Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Feb. 20, 2020 | Jun. 29, 2019 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | LATTICE SEMICONDUCTOR CORP | ||
Entity Central Index Key | 0000855658 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 28, 2019 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-28 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 134,318,226 | ||
Entity Shell Company | false | ||
Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Filer | No | ||
Entity Public Float | $ 1,242,396,539 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Statement [Abstract] | |||
Revenue | $ 404,093 | $ 398,799 | $ 385,961 |
Cost of revenue | 165,671 | 179,360 | 169,382 |
Gross margin | 238,422 | 219,439 | 216,579 |
Operating expenses: | |||
Research and development | 78,617 | 82,449 | 103,357 |
Selling, general, and administrative | 82,542 | 91,054 | 90,718 |
Amortization of acquired intangible assets | 13,558 | 17,690 | 31,340 |
Restructuring charges | 4,664 | 17,349 | 7,196 |
Impairment of acquired intangible assets | 0 | 12,486 | 32,431 |
Acquisition related charges | 0 | 1,531 | 3,781 |
Gain on sale of building | 0 | 0 | (4,624) |
Total operating expenses | 179,381 | 222,559 | 264,199 |
Income (loss) from operations | 59,041 | (3,120) | (47,620) |
Interest expense | (11,731) | (20,600) | (18,807) |
Other expense, net | (2,245) | (249) | (3,286) |
Income (loss) before income taxes | 45,065 | (23,969) | (69,713) |
Income tax expense | 1,572 | 2,353 | 849 |
Net income (loss) | $ 43,493 | $ (26,322) | $ (70,562) |
Net income (loss) per share: | |||
Basic (in usd per share) | $ 0.33 | $ (0.21) | $ (0.58) |
Diluted (in usd per share) | $ 0.32 | $ (0.21) | $ (0.58) |
Shares used in per share calculations: | |||
Basic (in shares) | 132,471 | 126,564 | 122,677 |
Diluted (in shares) | 137,274 | 126,564 | 122,677 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 43,493 | $ (26,322) | $ (70,562) |
Other comprehensive income (loss): | |||
Unrealized gain (loss) related to marketable securities, net of tax | 42 | 41 | (73) |
Reclassification adjustment for (gains) losses related to marketable securities included in Other expense, net of tax | (53) | (18) | 252 |
Translation adjustment, net of tax | 341 | (1,271) | 2,620 |
Change in actuarial valuation of defined benefit pension | (602) | 369 | (95) |
Comprehensive income (loss) | $ 43,221 | $ (27,201) | $ (67,858) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 118,081 | $ 119,051 |
Short-term marketable securities | 0 | 9,624 |
Accounts receivable, net of allowance for doubtful accounts | 64,917 | 60,890 |
Inventories | 54,980 | 67,096 |
Prepaid expenses and other current assets | 24,452 | 27,762 |
Total current assets | 262,430 | 284,423 |
Property and equipment, net | 39,230 | 34,883 |
Operating lease right-of-use assets | 23,591 | 0 |
Intangible assets, net | 6,977 | 21,325 |
Goodwill | 267,514 | 267,514 |
Deferred income taxes | 478 | 215 |
Other long-term assets | 11,796 | 15,327 |
Total assets | 612,016 | 623,687 |
Current liabilities: | ||
Accounts payable and accrued expenses (includes restructuring) | 60,255 | 51,763 |
Accrued payroll obligations | 13,404 | 9,365 |
Current portion of long-term debt | 21,474 | 8,290 |
Current portion of operating lease liabilities | 4,686 | |
Total current liabilities | 99,819 | 69,418 |
Long-term debt, net of current portion | 125,072 | 251,357 |
Long-term operating lease liabilities, net of current portion | 21,438 | |
Other long-term liabilities | 38,028 | 44,455 |
Total liabilities | 284,357 | 365,230 |
Commitments and contingencies (Notes 8 and 13) | ||
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; 133,883,000 shares issued and outstanding as of December 28, 2019 and 129,728,000 shares issued and outstanding as of December 29, 2018 | 1,339 | 1,297 |
Additional paid-in capital | 762,213 | 736,274 |
Accumulated deficit | (433,290) | (476,783) |
Accumulated other comprehensive loss | (2,603) | (2,331) |
Total stockholders' equity | 327,659 | 258,457 |
Total liabilities and stockholders' equity | $ 612,016 | $ 623,687 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 28, 2019 | Dec. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 133,883,000 | 129,728,000 |
Common stock, shares outstanding | 133,883,000 | 129,728,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | |
Cash flows from operating activities: | |||
Net income (loss) | $ 43,493 | $ (26,322) | $ (70,562) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 33,056 | 39,261 | 57,861 |
Impairment of acquired intangible assets | 0 | 12,486 | 32,431 |
Stock-based compensation expense | 18,899 | 13,646 | 12,543 |
Reduction in the carrying amount of right-of-use assets | 5,797 | 0 | 0 |
Loss on re-financing of long-term debt | 2,235 | 0 | 0 |
Amortization of debt issuance costs and discount | 1,659 | 2,230 | 1,982 |
Impairment of operating lease right-of-use asset (recorded in Restructuring charges) | 977 | ||
Impairment of operating lease right-of-use asset (recorded in Restructuring charges) | 4,664 | 17,349 | 7,196 |
Gain on sale of building | 0 | 0 | (4,624) |
Loss on sale of assets and business units | 0 | 0 | 1,496 |
Other non-cash adjustments | (374) | (79) | 1,707 |
Changes in assets and liabilities: | |||
Accounts receivable, net | (4,027) | (3,978) | 44,613 |
Inventories | 12,116 | 13,177 | (902) |
Prepaid expenses and other assets | 3,740 | (11,667) | 889 |
Accounts payable and accrued expenses (includes restructuring) | 9,261 | 13,325 | (23,588) |
Accrued payroll obligations | 4,039 | (1,051) | 726 |
Operating lease liabilities, current and long-term portions | (6,896) | ||
Income taxes payable | 162 | 498 | (556) |
Deferred income and allowances on sales to distributors | 0 | ||
Net cash provided by operating activities | 124,137 | 51,458 | 38,514 |
Cash flows from investing activities: | |||
Proceeds from sales of and maturities of short-term marketable securities | 9,655 | 5,000 | 12,689 |
Purchases of marketable securities | 0 | (9,603) | (7,420) |
Proceeds from sale of building | 0 | 0 | 7,895 |
Cash paid for costs of sale of building | 0 | 0 | (1,004) |
Capital expenditures | (15,590) | (8,384) | (12,855) |
Proceeds from sale of assets and business units, net of cash sold | 0 | 0 | 967 |
Repayment received on short-term loan to cost-method investee | 0 | 0 | 2,000 |
Short-term loan to cost-method investee | 0 | 0 | (2,000) |
Cash paid for software licenses | (9,601) | (8,123) | (8,532) |
Net cash used in investing activities | (15,536) | (21,110) | (8,260) |
Cash flows from financing activities: | |||
Restricted stock unit tax withholdings | (10,084) | (2,370) | (3,267) |
Proceeds from issuance of common stock | 17,166 | 29,288 | 6,085 |
Proceeds from issuance of long-term debt | 206,500 | 0 | 0 |
Original issue discount and debt issuance costs | (2,086) | 0 | 0 |
Repayment of debt | (321,408) | (43,759) | (35,429) |
Net cash used in financing activities | (109,912) | (16,841) | (32,611) |
Effect of exchange rate change on cash | 341 | (1,271) | 2,620 |
Net (decrease) increase in cash and cash equivalents | (970) | 12,236 | 263 |
Beginning cash and cash equivalents | 119,051 | 106,815 | 106,552 |
Ending cash and cash equivalents | 118,081 | 119,051 | 106,815 |
Supplemental disclosure of cash flow information and non-cash investing and financing activities: | |||
Interest paid | 10,995 | 18,607 | 20,649 |
Operating lease payments | 8,425 | ||
Income taxes paid, net of refunds | 3,393 | 3,054 | 2,387 |
Accrued purchases of property and equipment | 826 | 110 | 588 |
Operating lease right-of-use assets obtained in exchange for lease obligations | 747 | ||
Note receivable resulting from sale of assets and business units | 0 | 0 | 3,050 |
Product | |||
Changes in assets and liabilities: | |||
Deferred income and allowances on sales to distributors | 0 | 0 | (15,007) |
Licensing and services | |||
Changes in assets and liabilities: | |||
Deferred income and allowances on sales to distributors | $ 0 | $ (68) | $ (495) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common stock | Additional Paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | |
Beginning balances (in shares) at Dec. 31, 2016 | 121,645 | |||||
Beginning balances at Dec. 31, 2016 | $ 270,430 | $ 1,216 | $ 680,315 | $ (406,945) | $ (4,156) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (70,562) | (70,562) | ||||
Unrealized gain (loss) related to marketable securities, net of tax | (73) | (73) | ||||
Recognized gain (loss) on redemption of marketable securities, previously unrealized | 252 | 252 | ||||
Translation adjustments, net of tax | 2,620 | 2,620 | ||||
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of shares withheld for employee taxes (in shares) | 2,250 | |||||
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of shares withheld for employee taxes | 2,818 | $ 23 | 2,795 | |||
Stock-based compensation expense related to stock options, ESPP and RSUs | [1] | 12,658 | 12,658 | |||
Defined benefit pension, net of actuarial valuation adjustments | (95) | (95) | ||||
Ending balances (in shares) at Dec. 30, 2017 | 123,895 | |||||
Ending balances at Dec. 30, 2017 | 217,693 | $ 1,239 | 695,768 | (477,862) | (1,452) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (26,322) | (26,322) | ||||
Unrealized gain (loss) related to marketable securities, net of tax | 41 | 41 | ||||
Recognized gain (loss) on redemption of marketable securities, previously unrealized | (18) | (18) | ||||
Translation adjustments, net of tax | (1,271) | (1,271) | ||||
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of shares withheld for employee taxes (in shares) | 5,833 | |||||
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of shares withheld for employee taxes | 26,918 | $ 58 | 26,860 | |||
Stock-based compensation expense related to stock options, ESPP and RSUs | 13,646 | 13,646 | ||||
Defined benefit pension, net of actuarial valuation adjustments | $ 369 | 369 | ||||
Ending balances (in shares) at Dec. 29, 2018 | 129,728 | 129,728 | ||||
Ending balances at Dec. 29, 2018 | $ 258,457 | $ 1,297 | 736,274 | (476,783) | (2,331) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 43,493 | 43,493 | ||||
Unrealized gain (loss) related to marketable securities, net of tax | 42 | 42 | ||||
Recognized gain (loss) on redemption of marketable securities, previously unrealized | (53) | (53) | ||||
Translation adjustments, net of tax | 341 | 341 | ||||
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of shares withheld for employee taxes (in shares) | 4,155 | |||||
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of shares withheld for employee taxes | 7,082 | $ 42 | 7,040 | |||
Stock-based compensation expense related to stock options, ESPP and RSUs | 18,899 | 18,899 | ||||
Defined benefit pension, net of actuarial valuation adjustments | $ (602) | (602) | ||||
Ending balances (in shares) at Dec. 28, 2019 | 133,883 | 133,883 | ||||
Ending balances at Dec. 28, 2019 | $ 327,659 | $ 1,339 | $ 762,213 | $ (433,290) | $ (2,603) | |
[1] | In the third quarter of fiscal 2017, in relation to the sale of 100% of the equity of our Hyderabad, India subsidiary and certain assets related to our SimplayLabs testing and certification business, certain stock compensation was accelerated due to a change of control agreement. As a result of this acceleration,the equity effect of stock compensation shown above includes approximately $0.1 million that was charged to restructuring expense as part of the June2017 Plan (see "Note 7 - Restructuring"). |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) $ in Thousands | 3 Months Ended |
Sep. 30, 2017USD ($) | |
June 2017 Plan | |
Stock-based compensation expense related to stock options, ESPP and RSUs (1) | $ 100 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation and Use of Estimates The accompanying Consolidated Financial Statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). They include the accounts of Lattice and its subsidiaries after the elimination of all intercompany balances and transactions. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments affecting the amounts reported in our consolidated condensed financial statements and the accompanying notes. The actual results that we experience may differ materially from our estimates. Fiscal Reporting Periods We report based on a 52 or 53-week fiscal year ending on the Saturday closest to December 31. Our fiscal 2019, 2018, and 2017 were 52-week years that ended December 28, 2019 , December 29, 2018 , and December 30, 2017 respectively. Our fiscal 2020 will be a 53-week year and will end on January 2, 2021 . All references to quarterly or annual financial results are references to the results for the relevant fiscal period. Concentrations of Risk Potential exposure to concentrations of risk may impact revenue, accounts receivable, and supply of wafers for our new products. In the periods covered by this report, no end customer accounted for more than 10% of total revenue. Distributors have historically accounted for a significant portion of our total revenue. Our two largest distributor groups, the Weikeng Group ("Weikeng") and Arrow Electronics, Inc. ("Arrow"), each account for substantial portions of our total revenue and our net accounts receivable. Revenue attributable to distributors as a percentage of total revenue is presented in the following table: Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Weikeng Group 30 % 25 % 27 % Arrow Electronics Inc. 25 29 24 All others 27 29 26 Revenue attributable to distributors* 82 % 83 % 77 % * 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. At December 28, 2019 and December 29, 2018 , Arrow accounted for 40% and 41% , respectively, and Weikeng accounted for 38% and 23% , respectively, of net accounts receivable. No other distributor group or end customer accounted for more than 10% of net accounts receivable at these dates. Concentration of credit risk with respect to accounts receivable 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. We rely on a limited number of foundries for our wafer purchases. 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, or create delays in production or shipments, among other factors. Cash and 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, which approximates fair value. Deposits with financial institutions at times exceed Federal Deposit Insurance Corporation insurance limits. Foreign Exchange and Translation of Foreign Currencies While our revenues and the majority of our expenses are denominated in U.S. dollars, we also have international subsidiaries and branch operations that conduct some transactions in foreign currencies. Gains or losses from foreign exchange rate fluctuations on balances denominated in foreign currencies are reflected in Other expense, net . We translate accounts denominated in foreign currencies in accordance with ASC 830, “ Foreign Currency Matters ,” using the current rate method under which asset and liability accounts are translated at the current rate, while stockholders' equity accounts are translated at the appropriate historical rates, and revenue and expense accounts are translated at average monthly exchange rates. Translation adjustments related to the consolidation of foreign subsidiary financial statements are reflected in Accumulated other comprehensive loss in Stockholders' equity (See our Consolidated Statements of Stockholders' Equity ). Revenue Recognition We adopted ASC 606 effective on December 31, 2017, the first day of our 2018 fiscal year, 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. 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, at which point the selling price of these products became fixed and determinable, and certain licensing revenues were not recognizable under previous GAAP due to the fixed and determinable revenue recognition criteria not being met. Under ASC 606, we recognize revenue when we satisfy performance obligations as evidenced by the transfer of control of our products or services to customers. We consider customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. 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. The majority of our revenue is derived from product sales. For each contract, we consider our promise to transfer each distinct product to be the identified performance obligations. Revenue for product sales is recognized at the time of product shipment, as determined by the agreed upon contract shipping terms. Our Licensing and services revenue is comprised of revenue from our intellectual property ("IP") core licensing activity, patent monetization activities, design services, and royalty and adopter fee revenue from our standards activities. These activities are complementary to our product sales and help us to monetize our IP associated with our technology and standards. We consider licensing arrangements with our customers and agreements with the standards consortia of which we are a member to be 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. We recognize license revenue at the point in time that control of the license transfers to the customer, which is generally upon delivery, or as usage occurs. We measure revenue based on the amount of consideration we expect to be entitled to in exchange for products or services. Variable consideration is estimated and reflected as an adjustment to the transaction price. We determine variable consideration, which consists primarily of various sales price concessions, by estimating the most likely amount of consideration we expect to receive from the customer 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. Sales rebates earned by customers are offset against their receivable balances. Rebates earned by customers when they do not have outstanding receivable balances are recorded within other accrued liabilities. The impacts of distributor sales price reductions resulting from price protection agreements are also estimated based on historical analysis of such activity and are reflected as a reduction in net revenue. Our HDMI and MHL standards revenue, as well as certain IP licenses, include variable consideration in the form of usage-based royalties. 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 cases, 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. Under the practical expedient provided by ASC 340, we generally expense sales commissions when incurred because the amortization period would be 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. Inventories and Cost of Revenue Inventories are recorded at the lower of average cost determined on a first-in-first-out basis or market. We establish provisions for inventory if it is obsolete or we hold quantities which are in excess of projected customer demand. The creation of such provisions results in a write-down of inventory to net realizable value and a charge to Cost of revenue. Shipping and handling costs are included in Cost of revenue in our Consolidated Statements of Operations. Property and Equipment Property and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method 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. We capitalize costs for the fabrication of masks used by our foundry partners to manufacture our products. The capitalized mask costs begin depreciating to Cost of revenue once the products go into production, and depreciation is straight-lined over a three-year period, which is the expected useful life of the mask. 