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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Jan. 02, 2016	Jan. 26, 2016	Jul. 02, 2015
Document and Entity Information
Entity Registrant Name	SILICON LABORATORIES INC
Entity Central Index Key	0001038074
Document Type	10-K
Document Period End Date	Jan. 02, 2016
Amendment Flag	false
Current Fiscal Year End Date	--01-02
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 2,239,112,519
Entity Common Stock, Shares Outstanding		41,554,116
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY

Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 02, 2016	Jan. 03, 2015
Current assets:
Cash and cash equivalents	$ 114,085	$ 141,706
Short-term investments	128,901	193,489
Accounts receivable, net of allowances for doubtful accounts of $671 at January 2, 2016 and $786 at January 3, 2015	73,601	70,367
Inventories	53,895	52,631
Deferred income taxes		21,173
Prepaid expenses and other current assets	52,658	49,171
Total current assets	423,140	528,537
Long-term investments	7,126	7,419
Property and equipment, net	131,132	132,820
Goodwill	272,722	228,781
Other intangible assets, net	121,354	115,021
Other assets, net	55,989	29,983
Total assets	1,011,463	1,042,561
Current liabilities:
Accounts payable	42,127	38,922
Current portion of long-term debt	10,000	10,000
Accrued expenses	52,131	73,646
Deferred income on shipments to distributors	35,448	38,662
Income taxes	2,615	2,084
Total current liabilities	142,321	163,314
Long-term debt	67,500	77,500
Other non-current liabilities	40,528	43,691
Total liabilities	250,349	284,505
Commitments and contingencies
Stockholders' equity:
Preferred stock-$0.0001 par value; 10,000 shares authorized; no shares issued and outstanding
Common stock-$0.0001 par value; 250,000 shares authorized; 41,727 and 42,225 shares issued and outstanding at January 2, 2016 and January 3, 2015, respectively	4	4
Additional paid-in capital	13,868	29,501
Retained earnings	747,749	728,633
Accumulated other comprehensive loss	(507)	(82)
Total stockholders' equity	761,114	758,056
Total liabilities and stockholders' equity	$ 1,011,463	$ 1,042,561

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jan. 02, 2016	Jan. 03, 2015
Consolidated Balance Sheets
Accounts receivable, allowances for doubtful accounts (in dollars)	$ 671	$ 786
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
Preferred stock, shares outstanding	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	41,727	42,225
Common stock, shares outstanding	41,727	42,225

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Consolidated Statements of Income
Revenues	$ 644,826	$ 620,704	$ 580,087
Cost of revenues	264,056	242,153	227,183
Gross margin	380,770	378,551	352,904
Operating expenses:
Research and development	188,050	172,985	157,799
Selling, general and administrative	160,486	154,145	130,795
Operating expenses	348,536	327,130	288,594
Operating income	32,234	51,421	64,310
Other income (expense):
Interest income	730	1,007	853
Interest expense	(2,828)	(3,154)	(3,293)
Other income (expense), net	127	(234)	157
Income before income taxes	30,263	49,040	62,027
Provision for income taxes	677	11,019	12,208
Net income	$ 29,586	$ 38,021	$ 49,819
Earnings per share:
Basic (in dollars per share)	$ 0.70	$ 0.88	$ 1.17
Diluted (in dollars per share)	$ 0.69	$ 0.87	$ 1.14
Weighted-average common shares outstanding:
Basic (in shares)	42,309	42,970	42,715
Diluted (in shares)	42,945	43,793	43,537

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Consolidated Statements of Comprehensive Income
Net income	$ 29,586	$ 38,021	$ 49,819
Net changes to available-for-sale securities
Unrealized gains (losses) arising during the period	(425)	1,107	(535)
Reclassification for (gains) losses included in net income	10		(232)
Net changes to cash flow hedges
Unrealized gains (losses) arising during the period	(728)	(799)	611
Reclassification for losses included in net income	489	618	560
Other comprehensive income (loss), before tax	(654)	926	404
Provision (benefit) for income taxes	(229)	324	142
Other comprehensive income (loss)	(425)	602	262
Comprehensive income	$ 29,161	$ 38,623	$ 50,081

Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Total
Balance at Dec. 29, 2012	$ 4	$ 10,122	$ 640,793	$ (946)	$ 649,973
Balance (in shares) at Dec. 29, 2012	41,879
Increase (Decrease) in Stockholders' Equity
Net income			49,819		49,819
Other comprehensive income (loss)				262	262
Stock issuances under employee plans, net of shares withheld for taxes		15,301			15,301
Stock issuances under employee plans, net of shares withheld for taxes (in shares)	1,057
Income tax benefit (shortfall) from stock-based awards		(772)			(772)
Repurchase of common stock		(26,022)			(26,022)
Repurchase of common stock (in shares)	(661)
Stock-based compensation		30,753			30,753
Stock issued in business combination		19,248			19,248
Stock issued in business combination (in shares)	504
Balance at Dec. 28, 2013	$ 4	48,630	690,612	(684)	738,562
Balance (in shares) at Dec. 28, 2013	42,779
Increase (Decrease) in Stockholders' Equity
Net income			38,021		38,021
Other comprehensive income (loss)				602	602
Stock issuances under employee plans, net of shares withheld for taxes		13,320			13,320
Stock issuances under employee plans, net of shares withheld for taxes (in shares)	1,124
Income tax benefit (shortfall) from stock-based awards		120			120
Repurchase of common stock		(71,676)			(71,676)
Repurchase of common stock (in shares)	(1,678)
Stock-based compensation		39,107			39,107
Balance at Jan. 03, 2015	$ 4	29,501	728,633	(82)	$ 758,056
Balance (in shares) at Jan. 03, 2015	42,225				42,225
Increase (Decrease) in Stockholders' Equity
Net income			29,586		$ 29,586
Other comprehensive income (loss)				(425)	(425)
Stock issuances under employee plans, net of shares withheld for taxes		3,128			3,128
Stock issuances under employee plans, net of shares withheld for taxes (in shares)	1,152
Income tax benefit (shortfall) from stock-based awards		(613)			(613)
Repurchase of common stock		(60,978)	(10,470)		(71,448)
Repurchase of common stock (in shares)	(1,650)
Stock-based compensation		42,830			42,830
Balance at Jan. 02, 2016	$ 4	$ 13,868	$ 747,749	$ (507)	$ 761,114
Balance (in shares) at Jan. 02, 2016	41,727				41,727

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Operating Activities
Net income	$ 29,586	$ 38,021	$ 49,819
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation of property and equipment	12,517	12,561	13,491
Amortization of other intangible assets and other assets	29,131	17,923	15,911
Stock-based compensation expense	42,791	39,067	30,800
Income tax benefit (shortfall) from stock-based awards	469	489	(606)
Excess income tax benefit from stock-based awards	(2,497)	(632)	(290)
Deferred income taxes	(2,136)	3,054	3,319
Changes in operating assets and liabilities:
Accounts receivable	1,702	1,757	8,972
Inventories	2,093	(7,170)	5,588
Prepaid expenses and other assets	(870)	9,332	(2,514)
Accounts payable	6,662	11,475	(3,979)
Accrued expenses	1,682	27,671	463
Deferred income on shipments to distributors	(5,298)	7,809	(2,381)
Income taxes	776	(3,371)	5,189
Other non-current liabilities	(11,161)	(20,543)	(3,632)
Net cash provided by operating activities	105,447	137,443	120,150
Investing Activities
Purchases of available-for-sale investments	(107,366)	(166,094)	(213,883)
Proceeds from sales and maturities of available-for-sale investments	171,831	156,520	210,824
Purchases of property and equipment	(11,268)	(11,225)	(10,472)
Purchases of other assets	(6,399)	(5,514)	(5,939)
Acquisition of business, net of cash acquired	(96,112)		(86,441)
Net cash used in investing activities	(49,314)	(26,313)	(105,911)
Financing Activities
Proceeds from issuance of common stock, net of cash paid for withheld taxes	3,129	13,320	15,301
Excess income tax benefit from stock-based awards	2,497	632	290
Repurchases of common stock	(71,448)	(71,676)	(26,022)
Payment of acquisition-related contingent consideration	(4,464)
Proceeds from issuance of long-term debt, net	81,238
Payments on debt	(94,706)	(7,500)	(13,434)
Net cash used in financing activities	(83,754)	(65,224)	(23,865)
Increase (decrease) in cash and cash equivalents	(27,621)	45,906	(9,626)
Cash and cash equivalents at beginning of period	141,706	95,800	105,426
Cash and cash equivalents at end of period	114,085	141,706	95,800
Supplemental Disclosure of Cash Flow Information:
Interest paid	2,470	2,950	2,925
Income taxes paid	$ 2,157	$ 11,587	3,838
Supplemental Disclosure of Non-Cash Activity:
Stock issued in business combination			$ 19,248

Description of Business	12 Months Ended
Description of Business	Jan. 02, 2016
Description of Business
Description of Business	1. Description of Business Silicon Laboratories Inc. (the "Company"), a Delaware corporation, is a provider of silicon, software and solutions for the Internet of Things (IoT), Internet infrastructure, industrial control, consumer and automotive markets. Within the semiconductor industry, the Company is known as a "fabless" company meaning that the integrated circuits (ICs) incorporated in its products are manufactured by third-party foundry semiconductor companies.

Significant Accounting Policies	12 Months Ended
Significant Accounting Policies	Jan. 02, 2016
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 2015 had 52 weeks and ended on January 2, 2016. Fiscal 2014 had 53 weeks with the extra week occurring in the fourth quarter of the year and ended on January 3, 2015. Fiscal 2013 had 52-weeks and ended on December 28, 2013. The accompanying Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Foreign Currency Transactions The Company's foreign subsidiaries are considered to be extensions of the U.S. Company. The functional currency of the foreign subsidiaries is the U.S. dollar. Accordingly, gains and losses resulting from remeasuring transactions denominated in currencies other than U.S. dollars are included in other income (expense), net in the Consolidated Statements of Income. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Among the significant estimates affecting the financial statements are those related to inventories, stock-based compensation, investments in auction-rate securities, acquired intangible assets, goodwill, long-lived assets and income taxes. Actual results could differ from those estimates, and such differences could be material to the financial statements. Reclassifications Certain reclassifications have been made to prior year financial statements to conform to current year presentation. Fair Value of Financial Instruments The fair values of the Company's financial instruments are recorded using a hierarchal disclosure framework based upon the level of subjectivity of the inputs used in measuring assets and liabilities. The three levels are described below: Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2—Inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3—Inputs are unobservable for the asset or liability and are developed based on the best information available in the circumstances, which might include the Company's own data. Cash and Cash Equivalents Cash and cash equivalents 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 either available-for-sale or trading securities. Investments in available-for-sale securities are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive loss in the Consolidated Balance Sheet. Investments in trading securities are reported at fair value, with both realized and unrealized gains and losses recorded in other income (expense), net in the Consolidated Statement of Income. Investments in which the Company has the ability and intent, if necessary, to liquidate in order to support its current operations (including those with contractual maturities greater than one year from the date of purchase) are classified as short-term. The Company reviews its available-for-sale investments as of the end of each reporting period for other-than-temporary declines in fair value based on the specific identification method. The Company considers various factors in determining whether an impairment is other-than-temporary, including the severity and duration of the impairment, changes in underlying credit ratings, forecasted recovery, its intent to sell or the likelihood that it would be required to sell the investment before its anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. When the Company concludes that an other-than-temporary impairment has occurred, the Company assesses whether it intends to sell the security or if it is more likely than not that it will be required to sell the security before recovery. If either of these two conditions is met, the Company recognizes a charge in earnings equal to the entire difference between the security's amortized cost basis and its fair value. If the Company does not intend to sell a security and it is not more likely than not that it will be required to sell the security before recovery, the unrealized loss is separated into an amount representing the credit loss, which is recognized in earnings, and the amount related to all other factors, which is recorded in accumulated other comprehensive loss. In addition, the Company has made equity investments in non-publicly traded companies that it accounts for under the cost method. The Company periodically reviews these investments for other-than-temporary declines in fair value based on the specific identification method and writes down investments to their fair values when it determines that an other-than-temporary decline has occurred. Derivative Financial Instruments The Company uses derivative financial instruments to manage certain exposures to the variability of interest rates and 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 uses interest rate swap agreements to manage exposure to interest rate risks. The swap agreements are designated and qualify as cash flow hedges. The effective portion of the gain or loss on the interest rate swaps is recorded in accumulated other comprehensive loss as a separate component of stockholders' equity and is subsequently recognized as interest expense in the Consolidated Statement of Income when the hedged exposure affects earnings. The Company uses foreign currency forward contracts to manage exposure to foreign exchange risk. These instruments are used 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 other income (expense), net in the Consolidated Statement of Income in the same period as the remeasurement loss and gain of the related foreign currency denominated asset or liability. The Company does not apply hedge accounting to its foreign currency derivative instruments. Inventories Inventories are stated at the lower of cost, determined using the first-in, first-out method, or market. 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 seven years. Leasehold improvements are depreciated over the contractual lease period or their useful life, whichever is shorter. In fiscal 2012, the Company purchased the facilities it had previously leased for its headquarters in Austin, Texas. The buildings are located on land which is leased through 2099 from a third party. The rents for these ground leases were prepaid for the term of the leases by the previous lessee. The buildings and leasehold interest in ground leases are being depreciated on a straight-line basis over their estimated useful lives of 40 years and 86 years, respectively. Business Combinations The Company records business combinations using the acquisition method of accounting and, accordingly, allocates the fair value of purchase consideration to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of the assets acquired and liabilities assumed is recorded as goodwill. The results of operations of the businesses acquired are included in the Company's consolidated results of operations beginning on the date of the acquisition. Long-Lived Assets 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 one to twelve years. Fair values are determined primarily using the income approach, in which the Company projects future expected cash flows and applies an appropriate discount rate. Long-lived assets "held and used" by the Company are reviewed for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets and is recorded in the period in which the determination was made. The carrying value of goodwill is reviewed at least annually by the Company for possible impairment. The goodwill impairment test is a two-step process. The first step of the impairment analysis compares the fair value of the reporting unit to the net book value of the reporting unit. In determining fair value, several valuation methodologies are allowed, although quoted market prices are the best evidence of fair value. If the results of the first step demonstrate that the net book value is greater than the fair value, the Company must proceed to step two of the analysis. Step two of the analysis compares the implied fair value of goodwill to its carrying amount. If the carrying amount of goodwill exceeds its implied fair value, an impairment loss is recognized equal to that excess. The Company tests goodwill for impairment annually as of the first day of its fourth fiscal quarter and in interim periods if events occur that would indicate that the carrying value of goodwill may be impaired. Revenue Recognition Revenues are generated predominately by sales of the Company's products. The Company recognizes revenue when all of the following criteria are met: 1) there is persuasive evidence that an arrangement exists, 2) delivery of goods has occurred, 3) the sales price is fixed or determinable, and 4) collectibility is reasonably assured. Generally, revenue from product sales to direct customers and contract manufacturers is recognized upon shipment. A portion of the Company's sales are made to distributors under agreements allowing certain rights of return and price protection related to the final selling price to the end customers. Accordingly, the Company defers revenue and cost of revenue on such sales until the distributors sell the product to the end customers. The net balance of deferred revenue less deferred cost of revenue associated with inventory shipped to a distributor but not yet sold to an end customer is recorded in the deferred income on shipments to distributors liability on the Consolidated Balance Sheet. Such net deferred income balance reflects the Company's estimate of the impact of rights of return and price protection. A small portion of the Company's revenues is derived from the sale of patents. The above revenue recognition criteria for patent sales are generally met upon the execution of the patent sale agreement. Shipping and Handling Shipping and handling costs are classified as a component of cost of revenues in the Consolidated Statements of Income. Stock-Based Compensation The Company has stock-based compensation plans, which are more fully described in Note 13, Stock-Based Compensation. The Company accounts for those plans using a fair-value method and recognizes the expense in its Consolidated Statement of Income. Research and Development Research and development costs are expensed as incurred. Research and development expense consists primarily of personnel-related expenses, including stock-based compensation, as well as new product masks, external consulting and services costs, equipment tooling, equipment depreciation, amortization of intangible assets, and an allocated portion of our occupancy costs. Assets purchased to support the Company's ongoing research and development activities are capitalized when related to products which have achieved technological feasibility or have an alternative future use, and are amortized over their estimated useful lives. Advertising Advertising costs are expensed as incurred. Advertising expenses were $1.8 million, $1.7 million and $2.0 million in fiscal 2015, 2014 and 2013, respectively. Income Taxes The Company accounts for income taxes using the asset and liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax laws and related rates that will be in effect when the differences are expected to reverse. These differences result in deferred tax assets and liabilities, which are included in the Company's Consolidated Balance Sheet. The Company then assesses the likelihood that the deferred tax assets will be realized. A valuation allowance is established against deferred tax assets to the extent the Company believes that it is more likely than not that the deferred tax assets will not be realized, taking into consideration the level of historical taxable income and projections for future taxable income over the periods in which the temporary differences are deductible. Uncertain tax positions must meet a more-likely-than-not threshold to be recognized in the financial statements and the tax benefits recognized are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon final settlement. See Note 17, Income Taxes, for additional information. Recent Accounting Pronouncements In November 2015, the Financial Accounting Standards Board (FASB) issued FASB Accounting Standards Update (ASU) No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. The amendments in this update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This ASU is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted as of the beginning of an interim or annual reporting period. The Company early adopted this ASU on a prospective basis in the fourth quarter of fiscal 2015. Prior periods were not retrospectively adjusted. In September 2015, the FASB issued FASB ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. The amendments in this update require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period with a corresponding adjustment to goodwill in the reporting period in which the adjustment amounts are determined. The effect on earnings of changes in depreciation, amortization or other income effects, if any, as a result of the change to the provisional amounts will be recorded in the same period's financial statements, calculated as if the accounting had been completed at the acquisition date. This ASU is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in this update should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update with earlier application permitted for financial statements that have not been issued. The Company early adopted this ASU in the fourth quarter of fiscal 2015. The adoption did not have a material impact on its financial statements. In July 2015, the FASB issued FASB ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. The amendments in this update require inventory to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments in this update should be applied prospectively with earlier application permitted. The Company does not expect that the adoption of this ASU will have a material impact on its financial statements. In April 2015, the FASB issued FASB ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in this update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. ASU 2015-03 is to be applied retrospectively and represents a change in accounting principle. In August 2015, the FASB issued FASB ASU No. 2015-15, Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. ASU 2015-15 clarified the presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. Such costs may be presented in the balance sheet as an asset and subsequently amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. ASU 2015-03 and ASU 2015-15 are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. Earlier adoption is permitted for financial statements that have not been previously issued. The Company does not expect that the adoption of ASU 2015-03 and ASU 2015-15 will have a material impact on its financial statements. In May 2014, the FASB issued FASB ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a five-step process to achieve that core principle. ASU 2014-09 requires disclosures enabling users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. In August 2015, the FASB issued FASB ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which deferred the effective date of ASU 2014-09 by one year. ASU 2014-09 is now effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, using one of two retrospective application methods. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the effect that the adoption of ASU 2014-09 and ASU 2015-14 will have on its financial statements.

Earnings Per Share

12 Months Ended

Jan. 02, 2016

Earnings Per Share

Earnings Per Share

3. Earnings Per Share

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


	Year Ended
	January 2, 2016		January 3, 2015		December 28, 2013
Net income	$	29,586	$	38,021	$	49,819

Shares used in computing basic earnings per share		42,309		42,970		42,715
Effect of dilutive securities:
Stock options and other stock-based awards		636		823		822

Shares used in computing diluted earnings per share		42,945		43,793		43,537



Earnings per share:
Basic	$	0.70	$	0.88	$	1.17
Diluted	$	0.69	$	0.87	$	1.14

For fiscal years ended January 2, 2016, January 3, 2015 and December 28, 2013, approximately 0.1 million, 0.1 million and 0.4 million shares, respectively, were not included in the diluted earnings per share calculation since the shares were anti-dilutive.

Cash, Cash Equivalents and Investments

12 Months Ended

Jan. 02, 2016

Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments

4. Cash, Cash Equivalents and Investments

The Company's cash equivalents and short-term investments as of January 2, 2016 consisted of municipal bonds, money market funds, commercial paper, certificates of deposit, variable-rate demand notes, U.S. government agency, international government bonds and corporate bonds. The Company's long-term investments consisted of auction-rate securities. In fiscal 2008, auctions for many of the Company's auction-rate securities failed because sell orders exceeded buy orders. As of January 2, 2016, the Company held $8.0 million par value auction-rate securities, all of which have experienced failed auctions. The underlying assets of the securities consisted of student loans and municipal bonds, of which $6.0 million were guaranteed by the U.S. government and the remaining $2.0 million were privately insured. As of January 2, 2016, $6.0 million of the auction-rate securities had credit ratings of AA and $2.0 million had a credit rating of A. These securities have contractual maturity dates ranging from 2033 to 2046 at January 2, 2016. The Company is receiving the underlying cash flows on all of its auction-rate securities. The principal amounts associated with failed auctions are not expected to be accessible until a successful auction occurs, the issuer redeems the securities, a buyer is found outside of the auction process or the underlying securities mature. The Company is unable to predict if these funds will become available before their maturity dates.

