in dollars per share) | $ (0.06) | $ (0.35) | $ (0.11) | $ (0.06) | $ (0.07) | $ (0.10) | $ (0.12) | $ (0.17) | $ (0.58) | $ (0.45) | $ (1.36) |
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) | 6,622 | 8,978 | 9,243 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Term of maturities of investments considered short-term | 2 years | |
Total marketable securities | $ 4,982 | $ 10,308 |
Corporate and government bonds and notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total marketable securities | 4,982 | 10,230 |
Certificates of deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total marketable securities | $ 0 | $ 78 |
Fair Value of Financial Instr61
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Short-term marketable securities | $ 4,982 | $ 10,308 |
Level 1 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Short-term marketable securities | 4,982 | 10,230 |
Foreign currency forward exchange contracts, net | 0 | 0 |
Total fair value of financial instruments | 4,982 | 10,230 |
Unrealized loss | 100 | 200 |
Level 2 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Short-term marketable securities | 0 | 78 |
Foreign currency forward exchange contracts, net | 77 | 184 |
Total fair value of financial instruments | 77 | 262 |
Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Short-term marketable securities | 0 | 0 |
Foreign currency forward exchange contracts, net | 0 | 0 |
Total fair value of financial instruments | 0 | 0 |
Total | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Short-term marketable securities | 4,982 | 10,308 |
Foreign currency forward exchange contracts, net | 77 | 184 |
Total fair value of financial instruments | $ 5,059 | $ 10,492 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Work in progress | $ 49,642 | $ 50,688 |
Finished goods | 30,261 | 28,480 |
Total inventories | $ 79,903 | $ 79,168 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2017 | Nov. 30, 2014 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 171,683 | $ 184,267 | |||
Accumulated depreciation and amortization | (131,260) | (134,786) | |||
Property and equipment, net | 40,423 | 49,481 | $ 51,852 | ||
Depreciation expense | 16,300 | 18,400 | 18,100 | ||
Proceeds from sale of building | 7,895 | 0 | 0 | ||
Gain on sale of building | 4,624 | 0 | 0 | ||
Buildings | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 0 | 3,554 | |||
Buildings | Shanghai, China | |||||
Property, Plant and Equipment [Line Items] | |||||
Accumulated depreciation and amortization | $ (1,400) | ||||
Property and equipment, net | 3,600 | ||||
Proceeds from sale of building | 7,900 | ||||
Direct selling costs | 1,100 | ||||
Gain on sale of building | $ (4,600) | ||||
Computer and test equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 155,492 | 162,388 | |||
Office furniture and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 2,914 | 3,460 | |||
Leasehold and building improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 13,277 | $ 14,865 | |||
Land and Building | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 30,900 | ||||
Accumulated depreciation and amortization | (17,900) | ||||
Proceeds from sale of building | 14,600 | ||||
Gain on sale of building | $ 1,600 | ||||
Lease term | 8 years | ||||
Restructuring | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciation expense | $ 1,500 |
Sales of Assets and Business 64
Sales of Assets and Business Units, Business Combinations, and Goodwill (Details) - USD ($) | Sep. 30, 2017 | Mar. 10, 2015 | Sep. 30, 2017 | Apr. 30, 2016 | Jul. 01, 2017 | Apr. 02, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | Dec. 04, 2014 |
Sales of Assets and Business Units | ||||||||||
Note receivable resulting from sale of assets and business units | $ 3,050,000 | $ 0 | $ 0 | |||||||
Gain (loss) on sale of assets and business units | (1,496,000) | 2,646,000 | 0 | |||||||
Proceeds from sale of assets and business units, net of cash sold | 967,000 | 1,972,000 | 0 | |||||||
Goodwill [Abstract] | ||||||||||
Goodwill impairment | 0 | 0 | 12,700,000 | |||||||
Goodwill [Roll Forward] | ||||||||||
Beginning balance | $ 267,549,000 | 269,758,000 | 267,549,000 | |||||||
Additions | 0 | 2,209,000 | ||||||||
Disposals | (2,244,000) | 0 | ||||||||
Ending balance | $ 267,514,000 | $ 269,758,000 | $ 267,549,000 | |||||||
Silicon Image, Inc | ||||||||||
Business Combinations [Abstract] | ||||||||||
Interests acquired | 100.00% | 7.00% | ||||||||
Total purchase consideration | $ 588,500,000 | |||||||||
Goodwill [Abstract] | ||||||||||
Acquisition purchase price consideration adjustment, long-term liabilities related to uncertain tax position | 2,100,000 | |||||||||
Acquisition purchase price consideration tax-related adjustment | $ 100,000 | |||||||||
Hyderabad, India subsidiary and assets related to Simplay Labs testing and certification business | Disposed of by Sale | ||||||||||
Sales of Assets and Business Units | ||||||||||
Consideration of disposed group | $ 5,300,000 | $ 5,300,000 | ||||||||
Cash received from sale of business unit | 2,300,000 | |||||||||
Note receivable resulting from sale of assets and business units | 3,000,000 | 3,000,000 | ||||||||
