Lattice Semiconductor (LSCC) 10-Q 3 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 31, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	LATTICE SEMICONDUCTOR CORP
Entity Central Index Key	855,658
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-29
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		126,759,313

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Revenue:
Revenues	$ 102,715,000	$ 94,137,000	$ 201,338,000	$ 198,724,000
Costs and expenses:
Research and development	21,081,000	26,820,000	44,022,000	54,209,000
Selling, general, and administrative	21,068,000	21,938,000	48,111,000	45,843,000
Amortization of acquired intangible assets	4,523,000	8,737,000	10,159,000	17,251,000
Restructuring charges	4,376,000	1,576,000	5,405,000	1,642,000
Acquisition related charges	864,000	867,000	1,531,000	2,527,000
Impairment of acquired intangible assets	11,900,000	0	11,900,000	0
Total costs and expenses	116,279,000	102,866,000	215,697,000	208,155,000
Loss from operations	(13,564,000)	(8,729,000)	(14,359,000)	(9,431,000)
Interest expense	(4,968,000)	(4,656,000)	(10,082,000)	(10,224,000)
Other (expense) income, net	(348,000)	410,000	206,000	(77,000)
Loss before income taxes	(18,880,000)	(12,975,000)	(24,235,000)	(19,732,000)
Income tax expense	1,343,000	47,000	1,940,000	565,000
Net loss	$ (20,223,000)	$ (13,022,000)	$ (26,175,000)	$ (20,297,000)
Net loss per share, basic and diluted (in usd per share)	$ (0.16)	$ (0.11)	$ (0.21)	$ (0.17)
Shares used in per share calculations, basic and diluted (in shares)	124,843	122,390	124,460	122,095
Product
Revenue:
Revenues	$ 98,294,000	$ 83,168,000	$ 193,403,000	$ 175,837,000
Costs and expenses:
Cost of revenue	52,208,000	40,749,000	94,310,000	82,363,000
Licensing and services
Revenue:
Revenues	4,421,000	10,969,000	7,935,000	22,887,000
Costs and expenses:
Cost of revenue	$ 259,000	$ 2,179,000	$ 259,000	$ 4,320,000

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Statement of Comprehensive Income [Abstract]
Net loss	$ (20,223)	$ (13,022)	$ (26,175)	$ (20,297)
Other comprehensive loss:
Unrealized gain (loss) related to marketable securities, net of tax	9	(28)	2	(71)
Reclassification adjustment for losses (gains) related to marketable securities included in other (expense) income, net of tax	0	30	(1)	200
Translation adjustment, net of tax	(1,129)	676	(540)	950
Change in actuarial valuation of defined benefit pension	0	(47)	0	(47)
Comprehensive loss	$ (21,343)	$ (12,391)	$ (26,714)	$ (19,265)

CONSOLIDATED BALANCE SHEETS (un

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 30, 2017
Current assets:
Cash and cash equivalents	$ 93,699	$ 106,815
Short-term marketable securities	12,086	4,982
Accounts receivable, net of allowance for doubtful accounts	76,566	55,104
Inventories	65,586	79,903
Prepaid expenses and other current assets	21,729	16,567
Total current assets	269,666	263,371
Property and equipment, less accumulated depreciation of $137,883 at June 30, 2018 and $131,260 at December 30, 2017	36,418	40,423
Intangible assets, net	29,189	51,308
Goodwill	267,514	267,514
Deferred income taxes	192	198
Other long-term assets	20,225	13,147
Total assets	623,204	635,961
Current liabilities:
Accounts payable and accrued expenses (includes restructuring)	53,500	54,405
Accrued payroll obligations	8,700	10,416
Current portion of long-term debt	24,526	1,508
Deferred income and allowances on sales to distributors	0	17,250
Deferred licensing and services revenue	0	68
Total current liabilities	86,726	83,647
Long-term debt	265,699	299,667
Other long-term liabilities	40,159	34,954
Total liabilities	392,584	418,268
Contingencies (Note 16)
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; 125,613,000 shares issued and outstanding as of June 30, 2018 and 123,895,000 shares issued and outstanding as of December 30, 2017	1,256	1,239
Additional paid-in capital	707,991	695,768
Accumulated deficit	(476,636)	(477,862)
Accumulated other comprehensive loss	(1,991)	(1,452)
Total stockholders' equity	230,620	217,693
Total liabilities and stockholders' equity	$ 623,204	$ 635,961

CONSOLIDATED BALANCE SHEETS (u5

CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 30, 2017
Statement of Financial Position [Abstract]
Accumulated depreciation	$ 137,883	$ 131,260
Preferred stock, par value per share (in dollars per share)	$ 0.01000	$ 0.01000
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value per share (in dollars per share)	$ 0.01000	$ 0.01000
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	125,613,000	123,895,000
Common stock, shares outstanding	125,613,000	123,895,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Cash flows from operating activities:
Net loss	$ (26,175,000)	$ (20,297,000)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	22,425,000	30,497,000
Impairment of acquired intangible assets	11,900,000	0
Amortization of debt issuance costs and discount	1,058,000	1,354,000
(Gain) loss on sale or maturity of marketable securities	(1,000)	200,000
Gain on forward contracts	(36,000)	(26,000)
Stock-based compensation expense	7,200,000	6,772,000
Gain on disposal of fixed assets	(93,000)	(61,000)
Gain on sale of assets and business units	0	(300,000)
Impairment of cost-method investment	0	493,000
Changes in assets and liabilities:
Accounts receivable, net	(19,654,000)	12,846,000
Inventories	14,687,000	689,000
Prepaid expenses and other assets	(7,891,000)	2,822,000
Accounts payable and accrued expenses (includes restructuring)	7,095,000	(13,554,000)
Accrued payroll obligations	(1,716,000)	(1,894,000)
Income taxes payable	851,000	(355,000)
Deferred income and allowances on sales to distributors	0	(7,342,000)
Deferred licensing and services revenue	(68,000)	(330,000)
Net cash provided by operating activities	9,582,000	11,514,000
Cash flows from investing activities:
Proceeds from sales of and maturities of short-term marketable securities	2,500,000	7,200,000
Purchases of marketable securities	(9,603,000)	(7,420,000)
Capital expenditures	(4,105,000)	(7,035,000)
Proceeds from sale of assets and business units	0	300,000
Short-term loan to cost-method investee	0	(1,000,000)
Cash paid for software licenses	(3,981,000)	(4,149,000)
Net cash used in investing activities	(15,189,000)	(12,104,000)
Cash flows from financing activities:
Restricted stock unit tax withholdings	(1,369,000)	(1,748,000)
Proceeds from issuance of common stock	6,409,000	2,931,000
Repayment of debt	(12,009,000)	(33,679,000)
Net cash used in financing activities	(6,969,000)	(32,496,000)
Effect of exchange rate change on cash	(540,000)	950,000
Net increase in cash and cash equivalents	(13,116,000)	(32,136,000)
Beginning cash and cash equivalents	106,815,000	106,552,000
Ending cash and cash equivalents	93,699,000	74,416,000
Supplemental cash flow information:
Change in unrealized gain (loss) related to marketable securities, net of tax, included in Accumulated other comprehensive loss	(2,000)	71,000
Income taxes paid, net of refunds	2,057,000	976,000
Interest paid	9,177,000	12,094,000
Accrued purchases of plant and equipment	$ 354,000	$ 2,216,000