The Company does not expect to need access to the capital represented by any of its auction-rate securities prior to their maturities. The Company does not intend to sell, and believes it is not more likely than not that it will be required to sell, its auction-rate securities before their anticipated recovery in market value or final settlement at the underlying par value. The Company believes that the credit ratings and credit support of the security issuers indicate that they have the ability to settle the securities at par value. As such, the Company has determined that no other-than-temporary impairment losses existed as of January 2, 2016.

The Company's cash, cash equivalents and investments consisted of the following (in thousands):


	January 2, 2016
	Cost		Gross Unrealized Losses			Gross Unrealized Gains		Fair Value
Cash and Cash Equivalents:
Cash on hand	$	59,071	$	—		$	—	$	59,071
Available-for-sale securities:							—
Money market funds		37,721		—			—		37,721
Commercial Paper		11,272		—			—		11,272
Certificates of deposit		2,845		—			—		2,845
U.S. government agency		1,599		—			—		1,599
Municipal bond		1,576		—			1		1,577

Total available-for-sale securities		55,013		—			1		55,014

Total cash and cash equivalents	$	114,084	$	—		$	1	$	114,085



Short-term Investments:
Available-for-sale securities:
Municipal bonds	$	93,506	$	(32	)	$	42	$	93,516
Commercial Paper		11,176		—			—		11,176
Variable-rate demand notes		8,995		—			—		8,995
Certificates of deposit		8,000		—			—		8,000
U.S. government agency		3,997		—			1		3,998
International government bonds		2,227		(7	)		—		2,220
Corporate bonds		999		(3	)		—		996

Total short-term investments	$	128,900	$	(42	)	$	43	$	128,901



Long-term Investments:
Available-for-sale securities:
Auction rate securities	$	8,000	$	(874	)	$	—	$	7,126

Total long-term investments	$	8,000	$	(874	)	$	—	$	7,126


	January 3, 2015
	Cost		Gross Unrealized Losses			Gross Unrealized Gains		Fair Value
Cash and Cash Equivalents:
Cash on hand	$	52,144	$	—		$	—	$	52,144
Available-for-sale securities:
Money market funds		71,415		—			—		71,415
Certificates of deposit		7,739		—			—		7,739
Commercial paper		5,348		—			—		5,348
Municipal bonds		1,756		—			1		1,757
U.S. government agency		1,202		—			—		1,202
Corporate bonds		1,101		—			—		1,101
U.S. government bonds		1,000		—			—		1,000

Total available-for-sale securities		89,561		—			1		89,562

Total cash and cash equivalents	$	141,705	$	—		$	1	$	141,706



Short-term Investments:
Available-for-sale securities:
Municipal bonds	$	129,005	$	(25	)	$	172	$	129,152
Corporate bonds		33,043		(35	)		25		33,033
Variable-rate demand notes		12,915		—			—		12,915
Commercial paper		8,995		—			—		8,995
Asset-backed securities		5,380		(3	)		—		5,377
International government bonds		2,526		(10	)		—		2,516
U.S. government bonds		650		—			—		650
U.S. government agency		601		—			—		601
Certificates of deposit		250		—			—		250

Total short-term investments	$	193,365	$	(73	)	$	197	$	193,489



Long-term Investments:
Available-for-sale securities:
Auction rate securities	$	8,000	$	(581	)	$	—	$	7,419

Total long-term investments	$	8,000	$	(581	)	$	—	$	7,419

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


	Less Than 12 Months					12 Months or Greater					Total
As of January 2, 2016	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Municipal bonds	$	29,271	$	(30	)	$	1,198	$	(2	)	$	30,469	$	(32	)
Auction rate securities		—		—			7,126		(874	)		7,126		(874	)
International government bonds		2,220		(7	)		—		—			2,220		(7	)
Corporate bonds		996		(3	)		—		—			996		(3	)

	$	32,487	$	(40	)	$	8,324	$	(876	)	$	40,811	$	(916	)


	Less Than 12 Months					12 Months or Greater					Total
As of January 3, 2015	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Municipal bonds	$	23,735	$	(25	)	$	—	$	—		$	23,735	$	(25	)
Corporate bonds		20,327		(35	)		—		—			20,327		(35	)
Auction rate securities		—		—			7,419		(581	)		7,419		(581	)
Asset-backed securities		5,080		(3	)		—		—			5,080		(3	)
International government bond		2,516		(10	)		—		—			2,516		(10	)

	$	51,658	$	(73	)	$	7,419	$	(581	)	$	59,077	$	(654	)

The gross unrealized losses as of January 2, 2016 and January 3, 2015 were due primarily to the illiquidity of the Company's auction-rate securities and, to a lesser extent, to changes in market interest rates.

The following summarizes the contractual underlying maturities of the Company's available-for-sale investments at January 2, 2016 (in thousands):


	Cost		Fair Value
Due in one year or less	$	150,455	$	150,477
Due after one year through ten years		26,113		26,093
Due after ten years		15,345		14,471

	$	191,913	$	191,041

Derivative Financial Instruments

12 Months Ended

Jan. 02, 2016

Derivative Financial Instruments

Derivative Financial Instruments

5. Derivative Financial Instruments

The Company uses derivative financial instruments to manage certain exposures to the variability of interest rates and 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.

Interest Rate Swaps

The Company is exposed to interest rate fluctuations in the normal course of its business, including through its Credit Facilities. The interest payments on the facility are calculated using a variable-rate of interest. The Company has entered into an interest rate swap agreement with an original notional value of $100 million (equal to the full amount borrowed under the Credit Facilities) and, effectively, converted the Eurodollar portion of the variable-rate interest payments to fixed-rate interest payments through July 2017.

The Company estimates the fair values of interest rate swaps based on quoted prices and market observable data of similar instruments. If the Credit Facilities or the interest rate swap agreement is terminated prior to maturity, the fair value of the interest rate swap recorded in accumulated other comprehensive loss may be recognized in the Consolidated Statement of Income based on an assessment of the agreements at the time of termination. The Company did not discontinue any cash flow hedges in any of the periods presented.

The Company measures the effectiveness of its cash flow hedge by comparing the change in fair value of the hedged variable interest payments with the change in fair value of the interest rate swap. The Company recognizes ineffective portions of the hedge, as well as amounts not included in the assessment of effectiveness, in the Consolidated Statement of Income. As of January 2, 2016, no portion of the gains or losses from the Company's hedging instrument was excluded from the assessment of effectiveness. Hedge ineffectiveness was not material for any of the periods presented.

The Company's derivative financial instrument in cash flow hedging relationships consisted of the following (in thousands):


		Fair Value
	Balance Sheet Location	January 2, 2016		January 3, 2015
Interest rate swap	Other assets, net	$	92	$	331

The before-tax effect of derivative instruments in cash flow hedging relationships was as follows (in thousands):


	Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) during the Year Ended								Location of Loss Reclassified into Income	Loss Reclassified from Accumulated OCI into Income (Effective Portion) during the Year Ended
	January 2, 2016			January 3, 2015			December 28, 2013			January 2, 2016			January 3, 2015			December 28, 2013
Interest rate swaps	$	(728	)	$	(799	)	$	611	Interest expense	$	(489	)	$	(618	)	$	(560	)

The Company expects to reclassify $0.1 million of its interest rate swap losses included in accumulated other comprehensive loss as of January 2, 2016 into earnings in the next 12 months, which would be offset by lower interest payments.

Foreign Currency Forward Contracts

The Company uses foreign currency forward contracts to manage exposure to foreign exchange risk. As of January 2, 2016 and January 3, 2015, the Company held one foreign currency forward contract denominated in Norwegian Krone with a notional value of $5.1 million and $7.7 million, respectively. The fair value of the contracts was not material as of January 2, 2016 or January 3, 2015. The contract held as of January 2, 2016 has a maturity date of March 30, 2016 and it was not designated as a hedging instrument. The Company held no foreign currency forward contracts prior to fiscal 2014.

The before-tax effect of derivative instruments not designated as hedging instruments was as follows (in thousands):


	Year Ended
Gain Recognized in Income	January 2, 2016		January 3, 2015		Location
Foreign currency forward contracts	$	935	$	1,075	Other income (expense), net

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5579240-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-Topic 815
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Topic 815
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-Section 50
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624258-113959

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5708773-113959

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 4A
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
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Reference 17: http://www.xbrl.org/2003/role/presentationRef
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Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-Topic 815
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-URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41638-113959

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

Fair Value of Financial Instruments

12 Months Ended

Jan. 02, 2016

Fair Value of Financial Instruments

Fair Value of Financial Instruments

6. Fair Value of Financial Instruments

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


	Fair Value Measurements at January 2, 2016 Using
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Cash Equivalents:
Money market funds	$	37,721	$	—	$	—	$	37,721
Commercial paper		—		11,272		—		11,272
Certificates of deposit		—		2,845		—		2,845
U.S. government agency		—		1,599		—		1,599
Municipal bonds		—		1,577		—		1,577

Total cash equivalents	$	37,721	$	17,293	$	—	$	55,014
Short-term Investments:
Municipal bonds	$	—	$	93,516	$	—	$	93,516
Commercial paper		—		11,176		—		11,176
Variable-rate demand notes		—		8,995		—		8,995
Certificates of deposit		—		8,000		—		8,000
U.S. government agency		—		3,998		—		3,998
International government bonds		—		2,220		—		2,220
Corporate bonds		—		996		—		996

Total short-term investments	$	—	$	128,901	$	—	$	128,901
Long-term Investments:
Auction rate securities	$	—	$	—	$	7,126	$	7,126

Total long-term investments	$	—	$	—	$	7,126	$	7,126
Other assets, net:
Derivative instruments	$	—	$	92	$	—	$	92

Total	$	—	$	92	$	—	$	92

Total	$	37,721	$	146,286	$	7,126	$	191,133



Liabilities:
Accrued expenses:
Contingent consideration	$	—	$	—	$	4,749	$	4,749
Other non-current liabilities:
Contingent consideration	$	—	$	—	$	9,324	$	9,324

Total	$	—	$	—	$	14,073	$	14,073


	Fair Value Measurements at January 3, 2015 Using
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Cash Equivalents:
Money market funds	$	71,415	$	—	$	—	$	71,415
Certificates of deposit		—		7,739		—		7,739
Commercial paper		—		5,348		—		5,348
Municipal bonds		—		1,757		—		1,757
U.S. government agency		—		1,202		—		1,202
Corporate bonds		—		1,101		—		1,101
U.S. government bonds		1,000		—		—		1,000

Total cash equivalents	$	72,415	$	17,147	$	—	$	89,562
Short-term Investments:
Municipal bonds	$	—	$	129,152	$	—	$	129,152
Corporate bonds		—		33,033		—		33,033
Variable-rate demand notes		—		12,915		—		12,915
Commercial paper		—		8,995		—		8,995
Asset-backed securities		—		5,377		—		5,377
International government bonds		—		2,516		—		2,516
U.S. government bond		650		—		—		650
U.S. government agency		—		601		—		601
Certificates of deposit		—		250		—		250

Total short-term investments	$	650	$	192,839	$	—	$	193,489
Long-term Investments:
Auction rate securities	$	—	$	—	$	7,419	$	7,419

Total long-term investments	$	—	$	—	$	7,419	$	7,419
Other assets, net:
Derivative instruments	$	—	$	331	$	—	$	331

Total	$	—	$	331	$	—	$	331

Total	$	73,065	$	210,317	$	7,419	$	290,801



Liabilities:
Accrued expenses:
Contingent consideration	$	—	$	—	$	4,288	$	4,288
Other non-current liabilities:
Contingent consideration	$	—	$	—	$	14,150	$	14,150

Total	$	—	$	—	$	18,438	$	18,438

The Company's cash equivalents and short-term investments that are classified as Level 1 are valued using quoted prices and other relevant information generated by market transactions involving identical assets. Cash equivalents and short-term investments classified as Level 2 are valued using non-binding market consensus prices that are corroborated with observable market data; quoted market prices for similar instruments in active markets; or pricing models, such as a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data. Investments classified as Level 3 are valued using a discounted cash flow model. The assumptions used in preparing the discounted cash flow model include estimates for interest rates, amount of cash flows, expected holding periods of the securities and a discount to reflect the Company's inability to liquidate the securities. The Company's derivative instruments are valued using discounted cash flow models. The assumptions used in preparing the valuation models include quoted interest swap rates, foreign exchange rates, forward and spot prices for currencies, and market observable data of similar instruments.

The Company's contingent consideration is valued using a Monte Carlo simulation model or a probability weighted discounted cash flow model. The assumptions used in preparing the Monte Carlo simulation model include estimates for revenue growth rates, revenue volatility, contractual terms and discount rates. The assumptions used in preparing the discounted cash flow model include estimates for outcomes if milestone goals are achieved, the probability of achieving each outcome and discount rates.

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

Auction rate securities


Fair Value at January 2, 2016 (000s)	Valuation Technique	Unobservable Input	Weighted Average
$7,126	Discounted cash flow	Estimated yield	1.06%
		Expected holding period	10 years
		Estimated discount rate	3.69%

The Company has followed an established internal control procedure used in valuing auction rate securities. The procedure involves the analysis of valuation techniques and evaluation of unobservable inputs commonly used by market participants to price similar instruments, and which have been demonstrated to provide reasonable estimates of prices obtained in actual market transactions. Outputs from the valuation process are assessed against various market sources when they are available, including marketplace quotes, recent trades of similar illiquid securities, benchmark indices and independent pricing services. The technique and unobservable input parameters may be recalibrated periodically to achieve an appropriate estimation of the fair value of the securities.

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

Contingent consideration


Fair Value at January 2, 2016 (000s)	Valuation Technique	Unobservable Input	Range
$14,073	Monte Carlo simulation	Expected revenue growth rate	29.8% - 55.8%
		Expected revenue volatility	20.0%
		Expected term	0.0 years - 3.0 years
		Estimated discount rate	0.34% - 0.98%

The Company has followed an established internal control procedure used in valuing contingent consideration. The valuation of contingent consideration for the Energy Micro acquisition is based on the Company's revenue data for fiscal 2015 and a Monte Carlo simulation model for fiscal 2016 to 2018. The fair value of this valuation is estimated on a quarterly basis through a collaborative effort by the Company's sales, marketing and finance departments.

Significant changes in any of the unobservable inputs used in the fair value measurement of contingent consideration in isolation could result in a significantly lower or higher fair value. A change in projected revenue growth rates would be accompanied by a directionally similar change in fair value.

The following summarizes the activity in Level 3 financial instruments for the years ended January 2, 2016 and January 3, 2015 (in thousands):

Assets


	Year Ended
Auction Rate Securities	January 2, 2016			January 3, 2015
Beginning balance	$	7,419		$	10,632
Settlements		—			(4,425	)
Gain (loss) included in other comprehensive income (loss)		(293	)		1,212

Ending balance	$	7,126		$	7,419

Liabilities


	Year Ended
Contingent Consideration (1)	January 2, 2016			January 3, 2015
Beginning balance	$	18,438		$	12,919
Settlements		(4,464	)		—
Loss recognized in earnings (2)		99			5,519

Ending balance	$	14,073		$	18,438



Net loss for the period included in earnings attributable to contingent consideration held at the end of the period:	$	(99	)	$	(5,519	)

(1): In connection with the acquisition of Energy Micro, the Company recorded contingent consideration based upon the expected achievement of certain milestone goals. Changes to the fair value of contingent consideration due to changes in assumptions used in preparing the valuation model are recorded in selling, general and administrative expenses in the Consolidated Statement of Income.
(2): Changes to the estimated fair value of contingent consideration were primarily due to revisions to the Company's expectations of earn-out achievement.

Fair values of other financial instruments

The Company's debt under the Credit Facilities bears interest at the Eurodollar rate plus an applicable margin. The Credit Facilities are recorded at cost, but are measured at fair value for disclosure purposes. Fair value is estimated based on Level 2 inputs, using a discounted cash flow analysis of future principal payments and projected interest based on current market rates. As of January 2, 2016 and January 3, 2015, the fair value of the Company's debt under the Credit Facilities was approximately $77.5 million and $87.4 million, respectively.

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

- Definition

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

+ References + Details

Balance Sheet Details

12 Months Ended

Jan. 02, 2016

Balance Sheet Details

Balance Sheet Details

7. Balance Sheet Details

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

Inventories


	January 2, 2016		January 3, 2015
Work in progress	$	36,774	$	40,640
Finished goods		17,121		11,991

	$	53,895	$	52,631

Prepaid Expenses and Other Current Assets


	January 2, 2016		January 3, 2015
Distributor advances	$	36,743	$	32,932
Other		15,915		16,239

	$	52,658	$	49,171

Property and Equipment


	January 2, 2016			January 3, 2015
Buildings and improvements	$	94,607		$	94,453
Equipment		55,072			51,654
Computers and purchased software		29,663			27,282
Leasehold interest in ground leases		23,840			23,840
Furniture and fixtures		4,777			4,008
Leasehold improvements		9,204			8,901

		217,163			210,138
Accumulated depreciation		(86,031	)		(77,318	)

	$	131,132		$	132,820

Accrued Expenses


	January 2, 2016		January 3, 2015
Accrued compensation and benefits	$	27,304	$	28,443
Acquisition-related holdback		—		20,010
Other		24,827		25,193

	$	52,131	$	73,646

Other Non-current Liabilities


	January 2, 2016		January 3, 2015
Deferred tax liabilities	$	13,741	$	5,261
Other		26,787		38,430

	$	40,528	$	43,691

Risks and Uncertainties

12 Months Ended

Jan. 02, 2016

Risks and Uncertainties

Risks and Uncertainties

8. Risks and Uncertainties

Financial Instruments

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash equivalents, investments, accounts receivable, notes receivable and derivatives. The Company places its cash equivalents and investments primarily in municipal bonds, money market funds, commercial paper, certificates of deposit, variable-rate demand notes, U.S. government agency, international government bonds and corporate 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:


	January 2, 2016			January 3, 2015
Edom Technology		17	%		25	%
Arrow Electronics		17	%		11	%
Avnet		14	%		11	%

The Company performs periodic credit evaluations of its customers' financial condition and generally requires no collateral from its customers. The Company provides an allowance for potential credit losses based upon the expected collectibility of such receivables. Losses have not been significant for any of the periods presented.

The Company holds a note receivable from a privately held company in which the Company has an equity investment. The note principal is $1.5 million and matures in January 2017.

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 TSMC's affiliates and 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 and results of operations.

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 contract manufacturers accounted for greater than 10% of revenue during fiscal 2015, 2014 or 2013. The Company's end customers and distributors that accounted for greater than 10% of revenue consisted of the following:


	Year Ended
	January 2, 2016			January 3, 2015			December 28, 2013
End Customers
Samsung*		**			12	%		15	%
Distributors
Edom Technology		20	%		20	%		21	%
Avnet		12	%		12	%		11	%

*: Samsung's purchases were across a variety of product areas.
**: Less than 10% of revenue

Acquisitions

12 Months Ended

Jan. 02, 2016

Acquisitions

Acquisitions

9. Acquisitions

Telegesis

On November 20, 2015, the Company acquired Telegesis (UK) Limited, a limited liability company incorporated in England and Wales. Telegesis is a supplier of wireless mesh networking modules based on the Company's ZigBee and Thread technology, targeting applications in the smart energy, home automation and industrial automation markets. The Company acquired Telegesis for cash consideration of $19.9 million. Approximately $2.9 million of the consideration was held in escrow as security for breaches of warranties and certain other expressly enumerated matters.

The Company believes that this strategic acquisition accelerates its roadmap for ZigBee and Thread modules. This factor contributed to a purchase price that was in excess of the fair value of the net assets acquired and, as a result, the Company recorded goodwill. The goodwill is not deductible for tax purposes. The purchase price was allocated as follows (in thousands):


	Amount			Weighted-Average Amortization Period (Years)
Intangible assets:
In-process research and development	$	10		Not amortized
Developed technology		4,980		7
Customer relationships		2,000		3
Trademarks		400		3

		7,390
Cash and cash equivalents		717
Other current assets		4,545
Goodwill		9,344
Other non-current assets		131
Current liabilities		(689	)
Non-current deferred tax liabilities		(1,508	)

Total purchase price	$	19,930

The allocation of the purchase price is preliminary and subject to change, primarily for the valuation of certain assets and accruals and the finalization of income tax matters. Accordingly, adjustments may be made to the values of the assets acquired and liabilities assumed as additional information is obtained about the facts and circumstances that existed at the valuation date.

Pro forma information related to this acquisition has not been presented because it would not be materially different from amounts reported. The Company recorded approximately $0.5 million of acquisition-related costs in selling, general and administrative expenses during fiscal 2015.

Bluegiga

On January 30, 2015, the Company acquired Bluegiga Technologies Oy, a private company based in Finland. Bluegiga is a provider of Bluetooth Smart, Bluetooth Classic and Wi-Fi modules and software stacks for a multitude of applications in the Internet of Things (IoT), industrial automation, consumer electronics, automotive, retail, residential, and health and fitness markets. The Company acquired Bluegiga for cash consideration of approximately $58.0 million. Approximately $9.4 million of the initial consideration was held in escrow as security for breaches of representations and warranties and certain other expressly enumerated matters.

