Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 29, 2018 | Jan. 21, 2019 | Jun. 29, 2018 | |
Document and Entity Information | |||
Entity Registrant Name | SILICON LABORATORIES INC | ||
Entity Central Index Key | 1,038,074 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 29, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-29 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 4.2 | ||
Entity Common Stock, Shares Outstanding | 43,088,623 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 197,043 | $ 269,366 |
Short-term investments | 416,779 | 494,657 |
Accounts receivable, net | 73,194 | 71,367 |
Inventories | 74,972 | 73,132 |
Prepaid expenses and other current assets | 64,650 | 39,120 |
Total current assets | 826,638 | 947,642 |
Property and equipment, net | 139,049 | 127,682 |
Goodwill | 397,344 | 288,227 |
Other intangible assets, net | 170,832 | 83,144 |
Other assets, net | 90,491 | 88,387 |
Total assets | 1,624,354 | 1,535,082 |
Current liabilities: | ||
Accounts payable | 41,171 | 38,851 |
Deferred revenue and returns liability | 22,494 | |
Deferred income on shipments to distributors | 50,115 | |
Other current liabilities | 81,180 | 73,359 |
Total current liabilities | 144,845 | 162,325 |
Convertible debt | 354,771 | 341,879 |
Other non-current liabilities | 57,448 | 77,862 |
Total liabilities | 557,064 | 582,066 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock - $0.0001 par value; 10,000 shares authorized; no shares issued | ||
Common stock - $0.0001 par value; 250,000 shares authorized; 43,088 and 42,707 shares issued and outstanding at December 29, 2018 and December 30, 2017, respectively | 4 | 4 |
Additional paid-in capital | 107,517 | 102,862 |
Retained earnings | 961,343 | 851,307 |
Accumulated other comprehensive loss | (1,574) | (1,157) |
Total stockholders' equity | 1,067,290 | 953,016 |
Total liabilities and stockholders' equity | $ 1,624,354 | $ 1,535,082 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 29, 2018 | Dec. 30, 2017 |
Consolidated Balance Sheets | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 43,088,000 | 42,707,000 |
Common stock, shares outstanding | 43,088,000 | 42,707,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Consolidated Statements of Income | |||
Revenues | $ 868,267 | $ 768,867 | $ 697,626 |
Cost of revenues | 346,868 | 314,676 | 276,122 |
Gross margin | 521,399 | 454,191 | 421,504 |
Operating expenses: | |||
Research and development | 238,347 | 209,491 | 199,744 |
Selling, general and administrative | 197,844 | 159,726 | 155,483 |
Operating expenses | 436,191 | 369,217 | 355,227 |
Operating income | 85,208 | 84,974 | 66,277 |
Other income (expense): | |||
Interest income and other, net | 6,647 | 6,057 | 806 |
Interest expense | (19,694) | (14,128) | (2,587) |
Income before income taxes | 72,161 | 76,903 | 64,496 |
Provision (benefit) for income taxes | (11,430) | 29,811 | 3,002 |
Net income | $ 83,591 | $ 47,092 | $ 61,494 |
Earnings per share: | |||
Basic (in dollars per share) | $ 1.94 | $ 1.11 | $ 1.47 |
Diluted (in dollars per share) | $ 1.90 | $ 1.09 | $ 1.45 |
Weighted-average common shares outstanding: | |||
Basic (in shares) | 43,159 | 42,446 | 41,713 |
Diluted (in shares) | 44,044 | 43,332 | 42,376 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Consolidated Statements of Comprehensive Income | |||
Net income | $ 83,591 | $ 47,092 | $ 61,494 |
Net changes to available-for-sale securities: | |||
Unrealized gains (losses) arising during the period | 376 | (729) | (179) |
Reclassification for losses included in net income | 49 | ||
Net changes to cash flow hedges: | |||
Unrealized gains (losses) arising during the period | (953) | 1,466 | |
Reclassification for (gains) losses included in net income | 316 | (1,808) | 249 |
Other comprehensive income (loss), before tax | (212) | (2,537) | 1,536 |
Provision (benefit) for income taxes | (45) | (888) | 537 |
Other comprehensive income (loss) | (167) | (1,649) | 999 |
Comprehensive income | $ 83,424 | $ 45,443 | $ 62,493 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Jan. 02, 2016 | $ 4 | $ 13,868 | $ 747,749 | $ (507) | $ 761,114 |
Balance (in shares) at Jan. 02, 2016 | 41,727 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 61,494 | 61,494 | |||
Other comprehensive income (loss) | 999 | 999 | |||
Stock issuances, net of shares withheld for taxes | 6,346 | 6,346 | |||
Stock issuances, net of shares withheld for taxes (in shares) | 1,055 | ||||
Income tax benefit (shortfall) from stock-based awards | (2,061) | (2,061) | |||
Repurchases of common stock | $ (40,500) | (33,299) | (7,244) | (40,543) | |
Repurchases of common stock (in shares) | (893) | ||||
Stock-based compensation | 39,609 | 39,609 | |||
Balance at Dec. 31, 2016 | $ 4 | 24,463 | 801,999 | 492 | 826,958 |
Balance (in shares) at Dec. 31, 2016 | 41,889 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Cumulative effect of adoption of accounting standard | 2,216 | 2,216 | |||
Net income | 47,092 | 47,092 | |||
Other comprehensive income (loss) | (1,649) | (1,649) | |||
Stock issuances, net of shares withheld for taxes | (3,938) | (3,938) | |||
Stock issuances, net of shares withheld for taxes (in shares) | 818 | ||||
Stock-based compensation | 44,809 | 44,809 | |||
Convertible debt issuance | 37,528 | 37,528 | |||
Balance at Dec. 30, 2017 | $ 4 | 102,862 | 851,307 | (1,157) | $ 953,016 |
Balance (in shares) at Dec. 30, 2017 | 42,707 | 42,707 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Cumulative effect of adoption of accounting standard | 26,445 | (250) | $ 26,195 | ||
Net income | 83,591 | 83,591 | |||
Other comprehensive income (loss) | (167) | (167) | |||
Stock issuances, net of shares withheld for taxes | (6,180) | (6,180) | |||
Stock issuances, net of shares withheld for taxes (in shares) | 815 | ||||
Repurchases of common stock | $ (39,300) | (39,276) | (39,276) | ||
Repurchases of common stock (in shares) | (434) | ||||
Stock-based compensation | 50,111 | 50,111 | |||
Balance at Dec. 29, 2018 | $ 4 | $ 107,517 | $ 961,343 | $ (1,574) | $ 1,067,290 |
Balance (in shares) at Dec. 29, 2018 | 43,088 | 43,088 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Operating Activities | |||
Net income | $ 83,591 | $ 47,092 | $ 61,494 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation of property and equipment | 15,912 | 14,766 | 13,216 |
Amortization of other intangible assets and other assets | 44,102 | 27,246 | 27,715 |
Amortization of debt discount and debt issuance costs | 12,892 | 10,146 | |
Stock-based compensation expense | 50,077 | 44,752 | 39,628 |
Income tax shortfall from stock-based awards | (1,671) | ||
Deferred income taxes | (8,210) | (26,452) | (4,087) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 3,931 | 3,234 | 46 |
Inventories | 7,660 | (13,416) | (6,093) |
Prepaid expenses and other assets | (4,960) | 25,266 | (3,568) |
Accounts payable | 5,952 | (468) | 263 |
Other current liabilities and income taxes | (21,828) | 61,924 | 2,879 |
Deferred income, deferred revenue and returns liability | (6,202) | 4,453 | 9,713 |
Other non-current liabilities | (9,375) | (9,022) | (10,625) |
Net cash provided by operating activities | 173,542 | 189,521 | 128,910 |
Investing Activities | |||
Purchases of available-for-sale investments | (395,904) | (636,363) | (185,231) |
Sales and maturities of available-for-sale investments | 474,129 | 294,452 | 161,921 |
Purchases of property and equipment | (24,462) | (12,252) | (10,927) |
Purchases of other assets | (11,063) | (4,960) | (8,801) |
Acquisitions of businesses, net of cash acquired | (239,729) | (15,168) | (6,546) |
Net cash used in investing activities | (197,029) | (374,291) | (49,584) |
Financing Activities | |||
Proceeds from issuance of long-term debt, net | 389,468 | ||
Payments on debt | (72,500) | (5,000) | |
Repurchases of common stock | (39,276) | (40,543) | |
Payment of taxes withheld for vested stock awards | (19,483) | (15,753) | (10,561) |
Proceeds from the issuance of common stock | 13,303 | 11,815 | 13,299 |
Payment of acquisition-related contingent consideration | (3,380) | (9,500) | |
Net cash provided by (used in) financing activities | (48,836) | 313,030 | (52,305) |
Increase (decrease) in cash and cash equivalents | (72,323) | 128,260 | 27,021 |
Cash and cash equivalents at beginning of period | 269,366 | 141,106 | 114,085 |
Cash and cash equivalents at end of period | 197,043 | 269,366 | 141,106 |
Supplemental Disclosure of Cash Flow Information: | |||
Interest paid | 6,227 | 3,859 | 2,222 |
Income taxes paid | $ 20,599 | $ 8,929 | 11,185 |
Supplemental Disclosure of Non-Cash Activity: | |||
Stock issued in business combination | $ 4,181 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 29, 2018 | |
Description of Business | |
Description of Business | 1. Description of Business Silicon Laboratories Inc. (the "Company"), a Delaware corporation, is a leading provider of silicon, software and solutions for a smarter, more connected world. Our award-winning technologies are shaping the future of the Internet of Things (IoT), Internet infrastructure, industrial automation, consumer and automotive markets. Within the semiconductor industry, the Company is known as a "fabless" company meaning that the integrated circuits (ICs) incorporated in its products are manufactured by third-party foundry semiconductor companies. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 29, 2018 | |
Significant Accounting Policies | |
Significant Accounting Policies | 2. Significant Accounting Policies The Company prepares financial statements on a 52- or 53-week fiscal year that ends on the Saturday closest to December 31. Fiscal 2018, 2017 and 2016 had 52 weeks and ended on December 29, 2018, December 30, 2017 and December 31, 2016, respectively. The accompanying Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The Company's foreign subsidiaries are considered to be extensions of the U.S. Company. The functional currency of the foreign subsidiaries is the U.S. dollar. Accordingly, gains and losses resulting from remeasuring transactions denominated in currencies other than U.S. dollars are included in interest income and other, net in the Consolidated Statements of Income. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Among the significant estimates affecting the financial statements are those related to inventories, goodwill, acquired intangible assets, other long-lived assets, revenue recognition, stock-based compensation and income taxes. Actual results could differ from those estimates, and such differences could be material to the financial statements. The Company adopted Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers , on December 31, 2017, the first day of its fiscal year ended December 29, 2018. The Company elected the modified retrospective method of adoption which only applies to those contracts which were not completed as of December 31, 2017. Prior periods have not been adjusted. In connection with its adoption of ASC 606, the Company recorded a cumulative-effect adjustment to retained earnings of $26.2 million on December 31, 2017. The following reflects the material changes recorded in connection with the cumulative-effect adjustment (in thousands): Financial Statement Line Item Increase Accounts receivable, net 230 Prepaid expenses and other current assets 7,579 Other assets, net (2,282 ) Deferred revenue and returns liability 27,806 Deferred income on shipments to distributors (50,115 ) Other current liabilities 1,641 Retained earnings 26,195 The following presents the amounts by which financial statement line items were affected in the current period due to the adoption of ASC 606 (in thousands): Financial Statement Line Item* Increase Consolidated Statements of Income Year Ended Revenues 12,943 Cost of revenues 4,234 Net income 6,610 Earnings per share: Basic 0.15 Diluted 0.15 Consolidated Balance Sheet** December 29, Prepaid expenses and other current assets 5,953 Goodwill (2,842 ) Other assets, net (4,464 ) Deferred revenue and returns liability 22,494 Deferred income on shipments to distributors (60,789 ) Other current liabilities 4,282 Retained earnings 32,805 * Excludes line items that were not materially affected by the Company's adoption of ASC 606. The adoption had no impact to cash provided by or used in net operating, investing or financing activities in the Consolidated Statements of Cash Flows. ** Balance sheet line item amounts include the cumulative-effect adjustment recorded on December 31, 2017. The primary impact of the Company's adoption of ASC 606 resulted from the acceleration of the timing of revenue recognition on sales to distributors. The Company previously deferred revenue and cost of revenue on such sales until the distributors sold the product to the end customers. The Company now recognizes revenue at the time of sale to the distributor provided all other revenue recognition criteria have been met. The Company records a right of return asset and a returns liability in place of the deferred income on shipments to distributors previously recorded under ASC 605. The fair values of the Company's financial instruments are recorded using a hierarchical disclosure framework based upon the level of subjectivity of the inputs used in measuring assets and liabilities. The three levels are described below: Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2—Inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3—Inputs are unobservable for the asset or liability and are developed based on the best information available in the circumstances, which might include the Company's own data. Cash and cash equivalents consist of cash deposits, certificates of deposit, money market funds and investments in debt securities with original maturities of ninety days or less when purchased. The Company's investments typically have original maturities greater than ninety days as of the date of purchase and are classified as either available-for-sale or trading securities. Investments in available-for-sale securities are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive loss in the Consolidated Balance Sheet. Investments in trading securities are reported at fair value, with both realized and unrealized gains and losses recorded in interest income and other, net in the Consolidated Statement of Income. Investments in which the Company has the ability and intent, if necessary, to liquidate in order to support its current operations (including those with contractual maturities greater than one year from the date of purchase) are classified as short-term. The Company reviews its available-for-sale investments as of the end of each reporting period for other-than-temporary declines in fair value based on the specific identification method. The Company considers various factors in determining whether an impairment is other-than-temporary, including the severity and duration of the impairment, changes in underlying credit ratings, forecasted recovery, its intent to sell or the likelihood that it would be required to sell the investment before its anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. When the Company concludes that an other-than-temporary impairment has occurred, the Company assesses whether it intends to sell the security or if it is more likely than not that it will be required to sell the security before recovery. If either of these two conditions is met, the Company recognizes a charge in earnings equal to the entire difference between the security's amortized cost basis and its fair value. If the Company does not intend to sell a security and it is not more likely than not that it will be required to sell the security before recovery, the unrealized loss is separated into an amount representing the credit loss, which is recognized in earnings, and the amount related to all other factors, which is recorded in accumulated other comprehensive loss. In addition, the Company has made equity investments in non-publicly traded companies. Equity investments in which the Company does not have control, but has the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. The Company's proportionate share of income or loss is recorded in interest income and other, net in the Consolidated Statement of Income. All other non-marketable equity investments are recorded at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes. Prior to fiscal 2018, all other non-marketable equity investments were accounted for using the cost method. The Company periodically reviews its equity investments for other-than-temporary declines in fair value based on the specific identification method and writes down investments to their fair values when it determines that an other-than-temporary decline has occurred. The Company uses derivative financial instruments to manage certain exposures to the variability of foreign currency exchange rates and interest rates. The Company's objective is to offset increases and decreases in expenses resulting from these exposures with gains and losses on the derivative contracts, thereby reducing volatility of earnings. The Company does not use derivative contracts for speculative or trading purposes. The Company recognizes derivatives, on a gross basis, in the Consolidated Balance Sheet at fair value. Cash flows from derivatives are classified according to the nature of the cash receipt or payment in the Consolidated Statement of Cash Flows. Cash flow hedges used by the Company include foreign currency forward contracts and interest rate swap agreements. Foreign currency forward contracts are used to reduce the earnings impact that exchange rate fluctuations have on operating expenses denominated in currencies other than the U.S. dollar. Interest rate swap agreements are used to manage exposure to interest rate risks. The Company also uses foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on non-U.S. dollar balance sheet exposures. The Company does not apply hedge accounting to these foreign currency forward contracts. Inventories are stated at the lower of cost, determined using the first-in, first-out method, or net realizable value. The Company writes down the carrying value of inventory to net realizable value for estimated obsolescence or unmarketable inventory based upon assumptions about the age of inventory, future demand and market conditions. Inventory impairment charges establish a new cost basis for inventory and charges are not subsequently reversed to income even if circumstances later suggest that increased carrying amounts are recoverable. Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the useful lives of the assets ranging from three to ten years. Leasehold improvements are depreciated over the lease term or their useful life, whichever is shorter. The Company owns the facilities it had previously leased for its headquarters in Austin, Texas. The buildings are located on land which is leased through 2099 from a third party. The rents for these ground leases were prepaid for the term of the leases by the previous lessee. The buildings and leasehold interest in ground leases are being depreciated on a straight-line basis over their estimated useful lives of 40 years and 86 years, respectively. The Company records business combinations using the acquisition method of accounting and, accordingly, allocates the fair value of purchase consideration to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of the assets acquired and liabilities assumed is recorded as goodwill. The results of operations of the businesses acquired are included in the Company's consolidated results of operations beginning on the date of the acquisition. Purchased intangible assets are stated at cost, net of accumulated amortization, and are amortized using the straight-line method over their estimated useful lives, ranging from three to twelve years. Fair values are determined primarily using the income approach, in which the Company projects future expected cash flows and applies an appropriate discount rate. Long-lived assets "held and used" by the Company are reviewed for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets and is recorded in the period in which the determination was made. The carrying value of goodwill is reviewed at least annually by the Company for possible impairment. The goodwill impairment test is a two-step process. The first step of the impairment analysis compares the fair value of the reporting unit to the net book value of the reporting unit. In determining fair value, several valuation methodologies are allowed, although quoted market prices are the best evidence of fair value. If the results of the first step demonstrate that the net book value is greater than the fair value, the Company must proceed to step two of the analysis. Step two of the analysis compares the implied fair value of goodwill to its carrying amount. If the carrying amount of goodwill exceeds its implied fair value, an impairment loss is recognized equal to that excess. The Company tests goodwill for impairment annually as of the first day of its fourth fiscal quarter and in interim periods if events occur that would indicate that the carrying value of goodwill may be impaired. Revenue is recognized when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Substantially all of the Company's contracts with customers contain a single performance obligation, the sale of mixed-signal integrated circuit (IC) products. Such sales represent a single performance obligation because the sale is one type of good (e.g., an IC) or includes multiple goods that are neither capable of being distinct nor separable from the other promises in the contract (e.g., an IC embedded with software). This performance obligation is satisfied when control of the product is transferred to the customer, which typically occurs upon delivery. Unsatisfied performance obligations primarily represent contracts for products with future delivery dates and with an original expected duration of one year or less. As allowed under ASC 606, the Company has opted to not disclose the amount of unsatisfied performance obligations as these contracts have original expected durations of less than one year. The Company's products carry a one-year replacement warranty. The replacement warranty promises customers that delivered products are as specified in the contract (an "assurance-type warranty"). Therefore, the Company accounts for such warranties under ASC 460, Guarantees , and not as a separate performance obligation. The transaction price reflects the Company's expectations about the consideration it will be entitled to receive from the customer and may include fixed or variable amounts. Fixed consideration primarily includes sales to direct customers and sales to distributors in which both the sale to the distributor and the sale to the end customer occur within the same reporting period. Variable consideration includes sales in which the amount of consideration that the Company will receive is unknown as of the end of a reporting period. Such consideration primarily includes sales made to distributors under agreements allowing certain rights of return, referred to as stock rotation, and credits issued to the distributor due to price protection. Stock rotation allows distributors limited levels of returns and is based on the distributor's prior purchases. Price protection represents price discounts granted to certain distributors and is based on negotiations on sales to end customers. The Company estimates variable consideration at the most likely amount to which it expects to be entitled. Included in the transaction price estimate are amounts in which it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The estimate is based on information available to the Company, including recent sales activity and pricing data. The Company applies a constraint to its variable consideration estimate which considers both the likelihood of a return and the amount of a potential price concession. Variable consideration that does not meet revenue recognition criteria is deferred. The Company records a right of return asset in prepaid expenses and other current assets for the costs of distributor inventory not meeting revenue recognition criteria. A corresponding deferred revenue and returns liability amount is recorded for unrecognized revenue associated with such costs. Accounts receivable represents the Company's unconditional right to receive consideration from its customer. Payments are typically due within 30 days of invoicing and do not include a significant financing component. To date, there have been no material impairment losses on accounts receivable. There were