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Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Dec. 29, 2018	Jan. 21, 2019	Jun. 29, 2018
Document and Entity Information
Entity Registrant Name	SILICON LABORATORIES INC
Entity Central Index Key	0001038074
Document Type	10-K
Document Period End Date	Dec. 29, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-29
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Public Float			$ 4.2
Entity Common Stock, Shares Outstanding		43,088,623
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Entity Shell Company	false

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 29, 2018	Dec. 30, 2017
Current assets:
Cash and cash equivalents	$ 197,043	$ 269,366
Short-term investments	416,779	494,657
Accounts receivable, net	73,194	71,367
Inventories	74,972	73,132
Prepaid expenses and other current assets	64,650	39,120
Total current assets	826,638	947,642
Property and equipment, net	139,049	127,682
Goodwill	397,344	288,227
Other intangible assets, net	170,832	83,144
Other assets, net	90,491	88,387
Total assets	1,624,354	1,535,082
Current liabilities:
Accounts payable	41,171	38,851
Deferred revenue and returns liability	22,494
Deferred income on shipments to distributors		50,115
Other current liabilities	81,180	73,359
Total current liabilities	144,845	162,325
Convertible debt	354,771	341,879
Other non-current liabilities	57,448	77,862
Total liabilities	557,064	582,066
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; 43,088 and 42,707 shares issued and outstanding at December 29, 2018 and December 30, 2017, respectively	4	4
Additional paid-in capital	107,517	102,862
Retained earnings	961,343	851,307
Accumulated other comprehensive loss	(1,574)	(1,157)
Total stockholders' equity	1,067,290	953,016
Total liabilities and stockholders' equity	$ 1,624,354	$ 1,535,082

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 29, 2018	Dec. 30, 2017
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	43,088,000	42,707,000
Common stock, shares outstanding	43,088,000	42,707,000

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Consolidated Statements of Income
Revenues	$ 868,267	$ 768,867	$ 697,626
Cost of revenues	346,868	314,676	276,122
Gross margin	521,399	454,191	421,504
Operating expenses:
Research and development	238,347	209,491	199,744
Selling, general and administrative	197,844	159,726	155,483
Operating expenses	436,191	369,217	355,227
Operating income	85,208	84,974	66,277
Other income (expense):
Interest income and other, net	6,647	6,057	806
Interest expense	(19,694)	(14,128)	(2,587)
Income before income taxes	72,161	76,903	64,496
Provision (benefit) for income taxes	(11,430)	29,811	3,002
Net income	$ 83,591	$ 47,092	$ 61,494
Earnings per share:
Basic (in dollars per share)	$ 1.94	$ 1.11	$ 1.47
Diluted (in dollars per share)	$ 1.90	$ 1.09	$ 1.45
Weighted-average common shares outstanding:
Basic (in shares)	43,159	42,446	41,713
Diluted (in shares)	44,044	43,332	42,376

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Consolidated Statements of Comprehensive Income
Net income	$ 83,591	$ 47,092	$ 61,494
Net changes to available-for-sale securities:
Unrealized gains (losses) arising during the period	376	(729)	(179)
Reclassification for losses included in net income	49
Net changes to cash flow hedges:
Unrealized gains (losses) arising during the period	(953)		1,466
Reclassification for (gains) losses included in net income	316	(1,808)	249
Other comprehensive income (loss), before tax	(212)	(2,537)	1,536
Provision (benefit) for income taxes	(45)	(888)	537
Other comprehensive income (loss)	(167)	(1,649)	999
Comprehensive income	$ 83,424	$ 45,443	$ 62,493

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. 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	$ (40,500)	(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
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
Increase (Decrease) in Stockholders' Equity
Cumulative effect of adoption of accounting standard			26,445	(250)	$ 26,195
Net income			83,591		83,591
Other comprehensive income (loss)				(167)	(167)
Stock issuances, net of shares withheld for taxes		(6,180)			(6,180)
Stock issuances, net of shares withheld for taxes (in shares)	815
Repurchases of common stock	$ (39,300)	(39,276)			(39,276)
Repurchases of common stock (in shares)	(434)
Stock-based compensation		50,111			50,111
Balance at Dec. 29, 2018	$ 4	$ 107,517	$ 961,343	$ (1,574)	$ 1,067,290
Balance (in shares) at Dec. 29, 2018	43,088				43,088

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Operating Activities
Net income	$ 83,591	$ 47,092	$ 61,494
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation of property and equipment	15,912	14,766	13,216
Amortization of other intangible assets and other assets	44,102	27,246	27,715
Amortization of debt discount and debt issuance costs	12,892	10,146
Stock-based compensation expense	50,077	44,752	39,628
Income tax shortfall from stock-based awards			(1,671)
Deferred income taxes	(8,210)	(26,452)	(4,087)
Changes in operating assets and liabilities:
Accounts receivable	3,931	3,234	46
Inventories	7,660	(13,416)	(6,093)
Prepaid expenses and other assets	(4,960)	25,266	(3,568)
Accounts payable	5,952	(468)	263
Other current liabilities and income taxes	(21,828)	61,924	2,879
Deferred income, deferred revenue and returns liability	(6,202)	4,453	9,713
Other non-current liabilities	(9,375)	(9,022)	(10,625)
Net cash provided by operating activities	173,542	189,521	128,910
Investing Activities
Purchases of available-for-sale investments	(395,904)	(636,363)	(185,231)
Sales and maturities of available-for-sale investments	474,129	294,452	161,921
Purchases of property and equipment	(24,462)	(12,252)	(10,927)
Purchases of other assets	(11,063)	(4,960)	(8,801)
Acquisitions of businesses, net of cash acquired	(239,729)	(15,168)	(6,546)
Net cash used in investing activities	(197,029)	(374,291)	(49,584)
Financing Activities
Proceeds from issuance of long-term debt, net		389,468
Payments on debt		(72,500)	(5,000)
Repurchases of common stock	(39,276)		(40,543)
Payment of taxes withheld for vested stock awards	(19,483)	(15,753)	(10,561)
Proceeds from the issuance of common stock	13,303	11,815	13,299
Payment of acquisition-related contingent consideration	(3,380)		(9,500)
Net cash provided by (used in) financing activities	(48,836)	313,030	(52,305)
Increase (decrease) in cash and cash equivalents	(72,323)	128,260	27,021
Cash and cash equivalents at beginning of period	269,366	141,106	114,085
Cash and cash equivalents at end of period	197,043	269,366	141,106
Supplemental Disclosure of Cash Flow Information:
Interest paid	6,227	3,859	2,222
Income taxes paid	$ 20,599	$ 8,929	11,185
Supplemental Disclosure of Non-Cash Activity:
Stock issued in business combination			$ 4,181

Description of Business	12 Months Ended
Description of Business	Dec. 29, 2018
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

Dec. 29, 2018

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 2018, 2017 and 2016 had 52 weeks and ended on December 29, 2018, December 30, 2017 and December 31, 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, goodwill, acquired intangible assets, other long-lived assets, revenue recognition, stock-based compensation and income taxes. Actual results could differ from those estimates, and such differences could be material to the financial statements.

Adoption of New Revenue Accounting Standard

The Company adopted Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers, on December 31, 2017, the first day of its fiscal year ended December 29, 2018. The Company elected the modified retrospective method of adoption which only applies to those contracts which were not completed as of December 31, 2017. Prior periods have not been adjusted. In connection with its adoption of ASC 606, the Company recorded a cumulative-effect adjustment to retained earnings of $26.2 million on December 31, 2017. The following reflects the material changes recorded in connection with the cumulative-effect adjustment (in thousands):

Financial Statement Line Item	Increase (Decrease)

Accounts receivable, net	$	230
Prepaid expenses and other current assets	$	7,579
Other assets, net	$	(2,282	)
Deferred revenue and returns liability	$	27,806
Deferred income on shipments to distributors	$	(50,115	)
Other current liabilities	$	1,641
Retained earnings	$	26,195

The following presents the amounts by which financial statement line items were affected in the current period due to the adoption of ASC 606 (in thousands):

Financial Statement Line Item*	Increase (Decrease)

Consolidated Statements of Income	Year Ended December 29, 2018
Revenues	$	12,943
Cost of revenues	$	4,234
Net income	$	6,610
Earnings per share:
Basic	$	0.15
Diluted	$	0.15

Consolidated Balance Sheet**	December 29, 2018

Prepaid expenses and other current assets	$	5,953
Goodwill	$	(2,842	)
Other assets, net	$	(4,464	)
Deferred revenue and returns liability	$	22,494
Deferred income on shipments to distributors	$	(60,789	)
Other current liabilities	$	4,282
Retained earnings	$	32,805

*: Excludes line items that were not materially affected by the Company's adoption of ASC 606. The adoption had no impact to cash provided by or used in net operating, investing or financing activities in the Consolidated Statements of Cash Flows.
**: Balance sheet line item amounts include the cumulative-effect adjustment recorded on December 31, 2017.

The primary impact of the Company's adoption of ASC 606 resulted from the acceleration of the timing of revenue recognition on sales to distributors. The Company previously deferred revenue and cost of revenue on such sales until the distributors sold the product to the end customers. The Company now recognizes revenue at the time of sale to the distributor provided all other revenue recognition criteria have been met. The Company records a right of return asset and a returns liability in place of the deferred income on shipments to distributors previously recorded under ASC 605.

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 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 loss.

In addition, the Company has made equity investments in non-publicly traded companies. Equity investments in which the Company does not have control, but has the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. The Company's proportionate share of income or loss is recorded in interest income and other, net in the Consolidated Statement of Income. All other non-marketable equity investments are recorded at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes. Prior to fiscal 2018, all other non-marketable equity investments were accounted for using the cost method. The Company periodically reviews its equity investments for other-than-temporary declines in fair value based on the specific identification method and writes down investments to their fair values when it determines that an other-than-temporary decline has occurred.

Derivative Financial Instruments

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

Cash flow hedges used by the Company include foreign currency forward contracts and interest rate swap agreements. Foreign currency forward contracts are used to reduce the earnings impact that exchange rate fluctuations have on operating expenses denominated in currencies other than the U.S. dollar. Interest rate swap agreements are used to manage exposure to interest rate risks.

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

Inventories

Inventories 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 ten 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 three 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 is recognized when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

Performance Obligations

Substantially all of the Company's contracts with customers contain a single performance obligation, the sale of mixed-signal integrated circuit (IC) products. Such sales represent a single performance obligation because the sale is one type of good (e.g., an IC) or includes multiple goods that are neither capable of being distinct nor separable from the other promises in the contract (e.g., an IC embedded with software). This performance obligation is satisfied when control of the product is transferred to the customer, which typically occurs upon delivery. Unsatisfied performance obligations primarily represent contracts for products with future delivery dates and with an original expected duration of one year or less. As allowed under ASC 606, the Company has opted to not disclose the amount of unsatisfied performance obligations as these contracts have original expected durations of less than one year.

The Company's products carry a one-year replacement warranty. The replacement warranty promises customers that delivered products are as specified in the contract (an "assurance-type warranty"). Therefore, the Company accounts for such warranties under ASC 460, Guarantees, and not as a separate performance obligation.

Transaction Price

The transaction price reflects the Company's expectations about the consideration it will be entitled to receive from the customer and may include fixed or variable amounts. Fixed consideration primarily includes sales to direct customers and sales to distributors in which both the sale to the distributor and the sale to the end customer occur within the same reporting period. Variable consideration includes sales in which the amount of consideration that the Company will receive is unknown as of the end of a reporting period. Such consideration primarily includes sales made to distributors under agreements allowing certain rights of return, referred to as stock rotation, and credits issued to the distributor due to price protection. Stock rotation allows distributors limited levels of returns and is based on the distributor's prior purchases. Price protection represents price discounts granted to certain distributors and is based on negotiations on sales to end customers.