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	Basis of Presentation and Significant Accounting Policies The accompanying Consolidated Financial Statements are unaudited and have been prepared by Lattice Semiconductor Corporation (“Lattice,” the “Company,” “we,” “us,” or “our”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and in our opinion include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of results for the interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") have been condensed or omitted as permitted by the SEC's rules and regulations. These Consolidated Financial Statements should be read in conjunction with our audited financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 30, 2017 . Fiscal Reporting Period We report based on a 52 or 53-week fiscal year ending on the Saturday closest to December 31. Our second quarter of fiscal 2018 and second quarter of fiscal 2017 ended on June 30, 2018 and July 1, 2017 , respectively. All references to quarterly or six months ended financial results are references to the results for the relevant 13-week or 26-week fiscal period. Principles of Consolidation and Presentation The accompanying Consolidated Financial Statements include the accounts of Lattice and its subsidiaries after the elimination of all intercompany balances and transactions. Reclassifications Certain amounts in the prior fiscal year 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 $0.2 million and $0.5 million for the second quarter and first six months, respectively, of fiscal 2017. We have reclassified the prior year loss to Other (expense) income, net on our Consolidated Statements of Operations 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. GAAP requires management to make estimates and assumptions that affect the reported amounts and classification of assets, such as marketable securities, accounts receivable, contract assets (included in prepaid expenses and other current assets), inventory, goodwill (including the assessment of reporting units), intangible assets, current and deferred income taxes, accrued liabilities (including restructuring charges and bonus arrangements), 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 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 "Note 11 - Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss"). 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: June 30, 2018 December 30, 2017 Total cost of contracts for Japanese yen (in thousands) $ 1,031 $ 2,204 Number of contracts 1 2 Settlement month June 2019 June 2018 Although these hedges mitigate our foreign currency exchange rate exposure from an economic perspective, they were not designated as "effective" hedges for accounting purposes and as such are adjusted to fair value through Other (expense) income, net , with a gain of less than $0.1 million for the fiscal quarter ended June 30, 2018 and a gain of approximately $0.1 million for the fiscal quarter ended December 30, 2017 . We do not hold or issue derivative financial instruments for trading or speculative purposes. Concentration Risk Potential exposure to concentration risk may impact revenue, trade receivables, marketable securities, and supply of wafers for our products. Customer concentration risk may impact revenue. The percentage of total revenue, with end customers known, attributable to our top five end customers and largest end customer is presented in the following table: Three Months Ended Six Months Ended June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Revenue attributable to top five end customers 17 % 27 % 17 % 32 % Revenue attributable to largest end customer 5 % 9 % 5 % 10 % No other end customer accounted for more than 10% of total revenue during these periods. We did not have enough information to assign end customers to approximately $4.1 million and $12.3 million of revenue recognized for the second quarter and first six months, respectively, of fiscal 2018 on shipments to distributors that have not sold through to end customers. Distributors have historically accounted for a significant portion of our total revenue. Revenue attributable to distributors as a percentage of total revenue is presented in the following table: Three Months Ended Six Months Ended June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Revenue attributable to distributors* 86 % 76 % 87 % 73 % * During the first quarter of 2018, we updated our channel categories to group all forms of distribution into a single channel. Prior periods have been reclassified to match the current period presentation. Our two largest distributor groups, Arrow Electronics, Inc. ("Arrow") and the Weikeng Group ("Weikeng"), also account for a substantial portion of our net trade receivables. At June 30, 2018 and December 30, 2017 , Arrow accounted for 73% and 66% , respectively, and Weikeng accounted for 13% and 0% , respectively, of net trade receivables. No other distributor group or end customer accounted for more than 10% of net 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 at both June 30, 2018 and December 30, 2017 . 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, and bad debt expense was negligible for all periods presented. 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 4 - Marketable Securities" 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, among other factors. 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. Our equity investments in privately held companies, considered VIE's, 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 9 - Cost Method Investment and Collaborative Arrangement"). Upon disposition of these investments, the specific identification method is used to determine the cost basis in computing realized gains or losses. 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 instead is 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. In the second quarter of 2018, we made the strategic decision to discontinue our millimeter wave business. We determined that this action constituted a triggering event related to goodwill, and we evaluated our goodwill balance as of June 30, 2018. We concluded that goodwill was not impaired, and no impairment charges relating to goodwill were recorded for the first six months of fiscal 2018 . See Notes 6, 7, 8 and 13 regarding charges and costs related to the discontinuation of our millimeter wave business . No impairment charges relating to goodwill were recorded for the first six months of fiscal 2017 as no indicators of impairment were present. During the second quarter and first six months of fiscal 2018, there have been no changes to the Goodwill balance of $267.5 million presented in our Annual Report on Form 10-K for the fiscal year ended December 30, 2017 . New Accounting Pronouncements Recently Issued Accounting Standards 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. 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. ASU 2016-02 initially required entities to adopt the standard using a modified retrospective transition method. In July 2018, the FASB issued certain updates including ASU 2018-11, Leases (Topic 842) Targeted Improvements , which provide transition practical expedients allowing companies to adopt the new standard with a cumulative effect adjustment as of the beginning of the year of adoption with prior year comparative financial information and disclosures remaining as previously reported. We are currently evaluating the optional transition practical expedients, as well as the impact of the new guidance 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. 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. In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The new guidance allows an entity to reclassify the income tax effects of the Public Law 115-97 "An Act to Provide Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018", commonly known as the Tax Cuts and Job Act of 2017 (the "2017 Tax Act") on items within accumulated other comprehensive income/(loss) to retained earnings. This new guidance is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The new standard must be adopted retrospectively to each period in which a taxpayer recognizes the effect of the change in the U.S. federal corporate income tax rate from the 2017 Tax Act. We are currently assessing the impact of ASU 2018-02 on our consolidated financial statements and related disclosures. In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting , which largely aligns the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees. The ASU also clarifies that any share-based payment issued to a customer should be evaluated under ASC 606, Revenue from Contracts with Customers . The ASU requires a modified retrospective transition approach. This new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. We do not expect the adoption of this accounting standard update to have a material impact on our consolidated financial statements.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Customers	Revenue from Contracts with Customers We adopted ASC 606 effective on December 31, 2017, the first day of our 2018 fiscal year, using the modified retrospective method. Under the guidance in effect prior to the adoption of ASC 606, we deferred the recognition of revenue and the cost of revenue from certain sales until the distributors of our products reported that they had sold the products to their customers (known as “sell-through” revenue recognition). Under ASC 606, we recognize revenue on sales to all distributors upon shipment and transfer of control. Under ASC 606, we will also recognize certain licensing revenues that were not recognizable under previous GAAP due to the fixed and determinable revenue recognition criteria not being met. As a result of this adoption, we revised our accounting policy for revenue recognition as detailed below. We recognize revenue under the core principle of depicting the transfer of control to our customers in an amount reflecting the consideration we expect to be entitled. In order to achieve that core principle, we apply the following five step approach, as further described below: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to each performance obligation in the contract, and (5) recognize revenue when applicable performance obligations are satisfied. Product Revenue Identify the contract with a customer - Our product revenues consist of sales to original equipment manufacturers, or OEMs, and distributors. We consider customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. In certain cases we consider firm forecasts that are agreed to by both us and the customer to be contracts. For sales to distributors, we have concluded that our contracts are with the distributor, rather than with the distributor’s end customer, as we hold a contract bearing enforceable rights and obligations only with the distributor. As part of our consideration of the contract, we evaluate certain factors including the customer’s ability to pay (or credit risk). Identify the performance obligations in the contract - For each contract, we consider our promise to transfer each distinct product to be the identified performance obligations. Determine the transaction price - In determining the transaction price, we evaluate whether the set contract price is subject to refund or adjustment to determine the net consideration to which we expect to be entitled. As our standard payment terms are less than one year, we have elected to apply the practical expedient to not assess whether a contract has a significant financing component. Sales to most distributors are made under terms allowing certain price adjustments and limited rights of return of our products held in their inventory or upon sale to their end customers. Revenue from sales to distributors is recognized upon the transfer of control to the distributor, which generally occurs upon shipment of product to the distributor. Frequently, distributors need to sell at a price lower than the standard distribution price in order to win business. At the time the distributor invoices its customer or soon thereafter, the distributor submits a “ship and debit” price adjustment claim to us to adjust the distributor’s cost from the standard price to the pre-approved lower price. After we verify that the claim was pre-approved, a credit memo is issued to the distributor for the ship and debit claim. In determining the transaction price, we consider ship and debit price adjustments to be variable consideration. Such price adjustments are estimated using the expected value method based on an analysis of historical ship and debit claims, at the distributor and product level, over a period of time considered adequate to account for current pricing and business trends. Any differences between the estimated consideration and the actual amount received from the customer is recorded in the period that the actual consideration becomes known. Most of our distributors are entitled to limited rights of return, referred to as stock rotation, not to exceed 5% of billings, net of returns and ship and debit price adjustments. Stock rotation reserves are based on historical return rates and recorded as a reduction to revenue with a corresponding reduction to cost of goods sold for the estimated cost of inventory that is expected to be returned. Sales to OEMs and certain distributors are made under terms that do not include rights of return or price concessions after we ship the product. Accordingly, the transaction price equals the invoice price and there is no variable consideration. Allocate the transaction price to each performance obligation in the contract - Because our product revenue contracts generally include the delivery of a certain quantity of semiconductors as the single performance obligation, we do not need to allocate revenue across distinct performance obligations. However, we frequently receive orders for products to be delivered over multiple dates that may extend across several reporting periods. We invoice for each delivery upon shipment and recognize revenues for each distinct product delivered, assuming transfer of control has occurred. Payment term for invoices are generally 30 to 60 days. Recognize revenue when applicable performance obligations are satisfied - Revenue is recognized when control of the product is transferred to the customer (i.e., when our performance obligation is satisfied), which typically occurs at shipment. In determining whether control has transferred, we also consider if there is a present right to payment and legal title, along with whether the risks and rewards of ownership have transferred to the customer. We have certain vendor-managed inventory arrangements with certain OEM customers whereby we ship product into an inventory hub location but for which control does not transfer until the customer consumes the inventory. In such cases revenue is recognized upon customer consumption. Licensing and Services Revenue Identify the contract with a customer - 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 marketing adoption curves associated with our technology and standards. We consider licensing arrangements with our customers to be the contract. Identify the performance obligations in the contract - For each contract, we consider the promise to deliver a license that grants the customer the right to use the IP as well as any professional services provided under the contract, as distinct performance obligations. Determine the transaction price - Our HDMI and MHL standards revenue, as well as certain IP licenses, include variable consideration in the form of usage-based royalties. We apply the provisions of ASC 606 in accounting for these types of arrangements, whereby we do not include estimated royalties in the transaction price at the origination of the contract but rather recognize royalty revenue as usage occurs. 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 royalty sharing formula covered the period from January 1, 2014 through December 31, 2016, and an interim agreement covering the period from January 1, 2017 through December 31, 2017 was signed in the second quarter of fiscal 2018. However, a new agreement covering the period beginning January 1, 2018 is yet to be signed. While a new royalty sharing agreement is being negotiated with the other Founders of the HDMI consortium, the HDMI agent is unable to distribute the majority of the royalties collected to the Founders. We are recording revenue based on our estimated share of the royalties. This estimate will be adjusted once the Founders finalize the agreement. Allocate the transaction price to each performance obligation in the contract - For contracts that include multiple performance obligations (most commonly those that include licenses and professional services), we allocate revenue to each performance obligation based on the best estimate of the standalone selling price of each obligation. The judgments regarding the allocation of revenue on licensing arrangements are not material to our financial statements. Recognize revenue when applicable performance obligations are satisfied - We recognize license revenue at the point in time that control of the license transfers to the customer, which is generally upon delivery. We recognize professional service revenue as we perform the services. Royalty revenues are recognized as customers sell products that include our IP and are legally obligated to remit royalties to us. We receive payments from customers based on contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Payment terms on invoiced amounts are typically 30 days. Impact on Financial Statements We adopted ASC 606 on December 31, 2017 using the modified retrospective method. Under this transition method, we applied the provisions of the new standard to all open customer contracts as of the date of adoption and recorded the cumulative effect of adoption to Accumulated Deficit on December 31, 2017. We have not restated any prior financial statements presented. ASC 606 requires us to disclose the effect of adoption on each financial statement line item in the current reporting period during 2018 as compared to the guidance that was in effect in 2017, and an explanation of the reasons for significant changes. Such information is as follows: Condensed Consolidated Statement of Operations Three months ended June 30, 2018 Six months ended June 30, 2018 (In thousands, except per share data) As reported under new standard Adjustments Pro forma as if previous standard was in effect As reported under new standard Adjustments Pro forma as if previous standard was in effect Product revenue 98,294 (4,084 ) 94,210 193,403 (12,349 ) 181,054 Licensing and services revenue 4,421 4,399 8,820 7,935 3,187 11,122 Cost of product revenue 52,208 (1,725 ) 50,483 94,310 (5,544 ) 88,766 Net (loss) income (20,223 ) 2,040 (18,183 ) (26,175 ) (3,618 ) (29,793 ) Net (loss) income per share, basic and diluted (0.16 ) 0.01 (0.15 ) (0.21 ) (0.03 ) (0.24 ) Condensed Consolidated Balance Sheets As of June 30, 2018 (In thousands) As reported under new standard Adjustments Pro forma as if previous standard was in effect Accounts receivable, net of allowance for doubtful accounts 76,566 9,561 86,127 Inventories 65,586 (615 ) 64,971 Prepaid expenses and other current assets 21,729 (4,472 ) 17,257 Total assets 623,204 4,474 627,678 Accounts payable and accrued expenses (includes restructuring) 53,500 (28 ) 53,472 Deferred income and allowances on sales to distributors — 35,521 35,521 Accumulated deficit (476,636 ) (31,019 ) (507,655 ) Total liabilities and stockholders' equity 623,204 4,474 627,678 Condensed Consolidated Statement of Cash Flows Six months ended June 30, 2018 (In thousands) As reported under new standard Adjustments Pro forma as if previous standard was in effect Cash flows from operating activities: Net loss (26,175 ) (3,618 ) (29,793 ) Accounts receivable, net (19,654 ) (11,369 ) (31,023 ) Inventories 14,687 245 14,932 Prepaid expenses and other assets (7,891 ) (3,043 ) (10,934 ) Accounts payable and accrued expenses (includes restructuring) 7,095 (486 ) 6,609 Deferred income and allowances on sales to distributors — 18,271 18,271 The significant impacts of the new standard were to accelerate the recognition of revenues on both sales to certain distributors and certain licensing activities. As a result of adopting this standard, we recorded a cumulative effect adjustment of $27.4 million as a reduction to Accumulated deficit on December 31, 2017, resulting primarily from $20.2 million of previously deferred distributor revenues and costs and $6.6 million of previously unrecognized licensing revenues. Other matters We generally provide an assurance warranty that our products will substantially conform to the published specifications for twelve months from the date of shipment. In some case the warranty period may be longer than twelve months. We do not separately price or sell the assurance warranty. Our liability is limited to either a credit equal to the purchase price or replacement of the defective part. Returns under warranty have historically been immaterial. As such, we do not record a specific warranty reserve or consider activities related to such warranty, if any, to be a separate performance obligation. Under the practical expedient provided by ASC 340, we generally expense sales commissions when incurred because the amortization period would have been less than one year. We record these costs within selling, general and administrative expenses. Substantially all of our performance obligations are satisfied within twelve months. Accordingly, under the optional exemption provided by ASC 606, we do not disclose revenues allocated to future performance obligations of partially completed contracts. We do not have any material contract liabilities recorded as of June 30, 2018 . Contract assets relate to our rights to consideration for licenses and royalties due to us as a member of the HDMI consortium, with collection dependent on events other than the passage of time, such as collection of licenses and royalties from customers by the HDMI licensing agent and the finalization of a new royalty sharing agreement. The contract assets are recorded in Prepaid expenses and other current assets in our Consolidated Balance Sheets, and they are transferred to Accounts receivable when the rights become unconditional. As a result of the signing of the HDMI Founders royalty sharing agreement for 2017, we received $6.4 million in cash during the second quarter of fiscal 2018 for fiscal 2017 HDMI royalties. Collection of this amount had no impact on our reported revenues and was recorded as a reduction to the contract asset. The following table summarizes the activity for our contract assets during the first six months of fiscal 2018: (In thousands) Balance as of December 31, 2017 $ 7,515 Revenues recorded during the period 4,711 Transferred to accounts receivable or collected (7,754 ) Balance as of June 30, 2018 $ 4,472 Disaggregation of revenue The following tables provide information about revenue from contracts with customers disaggregated by major class of revenue and by geographical market, based on ship-to location of the end customer, where available, and ship-to location of distributor otherwise: Major Class of Revenue Three Months Ended Six Months Ended (In thousands) June 30, July 1, June 30, July 1, Product revenue - Distributors 88,790 71,570 174,747 145,650 Product revenue - Direct 9,504 11,598 18,656 30,187 Licensing and services revenue 4,421 10,969 7,935 22,887 Total revenue 102,715 94,137 201,338 198,724 Revenue by Geographical Market Three Months Ended Six Months Ended (In thousands) June 30, July 1, June 30, July 1, Asia 77,899 64,946 149,820 138,404 Europe 12,162 10,579 24,304 21,659 Americas 12,654 18,612 27,214 38,661 Total revenue 102,715 94,137 201,338 198,724 * As noted above, prior period amounts have not been adjusted under the modified retrospective method of adopting ASC 606 and, therefore, are presented under GAAP in effect during that period.