The Company believes that this strategic acquisition will accelerate its entry into the wireless module market. This factor contributed to a purchase price that was in excess of the fair value of the net assets acquired and, as a result, the Company recorded goodwill. The goodwill is not deductible for tax purposes. The purchase price was allocated as follows (in thousands):


	Amount			Weighted-Average Amortization Period (Years)
Intangible assets:
In-process research and development	$	5,710		Not amortized
Developed technology		12,190		8
Customer relationships		6,670		4
Trademarks		880		3

		25,450
Cash and cash equivalents		1,132
Other current assets		6,156
Goodwill		34,597
Other non-current assets		208
Current liabilities		(3,289	)
Non-current deferred tax liabilities		(3,780	)
Long-term debt		(2,232	)
Other non-current liabilities		(220	)

Total purchase price	$	58,022

In-process research and development (IPR&D) represents acquired technology that had not achieved technological feasibility as of the acquisition date and had no alternative future use. The IPR&D recorded in connection with the acquisition of Bluegiga consisted primarily of Bluetooth Smart Ready and Bluetooth Smart modules and software stacks. The fair value of these technologies was determined using the income approach. The discount rate applicable to the cash flows was 16.1%. The significant risks associated with the projects include the Company's potential inability to produce working models and the final products gaining customer acceptance.

Pro forma information related to this acquisition has not been presented because it would not be materially different from amounts reported. The Company recorded approximately $1.2 million of acquisition-related costs in selling, general and administrative expenses during fiscal 2015.

Energy Micro

On July 1, 2013, the Company acquired Energy Micro AS, a late-stage private company. Energy Micro designed and developed energy-efficient 32-bit microcontrollers based on ARM Cortex-M architecture. Energy Micro's energy-friendly solutions are designed to enable a broad range of power-sensitive applications for the Internet of Things (IoT), including smart energy, home automation, security and portable electronics markets.

The Company acquired Energy Micro for approximately $140.6 million, including: 1) Initial consideration of $107.4 million; 2) Deferred consideration in the form of a promissory note with an estimated fair value of $19.2 million at the date of acquisition (the promissory note was subsequently exchanged for approximately 0.5 million shares of the Company's restricted stock after a mandatory two-month creditor notice.); and 3) Contingent consideration (the "Earn-Out") with an estimated fair value of $14.0 million at the date of acquisition. The Earn-Out is payable up to approximately $33.3 million based on the extent to which the annual revenue growth rate from certain Energy Micro and Silicon Laboratories products (the "Earn-Out Products") exceeds 25% per year, on an annual basis over a five-year period from fiscal 2014 through 2018 (the "Earn-Out Period"). The Earn-Out is payable on an annual basis and in no event shall exceed $6,666,666 per year, unless revenue from the Earn-Out Products exceeds $400 million in a single fiscal year during the Earn-Out Period (in which case, the entire Earn-Out amount less any amounts previously paid will become payable). Approximately $20.3 million of the initial consideration was withheld by the Company as security for breaches of representations and warranties and certain other expressly enumerated matters (the "Holdback"). The Holdback was recorded in other non-current liabilities in the Consolidated Balance Sheet.

A portion of the Earn-Out (28.76%) is contingent on the continued employment of certain key employees for the three years following the acquisition date (the "Departure Percentage"). The Departure Percentage was accounted for as a transaction separate from the business combination based on its economic substance and will be recorded as post-combination compensation expense in the Company's financial statements during the Earn-Out period.

The Company believes that this strategic acquisition will accelerate its deployment of energy-friendly solutions across the IoT industries, while further scaling the Company's engineering team. These factors contributed to a purchase price that was in excess of the fair value of the net assets acquired and, as a result, the Company recorded goodwill. The goodwill is not deductible for tax purposes. The purchase price was allocated as follows (in thousands):


	Amount			Weighted-Average Amortization Period (Years)
Intangible assets:
In-process research and development	$	18,600		Not amortized
Core and developed technology		29,100		7
Customer relationships		6,400		8
Trademarks		1,300		8

		55,400
Cash and cash equivalents		919
Other current assets		6,486
Goodwill		98,515
Other non-current assets		3,117
Current liabilities		(8,000	)
Non-current deferred tax liabilities, net		(6,288	)
Long-term debt		(8,434	)
Other non-current liabilities		(1,133	)

Total purchase price	$	140,582

The IPR&D recorded in connection with the acquisition of Energy Micro consisted of a multi-protocol wireless RF solution. The fair value of this technology was determined using the income approach. The discount rate applicable to the cash flows was 13.0%.

Pro forma information related to this acquisition has not been presented because it would not be materially different from amounts reported. The Company recorded approximately $2.4 million of acquisition-related costs in selling, general and administrative expenses during fiscal 2013.

During fiscal 2015, the Company made the following payments in connection with the Energy Micro acquisition: (a) approximately $20.0 million was paid for the release of the Holdback; and (b) approximately $6.3 million was paid for the first annual period of the Earn-out. Approximately $1.8 million of the Earn-out payment represented the Departure Percentage portion and was recorded as compensation expense during fiscal 2014. The remaining approximately $4.5 million of the Earn-out payment represented additional consideration.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1500-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1524-128463

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4922-128472

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
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-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4934-128472

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4926-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1383-128463

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
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-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479

+ Details

Goodwill and Other Intangible Assets

12 Months Ended

Jan. 02, 2016

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

10. Goodwill and Other Intangible Assets

Goodwill

The following summarizes the activity in goodwill for the years ended January 2, 2016 and January 3, 2015 (in thousands):


	Year Ended
	January 2, 2016		January 3, 2015
Beginning balance	$	228,781	$	228,781
Additions due to business combinations		43,941		—

Ending balance	$	272,722	$	228,781

Other Intangible Assets

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


		January 2, 2016					January 3, 2015
	Weighted-Average Amortization Period (Years)	January 2, 2016					January 3, 2015
	Weighted-Average Amortization Period (Years)	Gross Amount		Accumulated Amortization			Gross Amount		Accumulated Amortization
Intangible assets:
Subject to amortization:
Core and developed technology	9	$	170,541	$	(70,135	)	$	148,891	$	(47,894	)
Customer relationships	7		23,170		(7,259	)		14,500		(4,003	)
Patents	6		3,022		(1,763	)		3,000		(1,250	)
Trademarks	7		3,490		(952	)		2,210		(433	)

	9		200,223		(80,109	)		168,601		(53,580	)
Not subject to amortization:
In-process research and development	Not amortized		1,240		—			—		—

Total intangible assets		$	201,463	$	(80,109	)	$	168,601	$	(53,580	)

Gross intangible assets increased $32.9 million in fiscal 2015 due to the acquisition of Bluegiga and Telegesis.

Amortization expense related to intangible assets for fiscal 2015, 2014 and 2013 was $26.5 million, $17.9 million and $14.6 million, respectively. The estimated aggregate amortization expense for intangible assets subject to amortization for each of the five succeeding fiscal years is as follows (in thousands):


Fiscal Year
2016	$	26,677
2017		23,012
2018		20,995
2019		15,530
2020		13,298

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Debt	12 Months Ended
Debt	Jan. 02, 2016
Debt
Debt	11. Debt On July 31, 2012, the Company and certain of its domestic subsidiaries (the "Guarantors") entered into a $230 million five-year Credit Agreement (the "Credit Agreement"), which consisted of a $100 million Term Loan Facility and a $130 million Revolving Credit Facility (collectively, the "Credit Facilities"). On July 24, 2015, the Company and the Guarantors amended the Credit Agreement (the "Amended Credit Agreement") in order to, among other things, increase the borrowing capacity under the Revolving Credit Facility to $300 million, eliminate the Term Loan Facility and extend the maturity date to five years from the closing date. On July 24, 2015, the Company borrowed $82.5 million under the Amended Credit Agreement and paid off the remaining balance of its Term Loan Facility. The Amended Credit Agreement includes a $25 million letter of credit sublimit and a $10 million swingline loan sublimit. The Company also has an option to increase the size of the borrowing capacity by up to an aggregate of $200 million in additional commitments, subject to certain conditions. The Revolving Credit Facility, other than swingline loans, will bear interest at the Eurodollar rate plus an applicable margin or, at the option of the Company, a base rate (defined as the highest of the Wells Fargo prime rate, the Federal Funds rate plus 0.50% and the Eurodollar Base Rate plus 1.00%) plus an applicable margin. Swingline loans accrue interest at the base rate plus the applicable margin for base rate loans. The applicable margins for the Eurodollar rate loans range from 1.25% to 2.00% and for base rate loans range from 0.25% to 1.00%, depending in each case, on the leverage ratio as defined in the Agreement. The Amended Credit Agreement contains various conditions, covenants and representations with which the Company must be in compliance in order to borrow funds and to avoid an event of default, including financial covenants that the Company must maintain a leverage ratio (funded debt/EBITDA) of no more than 3.00 to 1 and a minimum fixed charge coverage ratio (EBITDA/interest payments, income taxes and capital expenditures) of no less than 1.25 to 1. As of January 2, 2016, the Company was in compliance with all covenants of the Amended Credit Agreement. The Company's obligations under the Amended Credit Agreement are guaranteed by the Guarantors and are secured by a security interest in substantially all assets of the Company and the Guarantors. The Company assumed $2.2 million of debt in connection with its acquisition of Bluegiga. On September 25, 2015, the Company paid off the remaining balance of the acquired debt. Interest Rate Swap Agreement In connection with the $100 million borrowed under the Credit Facilities, the Company entered into an interest rate swap agreement as a hedge against the Eurodollar portion of such variable interest payments. Under the terms of the swap agreement, the Company effectively converted the Eurodollar portion of the interest on the Credit Facilities to a fixed interest rate of 0.764% through July 2017. As of January 2, 2016, the combined interest rate of the Credit Facilities (which includes an applicable margin) and the interest rate swap was 2.264%. See Note 5, Derivative Financial Instruments, for additional information.

Stockholders' Equity

12 Months Ended

Jan. 02, 2016

Stockholders' Equity

Stockholders' Equity

12. Stockholders' Equity

Common Stock

The Company issued 1.2 million shares of common stock during fiscal 2015.

Share Repurchase Programs

The Board of Directors authorized the following share repurchase programs (in thousands):


Program Authorization Date	Program Termination Date	Program Amount
August 2015	December 2016	$	100,000
October 2014	December 2015	$	100,000
January 2014	January 2015	$	100,000
January 2013	January 2014	$	50,000
April 2012	January 2013	$	100,000

These programs allow for repurchases to be made in the open market or in private transactions, including structured or accelerated transactions, subject to applicable legal requirements and market conditions. The Company repurchased 1.7 million shares, 1.7 million shares and 0.7 million shares of its common stock for $71.4 million, $71.7 million and $26.0 million during fiscal 2015, 2014 and 2013, respectively. These shares were retired upon repurchase.

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss, net of taxes, were as follows (in thousands):


	Unrealized Gain (Loss) on Cash Flow Hedge			Net Unrealized Losses on Available- For-Sale Securities			Total
Balance at December 29, 2012	$	(428	)	$	(518	)	$	(946	)
Other comprehensive income (loss) before reclassifications		397			(348	)		49
Amount reclassified from accumulated other comprehensive loss		364			(151	)		213

Net change for the period		761			(499	)		262

Balance at December 28, 2013		333			(1,017	)		(684	)
Other comprehensive income (loss) before reclassifications		(520	)		720			200
Amount reclassified from accumulated other comprehensive loss		402			—			402

Net change for the period		(118	)		720			602

Balance at January 3, 2015		215			(297	)		(82	)
Other comprehensive income (loss) before reclassifications		(473	)		(276	)		(749	)
Amount reclassified from accumulated other comprehensive loss		318			6			324

Net change for the period		(155	)		(270	)		(425	)
Balance at January 2, 2016	$	60		$	(567	)	$	(507	)

Reclassifications From Accumulated Other Comprehensive Loss


	Year ended
Reclassification (in thousands)	January 2, 2016			January 3, 2015			December 28, 2013
Losses on cash flow hedges to:
Interest expense	$	(489	)	$	(618	)	$	(560	)
Gains (losses) on available-for-sales securities to:
Interest income		(10	)		—			232

		(499	)		(618	)		(328	)
Income tax benefit		175			216			115

Total reclassifications	$	(324	)	$	(402	)	$	(213	)

Income Tax Allocated to the Components of Other Comprehensive Income (Loss)

The income tax effects of the components of other comprehensive income (loss) were as follows (in thousands):


	Year ended
Income tax (expense) benefit on:	January 2, 2016			January 3, 2015			December 28, 2013
Net changes to available-for-sale securities:
Unrealized gains (losses) arising during the period	$	149		$	(387	)	$	187
Reclassification for gains (losses) included in net income		(4	)		—			81
Net changes to cash flow hedges:
Unrealized gains (losses) arising during the period		255			279			(214	)
Reclassification for losses included in net income		(171	)		(216	)		(196	)

	$	229		$	(324	)	$	(142	)

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
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-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

+ Details

Stock-Based Compensation

12 Months Ended

Jan. 02, 2016

Stock-Based Compensation

Stock-Based Compensation

13. Stock-Based Compensation

In fiscal 2009, the stockholders of the Company approved the 2009 Stock Incentive Plan (the "2009 Plan") and the 2009 Employee Stock Purchase Plan (the "2009 Purchase Plan"). In fiscal 2014, the stockholders of the Company approved amendments to both the 2009 Plan and the 2009 Purchase Plan. The amendments authorized additional shares of common stock for issuance, to comply with changes in applicable law, improve the Company's corporate governance and to implement other best practices. The amended plans are currently effective.

2009 Stock Incentive Plan

Under the 2009 Plan, the following may be granted: stock options, stock appreciation rights, performance shares, performance stock units, restricted stock units (RSUs), restricted stock awards (RSAs), performance-based awards and other awards (collectively, all such grants are referred to as "awards"). The amendment of the shares of common stock reserved for issuance in the 2009 Plan created two share pools—Prior Pool and New Pool. Awards of stock options and stock appreciation rights each deduct one share from the 2009 Plan shares available for issuance for each share granted, and full value awards (awards other than for which the participant is required to pay at least the fair market value of the underlying shares on the date of grant) deduct 1.55 shares from the 2009 Plan shares available for issuance for each share granted under the Prior Pool. Awards of stock options, stock appreciation rights, and full value awards each deduct one (1) share from the 2009 Plan shares available for issuance for each share granted under the New Pool. Awards granted under the 2009 Plan generally contain vesting provisions ranging from three to four years. The exercise price of stock options offered under the 2009 Plan may not be less than 100% of the fair market value of a share of our common stock on the date of grant. To the extent awards granted under the 2009 Plan terminate, expire or lapse for any reason, or are settled in cash, shares subject to such awards will again be available for grant.

2000 Stock Incentive Plan

In fiscal 2000, the Company's Board of Directors and stockholders approved the 2000 Plan. The 2000 Plan contains programs for (i) the discretionary granting of stock options to employees, non-employee board members and consultants for the purchase of shares of the Company's common stock, (ii) the discretionary issuance of common stock directly (as granted under direct issuance shares in RSAs and RSUs), (iii) the granting of special below-market stock options to executive officers and other highly compensated employees of the Company for which the exercise price can be paid using payroll deductions and (iv) the automatic issuance of stock options to non-employee board members. The discretionary issuance of common stock, RSUs and stock options generally contain vesting provisions ranging from three to eight years. If permitted by the Company, stock options can be exercised immediately and, similar to the direct issuance shares, are subject to repurchase rights which generally lapse in accordance with the vesting schedule. The repurchase rights provide that upon certain defined events, the Company can repurchase unvested shares at the price paid per share. The term of each stock option is no more than ten years from the date of grant.

Stock Grants and Modifications

The Company granted to its employees 0.9 million, 0.8 million and 1.1 million shares of full value awards and no stock options from the 2009 Plan during fiscal 2015, 2014 and 2013, respectively.

The Company recorded $2.3 million in selling, general and administrative expense during fiscal 2015 in connection with the modifications of certain equity awards pursuant to two employee terminations. There were no other significant modifications made to any stock grants during fiscal 2015, 2014 or 2013.

Included in the full value awards granted under the 2009 Plan in fiscal 2015, 2014 and 2013 were a total of 89 thousand, 76 thousand and 132 thousand market-based stock awards, respectively. The awards, also known as MSUs, provide the rights to acquire a number of shares of common stock for no cash consideration based upon achievement of specified levels of market conditions. The requisite service period for these MSUs is also the vesting period, which is generally three years. The performance criteria of the MSUs measure the difference between the total stockholders' return of the Company against that of the Philadelphia Semiconductor Sector Total Return Index.

2009 Employee Stock Purchase Plan

The rights to purchase common stock granted under the 2009 Purchase Plan are intended to be treated as either (i) purchase rights granted under an "employee stock purchase plan," as that term is defined in Section 423(b) of the Internal Revenue Code (the "423(b) Plan"), or (ii) purchase rights granted under an employee stock purchase plan that is not subject to the terms and conditions of Section 423(b) of the Internal Revenue Code (the "Non-423(b) Plan"). The Company will retain the discretion to grant purchase rights under either the 423(b) Plan or the Non-423(b) Plan. Eligible employees may purchase a limited number of shares of the Company's common stock at no less than 85% of the fair market value of a share of common stock at prescribed purchase intervals during an offering period. Each offering period will be comprised of a series of one or more successive and/or overlapping purchase intervals and has a maximum term of 24 months. During fiscal 2015, 2014 and 2013, the Company issued 210 thousand, 204 thousand and 190 thousand shares, respectively, under the 2009 Purchase Plan to its employees. The weighted-average fair value for purchase rights granted in fiscal 2015 under the 2009 Purchase Plan was $12.70 per share.

Accounting for Stock-Based Compensation

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

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

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

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

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

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


	Year Ended
2009 Employee Stock Purchase Plan	January 2, 2016			January 3, 2015			December 28, 2013
Expected volatility		31	%		28	%		27	%
Risk-free interest rate %		0.2	%		0.2	%		0.1	%
Expected term (in months)		8			15			7
Dividend yield		—			—			—

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


	Year Ended
2009 Stock Incentive Plan	January 2, 2016			January 3, 2015			December 28, 2013
Expected volatility		31	%		33	%		32	%
Risk-free interest rate %		1.0	%		0.7	%		0.5	%
Expected term (in years)		2.9			2.8			2.9
Dividend yield		—			—			—

A summary of stock-based compensation activity with respect to fiscal 2015 follows:


Stock Options	Shares (000s)			Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term (In Years)		Aggregate Intrinsic Value (000s)
Outstanding at January 3, 2015		529		$	31.50
Exercised		(306	)	$	29.14
Cancelled or expired		(11	)	$	36.91

Outstanding at January 2, 2016		212		$	34.64		1.19	$	3,119
Vested at January 2, 2016 and expected to vest		212		$	34.64		1.19	$	3,119
Exercisable at January 2, 2016		212		$	34.64		1.19	$	3,119


RSAs and RSUs	Shares (000s)			Weighted- Average Purchase Price		Weighted-Average Remaining Vesting Term (In Years)		Aggregate Intrinsic Value (000s)
Outstanding at January 3, 2015		1,781		$	—
Granted		806		$	—
Vested or issued		(905	)	$	—
Cancelled or forfeited		(128	)	$	—

Outstanding at January 2, 2016		1,554		$	—		0.91	$	75,417
Outstanding at January 2, 2016 and expected to vest		1,450		$	—		0.91	$	70,365


MSUs	Shares (000s)			Weighted- Average Purchase Price		Weighted-Average Remaining Vesting Term (In Years)		Aggregate Intrinsic Value (000s)
Outstanding at January 3, 2015		298		$	—
Granted		89		$	—
Earned or issued		(7	)	$	—
Cancelled or forfeited		(130	)	$	—

Outstanding at January 2, 2016		250		$	—		1.09	$	12,122
Outstanding at January 2, 2016 and expected to vest		231		$	—		1.09	$	11,215

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


	Year Ended
	January 2, 2016		January 3, 2015		December 28, 2013
Per grant of RSAs and RSUs	$	49.14	$	47.93	$	43.01
Per grant of MSUs	$	48.36	$	60.08	$	31.94

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


	Year Ended
	January 2, 2016		January 3, 2015		December 28, 2013
Intrinsic value of stock options exercised	$	6,612	$	5,674	$	4,198
Intrinsic value of RSAs and RSUs that vested	$	45,298	$	32,138	$	23,649
Grant date fair value of RSAs and RSUs that vested	$	41,072	$	29,668	$	24,026

The Company received cash of $3.1 million for the issuance of common stock, net of shares withheld for taxes, during fiscal 2015. The Company issues shares from the shares reserved under its stock plans upon the exercise of stock options, issuance of RSAs, vesting of RSUs and MSUs, and purchases through employee stock purchase plans. The Company does not currently expect to repurchase shares from any source to satisfy such obligation.

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


	Year Ended
	January 2, 2016		January 3, 2015		December 28, 2013
Cost of revenues	$	960	$	775	$	952
Research and development		19,451		18,521		14,530
Selling, general and administrative		22,380		19,771		15,318

		42,791		39,067		30,800
Income tax benefit		9,264		4,024		2,633

	$	33,527	$	35,043	$	28,167

The increase in stock-based compensation costs in fiscal 2014 was principally due to increased headcount. The Company had approximately $47.5 million of total unrecognized compensation costs related to granted stock awards as of January 2, 2016 that are 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.

As of January 2, 2016, the Company had reserved shares of common stock for future issuance as follows (in thousands):


2000 Stock Incentive Plan			212
2009 Stock Incentive Plan			2,991
2009 Employee Stock Purchase Plan			671

Total shares reserved			3,874

Employee Benefit Plan	12 Months Ended
Employee Benefit Plan	Jan. 02, 2016
Employee Benefit Plan
Employee Benefit Plan	14. 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 $3.0 million to the 401(k) Plan during fiscal 2015, 2014 and 2013, respectively.