no material contract assets or contract liabilities recorded on the Consolidated Balance Sheet in any of the periods presented. Shipping and handling costs are classified as a component of cost of revenues in the Consolidated Statements of Income. The Company has stock-based compensation plans, which are more fully described in Note 14, Stock-Based Compensation . The Company accounts for those plans using a fair-value method and recognizes the expense in its Consolidated Statement of Income. Research and development costs are expensed as incurred. Research and development expense consists primarily of personnel-related expenses, including stock-based compensation, as well as new product masks, external consulting and services costs, equipment tooling, equipment depreciation, amortization of intangible assets, and an allocated portion of our occupancy costs. Assets purchased to support the Company's ongoing research and development activities are capitalized when related to products which have achieved technological feasibility or have an alternative future use, and are amortized over their estimated useful lives. Advertising costs are expensed as incurred. Advertising expenses were $1.9 million, $1.4 million and $1.6 million in fiscal 2018, 2017 and 2016, respectively. The Company accounts for income taxes using the asset and liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax laws and related rates that will be in effect when the differences are expected to reverse. These differences result in deferred tax assets and liabilities, which are included in the Company's Consolidated Balance Sheet. The Company then assesses the likelihood that the deferred tax assets will be realized. A valuation allowance is established against deferred tax assets to the extent the Company believes that it is more likely than not that the deferred tax assets will not be realized, taking into consideration the level of historical taxable income and projections for future taxable income over the periods in which the temporary differences are deductible. Uncertain tax positions must meet a more-likely-than-not threshold to be recognized in the financial statements and the tax benefits recognized are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon final settlement. See Note 17, Income Taxes , for additional information. In February 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The Company early adopted this ASU on December 31, 2017. The adoption did not have a material impact on its financial statements. In August 2017, the FASB issued ASU No. 2017-12 , Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The objectives of this ASU are to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements and to make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. This ASU is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. The Company early adopted this ASU on December 31, 2017. The adoption did not have a material impact on its financial statements. In January 2017, the FASB issued ASU No. 2017-04 , Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU eliminates Step 2 from the goodwill impairment test, which previously measured an impairment loss by comparing the implied fair value of goodwill with its carrying amount. Instead, an entity should recognize an impairment charge for the amount by which the carrying value exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to that reporting unit. This ASU is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is currently evaluating the effect of the adoption of this ASU, but anticipates that the adoption will not have a material impact on its financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU requires instruments measured at amortized cost to be presented at the net amount expected to be collected. Entities are also required to record allowances for available-for-sale debt securities rather than reduce the carrying amount. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company expects that the adoption will not have a material impact on its financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases , which was subsequently amended in 2018 by ASU 2018-10, ASU 2018-11 and ASU 2018-20 (collectively, Topic 842). The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. For operating leases, a lessee is required to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial position. Topic 842 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company will elect an optional transition method to account for the impact of the adoption with a cumulative-effect adjustment in the period of adoption and will not restate prior periods. The Company expects to elect certain practical expedients permitted under the transition guidance. The Company is substantially complete with its evaluation of the effect that the adoption of this ASU will have on its financial statements. The Company believes that most of its operating lease commitments will be subject to the new standard. In connection with the adoption of ASC 842, the Company expects to recognize additional right-of-use assets and operating lease liabilities of $20.8 million on December 30, 2018. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 29, 2018 | |
Earnings Per Share | |
Earnings Per Share | 3. Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): Year Ended December 29, December 30, December 31, Net income 83,591 47,092 61,494 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares used in computing basic earnings per share 43,159 42,446 41,713 Effect of dilutive securities: Stock-based awards 885 886 663 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares used in computing diluted earnings per share 44,044 43,332 42,376 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per share: Basic 1.94 1.11 1.47 Diluted 1.90 1.09 1.45 The Company intends to settle the principal amount of its convertible senior notes in cash and any excess value in shares in the event of a conversion. Accordingly, shares issuable upon conversion of the principal amount have been excluded from the calculation of diluted earnings per share. If the market value of the notes under certain prescribed conditions exceeds the conversion amount, the excess is included in the denominator for the computation of diluted earnings per share using the treasury stock method. For fiscal 2018, approximately 0.1 million shares were included in the denominator for the calculation of diluted earnings per share. For fiscal 2017, no such shares were included in the denominator for the calculation of diluted earnings per share. See Note 10, Debt , to the Consolidated Financial Statements for additional information. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 29, 2018 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | 4. Fair Value of Financial Instruments The following summarizes the valuation of the Company's financial instruments (in thousands). The tables do not include either cash on hand or assets and liabilities that are measured at historical cost or any basis other than fair value. Fair Value Measurements Description Quoted Prices in Significant Other Significant Total Assets: Cash equivalents: Money market funds 74,990 — — 74,990 Corporate debt securities — 18,820 — 18,820 Government debt securities 9,338 — — 9,338 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total cash equivalents 84,328 18,820 — 103,148 Short-term investments: Government debt securities 48,141 99,211 — 147,352 Corporate debt securities — 269,427 — 269,427 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total short-term investments 48,141 368,638 — 416,779 Other assets, net: Auction rate securities — — 5,759 5,759 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total — — 5,759 5,759 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements Description Quoted Prices in Significant Other Significant Total Assets: Cash equivalents: Money market funds 106,047 — — 106,047 Corporate debt securities — 11,231 — 11,231 Government debt securities 53,615 1,453 — 55,068 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total cash equivalents 159,662 12,684 — 172,346 Short-term investments: Government debt securities 94,575 228,247 — 322,822 Corporate debt securities — 171,835 — 171,835 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total short-term investments 94,575 400,082 — 494,657 Other assets, net: Auction rate securities — — 5,681 5,681 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total — — 5,681 5,681 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Valuation methodology The Company's cash equivalents and short-term investments that are classified as Level 2 are valued using non-binding market consensus prices that are corroborated with observable market data; quoted market prices for similar instruments in active markets; or pricing models, such as a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data. Investments classified as Level 3 are valued using a discounted cash flow model. The assumptions used in preparing the discounted cash flow model include estimates for interest rates, amount of cash flows, expected holding periods of the securities and a discount to reflect the Company's inability to liquidate the securities. The Company's derivative instruments are valued using discounted cash flow models. The assumptions used in preparing the valuation models include foreign exchange rates, forward and spot prices for currencies, and market observable data of similar instruments. Available-for-sale investments The Company's investments are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive loss in the Consolidated Balance Sheet. The following summarizes the contractual underlying maturities of the Company's available-for-sale investments at December 29, 2018 (in thousands): Cost Fair Value Due in one year or less 338,623 337,910 Due after one year through ten years 169,058 168,657 Due after ten years 19,360 19,119 ​ ​ ​ ​ ​ ​ ​ 527,041 525,686 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The available-for-sale investments that were in a continuous unrealized loss position, aggregated by length of time that individual securities have been in a continuous loss position, were as follows (in thousands): Less Than 12 Months 12 Months or Greater Total As of December 29, 2018 Fair Gross Fair Gross Fair Gross Government debt securities 13,278 (10 ) 88,696 (583 ) 101,974 (593 ) Corporate debt securities 112,699 (273 ) 76,310 (448 ) 189,009 (721 ) Auction rate securities — — 5,759 (241 ) 5,759 (241 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 125,977 (283 ) 170,765 (1,272 ) 296,742 (1,555 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less Than 12 Months 12 Months or Greater Total As of December 30, 2017 Fair Gross Fair Gross Fair Gross Government debt securities 244,880 (931 ) 3,027 (15 ) 247,907 (946 ) Corporate debt securities 151,149 (447 ) 11,578 (73 ) 162,727 (520 ) Auction rate securities — — 5,681 (319 ) 5,681 (319 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 396,029 (1,378 ) 20,286 (407 ) 416,315 (1,785 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The gross unrealized losses as of December 29, 2018 and December 30, 2017 were due primarily to changes in market interest rates and the illiquidity of the Company's auction-rate securities. The Company's auction-rate securities have been illiquid since 2008 when auctions for the securities failed because sell orders exceeded buy orders. These securities have a contractual maturity date of 2046. The Company is unable to predict if these funds will become available before their maturity date. The Company considers the declines in market value of its marketable securities investment portfolio to be temporary in nature. When evaluating an investment for other-than-temporary impairment, the Company reviews factors such as the severity and duration of the impairment, changes in underlying credit ratings, forecasted recovery, the Company's intent to sell or the likelihood that it would be required to sell the investment before its anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. As of December 29, 2018, the Company has determined that no other-than-temporary impairment losses existed. At December 29, 2018 and December 30, 2017, there were no material unrealized gains associated with the Company's available-for-sale investments. Level 3 fair value measurements The following summarizes quantitative information about Level 3 fair value measurements. Fair Value at Valuation Technique Unobservable Input Weighted Discounted cash flow Estimated yield 3.23% Expected holding period 10 years Estimated discount rate 3.76% The Company has followed an established internal control procedure used in valuing auction rate securities. The procedure involves the analysis of valuation techniques and evaluation of unobservable inputs commonly used by market participants to price similar instruments, and which have been demonstrated to provide reasonable estimates of prices obtained in actual market transactions. Outputs from the valuation process are assessed against various market sources when they are available, including marketplace quotes, recent trades of similar illiquid securities, benchmark indices and independent pricing services. The technique and unobservable input parameters may be recalibrated periodically to achieve an appropriate estimation of the fair value of the securities. Significant changes in any of the unobservable inputs used in the fair value measurement of auction rate securities in isolation could result in a significantly lower or higher fair value measurement. An increase in expected yield would result in a higher fair value measurement, whereas an increase in expected holding period or estimated discount rate would result in a lower fair value measurement. Generally, a change in the assumptions used for expected holding period is accompanied by a directionally similar change in the assumptions used for estimated yield and discount rate. The following summarizes the activity in Level 3 financial instruments for the years ended December 29, 2018 and December 30, 2017 (in thousands): Year Ended Auction Rate Securities December 29, December 30, Beginning balance 5,681 5,196 Gain included in other comprehensive income (loss) 78 485 ​ ​ ​ ​ ​ ​ ​ Ending balance 5,759 5,681 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended Contingent Consideration (1) December 30, Beginning balance — Issues 3,829 Reclassification to acquisition-related liabilities (3,380 ) Gain recognized in selling, general and administrative expenses (449 ) ​ ​ ​ ​ Ending balance — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) In connection with the acquisition of Zentri, the Company recorded contingent consideration based on fiscal 2017 revenue from certain Zentri products. Fair values of other financial instruments The Company's debt is recorded at cost, but is measured at fair value for disclosure purposes. The fair value of the Company's convertible senior notes is determined using observable market prices. The notes are traded in less active markets and are therefore classified as a Level 2 fair value measurement. As of December 29, 2018 and December 30, 2017, the fair value of the convertible senior notes was $419.0 million and $466.2 million, respectively. The Company's other financial instruments, including cash, accounts receivable and accounts payable, are recorded at amounts that approximate their fair values due to their short maturities. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 29, 2018 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | 5. Derivative Financial Instruments The Company uses derivative financial instruments to manage certain exposures to the variability of foreign currency exchange rates and interest rates. The Company's objective is to offset increases and decreases in expenses resulting from these exposures with gains and losses on the derivative contracts, thereby reducing volatility of earnings. The Company uses foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on operating expenses denominated in currencies other than the U.S. dollar. Changes in the fair value of the contracts are recorded in accumulated other comprehensive loss in the Consolidated Balance Sheet and subsequently reclassified into earnings in the period during which the hedged transaction is recognized. The reclassified amount is reported in the same financial statement line item as the hedged item. If the foreign currency forward contracts are terminated or can no longer qualify as hedging instruments prior to maturity, the fair value of the contracts recorded in accumulated other comprehensive loss may be recognized in the Consolidated Statement of Income based on an assessment of the contracts at the time of termination. The Company entered into foreign currency forward contracts in March 2018 for a portion of its forecasted operating expenses denominated in the Norwegian Krone. As of December 29, 2018, the contracts had maturities of one to twelve months and an aggregate notional value of $8.8 million. Losses expected to be reclassified into earnings in the next 12 months were not material. The fair value of the contracts, contract losses recognized in other comprehensive income and amounts reclassified from accumulated other comprehensive loss into earnings were not material for any of the periods presented. The Company entered into an interest rate swap agreement with an original notional value of $72.5 million in connection with its Credit Facility in July 2016. The Company terminated the swap agreement on March 6, 2017, which resulted in the reclassification of $1.8 million of unrealized gains that were previously recorded in accumulated other comprehensive loss into earnings during fiscal 2017. The Company uses foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on non-U.S. dollar balance sheet exposures. The Company recognizes gains and losses on the foreign currency forward contracts in interest income and other, net in the Consolidated Statement of Income in the same period as the remeasurement loss and gain of the related foreign currency denominated asset or liability. The Company does not apply hedge accounting to these foreign currency forward contracts. As of December 30, 2017, the Company held one foreign currency forward contract denominated in the Norwegian Krone with a notional value of $2.4 million. The fair value of the contract was not material as of December 30, 2017. The before-tax effect of derivative instruments not designated as hedging instruments was as follows (in thousands): Year Ended Gain (Loss) Recognized in Income December 29, December 30, December 31, Location Foreign currency forward contracts 105 (207 ) (92 ) Interest income and other, net |
Balance Sheet Details
Balance Sheet Details | 12 Months Ended |
Dec. 29, 2018 | |
Balance Sheet Details | |
Balance Sheet Details | 6. Balance Sheet Details The following tables show the details of selected Consolidated Balance Sheet items (in thousands): December 29, December 30, Accounts receivable 73,832 72,005 Allowance for doubtful accounts (638 ) (638 ) ​ ​ ​ ​ ​ ​ ​ 73,194 71,367 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 29, December 30, Work in progress 50,983 46,698 Finished goods 23,989 26,434 ​ ​ ​ ​ ​ ​ ​ 74,972 73,132 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 29, December 30, Buildings and improvements 109,025 96,196 Equipment 62,895 59,836 Computers and purchased software 42,487 37,598 Leasehold interest in ground leases 23,840 23,840 Leasehold improvements 12,006 10,483 Furniture and fixtures 7,794 5,691 ​ ​ ​ ​ ​ ​ ​ 258,047 233,644 Accumulated depreciation (118,998 ) (105,962 ) ​ ​ ​ ​ ​ ​ ​ 139,049 127,682 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 29, December 30, Accrued compensation and benefits 37,113 33,631 Accrued price protection credits 12,033 8,239 Other 32,034 31,489 ​ ​ ​ ​ ​ ​ ​ 81,180 73,359 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 29, December 30, Non-current tax liabilities 21,576 39,196 Other 35,872 38,666 ​ ​ ​ ​ ​ ​ ​ 57,448 77,862 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Risks and Uncertainties
Risks and Uncertainties | 12 Months Ended |
Dec. 29, 2018 | |
Risks and Uncertainties | |
Risks and Uncertainties | 7. Risks and Uncertainties Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash equivalents, investments, accounts receivable, notes receivable and derivatives. The Company places its cash equivalents and investments primarily in municipal bonds, money market funds, corporate bonds, variable-rate demand notes, U.S. government securities, agency securities, asset-back securities, certificates of deposit, commercial paper, auction-rate securities and international government bonds. Concentrations of credit risk with respect to accounts receivable are primarily due to customers with large outstanding balances. The Company's customers that accounted for greater than 10% of accounts receivable consisted of the following: December 29, December 30, Arrow Electronics 12 % 14 % Edom Technology 10 % * Avnet — 16 % * Less than 10% of accounts receivable The Company performs periodic credit evaluations of its customers' financial condition and generally requires no collateral from its customers. The Company provides an allowance for potential credit losses based upon the expected collectibility of such receivables. Losses have not been significant for any of the periods presented. The Company holds three notes receivable from two privately held companies. The total carrying value of the notes was $2.4 million as of December 29, 2018, which was recorded in other assets, net in the Consolidated Balance Sheet. The Company holds two equity investments in privately held companies. One investment is accounted for using the equity method and had a carrying value of $4.1 million as of December 29, 2018. The second investment is recorded at cost minus impairment and had a carrying value of $2.0 million as of December 29, 2018. In fiscal 2018, the Company reduced the carrying value of the second investment by $1.8 million, which was recorded in interest income and other, net in the Consolidated Statements of Income. Both investments were recorded in other assets, net in the Consolidated Balance Sheet. As a result of its use of derivative instruments, the Company is exposed to the risk that its counterparties will fail to meet their contractual obligations. To mitigate this counterparty credit risk, the Company has a policy to enter into contracts with only selected major financial institutions. The Company periodically reviews and re-assesses the creditworthiness of such counterparties based on a variety of factors. On sales to distributors, the Company's payment terms often require the distributor to initially pay amounts owed to the Company for an amount in excess of their ultimate cost. The Company's sales price to its distributors may be higher than the amount that the distributors will ultimately owe the Company because distributors often negotiate price reductions after purchasing the product from the Company and such reductions are often significant. These negotiated price discounts are not granted until the distributor sells the product to the end customer, which may occur after the distributor has paid the original invoice amount to the Company. Payment of invoices prior to receiving an associated discount can have an adverse impact on the working capital of the Company's distributors. Accordingly, the Company has entered into agreements with certain distributors whereby it advances cash to the distributors to reduce the distributor's working capital requirements. The advance amounts are based on the distributor's inventory balance, and are adjusted quarterly. Such amounts are recorded in prepaid expenses and other current assets in the Consolidated Balance Sheet. The terms of these advances are set forth in binding legal agreements and are unsecured, bear no interest on unsettled balances and are due upon demand. The agreements governing these advances can be cancelled by the Company at any time. A significant portion of the Company's products are fabricated by Taiwan Semiconductor Manufacturing Co. (TSMC) or Semiconductor Manufacturing International Corporation (SMIC). The inability of TSMC or SMIC to deliver wafers to the Company on a timely basis could impact the production of the Company's products for a substantial period of time, which could have a material adverse effect on the Company's business, financial condition, results of operations and cash flows. The Company sells directly to end customers, distributors and contract manufacturers. Although the Company actually sells the products to, and is paid by, distributors and contract manufacturers, the Company refers to the end customer as its customer. None of the Company's end customers or contract manufacturers accounted for greater than 10% of revenue during fiscal 2018, 2017 or 2016. The Company's distributors that accounted for greater than 10% of revenue consisted of the following: Year Ended December 29, December 30, December 31, Arrow Electronics 21 % 12 % 11 % Edom Technology 17 % 19 % 17 % Avnet * 14 % 13 % * Less than 10% of revenue |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 29, 2018 | |
