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Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Dec. 30, 2017	Jan. 22, 2018	Jun. 30, 2017
Document and Entity Information
Entity Registrant Name	SILICON LABORATORIES INC
Entity Central Index Key	0001038074
Document Type	10-K
Document Period End Date	Dec. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-30
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 2.9
Entity Common Stock, Shares Outstanding		42,708,559
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 269,366	$ 141,106
Short-term investments	494,657	153,961
Accounts receivable, net	71,367	74,401
Inventories	73,132	59,578
Prepaid expenses and other current assets	39,120	61,805
Total current assets	947,642	490,851
Property and equipment, net	127,682	129,559
Goodwill	288,227	276,130
Other intangible assets, net	83,144	103,565
Other assets, net	88,387	81,739
Total assets	1,535,082	1,081,844
Current liabilities:
Accounts payable	38,851	39,577
Deferred income on shipments to distributors	50,115	45,568
Other current liabilities	73,359	54,550
Total current liabilities	162,325	139,695
Long-term debt		72,500
Convertible debt	341,879
Other non-current liabilities	77,862	42,691
Total liabilities	582,066	254,886
Commitments and contingencies
Stockholders' equity:
Preferred stock - $0.0001 par value; 10,000 shares authorized; no shares issued
Common stock - $0.0001 par value; 250,000 shares authorized; 42,707 and 41,889 shares issued and outstanding at December 30, 2017 and December 31, 2016, respectively	4	4
Additional paid-in capital	102,862	24,463
Retained earnings	851,307	801,999
Accumulated other comprehensive income (loss)	(1,157)	492
Total stockholders' equity	953,016	826,958
Total liabilities and stockholders' equity	$ 1,535,082	$ 1,081,844

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 30, 2017	Dec. 31, 2016
Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	42,707,000	41,889,000
Common stock, shares outstanding	42,707,000	41,889,000

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Consolidated Statements of Income
Revenues	$ 768,867	$ 697,626	$ 644,826
Cost of revenues	314,676	276,122	264,056
Gross margin	454,191	421,504	380,770
Operating expenses:
Research and development	209,491	199,744	188,050
Selling, general and administrative	159,726	155,483	160,486
Operating expenses	369,217	355,227	348,536
Operating income	84,974	66,277	32,234
Other income (expense):
Interest income and other, net	6,057	806	857
Interest expense	(14,128)	(2,587)	(2,828)
Income before income taxes	76,903	64,496	30,263
Provision for income taxes	29,811	3,002	677
Net income	$ 47,092	$ 61,494	$ 29,586
Earnings per share:
Basic (in dollars per share)	$ 1.11	$ 1.47	$ 0.70
Diluted (in dollars per share)	$ 1.09	$ 1.45	$ 0.69
Weighted-average common shares outstanding:
Basic (in shares)	42,446	41,713	42,309
Diluted (in shares)	43,332	42,376	42,945

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Consolidated Statements of Comprehensive Income
Net income	$ 47,092	$ 61,494	$ 29,586
Net changes to available-for-sale securities:
Unrealized losses arising during the period	(729)	(179)	(415)
Net changes to cash flow hedges:
Unrealized gains (losses) arising during the period		1,466	(728)
Reclassification for (gains) losses included in net income	(1,808)	249	489
Other comprehensive income (loss), before tax	(2,537)	1,536	(654)
Provision (benefit) for income taxes	(888)	537	(229)
Other comprehensive income (loss)	(1,649)	999	(425)
Comprehensive income	$ 45,443	$ 62,493	$ 29,161

Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income(Loss)	Total
Balance at Jan. 03, 2015	$ 4	$ 29,501	$ 728,633	$ (82)	$ 758,056
Balance (in shares) at Jan. 03, 2015	42,225
Increase (Decrease) in Stockholders' Equity
Net income			29,586		29,586
Other comprehensive income (loss)				(425)	(425)
Stock issuances, net of shares withheld for taxes		3,128			3,128
Stock issuances, net of shares withheld for taxes (in shares)	1,152
Income tax benefit (shortfall) from stock-based awards		(613)			(613)
Repurchases of common stock		(60,978)	(10,470)		(71,448)
Repurchases 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
Increase (Decrease) in Stockholders' Equity
Net income			61,494		61,494
Other comprehensive income (loss)				999	999
Stock issuances, net of shares withheld for taxes		6,346			6,346
Stock issuances, net of shares withheld for taxes (in shares)	1,055
Income tax benefit (shortfall) from stock-based awards		(2,061)			(2,061)
Repurchases of common stock		(33,299)	(7,244)		(40,543)
Repurchases of common stock (in shares)	(893)
Stock-based compensation		39,609			39,609
Balance at Dec. 31, 2016	$ 4	24,463	801,999	492	$ 826,958
Balance (in shares) at Dec. 31, 2016	41,889				41,889
Increase (Decrease) in Stockholders' Equity
Cumulative effect of adoption of accounting standard			2,216		$ 2,216
Net income			47,092		47,092
Other comprehensive income (loss)				(1,649)	(1,649)
Stock issuances, net of shares withheld for taxes		(3,938)			(3,938)
Stock issuances, net of shares withheld for taxes (in shares)	818
Stock-based compensation		44,809			44,809
Convertible debt issuance		37,528			37,528
Balance at Dec. 30, 2017	$ 4	$ 102,862	$ 851,307	$ (1,157)	$ 953,016
Balance (in shares) at Dec. 30, 2017	42,707				42,707

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Operating Activities
Net Income	$ 47,092	$ 61,494	$ 29,586
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation of property and equipment	14,766	13,216	12,517
Amortization of other intangible assets and other assets	27,246	27,715	29,131
Amortization of debt discount and debt issuance costs	10,146
Stock-based compensation expense	44,752	39,628	42,791
Income tax shortfall from stock-based awards		(1,671)	(2,028)
Deferred income taxes	(26,452)	(4,087)	(2,136)
Changes in operating assets and liabilities:
Accounts receivable	3,234	46	1,702
Inventories	(13,416)	(6,093)	2,093
Prepaid expenses and other assets	25,266	(3,568)	(870)
Accounts payable	(468)	263	6,662
Other current liabilities and income taxes	61,924	2,879	2,458
Deferred income on shipments to distributors	4,453	9,713	(5,298)
Other non-current liabilities	(9,022)	(10,625)	(11,161)
Net cash provided by operating activities	189,521	128,910	105,447
Investing Activities
Purchases of available-for-sale investments	(636,363)	(185,231)	(107,366)
Sales and maturities of available-for-sale investments	294,452	161,921	171,831
Purchases of property and equipment	(12,252)	(10,927)	(11,268)
Purchases of other assets	(4,960)	(8,801)	(6,399)
Acquisitions of business, net of cash acquired	(15,168)	(6,546)	(96,112)
Net cash used in investing activities	(374,291)	(49,584)	(49,314)
Financing Activities
Proceeds from issuance of long-term debt, net	389,468		81,238
Payments on debt	(72,500)	(5,000)	(94,706)
Repurchases of common stock		(40,543)	(71,448)
Payment of taxes withheld for vested stock awards	(15,753)	(10,561)	(11,372)
Proceeds from the issuance of common stock	11,815	13,299	16,998
Payment of acquisition-related contingent consideration		(9,500)	(4,464)
Net cash provided by (used in) financing activities	313,030	(52,305)	(83,754)
Increase (decrease) in cash and cash equivalents	128,260	27,021	(27,621)
Cash and cash equivalents at beginning of period	141,106	114,085	141,706
Cash and cash equivalents at end of period	269,366	141,106	114,085
Supplemental Disclosure of Cash Flow Information:
Interest paid	3,859	2,222	2,470
Income taxes paid	$ 8,929	11,185	$ 2,157
Supplemental Disclosure of Non-Cash Activity:
Stock issued in business combination		$ 4,181

Description of Business	12 Months Ended
Description of Business	Dec. 30, 2017
Description of Business
Description of Business	1. Description of Business Silicon Laboratories Inc. (the "Company"), a Delaware corporation, is a leading provider of silicon, software and solutions for a smarter, more connected world. Our award-winning technologies are shaping the future of the Internet of Things (IoT), Internet infrastructure, industrial automation, 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	Dec. 30, 2017
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 2017, 2016 and 2015 had 52 weeks and ended on December 30, 2017, December 31, 2016 and January 2, 2016, respectively. The accompanying Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Foreign Currency Transactions The Company's foreign subsidiaries are considered to be extensions of the U.S. Company. The functional currency of the foreign subsidiaries is the U.S. dollar. Accordingly, gains and losses resulting from remeasuring transactions denominated in currencies other than U.S. dollars are included in interest income and other, net in the Consolidated Statements of Income. Use of Estimates The preparation of financial statements in conformity with 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 hierarchical disclosure framework based upon the level of subjectivity of the inputs used in measuring assets and liabilities. The three levels are described below: Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2—Inputs 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, certificates of deposit, money market funds and investments in debt securities with original maturities of ninety days or less when purchased. Investments The Company's investments typically have original maturities greater than ninety days as of the date of purchase and are classified as either available-for-sale or trading securities. Investments in available-for-sale securities are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive income (loss) in the Consolidated Balance Sheet. Investments in trading securities are reported at fair value, with both realized and unrealized gains and losses recorded in interest income and other, net in the Consolidated Statement of Income. Investments in which the Company has the ability and intent, if necessary, to liquidate in order to support its current operations (including those with contractual maturities greater than one year from the date of purchase) are classified as short-term. The Company reviews its available-for-sale investments as of the end of each reporting period for 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 income (loss). In addition, the Company has made equity investments in non-publicly traded companies that it accounts for using the equity method or cost method. Equity investments in which the Company does not have control, but has the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. The Company's proportionate share of income or loss is recorded in interest income and other, net in the Consolidated Statement of Income. All other non-marketable equity investments are accounted for using 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. There were no impairment charges recognized on equity investments during any of the periods presented. 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 income (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 interest income and other, net in the Consolidated Statement of Income in the same period as the remeasurement loss and gain of the related foreign currency denominated asset or liability. The Company does not apply hedge accounting to its foreign currency derivative instruments. Inventories Inventories are stated at the lower of cost, determined using the first-in, first-out method, or net realizable value. The Company writes down the carrying value of inventory to net realizable value for estimated obsolescence or unmarketable inventory based upon assumptions about the age of inventory, future demand and market conditions. Inventory impairment charges establish a new cost basis for inventory and charges are not subsequently reversed to income even if circumstances later suggest that increased carrying amounts are recoverable. Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the useful lives of the assets ranging from three to seven years. Leasehold improvements are depreciated over the lease term or their useful life, whichever is shorter. The Company owns 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 12, 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 $1.4 million, $1.6 million and $1.8 million in fiscal 2017, 2016 and 2015, 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 16, Income Taxes, for additional information. Recent Accounting Pronouncements In August 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The objectives of this ASU are to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements and to make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. This ASU is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. The Company is currently evaluating the effect of the adoption of this ASU, but anticipates that the adoption will not have a material impact on its financial statements. In January 2017, the FASB issued ASU No. 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments—Equity Method and Joint Ventures (Topic 323). This ASU amends the disclosure requirements for ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), ASU No. 2016-02, Leases (Topic 842) and ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU states that if a registrant does not know or cannot reasonably estimate the impact that the adoption of the above ASUs is expected to have on the financial statements, then in addition to making a statement to that effect, the registrant should consider additional qualitative financial statement disclosures to assist the reader in assessing the significance of the impact that the standard will have on the financial statements of the registrant when adopted. This ASU was effective upon issuance. The Company adopted this ASU and added qualitative financial statement disclosures as deemed necessary. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU eliminates Step 2 from the goodwill impairment test. Instead, an entity should recognize an impairment charge for the amount by which the carrying value exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to that reporting unit. This ASU is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is currently evaluating the effect of the adoption of this ASU, but anticipates that the adoption will not have a material impact on its financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This ASU clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This ASU is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The impact of the adoption of this ASU on the Company's financial statements will be dependent upon the terms of any future acquisitions or dispositions. In August 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This ASU requires the recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this ASU should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company early adopted this ASU on January 1, 2017. The adoption did not have a material impact on its financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU provides guidance on statement of cash flows presentation for eight specific cash flow issues where diversity in practice exists. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company expects that the adoption will not have a material impact on its financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic326): Measurement of Credit Losses on Financial Instruments. This ASU requires instruments measured at amortized cost to be presented at the net amount expected to be collected. Entities are also required to record allowances for available-for-sale debt securities rather than reduce the carrying amount. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company expects that the adoption will not have a material impact on its financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This ASU simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The Company adopted this ASU on January 1, 2017. Amendments related to the classification of excess tax benefits on the statement of cash flows were applied prospectively. Prior periods have not been adjusted. In connection with its adoption of ASU 2016-09, the Company has recorded excess tax benefits of $4.3 million during fiscal 2017. The adoption had no other material impact on the Company's financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. For operating leases, a lessee is required to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial position. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is evaluating the effect that the adoption of this ASU will have on its financial statements. The Company currently expects that most of its operating lease commitments will be subject to the new standard and recognized as right-of-use assets and operating lease liabilities upon the adoption of ASU 2016-02, which will increase the total assets and total liabilities that it reports relative to such amounts prior to adoption. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This ASU addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company expects that the adoption will not have a material impact on its financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Accounting Standards Codification (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. In August 2015, the FASB issued 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 to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. In 2016, the FASB issued the following amendments to ASC 606: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance on principal versus agent considerations; ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarifies guidance on identification of performance obligations and licensing implementation; ASU No. 2016-12, Compensation—Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which provides clarifying guidance on assessing collectibility, presentation of sales taxes, noncash consideration, contract modifications and completed contracts; and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, which clarifies narrow aspects of ASC 606 or corrects unintended application of the guidance. The standard may be applied retrospectively to each prior period presented (full retrospective method) or retrospectively with the cumulative effect recognized as of the date of initial application (modified retrospective method). Under the new standard, the Company expects the timing of revenue recognition from sales to distributors to be accelerated. The Company will recognize revenue at the time of sale to the distributor, net of the impact of estimated price adjustments and rights of return. As a result, revenue recognition is expected to be more directly impacted by shipments to distributors. The Company will adopt this standard using the modified retrospective method. Under this method, incremental disclosures will be provided to present each financial statement line item for fiscal 2018 under the prior standard. The Company is substantially complete with its evaluation of the effect that the adoption will have on its financial statements. In connection with its adoption of ASC 606, the Company expects to record a cumulative-effect adjustment to retained earnings of $26.2 million on December 31, 2017. This adjustment reflects the acceleration of $49.1 million in revenues and $19.7 million in costs of revenues as well as other items.

Earnings Per Share

12 Months Ended

Dec. 30, 2017

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

	December 30, 2017		December 31, 2016		January 2, 2016
Net income	$	47,092	$	61,494	$	29,586

Shares used in computing basic earnings per share		42,446		41,713		42,309
Effect of dilutive securities:
Stock options and other stock-based awards		886		663		636

Shares used in computing diluted earnings per share		43,332		42,376		42,945



Earnings per share:
Basic	$	1.11	$	1.47	$	0.70
Diluted	$	1.09	$	1.45	$	0.69

For fiscal years ended December 30, 2017, December 31, 2016 and January 2, 2016, approximately 0.0 million, 0.1 million and 0.1 million shares, respectively, consisting of restricted stock units (RSUs), market stock units (MSUs) and stock options, were not included in the diluted earnings per share calculation since the shares were anti-dilutive.

The Company intends to settle the principal amount of its convertible senior notes in cash and any excess value in shares in the event of a conversion. Accordingly, shares issuable upon conversion of the principal amount have been excluded from the calculation of diluted earnings per share. If the market value of the notes under certain prescribed conditions exceeds the conversion amount, the excess will be included in the denominator for the computation of diluted earnings per share using the treasury stock method. As of December 30, 2017, no such shares were included in the denominator for the calculation of diluted earnings per share. See Note 10, Debt, to the Consolidated Financial Statements for additional information.