The Company estimates variable consideration at the most likely amount to which it expects to be entitled. Included in the transaction price estimate are amounts in which it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The estimate is based on information available to the Company, including recent sales activity and pricing data. The Company applies a constraint to its variable consideration estimate which considers both the likelihood of a return and the amount of a potential price concession.

Variable consideration that does not meet revenue recognition criteria is deferred. The Company records a right of return asset in prepaid expenses and other current assets for the costs of distributor inventory not meeting revenue recognition criteria. A corresponding deferred revenue and returns liability amount is recorded for unrecognized revenue associated with such costs.

Contract Balances

Accounts receivable represents the Company's unconditional right to receive consideration from its customer. Payments are typically due within 30 days of invoicing and do not include a significant financing component. To date, there have been no material impairment losses on accounts receivable. There were no material contract assets or contract liabilities recorded on the Consolidated Balance Sheet in any of the periods presented.

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 14, 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 $1.9 million, $1.4 million and $1.6 million in fiscal 2018, 2017 and 2016, respectively.

Income Taxes

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

Uncertain tax positions must meet a more-likely-than-not threshold to be recognized in the financial statements and the tax benefits recognized are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon final settlement. See Note 17, Income Taxes, for additional information.

Recent Accounting Pronouncements

In February 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The Company early adopted this ASU on December 31, 2017. The adoption did not have a material impact on its financial statements.

In August 2017, the FASB issued 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 early adopted this ASU on December 31, 2017. The adoption did not have a material impact on its financial statements.

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, which previously measured an impairment loss by comparing the implied fair value of goodwill with its carrying amount. 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 June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): 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 February 2016, the FASB issued ASU No. 2016-02, Leases, which was subsequently amended in 2018 by ASU 2018-10, ASU 2018-11 and ASU 2018-20 (collectively, 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. Topic 842 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company will elect an optional transition method to account for the impact of the adoption with a cumulative-effect adjustment in the period of adoption and will not restate prior periods. The Company expects to elect certain practical expedients permitted under the transition guidance. The Company is substantially complete with its evaluation of the effect that the adoption of this ASU will have on its financial statements. The Company believes that most of its operating lease commitments will be subject to the new standard. In connection with the adoption of ASC 842, the Company expects to recognize additional right-of-use assets and operating lease liabilities of $20.8 million on December 30, 2018.

Earnings Per Share

12 Months Ended

Dec. 29, 2018

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 29, 2018		December 30, 2017		December 31, 2016
Net income	$	83,591	$	47,092	$	61,494

Shares used in computing basic earnings per share		43,159		42,446		41,713
Effect of dilutive securities:
Stock-based awards		885		886		663

Shares used in computing diluted earnings per share		44,044		43,332		42,376



Earnings per share:
Basic	$	1.94	$	1.11	$	1.47
Diluted	$	1.90	$	1.09	$	1.45

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 is included in the denominator for the computation of diluted earnings per share using the treasury stock method. For fiscal 2018, approximately 0.1 million shares were included in the denominator for the calculation of diluted earnings per share. For fiscal 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. 29, 2018

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 29, 2018 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	$	74,990	$	—	$	—	$	74,990
Corporate debt securities		—		18,820		—		18,820
Government debt securities		9,338		—		—		9,338

Total cash equivalents	$	84,328	$	18,820	$	—	$	103,148
Short-term investments:
Government debt securities	$	48,141	$	99,211	$	—	$	147,352
Corporate debt securities		—		269,427		—		269,427

Total short-term investments	$	48,141	$	368,638	$	—	$	416,779
Other assets, net:
Auction rate securities	$	—	$	—	$	5,759	$	5,759

Total	$	—	$	—	$	5,759	$	5,759

Total	$	132,469	$	387,458	$	5,759	$	525,686

	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

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 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 loss in the Consolidated Balance Sheet. The following summarizes the contractual underlying maturities of the Company's available-for-sale investments at December 29, 2018 (in thousands):

	Cost		Fair Value

Due in one year or less	$	338,623	$	337,910
Due after one year through ten years		169,058		168,657
Due after ten years		19,360		19,119

	$	527,041	$	525,686

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 29, 2018	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Government debt securities	$	13,278	$	(10	)	$	88,696	$	(583	)	$	101,974	$	(593	)
Corporate debt securities		112,699		(273	)		76,310		(448	)		189,009		(721	)
Auction rate securities		—		—			5,759		(241	)		5,759		(241	)

	$	125,977	$	(283	)	$	170,765	$	(1,272	)	$	296,742	$	(1,555	)

	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	)

The gross unrealized losses as of December 29, 2018 and December 30, 2017 were due primarily to changes in market interest rates and the illiquidity of the Company's auction-rate securities. The Company's auction-rate securities have been illiquid since 2008 when auctions for the securities failed because sell orders exceeded buy orders. These securities have a contractual maturity date of 2046. The Company is unable to predict if these funds will become available before their maturity date.

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 29, 2018, the Company has determined that no other-than-temporary impairment losses existed.

At December 29, 2018 and December 30, 2017, 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 29, 2018 (000s)	Valuation Technique	Unobservable Input	Weighted Average

$5,759	Discounted cash flow	Estimated yield	3.23%
		Expected holding period	10 years
		Estimated discount rate	3.76%

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.

The following summarizes the activity in Level 3 financial instruments for the years ended December 29, 2018 and December 30, 2017 (in thousands):

Assets

	Year Ended

Auction Rate Securities	December 29, 2018		December 30, 2017
Beginning balance	$	5,681	$	5,196
Gain included in other comprehensive income (loss)		78		485

Ending balance	$	5,759	$	5,681

Liabilities

	Year Ended

Contingent Consideration (1)	December 30, 2017
Beginning balance	$	—
Issues		3,829
Reclassification to acquisition-related liabilities		(3,380	)
Gain recognized in selling, general and administrative expenses		(449	)

Ending balance	$	—

(1): In connection with the acquisition of Zentri, the Company recorded contingent consideration based on fiscal 2017 revenue from certain Zentri products.

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. As of December 29, 2018 and December 30, 2017, the fair value of the convertible senior notes was $419.0 million and $466.2 million, respectively.

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

- Definition

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

+ References + Details

Derivative Financial Instruments

12 Months Ended

Dec. 29, 2018

Derivative Financial Instruments

Derivative Financial Instruments

5. Derivative Financial Instruments

Cash Flow Hedges

Foreign Currency Forward Contracts

The Company uses foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on operating expenses denominated in currencies other than the U.S. dollar. Changes in the fair value of the contracts are recorded in accumulated other comprehensive loss in the Consolidated Balance Sheet and subsequently reclassified into earnings in the period during which the hedged transaction is recognized. The reclassified amount is reported in the same financial statement line item as the hedged item. If the foreign currency forward contracts are terminated or can no longer qualify as hedging instruments prior to maturity, the fair value of the contracts recorded in accumulated other comprehensive loss may be recognized in the Consolidated Statement of Income based on an assessment of the contracts at the time of termination.

The Company entered into foreign currency forward contracts in March 2018 for a portion of its forecasted operating expenses denominated in the Norwegian Krone. As of December 29, 2018, the contracts had maturities of one to twelve months and an aggregate notional value of $8.8 million. Losses expected to be reclassified into earnings in the next 12 months were not material. The fair value of the contracts, contract losses recognized in other comprehensive income and amounts reclassified from accumulated other comprehensive loss into earnings were not material for any of the periods presented.

Interest Rate Swaps

The Company entered into an interest rate swap agreement with an original notional value of $72.5 million in connection with its Credit Facility in July 2016. The Company terminated the swap agreement on March 6, 2017, which resulted in the reclassification of $1.8 million of unrealized gains that were previously recorded in accumulated other comprehensive loss into earnings during fiscal 2017.

Non-designated Hedges

Foreign Currency Forward Contracts

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

As of December 30, 2017, the Company held one foreign currency forward contract denominated in the Norwegian Krone with a notional value of $2.4 million. The fair value of the contract was not material as of December 30, 2017.

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 29, 2018		December 30, 2017			December 31, 2016			Location
Foreign currency forward contracts	$	105	$	(207	)	$	(92	)	Interest income and other, net

Balance Sheet Details

12 Months Ended

Dec. 29, 2018

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 29, 2018			December 30, 2017

Accounts receivable	$	73,832		$	72,005
Allowance for doubtful accounts		(638	)		(638	)

	$	73,194		$	71,367

Inventories

	December 29, 2018		December 30, 2017

Work in progress	$	50,983	$	46,698
Finished goods		23,989		26,434

	$	74,972	$	73,132

Property and Equipment

	December 29, 2018			December 30, 2017

Buildings and improvements	$	109,025		$	96,196
Equipment		62,895			59,836
Computers and purchased software		42,487			37,598
Leasehold interest in ground leases		23,840			23,840
Leasehold improvements		12,006			10,483
Furniture and fixtures		7,794			5,691

		258,047			233,644
Accumulated depreciation		(118,998	)		(105,962	)

	$	139,049		$	127,682

Other Current Liabilities

	December 29, 2018		December 30, 2017

Accrued compensation and benefits	$	37,113	$	33,631
Accrued price protection credits		12,033		8,239
Other		32,034		31,489

	$	81,180	$	73,359

Other Non-current Liabilities

	December 29, 2018		December 30, 2017

Non-current tax liabilities	$	21,576	$	39,196
Other		35,872		38,666

	$	57,448	$	77,862

Risks and Uncertainties

12 Months Ended

Dec. 29, 2018

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 securities, agency securities, 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:



Arrow Electronics	12	%	14	%
Edom Technology	10	%	*
Avnet	—		16	%

*: 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 three notes receivable from two privately held companies. The total carrying value of the notes was $2.4 million as of December 29, 2018, which was recorded in other assets, net in the Consolidated Balance Sheet.

The Company holds two equity investments in privately held companies. One investment is accounted for using the equity method and had a carrying value of $4.1 million as of December 29, 2018. The second investment is recorded at cost minus impairment and had a carrying value of $2.0 million as of December 29, 2018. In fiscal 2018, the Company reduced the carrying value of the second investment by $1.8 million, which was recorded in interest income and other, net in the Consolidated Statements of Income. Both investments were 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 Semiconductor Manufacturing International Corporation (SMIC). The inability of TSMC or SMIC to deliver wafers to the Company on a timely basis could impact the production of the Company's products for a substantial period of time, which could have a material adverse effect on the Company's business, financial condition, results of operations and cash flows.

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 2018, 2017 or 2016. The Company's distributors that accounted for greater than 10% of revenue consisted of the following:

	Year Ended

	December 29, 2018			December 30, 2017			December 31, 2016
Arrow Electronics		21	%		12	%		11	%
Edom Technology		17	%		19	%		17	%
Avnet		*			14	%		13	%

*: Less than 10% of revenue

Acquisitions

12 Months Ended

Dec. 29, 2018

Acquisitions

Acquisitions

8. Acquisitions

Z-Wave

On April 18, 2018, the Company completed the acquisition of the Z-Wave business from Sigma Designs, Inc. for $243 million in cash. Z-Wave is an Internet of Things (IoT) technology for smart home solutions.