Acquisitions | |
Acquisitions | 8. Acquisitions On April 18, 2018, the Company completed the acquisition of the Z-Wave business from Sigma Designs, Inc. for $243 million in cash. Z-Wave is an Internet of Things (IoT) technology for smart home solutions. This strategic acquisition expands the Company's IoT connectivity portfolio in the connected home market, while further scaling the Company's engineering team. These factors contributed to a purchase price that was in excess of the fair value of the net assets acquired and, as a result, the Company recorded goodwill. A portion of the goodwill is deductible for tax purposes. The purchase price was allocated as follows (in thousands): Amount Weighted-Average Intangible assets: In-process research and development 20,900 Not amortized Developed technology 69,875 7 Customer relationships 25,000 4 Trademarks 9,900 7 ​ ​ ​ ​ ​ 125,675 Cash and cash equivalents 2,841 Accounts receivable 5,311 Inventory 15,581 Other current assets 329 Goodwill 109,117 Other non-current assets 2,587 Accounts payable (3,306 ) Other current liabilities (8,918 ) Other non-current liabilities (6,648 ) ​ ​ ​ ​ ​ Total purchase price 242,569 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ In-process research and development (IPR&D) represents acquired smart home technology that had not been completed as of the acquisition date. The fair value of IPR&D was determined using the income approach. The discount rate applied to the projected cash flows was 15.0%, which reflects the engineering and technical risks related to the projects. The allocation of the purchase price is preliminary and subject to change, based on the finalization of income tax matters. Revenues attributable to the Z-Wave business from the date of acquisition to December 29, 2018 were $37.0 million. The Company recorded approximately $4.9 million of acquisition-related costs in selling, general and administrative expenses during fiscal 2018. The following unaudited pro forma financial information presents combined results of operations for each of the periods presented, giving effect to the acquisition as if it had been completed on January 1, 2017. The pro forma financial information includes charges for the fair value write-up associated with acquired inventory, adjustments for amortization expense of acquired intangible assets and tax-related expenses. The pro forma results of operations are presented for informational purposes only and are not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place on January 1, 2017 or of results that may occur in the future (in thousands, except per share data): Year Ended December 29, December 30, (Unaudited) Revenues 882,109 824,009 Net income 87,874 27,958 Earnings per share: Basic 2.04 0.66 Diluted 2.00 0.65 On January 20, 2017, the Company acquired Zentri, Inc., a private company. Zentri is an innovator in low-power, cloud-connected Wi-Fi technologies for the IoT. The Company acquired Zentri for approximately $18.1 million, including initial cash consideration of approximately $14.3 million, and potential additional consideration with an estimated fair value of approximately $3.8 million at the date of acquisition. The purchase price was allocated as follows: intangible assets—$6.7 million; goodwill—$12.1 million; and other net liabilities—$0.7 million. The goodwill is not deductible for tax purposes. Pro forma information related to this acquisition has not been presented because it would not be materially different from amounts reported. On October 3, 2016, the Company acquired Micrium, a private company. Micrium is a supplier of real-time operating system (RTOS) software for the IoT. The Company acquired Micrium for approximately $12.4 million, consisting of approximately $8.2 million in cash and $4.2 million in stock consideration. An additional approximately $1.0 million in stock consideration was accounted for as a transaction separate from the business combination based on its economic substance and will be recorded as post-combination compensation expense over four years. The purchase price was allocated as follows: intangible assets—$9.5 million; goodwill—$3.4 million; and other net liabilities—$0.5 million. A portion of the goodwill is deductible for tax purposes. Pro forma information related to this acquisition has not been presented because it would not be materially different from amounts reported. On July 1, 2013, the Company acquired Energy Micro. In fiscal 2016, the Company entered into an agreement which settled the amount of the earn-out to be paid for fiscal 2015 through 2018. The total settlement amount was approximately $16.0 million (in lieu of potential payments of up to $26.7 million) and was paid on May 11, 2016. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 29, 2018 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | 9. Goodwill and Other Intangible Assets The following summarizes the activity in goodwill for the years ended December 29, 2018 and December 30, 2017 (in thousands): Year Ended December 29, December 30, Beginning balance 288,227 276,130 Additions due to business combinations 109,117 12,097 ​ ​ ​ ​ ​ ​ ​ Ending balance 397,344 288,227 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The gross carrying amount and accumulated amortization of other intangible assets are as follows (in thousands): December 29, 2018 December 30, 2017 Weighted-Average Gross Accumulated Gross Accumulated Core and developed technology 8 237,265 (102,116 ) 161,700 (89,442 ) Customer relationships 5 46,890 (21,075 ) 25,470 (16,180 ) Patents — — — 3,000 (2,750 ) Trademarks 7 12,310 (2,442 ) 3,690 (2,344 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total 8 296,465 (125,633 ) 193,860 (110,716 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross intangible assets increased $125.7 million in fiscal 2018 for assets added due to the acquisition of Z-Wave business. This increase was offset by $23.1 million due to the removal of fully amortized assets. Amortization expense related to intangible assets for fiscal 2018, 2017 and 2016 was $38.0 million, $27.1 million and $27.3 million, respectively. The estimated aggregate amortization expense for intangible assets subject to amortization for each of the five succeeding fiscal years is as follows (in thousands): Fiscal Year 2019 39,222 2020 36,727 2021 32,337 2022 24,206 2023 18,286 |
Debt
Debt | 12 Months Ended |
Dec. 29, 2018 | |
Debt | |
Debt | 10. Debt 1.375% Convertible Senior Notes On March 6, 2017, the Company completed a private offering of $400 million principal amount convertible senior notes (the "Notes"). The Notes bear interest semi-annually at a rate of 1.375% per year and will mature on March 1, 2022, unless repurchased, redeemed or converted at an earlier date. The Company used $72.5 million of the proceeds to pay off the then remaining balance under its credit agreement. The Notes are convertible at an initial conversion rate of 10.7744 shares of common stock per $1,000 principal amount of the Notes, or approximately 4.3 million shares of common stock, which is equivalent to a conversion price of approximately $92.81 per share. The conversion rate is subject to adjustment under certain circumstances. Holders may convert the Notes under the following circumstances: during any calendar quarter after the calendar quarter ended on June 30, 2017 if the closing price of the Company's common stock for at least 20 trading days in the 30 consecutive trading days ending on the last trading day of the preceding calendar quarter is greater than or equal to 130% of the conversion price of the Notes; during the five business day period after any ten consecutive trading day period (the "measurement period") in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the closing sale price of our common stock and the conversion rate on each such trading day; if specified distributions or corporate events occur; if the Notes are called for redemption; or at any time after December 1, 2021. The Company may redeem all or any portion of the Notes, at its option, on or after March 6, 2020, if the last reported sale price of the Company's common stock has been at least 130% of the conversion price then in effect for at least 20 trading days during any 30 consecutive trading day period. Upon conversion, the Notes may be settled in cash, shares of the Company's common stock or a combination of cash and shares, at the Company's election. The principal balance of the Notes was separated into liability and equity components, and was recorded initially at fair value. The excess of the principal amount of the liability component over its carrying amount represents the debt discount, which is amortized to interest expense over the term of the Notes using the effective interest method. The carrying amount of the liability component was estimated by discounting the contractual cash flows of similar non-convertible debt at an appropriate market rate at the date of issuance. The Company incurred debt issuance costs of approximately $10.6 million, which was allocated to the liability and equity components in proportion to the allocation of the proceeds. The costs allocated to the liability component are being amortized as interest expense over the term of the Notes using the effective interest method. The carrying amount of the Notes consisted of the following (in thousands): December 29, December 30, Liability component Principal 400,000 400,000 Unamortized debt discount (39,298 ) (50,499 ) Unamortized debt issuance costs (5,931 ) (7,622 ) ​ ​ ​ ​ ​ ​ ​ Net carrying amount 354,771 341,879 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity component Net carrying amount 57,735 57,735 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The liability component of the Notes is recorded in convertible debt on the Consolidated Balance Sheet. The equity component of the Notes is recorded in additional paid-in capital. The effective interest rate for the liability component was 4.75%. As of December 29, 2018, the remaining period over which the debt discount and debt issuance costs will be amortized was 3.2 years. Interest expense related to the Notes was comprised of the following (in thousands): Year Ended December 29, December 30, Contractual interest expense 5,500 4,492 Amortization of debt discount 11,202 8,816 Amortization of debt issuance costs 1,690 1,330 ​ ​ ​ ​ ​ ​ ​ 18,392 14,638 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Credit Facility In connection with the Company's offering of the Notes, it and certain of its domestic subsidiaries (the "Guarantors") amended its existing credit agreement and paid off the then remaining balance of $72.5 million. The amended agreement (the "Credit Facility") consists of a $300 million revolving credit facility with a maturity date of July 24, 2020. The Credit Facility includes a $25 million letter of credit sublimit and a $10 million swingline loan sublimit. The Company also has an option to increase the size of the borrowing capacity by up to an aggregate of $200 million in additional commitments, subject to certain conditions. The revolving credit facility, other than swingline loans, will bear interest at the Eurodollar rate plus an applicable margin or, at the option of the Company, a base rate (defined as the highest of the Wells Fargo prime rate, the Federal Funds rate plus 0.50% and the Eurodollar Base Rate plus 1.00%) plus an applicable margin. Swingline loans accrue interest at the base rate plus the applicable margin for base rate loans. The applicable margins for the Eurodollar rate loans range from 1.25% to 2.00% and for base rate loans range from 0.25% to 1.00%, depending in each case, on the leverage ratio as defined in the Credit Facility. The Credit Facility contains various conditions, covenants and representations with which the Company must be in compliance in order to borrow funds and to avoid an event of default, including financial covenants that the Company must maintain a leverage ratio (funded debt/EBITDA) of no more than 3.00 to 1 and a minimum fixed charge coverage ratio (EBITDA/interest payments, income taxes and capital expenditures) of no less than 1.25 to 1. As of December 29, 2018, the Company was in compliance with all covenants of the Credit Facility. The Company's obligations under the Credit Facility are guaranteed by the Guarantors and are secured by a security interest in substantially all assets of the Company and the Guarantors. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 29, 2018 | |
Commitments and Contingencies | |
Commitments and Contingencies | 11. Commitments and Contingencies The Company leases certain facilities under operating lease agreements that expire at various dates through 2027. Some of these arrangements contain renewal options and require the Company to pay taxes, insurance and maintenance costs. Rent expense under operating leases was $6.0 million, $5.5 million and $4.7 million for fiscal 2018, 2017 and 2016, respectively. The minimum annual future rentals under the terms of these leases as of December 29, 2018 are as follows (in thousands): Fiscal Year 2019 5,287 2020 4,746 2021 4,051 2022 3,485 2023 2,810 Thereafter 3,842 ​ ​ ​ ​ Total minimum lease payments 24,221 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company has committed to invest up to $10.0 million in a limited partnership, of which approximately $4.3 million was funded through December 29, 2018. On January 28, 2014, Cresta Technology Corporation ("Cresta Technology"), a Delaware corporation, filed a lawsuit against the Company in the United States District Court in the District of Delaware, alleging infringement of three United States Patents (the "Cresta Patents"). On July 16, 2014, the Company filed a lawsuit against Cresta Technology in the United States District Court in the Northern District of California alleging infringement of six United States Patents. Cresta Technology declared bankruptcy in 2016 and the Cresta patents and the Delaware lawsuit were acquired by Crespe LLC. On September 17, 2018, the Company and Crespe LLC settled all matters. The Company received a non-material payment from Crespe LLC. There was no payment from the Company and the Company received a full license to the Cresta Patents and dismissal of all claims. On June 21, 2018, Bandspeed, LLC ("Bandspeed"), a Texas limited liability company, filed a lawsuit against the Company in the United States District Court of the Western District of Texas, Austin Division, alleging infringement of eight United States Patents. On November 9, 2018, the Company and Bandspeed settled all matters, and the Court ordered a dismissal on November 19, 2018. The Company made a non-material payment to Bandspeed and received a full license to the alleged patents and dismissal of all claims. The Company is involved in various other legal proceedings that have arisen in the normal course of business. While the ultimate results cannot be predicted with certainty, the Company does not expect them to have a material adverse effect on its Consolidated Financial Statements. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 29, 2018 | |
Stockholders' Equity | |
Stockholders' Equity | 12. Stockholders' Equity The Company issued 0.8 million shares of common stock during fiscal 2018. The Board of Directors authorized the following share repurchase programs (in thousands): Program Authorization Date Program Program October 2017 December 2019 200,000 * January 2017 December 2017 100,000 August 2015 December 2016 100,000 * In October 2018, the Board of Directors increased the share repurchase amount for the October 2017 program from $100 million to $200 million and extended the termination date from December 2018 to December 2019. These programs allow for repurchases to be made in the open market or in private transactions, including structured or accelerated transactions, subject to applicable legal requirements and market conditions. The Company repurchased 0.4 million shares of its common stock for $39.3 million during fiscal 2018. The Company did not repurchase any shares of its common stock during fiscal 2017. The Company repurchased 0.9 million shares of its common stock for $40.5 million during fiscal 2016. These shares were retired upon repurchase. The following table summarizes the effect on net income from reclassifications out of accumulated other comprehensive loss (in thousands): Year ended Reclassification December 29, December 30, December 31, Losses on available-for-sales securities to: Interest income and other, net (49 ) — — Gains (losses) on cash flow hedges to: Interest income and other, net (316 ) — — Interest expense — 1,808 (249 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (365 ) 1,808 (249 ) Income tax (expense) benefit ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total gains (losses) reclassified (288 ) 1,175 (162 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The income tax effects of the components of other comprehensive income (loss) were as follows (in thousands): Year ended Income tax (expense) benefit on: December 29, December 30, December 31, Net changes to available-for-sale securities: Unrealized gains (losses) arising during the period (79 ) 255 63 Reclassification for losses included in net income (10 ) — — Net changes to cash flow hedges: Unrealized gains (losses) arising during the period 200 — (513 ) Reclassification for gains (losses) included in net income (66 ) 633 (87 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 45 888 (537 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Revenues
Revenues | 12 Months Ended |
Dec. 29, 2018 | |
Revenues | |
Revenues | 13. Revenues The Company groups its revenues into four categories, based on the markets and applications in which its products may be used. The following disaggregates the Company's revenue by product category (in thousands): Year Ended December 29, December 30, December 31, Internet of Things 463,838 395,012 314,614 Infrastructure 199,478 152,158 147,677 Broadcast 141,412 152,980 157,746 Access 63,539 68,717 77,589 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 868,267 768,867 697,626 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Under the modified retrospective method, prior period amounts have not been adjusted. A portion of the Company's sales are made to distributors under agreements allowing certain rights of return and/or price protection related to the final selling price to the end customers. These factors impact the timing and uncertainty of revenues and cash flows. The Company recognized revenue of $24.3 million during fiscal 2018 from performance obligations that were satisfied in previous reporting periods. The following disaggregates the Company's revenue by sales channel (in thousands): Year Ended December 29, December 30, December 31, Distributors 618,989 547,419 471,622 Direct customers 249,278 221,448 226,004 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 868,267 768,867 697,626 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Under the modified retrospective method, prior period amounts have not been adjusted. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 29, 2018 | |
Stock-Based Compensation | |
Stock-Based Compensation | 14. Stock-Based Compensation In fiscal 2009, the stockholders of the Company approved the 2009 Stock Incentive Plan (the "2009 Plan") and the 2009 Employee Stock Purchase Plan (the "2009 Purchase Plan"). In fiscal 2017, the stockholders of the Company approved amendments to both the 2009 Plan and the 2009 Purchase Plan. These amendments authorized additional shares of common stock for issuance, to comply with changes in applicable law, improve the Company's corporate governance and to implement other best practices. 2009 Stock Incentive Plan Under the 2009 Plan, the following may be granted: stock options, stock appreciation rights, performance shares, performance stock units, restricted stock units (RSUs), restricted stock awards (RSAs), performance-based awards and other awards (collectively, all such grants are referred to as "awards"). The fiscal 2017 amendments to the 2009 Plan created a single share pool. All awards now deduct one share from the 2009 Plan shares available for issuance for each share granted. Awards granted under the 2009 Plan generally contain vesting provisions ranging from three to four years. The exercise price of stock options offered under the 2009 Plan may not be less than 100% of the fair market value of a share of our common stock on the date of grant. To the extent awards granted under the 2009 Plan terminate, expire or lapse for any reason, or are settled in cash, shares subject to such awards will again be available for grant. 2000 Stock Incentive Plan In fiscal 2000, the Company's Board of Directors and stockholders approved the 2000 Plan. The 2000 Plan contains programs for (i) the discretionary granting of stock options to employees, non-employee board members and consultants for the purchase of shares of the Company's common stock, (ii) the discretionary issuance of common stock directly (as granted under direct issuance shares in RSAs and RSUs), (iii) the granting of special below-market stock options to executive officers and other highly compensated employees of the Company for which the exercise price can be paid using payroll deductions and (iv) the automatic issuance of stock options to non-employee board members. The discretionary issuance of common stock, RSUs and stock options generally contain vesting provisions ranging from three to eight years. If permitted by the Company, stock options can be exercised immediately and, similar to the direct issuance shares, are subject to repurchase rights which generally lapse in accordance with the vesting schedule. The repurchase rights provide that upon certain defined events, the Company can repurchase unvested shares at the price paid per share. The term of each stock option is no more than ten years from the date of grant. The Company granted to its employees 0.6 million, 0.7 million and 1.3 million shares of full value awards and 0.0 million, 0.0 million, and 0.2 million stock options from the 2009 Plan during fiscal 2018, 2017 and 2016, respectively. The Company recorded $0.9 million in selling, general and administrative expense during fiscal 2016 in connection with the modifications of certain equity awards. The modifications were pursuant to three employee terminations in fiscal 2016. There were no other significant modifications made to any stock grants during fiscal 2018, 2017 or 2016. Included in the full value awards granted under the 2009 Plan in fiscal 2018, 2017 and 2016 were a total of 41 thousand, 54 thousand and 65 thousand market-based stock awards, respectively. The awards, also known as market stock units (MSUs), provide the rights to acquire a number of shares of common stock for no cash consideration based upon achievement of specified levels of market conditions. The requisite service period for these MSUs is also the vesting period, which is generally three years. The performance criteria of the MSUs measure the difference between the total stockholders' return of the Company against that of the PHLX Semiconductor Sector Total Return Index. Also included in the full value awards granted under the 2009 Plan during fiscal 2018, 2017 and 2016 were 41 thousand, 54 thousand and 65 thousand performance-based stock awards, respectively. The awards, also known as PSUs, provide for the rights to acquire a number of shares of common stock for no cash consideration based upon the achievement of specified revenue objectives during the year. The requisite service period for these PSUs is approximately three years from the date of grant. 