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. Impairment of Long-Lived Assets Long-lived assets, which consist primarily of property and equipment and amortizable intangible assets, are carried on our financial statements based on their cost less accumulated depreciation or amortization. We monitor the carrying value of our long-lived assets for potential impairment and test the recoverability of such assets whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. These events or changes in circumstances, including management decisions pertaining to such assets, are referred to as impairment indicators. If an impairment indicator occurs, we perform a test of recoverability by comparing the carrying value of the asset group to its undiscounted expected future cash flows. If the carrying values are in excess of undiscounted expected future cash flows, we measure any impairment by comparing the fair value of the asset group to its carrying value. Fair value is generally determined by considering (i) internally developed discounted projected cash flow analysis of the asset group; (ii) actual third-party valuations; and/or (iii) information available regarding the current market for similar asset groups. If the fair value of the asset group is determined to be less than the carrying amount of the asset group, an impairment in the amount of the difference is recorded in the period that the impairment indicator occurs and is included in our Consolidated Statements of Operations. Estimating future cash flows requires significant judgment and projections may vary from the cash flows eventually realized, which could impact our ability to accurately assess whether an asset has been impaired. There has been no occurrence of events to date that would trigger an impairment analysis of property and equipment. The results of our assessments of amortizable intangible assets are detailed in " Note 9 - Intangible Assets ." Valuation of Goodwill Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is not amortized, but is instead tested for impairment annually during the fourth quarter and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. When evaluating whether goodwill is impaired, we make a qualitative assessment to determine if it is more likely than not that the reporting unit's fair value is less than the carrying amount. If the qualitative assessment determines that it is more likely than not that the fair value is less than the carrying amount, the fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit is less than its carrying value, then goodwill impairment exists for the reporting unit. The impairment loss, if any, is recognized for the amount by which the carrying value exceeds the fair value. If the fair value of the reporting unit exceeds its carrying value, no further impairment analysis is needed. For purposes of testing goodwill for impairment, we currently operate as a single reporting unit: the core Lattice ("Core") business, which includes intellectual property and semiconductor devices. We do not expect goodwill impairment to be tax deductible for income tax purposes. We determined that the strategic decision to discontinue our millimeter wave business in the second quarter of 2018 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 fiscal 2018. No impairment charges relating to goodwill were recorded for either fiscal 2019 or 2017 as no indicators of impairment were present. Leases We adopted ASC 842, " Leases ," effective on December 30, 2018, the first day of our 2019 fiscal year, using the modified retrospective transition method. The new standard requires lessees to record assets and liabilities on the balance sheet for all leases with terms longer than 12 months. We elected the "package of practical expedients" that would allow us to carryforward our historical lease classifications, not reassess historical contracts to determine if they contain leases, and not reassess the initial direct costs for any existing leases. We also elected the practical expedient to not separate lease and non-lease components, which we have applied to all asset classes. Concurrent with our adoption of Topic 842, we have early adopted ASU 2019-01, Leases (Topic 842): Codification Improvements, which grants disclosure relief for interim periods during the year in which a company adopted Topic 842. Right-of-use ("ROU") assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized on the commencement date of the lease based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we determine the present value of lease payments using an incremental borrowing rate based on information from our commercial bank for an equivalent borrowing and term in the respective region as of the lease commencement date. At inception, we determine if an arrangement is a lease, if it includes options to extend or terminate the lease, and if it is reasonably certain that we will exercise the options. Lease cost, representing lease payments over the term of the lease and any capitalizable direct costs less any incentives received, is recognized on a straight-line basis over the lease term as lease expense. We have operating leases for corporate offices, sales offices, research and development facilities, storage facilities, and a data center. The exercise of lease renewal options is at our sole discretion. When deemed reasonably certain of exercise, the renewal options are included in the determination of the lease term and lease payment obligation, respectively. For our leases that contain variable lease payments, residual value guarantees, or restrictive covenants, we have concluded that these inputs are not significant to the determination of the ROU asset and lease liability. Research and Development Research and development expenses include costs for compensation and benefits, engineering wafers, depreciation, licenses, and outside engineering services. These expenditures are for the design of new products, intellectual property cores, processes, packaging, and software solutions. Research and development costs are expensed as incurred. Restructuring Charges Expenses associated with exit or disposal activities are recognized when incurred under ASC 420, “ Exit or Disposal Cost Obligations ,” for everything except severance expenses and vacated leased facilities. Because we have a history of paying severance benefits, the cost of severance benefits associated with a restructuring plan is recorded when such costs are probable and the amount can be reasonably estimated in accordance with ASC 712, “ Compensation - Nonretirement Postemployment Benefits. ” When leased facilities are vacated, the amount of any ROU asset impairment is calculated in accordance with ASC 360, " Property, Plant, and Equipment " and recorded as a part of restructuring charges. Expenses from other exit or disposal activities, including the cancellation of software contracts and engineering tools or the abandonment of long-lived assets, is recorded as a part of restructuring charges. Accounting for Income Taxes Our provision for income tax is comprised of our current tax liability and changes in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements using enacted tax rates and laws that will be in effect when the difference is expected to reverse. Valuation allowances are provided to reduce deferred tax assets to an amount that in management’s judgment is more-likely-than-not to be recoverable against future taxable income. The determination of a valuation allowance and when it should be released requires complex judgment. In assessing the ability to realize deferred tax assets, we evaluate both positive and negative evidence that may exist and consider whether it is more-likely-than-not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Any adjustment to the net deferred tax asset valuation allowance is recorded in the Consolidated Statements of Operations for the period that the adjustment is determined to be required. Our income tax calculations are based on application of the respective U.S. federal, state or foreign tax law . Our tax filings, however, are subject to audit by the relevant tax authorities. Accordingly, we recognize tax liabilities based upon our estimate of whether, and the extent to which, additional taxes will be due when such estimates are more-likely-than-not to be sustained. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. To the extent the final tax liabilities are different than the amounts originally accrued, the increases or decreases as well as any interest or penalties are recorded as income tax expense or benefit in the Consolidated Statements of Operations. Stock-Based Compensation We use the Black-Scholes option pricing model to estimate the fair value of substantially all share-based awards consistent with the provisions of ASC 718, “ Compensation - Stock Compensation .” We have also granted stock options and RSUs with a market condition to certain executives. We determined and fixed the fair value of the awards with a market condition using a lattice-based option-pricing model. The valuation of these awards incorporated a Monte-Carlo simulation, and considered the likelihood that we would achieve the market condition. The awards with a market condition generally have a two - or three -year vesting period and vest between 0% and 250% of the target amount, based on the Company's relative Total Shareholder Return ("TSR") when compared to the TSR of a component of companies of the PHLX Semiconductor Sector Index over the measurement period. TSR is a measure of stock price appreciation plus dividends paid, if any, in the performance period. We have also granted RSUs with a performance condition to our President and Chief Executive Officer, which 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. We assess the probability of achieving the performance condition on a quarterly basis. We valued the RSUs with a performance condition using the market price on the day of grant. Segment Information As of December 28, 2019 , we had one operating segment: the core Lattice business, which includes semiconductor devices, evaluation boards, development hardware, and related intellectual property licensing, services, and sales. Our chief operating decision maker is the Chief Executive Officer, who reviews operating results and financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. New Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This guidance requires entities to use a current expected credit loss (“CECL”) methodology to measure impairments of certain financial assets and to recognize an allowance for its estimate of lifetime expected credit losses. The new standard will become effective for our fiscal year 2020, which begins on December 29, 2019. We are evaluating the implementation of ASC 326 and expect it will not have a material impact on our consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which adds new guidance for accounting for tax law changes, year-to-date losses in interim periods, and determining how to apply the income tax guidance to franchise taxes that are partially based on income, as well as other changes to simplify accounting for income taxes. The ASU is effective for calendar year-end public business entities on January 1, 2021. Entities may early adopt the ASU in any interim period for which financial statements have not yet been issued (or made available for issuance). We are currently assessing the impact of ASU 2019-12 on our consolidated financial statements and related disclosures. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Our calculation of the diluted share count includes the number of shares from our equity awards with market conditions or performance conditions that would be issuable under the terms of such awards at the end of the reporting period. For equity awards with a market condition, the maximum number of shares issuable are included in the diluted share count as of December 28, 2019 , as the market condition would have been achieved at the highest level of vesting if measured as of the end of the reporting period. For equity awards with a performance condition, no shares are included in the diluted share count as of December 28, 2019 , as vesting of these awards is contingent upon achievement of the performance condition over two consecutive trailing four-quarter periods, which has not yet been achieved. See " Note 10 - Stock-Based Compensation Plans " to our consolidated financial statements for further discussion of our equity awards with market or performance conditions. A summary of basic and diluted Net income (loss) per share is presented in the following table: Year Ended (in thousands, except per share data) December 28, 2019 December 29, 2018 December 30, 2017 Net income (loss) $ 43,493 $ (26,322 ) $ (70,562 ) Shares used in basic Net income (loss) per share 132,471 126,564 122,677 Dilutive effect of stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition 4,803 — — Shares used in diluted Net (loss) income per share 137,274 126,564 122,677 Basic Net income (loss) per share $ 0.33 $ (0.21 ) $ (0.58 ) Diluted Net income (loss) per share $ 0.32 $ (0.21 ) $ (0.58 ) The computation of diluted Net income (loss) per share excludes the effects of stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition that are antidilutive, aggregating approximately the following number of shares: Year Ended (in thousands) December 28, 2019 December 29, 2018 December 30, 2017 Stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition excluded as they are antidilutive 890 7,567 6,622 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Disaggregation of Revenue The following tables provide disaggregation of revenue from contracts with customers by major class of revenue, revenue by channel, 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 Year Ended * (In thousands) December 28, 2019 December 29, 2018 December 30, 2017 Product $ 382,548 95% $ 380,468 95% $ 356,502 92% Licensing and services 21,545 5% 18,331 5% 29,459 8% Total revenue $ 404,093 100% $ 398,799 100% $ 385,961 100% Revenue by Channel Year Ended * (In thousands) December 28, 2019 December 29, 2018 December 30, 2017 Product revenue - Distributors $ 331,941 82% $ 330,719 83% $ 297,736 77% Product revenue - Direct 50,607 13% 49,749 12% 58,766 15% Licensing and services revenue 21,545 5% 18,331 5% 29,459 8% Total revenue $ 404,093 100% $ 398,799 100% $ 385,961 100% Revenue by Geographical Market Year Ended * (In thousands) December 28, 2019 December 29, 2018 December 30, 2017 Asia $ 298,765 74% $ 298,119 75% $ 277,638 72% Europe 47,392 12% 45,546 11% 44,547 12% Americas 57,936 14% 55,134 14% 63,776 16% Total revenue $ 404,093 100% $ 398,799 100% $ 385,961 100% * Amounts in periods prior to fiscal 2018 have not been adjusted under the modified retrospective method of adopting ASC 606 and, therefore, are presented under GAAP in effect during that period. Contract balances Our 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. The balance results primarily from the amount of estimated revenue related to HDMI that we have recognized to date, but which has not yet been collected by the agent. Contract assets are recorded in Prepaid expenses and other current assets in our Consolidated Balance Sheets. The following table summarizes activity during the periods presented: (In thousands) Balance as of December 31, 2017 $ 7,515 Revenues recorded during the period 11,618 Transferred to accounts receivable or collected (9,990 ) Contract assets as of December 29, 2018 9,143 Revenues recorded during the period 17,356 Transferred to Accounts receivable or collected (20,930 ) Contract assets as of December 28, 2019 $ 5,569 Contract liabilities are included in Accounts payable and accrued expenses on our Consolidated Balance Sheets. The following table summarizes activity during the periods presented: (In thousands) Contract liabilities as of December 31, 2017 $ — Accruals for estimated future stock rotation and scrap returns 4,281 Less: Release of accruals for recognized stock rotation and scrap returns (2,667 ) Contract liabilities as of December 29, 2018 1,614 Accruals for estimated future stock rotation and scrap returns 5,763 Less: Release of accruals for recognized stock rotation and scrap returns (5,064 ) Contract liabilities as of December 28, 2019 $ 2,313 The impact to revenue in fiscal years 2019 and 2018 from the release of accruals for recognized stock rotation and scrap returns was offset by the processing of return merchandise authorizations totaling $5.0 million and $3.7 million , respectively, yielding a net revenue increase of approximately $0.1 million and a net revenue decrease of approximately $1.0 million , respectively. Impact of Adoption of ASC 606 We adopted ASC 606 effective on December 31, 2017, the first day of our 2018 fiscal year, using the modified retrospective method. ASC 606 requires us to disclose the effect of adoption on each financial statement line item in the year of adoption as compared to the revenue recognition accounting standard that was in effect previously, and an explanation of the reasons for significant changes. 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. The effect of adoption on each financial statement line item is detailed in the tables below: Condensed Consolidated Statement of Operations Year ended December 29, 2018 (In thousands, except per share data) As reported under new standard Adjustments Pro forma as if previous standard was in effect Product revenue $ 380,468 $ (14,098 ) $ 366,370 Licensing and services revenue 18,331 (1,478 ) 16,853 Cost of product revenue 179,101 (6,399 ) 172,702 Net loss $ (26,322 ) $ (9,177 ) $ (35,499 ) Net loss per share, basic and diluted $ (0.21 ) $ (0.07 ) $ (0.28 ) Condensed Consolidated Balance Sheets As of December 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 $ 60,890 $ 6,600 $ 67,490 Inventories 67,096 78 67,174 Prepaid expenses and other current assets 27,762 (9,775 ) 17,987 Total assets $ 623,687 $ (3,097 ) $ 620,590 Accounts payable and accrued expenses (includes restructuring) $ 51,763 $ (1,156 ) $ 50,607 Deferred income and allowances on sales to distributors — 34,637 34,637 Accumulated deficit (476,783 ) (36,578 ) (513,361 ) Total liabilities and stockholders' equity $ 623,687 $ (3,097 ) $ 620,590 Condensed Consolidated Statement of Cash Flows Year ended December 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 $ (26,322 ) $ (9,177 ) $ (35,499 ) Accounts receivable, net (3,978 ) (8,408 ) (12,386 ) Inventories 13,177 (448 ) 12,729 Prepaid expenses and other assets (11,667 ) 2,260 (9,407 ) Accounts payable and accrued expenses (includes restructuring) 13,325 (1,614 ) 11,711 Deferred income and allowances on sales to distributors $ — $ 17,387 $ 17,387 |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | Balance Sheet Components Short-Term Marketable Securities Our Short-term marketable securities consisted of U.S. government agency obligations with maturities up to two years, which we carried at their fair value as Level 1 instruments in accordance with ASC 820, " Fair Value Measurements ." We liquidated these investments in the first quarter of fiscal 2019. The following table summarizes the maturities of our formerly-held Short-term marketable securities at fair value. (In thousands) December 28, 2019 December 29, 2018 Short-term marketable securities: Maturing within one year $ — $ 7,454 Maturing between one and two years — 2,170 Total marketable securities $ — $ 9,624 Accounts Receivable Accounts receivable do not bear interest and are shown net of allowances for doubtful accounts. 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. (In thousands) December 28, 2019 December 29, 2018 Accounts receivable $ 65,023 $ 61,087 Less: Allowance for doubtful accounts (106 ) (197 ) Accounts receivable, net of allowance for doubtful accounts $ 64,917 $ 60,890 The following table displays the activity related to changes in our allowance for doubtful accounts: Fiscal Years Ended (In thousands) Balance at Charged (Credit) to Charged (credit) to Settlements & write-offs Balance at end of period Allowance for doubtful accounts December 28, 2019 $ 197 $ (30 ) $ (12 ) $ (49 ) $ 106 December 29, 2018 $ 9,371 $ 1 $ 73 $ (9,248 ) $ 197 December 30, 2017 $ 9,299 $ 3 $ 38 $ 31 $ 9,371 During fiscal 2018, we wrote off $9.0 million of accounts receivable from a bankrupt distributor group. This write off had no impact on Accounts Receivable in fiscal 2018, as we had recorded a full allowance against our accounts receivable, net of deferred revenue, from the bankrupt distributor group in fiscal 2016. Inventories (In thousands) December 28, 2019 December 29, 2018 Work in progress $ 39,855 $ 47,224 Finished goods 15,125 19,872 Total inventories $ 54,980 $ 67,096 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 charges of $8.0 million were taken during fiscal 2018 on product lines eliminated with the discontinuation of our millimeter wave business and were charged to Cost of revenue in the Consolidated Statements of Operations. Accounts Payable and Accrued Expenses Included in Accounts payable and accrued expenses in the Consolidated Balance Sheets are the following balances: (In thousands) December 28, 2019 December 29, 2018 Trade accounts payable $ 44,350 $ 31,880 Liability for non-cancelable contracts 6,964 6,078 Restructuring 3,060 4,220 Other accrued expenses 5,881 9,585 Total accounts payable and accrued expenses $ 60,255 $ 51,763 Cloud Based Computing Implementation Costs During the fourth quarter of fiscal 2019, we early adopted ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) , which clarifies the accounting for implementation costs in cloud computing arrangements. We adopted this guidance using the retrospective method, but did not restate any prior financial statements presented. As of December 28, 2019, we had capitalized approximately $2.5 million of implementation costs mainly for our new and interrelated distributor accounting management systems. These cloud based computing implementation costs are recorded in Prepaid expenses and other current assets and Other long-term assets on our Consolidated Balance Sheets. