0001104659-24-025535 | 10-K | XBRL Viewer

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Stock-Based Compensation - Summary of plans (Details)	12 Months Ended
Stock-Based Compensation - Summary of plans (Details)	Dec. 30, 2023 shares
2009 Stock Incentive Plan
Stock-Based Compensation
Number of available shares deducted for each share granted	1
2009 Stock Incentive Plan \| Minimum
Stock-Based Compensation
Award vesting period	3 years
2009 Stock Incentive Plan \| Maximum
Stock-Based Compensation
Award vesting period	4 years
2009 Employee Stock Purchase Plan
Stock-Based Compensation
Percentage of purchase price of shares on fair value	85.00%
2009 Employee Stock Purchase Plan \| Maximum
Stock-Based Compensation
Term of award	27 months

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

Discontinued Operations (Tables)

12 Months Ended

Dec. 30, 2023

Discontinued Operations.

Schedule of financial results, assets and liabilities from discontinued operations

The following table presents the financial results of the infrastructure and automotive business (the “discontinued operations”) in the Company’s Consolidated Statements of Income for the year ended January 1, 2022 (in thousands, except per share data):


Revenues	$	233,918
Costs of revenues		95,457
Operating expenses		46,643
Operating income from discontinued operations		91,818
Gain on sale of discontinued operations		2,423,161
Income from discontinued operations before income taxes		2,514,979
Provision for income taxes		339,706
Income from discontinued operations	$	2,175,273

Income from discontinued operations per share:
Basic	$	50.79
Diluted	$	49.09

- 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.

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+ Details

Earnings (Loss) Per Share

12 Months Ended

Dec. 30, 2023

Earnings (Loss) Per Share

Earnings (Loss) Per Share

4. Earnings (Loss) Per Share

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


	Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
Income (loss) from continuing operations	$	(34,516)	$	91,402	$	(57,874)

Shares used in computing basic earnings (loss) per share		31,804		35,086		42,830

Effect of dilutive securities:
Stock-based awards and convertible debt		—		956		—
Shares used in computing diluted earnings (loss) per share		31,804		36,042		42,830

Earnings (loss) per share:
Basic	$	(1.09)	$	2.61	$	(1.35)
Diluted	$	(1.09)	$	2.54	$	(1.35)

In periods where the Company reports income from continuing operations, diluted earnings per share was computed using the treasury stock method for stock-based awards and the if-converted method for convertible debt. Diluted shares for fiscal 2023 excluded 0.9 million shares and fiscal 2021 excluded 1.5 million shares due to the Company’s loss from continuing operations for the periods.

The Company irrevocably elected to settle the principal amount of its 0.625% convertible senior notes due 2025 (the “2025 Notes”) in cash and intended to settle any excess value in shares in the event of a conversion. In June 2023, the Company paid $535.0 million in cash and issued 0.9 million shares of common stock in connection with the conversions and redemptions of the 2025 Notes. For fiscal 2022, approximately 0.6 million shares were included in the denominator for the calculation of diluted earnings per share (related to the not yet converted or redeemed 2025 Notes.) See Note 10, Debt, to the Consolidated Financial Statements for additional information. Securities that were anti-dilutive were insignificant and were excluded from the computation of diluted earnings per share in all periods presented.

Leases - Supplemental Lease Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2023	Dec. 31, 2022	Jan. 01, 2022
Leases
Operating lease costs	$ 7,800	$ 7,300	$ 7,400
Balance Sheet Information
Operating lease right-of-use assets	$ 26,740	$ 24,717
Operating lease right-of-use assets, Statement of Financial Position	Other assets, net	Other assets, net
Operating lease liabilities, Current	$ 7,185	$ 6,281
Operating lease liabilities, Current, Statement of Financial Position	Other current liabilities	Other current liabilities
Operating lease liabilities, Non current	$ 19,830	$ 18,009
Operating lease liabilities, Noncurrent, Statement of Financial Position	Other non-current liabilities	Other non-current liabilities
Cash Flow Information
Cash paid for operating lease liabilities	$ 7,487	$ 7,518
Right-of-use assets obtained in exchange for operating lease obligations	$ 534	$ 3,198
Operating Lease Information
Weighted-average remaining lease term	5 years 4 months 24 days	5 years 1 month 6 days
Weighted-average discount rate	4.72%	3.96%

Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Dec. 30, 2023	Feb. 12, 2024	Jul. 01, 2023
Document and Entity Information
Entity Registrant Name	SILICON LABORATORIES INC.
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 30, 2023
Document Transition Report	false
Entity File Number	000-29823
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	74-2793174
Entity Address, Address Line One	400 West Cesar Chavez
Entity Address, City or Town	Austin
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78701
City Area Code	512
Local Phone Number	416-8500
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	SLAB
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 4.9
Entity Common Stock, Shares Outstanding		31,904,670
Entity Central Index Key	0001038074
Current Fiscal Year End Date	--12-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Amendment Flag	false
Auditor Firm ID	42
Auditor Name	Ernst & Young LLP
Auditor Location	Austin, Texas

Significant Accounting Policies - Property and Equipment, Long-Lived Assets and Leases (Details)	Dec. 30, 2023	Dec. 31, 2022
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	5 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

Debt - Credit Facility (Details) $ in Millions	12 Months Ended
Debt - Credit Facility (Details) $ in Millions	Dec. 30, 2023 USD ($)
Debt
Cash and cash equivalents used in net leverage ratio	$ 750.0
Credit Facility
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 net leverage ratio	4.25
Maximum secured leverage ratio	3.50
Minimum interest coverage ratio	2.50
Amount outstanding	$ 45.0
Weighted average interest rate	6.46%
Revolving Credit Facility
Debt
Maximum borrowing capacity	$ 400.0
Revolving credit facility, other than swingline loans \| Federal Funds Rate
Debt
Interest rate margin (as a percent)	0.50%
Revolving credit facility, other than swingline loans \| SOFR
Debt
Interest rate margin (as a percent)	1.00%
Letter of Credit
Debt
Maximum borrowing capacity	$ 25.0
Swingline Loans
Debt
Maximum borrowing capacity	$ 10.0
Swingline Loans \| Base Rate \| Minimum
Debt
Interest rate margin (as a percent)	0.00%
Swingline Loans \| Base Rate \| Maximum
Debt
Interest rate margin (as a percent)	0.75%
Swingline Loans \| SOFR \| Minimum
Debt
Interest rate margin (as a percent)	1.00%
Swingline Loans \| SOFR \| Maximum
Debt
Interest rate margin (as a percent)	1.75%

Stock-Based Compensation - 2009 Plan (Details) - 2009 Stock Incentive Plan - USD ($)	12 Months Ended
	Dec. 30, 2023	Dec. 31, 2022	Jan. 01, 2022
Full value awards
Stock-Based Compensation
Stock options granted (in shares)	500,000	500,000	600,000
MSUs
Stock-Based Compensation
Cash consideration based upon achievement of specified levels of market conditions	$ 0
Award vesting period	3 years
Number of equity awards granted	0	0	0
PSUs
Stock-Based Compensation
Cash consideration based upon achievement of specified levels of market conditions	$ 0
Award vesting period	3 years
Number of equity awards granted	85,554,000	52,078,000	116,809,000

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Significant Accounting Policies - Basis of Presentation and Principles of Consolidation (Details)	12 Months Ended
	Dec. 30, 2023	Jan. 01, 2022
Significant Accounting Policies
Length of fiscal year		364 days
Minimum
Significant Accounting Policies
Length of fiscal year	364 days
Maximum
Significant Accounting Policies
Length of fiscal year	371 days

Stock-Based Compensation - Accounting for Stock Based Compensation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2023	Dec. 31, 2022	Jan. 01, 2022
Stock-Based Compensation
Stock-based compensation cost	$ 48,208	$ 60,510	$ 56,842
Income tax benefit	(6,230)	(5,980)	(954)
Share based compensation costs after tax	41,978	54,530	53,881
Total unrecognized compensation costs related to awards	$ 88,700
Weighted-average period of recognition of unrecognized compensation costs	2 years
Continuing operations
Stock-Based Compensation
Share based compensation costs after tax	$ 41,978	54,530	55,888
Discontinued operations
Stock-Based Compensation
Share based compensation costs after tax			(2,007)
Cost of revenues
Stock-Based Compensation
Stock-based compensation cost	906	1,152	964
Research and development
Stock-Based Compensation
Stock-based compensation cost	35,491	32,860	24,986
Selling, general and administrative
Stock-Based Compensation
Stock-based compensation cost	11,812	$ 26,498	30,892
Expenses attributable to modification of equity awards	$ 600		$ 7,800

Derivative Financial Instruments

12 Months Ended

Dec. 30, 2023

Derivative Financial Instruments

Derivative Financial Instruments

6. Derivative Financial Instruments

Cash Flow Hedges

Foreign Currency Forward Contracts

The Company may use foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on operating expenses denominated in currencies other than the U.S. dollar. Changes in the fair value of the contracts are recorded in accumulated other comprehensive loss in the Consolidated Balance Sheet and subsequently reclassified into earnings in the period during which the hedged transaction is recognized. The reclassified amount is reported in the same financial statement line item as the hedged item. If the foreign currency forward contracts are terminated or can no longer qualify as hedging instruments prior to maturity, the fair value of the contracts recorded in accumulated other comprehensive loss may be recognized in the Consolidated Statement of Operations based on an assessment of the contracts at the time of termination. As of December 30, 2023, the contracts had maturities of one to three months and an aggregate notional value of $6.8 million. Gains and losses expected to be reclassified into earnings in the next twelve months were not material. The fair value of the contracts, contract gains or losses recognized in other comprehensive income (loss) and amounts reclassified from accumulated other comprehensive loss into earnings were not material for any of the periods presented.

Non-designated Hedges

Foreign Currency Forward Contracts

The Company may use 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 Operations in the same period as the remeasurement loss and gain of the related foreign currency denominated asset or liability. The Company does not apply hedge accounting to these foreign currency forward contracts. As of December 30, 2023, the Company held no such foreign currency forward contracts. The fair value of the foreign contracts and contract gains and losses recognized in income were not material for any of the periods presented.

Stock-Based Compensation - Shares reserved for future issuance (Details) shares in Thousands	Dec. 30, 2023 shares
Stock-Based Compensation
Common stock shares reserved for future issuance	3,087
2009 Plan
Stock-Based Compensation
Common stock shares reserved for future issuance	2,096
2009 ESPP
Stock-Based Compensation
Common stock shares reserved for future issuance	991

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Other Intangible Assets, Net

12 Months Ended

Dec. 30, 2023

Other Intangible Assets, Net

Other Intangible Assets, Net

9. Other Intangible Assets, Net

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


	Weighted-Average
	Amortization	December 30, 2023				December 31, 2022
	Period	Gross		Accumulated		Gross		Accumulated
	(Years)	Amount		Amortization		Amount		Amortization

Developed technology	8	$	211,217	$	(151,722)	$	211,217	$	(126,424)
Trademarks	12		910		(872)		910		(796)
Total intangible assets	8	$	212,127	$	(152,594)	$	212,127	$	(127,220)

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


	Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
Research and development	$	25,298	$	28,962	$	32,319
Selling, general and administrative		76		5,109		12,186
	$	25,374	$	34,071	$	44,505

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
2024	$	23,034
2025		13,369
2026		9,178
2027		9,178
2028		4,039

Discontinued Operations

12 Months Ended

Dec. 30, 2023

Discontinued Operations.

Discontinued Operations

3. Discontinued Operations

On July 26, 2021, the Company sold its infrastructure and automotive business to Skyworks Solutions, Inc. for $2.75 billion in cash. 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.