2009 Employee Stock Purchase Plan The rights to purchase common stock granted under the 2009 Purchase Plan are intended to be treated as either (i) purchase rights granted under an "employee stock purchase plan," as that term is defined in Section 423(b) of the Internal Revenue Code (the "423(b) Plan"), or (ii) purchase rights granted under an employee stock purchase plan that is not subject to the terms and conditions of Section 423(b) of the Internal Revenue Code (the "Non-423(b) Plan"). The Company will retain the discretion to grant purchase rights under either the 423(b) Plan or the Non-423(b) Plan. Eligible employees may purchase a limited number of shares of the Company's common stock at no less than 85% of the fair market value of a share of common stock at prescribed purchase intervals during an offering period. Each offering period will be comprised of a series of one or more successive and/or overlapping purchase intervals and has a maximum term of 24 months. During fiscal 2018, 2017 and 2016, the Company issued 223 thousand, 239 thousand and 224 thousand shares, respectively, under the 2009 Purchase Plan to its employees. The weighted-average fair value for purchase rights granted in fiscal 2018 under the 2009 Purchase Plan was $22.59 per share. Accounting for Stock-Based Compensation Stock-based compensation costs are based on the fair values on the date of grant for stock awards and stock options and on the date of enrollment for the employee stock purchase plans. The fair values of stock awards (such as RSUs, PSUs and RSAs) are estimated based on their intrinsic values. The fair values of MSUs are estimated using a Monte Carlo simulation. The fair values of stock options and employee stock purchase plans are estimated using the Black-Scholes option-pricing model. The Black-Scholes valuation calculation requires the Company to estimate key assumptions such as future stock price volatility, expected terms, risk-free rates and dividend yield. Expected stock price volatility is based upon a combination of both historical volatility and implied volatility derived from traded options on the Company's stock in the marketplace. Expected term is derived from an analysis of historical exercises and remaining contractual life of options. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. The Company has never paid cash dividends and does not currently intend to pay cash dividends, thus it has assumed a 0% dividend yield. The Monte Carlo simulation used to calculate the fair value of the MSUs simulates the present value of the potential outcomes of future stock prices of the Company and the Philadelphia Semiconductor Sector Total Return Index over the requisite service period. The projection of stock prices are based on the risk-free rate of return, the volatilities of the stock price of the Company and the Index, and the correlation of the stock price of the Company with the Index. The Company estimates potential forfeitures of stock grants and adjusts compensation cost recorded accordingly. The estimate of forfeitures will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures are recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of stock-based compensation expense to be recognized in future periods. The fair values of stock options and RSUs are amortized as compensation expense on a straight-line basis over the vesting period of the grants. The fair values of RSAs are fully expensed in the period of grant, when shares are immediately issued with no vesting restrictions. The fair values of MSUs are amortized as compensation expense on a straight-line basis over the performance and service periods of the grants. The fair values of PSUs are amortized as compensation expense on a straight-line basis over the performance period when the performance is probable of achievement, and over the remaining service periods thereafter. Compensation expense recognized is shown in the operating activities section of the Consolidated Statements of Cash Flows. The fair values estimated from the Black-Scholes option-pricing model for ESPP and stock options granted were calculated using the following assumptions: Year Ended Employee Stock Purchase Plan December 29, December 30, December 31, Expected volatility 30 % 28 % 30 % Risk-free interest rate % 2.4 % 1.1 % 0.6 % Expected term (in months) 9 8 15 Dividend yield — — — Year Ended Stock Options December 29, December 30, December 31, Expected volatility — — 32 % Risk-free interest rate % — — 1.3 % Expected term (in years) — — 5.4 Dividend yield — — — The fair values estimated from Monte Carlo simulation for MSUs were calculated using the following assumptions: Year Ended MSUs December 29, December 30, December 31, Expected volatility 29 % 31 % 30 % Risk-free interest rate % 2.4 % 1.6 % 0.9 % Expected term (in years) 2.9 2.9 2.9 Dividend yield — — — A summary of stock-based compensation activity with respect to fiscal 2018 follows: Stock Options Shares Weighted- Weighted-Average Aggregate Outstanding at December 30, 2017 170 38.88 Exercised (33 ) 36.45 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 29, 2018 137 39.47 7.1 5,327 Vested at December 29, 2018 and expected to vest Exercisable at December 29, 2018 RSAs and RSUs Shares Weighted- Weighted-Average Aggregate Outstanding at December 30, 2017 1,523 — Granted 522 — Vested or issued (730 ) — Cancelled or forfeited (97 ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 29, 2018 1,218 — 0.86 95,620 Outstanding at December 29, 2018 and expected to vest PSUs and MSUs Shares Weighted- Weighted-Average Aggregate Outstanding at December 30, 2017 259 — Granted 81 — Earned or issued (37 ) — Cancelled or forfeited (21 ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 29, 2018 282 — 1.1 22,164 Outstanding at December 29, 2018 and expected to vest The following summarizes the Company's weighted average fair value at the date of grant: Year Ended December 29, December 30, December 31, Per grant of RSAs and RSUs 93.75 72.85 40.55 Per grant of PSUs and MSUs 97.53 78.40 32.23 Per grant of stock options — — 40.38 The following summarizes the Company's stock-based payment and stock option values (in thousands): Year Ended December 29, December 30, December 31, Intrinsic value of stock options exercised 1,952 2,174 2,560 Intrinsic value of RSUs that vested 68,012 53,093 36,502 Grant date fair value of RSUs that vested 37,720 32,449 39,853 Intrinsic value of MSUs that vested 3,562 687 — Grant date fair value of MSUs that vested 1,788 633 — The Company received cash of $13.3 million for the issuance of common stock, and paid $19.5 million for shares withheld for taxes, during fiscal 2018. The Company issues shares from the shares reserved under its stock plans upon the exercise of stock options, vesting of RSUs, PSUs and MSUs, and purchases through employee stock purchase plans. The Company does not currently expect to repurchase shares from any source to satisfy such obligation. The following table presents details of stock-based compensation costs recognized in the Consolidated Statements of Income (in thousands): Year Ended December 29, December 30, December 31, Cost of revenues 1,238 1,090 1,070 Research and development 23,867 21,771 19,573 Selling, general and administrative 24,972 21,891 18,985 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 50,077 44,752 39,628 Income tax benefit 8,890 11,073 8,496 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 41,187 33,679 31,132 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The decrease in income tax benefit in fiscal 2018 was due to the reduced current and future deductibility of executive stock compensation as a result of the Tax Cuts and Jobs Act. The increase in income tax benefit in fiscal 2017 was primarily due to the recognition of excess tax benefits in connection with the Company's adoption of ASU 2016-09, offset in part by an adjustment in the deferred tax asset due to the recent tax reform. The Company had approximately $65.4 million of total unrecognized compensation costs related to granted stock options and awards as of December 29, 2018 that are expected to be recognized over a weighted-average period of approximately 1.9 years. There were no significant stock-based compensation costs capitalized into assets in any of the periods presented. As of December 29, 2018, the Company had reserved shares of common stock for future issuance as follows (in thousands): 2009 Stock Incentive Plan 2,343 2009 Employee Stock Purchase Plan 985 ​ ​ ​ ​ Total shares reserved 3,328 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 29, 2018 | |
Employee Benefit Plan | |
Employee Benefit Plan | 15. Employee Benefit Plan The Company maintains a defined contribution or 401(k) Plan for its qualified U.S. employees. Participants may contribute a percentage of their compensation on a pre-tax basis, subject to a maximum annual contribution imposed by the Internal Revenue Code. The Company may make discretionary matching contributions as well as discretionary profit-sharing contributions to the 401(k) Plan. The Company contributed $3.7 million, $3.5 million and $3.4 million to the 401(k) Plan during fiscal 2018, 2017 and 2016, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 29, 2018 | |
Related Party Transactions | |
Related Party Transactions | 16. Related Party Transactions On July 1, 2013, Geir Førre joined the Company as senior vice president. Mr. Førre was chief executive officer of Energy Micro, until it was acquired by the Company. Mr. Førre was the beneficial owner of approximately 30% of the Energy Micro equity. In fiscal 2016, the Company entered into an agreement which settled the amount of the earn-out to be paid for fiscal 2015 through 2018. Under this agreement, Mr. Førre received approximately $4.8 million. Alf-Egil Bogen served on the Company's board of directors from October 17, 2013 to April 21, 2016. Mr. Bogen was chief marketing officer of Energy Micro, until it was acquired by the Company. Mr. Bogen was the beneficial owner of approximately 2% of the Energy Micro equity. Under the settlement agreement, Mr. Bogen received approximately $0.3 million that was paid for fiscal 2015 through 2018 earn-out. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 29, 2018 | |
Income Taxes | |
Income Taxes | 17. Income Taxes The Tax Cuts and Jobs Act (the Act) was enacted in the U.S. on December 22, 2017. The Act reduced the U.S. federal corporate income tax rate to 21% from 35%, required companies to pay a one-time Transition Tax on earnings of certain foreign subsidiaries that were previously tax deferred and created new taxes on certain foreign-sourced earnings. In 2017 and the first nine months of 2018, the Company recorded provisional amounts for certain enactment-date effects of the Act by applying the guidance in Staff Accounting Bulletin No. 118 or "SAB 118" because it had not yet completed the enactment-date accounting for these effects. In 2017, the Company recorded tax expense related to the enactment-date effects of the Act that included recording the one-time Transition Tax liability related to undistributed earnings of certain foreign subsidiaries that were not previously taxed, the revaluation of deferred tax assets and liabilities and other deferred tax impacts. In 2018, certain discrete adjustments to provisional amounts were recorded. The changes to the 2017 enactment-date provisional amounts decreased the effective tax rate in 2018 by (6.2)%. The Company applied the guidance in SAB 118 when accounting for the enactment-date effects of the Act in 2017 and throughout 2018. At December 30, 2017, the Company had not completed its accounting for the enactment-date income tax effects of the Act under ASC 740, Income Taxes , specifically for the following aspects: remeasurement of deferred tax assets and liabilities, one-time Transition Tax, its indefinite reinvestment assertion and its accounting policy for global intangible low-taxed income. As of December 29, 2018, the Company has now completed its accounting for all of the enactment-date income tax effects of the Act. As further discussed below, during 2018, the Company recognized a benefit of $4.5 million to the provisional amounts recorded at December 30, 2017 and included these adjustments as a component of income tax expense from continuing operations. The one-time Transition Tax is based on the Company's total post-1986 earnings and profits (E&P), which were previously deferred from U.S. income tax under U.S. tax law. The Company recorded a provisional amount for its one-time Transition Tax liability for each of its foreign subsidiaries, resulting in a Transition Tax cost of $54.4 million, which after offset by tax attributes resulted in a total provisional Transition Tax liability of $42.6 million at December 30, 2017. Upon further analysis of the Act, Notices and Regulations issued and proposed by the U.S. Department of the Treasury and the Internal Revenue Service, the Company finalized its calculations of the Transition Tax liability during 2018. The Company decreased its December 30, 2017 provisional amount by $6.1 million, which is included as a component of income tax expense from continuing operations. The Company elected to pay the Transition Tax over the eight-year period provided in the Act. As of December 29, 2018, the unpaid balance of its Transition Tax obligation is $21.6 million, which is payable between April 2022 and April 2025. As of December 30, 2017, the Company remeasured certain deferred tax assets and liabilities based on the tax rates at which they were expected to reverse in the future (which was generally 21%), by recording a net provisional benefit of $28.1 million. This included the release of a deferred tax liability for future foreign earnings generated by one of the Company's foreign subsidiaries upon resolution of the Altera case of $39.4 million as well as the release of approximately $10.5 million of valuation allowances with corresponding deferred tax benefits. These benefits were offset by the revaluation of the Company's net deferred tax asset and a corresponding increase to deferred tax expense of $21.8 million. Upon further analysis of certain aspects of the Act and refinement of its calculations during the 12 months ended December 29, 2018, the Company reduced its provisional benefit by $1.0 million, which is included as a component of income tax expense from continuing operations. The Act subjects a U.S. shareholder to tax on GILTI earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income , states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to provide for the tax expense related to GILTI in the year the tax is incurred as a period expense. Because the Company was still evaluating the GILTI provisions as of December 30, 2017, no GILTI-related deferred amounts were recorded in 2017. After further consideration in the current year, the Company has elected to account for GILTI as a period cost in the year the tax is incurred. Beginning in 2018, the Act provides for a 100% dividends received deduction for dividends received from 10-percent owned foreign corporations by U.S. corporate shareholders, subject to a one-year holding period. Although dividend income is now generally exempt from U.S. federal income tax in the hands of U.S. corporate shareholders, companies must still apply the guidance of ASC 740-30-25-18 to account for the tax consequences of outside basis differences and other tax impacts of their investments in non-U.S. subsidiaries. As the Company was still evaluating how the Act would impact the Company's existing indefinite reinvestment assertion as of December 30, 2017, no deferred tax impacts for this item were recorded. Upon further analysis, the Company has modified its unremitted earnings assertion both historically and on a go-forward basis to exclude the net book income of its Singapore subsidiary from the indefinite reinvestment assertion. As a result, the Company has accrued a deferred tax liability of $0.6 million associated with the state tax cost of remitting these earnings which is included as a component of income tax expense from continuing operations. Income before income taxes includes the following components (in thousands): Year Ended December 29, December 30, December 31, Domestic 19,777 9,700 4,313 Foreign 52,384 67,203 60,183 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 72,161 76,903 64,496 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The provision (benefit) for income taxes consists of the following (in thousands): Year Ended December 29, December 30, December 31, Current: Domestic (8,843 ) 48,947 2,639 Foreign 5,888 7,077 4,421 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Current (2,955 ) 56,024 7,060 Deferred: Domestic (8,978 ) (25,760 ) (2,430 ) Foreign 503 (453 ) (1,628 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Deferred (8,475 ) (26,213 ) (4,058 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Provision (benefit) for income taxes (11,430 ) 29,811 3,002 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The reconciliation of the federal statutory tax rate to the Company's effective tax rate is as follows: Year Ended December 29, December 30, December 31, Federal statutory rate 21.0 % 35.0 % 35.0 % Foreign tax rate benefit (12.9 ) (25.4 ) (22.6 ) Research and development tax credits (9.8 ) (4.5 ) (4.1 ) GILTI and Subpart F income 4.3 1.4 1.4 Nondeductible (nontaxable) foreign expenses 3.9 1.1 (4.0 ) State tax expense 1.5 0.9 0.6 Release of prior year unrecognized tax benefits (2.7 ) (0.6 ) (1.7 ) Excess officer compensation 2.4 1.5 1.4 Other tax effects of equity compensation (0.4 ) (2.2 ) (1.5 ) Change in cost-sharing treatment of stock-based compensation (2.2 ) 5.2 (0.5 ) Excess tax benefit of stock-based compensation (5.9 ) (5.6 ) — Change in prior period valuation allowance (2.5 ) (1.3 ) (0.6 ) Transition tax on unremitted foreign earnings (8.4 ) 70.8 — Revaluation of deferred tax balances 0.3 28.2 — Other deferred tax impacts of tax reform (3.1 ) (64.8 ) — Other (1.3 ) (0.9 ) 1.3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effective Tax Rate (15.8 )% 38.8 % 4.7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The effective tax rate for fiscal 2018 decreased from fiscal 2017 primarily due to the reduction in the U.S. federal statutory rate as well as the inclusion of one-time tax impacts recorded in 2017 from the enactment of the Act. This decrease in the effective tax rate was offset by a decrease in the Company's foreign tax rate benefit. The effective tax rate for fiscal 2017 increased from fiscal 2016 primarily due to the one-time Transition Tax on unrepatriated earnings of certain foreign subsidiaries as a result of the enactment of the Act. Additional tax expense was also recognized for the revaluation of the Company's deferred tax assets and liabilities due to the change in the federal tax rate from 35% to 21%. These increases in tax expense were partially offset by the release of a deferred tax liability related to future foreign earnings expected under the Company's intercompany cost-sharing arrangement, as well as a decrease in the valuation allowance established on federal research and development tax credits. On July 27, 2015, the U.S. Tax Court issued an opinion in Altera Corp. v. Commissioner which concluded that related parties in an intercompany cost-sharing arrangement are not required to share expenses related to stock-based compensation. In February 2016, the U.S. Internal Revenue Service appealed the decision to the U.S Court of Appeals for the Ninth Circuit (the "Ninth Circuit"). On July 24, 2018, the Ninth Circuit reversed the 2015 decision of the U.S. Tax Court; however, on August 7, 2018, the Ninth Circuit withdrew its July 2018 decision to allow time for a reconstituted panel to confer on the appeal. On October 16, 2018, a rehearing was held, however, no decision has been made by the Ninth Circuit. Although the U.S. Treasury has not withdrawn the requirement to include stock-based compensation from its regulations, based on the facts and circumstances of the Tax Court Case, the Company continues to reflect a tax benefit in its financial statements based on the expectation that the Tax Court decision will be upheld on appeal. As of the end of fiscal 2018, the Company's financial statements reflect a net deferred tax asset of $27.2 million for this position. The Company will continue to monitor ongoing developments and potential impacts to its Consolidated Financial Statements. The Company's operations in Singapore are subject to reduced tax rates through June 30, 2024, as long as certain conditions are met. Without the impact of the one-time Transition Tax, the income tax benefit from the reduced Singapore tax rate reflected in earnings was approximately $5.4 million (representing $0.12 per diluted share) in fiscal 2018, approximately $11.0 million (representing $0.25 per diluted share) in fiscal 2017 and approximately $7.7 million (representing $0.18 per diluted share) in fiscal 2016. Deferred tax assets and liabilities are recorded for the estimated tax impact of temporary differences between the tax basis and book basis of assets and liabilities. Significant components of the Company's deferred taxes as of December 29, 2018 and December 30, 2017 are as follows (in thousands): December 29, December 30, Deferred tax assets: Net operating loss carryforwards 9,973 12,925 Research and development tax credit carryforwards 12,500 12,322 Stock-based compensation 4,360 5,256 Depreciation and amortization 7,799 — Capitalized research and development 2,521 3,468 Deferred income on shipments to distributors 5,824 7,070 Expected future cost-sharing adjustment 25,257 21,582 Accrued liabilities and other 7,737 6,999 ​ ​ ​ ​ ​ ​ ​ 75,971 69,622 Less: Valuation allowance (4,975 ) (6,518 ) ​ ​ ​ ​ ​ ​ ​ 70,996 63,104 Deferred tax liabilities: Acquired intangible assets 20,656 13,884 Depreciation and amortization 4,604 1,274 Convertible debt 8,080 10,351 Prepaid expenses and other 2,142 1,421 ​ ​ ​ ​ ​ ​ ​ 35,482 26,930 ​ ​ ​ ​ ​ ​ ​ Net deferred tax assets 35,514 36,174 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 29, 2018, the Company had federal net operating loss and research and development tax credit carryforwards of approximately $32.7 million and $1.9 million, respectively, as a result of the Silicon Clocks, Spectra Linear and Ember acquisitions. These carryforwards expire in fiscal years 2020 through 2031. Recognition of these loss and credit carryforwards is subject to an annual limit, which may cause them to expire before they are used. As of December 29, 2018, the Company had foreign net operating loss carryforwards of approximately $1.9 million as a result of the Energy Micro acquisition. These loss carryforwards do not expire and recognition is not subject to an annual limit. The Company also had state loss, state tentative minimum tax credit, and state research and development tax credit carryforwards of approximately $43.8 million, $0.1 million, and $13.5 million, respectively. A portion of these loss and credit carryforwards was generated by the Company and a portion was acquired through the Integration Associates, Silicon Clocks, Spectra Linear, Ember and Zentri acquisitions. Certain of these carryforwards expire in fiscal years 2019 through 2036, and others do not expire. Recognition of some of these loss and credit carryforwards is subject to an annual limit, which may cause them to expire before they are used. A valuation allowance is established against a deferred tax asset when it is more likely than not that the deferred tax asset will not be realized. As of December 29, 2018, the Company maintains a valuation allowance with respect to certain deferred tax assets relating to state research and development tax credit and state net operating loss carryforwards. At the end of fiscal 2018, undistributed earnings of certain of the Company's foreign subsidiaries of approximately $105 million are intended to be permanently reinvested outside the U.S. Accordingly, no provision for foreign withholding tax and state income taxes associated with a distribution of these earnings has been made. Determination of the amount of the unrecognized deferred tax liability on these unremitted earnings is not practicable. The following table summarizes the activity related to gross unrecognized tax benefits (in thousands): Year Ended December 29, December 30, December 31, Beginning balance 3,187 3,054 3,610 Additions based on tax positions related to current year 630 456 439 Additions based on tax positions related to prior years 115 114 99 Reductions for tax positions as a result of a lapse of the applicable statute of limitations (1,896 ) (437 ) (1,094 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ending balance 2,036 3,187 3,054 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 29, 2018, December 30, 2017 and December 31, 2016, the Company had gross unrecognized tax benefits, inclusive of interest, of $2.1 million, $3.2 million and $3.0 million, respectively, of which $2.1 million, $3.2 million and $2.2 million, respectively, would affect the effective tax rate if recognized. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. These amounts were not material for fiscal years 2018, 2017 and 2016. The Norwegian Tax Administration ("NTA") has completed its examination of the Company's Norwegian subsidiary for income tax matters relating to fiscal years 2013, 2014, 2015 and 2016. The Company received a final assessment from the NTA in December 2017 concerning an adjustment to its 2013 taxable income related to the pricing of an intercompany transaction. The Company is currently appealing the assessment. Since the original assessment was issued, the NTA has reduced its assessment. The revised adjustment to the pricing of the intercompany transaction results in approximately $16.2 million additional Norwegian income tax. The Company disagrees with the NTA's assessment and believes the Company's position on this matter is more likely than not to be sustained. The Company plans to exhaust all available administrative remedies, and if unable to resolve this matter through administrative remedies with the NTA, the Company plans to pursue judicial remedies. The NTA may request an advance payment of approximately $9 million during the appeal process. The Company believes that it has accrued adequate reserves related to all matters contained in tax periods open to examination. Should the Company experience an unfavorable outcome in the NTA matter, however, such an outcome could have a material impact on its financial statements. Tax years 2014 through 2018 remain open to examination by the major taxing jurisdictions in which the Company operates. The Company is not currently under audit in any major taxing jurisdiction. The Company believes it is reasonably possible that the gross unrecognized tax benefits will not decrease in the next 12 months. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 29, 2018 | |