Gain (loss) on sale of assets and business units | $ (1,800,000) | |||||||||
Goodwill [Roll Forward] | ||||||||||
Disposals | $ (2,200,000) | |||||||||
Hyderabad | Disposed of by Sale | ||||||||||
Sales of Assets and Business Units | ||||||||||
Ownership percentage | 100.00% | 100.00% | ||||||||
Qterics | Disposed of by Sale | ||||||||||
Sales of Assets and Business Units | ||||||||||
Gain (loss) on sale of assets and business units | $ 2,600,000 | |||||||||
Proceeds from sale of assets and business units, net of cash sold | $ 2,000,000 | $ 300,000 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Dec. 30, 2017 | Sep. 30, 2017 | Apr. 01, 2017 | Oct. 01, 2016 | Jan. 02, 2016 | Jul. 01, 2017 | Dec. 30, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||||||||
Impairment of intangible assets | $ 7,900 | $ 32,431 | $ 7,866 | |||||
Developed technology | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Impairment of intangible assets | 32,431 | 0 | ||||||
Customer relationships | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Impairment of intangible assets | 0 | 7,866 | ||||||
Patents | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Proceeds from sale of intangible assets | $ 18,000 | |||||||
Decrease of intangible assets | $ 3,500 | |||||||
Impairment of intangible assets | 0 | |||||||
Silicon Image, Inc | Developed technology | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Impairment of intangible assets | $ 36,200 | $ 32,400 | ||||||
Reduction to preliminary impairment charge | $ 3,800 | |||||||
Qterics | Disposal Group, Disposed of by Sale | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Impairment of intangible assets | $ 9,000 | |||||||
Qterics | Disposal Group, Disposed of by Sale | Developed technology | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Impairment of intangible assets | 3,900 | |||||||
Qterics | Disposal Group, Disposed of by Sale | Customer relationships | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Impairment of intangible assets | $ 5,100 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Oct. 01, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total identified finite-lived intangible assets, gross | $ 175,055 | ||
In-process research and development | 22,341 | ||
Total identified intangible assets, gross | $ 184,026 | 197,396 | |
Total identified finite-lived Intangible assets, net of amortization | 51,308 | 96,522 | |
Impairment | $ (7,900) | (32,431) | (7,866) |
Accumulated Amortization | (100,287) | (70,667) | |
Total identified intangible assets, net of amortization | $ 51,308 | $ 118,863 | |
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Period (in years) | 4 years 8 months 12 days | 4 years 8 months | |
Total identified finite-lived intangible assets, gross | $ 158,700 | $ 141,359 | |
Total identified finite-lived Intangible assets, net of amortization | 44,422 | 85,866 | |
Impairment | (32,431) | 0 | |
Accumulated Amortization | $ (81,847) | $ (55,493) | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Period (in years) | 5 years 8 months 11 days | 6 years 1 month | |
Total identified finite-lived intangible assets, gross | $ 22,934 | $ 30,800 | |
Total identified finite-lived Intangible assets, net of amortization | 6,238 | 9,240 | |
Impairment | 0 | (7,866) | |
Accumulated Amortization | $ (16,696) | $ (13,694) | |
Licensed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Period (in years) | 3 years 6 months | 3 years 4 months | |
Total identified finite-lived intangible assets, gross | $ 2,392 | $ 2,127 | |
Total identified finite-lived Intangible assets, net of amortization | 648 | 926 | |
Impairment | 0 | 0 | |
Accumulated Amortization | $ (1,744) | $ (1,201) | |
Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Period (in years) | 5 years | ||
Total identified finite-lived intangible assets, gross | $ 769 | ||
Total identified finite-lived Intangible assets, net of amortization | 490 | ||
Impairment | 0 | ||
Accumulated Amortization | $ (279) |
Intangible Assets - Amortizatio
Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of acquired intangible assets | $ 31,909 | $ 34,320 | $ 30,311 |
Research and development | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of acquired intangible assets | 569 | 745 | 731 |
Amortization of acquired intangible assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of acquired intangible assets | $ 31,340 | $ 33,575 | $ 29,580 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of annual expected amortization expense of acquired intangible assets (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,018 | $ 19,419 | |
2,019 | 16,619 | |
2,020 | 7,504 | |
2,021 | 5,148 | |
2,022 | 2,352 | |
Thereafter | 266 | |
Total | $ 51,308 | $ 96,522 |
Impairment of Goodwill and Ac69
Impairment of Goodwill and Acquired Intangible Assets (Details) | 3 Months Ended | 12 Months Ended | |||||
Dec. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Oct. 01, 2016USD ($) | Jan. 02, 2016USD ($) | Dec. 30, 2017USD ($)segment | Dec. 31, 2016USD ($)segment | Jan. 02, 2016USD ($)segment | |
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment of intangible assets | $ 7,900,000 | $ 32,431,000 | $ 7,866,000 | ||||