Net Loss per Share

Net Loss per Share	6 Months Ended
	Jun. 30, 2018
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 in the following table: Three Months Ended Six Months Ended (in thousands, except per share data) June 30, July 1, June 30, July 1, Net loss $ (20,223 ) $ (13,022 ) $ (26,175 ) $ (20,297 ) Shares used in basic and diluted net loss per share 124,843 122,390 124,460 122,095 Basic and diluted net loss per share $ (0.16 ) $ (0.11 ) $ (0.21 ) $ (0.17 ) 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: Three Months Ended Six Months Ended (in thousands) June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Stock options, RSUs, and ESPP shares excluded as they are antidilutive 9,169 6,000 9,376 5,946 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 or when the Company is in a net loss position, as the effects would reduce the loss per share. Stock options, RSUs, and ESPP shares that are antidilutive at June 30, 2018 could become dilutive in the future.

Marketable Securities

Marketable Securities	6 Months Ended
	Jun. 30, 2018
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. In the periods presented, our Short-term marketable securities consisted of government bonds with contractual maturities of up to two years. The following table summarizes the remaining maturities of our Short-term marketable securities at fair value: (In thousands) June 30, December 30, Short-term marketable securities: Maturing within one year $ 4,990 $ 4,982 Maturing between one and two years 7,096 — Total marketable securities $ 12,086 $ 4,982

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value measurements as of Fair value measurements as of June 30, 2018 December 30, 2017 (In thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Short-term marketable securities $ 12,086 $ 12,086 $ — $ — $ 4,982 $ 4,982 $ — $ — Foreign currency forward exchange contracts, net 36 — 36 — 77 — 77 — Total fair value of financial instruments $ 12,122 $ 12,086 $ 36 $ — $ 5,059 $ 4,982 $ 77 $ — 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 - Basis of Presentation and Significant Accounting Policies." There were no transfers between any of the levels during the first six months of fiscal 2018 or 2017 . In accordance with ASC 320, “ Investments-Debt and Equity Securities ,” we recorded an unrealized gain of less than $0.1 million during the six months ended June 30, 2018 and an unrealized loss of approximately $0.1 million during the six months ended July 1, 2017 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 .

Discontinuation of Business Uni

Discontinuation of Business Unit	6 Months Ended
	Jun. 30, 2018
Discontinued Operations and Disposal Groups [Abstract]
Discontinuation of Business Unit	Discontinuation of Business Unit In the second quarter of 2018, we made the strategic decision to discontinue our millimeter wave business, which included certain assets related to our Wireless products, and our Board of Directors approved a related internal restructuring plan. This action is designed to improve profitability, reduce our infrastructure costs, and refocus on our core business activities. Approximately $24.3 million of total expense has been recorded in our Consolidated Statements of Operations through June 30, 2018, including $11.9 million charged to Impairment of acquired intangible assets, $8.3 million charged to Cost of product revenue for inventory reserves, and $4.1 million charged to Restructuring charges for severance and other personnel costs, and for other asset restructuring. Notes 7, 8 and 13 provide further details on these charges and costs, all of which are summarized above.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Inventories	Inventories (In thousands) June 30, December 30, Work in progress $ 44,387 $ 49,642 Finished goods 21,199 30,261 Total inventories $ 65,586 $ 79,903 In the second quarter of 2018, we made the strategic decision to discontinue our millimeter wave business, which included certain wireless technology inventory items. As such, specific inventory reserves of $8.3 million were taken on product lines that are being eliminated with the discontinuation of our millimeter wave business and were charged to Cost of product revenue in the Consolidated Statements of Operations.

Intangible Assets

Intangible Assets	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible Assets In connection with our acquisitions of Silicon Image, Inc. in March 2015 and SiliconBlue Technologies, Inc. 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, we licensed additional third-party technology. We monitor the carrying value of our intangible assets for potential impairment and test the recoverability of such assets whenever triggering 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 second quarter of 2018, we made the strategic decision to discontinue our millimeter wave business, which included certain wireless technology intangible assets. We determined that this action constituted an impairment indicator related to certain of 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 fully impaired as of June 30, 2018, and we recorded an impairment charge of $11.9 million in the Consolidated Statements of Operations. No impairment charges related to intangible assets were recorded for the first six months of fiscal 2017 as no indicators of impairment were present. In 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 . On our Consolidated Balance Sheets at June 30, 2018 and December 30, 2017 , Intangible assets, net are shown net of accumulated amortization of $110.7 million and $100.3 million , respectively. We recorded amortization expense related to intangible assets on the Consolidated Statements of Operations as presented in the following table: Three Months Ended Six Months Ended (In thousands) June 30, July 1, June 30, July 1, Research and development $ 123 $ 141 $ 250 $ 314 Amortization of acquired intangible assets 4,523 8,737 10,159 17,251 $ 4,646 $ 8,878 $ 10,409 $ 17,565

Cost Method Investment and Coll

Cost Method Investment and Collaborative Arrangement	6 Months Ended
	Jun. 30, 2018
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 2017, we signed new development and licensing contracts with the investee, and the investee incurred 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, 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. Through June 30, 2018 , 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 approximately $2.3 million . At June 30, 2018 , our maximum exposure to loss as a result of involvement with this VIE totals $4.7 million , which is comprised of the $2.3 million carrying value of our investment plus $2.4 million of prepaid royalties further described in the section below on the related collaborative arrangement. We assessed this investment for impairment as of June 30, 2018 by applying a fair value analysis using a revenue multiple approach and concluded that no impairment adjustment was necessary during the second quarter of fiscal 2018. For the second quarter and first six months of fiscal 2017, approximately $0.2 million and $0.5 million , respectively, of impairment of a cost method investment is included in Other (expense) income, net on our Consolidated Statements of Operations. Collaborative Arrangement Concurrent with the initiation of the investment discussed above, we entered into a collaborative arrangement with the investee during fiscal 2015. 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 quarterly 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. In both the first and second quarters of fiscal 2018, we made quarterly payments of $0.9 million . As of June 30, 2018, expected future royalty prepayments are as follows: Fiscal year (in thousands) 2018 (remaining 6 months) $ 1,750 2019 $ 5,000 At June 30, 2018, royalties prepaid to the investee total $2.4 million . Of this amount, approximately $0.4 million is included in Prepaid expenses and other current assets, and approximately $2.0 million is included in Other long-term assets in our Consolidated Balance Sheets. We have not recorded a liability related to the future payments, as the agreement is cancelable.
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 2017, we signed new development and licensing contracts with the investee, and the investee incurred 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, 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. Through June 30, 2018 , 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 approximately $2.3 million . At June 30, 2018 , our maximum exposure to loss as a result of involvement with this VIE totals $4.7 million , which is comprised of the $2.3 million carrying value of our investment plus $2.4 million of prepaid royalties further described in the section below on the related collaborative arrangement. We assessed this investment for impairment as of June 30, 2018 by applying a fair value analysis using a revenue multiple approach and concluded that no impairment adjustment was necessary during the second quarter of fiscal 2018. For the second quarter and first six months of fiscal 2017, approximately $0.2 million and $0.5 million , respectively, of impairment of a cost method investment is included in Other (expense) income, net on our Consolidated Statements of Operations. Collaborative Arrangement Concurrent with the initiation of the investment discussed above, we entered into a collaborative arrangement with the investee during fiscal 2015. 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 quarterly 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. In both the first and second quarters of fiscal 2018, we made quarterly payments of $0.9 million . As of June 30, 2018, expected future royalty prepayments are as follows: Fiscal year (in thousands) 2018 (remaining 6 months) $ 1,750 2019 $ 5,000 At June 30, 2018, royalties prepaid to the investee total $2.4 million . Of this amount, approximately $0.4 million is included in Prepaid expenses and other current assets, and approximately $2.0 million is included in Other long-term assets in our Consolidated Balance Sheets. We have not recorded a liability related to the future payments, as the agreement is cancelable.