Segment Information | |
Segment Information | 18. Segment Information The Company has one operating segment, mixed-signal analog intensive products, consisting of numerous product areas. The Company's chief operating decision maker is considered to be its Chief Executive Officer. The chief operating decision maker allocates resources and assesses performance of the business and other activities at the operating segment level. The Company groups its products into four categories, based on the markets and applications in which the products may be used. See Note 13, Revenues , for a summary of the Company's revenue by product category. Revenue is attributed to a geographic area based on the shipped-to location. The following summarizes the Company's revenue by geographic area (in thousands): Year Ended December 29, December 30, December 31, United States 149,385 112,574 94,583 China 344,255 307,748 291,974 Rest of world 374,627 348,545 311,069 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total 868,267 768,867 697,626 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following summarizes the Company's property and equipment, net by geographic area (in thousands): December 29, December 30, United States 128,622 119,746 Rest of world 10,427 7,936 ​ ​ ​ ​ ​ ​ ​ Total 139,049 127,682 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 29, 2018 | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | Valuation Allowance for Balance at Additions Additions Deductions Balance at (in thousands) Year ended December 29, 2018 6,518 435 — (1,978 ) 4,975 Year ended December 30, 2017 12,361 2,110 1,732 (9,685 ) 6,518 Year ended December 31, 2016 10,264 2,715 — (618 ) 12,361 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 29, 2018 | |
Significant Accounting Policies | |
Foreign Currency Transactions | Foreign Currency Transactions The Company's foreign subsidiaries are considered to be extensions of the U.S. Company. The functional currency of the foreign subsidiaries is the U.S. dollar. Accordingly, gains and losses resulting from remeasuring transactions denominated in currencies other than U.S. dollars are included in interest income and other, net in the Consolidated Statements of Income. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Among the significant estimates affecting the financial statements are those related to inventories, goodwill, acquired intangible assets, other long-lived assets, revenue recognition, stock-based compensation and income taxes. Actual results could differ from those estimates, and such differences could be material to the financial statements. |
Adoption of New Revenue Accounting Standard | Adoption of New Revenue Accounting Standard The Company adopted Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers , on December 31, 2017, the first day of its fiscal year ended December 29, 2018. The Company elected the modified retrospective method of adoption which only applies to those contracts which were not completed as of December 31, 2017. Prior periods have not been adjusted. In connection with its adoption of ASC 606, the Company recorded a cumulative-effect adjustment to retained earnings of $26.2 million on December 31, 2017. The following reflects the material changes recorded in connection with the cumulative-effect adjustment (in thousands): Financial Statement Line Item Increase Accounts receivable, net 230 Prepaid expenses and other current assets 7,579 Other assets, net (2,282 ) Deferred revenue and returns liability 27,806 Deferred income on shipments to distributors (50,115 ) Other current liabilities 1,641 Retained earnings 26,195 The following presents the amounts by which financial statement line items were affected in the current period due to the adoption of ASC 606 (in thousands): Financial Statement Line Item* Increase Consolidated Statements of Income Year Ended Revenues 12,943 Cost of revenues 4,234 Net income 6,610 Earnings per share: Basic 0.15 Diluted 0.15 Consolidated Balance Sheet** December 29, Prepaid expenses and other current assets 5,953 Goodwill (2,842 ) Other assets, net (4,464 ) Deferred revenue and returns liability 22,494 Deferred income on shipments to distributors (60,789 ) Other current liabilities 4,282 Retained earnings 32,805 * Excludes line items that were not materially affected by the Company's adoption of ASC 606. The adoption had no impact to cash provided by or used in net operating, investing or financing activities in the Consolidated Statements of Cash Flows. ** Balance sheet line item amounts include the cumulative-effect adjustment recorded on December 31, 2017. The primary impact of the Company's adoption of ASC 606 resulted from the acceleration of the timing of revenue recognition on sales to distributors. The Company previously deferred revenue and cost of revenue on such sales until the distributors sold the product to the end customers. The Company now recognizes revenue at the time of sale to the distributor provided all other revenue recognition criteria have been met. The Company records a right of return asset and a returns liability in place of the deferred income on shipments to distributors previously recorded under ASC 605. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair values of the Company's financial instruments are recorded using a hierarchical disclosure framework based upon the level of subjectivity of the inputs used in measuring assets and liabilities. The three levels are described below: Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2—Inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3—Inputs are unobservable for the asset or liability and are developed based on the best information available in the circumstances, which might include the Company's own data. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash deposits, certificates of deposit, money market funds and investments in debt securities with original maturities of ninety days or less when purchased. |
Investments | Investments The Company's investments typically have original maturities greater than ninety days as of the date of purchase and are classified as either available-for-sale or trading securities. Investments in available-for-sale securities are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive loss in the Consolidated Balance Sheet. Investments in trading securities are reported at fair value, with both realized and unrealized gains and losses recorded in interest income and other, net in the Consolidated Statement of Income. Investments in which the Company has the ability and intent, if necessary, to liquidate in order to support its current operations (including those with contractual maturities greater than one year from the date of purchase) are classified as short-term. The Company reviews its available-for-sale investments as of the end of each reporting period for other-than-temporary declines in fair value based on the specific identification method. The Company considers various factors in determining whether an impairment is other-than-temporary, including the severity and duration of the impairment, changes in underlying credit ratings, forecasted recovery, its intent to sell or the likelihood that it would be required to sell the investment before its anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. When the Company concludes that an other-than-temporary impairment has occurred, the Company assesses whether it intends to sell the security or if it is more likely than not that it will be required to sell the security before recovery. If either of these two conditions is met, the Company recognizes a charge in earnings equal to the entire difference between the security's amortized cost basis and its fair value. If the Company does not intend to sell a security and it is not more likely than not that it will be required to sell the security before recovery, the unrealized loss is separated into an amount representing the credit loss, which is recognized in earnings, and the amount related to all other factors, which is recorded in accumulated other comprehensive loss. In addition, the Company has made equity investments in non-publicly traded companies. Equity investments in which the Company does not have control, but has the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. The Company's proportionate share of income or loss is recorded in interest income and other, net in the Consolidated Statement of Income. All other non-marketable equity investments are recorded at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes. Prior to fiscal 2018, all other non-marketable equity investments were accounted for using the cost method. The Company periodically reviews its equity investments for other-than-temporary declines in fair value based on the specific identification method and writes down investments to their fair values when it determines that an other-than-temporary decline has occurred. |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivative financial instruments to manage certain exposures to the variability of foreign currency exchange rates and interest rates. The Company's objective is to offset increases and decreases in expenses resulting from these exposures with gains and losses on the derivative contracts, thereby reducing volatility of earnings. The Company does not use derivative contracts for speculative or trading purposes. The Company recognizes derivatives, on a gross basis, in the Consolidated Balance Sheet at fair value. Cash flows from derivatives are classified according to the nature of the cash receipt or payment in the Consolidated Statement of Cash Flows. Cash flow hedges used by the Company include foreign currency forward contracts and interest rate swap agreements. Foreign currency forward contracts are used to reduce the earnings impact that exchange rate fluctuations have on operating expenses denominated in currencies other than the U.S. dollar. Interest rate swap agreements are used to manage exposure to interest rate risks. The Company also uses foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on non-U.S. dollar balance sheet exposures. The Company does not apply hedge accounting to these foreign currency forward contracts. |
Inventories | Inventories Inventories are stated at the lower of cost, determined using the first-in, first-out method, or net realizable value. The Company writes down the carrying value of inventory to net realizable value for estimated obsolescence or unmarketable inventory based upon assumptions about the age of inventory, future demand and market conditions. Inventory impairment charges establish a new cost basis for inventory and charges are not subsequently reversed to income even if circumstances later suggest that increased carrying amounts are recoverable. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the useful lives of the assets ranging from three to ten years. Leasehold improvements are depreciated over the lease term or their useful life, whichever is shorter. The Company owns the facilities it had previously leased for its headquarters in Austin, Texas. The buildings are located on land which is leased through 2099 from a third party. The rents for these ground leases were prepaid for the term of the leases by the previous lessee. The buildings and leasehold interest in ground leases are being depreciated on a straight-line basis over their estimated useful lives of 40 years and 86 years, respectively. |
Business Combinations | Business Combinations The Company records business combinations using the acquisition method of accounting and, accordingly, allocates the fair value of purchase consideration to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of the assets acquired and liabilities assumed is recorded as goodwill. The results of operations of the businesses acquired are included in the Company's consolidated results of operations beginning on the date of the acquisition. |
Long-Lived Assets | Long-Lived Assets Purchased intangible assets are stated at cost, net of accumulated amortization, and are amortized using the straight-line method over their estimated useful lives, ranging from three to twelve years. Fair values are determined primarily using the income approach, in which the Company projects future expected cash flows and applies an appropriate discount rate. Long-lived assets "held and used" by the Company are reviewed for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets and is recorded in the period in which the determination was made. The carrying value of goodwill is reviewed at least annually by the Company for possible impairment. The goodwill impairment test is a two-step process. The first step of the impairment analysis compares the fair value of the reporting unit to the net book value of the reporting unit. In determining fair value, several valuation methodologies are allowed, although quoted market prices are the best evidence of fair value. If the results of the first step demonstrate that the net book value is greater than the fair value, the Company must proceed to step two of the analysis. Step two of the analysis compares the implied fair value of goodwill to its carrying amount. If the carrying amount of goodwill exceeds its implied fair value, an impairment loss is recognized equal to that excess. The Company tests goodwill for impairment annually as of the first day of its fourth fiscal quarter and in interim periods if events occur that would indicate that the carrying value of goodwill may be impaired. |
Revenue Recognition | Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Substantially all of the Company's contracts with customers contain a single performance obligation, the sale of mixed-signal integrated circuit (IC) products. Such sales represent a single performance obligation because the sale is one type of good (e.g., an IC) or includes multiple goods that are neither capable of being distinct nor separable from the other promises in the contract (e.g., an IC embedded with software). This performance obligation is satisfied when control of the product is transferred to the customer, which typically occurs upon delivery. Unsatisfied performance obligations primarily represent contracts for products with future delivery dates and with an original expected duration of one year or less. As allowed under ASC 606, the Company has opted to not disclose the amount of unsatisfied performance obligations as these contracts have original expected durations of less than one year. The Company's products carry a one-year replacement warranty. The replacement warranty promises customers that delivered products are as specified in the contract (an "assurance-type warranty"). Therefore, the Company accounts for such warranties under ASC 460, Guarantees , and not as a separate performance obligation. The transaction price reflects the Company's expectations about the consideration it will be entitled to receive from the customer and may include fixed or variable amounts. Fixed consideration primarily includes sales to direct customers and sales to distributors in which both the sale to the distributor and the sale to the end customer occur within the same reporting period. Variable consideration includes sales in which the amount of consideration that the Company will receive is unknown as of the end of a reporting period. Such consideration primarily includes sales made to distributors under agreements allowing certain rights of return, referred to as stock rotation, and credits issued to the distributor due to price protection. Stock rotation allows distributors limited levels of returns and is based on the distributor's prior purchases. Price protection represents price discounts granted to certain distributors and is based on negotiations on sales to end customers. The Company estimates variable consideration at the most likely amount to which it expects to be entitled. Included in the transaction price estimate are amounts in which it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The estimate is based on information available to the Company, including recent sales activity and pricing data. The Company applies a constraint to its variable consideration estimate which considers both the likelihood of a return and the amount of a potential price concession. Variable consideration that does not meet revenue recognition criteria is deferred. The Company records a right of return asset in prepaid expenses and other current assets for the costs of distributor inventory not meeting revenue recognition criteria. A corresponding deferred revenue and returns liability amount is recorded for unrecognized revenue associated with such costs. Accounts receivable represents the Company's unconditional right to receive consideration from its customer. Payments are typically due within 30 days of invoicing and do not include a significant financing component. To date, there have been no material impairment losses on accounts receivable. There were no material contract assets or contract liabilities recorded on the Consolidated Balance Sheet in any of the periods presented. |
Shipping and Handling | Shipping and Handling Shipping and handling costs are classified as a component of cost of revenues in the Consolidated Statements of Income. |
Stock-Based Compensation | Stock-Based Compensation The Company has stock-based compensation plans, which are more fully described in Note 14, Stock-Based Compensation . The Company accounts for those plans using a fair-value method and recognizes the expense in its Consolidated Statement of Income. |
Research and Development | Research and Development Research and development costs are expensed as incurred. Research and development expense consists primarily of personnel-related expenses, including stock-based compensation, as well as new product masks, external consulting and services costs, equipment tooling, equipment depreciation, amortization of intangible assets, and an allocated portion of our occupancy costs. Assets purchased to support the Company's ongoing research and development activities are capitalized when related to products which have achieved technological feasibility or have an alternative future use, and are amortized over their estimated useful lives. |
Advertising | Advertising Advertising costs are expensed as incurred. Advertising expenses were $1.9 million, $1.4 million and $1.6 million in fiscal 2018, 2017 and 2016, respectively. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax laws and related rates that will be in effect when the differences are expected to reverse. These differences result in deferred tax assets and liabilities, which are included in the Company's Consolidated Balance Sheet. The Company then assesses the likelihood that the deferred tax assets will be realized. A valuation allowance is established against deferred tax assets to the extent the Company believes that it is more likely than not that the deferred tax assets will not be realized, taking into consideration the level of historical taxable income and projections for future taxable income over the periods in which the temporary differences are deductible. Uncertain tax positions must meet a more-likely-than-not threshold to be recognized in the financial statements and the tax benefits recognized are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon final settlement. See Note 17, Income Taxes , for additional information. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The Company early adopted this ASU on December 31, 2017. The adoption did not have a material impact on its financial statements. In August 2017, the FASB issued ASU No. 2017-12 , Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The objectives of this ASU are to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements and to make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. This ASU is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. The Company early adopted this ASU on December 31, 2017. The adoption did not have a material impact on its financial statements. In January 2017, the FASB issued ASU No. 2017-04 , Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU eliminates Step 2 from the goodwill impairment test, which previously measured an impairment loss by comparing the implied fair value of goodwill with its carrying amount. Instead, an entity should recognize an impairment charge for the amount by which the carrying value exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to that reporting unit. This ASU is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is currently evaluating the effect of the adoption of this ASU, but anticipates that the adoption will not have a material impact on its financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU requires instruments measured at amortized cost to be presented at the net amount expected to be collected. Entities are also required to record allowances for available-for-sale debt securities rather than reduce the carrying amount. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company expects that the adoption will not have a material impact on its financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases , which was subsequently amended in 2018 by ASU 2018-10, ASU 2018-11 and ASU 2018-20 (collectively, Topic 842). The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. For operating leases, a lessee is required to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial position. Topic 842 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company will elect an optional transition method to account for the impact of the adoption with a cumulative-effect adjustment in the period of adoption and will not restate prior periods. The Company expects to elect certain practical expedients permitted under the transition guidance. The Company is substantially complete with its evaluation of the effect that the adoption of this ASU will have on its financial statements. The Company believes that most of its operating lease commitments will be subject to the new standard. In connection with the adoption of ASC 842, the Company expects to recognize additional right-of-use assets and operating lease liabilities of $20.8 million on December 30, 2018. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Significant Accounting Policies | |
