Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 29, 2018 | Oct. 22, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | LATTICE SEMICONDUCTOR CORP | |
Entity Central Index Key | 855,658 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 29, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-29 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 129,525,043 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Revenue: | ||||
Revenues | $ 101,484 | $ 91,971 | $ 302,822 | $ 290,695 |
Costs and expenses: | ||||
Research and development | 19,131 | 25,648 | 63,153 | 79,857 |
Selling, general, and administrative | 21,775 | 21,290 | 69,886 | 67,133 |
Amortization of acquired intangible assets | 3,823 | 8,526 | 13,982 | 25,777 |
Restructuring charges | 90 | 3,071 | 5,495 | 4,713 |
Acquisition related charges | 0 | 681 | 1,531 | 3,208 |
Impairment of acquired intangible assets | 586 | 36,198 | 12,486 | 36,198 |
Gain on sale of building | 0 | (4,624) | 0 | (4,624) |
Total costs and expenses | 88,525 | 129,439 | 304,222 | 337,594 |
Income (loss) from operations | 12,959 | (37,468) | (1,400) | (46,899) |
Interest expense | (5,500) | (3,888) | (15,582) | (14,112) |
Other expense, net | (452) | (2,027) | (246) | (2,104) |
Income (loss) before income taxes | 7,007 | (43,383) | (17,228) | (63,115) |
Income tax expense (benefit) | 33 | (331) | 1,973 | 234 |
Net income (loss) | $ 6,974 | $ (43,052) | $ (19,201) | $ (63,349) |
Net loss per share, basic (in usd per share) | $ 0.05 | $ (0.35) | $ (0.15) | $ (0.52) |
Net loss per share, diluted (in usd per share) | $ 0.05 | $ (0.35) | $ (0.15) | $ (0.52) |
Shares used in per share calculations, basic (in shares) | 127,816 | 122,990 | 125,578 | 122,393 |
Shares used in per share calculations, diluted (in shares) | 129,474 | 122,990 | 125,578 | 122,393 |
Product | ||||
Revenue: | ||||
Revenues | $ 97,932 | $ 87,369 | $ 291,335 | $ 263,206 |
Costs and expenses: | ||||
Cost of revenue | 43,120 | 38,032 | 137,430 | 120,395 |
Licensing and services | ||||
Revenue: | ||||
Revenues | 3,552 | 4,602 | 11,487 | 27,489 |
Costs and expenses: | ||||
Cost of revenue | $ 0 | $ 617 | $ 259 | $ 4,937 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ 6,974 | $ (43,052) | $ (19,201) | $ (63,349) |
Other comprehensive income (loss:) | ||||
Unrealized gain (loss) related to marketable securities, net of tax | 14 | (1) | 16 | (72) |
Reclassification adjustment for (gains) losses related to marketable securities included in other expense, net of tax | (17) | 37 | (18) | 237 |
Translation adjustment, net of tax | (584) | 431 | (1,124) | 1,381 |
Change in actuarial valuation of defined benefit pension | 0 | 0 | 0 | (47) |
Comprehensive income (loss) | $ 6,387 | $ (42,585) | $ (20,327) | $ (61,850) |
CONSOLIDATED BALANCE SHEETS (un
CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 107,893 | $ 106,815 |
Short-term marketable securities | 9,600 | 4,982 |
Accounts receivable, net of allowance for doubtful accounts | 75,648 | 55,104 |
Inventories | 66,381 | 79,903 |
Prepaid expenses and other current assets | 24,143 | 16,567 |
Total current assets | 283,665 | 263,371 |
Property and equipment, less accumulated depreciation of $139,310 at September 29, 2018 and $131,260 at December 30, 2017 | 35,724 | 40,423 |
Intangible assets, net | 24,977 | 51,308 |
Goodwill | 267,514 | 267,514 |
Deferred income taxes | 188 | 198 |
Other long-term assets | 20,259 | 13,147 |
Total assets | 632,327 | 635,961 |
Current liabilities: | ||
Accounts payable and accrued expenses (includes restructuring) | 46,929 | 54,405 |
Accrued payroll obligations | 9,859 | 10,416 |
Current portion of long-term debt | 14,104 | 1,508 |
Deferred licensing and services revenue | 0 | |
Total current liabilities | 70,892 | 83,647 |
Long-term debt | 261,035 | 299,667 |
Other long-term liabilities | 39,274 | 34,954 |
Total liabilities | 371,201 | 418,268 |
Contingencies (Note 16) | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value, 10,000,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $.01 par value, 300,000,000 shares authorized; 129,275,000 shares issued and outstanding as of September 29, 2018 and 123,895,000 shares issued and outstanding as of December 30, 2017 | 1,293 | 1,239 |
Additional paid-in capital | 732,073 | 695,768 |
Accumulated deficit | (469,662) | (477,862) |
Accumulated other comprehensive loss | (2,578) | (1,452) |
Total stockholders' equity | 261,126 | 217,693 |
Total liabilities and stockholders' equity | 632,327 | 635,961 |
Product | ||
Current liabilities: | ||
Deferred licensing and services revenue | 0 | 17,250 |
Licensing and services | ||
Current liabilities: | ||
Deferred licensing and services revenue | $ 0 | $ 68 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 139,310 | $ 131,260 |
Preferred stock, par value per share (in dollars per share) | $ 0.01000 | $ 0.01000 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 129,275,000 | 123,895,000 |
Common stock, shares outstanding | 129,275,000 | 123,895,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) $ in Thousands | 9 Months Ended | |
Sep. 29, 2018USD ($) | Sep. 30, 2017USD ($) | |
Cash flows from operating activities: | ||
Net loss | $ (19,201) | $ (63,349) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 30,740 | 45,591 |
Impairment of acquired intangible assets | 12,486 | 36,198 |
Amortization of debt issuance costs and discount | 1,847 | 1,680 |
(Gain) loss on sale or maturity of marketable securities | (18) | 237 |
Gain on forward contracts | (105) | (72) |
Stock-based compensation expense | 9,908 | 9,286 |
Gain on disposal of fixed assets | (135) | (197) |
Gain on sale of building | 0 | (4,624) |
Loss on sale of assets and business units | 0 | 1,496 |
Impairment of cost-method investment | 266 | 692 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (18,736) | 20,687 |
Inventories | 13,892 | 1,519 |
Prepaid expenses and other assets | (11,729) | 3,839 |
Accounts payable and accrued expenses (includes restructuring) | 1,661 | (17,901) |
Accrued payroll obligations | (557) | (2,002) |
Income taxes payable | 309 | (711) |
Deferred income | 0 | |
Net cash provided by operating activities | 20,560 | 35,746 |
Cash flows from investing activities: | ||
Proceeds from sales of and maturities of short-term marketable securities | 5,000 | 9,689 |
Purchases of marketable securities | (9,603) | (7,420) |
Proceeds from sale of building | 0 | 7,895 |
Cash paid for costs of sale of building | 0 | (1,004) |
Capital expenditures | (6,178) | (12,325) |
Proceeds from sale of assets and business units | 0 | 967 |
Short-term loan to cost-method investee | 0 | (2,000) |
Cash paid for software licenses | (6,144) | (6,472) |
Net cash used in investing activities | (16,925) | (10,670) |
Cash flows from financing activities: | ||
Restricted stock unit tax withholdings | (1,600) | (2,787) |
Proceeds from issuance of common stock | 28,051 | 3,452 |
Repayment of debt | (27,884) | (33,679) |
Net cash used in financing activities | (1,433) | (33,014) |
Effect of exchange rate change on cash | (1,124) | 1,381 |
Net increase (decrease) in cash and cash equivalents | 1,078 | (6,557) |
Beginning cash and cash equivalents | 106,815 | 106,552 |
Ending cash and cash equivalents | 107,893 | 99,995 |
Supplemental cash flow information: | ||
Change in unrealized gain (loss) related to marketable securities, net of tax, included in Accumulated other comprehensive loss | (16) | 72 |
Income taxes paid, net of refunds | 2,716 | 2,308 |
Interest paid | 13,976 | 16,379 |
Accrued purchases of plant and equipment | 332 | 51 |
Note receivable resulting from sale of assets and business units | 0 | |
Product | ||
Changes in assets and liabilities: | ||
Deferred income | 0 | 3,862 |
Licensing and services | ||
Changes in assets and liabilities: | ||
Deferred income | $ (68) | $ (485) |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 29, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies The accompanying Consolidated Financial Statements are unaudited and have been prepared by Lattice Semiconductor Corporation (“Lattice,” the “Company,” “we,” “us,” or “our”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and in our opinion include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of results for the interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") have been condensed or omitted as permitted by the SEC's rules and regulations. These Consolidated Financial Statements should be read in conjunction with our audited financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 30, 2017 . Fiscal Reporting Period We report based on a 52 or 53-week fiscal year ending on the Saturday closest to December 31. Our third quarter of fiscal 2018 and third quarter of fiscal 2017 ended on September 29, 2018 and September 30, 2017 , respectively. All references to quarterly or nine months ended financial results are references to the results for the relevant 13-week or 39-week fiscal period, respectively. Principles of Consolidation and Presentation The accompanying Consolidated Financial Statements include the accounts of Lattice and its subsidiaries after the elimination of all intercompany balances and transactions. Reclassifications Certain amounts in the prior fiscal year in the accompanying consolidated financial statements and notes thereto have been reclassified to conform to the presentation adopted in the current fiscal year. These reclassifications had no material effect on the results of operations or financial position for any period presented. We had previously treated an investment as an equity-method investment and reported equity in net loss of an unconsolidated affiliate separately, amounting to approximately $0.2 million and $0.7 million for the third quarter and first nine months, respectively, of fiscal 2017. We have reclassified the prior year loss to Other expense, net on our Consolidated Statements of Operations to be consistent with the current year treatment of the investment as a cost-method investment. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and classification of assets, such as marketable securities, accounts receivable, contract assets (included in prepaid expenses and other current assets), inventory, goodwill (including the assessment of reporting units), intangible assets, current and deferred income taxes, accrued liabilities (including restructuring charges and bonus arrangements), disclosure of contingent assets and liabilities at the date of the financial statements, amounts used in acquisition valuations and purchase accounting, impairment assessments, the fair value of equity awards, and the reported amounts of product revenue, licensing and services revenue, and expenses during the fiscal periods presented. Actual results could differ from those estimates. Cash Equivalents and Marketable Securities We consider all investments that are readily convertible into cash and that have original maturities of three months or less to be cash equivalents. Cash equivalents consist primarily of highly liquid investments in time deposits or money market accounts and are carried at cost. We account for marketable securities as available-for-sale investments, as defined by U.S. GAAP, and record unrealized gains or losses to Accumulated other comprehensive loss on our Consolidated Balance Sheets , unless losses are considered other than temporary, in which case, those are recorded directly to the Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income (Loss) . Deposits with financial institutions at times exceed Federal Deposit Insurance Corporation insurance limits. Fair Value of Financial Instruments We invest in various financial instruments, which may include corporate and government bonds, notes, and commercial paper. We value these instruments at their fair value and monitor our portfolio for impairment on a periodic basis. In the event that the carrying value of an investment exceeds its fair value and the decline in value is determined to be other than temporary, we would record an impairment charge and establish a new carrying value. We assess other than temporary impairment of marketable securities in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, “ Fair Value Measurements .” The framework under the provisions of ASC 820 establishes three levels of inputs that may be used to measure fair value. Each level of input has different levels of subjectivity and difficulty involved in determining fair value. Level 1 instruments generally represent quoted prices for identical assets or liabilities in active markets. Therefore, determining fair value for Level 1 instruments generally does not require significant management judgment, and the estimation is not difficult. Our Level 1 instruments consist of U.S. Government agency obligations, corporate notes and bonds, and commercial paper that are traded in active markets and are classified as Short-term marketable securities on our Consolidated Balance Sheets . Level 2 instruments include inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices for identical instruments in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Our Level 2 instruments consist of foreign currency exchange contracts entered into to hedge against fluctuation in the Japanese yen. Level 3 instruments include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. As a result, the determination of fair value for Level 3 instruments requires significant management judgment and subjectivity. We did not have any Level 3 instruments during the periods presented. Foreign Exchange and Translation of Foreign Currencies While our revenues and the majority of our expenses are denominated in U.S. dollars, we have international subsidiaries and branch operations that conduct some transactions in foreign currencies, and we collect an annual Japanese consumption tax refund in yen. Gains or losses from foreign exchange rate fluctuations on balances denominated in foreign currencies are reflected in Other expense, net . Realized gains or losses on foreign currency transactions were not significant for the periods presented. We translate accounts denominated in foreign currencies in accordance with ASC 830, “ Foreign Currency Matters ,” using the current rate method under which asset and liability accounts are translated at the current rate, while stockholders' equity accounts are translated at the appropriate historical rates, and revenue and expense accounts are translated at average monthly exchange rates. Translation adjustments related to the consolidation of foreign subsidiary financial statements are reflected in Accumulated other comprehensive loss in Stockholders' equity (see "Note 11 - Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss"). Derivative Financial Instruments We mitigate foreign currency exchange rate risk by entering into foreign currency forward exchange contracts, details of which are presented in the following table: September 29, December 30, Total cost of contracts for Japanese yen (in thousands) $ 1,955 $ 2,204 Number of contracts 2 2 Settlement month June 2019 June 2018 Although these hedges mitigate our foreign currency exchange rate exposure from an economic perspective, they were not designated as "effective" hedges for accounting purposes and as such are adjusted to fair value through Other expense, net , with a gain of approximately $0.1 million for the fiscal quarter ended September 29, 2018 and a gain of approximately $0.1 million for the fiscal quarter ended December 30, 2017 . We do not hold or issue derivative financial instruments for trading or speculative purposes. Concentration Risk Potential exposure to concentration risk may impact revenue, trade receivables, marketable securities, and supply of wafers for our products. Customer concentration risk may impact revenue. The percentage of total revenue attributable to our top five identified end customers and largest identified end customer is presented in the following table: Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Revenue attributable to top five end customers 20 % 23 % 17 % 28 % Revenue attributable to largest end customer 6 % 5 % 5 % 9 % No end customer accounted for more than 10% of total revenue during these periods. We did not have enough information to assign end customers to approximately $1.3 million and $13.7 million of revenue recognized for the third quarter and first nine months, respectively, of fiscal 2018 on shipments to distributors that have not sold through to end customers. Distributors have historically accounted for a significant portion of our total revenue. Revenue attributable to distributors as a percentage of total revenue is presented in the following table: Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Revenue attributable to distributors* 82 % 80 % 85 % 75 % * During the first quarter of 2018, we updated our channel categories to group all forms of distribution into a single channel. Prior periods have been reclassified to match the current period presentation. Our two largest distributor groups, Arrow Electronics, Inc. ("Arrow") and the Weikeng Group ("Weikeng"), also account for a substantial portion of our net trade receivables. At September 29, 2018 and December 30, 2017 , Arrow accounted for 46% and 66% , respectively, and Weikeng accounted for 31% and 0% , respectively, of net trade receivables. No other distributor group or end customer accounted for more than 10% of net trade receivables at these dates. Concentration of credit risk with respect to trade receivables is mitigated by our credit and collection process, including active management of collections, credit limits, routine credit evaluations for essentially all customers, and secure transactions with letters of credit or advance payments where appropriate. We regularly review our allowance for doubtful accounts and the aging of our accounts receivable. Accounts receivable do not bear interest and are shown net of allowances for doubtful accounts of $0.4 million and $9.4 million at September 29, 2018 and December 30, 2017 , respectively. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on assessment of known troubled accounts, analysis of the aging of our accounts receivable, historical experience, management judgment, and other currently available evidence. We write off accounts receivable against the allowance when we determine a balance is uncollectible and no longer actively pursue collection of the receivable. During the third quarter of fiscal 2018, we wrote off $9.0 million of accounts receivable from a bankrupt distributor group. We had recorded a full allowance on this amount in the third quarter of fiscal 2016, so there was no impact on Accounts Receivable, net in the current period. Bad debt expense was negligible for all periods presented. We place our investments primarily through one financial institution and mitigate the concentration of credit risk by limiting the maximum portion of the investment portfolio which may be invested in any one instrument. Our investment policy defines approved credit ratings for investment securities. Investments on-hand in marketable securities consisted primarily of money market instruments, “AA” or better corporate notes and bonds and commercial paper, and U.S. government agency obligations. See "Note 4 - Marketable Securities" for a discussion of the liquidity attributes of our marketable securities. We rely on a limited number of foundries for our wafer purchases, including Fujitsu Limited, Seiko Epson Corporation, Taiwan Semiconductor Manufacturing Company, Ltd, and United Microelectronics Corporation. We seek to mitigate the concentration of supply risk by establishing, maintaining and managing multiple foundry relationships; however, certain of our products are sourced from a single foundry and changing from one foundry to another can have a significant cost, among other factors. Property and Equipment Property and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method for financial reporting purposes over the estimated useful lives of the related assets, generally three to five years for equipment and software, one to three years for tooling, and thirty years for buildings and building space. Leasehold improvements are amortized over the shorter of the non-cancelable lease term or the estimated useful life of the assets. Upon disposal of property and equipment, the accounts are relieved of the costs and related accumulated depreciation and amortization, and resulting gains or losses are reflected in the Consolidated Statements of Operations for recognized gains and losses or in the Consolidated Balance Sheets for deferred gains and losses. Repair and maintenance costs are expensed as incurred. In August 2017, we sold building space which we owned in Shanghai, China for gross proceeds of approximately $7.9 million . The building space was vacated in fiscal 2015, upon consolidation of facilities to a single site in Shanghai following our acquisition of Silicon Image. As of the sale date, the building had a historical cost of $3.6 million , accumulated depreciation of $1.4 million and we incurred $1.1 million of direct selling costs, resulting in a net gain on sale of $4.6 million in the third quarter of fiscal 2017, which is presented as Gain on sale of building in our Consolidated Statements of Operations. Sales of Assets and Business Units On September 30, 2017, in conjunction with our June 2017 restructuring plan (see "Note 13 - Restructuring"), we sold 100% of the equity of our Hyderabad, India subsidiary and certain assets related to our Simplay Labs testing and certification business to an unrelated third party. The fair value of purchase price consideration was $5.3 million , which was comprised of $2.3 million of cash and a $3.0 million note receivable. In the third quarter of fiscal 2017, we recorded a $1.8 million loss on the sale, including a $2.2 million disposal of a relative fair value share of our goodwill, which is included in Other expense, net in the Consolidated Statements of Operations. Goodwill Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and intangible assets. Goodwill is not amortized, but instead is tested for impairment annually or more frequently if certain indicators of impairment are present. We do not expect goodwill impairment to be tax deductible for income tax purposes. In the second quarter of 2018, we made the strategic decision to discontinue our millimeter wave business. We determined that this action constituted a triggering event related to goodwill, and we evaluated our goodwill balance as of June 30, 2018. We concluded that goodwill was not impaired, and no impairment charges relating to goodwill were recorded for the first nine months of fiscal 2018 . See Notes 6, 7, 8 and 13 regarding charges and costs related to the discontinuation of our millimeter wave business . No impairment charges relating to goodwill were recorded for the first nine months of fiscal 2017 . During the third quarter and first nine months of fiscal 2018, there have been no changes to the Goodwill balance of $267.5 million presented in our Annual Report on Form 10-K for the fiscal year ended December 30, 2017 . Variable Interest Entities and Equity Investments in Privately Held Companies We have an interest in an entity that is a Variable Interest Entity ("VIE"). If we are the primary beneficiary of a VIE, we are required to consolidate it. To determine if we are the primary beneficiary, we evaluate whether we have the power to direct the activities that most significantly impact the VIE's economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our evaluation includes identification of significant activities and an assessment of our ability to direct those activities based on governance provisions and arrangements to provide or receive product and process technology, product supply, operations services, equity funding, financing, and other applicable agreements and circumstances. Our assessments of whether we are the primary beneficiary of our VIE requires significant assumptions and judgments. We have concluded that we are not the primary beneficiary of this VIE as we do not have the power to direct the activities that most significantly impact the VIE's economic performance. Our equity investments in privately held companies, considered VIE's, that we are not required to consolidate are accounted for under the cost method, as assessed under ASC 325-20, " Cost Method Investments ." These investments are reviewed on a quarterly basis to determine if their values have been impaired and adjustments are recorded as necessary. We assess the potential impairment of these investments by applying a fair value analysis using a revenue multiple approach. Declines in value that are judged to be other-than-temporary are reported in Other expense, net in the accompanying Consolidated Statements of Operations with a commensurate decrease in the carrying value of the investment (see "Note 9 - Cost Method Investment and Collaborative Arrangement"). Upon disposition of these investments, the specific identification method is used to determine the cost basis in computing realized gains or losses. New Accounting Pronouncements Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires the recognition of assets and liabilities arising from lease transactions on the balance sheet and will also require significant additional disclosures about the amount, timing, and uncertainty of cash flows from leases. Substantially all leases, including current operating leases, will be recognized by lessees on their balance sheet as a lease asset for its right to use the underlying asset and a lease liability for the corresponding lease obligation. For public business entities, the standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all entities. ASU 2016-02 initially required entities to adopt the standard using a modified retrospective transition method. In July 2018, the FASB issued certain updates including ASU 2018-11, Leases (Topic 842) Targeted Improvements , which provide transition practical expedients allowing companies to adopt the new standard with a cumulative effect adjustment as of the beginning of the year of adoption with prior year comparative financial information and disclosures remaining as previously reported. We are currently evaluating the optional transition practical expedients, as well as the impact of the new guidance on our consolidated financial statements and related disclosures, including the increase in the assets and liabilities on our balance sheet, and the impact on our current lease portfolio from both a lessor and lessee perspective. To facilitate this, we are utilizing a comprehensive approach to review our lease portfolio, as well as assessing system requirements and control implications. We believe that we have sufficient time and resources to complete our implementation efforts no later than the first quarter of fiscal 2019. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and simplifies the application of the hedge accounting guidance. This standard is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. We are currently evaluating the impact of ASU 2017-12 on our consolidated financial statements and related disclosures. In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The new guidance allows an entity to reclassify the income tax effects of the Public Law 115-97 "An Act to Provide Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018", commonly known as the Tax Cuts and Job Act of 2017 (the "2017 Tax Act") on items within accumulated other comprehensive income/(loss) to retained earnings. This new guidance is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The new standard must be adopted retrospectively to each period in which a taxpayer recognizes the effect of the change in the U.S. federal corporate income tax rate from the 2017 Tax Act. We are currently assessing the impact of ASU 2018-02 on our consolidated financial statements and related disclosures. In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting , which largely aligns the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees. The ASU also clarifies that any share-based payment issued to a customer should be evaluated under ASC 606, Revenue from Contracts with Customers . The ASU requires a modified retrospective transition approach. This new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. We do not expect the adoption of this accounting standard update to have a material impact on our consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) , which clarifies the accounting for implementation costs in cloud computing arrangements. This guidance is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. We are currently assessing the impact of ASU 2018-15 on our consolidated financial statements and related disclosures. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers We adopted ASC 606 effective on December 31, 2017, the first day of our 2018 fiscal year, using the modified retrospective method. Under the guidance in effect prior to the adoption of ASC 606, we deferred the recognition of revenue and the cost of revenue from certain sales until the distributors of our products reported that they had sold the products to their customers (known as “sell-through” revenue recognition). Under ASC 606, we recognize revenue on sales to all distributors upon shipment and transfer of control. Under ASC 606, we will also recognize certain licensing revenues that were not recognizable under previous GAAP due to the fixed and determinable revenue recognition criteria not being met. As a result of this adoption, we revised our accounting policy for revenue recognition as detailed below. We recognize revenue under the core principle of depicting the transfer of control to our customers in an amount reflecting the consideration we expect to be entitled. In order to achieve that core principle, we apply the following five step approach, as further described below: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to each performance obligation in the contract, and (5) recognize revenue when applicable performance obligations are satisfied. Product Revenue Identify the contract with a customer - Our product revenues consist of sales to original equipment manufacturers, or OEMs, and distributors. We consider customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. In certain cases we consider firm forecasts that are agreed to by both us and the customer to be contracts. For sales to distributors, we have concluded that our contracts are with the distributor, rather than with the distributor’s end customer, as we hold a contract bearing enforceable rights and obligations only with the distributor. As part of our consideration of the contract, we evaluate certain factors including the customer’s ability to pay (or credit risk). Identify the performance obligations in the contract - For each contract, we consider our promise to transfer each distinct product to be the identified performance obligations. Determine the transaction price - In determining the transaction price, we evaluate whether the set contract price is subject to refund or adjustment to determine the net consideration to which we expect to be entitled. As our standard payment terms are less than one year, we have elected to apply the practical expedient to not assess whether a contract has a significant financing component. Sales to most distributors are made under terms allowing certain price adjustments and limited rights of return of our products held in their inventory or upon sale to their end customers. Revenue from sales to distributors is recognized upon the transfer of control to the distributor, which generally occurs upon shipment of product to the distributor. Frequently, distributors need to sell at a price lower than the standard distribution price in order to win business. At the time the distributor invoices its customer or soon thereafter, the distributor submits a “ship and debit” price adjustment claim to us to adjust the distributor’s cost from the standard price to the pre-approved lower price. After we verify that the claim was pre-approved, we issue a credit memo to the distributor for the ship and debit claim. In determining the transaction price, we consider ship and debit price adjustments to be variable consideration. Such price adjustments are estimated using the expected value method based on an analysis of historical ship and debit claims, at the distributor and product level, over a period of time considered adequate to account for current pricing and business trends. Any differences between the estimated consideration and the actual amount received from the customer is recorded in the period that the actual consideration becomes known. Most of our distributors are entitled to limited rights of return, referred to as stock rotation, not to exceed 5% of billings, net of returns and ship and debit price adjustments. Stock rotation reserves are based on historical return rates and recorded as a reduction to revenue with a corresponding reduction to cost of goods sold for the estimated cost of inventory that we expect to be returned. Sales to OEMs and certain distributors are made under terms that do not include rights of return or price concessions after we ship the product. Accordingly, the transaction price equals the invoice price and there is no variable consideration. Allocate the transaction price to each performance obligation in the contract - Because our product revenue contracts generally include the delivery of a certain quantity of semiconductors as the single performance obligation, we do not allocate revenue across distinct performance obligations. However, we frequently receive orders for products to be delivered over multiple dates that may extend across several reporting periods. We invoice for each delivery upon shipment and recognize revenues for each distinct product delivered, assuming transfer of control has occurred. Payment term for invoices are generally 30 to 60 days. Recognize revenue when applicable performance obligations are satisfied - Revenue is recognized when control of the product is transferred to the customer (i.e., when our performance obligation is satisfied), which typically occurs at shipment. In determining whether control has transferred, we also consider if there is a present right to payment and legal title, along with whether the risks and rewards of ownership have transferred to the customer. We have certain vendor-managed inventory arrangements with certain OEM customers whereby we ship product into an inventory hub location but for which control does not transfer until the customer consumes the inventory. In such cases, we recognize revenue upon customer consumption. Licensing and Services Revenue Identify the contract with a customer - Our licensing and services revenue is comprised of revenue from our intellectual property ("IP") core licensing activity, patent monetization activities, and royalty and adopter fee revenue from our standards activities. These activities are complementary to our product sales and help us monetize our IP and accelerate marketing adoption curves associated with our technology and standards. We consider licensing arrangements with our customers to be the contract. Identify the performance obligations in the contract - For each contract, we consider the promise to deliver a license that grants the customer the right to use the IP, as well as any professional services provided under the contract, as distinct performance obligations. Determine the transaction price - Our HDMI and MHL standards revenue, as well as certain IP licenses, include variable consideration in the form of usage-based royalties. We apply the provisions of ASC 606 in accounting for these types of arrangements, whereby we do not include estimated royalties in the transaction price at the origination of the contract but rather recognize royalty revenue as usage occurs. HDMI royalty revenue is determined by a contractual allocation formula agreed to by the Founders of the HDMI consortium. The contractual allocation formula is subject to periodic adjustment, generally every three years. The most recent royalty sharing formula covered the period from January 1, 2014 through December 31, 2016, and an interim agreement covering the period from January 1, 2017 through December 31, 2017 was signed in the second quarter of fiscal 2018. However, a new agreement covering the period beginning January 1, 2018 is yet to be signed. While a new royalty sharing agreement is being negotiated with the other Founders of the HDMI consortium, the HDMI agent is unable to distribute the majority of the royalties collected to the Founders. We are recording revenue based on our estimated share of the royalties, which we determine using an analytical model that combines historical and forecasted collection trends with our expected share of those collections. This estimate will be adjusted once the Founders finalize the agreement for the period beginning January 1, 2018. Allocate the transaction price to each performance obligation in the contract - For contracts that include multiple performance obligations (most commonly those that include licenses and professional services), we allocate revenue to each performance obligation based on the best estimate of the standalone selling price of each obligation. We do not believe that the judgments regarding the allocation of revenue on licensing arrangements are material to our financial statements. Recognize revenue when applicable performance obligations are satisfied - We recognize license revenue at the point in time that control of the license transfers to the customer, which is generally upon delivery. We recognize professional service revenue as we perform the services. Royalty revenues are recognized as customers sell products that include our IP and are legally obligated to remit royalties to us. We receive payments from customers based on contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Payment terms on invoiced amounts are typically 30 days. Impact on Financial Statements We adopted ASC 606 on December 31, 2017 using the modified retrospective method. Under this transition method, we applied the provisions of the new standard to all open customer contracts as of the date of adoption and recorded the cumulative effect of adoption to