Revenues	$	233,918
Costs of revenues		95,457
Operating expenses		46,643
Operating income from discontinued operations		91,818
Gain on sale of discontinued operations		2,423,161
Income from discontinued operations before income taxes		2,514,979
Provision for income taxes		339,706
Income from discontinued operations	$	2,175,273

Income from discontinued operations per share:
Basic	$	50.79
Diluted	$	49.09

Employee Benefit Plan

12 Months Ended

Dec. 30, 2023

Employee Benefit Plan

Employee Benefit Plan

16. 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 $3.3 million, $3.2 million and $3.5 million to the 401(k) Plan during fiscal 2023, 2022 and 2021, respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 70
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480794/715-70-50-1

Reference 2: http://www.xbrl.org/2003/role/exampleRef
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-Paragraph 17
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-URI https://asc.fasb.org//1943274/2147480482/715-20-55-17

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480126/715-20-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480266/715-60-50-3

+ Details

Other Intangible Assets, Net - Amortization Expense For Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2023	Dec. 31, 2022	Jan. 01, 2022
Other Intangible Assets, Net
Intangible asset amortization expense	$ 25,374	$ 34,071	$ 44,505
Research and development
Other Intangible Assets, Net
Intangible asset amortization expense	25,298	28,962	32,319
Selling, general and administrative
Other Intangible Assets, Net
Intangible asset amortization expense	$ 76	$ 5,109	$ 12,186

Segment Information (Tables)

12 Months Ended

Dec. 30, 2023

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
	December 30,		December 31,		January 1,
	2023		2022		2022
United States	$	92,550	$	176,379	$	97,471
China		219,741		334,821		311,513
Taiwan		90,382		105,602		68,196
Rest of world		379,585		407,304		243,680
Total	$	782,258	$	1,024,106	$	720,860

Schedule of property and equipment, net by geographic area

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


	December 30,		December 31,
	2023		2022
United States	$	116,357	$	121,031
Rest of world		29,533		30,985
Total	$	145,890	$	152,016

Revenues (Details) - USD ($) $ in Thousands	12 Months Ended
Revenues (Details) - USD ($) $ in Thousands	Dec. 30, 2023	Dec. 31, 2022	Jan. 01, 2022
Revenues
Revenues	$ 782,258	$ 1,024,106	$ 720,860
Revenue from performance obligations that were satisfied in previous reporting periods		30,100	12,400
Distributors
Revenues
Revenues	611,332	829,373	584,010
Direct customers
Revenues
Revenues	170,926	194,733	136,850
Industrial & Commercial
Revenues
Revenues	496,578	573,725	377,401
Home & Life
Revenues
Revenues	$ 285,680	$ 450,381	$ 343,459

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- 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
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479941/924-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147479806/606-10-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-4

+ Details

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2023	Dec. 31, 2022	Jan. 01, 2022
Consolidated Statements of Comprehensive Income (Loss)
Net income (loss)	$ (34,516)	$ 91,402	$ 2,117,399
Net changes to available-for-sale securities:
Unrealized gains (losses) arising during the period	7,709	(12,562)	(4,338)
Reclassification for (gains) losses included in net income (loss)	4,596	2,088	(335)
Net changes to cash flow hedges:
Unrealized gains (losses) arising during the period	210	(4,110)	(598)
Reclassification for (gains) losses included in net income (loss)	(250)	4,110	(87)
Other comprehensive income (loss), before tax	12,265	(10,474)	(5,358)
Provision (benefit) for income taxes	2,602	(2,205)	(1,125)
Other comprehensive income (loss)	9,663	(8,269)	(4,233)
Comprehensive income (loss)	$ (24,853)	$ 83,133	$ 2,113,166

Risks and Uncertainties (Tables)

12 Months Ended

Dec. 30, 2023

Accounts receivable

Schedule of concentration risk


	December 30,		December 31,
	2023		2022
Arrow Electronics	*		29	%
Other	13	%	*

Less than 10% of accounts receivable

Revenue

Schedule of concentration risk


	Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
Arrow Electronics	34	%	33	%	28	%
Edom Technology	15	%	17	%	18	%
Sekorm	*		*		12	%

Less than 10% of revenue

Description of Business (Details) $ in Millions	Jul. 26, 2021 USD ($)
Discontinued Operations, Disposed of by Sale \| Infrastructure and automotive business
Description of Business
Asset purchase agreement sale amount	$ 2,750

Income Taxes - Deferred Income Taxes (Details) - USD ($) $ in Thousands	Dec. 30, 2023	Dec. 31, 2022
Deferred tax assets:
Capitalized research and development	$ 27,402	$ 15,188
Tax credit carryforwards	13,303	13,334
Intangible assets	7,188	7,938
Net operating loss carryforwards	6,911	4,965
Leases	6,584	5,517
Deferred income on shipments to distributors	6,465	6,726
Accrued liabilities	2,859	6,809
Other	3,072	7,118
Deferred tax assets	73,784	67,595
Less: Valuation allowance	(10,530)	(9,409)
Deferred tax assets, net	63,254	58,186
Deferred tax liabilities:
Intangible assets	13,916	13,789
Fixed assets	8,353	8,518
Leases	6,238	5,189
Prepaid expenses and other	4,534	5,637
Unrealized gain on equity method investment		4,120
Deferred tax liabilities	33,041	37,253
Net deferred tax assets (liabilities)	$ 30,213	$ 20,933

Fair Value of Financial Instruments - Unrealized Gains and Losses (Details) - USD ($) $ in Thousands	Dec. 30, 2023	Dec. 31, 2022
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale investments, continuous loss position for less than twelve months	$ 40,704	$ 383,736
Fair value of available-for-sale investments, continuous loss position for twelve months or greater	126,882	285,676
Total fair value of available-for-sale investments, continuous loss position	167,586	669,412
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale investments, continuous loss position for less than 12 months, gross unrealized losses	(128)	(5,923)
Available-for-sale investments, continuous loss position for 12 months or greater, gross unrealized losses	(1,307)	(7,631)
Available-for-sale investments, total gross unrealized losses	(1,435)	(13,554)
Corporate debt securities
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale investments, continuous loss position for less than twelve months	12,449	307,085
Fair value of available-for-sale investments, continuous loss position for twelve months or greater	95,760	185,467
Total fair value of available-for-sale investments, continuous loss position	108,209	492,552
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale investments, continuous loss position for less than 12 months, gross unrealized losses	(13)	(5,297)
Available-for-sale investments, continuous loss position for 12 months or greater, gross unrealized losses	(867)	(4,090)
Available-for-sale investments, total gross unrealized losses	(880)	(9,387)
Government debt securities
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale investments, continuous loss position for less than twelve months	28,255	76,651
Fair value of available-for-sale investments, continuous loss position for twelve months or greater	31,122	100,209
Total fair value of available-for-sale investments, continuous loss position	59,377	176,860
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale investments, continuous loss position for less than 12 months, gross unrealized losses	(115)	(626)
Available-for-sale investments, continuous loss position for 12 months or greater, gross unrealized losses	(440)	(3,541)
Available-for-sale investments, total gross unrealized losses	$ (555)	$ (4,167)

Stock-Based Compensation - Summary of stock-based payment and stock option values (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2023	Dec. 31, 2022	Jan. 01, 2022
Employee Stock Option [Member]
Stock-Based Compensation
Intrinsic value of stock options exercised	$ 2,162		$ 986
RSUs
Stock-Based Compensation
Intrinsic value of equity awards that vested	61,371	$ 57,621	76,654
Grant date fair value of equity awards that vested	53,088	$ 41,610	47,726
PSUs and MSUs
Stock-Based Compensation
Intrinsic value of equity awards that vested	5,163		5,231
Grant date fair value of equity awards that vested	$ 3,037		$ 3,562

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Description of Business

12 Months Ended

Dec. 30, 2023

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 help customers build 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 July 26, 2021, the Company sold its infrastructure and automotive business to Skyworks Solutions, Inc. for $2.75 billion in cash. The financial results of the infrastructure and automotive business for the fiscal year ended January 1, 2022 have been presented as discontinued operations in the Consolidated Financial Statements. See Note 3, Discontinued Operations, for additional information.

Other Intangible Assets, Net - Gross carrying amount and accumulated amortization (Details) - USD ($) $ in Thousands	Dec. 30, 2023	Dec. 31, 2022
Other Intangible Assets, Net
Gross Amount	$ 212,127	$ 212,127
Accumulated Amortization	$ (152,594)	(127,220)
Weighted Average
Other Intangible Assets, Net
Weighted-Average Amortization Period (Years)	8 years
Developed technology
Other Intangible Assets, Net
Gross Amount	$ 211,217	211,217
Accumulated Amortization	$ (151,722)	(126,424)
Developed technology \| Weighted Average
Other Intangible Assets, Net
Weighted-Average Amortization Period (Years)	8 years
Trademarks
Other Intangible Assets, Net
Gross Amount	$ 910	910
Accumulated Amortization	$ (872)	$ (796)
Trademarks \| Weighted Average
Other Intangible Assets, Net
Weighted-Average Amortization Period (Years)	12 years

Leases

12 Months Ended

Dec. 30, 2023

Leases

Leases

11. 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 $7.8 million, $7.3 million and $7.4 million during fiscal 2023, 2022 and 2021, respectively.

Supplemental Lease Information


	Consolidated Balance	December 30,		December 31,
Balance Sheet Information (in thousands)	Sheet Classification	2023		2022
Operating lease right-of-use assets	Other assets, net	$	26,740	$	24,717
Operating lease liabilities	Other current liabilities	$	7,185	$	6,281
Operating lease liabilities	Other non-current liabilities	$	19,830	$	18,009


	Year Ended
	December 30,		December 31,
Cash Flow Information (in thousands)	2023		2022
Cash paid for operating lease liabilities	$	7,487	$	7,518
Right-of-use assets obtained in exchange for operating lease obligations	$	534	$	3,198


	December 30,		December 31,
Operating Lease Information	2023		2022
Weighted-average remaining lease term	5.4 years		5.1 years
Weighted-average discount rate	4.72	%	3.96	%

11. Leases (Continued)

The maturities of operating lease liabilities as of December 30, 2023 were as follows (in thousands):


Fiscal Year
2024	$	7,772
2025		6,251
2026		4,559
2027		3,737
2028		2,676
Thereafter		6,219
Total lease payments		31,214
Less imputed interest		(4,199)
Total lease liabilities	$	27,015

Lease income

The Company leases a portion of its headquarter facilities to other tenants. Lease income from operating leases was $3.1 million, $6.2 million and $4.9 million during fiscal 2023, 2022 and 2021, respectively.

Maturities of lease income as of December 30, 2023 were as follows (in thousands):


Fiscal Year
2024	$	2,481
2025		1,919
2026		1,322
2027		439
2028		452
Thereafter		233

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 30, 2023	Dec. 31, 2022	Jan. 01, 2022
Consolidated Statements of Operations
Revenues	$ 782,258	$ 1,024,106	$ 720,860
Cost of revenues	321,672	381,549	295,468
Gross profit	460,586	642,557	425,392
Operating expenses:
Research and development	337,744	332,326	273,208
Selling, general and administrative	146,996	190,971	185,022
Operating expenses	484,740	523,297	458,230
Operating income (loss)	(24,154)	119,260	(32,838)
Other income (expense):
Interest income and other, net	19,165	13,915	5,696
Interest expense	(5,554)	(6,723)	(31,033)
Income (loss) from continuing operations before income taxes	(10,543)	126,452	(58,175)
Provision for income taxes	7,943	38,450	13,427
Equity-method earnings (loss)	(16,030)	3,400	13,728
Income (loss) from continuing operations	(34,516)	91,402	(57,874)
Income from discontinued operations, net of income taxes	0	0	2,175,273
Net income (loss)	$ (34,516)	$ 91,402	$ 2,117,399
Basic earnings (loss) per share:
Continuing operations	$ (1.09)	$ 2.61	$ (1.35)
Basic earnings (in dollars per share)	(1.09)	2.61	49.44
Diluted earnings (loss) per share:
Continuing operations	(1.09)	2.54	(1.35)
Diluted earnings (in dollars per share)	$ (1.09)	$ 2.54	$ 47.78
Weighted-average common shares outstanding:
Weighted-average common shares outstanding Basic (in shares)	31,804	35,086	42,830
Weighted-average common shares outstanding Diluted (in shares)	31,804	36,042	44,315

Leases (Tables)

12 Months Ended

Dec. 30, 2023

Leases

Schedule of supplemental lease information


	Consolidated Balance	December 30,		December 31,
Balance Sheet Information (in thousands)	Sheet Classification	2023		2022
Operating lease right-of-use assets	Other assets, net	$	26,740	$	24,717
Operating lease liabilities	Other current liabilities	$	7,185	$	6,281
Operating lease liabilities	Other non-current liabilities	$	19,830	$	18,009