Goodwill impairment | $ 0 | $ 0 | $ 12,700,000 | ||||
Number of operating segment | segment | 1 | 2 | |||||
Number of reportable segment | segment | 1 | 1 | 2 | ||||
Impairment of goodwill and acquired intangible assets | $ 32,431,000 | $ 7,866,000 | $ 21,655,000 | ||||
Developed technology | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment of intangible assets | 32,431,000 | 0 | |||||
Customer relationships | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment of intangible assets | 0 | 7,866,000 | |||||
Silicon Image, Inc | Developed technology | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment of intangible assets | $ 36,200,000 | $ 32,400,000 | |||||
Reduction to preliminary impairment charge | $ 3,800,000 | ||||||
Qterics | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill impairment | 12,700,000 | ||||||
Impairment of goodwill and acquired intangible assets | $ 21,700,000 | ||||||
Percentage of impaired goodwill and intangible assets | 92.00% | ||||||
Core Segment | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment of goodwill and acquired intangible assets | $ 0 | ||||||
Disposal Group, Disposed of by Sale | Qterics | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment of intangible assets | $ 9,000,000 | ||||||
Disposal Group, Disposed of by Sale | Qterics | Developed technology | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment of intangible assets | $ 3,900,000 | ||||||
Disposal Group, Disposed of by Sale | Qterics | Customer relationships | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment of intangible assets | $ 5,100,000 | ||||||
Disposal Group, Disposed of by Sale | Hyderabad | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Ownership percentage | 100.00% | 100.00% |
Cost Method Investment and Co70
Cost Method Investment and Collaborative Arrangement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | 36 Months Ended | |||||||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Oct. 01, 2016 | Sep. 30, 2017 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | Dec. 30, 2017 | |
Schedule of Cost-method Investments [Line Items] | |||||||||||||||||
Ownership interest percentage | 22.70% | ||||||||||||||||
Gross investments amount | $ 6,000 | ||||||||||||||||
Short-term loan to cost-method investee | $ 1,000 | $ 1,000 | $ 2,000 | $ 2,000 | $ 0 | $ 0 | |||||||||||
Cost method investments, fair value | $ 2,300 | 2,300 | $ 2,300 | ||||||||||||||
Impairment of cost-basis investment | (1,761) | (1,459) | (492) | ||||||||||||||
Decrease of cost method investment | 3,700 | ||||||||||||||||
Movements In Cost Method Investments [Roll Forward] | |||||||||||||||||
Beginning balance | $ 2,288 | $ 4,049 | 4,049 | 4,508 | |||||||||||||
Investment made during fiscal year | $ 1,000 | 0 | 1,000 | 5,000 | |||||||||||||
Impairment of cost-basis investment | (1,761) | (1,459) | (492) | ||||||||||||||
Ending balance | 2,288 | 2,288 | $ 4,049 | $ 4,508 | 2,288 | ||||||||||||
Maximum loss exposure amount | 2,900 | 2,900 | 2,900 | ||||||||||||||
Prepaid royalties | 600 | $ 600 | $ 600 | ||||||||||||||
Payments for royalties | $ 625 | ||||||||||||||||
Forecast | |||||||||||||||||
Movements In Cost Method Investments [Roll Forward] | |||||||||||||||||
Payments for royalties | $ 1,250 | $ 1,250 | $ 1,250 | $ 1,250 | $ 875 | $ 875 | $ 875 | $ 875 |
Accounts Payable and Accrued 71
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Trade accounts payable | $ 35,350 | $ 37,800 |
Liability for non-cancelable contracts | 4,531 | 5,744 |
Payable to members of the MHL and HDMI consortia | 87 | 9,698 |
Other accrued expenses | 14,437 | 27,691 |
Total accounts payable and accrued expenses | $ 54,405 | $ 80,933 |
Redeemable Noncontrolling Int72
Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands | Mar. 10, 2015 | Jan. 02, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | Dec. 04, 2014 |
Business Acquisition [Line Items] | ||||||
Redeemable noncontrolling interest | $ 7,600 | $ 7,600 | ||||
Noncontrolling interest, redemption price as percentage of fair Value | 130.00% | |||||
Redeemable noncontrolling interest, redemption period | 3 years | |||||
Period increase of noncontrolling interest | 400 | |||||
Cash paid to redeem noncontrolling interest | $ 900 | $ 0 | $ 0 | 867 | ||
Redemption of noncontrolling interest, net of previous accretion to redemption value. | 6,700 | |||||
Loss attributable to redeemable noncontrolling interest | 600 | |||||
Redemption of noncontrolling interest, net of previous accretion to redemption value. | $ (6,053) | |||||
Silicon Image, Inc | ||||||
Business Acquisition [Line Items] | ||||||
Interests acquired | 100.00% | 7.00% | ||||
Redeemable noncontrolling interest | $ 7,000 | |||||
Fair value of redeemable noncontrolling interest | $ 7,200 | |||||
Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Fair value of redeemable noncontrolling interest | $ 21,000 |
Lease Obligations (Details)
Lease Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Leases [Abstract] | |||
Rental expense under operating leases | $ 8,900 | $ 9,500 | $ 7,400 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,018 | 6,310 | ||
