0001104659-22-010931 | 10-K | XBRL Viewer

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Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Current assets:
Cash and cash equivalents	$ 1,074,623	$ 202,720
Short-term investments	964,582	521,963
Accounts receivable, net	98,313	95,169
Inventories	49,307	47,861
Prepaid expenses and other current assets	51,748	87,103
Current assets of discontinued operations		21,005
Total current assets	2,238,573	975,821
Property and equipment, net	146,516	135,803
Goodwill	376,389	376,389
Other intangible assets, net	118,978	163,483
Other assets, net	77,839	76,675
Non-current assets of discontinued operations		265,316
Total assets	2,958,295	1,993,487
Current liabilities:
Accounts payable	47,327	54,949
Current portion of convertible debt, net	450,599	134,480
Deferred revenue and returns liability	13,849	12,986
Other current liabilities	157,052	81,650
Current liabilities of discontinued operations		433
Total current liabilities	668,827	284,498
Convertible debt, net		428,945
Other non-current liabilities	77,044	79,752
Non-current liabilities of discontinued operations		451
Total liabilities	745,871	793,646
Commitments and contingencies
Stockholders' equity:
Preferred stock - $0.0001 par value; 10,000 shares authorized; no shares issued
Common stock - $0.0001 par value; 250,000 shares authorized; 38,481 and 43,925 shares issued and outstanding at January 1, 2022 and January 2, 2021, respectively	4	4
Additional paid-in capital		204,359
Retained earnings	2,214,839	993,664
Accumulated other comprehensive income (loss)	(2,419)	1,814
Total stockholders' equity	2,212,424	1,199,841
Total liabilities and stockholders' equity	$ 2,958,295	$ 1,993,487

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Jan. 01, 2022	Jan. 02, 2021
Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000	10,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	250,000	250,000
Common stock, shares issued	38,481	43,925
Common stock, shares outstanding	38,481	43,925

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Consolidated Statements of Income
Revenues	$ 720,860	$ 510,928	$ 473,785
Cost of revenues	295,468	216,083	193,571
Gross profit	425,392	294,845	280,214
Operating expenses:
Research and development	273,208	235,185	205,690
Selling, general and administrative	185,022	166,748	163,167
Operating expenses	458,230	401,933	368,857
Operating loss	(32,838)	(107,088)	(88,643)
Other income (expense):
Interest income and other, net	5,696	9,027	12,865
Interest expense	(31,033)	(34,142)	(20,233)
Loss from continuing operations before income taxes	(58,175)	(132,203)	(96,011)
Provision (benefit) for income taxes	13,427	(14,602)	6,984
Equity-method earnings	13,728	2,116	320
Loss from continuing operations	(57,874)	(115,485)	(102,675)
Income from discontinued operations, net of income taxes	2,175,273	128,016	121,940
Net income	$ 2,117,399	$ 12,531	$ 19,265
Basic earnings (loss) per share:
Continuing operations (in dollars per share)	$ (1.35)	$ (2.64)	$ (2.37)
Net income (in dollars per share)	49.44	0.29	0.44
Diluted earnings (loss) per share:
Continuing operations (in dollars per share)	(1.35)	(2.64)	(2.37)
Net income (in dollars per share)	$ 47.78	$ 0.28	$ 0.43
Weighted-average common shares outstanding:
Basic (in shares)	42,830	43,775	43,346
Diluted (in shares)	44,315	44,372	44,290

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Consolidated Statements of Comprehensive Income
Net income	$ 2,117,399	$ 12,531	$ 19,265
Net changes to available-for-sale securities:
Unrealized gains (losses) arising during the period	(4,338)	1,131	2,564
Reclassification for gains included in net income	(335)	(510)	(218)
Net changes to cash flow hedges:
Unrealized gains (losses) arising during the period	(598)	33	(321)
Reclassification for (gains) losses included in net income	(87)	825	784
Other comprehensive income (loss), before tax	(5,358)	1,479	2,809
Provision (benefit) for income taxes	(1,125)	311	589
Other comprehensive income (loss)	(4,233)	1,168	2,220
Comprehensive income	$ 2,113,166	$ 13,699	$ 21,485

Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings Cumulative effect of adoption of accounting standard	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Cumulative effect of adoption of accounting standard	Total
Balance at Dec. 29, 2018	$ 4	$ 107,517		$ 961,343	$ (1,574)		$ 1,067,290
Balance (in shares) at Dec. 29, 2018	43,088
Increase (Decrease) in Stockholders' Equity
Net income				19,265			19,265
Other comprehensive loss					2,220		2,220
Stock issuances, net of shares withheld for taxes		(1,799)					(1,799)
Stock issuances, net of shares withheld for taxes (in shares)	709
Repurchases of common stock		(26,716)					(26,716)
Repurchases of common stock (in shares)	(301)
Stock-based compensation		54,791					54,791
Balance at Dec. 28, 2019	$ 4	133,793	$ 525	980,608	646	$ 525	1,115,051
Balance (in shares) at Dec. 28, 2019	43,496
Increase (Decrease) in Stockholders' Equity
Net income				12,531			12,531
Other comprehensive loss					1,168		1,168
Stock issuances, net of shares withheld for taxes		(3,109)					(3,109)
Stock issuances, net of shares withheld for taxes (in shares)	639
Repurchases of common stock		(16,287)					(16,287)
Repurchases of common stock (in shares)	(210)
Stock-based compensation		60,065					60,065
Convertible debt activity		29,897					29,897
Balance at Jan. 02, 2021	$ 4	204,359		993,664	1,814		$ 1,199,841
Balance (in shares) at Jan. 02, 2021	43,925						43,925
Increase (Decrease) in Stockholders' Equity
Net income				2,117,399			$ 2,117,399
Other comprehensive loss					(4,233)		(4,233)
Stock issuances, net of shares withheld for taxes		(8,056)					(8,056)
Stock issuances, net of shares withheld for taxes (in shares)	548
Repurchases of common stock		(253,820)		(896,224)			(1,150,044)
Repurchases of common stock (in shares)	(6,520)
Stock-based compensation		58,264					58,264
Convertible debt activity		$ (747)					(747)
Convertible debt activity (in shares)	528
Balance at Jan. 01, 2022	$ 4			$ 2,214,839	$ (2,419)		$ 2,212,424
Balance (in shares) at Jan. 01, 2022	38,481						38,481

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Operating Activities
Net income	$ 2,117,399	$ 12,531	$ 19,265
Adjustments to reconcile net income to cash provided by (used in) operating activities of continuing operations:
Income from discontinued operations, net of income taxes	(2,175,273)	(128,016)	(121,940)
Depreciation of property and equipment	18,051	16,267	15,193
Amortization of other intangible assets	44,505	42,569	37,734
Amortization of debt discount and debt issuance costs	22,767	21,433	13,485
Loss on extinguishment of convertible debt	3,370	4,060
Stock-based compensation expense	56,842	49,454	44,334
Equity-method earnings	(13,728)	(2,116)	(320)
Deferred income taxes	(3,414)	(6,533)	23,048
Changes in operating assets and liabilities:
Accounts receivable	(3,144)	(17,612)	(2,401)
Inventories	(1,510)	9,148	(4,203)
Prepaid expenses and other assets	44,664	(50,664)	6,970
Accounts payable	(7,704)	15,263	7,830
Other current liabilities and income taxes	2,109	3,215	(6,867)
Deferred revenue and returns liability	863	(6,694)	(3,243)
Other non-current liabilities	(14,599)	28,856	(6,708)
Net cash provided by (used in) operating activities of continuing operations	91,198	(8,839)	22,177
Investing Activities
Purchases of marketable securities	(1,541,971)	(519,567)	(424,524)
Sales and maturities of marketable securities	1,095,041	497,357	344,937
Purchases of property and equipment	(28,577)	(18,088)	(15,300)
Purchases of other assets	(1,158)	(1,210)	(7,926)
Acquisitions of businesses, net of cash acquired		(316,809)
Net cash used in investing activities of continuing operations	(476,665)	(358,317)	(102,813)
Financing Activities
Proceeds from issuance of debt		845,000
Payments on debt	(140,572)	(624,737)	(1,132)
Repurchases of common stock	(1,150,044)	(16,287)	(26,716)
Payment of taxes withheld for vested stock awards	(22,239)	(18,124)	(16,295)
Proceeds from the issuance of common stock	14,183	15,015	14,496
Net cash provided by (used in) financing activities of continuing operations	(1,298,672)	200,867	(29,647)
Discontinued Operations
Operating activities	(191,642)	144,557	144,345
Investing activities	2,747,684	(2,694)	(3,959)
Net cash provided by discontinued operations	2,556,042	141,863	140,386
Increase (decrease) in cash and cash equivalents	871,903	(24,426)	30,103
Cash and cash equivalents at beginning of period	202,720	227,146	197,043
Cash and cash equivalents at end of period	1,074,623	202,720	227,146
Supplemental Disclosure of Cash Flow Information:
Interest paid	5,010	8,662	6,367
Income taxes paid	$ 266,277	$ 7,217	$ 10,291

Description of Business

12 Months Ended

Jan. 01, 2022

Description of Business

Description of Business

1. Description of Business

Silicon Laboratories Inc. (the “Company”), a Delaware corporation, is a leader in secure, intelligent wireless technology for a more connected world. Our integrated hardware and software platform, intuitive development tools, industry leading ecosystem and robust support enable customers in building advanced industrial, commercial, home and life applications. The Company provides analog-intensive, mixed-signal solutions for use in a variety of electronic products in a broad range of applications for the Internet of Things (IoT) including connected home and security, industrial automation and control, smart metering, smart lighting, commercial building automation, consumer electronics, asset tracking and medical instrumentation. Within the semiconductor industry, the Company is known as a “fabless” company meaning that the integrated circuits (ICs) incorporated in its products are manufactured by third-party foundry semiconductor companies.

On April 22, 2021, the Company entered into an Asset Purchase Agreement pursuant to which Skyworks Solutions, Inc. agreed to acquire certain assets, rights, and properties, and assume certain liabilities, comprising the Company’s infrastructure and automotive business for $2.75 billion in cash. The transaction closed on July 26, 2021. The financial results of the infrastructure and automotive business have been presented as discontinued operations in the Consolidated Financial Statements because the sale represented a strategic shift for the Company. Prior period financial statements have been reclassified to reflect these changes for all periods presented. See Note 3, Discontinued Operations, for additional information. Unless indicated otherwise, the information in the Notes to the Consolidated Financial Statements relates to the Company’s continuing operations and does not include the results of discontinued operations.

Significant Accounting Policies

12 Months Ended

Jan. 01, 2022

Significant Accounting Policies

Significant Accounting Policies

2. Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The Company prepares financial statements on a 52- or 53-week fiscal year that ends on the Saturday closest to December 31. Fiscal 2021 had 52 weeks. Fiscal 2020 had 53 weeks with the extra week occurring in the first quarter of the year. Fiscal 2019 had 52 weeks. Fiscal 2021, 2020 and 2019 ended on January 1, 2022, January 2, 2021 and December 28, 2019, respectively. The accompanying Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.

Foreign Currency Transactions

The Company’s foreign subsidiaries are considered to be extensions of the U.S. Company. The functional currency of the foreign subsidiaries is the U.S. dollar. Accordingly, gains and losses resulting from remeasuring transactions denominated in currencies other than U.S. dollars are included in interest income and other, net in the Consolidated Statements of Income.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Among the significant estimates affecting the financial statements are those related to inventories, goodwill, acquired intangible assets, other long-lived assets, revenue recognition, stock-based compensation and income taxes. Actual results could differ from those estimates, and such differences could be material to the financial statements.

Fair Value of Financial Instruments

The fair values of the Company’s financial instruments are recorded using a hierarchical disclosure framework based upon the level of subjectivity of the inputs used in measuring assets and liabilities. The three levels are described below:

Level 1 - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.

Level 2 - Inputs other than Level 1 that are directly or indirectly observable, such as quoted prices for similar assets or liabilities and quoted prices in less active markets.

Level 3 - Inputs are unobservable for the asset or liability and are developed based on the best information available in the circumstances, which might include the Company’s own data.

2. Significant Accounting Policies (Continued)

Cash and Cash Equivalents

Cash and cash equivalents consist of cash deposits, certificates of deposit, money market funds and investments in debt securities with original maturities of ninety days or less when purchased.

Investments

The Company’s investments typically have original maturities greater than ninety days as of the date of purchase and are classified as either available-for-sale or trading securities. Investments in available-for-sale securities are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive income (loss) in the Consolidated Balance Sheet. Investments in trading securities are reported at fair value, with both realized and unrealized gains and losses recorded in interest income and other, net in the Consolidated Statement of Income. Investments in which the Company has the ability and intent, if necessary, to liquidate in order to support its current operations (including those with contractual maturities greater than one year from the date of purchase) are classified as short-term.

The Company reviews its available-for-sale investments as of the end of each reporting period for declines in fair value based on the specific identification method. The Company records an allowance for credit loss when a decline in fair value is due to credit-related factors. The Company considers various factors in determining whether an investment is impaired, including the severity of the impairment, changes in underlying credit ratings, forecasted recovery, its intent to sell or the likelihood that it would be required to sell the investment before its anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. When the Company concludes that a credit-related impairment has occurred, the Company assesses whether it intends to sell the security or if it is more likely than not that it will be required to sell the security before recovery. If either of these two conditions is met, the Company recognizes a charge in earnings equal to the entire difference between the security’s amortized cost basis and its fair value. If the Company does not intend to sell a security and it is not more likely than not that it will be required to sell the security before recovery, the unrealized loss is separated into an amount representing the credit loss, which is recognized in earnings, and the amount related to all other factors, which is recorded in accumulated other comprehensive income (loss).

In addition, the Company has made equity investments in non-publicly traded companies. Equity investments in which the Company does not have control, but has the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. The Company’s proportionate share of income or loss is recorded in equity-method earning in the Consolidated Statements of Income. The Company has elected to use the measurement alternative under ASU 2019-04 to value non-marketable equity investments that do not have readily determinable fair values. Under the alternative, these non-marketable equity investments are recorded at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes of the same or similar securities in observable transactions. The Company periodically reviews its equity investments for declines in fair value based on the specific identification method and writes down investments to their estimated fair values when it determines that a decline has occurred.

Derivative Financial Instruments

The Company uses derivative financial instruments to manage certain exposures to the variability of foreign currency exchange rates. The Company’s objective is to offset increases and decreases in expenses resulting from these exposures with gains and losses on the derivative contracts, thereby reducing volatility of earnings. The Company does not use derivative contracts for speculative or trading purposes. The Company recognizes derivatives, on a gross basis, in the Consolidated Balance Sheet at fair value. Cash flows from derivatives are classified according to the nature of the cash receipt or payment in the Consolidated Statement of Cash Flows.

The Company also uses foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on non-U.S. dollar balance sheet exposures. The Company does not apply hedge accounting to these foreign currency forward contracts.

2. Significant Accounting Policies (Continued)

Inventories

Inventories are stated at the lower of cost, determined using the first-in, first-out method, or net realizable value. The Company writes down the carrying value of inventory to net realizable value for estimated obsolescence or unmarketable inventory based upon assumptions about the age of inventory, future demand and market conditions. Inventory impairment charges establish a new cost basis for inventory and charges are not subsequently reversed to income even if circumstances later suggest that increased carrying amounts are recoverable.

Property and Equipment

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the useful lives of the assets ranging from three to fifteen years. Leasehold improvements are depreciated over the lease term or their useful life, whichever is shorter.

The Company owns the facilities for its headquarters in Austin, Texas. The buildings are located on land which is leased through 2099 from a third party. The rents for these ground leases were prepaid for the term of the leases. The buildings and leasehold interest in ground leases are being depreciated on a straight-line basis over their estimated useful lives of 40 years and 86 years, respectively.

Business Combinations

The Company records business combinations using the acquisition method of accounting and, accordingly, allocates the fair value of acquisition consideration to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of the assets acquired and liabilities assumed is recorded as goodwill. The results of operations of the businesses acquired are included in the Company’s consolidated results of operations beginning on the date of the acquisition.

Long-Lived Assets

Purchased intangible assets are stated at cost, net of accumulated amortization, and are amortized using the straight-line method over their estimated useful lives, ranging from two to twelve years. Fair values are determined primarily using the income approach, in which the Company projects future expected cash flows and applies an appropriate discount rate.

Long-lived assets “held and used” by the Company are reviewed for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets and is recorded in the period in which the determination was made.

The Company tests goodwill for impairment annually as of the first day of its fourth fiscal quarter and in interim periods if events occur that would indicate that the carrying value of goodwill may be impaired. The Company assesses goodwill for impairment by comparing the fair value of the reporting unit to its carrying amount. In determining fair value, several valuation methodologies are allowed, although quoted market prices are the best evidence of fair value. If the fair value of the reporting unit is less than its carrying amount, an impairment loss is recognized equal to that excess amount.

2. Significant Accounting Policies (Continued)

Leases

At the commencement date of a lease, the Company recognizes a liability to make lease payments and an asset representing the right to use the underlying asset during the lease term. The lease liability is measured at the present value of lease payments over the lease term. As its leases typically do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date taking into consideration necessary adjustments for collateral, depending on the facts and circumstances of the lessee and the leased asset, and term to match the lease term. The right-of-use (“ROU”) asset is measured at cost, which includes the initial measurement of the lease liability and initial direct costs incurred by the Company and excludes lease incentives. Lease liabilities are recorded in other current liabilities and other non-current liabilities. ROU assets are recorded in other assets, net.

Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease costs are recognized on a straight-line basis over the lease term. Lease agreements that contain both lease and non-lease components are generally accounted for separately.

Revenue Recognition

Revenue is recognized when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Substantially all of the Company’s contracts with customers contain a single performance obligation, the sale of mixed-signal integrated circuit (IC) products. This performance obligation is satisfied when control of the product is transferred to the customer, which typically occurs upon delivery. Unsatisfied performance obligations primarily represent contracts for products with future delivery dates. The Company has opted to not disclose the amount of unsatisfied performance obligations as these contracts have original expected durations of less than one year.