Commitments and Contingencies

12 Months Ended

Jan. 02, 2016

Commitments and Contingencies

Commitments and Contingencies

15. Commitments and Contingencies

Operating Leases

The Company leases certain facilities under operating lease agreements that expire at various dates through 2025. Some of these arrangements contain renewal options and require the Company to pay taxes, insurance and maintenance costs.

Rent expense under operating leases was $4.6 million, $4.2 million and $4.2 million for fiscal 2015, 2014 and 2013, respectively. The minimum annual future rentals under the terms of these leases as of January 2, 2016 are as follows (in thousands):


Fiscal Year
2016	$	5,438
2017		4,394
2018		2,917
2019		1,812
2020		1,514
Thereafter		5,340

Total minimum lease payments	$	21,415

Litigation

Patent Litigation

On January 21, 2014, Cresta Technology Corporation ("Cresta Technology"), a Delaware corporation, filed a lawsuit against the Company, Samsung Electronics Co., Ltd., Samsung Electronics America, Inc., LG Electronics Inc. and LG Electronics U.S.A., Inc. in the United States District Court in the District of Delaware, alleging infringement of three United States Patents (the "Cresta Patents"). The Delaware District Court action has been stayed.

On January 28, 2014, Cresta Technology also filed a complaint with the United States International Trade Commission ("ITC") alleging infringement of the same patents. During the course of the proceedings, Cresta Technology withdrew its allegations as to one of the three Cresta Patents. On September 29, 2015, the ITC issued its Final Determination, finding that all the patent claims asserted against the Company's products were either invalid or not infringed and that Cresta Technology failed to establish the ITC's domestic industry requirement. The ITC found no violation by the Company and terminated the investigation. On November 30, 2015, Cresta Technology filed an appeal of the ITC decision to the Federal Circuit, which is now pending.

In a parallel process, the Company challenged the validity of the claims of the Cresta Patents asserted in the ITC investigation through a series of Inter-Parties Review (IPR) proceedings at the Patent Trial and Appeal Board (PTAB) of the United States Patent and Trademark Office (USPTO). On October 21, 2015, the USPTO issued final written decisions on a first set of reviewed claims finding all of the reviewed claims invalid. On December 18, 2015, Cresta Technology filed notices of appeal to the United States Court of Appeals for the Federal Circuit as to this first USPTO determination. The USPTO has instituted a second set of IPR proceedings against a second set of the remaining claims.

On May 6, 2014, the Company filed a complaint with the ITC alleging infringement of United States Patent Nos. 6,137,372 and 6,233,441 against Cresta Technology, Hauppauge Digital, Inc., Hauppague Computer Works, Inc., PCTV Systems, S.a.r.l., Luxembourg and PCTV Systems S.a.r.l., seeking to prevent the importation and sale of allegedly infringing products in the United States. On July 1, 2014, the Administrative Law Judge accepted a consent order whereby Cresta Technology will not sell for importation, import or sell in the United States television tuners that infringe the Company's United States Patent Nos. 6,137,372 and 6,233,441. Accordingly, this ITC investigation has been terminated in its entirety.

On July 16, 2014, the Company filed a lawsuit against Cresta Technology in the United States District Court in the Northern District of California alleging infringement of United States Patent Nos. 6,308,055, 6,304,146, 6,137,372, 6,233,441, 6,965,761 and 7,353,011. The Company is seeking a permanent injunction stopping the sale of all allegedly infringing Cresta Technology products and an award of damages and attorney fees. This lawsuit is currently scheduled for trial in March 2016.

As is customary in the semiconductor industry, the Company provides indemnification protection to its customers for intellectual property claims related to the Company's products. The Company has not accrued any material liability on its consolidated balance sheet related to such indemnification obligations in connection with the Cresta Technology litigation.

The Company intends to continue to vigorously defend against Cresta Technology's allegations. At this time, the Company cannot predict the outcome of these matters or the resulting financial impact to it, if any.

Other

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

Related Party Transactions	12 Months Ended
Related Party Transactions	Jan. 02, 2016
Related Party Transactions
Related Party Transactions	16. Related Party Transactions On July 1, 2013, Geir Førre joined the Company as senior vice president. Mr. Førre was chief executive officer of Energy Micro until it was acquired by the Company. Mr. Førre was the beneficial owner of approximately 30% of the Energy Micro equity and, accordingly, received approximately $35 million at closing. In fiscal 2015, Mr. Førre received approximately $6.1 million of the $20.0 million paid for the holdback related to potential indemnification claims and approximately $1.9 million of the $6.3 million paid for the fiscal 2014 earn-out. Mr. Førre may receive up to approximately $8.1 million of the remaining potential $26.7 million earn-out for fiscal 2015 through 2018. On October 17, 2013, the Company appointed Alf-Egil Bogen to its board of directors. Mr. Bogen was chief marketing officer of Energy Micro until it was acquired by the Company. Mr. Bogen was the beneficial owner of approximately 2% of the Energy Micro equity and, accordingly, received approximately $0.9 million at closing. In fiscal 2015, Mr. Bogen received approximately $0.4 million of the $20.0 million paid for the holdback related to potential indemnification claims and approximately $0.1 million of the $6.3 million paid for the fiscal 2014 earn-out. Mr. Bogen may receive up to approximately $0.5 million of the remaining potential $26.7 million earn-out for fiscal 2015 through 2018. Mr. Bogen had invested approximately $0.8 million in Energy Micro prior to the acquisition.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

Income Taxes

12 Months Ended

Jan. 02, 2016

Income Taxes

Income Taxes

17. Income Taxes

Significant components of the provision for income taxes are as follows (in thousands):


	Year Ended
	January 2, 2016			January 3, 2015		December 28, 2013
Current:
Domestic	$	951		$	7,083	$	4,796
International		3,015			882		4,093

Total Current		3,966			7,965		8,889
Deferred:
Domestic		(5,825	)		2,352		5,591
International		2,536			702		(2,272	)

Total Deferred		(3,289	)		3,054		3,319

	$	677		$	11,019	$	12,208

The Company's provision for income taxes differs from the expected tax expense amount computed by applying the statutory federal income tax rate to income before income taxes as a result of the following:


	Year Ended
	January 2, 2016			January 3, 2015			December 28, 2013
Federal statutory rate		35.0	%		35.0	%		35.0	%
Foreign tax rate benefit		(30.7	)		(3.5	)		(8.2	)
Research and development tax credits		(5.6	)		(8.6	)		(12.8	)
Release of prior year unrecognized tax benefits		(1.9	)		(2.6	)		—
Excess officer compensation		3.2			2.3			1.9
Change in cost-sharing treatment of stock-based compensation		(7.1	)		—			—
Change in prior period valuation allowance		8.8			(1.4	)		3.1
Other		0.5			1.3			0.7

		2.2	%		22.5	%		19.7	%

The effective tax rate for fiscal 2015 decreased from fiscal 2014, primarily due to the completion of payments related to a prior year intercompany licensing arrangement resulting in an increase to the foreign tax rate benefit as well as the recognition of a net benefit resulting from a change in the tax accounting treatment of stock-based compensation in a cost-sharing arrangement following a recent U.S. Tax Court case.

On July 27, 2015, the U.S. Tax Court (the "Court") issued an opinion in Altera Corp. v. Commissioner related to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. A final decision was entered by the Court on December 1, 2015. In its opinion, the Court accepted Altera's position of excluding stock-based compensation from its intercompany cost-sharing arrangement. The U.S. Internal Revenue Service has the right to appeal the Court decision, and although the U.S. Department of the Treasury has not withdrawn the requirement from its regulations to include stock-based compensation in intercompany cost-sharing arrangements, the Company has evaluated the Court case and has concluded that the Court's opinion is more likely than not to be sustained upon final appeal of the decision. The Company has analyzed the impact of the Court case and has recorded a tax benefit of $29.6 million in its consolidated statement of income for fiscal 2015. Of the total $29.6 million tax benefit, $25.9 million represents the benefit of a future intercompany transaction that will result from the reversal of the inclusion of stock-based compensation in the Company's cost-sharing arrangement as a result of stock-based awards that have already vested. The remainder of the $29.6 million benefit, or $3.7 million, represents the additional benefit reflected in the ending deferred tax asset for stock-based compensation as a result of the Altera decision. Because this change to cost-sharing is expected to increase the Company's cumulative foreign earnings at the time of final resolution of the case, in fiscal 2015, the Company accrued a deferred tax liability of $27.5 million as a result of management's intent to repatriate the foreign earnings generated when the inclusion of stock-based compensation in its cost-sharing arrangement is reversed.

The decrease in the effective tax rate during fiscal 2015 from the completion of payments related to a prior year intercompany licensing arrangement and the recognition of a net benefit from the Altera case was partially offset by an increase in the prior year valuation allowance related to lower expectations of profitability in jurisdictions where tax attributes exist. Additionally, the Company expects a lower realization of the recently re-enacted U.S. federal research and development tax credit as compared to the realization of the U.S. federal research and development tax credit in fiscal 2014.

The effective tax rate for fiscal 2014 increased from fiscal 2013, primarily due to the recognition of the fiscal 2012 federal research and development tax credit in fiscal 2013 due to the enactment of the American Taxpayer Relief Act of 2012 on January 2, 2013, as well as a decrease in the foreign tax rate benefit in fiscal 2014. This increase in the effective tax rate was partially offset by the reduction to a valuation allowance recorded in a prior year related to certain state loss and research and development tax credit carryforwards and the release in fiscal 2014 of prior year unrecognized tax benefits due to the lapse of the statute of limitations applicable to a tax deduction claimed on a prior year foreign tax return.

Income before income taxes included the following components (in thousands):


	Year Ended
	January 2, 2016		January 3, 2015		December 28, 2013
Domestic	$	2,249	$	38,174	$	41,849
Foreign		28,014		10,866		20,178

	$	30,263	$	49,040	$	62,027

Foreign income before taxes increased from fiscal 2014 to fiscal 2015 primarily due to the completion of payments related to a prior year intercompany licensing arrangement. The impact of this change was partially offset by lower profitability for fiscal 2015 as compared to fiscal 2014, predominately resulting from higher amortization of acquired intangibles.

Foreign income before taxes decreased from fiscal 2013 to fiscal 2014 primarily due to an increase in fiscal 2014 of the fair value of the Company's acquisition-related contingent consideration liability.

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. 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 recorded a new valuation allowance of $0.5 million in fiscal 2015 related to certain state research and development tax credit carryforwards generated in fiscal 2015 as well as recording a new valuation allowance of $3.2 million related to a carryforward of the recently enacted U.S. federal research and development tax credit generated in fiscal 2015. The Company also recorded a new valuation allowance of $0.6 million in fiscal 2015 related to the state tax impact of the change in tax accounting treatment of stock-based compensation in a cost-sharing arrangement. In addition, the Company recorded additional valuation allowances of $2.0 million for previously acquired federal research and development credit carryforwards, $0.4 million for prior year state research and development credit carryforwards and $0.2 million for prior year state net operating loss carryforwards. The Company does not expect to recognize sufficient income in the jurisdictions in which the carryforwards were created and therefore, the Company has concluded that it is more likely than not that a portion of these carryforwards will expire or go unutilized. In addition, in fiscal 2015, the Company recorded a reduction of $0.1 million to the prior year valuation allowance related to the expiration of certain acquired state net operating loss carryforwards which were fully valued. Since this change was due to the expiration of the losses, the reduction to the valuation allowance was offset by a reduction in deferred tax assets rather than a charge to income tax expense. No valuation allowance was recorded against other deferred tax assets in fiscal 2015. Management believes that the Company's results of future operations will generate sufficient taxable income such that it is more likely than not that the remaining deferred tax assets will be realized.

Significant components of the Company's deferred taxes as of January 2, 2016 and January 3, 2015 are as follows (in thousands):


	January 2, 2016			January 3, 2015
Deferred tax assets:
Net operating loss carryforwards	$	25,869		$	31,518
Research and development tax credit carryforwards		13,335			9,740
Stock-based compensation		8,757			6,353
Capitalized research and development		8,741			7,371
Deferred income on shipments to distributors		7,413			8,117
Expected future cost-sharing adjustment		25,896			—
Accrued liabilities and other		8,619			6,481

		98,630			69,580
Less: Valuation allowance		(10,264	)		(3,455	)

		88,366			66,125
Deferred tax liabilities:
Acquired intangible assets		33,020			33,630
Depreciation and amortization		2,349			3,388
Unremitted foreign earnings for expected future cost-sharing adjustment		27,495			—
Prepaid expenses and other		1,991			1,517

		64,855			38,535

Net deferred tax assets	$	23,511		$	27,590

As of January 2, 2016, the Company had federal net operating loss and research and development tax credit carryforwards of approximately $53.8 million and $2.0 million, respectively, as a result of the Cygnal Integrated Products, Silicon Clocks, Spectra Linear and Ember acquisitions. These carryforwards expire in fiscal years 2020 through 2032. Recognition of these loss and credit carryforwards is subject to an annual limit, which may cause them to expire before they are used. Additionally, as of January 2, 2016, the Company had $5.1 million of federal research and development tax credit carryforward. This carryforward will expire in 2036.

As of January 2, 2016, the Company had foreign net operating loss carryforwards of approximately $15.8 million as a result of the Energy Micro acquisition. These loss carryforwards do not expire and recognition is not subject to an annual limit. Additionally, as of January 2, 2016, the Company had foreign net operating loss carryforwards of approximately $0.2 million as a result of the Bluegiga acquisition. These loss carryforwards will expire in fiscal year 2025.

The Company also had state loss and research and development tax credit carryforwards of approximately $54.0 million and $12.5 million, respectively. A portion of these loss and credit carryforwards was generated by the Company and a portion was acquired through the Integration Associates, Silicon Clocks, Spectra Linear and Ember acquisitions. Certain of these carryforwards expire in fiscal years 2016 through 2033, 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.

At the end of fiscal 2015, undistributed earnings of the Company's foreign subsidiaries of approximately $312.4 million are intended to be permanently reinvested outside the U.S. Accordingly, no provision for U.S. federal and state income taxes associated with a distribution of these earnings has been made. Determination of the amount of the unrecognized deferred tax liability on these unremitted earnings is not practicable. Other than the previously described future earnings of its Singapore subsidiary as a result of the reversal of the inclusion of stock-based compensation in its cost-sharing arrangement, the Company intends to continue to permanently reinvest the actual earnings of each of its foreign subsidiaries.

The Company's operations in Singapore are subject to reduced tax rates through June 30, 2019, as long as certain conditions are met. The income tax benefit from the reduced Singapore tax rate reflected in earnings was approximately $14.4 million (representing $0.34 per diluted share) in fiscal 2015, approximately $2.0 million (representing $0.05 per diluted share) in fiscal 2014, and approximately $2.2 million (representing $0.05 per diluted share) in fiscal 2013. The significant increase in the impact of the reduced Singapore tax rate from fiscal 2014 to fiscal 2015 is due to the recognition of additional profit in Singapore for tax accounting purposes as a result of the Altera case as well as the completion of payments related to a prior year intercompany licensing agreement.

The following table reflects changes in the unrecognized tax benefits (in thousands):


	Year Ended
	January 2, 2016			January 3, 2015			December 28, 2013
Beginning balance	$	3,929		$	4,998		$	4,364
Additions based on tax positions related to current year		432			465			316
Additions based on tax positions related to prior years		—			58			318
Reductions for tax positions related to prior years		(751	)		(1,592	)		—

Ending balance	$	3,610		$	3,929		$	4,998

As of January 2, 2016, January 3, 2015 and December 28, 2013, the Company had gross unrecognized tax benefits of $3.6 million, $3.9 million, and $5.0 million, respectively, of which $3.2 million, $4.0 million, and $4.8 million, respectively, would affect the effective tax rate if recognized. During fiscal 2015, the Company had gross increases of $0.4 million to its current year unrecognized tax benefits, as well as gross decreases of $0.6 million related to an uncertain tax position that was closed by statute. In addition, there was a reduction of $0.2 million due to foreign currency remeasurement adjustments related to prior year unrecognized tax benefits which were recognized in other income (expense), net. During fiscal 2014, the Company had gross increases of $0.5 million to its current and prior year unrecognized tax benefits, as well as gross decreases of $1.3 million to its prior year unrecognized tax benefits related to an uncertain tax position that was closed by statute. In addition, there was a reduction of $0.3 million due to foreign currency remeasurement adjustments related to prior year unrecognized tax benefits which were recognized in other income (expense), net. During fiscal 2013, the Company had gross increases of $0.6 million to its current and prior year unrecognized tax benefits.

The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. The Company recognized less than $0.1 million of interest in the provision for income taxes in fiscal 2015, 2014 and 2013. The Company had an accrual of less than $0.1 million for the payment of interest related to unrecognized tax positions at the end of fiscal 2015, 2014 and 2013.

The Company believes it is reasonably possible that the gross unrecognized tax benefits will decrease by approximately $1.1 million in the next 12 months due to the lapse of the statute of limitations applicable to tax deductions and tax credits claimed on prior year tax returns.

The tax years 2011 through 2015 remain open to examination by the major taxing jurisdictions to which the Company is subject. The Company is not currently under audit in any major taxing jurisdiction.

Segment Information

12 Months Ended

Jan. 02, 2016

Segment Information

Segment Information

18. Segment Information

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

The Company groups its products into four categories, based on the markets and applications in which its ICs may be used. The following summarizes the Company's revenue by product category (in thousands):


	Year Ended
	January 2, 2016		January 3, 2015		December 28, 2013
Internet of Things	$	262,329	$	209,005	$	181,254
Broadcast		161,787		204,256		199,837
Infrastructure		121,974		108,123		100,523
Access		98,736		99,320		98,473

Total	$	644,826	$	620,704	$	580,087

The Company previously grouped IoT products and Infrastructure products under the Broad-based products heading.

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


	Year Ended
	January 2, 2016		January 3, 2015		December 28, 2013
United States	$	96,959	$	89,935	$	68,566
China		281,306		271,818		253,261
Rest of world		266,561		258,951		258,260

Total	$	644,826	$	620,704	$	580,087

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


	January 2, 2016		January 3, 2015
United States	$	126,404	$	127,928
Rest of world		4,728		4,892

Total	$	131,132	$	132,820

- 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/presentationRef
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+ Details

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Jan. 02, 2016

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

SILICON LABORATORIES INC.
VALUATION AND QUALIFYING ACCOUNTS


Valuation Allowance for Deferred Tax Assets	Balance at Beginning of Period		Additions Charged to Expenses		Deductions			Balance at End of Period
			(in thousands)
Year ended January 2, 2016	$	3,455	$	6,895	$	(86	)	$	10,264
Year ended January 3, 2015	$	3,775	$	—	$	(320	)	$	3,455
Year ended December 28, 2013	$	2,114	$	2,335	$	(674	)	$	3,775