2,019 | 4,784 | ||
2,020 | 4,860 | ||
2,021 | 4,654 | ||
2,022 | 4,694 | ||
Thereafter | 14,259 | ||
Total future minimum lease commitments | $ 39,561 |
Income Taxes - Domestic and For
Income Taxes - Domestic and Foreign Components of Loss before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Results of Operations, Income before Income Taxes [Abstract] | |||
Domestic | $ (17,341) | $ (33,962) | $ (93,229) |
Foreign | (52,372) | (10,220) | (33,464) |
Loss before income taxes | $ (69,713) | $ (44,182) | $ (126,693) |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Current: | |||
Federal | $ 508 | $ 1,896 | $ 968 |
State | 30 | 13 | 80 |
Foreign | 304 | 7,918 | 10,634 |
Current income tax (provision) benefit | 842 | 9,827 | 11,682 |
Deferred: | |||
Federal | 0 | 0 | 18,713 |
State | 0 | 0 | 2,318 |
Foreign | 7 | 90 | (173) |
Deferred income tax (provision) benefit | 7 | 90 | 20,858 |
Income tax expense | $ 849 | $ 9,917 | $ 32,540 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Statutory federal rate | (35.00%) | (35.00%) | (35.00%) |
State taxes, net | (7.00%) | 7.00% | (6.00%) |
Research and development credits | (1.00%) | (2.00%) | (2.00%) |
Stock compensation | 3.00% | 3.00% | 1.00% |
Foreign rate differential | 28.00% | 15.00% | 12.00% |
Foreign dividends | 1.00% | (0.00%) | 5.00% |
Foreign withholding taxes | 0.00% | (9.00%) | (3.00%) |
Other permanent | (0.00%) | 3.00% | 4.00% |
Goodwill impairment | (0.00%) | (0.00%) | 4.00% |
Valuation allowance | (73.00%) | 17.00% | 46.00% |
Change in uncertain tax benefit accrual | 1.00% | 5.00% | (8.00%) |
Stock compensation adoption | (8.00%) | (0.00%) | (0.00%) |
Tax rate change | 93.00% | (0.00%) | 3.00% |
Other | (1.00%) | 1.00% | (1.00%) |
Effective income tax rate | 1.00% | 23.00% | 26.00% |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Accrued expenses and reserves | $ 3,096 | $ 5,143 |
Inventory | 2 | 290 |
Deferred Revenue | 228 | 426 |
Stock-based and deferred compensation | 4,018 | 7,269 |
Intangible assets | 19,576 | 20,063 |
Fixed assets | 216 | 678 |
Net operating loss carry forwards | 86,410 | 137,521 |
Tax credit carry forwards | 90,530 | 89,174 |
Capital loss carry forwards | 3,926 | 962 |
Other | 2,323 | 2,973 |
Gross deferred tax assets | 210,325 | 264,499 |
Less: valuation allowance | (209,691) | (260,687) |
Net deferred tax assets | 634 | 3,812 |
Deferred tax liabilities: | ||
Fixed Assets | 559 | 0 |
Other | 16 | 3,746 |
Total deferred tax liabilities | 575 | 3,746 |
Net deferred tax assets | $ 59 | $ 66 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 30, 2017 | Jan. 02, 2016 | Dec. 31, 2016 | Jan. 03, 2015 | |
Valuation Allowance [Line Items] | ||||
Increase (decrease) in valuation allowance | $ (51,000) | $ 21,000 | ||
Tax credit carryforwards | 59,300 | |||
Unrecognized tax benefits associated with uncertain tax positions | 44,832 | $ 48,207 | $ 47,623 | $ 18,673 |
Unrecognized tax benefits associated with uncertain tax positions that, if recognized, would affect the effective tax rate | 42,900 | |||
Interest and penalties associated with unrecognized tax benefits | 8,100 | |||
Uncertain tax position exposure netted against deferred tax assets | 24,600 | |||
Amount of unrecognized tax benefit that is reasonably possible be recognized during next twelve months | 1,500 | |||
Amount of associated interest and penalties could be recognized during next twelve months | 100 | |||
Federal | ||||
Valuation Allowance [Line Items] | ||||
Operating loss carryforwards | 351,400 | |||
Tax credit carryforwards | 50,200 | |||
State | ||||
Valuation Allowance [Line Items] | ||||
Operating loss carryforwards | 162,900 | |||
Tax credit carryforwards | 59,200 | |||
Do not expire | ||||
Valuation Allowance [Line Items] | ||||
Tax credit carryforwards | 57,900 | |||
Other long-term liabilities | ||||
Valuation Allowance [Line Items] | ||||
Liability for uncertain tax positions | $ 26,900 | $ 29,600 |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes to Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 47,623 | $ 48,207 | $ 18,673 |
Additions based on tax positions related to the current year | 471 | 2,573 | 4,381 |
Additions based on tax positions of prior years | 11 | 530 | 0 |
Additions due to acquisition | 0 | 0 | 41,083 |
Reduction for tax positions of prior years | (1,226) | (1,824) | (14,958) |
Settlements | 0 | 0 | 0 |
Reduction as a result of lapse of applicable statute of limitations | (2,047) | (1,863) | (972) |
Ending balance | $ 44,832 | $ 47,623 | $ 48,207 |
Restructuring - Additional Info
Restructuring - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring incurred cost | $ 2,483 | $ 3,071 | $ 1,576 | $ 66 | $ 951 | $ 317 | $ 2,568 | $ 5,431 | $ 7,196 | $ 9,267 | $ 19,239 |
Restructuring charges | 7,196 | 9,267 | 19,239 | ||||||||
March 2015 Plan | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring incurred cost | (100) | 7,300 | 13,300 | ||||||||
Restructuring cost incurred to date | 20,500 | 20,500 | |||||||||
September 2015 Reduction | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring incurred cost | (700) | $ 2,000 | $ 5,900 | ||||||||