Fair Value of Financial Instruments

12 Months Ended

Dec. 30, 2017

Fair Value of Financial Instruments

Fair Value of Financial Instruments

4. 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 December 30, 2017 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	$	106,047	$	—	$	—	$	106,047
Corporate debt securities		—		11,231		—		11,231
Government debt securities		53,615		1,453		—		55,068

Total cash equivalents	$	159,662	$	12,684	$	—	$	172,346
Short-term investments:
Government debt securities	$	94,575	$	228,247	$	—	$	322,822
Corporate debt securities		—		171,835		—		171,835

Total short-term investments	$	94,575	$	400,082	$	—	$	494,657
Other assets, net:
Auction rate securities	$	—	$	—	$	5,681	$	5,681

Total	$	—	$	—	$	5,681	$	5,681


Total	$	254,237	$	412,766	$	5,681	$	672,684

	Fair Value Measurements at December 31, 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	$	69,432	$	—	$	—	$	69,432
Corporate debt securities		—		7,153		—		7,153
Government debt securities		—		3,904		—		3,904

Total cash equivalents	$	69,432	$	11,057	$	—	$	80,489
Short-term investments:
Government debt securities	$	12,416	$	97,103	$	—	$	109,519
Corporate debt securities		—		44,442		—		44,442

Total short-term investments	$	12,416	$	141,545	$	—	$	153,961
Other assets, net:
Auction rate securities	$	—	$	—	$	5,196	$	5,196
Derivative instruments		—		1,808		—		1,808

Total	$	—	$	1,808	$	5,196	$	7,004


Total	$	81,848	$	154,410	$	5,196	$	241,454

Valuation methodology

The Company's cash equivalents and short-term investments that are classified as Level 2 are valued using non-binding market consensus prices that are corroborated with observable market data; quoted market prices for similar instruments in active markets; 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.

Available-for-sale investments

The Company's investments are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive income (loss) in the Consolidated Balance Sheet. The following summarizes the contractual underlying maturities of the Company's available-for-sale investments at December 30, 2017 (in thousands):

	Cost		Fair Value

Due in one year or less	$	393,600	$	393,201
Due after one year through ten years		198,981		197,922
Due after ten years		81,884		81,561

	$	674,465	$	672,684

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 December 30, 2017	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Government debt securities	$	244,880	$	(931	)	$	3,027	$	(15	)	$	247,907	$	(946	)
Corporate debt securities		151,149		(447	)		11,578		(73	)		162,727		(520	)
Auction rate securities		—		—			5,681		(319	)		5,681		(319	)

	$	396,029	$	(1,378	)	$	20,286	$	(407	)	$	416,315	$	(1,785	)

	Less Than 12 Months					12 Months or Greater					Total

As of December 31, 2016	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Government debt securities	$	79,743	$	(156	)	$	—	$	—		$	79,743	$	(156	)
Corporate debt securities		21,737		(132	)		—		—			21,737		(132	)
Auction rate securities		—		—			5,196		(804	)		5,196		(804	)

	$	101,480	$	(288	)	$	5,196	$	(804	)	$	106,676	$	(1,092	)

The gross unrealized losses as of December 30, 2017 and December 31, 2016 were due primarily to changes in market interest rates and the illiquidity of the Company's auction-rate securities. The Company's auction-rate securities have been illiquid since 2008 when auctions for the securities failed because sell orders exceeded buy orders. These securities have a contractual maturity date of 2046 at December 30, 2017. The Company is unable to predict if these funds will become available before their maturity date.

The Company considers the declines in market value of its marketable securities investment portfolio to be temporary in nature. When evaluating an investment for other-than-temporary impairment, the Company reviews factors such as the severity and duration of the impairment, changes in underlying credit ratings, forecasted recovery, the Company's intent to sell or the likelihood that it would be required to sell the investment before its anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. As of December 30, 2017, the Company has determined that no other-than-temporary impairment losses existed .

At December 30, 2017 and December 31, 2016, there were no material unrealized gains associated with the Company's available-for-sale investments.

Level 3 fair value measurements

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

Auction rate securities

Fair Value at December 30, 2017 (000s)	Valuation Technique	Unobservable Input	Weighted Average

$5,681	Discounted cash flow	Estimated yield	1.74%
		Expected holding period	10 years
		Estimated discount rate	3.37%

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

The Company has followed an established internal control procedure used in valuing contingent consideration. The valuation of contingent consideration for the Zentri acquisition was based on a discounted cash flow model. The valuation of contingent consideration for the Energy Micro acquisition was based on a Monte Carlo simulation model. The fair value of the valuations was estimated on a quarterly basis through a collaborative effort by the Company's sales, marketing and finance departments.

The following summarizes the activity in Level 3 financial instruments for the years ended December 30, 2017 and December 31, 2016 (in thousands):

Assets

	Year Ended

Auction Rate Securities	December 30, 2017		December 31, 2016
Beginning balance	$	5,196	$	7,126
Settlements		—		(2,000	)
Gain included in other comprehensive income (loss)		485		70

Ending balance	$	5,681	$	5,196

Liabilities

	Year Ended

Contingent Consideration (1)	December 30, 2017			December 31, 2016
Beginning balance	$	—		$	14,073
Issues		3,829			—
Settlements (2)		—			(11,375	)
Reclassification to acquisition-related liabilities (3)		(3,380	)		—
Gain recognized in earnings (4)		(449	)		(2,698	)

Ending balance	$	—		$	—

(1): In connection with the acquisitions of Zentri and 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 models were recorded in selling, general and administrative expenses in the Consolidated Statement of Income.
(2): On March 11, 2016, the Company entered into an agreement which settled the total amount of contingent consideration related to the Energy Micro acquisition (including all amounts for fiscal 2015 through 2018). See Note 8, Acquisitions, for additional information.
(3): The milestone goal related to the Zentri contingent consideration was based on fiscal 2017 revenue from certain Zentri products, which is now completed. The accrued consideration is recorded in other current liabilities in the Consolidated Balance Sheet.
(4): The gain recognized in earnings in fiscal 2016 was due to the settlement of the Energy Micro contingent consideration. This gain was offset in part by a charge of approximately $2.7 million recorded in fiscal 2016 for a portion of the contingent consideration accounted for as post-combination compensation expense.

Fair values of other financial instruments

The Company's debt is recorded at cost, but is measured at fair value for disclosure purposes. The fair value of the Company's convertible senior notes is determined using observable market prices. The notes are traded in less active markets and are therefore classified as a Level 2 fair value measurement. The fair value of the convertible senior notes at December 30, 2017 was $466.2 million. The Company's prior debt under the Credit Facility bore interest at the Eurodollar rate plus an applicable margin. Fair value was 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 December 30, 2017, there were no amounts outstanding under the Credit Facility. As of December 31, 2016, the fair value of the Company's debt under the Credit Facility was approximately $72.5 million.

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

- Definition

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

+ References + Details

Derivative Financial Instruments

12 Months Ended

Dec. 30, 2017

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 Facility. The interest payments on the facility are calculated using a variable-rate of interest. The Company entered into an interest rate swap agreement with an original notional value of $72.5 million in July 2016 and, effectively, converted the Eurodollar portion of the variable-rate interest payments to fixed-rate interest payments through July 2020. The Company terminated the swap agreement on March 6, 2017 in connection with the payoff of its Credit Facility. The Company's previous swap agreement with a remaining notional value of $72.5 million was terminated on July 8, 2016.

The Company's interest rate swap agreements were designated and qualified as cash flow hedges. The effective portion of the gain or loss on the interest rate swaps was recorded in accumulated other comprehensive income (loss) as a separate component of stockholders' equity and was subsequently recognized as interest expense in the Consolidated Statement of Income when the hedged exposure affected earnings. The termination of the swap agreement on March 6, 2017 resulted in the reclassification of $1.8 million of unrealized gains that were previously recorded in accumulated other comprehensive income (loss) into earnings during fiscal 2017. The fair value of the interest rate swap terminated on July 8, 2016 was not material. The Company did not discontinue any other cash flow hedges in 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	December 30, 2017		December 31, 2016
Interest rate swap	Other assets, net	$	—	$	1,808

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

	December 30, 2017		December 31, 2016		January 2, 2016				December 30, 2017		December 31, 2016			January 2, 2016
Interest rate swaps	$	—	$	1,466	$	(728	)	Interest expense	$	1,808	$	(249	)	$	(489	)

Foreign Currency Forward Contracts

The Company uses foreign currency forward contracts to manage exposure to foreign exchange risk. As of December 30, 2017 and December 31, 2016, the Company held one foreign currency forward contract denominated in Norwegian Krone with a notional value of $2.4 million and $3.9 million, respectively. The fair value of the contracts was not material as of December 30, 2017 or December 31, 2016. The contract held as of December 30, 2017 has a maturity date of March 28, 2018 and it was not designated as a hedging instrument.

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

	Year Ended

Gain (Loss) Recognized in Income	December 30, 2017			December 31, 2016			January 2, 2016		Location
Foreign currency forward contracts	$	(207	)	$	(92	)	$	935	Interest income and other, net

Balance Sheet Details

12 Months Ended

Dec. 30, 2017

Balance Sheet Details

Balance Sheet Details

6. Balance Sheet Details

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

Accounts Receivable, Net

	December 30, 2017			December 31, 2016

Accounts receivable	$	72,005		$	75,035
Allowance for doubtful accounts		(638	)		(634	)

	$	71,367		$	74,401

Inventories

	December 30, 2017		December 31, 2016

Work in progress	$	46,698	$	40,755
Finished goods		26,434		18,823

	$	73,132	$	59,578

Prepaid Expenses and Other Current Assets

	December 30, 2017		December 31, 2016

Distributor advances	$	17,825	$	40,205
Other		21,295		21,600

	$	39,120	$	61,805

Property and Equipment

	December 30, 2017			December 31, 2016

Buildings and improvements	$	96,196		$	94,977
Equipment		59,836			57,677
Computers and purchased software		37,598			35,492
Leasehold interest in ground leases		23,840			23,840
Furniture and fixtures		5,691			5,484
Leasehold improvements		10,483			10,083

		233,644			227,553
Accumulated depreciation		(105,962	)		(97,994	)

	$	127,682		$	129,559

Other Current Liabilities

	December 30, 2017		December 31, 2016

Accrued compensation and benefits	$	33,631	$	28,781
Accrued price protection credits		8,239		2,287
Other		31,489		23,482

	$	73,359	$	54,550

Other Non-current Liabilities

	December 30, 2017		December 31, 2016

Non-current tax liabilities	$	39,196	$	—
Software license accruals		12,152		14,436
Deferred tax liabilities		10,355		13,119
Other		16,159		15,136

	$	77,862	$	42,691

Risks and Uncertainties

12 Months Ended

Dec. 30, 2017

Risks and Uncertainties

Risks and Uncertainties

7. Risks and Uncertainties

Financial Instruments

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



Avnet	16	%	12	%
Arrow Electronics	14	%	13	%
Edom Technology	*		19	%

*: Less than 10% of accounts receivable

The Company performs periodic credit evaluations of its customers' financial condition and generally requires no collateral from its customers. The Company provides an allowance for 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 two notes receivable for $1.5 million and $0.7 million from a privately held company, which were recorded in other assets, net in the Consolidated Balance Sheet. The Company holds an equity investment in another privately held company with a carrying value of $3.8 million and $2.8 million as of December 30, 2017 and December 31, 2016, respectively. The investment is accounted for using the cost method and was recorded in other assets, net in the Consolidated Balance Sheet.

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 end customers or contract manufacturers accounted for greater than 10% of revenue during fiscal 2017, 2016 or 2015. The Company's distributors that accounted for greater than 10% of revenue consisted of the following:

	Year Ended

	December 30, 2017			December 31, 2016			January 2, 2016
Edom Technology		19	%		17	%		20	%
Avnet		14	%		13	%		12	%
Arrow Electronics		12	%		11	%		*

*: Less than 10% of revenue

Acquisitions

12 Months Ended

Dec. 30, 2017

Acquisitions

Acquisitions

8. Acquisitions

Sigma Designs

On December 7, 2017, the Company entered into an agreement to acquire Sigma Designs, Inc., a California corporation. Sigma Designs provides solutions for the connected home including Z-Wave, an IoT technology for smart home solutions. Under the terms of the agreement, the Company would have acquired all of the outstanding capital stock of Sigma Designs in exchange for $7.05 per share in a cash transaction valued at approximately $282 million. This acquisition is subject to certain closing conditions. In the event that certain of such closing conditions are not met, the parties have agreed that Sigma Designs would instead sell its Z-Wave business to the Company for $240 million, contingent upon approval by Sigma Designs' stockholders.

On January 23, 2018, Sigma Designs announced that due to the closing conditions for the acquisition of the entirety of Sigma Designs not being satisfied, the parties would move forward with the sale of the Z-Wave business to the Company in an asset sale, subject to approval by Sigma Designs' shareholders.

Zentri

On January 20, 2017, the Company acquired Zentri, Inc., a private company. Zentri is an innovator in low-power, cloud-connected Wi-Fi technologies for the IoT. The Company acquired Zentri for approximately $18.1 million, including initial cash consideration of approximately $14.3 million, and potential additional consideration with an estimated fair value of approximately $3.8 million at the date of acquisition. The amount of potential additional consideration is up to approximately $10.0 million based on fiscal 2017 revenue from certain Zentri products.

The purchase price was allocated as follows: intangible assets—$6.7 million; goodwill—$12.1 million; and other net liabilities—$0.7 million. The goodwill is not deductible for tax purposes. Pro forma information related to this acquisition has not been presented because it would not be materially different from amounts reported.

Micrium

On October 3, 2016, the Company acquired Micrium, a private company. Micrium is a supplier of real-time operating system (RTOS) software for the IoT. The Company acquired Micrium for approximately $12.4 million, consisting of approximately $8.2 million in cash and $4.2 million in stock consideration. An additional approximately $1.0 million in stock consideration 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 over four years.

The purchase price was allocated as follows: intangible assets—$9.5 million; goodwill—$3.4 million; and other net assets—$(0.5) million. A portion of the goodwill is deductible for tax purposes.

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 $0.3 million of acquisition-related costs in selling, general and administrative expenses during fiscal 2016.

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.

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

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 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.

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%.

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. In 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 was recorded as compensation expense during fiscal 2014. The remaining approximately $4.5 million of the earn-out payment represented additional consideration.

On March 11, 2016, the Company entered into an agreement with Energy AS, the former parent of Energy Micro. The agreement settled the amount of the earn-out to be paid for fiscal 2015 through 2018. The total settlement amount was approximately $16.0 million (in lieu of potential payments of up to $26.7 million) and was paid on May 11, 2016. The settlement amount represented approximately $11.4 million of additional consideration and approximately $4.6 million of compensation expense (of which approximately $2.7 million was recorded in fiscal 2016 and approximately $1.9 million was recorded in fiscal 2015). The compensation expense recorded in fiscal 2016 was offset in part by a gain of approximately $2.7 million to adjust the consideration portion of the earn-out to fair value due to the settlement.

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 30, 2017

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

9. Goodwill and Other Intangible Assets

Goodwill

The following summarizes the activity in goodwill for the years ended December 30, 2017 and December 31, 2016 (in thousands):

	Year Ended

	December 30, 2017		December 31, 2016
Beginning balance	$	276,130	$	272,722
Additions due to business combinations		12,097		3,408

Ending balance	$	288,227	$	276,130

Other Intangible Assets

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

			December 30, 2017					December 31, 2016

	Weighted-Average Amortization Period (Years)		December 30, 2017					December 31, 2016
	Weighted-Average Amortization Period (Years)		Gross Amount		Accumulated Amortization			Gross Amount		Accumulated Amortization
Core and developed technology		9	$	161,700	$	(89,442	)	$	157,321	$	(70,181	)
Customer relationships		7		25,470		(16,180	)		24,970		(11,356	)
Patents		6		3,000		(2,750	)		3,000		(2,250	)
Trademarks		7		3,690		(2,344	)		3,690		(1,629	)

Total		8	$	193,860	$	(110,716	)	$	188,981	$	(85,416	)

Gross intangible assets increased $6.7 million in fiscal 2017 for assets added due to the acquisition of Zentri. This increase was offset by $1.8 million due to the removal of fully amortized assets.