Accumulated deficit on December 31, 2017. We have not restated any prior financial statements presented. ASC 606 requires us to disclose the effect of adoption on each financial statement line item in the current reporting period during 2018 as compared to the guidance that was in effect in 2017, and an explanation of the reasons for significant changes. Such information is as follows: Condensed Consolidated Statement of Operations Three months ended September 29, 2018 Nine months ended September 29, 2018 (In thousands, except per share data) As reported under new standard Adjustments Pro forma as if previous standard was in effect As reported under new standard Adjustments Pro forma as if previous standard was in effect Product revenue 97,932 (1,302 ) 96,630 291,335 (13,651 ) 277,684 Licensing and services revenue 3,552 (1,525 ) 2,027 11,487 1,662 13,149 Cost of product revenue 43,120 144 43,264 137,430 (5,400 ) 132,030 Net income (loss) 6,974 (2,971 ) 4,003 (19,201 ) (6,589 ) (25,790 ) Net income (loss) per share, basic and diluted 0.05 (0.02 ) 0.03 (0.15 ) (0.06 ) (0.21 ) Condensed Consolidated Balance Sheets As of September 29, 2018 (In thousands) As reported under new standard Adjustments Pro forma as if previous standard was in effect Accounts receivable, net of allowance for doubtful accounts 75,648 7,091 82,739 Inventories 66,381 25 66,406 Prepaid expenses and other current assets 24,143 (6,568 ) 17,575 Total assets 632,327 548 632,875 Accounts payable and accrued expenses (includes restructuring) 46,929 (887 ) 46,042 Deferred income and allowances on sales to distributors — 35,425 35,425 Accumulated deficit (469,662 ) (33,990 ) (503,652 ) Total liabilities and stockholders' equity 632,327 548 632,875 Condensed Consolidated Statement of Cash Flows Nine months ended September 29, 2018 (In thousands) As reported under new standard Adjustments Pro forma as if previous standard was in effect Cash flows from operating activities: Net loss (19,201 ) (6,589 ) (25,790 ) Accounts receivable, net (18,736 ) (8,899 ) (27,635 ) Inventories 13,892 (395 ) 13,497 Prepaid expenses and other assets (11,729 ) (947 ) (12,676 ) Accounts payable and accrued expenses (includes restructuring) 1,661 (1,345 ) 316 Deferred income and allowances on sales to distributors — 18,175 18,175 The significant impacts of the new standard were to accelerate the recognition of revenues on both sales to certain distributors and certain licensing activities. As a result of adopting this standard, we recorded a cumulative effect adjustment of $27.4 million as a reduction to Accumulated deficit on December 31, 2017, resulting primarily from a net $20.2 million of previously deferred distributor revenues and costs and $6.6 million of previously unrecognized licensing revenues. Other matters We generally provide an assurance warranty that our products will substantially conform to the published specifications for twelve months from the date of shipment. In some case the warranty period may be longer than twelve months. We do not separately price or sell the assurance warranty. Our liability is limited to either a credit equal to the purchase price or replacement of the defective part. Returns under warranty have historically been immaterial. As such, we do not record a specific warranty reserve or consider activities related to such warranty, if any, to be a separate performance obligation. Under the practical expedient provided by ASC 340, we generally expense sales commissions when incurred because the amortization period would have been less than one year. We record these costs within Selling, general and administrative expenses. Substantially all of our performance obligations are satisfied within twelve months. Accordingly, under the optional exemption provided by ASC 606, we do not disclose revenues allocated to future performance obligations of partially completed contracts. We do not have any material contract liabilities recorded as of September 29, 2018 . Contract assets relate to our rights to consideration for licenses and royalties due to us as a member of the HDMI consortium, with collection dependent on events other than the passage of time, such as collection of licenses and royalties from customers by the HDMI licensing agent and the finalization of a new royalty sharing agreement. The contract assets are recorded in Prepaid expenses and other current assets in our Consolidated Balance Sheets, and they are transferred to Accounts receivable when the rights become unconditional. In addition to collections related to current year revenue, we received $6.4 million in cash during the second quarter of fiscal 2018 for fiscal 2017 HDMI royalties as a result of the signing of the HDMI Founders royalty sharing agreement for 2017. Collection of this amount had no impact on our reported revenues as it had been accrued to our cumulative effect adjustment, and it was recorded as a reduction to the contract asset during the quarter received. The following table summarizes the activity for our contract assets during the first nine months of fiscal 2018: (In thousands) Balance as of December 31, 2017 $ 7,515 Revenues recorded during the period 7,338 Transferred to accounts receivable or collected (8,848 ) Balance as of September 29, 2018 $ 6,005 Disaggregation of revenue The following tables provide information about revenue from contracts with customers disaggregated by major class of revenue and by geographical market, based on ship-to location of the end customer, where available, and ship-to location of distributor otherwise: Major Class of Revenue Three Months Ended Nine Months Ended (In thousands) September 29, September 30, September 29, September 30, Product revenue - Distributors 82,969 73,273 257,716 218,923 Product revenue - Direct 14,963 14,096 33,619 44,283 Licensing and services revenue 3,552 4,602 11,487 27,489 Total revenue 101,484 91,971 302,822 290,695 Revenue by Geographical Market Three Months Ended Nine Months Ended (In thousands) September 29, September 30, September 29, September 30, Asia 76,927 68,677 226,747 207,081 Europe 11,873 10,972 36,177 32,631 Americas 12,684 12,322 39,898 50,983 Total revenue 101,484 91,971 302,822 290,695 * As noted above, prior period amounts have not been adjusted under the modified retrospective method of adopting ASC 606 and, therefore, are presented under GAAP in effect during that period. |
Net Income (Loss) per Share
Net Income (Loss) per Share | 9 Months Ended |
Sep. 29, 2018 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share | Net Income (Loss) per Share We compute basic Net income (loss) per share by dividing net income (loss) by the weighted average number of common shares outstanding during the period. To determine diluted share count, we apply the treasury stock method to determine the dilutive effect of outstanding stock option shares, restricted stock units ("RSUs"), and Employee Stock Purchase Plan ("ESPP") shares. Our application of the treasury stock method includes, as assumed proceeds, the average unamortized stock-based compensation expense for the period. When we are in a net loss position, we do not include dilutive securities as their inclusion would reduce the net loss per share. A summary of basic and diluted Net income (loss) per share is presented in the following table: Three Months Ended Nine Months Ended (in thousands, except per share data) September 29, September 30, September 29, September 30, Net income (loss) $ 6,974 $ (43,052 ) $ (19,201 ) $ (63,349 ) Shares used in basic Net income (loss) per share 127,816 122,990 125,578 122,393 Dilutive effect of stock options, RSUs and ESPP shares 1,658 — — — Shares used in diluted Net income (loss) per share 129,474 122,990 125,578 122,393 Basic Net income (loss) per share $ 0.05 $ (0.35 ) $ (0.15 ) $ (0.52 ) Diluted Net income (loss) per share $ 0.05 $ (0.35 ) $ (0.15 ) $ (0.52 ) The computation of diluted Net income (loss) per share excludes the effects of stock options, RSUs, and ESPP shares that are antidilutive, aggregating approximately the following number of shares: Three Months Ended Nine Months Ended (in thousands) September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Stock options, RSUs, and ESPP shares excluded as they are antidilutive 2,299 7,221 8,284 6,018 Stock options, RSUs, and ESPP shares are considered antidilutive when the aggregate of exercise price and unrecognized stock-based compensation expense are greater than the average market price for our common stock during the period or when we are in a net loss position, as the effects would reduce the loss per share. Stock options, RSUs, and ESPP shares that are antidilutive at September 29, 2018 could become dilutive in the future. |
Marketable Securities
Marketable Securities | 9 Months Ended |
Sep. 29, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities We classify our marketable securities as short-term based on their nature and availability for use in current operations. In the periods presented, our Short-term marketable securities consisted of government bonds with contractual maturities of up to two years. The following table summarizes the remaining maturities of our Short-term marketable securities at fair value: (In thousands) September 29, December 30, Short-term marketable securities: Maturing within one year $ 7,435 $ 4,982 Maturing between one and two years 2,165 — Total marketable securities $ 9,600 $ 4,982 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value measurements as of Fair value measurements as of September 29, 2018 December 30, 2017 (In thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Short-term marketable securities $ 9,600 $ 9,600 $ — $ — $ 4,982 $ 4,982 $ — $ — Foreign currency forward exchange contracts, net 105 — 105 — 77 — 77 — Total fair value of financial instruments $ 9,705 $ 9,600 $ 105 $ — $ 5,059 $ 4,982 $ 77 $ — We invest in various financial instruments that may include corporate and government bonds and notes, commercial paper, and certificates of deposit. In addition, we enter into foreign currency forward exchange contracts to mitigate our foreign currency exchange rate exposure. We carry these instruments at their fair value in accordance with ASC 820, " Fair Value Measurements ." The framework under the provisions of ASC 820 establishes three levels of inputs that may be used to measure fair value. Each level of input has different levels of subjectivity and difficulty involved in determining fair value, as summarized in "Note 1 - Basis of Presentation and Significant Accounting Policies." There were no transfers between any of the levels during the first nine months of fiscal 2018 or 2017 . In accordance with ASC 320, “ Investments-Debt and Equity Securities ,” we recorded an unrealized gain of less than $0.1 million during the nine months ended September 29, 2018 and an unrealized loss of approximately $0.1 million during the nine months ended September 30, 2017 on certain Short-term marketable securities (Level 1 instruments), which have been recorded in Accumulated other comprehensive loss . Future fluctuations in fair value related to these instruments that we deem to be temporary, including any recoveries of previous write-downs, would be recorded to Accumulated other comprehensive loss . If we were to determine in the future that any further decline in fair value is other-than-temporary, we would record an impairment charge, which could have a material adverse effect on our operating results. If we were to liquidate our position in these securities, it is likely that the amount of any future realized gain or loss would be different from the unrealized gain or loss reported in Accumulated other comprehensive loss . |
Discontinuation of Business Uni
Discontinuation of Business Unit | 9 Months Ended |
Sep. 29, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinuation of Business Unit | Discontinuation of Business Unit In the second quarter of 2018, we made the strategic decision to discontinue our millimeter wave business, which included certain assets related to our Wireless products, and our Board of Directors approved a related internal restructuring plan. This action was designed to improve profitability, reduce our infrastructure costs, and refocus on our core business activities. Approximately $24.0 million of total expense was recorded in our Consolidated Statements of Operations through the first nine months of fiscal 2018, including $11.9 million charged to Impairment of acquired intangible assets, $8.0 million charged to Cost of product revenue for inventory reserves, and $4.1 million charged to Restructuring charges for severance and other personnel costs, and for other asset restructuring. Notes 7, 8 and 13 provide further details on these charges and costs. |
Inventories
Inventories | 9 Months Ended |
Sep. 29, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (In thousands) September 29, December 30, Work in progress $ 47,122 $ 49,642 Finished goods 19,259 30,261 Total inventories $ 66,381 $ 79,903 In the second quarter of 2018, we made the strategic decision to discontinue our millimeter wave business, which included certain wireless technology inventory items. As such, specific inventory reserves of $8.3 million were taken in that quarter on product lines that were eliminated with the discontinuation of our millimeter wave business and were charged to Cost of product revenue in the Consolidated Statements of Operations. In the third quarter of 2018, an adjustment of approximately $0.3 million was credited to Cost of product revenue, for a net charge of $8.0 million in the first nine months of fiscal 2018. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets In connection with our acquisitions of Silicon Image, Inc. in March 2015 and SiliconBlue Technologies, Inc. in December 2011 , we recorded identifiable intangible assets related to developed technology, customer relationships, licensed technology, patents, and in-process research and development based on guidance for determining fair value under the provisions of ASC 820, " Fair Value Measurements ." Additionally, during fiscal 2015, we licensed additional third-party technology. We monitor the carrying value of our intangible assets for potential impairment and test the recoverability of such assets whenever triggering events or changes in circumstances indicate that their carrying amounts may not be recoverable. When we are required to determine the fair value of intangible assets other than goodwill, we use the income approach. We start with a forecast of all expected net cash flows associated with the asset and then apply a discount rate to arrive at fair value. During our review of our strategic long-range plan completed at the end of the third quarter of fiscal 2018, we concluded that a certain product line had limited future revenue potential due to a decline in customer demand for that product. We determined that this conclusion constituted an impairment indicator to the related specific developed technology intangible asset acquired in our acquisition of Silicon Image. Our assessment of the fair value of this intangible asset concluded that it had been fully impaired as of September 29, 2018, and we recorded an impairment charge of $0.6 million in the Consolidated Statements of Operations. In the second quarter of 2018, we made the strategic decision to discontinue our millimeter wave business, which included certain wireless technology intangible assets. We determined that this action constituted an impairment indicator related to certain of the developed technology intangible assets acquired in our acquisition of Silicon Image. Our assessment of the fair value of these intangible assets concluded that they had been fully impaired as of June 30, 2018, and we recorded an impairment charge of $11.9 million in the Consolidated Statements of Operations. In the third quarter of 2017, we updated our annual strategic long-range plan, which resulted in revised forecasts, and we also sold 100% of the equity of our Hyderabad, India subsidiary and certain assets related to our Simplay Labs testing and certification business to an unrelated third party. We determined that these activities constituted impairment indicators related to the developed technology intangible assets acquired in our acquisition of Silicon Image. Our assessment of the fair value of these intangible assets concluded that they had been impaired as of September 30, 2017, and we recorded a preliminary impairment charge of $36.2 million in the Consolidated Statements of Operations. The impairment charge recorded in the third quarter of 2017 was based on our best valuation estimate as of that period, and was revised during the fourth quarter of 2017 upon completion of a more detailed analysis of the fair value of these intangible assets. In the first quarter of fiscal 2017, we sold a portfolio of patents that had been acquired in our acquisition of Silicon Image for $18.0 million . This amount was received in two installments over the first and second quarters of fiscal 2017, and was recognized as Licensing and services revenue in our Consolidated Statements of Operations during the respective periods in which the installment payments were received. As a result of this transaction, Intangible assets, net was reduced by approximately $3.5 million on our Consolidated Balance Sheets . On our Consolidated Balance Sheets at September 29, 2018 and December 30, 2017 , Intangible assets, net are shown net of accumulated amortization of $98.9 million and $100.3 million , respectively. We recorded amortization expense related to intangible assets on the Consolidated Statements of Operations as presented in the following table: Three Months Ended Nine Months Ended (In thousands) September 29, September 30, September 29, September 30, Research and development $ 14 $ 128 $ 264 $ 442 Amortization of acquired intangible assets 3,823 8,526 13,982 25,777 $ 3,837 $ 8,654 $ 14,246 $ 26,219 |
Cost Method Investment and Coll
Cost Method Investment and Collaborative Arrangement | 9 Months Ended |
Sep. 29, 2018 | |
Investments, All Other Investments [Abstract] | |