This strategic acquisition expands the Company's IoT connectivity portfolio in the connected home market, while further scaling the Company's engineering team. These factors contributed to a purchase price that was in excess of the fair value of the net assets acquired and, as a result, the Company recorded goodwill. A portion of the goodwill is 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	$	20,900		Not amortized
Developed technology		69,875		7
Customer relationships		25,000		4
Trademarks		9,900		7

		125,675
Cash and cash equivalents		2,841
Accounts receivable		5,311
Inventory		15,581
Other current assets		329
Goodwill		109,117
Other non-current assets		2,587
Accounts payable		(3,306	)
Other current liabilities		(8,918	)
Other non-current liabilities		(6,648	)

Total purchase price	$	242,569

In-process research and development (IPR&D) represents acquired smart home technology that had not been completed as of the acquisition date. The fair value of IPR&D was determined using the income approach. The discount rate applied to the projected cash flows was 15.0%, which reflects the engineering and technical risks related to the projects. The allocation of the purchase price is preliminary and subject to change, based on the finalization of income tax matters.

Revenues attributable to the Z-Wave business from the date of acquisition to December 29, 2018 were $37.0 million. The Company recorded approximately $4.9 million of acquisition-related costs in selling, general and administrative expenses during fiscal 2018.

The following unaudited pro forma financial information presents combined results of operations for each of the periods presented, giving effect to the acquisition as if it had been completed on January 1, 2017. The pro forma financial information includes charges for the fair value write-up associated with acquired inventory, adjustments for amortization expense of acquired intangible assets and tax-related expenses. The pro forma results of operations are presented for informational purposes only and are not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place on January 1, 2017 or of results that may occur in the future (in thousands, except per share data):

	Year Ended

	December 29, 2018		December 30, 2017
	(Unaudited)
Revenues	$	882,109	$	824,009
Net income	$	87,874	$	27,958
Earnings per share:
Basic	$	2.04	$	0.66
Diluted	$	2.00	$	0.65

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 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 liabilities—$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.

Energy Micro

On July 1, 2013, the Company acquired Energy Micro. In fiscal 2016, the Company entered into an agreement which 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.

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 29, 2018

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 29, 2018 and December 30, 2017 (in thousands):

	Year Ended

	December 29, 2018		December 30, 2017
Beginning balance	$	288,227	$	276,130
Additions due to business combinations		109,117		12,097

Ending balance	$	397,344	$	288,227

Other Intangible Assets

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

		December 29, 2018					December 30, 2017

	Weighted-Average Amortization Period (Years)	December 29, 2018					December 30, 2017
	Weighted-Average Amortization Period (Years)	Gross Amount		Accumulated Amortization			Gross Amount		Accumulated Amortization
Core and developed technology	8	$	237,265	$	(102,116	)	$	161,700	$	(89,442	)
Customer relationships	5		46,890		(21,075	)		25,470		(16,180	)
Patents	—		—		—			3,000		(2,750	)
Trademarks	7		12,310		(2,442	)		3,690		(2,344	)

Total	8	$	296,465	$	(125,633	)	$	193,860	$	(110,716	)

Gross intangible assets increased $125.7 million in fiscal 2018 for assets added due to the acquisition of Z-Wave business. This increase was offset by $23.1 million due to the removal of fully amortized assets.

Amortization expense related to intangible assets for fiscal 2018, 2017 and 2016 was $38.0 million, $27.1 million and $27.3 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

2019	$	39,222
2020		36,727
2021		32,337
2022		24,206
2023		18,286

Debt

12 Months Ended

Dec. 29, 2018

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 then remaining balance under its 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 ended 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 29, 2018			December 30, 2017

Liability component
Principal	$	400,000		$	400,000
Unamortized debt discount		(39,298	)		(50,499	)
Unamortized debt issuance costs		(5,931	)		(7,622	)

Net carrying amount	$	354,771		$	341,879



Equity component
Net carrying amount	$	57,735		$	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 29, 2018, the remaining period over which the debt discount and debt issuance costs will be amortized was 3.2 years.

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

	Year Ended

	December 29, 2018		December 30, 2017
Contractual interest expense	$	5,500	$	4,492
Amortization of debt discount		11,202		8,816
Amortization of debt issuance costs		1,690		1,330

	$	18,392	$	14,638

Credit Facility

In connection with the Company's offering of the Notes, it and certain of its domestic subsidiaries (the "Guarantors") amended its existing credit agreement and paid off the then remaining balance of $72.5 million. The amended agreement (the "Credit Facility") consists of a $300 million revolving credit facility with a maturity date of July 24, 2020. The Credit Facility includes a $25 million letter of credit sublimit and a $10 million swingline loan sublimit. The Company also has an option to increase the size of the borrowing capacity by up to 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 Credit Facility.

The Credit Facility contains various conditions, covenants and representations with which the Company must be in compliance in order to borrow funds and to avoid an event of default, including financial covenants that the Company must maintain a 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 29, 2018, the Company was in compliance with all covenants of the Credit Facility. The Company's obligations under the Credit Facility are guaranteed by the Guarantors and are secured by a security interest in substantially all assets of the Company and the Guarantors.

Commitments and Contingencies

12 Months Ended

Dec. 29, 2018

Commitments and Contingencies

Commitments and Contingencies

11. Commitments and Contingencies

Operating Leases

The Company leases certain facilities under operating lease agreements that expire at various dates through 2027. Some of these arrangements contain renewal options and require the Company to pay taxes, insurance and maintenance costs.

Rent expense under operating leases was $6.0 million, $5.5 million and $4.7 million for fiscal 2018, 2017 and 2016, respectively. The minimum annual future rentals under the terms of these leases as of December 29, 2018 are as follows (in thousands):

Fiscal Year

2019	$	5,287
2020		4,746
2021		4,051
2022		3,485
2023		2,810
Thereafter		3,842

Total minimum lease payments	$	24,221

Investment Commitment

The Company has committed to invest up to $10.0 million in a limited partnership, of which approximately $4.3 million was funded through December 29, 2018.

Patent Litigation—Cresta Technology

On January 28, 2014, Cresta Technology Corporation ("Cresta Technology"), a Delaware corporation, filed a lawsuit against the Company in the United States District Court in the District of Delaware, alleging infringement of three United States Patents (the "Cresta Patents"). 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.

Cresta Technology declared bankruptcy in 2016 and the Cresta patents and the Delaware lawsuit were acquired by Crespe LLC.

On September 17, 2018, the Company and Crespe LLC settled all matters. The Company received a non-material payment from Crespe LLC. There was no payment from the Company and the Company received a full license to the Cresta Patents and dismissal of all claims.

Patent Litigation—Bandspeed

On June 21, 2018, Bandspeed, LLC ("Bandspeed"), a Texas limited liability company, filed a lawsuit against the Company in the United States District Court of the Western District of Texas, Austin Division, alleging infringement of eight United States Patents. On November 9, 2018, the Company and Bandspeed settled all matters, and the Court ordered a dismissal on November 19, 2018. The Company made a non-material payment to Bandspeed and received a full license to the alleged patents and dismissal of all claims.

Other

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

Stockholders' Equity

12 Months Ended

Dec. 29, 2018

Stockholders' Equity

Stockholders' Equity

12. Stockholders' Equity

Common Stock

The Company issued 0.8 million shares of common stock during fiscal 2018.

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 2019	$	200,000	*
January 2017	December 2017	$	100,000
August 2015	December 2016	$	100,000

*: In October 2018, the Board of Directors increased the share repurchase amount for the October 2017 program from $100 million to $200 million and extended the termination date from December 2018 to December 2019.

These programs allow for repurchases to be made in the open market or in private transactions, including structured or accelerated transactions, subject to applicable legal requirements and market conditions. The Company repurchased 0.4 million shares of its common stock for $39.3 million during fiscal 2018. The Company did not repurchase any shares of its common stock during fiscal 2017. The Company repurchased 0.9 million shares of its common stock for $40.5 million during fiscal 2016. These shares were retired upon repurchase.

Reclassifications From Accumulated Other Comprehensive Loss

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

	Year ended

Reclassification	December 29, 2018			December 30, 2017			December 31, 2016
Losses on available-for-sales securities to:
Interest income and other, net	$	(49	)	$	—		$	—
Gains (losses) on cash flow hedges to:
Interest income and other, net		(316	)		—			—
Interest expense		—			1,808			(249	)

		(365	)		1,808			(249	)
Income tax (expense) benefit		77			(633	)		87

Total gains (losses) reclassified	$	(288	)	$	1,175		$	(162	)

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 29, 2018			December 30, 2017		December 31, 2016
Net changes to available-for-sale securities:
Unrealized gains (losses) arising during the period	$	(79	)	$	255	$	63
Reclassification for losses included in net income		(10	)		—		—
Net changes to cash flow hedges:
Unrealized gains (losses) arising during the period		200			—		(513	)
Reclassification for gains (losses) included in net income		(66	)		633		(87	)

	$	45		$	888	$	(537	)

Revenues

12 Months Ended

Dec. 29, 2018

Revenues

Revenues

13. Revenues

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

	Year Ended

	December 29, 2018		December 30, 2017 (1)		December 31, 2016 (1)
Internet of Things	$	463,838	$	395,012	$	314,614
Infrastructure		199,478		152,158		147,677
Broadcast		141,412		152,980		157,746
Access		63,539		68,717		77,589

	$	868,267	$	768,867	$	697,626

(1): Under the modified retrospective method, prior period amounts have not been adjusted.

A portion of the Company's sales are made to distributors under agreements allowing certain rights of return and/or price protection related to the final selling price to the end customers. These factors impact the timing and uncertainty of revenues and cash flows. The Company recognized revenue of $24.3 million during fiscal 2018 from performance obligations that were satisfied in previous reporting periods. The following disaggregates the Company's revenue by sales channel (in thousands):

	Year Ended

	December 29, 2018		December 30, 2017 (1)		December 31, 2016 (1)
Distributors	$	618,989	$	547,419	$	471,622
Direct customers		249,278		221,448		226,004

	$	868,267	$	768,867	$	697,626

(1): Under the modified retrospective method, prior period amounts have not been adjusted.

Stock-Based Compensation

12 Months Ended

Dec. 29, 2018

Stock-Based Compensation

Stock-Based Compensation

14. 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.

2009 Stock Incentive Plan

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

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 0.6 million, 0.7 million and 1.3 million shares of full value awards and 0.0 million, 0.0 million, and 0.2 million stock options from the 2009 Plan during fiscal 2018, 2017 and 2016, respectively.

The Company recorded $0.9 million in selling, general and administrative expense during fiscal 2016 in connection with the modifications of certain equity awards. The modifications were pursuant to three employee terminations in fiscal 2016. There were no other significant modifications made to any stock grants during fiscal 2018, 2017 or 2016.

Included in the full value awards granted under the 2009 Plan in fiscal 2018, 2017 and 2016 were a total of 41 thousand, 54 thousand and 65 thousand market-based stock awards, respectively. The awards, also known as market stock units (MSUs), provide the rights to acquire a number of shares of common stock for no cash consideration based upon achievement of specified levels of market conditions. The requisite service period for these MSUs is also the vesting period, which is generally three years. The performance criteria of the MSUs measure the difference between the total stockholders' return of the Company against that of the PHLX Semiconductor Sector Total Return Index.

Also included in the full value awards granted under the 2009 Plan during fiscal 2018, 2017 and 2016 were 41 thousand, 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 2018, 2017 and 2016, the Company issued 223 thousand, 239 thousand and 224 thousand shares, respectively, under the 2009 Purchase Plan to its employees. The weighted-average fair value for purchase rights granted in fiscal 2018 under the 2009 Purchase Plan was $22.59 per share.