Accounts Payable and Accrued Ex

Accounts Payable and Accrued Expenses	6 Months Ended
	Jun. 30, 2018
Payables and Accruals [Abstract]
Accounts Payable and Accrued Expenses	Accounts Payable and Accrued Expenses Included in Accounts payable and accrued expenses are the following balances: (In thousands) June 30, December 30, Trade accounts payable $ 30,407 $ 35,350 Liability for non-cancelable contracts 7,926 7,232 Restructuring 4,778 2,447 Deferred rent 3,832 3,834 Other accrued expenses 6,557 5,542 Total accounts payable and accrued expenses $ 53,500 $ 54,405

Changes in Stockholders' Equity

Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss	6 Months Ended
	Jun. 30, 2018
Stockholders' Equity Note [Abstract]
Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss	Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss (In thousands) Common stock Additional Paid-in capital Accumulated deficit Accumulated other comprehensive loss Total Balances, December 30, 2017 $ 1,239 $ 695,768 $ (477,862 ) $ (1,452 ) $ 217,693 Net loss for the six months ended June 30, 2018 — — (26,175 ) — (26,175 ) Unrealized gain related to marketable securities, net of tax — — — 2 2 Recognized loss on redemption of marketable securities, previously unrealized — — — (1 ) (1 ) Translation adjustments, net of tax — — — (540 ) (540 ) Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax 17 5,023 — — 5,040 Stock-based compensation related to stock options, ESPP and RSUs — 7,200 — — 7,200 Accounting method transition adjustment (1) — — 27,401 — 27,401 Balances, June 30, 2018 $ 1,256 $ 707,991 $ (476,636 ) $ (1,991 ) $ 230,620 (1) As of the beginning of fiscal 2018, we adopted ASC 606, Revenue from Contracts With Customers, using the modified retrospective transition method. As a result of this adoption, we recorded a cumulative-effect adjustment to Accumulated Deficit, as shown in the table above.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For the three months ended June 30, 2018 and July 1, 2017 , we recorded an income tax expense of approximately $1.3 million and less than $0.1 million , respectively. For the six months ended June 30, 2018 and July 1, 2017 , we recorded an income tax expense of approximately $1.9 million and $0.6 million , respectively. The income tax expenses for the three and six month periods ended June 30, 2018 and July 1, 2017 represent tax at the federal, state, and foreign statutory tax rates adjusted for withholding taxes, changes in uncertain tax positions, changes in the U.S. valuation allowance, as well as other non-deductible items in the United States and foreign jurisdictions. The difference between the U.S. federal statutory tax rate of 21% and our effective tax rate for the three and six months ended June 30, 2018 results from an increase in the valuation allowance that offsets expected tax benefit in the United States, foreign rate differential and withholding taxes, zero tax rate in Bermuda which results in no tax benefit for the pretax loss in Bermuda, and discrete benefit from the release of uncertain tax positions. Through June 30, 2018 , 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. 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 returns are not under examination in any jurisdiction. We believe that 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. The $1.6 million potential change would represent a decrease in unrecognized tax benefits, comprised of items related to tax filings for years that will no longer be subject to examination under expiring statutes of limitations. 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 2037 . We had state NOL carryforwards (pretax) of approximately $162.9 million that expire at various dates from 2018 through 2037 . We also had federal and state credit carryforwards of $50.2 million and $59.2 million , respectively. Of the total $59.2 million state credit carryforwards, $57.9 million do not expire. The remaining credits expire at various dates from 2018 through 2037 . Our liability for uncertain tax positions (including penalties and interest) was $26.6 million and $26.9 million at June 30, 2018 and December 30, 2017 , 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 $24.5 million is netted against deferred tax assets. 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 carryforwards. 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. U.S. tax reform required a deemed repatriation of deferred foreign earnings as of December 30, 2017 and no future U.S. taxes should 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 utilization of NOL carryforwards. Foreign earnings may be subject to withholding taxes if they are distributed and repatriated in the United States. In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 ("SAB 118"). The SEC issued SAB 118 on December 22, 2017 to address the situation where an SEC reporting company did not have all the necessary information available or analyzed to complete their accounting for the income tax effects of the 2017 Tax Act in the period of enactment. Due to the lack of authoritative guidance issued, complexity, and enactment timing of the 2017 Tax Act, we 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” not-to-exceed one year allowed under SAB 118. As of June 30, 2018 , we have not completed our accounting for the tax effect of the 2017 Tax Act, and we have made no change to the provisional amounts recorded at December 30, 2017 . 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	6 Months Ended
	Jun. 30, 2018
Restructuring and Related Activities [Abstract]
Restructuring	Restructuring In June 2018, our Board of Directors approved an internal restructuring plan (the "June 2018 Plan"), which included the discontinuation of our millimeter wave business and the use of certain assets related to our Wireless products, and a workforce reduction. The June 2018 Plan is designed to reduce our infrastructure costs and refocus on our core business activities. Approximately $4.1 million of restructuring expense has been incurred through June 30, 2018 under the June 2018 Plan, and we believe this amount approximates the total costs under the plan and that this plan is substantially complete. In June 2017, our Board of Directors approved an 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. Under this plan, approximately $0.3 million and $2.4 million of expense was incurred during the three months ended June 30, 2018 and July 1, 2017 , respectively, and approximately $1.3 million and $2.4 million of expense was incurred during the six months ended June 30, 2018 and July 1, 2017 , respectively. Approximately $9.3 million of total expense has been incurred through June 30, 2018 under the June 2017 Plan. We expect the total cost to be approximately $8.0 million to $12.0 million and that it will be substantially completed by the end of the fourth quarter of fiscal 2018. In September 2015, we implemented a reduction of our worldwide workforce (the "September 2015 Reduction") separate from the March 2015 Plan described below. 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 that we do not expect to be material, which we will expense as incurred. Under this reduction, no expense and approximately $0.5 million of credit was incurred during the three months ended June 30, 2018 and July 1, 2017 , respectively, and no expense and approximately $0.7 million of credit was incurred during the six months ended June 30, 2018 and July 1, 2017 , respectively. Approximately $7.2 million of total expense has been incurred through June 30, 2018 under the September 2015 Reduction, and we believe this amount approximates the total costs under the plan. 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 we will expense as incurred. Under this plan, no expense and approximately $0.4 million of credit was incurred during the three months ended June 30, 2018 and July 1, 2017 , respectively, and no expense and approximately $0.1 million of credit was incurred during the six months ended June 30, 2018 and July 1, 2017 , respectively. Approximately $20.5 million of total expense has been incurred through June 30, 2018 under the March 2015 Plan, and we believe this amount approximates the total costs under the plan. Substantially all of the expenses recorded in the first quarter of fiscal 2018, and in the second quarter and first six months of fiscal 2017 were under the June 2017 Plan. Substantially all of the expenses in the second quarter of fiscal 2018 were under the June 2018 Plan. These expenses were recorded to Restructuring charges on our Consolidated Statements of Operations. The restructuring accrual balance is presented in Accounts payable and accrued expenses (includes restructuring) on our Consolidated Balance Sheets . The following table displays the combined activity related to the restructuring actions described above: (In thousands) Severance & related * Lease Termination & Fixed Assets Software Contracts & Engineering Tools ** Other Total Balance at December 31, 2016 $ 801 $ 1,036 $ 25 $ 12 $ 1,874 Restructuring charges 1,276 57 — 309 1,642 Costs paid or otherwise settled (52 ) (616 ) (25 ) (301 ) (994 ) Balance at July 1, 2017 $ 2,025 $ 477 $ — $ 20 $ 2,522 Balance at December 30, 2017 $ 1,192 $ 870 $ 360 $ 25 $ 2,447 Restructuring charges 3,964 440 913 88 5,405 Costs paid or otherwise settled (1,443 ) (593 ) (968 ) (70 ) (3,074 ) Balance at June 30, 2018 $ 3,713 $ 717 $ 305 $ 43 $ 4,778 * Includes employee relocation costs and retention bonuses ** Includes cancellation of contracts

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2018
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 6.92% . 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 first quarter of fiscal 2018 , we made a required quarterly installment payment of $0.9 million . In the second quarter of fiscal 2018 , we made a required excess cash flow payment of $0.2 million , a required quarterly installment payment of $0.9 million , and an additional $10.0 million principal payment. Over the next twelve months, our principal payments will be comprised mainly of regular quarterly installments and a required annual excess cash flow payment. While the Credit Agreement does not contain financial covenants, it does contain informational covenants and certain restrictive covenants, including limitations on liens, mergers and consolidations, sales of assets, payment of dividends, and indebtedness. We were in compliance with all such covenants in all material respects at June 30, 2018 . 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) June 30, December 30, Principal amount $ 294,783 $ 306,791 Unamortized original issue discount and debt costs (4,558 ) (5,616 ) Less: Current portion of long-term debt (24,526 ) (1,508 ) Long-term debt $ 265,699 $ 299,667 Interest expense related to the Term Loan was included in Interest expense on our Consolidated Statements of Operations as follows: Three Months Ended Six Months Ended (In thousands) June 30, July 1, June 30, July 1, Contractual interest $ 4,762 $ 4,167 $ 9,290 $ 8,710 Amortization of debt issuance costs and discount 551 421 1,058 1,354 Total interest expense related to the Term Loan $ 5,313 $ 4,588 $ 10,348 $ 10,064 As of June 30, 2018 , expected future principal payments on the Term Loan were as follows: Fiscal year (in thousands) 2018 (remaining 6 months) $ 1,750 2019 26,415 2020 44,204 2021 222,414 $ 294,783

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation Total stock-based compensation expense included in our Consolidated Statements of Operations is presented in the following table: Three Months Ended Six Months Ended (In thousands) June 30, July 1, June 30, July 1, Cost of products sold $ 196 $ 180 $ 433 $ 408 Research and development 837 1,299 2,044 3,149 Selling, general, and administrative 1,367 1,450 4,723 3,215 Total stock-based compensation $ 2,400 $ 2,929 $ 7,200 $ 6,772 The stock-based compensation expense included in Selling, general, and administrative expense for the first six months of fiscal 2018 includes approximately $1.4 million of additional one-time expense for acceleration of stock compensation under the CEO separation agreement executed with our former CEO during the first quarter of fiscal 2018. 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 period and can 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 in the PHLX Semiconductor Sector Index over a two year period. Under the terms of the grants, executives will receive the target amount if the Company’s TSR relative to that of the Index achieves or exceeds the 50 th percentile. Executives may receive 200% if the Company’s TSR exceeds the 75 th percentile. No vesting occurs if the Company’s TSR does not exceed the 25 th percentile. 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 during the first six months of fiscal 2018: (Shares in thousands) Unvested Vested Total Balance, December 30, 2017 707 83 790 Vested (31 ) 31 — Exercised — (9 ) (9 ) Canceled (428 ) (10 ) (438 ) Balance, June 30, 2018 248 95 343 We incurred stock compensation expense related to these market condition awards of $0.2 million and $0.5 million in the second quarter and first six months, respectively, of fiscal 2018 and less than $0.1 million and $0.3 million in the second quarter and first six months, respectively, of fiscal 2017 , which is recorded as a component of total stock-based compensation expense.