Cost Method Investment | Cost Method Investment and Collaborative Arrangement During fiscal 2015 , we purchased a series of preferred stock ownership interests in a privately-held company that designs human-computer interaction technology for total consideration of $5.0 million . This gross investment constituted a 22.7% ownership interest. In the third quarter of fiscal 2016 , we made an additional investment of $1.0 million via a convertible debt instrument, bringing our gross investment in the investee to $6.0 million . In 2017, we signed new development and licensing contracts with the investee, and the investee incurred preferred debt that effectively subordinates our ownership position between their debt and common shareholders. After evaluating these events and our investment position, we concluded that we have a variable interest in the privately-held company. However, we are not the primary beneficiary of the investee, are not holding in-substance common stock, and do not have a significant amount of influence to direct the activities that most significantly impact the investee’s economic performance. Accordingly, we account for our investment in this company under the cost method. We assessed this investment for impairment as of September 29, 2018 by applying a fair value analysis using a revenue multiple approach and concluded that a $0.3 million impairment adjustment was necessary during the third quarter of fiscal 2018, which is the only impairment adjustment in the first nine months of fiscal 2018. For the third quarter and first nine months of fiscal 2017, we recorded impairment adjustments of approximately $0.2 million and $0.7 million , respectively. These impairment adjustments of a cost method investment are included in Other expense, net on our Consolidated Statements of Operations. Through September 29, 2018 , we have reduced the value of our investment by approximately $4.0 million . The net balance of our investment included in Other long-term assets in the Consolidated Balance Sheets is approximately $2.0 million . At September 29, 2018 , our maximum exposure to loss as a result of involvement with this VIE totals $5.3 million , which is comprised of the $2.0 million carrying value of our investment plus $3.3 million of prepaid royalties further described in the section below on the related collaborative arrangement. Collaborative Arrangement Concurrent with the initiation of the investment discussed above, we entered into a collaborative arrangement with the investee during fiscal 2015. Under this arrangement, the parties undertook the development of certain fast, multi-touch sensing devices for touch screen controller applications. This arrangement was modified in 2017, and we entered into new service and licensing agreements that provided for: (i) the assignment of certain Intellectual Property ("IP") from the investee to us, (ii) a license of certain IP from the investee to us, (iii) payment of royalties between the parties for future sales of co-developed products, (iv) the performance of certain services for each other at no additional charge. We have agreed to make quarterly minimum payments to the investee, which will be automatically credited against any future revenue share amount owed to investee under the agreements and will be accounted for as prepaid royalties under ASC 340. In each of the first three quarters of fiscal 2018, we made quarterly payments of $0.9 million . As of September 29, 2018, expected future royalty prepayments are as follows: Fiscal year (in thousands) 2018 (remaining 3 months) $ 875 2019 $ 5,000 At September, 2018, royalties prepaid to the investee total $3.3 million , which is included in Other long-term assets in our Consolidated Balance Sheets. We have not recorded a liability related to the future payments, as the agreement is cancelable. |
Collaborative Arrangement | Cost Method Investment and Collaborative Arrangement During fiscal 2015 , we purchased a series of preferred stock ownership interests in a privately-held company that designs human-computer interaction technology for total consideration of $5.0 million . This gross investment constituted a 22.7% ownership interest. In the third quarter of fiscal 2016 , we made an additional investment of $1.0 million via a convertible debt instrument, bringing our gross investment in the investee to $6.0 million . In 2017, we signed new development and licensing contracts with the investee, and the investee incurred preferred debt that effectively subordinates our ownership position between their debt and common shareholders. After evaluating these events and our investment position, we concluded that we have a variable interest in the privately-held company. However, we are not the primary beneficiary of the investee, are not holding in-substance common stock, and do not have a significant amount of influence to direct the activities that most significantly impact the investee’s economic performance. Accordingly, we account for our investment in this company under the cost method. We assessed this investment for impairment as of September 29, 2018 by applying a fair value analysis using a revenue multiple approach and concluded that a $0.3 million impairment adjustment was necessary during the third quarter of fiscal 2018, which is the only impairment adjustment in the first nine months of fiscal 2018. For the third quarter and first nine months of fiscal 2017, we recorded impairment adjustments of approximately $0.2 million and $0.7 million , respectively. These impairment adjustments of a cost method investment are included in Other expense, net on our Consolidated Statements of Operations. Through September 29, 2018 , we have reduced the value of our investment by approximately $4.0 million . The net balance of our investment included in Other long-term assets in the Consolidated Balance Sheets is approximately $2.0 million . At September 29, 2018 , our maximum exposure to loss as a result of involvement with this VIE totals $5.3 million , which is comprised of the $2.0 million carrying value of our investment plus $3.3 million of prepaid royalties further described in the section below on the related collaborative arrangement. Collaborative Arrangement Concurrent with the initiation of the investment discussed above, we entered into a collaborative arrangement with the investee during fiscal 2015. Under this arrangement, the parties undertook the development of certain fast, multi-touch sensing devices for touch screen controller applications. This arrangement was modified in 2017, and we entered into new service and licensing agreements that provided for: (i) the assignment of certain Intellectual Property ("IP") from the investee to us, (ii) a license of certain IP from the investee to us, (iii) payment of royalties between the parties for future sales of co-developed products, (iv) the performance of certain services for each other at no additional charge. We have agreed to make quarterly minimum payments to the investee, which will be automatically credited against any future revenue share amount owed to investee under the agreements and will be accounted for as prepaid royalties under ASC 340. In each of the first three quarters of fiscal 2018, we made quarterly payments of $0.9 million . As of September 29, 2018, expected future royalty prepayments are as follows: Fiscal year (in thousands) 2018 (remaining 3 months) $ 875 2019 $ 5,000 At September, 2018, royalties prepaid to the investee total $3.3 million , which is included in Other long-term assets in our Consolidated Balance Sheets. We have not recorded a liability related to the future payments, as the agreement is cancelable. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 9 Months Ended |
Sep. 29, 2018 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Included in Accounts payable and accrued expenses are the following balances: (In thousands) September 29, December 30, Trade accounts payable $ 26,150 $ 35,350 Liability for non-cancelable contracts 7,471 7,232 Deferred rent 3,809 3,834 Other accrued expenses (includes restructuring) 9,499 7,989 Total accounts payable and accrued expenses $ 46,929 $ 54,405 |
Changes in Stockholders' Equity
Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 29, 2018 | |
Stockholders' Equity Note [Abstract] | |
Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss | Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss Common Stock ($.01 par value) Additional Paid-in capital Accumulated deficit Accumulated other comprehensive loss Total (In thousands, except par value data) Shares Amount Balances, December 30, 2017 123,895 $ 1,239 $ 695,768 $ (477,862 ) $ (1,452 ) $ 217,693 Net loss for the nine months ended September 29, 2018 — — — (19,201 ) — (19,201 ) Unrealized gain related to marketable securities, net of tax — — — — 16 16 Recognized gain on redemption of marketable securities, previously unrealized — — — — (18 ) (18 ) Translation adjustments, net of tax — — — — (1,124 ) (1,124 ) Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax 5,380 54 26,397 — — 26,451 Stock-based compensation related to stock options, ESPP and RSUs — — 9,908 — — 9,908 Accounting method transition adjustment (1) — — — 27,401 — 27,401 Balances, September 29, 2018 129,275 $ 1,293 $ 732,073 $ (469,662 ) $ (2,578 ) $ 261,126 (1) As of the beginning of fiscal 2018, we adopted ASC 606, Revenue from Contracts With Customers, using the modified retrospective transition method. As a result of this adoption, we recorded a cumulative-effect adjustment to Accumulated Deficit, as shown in the table above. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended September 29, 2018 , we recorded an income tax expense of less than $0.1 million , and for the three months ended September 30, 2017 , we recorded an income tax benefit of approximately $0.3 million . For the nine months ended September 29, 2018 and September 30, 2017 , we recorded an income tax expense of approximately $2.0 million and $0.2 million , respectively. Income taxes for the three and nine month periods ended September 29, 2018 and September 30, 2017 represent tax at the federal, state, and foreign statutory tax rates adjusted for withholding taxes, changes in uncertain tax positions, changes in the U.S. valuation allowance, as well as other non-deductible items in the United States and foreign jurisdictions. The difference between the U.S. federal statutory tax rate of 21% and our effective tax rate for the three and nine months ended September 29, 2018 results from (a) an increase in the valuation allowance that offsets expected tax benefit in the United States, (b) foreign rate differential and withholding taxes, (c) zero tax rate in Bermuda (which results in no tax benefit for the pretax loss in Bermuda), and (d) a discrete benefit from the release of uncertain tax positions. Through September 29, 2018 , we continued to evaluate the valuation allowance position in the United States and concluded we should maintain a valuation allowance against the net federal and state deferred tax assets. We will continue to evaluate both positive and negative evidence in future periods to determine if we should recognize more deferred tax assets. We don't have a valuation allowance in any foreign jurisdictions as we have concluded it is more likely than not that we will realize the net deferred tax assets in future periods. We are subject to federal and state income tax as well as income tax in the various foreign jurisdictions in which we operate. Additionally, the years that remain subject to examination are 2015 for federal income taxes, 2013 for state income taxes, and 2011 for foreign income taxes, including years ending thereafter. However, to the extent allowed by law, the tax authorities may have the right to examine prior periods where net operating losses or tax credits were generated and carried forward, and make adjustments up to the amount of the net operating losses or credit carryforward amount. Our income tax returns are under examination in China for 2016 through 2018 , and in the Philippines for 2016. We believe that it is reasonably possible that $1.6 million of unrecognized tax benefits and $0.1 million of associated interest and penalties could be recognized during the next twelve months. The $1.7 million potential change would represent a decrease in unrecognized tax benefits, comprised of items related to tax filings for years that will no longer be subject to examination under expiring statutes of limitations. At December 30, 2017, we had U.S. federal net operating loss ("NOL") carryforwards (pretax) of approximately $351.4 million that expire at various dates between 2018 and 2037 . We had state NOL carryforwards (pretax) of approximately $162.9 million that expire at various dates from 2018 through 2037 . We also had federal and state credit carryforwards of $50.2 million and $59.2 million , respectively. Of the total $59.2 million state credit carryforwards, $57.9 million do not expire. The remaining credits expire at various dates from 2018 through 2037 . Our liability for uncertain tax positions (including penalties and interest) was $26.4 million and $26.9 million at September 29, 2018 and December 30, 2017 , respectively, and is recorded as a component of Other long-term liabilities on our Consolidated Balance Sheets . The remainder of our uncertain tax position exposure of $25.9 million is netted against deferred tax assets. The Tax Cuts and Jobs Act (the "2017 Tax Act"), enacted December 22, 2017, contains provisions that affect us, but the impact will be absorbed by utilizing NOL carryforwards. Reduction of the corporate tax rate from 35% to 21% reduced the value of our domestic deferred tax assets and reduced our associated full valuation allowance on those assets, resulting in no net impact on our Consolidated Statements of Operation. U.S. tax reform required a deemed repatriation of deferred foreign earnings as of December 30, 2017 and no future U.S. taxes should be due on these earnings because of enactment of a 100% dividends received deduction. At December 30, 2017 , we had no impact from this transition tax due to utilization of NOL carryforwards. Foreign earnings may be subject to withholding taxes if they are distributed and repatriated in the United States. In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 ("SAB 118"). The SEC issued SAB 118 on December 22, 2017 to address the situation where an SEC reporting company did not have all the necessary information available or analyzed to complete their accounting for the income tax effects of the 2017 Tax Act in the period of enactment. Due to the lack of authoritative guidance issued, complexity, and enactment timing of the 2017 Tax Act, we made a reasonable estimate of the income tax effect of the deemed repatriation of deferred foreign earnings. We may refine this as additional guidance, clarification, and analysis is available. Any changes to our estimate will be reflected in continuing operations in the period the amounts are determined and within the “measurement period” not-to-exceed one year allowed under SAB 118. As of September 29, 2018 , we have not completed our accounting for the tax effect of the 2017 Tax Act, and we have made no change to the provisional amounts recorded at December 30, 2017 . We are not currently paying U.S. federal income taxes and do not expect to pay such taxes until we fully utilize our tax NOL and credit carryforwards. We expect to pay a nominal amount of state income tax. We are paying foreign income and withholding taxes, which are reflected in Income tax expense (benefit) in our Consolidated Statements of Operations and are primarily related to the cost of operating offshore activities and subsidiaries. We accrue interest and penalties related to uncertain tax positions in Income tax expense (benefit). |
Restructuring
Restructuring | 9 Months Ended |
Sep. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In June 2018, our Board of Directors approved an internal restructuring plan (the "June 2018 Plan"), which included the discontinuation of our millimeter wave business and the use of certain assets related to our Wireless products, and a workforce reduction. The June 2018 Plan is designed to reduce our infrastructure costs and refocus on our core business activities. Approximately $4.1 million of restructuring expense has been incurred through September 29, 2018 under the June 2018 Plan, and we believe this amount approximates the total costs under the plan and that this plan is substantially complete. In June 2017, our Board of Directors approved an internal restructuring plan (the "June 2017 Plan"), which included the sale of 100% of the equity of our Hyderabad, India subsidiary and certain assets related to our Simplay Labs testing and certification business, a worldwide workforce reduction, and an initiative to reduce our infrastructure costs. These actions are part of an overall plan to achieve financial targets and to enhance our financial and competitive position by better aligning our revenue and operating expenses. Under this plan, approximately $0.1 million and $3.1 million of expense was incurred during the three months ended September 29, 2018 and September 30, 2017 , respectively, and approximately $1.4 million and $5.5 million of expense was incurred during the nine months ended September 29, 2018 and September 30, 2017 , respectively. Approximately $9.4 million of total expense has been incurred through September 29, 2018 under the June 2017 Plan. We expect the total cost to be approximately $21.5 million to $23.0 million and that it will be substantially completed by the end of the first quarter of fiscal 2019. In September 2015, we implemented a reduction of our worldwide workforce (the "September 2015 Reduction") separate from the March 2015 Plan described below. The September 2015 Reduction was designed to resize the company in line with the market environment and to better balance our workforce with the long-term strategic needs of our business. The September 2015 Reduction is substantially complete subject to certain remaining expected costs that we do not expect to be material, which we will expense as incurred. Under this reduction, no expense was incurred during either of the three month periods ended September 29, 2018 and September 30, 2017 , and no expense and approximately $0.7 million of credit was incurred during the nine months ended September 29, 2018 and September 30, 2017 , respectively. Approximately $7.2 million of total expense has been incurred through September 29, 2018 under the September 2015 Reduction, and we believe this amount approximates the total costs under the plan. In March 2015, our Board of Directors approved an internal restructuring plan (the "March 2015 Plan"), in connection with our acquisition of Silicon Image. The March 2015 Plan was designed to realize synergies from the acquisition by eliminating redundancies created as a result of combining the two companies. This included reductions in our worldwide workforce, consolidation of facilities, and cancellation of software contracts and engineering tools. The March 2015 Plan is substantially complete subject to certain remaining expected costs that we do not expect to be material and any changes in sublease assumptions should they occur, which we will expense as incurred. Under this plan, no expense was incurred during either of the three month periods ended September 29, 2018 and September 30, 2017 , respectively, and no expense and approximately $0.1 million of credit was incurred during the nine months ended September 29, 2018 and September 30, 2017 , respectively. Approximately $20.5 million of total expense has been incurred through September 29, 2018 under the March 2015 Plan, and we believe this amount approximates the total costs under the plan. Substantially all of the expenses recorded in the periods presented were under the June 2017 and June 2018 Plans. These expenses were recorded to Restructuring charges on our Consolidated Statements of Operations. The restructuring accrual balance is presented in Accounts payable and accrued expenses (includes restructuring) on our Consolidated Balance Sheets . The following table displays the combined activity related to the restructuring