Accounting for Stock-Based Compensation

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

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

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

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

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

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 29, 2018			December 30, 2017			December 31, 2016
Expected volatility		30	%		28	%		30	%
Risk-free interest rate %		2.4	%		1.1	%		0.6	%
Expected term (in months)		9			8			15
Dividend yield		—			—			—

	Year Ended

Stock Options	December 29, 2018		December 30, 2017		December 31, 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 29, 2018			December 30, 2017			December 31, 2016
Expected volatility		29	%		31	%		30	%
Risk-free interest rate %		2.4	%		1.6	%		0.9	%
Expected term (in years)		2.9			2.9			2.9
Dividend yield		—			—			—

A summary of stock-based compensation activity with respect to fiscal 2018 follows:

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

Outstanding at December 30, 2017	170		$	38.88
Exercised	(33	)	$	36.45

Outstanding at December 29, 2018	137		$	39.47	7.1	$	5,327
Vested at December 29, 2018 and expected to vest	83		$	40.39	7.1	$	3,154
Exercisable at December 29, 2018	50		$	37.88	7.1	$	2,031

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

Outstanding at December 30, 2017	1,523		$	—
Granted	522		$	—
Vested or issued	(730	)	$	—
Cancelled or forfeited	(97	)	$	—

Outstanding at December 29, 2018	1,218		$	—	0.86	$	95,620
Outstanding at December 29, 2018 and expected to vest	1,147		$	—	0.86	$	90,008

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

Outstanding at December 30, 2017	259		$	—
Granted	81		$	—
Earned or issued	(37	)	$	—
Cancelled or forfeited	(21	)	$	—

Outstanding at December 29, 2018	282		$	—	1.1	$	22,164
Outstanding at December 29, 2018 and expected to vest	249		$	—	1.1	$	19,615

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

	Year Ended

	December 29, 2018		December 30, 2017		December 31, 2016
Per grant of RSAs and RSUs	$	93.75	$	72.85	$	40.55
Per grant of PSUs and MSUs	$	97.53	$	78.40	$	32.23
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 29, 2018		December 30, 2017		December 31, 2016
Intrinsic value of stock options exercised	$	1,952	$	2,174	$	2,560
Intrinsic value of RSUs that vested	$	68,012	$	53,093	$	36,502
Grant date fair value of RSUs that vested	$	37,720	$	32,449	$	39,853
Intrinsic value of MSUs that vested	$	3,562	$	687	$	—
Grant date fair value of MSUs that vested	$	1,788	$	633	$	—

The Company received cash of $13.3 million for the issuance of common stock, and paid $19.5 million for shares withheld for taxes, during fiscal 2018. The Company issues shares from the shares reserved under its stock plans upon the exercise of stock options, vesting of RSUs, PSUs and MSUs, and purchases through employee stock purchase plans. The Company does not currently expect to repurchase shares from any source to satisfy such obligation.

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

	Year Ended

	December 29, 2018		December 30, 2017		December 31, 2016
Cost of revenues	$	1,238	$	1,090	$	1,070
Research and development		23,867		21,771		19,573
Selling, general and administrative		24,972		21,891		18,985

		50,077		44,752		39,628
Income tax benefit		8,890		11,073		8,496

	$	41,187	$	33,679	$	31,132

The decrease in income tax benefit in fiscal 2018 was due to the reduced current and future deductibility of executive stock compensation as a result of the Tax Cuts and Jobs Act. 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 $65.4 million of total unrecognized compensation costs related to granted stock options and awards as of December 29, 2018 that are expected to be recognized over a weighted-average period of approximately 1.9 years. There were no significant stock-based compensation costs capitalized into assets in any of the periods presented.

As of December 29, 2018, the Company had reserved shares of common stock for future issuance as follows (in thousands):


2009 Stock Incentive Plan			2,343
2009 Employee Stock Purchase Plan			985

Total shares reserved			3,328

Employee Benefit Plan	12 Months Ended
Employee Benefit Plan	Dec. 29, 2018
Employee Benefit Plan
Employee Benefit Plan	15. 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 $3.7 million, $3.5 million and $3.4 million to the 401(k) Plan during fiscal 2018, 2017 and 2016, respectively.

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 29, 2018
Related Party Transactions
Related Party Transactions	16. Related Party Transactions On July 1, 2013, Geir Førre joined the Company as senior vice president. Mr. Førre was chief executive officer of Energy Micro, until it was acquired by the Company. Mr. Førre was the beneficial owner of approximately 30% of the Energy Micro equity. In fiscal 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. 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. Under the settlement agreement, Mr. Bogen received approximately $0.3 million that was paid for fiscal 2015 through 2018 earn-out.

Income Taxes

12 Months Ended

Dec. 29, 2018

Income Taxes

Income Taxes

17. Income Taxes

The Tax Cuts and Jobs Act (the Act) was enacted in the U.S. on December 22, 2017. The Act reduced the U.S. federal corporate income tax rate to 21% from 35%, required companies to pay a one-time Transition Tax on earnings of certain foreign subsidiaries that were previously tax deferred and created new taxes on certain foreign-sourced earnings. In 2017 and the first nine months of 2018, the Company recorded provisional amounts for certain enactment-date effects of the Act by applying the guidance in Staff Accounting Bulletin No. 118 or "SAB 118" because it had not yet completed the enactment-date accounting for these effects. In 2017, the Company recorded tax expense related to the enactment-date effects of the Act that included recording the one-time Transition Tax liability related to undistributed earnings of certain foreign subsidiaries that were not previously taxed, the revaluation of deferred tax assets and liabilities and other deferred tax impacts. In 2018, certain discrete adjustments to provisional amounts were recorded. The changes to the 2017 enactment-date provisional amounts decreased the effective tax rate in 2018 by (6.2)%.

SAB 118 measurement period

The Company applied the guidance in SAB 118 when accounting for the enactment-date effects of the Act in 2017 and throughout 2018. At December 30, 2017, the Company had not completed its accounting for the enactment-date income tax effects of the Act under ASC 740, Income Taxes, specifically for the following aspects: remeasurement of deferred tax assets and liabilities, one-time Transition Tax, its indefinite reinvestment assertion and its accounting policy for global intangible low-taxed income. As of December 29, 2018, the Company has now completed its accounting for all of the enactment-date income tax effects of the Act. As further discussed below, during 2018, the Company recognized a benefit of $4.5 million to the provisional amounts recorded at December 30, 2017 and included these adjustments as a component of income tax expense from continuing operations.

One-time Transition Tax

The one-time Transition Tax is based on the Company's total post-1986 earnings and profits (E&P), which were previously deferred from U.S. income tax under U.S. tax law. The Company recorded a provisional amount for its one-time Transition Tax liability for each of its foreign subsidiaries, resulting in a Transition Tax cost of $54.4 million, which after offset by tax attributes resulted in a total provisional Transition Tax liability of $42.6 million at December 30, 2017.

Upon further analysis of the Act, Notices and Regulations issued and proposed by the U.S. Department of the Treasury and the Internal Revenue Service, the Company finalized its calculations of the Transition Tax liability during 2018. The Company decreased its December 30, 2017 provisional amount by $6.1 million, which is included as a component of income tax expense from continuing operations. The Company elected to pay the Transition Tax over the eight-year period provided in the Act. As of December 29, 2018, the unpaid balance of its Transition Tax obligation is $21.6 million, which is payable between April 2022 and April 2025.

Deferred tax assets and liabilities

As of December 30, 2017, the Company remeasured certain deferred tax assets and liabilities based on the tax rates at which they were expected to reverse in the future (which was generally 21%), by recording a net provisional benefit of $28.1 million. This included the release of a deferred tax liability for future foreign earnings generated by one of the Company's foreign subsidiaries upon resolution of the Altera case of $39.4 million as well as the release of approximately $10.5 million of valuation allowances with corresponding deferred tax benefits. These benefits were offset by the revaluation of the Company's net deferred tax asset and a corresponding increase to deferred tax expense of $21.8 million. Upon further analysis of certain aspects of the Act and refinement of its calculations during the 12 months ended December 29, 2018, the Company reduced its provisional benefit by $1.0 million, which is included as a component of income tax expense from continuing operations.

Global intangible low-taxed income (GILTI)

The Act subjects a U.S. shareholder to tax on GILTI earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to provide for the tax expense related to GILTI in the year the tax is incurred as a period expense.

Because the Company was still evaluating the GILTI provisions as of December 30, 2017, no GILTI-related deferred amounts were recorded in 2017. After further consideration in the current year, the Company has elected to account for GILTI as a period cost in the year the tax is incurred.

Indefinite reinvestment assertion

Beginning in 2018, the Act provides for a 100% dividends received 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 generally exempt from U.S. federal income tax in the hands of 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. As the Company was still evaluating how the Act would impact the Company's existing indefinite reinvestment assertion as of December 30, 2017, no deferred tax impacts for this item were recorded.

Upon further analysis, the Company has modified its unremitted earnings assertion both historically and on a go-forward basis to exclude the net book income of its Singapore subsidiary from the indefinite reinvestment assertion. As a result, the Company has accrued a deferred tax liability of $0.6 million associated with the state tax cost of remitting these earnings which is included as a component of income tax expense from continuing operations.

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

	Year Ended

	December 29, 2018		December 30, 2017		December 31, 2016
Domestic	$	19,777	$	9,700	$	4,313
Foreign		52,384		67,203		60,183

	$	72,161	$	76,903	$	64,496

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

	Year Ended

	December 29, 2018			December 30, 2017			December 31, 2016
Current:
Domestic	$	(8,843	)	$	48,947		$	2,639
Foreign		5,888			7,077			4,421

Total Current		(2,955	)		56,024			7,060
Deferred:
Domestic		(8,978	)		(25,760	)		(2,430	)
Foreign		503			(453	)		(1,628	)

Total Deferred		(8,475	)		(26,213	)		(4,058	)

Provision (benefit) for income taxes	$	(11,430	)	$	29,811		$	3,002

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

	Year Ended

	December 29, 2018			December 30, 2017			December 31, 2016
Federal statutory rate		21.0	%		35.0	%		35.0	%
Foreign tax rate benefit		(12.9	)		(25.4	)		(22.6	)
Research and development tax credits		(9.8	)		(4.5	)		(4.1	)
GILTI and Subpart F income		4.3			1.4			1.4
Nondeductible (nontaxable) foreign expenses		3.9			1.1			(4.0	)
State tax expense		1.5			0.9			0.6
Release of prior year unrecognized tax benefits		(2.7	)		(0.6	)		(1.7	)
Excess officer compensation		2.4			1.5			1.4
Other tax effects of equity compensation		(0.4	)		(2.2	)		(1.5	)
Change in cost-sharing treatment of stock-based compensation		(2.2	)		5.2			(0.5	)
Excess tax benefit of stock-based compensation		(5.9	)		(5.6	)		—
Change in prior period valuation allowance		(2.5	)		(1.3	)		(0.6	)
Transition tax on unremitted foreign earnings		(8.4	)		70.8			—
Revaluation of deferred tax balances		0.3			28.2			—
Other deferred tax impacts of tax reform		(3.1	)		(64.8	)		—
Other		(1.3	)		(0.9	)		1.3

Effective Tax Rate		(15.8	)%		38.8	%		4.7	%

The effective tax rate for fiscal 2018 decreased from fiscal 2017 primarily due to the reduction in the U.S. federal statutory rate as well as the inclusion of one-time tax impacts recorded in 2017 from the enactment of the Act. This decrease in the effective tax rate was offset by a decrease in the Company's foreign tax rate benefit.

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 Act. Additional tax expense was also recognized for the revaluation of the Company's deferred tax assets and liabilities due to the change in the federal tax rate from 35% to 21%. 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.