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment (In thousands) December 28, 2019 December 29, 2018 Production equipment and software $ 150,591 $ 160,979 Leasehold improvements 12,517 12,648 Office furniture and equipment 2,112 2,623 165,220 176,250 Accumulated depreciation and amortization (125,990 ) (141,367 ) $ 39,230 $ 34,883 For fiscal year 2019 , depreciation and amortization expense for property and equipment was $11.6 million , including $0.4 million of restructuring expense. For fiscal year 2018 , depreciation and amortization expense for property and equipment was $13.4 million , including $0.6 million of restructuring expense. For fiscal year 2017 , depreciation and amortization expense for property and equipment was $16.3 million . In August 2017, we sold building space which we owned in Shanghai, China for gross proceeds of approximately $7.9 million . 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 , which is presented as Gain on sale of building in our Consolidated Statements of Operations . Property and Equipment – Geographic Information Our Property and equipment, net by country at the end of each period was as follows: (In thousands) December 28, 2019 December 29, 2018 United States $ 32,313 $ 27,353 China 1,683 2,360 Philippines 2,683 3,319 Taiwan 1,885 949 Japan 283 324 Other 383 578 Total foreign property and equipment, net 6,917 7,530 Total property and equipment, net $ 39,230 $ 34,883 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-Term Debt On May 17, 2019, we entered into a new credit agreement (the “Current Credit Agreement”) with Wells Fargo Bank, National Association, as administrative agent, and other lenders. The Current Credit Agreement provides for a five -year secured term loan facility in an aggregate principal amount of $175.0 million and a five -year secured revolving loan facility in an aggregate principal amount of up to $75.0 million , along with other components and options, such as a letter of credit, swing line, or expansion of the revolver, currently not in use, which are more fully described in the Current Credit Agreement. We used the $175.0 million term loan proceeds and an initial $31.5 million revolving loan draw at closing to (i) repay the $204.4 million obligation outstanding under our previous credit agreement (the “Previous Credit Agreement”) with Jefferies Finance LLC, as administrative agent, and (ii) pay fees and expenses totaling $2.1 million incurred in connection with the Current Credit Agreement. The revolving loan may be used for working capital and general corporate purposes. With the repayment of our obligations under the Previous Credit Agreement, we wrote off the remaining unamortized balance of the related original issue discount and debt costs, which we recorded as a $2.2 million loss on refinancing in Other expense, net on our Consolidated Statements of Operations in the second quarter of fiscal 2019. At our option, the term loan and the revolving loan (collectively, "long-term debt") accrue interest at a per annum rate based on either (i) the base rate plus a margin ranging from 0.25% to 1.00% , determined based on our total leverage ratio or (ii) the London Interbank Offered Rate ("LIBOR") for interest periods of 1 , 2 , 3 or 6 months plus a margin ranging from 1.25% to 2.00% , determined based on our total leverage ratio. The base rate is defined as the highest of (i) the federal funds rate, plus 0.50% , (ii) Wells Fargo Bank, National Association’s prime rate or (iii) the LIBOR rate for a 1 -month interest period plus 1.00% . As of December 28, 2019, the effective interest rate on the term loan was 3.16% , and the revolving loan did not have an outstanding balance. We pay a commitment fee of 0.20% on the unused portion of the revolving loan. The term loan is payable through a combination of (i) required quarterly installments of approximately $4.4 million , and (ii) any payments due upon certain issuances of additional indebtedness and certain asset dispositions, with any remaining outstanding principal amount due and payable on the maturity date of the term loan. The revolving loan is payable at our discretion, with any remaining outstanding principal amount due and payable on the maturity date of the revolving loan. The Current Credit Agreement contains customary affirmative and negative covenants, including covenants limiting the ability of the Company to, among other things, incur debt, grant liens, undergo certain fundamental changes, make investments, make certain restricted payments, dispose of assets, enter into transactions with affiliates, and enter into burdensome agreements, in each case, subject to limitations and exceptions set forth in the Current Credit Agreement. We are also required to maintain compliance with a total leverage ratio and an interest coverage ratio, in each case, determined in accordance with the terms of the Current Credit Agreement. We account for the original issue discount and the debt issuance costs as a reduction to the carrying value of our long-term debt on our Consolidated Balance Sheets . We amortize the discount and costs to Interest expense in our Consolidated Statements of Operations over the contractual term using the effective interest method. We determine the Current portion of long-term debt as the sum of the required quarterly installments to be made over the next twelve months, reduced by the original issue discount and the debt issuance costs to be amortized over the next twelve months. The fair value of our long-term debt approximates the carrying value, which is reflected in our Consolidated Balance Sheets as follows: (In thousands) December 28, 2019 December 29, 2018 Principal amount $ 148,125 $ 263,033 Unamortized original issue discount and debt costs (1,579 ) (3,386 ) Less: Current portion of long-term debt (21,474 ) (8,290 ) Long-term debt, net of current portion and unamortized debt issue costs $ 125,072 $ 251,357 Interest expense related to our long-term debt was included in Interest expense on our Consolidated Statements of Operations as follows: Year Ended (in thousands) December 28, 2019 December 29, 2018 December 30, 2017 Contractual interest $ 10,278 $ 18,600 $ 16,503 Amortization of debt issuance costs and discount 1,659 2,230 1,982 Total Interest expense related to the long-term debt $ 11,937 $ 20,830 $ 18,485 Expected future principal payments are based on the schedule of required quarterly installments, adjusted for known voluntary payments. Our 53-week fiscal 2020 will result in five quarterly installments being paid during that fiscal year. As of December 28, 2019 , expected future principal payments on our long-term debt were as follows: Fiscal year (in thousands) 2020 $ 21,875 2021 17,500 2022 17,500 2023 17,500 2024 73,750 $ 148,125 |
Restructuring
Restructuring | 12 Months Ended |
Dec. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In April 2019, our management approved and executed an internal restructuring plan (the “Q2 2019 Sales Plan”) which focused on a restructuring of the global sales organization through cancellation of certain contracts and a workforce reduction. Under this plan, we have incurred $2.0 million of restructuring expense during fiscal 2019. All actions planned under the Q2 2019 Sales Plan have been implemented. In December 2018, our management approved and executed an internal restructuring plan (the “December 2018 Plan”), which included a global workforce reduction. This plan also included the abandonment of long lived assets related to the restructuring of our agreements with a privately-held investee. Under this plan, no restructuring expense was incurred during fiscal year 2019, and approximately $4.8 million of restructuring expense was incurred during fiscal year 2018. All actions planned under the December 2018 Plan have been implemented. 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. Under this plan, we recorded a total credit adjustment of approximately $0.1 million during fiscal 2019 due to the final reconciliation of expenses incurred, and we incurred approximately $4.2 million of restructuring expense during fiscal 2018. Approximately $4.1 million of total expense has been incurred through December 28, 2019 under the June 2018 Plan. All actions planned under the June 2018 Plan have been implemented. 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 the transfer of certain assets related to our Simplay Labs testing and certification business, a worldwide workforce reduction, and an initiative to reduce our infrastructure costs, including reconfiguring our use of certain leased properties. Under this initiative approved by the Board in 2017, we vacated 100% or our facility in Portland, Oregon in the first quarter of fiscal 2019, and recorded approximately $2.7 million of Restructuring charges from ceasing use of this space, which includes approximately $1.0 million of impairment of the operating lease right-of-use asset for this property. During fiscal 2019, we entered into a sublease agreement for this facility and bought out the lease on the portion of the space that was not sublet. Under this plan, approximately $2.7 million , $8.4 million , and $8.0 million of expense was incurred during the years ended December 28, 2019 , December 29, 2018 , and December 30, 2017 , respectively. Approximately $19.1 million of total expense has been incurred through December 28, 2019 under the June 2017 Plan, and all planned actions have been implemented. We expect the total cost of the June 2017 Plan to be approximately $20.0 million to $21.5 million as accretion expenses related to our partially vacated facility in San Jose, California will be incurred over the remaining lease term. These expenses and credits were recorded to Restructuring charges on our Consolidated Statements of Operations . The restructuring accrual balance is presented in Accounts payable and accrued expenses and Other long-term liabilities on our Consolidated Balance Sheets . The following table displays the activity related to the restructuring plans described above: (In thousands) Severance & Related (1) Lease Termination & Fixed Assets Software Contracts & Engineering Tools (2) Other (3) Total Balance at December 31, 2016 $ 801 $ 1,036 $ 25 $ 12 $ 1,874 Restructuring charges 2,484 811 3,066 835 7,196 Costs paid or otherwise settled (2,093 ) (977 ) (2,731 ) (822 ) (6,623 ) Balance at December 30, 2017 $ 1,192 $ 870 $ 360 $ 25 $ 2,447 Restructuring charges 5,696 7,379 913 3,361 17,349 Costs paid or otherwise settled (5,074 ) 381 (1,055 ) (3,368 ) (9,116 ) Balance at December 29, 2018 $ 1,814 $ 8,630 $ 218 $ 18 $ 10,680 Restructuring charges 625 2,716 — 1,323 4,664 Costs paid or otherwise settled (2,279 ) (4,761 ) (218 ) (476 ) (7,734 ) Balance at December 28, 2019 $ 160 $ 6,585 $ — $ 865 $ 7,610 (1) Includes employee relocation costs and accelerated stock compensation (2) Includes cancellation of contracts, asset impairments, and accelerated depreciation on certain enterprise resource planning and customer relationship management systems (3) In fiscal 2018, "Other" activity included the abandonment of long lived assets related to the restructuring of our agreements with a privately-held investee. In fiscal 2019, "Other" activity included termination fees on the cancellation of certain contracts under the Q2 2019 Sales Plan |
Leases
Leases | 12 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Leases | Leases All of our facilities are leased under operating leases, which expire at various times through 2027. We recorded fixed operating lease cost of $7.7 million for fiscal 2019. Rental expense under the previous guidance for operating leases was $8.3 million and $8.9 million for fiscal years 2018 and 2017 , respectively. Our leases have remaining lease terms of 1 to 8 years , some of which include options to extend for up to 5 years , and some of which include options to terminate within 1 year . For our operating leases, the weighted-average remaining lease term was 5.7 years and the weighted-average discount rate is 7.0% as of December 28, 2019 . Our adoption of Topic 842 resulted in the non-cash recognition of additional net ROU assets and lease liabilities of approximately $29.9 million and $32.3 million , respectively, as of December 30, 2018. The difference between these amounts resulted from an adjustment to the deferred rent balance existing under the prior guidance. Adoption of this standard did not materially affect our consolidated net earnings. The following table presents the lease balance classifications within the Consolidated Balance Sheets and summarizes their activity during fiscal 2019: Operating lease right-of-use assets (in thousands) Balance as of December 29, 2018 $ — Right-of-use assets recorded from adoption of ASC 842 29,893 Right-of-use assets obtained in exchange for new lease obligations during the period 747 Reduction in the carrying amount of right-of-use assets during the period (5,797 ) Impairment of right-of-use asset on Portland, Oregon office (recorded in Restructuring charges) (977 ) Adjustments for present value and foreign currency effects (275 ) Balance as of December 28, 2019 $ 23,591 Operating lease liabilities (in thousands) Balance as of December 29, 2018 $ — Lease liabilities recorded from adoption of ASC 842 32,273 Lease liabilities incurred for new lease obligations during the period 747 Accretion of lease liabilities 1,918 Operating cash used by payments on lease liabilities (8,425 ) Adjustments for present value, foreign currency, and restructuring liability effects (389 ) Balance as of December 28, 2019 26,124 Less: Current portion of operating lease liabilities (4,686 ) Long-term operating lease liabilities, net of current portion $ 21,438 Maturities of operating lease liabilities as of December 28, 2019 are as follows: Fiscal year (in thousands) 2020 $ 6,445 2021 5,485 2022 4,468 2023 4,596 2024 4,716 Thereafter 6,705 Total lease payments 32,415 Less: amount representing interest (6,156 ) Less: amount representing restructuring liability adjustments (135 ) Total lease liabilities $ 26,124 Under the previous lease guidance, ASC 840, future minimum lease commitments at December 29, 2018 were as follows: Fiscal year (In thousands) 2019 $ 7,090 2020 6,893 2021 5,452 2022 4,658 2023 4,229 Thereafter 9,930 $ 38,252 Prior to 2019, the reporting of future minimum lease commitments included the lease obligations associated with previously restructured facilities. Lease obligations for facilities restructured prior to the adoption of Topic 842 totaled approximately $6.6 million at December 28, 2019 and continued to be recorded in Other long-term liabilities on our Consolidated Balance Sheets. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 28, 2019 | |
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 the fiscal years presented, we licensed additional third-party technology. We do not believe there is any significant residual value associated with these intangible assets. We are amortizing the intangible assets using the straight-line method over their estimated useful lives. The following tables summarize the details of our Intangible assets, net as of December 28, 2019 and December 29, 2018 : December 28, 2019 (In thousands) Weighted Average Amortization Period (in years) Gross Accumulated Amortization Intangible assets, net Developed technology 5.0 $ 110,987 $ (105,594 ) $ 5,393 Customer relationships 5.8 22,934 (21,400 ) 1,534 Licensed technology 5.0 459 (409 ) 50 Total identified intangible assets $ 134,380 $ (127,403 ) $ 6,977 December 29, 2018 (In thousands) Weighted Average Amortization Period (in years) Gross Accumulated Amortization Intangible assets, net Developed technology 5.0 $ 110,987 $ (94,389 ) $ 16,598 Customer relationships 5.8 22,934 (19,048 ) 3,886 Licensed technology 5.0 1,194 (353 ) 841 Total identified intangible assets $ 135,115 $ (113,790 ) $ 21,325 We recorded amortization expense related to intangible assets on the Consolidated Statements of Operations as presented in the following table: Year Ended (In thousands) December 28, 2019 December 29, 2018 December 30, 2017 Research and development $ 55 $ 277 $ 569 Amortization of acquired intangible assets 13,558 17,690 31,340 $ 13,613 $ 17,967 $ 31,909 The annual expected amortization expense of acquired intangible assets is as follows: (In thousands) Amount 2020 $ 4,500 2021 2,239 2022 238 Total $ 6,977 No impairment charges relating to acquired intangible assets were recorded for fiscal 2019 as no indicators of impairment were present. During 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, and we recorded an impairment charge of $0.6 million to the intangible asset associated with that product. During the second quarter of 2018, we recorded an impairment charge relating to intangible assets of $11.9 million as a result of the strategic decision to discontinue our millimeter wave business. During fiscal 2017, we recorded a net impairment charge of $32.4 million related to certain of the developed technology intangible assets acquired in our acquisition of Silicon Image. These charges were recorded to Impairment of acquired intangible assets in the Consolidated Statements of Operations. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans Employee and Director Stock Options, Restricted Stock and ESPP We have two active equity incentive plans, the "2013 Incentive Plan and the "2011 Non-Employee Director Equity Incentive Plan", under which shares remain available for grants to employees and non-employee directors, respectively. In addition, we have made grants of inducement awards to certain of our newly hired executives and employees that are granted outside of, but governed by, the 2013 Incentive Plan. "Incentive stock options" under Section 422 of the U.S. Internal Revenue Code and restricted stock unit ("RSU") grants are part of our equity compensation practices for employees who receive equity grants. Options and RSUs generally vest quarterly over a four -year period beginning on the grant date. The contractual terms of options granted do not exceed ten years. In May 2012, the Company's stockholders approved the 2012 Employee Stock Purchase Plan ("2012 ESPP"), which authorizes the issuance of 3.0 million shares of common stock to eligible employees to purchase shares of common stock through payroll deductions, which cannot exceed 10% of an employee's compensation. The purchase price of the shares is the lower of 85% of the fair market value of the stock at the beginning of each six-month offering period or 85% of the fair market value at the end of such period. We have treated the 2012 ESPP as a compensatory plan. We recorded $0.5 million and $0.6 million related compensation expense in fiscal 2019 and 2018 , respectively. During fiscal 2017 only, the ESPP was suspended and we recorded no related compensation expense. At December 28, 2019 , a total of 9.0 million shares of our common stock were available for future grants under the 2013 Incentive Plan, and the 2011 Non-Employee Director Equity Incentive Plan. Following our 2018 Shareholder meeting, a share ratio of 2.2:1 was applied to the 2013 Incentive Plan. This ratio takes two and two tenths shares out of the 2013 Plan for every one full value share granted. During fiscal 2019, a total of 2.9 million shares were adjusted out of the 2013 Plan. Shares subject to stock option grants that expire or are canceled, without delivery of such shares, generally become available for re-issuance under equity incentive plans. At December 28, 2019 , a total of 1.4 million shares of our common stock were available for future purchases under the 2012 ESPP. Stock-Based Compensation Total stock-based compensation expense included in our Consolidated Statements of Operations is presented in the following table: Year Ended (In thousands) December 28, 2019 December 29, 2018 December 30, 2017 Cost of revenue $ 1,422 $ 940 $ 795 Research and development 5,640 4,357 5,245 Selling, general, and administrative 11,837 8,349 6,503 Total stock-based compensation $ 18,899 $ 13,646 $ 12,543 The stock-based compensation expense included in Selling, general, and administrative expense for 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. The fair values of each option award on the date of grant and of the shares expected to be issued under the employee stock purchase plan were estimated using the Black-Scholes valuation model and the assumptions noted in the following table. The expected term is based on historical vested option exercises and includes an estimate of the expected term for options that are fully vested and outstanding. The expected volatility of both stock options and ESPP shares is based on the daily historical volatility of our stock price, measured over the expected term of the option or the ESPP purchase period. The risk-free interest rate is based on the implied yield on a U.S. Treasury zero-coupon issue with a remaining term closest to the expected term of the option. The dividend yield reflects that we have not paid any cash dividends since inception and do not intend to pay any cash dividends in the foreseeable future. The following table summarizes the assumptions used in the valuation of stock