Amortization expense related to intangible assets for fiscal 2017, 2016 and 2015 was $27.1 million, $27.3 million and $26.5 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

2018	$	24,034
2019		18,292
2020		15,797
2021		11,408
2022		7,905

- 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

Dec. 30, 2017

Debt

Debt

10. Debt

1.375% Convertible Senior Notes

On March 6, 2017, the Company completed a private offering of $400 million principal amount convertible senior notes (the "Notes"). The Notes bear interest semi-annually at a rate of 1.375% per year and will mature on March 1, 2022, unless repurchased, redeemed or converted at an earlier date. The Company used $72.5 million of the proceeds to pay off the remaining balance of its Amended Credit Agreement.

The Notes are convertible at an initial conversion rate of 10.7744 shares of common stock per $1,000 principal amount of the Notes, or approximately 4.3 million shares of common stock, which is equivalent to a conversion price of approximately $92.81 per share. The conversion rate is subject to adjustment under certain circumstances. Holders may convert the Notes under the following circumstances: during any calendar quarter after the calendar quarter ending on June 30, 2017 if the closing price of the Company's common stock for at least 20 trading days in the 30 consecutive trading days ending on the last trading day of the preceding calendar quarter is greater than or equal to 130% of the conversion price of the Notes; during the five business day period after any ten consecutive trading day period (the "measurement period") in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the closing sale price of our common stock and the conversion rate on each such trading day; if specified distributions or corporate events occur; if the Notes are called for redemption; or at any time after December 1, 2021. The Company may redeem all or any portion of the Notes, at its option, on or after March 6, 2020, if the last reported sale price of the Company's common stock has been at least 130% of the conversion price then in effect for at least 20 trading days during any 30 consecutive trading day period. Upon conversion, the Notes may be settled in cash, shares of the Company's common stock or a combination of cash and shares, at the Company's election.

The principal balance of the Notes was separated into liability and equity components, and was recorded initially at fair value. The excess of the principal amount of the liability component over its carrying amount represents the debt discount, which is amortized to interest expense over the term of the Notes using the effective interest method. The carrying amount of the liability component was estimated by discounting the contractual cash flows of similar non-convertible debt at an appropriate market rate at the date of issuance.

The Company incurred debt issuance costs of approximately $10.6 million, which was allocated to the liability and equity components in proportion to the allocation of the proceeds. The costs allocated to the liability component are being amortized as interest expense over the term of the Notes using the effective interest method.

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

	December 30, 2017

Liability component
Principal	$	400,000
Unamortized debt discount		(50,499	)
Unamortized debt issuance costs		(7,622	)

Net carrying amount	$	341,879



Equity component
Net carrying amount	$	57,735

The liability component of the Notes is recorded in convertible debt on the Consolidated Balance Sheet. The equity component of the Notes is recorded in additional paid-in capital. The effective interest rate for the liability component was 4.75%. As of December 30, 2017, the remaining period over which the debt discount and debt issuance costs will be amortized was 4.2 years.

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

	Year Ended

	December 30, 2017
Contractual interest expense	$	4,492
Amortization of debt discount		8,816
Amortization of debt issuance costs		1,330

	$	14,638

Amended Credit Agreement

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. 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 (the "Credit Facility"), 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. In connection with the Company's offering of the Notes, it entered into a second amendment to the Credit Agreement (the "Second Amended Credit Agreement") on February 27, 2017 and paid off the remaining balance of $72.5 million.

The Second Amended Credit Agreement retained the key terms and provisions of the first Amended Credit Agreement, including 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 Second 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 December 30, 2017, the Company was in compliance with all covenants of the Second Amended Credit Agreement. The Company's obligations under the Second 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.

Stockholders' Equity

12 Months Ended

Dec. 30, 2017

Stockholders' Equity

Stockholders' Equity

11. Stockholders' Equity

Common Stock

The Company issued 0.8 million shares of common stock during fiscal 2017.

Share Repurchase Programs

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

Program Authorization Date	Program Termination Date	Program Amount

October 2017	December 2018	$	100,000
January 2017	December 2017	$	100,000
August 2015	December 2016	$	100,000
October 2014	December 2015	$	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 did not repurchase any shares of its common stock during fiscal 2017. The Company repurchased 0.9 million shares and 1.7 million shares of its common stock for $40.5 million and $71.4 million during fiscal 2016 and 2015, respectively. These shares were retired upon repurchase.

Reclassifications From Accumulated Other Comprehensive Income (Loss)

The following table summarizes the effect on net income from reclassifications out of accumulated other comprehensive income (loss) (in thousands):

	Year ended

Reclassification	December 30, 2017			December 31, 2016			January 2, 2016
Gains (losses) on cash flow hedges to:
Interest expense	$	1,808		$	(249	)	$	(499	)
Income tax (expense) benefit		(633	)		87			175

Total reclassifications	$	1,175		$	(162	)	$	(324	)

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:	December 30, 2017		December 31, 2016			January 2, 2016
Net changes to available-for-sale securities:
Unrealized gains (losses) arising during the period	$	255	$	63		$	145
Net changes to cash flow hedges:
Unrealized gains (losses) arising during the period		—		(513	)		255
Reclassification for losses included in net income		633		(87	)		(171	)

	$	888	$	(537	)	$	229

Stock-Based Compensation

12 Months Ended

Dec. 30, 2017

Stock-Based Compensation

Stock-Based Compensation

12. 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 2017, the stockholders of the Company approved amendments to both the 2009 Plan and the 2009 Purchase Plan. These 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, RSUs, restricted stock awards (RSAs), performance-based awards and other awards (collectively, all such grants are referred to as "awards"). The fiscal 2017 amendments to the 2009 Plan created a single share pool. All awards now deduct one share from the 2009 Plan shares available for issuance for each share granted. Awards granted under the 2009 Plan generally contain vesting provisions ranging from three to four years. The exercise price of stock options offered under the 2009 Plan may not be less than 100% of the fair market value of a share of our common stock on the date of grant. To the extent awards granted under the 2009 Plan terminate, expire or lapse for any reason, or are settled in cash, shares subject to such awards will again be available for grant.

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 0.7 million, 1.3 million and 0.9 million shares of full value awards and 0.0 million, 0.2 million, and 0.0 million stock options from the 2009 Plan during fiscal 2017, 2016 and 2015, respectively.

The Company recorded $0.9 million and $2.3 million in selling, general and administrative expense during fiscal 2016 and 2015, respectively, in connection with the modifications of certain equity awards. The modifications were pursuant to three employee terminations in fiscal 2016 and two employee terminations in fiscal 2015. There were no other significant modifications made to any stock grants during fiscal 2017, 2016 or 2015.

Included in the full value awards granted under the 2009 Plan in fiscal 2017, 2016 and 2015 were a total of 54 thousand, 65 thousand and 89 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.

Also included in the full value awards granted under the 2009 Plan during fiscal 2017 and fiscal 2016 were 54 thousand and 65 thousand performance-based stock awards, respectively. The awards, also known as PSUs, provide for the rights to acquire a number of shares of common stock for no cash consideration based upon the achievement of specified revenue objectives during the year. The requisite service period for these PSUs is approximately three years from the date of grant.

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 2017, 2016 and 2015, the Company issued 239 thousand, 224 thousand and 210 thousand shares, respectively, under the 2009 Purchase Plan to its employees. The weighted-average fair value for purchase rights granted in fiscal 2017 under the 2009 Purchase Plan was $19.55 per share.

Accounting for Stock-Based Compensation

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

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

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

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

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

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

	Year Ended

Employee Stock Purchase Plan	December 30, 2017			December 31, 2016			January 2, 2016
Expected volatility		28	%		30	%		31	%
Risk-free interest rate %		1.1	%		0.6	%		0.2	%
Expected term (in months)		8			15			8
Dividend yield		—			—			—

	Year Ended

Stock Options	December 30, 2017		December 31, 2016			January 2, 2016
Expected volatility		—		32	%		—
Risk-free interest rate %		—		1.3	%		—
Expected term (in years)		—		5.4			—
Dividend yield		—		—			—

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

	Year Ended

MSUs	December 30, 2017			December 31, 2016			January 2, 2016
Expected volatility		31	%		30	%		31	%
Risk-free interest rate %		1.6	%		0.9	%		1.0	%
Expected term (in years)		2.9			2.9			2.9
Dividend yield		—			—			—

A summary of stock-based compensation activity with respect to fiscal 2017 follows:

Stock Options			Weighted- Average Exercise Price			Aggregate Intrinsic Value (000s)

Outstanding at December 31, 2016	228		$	37.95
Exercised	(58	)	$	35.27

Outstanding at December 30, 2017	170		$	38.88	7.5	$	8,387
Vested at December 30, 2017 and expected to vest	120		$	40.39	8.1	$	5,744
Exercisable at December 30, 2017	40		$	33.98	5.3	$	2,173

RSAs and RSUs			Weighted- Average Purchase Price			Aggregate Intrinsic Value (000s)

Outstanding at December 31, 2016	1,689		$	—
Granted	625		$	—
Vested or issued	(726	)	$	—
Cancelled or forfeited	(65	)	$	—

Outstanding at December 30, 2017	1,523		$	—	0.9	$	134,534
Outstanding at December 30, 2017 and expected to vest	1,430		$	—	0.9	$	126,228

PSUs and MSUs			Weighted- Average Purchase Price			Aggregate Intrinsic Value (000s)

Outstanding at December 31, 2016	229		$	—
Granted	107		$	—
Earned or issued	(11	)	$	—
Cancelled or forfeited	(66	)	$	—

Outstanding at December 30, 2017	259		$	—	1.3	$	22,911
Outstanding at December 30, 2017 and expected to vest	242		$	—	1.3	$	21,388

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

	Year Ended

	December 30, 2017		December 31, 2016		January 2, 2016
Per grant of RSAs and RSUs	$	72.85	$	40.55	$	49.14
Per grant of PSUs and MSUs	$	78.40	$	32.23	$	48.36
Per grant of stock options	$	—	$	40.38	$	—

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

	Year Ended

	December 30, 2017		December 31, 2016		January 2, 2016
Intrinsic value of stock options exercised	$	2,174	$	2,560	$	6,612
Intrinsic value of RSAs and RSUs that vested	$	53,093	$	36,502	$	45,298
Grant date fair value of RSAs and RSUs that vested	$	32,449	$	39,853	$	41,072
Intrinsic value of MSUs and PSUs that vested	$	687	$	—	$	—
Grant date fair value of MSUs and PSUs that vested	$	633	$	—	$	—

The Company received cash of $11.8 million for the issuance of common stock, and paid $15.8 million for shares withheld for taxes, during fiscal 2017. 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

	December 30, 2017		December 31, 2016		January 2, 2016
Cost of revenues	$	1,090	$	1,070	$	960
Research and development		21,771		19,573		19,451
Selling, general and administrative		21,891		18,985		22,380

		44,752		39,628		42,791
Income tax benefit		11,073		8,496		9,264

	$	33,679	$	31,132	$	33,527

The increase in income tax benefit in fiscal 2017 was primarily due to the recognition of excess tax benefits in connection with the Company's adoption of ASU 2016-09, offset in part by an adjustment in the deferred tax asset due to the recent tax reform. The Company had approximately $61.7 million of total unrecognized compensation costs related to granted stock options and awards as of December 30, 2017 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 December 30, 2017, the Company had reserved shares of common stock for future issuance as follows (in thousands):


2000 Stock Incentive Plan			15
2009 Stock Incentive Plan			2,827
2009 Employee Stock Purchase Plan			1,208

Total shares reserved			4,050

Employee Benefit Plan	12 Months Ended
Employee Benefit Plan	Dec. 30, 2017
Employee Benefit Plan
Employee Benefit Plan	13. Employee Benefit Plan The Company maintains a defined contribution or 401(k) Plan for its qualified U.S. employees. Participants may contribute a percentage of their compensation on a pre-tax basis, subject to a maximum annual contribution imposed by the Internal Revenue Code. The Company may make discretionary matching contributions as well as discretionary profit-sharing contributions to the 401(k) Plan. The Company contributed $3.5 million, $3.4 million and $3.3 million to the 401(k) Plan during fiscal 2017, 2016 and 2015, respectively.

Commitments and Contingencies

12 Months Ended

Dec. 30, 2017

Commitments and Contingencies

Commitments and Contingencies

14. 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 $5.5 million, $4.7 million and $4.6 million and for fiscal 2017, 2016 and 2015, respectively. The minimum annual future rentals under the terms of these leases as of December 30, 2017 are as follows (in thousands):

Fiscal Year

2018	$	5,807
2019		4,278
2020		3,539
2021		3,016
2022		2,804
Thereafter		5,416

Total minimum lease payments	$	24,860

Investment Commitment

As of December 30, 2017, the Company had an unfunded commitment to invest up to $10.0 million in a limited partnership. The investment will be accounted for using the equity method and recorded in other assets, net in the Consolidated Balance Sheet when it is funded.

Litigation

Patent Litigation

On January 28, 2014, Cresta Technology Corporation ("Cresta Technology"), a Delaware corporation, filed a lawsuit against the Company (among others) in the United States District Court in the District of Delaware, alleging infringement of three United States Patents (the "Cresta Patents"). Cresta Technology declared bankruptcy in 2016. One of its creditors, DBD Credit Funding LLC ("DBD") and/or CF Crespe LLC (the "Cresta Successors") assumed ownership of the Cresta Patents and has substituted in for Cresta Technology in related proceedings.

The Delaware proceedings are currently stayed. In 2014 and 2015, the Company challenged the validity of two sets of claims in the Cresta Patents at the Patent Trial and Appeal Board (PTAB) of the United States Patent and Trademark Office (USPTO). In each respective proceeding, the PTAB found the reviewed claims to be invalid. The Federal Circuit Court of Appeals affirmed both determinations.

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 six United States Patents. A motion to substitute the Cresta Successors as defendants in lieu of Cresta Technology is pending.

The Company intends to continue to vigorously defend the Delaware proceeding and to continue to pursue its claims against the Cresta Successors and their patents. 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	Dec. 30, 2017
Related Party Transactions
Related Party Transactions	15. 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. On March 11, 2016, the Company entered into an agreement which settled the amount of the earn-out to be paid for fiscal 2015 through 2018. Under this agreement, Mr. Førre received approximately $4.8 million of the $16.0 million that was paid. Alf-Egil Bogen served on the Company's board of directors from October 17, 2013 to April 21, 2016. 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. Under the settlement agreement, Mr. Bogen received approximately $0.3 million of the $16.0 million that was paid for fiscal 2015 through 2018 earn-out. Mr. Bogen had invested approximately $0.8 million in Energy Micro prior to the acquisition.

Income Taxes

12 Months Ended

Dec. 30, 2017

Income Taxes

Income Taxes

16. Income Taxes

U.S. Tax Reform

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act makes broad and complex changes to the U.S. tax code that affect fiscal 2017, including, but not limited to requiring a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries that is payable over eight years (the "Transition Tax"). The Tax Act also establishes new tax laws that will affect 2018 and later years, including, but not limited to, a reduction of the U.S. federal corporate tax rate from 35% to 21%, a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries and a new provision designed to tax global intangible low-taxed income ("GILTI").

In connection with its initial analysis of the impact of the Tax Act, the Company has recorded a net tax expense of $26.3 million in fiscal 2017 which primarily consists of a net expense for the Transition Tax of $54.4 million as well as a net expense of $21.8 million related to the revaluation of the Company's deferred tax assets and liabilities. These net expense items are partially offset by a benefit of $39.4 million realized primarily as a result of the write off of a deferred tax liability that the Company had previously recorded for anticipated future earnings of one of its foreign subsidiaries related to the treatment of stock-based compensation in the Company's intercompany cost-sharing arrangement. In addition, these net expense items were also offset by a benefit of $10.5 million for the release of valuation allowances related to certain U.S. federal tax attributes that are now expected to be fully utilized.