Significant Accounting Policies (Policies)	12 Months Ended
Significant Accounting Policies (Policies)	Jan. 02, 2016
Significant Accounting Policies
Foreign Currency Transactions	Foreign Currency Transactions The Company's foreign subsidiaries are considered to be extensions of the U.S. Company. The functional currency of the foreign subsidiaries is the U.S. dollar. Accordingly, gains and losses resulting from remeasuring transactions denominated in currencies other than U.S. dollars are included in other income (expense), net in the Consolidated Statements of Income.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Among the significant estimates affecting the financial statements are those related to inventories, stock-based compensation, investments in auction-rate securities, acquired intangible assets, goodwill, long-lived assets and income taxes. Actual results could differ from those estimates, and such differences could be material to the financial statements.
Reclassifications	Reclassifications Certain reclassifications have been made to prior year financial statements to conform to current year presentation.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The fair values of the Company's financial instruments are recorded using a hierarchal disclosure framework based upon the level of subjectivity of the inputs used in measuring assets and liabilities. The three levels are described below: Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2—Inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3—Inputs are unobservable for the asset or liability and are developed based on the best information available in the circumstances, which might include the Company's own data.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents consist of cash deposits, money market funds and investments in debt securities with original maturities of ninety days or less when purchased.
Investments	Investments The Company's investments typically have original maturities greater than ninety days as of the date of purchase and are classified as either available-for-sale or trading securities. Investments in available-for-sale securities are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive loss in the Consolidated Balance Sheet. Investments in trading securities are reported at fair value, with both realized and unrealized gains and losses recorded in other income (expense), net in the Consolidated Statement of Income. Investments in which the Company has the ability and intent, if necessary, to liquidate in order to support its current operations (including those with contractual maturities greater than one year from the date of purchase) are classified as short-term. The Company reviews its available-for-sale investments as of the end of each reporting period for other-than-temporary declines in fair value based on the specific identification method. The Company considers various factors in determining whether an impairment is other-than-temporary, including the severity and duration of the impairment, changes in underlying credit ratings, forecasted recovery, its intent to sell or the likelihood that it would be required to sell the investment before its anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. When the Company concludes that an other-than-temporary impairment has occurred, the Company assesses whether it intends to sell the security or if it is more likely than not that it will be required to sell the security before recovery. If either of these two conditions is met, the Company recognizes a charge in earnings equal to the entire difference between the security's amortized cost basis and its fair value. If the Company does not intend to sell a security and it is not more likely than not that it will be required to sell the security before recovery, the unrealized loss is separated into an amount representing the credit loss, which is recognized in earnings, and the amount related to all other factors, which is recorded in accumulated other comprehensive loss. In addition, the Company has made equity investments in non-publicly traded companies that it accounts for under the cost method. The Company periodically reviews these investments for other-than-temporary declines in fair value based on the specific identification method and writes down investments to their fair values when it determines that an other-than-temporary decline has occurred.
Derivative Financial Instruments	Derivative Financial Instruments The Company uses derivative financial instruments to manage certain exposures to the variability of interest rates and 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 uses interest rate swap agreements to manage exposure to interest rate risks. The swap agreements are designated and qualify as cash flow hedges. The effective portion of the gain or loss on the interest rate swaps is recorded in accumulated other comprehensive loss as a separate component of stockholders' equity and is subsequently recognized as interest expense in the Consolidated Statement of Income when the hedged exposure affects earnings. The Company uses foreign currency forward contracts to manage exposure to foreign exchange risk. These instruments are used 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 other income (expense), net in the Consolidated Statement of Income in the same period as the remeasurement loss and gain of the related foreign currency denominated asset or liability. The Company does not apply hedge accounting to its foreign currency derivative instruments.
Inventories	Inventories Inventories are stated at the lower of cost, determined using the first-in, first-out method, or market. 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 seven years. Leasehold improvements are depreciated over the contractual lease period or their useful life, whichever is shorter. In fiscal 2012, the Company purchased the facilities it had previously leased for its headquarters in Austin, Texas. The buildings are located on land which is leased through 2099 from a third party. The rents for these ground leases were prepaid for the term of the leases by the previous lessee. The buildings and leasehold interest in ground leases are being depreciated on a straight-line basis over their estimated useful lives of 40 years and 86 years, respectively.
Business Combinations	Business Combinations The Company records business combinations using the acquisition method of accounting and, accordingly, allocates the fair value of purchase consideration to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of the assets acquired and liabilities assumed is recorded as goodwill. The results of operations of the businesses acquired are included in the Company's consolidated results of operations beginning on the date of the acquisition.
Long-Lived Assets	Long-Lived Assets Purchased intangible assets are stated at cost, net of accumulated amortization, and are amortized using the straight-line method over their estimated useful lives, ranging from one to twelve years. Fair values are determined primarily using the income approach, in which the Company projects future expected cash flows and applies an appropriate discount rate. Long-lived assets "held and used" by the Company are reviewed for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets and is recorded in the period in which the determination was made. The carrying value of goodwill is reviewed at least annually by the Company for possible impairment. The goodwill impairment test is a two-step process. The first step of the impairment analysis compares the fair value of the reporting unit to the net book value of the reporting unit. In determining fair value, several valuation methodologies are allowed, although quoted market prices are the best evidence of fair value. If the results of the first step demonstrate that the net book value is greater than the fair value, the Company must proceed to step two of the analysis. Step two of the analysis compares the implied fair value of goodwill to its carrying amount. If the carrying amount of goodwill exceeds its implied fair value, an impairment loss is recognized equal to that excess. The Company tests goodwill for impairment annually as of the first day of its fourth fiscal quarter and in interim periods if events occur that would indicate that the carrying value of goodwill may be impaired.
Revenue Recognition	Revenue Recognition Revenues are generated predominately by sales of the Company's products. The Company recognizes revenue when all of the following criteria are met: 1) there is persuasive evidence that an arrangement exists, 2) delivery of goods has occurred, 3) the sales price is fixed or determinable, and 4) collectibility is reasonably assured. Generally, revenue from product sales to direct customers and contract manufacturers is recognized upon shipment. A portion of the Company's sales are made to distributors under agreements allowing certain rights of return and price protection related to the final selling price to the end customers. Accordingly, the Company defers revenue and cost of revenue on such sales until the distributors sell the product to the end customers. The net balance of deferred revenue less deferred cost of revenue associated with inventory shipped to a distributor but not yet sold to an end customer is recorded in the deferred income on shipments to distributors liability on the Consolidated Balance Sheet. Such net deferred income balance reflects the Company's estimate of the impact of rights of return and price protection. A small portion of the Company's revenues is derived from the sale of patents. The above revenue recognition criteria for patent sales are generally met upon the execution of the patent sale agreement.
Shipping and Handling	Shipping and Handling Shipping and handling costs are classified as a component of cost of revenues in the Consolidated Statements of Income.
Stock-Based Compensation	Stock-Based Compensation The Company has stock-based compensation plans, which are more fully described in Note 13, Stock-Based Compensation. The Company accounts for those plans using a fair-value method and recognizes the expense in its Consolidated Statement of Income.
Research and Development	Research and Development Research and development costs are expensed as incurred. Research and development expense consists primarily of personnel-related expenses, including stock-based compensation, as well as new product masks, external consulting and services costs, equipment tooling, equipment depreciation, amortization of intangible assets, and an allocated portion of our occupancy costs. Assets purchased to support the Company's ongoing research and development activities are capitalized when related to products which have achieved technological feasibility or have an alternative future use, and are amortized over their estimated useful lives.
Advertising	Advertising Advertising costs are expensed as incurred. Advertising expenses were $1.8 million, $1.7 million and $2.0 million in fiscal 2015, 2014 and 2013, respectively.
Income Taxes	Income Taxes The Company accounts for income taxes using the asset and liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax laws and related rates that will be in effect when the differences are expected to reverse. These differences result in deferred tax assets and liabilities, which are included in the Company's Consolidated Balance Sheet. The Company then assesses the likelihood that the deferred tax assets will be realized. A valuation allowance is established against deferred tax assets to the extent the Company believes that it is more likely than not that the deferred tax assets will not be realized, taking into consideration the level of historical taxable income and projections for future taxable income over the periods in which the temporary differences are deductible. Uncertain tax positions must meet a more-likely-than-not threshold to be recognized in the financial statements and the tax benefits recognized are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon final settlement. See Note 17, Income Taxes, for additional information.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In November 2015, the Financial Accounting Standards Board (FASB) issued FASB Accounting Standards Update (ASU) No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. The amendments in this update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This ASU is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted as of the beginning of an interim or annual reporting period. The Company early adopted this ASU on a prospective basis in the fourth quarter of fiscal 2015. Prior periods were not retrospectively adjusted. In September 2015, the FASB issued FASB ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. The amendments in this update require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period with a corresponding adjustment to goodwill in the reporting period in which the adjustment amounts are determined. The effect on earnings of changes in depreciation, amortization or other income effects, if any, as a result of the change to the provisional amounts will be recorded in the same period's financial statements, calculated as if the accounting had been completed at the acquisition date. This ASU is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in this update should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update with earlier application permitted for financial statements that have not been issued. The Company early adopted this ASU in the fourth quarter of fiscal 2015. The adoption did not have a material impact on its financial statements. In July 2015, the FASB issued FASB ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. The amendments in this update require inventory to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments in this update should be applied prospectively with earlier application permitted. The Company does not expect that the adoption of this ASU will have a material impact on its financial statements. In April 2015, the FASB issued FASB ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in this update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. ASU 2015-03 is to be applied retrospectively and represents a change in accounting principle. In August 2015, the FASB issued FASB ASU No. 2015-15, Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. ASU 2015-15 clarified the presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. Such costs may be presented in the balance sheet as an asset and subsequently amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. ASU 2015-03 and ASU 2015-15 are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. Earlier adoption is permitted for financial statements that have not been previously issued. The Company does not expect that the adoption of ASU 2015-03 and ASU 2015-15 will have a material impact on its financial statements. In May 2014, the FASB issued FASB ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a five-step process to achieve that core principle. ASU 2014-09 requires disclosures enabling users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. In August 2015, the FASB issued FASB ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which deferred the effective date of ASU 2014-09 by one year. ASU 2014-09 is now effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, using one of two retrospective application methods. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the effect that the adoption of ASU 2014-09 and ASU 2015-14 will have on its financial statements.

Earnings Per Share (Tables)

12 Months Ended

Jan. 02, 2016

Earnings Per Share

Schedule of computation of basic and diluted earnings per share

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


	Year Ended
	January 2, 2016		January 3, 2015		December 28, 2013
Net income	$	29,586	$	38,021	$	49,819

Shares used in computing basic earnings per share		42,309		42,970		42,715
Effect of dilutive securities:
Stock options and other stock-based awards		636		823		822

Shares used in computing diluted earnings per share		42,945		43,793		43,537



Earnings per share:
Basic	$	0.70	$	0.88	$	1.17
Diluted	$	0.69	$	0.87	$	1.14

Cash, Cash Equivalents and Investments (Tables)

12 Months Ended

Jan. 02, 2016

Cash, Cash Equivalents and Investments

Schedule of cash, cash equivalents, and investments

The Company's cash, cash equivalents and investments consisted of the following (in thousands):


	January 2, 2016
	Cost		Gross Unrealized Losses			Gross Unrealized Gains		Fair Value
Cash and Cash Equivalents:
Cash on hand	$	59,071	$	—		$	—	$	59,071
Available-for-sale securities:							—
Money market funds		37,721		—			—		37,721
Commercial Paper		11,272		—			—		11,272
Certificates of deposit		2,845		—			—		2,845
U.S. government agency		1,599		—			—		1,599
Municipal bond		1,576		—			1		1,577

Total available-for-sale securities		55,013		—			1		55,014

Total cash and cash equivalents	$	114,084	$	—		$	1	$	114,085



Short-term Investments:
Available-for-sale securities:
Municipal bonds	$	93,506	$	(32	)	$	42	$	93,516
Commercial Paper		11,176		—			—		11,176
Variable-rate demand notes		8,995		—			—		8,995
Certificates of deposit		8,000		—			—		8,000
U.S. government agency		3,997		—			1		3,998
International government bonds		2,227		(7	)		—		2,220
Corporate bonds		999		(3	)		—		996

Total short-term investments	$	128,900	$	(42	)	$	43	$	128,901



Long-term Investments:
Available-for-sale securities:
Auction rate securities	$	8,000	$	(874	)	$	—	$	7,126

Total long-term investments	$	8,000	$	(874	)	$	—	$	7,126


	January 3, 2015
	Cost		Gross Unrealized Losses			Gross Unrealized Gains		Fair Value
Cash and Cash Equivalents:
Cash on hand	$	52,144	$	—		$	—	$	52,144
Available-for-sale securities:
Money market funds		71,415		—			—		71,415
Certificates of deposit		7,739		—			—		7,739
Commercial paper		5,348		—			—		5,348
Municipal bonds		1,756		—			1		1,757
U.S. government agency		1,202		—			—		1,202
Corporate bonds		1,101		—			—		1,101
U.S. government bonds		1,000		—			—		1,000

Total available-for-sale securities		89,561		—			1		89,562

Total cash and cash equivalents	$	141,705	$	—		$	1	$	141,706



Short-term Investments:
Available-for-sale securities:
Municipal bonds	$	129,005	$	(25	)	$	172	$	129,152
Corporate bonds		33,043		(35	)		25		33,033
Variable-rate demand notes		12,915		—			—		12,915
Commercial paper		8,995		—			—		8,995
Asset-backed securities		5,380		(3	)		—		5,377
International government bonds		2,526		(10	)		—		2,516
U.S. government bonds		650		—			—		650
U.S. government agency		601		—			—		601
Certificates of deposit		250		—			—		250

Total short-term investments	$	193,365	$	(73	)	$	197	$	193,489



Long-term Investments:
Available-for-sale securities:
Auction rate securities	$	8,000	$	(581	)	$	—	$	7,419

Total long-term investments	$	8,000	$	(581	)	$	—	$	7,419

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


	Less Than 12 Months					12 Months or Greater					Total
As of January 2, 2016	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Municipal bonds	$	29,271	$	(30	)	$	1,198	$	(2	)	$	30,469	$	(32	)
Auction rate securities		—		—			7,126		(874	)		7,126		(874	)
International government bonds		2,220		(7	)		—		—			2,220		(7	)
Corporate bonds		996		(3	)		—		—			996		(3	)

	$	32,487	$	(40	)	$	8,324	$	(876	)	$	40,811	$	(916	)


	Less Than 12 Months					12 Months or Greater					Total
As of January 3, 2015	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Municipal bonds	$	23,735	$	(25	)	$	—	$	—		$	23,735	$	(25	)
Corporate bonds		20,327		(35	)		—		—			20,327		(35	)
Auction rate securities		—		—			7,419		(581	)		7,419		(581	)
Asset-backed securities		5,080		(3	)		—		—			5,080		(3	)
International government bond		2,516		(10	)		—		—			2,516		(10	)

	$	51,658	$	(73	)	$	7,419	$	(581	)	$	59,077	$	(654	)

Summarization of contractual underlying maturities of available-for-sale investments

The following summarizes the contractual underlying maturities of the Company's available-for-sale investments at January 2, 2016 (in thousands):


	Cost		Fair Value
Due in one year or less	$	150,455	$	150,477
Due after one year through ten years		26,113		26,093
Due after ten years		15,345		14,471

	$	191,913	$	191,041

Derivative Financial Instruments (Tables)

12 Months Ended

Jan. 02, 2016

Derivative Financial Instruments

Schedule of derivative financial instrument

The Company's derivative financial instrument in cash flow hedging relationships consisted of the following (in thousands):


		Fair Value
	Balance Sheet Location	January 2, 2016		January 3, 2015
Interest rate swap	Other assets, net	$	92	$	331

Schedule of before-tax effect of derivative instruments in cash flow hedging relationships

The before-tax effect of derivative instruments in cash flow hedging relationships was as follows (in thousands):


	Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) during the Year Ended								Location of Loss Reclassified into Income	Loss Reclassified from Accumulated OCI into Income (Effective Portion) during the Year Ended
	January 2, 2016			January 3, 2015			December 28, 2013			January 2, 2016			January 3, 2015			December 28, 2013
Interest rate swaps	$	(728	)	$	(799	)	$	611	Interest expense	$	(489	)	$	(618	)	$	(560	)

Schedule of before-tax effect of derivative instruments not designated as hedging instruments

The before-tax effect of derivative instruments not designated as hedging instruments was as follows (in thousands):


	Year Ended
Gain Recognized in Income	January 2, 2016		January 3, 2015		Location
Foreign currency forward contracts	$	935	$	1,075	Other income (expense), net

Fair Value of Financial Instruments (Tables)

12 Months Ended

Jan. 02, 2016

Fair Value of Financial Instruments

Financial assets and liabilities measured at fair value on a recurring basis

The following summarizes the valuation of the Company's financial instruments (in thousands).


	Fair Value Measurements at January 2, 2016 Using
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Cash Equivalents:
Money market funds	$	37,721	$	—	$	—	$	37,721
Commercial paper		—		11,272		—		11,272
Certificates of deposit		—		2,845		—		2,845
U.S. government agency		—		1,599		—		1,599
Municipal bonds		—		1,577		—		1,577

Total cash equivalents	$	37,721	$	17,293	$	—	$	55,014
Short-term Investments:
Municipal bonds	$	—	$	93,516	$	—	$	93,516
Commercial paper		—		11,176		—		11,176
Variable-rate demand notes		—		8,995		—		8,995
Certificates of deposit		—		8,000		—		8,000
U.S. government agency		—		3,998		—		3,998
International government bonds		—		2,220		—		2,220
Corporate bonds		—		996		—		996

Total short-term investments	$	—	$	128,901	$	—	$	128,901
Long-term Investments:
Auction rate securities	$	—	$	—	$	7,126	$	7,126

Total long-term investments	$	—	$	—	$	7,126	$	7,126
Other assets, net:
Derivative instruments	$	—	$	92	$	—	$	92

Total	$	—	$	92	$	—	$	92

Total	$	37,721	$	146,286	$	7,126	$	191,133



Liabilities:
Accrued expenses:
Contingent consideration	$	—	$	—	$	4,749	$	4,749
Other non-current liabilities:
Contingent consideration	$	—	$	—	$	9,324	$	9,324

Total	$	—	$	—	$	14,073	$	14,073


	Fair Value Measurements at January 3, 2015 Using
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Cash Equivalents:
Money market funds	$	71,415	$	—	$	—	$	71,415
Certificates of deposit		—		7,739		—		7,739
Commercial paper		—		5,348		—		5,348
Municipal bonds		—		1,757		—		1,757
U.S. government agency		—		1,202		—		1,202
Corporate bonds		—		1,101		—		1,101
U.S. government bonds		1,000		—		—		1,000

Total cash equivalents	$	72,415	$	17,147	$	—	$	89,562
Short-term Investments:
Municipal bonds	$	—	$	129,152	$	—	$	129,152
Corporate bonds		—		33,033		—		33,033
Variable-rate demand notes		—		12,915		—		12,915
Commercial paper		—		8,995		—		8,995
Asset-backed securities		—		5,377		—		5,377
International government bonds		—		2,516		—		2,516
U.S. government bond		650		—		—		650
U.S. government agency		—		601		—		601
Certificates of deposit		—		250		—		250

Total short-term investments	$	650	$	192,839	$	—	$	193,489
Long-term Investments:
Auction rate securities	$	—	$	—	$	7,419	$	7,419

Total long-term investments	$	—	$	—	$	7,419	$	7,419
Other assets, net:
Derivative instruments	$	—	$	331	$	—	$	331

Total	$	—	$	331	$	—	$	331

Total	$	73,065	$	210,317	$	7,419	$	290,801



Liabilities:
Accrued expenses:
Contingent consideration	$	—	$	—	$	4,288	$	4,288
Other non-current liabilities:
Contingent consideration	$	—	$	—	$	14,150	$	14,150

Total	$	—	$	—	$	18,438	$	18,438

Summary of quantitative information about level 3 asset fair value measurements


Fair Value at January 2, 2016 (000s)	Valuation Technique	Unobservable Input	Weighted Average
$7,126	Discounted cash flow	Estimated yield	1.06%
		Expected holding period	10 years
		Estimated discount rate	3.69%

Summary of quantitative information about level 3 liability fair value measurements


Fair Value at January 2, 2016 (000s)	Valuation Technique	Unobservable Input	Range
$14,073	Monte Carlo simulation	Expected revenue growth rate	29.8% - 55.8%
		Expected revenue volatility	20.0%
		Expected term	0.0 years - 3.0 years
		Estimated discount rate	0.34% - 0.98%

Summary of activity in Level 3 financial instruments

The following summarizes the activity in Level 3 financial instruments for the years ended January 2, 2016 and January 3, 2015 (in thousands):

Assets


	Year Ended
Auction Rate Securities	January 2, 2016			January 3, 2015
Beginning balance	$	7,419		$	10,632
Settlements		—			(4,425	)
Gain (loss) included in other comprehensive income (loss)		(293	)		1,212

Ending balance	$	7,126		$	7,419

Liabilities


	Year Ended
Contingent Consideration (1)	January 2, 2016			January 3, 2015
Beginning balance	$	18,438		$	12,919
Settlements		(4,464	)		—
Loss recognized in earnings (2)		99			5,519

Ending balance	$	14,073		$	18,438



Net loss for the period included in earnings attributable to contingent consideration held at the end of the period:	$	(99	)	$	(5,519	)

(1): In connection with the acquisition of Energy Micro, the Company recorded contingent consideration based upon the expected achievement of certain milestone goals. Changes to the fair value of contingent consideration due to changes in assumptions used in preparing the valuation model are recorded in selling, general and administrative expenses in the Consolidated Statement of Income.
(2): Changes to the estimated fair value of contingent consideration were primarily due to revisions to the Company's expectations of earn-out achievement.