actions described above: (In thousands) Severance & related * Lease Termination & Fixed Assets Software Contracts & Engineering Tools ** Other Total Balance at December 31, 2016 $ 801 $ 1,036 $ 25 $ 12 $ 1,874 Restructuring charges 2,433 816 686 778 4,713 Costs paid or otherwise settled (1,707 ) (897 ) (711 ) (771 ) (4,086 ) Balance at September 30, 2017 $ 1,527 $ 955 $ — $ 19 $ 2,501 Balance at December 30, 2017 $ 1,192 $ 870 $ 360 $ 25 $ 2,447 Restructuring charges 4,034 437 913 111 5,495 Costs paid or otherwise settled (4,662 ) (667 ) (1,055 ) (113 ) (6,497 ) Balance at September 29, 2018 $ 564 $ 640 $ 218 $ 23 $ 1,445 * Includes employee relocation costs and retention bonuses ** Includes cancellation of contracts |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 29, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt On March 10, 2015, we entered into a secured credit agreement (the "Credit Agreement") with Jefferies Finance, LLC and certain other lenders for purposes of funding, in part, our acquisition of Silicon Image. The Credit Agreement provided for a $350 million term loan (the "Term Loan") maturing on March 10, 2021 (the "Term Loan Maturity Date"). We received $346.5 million net of an original issue discount of $3.5 million and we paid debt issuance costs of $8.3 million . The Term Loan bears variable interest equal to the one-month LIBOR, subject to a 1.00% floor, plus a spread of 4.25% . The current effective interest rate on the Term Loan is 7.03% . The Term Loan is payable through a combination of (i) quarterly installments of approximately $0.9 million , (ii) annual excess cash flow payments as defined in the Credit Agreement, which are due 95 days after the last day of our fiscal year, and (iii) any payments due upon certain issuances of additional indebtedness and certain asset dispositions, with any remaining outstanding principal amount due and payable on the Term Loan Maturity Date. The percentage of excess cash flow we are required to pay ranges from 0% to 75% , depending on our leverage and other factors as defined in the Credit Agreement. Currently, the Credit Agreement would require a 75% excess cash flow payment. In the first quarter of fiscal 2018 , we made a required quarterly installment payment of $0.9 million . In the second quarter of fiscal 2018 , we made a required excess cash flow payment of $0.2 million , a required quarterly installment payment of $0.9 million , and an additional $10.0 million principal payment. In the third quarter of fiscal 2018 , we made a required quarterly installment payment of $0.9 million , and an additional $15.0 million principal payment. Over the next twelve months, our principal payments will be comprised mainly of regular quarterly installments, a required annual excess cash flow payment, and we could make any discretionary payments we deem appropriate. While the Credit Agreement does not contain financial covenants, it does contain informational covenants and certain restrictive covenants, including limitations on liens, mergers and consolidations, sales of assets, payment of dividends, and indebtedness. We were in compliance with all such covenants in all material respects at September 29, 2018 . The original issue discount and the debt issuance costs have been accounted for as a reduction to the carrying value of the Term Loan on our Consolidated Balance Sheets and are being amortized to Interest expense in our Consolidated Statements of Operations over the contractual term, using the effective interest method. The fair value of the Term Loan approximates the carrying value, which is reflected in our Consolidated Balance Sheets as follows: (In thousands) September 29, December 30, Principal amount $ 278,908 $ 306,791 Unamortized original issue discount and debt costs (3,769 ) (5,616 ) Less: Current portion of long-term debt (14,104 ) (1,508 ) Long-term debt $ 261,035 $ 299,667 Interest expense related to the Term Loan was included in Interest expense on our Consolidated Statements of Operations as follows: Three Months Ended Nine Months Ended (In thousands) September 29, September 30, September 29, September 30, Contractual interest $ 4,711 $ 3,492 $ 14,001 $ 12,202 Amortization of debt issuance costs and discount 789 326 1,847 1,680 Total interest expense related to the Term Loan $ 5,500 $ 3,818 $ 15,848 $ 13,882 As of September 29, 2018 , expected future principal payments on the Term Loan were as follows: Fiscal year (in thousands) 2018 (remaining 3 months) $ 875 2019 15,914 2020 56,175 2021 205,944 $ 278,908 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Total stock-based compensation expense included in our Consolidated Statements of Operations is presented in the following table: Three Months Ended Nine Months Ended (In thousands) September 29, September 30, September 29, September 30, Cost of products sold $ 219 $ 154 $ 652 $ 562 Research and development 926 980 2,970 4,129 Selling, general, and administrative 1,563 1,380 6,286 4,595 Total stock-based compensation $ 2,708 $ 2,514 $ 9,908 $ 9,286 The stock-based compensation expense included in Selling, general, and administrative expense for the first nine months of fiscal 2018 includes approximately $1.4 million of additional one-time expense for acceleration of stock compensation under the CEO separation agreement executed with our former CEO during the first quarter of fiscal 2018. Performance-Based Stock Compensation In fiscal years 2015 through 2017, we granted stock options and RSUs with a market condition to certain executives. The options have a two year vesting period and can vest between 0% and 200% of the target amount, based on the Company's relative Total Shareholder Return ("TSR") when compared to the TSR of a component of companies in the PHLX Semiconductor Sector Index over a two year period. Under the terms of the grants, executives will receive the target amount if the Company’s TSR relative to that of the Index achieves or exceeds the 50 th percentile. Executives may receive 200% if the Company’s TSR exceeds the 75 th percentile. No vesting occurs if the Company’s TSR does not exceed the 25 th percentile. TSR is a measure of stock price appreciation plus dividends paid, if any, in the performance period. The fair values of the options and RSUs were determined and fixed on the date of grant using a lattice-based option-pricing valuation model incorporating a Monte-Carlo simulation and a consideration of the likelihood that we would achieve the market condition. In September 2018, we granted inducement awards outside of, but subject to the terms and conditions of the Company’s stockholder approved equity compensation plan to our incoming President and Chief Executive Officer. The inducement awards included market and performance based restricted stock that vest and become payable upon satisfaction of certain market and performance conditions. The market and performance conditions include TSR and Adjusted EBITDA targets, respectively. The TSR based awards vest and become payable over a three -year period based on the Company’s TSR relative to the PHLX Semiconductor Sector Index, with 100% of the units vesting at the 50th percentile and a multiplier to 250% of the units vesting at the 75th percentile achievement, zero vesting if relative TSR is below the 25th percentile, and vesting scaling linearly for achievement between the 25th and 75th percentile. The Adjusted EBITDA based awards will vest and become payable based upon the Company’s generating specified “adjusted” EBITDA levels on a trailing four quarter basis in any two consecutive trailing four-quarter periods. In September 2018, we granted inducement awards outside of, but subject to the terms and conditions of the Company’s stockholder approved equity compensation plan to our incoming Corporate Vice President of Research and Development. The inducement awards included performance based restricted stock that would vest and become payable upon achievement of a target TSR. The awards vest and become payable over a three -year period based on the Company’s TSR relative to the PHLX Semiconductor Sector Index, with 100% of the units vesting at the 50th percentile and a multiplier to 200% of the units vesting at the 75th percentile achievement, zero vesting if relative TSR is below the 25th percentile, and vesting scaling linearly for achievement between the 25th and 75th percentile. The following table summarizes the activity for our stock options and RSUs with a performance condition during the first nine months of fiscal 2018: (Shares in thousands) Unvested Vested Total Balance, December 30, 2017 707 83 790 Granted 573 — 573 Vested (31 ) 31 — Exercised — (78 ) (78 ) Canceled (429 ) (10 ) (439 ) Balance, September 29, 2018 820 26 846 We incurred stock compensation expense related to these market condition awards of approximately $0.1 million and $0.6 million in the third quarter and first nine months, respectively, of fiscal 2018 and of approximately $0.1 million and $0.4 million in the third quarter and first nine months, respectively, of fiscal 2017 , which is recorded as a component of total stock-based compensation expense. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal Matters From time to time, we are exposed to certain asserted and unasserted potential claims. Periodically, we review the status of each significant matter and assess its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and a range of possible losses can be estimated, we then accrue a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based only on the best information available at the time. As additional information becomes available, we reassess the potential liability related to pending claims and litigation and may revise estimates. Other Matters We maintain certain Value-Added Tax ("VAT") benefits derived from our research and development operations that require filing tax exempt status documentation with local taxing authorities. In relation to one of our Chinese legal entities, we are undergoing an audit of this documentation as of September 29, 2018 . Due to the uncertainty in both the outcome and the estimated range of any findings, no liability has been accrued as of September 29, 2018 . We believe the findings would not have a material impact on our Consolidated Financial Statements and could be in a range from $0 to less than $2 million . |
Segment and Geographic Informat
Segment and Geographic Information | 9 Months Ended |
Sep. 29, 2018 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information Segment Information In the three and nine month periods ended September 29, 2018 and September 30, 2017 , respectively, Lattice had one operating segment: the core Lattice business, which includes semiconductor devices, evaluation boards, development hardware, and related intellectual property licensing and sales. Geographic Information Our revenue by major geographic area is presented in "Note 2 - Revenue from Contracts with Customers". Our Property and equipment, net by country at the end of each period was as follows: (In thousands) September 29, 2018 December 30, 2017 United States $ 27,893 $ 30,338 China 2,357 4,632 Philippines 3,472 3,883 Taiwan 1,062 958 Japan 319 313 Other 621 299 Total foreign property and equipment, net 7,831 10,085 Total property and equipment, net $ 35,724 $ 40,423 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 29, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Presentation | Principles of Consolidation and Presentation The accompanying Consolidated Financial Statements include the accounts of Lattice and its subsidiaries after the elimination of all intercompany balances and transactions. |
Reclassifications | Reclassifications Certain amounts in the prior fiscal year in the accompanying consolidated financial statements and notes thereto have been reclassified to conform to the presentation adopted in the current fiscal year. These reclassifications had no material effect on the results of operations or financial position for any period presented. We had previously treated an investment as an equity-method investment and reported equity in net loss of an unconsolidated affiliate separately, amounting to approximately $0.2 million and $0.7 million for the third quarter and first nine months, respectively, of fiscal 2017. We have reclassified the prior year loss to Other expense, net on our Consolidated Statements of Operations to be consistent with the current year treatment of the investment as a cost-method investment. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and classification of assets, such as marketable securities, accounts receivable, contract assets (included in prepaid expenses and other current assets), inventory, goodwill (including the assessment of reporting units), intangible assets, current and deferred income taxes, accrued liabilities (including restructuring charges and bonus arrangements), disclosure of contingent assets and liabilities at the date of the financial statements, amounts used in acquisition valuations and purchase accounting, impairment assessments, the fair value of equity awards, and the reported amounts of product revenue, licensing and services revenue, and expenses during the fiscal periods presented. Actual results could differ from those estimates. |
Cash Equivalents | We consider all investments that are readily convertible into cash and that have original maturities of three months or less to be cash equivalents. Cash equivalents consist primarily of highly liquid investments in time deposits or money market accounts and are carried at cost. |
Marketable Securities | We account for marketable securities as available-for-sale investments, as defined by U.S. GAAP, and record unrealized gains or losses to Accumulated other comprehensive loss on our Consolidated Balance Sheets , unless losses are considered other than temporary, in which case, those are recorded directly to the Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income (Loss) . Deposits with financial institutions at times exceed Federal Deposit Insurance Corporation insurance limits. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We invest in various financial instruments, which may include corporate and government bonds, notes, and commercial paper. We value these instruments at their fair value and monitor our portfolio for impairment on a periodic basis. In the event that the carrying value of an investment exceeds its fair value and the decline in value is determined to be other than temporary, we would record an impairment charge and establish a new carrying value. We assess other than temporary impairment of marketable securities in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, “ Fair Value Measurements .” The framework under the provisions of ASC 820 establishes three levels of inputs that may be used to measure fair value. Each level of input has different levels of subjectivity and difficulty involved in determining fair value. Level 1 instruments generally represent quoted prices for identical assets or liabilities in active markets. Therefore, determining fair value for Level 1 instruments generally does not require significant management judgment, and the estimation is not difficult. Our Level 1 instruments consist of U.S. Government agency obligations, corporate notes and bonds, and commercial paper that are traded in active markets and are classified as Short-term marketable securities on our Consolidated Balance Sheets . Level 2 instruments include inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices for identical instruments in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Our Level 2 instruments consist of foreign currency exchange contracts entered into to hedge against fluctuation in the Japanese yen. Level 3 instruments include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. As a result, the determination of fair value for Level 3 instruments requires significant management judgment and subjectivity. We did not have any Level 3 instruments during the periods presented. |
Foreign Exchange and Translation of Foreign Currencies | Foreign Exchange and Translation of Foreign Currencies While our revenues and the majority of our expenses are denominated in U.S. dollars, we have international subsidiaries and branch operations that conduct some transactions in foreign currencies, and we collect an annual Japanese consumption tax refund in yen. Gains or losses from foreign exchange rate fluctuations on balances denominated in foreign currencies are reflected in Other expense, net . Realized gains or losses on foreign currency transactions were not significant for the periods presented. We translate accounts denominated in foreign currencies in accordance with ASC 830, “ Foreign Currency Matters ,” using the current rate method under which asset and liability accounts are translated at the current rate, while stockholders' equity accounts are translated at the appropriate historical rates, and revenue and expense accounts are translated at average monthly exchange rates. Translation adjustments related to the consolidation of foreign subsidiary financial statements are reflected in Accumulated other comprehensive loss in Stockholders' equity (see "Note 11 - Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss"). |
Derivative Financial Instruments | Derivative Financial Instruments We mitigate foreign currency exchange rate risk by entering into foreign currency forward exchange contracts, details of which are presented in the following table: September 29, December 30, Total cost of contracts for Japanese yen (in thousands) $ 1,955 $ 2,204 Number of contracts 2 2 Settlement month June 2019 June 2018 Although these hedges mitigate our foreign currency exchange rate exposure from an economic perspective, they were not designated as "effective" hedges for accounting purposes and as such are adjusted to fair value through Other expense, net , with a gain of approximately $0.1 million for the fiscal quarter ended September 29, 2018 and a gain of approximately $0.1 million for the fiscal quarter ended December 30, 2017 . We do not hold or issue derivative financial instruments for trading or speculative purposes. |