The Company has not completed its accounting for the income tax effects of the Tax Act. Where the Company has been able to make reasonable estimates of the effects for which its analysis is not yet complete, the Company has recorded provisional amounts in accordance with SEC Staff Accounting Bulletin No. 118. Where the Company has not yet been able to make reasonable estimates of the impact of certain elements, the Company has not recorded any amounts related to those elements and has continued accounting for them in accordance with ASC 740 on the basis of the tax laws in effect immediately prior to the enactment of the Tax Act.

The Company's accounting for the following elements of the Tax Act is incomplete. However, the Company was able to make reasonable estimates of certain effects and, therefore, has recorded provisional amounts as follows:

Revaluation of deferred tax assets and liabilities: The Tax Act reduces the U.S. federal corporate tax rate from 35% to 21% for tax years beginning after December 31, 2017. In addition, the Tax Act makes certain changes to the depreciation rules and implements new limits on the deductibility of certain executive compensation. The Company has evaluated these changes and has recorded a provisional decrease to net deferred tax assets of $21.8 million with a corresponding increase to deferred tax expense. The Company is still completing its calculation of the impact of these changes on its deferred tax balances.

100% dividends received deduction: Beginning in 2018, the Tax Act provides a 100% deduction for dividends received from 10-percent owned foreign corporations by U.S. corporate shareholders, subject to a one-year holding period. Prior to enactment of the Tax Act, while the Company had asserted indefinite reinvestment of the foreign earnings of its foreign subsidiaries, in 2015, the Company began accruing a deferred tax liability for future earnings to be generated by one of its foreign subsidiaries upon resolution of the Altera case. The deferred tax liability was accrued in order to provide for the future U.S. tax cost of such earnings as these future earnings were not considered by the Company to be indefinitely reinvested. Under the Tax Act, these future earnings should not be subject to U.S. tax and therefore, the Company has released the deferred tax liability for this item. This release resulted in an increase to the net deferred tax asset of $39.4 million with a corresponding deferred tax benefit. The Company believes this is a reasonable estimate of the impact of the Tax Act but considers the release of this deferred tax liability as provisional pending further interpretation and guidance regarding how to account for certain aspects of the Tax Act.

Transition Tax on unrepatriated foreign earnings: The Transition Tax on unrepatriated foreign earnings is a tax on previously untaxed accumulated and current earnings and profits ("E&P") of the Company's foreign subsidiaries. To determine the amount of the Transition Tax, the Company must determine, among other factors, the amount of post-1986 E&P of its foreign subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. The Company was able to make a reasonable estimate of the Transition Tax and has recorded a provisional Transition Tax expense of $54.4 million. The Company is continuing to gather additional information to more precisely compute the amount of the Transition Tax to complete its calculation of E&P as well as the final determination of non-U.S. income taxes paid.

Valuation allowances: The Company must assess whether its valuation allowance analyses for deferred tax assets are affected by various aspects of the Tax Act (e.g., deemed repatriation of deferred foreign income, future GILTI inclusions, new categories of foreign tax credits). Since, as discussed herein, the Company has recorded provisional amounts related to certain portions of the Tax Act, any corresponding determination of the need for or change in a valuation allowance is also provisional. Prior to 2017, the Company had recorded valuation allowances for certain tax attributes that the Company estimated were not more likely than not to be utilized prior to their expiration. Based on a preliminary review of its 2017 and future taxable income, the Company has recorded a provisional release of valuation allowance in the amount of $10.5 million with a corresponding deferred tax benefit.

The Company's accounting for the following elements of the Tax Act is incomplete, and it has not yet been able to make reasonable estimates of the effects of these items. Therefore, no provisional amounts were recorded.

Global intangible low taxed income ("GILTI"): The Tax Act creates a new requirement that certain income (i.e., GILTI) earned by foreign subsidiaries must be included currently in the gross income of the U.S. shareholder. Due to the complexity of the new GILTI tax rules, the Company is continuing to evaluate this provision of the Tax Act and the application of ASC 740. Under U.S. GAAP, the Company is permitted to make an accounting policy election to either treat taxes due on future inclusions in U.S. taxable income related to GILTI as a current-period expense when incurred or to factor such amounts into the Company's measurement of its deferred taxes. The Company has not yet completed its analysis of the GILTI tax rules and is not yet able to reasonably estimate the effect of this provision of the Tax Act or make an accounting policy election for the ASC 740 treatment of the GILTI tax. Therefore, the Company has not recorded any amounts related to potential GILTI tax in its financial statements and has not yet made a policy decision regarding whether to record deferred taxes on GILTI.

Indefinite reinvestment assertion: Beginning in 2018, the Tax Act provides a 100% deduction for dividends received from 10-percent owned foreign corporations by U.S. corporate shareholders, subject to a one-year holding period. Although dividend income is now exempt from U.S. federal tax in the hands of the U.S. corporate shareholders, companies must still apply the guidance of ASC 740-30-25-18 to account for the tax consequences of outside basis differences and other tax impacts of their investments in non-U.S. subsidiaries. While the Company has accrued the Transition Tax on the deemed repatriated earnings that were previously indefinitely reinvested, the Company was unable to determine a reasonable estimate of the remaining tax liability, if any, under the Tax Act for its remaining outside basis differences or evaluate how the Tax Act will affect the Company's existing accounting position to indefinitely reinvest unremitted foreign earnings. Therefore, the Company has not included a provisional amount for this item in its financial statements for fiscal 2017. The Company will record amounts as needed for this item beginning in the first reporting period during the measurement period in which the Company obtains necessary information and is able to analyze and prepare a reasonable estimate.

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

	Year Ended

	December 30, 2017		December 31, 2016		January 2, 2016
Domestic	$	9,700	$	4,313	$	2,249
Foreign		67,203		60,183		28,014

	$	76,903	$	64,496	$	30,263

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

	Year Ended

	December 30, 2017			December 31, 2016			January 2, 2016
Current:
Domestic	$	48,947		$	2,639		$	951
Foreign		7,077			4,421			3,015

Total Current		56,024			7,060			3,966
Deferred:
Domestic		(25,760	)		(2,430	)		(5,825	)
Foreign		(453	)		(1,628	)		2,536

Total Deferred		(26,213	)		(4,058	)		(3,289	)

Provision for income taxes	$	29,811		$	3,002		$	677

The current domestic provision for income taxes of $48.9 million includes a one-time amount payable for the net Transition Tax of $42.6 million. Under the provisions of the Tax Act, a company is permitted to elect to pay this liability over an eight year period without interest. The Company plans to make that election. The Company currently estimates that $3.4 million of this Transition Tax liability will be paid within the next twelve months.

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

	Year Ended

	December 30, 2017			December 31, 2016			January 2, 2016
Federal statutory rate		35.0	%		35.0	%		35.0	%
Foreign tax rate benefit		(25.2	)		(27.2	)		(30.7	)
Research and development tax credits		(4.5	)		(4.1	)		(5.6	)
Release of prior year unrecognized tax benefits		(0.6	)		(1.7	)		(1.9	)
Excess officer compensation		1.5			1.4			3.2
Change in cost-sharing treatment of stock-based compensation		5.2			(0.5	)		(7.1	)
Excess tax benefit of stock-based compensation		(5.6	)		—			—
Change in prior period valuation allowance		(1.3	)		(0.6	)		8.8
Transition tax on unremitted foreign earnings		70.8			—			—
Revaluation of deferred tax balances		28.2			—			—
Other deferred tax impacts of tax reform		(64.8	)		—			—
Other		0.1			2.4			0.5

Effective Tax Rate		38.8	%		4.7	%		2.2	%

The effective tax rate for fiscal 2017 increased from fiscal 2016 primarily due to the one-time Transition Tax on unrepatriated earnings of certain foreign subsidiaries as a result of the enactment of the Tax Act. Additional tax expense was also recognized for the revaluation of the Company's deferred tax assets and liabilities. These increases in tax expense were partially offset by the release of a deferred tax liability related to future foreign earnings expected under the Company's intercompany cost-sharing arrangement, as well as a decrease in the valuation allowance established on federal research and development tax credits.

The effective tax rate for fiscal 2016 increased from fiscal 2015 primarily due to fiscal 2015 including a net benefit from a change in the tax accounting treatment of stock-based compensation in a cost-sharing arrangement following a U.S. Tax Court case (Altera). The increase in the effective tax rate was offset by a reduction in the prior period valuation allowance.

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 cost-sharing arrangement and concluded that the related U.S. Treasury Regulations were invalid. In February 2016, the U.S. Internal Revenue Service (the "IRS") appealed the decision to the U.S Court of Appeals for the Ninth Circuit. Although the IRS has appealed the decision, and the U.S. Treasury has not withdrawn the requirement to include stock-based compensation from its regulations, based on the facts and circumstances of the Tax Court Case, the Company believes that it is more likely than not that the Tax Court decision will be upheld. As of the end of fiscal 2017, after revaluation to the new U.S. federal tax rate under the Tax Act, the Company's financial statements reflect a deferred tax asset for this item of $22.0 million. Also as a result of the enactment of the Tax Act, the Company has reversed the deferred tax liability of $39.4 million it had previously recorded for the U.S. tax cost of potential repatriation of the associated foreign earnings. The Company will continue to monitor ongoing developments and potential impacts to its Consolidated Financial Statements.

The Company's operations in Singapore are subject to reduced tax rates through June 30, 2019, as long as certain conditions are met. Without the impact of the one-time Transition Tax, the income tax benefit from the reduced Singapore tax rate reflected in earnings was approximately $11.0 million (representing $0.25 per diluted share) in fiscal 2017, approximately $7.7 million (representing $0.18 per diluted share) in fiscal 2016 and approximately $14.4 million (representing $0.34 per diluted share) in fiscal 2015.

Deferred Income Taxes

Deferred tax assets and liabilities are recorded for the estimated tax impact of temporary differences between the tax basis and book basis of assets and liabilities. Significant components of the Company's deferred taxes as of December 30, 2017 and December 31, 2016 are as follows (in thousands):

	December 30, 2017			December 31, 2016

Deferred tax assets:
Net operating loss carryforwards	$	12,925		$	21,187
Research and development tax credit carryforwards		12,322			15,068
Stock-based compensation		5,256			7,396
Capitalized research and development		3,468			6,802
Deferred income on shipments to distributors		7,070			9,338
Expected future cost-sharing adjustment		19,961			29,719
Accrued liabilities and other		8,620			11,321

		69,622			100,831
Less: Valuation allowance		(6,518	)		(12,361	)

		63,104			88,470
Deferred tax liabilities:
Acquired intangible assets		13,884			25,785
Depreciation and amortization		1,274			2,939
Unremitted foreign earnings for expected future cost-sharing adjustment		—			31,165
Convertible debt		10,351			—
Prepaid expenses and other		1,421			3,069

		26,930			62,958

Net deferred tax assets	$	36,174		$	25,512

As of December 30, 2017, the Company had federal net operating loss and research and development tax credit carryforwards of approximately $37.5 million and $1.9 million, respectively, as a result of the Silicon Clocks, Spectra Linear and Ember acquisitions. These carryforwards expire in fiscal years 2020 through 2031. Recognition of these loss and credit carryforwards is subject to an annual limit, which may cause them to expire before they are used.

As of December 30, 2017, the Company had foreign net operating loss carryforwards of approximately $9.6 million as a result of the Energy Micro acquisition. These loss carryforwards do not expire and recognition is not subject to an annual limit.

The Company also had state loss, state tentative minimum tax credit, and research and development tax credit carryforwards of approximately $44.1 million, $0.1 million, and $13.4 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, Ember and Zentri acquisitions. Certain of these carryforwards expire in fiscal years 2018 through 2036, and others do not expire. Recognition of some of these loss and credit carryforwards is subject to an annual limit, which may cause them to expire before they are used.

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. As of December 30, 2017, the Company maintains a valuation allowance with respect to certain deferred tax assets relating primarily to state research and development tax credit and net operating loss carryforwards.

Uncertain Tax Positions

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

	Year Ended

	December 30, 2017			December 31, 2016			January 2, 2016
Beginning balance	$	3,054		$	3,610		$	3,929
Additions based on tax positions related to current year		456			439			432
Additions based on tax positions related to prior years		114			99			—
Reductions for tax positions as a result of a lapse of the applicable statute of limitations		(437	)		(1,094	)		(751	)

Ending balance	$	3,187		$	3,054		$	3,610

As of December 30, 2017, December 31, 2016 and January 2, 2016, the Company had gross unrecognized tax benefits of $3.2 million, $3.0 million and $3.6 million, respectively, of which $3.2 million, $2.2 million and $3.2 million, respectively, would affect the effective tax rate if recognized.

The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. These amounts were not material for fiscal years 2017, 2016 and 2015.

The Norwegian Tax Administration ("NTA") has completed its examination of the Company's Norwegian subsidiary for income tax matters relating to fiscal years 2013, 2014, 2015 and 2016. The Company received a final assessment from the NTA in December 2017 concerning an adjustment to its 2013 taxable income related to the pricing of an intercompany transaction. The adjustment to 2013 taxable income would result in additional Norwegian tax of approximately $30.0 million, excluding interest and penalties. The Company disagrees with the NTA's assessment and believes the Company's position on this matter is more likely than not to be sustained. The Company plans to exhaust all available administrative remedies, and if unable to resolve this matter through administrative remedies with the NTA, the Company plans to pursue judicial remedies. The Company believes that it is likely that the NTA will request a payment of approximately $15 million in 2018 during the appeal process.

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

Tax years 2013 through 2017 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, except Norway.

The Company believes it is reasonably possible that the gross unrecognized tax benefits will decrease by approximately $1.8 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.