Balance Sheet Details (Tables)

12 Months Ended

Jan. 02, 2016

Balance Sheet Details

Inventories

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


	January 2, 2016		January 3, 2015
Work in progress	$	36,774	$	40,640
Finished goods		17,121		11,991

	$	53,895	$	52,631

Prepaid Expenses and Other Current Assets

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


	January 2, 2016		January 3, 2015
Distributor advances	$	36,743	$	32,932
Other		15,915		16,239

	$	52,658	$	49,171

Property and Equipment

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


	January 2, 2016			January 3, 2015
Buildings and improvements	$	94,607		$	94,453
Equipment		55,072			51,654
Computers and purchased software		29,663			27,282
Leasehold interest in ground leases		23,840			23,840
Furniture and fixtures		4,777			4,008
Leasehold improvements		9,204			8,901

		217,163			210,138
Accumulated depreciation		(86,031	)		(77,318	)

	$	131,132		$	132,820

Accrued Expenses

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


	January 2, 2016		January 3, 2015
Accrued compensation and benefits	$	27,304	$	28,443
Acquisition-related holdback		—		20,010
Other		24,827		25,193

	$	52,131	$	73,646

Other Non-current Liabilities

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


	January 2, 2016		January 3, 2015
Deferred tax liabilities	$	13,741	$	5,261
Other		26,787		38,430

	$	40,528	$	43,691

Risks and Uncertainties (Tables) - Customers

12 Months Ended

Jan. 02, 2016

Accounts receivable

Risks and uncertainties

Schedule of concentration risk


	January 2, 2016			January 3, 2015
Edom Technology		17	%		25	%
Arrow Electronics		17	%		11	%
Avnet		14	%		11	%

Revenue

Risks and uncertainties

Schedule of concentration risk


	Year Ended
	January 2, 2016			January 3, 2015			December 28, 2013
End Customers
Samsung*		**			12	%		15	%
Distributors
Edom Technology		20	%		20	%		21	%
Avnet		12	%		12	%		11	%

*: Samsung's purchases were across a variety of product areas.
**: Less than 10% of revenue

Acquisitions (Tables)

12 Months Ended

Jan. 02, 2016

Telegesis

Business acquisition

Schedule of purchase price allocation

The purchase price was allocated as follows (in thousands):


	Amount			Weighted-Average Amortization Period (Years)
Intangible assets:
In-process research and development	$	10		Not amortized
Developed technology		4,980		7
Customer relationships		2,000		3
Trademarks		400		3

		7,390
Cash and cash equivalents		717
Other current assets		4,545
Goodwill		9,344
Other non-current assets		131
Current liabilities		(689	)
Non-current deferred tax liabilities		(1,508	)

Total purchase price	$	19,930

Bluegiga

Business acquisition

Schedule of purchase price allocation

The purchase price was allocated as follows (in thousands):


	Amount			Weighted-Average Amortization Period (Years)
Intangible assets:
In-process research and development	$	5,710		Not amortized
Developed technology		12,190		8
Customer relationships		6,670		4
Trademarks		880		3

		25,450
Cash and cash equivalents		1,132
Other current assets		6,156
Goodwill		34,597
Other non-current assets		208
Current liabilities		(3,289	)
Non-current deferred tax liabilities		(3,780	)
Long-term debt		(2,232	)
Other non-current liabilities		(220	)

Total purchase price	$	58,022

Energy Micro

Business acquisition

Schedule of purchase price allocation

The purchase price was allocated as follows (in thousands):


	Amount			Weighted-Average Amortization Period (Years)
Intangible assets:
In-process research and development	$	18,600		Not amortized
Core and developed technology		29,100		7
Customer relationships		6,400		8
Trademarks		1,300		8

		55,400
Cash and cash equivalents		919
Other current assets		6,486
Goodwill		98,515
Other non-current assets		3,117
Current liabilities		(8,000	)
Non-current deferred tax liabilities, net		(6,288	)
Long-term debt		(8,434	)
Other non-current liabilities		(1,133	)

Total purchase price	$	140,582

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Jan. 02, 2016

Goodwill and Other Intangible Assets

Summary of goodwill activity

The following summarizes the activity in goodwill for the years ended January 2, 2016 and January 3, 2015 (in thousands):


	Year Ended
	January 2, 2016		January 3, 2015
Beginning balance	$	228,781	$	228,781
Additions due to business combinations		43,941		—

Ending balance	$	272,722	$	228,781

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

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


		January 2, 2016					January 3, 2015
	Weighted-Average Amortization Period (Years)	January 2, 2016					January 3, 2015
	Weighted-Average Amortization Period (Years)	Gross Amount		Accumulated Amortization			Gross Amount		Accumulated Amortization
Intangible assets:
Subject to amortization:
Core and developed technology	9	$	170,541	$	(70,135	)	$	148,891	$	(47,894	)
Customer relationships	7		23,170		(7,259	)		14,500		(4,003	)
Patents	6		3,022		(1,763	)		3,000		(1,250	)
Trademarks	7		3,490		(952	)		2,210		(433	)

	9		200,223		(80,109	)		168,601		(53,580	)
Not subject to amortization:
In-process research and development	Not amortized		1,240		—			—		—

Total intangible assets		$	201,463	$	(80,109	)	$	168,601	$	(53,580	)

Schedule of estimated aggregate amortization expense for intangible assets subject to amortization for each of the five succeeding fiscal years

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
2016	$	26,677
2017		23,012
2018		20,995
2019		15,530
2020		13,298

Stockholders' Equity (Tables)

12 Months Ended

Jan. 02, 2016

Stockholders' Equity

Schedule of share repurchase programs

The Board of Directors authorized the following share repurchase programs (in thousands):


Program Authorization Date	Program Termination Date	Program Amount
August 2015	December 2016	$	100,000
October 2014	December 2015	$	100,000
January 2014	January 2015	$	100,000
January 2013	January 2014	$	50,000
April 2012	January 2013	$	100,000

Schedule of components of accumulated other comprehensive loss, net of taxes

The components of accumulated other comprehensive loss, net of taxes, were as follows (in thousands):


	Unrealized Gain (Loss) on Cash Flow Hedge			Net Unrealized Losses on Available- For-Sale Securities			Total
Balance at December 29, 2012	$	(428	)	$	(518	)	$	(946	)
Other comprehensive income (loss) before reclassifications		397			(348	)		49
Amount reclassified from accumulated other comprehensive loss		364			(151	)		213

Net change for the period		761			(499	)		262

Balance at December 28, 2013		333			(1,017	)		(684	)
Other comprehensive income (loss) before reclassifications		(520	)		720			200
Amount reclassified from accumulated other comprehensive loss		402			—			402

Net change for the period		(118	)		720			602

Balance at January 3, 2015		215			(297	)		(82	)
Other comprehensive income (loss) before reclassifications		(473	)		(276	)		(749	)
Amount reclassified from accumulated other comprehensive loss		318			6			324

Net change for the period		(155	)		(270	)		(425	)
Balance at January 2, 2016	$	60		$	(567	)	$	(507	)

Schedule of Reclassifications From Accumulated Other Comprehensive Loss


	Year ended
Reclassification (in thousands)	January 2, 2016			January 3, 2015			December 28, 2013
Losses on cash flow hedges to:
Interest expense	$	(489	)	$	(618	)	$	(560	)
Gains (losses) on available-for-sales securities to:
Interest income		(10	)		—			232

		(499	)		(618	)		(328	)
Income tax benefit		175			216			115

Total reclassifications	$	(324	)	$	(402	)	$	(213	)

Schedule of changes in the components of comprehensive income, tax effects

The income tax effects of the components of other comprehensive income (loss) were as follows (in thousands):


	Year ended
Income tax (expense) benefit on:	January 2, 2016			January 3, 2015			December 28, 2013
Net changes to available-for-sale securities:
Unrealized gains (losses) arising during the period	$	149		$	(387	)	$	187
Reclassification for gains (losses) included in net income		(4	)		—			81
Net changes to cash flow hedges:
Unrealized gains (losses) arising during the period		255			279			(214	)
Reclassification for losses included in net income		(171	)		(216	)		(196	)

	$	229		$	(324	)	$	(142	)

Stock-Based Compensation (Tables)

12 Months Ended

Jan. 02, 2016

Stock-Based Compensation

Schedule of assumptions used to estimate fair values using Black-Scholes option-pricing model for Employee Stock Purchase Plan


	Year Ended
2009 Employee Stock Purchase Plan	January 2, 2016			January 3, 2015			December 28, 2013
Expected volatility		31	%		28	%		27	%
Risk-free interest rate %		0.2	%		0.2	%		0.1	%
Expected term (in months)		8			15			7
Dividend yield		—			—			—

Schedule of assumptions used to estimate fair values using Monte Carlo simulation model for Stock Incentive Plan


	Year Ended
2009 Stock Incentive Plan	January 2, 2016			January 3, 2015			December 28, 2013
Expected volatility		31	%		33	%		32	%
Risk-free interest rate %		1.0	%		0.7	%		0.5	%
Expected term (in years)		2.9			2.8			2.9
Dividend yield		—			—			—

Summary of Stock Options activity


Stock Options	Shares (000s)			Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term (In Years)		Aggregate Intrinsic Value (000s)
Outstanding at January 3, 2015		529		$	31.50
Exercised		(306	)	$	29.14
Cancelled or expired		(11	)	$	36.91

Outstanding at January 2, 2016		212		$	34.64		1.19	$	3,119
Vested at January 2, 2016 and expected to vest		212		$	34.64		1.19	$	3,119
Exercisable at January 2, 2016		212		$	34.64		1.19	$	3,119

Summary of RSAs and RSUs Activity


RSAs and RSUs	Shares (000s)			Weighted- Average Purchase Price		Weighted-Average Remaining Vesting Term (In Years)		Aggregate Intrinsic Value (000s)
Outstanding at January 3, 2015		1,781		$	—
Granted		806		$	—
Vested or issued		(905	)	$	—
Cancelled or forfeited		(128	)	$	—

Outstanding at January 2, 2016		1,554		$	—		0.91	$	75,417
Outstanding at January 2, 2016 and expected to vest		1,450		$	—		0.91	$	70,365

Summary of MSUs Activity


MSUs	Shares (000s)			Weighted- Average Purchase Price		Weighted-Average Remaining Vesting Term (In Years)		Aggregate Intrinsic Value (000s)
Outstanding at January 3, 2015		298		$	—
Granted		89		$	—
Earned or issued		(7	)	$	—
Cancelled or forfeited		(130	)	$	—

Outstanding at January 2, 2016		250		$	—		1.09	$	12,122
Outstanding at January 2, 2016 and expected to vest		231		$	—		1.09	$	11,215

Summary of weighted average fair value at the date of grant


	Year Ended
	January 2, 2016		January 3, 2015		December 28, 2013
Per grant of RSAs and RSUs	$	49.14	$	47.93	$	43.01
Per grant of MSUs	$	48.36	$	60.08	$	31.94

Summary of stock-based payment and stock option values

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


	Year Ended
	January 2, 2016		January 3, 2015		December 28, 2013
Intrinsic value of stock options exercised	$	6,612	$	5,674	$	4,198
Intrinsic value of RSAs and RSUs that vested	$	45,298	$	32,138	$	23,649
Grant date fair value of RSAs and RSUs that vested	$	41,072	$	29,668	$	24,026

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

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


	Year Ended
	January 2, 2016		January 3, 2015		December 28, 2013
Cost of revenues	$	960	$	775	$	952
Research and development		19,451		18,521		14,530
Selling, general and administrative		22,380		19,771		15,318

		42,791		39,067		30,800
Income tax benefit		9,264		4,024		2,633

	$	33,527	$	35,043	$	28,167

Summary of shares reserved of common stock for future issuance

As of January 2, 2016, the Company had reserved shares of common stock for future issuance as follows (in thousands):


2000 Stock Incentive Plan			212
2009 Stock Incentive Plan			2,991
2009 Employee Stock Purchase Plan			671

Total shares reserved			3,874

Commitments and Contingencies (Tables)

12 Months Ended

Jan. 02, 2016

Commitments and Contingencies

Schedule of minimum annual future rentals

The minimum annual future rentals under the terms of these leases as of January 2, 2016 are as follows (in thousands):


Fiscal Year
2016	$	5,438
2017		4,394
2018		2,917
2019		1,812
2020		1,514
Thereafter		5,340

Total minimum lease payments	$	21,415

Income Taxes (Tables)

12 Months Ended

Jan. 02, 2016

Income Taxes

Components of the provision for income taxes

Significant components of the provision for income taxes are as follows (in thousands):


	Year Ended
	January 2, 2016			January 3, 2015		December 28, 2013
Current:
Domestic	$	951		$	7,083	$	4,796
International		3,015			882		4,093

Total Current		3,966			7,965		8,889
Deferred:
Domestic		(5,825	)		2,352		5,591
International		2,536			702		(2,272	)

Total Deferred		(3,289	)		3,054		3,319

	$	677		$	11,019	$	12,208

Summary of effective income tax rate reconciliation


	Year Ended
	January 2, 2016			January 3, 2015			December 28, 2013
Federal statutory rate		35.0	%		35.0	%		35.0	%
Foreign tax rate benefit		(30.7	)		(3.5	)		(8.2	)
Research and development tax credits		(5.6	)		(8.6	)		(12.8	)
Release of prior year unrecognized tax benefits		(1.9	)		(2.6	)		—
Excess officer compensation		3.2			2.3			1.9
Change in cost-sharing treatment of stock-based compensation		(7.1	)		—			—
Change in prior period valuation allowance		8.8			(1.4	)		3.1
Other		0.5			1.3			0.7

		2.2	%		22.5	%		19.7	%

Schedule of components of income before income taxes

Income before income taxes included the following components (in thousands):


	Year Ended
	January 2, 2016		January 3, 2015		December 28, 2013
Domestic	$	2,249	$	38,174	$	41,849
Foreign		28,014		10,866		20,178

	$	30,263	$	49,040	$	62,027

Significant components of the Company's deferred taxes

Significant components of the Company's deferred taxes as of January 2, 2016 and January 3, 2015 are as follows (in thousands):


	January 2, 2016			January 3, 2015
Deferred tax assets:
Net operating loss carryforwards	$	25,869		$	31,518
Research and development tax credit carryforwards		13,335			9,740
Stock-based compensation		8,757			6,353
Capitalized research and development		8,741			7,371
Deferred income on shipments to distributors		7,413			8,117
Expected future cost-sharing adjustment		25,896			—
Accrued liabilities and other		8,619			6,481

		98,630			69,580
Less: Valuation allowance		(10,264	)		(3,455	)

		88,366			66,125
Deferred tax liabilities:
Acquired intangible assets		33,020			33,630
Depreciation and amortization		2,349			3,388
Unremitted foreign earnings for expected future cost-sharing adjustment		27,495			—
Prepaid expenses and other		1,991			1,517

		64,855			38,535

Net deferred tax assets	$	23,511		$	27,590

Schedule of changes in the unrecognized tax benefits

The following table reflects changes in the unrecognized tax benefits (in thousands):


	Year Ended
	January 2, 2016			January 3, 2015			December 28, 2013
Beginning balance	$	3,929		$	4,998		$	4,364
Additions based on tax positions related to current year		432			465			316
Additions based on tax positions related to prior years		—			58			318
Reductions for tax positions related to prior years		(751	)		(1,592	)		—

Ending balance	$	3,610		$	3,929		$	4,998

Segment Information (Tables)

12 Months Ended

Jan. 02, 2016

Segment Information

Summary of the Company's revenue by product category


	Year Ended
	January 2, 2016		January 3, 2015		December 28, 2013
Internet of Things	$	262,329	$	209,005	$	181,254
Broadcast		161,787		204,256		199,837
Infrastructure		121,974		108,123		100,523
Access		98,736		99,320		98,473

Total	$	644,826	$	620,704	$	580,087

Schedule of revenue attributed to geographic area based on the end customer's shipped-to location

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


	Year Ended
	January 2, 2016		January 3, 2015		December 28, 2013
United States	$	96,959	$	89,935	$	68,566
China		281,306		271,818		253,261
Rest of world		266,561		258,951		258,260

Total	$	644,826	$	620,704	$	580,087

Schedule of property and equipment, net by geographic area

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


	January 2, 2016		January 3, 2015
United States	$	126,404	$	127,928
Rest of world		4,728		4,892

Total	$	131,132	$	132,820

Significant Accounting Policies (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012
Basis of Presentation and Principles of Consolidation
Length of fiscal year	364 days	371 days	364 days
Advertising
Advertising expenses	$ 1.8	$ 1.7	$ 2.0
Buildings
Property and Equipment
Useful life				40 years
Leasehold interest in ground leases
Property and Equipment
Useful life				86 years
Low end of range
Basis of Presentation and Principles of Consolidation
Length of fiscal year	364 days
Property and Equipment
Useful life	3 years
Long-Lived Assets
Useful live of purchased intangible assets	1 year
High end of range
Basis of Presentation and Principles of Consolidation
Length of fiscal year	371 days
Property and Equipment
Useful life	7 years
Long-Lived Assets
Useful live of purchased intangible assets	12 years

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Earnings Per Share
Net income	$ 29,586	$ 38,021	$ 49,819
Shares used in computing basic earnings per share	42,309	42,970	42,715
Effect of dilutive securities:
Stock options and other stock-based awards (in shares)	636	823	822
Shares used in computing diluted earnings per share	42,945	43,793	43,537
Earnings per share:
Basic (in dollars per share)	$ 0.70	$ 0.88	$ 1.17
Diluted (in dollars per share)	$ 0.69	$ 0.87	$ 1.14
Shares excluded from computation of diluted earning per share	100	100	400

Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015
Available-for-sale securities
Total Cost	$ 191,913
Cash, cash equivalents and investments
Auction-rate securities guaranteed by the U.S. government	6,000
Auction-rate securities privately insured	2,000
Auction-rate securities having credit rating 'AA'	6,000
Auction-rate securities having credit rating 'A'	2,000
Other-than-temporary impairment losses	0
Cash on hand, Cost	59,071	$ 52,144
Cash on hand, Fair Value	59,071	52,144
Cash and cash equivalents, Cost	114,084	141,705
Cash and cash equivalents, Gross Unrealized Gains	1	1
Cash and cash equivalents, Fair Value	114,085	141,706
Cash Equivalents:
Available-for-sale securities
Total Cost	55,013	89,561
Available-for-sale securities, Gross Unrealized Gains	1	1
Available-for-sale securities, Fair Value	55,014	89,562
Short-term Investments:
Available-for-sale securities
Total Cost	128,900	193,365
Available-for-sale securities, Gross Unrealized Losses	(42)	(73)
Available-for-sale securities, Gross Unrealized Gains	43	197
Available-for-sale securities, Fair Value	128,901	193,489
Long-term Investments:
Available-for-sale securities
Total Cost	8,000	8,000
Available-for-sale securities, Gross Unrealized Losses	(874)	(581)
Available-for-sale securities, Fair Value	7,126	7,419
Money market funds \| Cash Equivalents:
Available-for-sale securities
Total Cost	37,721	71,415
Available-for-sale securities, Fair Value	37,721	71,415
Certificates of deposit \| Cash Equivalents:
Available-for-sale securities
Total Cost	2,845	7,739
Available-for-sale securities, Fair Value	2,845	7,739
Certificates of deposit \| Short-term Investments:
Available-for-sale securities
Total Cost	8,000	250
Available-for-sale securities, Fair Value	8,000	250
Municipal bonds \| Cash Equivalents:
Available-for-sale securities
Total Cost	1,576	1,756
Available-for-sale securities, Gross Unrealized Gains	1	1
Available-for-sale securities, Fair Value	1,577	1,757
Municipal bonds \| Short-term Investments:
Available-for-sale securities
Total Cost	93,506	129,005
Available-for-sale securities, Gross Unrealized Losses	(32)	(25)
Available-for-sale securities, Gross Unrealized Gains	42	172
Available-for-sale securities, Fair Value	93,516	129,152
Commercial paper \| Cash Equivalents:
Available-for-sale securities
Total Cost	11,272	5,348
Available-for-sale securities, Fair Value	11,272	5,348
Commercial paper \| Short-term Investments:
Available-for-sale securities
Total Cost	11,176	8,995
Available-for-sale securities, Fair Value	11,176	8,995
Asset-backed securities \| Short-term Investments:
Available-for-sale securities
Total Cost		5,380
Available-for-sale securities, Gross Unrealized Losses		(3)
Available-for-sale securities, Fair Value		5,377
Variable-rate demand notes \| Short-term Investments:
Available-for-sale securities
Total Cost	8,995	12,915
Available-for-sale securities, Fair Value	8,995	12,915
International government bonds \| Short-term Investments:
Available-for-sale securities
Total Cost	2,227	2,526
Available-for-sale securities, Gross Unrealized Losses	(7)	(10)
Available-for-sale securities, Fair Value	2,220	2,516
Corporate bonds \| Cash Equivalents:
Available-for-sale securities
Total Cost		1,101
Available-for-sale securities, Fair Value		1,101
Corporate bonds \| Short-term Investments:
Available-for-sale securities
Total Cost	999	33,043
Available-for-sale securities, Gross Unrealized Losses	(3)	(35)
Available-for-sale securities, Gross Unrealized Gains		25
Available-for-sale securities, Fair Value	996	33,033
U.S. government bonds \| Cash Equivalents:
Available-for-sale securities
Total Cost		1,000
Available-for-sale securities, Fair Value		1,000
U.S. government bonds \| Short-term Investments:
Available-for-sale securities
Total Cost		650
Available-for-sale securities, Fair Value		650
US government agency \| Cash Equivalents:
Available-for-sale securities
Total Cost	1,599	1,202
Available-for-sale securities, Fair Value	1,599	1,202
US government agency \| Short-term Investments:
Available-for-sale securities
Total Cost	3,997	601
Available-for-sale securities, Gross Unrealized Gains	1
Available-for-sale securities, Fair Value	3,998	601
Auction rate securities \| Long-term Investments:
Available-for-sale securities
Total Cost	8,000	8,000
Available-for-sale securities, Gross Unrealized Losses	(874)	(581)
Available-for-sale securities, Fair Value	$ 7,126	$ 7,419

Cash, Cash Equivalents and Investments - Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Jan. 02, 2016	Jan. 03, 2015
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months	$ 32,487	$ 51,658
Fair value of available-for-sale securities, continuous loss position for twelve months or longer	8,324	7,419
Total fair value of available-for-sale securities, continuous loss position	40,811	59,077
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses	(40)	(73)
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses	(876)	(581)
Available-for-sale securities, total gross unrealized losses	(916)	(654)
Cost
Due in one year or less, Cost	150,455
Due after one year through ten years, Cost	26,113
Due after ten years, Cost	15,345
Total Cost	191,913
Fair Value
Due in one year or less, Fair Value	150,477
Due after one year through ten years, Fair Value	26,093
Due after ten years, Fair Value	14,471
Total Fair Value	191,041
Municipal bonds
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months	29,271	23,735
Fair value of available-for-sale securities, continuous loss position for twelve months or longer	1,198
Total fair value of available-for-sale securities, continuous loss position	30,469	23,735
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses	(30)	(25)
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses	(2)
Available-for-sale securities, total gross unrealized losses	(32)	(25)
Corporate bonds
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months	996	20,327
Total fair value of available-for-sale securities, continuous loss position	996	20,327
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses	(3)	(35)
Available-for-sale securities, total gross unrealized losses	(3)	(35)
Auction rate securities
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for twelve months or longer	7,126	7,419
Total fair value of available-for-sale securities, continuous loss position	7,126	7,419
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses	(874)	(581)
Available-for-sale securities, total gross unrealized losses	(874)	(581)
Asset-backed securities
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months		5,080
Total fair value of available-for-sale securities, continuous loss position		5,080
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses		(3)
Available-for-sale securities, total gross unrealized losses		(3)
International government bonds
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months	2,220	2,516
Total fair value of available-for-sale securities, continuous loss position	2,220	2,516
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses	(7)	(10)
Available-for-sale securities, total gross unrealized losses	$ (7)	$ (10)