The transaction price reflects the Company’s expectations about the consideration it will be entitled to receive from the customer and may include fixed or variable amounts. Variable consideration primarily includes sales made to distributors under agreements allowing certain rights of return, referred to as stock rotation, and credits issued to the distributor due to price protection. The Company estimates variable consideration at the most likely amount to which it expects to be entitled. The estimate is based on information available to the Company, including recent sales activity and pricing data. The Company applies a constraint to its variable consideration estimate which considers both the likelihood of a return and the amount of a potential price concession. Variable consideration that does not meet revenue recognition criteria is deferred. The Company records a right of return asset in prepaid expenses and other current assets for the costs of distributor inventory not meeting revenue recognition criteria. A corresponding deferred revenue and returns liability amount is recorded for unrecognized revenue associated with such costs. The Company’s products carry a one-year replacement warranty. Payments are typically due within 30 days of invoicing and do not include a significant financing component.

Shipping and Handling

Shipping and handling costs are classified as a component of cost of revenues in the Consolidated Statements of Income.

Stock-Based Compensation

The Company has stock-based compensation plans, which are more fully described in Note 16, Stock-Based Compensation. The Company accounts for those plans using a fair-value method and recognizes the expense in its Consolidated Statement of Income.

Research and Development

Research and development costs are expensed as incurred. Research and development expense consists primarily of personnel-related expenses, including stock-based compensation, as well as new product masks, external consulting and services costs, equipment tooling, equipment depreciation, amortization of intangible assets, and an allocated portion of our occupancy costs. Assets purchased to support the Company’s ongoing research and development activities are capitalized when related to products which have achieved technological feasibility or have an alternative future use, and are amortized over their estimated useful lives.

2. Significant Accounting Policies (Continued)

Advertising

Advertising costs are expensed as incurred. Advertising expenses were not material for any of the periods presented.

Income Taxes

The Company accounts for income taxes using the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax laws and related rates that will be in effect when the differences are expected to reverse. These differences result in deferred tax assets and liabilities, which are included in the Company’s Consolidated Balance Sheets. The Company then assesses the likelihood that the deferred tax assets will be realized. A valuation allowance is established against deferred tax assets to the extent the Company believes that it is more likely than not that the deferred tax assets will not be realized, taking into consideration the level of historical taxable income and projections for future taxable income over the periods in which the temporary differences are deductible.

Uncertain tax positions must meet a more-likely-than-not threshold to be recognized in the financial statements and the tax benefits recognized are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon final settlement. See Note 18, Income Taxes, for additional information.

Recent Accounting Pronouncements

In August 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40). This ASU simplifies the accounting for certain convertible instruments, amends the guidance on derivative scope exceptions for contracts in an entity’s own equity and requires the use of the if-converted method for calculating diluted earnings per share. The ASU removes separation models for convertible debt with a cash conversion feature. Such convertible instruments will be accounted for as a single liability measured at amortized cost, as long as no other features require bifurcation and recognition as derivatives. This ASU is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The Company will elect the modified retrospective transition method to account for the impact of the adoption with a cumulative-effect adjustment to the opening balance of retained earnings at the date of adoption. The Company expects the primary impacts of this new standard will be to increase the carrying value of its convertible debt by approximately $78.5 million, with an offsetting reduction in stockholders’ equity, and reduce its reported interest expense. In addition, should the Company be required to use the if-converted method for calculating diluted earnings per share, the number of shares used in such calculation could potentially increase. On January 2, 2022, the Company irrevocably elected cash settlement for the principal amount of its convertible senior notes. The Company intends to settle any excess value in shares in the event of a conversion.

Discontinued Operations

12 Months Ended

Jan. 01, 2022

Discontinued Operations.

Discontinued Operations

3. Discontinued Operations

On April 22, 2021, the Company entered into an Asset Purchase Agreement pursuant to which Skyworks Solutions, Inc. agreed to acquire certain assets, rights, and properties, and assume certain liabilities, comprising the Company’s infrastructure and automotive business for $2.75 billion in cash. The Company believes the sale accelerates its IoT market leadership and growth, making it a pure-play leader of intelligent, wireless connectivity for the IoT. The transaction closed on July 26, 2021. The financial results of the infrastructure and automotive business, which are readily distinguishable from other components of the Company, have been presented as discontinued operations in the Consolidated Financial Statements because the sale represented a strategic shift for the Company.

The following table presents the financial results of the infrastructure and automotive business (the “discontinued operations”) in the Company’s Consolidated Statements of Income (In thousands, except per share data):


	Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Revenues	$	233,918	$	375,749	$	363,770
Costs of revenues		95,457		143,068		133,700
Operating expenses		46,643		87,293		84,730
Operating income from discontinued operations		91,818		145,388		145,340
Gain on sale of discontinued operations		2,423,161		—		—
Income from discontinued operations before income taxes		2,514,979		145,388		145,340
Provision for income taxes		339,706		17,372		23,400
Income from discontinued operations	$	2,175,273	$	128,016	$	121,940

Income from discontinued operations per share:
Basic	$	50.79	$	2.92	$	2.81
Diluted	$	49.09	$	2.89	$	2.75

The following table summarizes the assets and liabilities of the discontinued operations (in thousands):


	January 2,
	2021
Assets
Inventories	$	18,801
Prepaid expenses and other current assets		2,204
Goodwill		255,543
Other assets		9,773
Total assets	$	286,321

Liabilities
Other current liabilities	$	433
Other non-current liabilities		451
Total liabilities	$	884

Continuing Involvement

In connection with the closing of the sale, the Company entered into certain ancillary agreements with Skyworks, including a Transition Services Agreement ("TSA"). Through the TSA, the Company has subleased certain premises to Skyworks and will provide or provides various temporary support services for three to eighteen months, depending on the service provided. Although the services provided under the TSA will generate continuing cash flows between the Company and Skyworks for the duration of the TSA, the amounts are not expected to be material to the ongoing operations of either entity. In addition, the Company has no contractual ability through the TSA or any other agreement to significantly influence the operating or financial policies of Skyworks. The TSA fees were approximately $4.2 million for fiscal 2021.

Earnings Per Share

12 Months Ended

Jan. 01, 2022

Earnings Per Share

Earnings Per Share

4. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):


	Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Loss from continuing operations	$	(57,874)	$	(115,485)	$	(102,675)

Shares used in computing basic loss per share		42,830		43,775		43,346

Effect of dilutive securities:
Stock-based awards and convertible debt		—		—		—
Shares used in computing diluted loss per share		42,830		43,775		43,346

Loss per share:
Basic	$	(1.35)	$	(2.64)	$	(2.37)
Diluted	$	(1.35)	$	(2.64)	$	(2.37)

Diluted shares for fiscal 2021, 2020 and 2019 excluded 1.5 million, 0.6 million and 0.9 million shares, respectively, due to the Company’s loss from continuing operations for the periods.

The Company intends to settle the principal amount of its convertible senior notes in cash and any excess value in shares in the event of a conversion. Accordingly, shares issuable upon conversion of the principal amount using the treasury stock method have been excluded from the calculation of diluted earnings per share. If the market value of the notes under certain prescribed conditions exceeds the conversion amount, the excess is included in the denominator for the computation of diluted earnings per share using the treasury stock method. For fiscal 2021, 2020 and 2019 approximately 1.0 million shares, 0.2 million shares and 0.4 million shares, respectively, were included in the denominator for the calculation of diluted earnings per share from net income. See Note 11, Debt, to the Consolidated Financial Statements for additional information.

Fair Value of Financial Instruments

12 Months Ended

Jan. 01, 2022

Fair Value of Financial Instruments

Fair Value of Financial Instruments

5. Fair Value of Financial Instruments

The following summarizes the valuation of the Company’s financial instruments (in thousands). The tables do not include either cash on hand or assets and liabilities that are measured at historical cost or any basis other than fair value.


	Fair Value Measurements
	at January 1, 2022 Using
	Quoted Prices in		Significant Other		Significant
	Active Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Cash equivalents:
Money market funds	$	845,740	$	—	$	—	$	845,740
Corporate debt securities		—		3,552		—		3,552
Government debt securities		—		2,950		—		2,950
Total cash equivalents	$	845,740	$	6,502	$	—	$	852,242

Short-term investments:
Government debt securities	$	71,509	$	119,612	$	—	$	191,121
Corporate debt securities		—		773,461		—		773,461
Total short-term investments	$	71,509	$	893,073	$	—	$	964,582

Other assets, net:
Auction rate securities	$	—	$	—	$	4,980	$	4,980
Total	$	—	$	—	$	4,980	$	4,980

Total	$	917,249	$	899,575	$	4,980	$	1,821,804


	Fair Value Measurements
	at January 2, 2021 Using
	Quoted Prices in		Significant Other		Significant
	Active Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Cash equivalents:
Money market funds	$	75,606	$	—	$	—	$	75,606
Corporate debt securities		—		14,995		—		14,995
Government debt securities		2,355		2,564		—		4,919
Total cash equivalents	$	77,961	$	17,559	$	—	$	95,520

Short-term investments:
Government debt securities	$	38,461	$	104,112	$	—	$	142,573
Corporate debt securities		—		379,390		—		379,390
Total short-term investments	$	38,461	$	483,502	$	—	$	521,963

Other assets, net:
Auction rate securities	$	—	$	—	$	5,340	$	5,340
Total	$	—	$	—	$	5,340	$	5,340

Total	$	116,422	$	501,061	$	5,340	$	622,823

5. Fair Value of Financial Instruments (Continued)

Valuation methodology

The Company’s cash equivalents and short-term investments that are classified as Level 2 are valued using non-binding market consensus prices that are corroborated with observable market data; quoted market prices for similar instruments in active markets; quoted prices in less active markets; or pricing models, such as a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data. Investments classified as Level 3 are valued using a discounted cash flow model. The assumptions used in preparing the discounted cash flow model include estimates for interest rates, amount of cash flows, expected holding periods of the securities and a discount to reflect the Company’s inability to liquidate the securities. The Company’s derivative instruments are valued using discounted cash flow models. The assumptions used in preparing the valuation models include foreign exchange rates, forward and spot prices for currencies and market observable data of similar instruments.

Contractual maturities of investments

The Company’s investments are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive income (loss) in the Consolidated Balance Sheet. The following summarizes the contractual underlying maturities of the Company’s available-for-sale investments at January 1, 2022 (in thousands):


			Fair
	Cost		Value
Due in one year or less	$	578,734	$	578,666
Due after one year through ten years		394,391		392,417
Due after ten years		6,000		4,980
	$	979,125	$	976,063

Available-for-sale investments

The available-for-sale investments that were in a continuous unrealized loss position, aggregated by length of time that individual securities have been in a continuous loss position, were as follows (in thousands):


	Less Than 12 Months				12 Months or Greater				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
As of January 1, 2022	Value		Losses		Value		Losses		Value		Losses
Government debt securities	$	126,957	$	(750)	$	—	$	—	$	126,957	$	(750)
Corporate debt securities		418,917		(1,451)		326		(1)		419,243		(1,452)
Auction rate securities		—		—		4,980		(1,020)		4,980		(1,020)
	$	545,874	$	(2,201)	$	5,306	$	(1,021)	$	551,180	$	(3,222)


	Less Than 12 Months				12 Months or Greater				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
As of January 2, 2021	Value		Losses		Value		Losses		Value		Losses
Government debt securities	$	10,146	$	(5)	$	—	$	—	$	10,146	$	(5)
Corporate debt securities		51,909		(74)		—		—		51,909		(74)
Auction rate securities		—		—		5,340		(660)		5,340		(660)
	$	62,055	$	(79)	$	5,340	$	(660)	$	67,395	$	(739)

The gross unrealized losses as of January 1, 2022 and January 2, 2021 were due primarily to changes in market interest rates and the illiquidity of the Company’s auction-rate securities. The Company’s auction-rate securities have been illiquid since 2008 when auctions for the securities failed because sell orders exceeded buy orders. These securities have a contractual maturity date of 2046. The Company is unable to predict if these funds will become available before their maturity date.

5. Fair Value of Financial Instruments (Continued)

The Company records an allowance for credit loss when a decline in investment market value is due to credit-related factors. When evaluating an investment for impairment, the Company reviews factors such as the severity of the impairment, changes in underlying credit ratings, forecasted recovery, the Company’s intent to sell or the likelihood that it would be required to sell the investment before its anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. As of January 1, 2022, there were no material declines in the market value of available-for-sale investments due to credit-related factors.

At January 1, 2022 and January 2, 2021, there were no material unrealized gains associated with the Company’s available-for-sale investments.

Level 3 fair value measurements

The following summarizes quantitative information about Level 3 fair value measurements.

Auction rate securities


Fair Value at
January 1, 2022
(000s)		Valuation Technique	Unobservable Input	Weighted Average
$	4,980	Discounted cash flow	Estimated yield	1.07%

			Expected holding period	10 years

			Estimated discount rate	2.45%

Significant changes in any of the unobservable inputs used in the fair value measurement of auction rate securities in isolation could result in a significantly lower or higher fair value measurement. An increase in expected yield would result in a higher fair value measurement, whereas an increase in expected holding period or estimated discount rate would result in a lower fair value measurement. Generally, a change in the assumptions used for expected holding period is accompanied by a directionally similar change in the assumptions used for estimated yield and discount rate.

The following summarizes the activity in Level 3 financial instruments for the years ended January 1, 2022 and January 2, 2021 (in thousands):

Assets


	Year Ended
	January 1,		January 2,
Auction Rate Securities	2022		2021
Beginning balance	$	5,340	$	5,647
Losses included in other comprehensive income (loss)		(360)		(307)
Ending balance	$	4,980	$	5,340

The Company’s debt is recorded at cost, but is measured at fair value for disclosure purposes. The fair value of the Company’s convertible senior notes is determined using observable market prices. The notes are traded in less active markets and are therefore classified as a Level 2 fair value measurement. As of January 1, 2022 and January 2, 2021, the fair value of the 0.625% convertible senior notes due in 2025 was $944.3 million and $671.4 million, respectively.

The Company’s other financial instruments, including cash, accounts receivable and accounts payable, are recorded at amounts that approximate their fair values due to their short maturities.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Derivative Financial Instruments

12 Months Ended

Jan. 01, 2022

Derivative Financial Instruments

Derivative Financial Instruments

6. Derivative Financial Instruments

Non-designated Hedges

Foreign Currency Forward Contracts

The Company uses foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on non-U.S. dollar balance sheet exposures. The Company recognizes gains and losses on the foreign currency forward contracts in interest income and other, net in the Consolidated Statement of Income in the same period as the remeasurement loss and gain of the related foreign currency denominated asset or liability. The Company does not apply hedge accounting to these foreign currency forward contracts.

As of January 1, 2022, the Company held one foreign currency forward contract denominated in Singapore Dollars with a notional value of $3.7 million, and two foreign currency forward contracts denominated in Indian Rupees with an aggregate notional value of $7.4 million and one foreign currency forward contract denominated in the Hungarian Forint with a notional value of $2.1 million. The fair value of foreign contracts and contract losses recognized in income were not material for any of the periods presented.

Balance Sheet Details

12 Months Ended

Jan. 01, 2022

Balance Sheet Details

Balance Sheet Details

7. Supplemental Information

The following tables show the details of selected Consolidated Balance Sheet items (in thousands):

Inventories


	January 1,		January 2,
	2022		2021
Work in progress	$	36,078	$	41,747
Finished goods		13,229		6,114
	$	49,307	$	47,861

Prepaid Expenses and Other Current Assets


	January 1,		January 2,
	2022		2021
Distributor advances	$	13,397	$	51,190
Other		38,351		35,913
	$	51,748	$	87,103

Property and Equipment


	January 1,		January 2,
	2022		2021
Buildings and improvements	$	122,163	$	118,331
Equipment		48,876		39,378
Computers and purchased software		48,519		46,174
Leasehold interest in ground leases		23,840		23,840
Leasehold improvements		13,427		8,684
Furniture and fixtures		10,794		8,621
		267,619		245,028
Accumulated depreciation		(121,103)		(109,225)
	$	146,516	$	135,803

Other Assets, net


	January 1,		January 2,
	2022		2021
Equity-method investment*	$	24,078	$	10,057
Other		53,761		66,618
	$	77,839	$	76,675

*The Company holds an 8% equity interest in China Walden Venture Investments III, a limited partnership.

Other Current Liabilities


	January 1,		January 2,
	2022		2021
Accrued compensation and benefits	$	42,008	$	46,633
Income taxes payable		73,771		5,797
Other		41,273		29,220
	$	157,052	$	81,650

Risks and Uncertainties

12 Months Ended

Jan. 01, 2022

Risks and Uncertainties

Risks and Uncertainties

8. Risks and Uncertainties

Financial Instruments

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash equivalents, investments, accounts receivable, notes receivable and derivatives. The Company places its cash equivalents and investments primarily in municipal bonds, money market funds, corporate bonds, certificates of deposit, U.S. Treasury bills, U.S. government securities, agency securities, asset-back securities, commercial paper and auction-rate securities. Concentrations of credit risk with respect to accounts receivable are primarily due to customers with large outstanding balances. The Company’s customers that accounted for greater than 10% of accounts receivable consisted of the following distributors:


	January 1,		January 2,
	2022		2021
Arrow Electronics	28	%	28	%
Edom Technology	18	%	21	%

The Company performs periodic credit evaluations of its customers’ financial condition and generally requires no collateral from its customers. The Company provides an allowance for expected credit losses based upon the net amount expected to be collected on such receivables. Losses have not been significant for any of the periods presented.

As a result of its use of derivative instruments, the Company is exposed to the risk that its counterparties will fail to meet their contractual obligations. To mitigate this counterparty credit risk, the Company has a policy to enter into contracts with only selected major financial institutions. The Company periodically reviews and re-assesses the creditworthiness of such counterparties based on a variety of factors.