Restructuring cost incurred to date | 7,200 | 7,200 | |||||||||
June 2017 Plan | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring cost incurred to date | 8,000 | 8,000 | |||||||||
March 2015 Plan and September 2015 Reduction | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring incurred cost | (800) | ||||||||||
Minimum | June 2017 Plan | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Total expected restructuring cost | 8,000 | 8,000 | |||||||||
Maximum | June 2017 Plan | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Total expected restructuring cost | $ 19,000 | $ 19,000 | |||||||||
Hyderabad | Disposed of by Sale | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Ownership percentage | 100.00% |
Restructuring - Activity Relate
Restructuring - Activity Related to Restructuring Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | $ 1,874 | $ 5,078 | $ 182 |
Restructuring charges | 7,196 | 9,267 | 19,239 |
Costs paid or otherwise settled | (6,623) | (12,471) | (14,343) |
Ending Balance | 2,447 | 1,874 | 5,078 |
Severance and related | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 801 | 3,696 | 0 |
Restructuring charges | 2,484 | 2,883 | 12,861 |
Costs paid or otherwise settled | (2,093) | (5,778) | (9,165) |
Ending Balance | 1,192 | 801 | 3,696 |
Lease termination | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 1,036 | 1,005 | 43 |
Restructuring charges | 811 | 2,993 | 2,667 |
Costs paid or otherwise settled | (977) | (2,962) | (1,705) |
Ending Balance | 870 | 1,036 | 1,005 |
Software Contracts & Engineering Tools | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 25 | 377 | 0 |
Restructuring charges | 3,066 | 1,903 | 3,040 |
Costs paid or otherwise settled | (2,731) | (2,255) | (2,663) |
Ending Balance | 360 | 25 | 377 |
Other | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 12 | 0 | 139 |
Restructuring charges | 835 | 1,488 | 671 |
Costs paid or otherwise settled | (822) | (1,476) | (810) |
Ending Balance | $ 25 | $ 12 | $ 0 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | Mar. 10, 2015 | Jul. 01, 2017 | Apr. 01, 2017 | Jul. 02, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 |
Debt Instrument [Line Items] | |||||||
Principal amount | $ 306,791,000 | ||||||
Payments of debt issuance costs | $ 0 | $ 0 | $ 8,283,000 | ||||
Annual excess cash flow payments | 95 days | ||||||
Repayments of debt | $ 8,300,000 | $ 9,900,000 | $ 1,700,000 | ||||
Payment of required annual excess cash flow payment | $ 13,700,000 | ||||||
Line of Credit | Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | $ 350,000,000 | $ 306,791,000 | 342,221,000 | ||||
Repayment of debt | 346,500,000 | ||||||
Unamortized original issue discount and debt issuance costs | 3,500,000 | $ 5,616,000 | $ 7,599,000 | ||||
Payments of debt issuance costs | $ 8,300,000 | ||||||
Interest rate, effective percentage | 6.29% | ||||||
Periodic payment | $ 900,000 | ||||||
Payment, percentage | 75.00% | ||||||
Line of Credit | Term Loan | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Debt variable interest floor rate | 1.00% | ||||||
Basis spread on variable rate | 4.25% | ||||||
Minimum | Line of Credit | Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Payment, percentage | 0.00% | ||||||
Maximum | Line of Credit | Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Payment, percentage | 75.00% |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt and Interest Expense Related to Term Loan (Details) - USD ($) | 12 Months Ended | |||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | Mar. 10, 2015 | |
Debt Instrument [Line Items] | ||||
Principal amount | $ 306,791,000 | |||
Contractual interest | 16,503,000 | $ 18,518,000 | $ 15,225,000 | |
Amortization of debt issuance costs and discount | 1,982,000 | 1,350,000 | 2,835,000 | |
Total Interest expense related to the Term Loan | 18,485,000 | 19,868,000 | $ 18,060,000 | |
Line of Credit | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Principal amount | 306,791,000 | 342,221,000 | $ 350,000,000 | |
Unamortized original issue discount and debt issuance costs | (5,616,000) | (7,599,000) | $ (3,500,000) | |
Less: Current portion of long-term debt | (1,508,000) | (33,767,000) | ||
Long-term debt | $ 299,667,000 | $ 300,855,000 |
Long-Term Debt - Schedule of Ex
Long-Term Debt - Schedule of Expected Future Principal Payments (Details) $ in Thousands | Dec. 30, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 3,500 |
2,019 | 26,235 |
2,020 | 59,187 |
2,021 | 217,869 |
Principal amount | $ 306,791 |
Common Stock Repurchase Progr85
Common Stock Repurchase Program (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Apr. 04, 2015 | Dec. 30, 2017 | Dec. 31, 2016 | Mar. 03, 2014 | |
Equity [Abstract] | ||||
Stock repurchase program, authorized amount | $ 20,000,000 | |||
Number of shares repurchased | 1,100,000 | 0 | 0 | |
Value of shares repurchased | $ 7,000,000 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) $ / shares in Units, $ in Thousands | Mar. 10, 2015$ / sharesshares | Sep. 30, 2017shares | Dec. 30, 2017USD ($)plan$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Jan. 02, 2016USD ($)$ / sharesshares | May 31, 2012shares |