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2018
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 June 30, 2018 . Due to the uncertainty in both the outcome and the estimated range of any findings, no liability has been accrued as of June 30, 2018 . 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 .

Segment and Geographic Informat

Segment and Geographic Information	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Segment and Geographic Information	Segment and Geographic Information Segment Information In the three and six month periods ended June 30, 2018 and July 1, 2017 , respectively, Lattice had one operating segment: the core Lattice business, which includes semiconductor devices, evaluation boards, development hardware, and related intellectual property licensing and sales. Geographic Information Our revenue by major geographic area is presented in "Note 2 - Revenue from Contracts with Customers". Our Property and equipment, net by country at the end of each period was as follows: (In thousands) June 30, 2018 December 30, 2017 United States $ 27,975 $ 30,338 China 2,714 4,632 Philippines 3,664 3,883 Taiwan 1,004 958 Japan 361 313 Other 700 299 Total foreign property and equipment, net 8,443 10,085 Total property and equipment, net $ 36,418 $ 40,423

Basis of Presentation and Sig24

Basis of Presentation and Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Principles of Consolidation and Presentation	Principles of Consolidation and Presentation The accompanying Consolidated Financial Statements include the accounts of Lattice and its subsidiaries after the elimination of all intercompany balances and transactions.
Reclassifications	Reclassifications Certain amounts in the prior fiscal year 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 $0.2 million and $0.5 million for the second quarter and first six months, respectively, of fiscal 2017. We have reclassified the prior year loss to Other (expense) income, net on our Consolidated Statements of Operations 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. GAAP requires management to make estimates and assumptions that affect the reported amounts and classification of assets, such as marketable securities, accounts receivable, contract assets (included in prepaid expenses and other current assets), inventory, goodwill (including the assessment of reporting units), intangible assets, current and deferred income taxes, accrued liabilities (including restructuring charges and bonus arrangements), 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	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.
Marketable Securities	We account for marketable securities as available-for-sale investments, as defined by U.S. GAAP, and record unrealized gains or losses to Accumulated other comprehensive loss on our Consolidated Balance Sheets , unless losses are considered other than temporary, in which case, those are recorded directly to the Consolidated Statements of Operations and 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 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 "Note 11 - Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss").
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: June 30, 2018 December 30, 2017 Total cost of contracts for Japanese yen (in thousands) $ 1,031 $ 2,204 Number of contracts 1 2 Settlement month June 2019 June 2018 Although these hedges mitigate our foreign currency exchange rate exposure from an economic perspective, they were not designated as "effective" hedges for accounting purposes and as such are adjusted to fair value through Other (expense) income, net , with a gain of less than $0.1 million for the fiscal quarter ended June 30, 2018 and a gain of approximately $0.1 million for the fiscal quarter ended December 30, 2017 . We do not hold or issue derivative financial instruments for trading or speculative purposes.
Concentration Risk	Concentration Risk Potential exposure to concentration risk may impact revenue, trade receivables, marketable securities, and supply of wafers for our products. Customer concentration risk may impact revenue. The percentage of total revenue, with end customers known, attributable to our top five end customers and largest end customer is presented in the following table: Three Months Ended Six Months Ended June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Revenue attributable to top five end customers 17 % 27 % 17 % 32 % Revenue attributable to largest end customer 5 % 9 % 5 % 10 % No other end customer accounted for more than 10% of total revenue during these periods. We did not have enough information to assign end customers to approximately $4.1 million and $12.3 million of revenue recognized for the second quarter and first six months, respectively, of fiscal 2018 on shipments to distributors that have not sold through to end customers. Distributors have historically accounted for a significant portion of our total revenue. Revenue attributable to distributors as a percentage of total revenue is presented in the following table: Three Months Ended Six Months Ended June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Revenue attributable to distributors* 86 % 76 % 87 % 73 % * During the first quarter of 2018, we updated our channel categories to group all forms of distribution into a single channel. Prior periods have been reclassified to match the current period presentation. Our two largest distributor groups, Arrow Electronics, Inc. ("Arrow") and the Weikeng Group ("Weikeng"), also account for a substantial portion of our net trade receivables. At June 30, 2018 and December 30, 2017 , Arrow accounted for 73% and 66% , respectively, and Weikeng accounted for 13% and 0% , respectively, of net trade receivables. No other distributor group or end customer accounted for more than 10% of net 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 at both June 30, 2018 and December 30, 2017 . 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, and bad debt expense was negligible for all periods presented. 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 4 - Marketable Securities" 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, among other factors.
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	quity investments in privately held companies, considered VIE's, 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 9 - Cost Method Investment and Collaborative Arrangement"). Upon disposition of these investments, the specific identification method is used to determine the cost basis in computing realized gains or losses.
Goodwill	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 instead is 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.
New Accounting Pronouncements	New Accounting Pronouncements Recently Issued Accounting Standards 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. 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. ASU 2016-02 initially required entities to adopt the standard using a modified retrospective transition method. In July 2018, the FASB issued certain updates including ASU 2018-11, Leases (Topic 842) Targeted Improvements , which provide transition practical expedients allowing companies to adopt the new standard with a cumulative effect adjustment as of the beginning of the year of adoption with prior year comparative financial information and disclosures remaining as previously reported. We are currently evaluating the optional transition practical expedients, as well as the impact of the new guidance 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. 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. In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The new guidance allows an entity to reclassify the income tax effects of the Public Law 115-97 "An Act to Provide Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018", commonly known as the Tax Cuts and Job Act of 2017 (the "2017 Tax Act") on items within accumulated other comprehensive income/(loss) to retained earnings. This new guidance is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The new standard must be adopted retrospectively to each period in which a taxpayer recognizes the effect of the change in the U.S. federal corporate income tax rate from the 2017 Tax Act. We are currently assessing the impact of ASU 2018-02 on our consolidated financial statements and related disclosures. In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting , which largely aligns the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees. The ASU also clarifies that any share-based payment issued to a customer should be evaluated under ASC 606, Revenue from Contracts with Customers . The ASU requires a modified retrospective transition approach. This new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. We do not expect the adoption of this accounting standard update to have a material impact on our consolidated financial statements.

Basis of Presentation and Sig25

Basis of Presentation and Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2018
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: June 30, 2018 December 30, 2017 Total cost of contracts for Japanese yen (in thousands) $ 1,031 $ 2,204 Number of contracts 1 2 Settlement month June 2019 June 2018
Schedules of Revenue Concentration of Risk	Revenue attributable to distributors as a percentage of total revenue is presented in the following table: Three Months Ended Six Months Ended June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Revenue attributable to distributors* 86 % 76 % 87 % 73 % * During the first quarter of 2018, we updated our channel categories to group all forms of distribution into a single channel. Prior periods have been reclassified to match the current period presentation. The percentage of total revenue, with end customers known, attributable to our top five end customers and largest end customer is presented in the following table: Three Months Ended Six Months Ended June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Revenue attributable to top five end customers 17 % 27 % 17 % 32 % Revenue attributable to largest end customer 5 % 9 % 5 % 10 %

Revenue from Contracts with C26

Revenue from Contracts with Customers (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Schedule of New Accounting Pronouncements	Such information is as follows: Condensed Consolidated Statement of Operations Three months ended June 30, 2018 Six months ended June 30, 2018 (In thousands, except per share data) As reported under new standard Adjustments Pro forma as if previous standard was in effect As reported under new standard Adjustments Pro forma as if previous standard was in effect Product revenue 98,294 (4,084 ) 94,210 193,403 (12,349 ) 181,054 Licensing and services revenue 4,421 4,399 8,820 7,935 3,187 11,122 Cost of product revenue 52,208 (1,725 ) 50,483 94,310 (5,544 ) 88,766 Net (loss) income (20,223 ) 2,040 (18,183 ) (26,175 ) (3,618 ) (29,793 ) Net (loss) income per share, basic and diluted (0.16 ) 0.01 (0.15 ) (0.21 ) (0.03 ) (0.24 ) Condensed Consolidated Balance Sheets As of June 30, 2018 (In thousands) As reported under new standard Adjustments Pro forma as if previous standard was in effect Accounts receivable, net of allowance for doubtful accounts 76,566 9,561 86,127 Inventories 65,586 (615 ) 64,971 Prepaid expenses and other current assets 21,729 (4,472 ) 17,257 Total assets 623,204 4,474 627,678 Accounts payable and accrued expenses (includes restructuring) 53,500 (28 ) 53,472 Deferred income and allowances on sales to distributors — 35,521 35,521 Accumulated deficit (476,636 ) (31,019 ) (507,655 ) Total liabilities and stockholders' equity 623,204 4,474 627,678 Condensed Consolidated Statement of Cash Flows Six months ended June 30, 2018 (In thousands) As reported under new standard Adjustments Pro forma as if previous standard was in effect Cash flows from operating activities: Net loss (26,175 ) (3,618 ) (29,793 ) Accounts receivable, net (19,654 ) (11,369 ) (31,023 ) Inventories 14,687 245 14,932 Prepaid expenses and other assets (7,891 ) (3,043 ) (10,934 ) Accounts payable and accrued expenses (includes restructuring) 7,095 (486 ) 6,609 Deferred income and allowances on sales to distributors — 18,271 18,271
Contracts with Customers	The following table summarizes the activity for our contract assets during the first six months of fiscal 2018: (In thousands) Balance as of December 31, 2017 $ 7,515 Revenues recorded during the period 4,711 Transferred to accounts receivable or collected (7,754 ) Balance as of June 30, 2018 $ 4,472
Disaggregation of revenue	The following tables provide information about revenue from contracts with customers disaggregated by major class of revenue and by geographical market, based on ship-to location of the end customer, where available, and ship-to location of distributor otherwise: Major Class of Revenue Three Months Ended Six Months Ended (In thousands) June 30, July 1, June 30, July 1, Product revenue - Distributors 88,790 71,570 174,747 145,650 Product revenue - Direct 9,504 11,598 18,656 30,187 Licensing and services revenue 4,421 10,969 7,935 22,887 Total revenue 102,715 94,137 201,338 198,724 Revenue by Geographical Market Three Months Ended Six Months Ended (In thousands) June 30, July 1, June 30, July 1, Asia 77,899 64,946 149,820 138,404 Europe 12,162 10,579 24,304 21,659 Americas 12,654 18,612 27,214 38,661 Total revenue 102,715 94,137 201,338 198,724 * As noted above, prior period amounts have not been adjusted under the modified retrospective method of adopting ASC 606 and, therefore, are presented under GAAP in effect during that period.