Distributor Advances

On sales to distributors, the Company’s payment terms often require the distributor to initially pay amounts owed to the Company for an amount in excess of their ultimate cost. The Company’s sales price to its distributors may be higher than the amount that the distributors will ultimately owe the Company because distributors often negotiate price reductions after purchasing the product from the Company and such reductions are often significant. These negotiated price discounts are not granted until the distributor sells the product to the end customer, which may occur after the distributor has paid the original invoice amount to the Company. Payment of invoices prior to receiving an associated discount can have an adverse impact on the working capital of the Company’s distributors. Accordingly, the Company has entered into agreements with certain distributors whereby it advances cash to the distributors to reduce the distributor’s working capital requirements. The advance amounts are based on the distributor’s inventory balance, and are adjusted quarterly. Such amounts are recorded in prepaid expenses and other current assets in the Consolidated Balance Sheet. The terms of these advances are set forth in binding legal agreements and are unsecured, bear no interest on unsettled balances and are due upon demand. The agreements governing these advances can be cancelled by the Company at any time.

Suppliers

A significant portion of the Company’s products are fabricated by Taiwan Semiconductor Manufacturing Co. (TSMC) or Semiconductor Manufacturing International Corporation (SMIC). The inability of TSMC or SMIC to deliver wafers to the Company on a timely basis could impact the production of the Company’s products for a substantial period of time, which could have a material adverse effect on the Company’s business, financial condition, results of operations and cash flows.

8. Risks and Uncertainties (Continued)

Customers

The Company sells directly to end customers, distributors and contract manufacturers. Although the Company actually sells the products to, and is paid by, distributors and contract manufacturers, the Company refers to the end customer as its customer. None of the Company’s end customers accounted for greater than 10% of revenue during fiscal 2021, 2020 or 2019. The Company’s distributors that accounted for greater than 10% of revenue consisted of the following:


	Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Arrow Electronics	28	%	28	%	26	%
Edom Technology	18	%	19	%	18	%
Sekorm	12	%	14	%	10	%

Acquisition

12 Months Ended

Jan. 01, 2022

Acquisition

Acquisition

9. Acquisition

Redpine Signals

On April 28, 2020, the Company acquired the Wi-Fi and Bluetooth business of Redpine Signals. The Company believes the acquisition will accelerate its roadmap for Wi-Fi and Bluetooth silicon and software solutions. The purchase price was in excess of the fair value of the net assets acquired and, as a result, the Company recorded goodwill. A portion of the goodwill is deductible for tax purposes. The purchase price was allocated as follows (in thousands):


			Weighted-Average
			Amortization Period
	Amount		(Years)
Intangible assets:
In-process research and development	$	11,753	Not amortized
Developed technology		61,674	8
Customer relationships		2,450	2
Trademarks		661	2
		76,538

Accounts receivable		1,395
Inventory		4,375
Other current assets		1,251
Goodwill		233,530
Other non-current assets		673
Current liabilities		(856)
Non-current liabilities		(97)
Total purchase price	$	316,809

Pro forma information related to this acquisition has not been presented because it would not be materially different from amounts reported. The Company recorded approximately $1.5 million of acquisition-related costs in selling, general and administrative expenses during fiscal 2020.

Goodwill and Other Intangible Assets

12 Months Ended

Jan. 01, 2022

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

10. Goodwill and Other Intangible Assets

Goodwill

The following summarizes the activity in goodwill for the years ended January 1, 2022 and January 2, 2021 (in thousands):


	Year Ended
	January 1,		January 2,
	2022		2021
Beginning balance	$	376,389	$	237,294
Additions due to business combinations		—		139,095
Ending balance	$	376,389	$	376,389

Other Intangible Assets

The gross carrying amount and accumulated amortization of other intangible assets are as follows (in thousands):


	Weighted-Average
	Amortization	January 1, 2022				January 2, 2021
	Period	Gross		Accumulated		Gross		Accumulated
	(Years)	Amount		Amortization		Amount		Amortization
Subject to amortization:
Developed technology	8	$	238,092	$	(124,337)	$	243,739	$	(109,417)
Customer relationships	4		27,450		(24,958)		41,270		(30,321)
Trademarks	5		11,471		(8,740)		12,771		(6,312)
	7		277,013		(158,035)		297,780		(146,050)

Not subject to amortization:
In-process research and development	Not amortized		—		—		11,753		—

Total intangible assets		$	277,013	$	(158,035)	$	309,533	$	(146,050)

Gross intangible assets decreased $32.5 million in fiscal 2021 due to the removal of fully amortized assets.

The following table presents details of intangible asset amortization expense recognized in the Consolidated Statements of Income (in thousands):


	Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Research and development	$	32,319	$	31,351	$	27,858
Selling, general and administrative		12,186		11,218		9,876
	$	44,505	$	42,569	$	37,734

The estimated aggregate amortization expense for intangible assets subject to amortization for each of the five succeeding fiscal years is as follows (in thousands):


Fiscal Year
2022	$	34,071
2023		25,374
2024		23,034
2025		13,369
2026		9,178

Debt

12 Months Ended

Jan. 01, 2022

Debt

Debt

11. Debt

0.625% Convertible Senior Notes

On June 1, 2020, the Company completed a private offering of $535 million principal amount convertible senior notes (the “2025 Notes”). The 2025 Notes bear interest semi-annually at a rate of 0.625% per year and mature on June 15, 2025.

The 2025 Notes are convertible at a conversion rate of 8.1980 shares of common stock per $1,000 principal amount of the 2025 Notes, or approximately 4.4 million shares of common stock, which is equivalent to a conversion price of approximately $121.98 per share. The conversion rate is subject to adjustment under certain circumstances, such as the repurchases of common stock under a “modified Dutch Auction” tender offer completed during fiscal 2021. Holders may convert the 2025 Notes under the following circumstances: during any calendar quarter after the calendar quarter ended on September 30, 2020 if the closing price of the Company’s common stock for at least 20 trading days in the 30 consecutive trading days ending on the last trading day of the preceding calendar quarter is greater than or equal to $159.51 per share, representing 130% of the conversion price of the 2025 Notes (“the Sales Price Trigger”); during the five business day period after any ten consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the closing sale price of our common stock and the conversion rate on each such trading day; if specified distributions or corporate events occur; if the Notes are called for redemption; or at any time after March 15, 2025. The Company may redeem all or any portion of the 2025 Notes, at its option, on or after June 20, 2023, if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days during any 30 consecutive trading day period. Upon conversion, the 2025 Notes may be settled in cash, shares of the Company’s common stock or a combination of cash and shares, at the Company’s election.

The Sales Price Trigger condition was met on January 1, 2022, and as a result, holders may convert their 2025 Notes at any time during the quarter ending March 31, 2022. Accordingly, the net carrying amount of the 2025 Notes was reclassified into current liabilities. On January 2, 2022, the Company irrevocably elected cash settlement for the principal amount of the 2025 Notes. The Company intends to settle any excess value in shares in the event of a conversion.

The Company incurred debt issuance costs of approximately $10.4 million, which was allocated to the liability and equity components in proportion to the allocation of the proceeds. The costs allocated to the liability component are being amortized as interest expense over the term of the 2025 Notes using the effective interest method.

1.375% Convertible Senior Notes

On March 6, 2017, the Company completed a private offering of $400 million principal amount convertible senior notes (the “2022 Notes”). The Notes bore interest semi-annually at a rate of 1.375% per year and were scheduled to mature on March 1, 2022.

On January 6, 2021, the Company issued a notice of redemption for the remaining $140.6 million principal amount of the 2022 Notes. Prior to the redemption, the Company received conversion notices representing $130.4 million principal amount of the notes. The Company paid $130.4 million in cash and issued 528,022 shares of common stock for the conversions. Notes representing $10.2 million principal amount were redeemed at par, plus accrued interest. All note conversions and redemptions were completed by March 22, 2021. The Company recognized a loss on debt extinguishment of $3.4 million during fiscal 2021, which was recorded in interest expense in the Consolidated Statements of Income.

11. Debt (Continued)

Convertible Debt, Net

The principal balances of the 2025 Notes and 2022 Notes (together, the "Notes") were separated into liability and equity components, and recorded initially at fair value. The excess of the principal amounts of the liability components over their carrying amounts represent the debt discount, which are amortized to interest expense over the term of the Notes using the effective interest method. The carrying amounts of the liability components was estimated by discounting the contractual cash flows of similar non-convertible debt at an appropriate market rate at the date of issuance.

The carrying amount of the Notes consisted of the following (in thousands):


	January 1,		January 2,
	2022		2021
Liability component
Principal	$	535,000	$	675,567
Unamortized debt discount		(78,519)		(103,953)
Unamortized debt issuance costs		(5,882)		(8,189)
Net carrying amount	$	450,599	$	563,425

Equity component
Net carrying amount	$	107,928	$	108,438

The liability components of the Notes are recorded in convertible debt on the Consolidated Balance Sheet. The equity components of the Notes are recorded in stockholders’ equity. The effective interest rate for the liability component was 5.336% for the 2025 Notes and 4.75% for the 2022 Notes. As of January 1, 2022, the remaining period over which the debt discount and debt issuance costs will be amortized was 3.5 years for the 2025 Notes. With the Company’s adoption of ASU 2020-06 in fiscal 2022, the principal balance of the 2025 Notes will no longer be separated between liability and equity components. This will result in an increase to the carrying value of its convertible debt by $78.5 million, representing the unamortized debt discount, with an offsetting reduction in stockholders’ equity.

Interest expense related to the notes was comprised of the following (in thousands):


	Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Contractual interest expense	$	3,662	$	5,530	$	5,485
Amortization of debt discount		21,112		19,375		11,717
Amortization of debt issuance costs		1,655		2,058		1,768
	$	26,429	$	26,963	$	18,970

Credit Facility

The Company and certain of its domestic subsidiaries (the “Guarantors”) have a $400 million revolving credit facility with a maturity date of August 7, 2024. The credit facility includes a $25 million letter of credit sublimit and a $10 million swingline loan sublimit. The Company also has an option to increase the size of the borrowing capacity by up to the greater of an aggregate of $250 million and 100% of EBITDA of the last four fiscal quarters, plus an amount that would not cause a secured leverage ratio (funded debt secured by assets/EBITDA) to exceed 3.25 to 1.00, subject to certain conditions.

11. Debt (Continued)

The credit facility, other than swingline loans, will bear interest at the Eurodollar rate plus an applicable margin or, at the option of the Company, a base rate (defined as the highest of the Wells Fargo prime rate, the Federal Funds rate plus 0.50% and the Eurodollar Base Rate plus 1.00%) plus an applicable margin. Swingline loans accrue interest at the base rate plus the applicable margin for base rate loans. The applicable margins for the Eurodollar rate loans range from 1.00% to 1.75% and for base rate loans range from 0.00% to 0.75%, depending in each case, on the leverage ratio as defined in the credit facility.

The credit facility contains various conditions, covenants and representations with which the Company must be in compliance in order to borrow funds and to avoid an event of default, including financial covenants that the Company must maintain a net leverage ratio (funded indebtedness/EBITDA) of no more than 4.25 to 1, a secured leverage ratio of no more than 3.50 to 1, and a minimum interest coverage ratio (EBITDA/interest payments) of no less than 2.50 to 1. As of January 1, 2022, the Company was in compliance with all covenants of the credit facility. The Company’s obligations under the credit facility are guaranteed by the Guarantors and are secured by a security interest in substantially all assets of the Company and the Guarantors. As of January 1, 2022, no amounts were outstanding on the credit facility.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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+ Details

Leases

12 Months Ended

Jan. 01, 2022

Leases

Leases

12. Leases

The Company leases certain facilities under operating lease agreements that expire at various dates through 2030. Some of these arrangements contain renewal options and require the Company to pay taxes, insurance and maintenance costs. Lease costs for operating leases were $7.4 million, $5.6 million and $5.8 million during fiscal 2021, 2020 and 2019, respectively.

Supplemental Lease Information


	January 1,		January 2,
Balance Sheet Information (in thousands)	2022		2021
Operating lease right-of-use assets	$	27,896	$	27,392
Operating lease liabilities	$	29,171	$	29,017


	Year Ended
	January 1,		January 2,
Cash Flow Information (in thousands)	2022		2021
Cash paid for operating lease liabilities	$	7,138	$	5,541
Right-of-use assets obtained in exchange for operating lease obligations	$	6,335	$	16,711


	January 1,		January 2,
Operating Lease Information	2022		2021
Weighted-average remaining lease term	5.9 years		6.4 years
Weighted-average discount rate	3.83	%	4.24	%

12. Leases (Continued)

The maturities of operating lease liabilities as of January 1, 2022 were as follows (in thousands):


Fiscal Year
2022	$	7,136
2023		6,207
2024		5,188
2025		3,786
2026		2,623
Thereafter		7,403
Total lease payments		32,343
Less imputed interest		(3,172)
Total lease liabilities	$	29,171

Lease income

The Company leases a portion of its headquarter facilities to other tenants. Lease income from operating leases was $4.9 million, $3.2 million and $4.0 million during fiscal 2021, 2020 and 2019, respectively.

Commitments and Contingencies

12 Months Ended

Jan. 01, 2022

Commitments and Contingencies

Commitments and Contingencies

13. Commitments and Contingencies

Legal Proceedings

The Company is involved in various legal proceedings that have arisen in the normal course of business. While the ultimate results cannot be predicted with certainty, the Company does not expect them to have a material adverse effect on its Consolidated Financial Statements.

Share Repurchases

12 Months Ended

Jan. 01, 2022

Share Repurchases

Share Repurchases

14. Share Repurchases

The Company repurchased 6.5 million shares, 0.2 million shares and 0.3 million shares of its common stock for $1.15 billion, $16.3 million and $26.7 million during fiscal 2021, 2020 and 2019, respectively. Shares repurchased in fiscal 2021 included purchases of 4.0 million shares through a “modified Dutch Auction” tender offer, 1.7 million shares through an accelerated share repurchase (“ASR”) agreement and 0.8 million shares through the Company’s existing share repurchase program. The tender offer commenced on August 3, 2021 and expired on August 30, 2021. Shares repurchased through the tender offer were priced at $160.00 per share, for an aggregate cost of $640.7 million, excluding fees and expenses relating to the tender offer. Under the ASR Agreement, the Company will repurchase an aggregate of $400 million of its common stock. In fiscal 2021, the Company received an aggregate initial share delivery of approximately 1.7 million shares, with the remaining shares, if any, expected to be delivered in the first fiscal quarter of 2022. Shares purchased through the tender offer, ASR agreement and share repurchase program were effectively retired upon repurchase.

Revenues

12 Months Ended

Jan. 01, 2022

Revenues

Revenues

15. Revenues

Revenues were generated predominately by sales of the Company’s mixed-signal products. Revenue is recognized when control of the promised goods or services is transferred to the customer, which typically occurs upon delivery. The transaction price reflects the Company’s expectations about the consideration it will be entitled to receive from the customer and may include fixed or variable amounts. Variable consideration that does not meet revenue recognition criteria is deferred.

15. Revenues (Continued)

A portion of the Company’s sales are made to distributors under agreements allowing certain rights of return and/or price protection related to the final selling price to the end customers. These factors impact the timing and uncertainty of revenues and cash flows. The Company recognized revenue of $12.4 million, $11.5 million and $10.3 million during fiscal 2021, 2020 and 2019, respectively, from performance obligations that were satisfied in previous reporting periods. The following disaggregates the Company’s revenue by sales channel (in thousands):


		Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Distributors	$	584,010	$	416,606	$	361,645
Direct customers		136,850		94,322		112,140
	$	720,860	$	510,928	$	473,785

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

Stock-Based Compensation

12 Months Ended

Jan. 01, 2022

Stock-Based Compensation

Stock-Based Compensation

16. Stock-Based Compensation

Information in this footnote is inclusive of both continuing and discontinued operations, except as noted.

In fiscal 2009, the stockholders of the Company approved the 2009 Stock Incentive Plan (the “2009 Plan”) and the 2009 Employee Stock Purchase Plan (the “2009 Purchase Plan”). In fiscal 2017 and fiscal 2021, the stockholders of the Company approved amendments to both the 2009 Plan and the 2009 Purchase Plan. The purpose of the amendments was to authorize additional shares of common stock for issuance, to comply with changes in applicable law, to improve the Company’s corporate governance and to implement other best practices.

2009 Stock Incentive Plan

Under the 2009 Plan, the following may be granted: stock options, stock appreciation rights, performance shares, performance stock units, restricted stock units (RSUs), restricted stock awards (RSAs), performance-based awards and other awards (collectively, all such grants are referred to as “awards”). The fiscal 2017 amendments to the 2009 Plan created a single share pool. All awards now deduct one share from the 2009 Plan shares available for issuance for each share granted. Awards granted under the 2009 Plan generally contain vesting provisions ranging from three to four years. The exercise price of stock options offered under the 2009 Plan may not be less than 100% of the fair market value of a share of our common stock on the date of grant. To the extent awards granted under the 2009 Plan terminate, expire or lapse for any reason, or are settled in cash, shares subject to such awards will again be available for grant.

Stock Grants and Modifications

The Company granted to its employees 0.6 million, 0.7 million and 0.7 million shares of full value awards and no stock options from the 2009 Plan during fiscal 2021, 2020 and 2019, respectively.

The Company recorded $7.8 million in selling, general and administrative expense during fiscal 2021 in connection with the modification of certain equity awards. The modifications were pursuant to employee terminations. There were no other significant modifications made to any stock grants during fiscal 2021, 2020 or 2019.

Included in the full value awards granted under the 2009 Plan in fiscal 2021 were 116,809 performance-based stock awards (PSUs). PSUs provide for the rights to acquire a number of shares of common stock for no cash consideration based upon the achievement of specified revenue objectives during the year. The requisite service period for these PSUs is approximately three years from the date of grant. There were no performance stock units (PSUs) granted during fiscal 2020 or 2019.