	Year Ended
	December 30,		December 31,
Cash Flow Information (in thousands)	2023		2022
Cash paid for operating lease liabilities	$	7,487	$	7,518
Right-of-use assets obtained in exchange for operating lease obligations	$	534	$	3,198


	December 30,		December 31,
Operating Lease Information	2023		2022
Weighted-average remaining lease term	5.4 years		5.1 years
Weighted-average discount rate	4.72	%	3.96	%

Schedule of maturities of operating lease liabilities

The maturities of operating lease liabilities as of December 30, 2023 were as follows (in thousands):


Fiscal Year
2024	$	7,772
2025		6,251
2026		4,559
2027		3,737
2028		2,676
Thereafter		6,219
Total lease payments		31,214
Less imputed interest		(4,199)
Total lease liabilities	$	27,015

Schedule of maturities of lease income

Maturities of lease income as of December 30, 2023 were as follows (in thousands):


Fiscal Year
2024	$	2,481
2025		1,919
2026		1,322
2027		439
2028		452
Thereafter		233

Supplemental Information

12 Months Ended

Dec. 30, 2023

Supplemental Information

Supplemental Information

7. Supplemental Information

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

Inventories


	December 30,		December 31,
	2023		2022
Work in progress	$	173,802	$	75,112
Finished goods		20,493		25,305
	$	194,295	$	100,417

7. Supplemental Information (Continued)

Property and Equipment


	December 30,		December 31,
	2023		2022
Buildings and improvements	$	130,482	$	125,471
Equipment		68,703		62,304
Computers and purchased software		51,755		55,065
Leasehold interest in ground leases		23,840		23,840
Leasehold improvements		14,971		14,209
Furniture and fixtures		9,574		9,909
		299,325		290,798
Accumulated depreciation		(153,435)		(138,782)
	$	145,890	$	152,016

Other Assets, net


	December 30,		December 31,
	2023		2022
Equity-method investment ⁽¹⁾	$	—	$	27,478
Other		123,313		67,275
	$	123,313	$	94,753

(1)

At December 31, 2022, the Company held an 8% equity interest in Walden Technology Ventures III, a limited partnership. In fiscal 2023, the Company sold its ownership in this investment and recognized the net loss of $15.2 million in the Consolidated Statement of Operations.

Other Current Liabilities


	December 30,		December 31,
	2023		2022
Accrued compensation and benefits	$	16,891	$	43,736
Income taxes payable		6,133		11,472
Other		35,931		33,928
	$	58,955	$	89,136

Other Non-Current Liabilities


	December 30,		December 31,
	2023		2022
Lease liability – non-current	$	19,830	$	18,009
Other		50,974		31,062
	$	70,804	$	49,071

Debt

12 Months Ended

Dec. 30, 2023

Debt

Debt

10. Debt

0.625% Convertible Senior Notes

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

The 2025 Notes were 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 was equivalent to a conversion price of $121.98 per share. The conversion rate was subject to adjustment under certain circumstances. Holders may have converted 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 2025 Notes are called for redemption; or at any time after March 15, 2025. The Company may have redeemed 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.

10. Debt (Continued)

The principal balance of the 2025 Notes was initially separated into liability and equity components, and recorded at fair value. The excess of the principal amount of the liability component over its carrying amount represented the debt discount, which was amortized to interest expense over the term of the 2025 Notes using the effective interest method. With the Company’s adoption of ASU 2020-06 in fiscal 2022, the principal balance of the 2025 Notes was no longer separated between liability and equity components. This resulted in an increase to the carrying value of its convertible debt, representing the unamortized debt discount as of January 2, 2022, with an offsetting reduction in stockholders’ equity.

The Company incurred debt issuance costs of $10.4 million, which were allocated to the liability and equity components in proportion to the allocation of the proceeds. Upon the adoption of ASU 2020-06, the equity component was reclassified to liabilities and remeasured to reflect cumulative amortization since the issuance of the 2025 Notes.

On March 22, 2023, the Company issued a notice of redemption for the 2025 Notes. Prior to the redemption, the Company received conversion notices representing $533.6 million principal amount of the notes. The Company paid $533.6 million in cash and issued 0.9 million shares of common stock, as well as $47 thousand in cash in lieu of fractional shares, for the conversions. Notes representing $1.4 million principal amount were redeemed at par, plus accrued interest. All note conversions and redemptions were completed in June 2023.

The liability component of the 2025 Notes is recorded in convertible debt on the Consolidated Balance Sheet. Prior to the Company’s adoption of ASU 2020-06, the equity component of the 2025 Notes was recorded in stockholders’ equity. The effective interest rate for the liability component was 5.336%. As of December 30, 2023, there were no remaining debt issuance costs.

Interest expense related to the Company’s convertible debt was comprised of the following (in thousands):


	Year Ended
		December 30,	December 31,		January 1,
		2023	2022		2022
Contractual interest expense	$	1,493	$	3,346	$	3,662
Amortization of debt discount		—		—		21,112
Amortization of debt issuance costs		960		2,003		1,655
	$	2,453	$	5,349	$	26,429

Credit Facility

The Company and certain of its domestic subsidiaries (the “Guarantors”) have a $400 million revolving credit facility, as amended on June 30, 2023, with a maturity date of June 30, 2028. 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 net leverage ratio (funded debt secured by assets/EBITDA) to exceed 3.50 to 1.00, subject to certain conditions.

10. Debt (Continued)

Credit Facility (Continued)

The credit facility, other than swingline loans, will bear interest at the Adjusted Term Secured Overnight Financing Rate (“SOFR”) 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 Adjusted Term SOFR 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 Adjusted Term SOFR 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 consolidated net leverage ratio (funded indebtedness less cash and cash equivalents up to $750 million and divided by EBITDA) of no more than 4.25 to 1, and a minimum interest coverage ratio (EBITDA/interest payments) of no less than 2.50 to 1. As of December 30, 2023, 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 December 30, 2023, $45.0 million was outstanding on the credit facility, with a weighted average interest rate of 6.46%.

- 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://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 30, 2023

Fair Value of Financial Instruments

Summary of valuation of the financial instruments

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


	Fair Value Measurements
	at December 30, 2023 Using
	Quoted Prices in		Significant Other
	Active Markets for		Observable
	Identical Assets		Inputs
Description	(Level 1)		(Level 2)		Total
Cash equivalents:
Money market funds	$	137,195	$	—	$	137,195
Total cash equivalents	$	137,195	$	—	$	137,195

Short-term investments:
Corporate debt securities	$	—	$	130,047	$	130,047
Government debt securities		—		81,673		81,673
Total short-term investments	$	—	$	211,720	$	211,720

Total	$	137,195	$	211,720	$	348,915


	Fair Value Measurements
	at December 31, 2022 Using
	Quoted Prices in		Significant Other
	Active Markets for		Observable
	Identical Assets		Inputs
Description	(Level 1)		(Level 2)		Total
Cash equivalents:
Money market funds	$	310,969	$	—	$	310,969
Corporate debt securities		—		3,249		3,249
Total cash equivalents	$	310,969	$	3,249	$	314,218

Short-term investments:
Corporate debt securities	$	—	$	501,014	$	501,014
Government debt securities		—		191,010		191,010
Total short-term investments	$	—	$	692,024	$	692,024

Total	$	310,969	$	695,273	$	1,006,242

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

The following summarizes the contractual underlying maturities of the Company’s available-for-sale investments at December 30, 2023 (in thousands):


			Fair
	Cost		Value
Due in one year or less	$	155,431	$	154,349
Due after one year through five years		57,518		57,371
	$	212,949	$	211,720

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

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 December 30, 2023	Value		Losses		Value		Losses		Value		Losses
Corporate debt securities	$	12,449	$	(13)	$	95,760	$	(867)	$	108,209	$	(880)
Government debt securities		28,255		(115)		31,122		(440)		59,377		(555)
	$	40,704	$	(128)	$	126,882	$	(1,307)	$	167,586	$	(1,435)


	Less Than 12 Months				12 Months or Greater				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
As of December 31, 2022	Value		Losses		Value		Losses		Value		Losses
Corporate debt securities	$	307,085	$	(5,297)	$	185,467	$	(4,090)	$	492,552	$	(9,387)
Government debt securities		76,651		(626)		100,209		(3,541)		176,860		(4,167)
	$	383,736	$	(5,923)	$	285,676	$	(7,631)	$	669,412	$	(13,554)

Summary of activity in Level 3 financial instruments

The following summarizes the activity in Level 3 financial instruments for the year ended December 31, 2022 (in thousands):

Assets


	December 31,
Auction Rate Securities	2022
Beginning balance	$	4,980
Sales ⁽¹⁾		(6,000)
Loss recognized in earnings		300
Gain (loss) included in other comprehensive income (loss)		720
Ending balance	$	—

(1)

On May 31, 2022, the Company sold its prior remaining holding of auction-rate securities for $5.7 million.

Income Taxes - Unrecognized tax benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2023	Dec. 31, 2022	Jan. 01, 2022
Summary of the activity related to gross unrecognized tax benefits
Beginning balance	$ 4,109	$ 3,677	$ 2,853
Additions based on tax positions related to current year	737	872	830
Additions based on tax positions related to prior years	22
Reductions based on tax positions related to prior years		(6)	(6)
Reductions for tax positions as a result of a lapse of the applicable statute of limitations		(434)
Ending balance	4,868	4,109	3,677
Unrecognized tax benefits, other disclosures
Gross unrecognized tax benefits, inclusive of interest	5,400	4,400	3,900
Gross unrecognized tax benefits which would affect the effective tax rate if recognized	$ 5,100	$ 4,400	$ 3,900

Segment Information

12 Months Ended

Dec. 30, 2023

Segment Information

Segment Information

18. Segment Information

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

The Company groups its products into two categories, based on the target markets they address. See Note 14, Revenues, for a summary of the Company’s revenue by product category.

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


	Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
United States	$	92,550	$	176,379	$	97,471
China		219,741		334,821		311,513
Taiwan		90,382		105,602		68,196
Rest of world		379,585		407,304		243,680
Total	$	782,258	$	1,024,106	$	720,860

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


	December 30,		December 31,
	2023		2022
United States	$	116,357	$	121,031
Rest of world		29,533		30,985
Total	$	145,890	$	152,016

- 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
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

Supplemental Information (Details) - USD ($) $ in Thousands	12 Months Ended
Supplemental Information (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 30, 2023
Inventories
Work in progress	$ 75,112	$ 173,802
Finished goods	25,305	20,493
Inventories	100,417	194,295
Prepaid Expenses and Other Current Assets
Prepaid Expenses and Other Current Assets	97,570	75,117
Property and Equipment
Property and equipment, gross	290,798	299,325
Accumulated depreciation	(138,782)	(153,435)
Total Property and Equipment, net	152,016	145,890
Other Assets, net
Equity-method investment	27,478
Other	67,275	123,313
Total Other Assets, net	94,753	123,313
Other Current Liabilities
Accrued compensation and benefits	43,736	16,891
Income taxes payable	11,472	6,133
Other	33,928	35,931
Total Other Current Liabilities	89,136	58,955
Other Non-Current Liabilities
Lease liability - non-current	18,009	19,830
Other	31,062	50,974
Total Other Non-Current Liabilities	$ 49,071	70,804
Walden Technology Ventures III
Other Assets, net
Percentage of equity interest held	8.00%
Net loss on sale of equity investment	$ (15,200)
Buildings and improvements
Property and Equipment
Property and equipment, gross	125,471	130,482
Equipment
Property and Equipment
Property and equipment, gross	62,304	68,703
Computers and purchased software
Property and Equipment
Property and equipment, gross	55,065	51,755
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	14,209	14,971
Furniture and fixtures
Property and Equipment
Property and equipment, gross	$ 9,909	$ 9,574

Significant Accounting Policies - Revenue Recognition (Details)	12 Months Ended
	Dec. 30, 2023
Revenue Recognition
Product replacement warranty	1 year

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 30, 2023

Stock-Based Compensation

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 Operations (in thousands):


	Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
Cost of revenues	$	906	$	1,152	$	964
Research and development		35,491		32,860		24,986
Selling, general and administrative		11,812		26,498		30,892
		48,208		60,510		56,842
Income tax benefit		(6,230)		(5,980)		(954)
Share-based compensation – continuing operations		41,978		54,530		55,888
Share-based compensation – discontinued operations, net		—		—		(2,007)
Total	$	41,978	$	54,530	$	53,881