Net Loss per Share (Tables)

Net Loss per Share (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Schedule of Earnings Per Share Reconciliation	A summary of basic and diluted net loss per share is presented in the following table: Three Months Ended Six Months Ended (in thousands, except per share data) June 30, July 1, June 30, July 1, Net loss $ (20,223 ) $ (13,022 ) $ (26,175 ) $ (20,297 ) Shares used in basic and diluted net loss per share 124,843 122,390 124,460 122,095 Basic and diluted net loss per share $ (0.16 ) $ (0.11 ) $ (0.21 ) $ (0.17 )
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: Three Months Ended Six Months Ended (in thousands) June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Stock options, RSUs, and ESPP shares excluded as they are antidilutive 9,169 6,000 9,376 5,946

Marketable Securities (Tables)

Marketable Securities (Tables)	6 Months Ended
	Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Schedule of Marketable Securities	The following table summarizes the remaining maturities of our Short-term marketable securities at fair value: (In thousands) June 30, December 30, Short-term marketable securities: Maturing within one year $ 4,990 $ 4,982 Maturing between one and two years 7,096 — Total marketable securities $ 12,086 $ 4,982

Fair Value of Financial Instr29

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Schedule of Fair Value of Financial Instruments	Fair value measurements as of Fair value measurements as of June 30, 2018 December 30, 2017 (In thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Short-term marketable securities $ 12,086 $ 12,086 $ — $ — $ 4,982 $ 4,982 $ — $ — Foreign currency forward exchange contracts, net 36 — 36 — 77 — 77 — Total fair value of financial instruments $ 12,122 $ 12,086 $ 36 $ — $ 5,059 $ 4,982 $ 77 $ —

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Schedule of Inventories	(In thousands) June 30, December 30, Work in progress $ 44,387 $ 49,642 Finished goods 21,199 30,261 Total inventories $ 65,586 $ 79,903

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
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: Three Months Ended Six Months Ended (In thousands) June 30, July 1, June 30, July 1, Research and development $ 123 $ 141 $ 250 $ 314 Amortization of acquired intangible assets 4,523 8,737 10,159 17,251 $ 4,646 $ 8,878 $ 10,409 $ 17,565

Cost Method Investment and Co32

Cost Method Investment and Collaborative Arrangement (Tables)	6 Months Ended
	Jun. 30, 2018
Investments, All Other Investments [Abstract]
Schedule Of Periodic Payments For Prepaid Royalties	As of June 30, 2018, expected future royalty prepayments are as follows: Fiscal year (in thousands) 2018 (remaining 6 months) $ 1,750 2019 $ 5,000

Accounts Payable and Accrued 33

Accounts Payable and Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2018
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Liabilities	Included in Accounts payable and accrued expenses are the following balances: (In thousands) June 30, December 30, Trade accounts payable $ 30,407 $ 35,350 Liability for non-cancelable contracts 7,926 7,232 Restructuring 4,778 2,447 Deferred rent 3,832 3,834 Other accrued expenses 6,557 5,542 Total accounts payable and accrued expenses $ 53,500 $ 54,405

Changes in Stockholders' Equi34

Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Jun. 30, 2018
Stockholders' Equity Note [Abstract]
Schedule of Changes in Stockholders' Equity and Accumulated other Comprehensive Loss	(In thousands) Common stock Additional Paid-in capital Accumulated deficit Accumulated other comprehensive loss Total Balances, December 30, 2017 $ 1,239 $ 695,768 $ (477,862 ) $ (1,452 ) $ 217,693 Net loss for the six months ended June 30, 2018 — — (26,175 ) — (26,175 ) Unrealized gain related to marketable securities, net of tax — — — 2 2 Recognized loss on redemption of marketable securities, previously unrealized — — — (1 ) (1 ) Translation adjustments, net of tax — — — (540 ) (540 ) Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax 17 5,023 — — 5,040 Stock-based compensation related to stock options, ESPP and RSUs — 7,200 — — 7,200 Accounting method transition adjustment (1) — — 27,401 — 27,401 Balances, June 30, 2018 $ 1,256 $ 707,991 $ (476,636 ) $ (1,991 ) $ 230,620 (1) As of the beginning of fiscal 2018, we adopted ASC 606, Revenue from Contracts With Customers, using the modified retrospective transition method. As a result of this adoption, we recorded a cumulative-effect adjustment to Accumulated Deficit, as shown in the table above.

Restructuring (Tables)

Restructuring (Tables)	6 Months Ended
	Jun. 30, 2018
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Reserve by Type of Cost	The following table displays the combined activity related to the restructuring actions described above: (In thousands) Severance & related * Lease Termination & Fixed Assets Software Contracts & Engineering Tools ** Other Total Balance at December 31, 2016 $ 801 $ 1,036 $ 25 $ 12 $ 1,874 Restructuring charges 1,276 57 — 309 1,642 Costs paid or otherwise settled (52 ) (616 ) (25 ) (301 ) (994 ) Balance at July 1, 2017 $ 2,025 $ 477 $ — $ 20 $ 2,522 Balance at December 30, 2017 $ 1,192 $ 870 $ 360 $ 25 $ 2,447 Restructuring charges 3,964 440 913 88 5,405 Costs paid or otherwise settled (1,443 ) (593 ) (968 ) (70 ) (3,074 ) Balance at June 30, 2018 $ 3,713 $ 717 $ 305 $ 43 $ 4,778 * Includes employee relocation costs and retention bonuses ** Includes cancellation of contracts

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2018
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) June 30, December 30, Principal amount $ 294,783 $ 306,791 Unamortized original issue discount and debt costs (4,558 ) (5,616 ) Less: Current portion of long-term debt (24,526 ) (1,508 ) Long-term debt $ 265,699 $ 299,667
Interest Income and Interest Expense Disclosure	Interest expense related to the Term Loan was included in Interest expense on our Consolidated Statements of Operations as follows: Three Months Ended Six Months Ended (In thousands) June 30, July 1, June 30, July 1, Contractual interest $ 4,762 $ 4,167 $ 9,290 $ 8,710 Amortization of debt issuance costs and discount 551 421 1,058 1,354 Total interest expense related to the Term Loan $ 5,313 $ 4,588 $ 10,348 $ 10,064
Schedule of Debt	As of June 30, 2018 , expected future principal payments on the Term Loan were as follows: Fiscal year (in thousands) 2018 (remaining 6 months) $ 1,750 2019 26,415 2020 44,204 2021 222,414 $ 294,783

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2018
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: Three Months Ended Six Months Ended (In thousands) June 30, July 1, June 30, July 1, Cost of products sold $ 196 $ 180 $ 433 $ 408 Research and development 837 1,299 2,044 3,149 Selling, general, and administrative 1,367 1,450 4,723 3,215 Total stock-based compensation $ 2,400 $ 2,929 $ 7,200 $ 6,772
Share-based Compensation, Stock Options, Activity	The following table summarizes the activity for our stock options with a market condition during the first six months of fiscal 2018: (Shares in thousands) Unvested Vested Total Balance, December 30, 2017 707 83 790 Vested (31 ) 31 — Exercised — (9 ) (9 ) Canceled (428 ) (10 ) (438 ) Balance, June 30, 2018 248 95 343

Segment and Geographic Inform38

Segment and Geographic Information (Tables)	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Schedule of Property and Equipment by Country	Our Property and equipment, net by country at the end of each period was as follows: (In thousands) June 30, 2018 December 30, 2017 United States $ 27,975 $ 30,338 China 2,714 4,632 Philippines 3,664 3,883 Taiwan 1,004 958 Japan 361 313 Other 700 299 Total foreign property and equipment, net 8,443 10,085 Total property and equipment, net $ 36,418 $ 40,423

Basis of Presentation and Sig39

Basis of Presentation and Significant Accounting Policies (Reclassifications) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Accounting Policies [Abstract]
Impairment of cost-method investment	$ 0	$ 200,000	$ 0	$ 493,000

Basis of Presentation and Sig40

Basis of Presentation and Significant Accounting Policies (Derivative Financial Instruments) (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Dec. 30, 2017USD ($)Contract	Jun. 30, 2018USD ($)Contract
General Discussion of Derivative Instruments and Hedging Activities [Abstract]
Gain on foreign exchange contracts adjusted to fair value through earnings - less than	$ 100	$ 100
Foreign exchange contracts
General Discussion of Derivative Instruments and Hedging Activities [Abstract]
Total cost of contracts for Japanese yen (in thousands)	$ 2,204	$ 1,031
Number of contracts | Contract	2	1

Basis of Presentation and Sig41

Basis of Presentation and Significant Accounting Policies (Concentration Risk) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017	Dec. 30, 2017
Risks and Uncertainties [Abstract]
Revenue recognized on shipments to distributors	$ 4.1		$ 12.3
Allowance for doubtful accounts	$ 9.4		$ 9.4		$ 9.4
Revenue | Sell-Through Distributors Concentration Risk
Risks and Uncertainties [Abstract]
Concentration Risk	86.00%	76.00%	87.00%	73.00%
Top Five Customers | Revenue | Customer Concentration Risk
Risks and Uncertainties [Abstract]
Concentration Risk	17.00%	27.00%	17.00%	32.00%
Largest Customer | Revenue | Customer Concentration Risk
Risks and Uncertainties [Abstract]
Concentration Risk	5.00%	9.00%	5.00%	10.00%
Largest Distributor Group | Trade receivables | Sell-Through Distributors Concentration Risk
Risks and Uncertainties [Abstract]
Concentration Risk			73.00%		66.00%
Second Largest Distributor Group | Trade receivables | Sell-Through Distributors Concentration Risk
Risks and Uncertainties [Abstract]
Concentration Risk			13.00%		0.00%