Schedule of changes recorded in connection with the cumulative-effect adjustment | The following reflects the material changes recorded in connection with the cumulative-effect adjustment (in thousands): Financial Statement Line Item Increase Accounts receivable, net 230 Prepaid expenses and other current assets 7,579 Other assets, net (2,282 ) Deferred revenue and returns liability 27,806 Deferred income on shipments to distributors (50,115 ) Other current liabilities 1,641 Retained earnings 26,195 |
Schedule of condensed consolidated statement of income | The following presents the amounts by which financial statement line items were affected in the current period due to the adoption of ASC 606 (in thousands): Financial Statement Line Item* Increase Consolidated Statements of Income Year Ended Revenues 12,943 Cost of revenues 4,234 Net income 6,610 Earnings per share: Basic 0.15 Diluted 0.15 * Excludes line items that were not materially affected by the Company's adoption of ASC 606. The adoption had no impact to cash provided by or used in net operating, investing or financing activities in the Consolidated Statements of Cash Flows. |
Schedule of condensed consolidated balance sheet | The following presents the amounts by which financial statement line items were affected in the current period due to the adoption of ASC 606 (in thousands): Consolidated Balance Sheet** December 29, Prepaid expenses and other current assets 5,953 Goodwill (2,842 ) Other assets, net (4,464 ) Deferred revenue and returns liability 22,494 Deferred income on shipments to distributors (60,789 ) Other current liabilities 4,282 Retained earnings 32,805 ** Balance sheet line item amounts include the cumulative-effect adjustment recorded on December 31, 2017. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Earnings Per Share | |
Schedule of computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): Year Ended December 29, December 30, December 31, Net income 83,591 47,092 61,494 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares used in computing basic earnings per share 43,159 42,446 41,713 Effect of dilutive securities: Stock-based awards 885 886 663 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares used in computing diluted earnings per share 44,044 43,332 42,376 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per share: Basic 1.94 1.11 1.47 Diluted 1.90 1.09 1.45 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Fair Value of Financial Instruments | |
Summary of valuation of the financial instruments | The following summarizes the valuation of the Company's financial instruments (in thousands). The tables do not include either cash on hand or assets and liabilities that are measured at historical cost or any basis other than fair value. Fair Value Measurements Description Quoted Prices in Significant Other Significant Total Assets: Cash equivalents: Money market funds 74,990 — — 74,990 Corporate debt securities — 18,820 — 18,820 Government debt securities 9,338 — — 9,338 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total cash equivalents 84,328 18,820 — 103,148 Short-term investments: Government debt securities 48,141 99,211 — 147,352 Corporate debt securities — 269,427 — 269,427 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total short-term investments 48,141 368,638 — 416,779 Other assets, net: Auction rate securities — — 5,759 5,759 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total — — 5,759 5,759 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements Description Quoted Prices in Significant Other Significant Total Assets: Cash equivalents: Money market funds 106,047 — — 106,047 Corporate debt securities — 11,231 — 11,231 Government debt securities 53,615 1,453 — 55,068 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total cash equivalents 159,662 12,684 — 172,346 Short-term investments: Government debt securities 94,575 228,247 — 322,822 Corporate debt securities — 171,835 — 171,835 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total short-term investments 94,575 400,082 — 494,657 Other assets, net: Auction rate securities — — 5,681 5,681 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total — — 5,681 5,681 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summarization of contractual underlying maturities of available-for-sale investments | The following summarizes the contractual underlying maturities of the Company's available-for-sale investments at December 29, 2018 (in thousands): Cost Fair Value Due in one year or less 338,623 337,910 Due after one year through ten years 169,058 168,657 Due after ten years 19,360 19,119 ​ ​ ​ ​ ​ ​ ​ 527,041 525,686 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of available-for-sale investments in continuous unrealized loss position by length of time | The available-for-sale investments that were in a continuous unrealized loss position, aggregated by length of time that individual securities have been in a continuous loss position, were as follows (in thousands): Less Than 12 Months 12 Months or Greater Total As of December 29, 2018 Fair Gross Fair Gross Fair Gross Government debt securities 13,278 (10 ) 88,696 (583 ) 101,974 (593 ) Corporate debt securities 112,699 (273 ) 76,310 (448 ) 189,009 (721 ) Auction rate securities — — 5,759 (241 ) 5,759 (241 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 125,977 (283 ) 170,765 (1,272 ) 296,742 (1,555 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less Than 12 Months 12 Months or Greater Total As of December 30, 2017 Fair Gross Fair Gross Fair Gross Government debt securities 244,880 (931 ) 3,027 (15 ) 247,907 (946 ) Corporate debt securities 151,149 (447 ) 11,578 (73 ) 162,727 (520 ) Auction rate securities — — 5,681 (319 ) 5,681 (319 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 396,029 (1,378 ) 20,286 (407 ) 416,315 (1,785 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of quantitative information about level 3 fair value measurements | The following summarizes quantitative information about Level 3 fair value measurements. Fair Value at Valuation Technique Unobservable Input Weighted Discounted cash flow Estimated yield 3.23% Expected holding period 10 years Estimated discount rate 3.76% |
Summary of activity in Level 3 financial instruments | The following summarizes the activity in Level 3 financial instruments for the years ended December 29, 2018 and December 30, 2017 (in thousands): Year Ended Auction Rate Securities December 29, December 30, Beginning balance 5,681 5,196 Gain included in other comprehensive income (loss) 78 485 ​ ​ ​ ​ ​ ​ ​ Ending balance 5,759 5,681 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended Contingent Consideration (1) December 30, Beginning balance — Issues 3,829 Reclassification to acquisition-related liabilities (3,380 ) Gain recognized in selling, general and administrative expenses (449 ) ​ ​ ​ ​ Ending balance — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) In connection with the acquisition of Zentri, the Company recorded contingent consideration based on fiscal 2017 revenue from certain Zentri products. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Derivative Financial Instruments | |
Schedule of before-tax effect of derivative instruments not designated as hedging instruments | The before-tax effect of derivative instruments not designated as hedging instruments was as follows (in thousands): Year Ended Gain (Loss) Recognized in Income December 29, December 30, December 31, Location Foreign currency forward contracts 105 (207 ) (92 ) Interest income and other, net |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Balance Sheet Details | |
Schedule of Accounts Receivable, Net | December 29, December 30, Accounts receivable 73,832 72,005 Allowance for doubtful accounts (638 ) (638 ) ​ ​ ​ ​ ​ ​ ​ 73,194 71,367 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of Inventories | December 29, December 30, Work in progress 50,983 46,698 Finished goods 23,989 26,434 ​ ​ ​ ​ ​ ​ ​ 74,972 73,132 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of Property and Equipment | December 29, December 30, Buildings and improvements 109,025 96,196 Equipment 62,895 59,836 Computers and purchased software 42,487 37,598 Leasehold interest in ground leases 23,840 23,840 Leasehold improvements 12,006 10,483 Furniture and fixtures 7,794 5,691 ​ ​ ​ ​ ​ ​ ​ 258,047 233,644 Accumulated depreciation (118,998 ) (105,962 ) ​ ​ ​ ​ ​ ​ ​ 139,049 127,682 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of Other Current Liabilities | December 29, December 30, Accrued compensation and benefits 37,113 33,631 Accrued price protection credits 12,033 8,239 Other 32,034 31,489 ​ ​ ​ ​ ​ ​ ​ 81,180 73,359 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of Other Non-current Liabilities | December 29, December 30, Non-current tax liabilities 21,576 39,196 Other 35,872 38,666 ​ ​ ​ ​ ​ ​ ​ 57,448 77,862 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Risks and Uncertainties (Tables
Risks and Uncertainties (Tables) - Customers | 12 Months Ended |
Dec. 29, 2018 | |
Accounts receivable | |
Risks and Uncertainties | |
Schedule of concentration risk | The Company's customers that accounted for greater than 10% of accounts receivable consisted of the following: December 29, December 30, Arrow Electronics 12 % 14 % Edom Technology 10 % * Avnet — 16 % * Less than 10% of accounts receivable |
Revenue | |
Risks and Uncertainties | |
Schedule of concentration risk | The Company's distributors that accounted for greater than 10% of revenue consisted of the following: Year Ended December 29, December 30, December 31, Arrow Electronics 21 % 12 % 11 % Edom Technology 17 % 19 % 17 % Avnet * 14 % 13 % * Less than 10% of revenue |
Acquisitions (Tables)
Acquisitions (Tables) - Z-Wave | 12 Months Ended |
Dec. 29, 2018 | |
Acquisitions | |
Schedule of purchase price allocation | The purchase price was allocated as follows (in thousands): Amount Weighted-Average Intangible assets: In-process research and development 20,900 Not amortized Developed technology 69,875 7 Customer relationships 25,000 4 Trademarks 9,900 7 ​ ​ ​ ​ ​ 125,675 Cash and cash equivalents 2,841 Accounts receivable 5,311 Inventory 15,581 Other current assets 329 Goodwill 109,117 Other non-current assets 2,587 Accounts payable (3,306 ) Other current liabilities (8,918 ) Other non-current liabilities (6,648 ) ​ ​ ​ ​ ​ Total purchase price 242,569 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of pro forma results of operations | The pro forma results of operations are presented for informational purposes only and are not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place on January 1, 2017 or of results that may occur in the future (in thousands, except per share data): Year Ended December 29, December 30, (Unaudited) Revenues 882,109 824,009 Net income 87,874 27,958 Earnings per share: Basic 2.04 0.66 Diluted 2.00 0.65 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Goodwill and Other Intangible Assets | |
Summary of goodwill activity | The following summarizes the activity in goodwill for the years ended December 29, 2018 and December 30, 2017 (in thousands): Year Ended December 29, December 30, Beginning balance 288,227 276,130 Additions due to business combinations 109,117 12,097 ​ ​ ​ ​ ​ ​ ​ Ending balance 397,344 288,227 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of gross carrying amount and accumulated amortization of other intangible assets | The gross carrying amount and accumulated amortization of other intangible assets are as follows (in thousands): December 29, 2018 December 30, 2017 Weighted-Average Gross Accumulated Gross Accumulated Core and developed technology 8 237,265 (102,116 ) 161,700 (89,442 ) Customer relationships 5 46,890 (21,075 ) 25,470 (16,180 ) Patents — — — 3,000 (2,750 ) Trademarks 7 12,310 (2,442 ) 3,690 (2,344 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total 8 296,465 (125,633 ) 193,860 (110,716 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of estimated aggregate amortization expense for intangible assets subject to amortization | The estimated aggregate amortization expense for intangible assets subject to amortization for each of the five succeeding fiscal years is as follows (in thousands): Fiscal Year 2019 39,222 2020 36,727 2021 32,337 2022 24,206 2023 18,286 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Debt | |
Summary of information about the equity and liability components of the convertible senior notes | The carrying amount of the Notes consisted of the following (in thousands): December 29, December 30, Liability component Principal 400,000 400,000 Unamortized debt discount (39,298 ) (50,499 ) Unamortized debt issuance costs (5,931 ) (7,622 ) ​ ​ ​ ​ ​ ​ ​ Net carrying amount 354,771 341,879 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity component Net carrying amount 57,735 57,735 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of components of interest expense | Interest expense related to the Notes was comprised of the following (in thousands): Year Ended December 29, December 30, Contractual interest expense 5,500 4,492 Amortization of debt discount 11,202 8,816 Amortization of debt issuance costs 1,690 1,330 ​ ​ ​ ​ ​ ​ ​ 18,392 14,638 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Commitments and Contingencies | |
Schedule of minimum annual future rentals | The minimum annual future rentals under the terms of these leases as of December 29, 2018 are as follows (in thousands): Fiscal Year 2019 5,287 2020 4,746 2021 4,051 2022 3,485 2023 2,810 Thereafter 3,842 ​ ​ ​ ​ Total minimum lease payments 24,221 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Stockholders' Equity | |
Schedule of share repurchase programs | The Board of Directors authorized the following share repurchase programs (in thousands): Program Authorization Date Program Program October 2017 December 2019 200,000 * January 2017 December 2017 100,000 August 2015 December 2016 100,000 * In October 2018, the Board of Directors increased the share repurchase amount for the October 2017 program from $100 million to $200 million and extended the termination date from December 2018 to December 2019. |
Schedule of reclassifications out of accumulated other comprehensive loss | The following table summarizes the effect on net income from reclassifications out of accumulated other comprehensive loss (in thousands): Year ended Reclassification December 29, December 30, December 31, Losses on available-for-sales securities to: Interest income and other, net (49 ) — — Gains (losses) on cash flow hedges to: Interest income and other, net (316 ) — — Interest expense — 1,808 (249 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (365 ) 1,808 (249 ) Income tax (expense) benefit ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total gains (losses) reclassified (288 ) 1,175 (162 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of changes in the components of comprehensive income (loss), tax effects | The income tax effects of the components of other comprehensive income (loss) were as follows (in thousands): Year ended Income tax (expense) benefit on: December 29, December 30, December 31, Net changes to available-for-sale securities: Unrealized gains (losses) arising during the period (79 ) 255 63 Reclassification for losses included in net income (10 ) — — Net changes to cash flow hedges: Unrealized gains (losses) arising during the period 200 — (513 ) Reclassification for gains (losses) included in net income (66 ) 633 (87 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 45 888 (537 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Revenues | |
Schedule of disaggregation of revenue by product category | The following disaggregates the Company's revenue by product category (in thousands): Year Ended December 29, December 30, December 31, Internet of Things 463,838 395,012 314,614 Infrastructure 199,478 152,158 147,677 Broadcast 141,412 152,980 157,746 Access 63,539 68,717 77,589 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 868,267 768,867 697,626 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Under the modified retrospective method, prior period amounts have not been adjusted. |
Schedule of disaggregation of revenue by sales channel | The following disaggregates the Company's revenue by sales channel (in thousands): Year Ended December 29, December 30, December 31, Distributors 618,989 547,419 471,622 Direct customers 249,278 221,448 226,004 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 868,267 768,867 697,626 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Under the modified retrospective method, prior period amounts have not been adjusted. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Summary of weighted average fair value at the date of grant | The following summarizes the Company's weighted average fair value at the date of grant: Year Ended December 29, December 30, December 31, Per grant of RSAs and RSUs 93.75 72.85 40.55 Per grant of PSUs and MSUs 97.53 78.40 32.23 Per grant of stock options — — 40.38 |
Summary of stock-based payment and stock option values | The following summarizes the Company's stock-based payment and stock option values (in thousands): Year Ended December 29, December 30, December 31, Intrinsic value of stock options exercised 1,952 2,174 2,560 Intrinsic value of RSUs that vested 68,012 53,093 36,502 Grant date fair value of RSUs that vested 37,720 32,449 39,853 Intrinsic value of MSUs that vested 3,562 687 — Grant date fair value of MSUs that vested 1,788 633 — |
Schedule of stock-based compensation costs recognized in the Consolidated Statements of Income | The following table presents details of stock-based compensation costs recognized in the Consolidated Statements of Income (in thousands): Year Ended December 29, December 30, December 31, Cost of revenues 1,238 1,090 1,070 Research and development 23,867 21,771 19,573 Selling, general and administrative 24,972 21,891 18,985 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 50,077 44,752 39,628 Income tax benefit 8,890 11,073 8,496 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 41,187 33,679 31,132 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of shares reserved of common stock for future issuance | As of December 29, 2018, the Company had reserved shares of common stock for future issuance as follows (in thousands): 2009 Stock Incentive Plan 2,343 2009 Employee Stock Purchase Plan 985 ​ ​ ​ ​ Total shares reserved 3,328 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Stock options | |
Summary of assumptions used to estimate fair values for stock options | Year Ended Stock Options December 29, December 30, December 31, Expected volatility — — 32 % Risk-free interest rate % — — 1.3 % Expected term (in years) — — 5.4 Dividend yield — — — |
Summary of stock-based compensation activity, options | A summary of stock-based compensation activity with respect to fiscal 2018 follows: Stock Options Shares Weighted- Weighted-Average Aggregate Outstanding at December 30, 2017 170 38.88 Exercised (33 ) 36.45 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 29, 2018 137 39.47 7.1 5,327 Vested at December 29, 2018 and expected to vest Exercisable at December 29, 2018 |
MSUs | |
Summary of assumptions used to estimate fair values for MSUs, Monte Carlo simulation | The fair values estimated from Monte Carlo simulation for MSUs were calculated using the following assumptions: Year Ended MSUs December 29, December 30, December 31, Expected volatility 29 % 31 % 30 % Risk-free interest rate % 2.4 % 1.6 % 0.9 % Expected term (in years) 2.9 2.9 2.9 Dividend yield — — — |
RSAs and RSUs | |
Summary of stock-based compensation activity, RSAs and RSUs | RSAs and RSUs Shares Weighted- Weighted-Average Aggregate Outstanding at December 30, 2017 1,523 — Granted 522 — Vested or issued (730 ) — Cancelled or forfeited (97 ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 29, 2018 1,218 — 0.86 95,620 Outstanding at December 29, 2018 and expected to vest |
PSUs and MSUs | |
Summary of stock-based compensation activity, PSUs and MSUs | PSUs and MSUs Shares Weighted- Weighted-Average Aggregate Outstanding at December 30, 2017 259 — Granted 81 — Earned or issued (37 ) — Cancelled or forfeited (21 ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 29, 2018 282 — 1.1 22,164 Outstanding at December 29, 2018 and expected to vest |
2009 Employee Stock Purchase Plan | |
Summary of assumptions used to estimate fair values for ESPP | The fair values estimated from the Black-Scholes option-pricing model for ESPP and stock options granted were calculated using the following assumptions: Year Ended Employee Stock Purchase Plan December 29, December 30, December 31, Expected volatility 30 % 28 % 30 % Risk-free interest rate % 2.4 % 1.1 % 0.6 % Expected term (in months) 9 8 15 Dividend yield — — — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Income Taxes | |
Schedule of income before income taxes | Income before income taxes includes the following components (in thousands): Year Ended December 29, December 30, December 31, Domestic 19,777 9,700 4,313 Foreign 52,384 67,203 60,183 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 72,161 76,903 64,496 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of provision (benefit) for income taxes | The provision (benefit) for income taxes consists of the following (in thousands): Year Ended December 29, December 30, December 31, Current: Domestic (8,843 ) 48,947 2,639 Foreign 5,888 7,077 4,421 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Current (2,955 ) 56,024 7,060 Deferred: Domestic (8,978 ) (25,760 ) (2,430 ) Foreign 503 (453 ) (1,628 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Deferred (8,475 ) (26,213 ) (4,058 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Provision (benefit) for income taxes (11,430 ) 29,811 3,002 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of reconciliation of federal statutory tax rate to effective tax rate | The reconciliation of the federal statutory tax rate to the Company's effective tax rate is as follows: Year Ended December 29, December 30, December 31, Federal statutory rate 21.0 % 35.0 % 35.0 % Foreign tax rate benefit (12.9 ) (25.4 ) (22.6 ) Research and development tax credits (9.8 ) (4.5 ) (4.1 ) GILTI and Subpart F income 4.3 1.4 1.4 Nondeductible (nontaxable) foreign expenses 3.9 1.1 (4.0 ) State tax expense 1.5 0.9 0.6 Release of prior year unrecognized tax benefits (2.7 ) (0.6 ) (1.7 ) Excess officer compensation 2.4 1.5 1.4 Other tax effects of equity compensation (0.4 ) (2.2 ) (1.5 ) Change in cost-sharing treatment of stock-based compensation (2.2 ) 5.2 (0.5 ) Excess tax benefit of stock-based compensation (5.9 ) (5.6 ) — Change in prior period valuation allowance (2.5 ) (1.3 ) (0.6 ) Transition tax on unremitted foreign earnings (8.4 ) 70.8 — Revaluation of deferred tax balances 0.3 28.2 — Other deferred tax impacts of tax reform (3.1 ) (64.8 ) — Other (1.3 ) (0.9 ) 1.3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effective Tax Rate (15.8 )% 38.8 % 4.7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of significant components of deferred taxes | Significant components of the Company's deferred taxes as of December 29, 2018 and December 30, 2017 are as follows (in thousands): December 29, December 30, Deferred tax assets: Net operating loss carryforwards 9,973 12,925 Research and development tax credit carryforwards 12,500 12,322 Stock-based compensation 4,360 5,256 Depreciation and amortization 7,799 — Capitalized research and development 2,521 3,468 Deferred income on shipments to distributors 5,824 7,070 Expected future cost-sharing adjustment 25,257 21,582 Accrued liabilities and other 7,737 6,999 ​ ​ ​ ​ ​ ​ ​ 75,971 69,622 Less: Valuation allowance (4,975 ) (6,518 ) ​ ​ ​ ​ ​ ​ ​ 70,996 63,104 Deferred tax liabilities: Acquired intangible assets 20,656 13,884 Depreciation and amortization 4,604 1,274 Convertible debt 8,080 10,351 Prepaid expenses and other 2,142 1,421 ​ ​ ​ ​ ​ ​ ​ 35,482 26,930 ​ ​ ​ ​ ​ ​ ​ Net deferred tax assets 35,514 36,174 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of activity related to gross unrecognized tax benefits | The following table summarizes the activity related to gross unrecognized tax benefits (in thousands): Year Ended December 29, December 30, December 31, Beginning balance 3,187 3,054 3,610 Additions based on tax positions related to current year 630 456 439 Additions based on tax positions related to prior years 115 114 99 Reductions for tax positions as a result of a lapse of the applicable statute of limitations (1,896 ) (437 ) (1,094 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ending balance 2,036 3,187 3,054 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Segment Information | |