Segment Information

12 Months Ended

Dec. 30, 2017

Segment Information

Segment Information

17. 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 the products may be used. The following summarizes the Company's revenue by product category (in thousands):

	Year Ended

	December 30, 2017		December 31, 2016		January 2, 2016
Internet of Things	$	395,012	$	314,614	$	262,329
Broadcast		152,980		157,746		161,787
Infrastructure		152,158		147,677		121,974
Access		68,717		77,589		98,736

Total	$	768,867	$	697,626	$	644,826

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

	Year Ended

	December 30, 2017		December 31, 2016		January 2, 2016
United States	$	112,574	$	94,583	$	96,959
China		307,748		291,974		281,306
Rest of world		348,545		311,069		266,561

Total	$	768,867	$	697,626	$	644,826

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

	December 30, 2017		December 31, 2016

United States	$	119,746	$	124,163
Rest of world		7,936		5,396

Total	$	127,682	$	129,559

Supplementary Financial Information (Unaudited)

Quarterly financial information for fiscal 2017 and 2016 is as follows. All quarterly periods reported here had 13 weeks (in thousands, except per share amounts):

	Fiscal 2017

	Fourth Quarter			Third Quarter		Second Quarter		First Quarter
Revenues	$	201,018		$	198,723	$	190,098	$	179,028
Gross margin		119,264			116,574		113,192		105,161
Operating income		26,390			24,968		20,934		12,682
Net income (loss)	$	(4,852	)	$	19,949	$	16,569	$	15,426
Earnings (loss) per share:
Basic	$	(0.11	)	$	0.47	$	0.39	$	0.37
Diluted	$	(0.11	)	$	0.46	$	0.38	$	0.36

	Fiscal 2016

	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Revenues	$	182,610	$	178,083	$	174,908	$	162,025
Gross margin		109,476		108,203		108,294		95,531
Operating income		20,083		21,732		17,614		6,848
Net income	$	20,109	$	20,018	$	15,559	$	5,808
Earnings per share:
Basic	$	0.48	$	0.48	$	0.37	$	0.14
Diluted	$	0.47	$	0.47	$	0.37	$	0.14

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 30, 2017

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		Additions Charged to Other Accounts		Deductions			Balance at End of Period

			(in thousands)
Year ended December 30, 2017	$	12,361	$	2,110	$	1,732	$	(9,685	)	$	6,518
Year ended December 31, 2016	$	10,264	$	2,715	$	—	$	(618	)	$	12,361
Year ended January 2, 2016	$	3,455	$	6,895	$	—	$	(86	)	$	10,264

Significant Accounting Policies (Policies)	12 Months Ended
Significant Accounting Policies (Policies)	Dec. 30, 2017
Significant Accounting Policies
Foreign Currency Transactions	Foreign Currency Transactions The Company's foreign subsidiaries are considered to be extensions of the U.S. Company. The functional currency of the foreign subsidiaries is the U.S. dollar. Accordingly, gains and losses resulting from remeasuring transactions denominated in currencies other than U.S. dollars are included in interest income and other, net in the Consolidated Statements of Income.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with 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 hierarchical disclosure framework based upon the level of subjectivity of the inputs used in measuring assets and liabilities. The three levels are described below: Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2—Inputs 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, certificates of deposit, money market funds and investments in debt securities with original maturities of ninety days or less when purchased.
Investments	Investments The Company's investments typically have original maturities greater than ninety days as of the date of purchase and are classified as either available-for-sale or trading securities. Investments in available-for-sale securities are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive income (loss) in the Consolidated Balance Sheet. Investments in trading securities are reported at fair value, with both realized and unrealized gains and losses recorded in interest income and other, net in the Consolidated Statement of Income. Investments in which the Company has the ability and intent, if necessary, to liquidate in order to support its current operations (including those with contractual maturities greater than one year from the date of purchase) are classified as short-term. The Company reviews its available-for-sale investments as of the end of each reporting period for 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 income (loss). In addition, the Company has made equity investments in non-publicly traded companies that it accounts for using the equity method or cost method. Equity investments in which the Company does not have control, but has the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. The Company's proportionate share of income or loss is recorded in interest income and other, net in the Consolidated Statement of Income. All other non-marketable equity investments are accounted for using 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. There were no impairment charges recognized on equity investments during any of the periods presented.
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 income (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 interest income and other, net in the Consolidated Statement of Income in the same period as the remeasurement loss and gain of the related foreign currency denominated asset or liability. The Company does not apply hedge accounting to its foreign currency derivative instruments.
Inventories	Inventories Inventories are stated at the lower of cost, determined using the first-in, first-out method, or net realizable value. The Company writes down the carrying value of inventory to net realizable value for estimated obsolescence or unmarketable inventory based upon assumptions about the age of inventory, future demand and market conditions. Inventory impairment charges establish a new cost basis for inventory and charges are not subsequently reversed to income even if circumstances later suggest that increased carrying amounts are recoverable.
Property and Equipment	Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the useful lives of the assets ranging from three to seven years. Leasehold improvements are depreciated over the lease term or their useful life, whichever is shorter. The Company owns 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 12, 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 $1.4 million, $1.6 million and $1.8 million in fiscal 2017, 2016 and 2015, 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 16, Income Taxes, for additional information.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In August 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The objectives of this ASU are to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements and to make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. This ASU is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. The Company is currently evaluating the effect of the adoption of this ASU, but anticipates that the adoption will not have a material impact on its financial statements. In January 2017, the FASB issued ASU No. 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments—Equity Method and Joint Ventures (Topic 323). This ASU amends the disclosure requirements for ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), ASU No. 2016-02, Leases (Topic 842) and ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU states that if a registrant does not know or cannot reasonably estimate the impact that the adoption of the above ASUs is expected to have on the financial statements, then in addition to making a statement to that effect, the registrant should consider additional qualitative financial statement disclosures to assist the reader in assessing the significance of the impact that the standard will have on the financial statements of the registrant when adopted. This ASU was effective upon issuance. The Company adopted this ASU and added qualitative financial statement disclosures as deemed necessary. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU eliminates Step 2 from the goodwill impairment test. Instead, an entity should recognize an impairment charge for the amount by which the carrying value exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to that reporting unit. This ASU is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is currently evaluating the effect of the adoption of this ASU, but anticipates that the adoption will not have a material impact on its financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This ASU clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This ASU is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The impact of the adoption of this ASU on the Company's financial statements will be dependent upon the terms of any future acquisitions or dispositions. In August 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This ASU requires the recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this ASU should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company early adopted this ASU on January 1, 2017. The adoption did not have a material impact on its financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU provides guidance on statement of cash flows presentation for eight specific cash flow issues where diversity in practice exists. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company expects that the adoption will not have a material impact on its financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic326): Measurement of Credit Losses on Financial Instruments. This ASU requires instruments measured at amortized cost to be presented at the net amount expected to be collected. Entities are also required to record allowances for available-for-sale debt securities rather than reduce the carrying amount. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company expects that the adoption will not have a material impact on its financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This ASU simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The Company adopted this ASU on January 1, 2017. Amendments related to the classification of excess tax benefits on the statement of cash flows were applied prospectively. Prior periods have not been adjusted. In connection with its adoption of ASU 2016-09, the Company has recorded excess tax benefits of $4.3 million during fiscal 2017. The adoption had no other material impact on the Company's financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. For operating leases, a lessee is required to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial position. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is evaluating the effect that the adoption of this ASU will have on its financial statements. The Company currently expects that most of its operating lease commitments will be subject to the new standard and recognized as right-of-use assets and operating lease liabilities upon the adoption of ASU 2016-02, which will increase the total assets and total liabilities that it reports relative to such amounts prior to adoption. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This ASU addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company expects that the adoption will not have a material impact on its financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Accounting Standards Codification (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. In August 2015, the FASB issued 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 to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. In 2016, the FASB issued the following amendments to ASC 606: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance on principal versus agent considerations; ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarifies guidance on identification of performance obligations and licensing implementation; ASU No. 2016-12, Compensation—Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which provides clarifying guidance on assessing collectibility, presentation of sales taxes, noncash consideration, contract modifications and completed contracts; and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, which clarifies narrow aspects of ASC 606 or corrects unintended application of the guidance. The standard may be applied retrospectively to each prior period presented (full retrospective method) or retrospectively with the cumulative effect recognized as of the date of initial application (modified retrospective method). Under the new standard, the Company expects the timing of revenue recognition from sales to distributors to be accelerated. The Company will recognize revenue at the time of sale to the distributor, net of the impact of estimated price adjustments and rights of return. As a result, revenue recognition is expected to be more directly impacted by shipments to distributors. The Company will adopt this standard using the modified retrospective method. Under this method, incremental disclosures will be provided to present each financial statement line item for fiscal 2018 under the prior standard. The Company is substantially complete with its evaluation of the effect that the adoption will have on its financial statements. In connection with its adoption of ASC 606, the Company expects to record a cumulative-effect adjustment to retained earnings of $26.2 million on December 31, 2017. This adjustment reflects the acceleration of $49.1 million in revenues and $19.7 million in costs of revenues as well as other items.

Earnings Per Share (Tables)

12 Months Ended

Dec. 30, 2017

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

	December 30, 2017		December 31, 2016		January 2, 2016
Net income	$	47,092	$	61,494	$	29,586

Shares used in computing basic earnings per share		42,446		41,713		42,309
Effect of dilutive securities:
Stock options and other stock-based awards		886		663		636

Shares used in computing diluted earnings per share		43,332		42,376		42,945



Earnings per share:
Basic	$	1.11	$	1.47	$	0.70
Diluted	$	1.09	$	1.45	$	0.69

Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 30, 2017

Fair Value of Financial Instruments

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

	Fair Value Measurements at December 30, 2017 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	$	106,047	$	—	$	—	$	106,047
Corporate debt securities		—		11,231		—		11,231
Government debt securities		53,615		1,453		—		55,068

Total cash equivalents	$	159,662	$	12,684	$	—	$	172,346
Short-term investments:
Government debt securities	$	94,575	$	228,247	$	—	$	322,822
Corporate debt securities		—		171,835		—		171,835

Total short-term investments	$	94,575	$	400,082	$	—	$	494,657
Other assets, net:
Auction rate securities	$	—	$	—	$	5,681	$	5,681

Total	$	—	$	—	$	5,681	$	5,681


Total	$	254,237	$	412,766	$	5,681	$	672,684

	Fair Value Measurements at December 31, 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	$	69,432	$	—	$	—	$	69,432
Corporate debt securities		—		7,153		—		7,153
Government debt securities		—		3,904		—		3,904

Total cash equivalents	$	69,432	$	11,057	$	—	$	80,489
Short-term investments:
Government debt securities	$	12,416	$	97,103	$	—	$	109,519
Corporate debt securities		—		44,442		—		44,442

Total short-term investments	$	12,416	$	141,545	$	—	$	153,961
Other assets, net:
Auction rate securities	$	—	$	—	$	5,196	$	5,196
Derivative instruments		—		1,808		—		1,808

Total	$	—	$	1,808	$	5,196	$	7,004


Total	$	81,848	$	154,410	$	5,196	$	241,454

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 December 30, 2017 (in thousands):

	Cost		Fair Value

Due in one year or less	$	393,600	$	393,201
Due after one year through ten years		198,981		197,922
Due after ten years		81,884		81,561

	$	674,465	$	672,684

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 December 30, 2017	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Government debt securities	$	244,880	$	(931	)	$	3,027	$	(15	)	$	247,907	$	(946	)
Corporate debt securities		151,149		(447	)		11,578		(73	)		162,727		(520	)
Auction rate securities		—		—			5,681		(319	)		5,681		(319	)

	$	396,029	$	(1,378	)	$	20,286	$	(407	)	$	416,315	$	(1,785	)

	Less Than 12 Months					12 Months or Greater					Total

As of December 31, 2016	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Government debt securities	$	79,743	$	(156	)	$	—	$	—		$	79,743	$	(156	)
Corporate debt securities		21,737		(132	)		—		—			21,737		(132	)
Auction rate securities		—		—			5,196		(804	)		5,196		(804	)

	$	101,480	$	(288	)	$	5,196	$	(804	)	$	106,676	$	(1,092	)

Summary of quantitative information about level 3 asset fair value measurements

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

Auction rate securities

Fair Value at December 30, 2017 (000s)	Valuation Technique	Unobservable Input	Weighted Average

$5,681	Discounted cash flow	Estimated yield	1.74%
		Expected holding period	10 years
		Estimated discount rate	3.37%

Summary of activity in Level 3 financial instruments

The following summarizes the activity in Level 3 financial instruments for the years ended December 30, 2017 and December 31, 2016 (in thousands):

Assets

	Year Ended

Auction Rate Securities	December 30, 2017		December 31, 2016
Beginning balance	$	5,196	$	7,126
Settlements		—		(2,000	)
Gain included in other comprehensive income (loss)		485		70

Ending balance	$	5,681	$	5,196

Liabilities

	Year Ended

Contingent Consideration (1)	December 30, 2017			December 31, 2016
Beginning balance	$	—		$	14,073
Issues		3,829			—
Settlements (2)		—			(11,375	)
Reclassification to acquisition-related liabilities (3)		(3,380	)		—
Gain recognized in earnings (4)		(449	)		(2,698	)

Ending balance	$	—		$	—

(1): In connection with the acquisitions of Zentri and 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 models were recorded in selling, general and administrative expenses in the Consolidated Statement of Income.
(2): On March 11, 2016, the Company entered into an agreement which settled the total amount of contingent consideration related to the Energy Micro acquisition (including all amounts for fiscal 2015 through 2018). See Note 8, Acquisitions, for additional information.
(3): The milestone goal related to the Zentri contingent consideration was based on fiscal 2017 revenue from certain Zentri products, which is now completed. The accrued consideration is recorded in other current liabilities in the Consolidated Balance Sheet.
(4): The gain recognized in earnings in fiscal 2016 was due to the settlement of the Energy Micro contingent consideration. This gain was offset in part by a charge of approximately $2.7 million recorded in fiscal 2016 for a portion of the contingent consideration accounted for as post-combination compensation expense.

Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 30, 2017

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	December 30, 2017		December 31, 2016
Interest rate swap	Other assets, net	$	—	$	1,808

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

	December 30, 2017		December 31, 2016		January 2, 2016				December 30, 2017		December 31, 2016			January 2, 2016
Interest rate swaps	$	—	$	1,466	$	(728	)	Interest expense	$	1,808	$	(249	)	$	(489	)

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 (Loss) Recognized in Income	December 30, 2017			December 31, 2016			January 2, 2016		Location
Foreign currency forward contracts	$	(207	)	$	(92	)	$	935	Interest income and other, net

Balance Sheet Details (Tables)

12 Months Ended

Dec. 30, 2017

Balance Sheet Details

Accounts receivable, net

	December 30, 2017			December 31, 2016

Accounts receivable	$	72,005		$	75,035
Allowance for doubtful accounts		(638	)		(634	)

	$	71,367		$	74,401

Inventories

	December 30, 2017		December 31, 2016

Work in progress	$	46,698	$	40,755
Finished goods		26,434		18,823

	$	73,132	$	59,578

Prepaid Expenses and Other Current Assets

	December 30, 2017		December 31, 2016

Distributor advances	$	17,825	$	40,205
Other		21,295		21,600

	$	39,120	$	61,805

Property and Equipment

	December 30, 2017			December 31, 2016

Buildings and improvements	$	96,196		$	94,977
Equipment		59,836			57,677
Computers and purchased software		37,598			35,492
Leasehold interest in ground leases		23,840			23,840
Furniture and fixtures		5,691			5,484
Leasehold improvements		10,483			10,083

		233,644			227,553
Accumulated depreciation		(105,962	)		(97,994	)

	$	127,682		$	129,559

Accrued Expenses

	December 30, 2017		December 31, 2016

Accrued compensation and benefits	$	33,631	$	28,781
Accrued price protection credits		8,239		2,287
Other		31,489		23,482

	$	73,359	$	54,550

Other Non-current Liabilities

	December 30, 2017		December 31, 2016

Non-current tax liabilities	$	39,196	$	—
Software license accruals		12,152		14,436
Deferred tax liabilities		10,355		13,119
Other		16,159		15,136

	$	77,862	$	42,691

Risks and Uncertainties (Tables) - Customers

12 Months Ended

Dec. 30, 2017

Accounts receivable

Risks and uncertainties

Schedule of concentration risk



Avnet	16	%	12	%
Arrow Electronics	14	%	13	%
Edom Technology	*		19	%

*: Less than 10% of accounts receivable

Revenue

Risks and uncertainties

Schedule of concentration risk

	Year Ended

	December 30, 2017			December 31, 2016			January 2, 2016
Edom Technology		19	%		17	%		20	%
Avnet		14	%		13	%		12	%
Arrow Electronics		12	%		11	%		*

*: Less than 10% of revenue

Acquisitions (Tables)

12 Months Ended

Dec. 30, 2017

Telegesis

Business acquisition

Schedule of purchase price allocation

	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

	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

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 30, 2017

Goodwill and Other Intangible Assets

Summary of goodwill activity

The following summarizes the activity in goodwill for the years ended December 30, 2017 and December 31, 2016 (in thousands):

	Year Ended

	December 30, 2017		December 31, 2016
Beginning balance	$	276,130	$	272,722
Additions due to business combinations		12,097		3,408

Ending balance	$	288,227	$	276,130

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):

			December 30, 2017					December 31, 2016

	Weighted-Average Amortization Period (Years)		December 30, 2017					December 31, 2016
	Weighted-Average Amortization Period (Years)		Gross Amount		Accumulated Amortization			Gross Amount		Accumulated Amortization
Core and developed technology		9	$	161,700	$	(89,442	)	$	157,321	$	(70,181	)
Customer relationships		7		25,470		(16,180	)		24,970		(11,356	)
Patents		6		3,000		(2,750	)		3,000		(2,250	)
Trademarks		7		3,690		(2,344	)		3,690		(1,629	)

Total		8	$	193,860	$	(110,716	)	$	188,981	$	(85,416	)

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

2018	$	24,034
2019		18,292
2020		15,797
2021		11,408
2022		7,905

Debt (Tables)

12 Months Ended

Dec. 30, 2017

Debt

Summary of information about the equity and liability components of the convertible senior notes