Class of Stock [Line Items] | ||||||
Number of equity incentive plans | plan | 4 | |||||
Contractual terms of options granted | 2 years | |||||
Compensation expense | $ | $ 12,543 | $ 16,213 | $ 21,643 | |||
Conversion ratio | 1.09816 | |||||
Number of outstanding option (in shares) | 12,939,000 | 12,566,000 | ||||
Cash used to settle awards | $ | 3,900 | |||||
Total unrecognized compensation cost related to unvested employee and director stock options | $ | $ 12,400 | |||||
Total intrinsic value of options exercised | $ | 2,200 | $ 3,300 | 2,500 | |||
Total fair value of options and RSU's vested and expensed | $ | $ 12,500 | $ 15,600 | $ 18,000 | |||
Grant date weighted average fair values based on fair value assumptions, options (in dollars per share) | $ / shares | $ 2.02 | $ 2.14 | $ 2.35 | |||
Grant date weighted average fair values based on fair assumptions, non-options (in dollars per share) | $ / shares | $ 0 | $ 1.82 | $ 1.51 | |||
Award vesting comparison period | 2 years | |||||
Exercised, Shares | 1,803,000 | |||||
Granted, Shares | 3,732,000 | |||||
1996 Stock Incentive Plan and the 2001 Stock Plan | ||||||
Class of Stock [Line Items] | ||||||
Number of shares available for future awards | 0 | |||||
2012 ESPP | ||||||
Class of Stock [Line Items] | ||||||
Number of shares available for future awards | 1,900,000 | |||||
Number of shares authorized | 3,000,000 | |||||
Percentage of employee's compensation maximum for employee share purchases | 10.00% | |||||
Purchase price of shares as percentage of fair market value | 85.00% | |||||
Compensation expense | $ | $ 0 | $ 600 | $ 400 | |||
2013 Incentive Plan and the 2011 Non-Employee Director Equity Incentive Plan | ||||||
Class of Stock [Line Items] | ||||||
Number of shares available for future awards | 3,600,000 | |||||
Employee and Director Stock Options | ||||||
Class of Stock [Line Items] | ||||||
Award vesting period | 4 years | |||||
Number of outstanding option (in shares) | 2,087,605 | 275,991 | ||||
Weighted average period for recognition | 2 years 10 months 3 days | |||||
Performance Shares | ||||||
Class of Stock [Line Items] | ||||||
Number of outstanding option (in shares) | 83,000 | 0 | ||||
Number of options outstanding (in shares) | 707,000 | 597,000 | ||||
Numbers of shares vested | 92,000 | |||||
Exercised, Shares | 9,000 | |||||
Granted, Shares | 475,000 | |||||
Restricted Stock Units (RSUs) | ||||||
Class of Stock [Line Items] | ||||||
Award vesting period | 4 years | |||||
Stock conversion offer price (in dollars per share) | $ / shares | $ 7.30 | |||||
Number of outstanding option (in shares) | 2,025,255 | 30,679 | ||||
Grant date weighted average fair values based on fair assumptions, non-options (in dollars per share) | $ / shares | $ 5.83 | |||||
Unrecognized compensation expense related to unvested RSU's | $ | $ 14,400 | |||||
Granted, Shares | 70,000 | |||||
Executive Officer | ||||||
Class of Stock [Line Items] | ||||||
Compensation expense | $ | $ 500 | $ 800 | ||||
Numbers of shares vested | 0 | |||||
Awards canceled, Shares | 0 | |||||
Executive Officer | Performance Shares | ||||||
Class of Stock [Line Items] | ||||||
Award vesting period | 2 years | |||||
Award vesting comparison period | 2 years | |||||
Maximum | ||||||
Class of Stock [Line Items] | ||||||
Contractual terms of options granted | 10 years | |||||
Maximum | Performance Shares | ||||||
Class of Stock [Line Items] | ||||||
Award vesting percentage | 200.00% | |||||
Maximum | Executive Officer | Performance Shares | ||||||
Class of Stock [Line Items] | ||||||
Award vesting percentage | 200.00% | |||||
Minimum | Performance Shares | ||||||
Class of Stock [Line Items] | ||||||
Award vesting percentage | 0.00% | |||||
Minimum | Executive Officer | Performance Shares | ||||||
Class of Stock [Line Items] | ||||||
Award vesting percentage | 0.00% |
Stockholders' Equity - Stock-ba
Stockholders' Equity - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | $ 12,543 | $ 16,213 | $ 21,643 |
Cost of products sold | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 795 | 888 | 1,416 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 5,245 | 7,928 | 9,141 |
Selling, general, and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 6,503 | 7,397 | 6,793 |
Acquisition related charges | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | $ 0 | $ 0 | $ 4,293 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Assumptions Used in Valuation of Stock Option and ESPP Compensation (Details) | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Employee and Director Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected volatility, percent, minimum | 40.96% | 44.20% | 43.60% |
Expected volatility, percent, maximum | 48.01% | 50.80% | 47.30% |
Risk-free interest rate, percent, minimum | 1.99% | 0.94% | 1.40% |
Risk-free interest rate, percent, maximum | 2.09% | 2.06% | 1.70% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected term (years) | 6 months | 6 months | |
Dividend yield | 0.00% | 0.00% | 0.00% |
Weighted average expected volatility | 0.00% | 57.90% | 33.60% |
Risk-free interest rate | 0.00% | 0.43% | 0.12% |