Schedule of revenue attributed to geographic area based on the end customer's shipped-to location | The following summarizes the Company's revenue by geographic area (in thousands): Year Ended December 29, December 30, December 31, United States 149,385 112,574 94,583 China 344,255 307,748 291,974 Rest of world 374,627 348,545 311,069 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total 868,267 768,867 697,626 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of property and equipment, net by geographic area | The following summarizes the Company's property and equipment, net by geographic area (in thousands): December 29, December 30, United States 128,622 119,746 Rest of world 10,427 7,936 ​ ​ ​ ​ ​ ​ ​ Total 139,049 127,682 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Significant Accounting Polici_4
Significant Accounting Policies - Basis of Presentation and Principles of Consolidation (Details) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Significant Accounting Policies | |||
Length of fiscal year | 364 days | 364 days | 364 days |
Low end of range | |||
Significant Accounting Policies | |||
Length of fiscal year | 364 days | ||
High end of range | |||
Significant Accounting Policies | |||
Length of fiscal year | 371 days |
Significant Accounting Polici_5
Significant Accounting Policies - Adoption of New Revenue Accounting Standard (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Consolidated Statements of Cash Flows | ||||
Accounts receivable, net | $ (3,931) | $ (3,234) | $ (46) | |
Prepaid expenses and other current assets | 4,960 | (25,266) | 3,568 | |
Deferred revenue and returns liability | (6,202) | 4,453 | 9,713 | |
Consolidated Statements of Income | ||||
Revenues | 868,267 | 768,867 | 697,626 | |
Cost of revenues | 346,868 | 314,676 | 276,122 | |
Net income | $ 83,591 | $ 47,092 | $ 61,494 | |
Earnings per share: | ||||
Basic (in dollars per share) | $ 1.94 | $ 1.11 | $ 1.47 | |
Diluted (in dollars per share) | $ 1.90 | $ 1.09 | $ 1.45 | |
Consolidated Balance Sheet | ||||
Prepaid expenses and other current assets | $ 64,650 | $ 39,120 | ||
Goodwill | 397,344 | 288,227 | $ 276,130 | |
Other assets, net | 90,491 | 88,387 | ||
Deferred revenue and returns liability | 22,494 | |||
Deferred income on shipments to distributors | 50,115 | |||
Other current liabilities | 81,180 | 73,359 | ||
Retained earnings | 961,343 | $ 851,307 | ||
ASU 2014-09 - Revenue from Contracts with Customers | ||||
Consolidated Statements of Cash Flows | ||||
Accounts receivable, net | $ 230 | |||
Prepaid expenses and other current assets | 7,579 | |||
Other assets, net | (2,282) | |||
Deferred revenue and returns liability | 27,806 | |||
Deferred income on shipments to distributors | (50,115) | |||
Other current liabilities | 1,641 | |||
Retained earnings | 26,195 | |||
Consolidated Statements of Income | ||||
Revenues | 12,943 | |||
Cost of revenues | 4,234 | |||
Net income | $ 6,610 | |||
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.15 | |||
Diluted (in dollars per share) | $ 0.15 | |||
Consolidated Balance Sheet | ||||
Prepaid expenses and other current assets | $ 5,953 | |||
Goodwill | (2,842) | |||
Other assets, net | (4,464) | |||
Deferred revenue and returns liability | 22,494 | |||
Deferred income on shipments to distributors | (60,789) | |||
Other current liabilities | 4,282 | |||
Retained earnings | $ 26,200 | $ 32,805 |
Significant Accounting Polici_6
Significant Accounting Policies - Property and Equipment and Long Lived Assets (Details) | 12 Months Ended |
Dec. 29, 2018 | |
Low end of range | |
Property and Equipment | |
Useful life | 3 years |
Long-Lived Assets | |
Useful life of purchased intangible assets | 3 years |
High end of range | |
Property and Equipment | |
Useful life | 10 years |
Long-Lived Assets | |
Useful life of purchased intangible assets | 12 years |
Buildings | |
Property and Equipment | |
Useful life | 40 years |
Leasehold interest in ground leases | |
Property and Equipment | |
Useful life | 86 years |
Significant Accounting Polici_7
Significant Accounting Policies - Revenue Recognition and Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Revenue Recognition, Performance Obligations | |||
Product replacement warranty | 1 year | ||
Advertising | |||
Advertising expenses | $ 1.9 | $ 1.4 | $ 1.6 |
Significant Accounting Polici_8
Significant Accounting Policies - Recent Accounting Pronouncements (Details) - Forecast - ASU 2016-02 - Leases $ in Millions | Dec. 30, 2018USD ($) |
Recent Accounting Pronouncements | |
Adjustment to right-of-use assets | $ 20.8 |
Adjustment to operating lease liabilities | $ 20.8 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Earnings Per Share | |||
Net income | $ 83,591 | $ 47,092 | $ 61,494 |
Shares used in computing basic earnings per share (in shares) | 43,159 | 42,446 | 41,713 |
Effect of dilutive securities: | |||
Stock-based awards | 885 | 886 | 663 |
Shares used in computing diluted earnings per share (in shares) | 44,044 | 43,332 | 42,376 |
Earnings per share: | |||
Basic (in dollars per share) | $ 1.94 | $ 1.11 | $ 1.47 |
Diluted (in dollars per share) | $ 1.90 | $ 1.09 | $ 1.45 |
Convertible Senior Notes | |||
Earnings per share: | |||
Shares excluded from computation of diluted earning per share | 100 | 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of financial instruments (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total short-term investments | $ 416,779 | $ 494,657 |
Recurring | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total cash equivalents | 103,148 | 172,346 |
Total short-term investments | 416,779 | 494,657 |
Other assets, net | 5,759 | 5,681 |
Total assets at fair value | 525,686 | 672,684 |
Recurring | Money market funds | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total cash equivalents | 74,990 | 106,047 |
Recurring | Corporate debt securities | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total cash equivalents | 18,820 | 11,231 |
Total short-term investments | 269,427 | 171,835 |
Recurring | Government debt securities | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total cash equivalents | 9,338 | 55,068 |
Total short-term investments | 147,352 | 322,822 |
Recurring | Auction rate securities | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Other assets, net | 5,759 | 5,681 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total cash equivalents | 84,328 | 159,662 |
Total short-term investments | 48,141 | 94,575 |
Total assets at fair value | 132,469 | 254,237 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total cash equivalents | 74,990 | 106,047 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government debt securities | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total cash equivalents | 9,338 | 53,615 |
Total short-term investments | 48,141 | 94,575 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total cash equivalents | 18,820 | 12,684 |
Total short-term investments | 368,638 | 400,082 |
Total assets at fair value | 387,458 | 412,766 |
Recurring | Significant Other Observable Inputs (Level 2) | Corporate debt securities | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total cash equivalents | 18,820 | 11,231 |
Total short-term investments | 269,427 | 171,835 |
Recurring | Significant Other Observable Inputs (Level 2) | Government debt securities | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total cash equivalents | 1,453 | |
Total short-term investments | 99,211 | 228,247 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Other assets, net | 5,759 | 5,681 |
Total assets at fair value | 5,759 | 5,681 |
Recurring | Significant Unobservable Inputs (Level 3) | Auction rate securities | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Other assets, net | $ 5,759 | $ 5,681 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Available-for-sale investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Cost | ||
Due in one year or less, Cost | $ 338,623 | |
Due after one year through ten years, Cost | 169,058 | |
Due after ten years, Cost | 19,360 | |
Total Cost | 527,041 | |
Fair Value | ||
Due in one year or less, Fair Value | 337,910 | |
Due after one year through ten years, Fair Value | 168,657 | |
Due after ten years, Fair Value | 19,119 | |
Total Fair Value | 525,686 | |
Continuous unrealized loss position, Fair Value | ||
Fair value of available-for-sale securities, continuous loss position for less than twelve months | 125,977 | $ 396,029 |
Fair value of available-for-sale securities, continuous loss position for twelve months or greater | 170,765 | 20,286 |
Total fair value of available-for-sale securities, continuous loss position | 296,742 | 416,315 |
Continuous unrealized loss position, Gross Unrealized Losses | ||
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses | (283) | (1,378) |
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses | (1,272) | (407) |
Available-for-sale securities, total gross unrealized losses | (1,555) | (1,785) |
Other than temporary impairment losses | ||
Other-than-temporary impairment losses | 0 | |
Government debt securities | ||
Continuous unrealized loss position, Fair Value | ||
Fair value of available-for-sale securities, continuous loss position for less than twelve months | 13,278 | 244,880 |
Fair value of available-for-sale securities, continuous loss position for twelve months or greater | 88,696 | 3,027 |
Total fair value of available-for-sale securities, continuous loss position | 101,974 | 247,907 |
Continuous unrealized loss position, Gross Unrealized Losses | ||
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses | (10) | (931) |
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses | (583) | (15) |
Available-for-sale securities, total gross unrealized losses | (593) | (946) |
Corporate debt securities | ||
Continuous unrealized loss position, Fair Value | ||
Fair value of available-for-sale securities, continuous loss position for less than twelve months | 112,699 | 151,149 |
Fair value of available-for-sale securities, continuous loss position for twelve months or greater | 76,310 | 11,578 |
Total fair value of available-for-sale securities, continuous loss position | 189,009 | 162,727 |
Continuous unrealized loss position, Gross Unrealized Losses | ||
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses | (273) | (447) |
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses | (448) | (73) |
Available-for-sale securities, total gross unrealized losses | (721) | (520) |
Auction rate securities | ||
Continuous unrealized loss position, Fair Value | ||
Fair value of available-for-sale securities, continuous loss position for twelve months or greater | 5,759 | 5,681 |
Total fair value of available-for-sale securities, continuous loss position | 5,759 | 5,681 |
Continuous unrealized loss position, Gross Unrealized Losses | ||
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses | (241) | (319) |
Available-for-sale securities, total gross unrealized losses | $ (241) | $ (319) |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Auction rate securities (Details) - Auction rate securities - Significant Unobservable Inputs (Level 3) $ in Thousands | Dec. 29, 2018USD ($)Yitem | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Weighted Average | Estimated yield | Discounted cash flow | |||
Quantitative information for Level 3 Fair Value Measurements Assets | |||
Unobservable Input | 3.23 | ||
Weighted Average | Expected holding period | Discounted cash flow | |||
Quantitative information for Level 3 Fair Value Measurements Assets | |||
Unobservable Input | Y | 10 | ||
Weighted Average | Estimated discount rate | Discounted cash flow | |||
Quantitative information for Level 3 Fair Value Measurements Assets | |||
Unobservable Input | 3.76 | ||
Recurring | |||
Quantitative information for Level 3 Fair Value Measurements Assets | |||
Fair value balance at the end of the period | $ | $ 5,759 | $ 5,681 | $ 5,196 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Activity in Level 3 financial instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Recurring | Significant Unobservable Inputs (Level 3) | Auction rate securities | ||
Fair value assets reconciliation of changes | ||
Balance at the beginning of the period | $ 5,681 | $ 5,196 |
Gain included in other comprehensive income (loss) | 78 | 485 |
Balance at the end of the period | 5,759 | 5,681 |
Recurring | Significant Unobservable Inputs (Level 3) | Contingent Consideration | ||
Fair value liabilities reconciliation of changes | ||
Balance at the beginning of the period | 0 | 0 |
Issues | 3,829 | |
Reclassification to acquisition-related liabilities | (3,380) | |
Gain recognized in selling, general and administrative expenses | 449 | |
Balance at the end of the period | 0 | |
Convertible Senior Notes | ||
Fair value liabilities reconciliation of changes | ||
Fair value of debt | $ 419,000 | $ 466,200 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) $ in Thousands | Dec. 29, 2018USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($)contract | Dec. 31, 2016USD ($) | Jul. 31, 2016USD ($) |
Derivative Financial Instruments | |||||
Reclassification of unrealized gains included in net income | $ (316) | $ 1,808 | $ (249) | ||
Non-designated Hedges | Foreign currency forward contracts | |||||
Derivative Financial Instruments | |||||
Notional value | $ 2,400 | ||||
Number of foreign currency forward contract held | contract | 1 | ||||
Non-designated Hedges | Foreign currency forward contracts | Interest income and other, net | |||||
Derivative Financial Instruments | |||||
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | 105 | $ (207) | $ (92) | ||
Cash flow hedges | Interest rate swaps | |||||
Derivative Financial Instruments | |||||
Notional value | $ 72,500 | ||||
Reclassification of unrealized gains included in net income | $ 1,800 | ||||
Cash flow hedges | Foreign currency forward contracts | |||||
Derivative Financial Instruments | |||||
Notional value | $ 8,800 | $ 8,800 | |||
Cash flow hedges | Low end of range | Foreign currency forward contracts | |||||
Derivative Financial Instruments | |||||
Maturity of contracts | 1 month | ||||
Cash flow hedges | High end of range | Foreign currency forward contracts | |||||
Derivative Financial Instruments | |||||
Maturity of contracts | 12 months |
Balance Sheet Details (Details)
Balance Sheet Details (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Accounts Receivable, Net | ||
Accounts receivable | $ 73,832 | $ 72,005 |
Allowance for doubtful accounts | (638) | (638) |
Accounts Receivable, Net | 73,194 | 71,367 |
Inventories | ||
Work in progress | 50,983 | 46,698 |
Finished goods | 23,989 | 26,434 |
Inventories | 74,972 | 73,132 |
Property and Equipment | ||
Property and equipment, gross | 258,047 | 233,644 |
Accumulated depreciation | (118,998) | (105,962) |
Total Property and Equipment, net | 139,049 | 127,682 |
Other Current Liabilities | ||
Accrued compensation and benefits | 37,113 | 33,631 |
Accrued price protection credits | 12,033 | 8,239 |
Other | 32,034 | 31,489 |
Total Other Current Liabilities | 81,180 | 73,359 |
Other Non-current Liabilities | ||
Non-current tax liabilities | 21,576 | 39,196 |
Other | 35,872 | 38,666 |
Total Other Non-current Liabilities | 57,448 | 77,862 |
Buildings and improvements | ||
Property and Equipment | ||
Property and equipment, gross | 109,025 | 96,196 |
Equipment | ||
Property and Equipment | ||
Property and equipment, gross | 62,895 | 59,836 |
Computers and purchased software | ||
Property and Equipment | ||
Property and equipment, gross | 42,487 | 37,598 |
Leasehold interest in ground leases | ||
Property and Equipment | ||
Property and equipment, gross | 23,840 | 23,840 |
Leasehold improvements | ||
Property and Equipment | ||
Property and equipment, gross | 12,006 | 10,483 |
Furniture and fixtures | ||
Property and Equipment | ||
Property and equipment, gross | $ 7,794 | $ 5,691 |
Risks and Uncertainties (Detail
Risks and Uncertainties (Details) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018USD ($)companyitem | Dec. 30, 2017 | Dec. 31, 2016 | |
Risks and Uncertainties | |||
Number of notes receivable | item | 3 | ||
Number of privately held companies | company | 2 | ||
Notes receivable carrying value | $ 2.4 | ||
Number of equity investments | item | 2 | ||
Interest rate on unsettled balances due upon demand (as a percent) | 0.00% | ||
Equity investment, one | |||
Risks and Uncertainties | |||
Equity method investments | $ 4.1 | ||
Equity investment, two | |||
Risks and Uncertainties | |||
Equity method investments | 2 | ||
Impairment equity investments | $ 1.8 | ||
Accounts receivable | Customers | Arrow Electronics | |||
Risks and Uncertainties | |||
Concentrations of credit risk (as a percent) | 12.00% | 14.00% | |
Accounts receivable | Customers | Edom Technology | |||
Risks and Uncertainties | |||
Concentrations of credit risk (as a percent) | 10.00% | ||
Accounts receivable | Customers | Edom Technology | High end of range | |||
Risks and Uncertainties | |||
Concentrations of credit risk (as a percent) | 10.00% | ||
Accounts receivable | Customers | Avnet | |||
Risks and Uncertainties | |||
Concentrations of credit risk (as a percent) | 16.00% | ||
Revenue | Arrow Electronics | |||
Risks and Uncertainties | |||
Concentrations of credit risk (as a percent) | 21.00% | 12.00% | 11.00% |
Revenue | Edom Technology | |||
Risks and Uncertainties | |||
Concentrations of credit risk (as a percent) | 17.00% | 19.00% | 17.00% |
Revenue | Avnet | |||
Risks and Uncertainties | |||
Concentrations of credit risk (as a percent) | 14.00% | 13.00% |
Acquisitions - Z-Wave (Details)
Acquisitions - Z-Wave (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 18, 2018 | Dec. 29, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Purchase price allocation | |||||
Weighted-Average Amortization Period (Years) | 8 years | 8 years | |||
Goodwill | $ 397,344 | $ 397,344 | $ 288,227 | $ 276,130 | |
Revenues | 868,267 | 768,867 | $ 697,626 | ||
Pro forma financial information | |||||
Revenues | 882,109 | 824,009 | |||
Net income | $ 87,874 | $ 27,958 | |||
Earnings per share, Basic | $ 2.04 | $ 0.66 | |||
Earnings per share, Diluted | $ 2 | $ 0.65 | |||
Customer relationships | |||||
Purchase price allocation | |||||
Weighted-Average Amortization Period (Years) | 5 years | 5 years | |||
Trademarks | |||||
Purchase price allocation | |||||
Weighted-Average Amortization Period (Years) | 7 years | 7 years | |||
Z-Wave | |||||
Acquisitions | |||||
Cash consideration | $ 243,000 | ||||
Purchase price allocation | |||||
Intangible assets | 125,675 | ||||
Cash and cash equivalents | 2,841 | ||||
Accounts receivable | 5,311 | ||||
Inventory | 15,581 | ||||
Other current assets | 329 | ||||
Goodwill | 109,117 | ||||
Other non-current assets | 2,587 | ||||
Accounts payable | (3,306) | ||||
Other current liabilities | (8,918) | ||||
Other non-current liabilities | (6,648) | ||||
Total purchase price | $ 242,569 | ||||
Discount rate applicable to the projected cash flows (as a percent) | 15.00% | ||||
Revenues | 37,000 | ||||
Z-Wave | Selling, general and administrative | |||||
Purchase price allocation | |||||
Acquisition-related costs | $ 4,900 | ||||
Z-Wave | Developed technology | |||||
Purchase price allocation | |||||
Intangible assets | $ 69,875 | ||||
Weighted-Average Amortization Period (Years) | 7 years | ||||
Z-Wave | Customer relationships | |||||
Purchase price allocation | |||||
Intangible assets | $ 25,000 | ||||
Weighted-Average Amortization Period (Years) | 4 years | ||||
Z-Wave | Trademarks | |||||
Purchase price allocation | |||||
Intangible assets | $ 9,900 | ||||
Weighted-Average Amortization Period (Years) | 7 years | ||||
Z-Wave | In-process research and development | |||||
Purchase price allocation | |||||
Intangible assets | $ 20,900 |
Acquisitions - Zentri (Details)
Acquisitions - Zentri (Details) - USD ($) $ in Thousands | Jan. 20, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Purchase price allocation | ||||
Goodwill | $ 397,344 | $ 288,227 | $ 276,130 | |
Zentri | ||||
Acquisitions | ||||
Purchase price of acquisition | $ 18,100 | |||
Cash consideration | 14,300 | |||
Potential additional consideration with estimated fair value | 3,800 | |||
Purchase price allocation | ||||
Intangible assets | 6,700 | |||
Goodwill | 12,100 | |||
Other net liabilities | $ 700 |
Acquisitions - Micrium (Details
Acquisitions - Micrium (Details) - USD ($) $ in Thousands | Oct. 03, 2016 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Purchase price allocation | ||||
Goodwill | $ 397,344 | $ 288,227 | $ 276,130 | |
Micrium | ||||
Acquisitions | ||||
Purchase price of acquisition | $ 12,400 | |||
Cash consideration | 8,200 | |||
Stock consideration | 4,200 | |||
Additional stock consideration based on economic substance | $ 1,000 | |||
Post-combination compensation expense recognition period (in years) | 4 years | |||
Purchase price allocation | ||||
Intangible assets | $ 9,500 | |||
Goodwill | 3,400 | |||
Other net liabilities | $ 500 |
Acquisitions - Energy Micro (De
Acquisitions - Energy Micro (Details) - Energy Micro $ in Millions | Jul. 01, 2013USD ($) |
Acquisitions | |
Total settlement amount | $ 16 |
Potential maximum contingent consideration that could be paid | $ 26.7 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Apr. 18, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Goodwill | ||||
Goodwill, Beginning Balance | $ 288,227 | $ 276,130 | ||
Additions due to business combinations | 109,117 | 12,097 | ||
Goodwill, Ending Balance | $ 397,344 | $ 288,227 | $ 276,130 | |
Other Intangible Assets | ||||
Weighted-Average Amortization Period (Years) | 8 years | 8 years | ||
Intangible assets subject to amortization, Gross Amount | $ 296,465 | $ 193,860 | ||
Intangible assets subject to amortization, Accumulated Amortization | (125,633) | (110,716) | ||
Amortization expense related to intangible assets | 38,000 | $ 27,100 | $ 27,300 | |
Estimated aggregate amortization expense for intangible assets subject to amortization for each of the five succeeding fiscal years | ||||
2,019 | 39,222 | |||
2,020 | 36,727 | |||
2,021 | 32,337 | |||
2,022 | 24,206 | |||
2,023 | $ 18,286 | |||
Core and developed technology | ||||
Other Intangible Assets | ||||
Weighted-Average Amortization Period (Years) | 8 years | 8 years | ||
Intangible assets subject to amortization, Gross Amount | $ 237,265 | $ 161,700 | ||
Intangible assets subject to amortization, Accumulated Amortization | $ (102,116) | $ (89,442) | ||
Customer relationships | ||||
Other Intangible Assets | ||||
Weighted-Average Amortization Period (Years) | 5 years | 5 years | ||
Intangible assets subject to amortization, Gross Amount | $ 46,890 | $ 25,470 | ||
Intangible assets subject to amortization, Accumulated Amortization | $ (21,075) | (16,180) | ||
Patents | ||||
Other Intangible Assets | ||||
Intangible assets subject to amortization, Gross Amount | 3,000 | |||
Intangible assets subject to amortization, Accumulated Amortization | $ (2,750) | |||
Trademarks | ||||
Other Intangible Assets | ||||
Weighted-Average Amortization Period (Years) | 7 years | 7 years | ||
Intangible assets subject to amortization, Gross Amount | $ 12,310 | $ 3,690 | ||
Intangible assets subject to amortization, Accumulated Amortization | (2,442) | $ (2,344) | ||
Z-Wave | ||||
Goodwill | ||||
Goodwill, Ending Balance | $ 109,117 | |||
Other Intangible Assets | ||||
Gross intangible assets acquired | 125,700 | |||
Removal of fully amortized intangible assets | $ 23,100 | |||
Z-Wave | Customer relationships | ||||
Other Intangible Assets | ||||
Weighted-Average Amortization Period (Years) | 4 years | |||
Z-Wave | Trademarks | ||||
Other Intangible Assets | ||||
Weighted-Average Amortization Period (Years) | 7 years |
Debt - Convertible Senior Notes
Debt - Convertible Senior Notes (Details) $ / shares in Units, $ in Thousands, shares in Millions | Mar. 06, 2017USD ($)item$ / sharesshares | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Debt | |||
Repayments of Lines of Credit | $ 72,500 | $ 5,000 | |
Credit Facility | |||
Debt | |||
Repayments of Lines of Credit | $ 72,500 | ||
1.375% Convertible Senior Notes | |||
Debt | |||
Principal amount | $ 400,000 | ||
Semi-annual interest rate | 1.375% | ||
Conversion rate, shares per $1,000 principal | 10.7744 | ||
Number of shares of common stock | shares | 4.3 | ||
Initial conversion price | $ / shares | $ 92.81 | ||
Number of trading days within 30 trading day period | item | 20 | ||
Number of consecutive trading days | item | 30 | ||
Minimum amount the sales price of the Company's stock exceeds the conversion price (as a percent) | 130.00% | ||