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

	December 30, 2017

Liability component
Principal	$	400,000
Unamortized debt discount		(50,499	)
Unamortized debt issuance costs		(7,622	)

Net carrying amount	$	341,879



Equity component
Net carrying amount	$	57,735

Schedule of components of interest expense

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

	Year Ended

	December 30, 2017
Contractual interest expense	$	4,492
Amortization of debt discount		8,816
Amortization of debt issuance costs		1,330

	$	14,638

Stockholders' Equity (Tables)

12 Months Ended

Dec. 30, 2017

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

October 2017	December 2018	$	100,000
January 2017	December 2017	$	100,000
August 2015	December 2016	$	100,000
October 2014	December 2015	$	100,000

Schedule of reclassifications out of accumulated other comprehensive income (loss)

The following table summarizes the effect on net income from reclassifications out of accumulated other comprehensive income (loss) (in thousands):

	Year ended

Reclassification	December 30, 2017			December 31, 2016			January 2, 2016
Gains (losses) on cash flow hedges to:
Interest expense	$	1,808		$	(249	)	$	(499	)
Income tax (expense) benefit		(633	)		87			175

Total reclassifications	$	1,175		$	(162	)	$	(324	)

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:	December 30, 2017		December 31, 2016			January 2, 2016
Net changes to available-for-sale securities:
Unrealized gains (losses) arising during the period	$	255	$	63		$	145
Net changes to cash flow hedges:
Unrealized gains (losses) arising during the period		—		(513	)		255
Reclassification for losses included in net income		633		(87	)		(171	)

	$	888	$	(537	)	$	229

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 30, 2017

Summary of stock-based compensation activity

A summary of stock-based compensation activity with respect to fiscal 2017 follows:

Stock Options			Weighted- Average Exercise Price			Aggregate Intrinsic Value (000s)

Outstanding at December 31, 2016	228		$	37.95
Exercised	(58	)	$	35.27

Outstanding at December 30, 2017	170		$	38.88	7.5	$	8,387
Vested at December 30, 2017 and expected to vest	120		$	40.39	8.1	$	5,744
Exercisable at December 30, 2017	40		$	33.98	5.3	$	2,173

Summary of RSAs and RSUs Activity

RSAs and RSUs			Weighted- Average Purchase Price			Aggregate Intrinsic Value (000s)

Outstanding at December 31, 2016	1,689		$	—
Granted	625		$	—
Vested or issued	(726	)	$	—
Cancelled or forfeited	(65	)	$	—

Outstanding at December 30, 2017	1,523		$	—	0.9	$	134,534
Outstanding at December 30, 2017 and expected to vest	1,430		$	—	0.9	$	126,228

Summary of PSUs and MSUs Activity

PSUs and MSUs			Weighted- Average Purchase Price			Aggregate Intrinsic Value (000s)

Outstanding at December 31, 2016	229		$	—
Granted	107		$	—
Earned or issued	(11	)	$	—
Cancelled or forfeited	(66	)	$	—

Outstanding at December 30, 2017	259		$	—	1.3	$	22,911
Outstanding at December 30, 2017 and expected to vest	242		$	—	1.3	$	21,388

Summary of weighted average fair value at the date of grant

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

	Year Ended

	December 30, 2017		December 31, 2016		January 2, 2016
Per grant of RSAs and RSUs	$	72.85	$	40.55	$	49.14
Per grant of PSUs and MSUs	$	78.40	$	32.23	$	48.36
Per grant of stock options	$	—	$	40.38	$	—

Summary of stock-based payment and stock option values

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

	Year Ended

	December 30, 2017		December 31, 2016		January 2, 2016
Intrinsic value of stock options exercised	$	2,174	$	2,560	$	6,612
Intrinsic value of RSAs and RSUs that vested	$	53,093	$	36,502	$	45,298
Grant date fair value of RSAs and RSUs that vested	$	32,449	$	39,853	$	41,072
Intrinsic value of MSUs and PSUs that vested	$	687	$	—	$	—
Grant date fair value of MSUs and PSUs that vested	$	633	$	—	$	—

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

	December 30, 2017		December 31, 2016		January 2, 2016
Cost of revenues	$	1,090	$	1,070	$	960
Research and development		21,771		19,573		19,451
Selling, general and administrative		21,891		18,985		22,380

		44,752		39,628		42,791
Income tax benefit		11,073		8,496		9,264

	$	33,679	$	31,132	$	33,527

Summary of shares reserved of common stock for future issuance

As of December 30, 2017, the Company had reserved shares of common stock for future issuance as follows (in thousands):


2000 Stock Incentive Plan			15
2009 Stock Incentive Plan			2,827
2009 Employee Stock Purchase Plan			1,208

Total shares reserved			4,050

Stock options

Schedule of assumptions used to estimate fair values using Black-Scholes option-pricing model for ESSP and stock options

	Year Ended

Stock Options	December 30, 2017		December 31, 2016			January 2, 2016
Expected volatility		—		32	%		—
Risk-free interest rate %		—		1.3	%		—
Expected term (in years)		—		5.4			—
Dividend yield		—		—			—

Market Stock Units

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

	Year Ended

MSUs	December 30, 2017			December 31, 2016			January 2, 2016
Expected volatility		31	%		30	%		31	%
Risk-free interest rate %		1.6	%		0.9	%		1.0	%
Expected term (in years)		2.9			2.9			2.9
Dividend yield		—			—			—

2009 Employee Stock Purchase Plan

Schedule of assumptions used to estimate fair values using Black-Scholes option-pricing model for ESSP and stock options

	Year Ended

Employee Stock Purchase Plan	December 30, 2017			December 31, 2016			January 2, 2016
Expected volatility		28	%		30	%		31	%
Risk-free interest rate %		1.1	%		0.6	%		0.2	%
Expected term (in months)		8			15			8
Dividend yield		—			—			—

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 30, 2017

Commitments and Contingencies

Schedule of minimum annual future rentals

The minimum annual future rentals under the terms of these leases as of December 30, 2017 are as follows (in thousands):

Fiscal Year

2018	$	5,807
2019		4,278
2020		3,539
2021		3,016
2022		2,804
Thereafter		5,416

Total minimum lease payments	$	24,860

Income Taxes (Tables)

12 Months Ended

Dec. 30, 2017

Income Taxes

Schedule of income before income taxes

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

	Year Ended

	December 30, 2017		December 31, 2016		January 2, 2016
Domestic	$	9,700	$	4,313	$	2,249
Foreign		67,203		60,183		28,014

	$	76,903	$	64,496	$	30,263

Schedule of provision for income taxes

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

	Year Ended

	December 30, 2017			December 31, 2016			January 2, 2016
Current:
Domestic	$	48,947		$	2,639		$	951
Foreign		7,077			4,421			3,015

Total Current		56,024			7,060			3,966
Deferred:
Domestic		(25,760	)		(2,430	)		(5,825	)
Foreign		(453	)		(1,628	)		2,536

Total Deferred		(26,213	)		(4,058	)		(3,289	)

Provision for income taxes	$	29,811		$	3,002		$	677

Schedule of reconciliation of statutory tax rate to effective tax rate

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

	Year Ended

	December 30, 2017			December 31, 2016			January 2, 2016
Federal statutory rate		35.0	%		35.0	%		35.0	%
Foreign tax rate benefit		(25.2	)		(27.2	)		(30.7	)
Research and development tax credits		(4.5	)		(4.1	)		(5.6	)
Release of prior year unrecognized tax benefits		(0.6	)		(1.7	)		(1.9	)
Excess officer compensation		1.5			1.4			3.2
Change in cost-sharing treatment of stock-based compensation		5.2			(0.5	)		(7.1	)
Excess tax benefit of stock-based compensation		(5.6	)		—			—
Change in prior period valuation allowance		(1.3	)		(0.6	)		8.8
Transition tax on unremitted foreign earnings		70.8			—			—
Revaluation of deferred tax balances		28.2			—			—
Other deferred tax impacts of tax reform		(64.8	)		—			—
Other		0.1			2.4			0.5

Effective Tax Rate		38.8	%		4.7	%		2.2	%

Schedule of significant components of deferred taxes

Significant components of the Company's deferred taxes as of December 30, 2017 and December 31, 2016 are as follows (in thousands):

	December 30, 2017			December 31, 2016

Deferred tax assets:
Net operating loss carryforwards	$	12,925		$	21,187
Research and development tax credit carryforwards		12,322			15,068
Stock-based compensation		5,256			7,396
Capitalized research and development		3,468			6,802
Deferred income on shipments to distributors		7,070			9,338
Expected future cost-sharing adjustment		19,961			29,719
Accrued liabilities and other		8,620			11,321

		69,622			100,831
Less: Valuation allowance		(6,518	)		(12,361	)

		63,104			88,470
Deferred tax liabilities:
Acquired intangible assets		13,884			25,785
Depreciation and amortization		1,274			2,939
Unremitted foreign earnings for expected future cost-sharing adjustment		—			31,165
Convertible debt		10,351			—
Prepaid expenses and other		1,421			3,069

		26,930			62,958

Net deferred tax assets	$	36,174		$	25,512

Schedule of activity related to gross unrecognized tax benefits

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

	Year Ended

	December 30, 2017			December 31, 2016			January 2, 2016
Beginning balance	$	3,054		$	3,610		$	3,929
Additions based on tax positions related to current year		456			439			432
Additions based on tax positions related to prior years		114			99			—
Reductions for tax positions as a result of a lapse of the applicable statute of limitations		(437	)		(1,094	)		(751	)

Ending balance	$	3,187		$	3,054		$	3,610

Segment Information (Tables)

12 Months Ended

Dec. 30, 2017

Segment Information

Summary of the Company's revenue by product category

The following summarizes the Company's revenue by product category (in thousands):

	Year Ended

	December 30, 2017		December 31, 2016		January 2, 2016
Internet of Things	$	395,012	$	314,614	$	262,329
Broadcast		152,980		157,746		161,787
Infrastructure		152,158		147,677		121,974
Access		68,717		77,589		98,736

Total	$	768,867	$	697,626	$	644,826

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

	December 30, 2017		December 31, 2016		January 2, 2016
United States	$	112,574	$	94,583	$	96,959
China		307,748		291,974		281,306
Rest of world		348,545		311,069		266,561

Total	$	768,867	$	697,626	$	644,826

Schedule of property and equipment, net by geographic area

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

	December 30, 2017		December 31, 2016

United States	$	119,746	$	124,163
Rest of world		7,936		5,396

Total	$	127,682	$	129,559

Significant Accounting Policies (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Basis of Presentation and Principles of Consolidation
Length of fiscal year	364 days	364 days	364 days
Impairment charges on equity investments	$ 0.0
Advertising
Advertising expenses	$ 1.4	$ 1.6	$ 1.8
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

Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Recent Accounting Pronouncements
Income tax benefit	$ 29,811	$ 3,002	$ 677
Retained earnings	851,307	$ 801,999
Accounting Standards Update 2016-09 - Compensation-Stock Compensation \| Scenario, Adjustment
Recent Accounting Pronouncements
Income tax benefit	4,300
Accounting Standards Update 2014-09 - Revenue from Contracts with Customers \| Early Adoption, Effect
Recent Accounting Pronouncements
Retained earnings	26,200
Revenues	49,100
Costs of revenues	$ 19,700

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Net income	$ 47,092	$ 61,494	$ 29,586
Shares used in computing basic earnings per share (in shares)	42,446	41,713	42,309
Effect of dilutive securities:
Stock options and other stock-based awards (in shares)	886	663	636
Shares used in computing diluted earnings per share (in shares)	43,332	42,376	42,945
Earnings per share:
Basic (in dollars per share)	$ 1.11	$ 1.47	$ 0.70
Diluted (in dollars per share)	$ 1.09	$ 1.45	$ 0.69
Shares excluded from computation of diluted earning per share (in shares)	0	100	100
Shares issued upon conversion of principal amount
Earnings per share:
Shares excluded from computation of diluted earning per share (in shares)	0

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 30, 2017	Dec. 31, 2016
Financial assets and liabilities measured at fair value on a recurring basis
Total short-term investments	$ 494,657	$ 153,961
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	159,662	69,432
Total short-term investments	94,575	12,416
Total assets at fair value	254,237	81,848
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	106,047	69,432
Assets and liabilities measured at fair value on recurring basis \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Government debt securities
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	53,615
Total short-term investments	94,575	12,416
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	12,684	11,057
Total short-term investments	400,082	141,545
Derivative instruments		1,808
Other assets, net		1,808
Total assets at fair value	412,766	154,410
Assets and liabilities measured at fair value on recurring basis \| Significant Other Observable Inputs (Level 2) \| Corporate debt securities
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	11,231	7,153
Total short-term investments	171,835	44,442
Assets and liabilities measured at fair value on recurring basis \| Significant Other Observable Inputs (Level 2) \| Government debt securities
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	1,453	3,904
Total short-term investments	228,247	97,103
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
Other assets, net	5,681	5,196
Total assets at fair value	5,681	5,196
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	5,681	5,196
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	172,346	80,489
Total short-term investments	494,657	153,961
Derivative instruments		1,808
Other assets, net	5,681	7,004
Total assets at fair value	672,684	241,454
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	106,047	69,432
Assets and liabilities measured at fair value on recurring basis \| Fair Value \| Corporate debt securities
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	11,231	7,153
Total short-term investments	171,835	44,442
Assets and liabilities measured at fair value on recurring basis \| Fair Value \| Government debt securities
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	55,068	3,904
Total short-term investments	322,822	109,519
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	$ 5,681	$ 5,196

Fair Value of Financial Instruments - Available-for-sale investments (Details) - USD ($) $ in Thousands	Dec. 30, 2017	Dec. 31, 2016
Cost
Due in one year or less, Cost	$ 393,600
Due after one year through ten years, Cost	198,981
Due after ten years, Cost	81,884
Total Cost	674,465
Fair Value
Due in one year or less, Fair Value	393,201
Due after one year through ten years, Fair Value	197,922
Due after ten years, Fair Value	81,561
Total Fair Value	672,684
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months	396,029	$ 101,480
Fair value of available-for-sale securities, continuous loss position for twelve months or longer	20,286	5,196
Total fair value of available-for-sale securities, continuous loss position	416,315	106,676
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses	(1,378)	(288)
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses	(407)	(804)
Available-for-sale securities, total gross unrealized losses	(1,785)	(1,092)
Government debt securities
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months	244,880	79,743
Fair value of available-for-sale securities, continuous loss position for twelve months or longer	3,027
Total fair value of available-for-sale securities, continuous loss position	247,907	79,743
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses	(931)	(156)
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses	(15)
Available-for-sale securities, total gross unrealized losses	(946)	(156)
Corporate debt securities
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months	151,149	21,737
Fair value of available-for-sale securities, continuous loss position for twelve months or longer	11,578
Total fair value of available-for-sale securities, continuous loss position	162,727	21,737
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses	(447)	(132)
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses	(73)
Available-for-sale securities, total gross unrealized losses	(520)	(132)
Auction rate securities
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for twelve months or longer	5,681	5,196
Total fair value of available-for-sale securities, continuous loss position	5,681	5,196
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses	(319)	(804)
Available-for-sale securities, total gross unrealized losses	$ (319)	$ (804)

Fair Value of Financial Instruments - Auction rate securities and Contingent consideration (Details) - Significant Unobservable Inputs (Level 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
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	$ 5,681
Auction rate securities \| Weighted Average \| Discounted cash flow
Quantitative information for Level 3 Fair Value Measurements Assets
Estimated yield (as a percent)	1.74%
Expected holding period	10 years
Estimated discount rate (as a percent)	3.37%
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	$ 5,681	$ 5,196	$ 7,126

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
	Dec. 30, 2017	Dec. 31, 2016
Fair value assets reconciliation of changes
Balance at the end of the period	$ 5,681
Auction rate securities
Fair value assets reconciliation of changes
Balance at the beginning of the period	5,196	$ 7,126
Settlements		(2,000)
Gain included in other comprehensive income (loss)	485	70
Balance at the end of the period	$ 5,681	$ 5,196