Concentration Risk | Concentration Risk Potential exposure to concentration risk may impact revenue, trade receivables, marketable securities, and supply of wafers for our products. Customer concentration risk may impact revenue. The percentage of total revenue attributable to our top five identified end customers and largest identified end customer is presented in the following table: Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Revenue attributable to top five end customers 20 % 23 % 17 % 28 % Revenue attributable to largest end customer 6 % 5 % 5 % 9 % No end customer accounted for more than 10% of total revenue during these periods. We did not have enough information to assign end customers to approximately $1.3 million and $13.7 million of revenue recognized for the third quarter and first nine months, respectively, of fiscal 2018 on shipments to distributors that have not sold through to end customers. Distributors have historically accounted for a significant portion of our total revenue. Revenue attributable to distributors as a percentage of total revenue is presented in the following table: Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Revenue attributable to distributors* 82 % 80 % 85 % 75 % * During the first quarter of 2018, we updated our channel categories to group all forms of distribution into a single channel. Prior periods have been reclassified to match the current period presentation. Our two largest distributor groups, Arrow Electronics, Inc. ("Arrow") and the Weikeng Group ("Weikeng"), also account for a substantial portion of our net trade receivables. At September 29, 2018 and December 30, 2017 , Arrow accounted for 46% and 66% , respectively, and Weikeng accounted for 31% and 0% , respectively, of net trade receivables. No other distributor group or end customer accounted for more than 10% of net trade receivables at these dates. Concentration of credit risk with respect to trade receivables is mitigated by our credit and collection process, including active management of collections, credit limits, routine credit evaluations for essentially all customers, and secure transactions with letters of credit or advance payments where appropriate. We regularly review our allowance for doubtful accounts and the aging of our accounts receivable. Accounts receivable do not bear interest and are shown net of allowances for doubtful accounts of $0.4 million and $9.4 million at September 29, 2018 and December 30, 2017 , respectively. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on assessment of known troubled accounts, analysis of the aging of our accounts receivable, historical experience, management judgment, and other currently available evidence. We write off accounts receivable against the allowance when we determine a balance is uncollectible and no longer actively pursue collection of the receivable. During the third quarter of fiscal 2018, we wrote off $9.0 million of accounts receivable from a bankrupt distributor group. We had recorded a full allowance on this amount in the third quarter of fiscal 2016, so there was no impact on Accounts Receivable, net in the current period. Bad debt expense was negligible for all periods presented. We place our investments primarily through one financial institution and mitigate the concentration of credit risk by limiting the maximum portion of the investment portfolio which may be invested in any one instrument. Our investment policy defines approved credit ratings for investment securities. Investments on-hand in marketable securities consisted primarily of money market instruments, “AA” or better corporate notes and bonds and commercial paper, and U.S. government agency obligations. See "Note 4 - Marketable Securities" for a discussion of the liquidity attributes of our marketable securities. We rely on a limited number of foundries for our wafer purchases, including Fujitsu Limited, Seiko Epson Corporation, Taiwan Semiconductor Manufacturing Company, Ltd, and United Microelectronics Corporation. We seek to mitigate the concentration of supply risk by establishing, maintaining and managing multiple foundry relationships; however, certain of our products are sourced from a single foundry and changing from one foundry to another can have a significant cost, among other factors. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method for financial reporting purposes over the estimated useful lives of the related assets, generally three to five years for equipment and software, one to three years for tooling, and thirty years for buildings and building space. Leasehold improvements are amortized over the shorter of the non-cancelable lease term or the estimated useful life of the assets. Upon disposal of property and equipment, the accounts are relieved of the costs and related accumulated depreciation and amortization, and resulting gains or losses are reflected in the Consolidated Statements of Operations for recognized gains and losses or in the Consolidated Balance Sheets for deferred gains and losses. Repair and maintenance costs are expensed as incurred. In August 2017, we sold building space which we owned in Shanghai, China for gross proceeds of approximately $7.9 million . The building space was vacated in fiscal 2015, upon consolidation of facilities to a single site in Shanghai following our acquisition of Silicon Image. As of the sale date, the building had a historical cost of $3.6 million , accumulated depreciation of $1.4 million and we incurred $1.1 million of direct selling costs, resulting in a net gain on sale of $4.6 million in the third quarter of fiscal 2017, which is presented as Gain on sale of building in our Consolidated Statements of Operations. |
Variable Interest Entities | Variable Interest Entities and Equity Investments in Privately Held Companies We have an interest in an entity that is a Variable Interest Entity ("VIE"). If we are the primary beneficiary of a VIE, we are required to consolidate it. To determine if we are the primary beneficiary, we evaluate whether we have the power to direct the activities that most significantly impact the VIE's economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our evaluation includes identification of significant activities and an assessment of our ability to direct those activities based on governance provisions and arrangements to provide or receive product and process technology, product supply, operations services, equity funding, financing, and other applicable agreements and circumstances. Our assessments of whether we are the primary beneficiary of our VIE requires significant assumptions and judgments. We have concluded that we are not the primary beneficiary of this VIE as we do not have the power to direct the activities that most significantly impact the VIE's economic performance. Our equity investments in privately held companies, considered VIE's, that we are not required to consolidate are accounted for under the cost method, as assessed under ASC 325-20, " Cost Method Investments ." These investments are reviewed on a quarterly basis to determine if their values have been impaired and adjustments are recorded as necessary. We assess the potential impairment of these investments by applying a fair value analysis using a revenue multiple approach. Declines in value that are judged to be other-than-temporary are reported in Other expense, net in the accompanying Consolidated Statements of Operations with a commensurate decrease in the carrying value of the investment (see "Note 9 - Cost Method Investment and Collaborative Arrangement"). Upon disposition of these investments, the specific identification method is used to determine the cost basis in computing realized gains or losses. |
Equity Investments in Privately Held Companies | Variable Interest Entities and Equity Investments in Privately Held Companies We have an interest in an entity that is a Variable Interest Entity ("VIE"). If we are the primary beneficiary of a VIE, we are required to consolidate it. To determine if we are the primary beneficiary, we evaluate whether we have the power to direct the activities that most significantly impact the VIE's economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our evaluation includes identification of significant activities and an assessment of our ability to direct those activities based on governance provisions and arrangements to provide or receive product and process technology, product supply, operations services, equity funding, financing, and other applicable agreements and circumstances. Our assessments of whether we are the primary beneficiary of our VIE requires significant assumptions and judgments. We have concluded that we are not the primary beneficiary of this VIE as we do not have the power to direct the activities that most significantly impact the VIE's economic performance. Our equity investments in privately held companies, considered VIE's, that we are not required to consolidate are accounted for under the cost method, as assessed under ASC 325-20, " Cost Method Investments ." These investments are reviewed on a quarterly basis to determine if their values have been impaired and adjustments are recorded as necessary. We assess the potential impairment of these investments by applying a fair value analysis using a revenue multiple approach. Declines in value that are judged to be other-than-temporary are reported in Other expense, net in the accompanying Consolidated Statements of Operations with a commensurate decrease in the carrying value of the investment (see "Note 9 - Cost Method Investment and Collaborative Arrangement"). Upon disposition of these investments, the specific identification method is used to determine the cost basis in computing realized gains or losses. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and intangible assets. Goodwill is not amortized, but instead is tested for impairment annually or more frequently if certain indicators of impairment are present. We do not expect goodwill impairment to be tax deductible for income tax purposes. |
New Accounting Pronouncements | New Accounting Pronouncements Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires the recognition of assets and liabilities arising from lease transactions on the balance sheet and will also require significant additional disclosures about the amount, timing, and uncertainty of cash flows from leases. Substantially all leases, including current operating leases, will be recognized by lessees on their balance sheet as a lease asset for its right to use the underlying asset and a lease liability for the corresponding lease obligation. For public business entities, the standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all entities. ASU 2016-02 initially required entities to adopt the standard using a modified retrospective transition method. In July 2018, the FASB issued certain updates including ASU 2018-11, Leases (Topic 842) Targeted Improvements , which provide transition practical expedients allowing companies to adopt the new standard with a cumulative effect adjustment as of the beginning of the year of adoption with prior year comparative financial information and disclosures remaining as previously reported. We are currently evaluating the optional transition practical expedients, as well as the impact of the new guidance on our consolidated financial statements and related disclosures, including the increase in the assets and liabilities on our balance sheet, and the impact on our current lease portfolio from both a lessor and lessee perspective. To facilitate this, we are utilizing a comprehensive approach to review our lease portfolio, as well as assessing system requirements and control implications. We believe that we have sufficient time and resources to complete our implementation efforts no later than the first quarter of fiscal 2019. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and simplifies the application of the hedge accounting guidance. This standard is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. We are currently evaluating the impact of ASU 2017-12 on our consolidated financial statements and related disclosures. In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The new guidance allows an entity to reclassify the income tax effects of the Public Law 115-97 "An Act to Provide Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018", commonly known as the Tax Cuts and Job Act of 2017 (the "2017 Tax Act") on items within accumulated other comprehensive income/(loss) to retained earnings. This new guidance is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The new standard must be adopted retrospectively to each period in which a taxpayer recognizes the effect of the change in the U.S. federal corporate income tax rate from the 2017 Tax Act. We are currently assessing the impact of ASU 2018-02 on our consolidated financial statements and related disclosures. In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting , which largely aligns the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees. The ASU also clarifies that any share-based payment issued to a customer should be evaluated under ASC 606, Revenue from Contracts with Customers . The ASU requires a modified retrospective transition approach. This new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. We do not expect the adoption of this accounting standard update to have a material impact on our consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) , which clarifies the accounting for implementation costs in cloud computing arrangements. This guidance is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. We are currently assessing the impact of ASU 2018-15 on our consolidated financial statements and related disclosures. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Derivative Instruments | We mitigate foreign currency exchange rate risk by entering into foreign currency forward exchange contracts, details of which are presented in the following table: September 29, December 30, Total cost of contracts for Japanese yen (in thousands) $ 1,955 $ 2,204 Number of contracts 2 2 Settlement month June 2019 June 2018 |
Schedules of Revenue Concentration of Risk | The percentage of total revenue attributable to our top five identified end customers and largest identified end customer is presented in the following table: Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Revenue attributable to top five end customers 20 % 23 % 17 % 28 % Revenue attributable to largest end customer 6 % 5 % 5 % 9 % Revenue attributable to distributors as a percentage of total revenue is presented in the following table: Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Revenue attributable to distributors* 82 % 80 % 85 % 75 % * During the first quarter of 2018, we updated our channel categories to group all forms of distribution into a single channel. Prior periods have been reclassified to match the current period presentation. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of New Accounting Pronouncements | Such information is as follows: Condensed Consolidated Statement of Operations Three months ended September 29, 2018 Nine months ended September 29, 2018 (In thousands, except per share data) As reported under new standard Adjustments Pro forma as if previous standard was in effect As reported under new standard Adjustments Pro forma as if previous standard was in effect Product revenue 97,932 (1,302 ) 96,630 291,335 (13,651 ) 277,684 Licensing and services revenue 3,552 (1,525 ) 2,027 11,487 1,662 13,149 Cost of product revenue 43,120 144 43,264 137,430 (5,400 ) 132,030 Net income (loss) 6,974 (2,971 ) 4,003 (19,201 ) (6,589 ) (25,790 ) Net income (loss) per share, basic and diluted 0.05 (0.02 ) 0.03 (0.15 ) (0.06 ) (0.21 ) Condensed Consolidated Balance Sheets As of September 29, 2018 (In thousands) As reported under new standard Adjustments Pro forma as if previous standard was in effect Accounts receivable, net of allowance for doubtful accounts 75,648 7,091 82,739 Inventories 66,381 25 66,406 Prepaid expenses and other current assets 24,143 (6,568 ) 17,575 Total assets 632,327 548 632,875 Accounts payable and accrued expenses (includes restructuring) 46,929 (887 ) 46,042 Deferred income and allowances on sales to distributors — 35,425 35,425 Accumulated deficit (469,662 ) (33,990 ) (503,652 ) Total liabilities and stockholders' equity 632,327 548 632,875 Condensed Consolidated Statement of Cash Flows Nine months ended September 29, 2018 (In thousands) As reported under new standard Adjustments Pro forma as if previous standard was in effect Cash flows from operating activities: Net loss (19,201 ) (6,589 ) (25,790 ) Accounts receivable, net (18,736 ) (8,899 ) (27,635 ) Inventories 13,892 (395 ) 13,497 Prepaid expenses and other assets (11,729 ) (947 ) (12,676 ) Accounts payable and accrued expenses (includes restructuring) 1,661 (1,345 ) 316 Deferred income and allowances on sales to distributors — 18,175 18,175 |
Contracts with Customers | The following table summarizes the activity for our contract assets during the first nine months of fiscal 2018: (In thousands) Balance as of December 31, 2017 $ 7,515 Revenues recorded during the period 7,338 Transferred to accounts receivable or collected (8,848 ) Balance as of September 29, 2018 $ 6,005 |
Disaggregation of revenue | The following tables provide information about revenue from contracts with customers disaggregated by major class of revenue and by geographical market, based on ship-to location of the end customer, where available, and ship-to location of distributor otherwise: Major Class of Revenue Three Months Ended Nine Months Ended (In thousands) September 29, September 30, September 29, September 30, Product revenue - Distributors 82,969 73,273 257,716 218,923 Product revenue - Direct 14,963 14,096 33,619 44,283 Licensing and services revenue 3,552 4,602 11,487 27,489 Total revenue 101,484 91,971 302,822 290,695 Revenue by Geographical Market Three Months Ended Nine Months Ended (In thousands) September 29, September 30, September 29, September 30, Asia 76,927 68,677 226,747 207,081 Europe 11,873 10,972 36,177 32,631 Americas 12,684 12,322 39,898 50,983 Total revenue 101,484 91,971 302,822 290,695 * As noted above, prior period amounts have not been adjusted under the modified retrospective method of adopting ASC 606 and, therefore, are presented under GAAP in effect during that period. |
Net Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation | A summary of basic and diluted Net income (loss) per share is presented in the following table: Three Months Ended Nine Months Ended (in thousands, except per share data) September 29, September 30, September 29, September 30, Net income (loss) $ 6,974 $ (43,052 ) $ (19,201 ) $ (63,349 ) Shares used in basic Net income (loss) per share 127,816 122,990 125,578 122,393 Dilutive effect of stock options, RSUs and ESPP shares 1,658 — — — Shares used in diluted Net income (loss) per share 129,474 122,990 125,578 122,393 Basic Net income (loss) per share $ 0.05 $ (0.35 ) $ (0.15 ) $ (0.52 ) Diluted Net income (loss) per share $ 0.05 $ (0.35 ) $ (0.15 ) $ (0.52 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The computation of diluted Net income (loss) per share excludes the effects of stock options, RSUs, and ESPP shares that are antidilutive, aggregating approximately the following number of shares: Three Months Ended Nine Months Ended (in thousands) September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Stock options, RSUs, and ESPP shares excluded as they are antidilutive 2,299 7,221 8,284 6,018 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities | The following table summarizes the remaining maturities of our Short-term marketable securities at fair value: (In thousands) September 29, December 30, Short-term marketable securities: Maturing within one year $ 7,435 $ 4,982 Maturing between one and two years 2,165 — Total marketable securities $ 9,600 $ 4,982 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Instruments | Fair value measurements as of Fair value measurements as of September 29, 2018 December 30, 2017 (In thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Short-term marketable securities $ 9,600 $ 9,600 $ — $ — $ 4,982 $ 4,982 $ — $ — Foreign currency forward exchange contracts, net 105 — 105 — 77 — 77 — Total fair value of financial instruments $ 9,705 $ 9,600 $ 105 $ — $ 5,059 $ 4,982 $ 77 $ — |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | (In thousands) September 29, December 30, Work in progress $ 47,122 $ 49,642 Finished goods 19,259 30,261 Total inventories $ 66,381 $ 79,903 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-lived Intangible Assets Amortization Expense | We recorded amortization expense related to intangible assets on the Consolidated Statements of Operations as presented in the following table: Three Months Ended Nine Months Ended (In thousands) September 29, September 30, September 29, September 30, Research and development $ 14 $ 128 $ 264 $ 442 Amortization of acquired intangible assets 3,823 8,526 13,982 25,777 $ 3,837 $ 8,654 $ 14,246 $ 26,219 |