16. Stock-Based Compensation (Continued)

Included in the full value awards granted under the 2009 Plan in fiscal 2020 and 2019 were a total of 82,000 and 93,000 market-based stock awards, respectively. The awards, also known as market stock units (MSUs), provide the rights to acquire a number of shares of common stock for no cash consideration based upon achievement of specified levels of market conditions. The requisite service period for these MSUs is also the vesting period, which is generally three years. MSUs granted in 2020 and 2019 measure the relative performance of the total stockholders’ return of the Company against that of a selected benchmarked group of companies. There were no MSUs granted in fiscal 2021.

2009 Employee Stock Purchase Plan

The rights to purchase common stock granted under the 2009 Purchase Plan are intended to be treated as either (i) purchase rights granted under an “employee stock purchase plan,” as that term is defined in Section 423(b) of the Internal Revenue Code (the “423(b) Plan”), or (ii) purchase rights granted under an employee stock purchase plan that is not subject to the terms and conditions of Section 423(b) of the Internal Revenue Code (the “Non-423(b) Plan”). The Company will retain the discretion to grant purchase rights under either the 423(b) Plan or the Non-423(b) Plan. Eligible employees may purchase a limited number of shares of the Company’s common stock at no less than 85% of the fair market value of a share of common stock at prescribed purchase intervals during an offering period. Each offering period will be comprised of a series of one or more successive and/or overlapping purchase intervals and has a maximum term of 24 months. During fiscal 2021, 2020 and 2019, the Company issued 146,000, 177,000 and 208,000 shares, respectively, under the 2009 Purchase Plan to its employees. The weighted-average fair value for purchase rights granted in fiscal 2021 under the 2009 Purchase Plan was $41.59 per share.

Accounting for Stock-Based Compensation

Stock-based compensation costs are based on the fair values on the date of grant for stock awards and stock options and on the date of enrollment for the employee stock purchase plans. The fair values of stock awards (such as RSUs, PSUs and RSAs) are estimated based on their intrinsic values. The fair values of MSUs are estimated using a Monte Carlo simulation. The fair values of stock options and employee stock purchase plans are estimated using the Black-Scholes option-pricing model.

The Black-Scholes valuation calculation requires the Company to estimate key assumptions such as future stock price volatility, expected terms, risk-free rates and dividend yield. Expected stock price volatility is based upon a combination of both historical volatility and implied volatility derived from traded options on the Company’s stock in the marketplace. Expected term is derived from an analysis of historical exercises and remaining contractual life of options. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. The Company has never paid cash dividends and does not currently intend to pay cash dividends, thus it has assumed a 0% dividend yield.

The Monte Carlo simulation used to calculate the fair value of the MSUs simulates the present value of the potential outcomes of future stock prices of the Company and the Philadelphia Semiconductor Sector Total Return Index over the requisite service period. The projection of stock prices are based on the risk-free rate of return, the volatilities of the stock price of the Company and the Index, and the correlation of the stock price of the Company with the Index.

The Company estimates potential forfeitures of stock grants and adjusts compensation cost recorded accordingly. The estimate of forfeitures will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures are recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of stock-based compensation expense to be recognized in future periods.

The fair values of stock options and RSUs are amortized as compensation expense on a straight-line basis over the vesting period of the grants. The fair values of RSAs are fully expensed in the period of grant when shares are immediately issued with no vesting restrictions. The fair values of MSUs are amortized as compensation expense on a straight-line basis over the performance and service periods of the grants. The fair values of PSUs are amortized as compensation expense on a straight-line basis over the performance period when the performance is probable of achievement, and over the remaining service periods thereafter. Compensation expense recognized is shown in the operating activities section of the Consolidated Statements of Cash Flows.

16. Stock-Based Compensation (Continued)

The fair values estimated from the Black-Scholes option-pricing model for ESPP shares granted were calculated using the following assumptions:


	Year Ended
	January 1,		January 2,		December 28,
Employee Stock Purchase Plan	2022		2021		2019
Expected volatility	42	%	67	%	37	%
Risk-free interest rate %	0.05	%	0.15	%	1.6	%
Expected term (in months)	9		9		9
Dividend yield	—		—		—

The fair values estimated from the Monte Carlo simulation for MSUs were calculated using the following assumptions:


	Year Ended
	January 2,		December 28,
MSUs	2021		2019
Expected volatility	36	%	31	%
Risk-free interest rate %	1.3	%	2.4	%
Expected term (in years)	2.9		2.9
Dividend yield	—		—

A summary of stock-based compensation activity with respect to fiscal 2021 follows:


		Weighted-		Weighted-Average	Aggregate
		Average		Remaining	Intrinsic
	Shares	Exercise		Contractual Term	Value
Stock Options	(000s)	Price		(In Years)	(000s)
Outstanding at January 2, 2021	127	$	39.16	5.11	$	11,232
Outstanding at January 1, 2022	118	$	38.80	4.12	$	19,825
Vested at January 1, 2022 and expected to vest	118	$	38.80	4.12	$	19,825
Exercisable at January 1, 2022	118	$	38.80	4.12	$	19,825


		Weighted-		Weighted-Average	Aggregate
		Average		Remaining	Intrinsic
	Shares	Grant Date		Vesting Term	Value
RSAs and RSUs	(000s)	Fair Value		(In Years)	(000s)
Outstanding at January 2, 2021	1,106	$	97.07
Granted	452	$	135.28
Vested or issued	(502)	$	95.04
Cancelled or forfeited	(225)	$	108.61
Outstanding at January 1, 2022	831	$	115.72	1.11	$	171,476

Outstanding at January 1, 2022 and expected to vest	770	$	115.10	1.11	$	159,028


		Weighted-		Weighted-Average	Aggregate
		Average		Remaining	Intrinsic
	Shares	Grant Date		Vesting Term	Value
PSUs and MSUs	(000s)	Fair Value		(In Years)	(000s)
Outstanding at January 2, 2021	233	$	79.80
Granted	117	$	145.11
Earned or issued	(37)	$	97.19
Cancelled or forfeited	(67)	$	89.45
Outstanding at January 1, 2022	246	$	105.58	1.44	$	50,792

Outstanding at January 1, 2022 and expected to vest	224	$	102.01	1.44	$	46,297

16. Stock-Based Compensation (Continued)

The following summarizes the Company’s weighted average fair value at the date of grant:


	Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Per grant of RSAs and RSUs	$	135.28	$	100.27	$	89.35
Per grant of PSUs and MSUs	$	145.11	$	98.58	$	85.79

The following summarizes the Company’s stock-based payment and stock option values (in thousands):


	Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Intrinsic value of stock options exercised	$	986	$	558	$	—
Intrinsic value of RSUs that vested	$	76,654	$	48,534	$	57,693
Grant date fair value of RSUs that vested	$	47,726	$	37,477	$	40,434
Intrinsic value of PSUs and MSUs that vested	$	5,231	$	8,545	$	3,649
Grant date fair value of PSUs and MSUs that vested	$	3,562	$	6,302	$	1,461

The Company received $14.2 million cash for the issuance of common stock, and paid $22.2 million for shares withheld for taxes, during fiscal 2021. The Company issues shares from the shares reserved under its stock plans upon the exercise of stock options, vesting of RSUs, PSUs and MSUs, and purchases through employee stock purchase plans. The Company does not currently expect to repurchase shares from any source to satisfy such obligation.

The following table presents details of stock-based compensation costs recognized in the Consolidated Statements of Income (in thousands):


	Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Cost of revenues	$	964	$	970	$	790
Research and development		24,986		23,359		19,996
Selling, general and administrative		30,892		25,125		23,548
		56,842		49,454		44,334
Income tax benefit		(954)		(3,694)		(2,584)
Share-based compensation – continuing operations		55,888		45,760		41,750
Share-based compensation – discontinued operations, net		(2,007)		10,715		10,574
Total	$	53,881	$	56,475	$	52,324

The Company had approximately $74.2 million of total unrecognized compensation cost related to equity grants under the 2009 Plan as of January 1, 2022 that is expected to be recognized over a weighted-average period of approximately 2.4 years. There were no significant stock-based compensation costs capitalized into assets in any of the periods presented.

As of January 1, 2022, the Company had reserved shares of common stock for future issuance as follows (in thousands):


2009 Stock Incentive Plan		2,946
2009 Employee Stock Purchase Plan		1,254
Total shares reserved		4,200

Employee Benefit Plan

12 Months Ended

Jan. 01, 2022

Employee Benefit Plan

Employee Benefit Plan

17. Employee Benefit Plan

The Company maintains a defined contribution or 401(k) Plan for its qualified U.S. employees. Participants may contribute a percentage of their compensation on a pre-tax basis, subject to a maximum annual contribution imposed by the Internal Revenue Code. The Company may make discretionary matching contributions as well as discretionary profit-sharing contributions to the 401(k) Plan. The Company contributed $3.5 million, $4.2 million and $3.9 million to the 401(k) Plan during fiscal 2021, 2020 and 2019, respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

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-Name Accounting Standards Codification
-Topic 715
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-Section 50
-Paragraph 1
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-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Income Taxes

12 Months Ended

Jan. 01, 2022

Income Taxes

Income Taxes

18. Income Taxes

Loss from continuing operations before income taxes includes the following components (in thousands):


	Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Domestic	$	(29,112)	$	(58,104)	$	(38,448)
Foreign		(29,063)		(74,099)		(57,563)
	$	(58,175)	$	(132,203)	$	(96,011)

The provision (benefit) for income taxes consists of the following (in thousands):


	Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Current:
Domestic	$	(12,630)	$	(9,740)	$	(20,962)
Foreign		9,447		1,656		4,940
Total Current		(3,183)		(8,084)		(16,022)
Deferred:
Domestic		17,873		(4,031)		33,624
Foreign		(1,263)		(2,487)		(10,618)
Total Deferred		16,610		(6,518)		23,006
Provision (benefit) for income taxes	$	13,427	$	(14,602)	$	6,984

The reconciliation of the federal statutory tax rate to the Company’s effective tax rate is as follows:


	Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Federal statutory rate	21.0	%	21.0	%	21.0	%
Foreign tax rate benefit	(12.5)		(11.1)		(9.7)
Research and development tax credits	0.1		4.2		5.3
GILTI and Subpart F Income	(1.8)		0.2		0.2
(Nondeductible) nontaxable foreign items	(4.9)		0.1		(2.5)
Nondeductible officer compensation	(7.8)		(1.7)		(2.0)
Change in cost-sharing treatment of stock-based compensation	—		—		(19.2)
Excess tax benefit of stock-based compensation	2.8		0.4		0.8
Other tax effects of equity compensation	0.4		0.1		0.7
Change in prior period valuation allowance	(8.0)		(0.3)		(0.7)
(Nondeductible) nontaxable domestic items	(2.1)		(1.6)		(1.6)
Net operating loss not benefited	(9.5)		—		—
Other	(0.8)		(0.3)		0.4
Effective tax rate	(23.1)	%	11.0	%	(7.3)	%

18. Income Taxes (Continued)

The effective tax rate for fiscal 2021 decreased from fiscal 2020 primarily due to the adoption of FASB ASU 2019-12, Simplifying the Accounting for Income Taxes, in 2021 and an increase in the beginning of year valuation allowance on deferred tax assets for state attribute carryforwards. The effective tax rate for fiscal 2020 increased from fiscal 2019 primarily due to a fiscal 2019 change in the Company’s position related to the treatment of stock-based compensation within its intercompany cost-sharing arrangement offset by the increased impact of fiscal 2020 permanent tax differences.

The higher provision for income taxes for fiscal 2021 was primarily due to the adoption of ASU 2019-12 as of the beginning of fiscal 2021. Under ASU 2019-12, which is being applied prospectively from the date of adoption, the income tax benefit of a loss from continuing operations should be reallocated to discontinued operations if the Company would be unable to benefit from the loss without considering the income from discontinued operations. As such, the income tax benefit from net operating losses associated with continuing operations for fiscal 2021 was reallocated to discontinued operations. Prior to ASU 2019-12, if the Company reported a loss from continuing operations and income from discontinued operations, income from discontinued operations would be considered in determining the income tax benefit allocated to continuing operations. Additionally, for fiscal 2021 there was an increase in the beginning of year valuation allowance on deferred tax assets for state attribute carryforwards as a result of changes in state tax estimates, primarily due to the divestiture of the infrastructure and automotive business.

Tax on the gain from the divestiture of the infrastructure and automotive business of $346.9 million was recorded in discontinued operations for the current period, as well as additional tax benefits associated with discontinued operations of $7.2 million for fiscal 2021. As of January 1, 2022, income taxes payable of $74.9 million recorded in connection with the gain from the divestiture was included in other current liabilities in the Consolidated Balance Sheet.

18. Income Taxes (Continued)

The Tax Cuts and Jobs Act was enacted in the U.S. on December 22, 2017 and required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously deferred from U.S income tax under U.S. tax law. The Company elected to pay the transition tax over the eight-year period provided in the Act. As of January 1, 2022, the unpaid balance of its transition tax obligation was $21.4 million, which is payable between April 2022 and April 2025. This was recorded as components of other current liabilities and other non-current liabilities in the Consolidated Balance Sheet in the amounts of $2.4 million and $19.0 million, respectively.

The Company has made an accounting policy election to treat global intangible low-taxed income (GILTI) as a period expense when incurred.

Deferred Income Taxes

Deferred tax assets and liabilities are recorded for the estimated tax impact of temporary differences between the tax basis and book basis of assets and liabilities. Significant components of the Company’s deferred taxes as of January 1, 2022 and January 2, 2021 were as follows (in thousands):


	January 1,		January 2,
	2022		2021
Deferred tax assets:
Net operating loss carryforwards	$	5,803	$	6,839
Tax credit carryforwards		12,247		22,421
Intangible assets		8,687		9,802
Deferred income on shipments to distributors		4,588		3,099
Leases		6,033		6,335
Accrued liabilities		6,078		6,320
Other		4,180		5,513
		47,616		60,329
Less: Valuation allowance		(9,529)		(5,311)
		38,087		55,018
Deferred tax liabilities:
Intangible assets		14,479		16,758
Fixed assets		8,692		8,473
Leases		5,664		5,999
Debt		16,399		21,674
Unrealized gain on equity method investment		3,342		587
Prepaid expenses and other		6,049		4,332
		54,625		57,823

Net deferred tax assets (liabilities)	$	(16,538)	$	(2,805)

As of January 1, 2022, the Company had federal net operating loss and research and development tax credit carryforwards of approximately $18.4 million and $1.8 million, respectively. These carryforwards expire in fiscal years 2022 through 2031. Recognition of these loss and credit carryforwards is subject to an annual limit, which may cause them to expire before they are used.

The Company also had state loss, state tentative minimum tax credit, and state research and development tax credit carryforwards of approximately $30.6 million, $0.5 million, and $11.9 million, respectively. Certain of these carryforwards expire in fiscal years 2025 through 2036, and others do not expire. Recognition of some of these loss and credit carryforwards is subject to an annual limit, which may cause them to expire before they are used.

18. Income Taxes (Continued)

A valuation allowance is established against a deferred tax asset when it is more likely than not that the deferred tax asset will not be realized. The Company maintains a valuation allowance with respect to certain deferred tax assets relating to state research and development tax credits, state net operating loss carryforwards and state alternative minimum tax credits. The following table summarizes the activity related to the valuation allowance for deferred tax assets (in thousands):


	Balance at		Additions
	Beginning of		Charged to				Balance at
	Period		Expenses		Deductions		End of Period
Year ended January 1, 2022	$	5,311	$	5,370	$	(1,152)	$	9,529

Year ended January 2, 2021	$	4,486	$	847	$	(22)	$	5,311

Year ended December 28, 2019	$	4,975	$	1,044	$	(1,533)	$	4,486

At the end of fiscal 2021, undistributed earnings of certain of the Company’s foreign subsidiaries of approximately $107.8 million are intended to be permanently reinvested outside the U.S. Accordingly, no provision for foreign withholding tax and state income taxes associated with a distribution of these earnings has been made. Determination of the amount of the unrecognized deferred tax liability on these unremitted earnings is not practicable.

Uncertain Tax Positions

The following table summarizes the activity related to gross unrecognized tax benefits (in thousands):


	Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Beginning balance	$	2,853	$	2,276	$	2,036
Additions based on tax positions related to current year		830		577		436
Reductions based on tax positions related to prior years		(6)		—		(196)
Ending balance	$	3,677	$	2,853	$	2,276

As of January 1, 2022, January 2, 2021 and December 28, 2019, the Company had gross unrecognized tax benefits, inclusive of interest, of $3.9 million, $3.0 million and $2.4 million, respectively, of which $3.9 million, $2.1 million and $1.9 million, respectively, would affect the effective tax rate if recognized.

The Company recognizes interest and penalties related to unrecognized tax benefits in the provision (benefit) for income taxes. These amounts were not material for any of the periods presented.

Following the completion of the Norwegian Tax Administration (“NTA”) examination of the Company’s Norwegian subsidiary for income tax matters relating to fiscal years 2013 – 2016, the Company received an assessment from the NTA in December 2017 concerning an adjustment to its 2013 taxable income related to the pricing of an intercompany transaction. The Company is currently appealing the assessment. The adjustment to the pricing of the intercompany transaction results in approximately 141.3 million Norwegian kroner, or $16.0 million, additional Norwegian income tax. The Company disagrees with the NTA’s assessment and believes the Company’s position on this matter is more likely than not to be sustained. The Company plans to exhaust all available administrative remedies, and if unable to resolve this matter through administrative remedies with the NTA, the Company plans to pursue judicial remedies.

The Company believes that it has accrued adequate reserves related to all matters contained in tax periods open to examination. Should the Company experience an unfavorable outcome in the NTA matter, however, such an outcome could have a material impact on its financial statements.

Tax years 2015 through 2021 remain open to examination by the major taxing jurisdictions in which the Company operates. The Company is not currently under audit in any major taxing jurisdiction.