Fair Value of Financial Instruments - Liabilities in Level 3 (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016
Fair value liabilities reconciliation of changes
Fair value of debt	$ 0	$ 72,500
Energy Micro
Fair value liabilities reconciliation of changes
Gain recognized in earnings	(2,700)	(2,700)
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		14,073
Issues	3,829
Settlements		(11,375)
Reclassification to acquisition-related liabilities	(3,380)
Gain recognized in earnings	(449)	$ (2,698)
Convertible Senior Notes
Fair value liabilities reconciliation of changes
Fair value of debt	$ 466,200

Derivative Financial Instruments (Details) - Interest rate swaps - USD ($) $ in Millions	Jul. 08, 2016	Jul. 31, 2016
Notional amount
Remaining notional value	$ 72.5
Cash flow hedges
Notional amount
Original notional value		$ 72.5

Derivative Financial Instruments - Financial Instrument (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Derivative financial instrument
Reclassification of unrealized gains included in net income	$ 1,808	$ (249)	$ (489)
Other assets, net
Derivative financial instrument
Fair value of interest rate swap		$ 1,808

Derivative Financial Instruments - Before-tax Effect (Details) $ in Thousands	12 Months Ended
	Dec. 30, 2017 USD ($) contract	Dec. 31, 2016 USD ($) contract	Jan. 02, 2016 USD ($)	Jan. 03, 2015 USD ($)	Jul. 31, 2016 USD ($)
Not designated as hedging instrument \| Foreign currency forward contracts
Derivative Instruments, Gain (Loss)
Number of foreign currency forward contract held \| contract	1	1
Original notional value	$ 2,400	$ 3,900
Not designated as hedging instrument \| Foreign currency forward contracts \| Interest income and other, net
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Income	(207)		$ (92)	$ 935
Cash flow hedges \| Interest rate swaps
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) during period		1,466	(728)
Original notional value					$ 72,500
Cash flow hedges \| Interest rate swaps \| Interest expense
Derivative Instruments, Gain (Loss)
Loss Reclassified from Accumulated OCI into Income (Effective Portion) during period	$ 1,808	$ (249)	$ (489)

Balance Sheet Details (Details) - USD ($) $ in Thousands	Dec. 30, 2017	Dec. 31, 2016
Property and Equipment
Property and equipment, gross	$ 233,644	$ 227,553
Accumulated depreciation	(105,962)	(97,994)
Property, Plant and Equipment, Net, Total	127,682	129,559
Accounts Receivable, Net
Accounts receivable	72,005	75,035
Allowance for doubtful accounts	(638)	(634)
Accounts receivable, net	71,367	74,401
Inventories
Work in progress	46,698	40,755
Finished goods	26,434	18,823
Total inventories	73,132	59,578
Prepaid Expenses and Other Current Assets
Distributor Advances	17,825	40,205
Other	21,295	21,600
Prepaid expenses and other current assets	39,120	61,805
Other Current Liabilities
Accrued compensation and benefits	33,631	28,781
Accrued price protection credits	8,239	2,287
Other	31,489	23,482
Other Liabilities, Current, Total	73,359	54,550
Other Non-current Liabilities
Non-current tax liabilities	39,196
Software license accruals	12,152	14,436
Deferred tax liabilities	10,355	13,119
Other	16,159	15,136
Liabilities, Other than Long-term Debt, Noncurrent, Total	77,862	42,691
Buildings and improvements
Property and Equipment
Property and equipment, gross	96,196	94,977
Equipment
Property and Equipment
Property and equipment, gross	59,836	57,677
Computers and purchased software
Property and Equipment
Property and equipment, gross	37,598	35,492
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	5,691	5,484
Leasehold improvements
Property and Equipment
Property and equipment, gross	$ 10,483	$ 10,083

Risks and Uncertainties (Details) $ in Millions	12 Months Ended
Risks and Uncertainties (Details) $ in Millions	Dec. 30, 2017 USD ($) item	Dec. 31, 2016 USD ($)	Jan. 02, 2016
Other assets
Equity method investments	$ 3.8	$ 2.8
Number of Notes Receivable \| item	2
Interest rate on unsettled balances due upon demand (as a percent)	0.00%
First notes receivable
Other assets
Notes receivable principal amount	$ 1.5
Second notes receivable
Other assets
Notes receivable principal amount	$ 0.7
Accounts receivable \| Customers \| Avnet
Risks and uncertainties
Concentrations of credit risk (as a percent)	16.00%	12.00%
Accounts receivable \| Customers \| Arrow Electronics
Risks and uncertainties
Concentrations of credit risk (as a percent)	14.00%	13.00%
Accounts receivable \| Customers \| Edom Technology
Risks and uncertainties
Concentrations of credit risk (as a percent)		19.00%
Accounts receivable \| Customers \| Edom Technology \| High end of range
Risks and uncertainties
Concentrations of credit risk (as a percent)	10.00%
Revenue \| Avnet
Risks and uncertainties
Concentrations of credit risk (as a percent)	14.00%	13.00%	12.00%
Revenue \| Arrow Electronics
Risks and uncertainties
Concentrations of credit risk (as a percent)	12.00%	11.00%
Revenue \| Arrow Electronics \| High end of range
Risks and uncertainties
Concentrations of credit risk (as a percent)			10.00%
Revenue \| Edom Technology
Risks and uncertainties
Concentrations of credit risk (as a percent)	19.00%	17.00%	20.00%

Acquisitions (Details) - USD ($) $ / shares in Units, $ in Thousands								3 Months Ended	12 Months Ended
	Dec. 07, 2017	Jan. 20, 2017	Oct. 03, 2016	Mar. 11, 2016	Nov. 20, 2015	Jan. 30, 2015	Jul. 01, 2013	Apr. 04, 2015	Dec. 30, 2017	Dec. 31, 2016	Dec. 31, 2016	Jan. 02, 2016	Dec. 31, 2015	Jan. 03, 2015
Acquisition
Payment of acquisition-related contingent consideration										$ 9,500		$ 4,464
Purchase price allocation
Goodwill									$ 288,227	276,130	$ 276,130	272,722
Weighted-Average Amortization Period									8 years
Customer relationships
Purchase price allocation
Weighted-Average Amortization Period									7 years
Trademarks
Purchase price allocation
Weighted-Average Amortization Period									7 years
Sigma Designs
Acquisition
Share Price	$ 7.05
Cash consideration	$ 282,000
Z-Wave
Acquisition
Purchase price of acquisition	$ 240,000
Zentri
Acquisition
Purchase price of acquisition		$ 18,100
Cash consideration		14,300
Earn-Out, fair value		3,800
Potential maximum contingent consideration that could be paid		10,000
Purchase price allocation
Intangible assets		6,700
Goodwill tax deductible		12,100
Other net liabilities		$ 700
Micrium
Acquisition
Purchase price of acquisition			$ 12,400
Cash consideration			8,200
Stock consideration			4,200
Additional stock consideration based on economic substance			1,000
Purchase price allocation
Intangible assets			9,500
Goodwill			3,400
Purchase price allocated to net tangible assets			$ (500)
Post-combination compensation expense recognition period (in years)			4 years
Micrium \| Selling, general and administrative
Purchase price allocation
Acquisition-related costs											$ 300
Telegesis
Acquisition
Cash consideration					$ 19,900
Purchase price allocation
Intangible assets					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
Acquisition-related costs recorded in selling, general and administrative expenses												500
Telegesis \| Developed technology
Purchase price allocation
Intangible assets					$ 4,980
Weighted-Average Amortization Period					7 years
Telegesis \| Customer relationships
Purchase price allocation
Intangible assets					$ 2,000
Weighted-Average Amortization Period					3 years
Telegesis \| Trademarks
Purchase price allocation
Intangible assets					$ 400
Weighted-Average Amortization Period					3 years
Telegesis \| In-process research and development
Purchase price allocation
Intangible assets					$ 10
Bluegiga
Acquisition
Cash consideration						$ 58,000
Purchase price allocation
Intangible assets						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
Acquisition-related costs recorded in selling, general and administrative expenses												1,200
Discount rate applicable to the cash flows (as a percent)						16.10%
Bluegiga \| Developed technology
Purchase price allocation
Intangible assets						$ 12,190
Weighted-Average Amortization Period						8 years
Bluegiga \| Customer relationships
Purchase price allocation
Intangible assets						$ 6,670
Weighted-Average Amortization Period						4 years
Bluegiga \| Trademarks
Purchase price allocation
Intangible assets						$ 880
Weighted-Average Amortization Period						3 years
Bluegiga \| In-process research and development
Purchase price allocation
Intangible assets						$ 5,710
Energy Micro
Acquisition
Cash consideration								$ 20,000				20,000	$ 20,000
Earn-Out, fair value				$ 16,000
Potential maximum contingent consideration that could be paid				26,700
Payment of acquisition-related contingent consideration								6,300					6,300	$ 6,300
Earn-out payment representing the Departure Percentage portion and recorded as compensation expense														1,800
Remaining Earn-out payment representing additional consideration										4,500
Additional consideration				11,400
Compensation expense				4,600						2,700			$ 1,900
Gain from the adjustment to fair value due to settlement									$ 2,700	$ 2,700
Energy Micro \| Mr. Bogen
Acquisition
Cash consideration							$ 900					$ 400
Potential maximum contingent consideration that could be paid				300
Payment of acquisition-related contingent consideration														$ 100
Energy Micro \| Mr. Forre
Acquisition
Cash consideration							$ 35,000	6,100
Potential maximum contingent consideration that could be paid				$ 4,800
Payment of acquisition-related contingent consideration								$ 1,900

Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Gross carrying amount and accumulated amortization of other intangible assets
Weighted-Average Amortization Period	8 years
Intangible assets subject to amortization, Accumulated Amortization	$ (110,716)	$ (85,416)
Total, Gross Amount	193,860	188,981
Amortization expense related to intangible assets	27,100	27,300	$ 26,500
Goodwill
Goodwill, Beginning Balance	276,130	272,722
Additions due to business combinations	12,097	3,408
Goodwill, Ending Balance	288,227	276,130	$ 272,722
Estimated aggregate amortization expense for intangible assets subject to amortization for each of the five succeeding fiscal years
2018	24,034
2019	18,292
2020	15,797
2021	11,408
2022	7,905
Zentri
Gross carrying amount and accumulated amortization of other intangible assets
Amount of intangible assets acquired	6,700
Removal of fully amortized intangible assets	1,800
Micrium
Gross carrying amount and accumulated amortization of other intangible assets
Removal of fully amortized intangible assets	$ 1,800
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	$ 161,700	157,321
Intangible assets subject to amortization, Accumulated Amortization	$ (89,442)	(70,181)
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	$ 25,470	24,970
Intangible assets subject to amortization, Accumulated Amortization	$ (16,180)	(11,356)
Patents
Gross carrying amount and accumulated amortization of other intangible assets
Weighted-Average Amortization Period	6 years
Intangible assets subject to amortization, Gross Amount	$ 3,000	3,000
Intangible assets subject to amortization, Accumulated Amortization	$ (2,750)	(2,250)
Trademarks
Gross carrying amount and accumulated amortization of other intangible assets
Weighted-Average Amortization Period	7 years
Intangible assets subject to amortization, Gross Amount	$ 3,690	3,690
Intangible assets subject to amortization, Accumulated Amortization	$ (2,344)	$ (1,629)

Debt - Convertible Senior Notes (Details) $ / shares in Units, $ in Thousands, shares in Millions	Mar. 06, 2017 USD ($) item $ / shares shares	Dec. 30, 2017 USD ($)
Amended Credit Agreement
Debt
Repayment of debt	$ 72,500
1.375% Convertible Senior Notes
Debt
Principal amount of convertible senior notes sold in private placement	$ 400,000	$ 400,000
Stated interest rate	1.375%
Conversion rate	10.7744
Principal amount of notes	$ 1,000,000
Number of shares of common stock \| shares	4.3
Initial conversion price \| $ / shares	$ 92.81
Number of trading days within 30 trading day period \| item	20
Number of consecutive trading days \| item	30
Minimum amount the sales price of the Company's stock exceeds the conversion price (as a percent)	130.00%
Number of consecutive business days after the 10 consecutive trading day period	5 days
Number of consecutive trading days before the five consecutive business days	10 days
Maximum amount the sales price of the Company's stock exceeds the conversion price (as a percent)	98.00%

Debt - Carrying amount of notes and interest expense (Details) - 1.375% Convertible Senior Notes - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Mar. 06, 2017
Debt
Total Debt issuance costs		$ 10,600
Liability component
Principal	$ 400,000	$ 400,000
Unamortized debt discount	(50,499)
Unamortized debt issuance costs	(7,622)
Net carrying amount	341,879
Equity component
Net carrying amount	$ 57,735
Effective interest rate	4.75%
Amortization of debt discount and debt issuance costs	4 years 2 months 12 days
Interest expense related to the Notes
Contractual interest expense	$ 4,492
Amortization of debt discount	8,816
Amortization of debt issuance costs	1,330
Interest Expense, Total	$ 14,638

Debt - Amended Credit Agreement (Details) $ in Thousands				12 Months Ended
Debt - Amended Credit Agreement (Details) $ in Thousands	Feb. 27, 2017 USD ($)	Jul. 24, 2015 USD ($)	Jul. 31, 2012 USD ($)	Dec. 30, 2017	Jan. 30, 2015 USD ($)
Bluegiga
Debt
Debt in connection with acquisition					$ 2,232
Credit Agreement
Debt
Maximum borrowing capacity			$ 230,000
Term of debt instrument			5 years
Amount borrowed under the Amended Credit Agreement		$ 82,500
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
Amended Credit Agreement
Debt
Repayment of credit facility amount	$ 72,500
Maximum leverage ratio				3.00
Minimum fixed charge coverage ratio				1.25
Revolving credit facility, other than swingline loans \| Low end of range
Debt
Interest rate added to the base rate (as a percent)				1.25%
Revolving credit facility, other than swingline loans \| High end of range
Debt
Interest rate added to the base rate (as a percent)				2.00%
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%
Term loan facility, revolving credit facility, swingline and other loans
Debt
Interest rate added to the base rate (as a percent)				1.00%
Term loan facility, revolving credit facility, swingline and other loans \| Low end of range
Debt
Interest rate added to the base rate (as a percent)				0.25%
Term loan facility, revolving credit facility, swingline and other loans \| High end of range
Debt
Interest rate added to the base rate (as a percent)				1.00%
Term Loan Facility
Debt
Maximum borrowing capacity			$ 100,000

Stockholders' Equity - Share repurchase programs (Details) - USD ($) $ in Thousands, shares in Millions	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016	Oct. 31, 2017	Jan. 31, 2017	Aug. 31, 2015	Oct. 31, 2014
Stockholders' Equity
Number of shares of common stock issued	0.8
Program Amount authorized to repurchase				$ 100,000	$ 100,000	$ 100,000	$ 100,000
Repurchase of common stock		$ 40,543	$ 71,448

Stockholders' Equity - Amounts Reclassed from AOCI (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Amounts Reclassified from AOCI
Income tax (expense) benefit	$ (29,811)	$ (3,002)	$ (677)
Net income	47,092	61,494	29,586
Net changes to available-for-sale securities:
Unrealized gains (losses) arising during the period	255	63	145
Net changes to cash flow hedges
Unrealized gains (losses) arising during the period		(513)	255
Reclassification for losses included in net income	633	(87)	(171)
Other comprehensive income	888	(537)	229
Reclassifications From Accumulated Other Comprehensive Income (Loss)
Amounts Reclassified from AOCI
Net income	1,175	(162)	(324)
Gains (losses) on cash flow hedges \| Reclassifications From Accumulated Other Comprehensive Income (Loss)
Amounts Reclassified from AOCI
Interest expense	1,808	(249)	(499)
Income tax (expense) benefit	$ (633)	$ 87	$ 175