Summary of assumptions used to estimate fair values for ESPP


	Year Ended
	December 30,		December 31,		January 1,
Employee Stock Purchase Plan	2023		2022		2022
Expected volatility	40	%	44	%	42	%
Risk-free interest rate %	5.47	%	3.18	%	0.05	%
Expected term (in months)	9		9		9
Dividend yield	—		—		—

Summary of stock-based compensation activity, options


		Weighted-		Weighted-Average	Aggregate
		Average		Remaining	Intrinsic
	Shares	Exercise		Contractual Term	Value
Stock Options	(000s)	Price		(In Years)	(000s)
Outstanding at December 31, 2022	118	$	38.80	3.12	$	11,457
Exercised	24	$	37.88		$	2,162
Outstanding at December 30, 2023	94	$	39.03	2.12	$	8,790
Vested at December 30, 2023 and expected to vest	94	$	39.03	2.12	$	8,790
Exercisable at December 30, 2023	94	$	39.03	2.12	$	8,790

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 December 31, 2022	897	$	134.74
Granted	420	$	137.11
Vested or issued	(416)	$	127.51
Cancelled or forfeited	(77)	$	142.05
Outstanding at December 30, 2023	824	$	139.34	1.14	$	109,044

Outstanding at December 30, 2023 and expected to vest	759	$	139.36	1.14	$	100,329

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 December 31, 2022	225	$	134.93
Granted	86	$	188.45
Vested or issued	(33)	$	92.31
Cancelled or forfeited	(33)	$	95.47
Outstanding at December 30, 2023	245	$	164.62	1.22	$	32,438

Outstanding at December 30, 2023 and expected to vest	85	$	132.99	1.22	$	11,205

Summary of weighted average fair value at the date of grant


	Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
Per grant of RSAs and RSUs	$	137.11	$	144.40	$	135.28
Per grant of PSUs and MSUs	$	188.45	$	160.97	$	145.11

Summary of stock-based payment and stock option values

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


	Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
Intrinsic value of stock options exercised	$	2,162	$	—	$	986
Intrinsic value of RSUs that vested	$	61,371	$	57,621	$	76,654
Grant date fair value of RSUs that vested	$	53,088	$	41,610	$	47,726
Intrinsic value of PSUs and MSUs that vested	$	5,163	$	—	$	5,231
Grant date fair value of PSUs and MSUs that vested	$	3,037	$	—	$	3,562

Summary of shares reserved of common stock for future issuance

As of December 30, 2023, the Company had reserved shares of common stock for future issuance as follows (in thousands):


2009 Plan		2,096
2009 ESPP		991
Total shares reserved		3,087

Derivative Financial Instruments (Details) - Cash flow hedges - Foreign currency forward contracts $ in Millions	12 Months Ended
	Dec. 30, 2023 USD ($)
Derivative Financial Instruments
Derivative, notional amount	$ 6.8
Minimum
Derivative Financial Instruments
Maturity of contracts	1 month
Maximum
Derivative Financial Instruments
Maturity of contracts	3 months

Restructuring Activities

12 Months Ended

Dec. 30, 2023

Restructuring Activities

Restructuring Activities

19. Restructuring Activities

During the fourth quarter of 2023, the Company implemented a workforce reduction of approximately 10% of its employees to reduce costs and align its business in response to market conditions. In fiscal 2023, the Company incurred employee separation costs of $9.1 million and non-cash charges for the accelerated vesting of certain equity awards of approximately $0.6 million. Employee separation costs of $6.0 million were recorded to research and development expenses and $3.0 million were recorded to selling, general and administrative expenses within the Consolidated Statement of Operations. No further material amounts are expected to be incurred. In fiscal 2023, the Company paid approximately $5 million of employee separation payments and accrued approximately $4 million in other current liabilities at December 30, 2023.

Income Taxes - Additional Information (Details) - 12 months ended Dec. 30, 2023 kr in Millions, $ in Millions	USD ($)	NOK (kr)
Income Taxes
Transition Tax obligation	$ 14.3
Decrease in gross unrecognized benefits	(1.7)
Other current liabilities
Income Taxes
Transition Tax obligation	6.4
Other non-current liabilities
Income Taxes
Transition Tax obligation	7.9
Norwegian Tax Administration \| 2013
Income Taxes
Estimate of additional income tax expense	13.9	kr 141.3
Foreign
Income Taxes
Operating Loss Carryforwards	47.2
Foreign \| Research and development tax credit
Income Taxes
Tax credit carryforwards	0.2
Federal
Income Taxes
Operating Loss Carryforwards	12.4
Federal \| Research and development tax credit
Income Taxes
Tax credit carryforwards	1.1
State
Income Taxes
Operating Loss Carryforwards	28.2
State \| Alternative minimum tax credit
Income Taxes
Tax credit carryforwards	0.1
State \| Research and development tax credit
Income Taxes
Tax credit carryforwards	$ 12.9

Fair Value of Financial Instruments - Activity in Level 3 financial instruments (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	May 31, 2022	Dec. 31, 2022
Fair value assets reconciliation of changes
Beginning balance		$ 4,980
Sales		(6,000)
Loss recognized in earnings		$ 300
Loss recognized in earnings, Statements of Income location		Interest income and other, net
Gain (loss) included in other comprehensive income (loss)		$ 720
Gain (loss) included in other comprehensive income (loss), Statements of Comprehensive Income location		Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax
Ending balance		$ 0
Significant Unobservable Inputs (Level 3) \| Recurring \| Auction rate securities
Fair value assets reconciliation of changes
Sales	$ (5,700)

Income Taxes - Valuation allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2023	Dec. 31, 2022	Jan. 01, 2022
Changes in the valuation allowance for deferred tax assets
Balance at Beginning of Period	$ 9,409	$ 9,529	$ 5,311
Additions Charged to Expenses	1,121	792	5,370
Deductions	0	(912)	(1,152)
Balance at End of Period	$ 10,530	$ 9,409	$ 9,529

Earnings (Loss) Per Share (Tables)

12 Months Ended

Dec. 30, 2023

Earnings (Loss) Per Share

Schedule of computation of basic and diluted earnings (loss) per share

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


	Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
Income (loss) from continuing operations	$	(34,516)	$	91,402	$	(57,874)

Shares used in computing basic earnings (loss) per share		31,804		35,086		42,830

Effect of dilutive securities:
Stock-based awards and convertible debt		—		956		—
Shares used in computing diluted earnings (loss) per share		31,804		36,042		42,830

Earnings (loss) per share:
Basic	$	(1.09)	$	2.61	$	(1.35)
Diluted	$	(1.09)	$	2.54	$	(1.35)

Share Repurchases (Details) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 30, 2023	Dec. 31, 2022	Jan. 01, 2022
Share Repurchases
Value of shares repurchased	$ 213,024	$ 887,554	$ 1,150,044
Common Stock
Share Repurchases
Number of shares repurchased	1,522	6,874	6,520
Value of shares repurchased		$ 1
Share Repurchase Program \| Common Stock
Share Repurchases
Number of shares repurchased	1,500	6,900	6,500
Value of shares repurchased	$ 213,000	$ 887,600	$ 1,150,000
Share Repurchases through Tender Offer \| Common Stock
Share Repurchases
Number of shares repurchased			4,000
Accelerated Share Repurchase \| Common Stock
Share Repurchases
Number of shares repurchased			1,700
Existing share repurchase program \| Common Stock
Share Repurchases
Number of shares repurchased			800

- Definition

Number of shares that have been repurchased during the period and have not been retired and are not held in treasury. Some state laws may govern the circumstances under which an entity may acquire its own stock and prescribe the accounting treatment therefore. This element is used when state law does not recognize treasury stock.

+ References + Details

- Definition

Equity impact of the value of stock that has been repurchased during the period and has not been retired and is not held in treasury. Some state laws may mandate the circumstances under which an entity may acquire its own stock and prescribe the accounting treatment therefore. This element is used when state law does not recognize treasury stock.

+ References + Details

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Other Intangible Assets, Net (Tables)

12 Months Ended

Dec. 30, 2023

Other Intangible Assets, Net

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

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


	Weighted-Average
	Amortization	December 30, 2023				December 31, 2022
	Period	Gross		Accumulated		Gross		Accumulated
	(Years)	Amount		Amortization		Amount		Amortization

Developed technology	8	$	211,217	$	(151,722)	$	211,217	$	(126,424)
Trademarks	12		910		(872)		910		(796)
Total intangible assets	8	$	212,127	$	(152,594)	$	212,127	$	(127,220)

Schedule of amortization expense of intangible assets

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


	Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
Research and development	$	25,298	$	28,962	$	32,319
Selling, general and administrative		76		5,109		12,186
	$	25,374	$	34,071	$	44,505

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
2024	$	23,034
2025		13,369
2026		9,178
2027		9,178
2028		4,039

Significant Accounting Policies (Policies)	12 Months Ended
Significant Accounting Policies (Policies)	Dec. 30, 2023
Significant Accounting Policies
Basis of Presentation and Principles of Consolidation	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 2023, 2022, and 2021 had 52 weeks. Fiscal 2023, 2022 and 2021 ended on December 30, 2023, December 31, 2022, and January 1, 2022, respectively. The accompanying Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
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 Operations.
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. The Company periodically reviews the assumptions used in its financial statement estimates.
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	Cash and Cash Equivalents Cash and cash equivalents consist of cash deposits, 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 available-for-sale securities. Investments in available-for-sale securities are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive loss in the Consolidated Balance Sheet. Investments in 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 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 earnings in the Consolidated Statements of Operations. The Company has elected to use the measurement alternative under Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, 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. In fiscal 2023, the Company sold its ownership in Walden Technology Ventures III, a limited partnership, and recognized the loss in the Consolidated Statement of Operations.
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.
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 five 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 Operations.
Stock-Based Compensation	Stock-Based Compensation The Company has stock-based compensation plans, which are more fully described in Note 15, Stock-Based Compensation. The Company accounts for those plans using a fair-value method and recognizes the expense in its Consolidated Statement of Operations.
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 17, Income Taxes, for additional information.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280)—Improvements to Reportable Segment Disclosures. This ASU requires interim and annual disclosure of significant segment expenses that are regularly provided to the chief operating decision-maker (“CODM”) and included within the reported measure of a segment’s profit or loss, requires interim disclosures about a reportable segment’s profit or loss and assets that are currently required annually, requires disclosure of the position and title of the CODM, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, and contains other disclosure requirements. This authoritative guidance is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the effect of this new guidance on our consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740)—Improvements to Income Tax Disclosures. This ASU requires that reporting entities disclose specific categories in the effective tax rate reconciliation as well as information about income taxes paid. The authoritative guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the effect of this new guidance on our consolidated financial statements.

Stock-Based Compensation

12 Months Ended

Dec. 30, 2023

Stock-Based Compensation

Stock-Based Compensation

15. Stock-Based Compensation

The Company has two active stock plans, the 2009 Stock Incentive Plan (the “2009 Plan”) and the 2009 Employee Stock Purchase Plan (the “2009 ESPP”) that have been amended and approved by shareholders from time to time.

●

The 2009 Plan allows for grants of stock options, stock appreciation rights, performance shares, performance stock units, restricted stock units (“RSUs”), restricted stock awards (“RSAs”), performance-based stock units (“PSUs”) and other awards (collectively, “awards”). All awards deduct one share from the 2009 Plan shares available for issuance for each share granted. Awards granted under the 2009 Plan contain vesting provisions mostly ranging from three to four years. 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.

●

The 2009 ESPP allows eligible employees to 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 is comprised of a series of one or more successive and/or overlapping purchase intervals and has a maximum term of 27 months.

2009 Plan

The Company granted to its employees 0.5 million, 0.5 million and 0.6 million shares of full value awards from the 2009 Plan during fiscal 2023, 2022 and 2021, respectively. Full value awards include RSUs, MSUs, and PSUs.

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 measurement period for these MSUs is also the vesting period, which is generally three years. MSUs granted in 2020 measured the relative performance of the total stockholders’ return of the Company against that of a selected benchmarked group of companies. The Company granted no MSUs in fiscal 2023, 2022 and 2021.