18. Income Taxes (Continued)

The Company believes it is reasonably possible that its gross unrecognized tax benefits will decrease by approximately $0.5 million, inclusive of interest, in the next 12 months due to the lapse of the statute of limitations.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

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+ Details

Segment Information

12 Months Ended

Jan. 01, 2022

Segment Information

Segment Information

19. Segment Information

The Company has one operating segment, mixed-signal analog intensive products, consisting of numerous product areas. The Company’s chief operating decision maker is considered to be its Chief Executive Officer. The chief operating decision maker allocates resources and assesses performance of the business and other activities at the operating segment level.

Revenue is attributed to a geographic area based on the shipped-to location. The following summarizes the Company’s revenue by geographic area (in thousands):


	Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
United States	$	97,471	$	59,458	$	63,404
China		311,513		232,772		203,468
Rest of world		311,876		218,698		206,913
Total	$	720,860	$	510,928	$	473,785

The following summarizes the Company’s property and equipment, net by geographic area (in thousands):


	January 1,		January 2,
	2022		2021
United States	$	121,990	$	125,310
Rest of world		24,526		10,493
Total	$	146,516	$	135,803

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Significant Accounting Policies (Policies)	12 Months Ended
Significant Accounting Policies (Policies)	Jan. 01, 2022
Significant Accounting Policies
Foreign Currency Transactions	Foreign Currency Transactions The Company’s foreign subsidiaries are considered to be extensions of the U.S. Company. The functional currency of the foreign subsidiaries is the U.S. dollar. Accordingly, gains and losses resulting from remeasuring transactions denominated in currencies other than U.S. dollars are included in interest income and other, net in the Consolidated Statements of Income.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Among the significant estimates affecting the financial statements are those related to inventories, goodwill, acquired intangible assets, other long-lived assets, revenue recognition, stock-based compensation and income taxes. Actual results could differ from those estimates, and such differences could be material to the financial statements.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The fair values of the Company’s financial instruments are recorded using a hierarchical disclosure framework based upon the level of subjectivity of the inputs used in measuring assets and liabilities. The three levels are described below: Level 1 - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 - Inputs other than Level 1 that are directly or indirectly observable, such as quoted prices for similar assets or liabilities and quoted prices in less active markets. Level 3 - Inputs are unobservable for the asset or liability and are developed based on the best information available in the circumstances, which might include the Company’s own data.
Cash and Cash Equivalents	2. Significant Accounting Policies (Continued) Cash and Cash Equivalents Cash and cash equivalents consist of cash deposits, certificates of deposit, money market funds and investments in debt securities with original maturities of ninety days or less when purchased.
Investments	Investments The Company’s investments typically have original maturities greater than ninety days as of the date of purchase and are classified as either available-for-sale or trading securities. Investments in available-for-sale securities are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive income (loss) in the Consolidated Balance Sheet. Investments in trading securities are reported at fair value, with both realized and unrealized gains and losses recorded in interest income and other, net in the Consolidated Statement of Income. Investments in which the Company has the ability and intent, if necessary, to liquidate in order to support its current operations (including those with contractual maturities greater than one year from the date of purchase) are classified as short-term. The Company reviews its available-for-sale investments as of the end of each reporting period for declines in fair value based on the specific identification method. The Company records an allowance for credit loss when a decline in fair value is due to credit-related factors. The Company considers various factors in determining whether an investment is impaired, including the severity of the impairment, changes in underlying credit ratings, forecasted recovery, its intent to sell or the likelihood that it would be required to sell the investment before its anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. When the Company concludes that a credit-related impairment has occurred, the Company assesses whether it intends to sell the security or if it is more likely than not that it will be required to sell the security before recovery. If either of these two conditions is met, the Company recognizes a charge in earnings equal to the entire difference between the security’s amortized cost basis and its fair value. If the Company does not intend to sell a security and it is not more likely than not that it will be required to sell the security before recovery, the unrealized loss is separated into an amount representing the credit loss, which is recognized in earnings, and the amount related to all other factors, which is recorded in accumulated other comprehensive income (loss). In addition, the Company has made equity investments in non-publicly traded companies. Equity investments in which the Company does not have control, but has the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. The Company’s proportionate share of income or loss is recorded in equity-method earning in the Consolidated Statements of Income. The Company has elected to use the measurement alternative under ASU 2019-04 to value non-marketable equity investments that do not have readily determinable fair values. Under the alternative, these non-marketable equity investments are recorded at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes of the same or similar securities in observable transactions. The Company periodically reviews its equity investments for declines in fair value based on the specific identification method and writes down investments to their estimated fair values when it determines that a decline has occurred.
Derivative Financial Instruments	Derivative Financial Instruments The Company uses derivative financial instruments to manage certain exposures to the variability of foreign currency exchange rates. The Company’s objective is to offset increases and decreases in expenses resulting from these exposures with gains and losses on the derivative contracts, thereby reducing volatility of earnings. The Company does not use derivative contracts for speculative or trading purposes. The Company recognizes derivatives, on a gross basis, in the Consolidated Balance Sheet at fair value. Cash flows from derivatives are classified according to the nature of the cash receipt or payment in the Consolidated Statement of Cash Flows. The Company also uses foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on non-U.S. dollar balance sheet exposures. The Company does not apply hedge accounting to these foreign currency forward contracts. 2. Significant Accounting Policies (Continued)
Inventories	Inventories Inventories are stated at the lower of cost, determined using the first-in, first-out method, or net realizable value. The Company writes down the carrying value of inventory to net realizable value for estimated obsolescence or unmarketable inventory based upon assumptions about the age of inventory, future demand and market conditions. Inventory impairment charges establish a new cost basis for inventory and charges are not subsequently reversed to income even if circumstances later suggest that increased carrying amounts are recoverable.
Property and Equipment	Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the useful lives of the assets ranging from three to fifteen years. Leasehold improvements are depreciated over the lease term or their useful life, whichever is shorter. The Company owns the facilities for its headquarters in Austin, Texas. The buildings are located on land which is leased through 2099 from a third party. The rents for these ground leases were prepaid for the term of the leases. The buildings and leasehold interest in ground leases are being depreciated on a straight-line basis over their estimated useful lives of 40 years and 86 years, respectively.
Business Combinations	Business Combinations The Company records business combinations using the acquisition method of accounting and, accordingly, allocates the fair value of acquisition consideration to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of the assets acquired and liabilities assumed is recorded as goodwill. The results of operations of the businesses acquired are included in the Company’s consolidated results of operations beginning on the date of the acquisition.
Long-Lived Assets	Long-Lived Assets Purchased intangible assets are stated at cost, net of accumulated amortization, and are amortized using the straight-line method over their estimated useful lives, ranging from two to twelve years. Fair values are determined primarily using the income approach, in which the Company projects future expected cash flows and applies an appropriate discount rate. Long-lived assets “held and used” by the Company are reviewed for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets and is recorded in the period in which the determination was made. The Company tests goodwill for impairment annually as of the first day of its fourth fiscal quarter and in interim periods if events occur that would indicate that the carrying value of goodwill may be impaired. The Company assesses goodwill for impairment by comparing the fair value of the reporting unit to its carrying amount. In determining fair value, several valuation methodologies are allowed, although quoted market prices are the best evidence of fair value. If the fair value of the reporting unit is less than its carrying amount, an impairment loss is recognized equal to that excess amount.
Leases	Leases At the commencement date of a lease, the Company recognizes a liability to make lease payments and an asset representing the right to use the underlying asset during the lease term. The lease liability is measured at the present value of lease payments over the lease term. As its leases typically do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date taking into consideration necessary adjustments for collateral, depending on the facts and circumstances of the lessee and the leased asset, and term to match the lease term. The right-of-use (“ROU”) asset is measured at cost, which includes the initial measurement of the lease liability and initial direct costs incurred by the Company and excludes lease incentives. Lease liabilities are recorded in other current liabilities and other non-current liabilities. ROU assets are recorded in other assets, net. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease costs are recognized on a straight-line basis over the lease term. Lease agreements that contain both lease and non-lease components are generally accounted for separately.
Revenue Recognition	Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Substantially all of the Company’s contracts with customers contain a single performance obligation, the sale of mixed-signal integrated circuit (IC) products. This performance obligation is satisfied when control of the product is transferred to the customer, which typically occurs upon delivery. Unsatisfied performance obligations primarily represent contracts for products with future delivery dates. The Company has opted to not disclose the amount of unsatisfied performance obligations as these contracts have original expected durations of less than one year. The transaction price reflects the Company’s expectations about the consideration it will be entitled to receive from the customer and may include fixed or variable amounts. Variable consideration primarily includes sales made to distributors under agreements allowing certain rights of return, referred to as stock rotation, and credits issued to the distributor due to price protection. The Company estimates variable consideration at the most likely amount to which it expects to be entitled. The estimate is based on information available to the Company, including recent sales activity and pricing data. The Company applies a constraint to its variable consideration estimate which considers both the likelihood of a return and the amount of a potential price concession. Variable consideration that does not meet revenue recognition criteria is deferred. The Company records a right of return asset in prepaid expenses and other current assets for the costs of distributor inventory not meeting revenue recognition criteria. A corresponding deferred revenue and returns liability amount is recorded for unrecognized revenue associated with such costs. The Company’s products carry a one-year replacement warranty. Payments are typically due within 30 days of invoicing and do not include a significant financing component.
Shipping and Handling	Shipping and Handling Shipping and handling costs are classified as a component of cost of revenues in the Consolidated Statements of Income.
Stock-Based Compensation	Stock-Based Compensation The Company has stock-based compensation plans, which are more fully described in Note 16, Stock-Based Compensation. The Company accounts for those plans using a fair-value method and recognizes the expense in its Consolidated Statement of Income.
Research and Development	Research and Development Research and development costs are expensed as incurred. Research and development expense consists primarily of personnel-related expenses, including stock-based compensation, as well as new product masks, external consulting and services costs, equipment tooling, equipment depreciation, amortization of intangible assets, and an allocated portion of our occupancy costs. Assets purchased to support the Company’s ongoing research and development activities are capitalized when related to products which have achieved technological feasibility or have an alternative future use, and are amortized over their estimated useful lives.
Advertising	Advertising Advertising costs are expensed as incurred. Advertising expenses were not material for any of the periods presented.
Income Taxes	Income Taxes The Company accounts for income taxes using the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax laws and related rates that will be in effect when the differences are expected to reverse. These differences result in deferred tax assets and liabilities, which are included in the Company’s Consolidated Balance Sheets. The Company then assesses the likelihood that the deferred tax assets will be realized. A valuation allowance is established against deferred tax assets to the extent the Company believes that it is more likely than not that the deferred tax assets will not be realized, taking into consideration the level of historical taxable income and projections for future taxable income over the periods in which the temporary differences are deductible. Uncertain tax positions must meet a more-likely-than-not threshold to be recognized in the financial statements and the tax benefits recognized are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon final settlement. See Note 18, Income Taxes, for additional information.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In August 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40). This ASU simplifies the accounting for certain convertible instruments, amends the guidance on derivative scope exceptions for contracts in an entity’s own equity and requires the use of the if-converted method for calculating diluted earnings per share. The ASU removes separation models for convertible debt with a cash conversion feature. Such convertible instruments will be accounted for as a single liability measured at amortized cost, as long as no other features require bifurcation and recognition as derivatives. This ASU is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The Company will elect the modified retrospective transition method to account for the impact of the adoption with a cumulative-effect adjustment to the opening balance of retained earnings at the date of adoption. The Company expects the primary impacts of this new standard will be to increase the carrying value of its convertible debt by approximately $78.5 million, with an offsetting reduction in stockholders’ equity, and reduce its reported interest expense. In addition, should the Company be required to use the if-converted method for calculating diluted earnings per share, the number of shares used in such calculation could potentially increase. On January 2, 2022, the Company irrevocably elected cash settlement for the principal amount of its convertible senior notes. The Company intends to settle any excess value in shares in the event of a conversion.

Discontinued Operations (Tables)

12 Months Ended

Jan. 01, 2022

Discontinued Operations.

Schedule of financial results, assets and liabilities from discontinued operations


	Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Revenues	$	233,918	$	375,749	$	363,770
Costs of revenues		95,457		143,068		133,700
Operating expenses		46,643		87,293		84,730
Operating income from discontinued operations		91,818		145,388		145,340
Gain on sale of discontinued operations		2,423,161		—		—
Income from discontinued operations before income taxes		2,514,979		145,388		145,340
Provision for income taxes		339,706		17,372		23,400
Income from discontinued operations	$	2,175,273	$	128,016	$	121,940

Income from discontinued operations per share:
Basic	$	50.79	$	2.92	$	2.81
Diluted	$	49.09	$	2.89	$	2.75

The following table summarizes the assets and liabilities of the discontinued operations (in thousands):


	January 2,
	2021
Assets
Inventories	$	18,801
Prepaid expenses and other current assets		2,204
Goodwill		255,543
Other assets		9,773
Total assets	$	286,321

Liabilities
Other current liabilities	$	433
Other non-current liabilities		451
Total liabilities	$	884

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Earnings Per Share (Tables)

12 Months Ended

Jan. 01, 2022

Earnings Per Share

Schedule of computation of basic and diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):


	Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Loss from continuing operations	$	(57,874)	$	(115,485)	$	(102,675)

Shares used in computing basic loss per share		42,830		43,775		43,346

Effect of dilutive securities:
Stock-based awards and convertible debt		—		—		—
Shares used in computing diluted loss per share		42,830		43,775		43,346

Loss per share:
Basic	$	(1.35)	$	(2.64)	$	(2.37)
Diluted	$	(1.35)	$	(2.64)	$	(2.37)

Fair Value of Financial Instruments (Tables)

12 Months Ended

Jan. 01, 2022

Fair Value of Financial Instruments

Summary of valuation of the financial instruments


	Fair Value Measurements
	at January 1, 2022 Using
	Quoted Prices in		Significant Other		Significant
	Active Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Cash equivalents:
Money market funds	$	845,740	$	—	$	—	$	845,740
Corporate debt securities		—		3,552		—		3,552
Government debt securities		—		2,950		—		2,950
Total cash equivalents	$	845,740	$	6,502	$	—	$	852,242

Short-term investments:
Government debt securities	$	71,509	$	119,612	$	—	$	191,121
Corporate debt securities		—		773,461		—		773,461
Total short-term investments	$	71,509	$	893,073	$	—	$	964,582

Other assets, net:
Auction rate securities	$	—	$	—	$	4,980	$	4,980
Total	$	—	$	—	$	4,980	$	4,980

Total	$	917,249	$	899,575	$	4,980	$	1,821,804


	Fair Value Measurements
	at January 2, 2021 Using
	Quoted Prices in		Significant Other		Significant
	Active Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Cash equivalents:
Money market funds	$	75,606	$	—	$	—	$	75,606
Corporate debt securities		—		14,995		—		14,995
Government debt securities		2,355		2,564		—		4,919
Total cash equivalents	$	77,961	$	17,559	$	—	$	95,520

Short-term investments:
Government debt securities	$	38,461	$	104,112	$	—	$	142,573
Corporate debt securities		—		379,390		—		379,390
Total short-term investments	$	38,461	$	483,502	$	—	$	521,963

Other assets, net:
Auction rate securities	$	—	$	—	$	5,340	$	5,340
Total	$	—	$	—	$	5,340	$	5,340

Total	$	116,422	$	501,061	$	5,340	$	622,823

Schedule of maturities of the Company's available-for-sale investments and money market funds


			Fair
	Cost		Value
Due in one year or less	$	578,734	$	578,666
Due after one year through ten years		394,391		392,417
Due after ten years		6,000		4,980
	$	979,125	$	976,063

Schedule of available-for-sale investments in continuous unrealized loss position by length of time


	Less Than 12 Months				12 Months or Greater				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
As of January 1, 2022	Value		Losses		Value		Losses		Value		Losses
Government debt securities	$	126,957	$	(750)	$	—	$	—	$	126,957	$	(750)
Corporate debt securities		418,917		(1,451)		326		(1)		419,243		(1,452)
Auction rate securities		—		—		4,980		(1,020)		4,980		(1,020)
	$	545,874	$	(2,201)	$	5,306	$	(1,021)	$	551,180	$	(3,222)


	Less Than 12 Months				12 Months or Greater				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
As of January 2, 2021	Value		Losses		Value		Losses		Value		Losses
Government debt securities	$	10,146	$	(5)	$	—	$	—	$	10,146	$	(5)
Corporate debt securities		51,909		(74)		—		—		51,909		(74)
Auction rate securities		—		—		5,340		(660)		5,340		(660)
	$	62,055	$	(79)	$	5,340	$	(660)	$	67,395	$	(739)

Summary of quantitative information about level 3 fair value measurements

Auction rate securities


Fair Value at
January 1, 2022
(000s)		Valuation Technique	Unobservable Input	Weighted Average
$	4,980	Discounted cash flow	Estimated yield	1.07%

			Expected holding period	10 years

			Estimated discount rate	2.45%

Summary of activity in Level 3 financial instruments

Assets


	Year Ended
	January 1,		January 2,
Auction Rate Securities	2022		2021
Beginning balance	$	5,340	$	5,647
Losses included in other comprehensive income (loss)		(360)		(307)
Ending balance	$	4,980	$	5,340

Balance Sheet Details (Tables)

12 Months Ended

Jan. 01, 2022

Balance Sheet Details

Schedule of Inventories

The following tables show the details of selected Consolidated Balance Sheet items (in thousands):


	January 1,		January 2,
	2022		2021
Work in progress	$	36,078	$	41,747
Finished goods		13,229		6,114
	$	49,307	$	47,861

Summary of Prepaid Expenses and Other Current Assets


	January 1,		January 2,
	2022		2021
Distributor advances	$	13,397	$	51,190
Other		38,351		35,913
	$	51,748	$	87,103

Schedule of other assets net


	January 1,		January 2,
	2022		2021
Equity-method investment*	$	24,078	$	10,057
Other		53,761		66,618
	$	77,839	$	76,675

*The Company holds an 8% equity interest in China Walden Venture Investments III, a limited partnership.