Cost Method Investment and Co_2
Cost Method Investment and Collaborative Arrangement (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Investments, All Other Investments [Abstract] | |
Schedule Of Periodic Payments For Prepaid Royalties | As of September 29, 2018, expected future royalty prepayments are as follows: Fiscal year (in thousands) 2018 (remaining 3 months) $ 875 2019 $ 5,000 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Included in Accounts payable and accrued expenses are the following balances: (In thousands) September 29, December 30, Trade accounts payable $ 26,150 $ 35,350 Liability for non-cancelable contracts 7,471 7,232 Deferred rent 3,809 3,834 Other accrued expenses (includes restructuring) 9,499 7,989 Total accounts payable and accrued expenses $ 46,929 $ 54,405 |
Changes in Stockholders' Equi_2
Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Changes in Stockholders' Equity and Accumulated other Comprehensive Loss | Common Stock ($.01 par value) Additional Paid-in capital Accumulated deficit Accumulated other comprehensive loss Total (In thousands, except par value data) Shares Amount Balances, December 30, 2017 123,895 $ 1,239 $ 695,768 $ (477,862 ) $ (1,452 ) $ 217,693 Net loss for the nine months ended September 29, 2018 — — — (19,201 ) — (19,201 ) Unrealized gain related to marketable securities, net of tax — — — — 16 16 Recognized gain on redemption of marketable securities, previously unrealized — — — — (18 ) (18 ) Translation adjustments, net of tax — — — — (1,124 ) (1,124 ) Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax 5,380 54 26,397 — — 26,451 Stock-based compensation related to stock options, ESPP and RSUs — — 9,908 — — 9,908 Accounting method transition adjustment (1) — — — 27,401 — 27,401 Balances, September 29, 2018 129,275 $ 1,293 $ 732,073 $ (469,662 ) $ (2,578 ) $ 261,126 (1) As of the beginning of fiscal 2018, we adopted ASC 606, Revenue from Contracts With Customers, using the modified retrospective transition method. As a result of this adoption, we recorded a cumulative-effect adjustment to Accumulated Deficit, as shown in the table above. |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table displays the combined activity related to the restructuring actions described above: (In thousands) Severance & related * Lease Termination & Fixed Assets Software Contracts & Engineering Tools ** Other Total Balance at December 31, 2016 $ 801 $ 1,036 $ 25 $ 12 $ 1,874 Restructuring charges 2,433 816 686 778 4,713 Costs paid or otherwise settled (1,707 ) (897 ) (711 ) (771 ) (4,086 ) Balance at September 30, 2017 $ 1,527 $ 955 $ — $ 19 $ 2,501 Balance at December 30, 2017 $ 1,192 $ 870 $ 360 $ 25 $ 2,447 Restructuring charges 4,034 437 913 111 5,495 Costs paid or otherwise settled (4,662 ) (667 ) (1,055 ) (113 ) (6,497 ) Balance at September 29, 2018 $ 564 $ 640 $ 218 $ 23 $ 1,445 * Includes employee relocation costs and retention bonuses ** Includes cancellation of contracts |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The fair value of the Term Loan approximates the carrying value, which is reflected in our Consolidated Balance Sheets as follows: (In thousands) September 29, December 30, Principal amount $ 278,908 $ 306,791 Unamortized original issue discount and debt costs (3,769 ) (5,616 ) Less: Current portion of long-term debt (14,104 ) (1,508 ) Long-term debt $ 261,035 $ 299,667 |
Interest Income and Interest Expense Disclosure | Interest expense related to the Term Loan was included in Interest expense on our Consolidated Statements of Operations as follows: Three Months Ended Nine Months Ended (In thousands) September 29, September 30, September 29, September 30, Contractual interest $ 4,711 $ 3,492 $ 14,001 $ 12,202 Amortization of debt issuance costs and discount 789 326 1,847 1,680 Total interest expense related to the Term Loan $ 5,500 $ 3,818 $ 15,848 $ 13,882 |
Schedule of Debt | As of September 29, 2018 , expected future principal payments on the Term Loan were as follows: Fiscal year (in thousands) 2018 (remaining 3 months) $ 875 2019 15,914 2020 56,175 2021 205,944 $ 278,908 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-Based Compensation Expense | Total stock-based compensation expense included in our Consolidated Statements of Operations is presented in the following table: Three Months Ended Nine Months Ended (In thousands) September 29, September 30, September 29, September 30, Cost of products sold $ 219 $ 154 $ 652 $ 562 Research and development 926 980 2,970 4,129 Selling, general, and administrative 1,563 1,380 6,286 4,595 Total stock-based compensation $ 2,708 $ 2,514 $ 9,908 $ 9,286 |
Share-based Compensation, Stock Options, Activity | The following table summarizes the activity for our stock options and RSUs with a performance condition during the first nine months of fiscal 2018: (Shares in thousands) Unvested Vested Total Balance, December 30, 2017 707 83 790 Granted 573 — 573 Vested (31 ) 31 — Exercised — (78 ) (78 ) Canceled (429 ) (10 ) (439 ) Balance, September 29, 2018 820 26 846 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Property and Equipment by Country | Our Property and equipment, net by country at the end of each period was as follows: (In thousands) September 29, 2018 December 30, 2017 United States $ 27,893 $ 30,338 China 2,357 4,632 Philippines 3,472 3,883 Taiwan 1,062 958 Japan 319 313 Other 621 299 Total foreign property and equipment, net 7,831 10,085 Total property and equipment, net $ 35,724 $ 40,423 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies (Reclassifications) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Accounting Policies [Abstract] | ||||
Impairment of cost-method investment | $ 300 | $ 200 | $ 266 | $ 692 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies (Derivative Financial Instruments) (Details) $ in Thousands | 3 Months Ended | |
Sep. 29, 2018USD ($)Contract | Dec. 30, 2017USD ($)Contract | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | ||
Gain on foreign exchange contracts adjusted to fair value through earnings - less than | $ 100 | $ 100 |
Foreign exchange contracts | ||
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | ||
Total cost of contracts for Japanese yen (in thousands) | $ 1,955 | $ 2,204 |
Number of contracts | Contract | 2 | 2 |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies (Concentration Risk) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Dec. 30, 2017 | |
Risks and Uncertainties [Abstract] | |||||
Revenue recognized on shipments to distributors | $ 1.3 | $ 13.7 | |||
Allowance for doubtful accounts | 0.4 | $ 0.4 | $ 9.4 | ||
Allowance for doubtful accounts, write-offs | $ 9 | ||||
Revenue | Sell-Through Distributors Concentration Risk | |||||
Risks and Uncertainties [Abstract] | |||||
Concentration Risk | 82.00% | 80.00% | 85.00% | 75.00% | |
Top Five Customers | Revenue | Customer Concentration Risk | |||||
Risks and Uncertainties [Abstract] | |||||
Concentration Risk | 20.00% | 23.00% | 17.00% | 28.00% | |
Largest Customer | Revenue | Customer Concentration Risk | |||||
Risks and Uncertainties [Abstract] | |||||
Concentration Risk | 6.00% | 5.00% | 5.00% | 9.00% | |
Largest Distributor Group | Trade receivables | Sell-Through Distributors Concentration Risk | |||||
Risks and Uncertainties [Abstract] | |||||
Concentration Risk | 46.00% | 66.00% | |||
Second Largest Distributor Group | Trade receivables | Sell-Through Distributors Concentration Risk | |||||
Risks and Uncertainties [Abstract] | |||||
Concentration Risk | 31.00% | 0.00% |
Basis of Presentation and Sig_7
Basis of Presentation and Significant Accounting Policies (Property and Equipment) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Dec. 30, 2017 | |
Property, Plant and Equipment [Line Items] | ||||||
Proceeds from sale of building | $ 0 | $ 7,895 | ||||
Property and equipment, less accumulated depreciation of $139,310 at September 29, 2018 and $131,260 at December 30, 2017 | $ 35,724 | 35,724 | $ 40,423 | |||
Accumulated depreciation | 139,310 | 139,310 | $ 131,260 | |||
Gain on sale of building | $ 0 | $ 4,624 | $ 0 | $ 4,624 | ||
Equipment | Minimum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful life | 3 years | |||||
Equipment | Maximum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful life | 5 years | |||||
Software Development | Minimum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful life | 3 years | |||||
Software Development | Maximum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful life | 5 years | |||||
Tooling | Minimum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful life | 1 year | |||||
Tooling | Maximum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful life | 3 years | |||||
Building | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful life | 30 years | |||||
Building | Shanghai, China | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Proceeds from sale of building | $ 7,900 | |||||
Property and equipment, less accumulated depreciation of $139,310 at September 29, 2018 and $131,260 at December 30, 2017 | 3,600 | |||||
Accumulated depreciation | 1,400 | |||||
Disposition of property, direct selling costs | 1,100 | |||||
Gain on sale of building | $ (4,600) |
Basis of Presentation and Sig_8
Basis of Presentation and Significant Accounting Policies (Sales of Assets and Business Units) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Dec. 30, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Note receivable resulting from sale of assets and business units | $ 0 | $ 3,050 | |||
Gain (loss) on sale of assets and business units | $ 0 | $ (1,496) | |||
Disposed of by sale | Hyderabad | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Ownership percentage | 100.00% | 100.00% | 100.00% | ||
Disposed of by sale | Hyderabad, India Subsidiary and Assets Related to Simplay Labs Testing and Certification | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Consideration of disposed group | $ 5,300 | $ 5,300 | $ 5,300 | ||
Cash received from sale of business unit | 2,300 | ||||
Note receivable resulting from sale of assets and business units | 3,000 | 3,000 | $ 3,000 | ||
Gain (loss) on sale of assets and business units | $ (1,800) | ||||
Goodwill written off | $ 2,200 |
Basis of Presentation and Sig_9
Basis of Presentation and Significant Accounting Policies (Goodwill) (Details) - USD ($) | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Dec. 30, 2017 | |
Accounting Policies [Abstract] | |||
Goodwill impairment | $ 0 | $ 0 | |
Goodwill | $ 267,514,000 | $ 267,514,000 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Additional Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2018 | Sep. 29, 2018 | Dec. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Stock rotation as percentage of billings (not to exceed) | 5.00% | ||
Royalty revenue periodic adjustment period | 3 years | ||
Cumulative effect adjustments | $ 27,401 | ||
Contracts assets | $ 6,005 | 7,515 | |
Proceeds from royalties received | $ 6,400 | ||
Accumulated deficit | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect adjustments | 27,401 | ||
Accounting Standards Update 2014-09 | Accumulated deficit | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect adjustments | 27,400 | ||
Deferred Distributor Revenues | Accounting Standards Update 2014-09 | Accumulated deficit | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect adjustments | 20,200 | ||
Deferred Licensing Revenues | Accounting Standards Update 2014-09 | Accumulated deficit | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect adjustments | $ 6,600 | ||
Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Payment term for invoice | 30 days | ||
Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Payment term for invoice | 60 days |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Schedule of New Accounting Standard Impact on Financial Statements) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Dec. 30, 2017 | |
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 101,484 | $ 91,971 | $ 302,822 | $ 290,695 | |
Consolidated Statement of Operations | |||||
Net loss | $ 6,974 | (43,052) | $ (19,201) | (63,349) | |
Net (loss) income per share, basic and diluted (in usd per share) | $ 0.05 | $ (0.15) | |||
Consolidated Balance Sheets | |||||
Accounts receivable, net of allowance for doubtful accounts | $ 75,648 | $ 75,648 | $ 55,104 | ||
Inventories | 66,381 | 66,381 | 79,903 | ||
Prepaid expenses and other current assets | 24,143 | 24,143 | 16,567 | ||
Total assets | 632,327 | 632,327 | 635,961 | ||
Accounts payable and accrued expenses (includes restructuring) | 46,929 | 46,929 | 54,405 | ||
Deferred income and allowances on sales to distributors | 0 | 0 | |||
Accumulated deficit | (469,662) | (469,662) | (477,862) | ||
Total liabilities and stockholders' equity | 632,327 | 632,327 | 635,961 | ||
Consolidated Statement of Cash Flows | |||||
Net loss | 6,974 | (43,052) | (19,201) | (63,349) | |
Accounts receivable, net | (18,736) | 20,687 | |||
Inventories | 13,892 | 1,519 | |||
Prepaid expenses and other assets | (11,729) | 3,839 | |||
Accounts payable and accrued expenses (includes restructuring) | 1,661 | (17,901) | |||
Deferred income and allowances on sales to distributors | 0 | ||||
Adjustments | Accounting Standards Update 2014-09 | |||||
Consolidated Statement of Operations | |||||
Net loss | $ (2,971) | $ (6,589) | |||
Net (loss) income per share, basic and diluted (in usd per share) | $ (0.02) | $ (0.06) | |||
Consolidated Balance Sheets | |||||
Accounts receivable, net of allowance for doubtful accounts | $ 7,091 | $ 7,091 | |||
Inventories | 25 | 25 | |||
Prepaid expenses and other current assets | (6,568) | (6,568) | |||
Total assets | 548 | 548 | |||
Accounts payable and accrued expenses (includes restructuring) | (887) | (887) | |||
Deferred income and allowances on sales to distributors | 35,425 | 35,425 | |||
Accumulated deficit | (33,990) | (33,990) | |||
Total liabilities and stockholders' equity | 548 | 548 | |||
Consolidated Statement of Cash Flows | |||||
Net loss | (2,971) | (6,589) | |||
Accounts receivable, net | (8,899) | ||||
Inventories | (395) | ||||
Prepaid expenses and other assets | (947) | ||||
Accounts payable and accrued expenses (includes restructuring) | (1,345) | ||||
Deferred income and allowances on sales to distributors | 18,175 | ||||
Pro forma as if previous standard was in effect | |||||
Consolidated Statement of Operations | |||||
Net loss | $ 4,003 | $ (25,790) | |||
Net (loss) income per share, basic and diluted (in usd per share) | $ 0.03 | $ (0.21) | |||
Consolidated Balance Sheets | |||||
Accounts receivable, net of allowance for doubtful accounts | $ 82,739 | $ 82,739 | |||
Inventories | 66,406 | 66,406 | |||
Prepaid expenses and other current assets | 17,575 | 17,575 | |||
Total assets | 632,875 | 632,875 | |||
Accounts payable and accrued expenses (includes restructuring) | 46,042 | 46,042 | |||
Deferred income and allowances on sales to distributors | 35,425 | 35,425 | |||
Accumulated deficit | (503,652) | (503,652) | |||
Total liabilities and stockholders' equity | 632,875 | 632,875 | |||
Consolidated Statement of Cash Flows | |||||
Net loss | 4,003 | (25,790) | |||
Accounts receivable, net | (27,635) | ||||
Inventories | 13,497 | ||||
Prepaid expenses and other assets | (12,676) | ||||
Accounts payable and accrued expenses (includes restructuring) | 316 | ||||
Deferred income and allowances on sales to distributors | 18,175 | ||||
Product | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 97,932 | 87,369 | 291,335 | 263,206 | |
Consolidated Statement of Operations | |||||
Cost of revenue | 43,120 | 38,032 | 137,430 | 120,395 | |
Consolidated Balance Sheets | |||||
Deferred income and allowances on sales to distributors | 0 | 0 | 17,250 | ||
Consolidated Statement of Cash Flows | |||||
Deferred income and allowances on sales to distributors | 0 | 3,862 | |||
Product | Adjustments | Accounting Standards Update 2014-09 | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | (1,302) | (13,651) | |||
Consolidated Statement of Operations | |||||
Cost of revenue | 144 | (5,400) | |||
Product | Pro forma as if previous standard was in effect | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 96,630 | 277,684 | |||
Consolidated Statement of Operations | |||||
Cost of revenue | 43,264 | 132,030 | |||
Licensing and services | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 3,552 | 4,602 | 11,487 | 27,489 | |
Consolidated Statement of Operations | |||||
Cost of revenue | 0 | $ 617 | 259 | 4,937 | |
Consolidated Balance Sheets | |||||
Deferred income and allowances on sales to distributors | 0 | 0 | $ 68 | ||
Consolidated Statement of Cash Flows | |||||
Deferred income and allowances on sales to distributors | (68) | $ (485) | |||
Licensing and services | Adjustments | Accounting Standards Update 2014-09 | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | (1,525) | 1,662 | |||
Licensing and services | Pro forma as if previous standard was in effect | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 2,027 | $ 13,149 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers (Contract Assets) (Details) $ in Thousands | 9 Months Ended |
Sep. 29, 2018USD ($) | |
Movement In Contract With Customer, Asset, Net [Roll Forward] | |
Beginning balance | $ 7,515 |
Revenues recorded during the period | 7,338 |
Transferred to accounts receivable or collected | (8,848) |
Ending balance | $ 6,005 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 101,484 | $ 91,971 | $ 302,822 | $ 290,695 |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 76,927 | 68,677 | 226,747 | 207,081 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 11,873 | 10,972 | 36,177 | 32,631 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 12,684 | 12,322 | 39,898 | 50,983 |
Product revenue - Distributors | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 82,969 | 73,273 | 257,716 | 218,923 |
Product revenue - Direct | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 14,963 | 14,096 | 33,619 | 44,283 |
Licensing and services revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 3,552 | $ 4,602 | $ 11,487 | $ 27,489 |
Net Income (Loss) per Share (De
Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 6,974 | $ (43,052) | $ (19,201) | $ (63,349) |
Shares used in basic Net income (loss) per share (in shares) | 127,816 | 122,990 | 125,578 | 122,393 |
Dilutive effect of stock options, RSUs and ESPP shares (in shares) | 1,658 | 0 | 0 | 0 |
Shares used in diluted Net income (loss) per share (in shares) | 129,474 | 122,990 | 125,578 | 122,393 |
Basic Net income (loss) per share (in usd per share) | $ 0.05 | $ (0.35) | $ (0.15) | $ (0.52) |
Diluted Net income (loss) per share (in usd per share) | $ 0.05 | $ (0.35) | $ (0.15) | $ (0.52) |
Stock options, RSUs, and ESPP shares excluded as they are antidilutive (in shares) | 2,299 | 7,221 | 8,284 | 6,018 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2018 | Dec. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Term of maturities of investments considered short-term | 2 years | |
Maturing within one year | $ 7,435 | $ 4,982 |
Maturing between one and two years | 2,165 | 0 |
Total marketable securities | $ 9,600 | $ 4,982 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Dec. 30, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Short-term marketable securities | $ 9,600 | $ 4,982 | |
Unrealized gain (loss) on marketable securities | 100 | $ (100) | |
Total | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Short-term marketable securities | 9,600 | 4,982 | |
Foreign currency forward exchange contracts, net | 105 | 77 | |
Total fair value of financial instruments | 9,705 | 5,059 | |
Level 1 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Short-term marketable securities | 9,600 | 4,982 | |
Foreign currency forward exchange contracts, net | 0 | 0 | |
Total fair value of financial instruments | 9,600 | 4,982 | |
Level 2 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Short-term marketable securities | 0 | 0 | |
Foreign currency forward exchange contracts, net | 105 | 77 | |
Total fair value of financial instruments | 105 | 77 | |
Level 3 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Short-term marketable securities | 0 | 0 | |
Foreign currency forward exchange contracts, net | 0 | 0 | |
Total fair value of financial instruments | $ 0 | $ 0 |
Discontinuation of Business U_2
Discontinuation of Business Unit (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Nonoperating expense | $ 88,525 | $ 129,439 | $ 304,222 | $ 337,594 | |
Impairment of acquired intangible assets | 586 | $ 11,900 | 36,198 | 12,486 | 36,198 |
Restructuring charges | 90 | 3,071 | 5,495 | 4,713 | |
Product | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cost of revenue | 43,120 | $ 38,032 | $ 137,430 | $ 120,395 | |
Discontinued Operations | Millimeter Wave Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Nonoperating expense | 24,000 | ||||
Impairment of acquired intangible assets | 11,900 | ||||
Restructuring charges | 4,100 | ||||
Discontinued Operations | Millimeter Wave Business | Product | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cost of revenue | $ 8,000 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Dec. 30, 2017 | |
Inventory Disclosure [Abstract] | ||||
Work in progress | $ 47,122 | $ 47,122 | $ 49,642 | |
Finished goods | 19,259 | 19,259 | 30,261 | |
Total inventories | 66,381 | 66,381 | $ 79,903 | |
Discontinued Operations | Millimeter Wave Business | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Inventory reserves | $ 8,300 | |||
Inventory adjustments | $ 300 | $ 8,000 |
Intangible Assets (Details)
Intangible Assets (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 29, 2018USD ($) | Jun. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Apr. 01, 2017USD ($) | Sep. 29, 2018USD ($) | Sep. 30, 2017USD ($)Installment | Dec. 30, 2017USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment of acquired intangible assets | $ 586 | $ 11,900 | $ 36,198 | $ 12,486 | $ 36,198 | ||
Proceeds from sale of intangible assets, number of installments | Installment | 2 | ||||||
Accumulated amortization, intangible assets | 98,900 | 98,900 | $ 100,300 | ||||
Amortization of acquired intangible assets | 3,837 | 8,654 | 14,246 | $ 26,219 | |||
Research and development | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Amortization of acquired intangible assets | 14 | 128 | 264 | 442 | |||
Amortization of acquired intangible assets | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Amortization of acquired intangible assets | $ 3,823 | $ 8,526 | $ 13,982 | 25,777 | |||
Patents | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Proceeds from sale of intangible assets | $ 18,000 | ||||||
Decrease of intangible assets, net of amortization | $ 3,500 | ||||||
Disposed of by sale | Hyderabad | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Ownership percentage | 100.00% | ||||||
Silicon Image, Inc | Developed Technology Rights | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment of acquired intangible assets | $ 36,200 |
Cost Method Investment and Co_3
Cost Method Investment and Collaborative Arrangement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | 45 Months Ended | |||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | Sep. 29, 2018 | Sep. 30, 2017 | Dec. 28, 2019 | Jan. 02, 2016 | Sep. 29, 2018 | |
Schedule of Investments [Line Items] | |||||||||||
Investment made during fiscal year | $ 1,000 | $ 5,000 | |||||||||
Ownership interest percentage | 22.70% | ||||||||||
Gross investments amount | $ 6,000 | ||||||||||
Decrease of cost method investment | $ (4,000) | ||||||||||
Cost method investments | $ 2,000 | $ 2,000 | 2,000 | ||||||||
Maximum loss exposure amount | 5,300 | 5,300 | 5,300 | ||||||||
Cost method investments, fair value | 2,000 | 2,000 | 2,000 | ||||||||
Prepaid royalties | 3,300 | 3,300 | $ 3,300 | ||||||||
Impairment of cost-method investment | 300 | $ 200 | $ 266 | $ 692 | |||||||
Payments for royalties | $ 900 | $ 900 | $ 900 | ||||||||
Forecast | |||||||||||
Schedule of Investments [Line Items] | |||||||||||
Payments for royalties | $ 875 | $ 5,000 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Payables and Accruals [Abstract] | ||
Trade accounts payable | $ 26,150 | $ 35,350 |
Liability for non-cancelable contracts | 7,471 | 7,232 |
Deferred rent | 3,809 | 3,834 |
Other accrued expenses (includes restructuring) | 9,499 | 7,989 |
Total accounts payable and accrued expenses | $ 46,929 | $ 54,405 |
Changes in Stockholders' Equi_3
Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 29, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Sep. 29, 2018 | Sep. 30, 2017 | Dec. 30, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance (in shares) | 123,895 | 123,895 | ||||
Beginning balance | $ 217,693 | $ 217,693 | ||||
Net loss for the nine months ended September 29, 2018 | $ 6,974 | $ (43,052) | (19,201) | $ (63,349) | ||
Unrealized gain related to marketable securities, net of tax | 16 | |||||
Recognized gain on redemption of marketable securities, previously unrealized | (18) | |||||
Translation adjustments, net of tax | (1,124) | |||||
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax | 26,451 | |||||
Stock-based compensation related to stock options, ESPP and RSUs | $ 9,908 | |||||
Accounting method transition adjustment | $ 27,401 | |||||
Ending balance (in shares) | 129,275 | 129,275 | ||||
Ending balance | $ 261,126 | $ 261,126 | ||||
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||
Common stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance (in shares) | 129,275 | 123,895 | 123,895 | |||
Beginning balance | $ 1,239 | $ 1,239 | ||||
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax (in shares) | 5,380 | |||||
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax | 54 | |||||
Ending balance (in shares) | 129,275 | |||||
Ending balance | $ 1,293 | 1,293 | ||||
Additional Paid-in capital | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | $ 695,768 | 695,768 | ||||
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax | 26,397 | |||||
Stock-based compensation related to stock options, ESPP and RSUs | 9,908 | |||||
Ending balance | 732,073 | 732,073 | ||||
Accumulated deficit | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | (477,862) | (477,862) | ||||
Net loss for the nine months ended September 29, 2018 | (19,201) | |||||
Accounting method transition adjustment | $ 27,401 | |||||
Ending balance | (469,662) | (469,662) | ||||
Accumulated other comprehensive loss | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | $ (1,452) | (1,452) | ||||
Unrealized gain related to marketable securities, net of tax | 16 | |||||
Recognized gain on redemption of marketable securities, previously unrealized | (18) | |||||
Translation adjustments, net of tax | (1,124) | |||||
Ending balance | $ (2,578) | $ (2,578) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Dec. 30, 2017 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Income tax provision (benefit) | $ 33,000 | $ (331,000) | $ 1,973,000 | $ 234,000 | |
Unrecognized tax benefits that could significantly change during the next twelve months | 1,600,000 | 1,600,000 | |||
Unrecognized tax benefits, associated interest and penalties that could significantly change within the next twelve months | 100,000 | 100,000 | |||
Total potential decrease in UTB | 1,700,000 | 1,700,000 | |||
Tax credit carryforward, amount | $ 59,200,000 | ||||
Deferred tax assets, valuation allowance | 25,900,000 | 25,900,000 | |||
Bermuda | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Income tax provision (benefit) | $ 0 | ||||
Statutory income tax rate | 0.00% | ||||
Federal | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Operating loss carryforwards | 351,400,000 | ||||
Tax credit carryforward, amount | 50,200,000 | ||||
State and Local Jurisdiction | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Operating loss carryforwards | 162,900,000 | ||||
Tax credit carryforward, amount | 59,200,000 | ||||
Other Long-term Liabilities | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Uncertain tax positions | $ 26,400,000 | $ 26,400,000 | 26,900,000 | ||
No Expiration Date | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Tax credit carryforward, amount | $ 57,900,000 |
Restructuring (Narrative) (Deta
Restructuring (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 90,000 | $ 3,071,000 | $ 5,495,000 | $ 4,713,000 | |
June 2018 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, cost incurred to date | 4,100,000 | 4,100,000 | |||
June 2017 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, cost incurred to date | 9,400,000 | 9,400,000 | |||
Restructuring charges | 100,000 | $ 3,100,000 | 1,400,000 | 5,500,000 | |
September 2015 Reduction | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, cost incurred to date | 7,200,000 | 7,200,000 | |||
Restructuring charges | 0 | 0 | (700,000) | ||
March 2015 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, cost incurred to date | 20,500,000 | 20,500,000 | |||
Restructuring charges | 0 | 0 | $ (100,000) | ||
Minimum | June 2017 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, expected cost | 21,500,000 | 21,500,000 | |||
Maximum | June 2017 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, expected cost | $ 23,000,000 | $ 23,000,000 | |||
Hyderabad | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Ownership percentage | 100.00% |
Restructuring (Schedule of Rest
Restructuring (Schedule of Restructuring Activities) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of the period | $ 2,447 | $ 1,874 |
Restructuring charges | 5,495 | 4,713 |
Costs paid or otherwise settled | (6,497) | (4,086) |
Balance at the end of the period | 1,445 | 2,501 |
Severance & related | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of the period | 1,192 | 801 |
Restructuring charges | 4,034 | 2,433 |
Costs paid or otherwise settled | (4,662) | (1,707) |
Balance at the end of the period | 564 | 1,527 |
Lease Termination & Fixed Assets | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of the period | 870 | 1,036 |
Restructuring charges | 437 | 816 |
Costs paid or otherwise settled | (667) | (897) |
Balance at the end of the period | 640 | 955 |
Software Contracts & Engineering Tools | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of the period | 360 | 25 |
Restructuring charges | 913 | 686 |
Costs paid or otherwise settled | (1,055) | (711) |
Balance at the end of the period | 218 | 0 |
Other | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of the period | 25 | 12 |
Restructuring charges | 111 | 778 |
Costs paid or otherwise settled | (113) | (771) |
Balance at the end of the period | $ 23 | $ 19 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | Mar. 10, 2015 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 29, 2018 | Dec. 30, 2017 |
Debt Instrument [Line Items] | ||||||
Principal amount | $ 278,908,000 | $ 278,908,000 | ||||
Line of Credit | Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 350,000,000 | 278,908,000 | 278,908,000 | $ 306,791,000 | ||
Proceeds from debt | 346,500,000 | |||||
Debt instrument, unamortized discount | 3,500,000 | $ 3,769,000 | $ 3,769,000 | $ 5,616,000 | ||
Payment of debt issuance cost | $ 8,300,000 | |||||
Debt instrument, interest rate, effective percentage | 7.03% | 7.03% | ||||
Debt instrument, periodic payment | $ 900,000 | $ 900,000 | $ 900,000 | $ 900,000 | ||
Required annual excess cash flow payment | 200,000 | |||||
Debt instrument, payment, percentage | 75.00% | |||||
Debt principal payment | $ 15,000,000 | $ 10,000,000 | ||||
Line of Credit | Term Loan | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, variable interest floor rate | 1.00% | |||||
Debt instrument, basis spread on variable rate | 4.25% | |||||
Minimum | Line of Credit | Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, payment, percentage | 0.00% | |||||
Maximum | Line of Credit | Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, payment, percentage | 75.00% |
Long-Term Debt (Debt Schedule)
Long-Term Debt (Debt Schedule) (Details) - USD ($) | Sep. 29, 2018 | Dec. 30, 2017 | Mar. 10, 2015 |
Debt Instrument [Line Items] | |||
Principal amount | $ 278,908,000 | ||
Line of Credit | Term Loan | |||
Debt Instrument [Line Items] | |||
Principal amount | 278,908,000 | $ 306,791,000 | $ 350,000,000 |
Unamortized original issue discount and debt costs | (3,769,000) | (5,616,000) | $ (3,500,000) |
Less: Current portion of long-term debt | (14,104,000) | (1,508,000) | |
Long-term debt | $ 261,035,000 | $ 299,667,000 |
Long-Term Debt (Interest Expens
Long-Term Debt (Interest Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Debt Disclosure [Abstract] | ||||
Contractual interest | $ 4,711 | $ 3,492 | $ 14,001 | $ 12,202 |
Amortization of debt issuance costs and discount | 789 | 326 | 1,847 | 1,680 |
Total interest expense related to the Term Loan | $ 5,500 | $ 3,818 | $ 15,848 | $ 13,882 |
Long-Term Debt (Future Principa
Long-Term Debt (Future Principal Payments) (Details) $ in Thousands | Sep. 29, 2018USD ($) |
Debt Disclosure [Abstract] | |
2018 (remaining 3 months) | $ 875 |
2,019 | 15,914 |
2,020 | 56,175 |
2,021 | 205,944 |
Total | $ 278,908 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock-based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 2,708 | $ 2,514 | $ 9,908 | $ 9,286 |
Cost of products sold | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 219 | 154 | 652 | 562 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 926 | 980 | 2,970 | 4,129 |
Selling, general, and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 1,563 | $ 1,380 | $ 6,286 | $ 4,595 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 29, 2018USD ($)Period | Sep. 30, 2017USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 2,708 | $ 2,514 | $ 9,908 | $ 9,286 |
CEO | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 1,400 | |||
CEO | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Award vesting rights, number of consecutive trailing four-quarter periods for measurement | Period | 2 | |||
Corporate Vice President Of Research And Development [Member] | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Executives | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 100 | $ 100 | $ 600 | $ 400 |
Executives | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 2 years | |||
Comparison period | 2 years | |||
Executives | Minimum | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights, percentage | 0.00% | |||
Executives | Maximum | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights, percentage | 200.00% | |||
TSR below 25th percentile | Corporate Vice President Of Research And Development [Member] | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights, percentage | 0.00% | |||
TSR relative to PHLX Semiconductor Sector Index 50th percentile achievement | CEO | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights, percentage | 100.00% | |||
TSR relative to PHLX Semiconductor Sector Index 50th percentile achievement | Corporate Vice President Of Research And Development [Member] | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights, percentage | 100.00% | |||
TSR relative to PHLX Semiconductor Sector Index 75th percentile achievement | CEO | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting multiplier | 250.00% | |||
TSR relative to PHLX Semiconductor Sector Index 75th percentile achievement | Corporate Vice President Of Research And Development [Member] | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting multiplier | 200.00% |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Activity for Stock Options with Market Condition) (Details) - Performance Shares shares in Thousands | 9 Months Ended |
Sep. 29, 2018shares | |
Unvested | |
Beginning balance, shares | 707 |
Granted, shares | 573 |
Vested, shares | (31) |
Canceled, shares | (429) |
Ending balance, shares | 820 |
Vested | |
Beginning balance, shares | 83 |
Vested, shares | 31 |
Exercised, shares | (78) |
Canceled, shares | (10) |
Ending balance, shares | 26 |
Total | |
Beginning balance, shares | 790 |
Granted, shares | 573 |
Vested, shares | 31 |
Exercised, shares | (78) |
Canceled, shares | (439) |
Ending balance, shares | 846 |
Contingencies (Details)
Contingencies (Details) | Sep. 29, 2018USD ($) |
Loss Contingencies [Line Items] | |
Accrued liability related to income tax examination | $ 0 |
Minimum | |
Loss Contingencies [Line Items] | |
Loss contingency estimate (less than) | 0 |
Maximum | |
Loss Contingencies [Line Items] | |
Loss contingency estimate (less than) | $ 2,000,000 |
Segment and Geographic Inform_3
Segment and Geographic Information (Details) $ in Thousands | 9 Months Ended | |
Sep. 29, 2018USD ($)segment | Dec. 30, 2017USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Number of operating segments | segment | 1 | |
Total property and equipment, net | $ 35,724 | $ 40,423 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 27,893 | 30,338 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 2,357 | 4,632 |
Philippines | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 3,472 | 3,883 |
Taiwan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 1,062 | 958 |
Japan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 319 | 313 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 621 | 299 |
Foreign countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 7,831 | $ 10,085 |