Basis of Presentation and Sig42

Basis of Presentation and Significant Accounting Policies (Goodwill) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Dec. 30, 2017
Accounting Policies [Abstract]
Goodwill impairment	$ 0	$ 0
Goodwill	$ 267,514,000		$ 267,514,000

Basis of Presentation and Sig43

Basis of Presentation and Significant Accounting Policies (Property and Equipment) (Details)	6 Months Ended
	Jun. 30, 2018
Equipment | Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Equipment | 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
Software Development | Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Software Development | Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	5 years
Building
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	30 years

Revenue from Contracts with C44

Revenue from Contracts with Customers (Additional Information) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Dec. 30, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stock rotation as percentage of billings (not to exceed)	5.00%	5.00%
Royalty revenue periodic adjustment period		3 years
Cumulative effect adjustments			$ 27,401
Contracts assets	$ 4,472	$ 4,472	7,515
Proceeds from royalties received	$ 6,400
Accumulated deficit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect adjustments			27,401
Accounting Standards Update 2014-09 | Accumulated deficit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect adjustments			27,400
Deferred Distributor Revenues | Accounting Standards Update 2014-09 | Accumulated deficit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect adjustments			20,200
Deferred Licensing Revenues | Accounting Standards Update 2014-09 | Accumulated deficit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect adjustments			$ 6,600
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Payment term for invoice		30 days
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Payment term for invoice		60 days

Revenue from Contracts with C45

Revenue from Contracts with Customers (Schedule of New Accounting Standard Impact on Financial Statements) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017	Dec. 30, 2017
Disaggregation of Revenue [Line Items]
Revenues	$ 102,715	$ 94,137	$ 201,338	$ 198,724
Consolidated Statement of Operations
Net loss	$ (20,223)	$ (13,022)	$ (26,175)	$ (20,297)
Net (loss) income per share, basic and diluted (in usd per share)	$ (0.16)	$ (0.11)	$ (0.21)	$ (0.17)
Consolidated Balance Sheets
Accounts receivable, net of allowance for doubtful accounts	$ 76,566		$ 76,566		$ 55,104
Inventories	65,586		65,586		79,903
Prepaid expenses and other current assets	21,729		21,729		16,567
Total assets	623,204		623,204		635,961
Accounts payable and accrued expenses (includes restructuring)	53,500		53,500		54,405
Deferred income and allowances on sales to distributors	0		0		17,250
Accumulated deficit	(476,636)		(476,636)		(477,862)
Total liabilities and stockholders' equity	623,204		623,204		$ 635,961
Consolidated Statement of Cash Flows
Net loss	(20,223)	$ (13,022)	(26,175)	$ (20,297)
Accounts receivable, net			(19,654)	12,846
Inventories			14,687	689
Prepaid expenses and other assets			(7,891)	2,822
Accounts payable and accrued expenses (includes restructuring)			7,095	(13,554)
Deferred income and allowances on sales to distributors			0	(7,342)
Adjustments | Accounting Standards Update 2014-09
Consolidated Statement of Operations
Net loss	$ 2,040		$ (3,618)
Net (loss) income per share, basic and diluted (in usd per share)	$ 0.01		$ (0.03)
Consolidated Balance Sheets
Accounts receivable, net of allowance for doubtful accounts	$ 9,561		$ 9,561
Inventories	(615)		(615)
Prepaid expenses and other current assets	(4,472)		(4,472)
Total assets	4,474		4,474
Accounts payable and accrued expenses (includes restructuring)	(28)		(28)
Deferred income and allowances on sales to distributors	35,521		35,521
Accumulated deficit	(31,019)		(31,019)
Total liabilities and stockholders' equity	4,474		4,474
Consolidated Statement of Cash Flows
Net loss	2,040		(3,618)
Accounts receivable, net			(11,369)
Inventories			245
Prepaid expenses and other assets			(3,043)
Accounts payable and accrued expenses (includes restructuring)			(486)
Deferred income and allowances on sales to distributors			18,271
Pro forma as if previous standard was in effect
Consolidated Statement of Operations
Net loss	$ (18,183)		$ (29,793)
Net (loss) income per share, basic and diluted (in usd per share)	$ (0.15)		$ (0.24)
Consolidated Balance Sheets
Accounts receivable, net of allowance for doubtful accounts	$ 86,127		$ 86,127
Inventories	64,971		64,971
Prepaid expenses and other current assets	17,257		17,257
Total assets	627,678		627,678
Accounts payable and accrued expenses (includes restructuring)	53,472		53,472
Deferred income and allowances on sales to distributors	35,521		35,521
Accumulated deficit	(507,655)		(507,655)
Total liabilities and stockholders' equity	627,678		627,678
Consolidated Statement of Cash Flows
Net loss	(18,183)		(29,793)
Accounts receivable, net			(31,023)
Inventories			14,932
Prepaid expenses and other assets			(10,934)
Accounts payable and accrued expenses (includes restructuring)			6,609
Deferred income and allowances on sales to distributors			18,271
Product
Disaggregation of Revenue [Line Items]
Revenues	98,294	83,168	193,403	175,837
Consolidated Statement of Operations
Cost of revenue	52,208	40,749	94,310	82,363
Product | Adjustments | Accounting Standards Update 2014-09
Disaggregation of Revenue [Line Items]
Revenues	(4,084)		(12,349)
Consolidated Statement of Operations
Cost of revenue	(1,725)		(5,544)
Product | Pro forma as if previous standard was in effect
Disaggregation of Revenue [Line Items]
Revenues	94,210		181,054
Consolidated Statement of Operations
Cost of revenue	50,483		88,766
Licensing and services
Disaggregation of Revenue [Line Items]
Revenues	4,421	10,969	7,935	22,887
Consolidated Statement of Operations
Cost of revenue	259	$ 2,179	259	$ 4,320
Licensing and services | Adjustments | Accounting Standards Update 2014-09
Disaggregation of Revenue [Line Items]
Revenues	4,399		3,187
Licensing and services | Pro forma as if previous standard was in effect
Disaggregation of Revenue [Line Items]
Revenues	$ 8,820		$ 11,122

Revenue from Contracts with C46

Revenue from Contracts with Customers (Contract Assets) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
Movement In Contract With Customer, Asset, Net [Roll Forward]
Beginning balance	$ 7,515
Revenues recorded during the period	4,711
Transferred to accounts receivable or collected	(7,754)
Ending balance	$ 4,472

Revenue from Contracts with C47

Revenue from Contracts with Customers (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 102,715	$ 94,137	$ 201,338	$ 198,724
Asia
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	77,899	64,946	149,820	138,404
Europe
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	12,162	10,579	24,304	21,659
Total revenue
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	12,654	18,612	27,214	38,661
Product revenue - Distributors
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	88,790	71,570	174,747	145,650
Product revenue - Direct
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	9,504	11,598	18,656	30,187
Licensing and services revenue
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 4,421	$ 10,969	$ 7,935	$ 22,887

Net Loss per Share (Details)

Net Loss per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Earnings Per Share [Abstract]
Net loss	$ (20,223)	$ (13,022)	$ (26,175)	$ (20,297)
Shares used in basic and diluted net loss per share (in shares)	124,843	122,390	124,460	122,095
Basic and diluted net loss per share (in usd per share)	$ (0.16)	$ (0.11)	$ (0.21)	$ (0.17)
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)	9,169	6,000	9,376	5,946

Marketable Securities (Details)

Marketable Securities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 30, 2017
Investments, Debt and Equity Securities [Abstract]
Term of maturities of investments considered short-term	2 years
Maturing within one year	$ 4,990	$ 4,982
Maturing between one and two years	7,096	0
Total marketable securities	$ 12,086	$ 4,982

Fair Value of Financial Instr50

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 30, 2017
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Short-term marketable securities	$ 12,086	$ 4,982
Total
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Short-term marketable securities	12,086	4,982
Foreign currency forward exchange contracts, net	36	77
Total fair value of financial instruments	12,122	5,059
Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Short-term marketable securities	12,086	4,982
Foreign currency forward exchange contracts, net	0	0
Total fair value of financial instruments	12,086	4,982
Unrealized gain (loss)	100
Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Short-term marketable securities	0	0
Foreign currency forward exchange contracts, net	36	77
Total fair value of financial instruments	36	77
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

Discontinuation of Business U51

Discontinuation of Business Unit (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Nonoperating expense	$ 116,279,000	$ 102,866,000	$ 215,697,000	$ 208,155,000
Impairment of acquired intangible assets	11,900,000	0	11,900,000	0
Restructuring charges	4,376,000	1,576,000	5,405,000	1,642,000
Product
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cost of revenue	52,208,000	$ 40,749,000	$ 94,310,000	$ 82,363,000
Discontinued Operations | Millimeter Wave Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Nonoperating expense	24,300,000
Impairment of acquired intangible assets	11,900,000
Restructuring charges	4,100,000
Discontinued Operations | Millimeter Wave Business | Product
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cost of revenue	$ 8,300,000

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 30, 2017
Inventory Disclosure [Abstract]
Work in progress	$ 44,387	$ 49,642
Finished goods	21,199	30,261
Total inventories	65,586	$ 79,903
Discontinued Operations | Millimeter Wave Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Inventory reserves	$ 8,300

Intangible Assets (Details)

Intangible Assets (Details)	3 Months Ended			6 Months Ended
	Jun. 30, 2018USD ($)	Jul. 01, 2017USD ($)	Apr. 01, 2017USD ($)	Jun. 30, 2018USD ($)	Jul. 01, 2017USD ($)Installment	Dec. 30, 2017USD ($)
Finite-Lived Intangible Assets [Line Items]
Impairment of acquired intangible assets	$ 11,900,000	$ 0		$ 11,900,000	$ 0
Proceeds from sale of intangible assets, number of installments | Installment					2
Accumulated amortization, intangible assets	110,700,000			110,700,000		$ 100,300,000
Amortization of acquired intangible assets	4,646,000	8,878,000		10,409,000	$ 17,565,000
Research and development
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	123,000	141,000		250,000	314,000
Amortization of acquired intangible assets
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	$ 4,523,000	$ 8,737,000		$ 10,159,000	17,251,000
Patents
Finite-Lived Intangible Assets [Line Items]
Proceeds from sale of intangible assets			$ 18,000,000
Decrease of intangible assets, net of amortization					$ 3,500,000