15. Stock-Based Compensation (Continued)

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 or profitability objectives during the year. The requisite performance period of these PSUs is approximately three years from the date of grant. The Company granted 85,554, 52,078, and 116,809 PSUs in fiscal 2023, 2022, and 2021, respectively.

2009 ESPP

The rights to purchase common stock granted under the 2009 ESPP 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. During fiscal 2023, 2022 and 2021, the Company issued 154,000, 109,000, and 146,000 shares, respectively, under the 2009 ESPP to its employees. The weighted-average fair value for purchase rights granted in fiscal 2023 under the 2009 ESPP was $27.81 per share.

Accounting for Stock-Based Compensation

Stock-based compensation costs are based on the fair values on the date of grant for awards under the 2009 Plan, and on the date of enrollment for grants under the 2009 ESPP. 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 grants under the 2009 ESPP are estimated using the Black-Scholes option-pricing model. The fair values of all such stock-based grants are generally amortized on a straight-line basis over the vesting period of the grants.

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


	Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
Cost of revenues	$	906	$	1,152	$	964
Research and development		35,491		32,860		24,986
Selling, general and administrative		11,812		26,498		30,892
		48,208		60,510		56,842
Income tax benefit		(6,230)		(5,980)		(954)
Share-based compensation – continuing operations		41,978		54,530		55,888
Share-based compensation – discontinued operations, net		—		—		(2,007)
Total	$	41,978	$	54,530	$	53,881

The Company recorded $0.6 million and $7.8 million of stock-based compensation charges included in selling, general and administrative expense during fiscal 2023 and fiscal 2021, respectively, 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 2023, 2022 or 2021.

The Company had approximately $88.7 million of total unrecognized compensation cost related to equity grants as of December 30, 2023 that is expected to be recognized over a weighted-average period of approximately 2.0 years. There were no significant stock-based compensation costs capitalized into assets in any of the periods presented.

15. Stock-Based Compensation (Continued)

Fair value assumptions and stock awards activity

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


	Year Ended
	December 30,		December 31,		January 1,
Employee Stock Purchase Plan	2023		2022		2022
Expected volatility	40	%	44	%	42	%
Risk-free interest rate %	5.47	%	3.18	%	0.05	%
Expected term (in months)	9		9		9
Dividend yield	—		—		—

A summary of stock-based compensation activity with respect to fiscal 2023 follows:


		Weighted-		Weighted-Average	Aggregate
		Average		Remaining	Intrinsic
	Shares	Exercise		Contractual Term	Value
Stock Options	(000s)	Price		(In Years)	(000s)
Outstanding at December 31, 2022	118	$	38.80	3.12	$	11,457
Exercised	24	$	37.88		$	2,162
Outstanding at December 30, 2023	94	$	39.03	2.12	$	8,790
Vested at December 30, 2023 and expected to vest	94	$	39.03	2.12	$	8,790
Exercisable at December 30, 2023	94	$	39.03	2.12	$	8,790


		Weighted-		Weighted-Average	Aggregate
		Average		Remaining	Intrinsic
	Shares	Grant Date		Vesting Term	Value
RSAs and RSUs	(000s)	Fair Value		(In Years)	(000s)
Outstanding at December 31, 2022	897	$	134.74
Granted	420	$	137.11
Vested or issued	(416)	$	127.51
Cancelled or forfeited	(77)	$	142.05
Outstanding at December 30, 2023	824	$	139.34	1.14	$	109,044

Outstanding at December 30, 2023 and expected to vest	759	$	139.36	1.14	$	100,329


		Weighted-		Weighted-Average	Aggregate
		Average		Remaining	Intrinsic
	Shares	Grant Date		Vesting Term	Value
PSUs and MSUs	(000s)	Fair Value		(In Years)	(000s)
Outstanding at December 31, 2022	225	$	134.93
Granted	86	$	188.45
Vested or issued	(33)	$	92.31
Cancelled or forfeited	(33)	$	95.47
Outstanding at December 30, 2023	245	$	164.62	1.22	$	32,438

Outstanding at December 30, 2023 and expected to vest	85	$	132.99	1.22	$	11,205

15. Stock-Based Compensation (Continued)

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


	Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
Per grant of RSAs and RSUs	$	137.11	$	144.40	$	135.28
Per grant of PSUs and MSUs	$	188.45	$	160.97	$	145.11

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


	Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
Intrinsic value of stock options exercised	$	2,162	$	—	$	986
Intrinsic value of RSUs that vested	$	61,371	$	57,621	$	76,654
Grant date fair value of RSUs that vested	$	53,088	$	41,610	$	47,726
Intrinsic value of PSUs and MSUs that vested	$	5,163	$	—	$	5,231
Grant date fair value of PSUs and MSUs that vested	$	3,037	$	—	$	3,562

As of December 30, 2023, the Company had reserved shares of common stock for future issuance as follows (in thousands):


2009 Plan		2,096
2009 ESPP		991
Total shares reserved		3,087

Segment Information (Details) $ in Thousands	12 Months Ended
Segment Information (Details) $ in Thousands	Dec. 30, 2023 USD ($) segment	Dec. 31, 2022 USD ($)	Jan. 01, 2022 USD ($)
Segment Information
Number of operating segments \| segment	1
Revenues	$ 782,258	$ 1,024,106	$ 720,860
Property and equipment, net	145,890	152,016
United States
Segment Information
Revenues	92,550	176,379	97,471
Property and equipment, net	116,357	121,031
China
Segment Information
Revenues	219,741	334,821	311,513
Taiwan
Segment Information
Revenues	90,382	105,602	68,196
Rest of world
Segment Information
Revenues	379,585	407,304	$ 243,680
Property and equipment, net	$ 29,533	$ 30,985

- Definition

+ References

+ Details

Restructuring Activities (Details) $ in Millions	3 Months Ended	12 Months Ended
Restructuring Activities (Details) $ in Millions	Dec. 30, 2023 USD ($)	Dec. 30, 2023 USD ($)
Restructuring Activities
Workforce reduction (as a percent)	10.00%
Research and development
Restructuring Activities
Employee separation costs and Non-cash charges for the accelerated vesting of certain equity awards		$ 6.0
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration]		Operating Expenses
Selling, general and administrative
Restructuring Activities
Employee separation costs and Non-cash charges for the accelerated vesting of certain equity awards		$ 3.0
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration]		Operating Expenses
Employee separation costs
Restructuring Activities
Employee separation costs and Non-cash charges for the accelerated vesting of certain equity awards		$ 9.1
Employee separation payments made		5.0
Accrued employee separation costs	$ 4.0	4.0
Non-cash charges for the accelerated vesting of certain equity awards
Restructuring Activities
Employee separation costs and Non-cash charges for the accelerated vesting of certain equity awards		$ 0.6

Income Taxes

12 Months Ended

Dec. 30, 2023

Income Taxes

Income Taxes

17. Income Taxes

Income (loss) from continuing operations, inclusive of equity-method earnings (loss) and before income taxes, includes the following components (in thousands):


	Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
Domestic	$	(14,539)	$	32,088	$	(15,384)
Foreign		(12,034)		97,764		(29,063)
	$	(26,573)	$	129,852	$	(44,447)

17. Income Taxes (Continued)

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


	Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
Current:
Domestic	$	3,291	$	52,834	$	(12,630)
Foreign		15,599		3,856		9,447
Total Current		18,890		56,690		(3,183)
Deferred:
Domestic		(9,036)		(17,728)		17,873
Foreign		(1,911)		(512)		(1,263)
Total Deferred		(10,947)		(18,240)		16,610

Provision for income taxes	$	7,943	$	38,450	$	13,427

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


	Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
Federal statutory rate	21.0	%	21.0	%	21.0	%
Foreign tax rate benefit	(33.2)		(6.2)		(16.4)
(Nondeductible) nontaxable foreign items	(25.5)		4.4		(7.2)
GILTI and Subpart F income, net of foreign tax credits	(24.2)		16.5		(2.4)
Base erosion and anti-abuse tax	(7.4)		—		—
(Nondeductible) nontaxable domestic items	(3.6)		0.7		(2.8)
Foreign withholding taxes	(2.2)		0.4		—
State tax expense	(1.5)		1.2		(0.8)
Change in prior period valuation allowance	(1.5)		(0.3)		(10.5)
Net operating loss not benefited	—		—		(6.0)
Other tax effects of equity compensation	1.1		(0.3)		0.5
Nondeductible officer compensation	1.3		2.0		(10.3)
Excess tax benefit of stock-based compensation	4.0		(1.1)		3.7
Return to provision adjustments	16.5		(2.0)		0.8
Research and development tax credits	26.4		(5.3)		0.1
Other	(1.1)		(1.4)		0.1
Effective tax rate	(29.9)	%	29.6	%	(30.2)	%

17. Income Taxes (Continued)

The decrease in the provision for income taxes for fiscal 2023 was primarily due to decreases in pre-tax book income and global intangible low-taxed income inclusions as compared to fiscal 2022. The provision for income taxes for fiscal 2022 increased from fiscal 2021 primarily due to the recognition of certain tax benefits for fiscal 2021 in discontinued operations under FASB ASU 2019-12, Simplifying the Accounting for Income Taxes, and the required adoption of new U.S. tax rules regarding the capitalization of research and experimental costs in fiscal 2022.

Under ASU 2019-12, the income tax benefit of a loss from continuing operations should be recognized in discontinued operations if the Company would be unable to benefit from the loss without considering the income from discontinued operations. As such, tax benefits associated with losses incurred for fiscal 2021 were recognized in discontinued operations.

The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. Under the Act, research and experimental expenditures incurred for tax years beginning after December 31, 2021 must be capitalized and amortized ratably over five or fifteen years for tax purposes, depending on where the research activities are conducted. The Company has elected to treat global intangible low-taxed income (“GILTI”) as a period cost, so the capitalization of research and experimental costs in GILTI increases the Company’s provision for income taxes.

Additionally, the Act 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 December 30, 2023, the unpaid balance of its transition tax obligation was $14.3 million, which is payable between April 2024 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 $6.4 million and $7.9 million, respectively.

17. Income Taxes (Continued)

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 December 30, 2023 and December 31, 2022 were as follows (in thousands):


	December 30,		December 31,
	2023		2022
Deferred tax assets:
Capitalized research and development	$	27,402	$	15,188
Tax credit carryforwards		13,303		13,334
Intangible assets		7,188		7,938
Net operating loss carryforwards		6,911		4,965
Leases		6,584		5,517
Deferred income on shipments to distributors		6,465		6,726
Accrued liabilities		2,859		6,809
Other		3,072		7,118
		73,784		67,595
Less: Valuation allowance		(10,530)		(9,409)
		63,254		58,186

Deferred tax liabilities:
Intangible assets		13,916		13,789
Fixed assets		8,353		8,518
Leases		6,238		5,189
Prepaid expenses and other		4,534		5,637
Unrealized gain on equity-method investment		—		4,120
		33,041		37,253

Net deferred tax assets (liabilities)	$	30,213	$	20,933

As of December 30, 2023, the Company had foreign net operating loss and research and development tax credit carryforwards of approximately $47.2 million and $0.2 million, respectively. The foreign net operating loss carryforward does not expire. The foreign research and development tax credits expire in fiscal years 2042 through 2043.

The Company also had U.S. federal net operating loss and research and development tax credit carryforwards of approximately $12.4 million and $1.1 million, respectively. These carryforwards expire in fiscal years 2026 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.

Additionally, the Company had state loss, state research and development, and state alternative minimum tax credit carryforwards of approximately $28.2 million, $12.9 million, and $0.1 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.

17. 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				Balance at
	Beginning of		Charged to				End of
	Period		Expenses		Deductions		Period
Year ended December 30, 2023	$	9,409	$	1,121		—	$	10,530

Year ended December 31, 2022	$	9,529	$	792	$	(912)	$	9,409

Year ended January 1, 2022	$	5,311	$	5,370	$	(1,152)	$	9,529

Prior to fiscal 2023, the Company asserted permanent reinvestment of the earnings of all foreign subsidiaries, except for Singapore and China. During fiscal 2023, the Company modified its previous indefinite reinvestment assertion for the remaining foreign subsidiaries and recorded a deferred tax liability for applicable withholding taxes on the undistributed earnings in those jurisdictions.