option and ESPP compensation: Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Employee and Director Stock Options * Expected volatility n/a 39.87% to 41.11% 40.96% to 48.01% Risk-free interest rate n/a 2.29% to 2.78% 1.99% to 2.09% Expected term (years) n/a 4.08 to 4.25 4.08 to 4.25 Employee Stock Purchase Plan ** Weighted average expected volatility 31.6% 36.4% n/a Weighted average risk-free interest rate 2.51% 1.61% n/a Expected term 6 months 6 months n/a * No stock options granted during fiscal 2019 ** ESPP suspended during fiscal 2017 only At December 28, 2019 , there was $3.2 million of total unrecognized compensation cost related to unvested employee and director stock options, which is expected to be recognized over a weighted average period of 1.5 years . Our current practice is to issue new shares to satisfy option exercises. Compensation expense for all stock-based compensation awards is recognized using the straight-line method. The following table summarizes our stock option activity and related information for the year ended December 28, 2019 : (Shares and aggregate intrinsic value in thousands) Shares Weighted Weighted average Aggregate Balance, December 29, 2018 6,616 $ 5.94 Granted — — Effect of vesting multiplier 36 Exercised (2,715 ) 5.73 Forfeited or expired (605 ) 5.72 Balance, December 28, 2019 3,332 $ 6.16 Vested and expected to vest at December 28, 2019 3,332 $ 6.16 4.50 $ 43,553 Exercisable, December 28, 2019 1,721 $ 6.00 3.95 $ 22,758 The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the Company's closing stock price on the last trading day of the fiscal year and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on that day. This amount changes based on the fair market value of the Company's stock. Total intrinsic value of options exercised for fiscal 2019 , 2018 , and 2017 was $17.8 million , $6.5 million , and $2.2 million , respectively. The total fair value of options and RSUs vested and expensed in fiscal 2019 , 2018 , and 2017 was $18.4 million , $13.0 million , and $12.5 million , respectively. The resultant grant date weighted-average fair values for stock options granted, calculated using the Black-Scholes option pricing model with the noted assumptions for stock options, were $2.73 and $2.02 for fiscal years 2018 and 2017 , respectively. No stock options were granted during fiscal 2019. The weighted average fair values for the ESPP, calculated using the Black-Scholes option pricing model with the noted assumptions for the ESPP, were $1.69 and $1.50 for fiscal years 2019 and 2018 , respectively. The following table summarizes our RSU activity for the year ended December 28, 2019 : (Shares in thousands) Shares Weighted average grant date fair value Balance, December 29, 2018 4,412 $ 7.53 Granted 2,445 16.23 Effect of vesting multiplier 216 — Vested (1,734 ) 8.10 Forfeited or expired (564 ) 7.27 Balance, December 28, 2019 4,775 $ 12.23 At December 28, 2019 there was $51.9 million of total unrecognized compensation cost related to unvested RSUs. Our current practice is to issue new shares when RSUs vest. Compensation expense for RSUs is recognized using the straight-line method over the related vesting period. Market-Based and Performance-Based Stock Compensation In fiscal years 2017 through 2019, we granted stock options and RSUs with either a market condition (TSR) or a performance condition (Adjusted EBITDA) to certain executives. The options with a market condition granted in fiscal year 2017 have a two year vesting period and vest between 0% and 200% of the target amount, based on the Company's relative TSR when compared to the TSR of a component of companies of 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. In fiscal years 2018 and 2019, we granted inducement awards outside of, but subject to the terms and conditions of the 2013 Incentive Plan to certain executives. These awards consisted of RSUs with either a market condition or a performance condition that vest and become payable upon achievement of TSR or 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 either 200% or 250% of the units vesting at the 75th percentile, depending upon the executive, 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. During the third quarter of fiscal 2019, the market condition for awards granted in the previous year achieved the 75 th percentile of the condition, and the first tranche of these awards vested at 200% or 250% of the RSUs, as applicable for the respective executive. The following table summarizes the assumptions used in the valuation of stock options and RSUs with a market or performance condition: Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Executive stock options with a market condition Expected volatility n/a n/a 41% Risk-free interest rate n/a n/a 1.9% Expected term (years) n/a n/a 4.5 Executive RSUs with a market or performance condition Expected volatility 40.15% to 41.10% 41.06% to 41.74% n/a Risk-free interest rate 1.66% to 2.55% 2.71% to 2.87% n/a Expected term (years) 3.00 3.00 to 3.16 n/a The following table summarizes the activity for our stock options and RSUs with a market condition or performance condition: (Shares in thousands) Unvested Vested Total Balance, December 29, 2018 909 — 909 Granted 584 — 584 Effect of vesting multiplier 260 — 260 Vested (484 ) 71 (413 ) Exercised — (71 ) (71 ) Canceled (106 ) — (106 ) Balance, December 28, 2019 1,163 — 1,163 We incurred stock compensation expense related to these stock option and RSU awards with a market or performance condition of approximately $5.7 million , $0.9 million , and $0.5 million in fiscal years 2019 , 2018 , and 2017 , respectively, which is recorded as a component of total stock-based compensation expense. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We are subject to federal and state income tax as well as income tax in the various foreign jurisdictions in which we operate. The domestic and foreign components of Income (loss) before income taxes were as follows: Year Ended (In thousands) December 28, 2019 December 29, 2018 December 30, 2017 Domestic $ 33,417 $ (8,274 ) $ (17,341 ) Foreign 11,648 (15,695 ) (52,372 ) Income (loss) before taxes $ 45,065 $ (23,969 ) $ (69,713 ) The components of the Income tax expense are as follows: Year Ended (In thousands) December 28, 2019 December 29, 2018 December 30, 2017 Current: Federal $ 499 $ 536 $ 508 State 45 38 30 Foreign 1,345 1,869 304 1,889 2,443 842 Deferred: Federal — — — State — — — Foreign (317 ) (90 ) 7 (317 ) (90 ) 7 Income tax expense $ 1,572 $ 2,353 $ 849 Income tax expense differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pretax income as a result of the following differences: Year Ended December 28, 2019 December 29, 2018 December 30, 2017 % % % Statutory federal rate 21 (21) (35) Adjustments for tax effects of: State taxes, net 3 (6) (7) Research and development credits 3 (5) (1) Stock compensation (11) 8 3 Foreign rate differential (2) 20 28 Foreign dividends — — 1 Foreign withholding taxes 3 5 — Other permanent 6 2 — Other deferred tax asset adjustment — 13 — Valuation allowance (19) (11) (73) Change in uncertain tax benefit accrual — 2 1 Stock compensation (ASU 2016-09) adoption — — (8) Tax rate change — — 93 Other — 3 (1) Effective income tax rate 4 10 1 ASC 740, “ Income Taxes ”, provides for the recognition of deferred tax assets if realization of these assets is more-likely-than-not. We evaluate both positive and negative evidence to determine if some or all of our deferred tax assets should be recognized on a quarterly basis. Through December 28, 2019 , we continued to evaluate the valuation allowance position in the United States and concluded that we should maintain a full valuation allowance against the net federal and state deferred tax assets. In making this evaluation, we exercised significant judgment and considered estimates about our ability to generate revenue and taxable profits sufficient to offset expenditures in future periods within the United States. It is reasonably possible that during the next twelve months, we will establish a sustained level of profitability in the U.S. As a result, we may reverse a significant portion of the valuation allowance recorded against our U.S. deferred tax assets. The reversal would result in an income tax benefit for the quarterly and annual fiscal period in which we release the valuation allowance. We will continue to evaluate both positive and negative evidence in future periods to determine if we will realize the net 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. The net decrease in the total valuation allowance affecting the effective tax rate for the year ended December 28, 2019 was approximately $8.6 million , mainly attributable to the write down of intangible assets which had no tax basis. The components of our net deferred tax assets are as follows: (In thousands) December 28, 2019 December 29, 2018 Deferred tax assets: Accrued expenses and reserves $ 4,137 $ 3,714 Inventory — 2 Deferred Revenue — — Stock-based and deferred compensation 2,812 2,660 Interest expense disallowance — 1,283 Intangible assets 12,294 14,649 Fixed assets 256 281 Net operating loss carry forwards 86,899 88,333 Tax credit carry forwards 90,339 92,208 Capital loss carry forwards 4,235 5,007 Other 1,059 1,130 Total deferred tax assets 202,031 209,267 Less: valuation allowance (198,499 ) (207,108 ) Net deferred tax assets 3,532 2,159 Deferred tax liabilities: Fixed assets 2,620 1,536 Deferred revenue 434 525 Other — (57 ) Total deferred tax liabilities 3,054 2,004 Net deferred tax assets $ 478 $ 155 The following table displays the activity related to changes in our valuation allowance for deferred tax assets: Fiscal Years Ended (In thousands) Balance at Charged (Credit) to Charged (credit) to Balance at end of period Valuation allowance for deferred tax assets December 28, 2019 $ 207,108 $ (8,609 ) $ — $ 198,499 December 29, 2018 $ 209,691 $ (2,583 ) $ — $ 207,108 December 30, 2017 $ 260,687 $ (50,960 ) $ (36 ) $ 209,691 At December 28, 2019 , we had U.S. federal net operating loss ("NOL") carryforwards (pretax) of approximately $360.5 million that expire at various dates between 2020 and 2037 . We had state NOL carryforwards (pretax) of approximately $141.3 million that expire at various dates from 2020 through 2039 . We also had federal and state credit carryforwards of $50.1 million and $62.6 million , respectively. Of the $62.6 million state credit carryforwards, $61.9 million do not expire. The federal and remaining state credits expire at various dates from 2020 through 2039 . Future utilization of federal and state net operating losses and tax credit carry forwards may be limited if cumulative changes to ownership exceed 50% within any three -year period. If there is a significant change in ownership, future tax attribute utilization may be restricted and NOL carryforwards and/or R&D credits will be reduced to reflect the limitation. Foreign earnings may be subject to withholding taxes in local jurisdictions if they are distributed and repatriated in the United States. At December 28, 2019, U.S. income taxes and foreign withholding taxes were not provided for on a cumulative total of approximately $2.9 million of the undistributed earnings of our Chinese subsidiary. We intend to reinvest these earnings indefinitely. At December 28, 2019 , our unrecognized tax benefits associated with uncertain tax positions were $41.9 million , of which $39.9 million , if recognized, would affect the effective tax rate, subject to valuation allowance. As of December 28, 2019 , interest and penalties associated with unrecognized tax benefits were $9.0 million , which are not reflected in the table below. The following table summarizes the changes to unrecognized tax benefits for the fiscal years presented: (In thousands) Amount Balance at December 31, 2016 $ 47,623 Additions based on tax positions related to the current year 471 Additions based on tax positions of prior years 11 Reduction for tax positions of prior years (1,226 ) Reduction as a result of lapse of applicable statute of limitations (2,047 ) Balance at December 30, 2017 44,832 Additions based on tax positions related to the current year 389 Additions based on tax positions of prior years 19 Reductions for tax positions of prior years (5 ) Reduction as a result of lapse of applicable statute of limitations (1,235 ) Balance at December 29, 2018 44,000 Additions based on tax positions related to the current year 238 Additions based on tax positions of prior years 334 Reductions for tax positions of prior years (213 ) Reduction as a result of lapse of applicable statute of limitations (2,432 ) Balance at December 28, 2019 $ 41,927 Our liability for uncertain tax positions (including penalties and interest) was $24.6 million and $26.3 million at December 28, 2019 and December 29, 2018 , respectively, and is recorded as a component of Other long-term liabilities on our Consolidated Balance Sheets . The remainder of our uncertain tax position exposure of $24.8 million is netted against deferred tax assets. At December 28, 2019, it is reasonably possible that $2.4 million of unrecognized tax benefits and $0.5 million of associated interest and penalties could be recognized during the next twelve months. The $2.9 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. The years that remain subject to examination are 2016 for federal income taxes, 2015 for state income taxes, and 2012 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 Philippines 2016 and 2017 and Israeli 2013 through 2017 income tax returns are currently under examination. We are not under examination in any other jurisdiction. We are not currently paying U.S. federal income taxes and do not expect to pay such taxes until we fully utilize our tax NOL and credit carryforwards. We expect to pay a nominal amount of state income tax. We are paying foreign income and withholding taxes, which are reflected in income tax expense in our Consolidated Statements of Operations and are primarily related to the cost of operating offshore activities and subsidiaries. We accrue interest and penalties related to uncertain tax positions in income tax expense. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 28, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Qualified Investment Plan In 1990, we adopted a 401(k) tax-deferred savings plan, which provides all employees in the United States who meet certain eligibility requirements with an opportunity to accumulate funds for retirement. Participants may contribute up to the amount allowable as a deduction for federal income tax purposes. The plan does not allow investments in the Company's common stock. The plan allows for the Company to make discretionary matching contributions in cash. We recorded matching contributions of approximately $0.8 million , $0.6 million , and $0.8 million in fiscal years 2019 , 2018 , and 2017 , respectively. Cash Incentive Plans For 2019 , 2018 , and 2017 , the Board of Directors of the Company, upon the recommendation of the Compensation Committee, approved the Cash Incentive Plan (the “Cash Plans”) for the respective fiscal year. The chief executive officer, other executive officers, and other members of senior management, including vice presidents and director-level employees, together with all other employees of the Company not on the Company's sales incentive plan are eligible to participate in the Cash Plans. Under the Cash Plans, individual cash incentive payments for the eligible employees will be based both on Company financial performance, as measured by achievement of operating income (before incentive plan accruals) and revenue goals within specified ranges established by the Compensation Committee, and Company performance, as measured by the achievement of personal management objectives. The Compensation Committee determines the performance of the chief executive officer, the chief financial officer and other participants based on the achievement of the management objectives established by the Compensation Committee during the first quarter of the respective fiscal year. We recorded approximately $5.8 million , $5.9 million , and $7.2 million of expense under the Cash Plans in fiscal 2019 , 2018 , and 2017 , respectively. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal Matters On or about December 19, 2018, Steven A.W. De Jaray, Perienne De Jaray and Darrell R. Oswald (collectively, the “Plaintiffs”) commenced an action against the Company and several unnamed defendants in the Multnomah County Circuit Court of the State of Oregon, in connection with the sale of certain products by the Company to the Plaintiffs in or around 2008. The Plaintiffs allege that we violated The Lanham Act, engaged in negligence and fraud by failing to disclose to the Plaintiffs the export-controlled status of the subject parts. The Plaintiffs seek damages of $138 million , treble damages, and other remedies. In January 2019, we removed the action to the United States District Court for the District of Oregon. At this stage of the proceedings, we do not have an estimate of the likelihood or the amount of any potential exposure to the Company; however, we believe that these claims are without merit and intend to vigorously defend the action. See “Litigation and unfavorable results of legal proceedings could adversely affect our financial condition and operating results” in “Risk Factors” in Item 1A of Part I of this Annual Report on Form 10-K. 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. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) A summary of the Company's consolidated quarterly results of operations is as follows: 2019 2018 (In thousands, except per share data) Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Revenue $ 100,237 $ 103,469 $ 102,296 $ 98,091 $ 95,977 $ 101,484 $ 102,715 $ 98,623 Gross margin 59,293 61,439 60,038 57,652 54,306 58,364 50,248 56,521 Restructuring charges (55 ) 252 3,126 1,341 11,854 90 4,376 1,029 Net income (loss) $ 13,987 $ 13,539 $ 8,559 $ 7,408 $ (7,121 ) $ 6,974 $ (20,223 ) $ (5,952 ) Net income (loss) per share - basic $ 0.10 $ 0.10 $ 0.06 $ 0.06 $ (0.05 ) $ 0.05 $ (0.16 ) $ (0.05 ) Net income (loss) per share - diluted $ 0.10 $ 0.10 $ 0.06 $ 0.05 $ (0.05 ) $ 0.05 $ (0.16 ) $ (0.05 ) |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 28, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event Subsequent to December 28, 2019, the Company's Board of Directors approved a stock repurchase program pursuant to which up to $40.0 million of outstanding common stock may be repurchased from time to time. The duration of the repurchase program is twelve months . All repurchases will be open market transactions and funded from available working capital. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying Consolidated Financial Statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). They include the accounts of Lattice and its subsidiaries after the elimination of all intercompany balances and transactions. |
Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments affecting the amounts reported in our consolidated condensed financial statements and the accompanying notes. The actual results that we experience may differ materially from our estimates. |
Fiscal Reporting Periods | Fiscal Reporting Periods We report based on a 52 or 53-week fiscal year ending on the Saturday closest to December 31. Our fiscal 2019, 2018, and 2017 were 52-week years that ended December 28, 2019 , December 29, 2018 , and December 30, 2017 respectively. Our fiscal 2020 will be a 53-week year and will end on January 2, 2021 . All references to quarterly or annual financial results are references to the results for the relevant fiscal period. |
Concentrations of Risk | Concentrations of Risk Potential exposure to concentrations of risk may impact revenue, accounts receivable, and supply of wafers for our new products. In the periods covered by this report, no end customer accounted for more than 10% of total revenue. Distributors have historically accounted for a significant portion of our total revenue. Our two largest distributor groups, the Weikeng Group ("Weikeng") and Arrow Electronics, Inc. ("Arrow"), each account for substantial portions of our total revenue and our net accounts receivable. Revenue attributable to distributors as a percentage of total revenue is presented in the following table: Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Weikeng Group 30 % 25 % 27 % Arrow Electronics Inc. 25 29 24 All others 27 29 26 Revenue attributable to distributors* 82 % 83 % 77 % * 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. At December 28, 2019 and December 29, 2018 , Arrow accounted for 40% and 41% , respectively, and Weikeng accounted for 38% and 23% , respectively, of net accounts receivable. No other distributor group or end customer accounted for more than 10% of net accounts receivable at these dates. Concentration of credit risk with respect to accounts receivable 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. We rely on a limited number of foundries for our wafer purchases. 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, or create delays in production or shipments, among other factors. |