Derivative Financial Instruments (Details) $ in Millions	Jan. 02, 2016 USD ($)
Cash flow hedges \| Interest rate swaps
Notional amount
Original notional value	$ 100

Derivative Financial Instruments - Financial Instrument (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015
Derivative financial instrument
Gains or losses from the hedging instrument which was excluded from the assessment of effectiveness	$ 0
Other assets, net
Derivative financial instrument
Fair value of interest rate swap	$ 92	$ 331

Derivative Financial Instruments - Before-tax Effect (Details) $ in Thousands	12 Months Ended
	Jan. 02, 2016 USD ($) contract	Jan. 03, 2015 USD ($) contract	Dec. 28, 2013 USD ($) contract
Derivative Instruments, Gain (Loss)
Reclassification of interest rate swap losses included in accumulated other comprehensive loss into earnings in the next 12 months	$ 100
Not Designated as Hedging Instrument \| Foreign currency forward contracts
Derivative Instruments, Gain (Loss)
Original notional value	$ 5,100	$ 7,700
Number of foreign currency forward contract held \| contract	1	1	0
Not Designated as Hedging Instrument \| Foreign currency forward contracts \| Other income (expense), net
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Income	$ 935	$ 1,075
Cash flow hedges \| Interest rate swaps
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) during period	(728)	(799)	$ 611
Original notional value	100,000
Cash flow hedges \| Interest rate swaps \| Rent expenses
Derivative Instruments, Gain (Loss)
Loss Reclassified from Accumulated OCI into Income (Effective Portion), included in rent and interest expense during period	$ (489)	$ (618)	$ (560)

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jan. 02, 2016	Jan. 03, 2015
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	$ 114,085	$ 141,706
Total short-term investments	128,901	193,489
Total long-term investments	7,126	7,419
Assets and liabilities measured at fair value on recurring basis \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	37,721	72,415
Total short-term investments		650
Total assets at fair value	37,721	73,065
Assets and liabilities measured at fair value on recurring basis \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Money market funds
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	37,721	71,415
Assets and liabilities measured at fair value on recurring basis \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| U.S. government bonds
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents		1,000
Total short-term investments		650
Assets and liabilities measured at fair value on recurring basis \| Significant Other Observable Inputs (Level 2)
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	17,293	17,147
Total short-term investments	128,901	192,839
Derivative instruments	92	331
Other assets, net	92	331
Total assets at fair value	146,286	210,317
Assets and liabilities measured at fair value on recurring basis \| Significant Other Observable Inputs (Level 2) \| Certificates of deposit
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	2,845	7,739
Total short-term investments	8,000	250
Assets and liabilities measured at fair value on recurring basis \| Significant Other Observable Inputs (Level 2) \| Commercial paper
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	11,272	5,348
Total short-term investments	11,176	8,995
Assets and liabilities measured at fair value on recurring basis \| Significant Other Observable Inputs (Level 2) \| Municipal bonds
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	1,577	1,757
Total short-term investments	93,516	129,152
Assets and liabilities measured at fair value on recurring basis \| Significant Other Observable Inputs (Level 2) \| Variable-rate demand notes
Financial assets and liabilities measured at fair value on a recurring basis
Total short-term investments	8,995	12,915
Assets and liabilities measured at fair value on recurring basis \| Significant Other Observable Inputs (Level 2) \| Asset-backed securities
Financial assets and liabilities measured at fair value on a recurring basis
Total short-term investments		5,377
Assets and liabilities measured at fair value on recurring basis \| Significant Other Observable Inputs (Level 2) \| International government bonds
Financial assets and liabilities measured at fair value on a recurring basis
Total short-term investments	2,220	2,516
Assets and liabilities measured at fair value on recurring basis \| Significant Other Observable Inputs (Level 2) \| US government agency
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	1,599	1,202
Total short-term investments	3,998	601
Assets and liabilities measured at fair value on recurring basis \| Significant Other Observable Inputs (Level 2) \| Corporate bonds
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents		1,101
Total short-term investments	996	33,033
Assets and liabilities measured at fair value on recurring basis \| Significant Unobservable Inputs (Level 3)
Financial assets and liabilities measured at fair value on a recurring basis
Total long-term investments	7,126	7,419
Total assets at fair value	7,126	7,419
Total liabilities at fair value	14,073	18,438
Assets and liabilities measured at fair value on recurring basis \| Significant Unobservable Inputs (Level 3) \| Other non-current liabilities:
Financial assets and liabilities measured at fair value on a recurring basis
Contingent consideration, noncurrent	9,324	14,150
Assets and liabilities measured at fair value on recurring basis \| Significant Unobservable Inputs (Level 3) \| Auction rate securities
Financial assets and liabilities measured at fair value on a recurring basis
Total long-term investments	7,126	7,419
Assets and liabilities measured at fair value on recurring basis \| Significant Unobservable Inputs (Level 3) \| Auction rate securities \| Accrued expenses:
Financial assets and liabilities measured at fair value on a recurring basis
Contingent consideration, current	4,749	4,288
Assets and liabilities measured at fair value on recurring basis \| Fair Value
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	55,014	89,562
Total short-term investments	128,901	193,489
Total long-term investments	7,126	7,419
Derivative instruments	92	331
Other assets, net	92	331
Total assets at fair value	191,133	290,801
Total liabilities at fair value	14,073	18,438
Assets and liabilities measured at fair value on recurring basis \| Fair Value \| Other non-current liabilities:
Financial assets and liabilities measured at fair value on a recurring basis
Contingent consideration, noncurrent	9,324	14,150
Assets and liabilities measured at fair value on recurring basis \| Fair Value \| Money market funds
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	37,721	71,415
Assets and liabilities measured at fair value on recurring basis \| Fair Value \| Certificates of deposit
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	2,845	7,739
Total short-term investments	8,000	250
Assets and liabilities measured at fair value on recurring basis \| Fair Value \| Commercial paper
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	11,272	5,348
Total short-term investments	11,176	8,995
Assets and liabilities measured at fair value on recurring basis \| Fair Value \| Municipal bonds
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	1,577	1,757
Total short-term investments	93,516	129,152
Assets and liabilities measured at fair value on recurring basis \| Fair Value \| Variable-rate demand notes
Financial assets and liabilities measured at fair value on a recurring basis
Total short-term investments	8,995	12,915
Assets and liabilities measured at fair value on recurring basis \| Fair Value \| Asset-backed securities
Financial assets and liabilities measured at fair value on a recurring basis
Total short-term investments		5,377
Assets and liabilities measured at fair value on recurring basis \| Fair Value \| International government bonds
Financial assets and liabilities measured at fair value on a recurring basis
Total short-term investments	2,220	2,516
Assets and liabilities measured at fair value on recurring basis \| Fair Value \| US government agency
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	1,599	1,202
Total short-term investments	3,998	601
Assets and liabilities measured at fair value on recurring basis \| Fair Value \| Corporate bonds
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents		1,101
Total short-term investments	996	33,033
Assets and liabilities measured at fair value on recurring basis \| Fair Value \| U.S. government bonds
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents		1,000
Total short-term investments		650
Assets and liabilities measured at fair value on recurring basis \| Fair Value \| Auction rate securities
Financial assets and liabilities measured at fair value on a recurring basis
Total long-term investments	7,126	7,419
Assets and liabilities measured at fair value on recurring basis \| Fair Value \| Auction rate securities \| Accrued expenses:
Financial assets and liabilities measured at fair value on a recurring basis
Contingent consideration, current	$ 4,749	$ 4,288

Fair Value of Financial Instruments - Auction Rate Securities (Details) - Significant Unobservable Inputs (Level 3) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Assets and liabilities measured at fair value on recurring basis
Quantitative information for Level 3 Fair Value Measurements Assets
Fair value balance at the end of the period	$ 7,126
Auction rate securities \| Weighted Average \| Discounted cash flow
Quantitative information for Level 3 Fair Value Measurements Assets
Estimated yield (as a percent)	1.06%
Expected holding period	10 years
Estimated discount rate (as a percent)	3.69%
Auction rate securities \| Assets and liabilities measured at fair value on recurring basis
Quantitative information for Level 3 Fair Value Measurements Assets
Fair value balance at the end of the period	$ 7,126	$ 7,419	$ 10,632

Fair Value of Financial Instruments - Contingent Consideration (Details) - Significant Unobservable Inputs (Level 3) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Assets and liabilities measured at fair value on recurring basis
Quantitative information for Level 3 fair value measurements liabilities
Fair value at the end of the period	$ 14,073
Contingent consideration \| Monte Carlo simulation
Quantitative information for Level 3 fair value measurements liabilities
Expected revenue volatility (as a percent)	20.00%
Contingent consideration \| Low end of range \| Monte Carlo simulation
Quantitative information for Level 3 fair value measurements liabilities
Expected revenue growth rate (as a percent)	29.80%
Expected term	0 years
Estimated discount rate (as a percent)	0.34%
Contingent consideration \| High end of range \| Monte Carlo simulation
Quantitative information for Level 3 fair value measurements liabilities
Expected revenue growth rate (as a percent)	55.80%
Expected term	3 years
Estimated discount rate (as a percent)	0.98%
Contingent consideration \| Assets and liabilities measured at fair value on recurring basis
Quantitative information for Level 3 fair value measurements liabilities
Fair value at the end of the period	$ 14,073	$ 18,438	$ 12,919

Fair Value of Financial Instruments - Assets in Level 3 (Details) - Assets and liabilities measured at fair value on recurring basis - Significant Unobservable Inputs (Level 3) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015
Fair value assets reconciliation of changes
Balance at the end of the period	$ 7,126
Auction rate securities
Fair value assets reconciliation of changes
Balance at the beginning of the period	7,419	$ 10,632
Settlements		(4,425)
Gain (loss) included in other comprehensive income (loss)	(293)	1,212
Balance at the end of the period	$ 7,126	$ 7,419

Fair Value of Financial Instruments - Liabilities in Level 3 (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015
Fair value liabilities reconciliation of changes
Fair value of debt	$ 77,500	$ 87,400
Assets and liabilities measured at fair value on recurring basis \| Significant Unobservable Inputs (Level 3)
Fair value liabilities reconciliation of changes
Balance at the end of the period	14,073
Assets and liabilities measured at fair value on recurring basis \| Significant Unobservable Inputs (Level 3) \| Contingent consideration
Fair value liabilities reconciliation of changes
Balance at the beginning of the period	18,438	12,919
Settlements	(4,464)
Loss recognized in earnings (2)	99	5,519
Balance at the end of the period	14,073	18,438
Net loss for the period included in earnings attributable to contingent consideration held at the end of the period:	$ (99)	$ (5,519)

Balance Sheet Details (Details) - USD ($) $ in Thousands	Jan. 02, 2016	Jan. 03, 2015
Property and Equipment
Property and equipment, gross	$ 217,163	$ 210,138
Accumulated depreciation	(86,031)	(77,318)
Property, Plant and Equipment, Net, Total	131,132	132,820
Inventories
Work in progress	36,774	40,640
Finished goods	17,121	11,991
Total inventories	53,895	52,631
Prepaid Expenses and Other Current Assets
Distributor Advances	36,743	32,932
Other	15,915	16,239
Prepaid expenses and other current assets	52,658	49,171
Accrued Expenses
Accrued compensation and benefits	27,304	28,443
Acquisition-related holdback		20,010
Other	24,827	25,193
Accrued Liabilities, Current, Total	52,131	73,646
Other Non-current Liabilities
Deferred tax liabilities	13,741	5,261
Other	26,787	38,430
Liabilities, Other than Long-term Debt, Noncurrent, Total	40,528	43,691
Buildings and improvements
Property and Equipment
Property and equipment, gross	94,607	94,453
Equipment
Property and Equipment
Property and equipment, gross	55,072	51,654
Computers and purchased software
Property and Equipment
Property and equipment, gross	29,663	27,282
Leasehold interest in ground leases
Property and Equipment
Property and equipment, gross	23,840	23,840
Furniture and fixtures
Property and Equipment
Property and equipment, gross	4,777	4,008
Leasehold improvements
Property and Equipment
Property and equipment, gross	$ 9,204	$ 8,901

Risks and Uncertainties (Details) - USD ($) $ in Millions	12 Months Ended
Risks and Uncertainties (Details) - USD ($) $ in Millions	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Risks and uncertainties
Notes receivable principal amount	$ 1.5
Interest rate on unsettled balances due upon demand (as a percent)	0.00%
Accounts receivable \| Customers \| Edom Technology
Risks and uncertainties
Concentrations of credit risk (as a percent)	17.00%	25.00%
Accounts receivable \| Customers \| Arrow Electronics
Risks and uncertainties
Concentrations of credit risk (as a percent)	17.00%	11.00%
Accounts receivable \| Customers \| Avnet
Risks and uncertainties
Concentrations of credit risk (as a percent)	14.00%	11.00%
Revenue \| Edom Technology
Risks and uncertainties
Concentrations of credit risk (as a percent)	20.00%	20.00%	21.00%
Revenue \| Avnet
Risks and uncertainties
Concentrations of credit risk (as a percent)	12.00%	12.00%	11.00%
Revenue \| Customers \| Samsung
Risks and uncertainties
Concentrations of credit risk (as a percent)		12.00%	15.00%
Revenue \| Customers \| Samsung \| High end of range
Risks and uncertainties
Concentrations of credit risk (as a percent)	10.00%

Acquisitions (Details) - USD ($) shares in Millions				12 Months Ended
Acquisitions (Details) - USD ($) shares in Millions	Nov. 20, 2015	Jan. 30, 2015	Jul. 01, 2013	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Acquisition
Payment of earn-out for the first annual period				$ 4,464,000
Purchase price allocation
Goodwill				$ 272,722,000	$ 228,781,000	$ 228,781,000
Weighted-Average Amortization Period				9 years
Customer relationships
Purchase price allocation
Weighted-Average Amortization Period				7 years
Trademarks
Purchase price allocation
Weighted-Average Amortization Period				7 years
Telegesis
Acquisition
Cash consideration	$ 19,900,000
Amount of initial consideration held in escrow by the company as security for breaches of representations and warranties and certain other expressly enumerated matters	2,900,000
Purchase price allocation
Intangible assets	7,390,000
Cash and cash equivalents	717,000
Other current assets	4,545,000
Goodwill	9,344,000
Other non-current assets	131,000
Current liabilities	(689,000)
Non-current deferred tax liabilities	(1,508,000)
Total purchase price	19,930,000
Acquisition-related costs recorded in selling, general and administrative expenses				$ 500,000
Telegesis \| Core and developed technology
Purchase price allocation
Intangible assets	$ 4,980,000
Weighted-Average Amortization Period	7 years
Telegesis \| Customer relationships
Purchase price allocation
Intangible assets	$ 2,000,000
Weighted-Average Amortization Period	3 years
Telegesis \| Trademarks
Purchase price allocation
Intangible assets	$ 400,000
Weighted-Average Amortization Period	3 years
Telegesis \| In-process research and development
Purchase price allocation
Intangible assets	$ 10,000
Bluegiga
Acquisition
Cash consideration		$ 58,000,000
Amount of initial consideration held in escrow by the company as security for breaches of representations and warranties and certain other expressly enumerated matters		9,400,000
Purchase price allocation
Intangible assets		25,450,000
Cash and cash equivalents		1,132,000
Other current assets		6,156,000
Goodwill		34,597,000
Other non-current assets		208,000
Current liabilities		(3,289,000)
Non-current deferred tax liabilities		(3,780,000)
Long-term debt		(2,232,000)
Other non-current liabilities		(220,000)
Total purchase price		$ 58,022,000
Acquisition-related costs recorded in selling, general and administrative expenses				1,200,000
Discount rate applicable to the cash flows (as a percent)		16.10%
Bluegiga \| Developed technology
Purchase price allocation
Intangible assets		$ 12,190,000
Weighted-Average Amortization Period		8 years
Bluegiga \| Customer relationships
Purchase price allocation
Intangible assets		$ 6,670,000
Weighted-Average Amortization Period		4 years
Bluegiga \| Trademarks
Purchase price allocation
Intangible assets		$ 880,000
Weighted-Average Amortization Period		3 years
Bluegiga \| In-process research and development
Purchase price allocation
Intangible assets		$ 5,710,000
Energy Micro
Acquisition
Cash consideration				20,000,000
Purchase price of acquisition			$ 140,600,000
Initial consideration			107,400,000
Deferred consideration in the form of a promissory note, fair value			$ 19,200,000
Restricted stock exchanged of promissory note in form of deferred consideration on acquisition			0.5
Mandatory period of creditor notice after which the deferred consideration in the form of a promissory note will be exchanged for the entity's restricted stock			2 months
Earn-Out, fair value			$ 14,000,000
Additional consideration on acquisition			$ 33,300,000	26,700,000
Minimum annual revenue growth for additional consideration (as a percent)			25.00%
Earn out period			5 years
Maximum annual Earn-Out payment			$ 6,666,666
Minimum revenue in single fiscal year from Earn-Out products required to make the entire Earn-Out amount payable			400,000,000
Amount release for the Holdback			$ 20,300,000
Percentage of Earn-Out contingent on the continued employment of certain key employees			28.76%
Period of continued employment of key employees for calculating Earn-out portion following acquisition date			3 years
Payment of earn-out for the first annual period				6,300,000
Earn-out payment representing the Departure Percentage portion and recorded as compensation expense				1,800,000
Remaining Earn-out payment representing additional consideration				$ 4,500,000
Purchase price allocation
Intangible assets			$ 55,400,000
Cash and cash equivalents			919,000
Other current assets			6,486,000
Goodwill			98,515,000
Other non-current assets			3,117,000
Current liabilities			(8,000,000)
Non-current deferred tax liabilities			(6,288,000)
Long-term debt			(8,434,000)
Other non-current liabilities			(1,133,000)
Total purchase price			140,582,000
Acquisition-related costs recorded in selling, general and administrative expenses						$ 2,400,000
Discount rate applicable to the cash flows (as a percent)				13.00%
Energy Micro \| Core and developed technology
Purchase price allocation
Intangible assets			$ 29,100,000
Weighted-Average Amortization Period			7 years
Energy Micro \| Customer relationships
Purchase price allocation
Intangible assets			$ 6,400,000
Weighted-Average Amortization Period			8 years
Energy Micro \| Trademarks
Purchase price allocation
Intangible assets			$ 1,300,000
Weighted-Average Amortization Period			8 years
Energy Micro \| In-process research and development
Purchase price allocation
Intangible assets			$ 18,600,000

Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Gross carrying amount and accumulated amortization of other intangible assets
Weighted-Average Amortization Period	9 years
Intangible assets subject to amortization, Gross Amount	$ 200,223	$ 168,601
Intangible assets subject to amortization, Accumulated Amortization	(80,109)	(53,580)
Total intangible assets, Gross Amount	201,463	168,601
Amortization expense related to intangible assets	26,500	17,900	$ 14,600
Goodwill
Goodwill, Beginning Balance	228,781	228,781
Additions due to business combinations	43,941
Goodwill, Ending Balance	272,722	228,781	$ 228,781
Estimated aggregate amortization expense for intangible assets subject to amortization for each of the five succeeding fiscal years
2016	26,677
2017	23,012
2018	20,995
2019	15,530
2020	13,298
In-process research and development
Gross carrying amount and accumulated amortization of other intangible assets
Intangible assets not subject to amortization, Gross and Net Amount	1,240
Bluegiga and Telegesis
Gross carrying amount and accumulated amortization of other intangible assets
Amount of intangible assets acquired	$ 32,900
Core and developed technology
Gross carrying amount and accumulated amortization of other intangible assets
Weighted-Average Amortization Period	9 years
Intangible assets subject to amortization, Gross Amount	$ 170,541	148,891
Intangible assets subject to amortization, Accumulated Amortization	$ (70,135)	(47,894)
Customer relationships
Gross carrying amount and accumulated amortization of other intangible assets
Weighted-Average Amortization Period	7 years
Intangible assets subject to amortization, Gross Amount	$ 23,170	14,500
Intangible assets subject to amortization, Accumulated Amortization	$ (7,259)	(4,003)
Patents
Gross carrying amount and accumulated amortization of other intangible assets
Weighted-Average Amortization Period	6 years
Intangible assets subject to amortization, Gross Amount	$ 3,022	3,000
Intangible assets subject to amortization, Accumulated Amortization	$ (1,763)	(1,250)
Trademarks
Gross carrying amount and accumulated amortization of other intangible assets
Weighted-Average Amortization Period	7 years
Intangible assets subject to amortization, Gross Amount	$ 3,490	2,210
Intangible assets subject to amortization, Accumulated Amortization	$ (952)	$ (433)