Uncertain Tax Positions

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


	Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
Beginning balance	$	4,109	$	3,677	$	2,853
Additions based on tax positions related to current year		737		872		830
Additions based on tax positions related to prior years		22		—		—
Reductions based on tax positions related to prior years		—		(6)		(6)
Reductions for tax positions as a result of a lapse of the applicable statute of limitations		—		(434)		—
Ending balance	$	4,868	$	4,109	$	3,677

As of December 30, 2023, December 31, 2022 and January 1, 2022, the Company had gross unrecognized tax benefits, inclusive of interest, of $5.4 million, $4.4 million and $3.9 million, respectively, of which $5.1 million, $4.4 million and $3.9 million, respectively, would affect the effective tax rate if recognized.

The Company recognizes interest and penalties related to unrecognized tax benefits in the provision 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 $13.9 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.

17. Income Taxes (Continued)

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 2023 remain open to examination by the major taxing jurisdictions in which the Company operates. The Company’s 2021 tax year is currently under examination in India. Although the outcome of tax audits is always uncertain, the Company believes that the results of the examination will not materially impact its financial position or results of operations. The Company is not currently under audit in any other major taxing jurisdiction.

The Company believes it is reasonably possible that its gross unrecognized benefits will decrease by approximately $1.7 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

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 Jan. 02, 2021	$ 4	$ 204,359		$ 993,664	$ 1,814		$ 1,199,841
Balance (in shares) at Jan. 02, 2021	43,925
Increase (Decrease) in Stockholders' Equity
Net income (loss)				2,117,399			2,117,399
Other comprehensive income (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
Increase (Decrease) in Stockholders' Equity
Net income (loss)				91,402			91,402
Other comprehensive income (loss)					(8,269)		(8,269)
Stock issuances, net of shares withheld for taxes		(3,608)					(3,608)
Stock issuances, net of shares withheld for taxes (in shares)	387
Repurchases of common stock	$ (1)	(56,968)		(830,585)			(887,554)
Repurchases of common stock (in shares)	(6,874)
Stock-based compensation		60,576					60,576
Balance at Dec. 31, 2022	$ 3		$ (59,963)	1,415,693	(10,688)	$ (59,963)	$ 1,405,008
Balance (in shares) at Dec. 31, 2022	31,994						31,994
Increase (Decrease) in Stockholders' Equity
Net income (loss)				(34,516)			$ (34,516)
Other comprehensive income (loss)					9,663		9,663
Stock issuances, net of shares withheld for taxes		(3,577)					(3,577)
Stock issuances, net of shares withheld for taxes (in shares)	505
Repurchases of common stock		(24,578)		(188,446)			(213,024)
Repurchases of common stock (in shares)	(1,522)
Stock-based compensation		48,688					48,688
Convertible debt activity		(3,560)					(3,560)
Convertible debt activity (in shares)	920
Balance at Dec. 30, 2023	$ 3	$ 16,973		$ 1,192,731	$ (1,025)		$ 1,208,682
Balance (in shares) at Dec. 30, 2023	31,897						31,897

Stock-Based Compensation - Fair value assumptions (Details) - 2009 Employee Stock Purchase Plan	12 Months Ended
	Dec. 30, 2023	Dec. 31, 2022	Jan. 01, 2022
Fair value assumptions
Expected volatility	40.00%	44.00%	42.00%
Risk-free interest rate %	5.47%	3.18%	0.05%
Expected term (in months)	9 months	9 months	9 months
Dividend yield	0.00%	0.00%	0.00%

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Dec. 30, 2023	Dec. 31, 2022
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	31,897	31,994
Common stock, shares outstanding	31,897	31,994

Commitments and Contingencies

12 Months Ended

Dec. 30, 2023

Commitments and Contingencies

Commitments and Contingencies

12. Commitments and Contingencies

Litigation

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.

Risks and Uncertainties

12 Months Ended

Dec. 30, 2023

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 and derivatives. The Company places its cash equivalents and investments primarily in municipal bonds, money market funds, corporate bonds, U.S. government securities, agency bonds, asset-back securities, and Yankee bonds. Concentrations of credit risk with respect to accounts receivable are primarily due to customers with large outstanding balances. The Company’s customers that accounted for greater than 10% of accounts receivable consisted of the following:


	December 30,		December 31,
	2023		2022
Arrow Electronics	*		29	%
Other	13	%	*

Less than 10% of accounts receivable

The Company performs periodic credit evaluations of its customers’ financial condition and generally requires no collateral from its customers. The Company provides an allowance for 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 2023, 2022 or 2021. The Company’s distributors that accounted for greater than 10% of revenue consisted of the following:


	Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
Arrow Electronics	34	%	33	%	28	%
Edom Technology	15	%	17	%	18	%
Sekorm	*		*		12	%

Less than 10% of revenue

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 227,504	$ 499,915
Short-term investments	211,720	692,024
Accounts receivable, net	29,295	71,437
Inventories	194,295	100,417
Prepaid expenses and other current assets	75,117	97,570
Total current assets	737,931	1,461,363
Property and equipment, net	145,890	152,016
Goodwill	376,389	376,389
Other intangible assets, net	59,533	84,907
Other assets, net	123,313	94,753
Total assets	1,443,056	2,169,428
Current liabilities:
Accounts payable	57,498	89,860
Revolving line of credit	45,000
Deferred revenue and returns liability	2,117	6,780
Other current liabilities	58,955	89,136
Total current liabilities	163,570	185,776
Convertible debt, net		529,573
Other non-current liabilities	70,804	49,071
Total liabilities	234,374	764,420
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; 31,897 and 31,994 shares issued and outstanding at December 30, 2023 and December 31, 2022, respectively	3	3
Additional paid-in capital	16,973
Retained earnings	1,192,731	1,415,693
Accumulated other comprehensive loss	(1,025)	(10,688)
Total stockholders' equity	1,208,682	1,405,008
Total liabilities and stockholders' equity	$ 1,443,056	$ 2,169,428

Stock-Based Compensation - RSAs and RSUs, PSUs and MSUs activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 30, 2023	Dec. 31, 2022	Jan. 01, 2022
RSAs and RSUs
Shares
Outstanding at the beginning the of year (in shares)	897
Granted (in shares)	420
Vested or issued (in shares)	(416)
Cancelled or forfeited (in shares)	(77)
Outstanding at the end of the year (in shares)	824	897
Outstanding at the end of the year and expected to vest (in shares)	759
Weighted-Average Grant Date Fair Value
Outstanding at the beginning of the year (in dollars per share)	$ 134.74
Granted (in dollars per share)	137.11	$ 144.40	$ 135.28
Vested Earned or issued (in dollars per share)	127.51
Cancelled or forfeited (in dollars per share)	142.05
Outstanding at the end of the year (in dollars per share)	139.34	$ 134.74
Outstanding at the end of the year and expected to vest (in dollars per share)	$ 139.36
Weighted-Average Remaining Vesting Term
Outstanding at the end of year	1 year 1 month 20 days
Outstanding at the end of year and expected to vest	1 year 1 month 20 days
Aggregate Intrinsic Value
Outstanding at the end of the year (in dollars)	$ 109,044
Outstanding at the end of the year and expected to vest (in dollars)	$ 100,329
PSUs and MSUs
Shares
Outstanding at the beginning the of year (in shares)	225
Granted (in shares)	86
Vested or issued (in shares)	(33)
Cancelled or forfeited (in shares)	(33)
Outstanding at the end of the year (in shares)	245	225
Outstanding at the end of the year and expected to vest (in shares)	85
Weighted-Average Grant Date Fair Value
Outstanding at the beginning of the year (in dollars per share)	$ 134.93
Granted (in dollars per share)	188.45	$ 160.97	$ 145.11
Vested Earned or issued (in dollars per share)	92.31
Cancelled or forfeited (in dollars per share)	95.47
Outstanding at the end of the year (in dollars per share)	164.62	$ 134.93
Outstanding at the end of the year and expected to vest (in dollars per share)	$ 132.99
Weighted-Average Remaining Vesting Term
Outstanding at the end of year	1 year 2 months 19 days
Outstanding at the end of year and expected to vest	1 year 2 months 19 days
Aggregate Intrinsic Value
Outstanding at the end of the year (in dollars)	$ 32,438
Outstanding at the end of the year and expected to vest (in dollars)	$ 11,205

Fair Value of Financial Instruments - Fair values of other financial instruments (Details) - Convertible notes 2025 - USD ($) $ in Thousands	Dec. 30, 2023	Dec. 31, 2022
Fair Value of Financial Instruments
Fair value of debt		$ 671,900
Outstanding notes	$ 0

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Other Intangible Assets, Net - Estimated aggregate amortization expense (Details) $ in Thousands	Dec. 30, 2023 USD ($)
Estimated aggregate amortization expense for intangible assets subject to amortization
2024	$ 23,034
2025	13,369
2026	9,178
2027	9,178
2028	$ 4,039

Income Taxes - Tax rate reconciliation (Details)	12 Months Ended
Income Taxes - Tax rate reconciliation (Details)	Dec. 30, 2023	Dec. 31, 2022	Jan. 01, 2022
Reconciliation of federal statutory tax rate to effective tax rate
Federal statutory rate	21.00%	21.00%	21.00%
Foreign tax rate benefit	(33.20%)	(6.20%)	(16.40%)
(Nondeductible) nontaxable foreign items	(25.50%)	4.40%	(7.20%)
GILTI and Subpart F income, net of foreign tax credits	(24.20%)	16.50%	(2.40%)
Base erosion and anti-abuse tax	(7.40%)
(Nondeductible) nontaxable domestic items	(3.60%)	0.70%	(2.80%)
Foreign withholding taxes	(2.20%)	0.40%
State tax expense	(1.50%)	1.20%	(0.80%)
Change in prior period valuation allowance	(1.50%)	(0.30%)	(10.50%)
Net operating loss not benefited			(6.00%)
Other tax effects of equity compensation	1.10%	(0.30%)	0.50%
Nondeductible officer compensation	1.30%	2.00%	(10.30%)
Excess tax benefit of stock-based compensation	4.00%	(1.10%)	3.70%
Return to provision adjustments	16.50%	(2.00%)	0.80%
Research and development tax credits	26.40%	(5.30%)	0.10%
Other	(1.10%)	(1.40%)	0.10%
Effective tax rate	(29.90%)	29.60%	(30.20%)

Fair Value of Financial Instruments - Valuation of financial instruments (Details) - USD ($) $ in Thousands	Dec. 30, 2023	Dec. 31, 2022
Fair Value of Financial Instruments
Short-term investments	$ 211,720	$ 692,024
Recurring
Fair Value of Financial Instruments
Cash equivalents	137,195	314,218
Short-term investments	211,720	692,024
Total	348,915	1,006,242
Recurring \| Money market funds
Fair Value of Financial Instruments
Cash equivalents	137,195	310,969
Recurring \| Corporate debt securities
Fair Value of Financial Instruments
Cash equivalents		3,249
Short-term investments	130,047	501,014
Recurring \| Government debt securities
Fair Value of Financial Instruments
Short-term investments	81,673	191,010
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value of Financial Instruments
Cash equivalents	137,195	310,969
Total	137,195	310,969
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Money market funds
Fair Value of Financial Instruments
Cash equivalents	137,195	310,969
Recurring \| Significant Other Observable Inputs (Level 2)
Fair Value of Financial Instruments
Cash equivalents		3,249
Short-term investments	211,720	692,024
Total	211,720	695,273
Recurring \| Significant Other Observable Inputs (Level 2) \| Corporate debt securities
Fair Value of Financial Instruments
Cash equivalents		3,249
Short-term investments	130,047	501,014
Recurring \| Significant Other Observable Inputs (Level 2) \| Government debt securities
Fair Value of Financial Instruments
Short-term investments	$ 81,673	$ 191,010

Fair Value of Financial Instruments

12 Months Ended

Dec. 30, 2023

Fair Value of Financial Instruments

Fair Value of Financial Instruments

5. Fair Value of Financial Instruments


	Fair Value Measurements
	at December 30, 2023 Using
	Quoted Prices in		Significant Other
	Active Markets for		Observable
	Identical Assets		Inputs
Description	(Level 1)		(Level 2)		Total
Cash equivalents:
Money market funds	$	137,195	$	—	$	137,195
Total cash equivalents	$	137,195	$	—	$	137,195