Schedule of Property and Equipment


	January 1,		January 2,
	2022		2021
Buildings and improvements	$	122,163	$	118,331
Equipment		48,876		39,378
Computers and purchased software		48,519		46,174
Leasehold interest in ground leases		23,840		23,840
Leasehold improvements		13,427		8,684
Furniture and fixtures		10,794		8,621
		267,619		245,028
Accumulated depreciation		(121,103)		(109,225)
	$	146,516	$	135,803

Schedule of Other Current Liabilities


	January 1,		January 2,
	2022		2021
Accrued compensation and benefits	$	42,008	$	46,633
Income taxes payable		73,771		5,797
Other		41,273		29,220
	$	157,052	$	81,650

Risks and Uncertainties (Tables)

12 Months Ended

Jan. 01, 2022

Accounts receivable

Schedule of concentration risk

The Company’s customers that accounted for greater than 10% of accounts receivable consisted of the following distributors:


	January 1,		January 2,
	2022		2021
Arrow Electronics	28	%	28	%
Edom Technology	18	%	21	%

Revenue

Schedule of concentration risk

The Company’s distributors that accounted for greater than 10% of revenue consisted of the following:


	Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Arrow Electronics	28	%	28	%	26	%
Edom Technology	18	%	19	%	18	%
Sekorm	12	%	14	%	10	%

Acquisition (Tables)

12 Months Ended

Jan. 01, 2022

Redpine Signals

Schedule of purchase price allocation


			Weighted-Average
			Amortization Period
	Amount		(Years)
Intangible assets:
In-process research and development	$	11,753	Not amortized
Developed technology		61,674	8
Customer relationships		2,450	2
Trademarks		661	2
		76,538

Accounts receivable		1,395
Inventory		4,375
Other current assets		1,251
Goodwill		233,530
Other non-current assets		673
Current liabilities		(856)
Non-current liabilities		(97)
Total purchase price	$	316,809

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Jan. 01, 2022

Goodwill and Other Intangible Assets

Summary of goodwill activity

The following summarizes the activity in goodwill for the years ended January 1, 2022 and January 2, 2021 (in thousands):


	Year Ended
	January 1,		January 2,
	2022		2021
Beginning balance	$	376,389	$	237,294
Additions due to business combinations		—		139,095
Ending balance	$	376,389	$	376,389

Schedule of gross carrying amount and accumulated amortization of other intangible assets

The gross carrying amount and accumulated amortization of other intangible assets are as follows (in thousands):


	Weighted-Average
	Amortization	January 1, 2022				January 2, 2021
	Period	Gross		Accumulated		Gross		Accumulated
	(Years)	Amount		Amortization		Amount		Amortization
Subject to amortization:
Developed technology	8	$	238,092	$	(124,337)	$	243,739	$	(109,417)
Customer relationships	4		27,450		(24,958)		41,270		(30,321)
Trademarks	5		11,471		(8,740)		12,771		(6,312)
	7		277,013		(158,035)		297,780		(146,050)

Not subject to amortization:
In-process research and development	Not amortized		—		—		11,753		—

Total intangible assets		$	277,013	$	(158,035)	$	309,533	$	(146,050)

Schedule of estimated aggregate amortization expense for intangible assets subject to amortization

The estimated aggregate amortization expense for intangible assets subject to amortization for each of the five succeeding fiscal years is as follows (in thousands):


Fiscal Year
2022	$	34,071
2023		25,374
2024		23,034
2025		13,369
2026		9,178

Schedule of amortization expense of intangible assets

The following table presents details of intangible asset amortization expense recognized in the Consolidated Statements of Income (in thousands):


	Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Research and development	$	32,319	$	31,351	$	27,858
Selling, general and administrative		12,186		11,218		9,876
	$	44,505	$	42,569	$	37,734

Debt (Tables)

12 Months Ended

Jan. 01, 2022

Debt

Summary of information about the equity and liability components of convertible debt

The carrying amount of the Notes consisted of the following (in thousands):


	January 1,		January 2,
	2022		2021
Liability component
Principal	$	535,000	$	675,567
Unamortized debt discount		(78,519)		(103,953)
Unamortized debt issuance costs		(5,882)		(8,189)
Net carrying amount	$	450,599	$	563,425

Equity component
Net carrying amount	$	107,928	$	108,438

Schedule of components of interest expense

Interest expense related to the notes was comprised of the following (in thousands):


	Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Contractual interest expense	$	3,662	$	5,530	$	5,485
Amortization of debt discount		21,112		19,375		11,717
Amortization of debt issuance costs		1,655		2,058		1,768
	$	26,429	$	26,963	$	18,970

Leases (Tables)

12 Months Ended

Jan. 01, 2022

Leases

Summary of supplemental lease information


	January 1,		January 2,
Balance Sheet Information (in thousands)	2022		2021
Operating lease right-of-use assets	$	27,896	$	27,392
Operating lease liabilities	$	29,171	$	29,017


	Year Ended
	January 1,		January 2,
Cash Flow Information (in thousands)	2022		2021
Cash paid for operating lease liabilities	$	7,138	$	5,541
Right-of-use assets obtained in exchange for operating lease obligations	$	6,335	$	16,711


	January 1,		January 2,
Operating Lease Information	2022		2021
Weighted-average remaining lease term	5.9 years		6.4 years
Weighted-average discount rate	3.83	%	4.24	%

Schedule of maturities of operating lease liabilities

The maturities of operating lease liabilities as of January 1, 2022 were as follows (in thousands):


Fiscal Year
2022	$	7,136
2023		6,207
2024		5,188
2025		3,786
2026		2,623
Thereafter		7,403
Total lease payments		32,343
Less imputed interest		(3,172)
Total lease liabilities	$	29,171

Revenues (Tables)

12 Months Ended

Jan. 01, 2022

Revenues

Schedule of disaggregation of revenue by sales channel


		Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Distributors	$	584,010	$	416,606	$	361,645
Direct customers		136,850		94,322		112,140
	$	720,860	$	510,928	$	473,785

Stock-Based Compensation (Tables)

12 Months Ended

Jan. 01, 2022

Stock-Based Compensation

Summary of assumptions used to estimate fair values for ESPP

The fair values estimated from the Black-Scholes option-pricing model for ESPP shares granted were calculated using the following assumptions:


	Year Ended
	January 1,		January 2,		December 28,
Employee Stock Purchase Plan	2022		2021		2019
Expected volatility	42	%	67	%	37	%
Risk-free interest rate %	0.05	%	0.15	%	1.6	%
Expected term (in months)	9		9		9
Dividend yield	—		—		—

Summary of assumptions used to estimate fair values for MSUs

The fair values estimated from the Monte Carlo simulation for MSUs were calculated using the following assumptions:


	Year Ended
	January 2,		December 28,
MSUs	2021		2019
Expected volatility	36	%	31	%
Risk-free interest rate %	1.3	%	2.4	%
Expected term (in years)	2.9		2.9
Dividend yield	—		—

Summary of stock-based compensation activity, options

A summary of stock-based compensation activity with respect to fiscal 2021 follows:


		Weighted-		Weighted-Average	Aggregate
		Average		Remaining	Intrinsic
	Shares	Exercise		Contractual Term	Value
Stock Options	(000s)	Price		(In Years)	(000s)
Outstanding at January 2, 2021	127	$	39.16	5.11	$	11,232
Outstanding at January 1, 2022	118	$	38.80	4.12	$	19,825
Vested at January 1, 2022 and expected to vest	118	$	38.80	4.12	$	19,825
Exercisable at January 1, 2022	118	$	38.80	4.12	$	19,825

Summary of stock-based compensation activity, RSAs and RSUs


		Weighted-		Weighted-Average	Aggregate
		Average		Remaining	Intrinsic
	Shares	Grant Date		Vesting Term	Value
RSAs and RSUs	(000s)	Fair Value		(In Years)	(000s)
Outstanding at January 2, 2021	1,106	$	97.07
Granted	452	$	135.28
Vested or issued	(502)	$	95.04
Cancelled or forfeited	(225)	$	108.61
Outstanding at January 1, 2022	831	$	115.72	1.11	$	171,476

Outstanding at January 1, 2022 and expected to vest	770	$	115.10	1.11	$	159,028

Summary of stock-based compensation activity, PSUs and MSUs


		Weighted-		Weighted-Average	Aggregate
		Average		Remaining	Intrinsic
	Shares	Grant Date		Vesting Term	Value
PSUs and MSUs	(000s)	Fair Value		(In Years)	(000s)
Outstanding at January 2, 2021	233	$	79.80
Granted	117	$	145.11
Earned or issued	(37)	$	97.19
Cancelled or forfeited	(67)	$	89.45
Outstanding at January 1, 2022	246	$	105.58	1.44	$	50,792

Outstanding at January 1, 2022 and expected to vest	224	$	102.01	1.44	$	46,297

Summary of weighted average fair value at the date of grant

The following summarizes the Company’s weighted average fair value at the date of grant:


	Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Per grant of RSAs and RSUs	$	135.28	$	100.27	$	89.35
Per grant of PSUs and MSUs	$	145.11	$	98.58	$	85.79

Summary of stock-based payment and stock option values

The following summarizes the Company’s stock-based payment and stock option values (in thousands):


	Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Intrinsic value of stock options exercised	$	986	$	558	$	—
Intrinsic value of RSUs that vested	$	76,654	$	48,534	$	57,693
Grant date fair value of RSUs that vested	$	47,726	$	37,477	$	40,434
Intrinsic value of PSUs and MSUs that vested	$	5,231	$	8,545	$	3,649
Grant date fair value of PSUs and MSUs that vested	$	3,562	$	6,302	$	1,461

Schedule of stock-based compensation costs recognized in the Condensed Consolidated Statements of Income

The following table presents details of stock-based compensation costs recognized in the Consolidated Statements of Income (in thousands):


	Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Cost of revenues	$	964	$	970	$	790
Research and development		24,986		23,359		19,996
Selling, general and administrative		30,892		25,125		23,548
		56,842		49,454		44,334
Income tax benefit		(954)		(3,694)		(2,584)
Share-based compensation – continuing operations		55,888		45,760		41,750
Share-based compensation – discontinued operations, net		(2,007)		10,715		10,574
Total	$	53,881	$	56,475	$	52,324

Summary of shares reserved of common stock for future issuance

As of January 1, 2022, the Company had reserved shares of common stock for future issuance as follows (in thousands):


2009 Stock Incentive Plan		2,946
2009 Employee Stock Purchase Plan		1,254
Total shares reserved		4,200

Income Taxes (Tables)

12 Months Ended

Jan. 01, 2022

Income Taxes

Schedule of income before income taxes

Loss from continuing operations before income taxes includes the following components (in thousands):


	Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Domestic	$	(29,112)	$	(58,104)	$	(38,448)
Foreign		(29,063)		(74,099)		(57,563)
	$	(58,175)	$	(132,203)	$	(96,011)

Schedule of provision (benefit) for income taxes

The provision (benefit) for income taxes consists of the following (in thousands):


	Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Current:
Domestic	$	(12,630)	$	(9,740)	$	(20,962)
Foreign		9,447		1,656		4,940
Total Current		(3,183)		(8,084)		(16,022)
Deferred:
Domestic		17,873		(4,031)		33,624
Foreign		(1,263)		(2,487)		(10,618)
Total Deferred		16,610		(6,518)		23,006
Provision (benefit) for income taxes	$	13,427	$	(14,602)	$	6,984

Schedule of reconciliation of federal statutory tax rate to effective tax rate

The reconciliation of the federal statutory tax rate to the Company’s effective tax rate is as follows:


	Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Federal statutory rate	21.0	%	21.0	%	21.0	%
Foreign tax rate benefit	(12.5)		(11.1)		(9.7)
Research and development tax credits	0.1		4.2		5.3
GILTI and Subpart F Income	(1.8)		0.2		0.2
(Nondeductible) nontaxable foreign items	(4.9)		0.1		(2.5)
Nondeductible officer compensation	(7.8)		(1.7)		(2.0)
Change in cost-sharing treatment of stock-based compensation	—		—		(19.2)
Excess tax benefit of stock-based compensation	2.8		0.4		0.8
Other tax effects of equity compensation	0.4		0.1		0.7
Change in prior period valuation allowance	(8.0)		(0.3)		(0.7)
(Nondeductible) nontaxable domestic items	(2.1)		(1.6)		(1.6)
Net operating loss not benefited	(9.5)		—		—
Other	(0.8)		(0.3)		0.4
Effective tax rate	(23.1)	%	11.0	%	(7.3)	%

Schedule of significant components of deferred taxes

Significant components of the Company’s deferred taxes as of January 1, 2022 and January 2, 2021 were as follows (in thousands):


	January 1,		January 2,
	2022		2021
Deferred tax assets:
Net operating loss carryforwards	$	5,803	$	6,839
Tax credit carryforwards		12,247		22,421
Intangible assets		8,687		9,802
Deferred income on shipments to distributors		4,588		3,099
Leases		6,033		6,335
Accrued liabilities		6,078		6,320
Other		4,180		5,513
		47,616		60,329
Less: Valuation allowance		(9,529)		(5,311)
		38,087		55,018
Deferred tax liabilities:
Intangible assets		14,479		16,758
Fixed assets		8,692		8,473
Leases		5,664		5,999
Debt		16,399		21,674
Unrealized gain on equity method investment		3,342		587
Prepaid expenses and other		6,049		4,332
		54,625		57,823

Net deferred tax assets (liabilities)	$	(16,538)	$	(2,805)

Schedule of valuation allowance


	Balance at		Additions
	Beginning of		Charged to				Balance at
	Period		Expenses		Deductions		End of Period
Year ended January 1, 2022	$	5,311	$	5,370	$	(1,152)	$	9,529

Year ended January 2, 2021	$	4,486	$	847	$	(22)	$	5,311

Year ended December 28, 2019	$	4,975	$	1,044	$	(1,533)	$	4,486

Schedule of activity related to gross unrecognized tax benefits

The following table summarizes the activity related to gross unrecognized tax benefits (in thousands):


	Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Beginning balance	$	2,853	$	2,276	$	2,036
Additions based on tax positions related to current year		830		577		436
Reductions based on tax positions related to prior years		(6)		—		(196)
Ending balance	$	3,677	$	2,853	$	2,276

Segment Information (Tables)

12 Months Ended

Jan. 01, 2022

Segment Information

Schedule of revenue attributed to geographic area based on shipped-to location

The following summarizes the Company’s revenue by geographic area (in thousands):


	Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
United States	$	97,471	$	59,458	$	63,404
China		311,513		232,772		203,468
Rest of world		311,876		218,698		206,913
Total	$	720,860	$	510,928	$	473,785

Schedule of property and equipment, net by geographic area

The following summarizes the Company’s property and equipment, net by geographic area (in thousands):


	January 1,		January 2,
	2022		2021
United States	$	121,990	$	125,310
Rest of world		24,526		10,493
Total	$	146,516	$	135,803

Description of Business (Details) $ in Millions	Apr. 22, 2021 USD ($)
Skyworks Solutions, Inc. \| Discontinued Operations \| Infrastructure and automotive business
Description of Business
Asset Purchase Agreement sale amount	$ 2,750

Significant Accounting Policies (Details)	12 Months Ended
Significant Accounting Policies (Details)	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Significant Accounting Policies
Length of fiscal year	364 days	371 days	364 days
Minimum
Significant Accounting Policies
Length of fiscal year	364 days
Maximum
Significant Accounting Policies
Length of fiscal year	371 days

Significant Accounting Policies - Property and Equipment, Long-Lived Assets and Leases (Details)	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Leases
Operating lease right-of-use assets, Statement of Financial Position	Other assets, net	Other assets, net
Operating lease liabilities, Statement of Financial Position	us-gaap:LiabilitiesOtherThanLongtermDebtNoncurrent, Other current liabilities	us-gaap:LiabilitiesOtherThanLongtermDebtNoncurrent, Other current liabilities
Minimum
Property and Equipment
Useful life, Property and Equipment	3 years
Long-Lived Assets
Useful life, Intangible assets	2 years
Maximum
Property and Equipment
Useful life, Property and Equipment	15 years
Long-Lived Assets
Useful life, Intangible assets	12 years
Buildings
Property and Equipment
Useful life, Property and Equipment	40 years
Leasehold interest in ground leases
Property and Equipment
Useful life, Property and Equipment	86 years

Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2022
Revenue Recognition
Product replacement warranty	1 year
0.625% Convertible Senior Notes (2025 Notes) \| ASU 2020-06 \| Pro Forma
Revenue Recognition
Increase in carrying value of convertible debt		$ 78.5

Discontinued Operations (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Jul. 26, 2021	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019	Apr. 22, 2021
Infrastructure and automotive business
Income from discontinued operations, net of income taxes
Gain on sale of discontinued operations		$ 346,900
Provision for income taxes		7,200
Discontinued Operations \| Transition Services Agreement
Continuing Involvement
TSA fees		4,200
Discontinued Operations \| Infrastructure and automotive business
Income from discontinued operations, net of income taxes
Revenues		233,918	$ 375,749	$ 363,770
Costs of revenues		95,457	143,068	133,700
Operating expenses		46,643	87,293	84,730
Operating income from discontinued operations		91,818	145,388	145,340
Gain on sale of discontinued operations		2,423,161
Income from discontinued operations before income taxes		2,514,979	145,388	145,340
Provision for income taxes		339,706	17,372	23,400
Income from discontinued operations		$ 2,175,273	$ 128,016	$ 121,940
Income from discontinued operations per share:
Basic		$ 50.79	$ 2.92	$ 2.81
Diluted		$ 49.09	$ 2.89	$ 2.75
Assets
Inventories			$ 18,801
Prepaid expenses and other current assets			2,204
Goodwill			255,543
Other assets			9,773
Total assets			286,321
Liabilities
Other current liabilities			433
Other non-current liabilities			451
Total liabilities			$ 884
Discontinued Operations \| Infrastructure and automotive business \| Minimum
Continuing Involvement
Term of continuing involvement	3 months
Discontinued Operations \| Infrastructure and automotive business \| Maximum
Continuing Involvement
Term of continuing involvement	18 months
Discontinued Operations \| Infrastructure and automotive business \| Skyworks Solutions, Inc.
Discontinued Operations
Asset Purchase Agreement sale amount					$ 2,750,000