Cash and Cash Equivalents | Cash and 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, which approximates fair value. Deposits with financial institutions at times exceed Federal Deposit Insurance Corporation insurance limits. |
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 also have international subsidiaries and branch operations that conduct some transactions in foreign currencies. Gains or losses from foreign exchange rate fluctuations on balances denominated in foreign currencies are reflected in Other expense, net . We translate accounts denominated in foreign currencies in accordance with ASC 830, “ Foreign Currency Matters ,” using the current rate method under which asset and liability accounts are translated at the current rate, while stockholders' equity accounts are translated at the appropriate historical rates, and revenue and expense accounts are translated at average monthly exchange rates. Translation adjustments related to the consolidation of foreign subsidiary financial statements are reflected in Accumulated other comprehensive loss in Stockholders' equity (See our Consolidated Statements of Stockholders' Equity ). |
Revenue Recognition | Revenue Recognition We adopted ASC 606 effective on December 31, 2017, the first day of our 2018 fiscal year, 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. 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, at which point the selling price of these products became fixed and determinable, and certain licensing revenues were not recognizable under previous GAAP due to the fixed and determinable revenue recognition criteria not being met. Under ASC 606, we recognize revenue when we satisfy performance obligations as evidenced by the transfer of control of our products or services to customers. We consider customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. 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. The majority of our revenue is derived from product sales. For each contract, we consider our promise to transfer each distinct product to be the identified performance obligations. Revenue for product sales is recognized at the time of product shipment, as determined by the agreed upon contract shipping terms. Our Licensing and services revenue is comprised of revenue from our intellectual property ("IP") core licensing activity, patent monetization activities, design services, and royalty and adopter fee revenue from our standards activities. These activities are complementary to our product sales and help us to monetize our IP associated with our technology and standards. We consider licensing arrangements with our customers and agreements with the standards consortia of which we are a member to be 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. We recognize license revenue at the point in time that control of the license transfers to the customer, which is generally upon delivery, or as usage occurs. We measure revenue based on the amount of consideration we expect to be entitled to in exchange for products or services. Variable consideration is estimated and reflected as an adjustment to the transaction price. We determine variable consideration, which consists primarily of various sales price concessions, by estimating the most likely amount of consideration we expect to receive from the customer 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. Sales rebates earned by customers are offset against their receivable balances. Rebates earned by customers when they do not have outstanding receivable balances are recorded within other accrued liabilities. The impacts of distributor sales price reductions resulting from price protection agreements are also estimated based on historical analysis of such activity and are reflected as a reduction in net revenue. Our HDMI and MHL standards revenue, as well as certain IP licenses, include variable consideration in the form of usage-based royalties. 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 cases, 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. Under the practical expedient provided by ASC 340, we generally expense sales commissions when incurred because the amortization period would be 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. |
Inventories and Cost of Revenue | Inventories and Cost of Revenue Inventories are recorded at the lower of average cost determined on a first-in-first-out basis or market. We establish provisions for inventory if it is obsolete or we hold quantities which are in excess of projected customer demand. The creation of such provisions results in a write-down of inventory to net realizable value and a charge to Cost of revenue. Shipping and handling costs are included in Cost of revenue in our Consolidated Statements of Operations. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method 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. We capitalize costs for the fabrication of masks used by our foundry partners to manufacture our products. The capitalized mask costs begin depreciating to Cost of revenue once the products go into production, and depreciation is straight-lined over a three-year period, which is the expected useful life of the mask. 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. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, which consist primarily of property and equipment and amortizable intangible assets, are carried on our financial statements based on their cost less accumulated depreciation or amortization. We monitor the carrying value of our long-lived assets for potential impairment and test the recoverability of such assets whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. These events or changes in circumstances, including management decisions pertaining to such assets, are referred to as impairment indicators. If an impairment indicator occurs, we perform a test of recoverability by comparing the carrying value of the asset group to its undiscounted expected future cash flows. If the carrying values are in excess of undiscounted expected future cash flows, we measure any impairment by comparing the fair value of the asset group to its carrying value. Fair value is generally determined by considering (i) internally developed discounted projected cash flow analysis of the asset group; (ii) actual third-party valuations; and/or (iii) information available regarding the current market for similar asset groups. If the fair value of the asset group is determined to be less than the carrying amount of the asset group, an impairment in the amount of the difference is recorded in the period that the impairment indicator occurs and is included in our Consolidated Statements of Operations. Estimating future cash flows requires significant judgment and projections may vary from the cash flows eventually realized, which could impact our ability to accurately assess whether an asset has been impaired. There has been no occurrence of events to date that would trigger an impairment analysis of property and equipment. |
Valuation of Goodwill | Valuation of Goodwill Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is not amortized, but is instead tested for impairment annually during the fourth quarter and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. When evaluating whether goodwill is impaired, we make a qualitative assessment to determine if it is more likely than not that the reporting unit's fair value is less than the carrying amount. If the qualitative assessment determines that it is more likely than not that the fair value is less than the carrying amount, the fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit is less than its carrying value, then goodwill impairment exists for the reporting unit. The impairment loss, if any, is recognized for the amount by which the carrying value exceeds the fair value. If the fair value of the reporting unit exceeds its carrying value, no further impairment analysis is needed. For purposes of testing goodwill for impairment, we currently operate as a single reporting unit: the core Lattice ("Core") business, which includes intellectual property and semiconductor devices. We do not expect goodwill impairment to be tax deductible for income tax purposes. We determined that the strategic decision to discontinue our millimeter wave business in the second quarter of 2018 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 fiscal 2018. |
Leases | Leases We adopted ASC 842, " Leases ," effective on December 30, 2018, the first day of our 2019 fiscal year, using the modified retrospective transition method. The new standard requires lessees to record assets and liabilities on the balance sheet for all leases with terms longer than 12 months. We elected the "package of practical expedients" that would allow us to carryforward our historical lease classifications, not reassess historical contracts to determine if they contain leases, and not reassess the initial direct costs for any existing leases. We also elected the practical expedient to not separate lease and non-lease components, which we have applied to all asset classes. Concurrent with our adoption of Topic 842, we have early adopted ASU 2019-01, Leases (Topic 842): Codification Improvements, which grants disclosure relief for interim periods during the year in which a company adopted Topic 842. Right-of-use ("ROU") assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized on the commencement date of the lease based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we determine the present value of lease payments using an incremental borrowing rate based on information from our commercial bank for an equivalent borrowing and term in the respective region as of the lease commencement date. At inception, we determine if an arrangement is a lease, if it includes options to extend or terminate the lease, and if it is reasonably certain that we will exercise the options. Lease cost, representing lease payments over the term of the lease and any capitalizable direct costs less any incentives received, is recognized on a straight-line basis over the lease term as lease expense. We have operating leases for corporate offices, sales offices, research and development facilities, storage facilities, and a data center. The exercise of lease renewal options is at our sole discretion. When deemed reasonably certain of exercise, the renewal options are included in the determination of the lease term and lease payment obligation, respectively. For our leases that contain variable lease payments, residual value guarantees, or restrictive covenants, we have concluded that these inputs are not significant to the determination of the ROU asset and lease liability. |
Research and Development | Research and Development Research and development expenses include costs for compensation and benefits, engineering wafers, depreciation, licenses, and outside engineering services. These expenditures are for the design of new products, intellectual property cores, processes, packaging, and software solutions. Research and development costs are expensed as incurred. |
Restructuring Charges | Restructuring Charges Expenses associated with exit or disposal activities are recognized when incurred under ASC 420, “ Exit or Disposal Cost Obligations ,” for everything except severance expenses and vacated leased facilities. Because we have a history of paying severance benefits, the cost of severance benefits associated with a restructuring plan is recorded when such costs are probable and the amount can be reasonably estimated in accordance with ASC 712, “ Compensation - Nonretirement Postemployment Benefits. ” When leased facilities are vacated, the amount of any ROU asset impairment is calculated in accordance with ASC 360, " Property, Plant, and Equipment " and recorded as a part of restructuring charges. Expenses from other exit or disposal activities, including the cancellation of software contracts and engineering tools or the abandonment of long-lived assets, is recorded as a part of restructuring charges. |
Accounting for Income Taxes | Accounting for Income Taxes Our provision for income tax is comprised of our current tax liability and changes in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements using enacted tax rates and laws that will be in effect when the difference is expected to reverse. Valuation allowances are provided to reduce deferred tax assets to an amount that in management’s judgment is more-likely-than-not to be recoverable against future taxable income. The determination of a valuation allowance and when it should be released requires complex judgment. In assessing the ability to realize deferred tax assets, we evaluate both positive and negative evidence that may exist and consider whether it is more-likely-than-not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Any adjustment to the net deferred tax asset valuation allowance is recorded in the Consolidated Statements of Operations for the period that the adjustment is determined to be required. Our income tax calculations are based on application of the respective U.S. federal, state or foreign tax law . Our tax filings, however, are subject to audit by the relevant tax authorities. Accordingly, we recognize tax liabilities based upon our estimate of whether, and the extent to which, additional taxes will be due when such estimates are more-likely-than-not to be sustained. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. To the extent the final tax liabilities are different than the amounts originally accrued, the increases or decreases as well as any interest or penalties are recorded as income tax expense or benefit in the Consolidated Statements of Operations. |
Stock-Based Compensation | Stock-Based Compensation We use the Black-Scholes option pricing model to estimate the fair value of substantially all share-based awards consistent with the provisions of ASC 718, “ Compensation - Stock Compensation .” We have also granted stock options and RSUs with a market condition to certain executives. We determined and fixed the fair value of the awards with a market condition using a lattice-based option-pricing model. The valuation of these awards incorporated a Monte-Carlo simulation, and considered the likelihood that we would achieve the market condition. The awards with a market condition generally have a two - or three -year vesting period and vest between 0% and 250% of the target amount, based on the Company's relative Total Shareholder Return ("TSR") when compared to the TSR of a component of companies of the PHLX Semiconductor Sector Index over the measurement period. TSR is a measure of stock price appreciation plus dividends paid, if any, in the performance period. We have also granted RSUs with a performance condition to our President and Chief Executive Officer, which 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. We assess the probability of achieving the performance condition on a quarterly basis. We valued the RSUs with a performance condition using the market price on the day of grant. |
Segment Information | Segment Information As of December 28, 2019 , we had one operating segment: the core Lattice business, which includes semiconductor devices, evaluation boards, development hardware, and related intellectual property licensing, services, and sales. Our chief operating decision maker is the Chief Executive Officer, who reviews operating results and financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. |
New Accounting Pronouncements | New Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This guidance requires entities to use a current expected credit loss (“CECL”) methodology to measure impairments of certain financial assets and to recognize an allowance for its estimate of lifetime expected credit losses. The new standard will become effective for our fiscal year 2020, which begins on December 29, 2019. We are evaluating the implementation of ASC 326 and expect it will not have a material impact on our consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which adds new guidance for accounting for tax law changes, year-to-date losses in interim periods, and determining how to apply the income tax guidance to franchise taxes that are partially based on income, as well as other changes to simplify accounting for income taxes. The ASU is effective for calendar year-end public business entities on January 1, 2021. Entities may early adopt the ASU in any interim period for which financial statements have not yet been issued (or made available for issuance). We are currently assessing the impact of ASU 2019-12 on our consolidated financial statements and related disclosures. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Schedules of Revenue Concentration of Risk | Revenue attributable to distributors as a percentage of total revenue is presented in the following table: Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Weikeng Group 30 % 25 % 27 % Arrow Electronics Inc. 25 29 24 All others 27 29 26 Revenue attributable to distributors* 82 % 83 % 77 % * 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. |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
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: Year Ended (in thousands, except per share data) December 28, 2019 December 29, 2018 December 30, 2017 Net income (loss) $ 43,493 $ (26,322 ) $ (70,562 ) Shares used in basic Net income (loss) per share 132,471 126,564 122,677 Dilutive effect of stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition 4,803 — — Shares used in diluted Net (loss) income per share 137,274 126,564 122,677 Basic Net income (loss) per share $ 0.33 $ (0.21 ) $ (0.58 ) Diluted Net income (loss) per share $ 0.32 $ (0.21 ) $ (0.58 ) |
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, ESPP shares, and equity awards with a market condition or performance condition that are antidilutive, aggregating approximately the following number of shares: Year Ended (in thousands) December 28, 2019 December 29, 2018 December 30, 2017 Stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition excluded as they are antidilutive 890 7,567 6,622 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables provide disaggregation of revenue from contracts with customers by major class of revenue, revenue by channel, 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 Year Ended * (In thousands) December 28, 2019 December 29, 2018 December 30, 2017 Product $ 382,548 95% $ 380,468 95% $ 356,502 92% Licensing and services 21,545 5% 18,331 5% 29,459 8% Total revenue $ 404,093 100% $ 398,799 100% $ 385,961 100% Revenue by Channel Year Ended * (In thousands) December 28, 2019 December 29, 2018 December 30, 2017 Product revenue - Distributors $ 331,941 82% $ 330,719 83% $ 297,736 77% Product revenue - Direct 50,607 13% 49,749 12% 58,766 15% Licensing and services revenue 21,545 5% 18,331 5% 29,459 8% Total revenue $ 404,093 100% $ 398,799 100% $ 385,961 100% Revenue by Geographical Market Year Ended * (In thousands) December 28, 2019 December 29, 2018 December 30, 2017 Asia $ 298,765 74% $ 298,119 75% $ 277,638 72% Europe 47,392 12% 45,546 11% 44,547 12% Americas 57,936 14% 55,134 14% 63,776 16% Total revenue $ 404,093 100% $ 398,799 100% $ 385,961 100% * Amounts in periods prior to fiscal 2018 have not been adjusted under the modified retrospective method of adopting ASC 606 and, therefore, are presented under GAAP in effect during that period. |
Contracts with Customers | Contract assets are recorded in Prepaid expenses and other current assets in our Consolidated Balance Sheets. The following table summarizes activity during the periods presented: (In thousands) Balance as of December 31, 2017 $ 7,515 Revenues recorded during the period 11,618 Transferred to accounts receivable or collected (9,990 ) Contract assets as of December 29, 2018 9,143 Revenues recorded during the period 17,356 Transferred to Accounts receivable or collected (20,930 ) Contract assets as of December 28, 2019 $ 5,569 Contract liabilities are included in Accounts payable and accrued expenses on our Consolidated Balance Sheets. The following table summarizes activity during the periods presented: (In thousands) Contract liabilities as of December 31, 2017 $ — Accruals for estimated future stock rotation and scrap returns 4,281 Less: Release of accruals for recognized stock rotation and scrap returns (2,667 ) Contract liabilities as of December 29, 2018 1,614 Accruals for estimated future stock rotation and scrap returns 5,763 Less: Release of accruals for recognized stock rotation and scrap returns (5,064 ) Contract liabilities as of December 28, 2019 $ 2,313 |