Minimum | Employee and Director Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected term (years) | 4 years 28 days | 4 years 22 days | 4 years 28 days |
Maximum | Employee and Director Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected term (years) | 4 years 3 months | 4 years 9 months 10 days | 4 years 9 months |
Stockholders' Equity - Summar89
Stockholders' Equity - Summary of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 30, 2017USD ($)$ / sharesshares | |
Shares | |
Beginning balance, Shares | shares | 12,566 |
Granted, Shares | shares | 3,732 |
Exercised, Shares | shares | (1,803) |
Forfeited or expired, Shares | shares | (1,556) |
Ending balance, Shares | shares | 12,939 |
Vested and expected to vest at end of period, Shares | shares | 12,939 |
Exercisable at end of period, Shares | shares | 6,601 |
Weighted average exercise price | |
Beginning balance (dollars per share) | $ / shares | $ 5.70 |
Granted (dollars per share) | $ / shares | 5.73 |
Exercised (dollars per share) | $ / shares | 5.07 |
Forfeited or expired (dollars per share) | $ / shares | 6 |
Ending balance (dollars per share) | $ / shares | 5.77 |
Vested and expected to vest at end of period, Weighted average exercise price (dollars per share) | $ / shares | 5.77 |
Exercisable at end of period, Weighted average exercise price (dollars per share) | $ / shares | $ 5.81 |
Total | |
Vested and expected to vest at end of period, Weighted average remaining contractual term | 4 years 5 months 20 days |
Vested and expected to vest at end of period, aggregate intrinsic value | $ | $ 3,333 |
Exercisable at end of period, Weighted average remaining contractual term | 2 years 10 months 14 days |
Exercisable at end of period, aggregate intrinsic value | $ | $ 2,485 |
Stockholders' Equity - Summar90
Stockholders' Equity - Summary of RSU Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Weighted average grant date fair value | |||
Granted, Weighted average grant date fair value (dollars per share) | $ 0 | $ 1.82 | $ 1.51 |
Restricted Stock Units (RSUs) | |||
Shares | |||
Balance at the beginning of period, Shares | 3,247 | ||
Granted, Shares | 1,530 | ||
Exercised, Shares | (1,478) | ||
Forfeited or expired, Shares | (533) | ||
Balance at the end of period, Shares | 2,766 | 3,247 | |
Weighted average grant date fair value | |||
Balance at the beginning of period, Weighted average grant date fair value (dollars per share) | $ 5.90 | ||
Granted, Weighted average grant date fair value (dollars per share) | 5.83 | ||
Exercised, Weighted average grant date fair value (dollars per share) | 5.95 | ||
Forfeited or expired, Weighted average grant date fair value (dollars per share) | 5.84 | ||
Balance at the end of period, Weighted average grant date fair value (dollars per share) | $ 5.85 | $ 5.90 |
Stockholders' Equity - Summar91
Stockholders' Equity - Summary of Stock Options with Market Condition Activity (Details) shares in Thousands | 12 Months Ended |
Dec. 30, 2017shares | |
Unvested | |
Granted, Shares | 3,732 |
Vested | |
Beginning balance, Shares | 12,566 |
Exercised, Shares | (1,803) |
Ending balance, Shares | 12,939 |
Total | |
Granted, Shares | 3,732 |
Exercised, Shares | (1,803) |
Ending balance, shares | 12,939 |
Performance Shares | |
Unvested | |
Beginning balance, Shares | 597 |
Granted, Shares | 475 |
Vested, Shares | (92) |
Canceled, Shares | (273) |
Ending balance, Shares | 707 |
Vested | |
Beginning balance, Shares | 0 |
Vested, Shares | 92 |
Exercised, Shares | (9) |
Ending balance, Shares | 83 |
Total | |
Beginning balance, shares | 597 |
Granted, Shares | 475 |
Exercised, Shares | (9) |
Canceled, Shares | (273) |
Ending balance, shares | 790 |
Stockholders' Equity - Summar92
Stockholders' Equity - Summary of Assumptions Used in Valuation of Stock Options and RSUs (Details) | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 41.00% | 46.00% | |
Risk-free interest rate | 1.90% | 1.10% | 1.40% |
Expected term (years) | 4 years 6 months | 4 years 6 months | 4 years 6 months |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility, percent, minimum | 44.00% | ||
Expected volatility, percent, maximum | 46.00% | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 36.90% | ||
Risk-free interest rate | 0.60% | ||
Expected term (years) | 2 years | ||
Dividend yield | 0.00% |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Compensation Related Costs [Abstract] | |||
Employer matching contribution to a 401(k) plan | $ 0.8 | $ 0.9 | $ 0.9 |
Cash incentive plan expense | $ 7.2 | $ 4.7 | $ 1 |
Contingencies (Details)
Contingencies (Details) | Dec. 30, 2017USD ($) |
Loss Contingencies [Line Items] | |
Accrued liabilities related to income tax examination | $ 0 |
Minimum | |
Loss Contingencies [Line Items] | |
Loss contingency estimate (less than) | 0 |
Maximum | |
Loss Contingencies [Line Items] | |
Loss contingency estimate (less than) | $ 2,000,000 |
Valuation and Qualifying Acco95
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 270,338 | $ 253,569 | $ 142,171 |
Balance received through acquisition | 0 | 0 | 52,617 |
Charged (Credit) to costs and expenses | (50,857) | 15,028 | 58,373 |