Short-term investments:
Corporate debt securities	$	—	$	130,047	$	130,047
Government debt securities		—		81,673		81,673
Total short-term investments	$	—	$	211,720	$	211,720

Total	$	137,195	$	211,720	$	348,915

5. Fair Value of Financial Instruments (Continued)


	Fair Value Measurements
	at December 31, 2022 Using
	Quoted Prices in		Significant Other
	Active Markets for		Observable
	Identical Assets		Inputs
Description	(Level 1)		(Level 2)		Total
Cash equivalents:
Money market funds	$	310,969	$	—	$	310,969
Corporate debt securities		—		3,249		3,249
Total cash equivalents	$	310,969	$	3,249	$	314,218

Short-term investments:
Corporate debt securities	$	—	$	501,014	$	501,014
Government debt securities		—		191,010		191,010
Total short-term investments	$	—	$	692,024	$	692,024

Total	$	310,969	$	695,273	$	1,006,242

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 foreign currency 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 available-for-sale investments are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive loss in the Consolidated Balance Sheet. The following summarizes the contractual underlying maturities of the Company’s available-for-sale investments at December 30, 2023 (in thousands):


			Fair
	Cost		Value
Due in one year or less	$	155,431	$	154,349
Due after one year through five years		57,518		57,371
	$	212,949	$	211,720

Unrealized Gains and Losses


	Less Than 12 Months				12 Months or Greater				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
As of December 30, 2023	Value		Losses		Value		Losses		Value		Losses
Corporate debt securities	$	12,449	$	(13)	$	95,760	$	(867)	$	108,209	$	(880)
Government debt securities		28,255		(115)		31,122		(440)		59,377		(555)
	$	40,704	$	(128)	$	126,882	$	(1,307)	$	167,586	$	(1,435)

5. Fair Value of Financial Instruments (Continued)


	Less Than 12 Months				12 Months or Greater				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
As of December 31, 2022	Value		Losses		Value		Losses		Value		Losses
Corporate debt securities	$	307,085	$	(5,297)	$	185,467	$	(4,090)	$	492,552	$	(9,387)
Government debt securities		76,651		(626)		100,209		(3,541)		176,860		(4,167)
	$	383,736	$	(5,923)	$	285,676	$	(7,631)	$	669,412	$	(13,554)

The gross unrealized losses as of December 30, 2023 and December 31, 2022 were due primarily to changes in market interest rates.

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 December 30, 2023, there were no material declines in the market value of available-for-sale investments due to credit-related factors.

At December 30, 2023 and December 31, 2022, there were no material unrealized gains associated with the Company’s available-for-sale investments.

Level 3 fair value measurements

The following summarizes the activity in Level 3 financial instruments for the year ended December 31, 2022 (in thousands):

Assets


	December 31,
Auction Rate Securities	2022
Beginning balance	$	4,980
Sales ⁽¹⁾		(6,000)
Loss recognized in earnings		300
Gain (loss) included in other comprehensive income (loss)		720
Ending balance	$	—

(1)

On May 31, 2022, the Company sold its prior remaining holding of auction-rate securities for $5.7 million.

Fair values of other financial instruments

Prior to its conversion or redemption in June 2023, the Company’s debt was recorded at cost, but measured at fair value for disclosure purposes. The fair value of the Company’s 2025 Notes was determined using observable market prices. The notes were traded in less active markets and were therefore classified as a Level 2 fair value measurement. As of December 31, 2022, the fair value of the notes was $671.9 million. No notes were outstanding as of December 30, 2023.

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

Significant Accounting Policies

12 Months Ended

Dec. 30, 2023

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 2023, 2022, and 2021 had 52 weeks. Fiscal 2023, 2022 and 2021 ended on December 30, 2023, December 31, 2022, and January 1, 2022, respectively. The accompanying Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All 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 Operations.

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. The Company periodically reviews the assumptions used in its financial statement estimates.

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, 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 available-for-sale securities. Investments in available-for-sale securities are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive loss in the Consolidated Balance Sheet. Investments in 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 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 earnings in the Consolidated Statements of Operations. The Company has elected to use the measurement alternative under Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, 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. In fiscal 2023, the Company sold its ownership in Walden Technology Ventures III, a limited partnership, and recognized the loss in the Consolidated Statement of Operations.

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 five 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 Operations.

Stock-Based Compensation

The Company has stock-based compensation plans, which are more fully described in Note 15, Stock-Based Compensation. The Company accounts for those plans using a fair-value method and recognizes the expense in its Consolidated Statement of Operations.

2. Significant Accounting Policies (Continued)

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 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 17, Income Taxes, for additional information.

Recent Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280)—Improvements to Reportable Segment Disclosures. This ASU requires interim and annual disclosure of significant segment expenses that are regularly provided to the chief operating decision-maker (“CODM”) and included within the reported measure of a segment’s profit or loss, requires interim disclosures about a reportable segment’s profit or loss and assets that are currently required annually, requires disclosure of the position and title of the CODM, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, and contains other disclosure requirements. This authoritative guidance is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the effect of this new guidance on our consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740)—Improvements to Income Tax Disclosures. This ASU requires that reporting entities disclose specific categories in the effective tax rate reconciliation as well as information about income taxes paid. The authoritative guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the effect of this new guidance on our consolidated financial statements.

Income Taxes - Income (loss) from continuing operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2023	Dec. 31, 2022	Jan. 01, 2022
Income before income taxes
Domestic	$ (14,539)	$ 32,088	$ (15,384)
Foreign	(12,034)	97,764	(29,063)
Loss from continuing operations before income taxes	(26,573)	129,852	(44,447)
Current:
Domestic	3,291	52,834	(12,630)
Foreign	15,599	3,856	9,447
Total Current	18,890	56,690	(3,183)
Deferred:
Domestic	(9,036)	(17,728)	17,873
Foreign	(1,911)	(512)	(1,263)
Total Deferred	(10,947)	(18,240)	16,610
Provision for income taxes	$ 7,943	$ 38,450	$ 13,427

Revenues

12 Months Ended

Dec. 30, 2023

Revenues

Revenues

14. Revenues

The Company groups its products as Industrial & Commercial or Home & Life based on the target markets they address. The following represents revenue by product category (in thousands):


	Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
Industrial & Commercial	$	496,578	$	573,725	$	377,401
Home & Life		285,680		450,381		343,459
	$	782,258	$	1,024,106	$	720,860

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 did not recognize any revenue during fiscal 2023 from performance obligations that were satisfied in previous reporting periods, and recognized revenue of $30.1 million and $12.4 million during fiscal 2022 and 2021, 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
	December 30,		December 31,		January 1,
	2023		2022		2022
Distributors	$	611,332	$	829,373	$	584,010
Direct customers		170,926		194,733		136,850
	$	782,258	$	1,024,106	$	720,860

- 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
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

Discontinued Operations (Details) - Discontinued Operations, Disposed of by Sale - Infrastructure and automotive business - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jul. 26, 2021
Discontinued Operations
Asset purchase agreement sale amount		$ 2,750,000
Income from discontinued operations, net of income taxes
Revenues	$ 233,918
Costs of revenues	95,457
Operating expenses	46,643
Operating income from discontinued operations	91,818
Gain on sale of discontinued operations	2,423,161
Income from discontinued operations before income taxes	2,514,979
Provision for income taxes	339,706
Income from discontinued operations	$ 2,175,273
Income from discontinued operations per share:
Basic	$ 50.79
Diluted	$ 49.09

Fair Value of Financial Instruments - Contractual maturities of investments (Details) $ in Thousands	Dec. 30, 2023 USD ($)
Cost
Due in one year or less, Cost	$ 155,431
Due after one year through five years, Cost	57,518
Total Cost	212,949
Fair Value
Due in one year or less, Fair Value	154,349
Due after one year through five years, Fair Value	57,371
Total Fair Value	$ 211,720

Stock-Based Compensation - Weighted average fair value at grant date (Details) - $ / shares	12 Months Ended
	Dec. 30, 2023	Dec. 31, 2022	Jan. 01, 2022
RSAs and RSUs
Stock-Based Compensation
Equity award, weighted average fair value at grant date	$ 137.11	$ 144.40	$ 135.28
PSUs and MSUs
Stock-Based Compensation
Equity award, weighted average fair value at grant date	$ 188.45	$ 160.97	$ 145.11

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2023	Dec. 31, 2022	Jan. 01, 2022
Operating Activities
Net income (loss)	$ (34,516)	$ 91,402	$ 2,117,399
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities of continuing operations:
Income from discontinued operations, net of income taxes	0	0	(2,175,273)
Depreciation of property and equipment	25,707	22,524	18,051
Amortization of other intangible assets	25,374	34,071	44,505
Amortization of debt discount and debt issuance costs	960	2,003	22,767
Loss on extinguishment of convertible debt		3	3,370
Stock-based compensation expense	48,208	60,510	56,842
Equity-method (earnings) loss	16,030	(3,400)	(13,728)
Deferred income taxes	(11,815)	(18,240)	(3,414)
Changes in operating assets and liabilities:
Accounts receivable	42,142	26,876	(3,144)
Inventories	(93,398)	(51,044)	(1,510)
Prepaid expenses and other assets	(10,733)	(31,240)	44,664
Accounts payable	(25,644)	36,797	(7,704)
Other current liabilities and income taxes	(37,793)	(12,738)	2,109
Deferred revenue and returns liability	(4,663)	(7,069)	863
Other non-current liabilities	29,793	(9,181)	(14,599)
Net cash provided by (used in) operating activities of continuing operations	(30,348)	141,274	91,198
Investing Activities
Purchases of marketable securities	(103,485)	(607,237)	(1,541,971)
Sales of marketable securities	395,565	223,354	250,075
Maturities of marketable securities	200,530	650,946	844,966
Purchases of property and equipment	(22,282)	(26,525)	(28,577)
Purchases of other assets	(520)		(1,158)
Net cash provided by (used in) investing activities of continuing operations	469,808	240,538	(476,665)
Financing Activities
Proceeds from issuance of debt	80,000
Payments on debt	(571,157)	(21)	(140,572)
Repurchases of common stock	(217,137)	(883,424)	(1,150,044)
Payment of taxes withheld for vested stock awards	(18,189)	(15,387)	(22,239)
Proceeds from the issuance of common stock	14,612	11,779	14,183
Net cash used in financing activities of continuing operations	(711,871)	(887,053)	(1,298,672)
Discontinued Operations
Operating activities		(69,467)	(191,642)
Investing activities	0	0	2,747,684
Net cash provided by (used in) discontinued operations		(69,467)	2,556,042
Increase (decrease) in cash and cash equivalents	(272,411)	(574,708)	871,903
Cash and cash equivalents at beginning of period	499,915	1,074,623	202,720
Cash and cash equivalents at end of period	227,504	499,915	1,074,623
Supplemental Disclosure of Cash Flow Information:
Interest paid	4,471	4,427	5,010
Income taxes paid	31,713	$ 132,005	$ 266,277
Noncash financing activities:
Issuance of common stock in connection with settlement of convertible debt	$ 148,487

Supplemental Information (Tables)

12 Months Ended

Dec. 30, 2023

Supplemental Information

Schedule of Inventories

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


	December 30,		December 31,
	2023		2022
Work in progress	$	173,802	$	75,112
Finished goods		20,493		25,305
	$	194,295	$	100,417

Schedule of Property and Equipment


	December 30,		December 31,
	2023		2022
Buildings and improvements	$	130,482	$	125,471
Equipment		68,703		62,304
Computers and purchased software		51,755		55,065
Leasehold interest in ground leases		23,840		23,840
Leasehold improvements		14,971		14,209
Furniture and fixtures		9,574		9,909
		299,325		290,798
Accumulated depreciation		(153,435)		(138,782)
	$	145,890	$	152,016

Schedule of Other Assets, net


	December 30,		December 31,
	2023		2022
Equity-method investment ⁽¹⁾	$	—	$	27,478
Other		123,313		67,275
	$	123,313	$	94,753

(1)

Schedule of Other Current Liabilities


	December 30,		December 31,
	2023		2022
Accrued compensation and benefits	$	16,891	$	43,736
Income taxes payable		6,133		11,472
Other		35,931		33,928
	$	58,955	$	89,136