Schedule of New Accounting Pronouncements | The effect of adoption on each financial statement line item is detailed in the tables below: Condensed Consolidated Statement of Operations Year ended December 29, 2018 (In thousands, except per share data) As reported under new standard Adjustments Pro forma as if previous standard was in effect Product revenue $ 380,468 $ (14,098 ) $ 366,370 Licensing and services revenue 18,331 (1,478 ) 16,853 Cost of product revenue 179,101 (6,399 ) 172,702 Net loss $ (26,322 ) $ (9,177 ) $ (35,499 ) Net loss per share, basic and diluted $ (0.21 ) $ (0.07 ) $ (0.28 ) Condensed Consolidated Balance Sheets As of December 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 $ 60,890 $ 6,600 $ 67,490 Inventories 67,096 78 67,174 Prepaid expenses and other current assets 27,762 (9,775 ) 17,987 Total assets $ 623,687 $ (3,097 ) $ 620,590 Accounts payable and accrued expenses (includes restructuring) $ 51,763 $ (1,156 ) $ 50,607 Deferred income and allowances on sales to distributors — 34,637 34,637 Accumulated deficit (476,783 ) (36,578 ) (513,361 ) Total liabilities and stockholders' equity $ 623,687 $ (3,097 ) $ 620,590 Condensed Consolidated Statement of Cash Flows Year ended December 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 $ (26,322 ) $ (9,177 ) $ (35,499 ) Accounts receivable, net (3,978 ) (8,408 ) (12,386 ) Inventories 13,177 (448 ) 12,729 Prepaid expenses and other assets (11,667 ) 2,260 (9,407 ) Accounts payable and accrued expenses (includes restructuring) 13,325 (1,614 ) 11,711 Deferred income and allowances on sales to distributors $ — $ 17,387 $ 17,387 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Short-Term Marketable Securities | The following table summarizes the maturities of our formerly-held Short-term marketable securities at fair value. (In thousands) December 28, 2019 December 29, 2018 Short-term marketable securities: Maturing within one year $ — $ 7,454 Maturing between one and two years — 2,170 Total marketable securities $ — $ 9,624 |
Schedule of Accounts Receivable | (In thousands) December 28, 2019 December 29, 2018 Accounts receivable $ 65,023 $ 61,087 Less: Allowance for doubtful accounts (106 ) (197 ) Accounts receivable, net of allowance for doubtful accounts $ 64,917 $ 60,890 |
Schedule of Allowance for Doubtful Accounts | The following table displays the activity related to changes in our allowance for doubtful accounts: Fiscal Years Ended (In thousands) Balance at Charged (Credit) to Charged (credit) to Settlements & write-offs Balance at end of period Allowance for doubtful accounts December 28, 2019 $ 197 $ (30 ) $ (12 ) $ (49 ) $ 106 December 29, 2018 $ 9,371 $ 1 $ 73 $ (9,248 ) $ 197 December 30, 2017 $ 9,299 $ 3 $ 38 $ 31 $ 9,371 The following table displays the activity related to changes in our valuation allowance for deferred tax assets: Fiscal Years Ended (In thousands) Balance at Charged (Credit) to Charged (credit) to Balance at end of period Valuation allowance for deferred tax assets December 28, 2019 $ 207,108 $ (8,609 ) $ — $ 198,499 December 29, 2018 $ 209,691 $ (2,583 ) $ — $ 207,108 December 30, 2017 $ 260,687 $ (50,960 ) $ (36 ) $ 209,691 |
Schedule of Inventories | (In thousands) December 28, 2019 December 29, 2018 Work in progress $ 39,855 $ 47,224 Finished goods 15,125 19,872 Total inventories $ 54,980 $ 67,096 |
Schedule of Accounts Payable and Accrued Expenses | Included in Accounts payable and accrued expenses in the Consolidated Balance Sheets are the following balances: (In thousands) December 28, 2019 December 29, 2018 Trade accounts payable $ 44,350 $ 31,880 Liability for non-cancelable contracts 6,964 6,078 Restructuring 3,060 4,220 Other accrued expenses 5,881 9,585 Total accounts payable and accrued expenses $ 60,255 $ 51,763 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | (In thousands) December 28, 2019 December 29, 2018 Production equipment and software $ 150,591 $ 160,979 Leasehold improvements 12,517 12,648 Office furniture and equipment 2,112 2,623 165,220 176,250 Accumulated depreciation and amortization (125,990 ) (141,367 ) $ 39,230 $ 34,883 Our Property and equipment, net by country at the end of each period was as follows: (In thousands) December 28, 2019 December 29, 2018 United States $ 32,313 $ 27,353 China 1,683 2,360 Philippines 2,683 3,319 Taiwan 1,885 949 Japan 283 324 Other 383 578 Total foreign property and equipment, net 6,917 7,530 Total property and equipment, net $ 39,230 $ 34,883 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The fair value of our long-term debt approximates the carrying value, which is reflected in our Consolidated Balance Sheets as follows: (In thousands) December 28, 2019 December 29, 2018 Principal amount $ 148,125 $ 263,033 Unamortized original issue discount and debt costs (1,579 ) (3,386 ) Less: Current portion of long-term debt (21,474 ) (8,290 ) Long-term debt, net of current portion and unamortized debt issue costs $ 125,072 $ 251,357 |
Schedule of Interest Income and Interest Expense Disclosure | Interest expense related to our long-term debt was included in Interest expense on our Consolidated Statements of Operations as follows: Year Ended (in thousands) December 28, 2019 December 29, 2018 December 30, 2017 Contractual interest $ 10,278 $ 18,600 $ 16,503 Amortization of debt issuance costs and discount 1,659 2,230 1,982 Total Interest expense related to the long-term debt $ 11,937 $ 20,830 $ 18,485 |
Schedule of Debt | As of December 28, 2019 , expected future principal payments on our long-term debt were as follows: Fiscal year (in thousands) 2020 $ 21,875 2021 17,500 2022 17,500 2023 17,500 2024 73,750 $ 148,125 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table displays the activity related to the restructuring plans described above: (In thousands) Severance & Related (1) Lease Termination & Fixed Assets Software Contracts & Engineering Tools (2) Other (3) Total Balance at December 31, 2016 $ 801 $ 1,036 $ 25 $ 12 $ 1,874 Restructuring charges 2,484 811 3,066 835 7,196 Costs paid or otherwise settled (2,093 ) (977 ) (2,731 ) (822 ) (6,623 ) Balance at December 30, 2017 $ 1,192 $ 870 $ 360 $ 25 $ 2,447 Restructuring charges 5,696 7,379 913 3,361 17,349 Costs paid or otherwise settled (5,074 ) 381 (1,055 ) (3,368 ) (9,116 ) Balance at December 29, 2018 $ 1,814 $ 8,630 $ 218 $ 18 $ 10,680 Restructuring charges 625 2,716 — 1,323 4,664 Costs paid or otherwise settled (2,279 ) (4,761 ) (218 ) (476 ) (7,734 ) Balance at December 28, 2019 $ 160 $ 6,585 $ — $ 865 $ 7,610 (1) Includes employee relocation costs and accelerated stock compensation (2) Includes cancellation of contracts, asset impairments, and accelerated depreciation on certain enterprise resource planning and customer relationship management systems (3) In fiscal 2018, "Other" activity included the abandonment of long lived assets related to the restructuring of our agreements with a privately-held investee. In fiscal 2019, "Other" activity included termination fees on the cancellation of certain contracts under the Q2 2019 Sales Plan |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Schedule of Lease Balance Classifications Within Consolidated Balance Sheets and Lease Activities | The following table presents the lease balance classifications within the Consolidated Balance Sheets and summarizes their activity during fiscal 2019: Operating lease right-of-use assets (in thousands) Balance as of December 29, 2018 $ — Right-of-use assets recorded from adoption of ASC 842 29,893 Right-of-use assets obtained in exchange for new lease obligations during the period 747 Reduction in the carrying amount of right-of-use assets during the period (5,797 ) Impairment of right-of-use asset on Portland, Oregon office (recorded in Restructuring charges) (977 ) Adjustments for present value and foreign currency effects (275 ) Balance as of December 28, 2019 $ 23,591 Operating lease liabilities (in thousands) Balance as of December 29, 2018 $ — Lease liabilities recorded from adoption of ASC 842 32,273 Lease liabilities incurred for new lease obligations during the period 747 Accretion of lease liabilities 1,918 Operating cash used by payments on lease liabilities (8,425 ) Adjustments for present value, foreign currency, and restructuring liability effects (389 ) Balance as of December 28, 2019 26,124 Less: Current portion of operating lease liabilities (4,686 ) Long-term operating lease liabilities, net of current portion $ 21,438 |
Schedule of Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities as of December 28, 2019 are as follows: Fiscal year (in thousands) 2020 $ 6,445 2021 5,485 2022 4,468 2023 4,596 2024 4,716 Thereafter 6,705 Total lease payments 32,415 Less: amount representing interest (6,156 ) Less: amount representing restructuring liability adjustments (135 ) Total lease liabilities $ 26,124 |
Schedule of Future Minimum Rental Payments for Operating Leases | Under the previous lease guidance, ASC 840, future minimum lease commitments at December 29, 2018 were as follows: Fiscal year (In thousands) 2019 $ 7,090 2020 6,893 2021 5,452 2022 4,658 2023 4,229 Thereafter 9,930 $ 38,252 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following tables summarize the details of our Intangible assets, net as of December 28, 2019 and December 29, 2018 : December 28, 2019 (In thousands) Weighted Average Amortization Period (in years) Gross Accumulated Amortization Intangible assets, net Developed technology 5.0 $ 110,987 $ (105,594 ) $ 5,393 Customer relationships 5.8 22,934 (21,400 ) 1,534 Licensed technology 5.0 459 (409 ) 50 Total identified intangible assets $ 134,380 $ (127,403 ) $ 6,977 December 29, 2018 (In thousands) Weighted Average Amortization Period (in years) Gross Accumulated Amortization Intangible assets, net Developed technology 5.0 $ 110,987 $ (94,389 ) $ 16,598 Customer relationships 5.8 22,934 (19,048 ) 3,886 Licensed technology 5.0 1,194 (353 ) 841 Total identified intangible assets $ 135,115 $ (113,790 ) $ 21,325 |
Finite-lived Intangible Assets Amortization Expense | We recorded amortization expense related to intangible assets on the Consolidated Statements of Operations as presented in the following table: Year Ended (In thousands) December 28, 2019 December 29, 2018 December 30, 2017 Research and development $ 55 $ 277 $ 569 Amortization of acquired intangible assets 13,558 17,690 31,340 $ 13,613 $ 17,967 $ 31,909 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The annual expected amortization expense of acquired intangible assets is as follows: (In thousands) Amount 2020 $ 4,500 2021 2,239 2022 238 Total $ 6,977 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | Total stock-based compensation expense included in our Consolidated Statements of Operations is presented in the following table: Year Ended (In thousands) December 28, 2019 December 29, 2018 December 30, 2017 Cost of revenue $ 1,422 $ 940 $ 795 Research and development 5,640 4,357 5,245 Selling, general, and administrative 11,837 8,349 6,503 Total stock-based compensation $ 18,899 $ 13,646 $ 12,543 |
Schedule of Share-based Payment Award, Stock Options and Employee Stock Purchase Plan, Valuation Assumptions | The following table summarizes the assumptions used in the valuation of stock option and ESPP compensation: Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Employee and Director Stock Options * Expected volatility n/a 39.87% to 41.11% 40.96% to 48.01% Risk-free interest rate n/a 2.29% to 2.78% 1.99% to 2.09% Expected term (years) n/a 4.08 to 4.25 4.08 to 4.25 Employee Stock Purchase Plan ** Weighted average expected volatility 31.6% 36.4% n/a Weighted average risk-free interest rate 2.51% 1.61% n/a Expected term 6 months 6 months n/a * No stock options granted during fiscal 2019 ** ESPP suspended during fiscal 2017 only |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes our stock option activity and related information for the year ended December 28, 2019 : (Shares and aggregate intrinsic value in thousands) Shares Weighted Weighted average Aggregate Balance, December 29, 2018 6,616 $ 5.94 Granted — — Effect of vesting multiplier 36 Exercised (2,715 ) 5.73 Forfeited or expired (605 ) 5.72 Balance, December 28, 2019 3,332 $ 6.16 Vested and expected to vest at December 28, 2019 3,332 $ 6.16 4.50 $ 43,553 Exercisable, December 28, 2019 1,721 $ 6.00 3.95 $ 22,758 The following table summarizes the activity for our stock options and RSUs with a market condition or performance condition: (Shares in thousands) Unvested Vested Total Balance, December 29, 2018 909 — 909 Granted 584 — 584 Effect of vesting multiplier 260 — 260 Vested (484 ) 71 (413 ) Exercised — (71 ) (71 ) Canceled (106 ) — (106 ) Balance, December 28, 2019 1,163 — 1,163 |
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes our RSU activity for the year ended December 28, 2019 : (Shares in thousands) Shares Weighted average grant date fair value Balance, December 29, 2018 4,412 $ 7.53 Granted 2,445 16.23 Effect of vesting multiplier 216 — Vested (1,734 ) 8.10 Forfeited or expired (564 ) 7.27 Balance, December 28, 2019 4,775 $ 12.23 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table summarizes the assumptions used in the valuation of stock options and RSUs with a market or performance condition: Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Executive stock options with a market condition Expected volatility n/a n/a 41% Risk-free interest rate n/a n/a 1.9% Expected term (years) n/a n/a 4.5 Executive RSUs with a market or performance condition Expected volatility 40.15% to 41.10% 41.06% to 41.74% n/a Risk-free interest rate 1.66% to 2.55% 2.71% to 2.87% n/a Expected term (years) 3.00 3.00 to 3.16 n/a |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The domestic and foreign components of Income (loss) before income taxes were as follows: Year Ended (In thousands) December 28, 2019 December 29, 2018 December 30, 2017 Domestic $ 33,417 $ (8,274 ) $ (17,341 ) Foreign 11,648 (15,695 ) (52,372 ) Income (loss) before taxes $ 45,065 $ (23,969 ) $ (69,713 ) |
Schedule of Components of Income Tax Expense (Benefit) | The components of the Income tax expense are as follows: Year Ended (In thousands) December 28, 2019 December 29, 2018 December 30, 2017 Current: Federal $ 499 $ 536 $ 508 State 45 38 30 Foreign 1,345 1,869 304 1,889 2,443 842 Deferred: Federal — — — State — — — Foreign (317 ) (90 ) 7 (317 ) (90 ) 7 Income tax expense $ 1,572 $ 2,353 $ 849 |
Schedule of Effective Income Tax Rate Reconciliation | Income tax expense differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pretax income as a result of the following differences: Year Ended December 28, 2019 December 29, 2018 December 30, 2017 % % % Statutory federal rate 21 (21) (35) Adjustments for tax effects of: State taxes, net 3 (6) (7) Research and development credits 3 (5) (1) Stock compensation (11) 8 3 Foreign rate differential (2) 20 28 Foreign dividends — — 1 Foreign withholding taxes 3 5 — Other permanent 6 2 — Other deferred tax asset adjustment — 13 — Valuation allowance (19) (11) (73) Change in uncertain tax benefit accrual — 2 1 Stock compensation (ASU 2016-09) adoption — — (8) Tax rate change — — 93 Other — 3 (1) Effective income tax rate 4 10 1 |
Schedule of Deferred Tax Assets and Liabilities | The components of our net deferred tax assets are as follows: (In thousands) December 28, 2019 December 29, 2018 Deferred tax assets: Accrued expenses and reserves $ 4,137 $ 3,714 Inventory — 2 Deferred Revenue — — Stock-based and deferred compensation 2,812 2,660 Interest expense disallowance — 1,283 Intangible assets 12,294 14,649 Fixed assets 256 281 Net operating loss carry forwards 86,899 88,333 Tax credit carry forwards 90,339 92,208 Capital loss carry forwards 4,235 5,007 Other 1,059 1,130 Total deferred tax assets 202,031 209,267 Less: valuation allowance (198,499 ) (207,108 ) Net deferred tax assets 3,532 2,159 Deferred tax liabilities: Fixed assets 2,620 1,536 Deferred revenue 434 525 Other — (57 ) Total deferred tax liabilities 3,054 2,004 Net deferred tax assets $ 478 $ 155 |
Schedule of Valuation Allowance | The following table displays the activity related to changes in our allowance for doubtful accounts: Fiscal Years Ended (In thousands) Balance at Charged (Credit) to Charged (credit) to Settlements & write-offs Balance at end of period Allowance for doubtful accounts December 28, 2019 $ 197 $ (30 ) $ (12 ) $ (49 ) $ 106 December 29, 2018 $ 9,371 $ 1 $ 73 $ (9,248 ) $ 197 December 30, 2017 $ 9,299 $ 3 $ 38 $ 31 $ 9,371 The following table displays the activity related to changes in our valuation allowance for deferred tax assets: Fiscal Years Ended (In thousands) Balance at Charged (Credit) to Charged (credit) to Balance at end of period Valuation allowance for deferred tax assets December 28, 2019 $ 207,108 $ (8,609 ) $ — $ 198,499 December 29, 2018 $ 209,691 $ (2,583 ) $ — $ 207,108 December 30, 2017 $ 260,687 $ (50,960 ) $ (36 ) $ 209,691 |
Schedule of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns Roll Forward | The following table summarizes the changes to unrecognized tax benefits for the fiscal years presented: (In thousands) Amount Balance at December 31, 2016 $ 47,623 Additions based on tax positions related to the current year 471 Additions based on tax positions of prior years 11 Reduction for tax positions of prior years (1,226 ) Reduction as a result of lapse of applicable statute of limitations (2,047 ) Balance at December 30, 2017 44,832 Additions based on tax positions related to the current year 389 Additions based on tax positions of prior years 19 Reductions for tax positions of prior years (5 ) Reduction as a result of lapse of applicable statute of limitations (1,235 ) Balance at December 29, 2018 44,000 Additions based on tax positions related to the current year 238 Additions based on tax positions of prior years 334 Reductions for tax positions of prior years (213 ) Reduction as a result of lapse of applicable statute of limitations (2,432 ) Balance at December 28, 2019 $ 41,927 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | A summary of the Company's consolidated quarterly results of operations is as follows: 2019 2018 (In thousands, except per share data) Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Revenue $ 100,237 $ 103,469 $ 102,296 $ 98,091 $ 95,977 $ 101,484 $ 102,715 $ 98,623 Gross margin 59,293 61,439 60,038 57,652 54,306 58,364 50,248 56,521 Restructuring charges (55 ) 252 3,126 1,341 11,854 90 4,376 1,029 Net income (loss) $ 13,987 $ 13,539 $ 8,559 $ 7,408 $ (7,121 ) $ 6,974 $ (20,223 ) $ (5,952 ) Net income (loss) per share - basic $ 0.10 $ 0.10 $ 0.06 $ 0.06 $ (0.05 ) $ 0.05 $ (0.16 ) $ (0.05 ) Net income (loss) per share - diluted $ 0.10 $ 0.10 $ 0.06 $ 0.05 $ (0.05 ) $ 0.05 $ (0.16 ) $ (0.05 ) |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Concentrations of Risk (Details) - Sell-Through Distributors Concentration Risk | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 82.00% | 83.00% | 77.00% |
Weikeng Group | Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 30.00% | 25.00% | 27.00% |
Weikeng Group | Trade receivables | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 38.00% | 23.00% | |
Arrow Electronics Inc. | Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 25.00% | 29.00% | 24.00% |
Arrow Electronics Inc. | Trade receivables | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 40.00% | 41.00% | |
All others | Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 27.00% | 29.00% | 26.00% |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Dec. 28, 2019 | |
Equipment and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Equipment and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Tools, Dies and Molds | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 1 year |
Tools, Dies and Molds | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Building | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies - Stock-Based Compensation (Details) | 12 Months Ended |
Dec. 28, 2019period | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Contractual terms of options granted | 10 years |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Contractual terms of options granted | 2 years |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Contractual terms of options granted | 3 years |
Performance Shares | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting percentage | 0.00% |
Performance Shares | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting percentage | 250.00% |
President and Chief Executive Officer | Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of consecutive trailing four-quarter periods for measurement | 2 |
Basis of Presentation and Sig_7
Basis of Presentation and Significant Accounting Policies - Segment Information (Details) | 12 Months Ended |