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Earnings Per Share
Loss from continuing operations	$ (57,874)	$ (115,485)	$ (102,675)
Shares used in computing basic loss per share	42,830	43,775	43,346
Effect of dilutive securities:
Stock-based awards and convertible debt
Shares used in computing diluted loss per share	42,830	43,775	43,346
Loss per share:
Loss per share, Basic (in dollars per share)	$ (1.35)	$ (2.64)	$ (2.37)
Loss per share, Diluted (in dollars per share)	$ (1.35)	$ (2.64)	$ (2.37)
Shares excluded from calculation of diluted shares due to loss from continuing operations	1,500	600	900
Shares attributable to dilutive effect of conversion of debt securities	1,000	200	400

Fair Value of Financial Instruments - Summary of financial instruments (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Financial assets and liabilities measured at fair value on a recurring basis
Short-term investments	$ 964,582	$ 521,963
Recurring
Financial assets and liabilities measured at fair value on a recurring basis
Cash equivalents	852,242	95,520
Short-term investments	964,582	521,963
Other assets, net	4,980	5,340
Total assets at fair value	1,821,804	622,823
Recurring \| Money market funds
Financial assets and liabilities measured at fair value on a recurring basis
Cash equivalents	845,740	75,606
Recurring \| Corporate debt securities
Financial assets and liabilities measured at fair value on a recurring basis
Cash equivalents	3,552	14,995
Short-term investments	773,461	379,390
Recurring \| Government debt securities
Financial assets and liabilities measured at fair value on a recurring basis
Cash equivalents	2,950	4,919
Short-term investments	191,121	142,573
Recurring \| Auction rate securities
Financial assets and liabilities measured at fair value on a recurring basis
Other assets, net	4,980	5,340
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets and liabilities measured at fair value on a recurring basis
Cash equivalents	845,740	77,961
Short-term investments	71,509	38,461
Total assets at fair value	917,249	116,422
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Money market funds
Financial assets and liabilities measured at fair value on a recurring basis
Cash equivalents	845,740	75,606
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Government debt securities
Financial assets and liabilities measured at fair value on a recurring basis
Cash equivalents		2,355
Short-term investments	71,509	38,461
Recurring \| Significant Other Observable Inputs (Level 2)
Financial assets and liabilities measured at fair value on a recurring basis
Cash equivalents	6,502	17,559
Short-term investments	893,073	483,502
Total assets at fair value	899,575	501,061
Recurring \| Significant Other Observable Inputs (Level 2) \| Corporate debt securities
Financial assets and liabilities measured at fair value on a recurring basis
Cash equivalents	3,552	14,995
Short-term investments	773,461	379,390
Recurring \| Significant Other Observable Inputs (Level 2) \| Government debt securities
Financial assets and liabilities measured at fair value on a recurring basis
Cash equivalents	2,950	2,564
Short-term investments	119,612	104,112
Recurring \| Significant Unobservable Inputs (Level 3)
Financial assets and liabilities measured at fair value on a recurring basis
Other assets, net	4,980	5,340
Total assets at fair value	4,980	5,340
Recurring \| Significant Unobservable Inputs (Level 3) \| Auction rate securities
Financial assets and liabilities measured at fair value on a recurring basis
Other assets, net	$ 4,980	$ 5,340

Fair Value of Financial Instruments - Contractual maturities of investments (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Cost
Due in one year or less, Cost	$ 578,734
Due after one year through ten years, Cost	394,391
Due after ten years, Cost	6,000
Total Cost	979,125
Fair Value
Due in one year or less, Fair Value	578,666
Due after one year through ten years, Fair Value	392,417
Due after ten years, Fair Value	4,980
Total Fair Value	976,063
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months	545,874	$ 62,055
Fair value of available-for-sale securities, continuous loss position for twelve months or greater	5,306	5,340
Total fair value of available-for-sale securities, continuous loss position	551,180	67,395
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses	(2,201)	(79)
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses	(1,021)	(660)
Available-for-sale securities, total gross unrealized losses	(3,222)	(739)
Government debt securities
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months	126,957	10,146
Total fair value of available-for-sale securities, continuous loss position	126,957	10,146
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses	(750)	(5)
Available-for-sale securities, total gross unrealized losses	(750)	(5)
Corporate debt securities
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months	418,917	51,909
Fair value of available-for-sale securities, continuous loss position for twelve months or greater	326
Total fair value of available-for-sale securities, continuous loss position	419,243	51,909
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses	(1,451)	(74)
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses	(1)
Available-for-sale securities, total gross unrealized losses	(1,452)	(74)
Auction rate securities
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for twelve months or greater	4,980	5,340
Total fair value of available-for-sale securities, continuous loss position	4,980	5,340
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses	(1,020)	(660)
Available-for-sale securities, total gross unrealized losses	$ (1,020)	$ (660)

Fair Value of Financial Instruments - Auction rate securities (Details)	Jan. 01, 2022 USD ($) item Y	Jan. 02, 2021 USD ($)	Dec. 28, 2019 USD ($)
Quantitative information for Level 3 Fair Value Measurements Assets
Fair value balance at the end of the period	$ 4,980,000	$ 5,340,000	$ 5,647,000
Weighted Average \| Expected holding period \| Discounted cash flow
Quantitative information for Level 3 Fair Value Measurements Assets
Unobservable Input	10
Auction rate securities \| Significant Unobservable Inputs (Level 3) \| Weighted Average \| Estimated yield \| Discounted cash flow
Quantitative information for Level 3 Fair Value Measurements Assets
Unobservable Input \| item	0.0107
Auction rate securities \| Significant Unobservable Inputs (Level 3) \| Weighted Average \| Expected holding period \| Discounted cash flow
Quantitative information for Level 3 Fair Value Measurements Assets
Unobservable Input \| Y	10
Auction rate securities \| Significant Unobservable Inputs (Level 3) \| Weighted Average \| Estimated discount rate \| Discounted cash flow
Quantitative information for Level 3 Fair Value Measurements Assets
Unobservable Input \| item	0.0245
Auction rate securities \| Recurring \| Significant Unobservable Inputs (Level 3)
Quantitative information for Level 3 Fair Value Measurements Assets
Fair value balance at the end of the period	$ 4,980,000

Fair Value of Financial Instruments - Activity in Level 3 financial instruments (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Fair value assets reconciliation of changes
Balance at the beginning of the period	$ 5,340	$ 5,647
Loss included in other comprehensive income (loss)	(360)	(307)
Balance at the end of the period	4,980	$ 5,340
Significant Unobservable Inputs (Level 3) \| Recurring \| Auction rate securities
Fair value assets reconciliation of changes
Balance at the end of the period	$ 4,980

Fair Value of Financial Instruments - Fair values of other financial instruments (Details) - USD ($) $ in Millions	Jan. 01, 2022	Jan. 02, 2021	Jun. 01, 2020	Mar. 06, 2017
0.625% Convertible Senior Notes (2025 Notes)
Fair values of other financial instruments
Interest rate (as a percent)	0.625%		0.625%
Fair value of debt	$ 944.3	$ 671.4
1.375% Convertible Senior Notes (2022 Notes)
Fair values of other financial instruments
Interest rate (as a percent)				1.375%

Derivative Financial Instruments (Details) - Non-designated Hedges - Foreign currency forward contracts $ in Millions	Jan. 01, 2022 USD ($) contract
Singapore Dollars
Derivative Financial Instruments
Number of foreign currency forward contracts held \| contract	1
Derivative, notional amount \| $	$ 3.7
Indian Rupees
Derivative Financial Instruments
Number of foreign currency forward contracts held \| contract	2
Derivative, notional amount \| $	$ 7.4
Hungarian Forint
Derivative Financial Instruments
Number of foreign currency forward contracts held \| contract	1
Derivative, notional amount \| $	$ 2.1

Balance Sheet Details (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Inventories
Work in progress	$ 36,078	$ 41,747
Finished goods	13,229	6,114
Inventories	49,307	47,861
Prepaid Expenses and Other Current Assets
Distributor advances	13,397	51,190
Other	38,351	35,913
Prepaid Expenses and Other Current Assets	51,748	87,103
Other Assets, net
Equity-method investment	24,078	10,057
Other	53,761	66,618
Total Other Assets, net	77,839	76,675
Property and Equipment
Property and equipment, gross	267,619	245,028
Accumulated depreciation	(121,103)	(109,225)
Total Property and Equipment, net	146,516	135,803
Other Current Liabilities
Accrued compensation and benefits	42,008	46,633
Income taxes payable	73,771	5,797
Other	41,273	29,220
Total Other Current Liabilities	$ 157,052	81,650
China Walden Venture Investments III
Other Assets, net
Percentage of equity interest held	8.00%
Buildings and improvements
Property and Equipment
Property and equipment, gross	$ 122,163	118,331
Equipment
Property and Equipment
Property and equipment, gross	48,876	39,378
Computers and purchased software
Property and Equipment
Property and equipment, gross	48,519	46,174
Leasehold interest in ground leases
Property and Equipment
Property and equipment, gross	23,840	23,840
Leasehold improvements
Property and Equipment
Property and equipment, gross	13,427	8,684
Furniture and fixtures
Property and Equipment
Property and equipment, gross	$ 10,794	$ 8,621

Risks and Uncertainties (Details) - USD ($) $ in Thousands	12 Months Ended
Risks and Uncertainties (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Risks and Uncertainties
Equity method investments	$ 24,078	$ 10,057
Accounts receivable \| Customers \| Arrow Electronics
Risks and Uncertainties
Concentrations of credit risk (as a percent)	28.00%	28.00%
Accounts receivable \| Customers \| Edom Technology
Risks and Uncertainties
Concentrations of credit risk (as a percent)	18.00%	21.00%
Revenue \| Distributors \| Arrow Electronics
Risks and Uncertainties
Concentrations of credit risk (as a percent)	28.00%	28.00%	26.00%
Revenue \| Distributors \| Edom Technology
Risks and Uncertainties
Concentrations of credit risk (as a percent)	18.00%	19.00%	18.00%
Revenue \| Distributors \| Sekorm
Risks and Uncertainties
Concentrations of credit risk (as a percent)	12.00%	14.00%	10.00%

Acquisition (Details) - USD ($) $ in Thousands		12 Months Ended
Acquisition (Details) - USD ($) $ in Thousands	Apr. 28, 2020	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Purchase price allocation
Goodwill		$ 376,389	$ 376,389	$ 237,294
Weighted-Average Amortization Period (Years)		7 years
Customer relationships
Purchase price allocation
Weighted-Average Amortization Period (Years)		4 years
Trademarks
Purchase price allocation
Weighted-Average Amortization Period (Years)		5 years
Redpine Signals
Purchase price allocation
Intangible assets	$ 76,538
Accounts receivable	1,395
Inventory	4,375
Other current assets	1,251
Goodwill	233,530
Other non-current assets	673
Current liabilities	(856)
Non-current liabilities	(97)
Total purchase price	316,809
Redpine Signals \| Selling, general and administrative
Purchase price allocation
Acquisition-related costs			$ 1,500
Redpine Signals \| Developed technology
Purchase price allocation
Intangible assets	$ 61,674
Weighted-Average Amortization Period (Years)	8 years
Redpine Signals \| Customer relationships
Purchase price allocation
Intangible assets	$ 2,450
Weighted-Average Amortization Period (Years)	2 years
Redpine Signals \| Trademarks
Purchase price allocation
Intangible assets	$ 661
Weighted-Average Amortization Period (Years)	2 years
Redpine Signals \| In-process research and development
Purchase price allocation
Intangible assets	$ 11,753

Goodwill and Other Intangible Assets - Goodwill (Details) $ in Thousands	12 Months Ended
	Jan. 02, 2021 USD ($)
Goodwill
Beginning balance	$ 237,294
Additions due to business combinations	139,095
Ending balance	$ 376,389

Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands		12 Months Ended
	Apr. 28, 2020	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Subject to amortization:
Weighted-Average Amortization Period (Years)		7 years
Gross Amount		$ 277,013	$ 297,780
Accumulated Amortization		(158,035)	(146,050)
Total Other Intangible Assets
Gross Amount		277,013	309,533
Removal of fully amortized intangible assets			32,500
Amortization expense related to intangible assets		44,505	42,569	$ 37,734
Research and development
Total Other Intangible Assets
Amortization expense related to intangible assets		32,319	31,351	27,858
Selling, general and administrative
Total Other Intangible Assets
Amortization expense related to intangible assets		$ 12,186	11,218	$ 9,876
In-process research and development
Not subject to amortization:
Not subject to amortization			11,753
Core and developed technology
Subject to amortization:
Weighted-Average Amortization Period (Years)		8 years
Gross Amount		$ 238,092	243,739
Accumulated Amortization		$ (124,337)	(109,417)
Customer relationships
Subject to amortization:
Weighted-Average Amortization Period (Years)		4 years
Gross Amount		$ 27,450	41,270
Accumulated Amortization		$ (24,958)	(30,321)
Customer relationships \| Redpine Signals
Subject to amortization:
Weighted-Average Amortization Period (Years)	2 years
Trademarks
Subject to amortization:
Weighted-Average Amortization Period (Years)		5 years
Gross Amount		$ 11,471	12,771
Accumulated Amortization		$ (8,740)	$ (6,312)
Trademarks \| Redpine Signals
Subject to amortization:
Weighted-Average Amortization Period (Years)	2 years

Goodwill and Other Intangible Assets - Amortization Expense For Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Goodwill and Other Intangible Assets
Amortization expense of intangible asset	$ 44,505	$ 42,569	$ 37,734
Research and development
Goodwill and Other Intangible Assets
Amortization expense of intangible asset	32,319	31,351	27,858
Selling, general and administrative
Goodwill and Other Intangible Assets
Amortization expense of intangible asset	$ 12,186	$ 11,218	$ 9,876

Goodwill and Other Intangible Assets - Estimated aggregate amortization expense (Details) $ in Thousands	Jan. 01, 2022 USD ($)
Estimated aggregate amortization expense for intangible assets subject to amortization
2022	$ 34,071
2023	25,374
2024	23,034
2025	13,369
2026	$ 9,178

Debt - Convertible Senior Notes (Details) $ / shares in Units, $ in Thousands			12 Months Ended
	Jan. 06, 2021 USD ($) shares	Jun. 01, 2020 USD ($) D $ / shares	Jan. 01, 2022 USD ($)	Jan. 02, 2021 USD ($)	Mar. 06, 2017 USD ($)
Debt
Loss on debt extinguishment			$ (3,370)	$ (4,060)
0.625% Convertible Senior Notes (2025 Notes)
Debt
Principal amount		$ 535,000
Semi-annual interest rate		0.625%	0.625%
Conversion rate, shares per $1,000 principal		8.1980
Conversion, number of shares of common stock		4,400
Initial conversion price \| $ / shares		$ 121.98
Debt issuance costs		$ 10,400
0.625% Convertible Senior Notes (2025 Notes) \| Conversion of Notes, Holders
Debt
Number of trading days within 30 trading day period \| D		20
Number of consecutive trading days \| D		30
Stock price trigger per share \| $ / shares		$ 159.51
Stock price trigger, as a percentage of conversion price		130.00%
Number of consecutive business days after the 10 consecutive trading day period \| D		5
Number of consecutive trading days before the five consecutive business days \| D		10
Maximum threshold stock price, as a percentage of conversion price		98.00%
0.625% Convertible Senior Notes (2025 Notes) \| Conversion of Notes, Company
Debt
Stock price trigger, as a percentage of conversion price		130.00%
Number of consecutive business days after the 10 consecutive trading day period \| D		20
Number of consecutive trading days before the five consecutive business days \| D		30
1.375% Convertible Senior Notes (2022 Notes)
Debt
Principal amount					$ 400,000
Semi-annual interest rate					1.375%
1.375% Convertible Senior Notes (2022 Notes) \| Conversion of Notes, Holders
Debt
Principal amount of notes for conversion	$ 130,400
Cash paid upon conversion	$ 130,400
Number of shares issued in connection with conversion \| shares	528,022
Debt amount redeemed	$ 10,200
1.375% Convertible Senior Notes (2022 Notes) \| Conversion of Notes, Holders \| Interest expense
Debt
Loss on debt extinguishment			$ 3,400
1.375% Convertible Senior Notes (2022 Notes) \| Conversion of Notes, Company
Debt
Remaining principal amount	$ 140,600

Debt - Carrying amount of Notes (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2022	Jan. 02, 2021
0.625% Convertible Senior Notes (2025 Notes)
Equity component
Effective interest rate	5.336%
Amortization period of debt discount and debt issuance costs	3 years 6 months
0.625% Convertible Senior Notes (2025 Notes) \| ASU 2020-06 \| Pro Forma
Equity component
Increase in carrying value of convertible debt		$ 78,500
1.375% Convertible Senior Notes (2022 Notes)
Equity component
Effective interest rate	4.75%
Convertible Senior Notes
Liability component
Principal	$ 535,000		$ 675,567
Unamortized debt discount	(78,519)		(103,953)
Unamortized debt issuance costs	(5,882)		(8,189)
Net carrying amount	450,599		563,425
Equity component
Net carrying amount	$ 107,928		$ 108,438

Debt - Interest expense (Details) - USD ($) $ in Thousands	12 Months Ended
Debt - Interest expense (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Interest expense related to the notes
Interest Expense, Total	$ 31,033	$ 34,142	$ 20,233
Convertible Senior Notes
Interest expense related to the notes
Contractual interest expense	3,662	5,530	5,485
Amortization of debt discount	21,112	19,375	11,717
Amortization of debt issuance costs	1,655	2,058	1,768
Interest Expense, Total	$ 26,429	$ 26,963	$ 18,970