Schedule of Other Non-current Liabilities


	December 30,		December 31,
	2023		2022
Lease liability – non-current	$	19,830	$	18,009
Other		50,974		31,062
	$	70,804	$	49,071

Leases - Maturities of operating lease liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2023	Dec. 31, 2022	Jan. 01, 2022
Maturities of operating lease liabilities
2024	$ 7,772
2025	6,251
2026	4,559
2027	3,737
2028	2,676
Thereafter	6,219
Total lease payments	31,214
Less imputed interest	(4,199)
Total lease liabilities	27,015
Lease income from operating leases	$ 3,100	$ 6,200	$ 4,900
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration]	Selling, General and Administrative Expense	Selling, General and Administrative Expense	Selling, General and Administrative Expense

Debt - Interest expense (Details) - USD ($) $ in Thousands	12 Months Ended
Debt - Interest expense (Details) - USD ($) $ in Thousands	Dec. 30, 2023	Dec. 31, 2022	Jan. 01, 2022
0.625% Convertible Senior Notes (2025 Notes)
Debt
Effective interest rate	5.336%
Unamortized debt issuance costs	$ 0
Convertible Senior Notes
Interest expense related to the notes
Contractual interest expense	1,493	$ 3,346	$ 3,662
Amortization of debt discount			21,112
Amortization of debt issuance costs	960	2,003	1,655
Interest Expense, Total	$ 2,453	$ 5,349	$ 26,429

Share Repurchases

12 Months Ended

Dec. 30, 2023

Share Repurchases

Share Repurchases

13. Share Repurchases

The Company repurchased 1.5 million shares, 6.9 million shares and 6.5 million shares of its common stock for $213.0 million, $887.6 million, and $1.15 billion during fiscal 2023, 2022 and 2021, respectively. Shares repurchased in fiscal 2021 included purchases of 4.0 million shares through a tender offer, 1.7 million shares through an accelerated share repurchase agreement and 0.8 million shares through the Company’s existing share repurchase program.

Debt - Convertible Senior Notes (Details) - 0.625% Convertible Senior Notes (2025 Notes) $ / shares in Units, $ in Thousands, shares in Millions			1 Months Ended
	Jun. 30, 2023 USD ($) shares	Jun. 01, 2020 USD ($) D $ / shares	Jun. 30, 2023 shares	Dec. 30, 2023	Mar. 22, 2023 USD ($)
Debt
Principal amount \| $		$ 535,000			$ 533,600
Semi-annual interest rate (as a percent)		0.625%		0.625%
Conversion rate, shares per $1,000 principal		8.1980
Conversion, number of shares of common stock \| $		4,400
Conversion price per share \| $ / shares		$ 121.98
Debt issuance costs \| $		$ 10,400
Repayment of convertible senior notes including conversions and redemptions \| $	$ 533,600
Number of shares issued in connection with conversion \| shares	0.9		0.9
Payments made in lieu of fractional shares \| $	$ 47
Principal amount were redeemed at par, plus accrued interest \| $	$ 1,400
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%
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

Income Taxes (Tables)

12 Months Ended

Dec. 30, 2023

Income Taxes

Schedule of income (loss) from continuing operations, inclusive of equity-method earnings and before income taxes

Income (loss) from continuing operations, inclusive of equity-method earnings (loss) and before income taxes, includes the following components (in thousands):


	Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
Domestic	$	(14,539)	$	32,088	$	(15,384)
Foreign		(12,034)		97,764		(29,063)
	$	(26,573)	$	129,852	$	(44,447)

Schedule of provision (benefit) for income taxes

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


	Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
Current:
Domestic	$	3,291	$	52,834	$	(12,630)
Foreign		15,599		3,856		9,447
Total Current		18,890		56,690		(3,183)
Deferred:
Domestic		(9,036)		(17,728)		17,873
Foreign		(1,911)		(512)		(1,263)
Total Deferred		(10,947)		(18,240)		16,610

Provision for income taxes	$	7,943	$	38,450	$	13,427

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

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


	Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
Federal statutory rate	21.0	%	21.0	%	21.0	%
Foreign tax rate benefit	(33.2)		(6.2)		(16.4)
(Nondeductible) nontaxable foreign items	(25.5)		4.4		(7.2)
GILTI and Subpart F income, net of foreign tax credits	(24.2)		16.5		(2.4)
Base erosion and anti-abuse tax	(7.4)		—		—
(Nondeductible) nontaxable domestic items	(3.6)		0.7		(2.8)
Foreign withholding taxes	(2.2)		0.4		—
State tax expense	(1.5)		1.2		(0.8)
Change in prior period valuation allowance	(1.5)		(0.3)		(10.5)
Net operating loss not benefited	—		—		(6.0)
Other tax effects of equity compensation	1.1		(0.3)		0.5
Nondeductible officer compensation	1.3		2.0		(10.3)
Excess tax benefit of stock-based compensation	4.0		(1.1)		3.7
Return to provision adjustments	16.5		(2.0)		0.8
Research and development tax credits	26.4		(5.3)		0.1
Other	(1.1)		(1.4)		0.1
Effective tax rate	(29.9)	%	29.6	%	(30.2)	%

Schedule of significant components of deferred taxes

Significant components of the Company’s deferred taxes as of December 30, 2023 and December 31, 2022 were as follows (in thousands):


	December 30,		December 31,
	2023		2022
Deferred tax assets:
Capitalized research and development	$	27,402	$	15,188
Tax credit carryforwards		13,303		13,334
Intangible assets		7,188		7,938
Net operating loss carryforwards		6,911		4,965
Leases		6,584		5,517
Deferred income on shipments to distributors		6,465		6,726
Accrued liabilities		2,859		6,809
Other		3,072		7,118
		73,784		67,595
Less: Valuation allowance		(10,530)		(9,409)
		63,254		58,186

Deferred tax liabilities:
Intangible assets		13,916		13,789
Fixed assets		8,353		8,518
Leases		6,238		5,189
Prepaid expenses and other		4,534		5,637
Unrealized gain on equity-method investment		—		4,120
		33,041		37,253

Net deferred tax assets (liabilities)	$	30,213	$	20,933

Schedule of valuation allowance

The following table summarizes the activity related to the valuation allowance for deferred tax assets (in thousands):


	Balance at		Additions				Balance at
	Beginning of		Charged to				End of
	Period		Expenses		Deductions		Period
Year ended December 30, 2023	$	9,409	$	1,121		—	$	10,530

Year ended December 31, 2022	$	9,529	$	792	$	(912)	$	9,409

Year ended January 1, 2022	$	5,311	$	5,370	$	(1,152)	$	9,529

Schedule of activity related to gross unrecognized tax benefits

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


	Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
Beginning balance	$	4,109	$	3,677	$	2,853
Additions based on tax positions related to current year		737		872		830
Additions based on tax positions related to prior years		22		—		—
Reductions based on tax positions related to prior years		—		(6)		(6)
Reductions for tax positions as a result of a lapse of the applicable statute of limitations		—		(434)		—
Ending balance	$	4,868	$	4,109	$	3,677

Leases - Maturities of lease income (Details) $ in Thousands	Dec. 30, 2023 USD ($)
Maturities of lease income
2024	$ 2,481
2025	1,919
2026	1,322
2027	439
2028	452
Thereafter	$ 233

Stock-Based Compensation - 2009 ESPP (Details) - 2009 Employee Stock Purchase Plan - $ / shares shares in Thousands	12 Months Ended
	Dec. 30, 2023	Dec. 31, 2022	Jan. 01, 2022
Stock-Based Compensation
Shares issued to employees under the plan	154,000	109,000	146,000
Weighted average fair value for purchase rights granted (in dollars per share)	$ 27.81

Revenues (Tables)

12 Months Ended

Dec. 30, 2023

Revenues

Schedule of disaggregation of revenue

The following represents revenue by product category (in thousands):


	Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
Industrial & Commercial	$	496,578	$	573,725	$	377,401
Home & Life		285,680		450,381		343,459
	$	782,258	$	1,024,106	$	720,860

The following disaggregates the Company’s revenue by sales channel (in thousands):


	Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
Distributors	$	611,332	$	829,373	$	584,010
Direct customers		170,926		194,733		136,850
	$	782,258	$	1,024,106	$	720,860

Stock-Based Compensation - Stock awards activity (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 30, 2023	Dec. 31, 2022	Jan. 01, 2022
Shares
Outstanding at the beginning of the year (in shares)	118
Exercised (in shares)	24
Outstanding at the end of the year (in shares)	94	118
Vested and expected to vest at the end of the year (in shares)	94
Exercisable at the end of the year (in shares)	94
Weighted-Average Exercise Price
Outstanding at the beginning of the year (in dollars per share)	$ 38.80
Exercised (in dollars per share)	37.88
Outstanding at the end of the year (in dollars per share)	39.03	$ 38.80
Vested and expected to vest at the end of the year (in dollars per share)	39.03
Exercisable at the end of the year (in dollars per share)	$ 39.03
Weighted-Average Remaining Contractual Term (In years)
Outstanding at the end of the year	2 years 1 month 13 days	3 years 1 month 13 days
Vested and expected to vest at the end of the year	2 years 1 month 13 days
Exercisable at the end of the year	2 years 1 month 13 days
Aggregate Intrinsic Value
Outstanding at the end of the year (in dollars)	$ 8,790	$ 11,457
Exercised (in dollars)	2,162		$ 986
Vested and expected to vest at the end of the year (in dollars)	8,790
Options exercisable at the end of the year (in dollars)	$ 8,790

Employee Benefit Plan (Details) - USD ($) $ in Millions	12 Months Ended
Employee Benefit Plan (Details) - USD ($) $ in Millions	Dec. 30, 2023	Dec. 31, 2022	Jan. 01, 2022
Employee Benefit Plan
Contributions made to the 401(k) Plan	$ 3.3	$ 3.2	$ 3.5

Risks and Uncertainties (Details)	12 Months Ended
Risks and Uncertainties (Details)	Dec. 30, 2023	Dec. 31, 2022	Jan. 01, 2022
Accounts receivable \| Customers \| Arrow Electronics
Risks and Uncertainties
Concentrations of credit risk (as a percent)		29.00%
Accounts receivable \| Customers \| Other
Risks and Uncertainties
Concentrations of credit risk (as a percent)	13.00%
Revenue \| Distributors \| Arrow Electronics
Risks and Uncertainties
Concentrations of credit risk (as a percent)	34.00%	33.00%	28.00%
Revenue \| Distributors \| Edom Technology
Risks and Uncertainties
Concentrations of credit risk (as a percent)	15.00%	17.00%	18.00%
Revenue \| Distributors \| Sekorm
Risks and Uncertainties
Concentrations of credit risk (as a percent)			12.00%

Debt (Tables)

12 Months Ended

Dec. 30, 2023

Debt

Schedule of components of interest expense

Interest expense related to the Company’s convertible debt was comprised of the following (in thousands):


	Year Ended
		December 30,	December 31,		January 1,
		2023	2022		2022
Contractual interest expense	$	1,493	$	3,346	$	3,662
Amortization of debt discount		—		—		21,112
Amortization of debt issuance costs		960		2,003		1,655
	$	2,453	$	5,349	$	26,429

Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		1 Months Ended	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2023	Dec. 30, 2023	Dec. 31, 2022	Jan. 01, 2022	Jun. 01, 2020
Earnings Per Share
Income (loss) from continuing operations			$ (34,516)	$ 91,402	$ (57,874)
Shares used in computing basic earnings per share			31,804	35,086	42,830
Effect of dilutive securities:
Stock-based awards and convertible debt				956
Shares used in computing diluted earnings (loss) per share			31,804	36,042	42,830
Earnings (loss) per share:
Basic			$ (1.09)	$ 2.61	$ (1.35)
Diluted			$ (1.09)	$ 2.54	$ (1.35)
Shares excluded from calculation of diluted shares due to loss from continuing operations			900		1,500
Shares attributable to dilutive effect of conversion of debt securities				600
0.625% Convertible Senior Notes (2025 Notes)
Earnings (loss) per share:
Interest rate (as a percent)			0.625%			0.625%
Repayment of convertible senior notes		$ 535,000
Number of shares issued in connection with conversion	900	900