Dec. 28, 2019segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) | $ 13,987 | $ 13,539 | $ 8,559 | $ 7,408 | $ (7,121) | $ 6,974 | $ (20,223) | $ (5,952) | $ 43,493 | $ (26,322) | $ (70,562) |
Shares used in diluted Net (loss) income per share (in shares) | 132,471 | 126,564 | 122,677 | ||||||||
Dilutive effect of stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition (in shares) | 4,803 | 0 | 0 | ||||||||
Shares used in diluted Net (loss) income per share (in shares) | 137,274 | 126,564 | 122,677 | ||||||||
Basic Net income (loss) per share (in usd per share) | $ 0.10 | $ 0.10 | $ 0.06 | $ 0.06 | $ (0.05) | $ 0.05 | $ (0.16) | $ (0.05) | $ 0.33 | $ (0.21) | $ (0.58) |
Diluted Net income (loss) per share (in usd per share) | $ 0.10 | $ 0.10 | $ 0.06 | $ 0.05 | $ (0.05) | $ 0.05 | $ (0.16) | $ (0.05) | $ 0.32 | $ (0.21) | $ (0.58) |
Stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition excluded as they are antidilutive (in shares) | 890 | 7,567 | 6,622 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | $ 100,237 | $ 103,469 | $ 102,296 | $ 98,091 | $ 95,977 | $ 101,484 | $ 102,715 | $ 98,623 | $ 404,093 | $ 398,799 | $ 385,961 |
Revenue from contracts with customers, percentage | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | ||||||
Asia | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | $ 298,765 | $ 298,119 | $ 277,638 | ||||||||
Revenue from contracts with customers, percentage | 74.00% | 75.00% | 74.00% | 75.00% | 72.00% | ||||||
Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | $ 47,392 | $ 45,546 | $ 44,547 | ||||||||
Revenue from contracts with customers, percentage | 12.00% | 11.00% | 12.00% | 11.00% | 12.00% | ||||||
Americas | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | $ 57,936 | $ 55,134 | $ 63,776 | ||||||||
Revenue from contracts with customers, percentage | 14.00% | 14.00% | 14.00% | 14.00% | 16.00% | ||||||
Product | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | $ 382,548 | $ 380,468 | $ 356,502 | ||||||||
Revenue from contracts with customers, percentage | 95.00% | 95.00% | 95.00% | 95.00% | 92.00% | ||||||
Licensing and services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | $ 21,545 | $ 18,331 | $ 29,459 | ||||||||
Revenue from contracts with customers, percentage | 5.00% | 5.00% | 5.00% | 5.00% | 8.00% | ||||||
Product revenue - Distributors | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | $ 331,941 | $ 330,719 | $ 297,736 | ||||||||
Revenue from contracts with customers, percentage | 82.00% | 83.00% | 82.00% | 83.00% | 77.00% | ||||||
Product revenue - Direct | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | $ 50,607 | $ 49,749 | $ 58,766 | ||||||||
Revenue from contracts with customers, percentage | 13.00% | 12.00% | 13.00% | 12.00% | 15.00% | ||||||
Licensing and services revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | $ 21,545 | $ 18,331 | $ 29,459 | ||||||||
Revenue from contracts with customers, percentage | 5.00% | 5.00% | 5.00% | 5.00% | 8.00% |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Contract Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Movement In Contract With Customer, Asset, Net [Roll Forward] | ||
Beginning balance | $ 9,143 | $ 7,515 |
Revenues recorded during the period | 17,356 | 11,618 |
Transferred to accounts receivable or collected | (20,930) | (9,990) |
Ending balance | $ 5,569 | $ 9,143 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Contract Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Movement In Contract With Customer, Liability, Net [Roll Forward] | ||
Beginning balance | $ 1,614 | $ 0 |
Accruals for estimated future stock rotation and scrap returns | 5,763 | 4,281 |
Less: Release of accruals for recognized stock rotation and scrap returns | (5,064) | (2,667) |
Ending balance | 2,313 | 1,614 |
Processing of RMAs | 5,000 | 3,700 |
Net revenue increase (decrease) | $ 100 | $ (1,000) |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Schedule of New Accounting Standard Impact on Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Condensed Consolidated Statement of Operations | |||||||||||
Revenue | $ 100,237 | $ 103,469 | $ 102,296 | $ 98,091 | $ 95,977 | $ 101,484 | $ 102,715 | $ 98,623 | $ 404,093 | $ 398,799 | $ 385,961 |
Net loss | 13,987 | 13,539 | 8,559 | 7,408 | (7,121) | 6,974 | (20,223) | (5,952) | 43,493 | (26,322) | (70,562) |
Cost of revenue | 165,671 | $ 179,360 | 169,382 | ||||||||
Net loss per share, basic and diluted (in dollars per share) | $ (0.21) | ||||||||||
Condensed Consolidated Balance Sheets | |||||||||||
Accounts receivable, net of allowance for doubtful accounts | 64,917 | 60,890 | 64,917 | $ 60,890 | |||||||
Inventories | 54,980 | 67,096 | 54,980 | 67,096 | |||||||
Prepaid expenses and other current assets | 24,452 | 27,762 | 24,452 | 27,762 | |||||||
Total assets | 612,016 | 623,687 | 612,016 | 623,687 | |||||||
Accounts payable and accrued expenses (includes restructuring) | 60,255 | 51,763 | 60,255 | 51,763 | |||||||
Deferred income and allowances on sales to distributors | 0 | 0 | |||||||||
Accumulated deficit | (433,290) | (476,783) | (433,290) | (476,783) | |||||||
Total liabilities and stockholders' equity | 612,016 | 623,687 | 612,016 | 623,687 | |||||||
Condensed Consolidated Statement of Cash Flows | |||||||||||
Net income (loss) | $ 13,987 | $ 13,539 | $ 8,559 | $ 7,408 | (7,121) | $ 6,974 | $ (20,223) | $ (5,952) | 43,493 | (26,322) | (70,562) |
Accounts receivable, net | (4,027) | (3,978) | 44,613 | ||||||||
Inventories | 12,116 | 13,177 | (902) | ||||||||
Prepaid expenses and other assets | 3,740 | (11,667) | 889 | ||||||||
Accounts payable and accrued expenses (includes restructuring) | 9,261 | 13,325 | (23,588) | ||||||||
Deferred income and allowances on sales to distributors | 0 | ||||||||||
Adjustments | Accounting Standards Update 2014-09 | |||||||||||
Condensed Consolidated Statement of Operations | |||||||||||
Net loss | $ (9,177) | ||||||||||
Net loss per share, basic and diluted (in dollars per share) | $ (0.07) | ||||||||||
Condensed Consolidated Balance Sheets | |||||||||||
Accounts receivable, net of allowance for doubtful accounts | 6,600 | $ 6,600 | |||||||||
Inventories | 78 | 78 | |||||||||
Prepaid expenses and other current assets | (9,775) | (9,775) | |||||||||
Total assets | (3,097) | (3,097) | |||||||||
Accounts payable and accrued expenses (includes restructuring) | (1,156) | (1,156) | |||||||||
Deferred income and allowances on sales to distributors | 34,637 | 34,637 | |||||||||
Accumulated deficit | (36,578) | (36,578) | |||||||||
Total liabilities and stockholders' equity | (3,097) | (3,097) | |||||||||
Condensed Consolidated Statement of Cash Flows | |||||||||||
Net income (loss) | (9,177) | ||||||||||
Accounts receivable, net | (8,408) | ||||||||||
Inventories | (448) | ||||||||||
Prepaid expenses and other assets | 2,260 | ||||||||||
Accounts payable and accrued expenses (includes restructuring) | (1,614) | ||||||||||
Deferred income and allowances on sales to distributors | 17,387 | ||||||||||
Pro forma as if previous standard was in effect | |||||||||||
Condensed Consolidated Statement of Operations | |||||||||||
Net loss | $ (35,499) | ||||||||||
Net loss per share, basic and diluted (in dollars per share) | $ (0.28) | ||||||||||
Condensed Consolidated Balance Sheets | |||||||||||
Accounts receivable, net of allowance for doubtful accounts | 67,490 | $ 67,490 | |||||||||
Inventories | 67,174 | 67,174 | |||||||||
Prepaid expenses and other current assets | 17,987 | 17,987 | |||||||||
Total assets | 620,590 | 620,590 | |||||||||
Accounts payable and accrued expenses (includes restructuring) | 50,607 | 50,607 | |||||||||
Deferred income and allowances on sales to distributors | 34,637 | 34,637 | |||||||||
Accumulated deficit | (513,361) | (513,361) | |||||||||
Total liabilities and stockholders' equity | $ 620,590 | 620,590 | |||||||||
Condensed Consolidated Statement of Cash Flows | |||||||||||
Net income (loss) | (35,499) | ||||||||||
Accounts receivable, net | (12,386) | ||||||||||
Inventories | 12,729 | ||||||||||
Prepaid expenses and other assets | (9,407) | ||||||||||
Accounts payable and accrued expenses (includes restructuring) | 11,711 | ||||||||||
Deferred income and allowances on sales to distributors | 17,387 | ||||||||||
Product | |||||||||||
Condensed Consolidated Statement of Operations | |||||||||||
Revenue | 382,548 | 380,468 | 356,502 | ||||||||
Cost of revenue | 179,101 | ||||||||||
Condensed Consolidated Statement of Cash Flows | |||||||||||
Deferred income and allowances on sales to distributors | 0 | 0 | (15,007) | ||||||||
Product | Adjustments | Accounting Standards Update 2014-09 | |||||||||||
Condensed Consolidated Statement of Operations | |||||||||||
Revenue | (14,098) | ||||||||||
Cost of revenue | (6,399) | ||||||||||
Product | Pro forma as if previous standard was in effect | |||||||||||
Condensed Consolidated Statement of Operations | |||||||||||
Revenue | 366,370 | ||||||||||
Cost of revenue | 172,702 | ||||||||||
Licensing and services | |||||||||||
Condensed Consolidated Statement of Operations | |||||||||||
Revenue | 21,545 | 18,331 | 29,459 | ||||||||
Condensed Consolidated Statement of Cash Flows | |||||||||||
Deferred income and allowances on sales to distributors | $ 0 | (68) | $ (495) | ||||||||
Licensing and services | Adjustments | Accounting Standards Update 2014-09 | |||||||||||
Condensed Consolidated Statement of Operations | |||||||||||
Revenue | (1,478) | ||||||||||
Licensing and services | Pro forma as if previous standard was in effect | |||||||||||
Condensed Consolidated Statement of Operations | |||||||||||
Revenue | $ 16,853 |
Balance Sheet Components - Shor
Balance Sheet Components - Short-Term Marketable Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Short-term marketable securities term | 2 years | |
Short-term marketable securities: | ||
Maturing within one year | $ 0 | $ 7,454 |
Maturing between one and two years | 0 | 2,170 |
Total marketable securities | $ 0 | $ 9,624 |
Balance Sheet Components - Acco
Balance Sheet Components - Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts receivable | $ 61,087 | $ 65,023 |
Less: Allowance for doubtful accounts | (197) | (106) |
Accounts receivable, net of allowance for doubtful accounts | 60,890 | $ 64,917 |
Accounts receivable, write-offs | $ 9,000 |
Balance Sheet Components - Allo
Balance Sheet Components - Allowance for Doubtful Accounts (Details) - Allowance for doubtful accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 197 | $ 9,371 | $ 9,299 |
Charged (Credit) to costs and expenses | (30) | 1 | 3 |
Charged (credit) to other accounts | (12) | 73 | 38 |
Settlements & write-offs net of recoveries | (49) | (9,248) | 31 |
Balance at end of period | $ 106 | $ 197 | $ 9,371 |
Balance Sheet Components - Inve
Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | |
Inventory [Line Items] | |||
Work in progress | $ 39,855 | $ 47,224 | |
Finished goods | 15,125 | 19,872 | |
Total inventories | $ 54,980 | $ 67,096 | |
Discontinued Operations | Millimeter Wave Business | |||
Inventory [Line Items] | |||
Inventory write-down | $ 8,000 |
Balance Sheet Components - Ac_2
Balance Sheet Components - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Trade accounts payable | $ 44,350 | $ 31,880 |
Liability for non-cancelable contracts | 6,964 | 6,078 |
Restructuring | 3,060 | 4,220 |
Other accrued expenses | 5,881 | 9,585 |
Total accounts payable and accrued expenses | $ 60,255 | $ 51,763 |
Balance Sheet Components - Narr
Balance Sheet Components - Narrative (Details) $ in Millions | Dec. 28, 2019USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Capitalized implementation costs | $ 2.5 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 165,220 | $ 176,250 |
Accumulated depreciation and amortization | (125,990) | (141,367) |
Property and equipment, net | 39,230 | 34,883 |
United States | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 32,313 | 27,353 |
China | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 1,683 | 2,360 |
Philippines | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 2,683 | 3,319 |
Taiwan | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 1,885 | 949 |
Japan | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 283 | 324 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 383 | 578 |
Foreign countries | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 6,917 | 7,530 |
Production equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 150,591 | 160,979 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 12,517 | 12,648 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,112 | $ 2,623 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2017 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 11,600 | $ 13,400 | $ 16,300 | |
Proceeds from sale of building | 0 | 0 | 7,895 | |
Property and equipment, net | 39,230 | 34,883 | ||
Accumulated depreciation and amortization | 125,990 | 141,367 | ||
Gain on sale of building | 0 | 0 | $ 4,624 | |
Restructuring | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 400 | $ 600 | ||
Shanghai, China | Building | ||||
Property, Plant and Equipment [Line Items] | ||||
Proceeds from sale of building | $ 7,900 | |||
Property and equipment, net | 3,600 | |||
Accumulated depreciation and amortization | 1,400 | |||
Direct selling costs | 1,100 | |||
Gain on sale of building | $ 4,600 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | May 17, 2019 | Jun. 29, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Debt Instrument [Line Items] | |||||
Payment of debt issuance cost | $ 2,086,000 | $ 0 | $ 0 | ||
Loss on re-financing of long-term debt | $ 2,200,000 | $ 2,235,000 | $ 0 | $ 0 | |
Previous Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Repayments of debt | $ 204,400,000 | ||||
Secured Debt | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, term | 5 years | ||||
Debt principal amount | $ 175,000,000 | ||||
Amount drawn | 175,000,000 | ||||
Debt instrument, interest rate, effective percentage | 3.16% | ||||
Debt instrument, periodic payment | $ 4,400,000 | ||||
Secured Debt | Credit Agreement, May 17, 2019 | |||||
Debt Instrument [Line Items] | |||||
Payment of debt issuance cost | $ 2,100,000 | ||||
Revolving Credit Facility | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, term | 5 years | ||||
Debt principal amount | $ 75,000,000 | ||||
Amount drawn | $ 31,500,000 | ||||
Commitment fee, percentage | 0.20% | ||||
Option One | Minimum | Secured Debt | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 0.25% | ||||
Option One | Maximum | Secured Debt | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 1.00% | ||||
Option Two | Secured Debt | Credit Agreement, May 17, 2019 | Federal Funds Rate | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 0.50% | ||||
Option Two | Minimum | Secured Debt | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 1.25% | ||||
Option Two | Maximum | Secured Debt | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 2.00% | ||||
Option Three | Secured Debt | Credit Agreement, May 17, 2019 | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 1.00% |
Long-Term Debt - Debt Schedule
Long-Term Debt - Debt Schedule (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Debt Disclosure [Abstract] | ||
Principal amount | $ 148,125 | $ 263,033 |
Unamortized original issue discount and debt costs | (1,579) | (3,386) |
Less: Current portion of long-term debt | (21,474) | (8,290) |
Long-term debt, net of current portion and unamortized debt issue costs | $ 125,072 | $ 251,357 |
Long-Term Debt - Interest Expen
Long-Term Debt - Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Debt Disclosure [Abstract] | |||
Contractual interest | $ 10,278 | $ 18,600 | $ 16,503 |
Amortization of debt issuance costs and discount | 1,659 | 2,230 | 1,982 |
Total Interest expense related to the long-term debt | $ 11,937 | $ 20,830 | $ 18,485 |
Long-Term Debt - Future Princip
Long-Term Debt - Future Principal Payments (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 21,875 |
2021 | 17,500 |
2022 | 17,500 |
2023 | 17,500 |
2024 | 73,750 |
Total | $ 148,125 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 30, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Jun. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of operating lease right-of-use asset (recorded in Restructuring charges) | $ 4,664 | $ 17,349 | $ 7,196 | ||
Q2 2019 Sales Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of operating lease right-of-use asset (recorded in Restructuring charges) | 2,000 | ||||
December 2018 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of operating lease right-of-use asset (recorded in Restructuring charges) | 0 | 4,800 | |||
June 2018 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of operating lease right-of-use asset (recorded in Restructuring charges) | (100) | 4,200 | |||
Restructuring cost incurred to date | 4,100 | ||||
June 2017 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of operating lease right-of-use asset (recorded in Restructuring charges) | $ 1,000 | 2,700 | 8,400 | 8,000 | |
Restructuring cost incurred to date | 19,100 | ||||
Minimum | June 2017 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total expected restructuring cost | 20,000 | ||||
Maximum | June 2017 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total expected restructuring cost | 21,500 | ||||
Lease Termination & Fixed Assets | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of operating lease right-of-use asset (recorded in Restructuring charges) | $ 2,716 | $ 7,379 | $ 811 | ||
Lease Termination & Fixed Assets | June 2017 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of operating lease right-of-use asset (recorded in Restructuring charges) | $ 2,700 | ||||
Percentage of facility vacated | 100.00% | ||||
Hyderabad | Hyderabad | Disposed of by Sale | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Ownership percentage | 100.00% |
Restructuring - Activity Relate
Restructuring - Activity Related to Restructuring Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | $ 10,680 | $ 2,447 | $ 1,874 |
Restructuring charges | 4,664 | 17,349 | 7,196 |
Costs paid or otherwise settled | (7,734) | (9,116) | (6,623) |
Ending Balance | 7,610 | 10,680 | 2,447 |
Severance & Related | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 1,814 | 1,192 | 801 |
Restructuring charges | 625 | 5,696 | 2,484 |
Costs paid or otherwise settled | (2,279) | (5,074) | (2,093) |
Ending Balance | 160 | 1,814 | 1,192 |
Lease Termination & Fixed Assets | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 8,630 | 870 | 1,036 |
Restructuring charges | 2,716 | 7,379 | 811 |
Costs paid or otherwise settled | (4,761) | 381 | (977) |
Ending Balance | 6,585 | 8,630 | 870 |
Software Contracts & Engineering Tools | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 218 | 360 | 25 |
Restructuring charges | 0 | 913 | 3,066 |
Costs paid or otherwise settled | (218) | (1,055) | (2,731) |
Ending Balance | 0 | 218 | 360 |
Other | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 18 | 25 | 12 |
Restructuring charges | 1,323 | 3,361 | 835 |
Costs paid or otherwise settled | (476) | (3,368) | (822) |
Ending Balance | $ 865 | $ 18 | $ 25 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 30, 2018 | |
Lessee, Lease, Description [Line Items] | ||||
Fixed operating lease expenses | $ 7,700 | |||
Rental expense | $ 8,300 | $ 8,900 | ||
Leases renewal term (up to) | 5 years | |||
Leases termination period (within) | 1 year | |||
Operating leases, the weighted-average remaining lease term | 5 years 8 months 12 days | |||
Operating leases, weighted-average discount rate | 7.00% | |||
Operating lease right-of-use assets | $ 23,591 | 0 | ||
Total lease liabilities | 26,124 | $ 0 | ||
Operating leases obligation for previously restructured facilities | $ 6,600 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Leases remaining term | 1 year | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Leases remaining term | 8 years | |||
Accounting Standards Update 2016-02 | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease right-of-use assets | $ 29,900 | |||
Total lease liabilities | $ 32,300 |
Leases - Schedule of Lease Bala
Leases - Schedule of Lease Balance Classifications Within Consolidated Balance Sheets and Lease Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Operating lease right-of-use assets | |||
Balance as of December 29, 2018 | $ 0 | ||
Right-of-use assets recorded from adoption of ASC 842 | 29,893 | ||
Right-of-use assets obtained in exchange for new lease obligations during the period | 747 | ||
Reduction in the carrying amount of right-of-use assets during the period | (5,797) | $ 0 | $ 0 |
Impairment of right-of-use asset on Portland, Oregon office (recorded in Restructuring charges) | (977) | ||
Adjustments for present value and foreign currency effects | (275) | ||
Balance as of December 28, 2019 | 23,591 | 0 | |
Operating lease liabilities | |||
Balance as of December 29, 2018 | 0 | ||
Lease liabilities recorded from adoption of ASC 842 | 32,273 | ||