Cost Method Investment and Co54

Cost Method Investment and Collaborative Arrangement (Details) - USD ($)	3 Months Ended				6 Months Ended			12 Months Ended		42 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Jul. 01, 2017	Oct. 01, 2016	Dec. 31, 2018	Jun. 30, 2018	Jul. 01, 2017	Dec. 28, 2019	Jan. 02, 2016	Jun. 30, 2018
Schedule of Investments [Line Items]
Investment made during fiscal year				$ 1,000,000					$ 5,000,000
Ownership interest percentage									22.70%
Gross investments amount				$ 6,000,000
Decrease of cost method investment										$ (3,700,000)
Beginning balance	$ 2,300,000					$ 2,300,000				2,300,000
Maximum loss exposure amount	4,700,000					4,700,000				4,700,000
Cost method investments, fair value	2,300,000					2,300,000				2,300,000
Prepaid royalties	2,400,000					2,400,000				2,400,000
Impairment of cost-method investment	0		$ 200,000			0	$ 493,000
Payments for royalties	900,000	$ 900,000
Forecast
Schedule of Investments [Line Items]
Payments for royalties					$ 1,750,000			$ 5,000,000
Prepaid Expenses and Other Current Assets
Schedule of Investments [Line Items]
Prepaid royalties	400,000					400,000				400,000
Other Long-term Assets
Schedule of Investments [Line Items]
Prepaid royalties	$ 2,000,000					$ 2,000,000				$ 2,000,000

Accounts Payable and Accrued 55

Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 30, 2017
Payables and Accruals [Abstract]
Trade accounts payable	$ 30,407	$ 35,350
Liability for non-cancelable contracts	7,926	7,232
Restructuring	4,778	2,447
Deferred rent	3,832	3,834
Other accrued expenses	6,557	5,542
Total accounts payable and accrued expenses	$ 53,500	$ 54,405

Changes in Stockholders' Equi56

Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017	Dec. 30, 2017
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			$ 217,693
Net loss for the six months ended June 30, 2018	$ (20,223)	$ (13,022)	(26,175)	$ (20,297)
Unrealized gain related to marketable securities, net of tax			2
Recognized loss on redemption of marketable securities, previously unrealized			(1)
Translation adjustments, net of tax			(540)
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax			5,040
Stock-based compensation related to stock options, ESPP and RSUs			7,200
Accounting method transition adjustment					$ 27,401
Ending balance	230,620		230,620
Common stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			1,239
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax			17
Ending balance	1,256		1,256
Additional Paid-in capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			695,768
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax			5,023
Stock-based compensation related to stock options, ESPP and RSUs			7,200
Ending balance	707,991		707,991
Accumulated deficit
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			(477,862)
Net loss for the six months ended June 30, 2018			(26,175)
Accounting method transition adjustment					$ 27,401
Ending balance	(476,636)		(476,636)
Accumulated other comprehensive loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			(1,452)
Unrealized gain related to marketable securities, net of tax			2
Recognized loss on redemption of marketable securities, previously unrealized			(1)
Translation adjustments, net of tax			(540)
Ending balance	$ (1,991)		$ (1,991)

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017	Dec. 30, 2017
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Income tax provision (benefit)	$ 1,343,000	$ 47,000	$ 1,940,000	$ 565,000
Unrecognized tax benefits that could significantly change during the next twelve months	1,500,000		1,500,000
Unrecognized tax benefits, associated interest and penalties that could significantly change within the next twelve months	100,000		100,000
Total potential decrease in UTB	1,600,000		1,600,000
Tax credit carryforward, amount					$ 59,200,000
Deferred tax assets, valuation allowance	24,500,000		24,500,000
Bermuda
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Income tax provision (benefit)			$ 0
Statutory income tax rate			0.00%
Federal
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Operating loss carryforwards					351,400,000
Tax credit carryforward, amount					50,200,000
State and Local Jurisdiction
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Operating loss carryforwards					162,900,000
Tax credit carryforward, amount					59,200,000
Other Long-term Liabilities
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Uncertain tax positions	$ 26,600,000		$ 26,600,000		26,900,000
No Expiration Date
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Tax credit carryforward, amount					$ 57,900,000

Restructuring (Narrative) (Deta

Restructuring (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 4,376,000	$ 1,576,000	$ 5,405,000	$ 1,642,000
June 2018 Plan
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, cost incurred to date	4,100,000		4,100,000
June 2017 Plan
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, cost incurred to date	9,300,000		9,300,000
Restructuring charges	300,000	2,400,000	1,300,000	2,400,000
September 2015 Reduction
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, cost incurred to date	7,200,000		7,200,000
Restructuring charges	0	(500,000)	0	(700,000)
March 2015 Plan
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, cost incurred to date	20,500,000		20,500,000
Restructuring charges	0	$ (400,000)	0	$ (100,000)
Minimum | June 2017 Plan
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, expected cost	8,000,000		8,000,000
Maximum | June 2017 Plan
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, expected cost	$ 12,000,000		$ 12,000,000
Disposed of by Sale | Hyderabad
Restructuring Cost and Reserve [Line Items]
Ownership percentage					100.00%

Restructuring (Schedule of Rest

Restructuring (Schedule of Restructuring Activities) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Restructuring Reserve [Roll Forward]
Balance at beginning of the period	$ 2,447	$ 1,874
Restructuring charges	5,405	1,642
Costs paid or otherwise settled	(3,074)	(994)
Balance at the end of the period	4,778	2,522
Severance & related
Restructuring Reserve [Roll Forward]
Balance at beginning of the period	1,192	801
Restructuring charges	3,964	1,276
Costs paid or otherwise settled	(1,443)	(52)
Balance at the end of the period	3,713	2,025
Lease Termination & Fixed Assets
Restructuring Reserve [Roll Forward]
Balance at beginning of the period	870	1,036
Restructuring charges	440	57
Costs paid or otherwise settled	(593)	(616)
Balance at the end of the period	717	477
Software Contracts & Engineering Tools
Restructuring Reserve [Roll Forward]
Balance at beginning of the period	360	25
Restructuring charges	913	0
Costs paid or otherwise settled	(968)	(25)
Balance at the end of the period	305	0
Other
Restructuring Reserve [Roll Forward]
Balance at beginning of the period	25	12
Restructuring charges	88	309
Costs paid or otherwise settled	(70)	(301)
Balance at the end of the period	$ 43	$ 20

Long-Term Debt (Narrative) (Det

Long-Term Debt (Narrative) (Details) - USD ($)	Mar. 10, 2015	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2018	Dec. 30, 2017
Debt Instrument [Line Items]
Principal amount		$ 294,783,000		$ 294,783,000
Line of Credit | Term Loan
Debt Instrument [Line Items]
Principal amount	$ 350,000,000	294,783,000		294,783,000	$ 306,791,000
Proceeds from debt	346,500,000
Debt instrument, unamortized discount	3,500,000	$ 4,558,000		$ 4,558,000	$ 5,616,000
Payment of debt issuance cost	$ 8,300,000
Debt instrument, interest rate, effective percentage		6.92%		6.92%
Debt instrument, periodic payment		$ 900,000	$ 900,000	$ 900,000
Required annual excess cash flow payment		200,000
Debt instrument, payment, percentage				75.00%
Debt principal payment		$ 10,000,000
Line of Credit | Term Loan | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, variable interest floor rate				1.00%
Debt instrument, basis spread on variable rate				4.25%
Minimum | Line of Credit | Term Loan
Debt Instrument [Line Items]
Debt instrument, payment, percentage				0.00%
Maximum | Line of Credit | Term Loan
Debt Instrument [Line Items]
Debt instrument, payment, percentage				75.00%

Long-Term Debt (Debt Schedule)

Long-Term Debt (Debt Schedule) (Details) - USD ($)	Jun. 30, 2018	Dec. 30, 2017	Mar. 10, 2015
Debt Instrument [Line Items]
Principal amount	$ 294,783,000
Line of Credit | Term Loan
Debt Instrument [Line Items]
Principal amount	294,783,000	$ 306,791,000	$ 350,000,000
Unamortized original issue discount and debt costs	(4,558,000)	(5,616,000)	$ (3,500,000)
Less: Current portion of long-term debt	(24,526,000)	(1,508,000)
Long-term debt	$ 265,699,000	$ 299,667,000

Long-Term Debt (Interest Expens

Long-Term Debt (Interest Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Debt Disclosure [Abstract]
Contractual interest	$ 4,762	$ 4,167	$ 9,290	$ 8,710
Amortization of debt issuance costs and discount	551	421	1,058	1,354
Total interest expense related to the Term Loan	$ 5,313	$ 4,588	$ 10,348	$ 10,064

Long-Term Debt (Future Principa

Long-Term Debt (Future Principal Payments) (Details) $ in Thousands	Jun. 30, 2018USD ($)
Debt Disclosure [Abstract]
2018 (remaining 6 months)	$ 1,750
2,019	26,415
2,020	44,204
2,021	222,414
Total	$ 294,783

Stock-Based Compensation (Stock

Stock-Based Compensation (Stock-based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 2,400	$ 2,929	$ 7,200	$ 6,772
Cost of products sold
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	196	180	433	408
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	837	1,299	2,044	3,149
Selling, general, and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 1,367	$ 1,450	$ 4,723	$ 3,215

Stock-Based Compensation (Narra

Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 2,400	$ 2,929	$ 7,200	$ 6,772
CEO
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	1,400
Executives
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 200	$ 100	$ 500	$ 300
Executives | Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			2 years
Comparison period			2 years
Executives | Minimum | Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage			0.00%
Executives | Maximum | Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage			200.00%

Stock-Based Compensation (Sched

Stock-Based Compensation (Schedule of Activity for Stock Options with Market Condition) (Details) - Performance Shares shares in Thousands	6 Months Ended
	Jun. 30, 2018shares
Unvested
Beginning balance, shares	707
Vested, shares	(31)
Canceled. shares	(428)
Ending balance, shares	248
Vested
Beginning balance, shares	83
Vested, shares	31
Exercised, shares	(9)
Canceled, shares	(10)
Ending balance, shares	95
Total
Beginning balance, shares	790
Canceled, shares	(438)
Ending balance, shares	343

Contingencies (Details)

Contingencies (Details)	Jun. 30, 2018USD ($)
Loss Contingencies [Line Items]
Accrued liability 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

Segment and Geographic Inform68

Segment and Geographic Information (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)segment	Dec. 30, 2017USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of operating segments | segment	1
Total property and equipment, net	$ 36,418	$ 40,423
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	27,975	30,338
China
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	2,714	4,632
Philippines
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	3,664	3,883
Taiwan
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	1,004	958
Japan
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	361	313
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	700	299
Foreign countries
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	$ 8,443	$ 10,085