On July 27, 2015, the U.S. Tax Court issued an opinion in Altera Corp. v. Commissioner which concluded that related parties in an intercompany cost-sharing arrangement are not required to share expenses related to stock-based compensation. In February 2016, the U.S. Internal Revenue Service appealed the decision to the U.S Court of Appeals for the Ninth Circuit (the "Ninth Circuit"). On July 24, 2018, the Ninth Circuit reversed the 2015 decision of the U.S. Tax Court; however, on August 7, 2018, the Ninth Circuit withdrew its July 2018 decision to allow time for a reconstituted panel to confer on the appeal. On October 16, 2018, a rehearing was held, however, no decision has been made by the Ninth Circuit. Although 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 continues to reflect a tax benefit in its financial statements based on the expectation that the Tax Court decision will be upheld on appeal. As of the end of fiscal 2018, the Company's financial statements reflect a net deferred tax asset of $27.2 million for this position. 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, 2024, 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 $5.4 million (representing $0.12 per diluted share) in fiscal 2018, approximately $11.0 million (representing $0.25 per diluted share) in fiscal 2017 and approximately $7.7 million (representing $0.18 per diluted share) in fiscal 2016.

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 29, 2018 and December 30, 2017 are as follows (in thousands):

	December 29, 2018			December 30, 2017

Deferred tax assets:
Net operating loss carryforwards	$	9,973		$	12,925
Research and development tax credit carryforwards		12,500			12,322
Stock-based compensation		4,360			5,256
Depreciation and amortization		7,799			—
Capitalized research and development		2,521			3,468
Deferred income on shipments to distributors		5,824			7,070
Expected future cost-sharing adjustment		25,257			21,582
Accrued liabilities and other		7,737			6,999

		75,971			69,622
Less: Valuation allowance		(4,975	)		(6,518	)

		70,996			63,104
Deferred tax liabilities:
Acquired intangible assets		20,656			13,884
Depreciation and amortization		4,604			1,274
Convertible debt		8,080			10,351
Prepaid expenses and other		2,142			1,421

		35,482			26,930

Net deferred tax assets	$	35,514		$	36,174

As of December 29, 2018, the Company had federal net operating loss and research and development tax credit carryforwards of approximately $32.7 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 29, 2018, the Company had foreign net operating loss carryforwards of approximately $1.9 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 state research and development tax credit carryforwards of approximately $43.8 million, $0.1 million, and $13.5 million, respectively. A portion of these loss and credit carryforwards was generated by the Company and a portion was acquired through the Integration Associates, Silicon Clocks, Spectra Linear, Ember and Zentri acquisitions. Certain of these carryforwards expire in fiscal years 2019 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 29, 2018, the Company maintains a valuation allowance with respect to certain deferred tax assets relating to state research and development tax credit and state net operating loss carryforwards.

At the end of fiscal 2018, undistributed earnings of certain of the Company's foreign subsidiaries of approximately $105 million are intended to be permanently reinvested outside the U.S. Accordingly, no provision for foreign withholding tax and state income taxes associated with a distribution of these earnings has been made. Determination of the amount of the unrecognized deferred tax liability on these unremitted earnings is not practicable.

Uncertain Tax Positions

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

	Year Ended

	December 29, 2018			December 30, 2017			December 31, 2016
Beginning balance	$	3,187		$	3,054		$	3,610
Additions based on tax positions related to current year		630			456			439
Additions based on tax positions related to prior years		115			114			99
Reductions for tax positions as a result of a lapse of the applicable statute of limitations		(1,896	)		(437	)		(1,094	)

Ending balance	$	2,036		$	3,187		$	3,054

As of December 29, 2018, December 30, 2017 and December 31, 2016, the Company had gross unrecognized tax benefits, inclusive of interest, of $2.1 million, $3.2 million and $3.0 million, respectively, of which $2.1 million, $3.2 million and $2.2 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 2018, 2017 and 2016.

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 Company is currently appealing the assessment. Since the original assessment was issued, the NTA has reduced its assessment. The revised adjustment to the pricing of the intercompany transaction results in approximately $16.2 million additional Norwegian income tax. The Company disagrees with the NTA's assessment and believes the Company's position on this matter is more likely than not to be sustained. The Company plans to exhaust all available administrative remedies, and if unable to resolve this matter through administrative remedies with the NTA, the Company plans to pursue judicial remedies. The NTA may request an advance payment of approximately $9 million 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 2014 through 2018 remain open to examination by the major taxing jurisdictions in which the Company operates. The Company is not currently under audit in any major taxing jurisdiction.

The Company believes it is reasonably possible that the gross unrecognized tax benefits will not decrease in the next 12 months.

Segment Information

12 Months Ended

Dec. 29, 2018

Segment Information

Segment Information

18. Segment Information

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

The Company groups its products into four categories, based on the markets and applications in which the products may be used. See Note 13, Revenues, for a summary of the Company's revenue by product category.

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

	Year Ended

	December 29, 2018		December 30, 2017		December 31, 2016
United States	$	149,385	$	112,574	$	94,583
China		344,255		307,748		291,974
Rest of world		374,627		348,545		311,069

Total	$	868,267	$	768,867	$	697,626

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

	December 29, 2018		December 30, 2017

United States	$	128,622	$	119,746
Rest of world		10,427		7,936

Total	$	139,049	$	127,682

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 29, 2018

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

SCHEDULE II - 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 29, 2018	$	6,518	$	435	$	—	$	(1,978	)	$	4,975
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

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 29, 2018

Significant Accounting Policies

Foreign Currency Transactions

Foreign Currency Transactions

Use of Estimates

Use of Estimates

Adoption of New Revenue Accounting Standard

Adoption of New Revenue Accounting Standard

Financial Statement Line Item	Increase (Decrease)

Accounts receivable, net	$	230
Prepaid expenses and other current assets	$	7,579
Other assets, net	$	(2,282	)
Deferred revenue and returns liability	$	27,806
Deferred income on shipments to distributors	$	(50,115	)
Other current liabilities	$	1,641
Retained earnings	$	26,195

The following presents the amounts by which financial statement line items were affected in the current period due to the adoption of ASC 606 (in thousands):

Financial Statement Line Item*	Increase (Decrease)

Consolidated Statements of Income	Year Ended December 29, 2018
Revenues	$	12,943
Cost of revenues	$	4,234
Net income	$	6,610
Earnings per share:
Basic	$	0.15
Diluted	$	0.15

Consolidated Balance Sheet**	December 29, 2018

Prepaid expenses and other current assets	$	5,953
Goodwill	$	(2,842	)
Other assets, net	$	(4,464	)
Deferred revenue and returns liability	$	22,494
Deferred income on shipments to distributors	$	(60,789	)
Other current liabilities	$	4,282
Retained earnings	$	32,805

*: Excludes line items that were not materially affected by the Company's adoption of ASC 606. The adoption had no impact to cash provided by or used in net operating, investing or financing activities in the Consolidated Statements of Cash Flows.
**: Balance sheet line item amounts include the cumulative-effect adjustment recorded on December 31, 2017.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

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

Derivative Financial Instruments

Derivative Financial Instruments

Inventories

Inventories

Property and Equipment

Property and Equipment

Business Combinations

Business Combinations

Long-Lived Assets

Long-Lived Assets

Revenue Recognition

Revenue Recognition

Performance Obligations

Transaction Price

Contract Balances

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

Research and Development

Research and Development

Advertising

Advertising

Advertising costs are expensed as incurred. Advertising expenses were $1.9 million, $1.4 million and $1.6 million in fiscal 2018, 2017 and 2016, respectively.

Income Taxes

Income Taxes

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 29, 2018

Significant Accounting Policies

Schedule of changes recorded in connection with the cumulative-effect adjustment

The following reflects the material changes recorded in connection with the cumulative-effect adjustment (in thousands):

Financial Statement Line Item	Increase (Decrease)

Accounts receivable, net	$	230
Prepaid expenses and other current assets	$	7,579
Other assets, net	$	(2,282	)
Deferred revenue and returns liability	$	27,806
Deferred income on shipments to distributors	$	(50,115	)
Other current liabilities	$	1,641
Retained earnings	$	26,195

Schedule of condensed consolidated statement of income

The following presents the amounts by which financial statement line items were affected in the current period due to the adoption of ASC 606 (in thousands):

Financial Statement Line Item*	Increase (Decrease)

Consolidated Statements of Income	Year Ended December 29, 2018
Revenues	$	12,943
Cost of revenues	$	4,234
Net income	$	6,610
Earnings per share:
Basic	$	0.15
Diluted	$	0.15

*: Excludes line items that were not materially affected by the Company's adoption of ASC 606. The adoption had no impact to cash provided by or used in net operating, investing or financing activities in the Consolidated Statements of Cash Flows.

Schedule of condensed consolidated balance sheet

The following presents the amounts by which financial statement line items were affected in the current period due to the adoption of ASC 606 (in thousands):

Consolidated Balance Sheet**	December 29, 2018

Prepaid expenses and other current assets	$	5,953
Goodwill	$	(2,842	)
Other assets, net	$	(4,464	)
Deferred revenue and returns liability	$	22,494
Deferred income on shipments to distributors	$	(60,789	)
Other current liabilities	$	4,282
Retained earnings	$	32,805

**: Balance sheet line item amounts include the cumulative-effect adjustment recorded on December 31, 2017.

Earnings Per Share (Tables)

12 Months Ended

Dec. 29, 2018

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 29, 2018		December 30, 2017		December 31, 2016
Net income	$	83,591	$	47,092	$	61,494

Shares used in computing basic earnings per share		43,159		42,446		41,713
Effect of dilutive securities:
Stock-based awards		885		886		663

Shares used in computing diluted earnings per share		44,044		43,332		42,376



Earnings per share:
Basic	$	1.94	$	1.11	$	1.47
Diluted	$	1.90	$	1.09	$	1.45

Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 29, 2018

Fair Value of Financial Instruments

Summary of valuation of the financial instruments

	Fair Value Measurements at December 29, 2018 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	$	74,990	$	—	$	—	$	74,990
Corporate debt securities		—		18,820		—		18,820
Government debt securities		9,338		—		—		9,338

Total cash equivalents	$	84,328	$	18,820	$	—	$	103,148
Short-term investments:
Government debt securities	$	48,141	$	99,211	$	—	$	147,352
Corporate debt securities		—		269,427		—		269,427

Total short-term investments	$	48,141	$	368,638	$	—	$	416,779
Other assets, net:
Auction rate securities	$	—	$	—	$	5,759	$	5,759

Total	$	—	$	—	$	5,759	$	5,759

Total	$	132,469	$	387,458	$	5,759	$	525,686

	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

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 29, 2018 (in thousands):

	Cost		Fair Value

Due in one year or less	$	338,623	$	337,910
Due after one year through ten years		169,058		168,657
Due after ten years		19,360		19,119

	$	527,041	$	525,686

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 29, 2018	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Government debt securities	$	13,278	$	(10	)	$	88,696	$	(583	)	$	101,974	$	(593	)
Corporate debt securities		112,699		(273	)		76,310		(448	)		189,009		(721	)
Auction rate securities		—		—			5,759		(241	)		5,759		(241	)

	$	125,977	$	(283	)	$	170,765	$	(1,272	)	$	296,742	$	(1,555	)

	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	)

Summary of quantitative information about level 3 fair value measurements

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

Auction rate securities

Fair Value at December 29, 2018 (000s)	Valuation Technique	Unobservable Input	Weighted Average

$5,759	Discounted cash flow	Estimated yield	3.23%
		Expected holding period	10 years
		Estimated discount rate	3.76%

Summary of activity in Level 3 financial instruments

The following summarizes the activity in Level 3 financial instruments for the years ended December 29, 2018 and December 30, 2017 (in thousands):

Assets

	Year Ended

Auction Rate Securities	December 29, 2018		December 30, 2017
Beginning balance	$	5,681	$	5,196
Gain included in other comprehensive income (loss)		78		485

Ending balance	$	5,759	$	5,681

Liabilities

	Year Ended

Contingent Consideration (1)	December 30, 2017
Beginning balance	$	—
Issues		3,829
Reclassification to acquisition-related liabilities		(3,380	)
Gain recognized in selling, general and administrative expenses		(449	)

Ending balance	$	—

(1): In connection with the acquisition of Zentri, the Company recorded contingent consideration based on fiscal 2017 revenue from certain Zentri products.

Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 29, 2018

Derivative Financial Instruments

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 29, 2018		December 30, 2017			December 31, 2016			Location
Foreign currency forward contracts	$	105	$	(207	)	$	(92	)	Interest income and other, net

Balance Sheet Details (Tables)

12 Months Ended

Dec. 29, 2018

Balance Sheet Details

Schedule of Accounts Receivable, Net

	December 29, 2018			December 30, 2017

Accounts receivable	$	73,832		$	72,005
Allowance for doubtful accounts		(638	)		(638	)

	$	73,194		$	71,367

Schedule of Inventories

	December 29, 2018		December 30, 2017

Work in progress	$	50,983	$	46,698
Finished goods		23,989		26,434

	$	74,972	$	73,132

Schedule of Property and Equipment

	December 29, 2018			December 30, 2017

Buildings and improvements	$	109,025		$	96,196
Equipment		62,895			59,836
Computers and purchased software		42,487			37,598
Leasehold interest in ground leases		23,840			23,840
Leasehold improvements		12,006			10,483
Furniture and fixtures		7,794			5,691

		258,047			233,644
Accumulated depreciation		(118,998	)		(105,962	)

	$	139,049		$	127,682

Schedule of Other Current Liabilities

	December 29, 2018		December 30, 2017

Accrued compensation and benefits	$	37,113	$	33,631
Accrued price protection credits		12,033		8,239
Other		32,034		31,489

	$	81,180	$	73,359

Schedule of Other Non-current Liabilities

	December 29, 2018		December 30, 2017

Non-current tax liabilities	$	21,576	$	39,196
Other		35,872		38,666

	$	57,448	$	77,862

Risks and Uncertainties (Tables) - Customers

12 Months Ended

Dec. 29, 2018

Accounts receivable

Risks and Uncertainties

Schedule of concentration risk

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



Arrow Electronics	12	%	14	%
Edom Technology	10	%	*
Avnet	—		16	%

*: Less than 10% of accounts receivable

Revenue

Risks and Uncertainties

Schedule of concentration risk

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

	Year Ended

	December 29, 2018			December 30, 2017			December 31, 2016
Arrow Electronics		21	%		12	%		11	%
Edom Technology		17	%		19	%		17	%
Avnet		*			14	%		13	%

*: Less than 10% of revenue

Acquisitions (Tables) - Z-Wave

12 Months Ended

Dec. 29, 2018

Acquisitions

Schedule of purchase price allocation

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

	Amount			Weighted-Average Amortization Period (Years)

Intangible assets:
In-process research and development	$	20,900		Not amortized
Developed technology		69,875		7
Customer relationships		25,000		4
Trademarks		9,900		7

		125,675
Cash and cash equivalents		2,841
Accounts receivable		5,311
Inventory		15,581
Other current assets		329
Goodwill		109,117
Other non-current assets		2,587
Accounts payable		(3,306	)
Other current liabilities		(8,918	)
Other non-current liabilities		(6,648	)

Total purchase price	$	242,569

Schedule of pro forma results of operations

The pro forma results of operations are presented for informational purposes only and are not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place on January 1, 2017 or of results that may occur in the future (in thousands, except per share data):

	Year Ended

	December 29, 2018		December 30, 2017
	(Unaudited)
Revenues	$	882,109	$	824,009
Net income	$	87,874	$	27,958
Earnings per share:
Basic	$	2.04	$	0.66
Diluted	$	2.00	$	0.65

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 29, 2018

Goodwill and Other Intangible Assets

Summary of goodwill activity

The following summarizes the activity in goodwill for the years ended December 29, 2018 and December 30, 2017 (in thousands):

	Year Ended

	December 29, 2018		December 30, 2017
Beginning balance	$	288,227	$	276,130
Additions due to business combinations		109,117		12,097

Ending balance	$	397,344	$	288,227

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 29, 2018					December 30, 2017

	Weighted-Average Amortization Period (Years)	December 29, 2018					December 30, 2017
	Weighted-Average Amortization Period (Years)	Gross Amount		Accumulated Amortization			Gross Amount		Accumulated Amortization
Core and developed technology	8	$	237,265	$	(102,116	)	$	161,700	$	(89,442	)
Customer relationships	5		46,890		(21,075	)		25,470		(16,180	)
Patents	—		—		—			3,000		(2,750	)
Trademarks	7		12,310		(2,442	)		3,690		(2,344	)

Total	8	$	296,465	$	(125,633	)	$	193,860	$	(110,716	)

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

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

Fiscal Year

2019	$	39,222
2020		36,727
2021		32,337
2022		24,206
2023		18,286

Debt (Tables)

12 Months Ended

Dec. 29, 2018

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 29, 2018			December 30, 2017

Liability component
Principal	$	400,000		$	400,000
Unamortized debt discount		(39,298	)		(50,499	)
Unamortized debt issuance costs		(5,931	)		(7,622	)

Net carrying amount	$	354,771		$	341,879



Equity component
Net carrying amount	$	57,735		$	57,735

Schedule of components of interest expense

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

	Year Ended

	December 29, 2018		December 30, 2017
Contractual interest expense	$	5,500	$	4,492
Amortization of debt discount		11,202		8,816
Amortization of debt issuance costs		1,690		1,330

	$	18,392	$	14,638

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 29, 2018

Commitments and Contingencies

Schedule of minimum annual future rentals

The minimum annual future rentals under the terms of these leases as of December 29, 2018 are as follows (in thousands):

Fiscal Year

2019	$	5,287
2020		4,746
2021		4,051
2022		3,485
2023		2,810
Thereafter		3,842

Total minimum lease payments	$	24,221

Stockholders' Equity (Tables)

12 Months Ended

Dec. 29, 2018

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 2019	$	200,000	*
January 2017	December 2017	$	100,000
August 2015	December 2016	$	100,000

*: In October 2018, the Board of Directors increased the share repurchase amount for the October 2017 program from $100 million to $200 million and extended the termination date from December 2018 to December 2019.

Schedule of reclassifications out of accumulated other comprehensive loss

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

	Year ended

Reclassification	December 29, 2018			December 30, 2017			December 31, 2016
Losses on available-for-sales securities to:
Interest income and other, net	$	(49	)	$	—		$	—
Gains (losses) on cash flow hedges to:
Interest income and other, net		(316	)		—			—
Interest expense		—			1,808			(249	)

		(365	)		1,808			(249	)
Income tax (expense) benefit		77			(633	)		87

Total gains (losses) reclassified	$	(288	)	$	1,175		$	(162	)

Schedule of changes in the components of comprehensive income (loss), 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 29, 2018			December 30, 2017		December 31, 2016
Net changes to available-for-sale securities:
Unrealized gains (losses) arising during the period	$	(79	)	$	255	$	63
Reclassification for losses included in net income		(10	)		—		—
Net changes to cash flow hedges:
Unrealized gains (losses) arising during the period		200			—		(513	)
Reclassification for gains (losses) included in net income		(66	)		633		(87	)

	$	45		$	888	$	(537	)

Revenues (Tables)

12 Months Ended

Dec. 29, 2018

Revenues

Schedule of disaggregation of revenue by product category

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

	Year Ended

	December 29, 2018		December 30, 2017 (1)		December 31, 2016 (1)
Internet of Things	$	463,838	$	395,012	$	314,614
Infrastructure		199,478		152,158		147,677
Broadcast		141,412		152,980		157,746
Access		63,539		68,717		77,589

	$	868,267	$	768,867	$	697,626

(1): Under the modified retrospective method, prior period amounts have not been adjusted.

Schedule of disaggregation of revenue by sales channel

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

	Year Ended

	December 29, 2018		December 30, 2017 (1)		December 31, 2016 (1)
Distributors	$	618,989	$	547,419	$	471,622
Direct customers		249,278		221,448		226,004

	$	868,267	$	768,867	$	697,626

(1): Under the modified retrospective method, prior period amounts have not been adjusted.

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 29, 2018

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 29, 2018		December 30, 2017		December 31, 2016
Per grant of RSAs and RSUs	$	93.75	$	72.85	$	40.55
Per grant of PSUs and MSUs	$	97.53	$	78.40	$	32.23
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 29, 2018		December 30, 2017		December 31, 2016
Intrinsic value of stock options exercised	$	1,952	$	2,174	$	2,560
Intrinsic value of RSUs that vested	$	68,012	$	53,093	$	36,502
Grant date fair value of RSUs that vested	$	37,720	$	32,449	$	39,853
Intrinsic value of MSUs that vested	$	3,562	$	687	$	—
Grant date fair value of MSUs that vested	$	1,788	$	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 29, 2018		December 30, 2017		December 31, 2016
Cost of revenues	$	1,238	$	1,090	$	1,070
Research and development		23,867		21,771		19,573
Selling, general and administrative		24,972		21,891		18,985

		50,077		44,752		39,628
Income tax benefit		8,890		11,073		8,496

	$	41,187	$	33,679	$	31,132

Summary of shares reserved of common stock for future issuance

As of December 29, 2018, the Company had reserved shares of common stock for future issuance as follows (in thousands):


2009 Stock Incentive Plan			2,343
2009 Employee Stock Purchase Plan			985

Total shares reserved			3,328

Stock options

Summary of assumptions used to estimate fair values for stock options

	Year Ended

Stock Options	December 29, 2018		December 30, 2017		December 31, 2016
Expected volatility		—		—		32	%
Risk-free interest rate %		—		—		1.3	%
Expected term (in years)		—		—		5.4
Dividend yield		—		—		—

Summary of stock-based compensation activity, options

A summary of stock-based compensation activity with respect to fiscal 2018 follows:

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

Outstanding at December 30, 2017	170		$	38.88
Exercised	(33	)	$	36.45

Outstanding at December 29, 2018	137		$	39.47	7.1	$	5,327
Vested at December 29, 2018 and expected to vest	83		$	40.39	7.1	$	3,154
Exercisable at December 29, 2018	50		$	37.88	7.1	$	2,031

MSUs

Summary of assumptions used to estimate fair values for MSUs, Monte Carlo simulation

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

	Year Ended

MSUs	December 29, 2018			December 30, 2017			December 31, 2016
Expected volatility		29	%		31	%		30	%
Risk-free interest rate %		2.4	%		1.6	%		0.9	%
Expected term (in years)		2.9			2.9			2.9
Dividend yield		—			—			—

RSAs and RSUs

Summary of stock-based compensation activity, RSAs and RSUs

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

Outstanding at December 30, 2017	1,523		$	—
Granted	522		$	—
Vested or issued	(730	)	$	—
Cancelled or forfeited	(97	)	$	—

Outstanding at December 29, 2018	1,218		$	—	0.86	$	95,620
Outstanding at December 29, 2018 and expected to vest	1,147		$	—	0.86	$	90,008