Charged (credit) to other accounts | 2 | 2,943 | 413 |
Settlements & write-offs net of recoveries | (166) | (1,202) | (5) |
Balance at end of period | 219,317 | 270,338 | 253,569 |
Allowance for deferred taxes | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 260,687 | 252,578 | 141,215 |
Balance received through acquisition | 0 | 0 | 52,481 |
Charged (Credit) to costs and expenses | (50,960) | 7,450 | 58,658 |
Charged (credit) to other accounts | (36) | 659 | 224 |
Settlements & write-offs net of recoveries | 0 | 0 | 0 |
Balance at end of period | 209,691 | 260,687 | 252,578 |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 9,299 | 621 | 875 |
Balance received through acquisition | 0 | 0 | 0 |
Charged (Credit) to costs and expenses | 3 | 7,362 | (438) |
Charged (credit) to other accounts | 38 | 2,284 | 189 |
Settlements & write-offs net of recoveries | 31 | (968) | (5) |
Balance at end of period | 9,371 | 9,299 | 621 |
Allowance for warranty expense | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 352 | 370 | 81 |
Balance received through acquisition | 0 | 0 | 136 |
Charged (Credit) to costs and expenses | 100 | 216 | 153 |
Charged (credit) to other accounts | 0 | 0 | 0 |
Settlements & write-offs net of recoveries | (197) | (234) | 0 |
Balance at end of period | $ 255 | $ 352 | $ 370 |
Segment and Geographic Inform96
Segment and Geographic Information - Additional Information (Details) - segment | 12 Months Ended | |
Dec. 30, 2017 | Jan. 02, 2016 | |
Segment Reporting [Abstract] | ||
Number of operating segment | 1 | 2 |
Segment and Geographic Inform97
Segment and Geographic Information - Revenue by Major Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 385,961 | $ 427,054 | $ 405,966 |
Total revenue, percent | 100.00% | 100.00% | 100.00% |
United States: | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 48,315 | $ 51,752 | $ 33,677 |
Total revenue, percent | 13.00% | 12.00% | 8.00% |
Foreign | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 337,646 | $ 375,302 | $ 372,289 |
Total revenue, percent | 87.00% | 88.00% | 92.00% |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 193,590 | $ 186,865 | $ 165,582 |
Total revenue, percent | 50.00% | 44.00% | 41.00% |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 44,547 | $ 59,835 | $ 55,596 |
Total revenue, percent | 12.00% | 14.00% | 14.00% |
Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 42,286 | $ 49,080 | $ 44,067 |
Total revenue, percent | 11.00% | 12.00% | 11.00% |
Taiwan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 14,846 | $ 31,322 | $ 31,181 |
Total revenue, percent | 4.00% | 7.00% | 8.00% |
Other Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 26,916 | $ 37,826 | $ 67,704 |
Total revenue, percent | 7.00% | 9.00% | 17.00% |
Other Americas | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 15,461 | $ 10,374 | $ 8,159 |
Total revenue, percent | 4.00% | 3.00% | 2.00% |
Segment and Geographic Inform98
Segment and Geographic Information - Property and Equipment, Net by Country (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | $ 40,423 | $ 49,481 | $ 51,852 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 30,338 | 30,532 | 25,615 |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 4,632 | 10,617 | 14,998 |
Philippines | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 3,883 | 4,928 | 3,948 |
Taiwan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 958 | 2,310 | 3,677 |
India | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 0 | 215 | 1,470 |
Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 313 | 637 | 1,211 |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 299 | 242 | 933 |
Foreign | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | $ 10,085 | $ 18,949 | $ 26,237 |
Segment and Geographic Inform99
Segment and Geographic Information - Revenue by Primary Distributor (Details) | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Revenue, Major Customer [Line Items] | |||
Revenue from all sell-through distributors | 66.00% | 61.00% | 45.00% |
Arrow Electronics Inc. | |||
Revenue, Major Customer [Line Items] | |||
Revenue from all sell-through distributors | 24.00% | 24.00% | 20.00% |
Weikeng Group | |||
Revenue, Major Customer [Line Items] | |||
Revenue from all sell-through distributors | 27.00% | 22.00% | 12.00% |
All others | |||
Revenue, Major Customer [Line Items] | |||
Revenue from all sell-through distributors | 15.00% | 15.00% | 13.00% |
Quarterly Financial Data (Un100
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 95,266 | $ 91,971 | $ 94,137 | $ 104,587 | $ 118,108 | $ 113,225 | $ 99,209 | $ 96,512 | $ 385,961 | $ 427,054 | $ 405,966 |
Gross margin | 51,216 | 53,322 | 51,209 | 60,832 | 63,480 | 67,424 | 58,426 | 57,104 | |||
Restructuring charges | 2,483 | 3,071 | 1,576 | 66 | 951 | 317 | 2,568 | 5,431 | 7,196 | 9,267 | 19,239 |
Net loss | $ (7,213) | $ (43,052) | $ (13,022) | $ (7,275) | $ (8,164) | $ (12,414) | $ (13,810) | $ (19,711) | $ (70,562) | $ (54,099) | $ (159,233) |
Net loss per share - basic and diluted (in dollars per share) | $ (0.06) | $ (0.35) | $ (0.11) | $ (0.06) | $ (0.07) | $ (0.10) | $ (0.12) | $ (0.17) | $ (0.58) | $ (0.45) | $ (1.36) |