Debt - Credit Facility (Details) $ in Millions	12 Months Ended
Debt - Credit Facility (Details) $ in Millions	Jan. 01, 2022 USD ($)
Credit Facility \| Scenario: Company's option to increase borrowing capacity
Debt
Additional increase in borrowing capacity of the line of credit available at the entity's option	$ 250.0
Additional increase in borrowing capacity based on EBITDA (as a percent)	100.00%
Maximum secured leverage ratio	3.25
Credit Facility \| Scenario: Credit facility debt covenants
Debt
Maximum net leverage ratio	4.25
Maximum secured leverage ratio	3.50
Minimum interest coverage ratio	2.50
Revolving Credit Facility
Debt
Maximum borrowing capacity	$ 400.0
Revolving credit facility, other than swingline loans \| Federal Funds
Debt
Interest rate margin (as a percent)	0.50%
Revolving credit facility, other than swingline loans \| Eurodollar Rate
Debt
Interest rate margin (as a percent)	1.00%
Revolving credit facility, other than swingline loans \| Eurodollar Rate \| Minimum
Debt
Interest rate margin (as a percent)	1.00%
Revolving credit facility, other than swingline loans \| Eurodollar Rate \| Maximum
Debt
Interest rate margin (as a percent)	1.75%
Revolving credit facility, other than swingline loans \| Base Rate \| Minimum
Debt
Interest rate margin (as a percent)	0.00%
Revolving credit facility, other than swingline loans \| Base Rate \| Maximum
Debt
Interest rate margin (as a percent)	0.75%
Letter of Credit
Debt
Maximum borrowing capacity	$ 25.0
Swingline Loans
Debt
Maximum borrowing capacity	$ 10.0

Leases - Supplemental Lease Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Leases
Operating lease costs	$ 7,400	$ 5,600	$ 5,800
Balance Sheet Information
Operating lease right-of-use assets	27,896	27,392
Operating lease liabilities	29,171	29,017
Cash Flow Information
Cash paid for operating lease liabilities	7,138	5,541
Right-of-use assets obtained in exchange for operating lease obligations	$ 6,335	$ 16,711
Operating Lease Information
Weighted-average remaining lease term	5 years 10 months 24 days	6 years 4 months 24 days
Weighted-average discount rate	3.83%	4.24%

Leases - Maturities of operating lease liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Leases
2021	$ 7,136
2022	6,207
2023	5,188
2024	3,786
2025	2,623
Thereafter	7,403
Total lease payments	32,343
Less imputed interest	(3,172)
Total lease liabilities	$ 29,171	$ 29,017
Operating lease liabilities, Statement of Financial Position	us-gaap:LiabilitiesOtherThanLongtermDebtNoncurrent, Other current liabilities	us-gaap:LiabilitiesOtherThanLongtermDebtNoncurrent, Other current liabilities
Lease income from operating leases	$ 4,900	$ 3,200	$ 4,000

Share Repurchases (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Share Repurchase Programs
Value of shares repurchased and retired	$ 1,150,044	$ 16,287	$ 26,716
Common Stock
Share Repurchase Programs
Number of shares repurchased and retired	6,520	210	301
Number of shares repurchased	6,500	200	300
Value of shares repurchased	$ 1,150,000	$ 16,300	$ 26,700
Number of shares delivered	1,700
Accelerated Share Repurchase \| Common Stock
Share Repurchase Programs
Value of shares repurchased and retired	$ 400,000
Number of shares repurchased	1,700
Share Repurchases through Tender Offer \| Common Stock
Share Repurchase Programs
Value of shares repurchased and retired	$ 640,700
Repurchase price per share	$ 160.00
Number of shares repurchased	4,000
Share Repurchase Program \| Common Stock
Share Repurchase Programs
Number of shares repurchased and retired	800

Revenues (Details) - USD ($) $ in Thousands	12 Months Ended
Revenues (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Revenues
Revenue from performance obligations that were satisfied in previous reporting periods	$ 12,400	$ 11,500	$ 10,300
Revenues	720,860	510,928	473,785
Sales Channel, Distributors
Revenues
Revenues	584,010	416,606	361,645
Sales Channel, Direct customers
Revenues
Revenues	$ 136,850	$ 94,322	$ 112,140

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Stock-Based Compensation - Stock Incentive Plan (Details) - 2009 Stock Incentive Plan - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Stock-Based Compensation
Number of available shares deducted for each share granted	1
Minimum
Stock-Based Compensation
Award vesting period	3 years
Maximum
Stock-Based Compensation
Award vesting period	4 years
Selling, general and administrative
Stock-Based Compensation
Expense related to modification of equity awards	$ 7,800
Full value awards
Stock-Based Compensation
Number of equity awards granted	600,000	700,000	700,000
MSUs
Stock-Based Compensation
Award vesting period	3 years	3 years	3 years
Number of equity awards granted	0	82,000	93,000
Cash consideration based upon achievement of specified levels of market conditions	$ 0	$ 0	$ 0
PSUs
Stock-Based Compensation
Award vesting period	3 years	3 years	3 years
Number of equity awards granted	116,809	0	0
Cash consideration based upon achievement of specified levels of market conditions	$ 0	$ 0	$ 0
Stock options
Stock-Based Compensation
Stock options granted (in shares)	0	0	0
Minimum exercise price as percentage of fair market value of shares on the date of grant	100.00%	100.00%	100.00%

Stock-Based Compensation - 2009 Employee Stock Purchase Plan (Details) - 2009 Employee Stock Purchase Plan - $ / shares	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Stock-Based Compensation
Minimum exercise price as percentage of fair market value of shares on the date of grant	85.00%	85.00%	85.00%
Term of award	24 months	24 months	24 months
Shares issued	146,000	177,000	208,000
Weighted average fair value for purchase rights granted (in dollars per share)	$ 41.59

Stock-Based Compensation - Fair Value Assumptions (Details)	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
MSUs
Fair value assumptions
Expected volatility (as a percent)		36.00%	31.00%
Risk-free interest rate %		1.30%	2.40%
Expected term		2 years 10 months 24 days	2 years 10 months 24 days
Dividend yield (as a percent)		0.00%	0.00%
2009 Employee Stock Purchase Plan
Fair value assumptions
Expected volatility (as a percent)	42.00%	67.00%	37.00%
Risk-free interest rate %	0.05%	0.15%	1.60%
Expected term	9 months	9 months	9 months
Dividend yield (as a percent)	0.00%	0.00%	0.00%

Stock-Based Compensation - Stock options activity (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Number of options
Outstanding at the beginning of the year (in shares)	127
Outstanding at the end of the year (in shares)	118	127
Vested and expected to vest at the end of the year (in shares)	118
Exercisable at the end of the year (in shares)	118
Weighted-Average Exercise Price
Outstanding at the beginning of the year (in dollars per share)	$ 39.16
Outstanding at the end of the year (in dollars per share)	38.80	$ 39.16
Vested and expected to vest at the end of the year (in dollars per share)	38.80
Exercisable at the end of the year (in dollars per share)	$ 38.80
Weighted-Average Remaining Contractual Term (In years)
Outstanding at the end of the year	4 years 1 month 13 days	5 years 1 month 9 days
Vested and expected to vest at the end of the year	4 years 1 month 13 days
Exercisable at the end of the year	4 years 1 month 13 days
Aggregate Intrinsic Value
Outstanding at the end of the year (in dollars)	$ 19,825	$ 11,232
Vested and expected to vest at the end of the year (in dollars)	19,825
Options exercisable at the end of the year (in dollars)	$ 19,825

Stock-Based Compensation - RSAs and RSUs, PSUs and MSUs activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
RSAs and RSUs
Number of equity awards
Outstanding at the beginning the of year (in shares)	1,106
Granted (in shares)	452
Vested Earned or issued (in shares)	(502)
Cancelled or forfeited (in shares)	(225)
Outstanding at the end of the year (in shares)	831	1,106
Outstanding at the end of the year and expected to vest (in shares)	770
Weighted-Average Grant Date Fair Value
Outstanding at the beginning of the year (in dollars per share)	$ 97.07
Granted (in dollars per share)	135.28	$ 100.27	$ 89.35
Vested Earned or issued (in dollars per share)	95.04
Cancelled or forfeited (in dollars per share)	108.61
Outstanding at the end of the year (in dollars per share)	115.72	$ 97.07
Outstanding at the end of the year and expected to vest (in dollars per share)	$ 115.10
Weighted-Average Remaining Vesting Term
Outstanding at the end of year	1 year 1 month 9 days
Outstanding at the end of year and expected to vest	1 year 1 month 9 days
Aggregate Intrinsic Value
Outstanding at the end of the year (in dollars)	$ 171,476
Outstanding at the end of the year and expected to vest (in dollars)	$ 159,028
PSUs and MSUs
Number of equity awards
Outstanding at the beginning the of year (in shares)	233
Granted (in shares)	117
Vested Earned or issued (in shares)	(37)
Cancelled or forfeited (in shares)	(67)
Outstanding at the end of the year (in shares)	246	233
Outstanding at the end of the year and expected to vest (in shares)	224
Weighted-Average Grant Date Fair Value
Outstanding at the beginning of the year (in dollars per share)		$ 79.80
Granted (in dollars per share)	$ 145.11	$ 98.58	85.79
Vested Earned or issued (in dollars per share)	97.19
Cancelled or forfeited (in dollars per share)	89.45
Outstanding at the end of the year (in dollars per share)	105.58		$ 79.80
Outstanding at the end of the year and expected to vest (in dollars per share)	$ 102.01
Weighted-Average Remaining Vesting Term
Outstanding at the end of year	1 year 5 months 8 days
Outstanding at the end of year and expected to vest	1 year 5 months 8 days
Aggregate Intrinsic Value
Outstanding at the end of the year (in dollars)	$ 50,792
Outstanding at the end of the year and expected to vest (in dollars)	$ 46,297

Stock-Based Compensation - Grant Date Weighted Average Fair Value (Details) - $ / shares	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
RSAs and RSUs
Stock-Based Compensation
Equity award, weighted average fair value at grant date	$ 135.28	$ 100.27	$ 89.35
PSUs and MSUs
Stock-Based Compensation
Equity award, weighted average fair value at grant date	$ 145.11	$ 98.58	$ 85.79

Stock-Based Compensation - Stock-based payment and stock option values (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Stock-based payment and stock option values
Cash received for the issuance of common stock, net of shares withheld for taxes	$ 14,200
Payment of taxes withheld for vested stock awards	22,239	$ 18,124	$ 16,295
Stock options
Stock-based payment and stock option values
Intrinsic value of stock options exercised	986	558
RSUs
Stock-based payment and stock option values
Intrinsic value of stock-based payments that vested	76,654	48,534	57,693
Grant date fair value of stock-based payments that vested	47,726	37,477	40,434
PSUs and MSUs
Stock-based payment and stock option values
Intrinsic value of stock-based payments that vested	5,231	8,545	3,649
Grant date fair value of stock-based payments that vested	$ 3,562	$ 6,302	$ 1,461

Stock-Based Compensation - Stock-based compensation costs (Details) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Stock-Based Compensation
Stock-based compensation cost	$ 56,842	$ 49,454	$ 44,334
Income tax benefit	(954)	(3,694)	(2,584)
Share based compensation costs after tax	$ 53,881	56,475	52,324
Reserved shares of common stock for future issuance	4,200
Continuing operations
Stock-Based Compensation
Share based compensation costs after tax	$ 55,888	45,760	41,750
Discontinued operations
Stock-Based Compensation
Share based compensation costs after tax	(2,007)	10,715	10,574
Cost of revenues
Stock-Based Compensation
Stock-based compensation cost	964	970	790
Research and development
Stock-Based Compensation
Stock-based compensation cost	24,986	23,359	19,996
Selling, general and administrative
Stock-Based Compensation
Stock-based compensation cost	30,892	$ 25,125	$ 23,548
2009 Stock Incentive Plan
Stock-Based Compensation
Total unrecognized compensation costs related to awards	$ 74,200
Weighted-average period of recognition of unrecognized compensation costs	2 years 4 months 24 days
Reserved shares of common stock for future issuance	2,946
2009 Employee Stock Purchase Plan
Stock-Based Compensation
Reserved shares of common stock for future issuance	1,254

Employee Benefit Plan (Details) - USD ($) $ in Millions	12 Months Ended
Employee Benefit Plan (Details) - USD ($) $ in Millions	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Employee Benefit Plan
Contributions made to the 401(k) Plan	$ 3.5	$ 4.2	$ 3.9

Income Taxes - Income before income taxes and provision (benefit) for income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Income before income taxes
Domestic	$ (29,112)	$ (58,104)	$ (38,448)
Foreign	(29,063)	(74,099)	(57,563)
Loss from continuing operations before income taxes	(58,175)	(132,203)	(96,011)
Current:
Domestic	(12,630)	(9,740)	(20,962)
Foreign	9,447	1,656	4,940
Total Current	(3,183)	(8,084)	(16,022)
Deferred:
Domestic	17,873	(4,031)	33,624
Foreign	(1,263)	(2,487)	(10,618)
Total Deferred	16,610	(6,518)	23,006
Provision (benefit) for income taxes	$ 13,427	$ (14,602)	$ 6,984

Income Taxes - Tax rate reconciliation (Details)	12 Months Ended
Income Taxes - Tax rate reconciliation (Details)	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Reconciliation of federal statutory tax rate to effective tax rate
Federal statutory rate (as a percent)	21.00%	21.00%	21.00%
Foreign tax rate benefit (as a percent)	(12.50%)	(11.10%)	(9.70%)
Research and development tax credits (as a percent)	0.10%	4.20%	5.30%
GILTI and Subpart F Income	(1.80%)	0.20%	0.20%
(Nondeductible) nontaxable foreign items	(4.90%)	0.10%	(2.50%)
Nondeductible officer compensation	(7.80%)	(1.70%)	(2.00%)
Change in cost-sharing treatment of stock-based compensation			(19.20%)
Excess tax benefit of stock-based compensation	(2.80%)	(0.40%)	(0.80%)
Other tax effects of equity compensation	0.40%	0.10%	0.70%
Change in prior period valuation allowance	(8.00%)	(0.30%)	(0.70%)
(Nondeductible) nontaxable domestic items	(2.10%)	(1.60%)	(1.60%)
Net operating loss not benefited	(9.50%)
Other (as a percent)	(0.80%)	(0.30%)	0.40%
Effective Tax Rate (as a percent)	(23.10%)	11.00%	(7.30%)

Income Taxes - Deferred Income Taxes (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Deferred tax assets:
Net operating loss carryforwards	$ 5,803	$ 6,839
Tax credit carryforwards	12,247	22,421
Intangible assets	8,687	9,802
Deferred income on shipments to distributors	4,588	3,099
Leases	6,033	6,335
Accrued liabilities	6,078	6,320
Other	4,180	5,513
Deferred tax assets	47,616	60,329
Less: Valuation allowance	(9,529)	(5,311)
Deferred tax assets, net	38,087	55,018
Deferred tax liabilities:
Intangible assets	14,479	16,758
Fixed assets	8,692	8,473
Leases	5,664	5,999
Debt	16,399	21,674
Unrealized gain on equity method investment	3,342	587
Prepaid expenses and other	6,049	4,332
Deferred tax liabilities	54,625	57,823
Net deferred tax liabilities	$ (16,538)	$ (2,805)

Income Taxes - Valuation allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Changes in the valuation allowance for deferred tax assets
Balance at Beginning of Period	$ 5,311	$ 4,486	$ 4,975
Additions Charged to Expenses	5,370	847	1,044
Deductions	(1,152)	(22)	(1,533)
Balance at End of Period	9,529	$ 5,311	$ 4,486
Undistributed earnings of foreign subsidiaries	107,800
Provision for foreign withholding tax and state income taxes	$ 0

Income Taxes - Unrecognized tax benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Summary of the activity related to gross unrecognized tax benefits
Beginning balance	$ 2,853	$ 2,276	$ 2,036
Additions based on tax positions related to current year	830	577	436
Reductions based on tax positions related to prior years	(6)		(196)
Ending balance	3,677	2,853	2,276
Unrecognized tax benefits, other disclosures
Gross unrecognized tax benefits, inclusive of interest	3,900	3,000	2,400
Gross unrecognized tax benefits which would affect the effective tax rate if recognized	$ 3,900	$ 2,100	$ 1,900

Income Taxes - Additional Information (Details) kr in Millions, $ in Millions		12 Months Ended
	Dec. 22, 2017	Jan. 01, 2022 USD ($)	Jan. 01, 2022 NOK (kr)
Income Taxes
Period for payment of transition tax	8 years
Total transition tax obligation		$ 21.4
Reasonably possible amount of decrease in gross unrecognized tax benefits over the next 12 months		0.5
Infrastructure and automotive business
Income Taxes
Gain from the divestiture of business		346.9
Tax benefit associated with discontinued operations		7.2
Other current liabilities
Income Taxes
Income taxes payable		74.9
Transition tax obligation, current		2.4
Other non-current liabilities
Income Taxes
Transition tax obligation, non-current		19.0
Norwegian Tax Administration \| 2013
Income Taxes
Estimate of additional income tax expense		16.0	kr 141.3
Federal
Income Taxes
Operating Loss Carryforwards		18.4
Federal \| Research and development tax credit
Income Taxes
Tax credit carryforwards		1.8
State
Income Taxes
Operating Loss Carryforwards		30.6
State \| Tentative minimum tax credit
Income Taxes
Tax credit carryforwards		0.5
State \| Research and development tax credit
Income Taxes
Tax credit carryforwards		$ 11.9

Segment Information (Details) $ in Thousands	12 Months Ended
Segment Information (Details) $ in Thousands	Jan. 01, 2022 USD ($) segment	Jan. 02, 2021 USD ($)	Dec. 28, 2019 USD ($)
Segment Information
Number of operating segments \| segment	1
Revenues	$ 720,860	$ 510,928	$ 473,785
Property and equipment, net	146,516	135,803
United States
Segment Information
Revenues	97,471	59,458	63,404
Property and equipment, net	121,990	125,310
China
Segment Information
Revenues	311,513	232,772	203,468
Rest of world
Segment Information
Revenues	311,876	218,698	$ 206,913
Property and equipment, net	$ 24,526	$ 10,493

- Definition

+ References

+ Details