PSUs and MSUs

Summary of stock-based compensation activity, PSUs and MSUs

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

Outstanding at December 30, 2017	259		$	—
Granted	81		$	—
Earned or issued	(37	)	$	—
Cancelled or forfeited	(21	)	$	—

Outstanding at December 29, 2018	282		$	—	1.1	$	22,164
Outstanding at December 29, 2018 and expected to vest	249		$	—	1.1	$	19,615

2009 Employee Stock Purchase Plan

Summary of assumptions used to estimate fair values for ESPP

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 29, 2018			December 30, 2017			December 31, 2016
Expected volatility		30	%		28	%		30	%
Risk-free interest rate %		2.4	%		1.1	%		0.6	%
Expected term (in months)		9			8			15
Dividend yield		—			—			—

Income Taxes (Tables)

12 Months Ended

Dec. 29, 2018

Income Taxes

Schedule of income before income taxes

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

	Year Ended

	December 29, 2018		December 30, 2017		December 31, 2016
Domestic	$	19,777	$	9,700	$	4,313
Foreign		52,384		67,203		60,183

	$	72,161	$	76,903	$	64,496

Schedule of provision (benefit) for income taxes

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

	Year Ended

	December 29, 2018			December 30, 2017			December 31, 2016
Current:
Domestic	$	(8,843	)	$	48,947		$	2,639
Foreign		5,888			7,077			4,421

Total Current		(2,955	)		56,024			7,060
Deferred:
Domestic		(8,978	)		(25,760	)		(2,430	)
Foreign		503			(453	)		(1,628	)

Total Deferred		(8,475	)		(26,213	)		(4,058	)

Provision (benefit) for income taxes	$	(11,430	)	$	29,811		$	3,002

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

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

	Year Ended

	December 29, 2018			December 30, 2017			December 31, 2016
Federal statutory rate		21.0	%		35.0	%		35.0	%
Foreign tax rate benefit		(12.9	)		(25.4	)		(22.6	)
Research and development tax credits		(9.8	)		(4.5	)		(4.1	)
GILTI and Subpart F income		4.3			1.4			1.4
Nondeductible (nontaxable) foreign expenses		3.9			1.1			(4.0	)
State tax expense		1.5			0.9			0.6
Release of prior year unrecognized tax benefits		(2.7	)		(0.6	)		(1.7	)
Excess officer compensation		2.4			1.5			1.4
Other tax effects of equity compensation		(0.4	)		(2.2	)		(1.5	)
Change in cost-sharing treatment of stock-based compensation		(2.2	)		5.2			(0.5	)
Excess tax benefit of stock-based compensation		(5.9	)		(5.6	)		—
Change in prior period valuation allowance		(2.5	)		(1.3	)		(0.6	)
Transition tax on unremitted foreign earnings		(8.4	)		70.8			—
Revaluation of deferred tax balances		0.3			28.2			—
Other deferred tax impacts of tax reform		(3.1	)		(64.8	)		—
Other		(1.3	)		(0.9	)		1.3

Effective Tax Rate		(15.8	)%		38.8	%		4.7	%

Schedule of significant components of deferred taxes

Significant components of the Company's deferred taxes as of December 29, 2018 and December 30, 2017 are as follows (in thousands):

	December 29, 2018			December 30, 2017

Deferred tax assets:
Net operating loss carryforwards	$	9,973		$	12,925
Research and development tax credit carryforwards		12,500			12,322
Stock-based compensation		4,360			5,256
Depreciation and amortization		7,799			—
Capitalized research and development		2,521			3,468
Deferred income on shipments to distributors		5,824			7,070
Expected future cost-sharing adjustment		25,257			21,582
Accrued liabilities and other		7,737			6,999

		75,971			69,622
Less: Valuation allowance		(4,975	)		(6,518	)

		70,996			63,104
Deferred tax liabilities:
Acquired intangible assets		20,656			13,884
Depreciation and amortization		4,604			1,274
Convertible debt		8,080			10,351
Prepaid expenses and other		2,142			1,421

		35,482			26,930

Net deferred tax assets	$	35,514		$	36,174

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 29, 2018			December 30, 2017			December 31, 2016
Beginning balance	$	3,187		$	3,054		$	3,610
Additions based on tax positions related to current year		630			456			439
Additions based on tax positions related to prior years		115			114			99
Reductions for tax positions as a result of a lapse of the applicable statute of limitations		(1,896	)		(437	)		(1,094	)

Ending balance	$	2,036		$	3,187		$	3,054

Segment Information (Tables)

12 Months Ended

Dec. 29, 2018

Segment Information

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 29, 2018		December 30, 2017		December 31, 2016
United States	$	149,385	$	112,574	$	94,583
China		344,255		307,748		291,974
Rest of world		374,627		348,545		311,069

Total	$	868,267	$	768,867	$	697,626

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 29, 2018		December 30, 2017

United States	$	128,622	$	119,746
Rest of world		10,427		7,936

Total	$	139,049	$	127,682

Significant Accounting Policies - Basis of Presentation and Principles of Consolidation (Details)	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Significant Accounting Policies
Length of fiscal year	364 days	364 days	364 days
Low end of range
Significant Accounting Policies
Length of fiscal year	364 days
High end of range
Significant Accounting Policies
Length of fiscal year	371 days

Significant Accounting Policies - Adoption of New Revenue Accounting Standard (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Dec. 31, 2017	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Consolidated Statements of Cash Flows
Accounts receivable, net		$ (3,931)	$ (3,234)	$ (46)
Prepaid expenses and other current assets		4,960	(25,266)	3,568
Deferred revenue and returns liability		(6,202)	4,453	9,713
Consolidated Statements of Income
Revenues		868,267	768,867	697,626
Cost of revenues		346,868	314,676	276,122
Net income		$ 83,591	$ 47,092	$ 61,494
Earnings per share:
Basic (in dollars per share)		$ 1.94	$ 1.11	$ 1.47
Diluted (in dollars per share)		$ 1.90	$ 1.09	$ 1.45
Consolidated Balance Sheet
Prepaid expenses and other current assets		$ 64,650	$ 39,120
Goodwill		397,344	288,227	$ 276,130
Other assets, net		90,491	88,387
Deferred revenue and returns liability		22,494
Deferred income on shipments to distributors			50,115
Other current liabilities		81,180	73,359
Retained earnings		961,343	$ 851,307
ASU 2014-09 - Revenue from Contracts with Customers
Consolidated Statements of Cash Flows
Accounts receivable, net	$ 230
Prepaid expenses and other current assets	7,579
Other assets, net	(2,282)
Deferred revenue and returns liability	27,806
Deferred income on shipments to distributors	(50,115)
Other current liabilities	1,641
Retained earnings	26,195
Consolidated Statements of Income
Revenues		12,943
Cost of revenues		4,234
Net income		$ 6,610
Earnings per share:
Basic (in dollars per share)		$ 0.15
Diluted (in dollars per share)		$ 0.15
Consolidated Balance Sheet
Prepaid expenses and other current assets		$ 5,953
Goodwill		(2,842)
Other assets, net		(4,464)
Deferred revenue and returns liability		22,494
Deferred income on shipments to distributors		(60,789)
Other current liabilities		4,282
Retained earnings	$ 26,200	$ 32,805

Significant Accounting Policies - Property and Equipment and Long Lived Assets (Details)	12 Months Ended
	Dec. 29, 2018
Low end of range
Property and Equipment
Useful life	3 years
Long-Lived Assets
Useful life of purchased intangible assets	3 years
High end of range
Property and Equipment
Useful life	10 years
Long-Lived Assets
Useful life of purchased intangible assets	12 years
Buildings
Property and Equipment
Useful life	40 years
Leasehold interest in ground leases
Property and Equipment
Useful life	86 years

Significant Accounting Policies - Revenue Recognition and Advertising Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Revenue Recognition, Performance Obligations
Product replacement warranty	1 year
Advertising
Advertising expenses	$ 1.9	$ 1.4	$ 1.6

Significant Accounting Policies - Recent Accounting Pronouncements (Details) - Forecast - ASU 2016-02 - Leases $ in Millions	Dec. 30, 2018 USD ($)
Recent Accounting Pronouncements
Adjustment to right-of-use assets	$ 20.8
Adjustment to operating lease liabilities	$ 20.8

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Earnings Per Share
Net income	$ 83,591	$ 47,092	$ 61,494
Shares used in computing basic earnings per share (in shares)	43,159	42,446	41,713
Effect of dilutive securities:
Stock-based awards	885	886	663
Shares used in computing diluted earnings per share (in shares)	44,044	43,332	42,376
Earnings per share:
Basic (in dollars per share)	$ 1.94	$ 1.11	$ 1.47
Diluted (in dollars per share)	$ 1.90	$ 1.09	$ 1.45
Convertible Senior Notes
Earnings per share:
Shares excluded from computation of diluted earning per share	100	0

Fair Value of Financial Instruments - Summary of financial instruments (Details) - USD ($) $ in Thousands	Dec. 29, 2018	Dec. 30, 2017
Financial assets and liabilities measured at fair value on a recurring basis
Total short-term investments	$ 416,779	$ 494,657
Recurring
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	103,148	172,346
Total short-term investments	416,779	494,657
Other assets, net	5,759	5,681
Total assets at fair value	525,686	672,684
Recurring \| Money market funds
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	74,990	106,047
Recurring \| Corporate debt securities
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	18,820	11,231
Total short-term investments	269,427	171,835
Recurring \| Government debt securities
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	9,338	55,068
Total short-term investments	147,352	322,822
Recurring \| Auction rate securities
Financial assets and liabilities measured at fair value on a recurring basis
Other assets, net	5,759	5,681
Recurring \| 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	84,328	159,662
Total short-term investments	48,141	94,575
Total assets at fair value	132,469	254,237
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Money market funds
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	74,990	106,047
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Government debt securities
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	9,338	53,615
Total short-term investments	48,141	94,575
Recurring \| Significant Other Observable Inputs (Level 2)
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	18,820	12,684
Total short-term investments	368,638	400,082
Total assets at fair value	387,458	412,766
Recurring \| Significant Other Observable Inputs (Level 2) \| Corporate debt securities
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	18,820	11,231
Total short-term investments	269,427	171,835
Recurring \| 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
Total short-term investments	99,211	228,247
Recurring \| Significant Unobservable Inputs (Level 3)
Financial assets and liabilities measured at fair value on a recurring basis
Other assets, net	5,759	5,681
Total assets at fair value	5,759	5,681
Recurring \| Significant Unobservable Inputs (Level 3) \| Auction rate securities
Financial assets and liabilities measured at fair value on a recurring basis
Other assets, net	$ 5,759	$ 5,681

Fair Value of Financial Instruments - Available-for-sale investments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017
Cost
Due in one year or less, Cost	$ 338,623
Due after one year through ten years, Cost	169,058
Due after ten years, Cost	19,360
Total Cost	527,041
Fair Value
Due in one year or less, Fair Value	337,910
Due after one year through ten years, Fair Value	168,657
Due after ten years, Fair Value	19,119
Total Fair Value	525,686
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months	125,977	$ 396,029
Fair value of available-for-sale securities, continuous loss position for twelve months or greater	170,765	20,286
Total fair value of available-for-sale securities, continuous loss position	296,742	416,315
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses	(283)	(1,378)
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses	(1,272)	(407)
Available-for-sale securities, total gross unrealized losses	(1,555)	(1,785)
Other than temporary impairment losses
Other-than-temporary impairment losses	0
Government debt securities
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months	13,278	244,880
Fair value of available-for-sale securities, continuous loss position for twelve months or greater	88,696	3,027
Total fair value of available-for-sale securities, continuous loss position	101,974	247,907
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses	(10)	(931)
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses	(583)	(15)
Available-for-sale securities, total gross unrealized losses	(593)	(946)
Corporate debt securities
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months	112,699	151,149
Fair value of available-for-sale securities, continuous loss position for twelve months or greater	76,310	11,578
Total fair value of available-for-sale securities, continuous loss position	189,009	162,727
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses	(273)	(447)
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses	(448)	(73)
Available-for-sale securities, total gross unrealized losses	(721)	(520)
Auction rate securities
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for twelve months or greater	5,759	5,681
Total fair value of available-for-sale securities, continuous loss position	5,759	5,681
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses	(241)	(319)
Available-for-sale securities, total gross unrealized losses	$ (241)	$ (319)