Stock-Based Compensation (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 30, 2017 USD ($) $ / shares shares	Dec. 31, 2016 USD ($) employee $ / shares shares	Jan. 02, 2016 USD ($) employee shares
Stock-based compensation costs
SG&A expense related to modifications to equity awards \| $		$ 900	$ 2,300
Number of employee terminated \| employee		3	2
Stock options
Stock-based compensation costs
Weighted-average fair value for purchase rights granted (in dollars per share) \| $ / shares		$ 40.38
Fair value assumptions
Expected volatility (as a percent)		32.00%
Risk-free interest rate %		1.30%
Expected term		5 years 4 months 24 days
Dividend yield
Market Stock Units
Fair value assumptions
Expected volatility (as a percent)	31.00%	30.00%	31.00%
Risk-free interest rate %	1.60%	0.90%	1.00%
Expected term	2 years 10 months 24 days	2 years 10 months 24 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%
Number of shares granted	0	200,000	0
2009 Stock Incentive Plan \| Full value awards
Stock-based compensation costs
Number of shares granted	700,000	1,300,000	900,000
2009 Stock Incentive Plan \| Market Stock Units
Stock-based compensation costs
Award vesting period	3 years
Number of shares granted	54,000	65,000	89,000
Fair value assumptions
Cash consideration based upon achievement of specified levels of market conditions \| $	$ 0
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 \| Performance-based stock awards
Stock-based compensation costs
Award vesting period	3 years
Number of shares granted	54,000	65,000
Fair value assumptions
Cash consideration based upon achievement of specified levels of market conditions \| $	$ 0
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	239,000	224,000	210,000
Weighted-average fair value for purchase rights granted (in dollars per share) \| $ / shares	$ 19.55
Fair value assumptions
Expected volatility (as a percent)	28.00%	30.00%	31.00%
Risk-free interest rate %	1.10%	0.60%	0.20%
Expected term	8 months	15 months	8 months

Stock-Based Compensation - Options, RSAs, RSUs and MSUs Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Summary of stock-based payment and stock option values
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	$ 11,800
Amount of withheld taxes paid	$ 15,800
Stock options
Stock options activity
Outstanding at the beginning of the year (in shares)	228
Exercised (in shares)	(58)
Outstanding at the end of the year (in shares)	170	228
Vested and expected to vest at the end of the year (in shares)	120
Exercisable at the end of the year (in shares)	40
Weighted-Average Exercise Price
Outstanding at the beginning of the year (in dollars per share)	$ 37.95
Exercised (in dollars per share)	35.27
Outstanding at the end of the year (in dollars per share)	38.88	$ 37.95
Vested and expected to vest at the end of the year (in dollars per share)	40.39
Exercisable at the end of the year (in dollars per share)	$ 33.98
Weighted-Average Remaining Contractual Term (In years)
Outstanding at the end of the year	7 years 6 months
Vested and expected to vest at the end of the year	8 years 1 month 6 days
Exercisable at the end of the year	5 years 3 months 18 days
Aggregate Intrinsic Value
Outstanding at the end of the year (in dollars)	$ 8,387
Vested and expected to vest at the end of the year (in dollars)	5,744
Options exercisable at the end of the year (in dollars)	2,173
Weighted-Average Purchase Price
Per grant (in dollars per share)		40.38
Weighted-average grant date fair value
Per grant (in dollars per share)		$ 40.38
Summary of stock-based payment and stock option values
Intrinsic value of stock options exercised	$ 2,174	$ 2,560	$ 6,612
RSAs and RSUs
Summary of restricted stock awards and restricted stock units
Outstanding at the beginning the of year (in shares)	1,689
Granted (in shares)	625
Vested, earned or issued (in shares)	(726)
Cancelled or forfeited (in shares)	(65)
Outstanding at the end of the year (in shares)	1,523	1,689
Outstanding at the end of the year and expected to vest (in shares)	1,430
Weighted-Average Purchase Price
Per grant (in dollars per share)	$ 72.85	$ 40.55	$ 49.14
Weighted-Average Remaining Vesting Term
Outstanding at the end of year	10 months 24 days
Outstanding at the end of year and expected to vest	10 months 24 days
Aggregate Intrinsic Value
Outstanding at the end of the year (in dollars)	$ 134,534
Outstanding at the end of the year and expected to vest (in dollars)	$ 126,228
Weighted-average grant date fair value
Per grant (in dollars per share)	$ 72.85	$ 40.55	$ 49.14
Summary of stock-based payment and stock option values
Intrinsic value	$ 53,093	$ 36,502	$ 45,298
Grant date fair value	$ 32,449	$ 39,853	$ 41,072
PSUs and MSUs
Summary of restricted stock awards and restricted stock units
Outstanding at the beginning the of year (in shares)	229
Granted (in shares)	107
Vested, earned or issued (in shares)	(11)
Cancelled or forfeited (in shares)	(66)
Outstanding at the end of the year (in shares)	259	229
Outstanding at the end of the year and expected to vest (in shares)	242
Weighted-Average Purchase Price
Per grant (in dollars per share)	$ 78.40	$ 32.23	$ 48.36
Weighted-Average Remaining Vesting Term
Outstanding at the end of year	1 year 3 months 18 days
Outstanding at the end of year and expected to vest	1 year 3 months 18 days
Aggregate Intrinsic Value
Outstanding at the end of the year (in dollars)	$ 22,911
Outstanding at the end of the year and expected to vest (in dollars)	$ 21,388
Weighted-average grant date fair value
Per grant (in dollars per share)	$ 78.40	$ 32.23	$ 48.36
Summary of stock-based payment and stock option values
Intrinsic value	$ 687
Grant date fair value	$ 633

Stock-Based Compensation - Allocated Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Stock-based compensation costs
stock based compensation cost	$ 44,752	$ 39,628	$ 42,791
Income tax benefit	11,073	8,496	9,264
Share based compensation cost after tax	33,679	31,132	33,527
Total unrecognized compensation costs related to awards	61,700
Cost of revenues
Stock-based compensation costs
stock based compensation cost	1,090	1,070	960
Research and development
Stock-based compensation costs
stock based compensation cost	21,771	19,573	19,451
Selling, general and administrative
Stock-based compensation costs
stock based compensation cost	$ 21,891	$ 18,985	$ 22,380

Stock-Based Compensation - Reserved Shares (Details) shares in Thousands	Dec. 30, 2017 shares
Stock-Based Compensation
Reserved shares of common stock for future issuance	4,050
2000 Stock Incentive Plan
Stock-Based Compensation
Reserved shares of common stock for future issuance	15
2009 Stock Incentive Plan
Stock-Based Compensation
Reserved shares of common stock for future issuance	2,827
2009 Employee Stock Purchase Plan
Stock-Based Compensation
Reserved shares of common stock for future issuance	1,208

Employee Benefit Plan (Details) - USD ($) $ in Millions	12 Months Ended
Employee Benefit Plan (Details) - USD ($) $ in Millions	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Employee Benefit Plan
Contribution made to the 401 (k) Plan	$ 3.5	$ 3.4	$ 3.3

Commitments and Contingencies (Details) $ in Thousands			12 Months Ended
Commitments and Contingencies (Details) $ in Thousands	Jan. 28, 2014 patent	Jan. 16, 2014 patent	Dec. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)	Jan. 02, 2016 USD ($) patent	Jan. 03, 2015 patent
Operating Leases
Rent expense under operating leases			$ 5,500	$ 4,700	$ 4,600
Minimum annual future rentals
2018			5,807
2019			4,278
2020			3,539
2021			3,016
2022			2,804
Thereafter			5,416
Total minimum lease payments			24,860
Investment Commitment
Unfunded investment commitment			3,800	$ 2,800
High end of range \| Other assets
Investment Commitment
Unfunded investment commitment			$ 10,000
Cresta Technology
Patent Litigation
Number of patents allegedly infringed \| patent	3	6
Number of creditors assuming ownership of Cresta Patents \| patent	1
Number of patents with validity challenged \| patent					2	2

Related Party Transactions (Details) - USD ($) $ in Thousands			3 Months Ended	12 Months Ended
	Jul. 01, 2013	Jun. 30, 2013	Apr. 04, 2015	Dec. 31, 2016	Jan. 02, 2016	Dec. 31, 2015	Jan. 03, 2015	Mar. 11, 2016
Related Party Transaction
Payment of the fiscal 2014 earn-out				$ 9,500	$ 4,464
Energy Micro
Related Party Transaction
Cash consideration			$ 20,000		20,000	$ 20,000
Payment of the fiscal 2014 earn-out			6,300			$ 6,300	$ 6,300
Contingent consideration								$ 26,700
Total settlement amount								16,000
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								4,800
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								$ 300
Investment in acquired entity by related party prior to the acquisition		$ 800

Income Taxes - U.S. Tax Reform (Details) - USD ($) $ in Millions			12 Months Ended
	Dec. 30, 2017	Dec. 22, 2017	Dec. 31, 2018	Dec. 30, 2017	Dec. 31, 2016	Dec. 31, 2016	Jan. 02, 2016
Income Taxes
TCJA transition tax period for payment		8 years
Federal statutory rate (as a percent)	21.00%			35.00%	35.00%	35.00%	35.00%
Net tax expense				$ 26.3
Net expense for transition tax				54.4
Income tax expense (benefit) due to change in tax rate				21.8
Write off of deferred tax liability				(39.4)
Change in deferred tax assets valuation allowance				$ (10.5)
Forecast
Income Taxes
Federal statutory rate (as a percent)			21.00%
Percentage of deduction for dividends received			100.00%
Percentage of ownership from which dividends received qualify for deduction			10.00%
Holding period for the deduction of dividends received			1 year

Income Taxes - Income Before Income Taxes, Income Tax Provision and Effective Tax Rate (Details) - USD ($) $ in Thousands		12 Months Ended
	Dec. 30, 2017	Dec. 30, 2017	Dec. 31, 2016	Dec. 31, 2016	Jan. 02, 2016
Income before income taxes
Domestic		$ 9,700		$ 4,313	$ 2,249
Foreign		67,203		60,183	28,014
Income before income taxes		76,903		64,496	30,263
Current:
Domestic		48,947		2,639	951
Foreign		7,077		4,421	3,015
Total Current		56,024		7,060	3,966
Deferred:
Domestic		(25,760)		(2,430)	(5,825)
Foreign		(453)		(1,628)	2,536
Total Deferred		(26,213)		(4,058)	(3,289)
Provision for income taxes		29,811		$ 3,002	$ 677
Transition tax liability	$ 42,600	$ 42,600
Elected TCJA transition tax payment period		8 years
First payment of transition tax	$ 3,400	$ 3,400
Reconciliation of statutory tax rate to effective tax rate
Federal statutory rate (as a percent)	21.00%	35.00%	35.00%	35.00%	35.00%
Foreign tax rate benefit (as a percent)		(25.20%)		(27.20%)	(30.70%)
Research and development tax credits (as a percent)		(4.50%)		(4.10%)	(5.60%)
Release of prior year unrecognized tax benefits (as a percent)		(0.60%)		(1.70%)	(1.90%)
Excess officer compensation (as a percent)		1.50%		1.40%	3.20%
Change in cost-sharing treatment of stock-based compensation		5.20%		(0.50%)	(7.10%)
Excess tax benefit of stock-based compensation		(5.60%)
Change in prior period valuation allowance		(1.30%)		(0.60%)
Transition tax on unremitted foreign earnings		70.80%			8.80%
Revaluation of deferred tax balances		28.20%
Other deferred tax impacts of tax reform		(64.80%)
Other (as a percent)		0.10%		2.40%	0.50%
Effective Tax Rate (as a percent)		38.80%		4.70%	2.20%

Income Taxes - Altera Corp and Singapore Operations (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Feb. 28, 2016	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Income Taxes
Income tax benefit		$ 29,811	$ 3,002	$ 677
Reversal of deferred tax liability		(39,400)
Altera decision
Income Taxes
Income tax benefit	$ 22,000
Singapore
Income Taxes
Income tax benefit		$ (11,000)	$ (7,700)	$ (14,400)
Income tax benefit (Expense) per diluted share (in dollars per share)		$ 0.25	$ 0.18	$ 0.34

Income Taxes - Components of Deferred Taxes (Details) - USD ($) $ in Thousands	Dec. 30, 2017	Dec. 31, 2016
Deferred tax assets:
Net operating loss carryforwards	$ 12,925	$ 21,187
Research and development tax credit carryforwards	12,322	15,068
Stock-based compensation	5,256	7,396
Capitalized research and development	3,468	6,802
Deferred income on shipments to distributors	7,070	9,338
Expected future cost-sharing adjustment	19,961	29,719
Accrued liabilities and other	8,620	11,321
Deferred tax assets	69,622	100,831
Less: Valuation allowance	(6,518)	(12,361)
Deferred tax assets, net	63,104	88,470
Deferred tax liabilities:
Acquired intangible assets	13,884	25,785
Depreciation and amortization	1,274	2,939
Unremitted foreign earnings for expected future cost-sharing adjustment		31,165
Convertible debt	10,351
Prepaid expenses and other	1,421	3,069
Deferred tax liabilities	26,930	62,958
Net deferred tax assets	$ 36,174	$ 25,512

Income Taxes - Operating Loss and Tax Credit Carryforwards (Details) $ in Millions	Dec. 30, 2017 USD ($)
State
Operating loss and tax credit carryforwards
Operating loss carryforwards	$ 44.1
Tentative minimum tax credit carryforwards	0.1
Research and development tax credit carryforwards	13.4
Silicon Clocks, Spectra Linear and Ember \| Federal
Operating loss and tax credit carryforwards
Operating loss carryforwards	37.5
Research and development tax credit carryforwards	1.9
Energy Micro \| Foreign
Operating loss and tax credit carryforwards
Operating loss carryforwards	$ 9.6

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Dec. 30, 2017	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Changes in unrecognized tax benefits
Beginning balance		$ 3,187	$ 3,054	$ 3,610	$ 3,929
Additions based on tax positions related to current year			456	439	432
Additions based on tax positions related to prior years			114	99
Reductions for tax positions as a result of a lapse of the applicable statute of limitations			(437)	(1,094)	(751)
Ending balance	$ 3,187		3,187	3,054	3,610
Gross unrecognized tax benefits which would affect the effective tax rate if recognized	3,200		3,200	$ 2,200	$ 3,200
Amount of estimated decrease in unrecognized tax benefits	1,800		$ 1,800
Norwegian \| Forecast
Changes in unrecognized tax benefits
Taxes payable during appeal process		$ 15,000
2013 \| Norwegian
Changes in unrecognized tax benefits
Adjustments to taxable income excluding interest and penalties	$ 30,000

Segment Information (Details) $ in Thousands	12 Months Ended
Segment Information (Details) $ in Thousands	Dec. 30, 2017 USD ($) segment product	Dec. 31, 2016 USD ($)	Jan. 02, 2016 USD ($)
Revenue and property and equipment, net by geographic area
Revenues	$ 768,867	$ 697,626	$ 644,826
Property and equipment, net	$ 127,682	129,559
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	$ 112,574	94,583	96,959
Property and equipment, net	119,746	124,163
China
Revenue and property and equipment, net by geographic area
Revenues	307,748	291,974	281,306
Rest of world
Revenue and property and equipment, net by geographic area
Revenues	348,545	311,069	266,561
Property and equipment, net	7,936	5,396
Internet Of Things
Revenue and property and equipment, net by geographic area
Revenues	395,012	314,614	262,329
Broadcast
Revenue and property and equipment, net by geographic area
Revenues	152,980	157,746	161,787
Infrastructure
Revenue and property and equipment, net by geographic area
Revenues	152,158	147,677	121,974
Access
Revenue and property and equipment, net by geographic area
Revenues	$ 68,717	$ 77,589	$ 98,736

VALUATION AND QUALIFYING ACCOUNTS (Details) - Valuation Allowance for Deferred Tax Assets - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Valuation Allowance
Balance at Beginning of Period	$ 12,361	$ 10,264	$ 3,455
Additions Charged to Expenses	2,110	2,715	6,895
Additions Charged to Other Accounts	1,732
Deductions	(9,685)	(618)	(86)
Balance at End of Period	$ 6,518	$ 12,361	$ 10,264