Debt (Details) $ in Thousands			12 Months Ended
Debt (Details) $ in Thousands	Jul. 24, 2015 USD ($)	Jul. 31, 2012 USD ($)	Jan. 02, 2016	Jan. 30, 2015 USD ($)
Bluegiga
Debt
Debt in connection with acquisition				$ 2,232
Credit Facilities
Debt
Maximum borrowing capacity		$ 100,000
Fixed interest rate percentage			0.764%
Combined interest rate percentage			2.264%
Credit Agreement
Debt
Maximum borrowing capacity		$ 230,000
Term of debt instrument		5 years
Amount borrowed under the Amended Credit Agreement	$ 82,500
Maximum leverage ratio			3.0
Minimum fixed charge coverage ratio			1.25
Revolving Credit Facility
Debt
Maximum borrowing capacity	$ 300,000	$ 130,000
Term of debt instrument	5 years
Sublimit on letters of credit	$ 25,000
Sublimit on swingline loan	10,000
Additional increase in borrowing capacity of the line of credit available at the entity's option	$ 200,000
Revolving credit facility, other than swingline loans \| Federal Funds
Debt
Interest rate added to the base rate (as a percent)			0.50%
Revolving credit facility, other than swingline loans \| Eurodollar base rate
Debt
Interest rate added to the base rate (as a percent)			1.00%
Revolving credit facility, other than swingline loans \| Eurodollar \| Low end of range
Debt
Interest rate added to the base rate (as a percent)			1.25%
Revolving credit facility, other than swingline loans \| Eurodollar \| High end of range
Debt
Interest rate added to the base rate (as a percent)			2.00%
Revolving credit facility, swingline and other loans \| Base rate \| Low end of range
Debt
Interest rate added to the base rate (as a percent)			0.25%
Revolving credit facility, swingline and other loans \| Base rate \| High end of range
Debt
Interest rate added to the base rate (as a percent)			1.00%

Stockholders' Equity (Details) - USD ($) $ in Thousands, shares in Millions	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013	Aug. 31, 2015	Oct. 31, 2014	Jan. 31, 2014	Jan. 31, 2013	Apr. 30, 2012
Number of shares of common stock issued	1.2
Program Amount authorized to repurchase				$ 100,000	$ 100,000	$ 100,000	$ 50,000	$ 100,000
Repurchase of common stock	$ 71,448	$ 71,676	$ 26,022
Components of accumulated other comprehensive loss, net of taxes
Balance	758,056	738,562	649,973
Other comprehensive income (loss)	(425)	602	262
Balance	761,114	758,056	738,562
Unrealized Gain on Cash Flow Hedge
Components of accumulated other comprehensive loss, net of taxes
Balance	215	333	(428)
Other comprehensive income ( loss) before reclassifications	(473)	(520)	397
Amounts reclassified from accumulated other comprehensive loss	318	402	364
Other comprehensive income (loss)	(155)	(118)	761
Balance	60	215	333
Net Unrealized Losses on Available-For-Sale Securities
Components of accumulated other comprehensive loss, net of taxes
Balance	(297)	(1,017)	(518)
Other comprehensive income ( loss) before reclassifications	(276)	720	(348)
Amounts reclassified from accumulated other comprehensive loss	6		(151)
Other comprehensive income (loss)	(270)	720	(499)
Balance	(567)	(297)	(1,017)
Accumulated Other Comprehensive Loss
Components of accumulated other comprehensive loss, net of taxes
Balance	(82)	(684)	(946)
Other comprehensive income ( loss) before reclassifications	(749)	200	49
Amounts reclassified from accumulated other comprehensive loss	324	402	213
Other comprehensive income (loss)	(425)	602	262
Balance	$ (507)	$ (82)	$ (684)

Stockholders' Equity - Amounts Reclassed from AOCI (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Amounts Reclassified from AOCI
Interest expense	$ (2,828)	$ (3,154)	$ (3,293)
Interest income	730	1,007	853
Income before income taxes	30,263	49,040	62,027
Income tax benefit	(677)	(11,019)	(12,208)
Net income	29,586	38,021	49,819
Net changes to available-for-sale securities:
Unrealized gains (losses) arising during the period	149	(387)	187
Reclassification for gains (losses) included in net income	(4)		81
Net changes to cash flow hedges
Unrealized gains (losses) arising during the period	255	279	(214)
Reclassification for losses included in net income	(171)	(216)	(196)
Other comprehensive income	229	(324)	(142)
Reclassifications From Accumulated Other Comprehensive Loss
Amounts Reclassified from AOCI
Income before income taxes	(499)	(618)	(328)
Income tax benefit	175	216	115
Net income	(324)	(402)	(213)
Unrealized Gain on Cash Flow Hedge \| Reclassifications From Accumulated Other Comprehensive Loss
Amounts Reclassified from AOCI
Interest expense	(489)	$ (618)	(560)
Net Unrealized Losses on Available-For-Sale Securities \| Reclassifications From Accumulated Other Comprehensive Loss
Amounts Reclassified from AOCI
Interest income	$ (10)		$ 232

Stock-Based Compensation (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Jan. 02, 2016 USD ($) item employee $ / shares shares	Jan. 03, 2015 $ / shares shares	Dec. 28, 2013 $ / shares shares
Stock-based compensation costs
SG&A expense related to modifications to equity awards \| $	$ 2,300
Number of employee terminated \| employee	2
MSUs
Stock-based compensation costs
Number of shares granted	89,000
Weighted-average fair value for purchase rights granted (in dollars per share) \| $ / shares	$ 48.36	$ 60.08	$ 31.94
Fair value assumptions
Cash consideration based upon achievement of specified levels of market conditions \| $	$ 0
2009 Stock Incentive Plan
Stock-based compensation costs
Number of share pools under the 2009 Plan \| item	2
Fair value assumptions
Expected volatility (as a percent)	31.00%	33.00%	32.00%
Risk-free interest rate %	1.00%	0.70%	0.50%
Expected term	2 years 10 months 24 days	2 years 9 months 18 days	2 years 10 months 24 days
2009 Stock Incentive Plan \| Low end of range
Stock-based compensation costs
Award vesting period	3 years
2009 Stock Incentive Plan \| High end of range
Stock-based compensation costs
Award vesting period	4 years
2009 Stock Incentive Plan \| Stock options
Stock-based compensation costs
Minimum exercise price as percentage of fair market value of shares on the date of grant	100.00%
Stock options granted (in shares)	0	0	0
2009 Stock Incentive Plan \| Full value awards
Stock-based compensation costs
Number of shares granted	900,000	800,000	1,100,000
2009 Stock Incentive Plan \| Full value awards \| Prior Pool
Stock-based compensation costs
Number of shares deducted for each share granted under 2009 Stock Incentive Plan	1.55
2009 Stock Incentive Plan \| MSUs
Stock-based compensation costs
Award vesting period	3 years
Number of shares granted	89,000	76,000	132,000
2009 Stock Incentive Plan \| Stock options and stock appreciation rights \| Prior Pool
Stock-based compensation costs
Number of shares deducted for each share granted under 2009 Stock Incentive Plan	1
2009 Stock Incentive Plan \| Stock options, stock appreciation rights and full value awards \| New Pool
Stock-based compensation costs
Number of shares deducted for each share granted under 2009 Stock Incentive Plan	1
2000 Stock Incentive Plan \| Low end of range
Stock-based compensation costs
Award vesting period	3 years
2000 Stock Incentive Plan \| High end of range
Stock-based compensation costs
Award vesting period	8 years
2000 Stock Incentive Plan \| Stock options \| High end of range
Stock-based compensation costs
Term of award	10 years
2009 Employee Stock Purchase Plan
Stock-based compensation costs
Minimum exercise price as percentage of fair market value of shares on the date of grant	85.00%
Maximum term of offering	24 months
Shares issued	210,000	204,000	190,000
Weighted-average fair value for purchase rights granted (in dollars per share) \| $ / shares	$ 12.70
Fair value assumptions
Expected volatility (as a percent)	31.00%	28.00%	27.00%
Risk-free interest rate %	0.20%	0.20%	0.10%
Expected term	8 months	15 months	7 months

Stock-Based Compensation - Options, RSAs, RSUs and MSUs Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Summary of stock-based payment and stock option values
Total unrecognized compensation costs related to awards	$ 47,500
Weighted-average period of recognition of unrecognized compensation costs	2 years
Cash received for the issuance of common stock, net of shares withheld for taxes	$ 3,100
Stock options
Stock options activity
Outstanding at the beginning of the year (in shares)	529
Exercised (in shares)	(306)
Cancelled or expired (in shares)	(11)
Outstanding at the end of the period (in shares)	212	529
Vested and expected to vest at the end of the period (in shares)	212
Exercisable at the end of the period (in shares)	212
Weighted-Average Exercise Price
Outstanding at the beginning of the year (in dollars per share)	$ 31.50
Exercised (in dollars per share)	29.14
Cancelled or expired (in dollars per share)	36.91
Outstanding at the end of the year (in dollars per share)	34.64	$ 31.50
Vested and expected to vest at the end of the period (in dollars per share)	34.64
Exercisable at the end of the period (in dollars per share)	$ 34.64
Weighted-Average Remaining Contractual Term
Outstanding at the end of the period	1 year 2 months 9 days
Vested and expected to vest at the end of the period	1 year 2 months 9 days
Exercisable at the end of the period	1 year 2 months 9 days
Aggregate Intrinsic Value
Outstanding at the end of the period (in dollars)	$ 3,119
Vested and expected to vest at the end of the period (in dollars)	3,119
Options exercisable at the end of the period (in dollars)	3,119
Summary of stock-based payment and stock option values
Intrinsic value of stock options exercised	$ 6,612	$ 5,674	$ 4,198
RSAs and RSUs
Summary of restricted stock awards and restricted stock units
Outstanding at the beginning the of year (in shares)	1,781
Granted (in shares)	806
Vested, earned or issued (in shares)	(905)
Cancelled or forfeited (in shares)	(128)
Outstanding at the end of the period (in shares)	1,554	1,781
Outstanding at the end of the period and expected to vest (in shares)	1,450
Weighted-Average Remaining Vesting Term
Outstanding at the end of period	10 months 28 days
Outstanding at the end of period and expected to vest	10 months 28 days
Aggregate Intrinsic Value
Outstanding at the end of the period (in dollars)	$ 75,417
Outstanding at the end of the period and expected to vest (in dollars)	$ 70,365
Weighted-average grant date fair value
Per grant (in dollars per share)	$ 49.14	$ 47.93	$ 43.01
Summary of stock-based payment and stock option values
Intrinsic value of RSAs and RSUs that vested	$ 45,298	$ 32,138	$ 23,649
Grant date fair value of RSAs and RSUs that vested	$ 41,072	$ 29,668	$ 24,026
MSUs
Summary of restricted stock awards and restricted stock units
Outstanding at the beginning the of year (in shares)	298
Granted (in shares)	89
Vested, earned or issued (in shares)	(7)
Cancelled or forfeited (in shares)	(130)
Outstanding at the end of the period (in shares)	250	298
Outstanding at the end of the period and expected to vest (in shares)	231
Weighted-Average Remaining Vesting Term
Outstanding at the end of period	1 year 1 month 2 days
Outstanding at the end of period and expected to vest	1 year 1 month 2 days
Aggregate Intrinsic Value
Outstanding at the end of the period (in dollars)	$ 12,122
Outstanding at the end of the period and expected to vest (in dollars)	$ 11,215
Weighted-average grant date fair value
Per grant (in dollars per share)	$ 48.36	$ 60.08	$ 31.94

Stock-Based Compensation - Allocated Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Stock-based compensation costs
Share based compensation cost before tax	$ 42,791	$ 39,067	$ 30,800
Income tax benefit	9,264	4,024	2,633
Share based compensation cost after tax	33,527	35,043	28,167
Total unrecognized compensation costs related to awards	47,500
Cost of revenues
Stock-based compensation costs
Share based compensation cost before tax	960	775	952
Research and development
Stock-based compensation costs
Share based compensation cost before tax	19,451	18,521	14,530
Selling, general and administrative
Stock-based compensation costs
Share based compensation cost before tax	$ 22,380	$ 19,771	$ 15,318

Stock-Based Compensation - Reserved Shares (Details) shares in Thousands	Jan. 02, 2016 shares
Stock-Based Compensation
Reserved shares of common stock for future issuance	3,874
2000 Stock Incentive Plan
Stock-Based Compensation
Reserved shares of common stock for future issuance	212
2009 Stock Incentive Plan
Stock-Based Compensation
Reserved shares of common stock for future issuance	2,991
2009 Employee Stock Purchase Plan
Stock-Based Compensation
Reserved shares of common stock for future issuance	671

Employee Benefit Plan (Details) - USD ($) $ in Millions	12 Months Ended
Employee Benefit Plan (Details) - USD ($) $ in Millions	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Employee Benefit Plan
Contribution made to the 401 (k) Plan	$ 3.3	$ 3.2	$ 3.0

Commitments and Contingencies (Details) $ in Thousands	12 Months Ended			20 Months Ended
Commitments and Contingencies (Details) $ in Thousands	Jan. 02, 2016 USD ($)	Jan. 03, 2015 USD ($)	Dec. 28, 2013 USD ($)	Sep. 29, 2015 patent	Jan. 21, 2014 patent
Operating Leases
Rent expense under operating leases	$ 4,600	$ 4,200	$ 4,200
Minimum annual future rentals
2016	5,438
2017	4,394
2018	2,917
2019	1,812
2020	1,514
Thereafter	5,340
Total minimum lease payments	$ 21,415
Cresta Technology
Patent Litigation
Number of patents allegedly infringed \| patent					3
Number of patents no longer allegedly infringed \| patent				1

Related Party Transactions (Details) - USD ($) $ in Thousands			12 Months Ended
	Jul. 01, 2013	Jul. 01, 2013	Jan. 02, 2016
Related Party Transaction
Payment of the fiscal 2014 earn-out			$ 4,464
Energy Micro
Related Party Transaction
Cash consideration			20,000
Payment of the fiscal 2014 earn-out			6,300
Contingent consideration	$ 33,300	$ 33,300	26,700
Mr. Forre \| Energy Micro
Related Party Transaction
Beneficial ownership percentage		30.00%
Cash consideration	$ 35,000		6,100
Payment of the fiscal 2014 earn-out			1,900
Contingent consideration			8,100
Mr. Bogen \| Energy Micro
Related Party Transaction
Beneficial ownership percentage		2.00%
Cash consideration		$ 900	400
Payment of the fiscal 2014 earn-out			100
Contingent consideration			$ 500
Investment in acquired entity by related party prior to the acquisition		$ 800

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Current:
Domestic	$ 951	$ 7,083	$ 4,796
International	3,015	882	4,093
Total Current	3,966	7,965	8,889
Deferred:
Domestic	(5,825)	2,352	5,591
International	2,536	702	(2,272)
Total Deferred	(3,289)	3,054	3,319
Income Tax Expense (Benefit), Total	$ 677	$ 11,019	$ 12,208
Effective income tax rate reconciliation
Federal statutory rate (as a percent)	35.00%	35.00%	35.00%
Foreign tax rate benefit (as a percent)	(30.70%)	(3.50%)	(8.20%)
Research and development tax credits (as a percent)	(5.60%)	(8.60%)	(12.80%)
Release of prior year unrecognized tax benefits (as a percent)	(1.90%)	(2.60%)
Excess officer compensation (as a percent)	3.20%	2.30%	1.90%
Change in cost-sharing treatment of stock-based compensation	(7.10%)
Change in prior period valuation allowance	8.80%	(1.40%)	3.10%
Other (as a percent)	0.50%	1.30%	0.70%
Effective income tax rate (as a percent)	2.20%	22.50%	19.70%
Undistributed earnings of foreign subsidiaries	$ 312,400
Income before income taxes
Domestic	2,249	$ 38,174	$ 41,849
Foreign	28,014	10,866	$ 20,178
Valuation allowance related to certain state loss and research and development tax credit carryforwards	500
Valuation allowance related to certain federal loss and research and development tax credit carryforwards	3,200
Valuation allowance related to change in tax accounting treatment of stock-based compensation tax credit carryforwards	600
Valuation allowance related to previously acquired federal research and development credit carryforwards	2,000
Valuation allowance related to prior year state research and development tax credit carryforwards	400
Valuation allowance related to prior year state net operating loss carryforwards	200
Release of valuation allowance due to the expiration of certain state net operating loss carryforwards	100
Deferred tax assets:
Net operating loss carryforwards	25,869	31,518
Research and development tax credit carryforwards	13,335	9,740
Stock-based compensation	8,757	6,353
Capitalized research and development	8,741	7,371
Deferred income on shipments to distributors	7,413	8,117
Expected future cost-sharing adjustment	25,896
Accrued liabilities and other	8,619	6,481
Deferred tax assets	98,630	69,580
Less: Valuation allowance	(10,264)	(3,455)
Deferred tax assets, net	88,366	66,125
Deferred tax liabilities:
Acquired intangible assets	33,020	33,630
Depreciation and amortization	2,349	3,388
Unremitted foreign earnings for expected future cost-sharing adjustment	27,495
Prepaid expenses and other	1,991	1,517
Deferred tax liabilities	64,855	38,535
Net deferred tax assets	23,511	$ 27,590
Altera decision
Deferred:
Income Tax Expense (Benefit), Total	(29,600)
Deferred tax assets:
Stock-based compensation	3,700
Expected future cost-sharing adjustment	$ 25,900

Income Taxes - Operating Loss and Tax Credit Carryforwards (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Operating loss and tax credit carryforwards
Net deferred tax assets (Liabilities)	$ 23,511	$ 27,590
Provision for U.S. federal and state income taxes	0
Income tax benefit reflected in earnings	(677)	(11,019)	$ (12,208)
Singapore
Operating loss and tax credit carryforwards
Income tax benefit reflected in earnings	$ 14,400	$ 2,000	$ 2,200
The income tax benefit (Expense) per diluted share (in dollars per share)	$ 0.34	$ 0.05	$ 0.05
Federal
Operating loss and tax credit carryforwards
Research and development tax credit carryforwards	$ 5,100
State
Operating loss and tax credit carryforwards
Operating loss carryforwards	54,000
Research and development tax credit carryforwards	12,500
Cygnal Integrated Products, Silicon Clocks, Spectra Linear and Ember \| Federal
Operating loss and tax credit carryforwards
Operating loss carryforwards	53,800
Research and development tax credit carryforwards	2,000
Energy Micro \| Foreign
Operating loss and tax credit carryforwards
Operating loss carryforwards	15,800
Bluegiga \| Foreign
Operating loss and tax credit carryforwards
Operating loss carryforwards	$ 200

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Changes in unrecognized tax benefits
Unrecognized tax benefits, balance at the beginning of the period	$ 3,929	$ 4,998	$ 4,364
Additions based on tax positions related to current year	432	465	316
Additions based on tax positions related to prior years		58	318
Reductions for tax positions related to prior years	(751)	(1,592)
Unrecognized tax benefits, balance at the end of the period	3,610	3,929	4,998
Gross unrecognized tax benefits which would affect the effective tax rate if recognized	3,200	4,000	4,800
Decrease in gross unrecognized tax benefits	600	1,300
Reduction in unrecognized tax benefits due to foreign currency remeasurement	200	300
Gross increases in unrecognized tax benefits	400	500	600
Reasonably possible change in unrecognized tax position end in next twelve months
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit	1,100
High end of range
Income Taxes
Interest in the provision for income taxes recognized	100	100	100
Accrual for the payment of interest related to unrecognized tax positions	$ 100	$ 100	$ 100

Segment Information (Details) $ in Thousands	12 Months Ended
Segment Information (Details) $ in Thousands	Jan. 02, 2016 USD ($) segment product	Jan. 03, 2015 USD ($)	Dec. 28, 2013 USD ($)
Revenue and property and equipment, net by geographic area
Revenues	$ 644,826	$ 620,704	$ 580,087
Property and equipment, net	$ 131,132	132,820
Segment information
Number of operating segments \| segment	1
Number of product categories \| product	4
United States
Revenue and property and equipment, net by geographic area
Revenues	$ 96,959	89,935	68,566
Property and equipment, net	126,404	127,928
China
Revenue and property and equipment, net by geographic area
Revenues	281,306	271,818	253,261
Rest of world
Revenue and property and equipment, net by geographic area
Revenues	266,561	258,951	258,260
Property and equipment, net	4,728	4,892
Internet Of Things
Revenue and property and equipment, net by geographic area
Revenues	262,329	209,005	181,254
Broadcast
Revenue and property and equipment, net by geographic area
Revenues	161,787	204,256	199,837
Infrastructure
Revenue and property and equipment, net by geographic area
Revenues	121,974	108,123	100,523
Access
Revenue and property and equipment, net by geographic area
Revenues	$ 98,736	$ 99,320	$ 98,473

VALUATION AND QUALIFYING ACCOUNTS (Details) - Valuation Allowance for Deferred Tax Assets - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Valuation Allowance
Balance at Beginning of Period	$ 3,455	$ 3,775	$ 2,114
Charged to Expenses	6,895		2,335
Deductions	(86)	(320)	(674)
Balance at End of Period	$ 10,264	$ 3,455	$ 3,775