Lease liabilities incurred for new lease obligations during the period | 747 | ||
Accretion of lease liabilities | 1,918 | ||
Operating cash used by payments on lease liabilities | (8,425) | ||
Adjustments for present value, foreign currency, and restructuring liability effects | (389) | ||
Balance as of December 28, 2019 | 26,124 | $ 0 | |
Less: Current portion of operating lease liabilities | (4,686) | ||
Long-term operating lease liabilities, net of current portion | $ 21,438 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Fiscal year | ||
2020 | $ 6,445 | |
2021 | 5,485 | |
2022 | 4,468 | |
2023 | 4,596 | |
2024 | 4,716 | |
Thereafter | 6,705 | |
Total lease payments | 32,415 | |
Less: amount representing interest | (6,156) | |
Less: amount representing restructuring liability adjustments | (135) | |
Total lease liabilities | $ 26,124 | $ 0 |
Leases - Future Minimum Rental
Leases - Future Minimum Rental Payments (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Fiscal year | |
2019 | $ 7,090 |
2020 | 6,893 |
2021 | 5,452 |
2022 | 4,658 |
2023 | 4,229 |
Thereafter | 9,930 |
Total future minimum lease commitments | $ 38,252 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 134,380 | $ 135,115 |
Accumulated Amortization | (127,403) | (113,790) |
Intangible assets, net | $ 6,977 | $ 21,325 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (in years) | 5 years | 5 years |
Intangible assets, gross | $ 110,987 | $ 110,987 |
Accumulated Amortization | (105,594) | (94,389) |
Intangible assets, net | $ 5,393 | $ 16,598 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (in years) | 5 years 9 months 22 days | 5 years 9 months 22 days |
Intangible assets, gross | $ 22,934 | $ 22,934 |
Accumulated Amortization | (21,400) | (19,048) |
Intangible assets, net | $ 1,534 | $ 3,886 |
Licensed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (in years) | 5 years | 5 years |
Intangible assets, gross | $ 459 | $ 1,194 |
Accumulated Amortization | (409) | (353) |
Intangible assets, net | $ 50 | $ 841 |
Intangible Assets - Amortizatio
Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of acquired intangible assets | $ 13,613 | $ 17,967 | $ 31,909 |
Research and development | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of acquired intangible assets | 55 | 277 | 569 |
Amortization of acquired intangible assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of acquired intangible assets | $ 13,558 | $ 17,690 | $ 31,340 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of annual expected amortization expense of acquired intangible assets (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 | $ 4,500 | |
2021 | 2,239 | |
2022 | 238 | |
Intangible assets, net | $ 6,977 | $ 21,325 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 29, 2018 | Jun. 30, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment of acquired intangible assets | $ 600 | $ 11,900 | $ 0 | $ 12,486 | $ 32,431 |
Silicon Image, Inc | Developed technology | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment of acquired intangible assets | $ 32,400 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Narrative (Details) | 12 Months Ended | |||
Dec. 28, 2019USD ($)periodplan$ / sharesshares | Dec. 29, 2018USD ($)$ / sharesshares | Dec. 30, 2017USD ($)$ / shares | May 31, 2012shares | |
Class of Stock [Line Items] | ||||
Number of equity incentive plans | plan | 2 | |||
Contractual terms of options granted (do not exceed) | 10 years | |||
Compensation expense | $ 18,899,000 | $ 13,646,000 | $ 12,543,000 | |
Plan adjustment ratio | 2.2 | |||
Number of outstanding option (in shares) | shares | 3,332,000 | 6,616,000 | ||
Total unrecognized compensation cost related to unvested employee and director stock options | $ 3,200,000 | |||
Total intrinsic value of options exercised | 17,800,000 | $ 6,500,000 | 2,200,000 | |
Total fair value of options and RSU's vested and expensed | $ 18,400,000 | $ 13,000,000 | $ 12,500,000 | |
Grant date weighted average fair values based on fair value assumptions, options (in dollars per share) | $ / shares | $ 2.73 | $ 2.02 | ||
Grant date weighted average fair values based on fair assumptions, non-options (in dollars per share) | $ / shares | $ 1.69 | $ 1.50 | ||
Chief Executive Officer | ||||
Class of Stock [Line Items] | ||||
Compensation expense | $ 1,400,000 | |||
Executive Officer | ||||
Class of Stock [Line Items] | ||||
Compensation expense | $ 5,700,000 | |||
Minimum | ||||
Class of Stock [Line Items] | ||||
Contractual terms of options granted (do not exceed) | 2 years | |||
Maximum | ||||
Class of Stock [Line Items] | ||||
Contractual terms of options granted (do not exceed) | 3 years | |||
Employee and Director Stock Options | ||||
Class of Stock [Line Items] | ||||
Award vesting period | 4 years | |||
Weighted average period for recognition | 1 year 6 months | |||
Restricted Stock Units (RSUs) | ||||
Class of Stock [Line Items] | ||||
Award vesting period | 4 years | |||
Grant date weighted average fair values based on fair assumptions, non-options (in dollars per share) | $ / shares | $ 16.23 | |||
Unrecognized compensation expense related to unvested RSU's | $ 51,900,000 | |||
Restricted Stock Units (RSUs) | Executive Officer | ||||
Class of Stock [Line Items] | ||||
Compensation expense | $ 900,000 | $ 500,000 | ||
Performance Shares | ||||
Class of Stock [Line Items] | ||||
Number of outstanding option (in shares) | shares | 0 | 0 | ||
Performance Shares | Executive Officer | ||||
Class of Stock [Line Items] | ||||
Award vesting period | 2 years | |||
Award vesting comparison period | 2 years | |||
Performance Shares | President and Chief Executive Officer | ||||
Class of Stock [Line Items] | ||||
Award vesting period | 3 years | |||
Number of consecutive trailing four-quarter periods for measurement | period | 2 | |||
Performance Shares | Minimum | ||||
Class of Stock [Line Items] | ||||
Award vesting percentage | 0.00% | |||
Performance Shares | Minimum | Executive Officer | ||||
Class of Stock [Line Items] | ||||
Award vesting percentage | 0.00% | |||
Performance Shares | Maximum | ||||
Class of Stock [Line Items] | ||||
Award vesting percentage | 250.00% | |||
Performance Shares | Maximum | Executive Officer | ||||
Class of Stock [Line Items] | ||||
Award vesting percentage | 200.00% | |||
Performance Shares | TSR Relative To PHLX Semiconductor Sector Index 50th Percentile Achievement | President and Chief Executive Officer | ||||
Class of Stock [Line Items] | ||||
Award vesting percentage | 100.00% | |||
Performance Shares | TSR Relative To PHLX Semiconductor Sector Index 75th Percentile Achievement | President and Chief Executive Officer | ||||
Class of Stock [Line Items] | ||||
Vesting multiplier | 250.00% | |||
Performance Shares | TSR Relative To PHLX Semiconductor Sector Index 75th Percentile Achievement | Corporate Vice President of Research and Development | ||||
Class of Stock [Line Items] | ||||
Vesting multiplier | 200.00% | |||
Performance Shares | TSR Below 25th Percentile | President and Chief Executive Officer | ||||
Class of Stock [Line Items] | ||||
Award vesting percentage | 0.00% | 0.00% | ||
2012 ESPP | ||||
Class of Stock [Line Items] | ||||
Number of shares authorized | shares | 3,000,000 | |||
Percentage of employee's compensation maximum for employee share purchases | 10.00% | |||
Purchase price of shares as percentage of fair market value | 85.00% | |||
Compensation expense | $ 500,000 | $ 600,000 | $ 0 | |
Number of shares available for future awards | shares | 1,400,000 | |||
2013 Incentive Plan, Inducement Plan and the 2011 Non-Employee Director Equity Incentive Plan | ||||
Class of Stock [Line Items] | ||||
Number of shares available for future awards | shares | 9,000,000 | |||
2013 Incentive Plan | ||||
Class of Stock [Line Items] | ||||
Number of shares transfered out of plan | shares | 2,900,000 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | $ 18,899 | $ 13,646 | $ 12,543 |
Cost of revenue | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 1,422 | 940 | 795 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 5,640 | 4,357 | 5,245 |
Selling, general, and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | $ 11,837 | $ 8,349 | $ 6,503 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Summary of Assumptions Used in Valuation of Stock Option and ESPP Compensation (Details) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk-free interest rate | 1.90% | ||
Expected term (years) | 4 years 6 months | ||
Employee and Director Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected volatility, percent, minimum | 39.87% | 40.96% | |
Expected volatility, percent, maximum | 41.11% | 48.01% | |
Weighted average risk-free interest rate, percent, minimum | 2.29% | 1.99% | |
Weighted average risk-free interest rate, percent, maximum | 2.78% | 2.09% | |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Weighted average expected volatility | 31.60% | 36.40% | |
Risk-free interest rate | 2.51% | 1.61% | |
Expected term (years) | 6 months | 6 months | |
Minimum | Employee and Director Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected term (years) | 4 years 28 days | 4 years 28 days | |
Maximum | Employee and Director Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected term (years) | 4 years 3 months | 4 years 3 months |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans - Summary of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($)$ / sharesshares | |
Shares | |
Beginning balance, Shares | 6,616 |
Granted, Shares | 0 |
Effect of vesting multiplier, Shares | 36 |
Exercised, Shares | (2,715) |
Forfeited or expired, Shares | (605) |
Ending balance, Shares | 3,332 |
Vested and expected to vest at end of period, Shares | 3,332 |
Exercisable at end of period, Shares | 1,721 |
Weighted average exercise price | |
Beginning balance (dollars per share) | $ / shares | $ 5.94 |
Granted (dollars per share) | $ / shares | 0 |
Exercised (dollars per share) | $ / shares | 5.73 |
Forfeited or expired (dollars per share) | $ / shares | 5.72 |
Ending balance (dollars per share) | $ / shares | 6.16 |
Vested and expected to vest at end of period, Weighted average exercise price (dollars per share) | $ / shares | 6.16 |
Exercisable at end of period, Weighted average exercise price (dollars per share) | $ / shares | $ 6 |
Total | |
Vested and expected to vest at end of period, Weighted average remaining contractual term | 4 years 6 months |
Vested and expected to vest at end of period, aggregate intrinsic value | $ | $ 43,553 |
Exercisable at end of period, Weighted average remaining contractual term | 3 years 11 months 12 days |
Exercisable at end of period, aggregate intrinsic value | $ | $ 22,758 |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans - Summary of RSU Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Weighted average grant date fair value | ||
Granted, Weighted average grant date fair value (dollars per share) | $ 1.69 | $ 1.50 |
Restricted Stock Units (RSUs) | ||
Shares | ||
Balance at the beginning of period, Shares | 4,412 | |
Granted, Shares | 2,445 | |
Effect of vesting multiplier, Shares | 216 | |
Vested, Shares | (1,734) | |
Forfeited or expired, Shares | (564) | |
Balance at the end of period, Shares | 4,775 | 4,412 |
Weighted average grant date fair value | ||
Balance at the beginning of period, Weighted average grant date fair value (dollars per share) | $ 7.53 | |
Granted, Weighted average grant date fair value (dollars per share) | 16.23 | |
Effect of vesting multiplier, Weighted average grant date fair value (dollars per share) | 0 | |
Vested, Weighted average grant date fair value (dollars per share) | 8.10 | |
Forfeited or expired, Weighted average grant date fair value (dollars per share) | 7.27 | |
Balance at the end of period, Weighted average grant date fair value (dollars per share) | $ 12.23 | $ 7.53 |
Stock-Based Compensation Plan_7
Stock-Based Compensation Plans - Summary of Assumptions Used in Valuation of Stock Options and RSUs (Details) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 41.00% | ||
Risk-free interest rate | 1.90% | ||
Expected term (years) | 4 years 6 months | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 3 years | ||
Minimum | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 40.15% | 41.06% | |
Risk-free interest rate | 1.66% | 2.71% | |
Expected term (years) | 3 years | ||
Maximum | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 41.10% | 41.74% | |
Risk-free interest rate | 2.55% | 2.87% | |
Expected term (years) | 3 years 1 month 28 days |
Stock-Based Compensation Plan_8
Stock-Based Compensation Plans - Summary of Stock Options with Market Condition Activity (Details) shares in Thousands | 12 Months Ended |
Dec. 28, 2019shares | |
Unvested | |
Granted, Shares | 0 |
Effect of vesting multiplier, Shares | 36 |
Vested | |
Beginning balance, Shares | 6,616 |
Exercised, Shares | (2,715) |
Ending balance, Shares | 3,332 |
Total | |
Granted, Shares | 0 |
Effect of vesting multiplier, Shares | 36 |
Exercised, Shares | (2,715) |
Ending balance, shares | 3,332 |
Performance Shares | |
Unvested | |
Beginning balance, Shares | 909 |
Granted, Shares | 584 |
Effect of vesting multiplier, Shares | 260 |
Unvested, Shares | (484) |
Canceled, Shares | (106) |
Ending balance, Shares | 1,163 |
Vested | |
Beginning balance, Shares | 0 |
Vested, Shares | 413 |
Exercised, Shares | (71) |
Canceled, Shares | 0 |
Ending balance, Shares | 0 |
Total | |
Beginning balance, shares | 909 |
Granted, Shares | 584 |
Effect of vesting multiplier, Shares | 260 |
Vested, Shares | (413) |
Exercised, Shares | (71) |
Canceled, Shares | (106) |
Ending balance, shares | 1,163 |
Income Taxes - Domestic and For
Income Taxes - Domestic and Foreign Components of Loss before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 33,417 | $ (8,274) | $ (17,341) |
Foreign | 11,648 | (15,695) | (52,372) |
Income (loss) before income taxes | $ 45,065 | $ (23,969) | $ (69,713) |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Current: | |||
Federal | $ 499 | $ 536 | $ 508 |
State | 45 | 38 | 30 |
Foreign | 1,345 | 1,869 | 304 |
Current income tax (provision) benefit | 1,889 | 2,443 | 842 |
Deferred: | |||
Federal | 0 | 0 | 0 |
State | 0 | 0 | 0 |
Foreign | (317) | (90) | 7 |
Deferred income tax (provision) benefit | (317) | (90) | 7 |
Income tax expense | $ 1,572 | $ 2,353 | $ 849 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal rate | 21.00% | 21.00% | 35.00% |
Adjustments for tax effects of: | |||
State taxes, net | 3.00% | 6.00% | 7.00% |
Research and development credits | 3.00% | 5.00% | 1.00% |
Stock compensation | (11.00%) | (8.00%) | (3.00%) |
Foreign rate differential | (2.00%) | (20.00%) | (28.00%) |
Foreign dividends | 0.00% | (1.00%) | |
Foreign withholding taxes | 3.00% | (5.00%) | 0.00% |
Other permanent | 6.00% | (2.00%) | 0.00% |
Other deferred tax asset adjustment | (13.00%) | 0.00% | |
Valuation allowance | (19.00%) | 11.00% | 73.00% |
Change in uncertain tax benefit accrual | 0.00% | (2.00%) | (1.00%) |
Stock compensation (ASU 2016-09) adoption | 0.00% | 0.00% | 8.00% |
Tax rate change | 0.00% | 0.00% | (93.00%) |
Other | 0.00% | (3.00%) | 1.00% |
Effective income tax rate | 4.00% | (10.00%) | (1.00%) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Valuation Allowance [Line Items] | ||||
Decrease in valuation allowance | $ 8,600 | |||
Undistributed earnings of foreign subsidiaries | 2,900 | |||
Unrecognized tax benefits associated with uncertain tax positions | 41,927 | $ 44,000 | $ 44,832 | $ 47,623 |
Unrecognized tax benefits associated with uncertain tax positions that, if recognized, would affect the effective tax rate | 39,900 | |||
Interest and penalties associated with unrecognized tax benefits | 9,000 | |||
Uncertain tax position exposure netted against deferred tax assets | 24,800 | |||
Amount of unrecognized tax benefit that is reasonably possible be recognized during next twelve months | 2,400 | |||
Amount of associated interest and penalties could be recognized during next twelve months | 500 | |||
Decrease in unrecognized tax benefits | 2,900 | |||
Federal | ||||
Valuation Allowance [Line Items] | ||||
Operating loss carryforwards | 360,500 | |||
Tax credit carryforwards | 50,100 | |||
State | ||||
Valuation Allowance [Line Items] | ||||
Operating loss carryforwards | 141,300 | |||
Tax credit carryforwards | 62,600 | |||
Do not expire | State | ||||
Valuation Allowance [Line Items] | ||||
Tax credit carryforwards | 61,900 | |||
Other long-term liabilities | ||||
Valuation Allowance [Line Items] | ||||
Liability for uncertain tax positions | $ 24,600 | $ 26,300 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Deferred tax assets: | ||
Accrued expenses and reserves | $ 4,137 | $ 3,714 |
Inventory | 0 | 2 |
Deferred Revenue | 0 | 0 |
Stock-based and deferred compensation | 2,812 | 2,660 |
Interest expense disallowance | 0 | 1,283 |
Intangible assets | 12,294 | 14,649 |
Fixed assets | 256 | 281 |
Net operating loss carry forwards | 86,899 | 88,333 |
Tax credit carry forwards | 90,339 | 92,208 |
Capital loss carry forwards | 4,235 | 5,007 |
Other | 1,059 | 1,130 |
Total deferred tax assets | 202,031 | 209,267 |
Less: valuation allowance | (198,499) | (207,108) |
Net deferred tax assets | 3,532 | 2,159 |
Deferred tax liabilities: | ||
Fixed assets | 2,620 | 1,536 |
Deferred revenue | 434 | 525 |
Other | 0 | (57) |
Total deferred tax liabilities | 3,054 | 2,004 |
Net deferred tax assets | $ 478 | $ 155 |
Income Taxes - Valuation Allowa
Income Taxes - Valuation Allowance for Deferred Tax Assets (Details) - Valuation allowance for deferred tax assets - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 207,108 | $ 209,691 | $ 260,687 |
Charged (Credit) to costs and expenses | (8,609) | (2,583) | (50,960) |
Charged (credit) to other accounts | 0 | 0 | (36) |
Balance at end of period | $ 198,499 | $ 207,108 | $ 209,691 |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes to Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 44,000 | $ 44,832 | $ 47,623 |
Additions based on tax positions related to the current year | 238 | 389 | 471 |
Additions based on tax positions of prior years | 334 | 19 | 11 |
Reduction for tax positions of prior years | (213) | (5) | (1,226) |
Reduction as a result of lapse of applicable statute of limitations | (2,432) | (1,235) | (2,047) |
Ending balance | $ 41,927 | $ 44,000 | $ 44,832 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Retirement Benefits [Abstract] | |||
Employer matching contribution to a 401(k) plan | $ 0.8 | $ 0.6 | $ 0.8 |
Cash incentive plan expense | $ 5.8 | $ 5.9 | $ 7.2 |
Contingencies (Details)
Contingencies (Details) $ in Millions | Dec. 19, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Loss contingency, damages sought, value | $ 138 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 100,237 | $ 103,469 | $ 102,296 | $ 98,091 | $ 95,977 | $ 101,484 | $ 102,715 | $ 98,623 | $ 404,093 | $ 398,799 | $ 385,961 |
Gross margin | 59,293 | 61,439 | 60,038 | 57,652 | 54,306 | 58,364 | 50,248 | 56,521 | 238,422 | 219,439 | 216,579 |
Restructuring charges | (55) | 252 | 3,126 | 1,341 | 11,854 | 90 | 4,376 | 1,029 | 4,664 | 17,349 | 7,196 |
Net income (loss) | $ 13,987 | $ 13,539 | $ 8,559 | $ 7,408 | $ (7,121) | $ 6,974 | $ (20,223) | $ (5,952) | $ 43,493 | $ (26,322) | $ (70,562) |
Net income (loss) per share - basic (in usd per share) | $ 0.10 | $ 0.10 | $ 0.06 | $ 0.06 | $ (0.05) | $ 0.05 | $ (0.16) | $ (0.05) | $ 0.33 | $ (0.21) | $ (0.58) |
Net income (loss) per share - diluted (in usd per share) | $ 0.10 | $ 0.10 | $ 0.06 | $ 0.05 | $ (0.05) | $ 0.05 | $ (0.16) | $ (0.05) | $ 0.32 | $ (0.21) | $ (0.58) |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event | 2 Months Ended |
Feb. 24, 2020USD ($) | |
Subsequent Event [Line Items] | |
Stock repurchase program, Authorized amount (up to) | $ 40,000,000 |
Stock repurchase program, period | 12 months |
Uncategorized Items - lscc-2019
Label | Element | Value | |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (355,000) | [1] |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 27,401,000 | [2] |
Retained Earnings [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (355,000) | [1] |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 27,401,000 | [2] |
[1] | During the first quarter of fiscal 2017, we early adopted ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.This guidance is required to be applied on a modified retrospective basis through a cumulative-effect adjustment to the balance sheet as of the beginningof the fiscal year of adoption. As a result of this adoption, we recorded a nominal amount to Accumulated deficit, as detailed in the table above. | ||
[2] | As of the beginning of fiscal 2018, we adopted ASC 606, Revenue from Contracts With Customers, using the modified retrospective transition method. Asa result of this adoption, we recorded a cumulative-effect adjustment to Accumulated deficit, as shown in the table above. |