Number of consecutive business days after the 10 consecutive trading day period | 5 days | ||
Number of consecutive trading days before the five consecutive business days | 10 days | ||
Maximum amount the sales price of the Company's stock exceeds the conversion price (as a percent) | 98.00% | ||
Debt issuance costs | $ 10,600 |
Debt - Carrying amount and inte
Debt - Carrying amount and interest expense of notes (Details) - 1.375% Convertible Senior Notes - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Liability component | ||
Principal | $ 400,000 | $ 400,000 |
Unamortized debt discount | (39,298) | (50,499) |
Unamortized debt issuance costs | (5,931) | (7,622) |
Net carrying amount | 354,771 | 341,879 |
Equity component | ||
Net carrying amount | $ 57,735 | 57,735 |
Effective interest rate | 4.75% | |
Amortization period of debt discount and debt issuance costs | 3 years 2 months 12 days | |
Interest expense related to the Notes | ||
Contractual interest expense | $ 5,500 | 4,492 |
Amortization of debt discount | 11,202 | 8,816 |
Amortization of debt issuance costs | 1,690 | 1,330 |
Interest Expense, Total | $ 18,392 | $ 14,638 |
Debt - Credit Facility (Details
Debt - Credit Facility (Details) $ in Thousands | Mar. 06, 2017USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Debt | ||||
Repayment of credit facility amount | $ 72,500 | $ 5,000 | ||
Credit Facility | ||||
Debt | ||||
Repayment of credit facility amount | $ 72,500 | |||
Maximum leverage ratio | 3 | |||
Minimum fixed charge coverage ratio | 1.25 | |||
Revolving Credit Facility | ||||
Debt | ||||
Maximum borrowing capacity | $ 300,000 | |||
Additional increase in borrowing capacity of the line of credit available at the entity's option | $ 200,000 | |||
Revolving Credit Facility | Base Rate | Low end of range | ||||
Debt | ||||
Interest rate margin (as a percent) | 0.25% | |||
Revolving Credit Facility | Base Rate | High end of range | ||||
Debt | ||||
Interest rate margin (as a percent) | 1.00% | |||
Revolving credit facility, other than swingline loans | Federal Funds | ||||
Debt | ||||
Interest rate margin (as a percent) | 0.50% | |||
Revolving credit facility, other than swingline loans | Eurodollar Base Rate | ||||
Debt | ||||
Interest rate margin (as a percent) | 1.00% | |||
Revolving credit facility, other than swingline loans | Eurodollar Base Rate | Low end of range | ||||
Debt | ||||
Interest rate margin (as a percent) | 1.25% | |||
Revolving credit facility, other than swingline loans | Eurodollar Base Rate | High end of range | ||||
Debt | ||||
Interest rate margin (as a percent) | 2.00% | |||
Swingline Loans | ||||
Debt | ||||
Maximum borrowing capacity | $ 10,000 | |||
Letter of Credit | ||||
Debt | ||||
Maximum borrowing capacity | $ 25,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | Sep. 17, 2018USD ($) | Jun. 21, 2018patent | Jul. 16, 2014patent | Jan. 28, 2014patent | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Operating Leases | |||||||
Rent expense under operating leases | $ 6,000 | $ 5,500 | $ 4,700 | ||||
Minimum annual future rentals | |||||||
2,019 | 5,287 | ||||||
2,020 | 4,746 | ||||||
2,021 | 4,051 | ||||||
2,022 | 3,485 | ||||||
2,023 | 2,810 | ||||||
Thereafter | 3,842 | ||||||
Total minimum lease payments | 24,221 | ||||||
Investment Commitment | |||||||
Investment Funded | 4,300 | ||||||
Patent Litigation | |||||||
Payment for settlement of litigation | $ 0 | ||||||
High end of range | |||||||
Investment Commitment | |||||||
Commitment to invest in limited partnership | $ 10,000 | ||||||
Cresta Technology | |||||||
Patent Litigation | |||||||
Number of patents allegedly infringed | patent | 6 | 3 | |||||
Bandspeed | |||||||
Patent Litigation | |||||||
Number of patents allegedly infringed | patent | 8 |
Stockholders' Equity - Share re
Stockholders' Equity - Share repurchase programs (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 31, 2016 | Oct. 31, 2018 | Jul. 01, 2017 | |
Share Repurchase Programs | ||||
Value of shares repurchased and retired | $ 39,276 | $ 40,543 | ||
Common Stock | ||||
Common Stock | ||||
Number of shares issued during the period | 800 | |||
Share Repurchase Programs | ||||
Number of shares repurchased and retired | 434 | 893 | ||
Value of shares repurchased and retired | $ 39,300 | $ 40,500 | ||
Program Authorization Date October 2017 | ||||
Share Repurchase Programs | ||||
Program amount authorized to repurchase | 200,000 | $ 200,000 | $ 100,000 | |
Program Authorization Date January 2017 | ||||
Share Repurchase Programs | ||||
Program amount authorized to repurchase | 100,000 | |||
Program Authorization Date August 2015 | ||||
Share Repurchase Programs | ||||
Program amount authorized to repurchase | $ 100,000 |
Stockholders' Equity - Reclassi
Stockholders' Equity - Reclassifications from AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Amounts Reclassified from AOCI | |||
Income (loss) before income taxes | $ 72,161 | $ 76,903 | $ 64,496 |
Income tax (expense) benefit | 11,430 | (29,811) | (3,002) |
Net income | 83,591 | 47,092 | 61,494 |
Net changes to available-for-sale securities: | |||
Unrealized gains (losses) arising during the period | (79) | 255 | 63 |
Reclassification for losses included in net income | (10) | ||
Net changes to cash flow hedges | |||
Unrealized gains (losses) arising during the period | 200 | (513) | |
Reclassification for gains (losses) included in net income | (66) | 633 | (87) |
Other comprehensive income | 45 | 888 | (537) |
Reclassifications From Accumulated Other Comprehensive Loss | |||
Amounts Reclassified from AOCI | |||
Income (loss) before income taxes | (365) | 1,808 | (249) |
Income tax (expense) benefit | 77 | (633) | 87 |
Net income | (288) | 1,175 | (162) |
Reclassifications From Accumulated Other Comprehensive Loss | Losses on available-for-sales securities | |||
Amounts Reclassified from AOCI | |||
Interest income and other, net | (49) | ||
Reclassifications From Accumulated Other Comprehensive Loss | Gains (losses) on cash flow hedges | |||
Amounts Reclassified from AOCI | |||
Interest income and other, net | $ (316) | ||
Interest expense | $ 1,808 | $ (249) |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Revenues | |||
Revenues | $ 868,267 | $ 768,867 | $ 697,626 |
Revenue from performance obligations | 24,300 | ||
Distributors | |||
Revenues | |||
Revenues | 618,989 | 547,419 | 471,622 |
Direct customers | |||
Revenues | |||
Revenues | 249,278 | 221,448 | 226,004 |
Internet of Things | |||
Revenues | |||
Revenues | 463,838 | 395,012 | 314,614 |
Infrastructure | |||
Revenues | |||
Revenues | 199,478 | 152,158 | 147,677 |
Broadcast | |||
Revenues | |||
Revenues | 141,412 | 152,980 | 157,746 |
Access | |||
Revenues | |||
Revenues | $ 63,539 | $ 68,717 | $ 77,589 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Incentive Plans (Details) | 12 Months Ended |
Dec. 29, 2018shares | |
2009 Stock Incentive Plan | |
Stock-Based Compensation | |
Number of shares deducted for each share granted | 1 |
2009 Stock Incentive Plan | Low end of range | |
Stock-Based Compensation | |
Award vesting period | 3 years |
2009 Stock Incentive Plan | High end of range | |
Stock-Based Compensation | |
Award vesting period | 4 years |
2009 Stock Incentive Plan | Stock options | |
Stock-Based Compensation | |
Minimum exercise price as percentage of fair market value of shares on the date of grant | 100.00% |
2000 Stock Incentive Plan | Low end of range | |
Stock-Based Compensation | |
Award vesting period | 3 years |
2000 Stock Incentive Plan | High end of range | |
Stock-Based Compensation | |
Award vesting period | 8 years |
2000 Stock Incentive Plan | Stock options | High end of range | |
Stock-Based Compensation | |
Term of award | 10 years |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Grants and Modifications (Details) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018USD ($)shares | Dec. 30, 2017shares | Dec. 31, 2016USD ($)employeeshares | |
Stock-Based Compensation | |||
SG&A expense related to modifications to equity awards | $ | $ 900 | ||
Number of employee terminated | employee | 3 | ||
2009 Stock Incentive Plan | Full value awards | |||
Stock-Based Compensation | |||
Number of equity awards granted | 600 | 700 | 1,300 |
2009 Stock Incentive Plan | Stock options | |||
Stock-Based Compensation | |||
Stock options granted (in shares) | 0 | 0 | 200 |
2009 Stock Incentive Plan | MSUs | |||
Stock-Based Compensation | |||
Number of equity awards granted | 41 | 54 | 65 |
Cash consideration based upon achievement of specified levels of market conditions | $ | $ 0 | ||
Award vesting period | 3 years | ||
2009 Stock Incentive Plan | PSUs | |||
Stock-Based Compensation | |||
Number of equity awards granted | 41 | 54 | 65 |
Cash consideration based upon achievement of specified levels of market conditions | $ | $ 0 | ||
Award vesting period | 3 years |
Stock-Based Compensation - 2009
Stock-Based Compensation - 2009 Employee Stock Purchase Plan (Details) - 2009 Employee Stock Purchase Plan - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Stock-Based Compensation | |||
Minimum exercise price as percentage of fair market value of shares on the date of grant | 85.00% | ||
Term of award | 24 months | 24 months | 24 months |
Shares issued | 223 | 239 | 224 |
Weighted average fair value for purchase rights granted (in dollars per share) | $ 22.59 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value Assumptions (Details) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Fair value assumptions | |||
Dividend yield (as a percent) | 0.00% | 0.00% | 0.00% |
Stock options | |||
Fair value assumptions | |||
Expected volatility (as a percent) | 32.00% | ||
Risk-free interest rate % | 1.30% | ||
Expected term (in years) | 5 years 4 months 24 days | ||
MSUs | |||
Fair value assumptions | |||
Expected volatility (as a percent) | 29.00% | 31.00% | 30.00% |
Risk-free interest rate % | 2.40% | 1.60% | 0.90% |
Expected term (in years) | 2 years 10 months 24 days | 2 years 10 months 24 days | 2 years 10 months 24 days |
2009 Employee Stock Purchase Plan | |||
Fair value assumptions | |||
Expected volatility (as a percent) | 30.00% | 28.00% | 30.00% |
Risk-free interest rate % | 2.40% | 1.10% | 0.60% |
Expected term (in years) | 9 months | 8 months | 15 months |
Stock-Based Compensation - St_3
Stock-Based Compensation - Stock options activity (Details) - Stock options $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 29, 2018USD ($)$ / sharesshares | |
Number of options | |
Outstanding at the beginning of the year (in shares) | shares | 170 |
Exercised (in shares) | shares | (33) |
Outstanding at the end of the year (in shares) | shares | 137 |
Vested and expected to vest at the end of the year (in shares) | shares | 83 |
Exercisable at the end of the year (in shares) | shares | 50 |
Weighted-Average Exercise Price | |
Outstanding at the beginning of the year (in dollars per share) | $ / shares | $ 38.88 |
Exercised (in dollars per share) | $ / shares | 36.45 |
Outstanding at the end of the year (in dollars per share) | $ / shares | 39.47 |
Vested and expected to vest at the end of the year (in dollars per share) | $ / shares | 40.39 |
Exercisable at the end of the year (in dollars per share) | $ / shares | $ 37.88 |
Weighted-Average Remaining Contractual Term (In years) | |
Outstanding at the end of the year | 7 years 1 month 6 days |
Vested and expected to vest at the end of the year | 7 years 1 month 6 days |
Exercisable at the end of the year | 7 years 1 month 6 days |
Aggregate Intrinsic Value | |
Outstanding at the end of the year (in dollars) | $ | $ 5,327 |
Vested and expected to vest at the end of the year (in dollars) | $ | 3,154 |
Options exercisable at the end of the year (in dollars) | $ | $ 2,031 |
Stock-Based Compensation - RSAs
Stock-Based Compensation - RSAs and RSUs, PSUs and MSUs activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
RSAs and RSUs | |||
Number of equity awards | |||
Outstanding at the beginning the of year (in shares) | 1,523 | ||
Granted (in shares) | 522 | ||
Vested, earned or issued (in shares) | (730) | ||
Cancelled or forfeited (in shares) | (97) | ||
Outstanding at the end of the year (in shares) | 1,218 | 1,523 | |
Outstanding at the end of the year and expected to vest (in shares) | 1,147 | ||
Weighted-Average Purchase Price | |||
Granted (in dollars per share) | $ 93.75 | $ 72.85 | $ 40.55 |
Weighted-Average Remaining Vesting Term | |||
Outstanding at the end of year | 10 months 10 days | ||
Outstanding at the end of year and expected to vest | 10 months 10 days | ||
Aggregate Intrinsic Value | |||
Outstanding at the end of the year (in dollars) | $ 95,620 | ||
Outstanding at the end of the year and expected to vest (in dollars) | $ 90,008 | ||
PSUs and MSUs | |||
Number of equity awards | |||
Outstanding at the beginning the of year (in shares) | 259 | ||
Granted (in shares) | 81 | ||
Vested, earned or issued (in shares) | (37) | ||
Cancelled or forfeited (in shares) | (21) | ||
Outstanding at the end of the year (in shares) | 282 | 259 | |
Outstanding at the end of the year and expected to vest (in shares) | 249 | ||
Weighted-Average Purchase Price | |||
Granted (in dollars per share) | $ 97.53 | $ 78.40 | $ 32.23 |
Weighted-Average Remaining Vesting Term | |||
Outstanding at the end of year | 1 year 1 month 6 days | ||
Outstanding at the end of year and expected to vest | 1 year 1 month 6 days | ||
Aggregate Intrinsic Value | |||
Outstanding at the end of the year (in dollars) | $ 22,164 | ||
Outstanding at the end of the year and expected to vest (in dollars) | $ 19,615 |
Stock-Based Compensation - Gran
Stock-Based Compensation - Grant Date Weighted Average Fair Value (Details) - $ / shares | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
RSAs and RSUs | |||
Stock-Based Compensation | |||
Equity award, weighted average fair value at grant date | $ 93.75 | $ 72.85 | $ 40.55 |
PSUs and MSUs | |||
Stock-Based Compensation | |||
Equity award, weighted average fair value at grant date | $ 97.53 | $ 78.40 | 32.23 |
Stock options | |||
Stock-Based Compensation | |||
Options, weighted average fair value at grant date | $ 40.38 |
Stock-Based Compensation - St_4
Stock-Based Compensation - Stock-based payment and stock option values (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Stock-based payment and stock option values | |||
Cash received for the issuance of common stock, net of shares withheld for taxes | $ 13,300 | ||
Payment for shares withheld for taxes | 19,483 | $ 15,753 | $ 10,561 |
Stock options | |||
Stock-based payment and stock option values | |||
Intrinsic value of options exercised | 1,952 | 2,174 | 2,560 |
RSUs | |||
Stock-based payment and stock option values | |||
Intrinsic value of equity awards that vested | 68,012 | 53,093 | 36,502 |
Grant date fair value of equity awards that vested | 37,720 | 32,449 | $ 39,853 |
MSUs | |||
Stock-based payment and stock option values | |||
Intrinsic value of equity awards that vested | 3,562 | 687 | |
Grant date fair value of equity awards that vested | $ 1,788 | $ 633 |
Stock-Based Compensation - St_5
Stock-Based Compensation - Stock-based compensation costs (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Stock-Based Compensation | |||
Stock-based compensation cost | $ 50,077 | $ 44,752 | $ 39,628 |
Income tax benefit | 8,890 | 11,073 | 8,496 |
Share based compensation costs after tax | 41,187 | 33,679 | 31,132 |
Total unrecognized compensation costs related to awards | $ 65,400 | ||
Weighted-average period of recognition of unrecognized compensation costs | 1 year 10 months 24 days | ||
Reserved shares of common stock for future issuance | 3,328 | ||
2009 Stock Incentive Plan | |||
Stock-Based Compensation | |||
Reserved shares of common stock for future issuance | 2,343 | ||
2009 Employee Stock Purchase Plan | |||
Stock-Based Compensation | |||
Reserved shares of common stock for future issuance | 985 | ||
Cost of revenues | |||
Stock-Based Compensation | |||
Stock-based compensation cost | $ 1,238 | 1,090 | 1,070 |
Research and development | |||
Stock-Based Compensation | |||
Stock-based compensation cost | 23,867 | 21,771 | 19,573 |
Selling, general and administrative | |||
Stock-Based Compensation | |||
Stock-based compensation cost | $ 24,972 | $ 21,891 | $ 18,985 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Employee Benefit Plan | |||
Contribution made to the 401 (k) Plan | $ 3.7 | $ 3.5 | $ 3.4 |
Related Party Transactions (Det
Related Party Transactions (Details) - Energy Micro - USD ($) $ in Millions | Jul. 01, 2013 | Dec. 31, 2016 |
Related Party Transaction | ||
Contingent consideration | $ 26.7 | |
Mr. Forre | ||
Related Party Transaction | ||
Beneficial ownership percentage | 30.00% | |
Contingent consideration | $ 4.8 | |
Mr. Bogen | ||
Related Party Transaction | ||
Beneficial ownership percentage | 2.00% | |
Cash consideration | $ 0.3 |
Income Taxes - Summary (Details
Income Taxes - Summary (Details) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016 | |
Income Taxes | |||
Federal statutory rate (as a percent) | 21.00% | 35.00% | 35.00% |
Decrease in effective tax rate due to changes in provisional amount | (6.2) | ||
Benefit to the provisional amounts recorded at December 30, 2017 | $ (4.5) | ||
Transition tax cost | $ 54.4 | ||
Total provisional transaction tax liability | 42.6 | ||
Decrease in provisional amount related to transition tax recorded at December 30, 2017 | $ (6.1) | ||
Period for payment of transition tax | 8 years | ||
Unpaid balance of its transition tax obligation payable between April 2022 and April 2025 | $ 21.6 | ||
Net provisional benefit on remeasurement of certain deferred tax assets and liabilities | (28.1) | ||
Increase in deferred tax expense due to revaluation of net deferred tax asset | 21.8 | ||
Reduction in provisional tax benefit | $ 1 | ||
Altera decision | |||
Income Taxes | |||
Reversal of deferred tax liability | 39.4 | ||
Reduction in deferred tax benefit due to reduction of corresponding deferred tax liability | $ 10.5 |
Income Taxes - Income before in
Income Taxes - Income before income taxes and Provision (benefit) for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income before income taxes | |||
Domestic | $ 19,777 | $ 9,700 | $ 4,313 |
Foreign | 52,384 | 67,203 | 60,183 |
Income before income taxes | 72,161 | 76,903 | 64,496 |
Current: | |||
Domestic | (8,843) | 48,947 | 2,639 |
Foreign | 5,888 | 7,077 | 4,421 |
Total Current | (2,955) | 56,024 | 7,060 |
Deferred: | |||
Domestic | (8,978) | (25,760) | (2,430) |
Foreign | 503 | (453) | (1,628) |
Total Deferred | (8,475) | (26,213) | (4,058) |
Provision (benefit) for income taxes | $ (11,430) | $ 29,811 | $ 3,002 |
Income Taxes - Tax rate reconci
Income Taxes - Tax rate reconciliation (Details) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Reconciliation of federal statutory tax rate to effective tax rate | |||
Federal statutory rate (as a percent) | 21.00% | 35.00% | 35.00% |
Foreign tax rate benefit (as a percent) | (12.90%) | (25.40%) | (22.60%) |
Research and development tax credits (as a percent) | (9.80%) | (4.50%) | (4.10%) |
GILTI and Subpart F income | 4.30% | 1.40% | 1.40% |
Nondeductible (nontaxable) foreign expenses | 3.90% | 1.10% | (4.00%) |
State tax expense | 1.50% | 0.90% | 0.60% |
Release of prior year unrecognized tax benefits (as a percent) | (2.70%) | (0.60%) | (1.70%) |
Excess officer compensation (as a percent) | 2.40% | 1.50% | 1.40% |
Other tax effects of equity compensation | (0.40%) | (2.20%) | (1.50%) |
Change in cost-sharing treatment of stock-based compensation | (2.20%) | 5.20% | (0.50%) |
Excess tax benefit of stock-based compensation | (5.90%) | (5.60%) | |
Change in prior period valuation allowance | (2.50%) | (1.30%) | (0.60%) |
Transition Tax On unremitted foreign earnings | (8.40%) | 70.80% | |
Revaluation of deferred tax balances | 0.30% | 28.20% | |
Other deferred tax impacts of tax reform | (3.10%) | (64.80%) | |
Other (as a percent) | (1.30%) | (0.90%) | 1.30% |
Effective Tax Rate (as a percent) | (15.80%) | 38.80% | 4.70% |
Income Taxes - Altera Corp and
Income Taxes - Altera Corp and Singapore Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Taxes | |||
Net deferred tax assets | $ 35,514 | $ 36,174 | |
Income tax benefit | (11,430) | 29,811 | $ 3,002 |
Altera decision | |||
Income Taxes | |||
Net deferred tax assets | 27,200 | ||
Singapore | |||
Income Taxes | |||
Income tax benefit | $ (5,400) | $ (11,000) | $ (7,700) |
Income tax benefit (expense) per diluted share (in dollars per share) | $ 0.12 | $ 0.25 | $ 0.18 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Taxes (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 9,973 | $ 12,925 |
Research and development tax credit carryforwards | 12,500 | 12,322 |
Stock-based compensation | 4,360 | 5,256 |
Depreciation and amortization | 7,799 | |
Capitalized research and development | 2,521 | 3,468 |
Deferred income on shipments to distributors | 5,824 | 7,070 |
Expected future cost-sharing adjustment | 25,257 | 21,582 |
Accrued liabilities and other | 7,737 | 6,999 |
Deferred tax assets | 75,971 | 69,622 |
Less: Valuation allowance | (4,975) | (6,518) |
Deferred tax assets, net | 70,996 | 63,104 |
Deferred tax liabilities: | ||
Acquired intangible assets | 20,656 | 13,884 |
Depreciation and amortization | 4,604 | 1,274 |
Convertible debt | 8,080 | 10,351 |
Prepaid expenses and other | 2,142 | 1,421 |
Deferred tax liabilities | 35,482 | 26,930 |
Net deferred tax assets | $ 35,514 | $ 36,174 |
Income Taxes - Operating Loss a
Income Taxes - Operating Loss and Tax Credit Carryforwards (Details) $ in Millions | 12 Months Ended |
Dec. 29, 2018USD ($) | |
Operating loss and tax credit carryforwards | |
Undistributed earnings of foreign subsidiaries | $ 105 |
Provision for foreign withholding tax and state income taxes | 0 |
State | |
Operating loss and tax credit carryforwards | |
Operating loss carryforwards | 43.8 |
State | Tentative minimum tax credit | |
Operating loss and tax credit carryforwards | |
Tax credit carryforwards | 0.1 |
State | Research and development tax credit | |
Operating loss and tax credit carryforwards | |
Tax credit carryforwards | 13.5 |
Silicon Clocks, Spectra Linear and Ember | Federal | |
Operating loss and tax credit carryforwards | |
Operating loss carryforwards | 32.7 |
Tax credit carryforwards | 1.9 |
Energy Micro | Foreign | |
Operating loss and tax credit carryforwards | |
Operating loss carryforwards | $ 1.9 |
Income Taxes - Uncertain Tax Po
Income Taxes - Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Summarizes the activity related to gross unrecognized tax benefits | |||
Beginning balance | $ 3,187 | $ 3,054 | $ 3,610 |
Additions based on tax positions related to current year | 630 | 456 | 439 |
Additions based on tax positions related to prior years | 115 | 114 | 99 |
Reductions for tax positions as a result of a lapse of the applicable statute of limitations | (1,896) | (437) | (1,094) |
Ending balance | 2,036 | 3,187 | 3,054 |
Interest on income tax included in gross unrecognized tax benefits | 2,100 | 3,200 | 3,000 |
Gross unrecognized tax benefits which would affect the effective tax rate if recognized | 2,100 | $ 3,200 | $ 2,200 |
Norwegian | |||
Summarizes the activity related to gross unrecognized tax benefits | |||
Taxes payable during appeal process | 9,000 | ||
Norwegian | 2013 | |||
Summarizes the activity related to gross unrecognized tax benefits | |||
Adjustment to the pricing of the intercompany transaction | $ 16,200 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018USD ($)segmentproduct | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Segment Information | |||
Number of operating segments | segment | 1 | ||
Number of product categories | product | 4 | ||
Revenues | $ 868,267 | $ 768,867 | $ 697,626 |
Property and equipment, net | 139,049 | 127,682 | |
United States | |||
Segment Information | |||
Revenues | 149,385 | 112,574 | 94,583 |
Property and equipment, net | 128,622 | 119,746 | |
China | |||
Segment Information | |||
Revenues | 344,255 | 307,748 | 291,974 |
Rest of world | |||
Segment Information | |||
Revenues | 374,627 | 348,545 | $ 311,069 |
Property and equipment, net | $ 10,427 | $ 7,936 |
Schedule II - VALUATION AND Q_2
Schedule II - VALUATION AND QUALIFYING ACCOUNTS (Details) - Valuation Allowance for Deferred Tax Assets - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Valuation Allowance | |||
Balance at Beginning of Period | $ 6,518 | $ 12,361 | $ 10,264 |
Additions Charged to Expenses | 435 | 2,110 | 2,715 |
Additions Charged to Other Accounts | 1,732 | ||
Deductions | (1,978) | (9,685) | (618) |
Balance at End of Period | $ 4,975 | $ 6,518 | $ 12,361 |