Fair Value of Financial Instruments - Auction rate securities (Details) - Auction rate securities - Significant Unobservable Inputs (Level 3) $ in Thousands	Dec. 29, 2018 USD ($) Y item	Dec. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)
Weighted Average \| Estimated yield \| Discounted cash flow
Quantitative information for Level 3 Fair Value Measurements Assets
Unobservable Input	3.23
Weighted Average \| Expected holding period \| Discounted cash flow
Quantitative information for Level 3 Fair Value Measurements Assets
Unobservable Input \| Y	10
Weighted Average \| Estimated discount rate \| Discounted cash flow
Quantitative information for Level 3 Fair Value Measurements Assets
Unobservable Input	3.76
Recurring
Quantitative information for Level 3 Fair Value Measurements Assets
Fair value balance at the end of the period \| $	$ 5,759	$ 5,681	$ 5,196

Fair Value of Financial Instruments - Activity in Level 3 financial instruments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017
Recurring \| Significant Unobservable Inputs (Level 3) \| Auction rate securities
Fair value assets reconciliation of changes
Balance at the beginning of the period	$ 5,681	$ 5,196
Gain included in other comprehensive income (loss)	78	485
Balance at the end of the period	5,759	5,681
Recurring \| Significant Unobservable Inputs (Level 3) \| Contingent Consideration
Fair value liabilities reconciliation of changes
Balance at the beginning of the period	0	0
Issues		3,829
Reclassification to acquisition-related liabilities		(3,380)
Gain recognized in selling, general and administrative expenses		449
Balance at the end of the period		0
Convertible Senior Notes
Fair value liabilities reconciliation of changes
Fair value of debt	$ 419,000	$ 466,200

Derivative Financial Instruments (Details) $ in Thousands		12 Months Ended
Derivative Financial Instruments (Details) $ in Thousands	Dec. 29, 2018 USD ($)	Dec. 29, 2018 USD ($)	Dec. 30, 2017 USD ($) contract	Dec. 31, 2016 USD ($)	Jul. 31, 2016 USD ($)
Derivative Financial Instruments
Reclassification of unrealized gains included in net income		$ (316)	$ 1,808	$ (249)
Non-designated Hedges \| Foreign currency forward contracts
Derivative Financial Instruments
Notional value			$ 2,400
Number of foreign currency forward contract held \| contract			1
Non-designated Hedges \| Foreign currency forward contracts \| Interest income and other, net
Derivative Financial Instruments
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)		105	$ (207)	$ (92)
Cash flow hedges \| Interest rate swaps
Derivative Financial Instruments
Notional value					$ 72,500
Reclassification of unrealized gains included in net income			$ 1,800
Cash flow hedges \| Foreign currency forward contracts
Derivative Financial Instruments
Notional value	$ 8,800	$ 8,800
Cash flow hedges \| Low end of range \| Foreign currency forward contracts
Derivative Financial Instruments
Maturity of contracts	1 month
Cash flow hedges \| High end of range \| Foreign currency forward contracts
Derivative Financial Instruments
Maturity of contracts	12 months

Balance Sheet Details (Details) - USD ($) $ in Thousands	Dec. 29, 2018	Dec. 30, 2017
Accounts Receivable, Net
Accounts receivable	$ 73,832	$ 72,005
Allowance for doubtful accounts	(638)	(638)
Accounts Receivable, Net	73,194	71,367
Inventories
Work in progress	50,983	46,698
Finished goods	23,989	26,434
Inventories	74,972	73,132
Property and Equipment
Property and equipment, gross	258,047	233,644
Accumulated depreciation	(118,998)	(105,962)
Total Property and Equipment, net	139,049	127,682
Other Current Liabilities
Accrued compensation and benefits	37,113	33,631
Accrued price protection credits	12,033	8,239
Other	32,034	31,489
Total Other Current Liabilities	81,180	73,359
Other Non-current Liabilities
Non-current tax liabilities	21,576	39,196
Other	35,872	38,666
Total Other Non-current Liabilities	57,448	77,862
Buildings and improvements
Property and Equipment
Property and equipment, gross	109,025	96,196
Equipment
Property and Equipment
Property and equipment, gross	62,895	59,836
Computers and purchased software
Property and Equipment
Property and equipment, gross	42,487	37,598
Leasehold interest in ground leases
Property and Equipment
Property and equipment, gross	23,840	23,840
Leasehold improvements
Property and Equipment
Property and equipment, gross	12,006	10,483
Furniture and fixtures
Property and Equipment
Property and equipment, gross	$ 7,794	$ 5,691

Risks and Uncertainties (Details) $ in Millions	12 Months Ended
Risks and Uncertainties (Details) $ in Millions	Dec. 29, 2018 USD ($) company item	Dec. 30, 2017	Dec. 31, 2016
Risks and Uncertainties
Number of notes receivable \| item	3
Number of privately held companies \| company	2
Notes receivable carrying value	$ 2.4
Number of equity investments \| item	2
Interest rate on unsettled balances due upon demand (as a percent)	0.00%
Equity investment, one
Risks and Uncertainties
Equity method investments	$ 4.1
Equity investment, two
Risks and Uncertainties
Equity method investments	2.0
Impairment equity investments	$ 1.8
Accounts receivable \| Customers \| Arrow Electronics
Risks and Uncertainties
Concentrations of credit risk (as a percent)	12.00%	14.00%
Accounts receivable \| Customers \| Edom Technology
Risks and Uncertainties
Concentrations of credit risk (as a percent)	10.00%
Accounts receivable \| Customers \| Edom Technology \| High end of range
Risks and Uncertainties
Concentrations of credit risk (as a percent)		10.00%
Accounts receivable \| Customers \| Avnet
Risks and Uncertainties
Concentrations of credit risk (as a percent)		16.00%
Revenue \| Arrow Electronics
Risks and Uncertainties
Concentrations of credit risk (as a percent)	21.00%	12.00%	11.00%
Revenue \| Edom Technology
Risks and Uncertainties
Concentrations of credit risk (as a percent)	17.00%	19.00%	17.00%
Revenue \| Avnet
Risks and Uncertainties
Concentrations of credit risk (as a percent)		14.00%	13.00%

Acquisitions - Z-Wave (Details) - USD ($) $ / shares in Units, $ in Thousands		8 Months Ended	12 Months Ended
	Apr. 18, 2018	Dec. 29, 2018	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Purchase price allocation
Weighted-Average Amortization Period (Years)			8 years	8 years
Goodwill		$ 397,344	$ 397,344	$ 288,227	$ 276,130
Revenues			868,267	768,867	$ 697,626
Pro forma financial information
Revenues			882,109	824,009
Net income			$ 87,874	$ 27,958
Earnings per share, Basic			$ 2.04	$ 0.66
Earnings per share, Diluted			$ 2.00	$ 0.65
Customer relationships
Purchase price allocation
Weighted-Average Amortization Period (Years)			5 years	5 years
Trademarks
Purchase price allocation
Weighted-Average Amortization Period (Years)			7 years	7 years
Z-Wave
Acquisitions
Cash consideration	$ 243,000
Purchase price allocation
Intangible assets	125,675
Cash and cash equivalents	2,841
Accounts receivable	5,311
Inventory	15,581
Other current assets	329
Goodwill	109,117
Other non-current assets	2,587
Accounts payable	(3,306)
Other current liabilities	(8,918)
Other non-current liabilities	(6,648)
Total purchase price	$ 242,569
Discount rate applicable to the projected cash flows (as a percent)	15.00%
Revenues		37,000
Z-Wave \| Selling, general and administrative
Purchase price allocation
Acquisition-related costs		$ 4,900
Z-Wave \| Developed technology
Purchase price allocation
Intangible assets	$ 69,875
Weighted-Average Amortization Period (Years)	7 years
Z-Wave \| Customer relationships
Purchase price allocation
Intangible assets	$ 25,000
Weighted-Average Amortization Period (Years)	4 years
Z-Wave \| Trademarks
Purchase price allocation
Intangible assets	$ 9,900
Weighted-Average Amortization Period (Years)	7 years
Z-Wave \| In-process research and development
Purchase price allocation
Intangible assets	$ 20,900

Acquisitions - Zentri (Details) - USD ($) $ in Thousands	Jan. 20, 2017	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Purchase price allocation
Goodwill		$ 397,344	$ 288,227	$ 276,130
Zentri
Acquisitions
Purchase price of acquisition	$ 18,100
Cash consideration	14,300
Potential additional consideration with estimated fair value	3,800
Purchase price allocation
Intangible assets	6,700
Goodwill	12,100
Other net liabilities	$ 700

Acquisitions - Micrium (Details) - USD ($) $ in Thousands	Oct. 03, 2016	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Purchase price allocation
Goodwill		$ 397,344	$ 288,227	$ 276,130
Micrium
Acquisitions
Purchase price of acquisition	$ 12,400
Cash consideration	8,200
Stock consideration	4,200
Additional stock consideration based on economic substance	$ 1,000
Post-combination compensation expense recognition period (in years)	4 years
Purchase price allocation
Intangible assets	$ 9,500
Goodwill	3,400
Other net liabilities	$ 500

Acquisitions - Energy Micro (Details) - Energy Micro $ in Millions	Jul. 01, 2013 USD ($)
Acquisitions
Total settlement amount	$ 16.0
Potential maximum contingent consideration that could be paid	$ 26.7

Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands		12 Months Ended
	Apr. 18, 2018	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Goodwill
Goodwill, Beginning Balance		$ 288,227	$ 276,130
Additions due to business combinations		109,117	12,097
Goodwill, Ending Balance		$ 397,344	$ 288,227	$ 276,130
Other Intangible Assets
Weighted-Average Amortization Period (Years)		8 years	8 years
Intangible assets subject to amortization, Gross Amount		$ 296,465	$ 193,860
Intangible assets subject to amortization, Accumulated Amortization		(125,633)	(110,716)
Amortization expense related to intangible assets		38,000	$ 27,100	$ 27,300
Estimated aggregate amortization expense for intangible assets subject to amortization for each of the five succeeding fiscal years
2019		39,222
2020		36,727
2021		32,337
2022		24,206
2023		$ 18,286
Core and developed technology
Other Intangible Assets
Weighted-Average Amortization Period (Years)		8 years	8 years
Intangible assets subject to amortization, Gross Amount		$ 237,265	$ 161,700
Intangible assets subject to amortization, Accumulated Amortization		$ (102,116)	$ (89,442)
Customer relationships
Other Intangible Assets
Weighted-Average Amortization Period (Years)		5 years	5 years
Intangible assets subject to amortization, Gross Amount		$ 46,890	$ 25,470
Intangible assets subject to amortization, Accumulated Amortization		$ (21,075)	(16,180)
Patents
Other Intangible Assets
Intangible assets subject to amortization, Gross Amount			3,000
Intangible assets subject to amortization, Accumulated Amortization			$ (2,750)
Trademarks
Other Intangible Assets
Weighted-Average Amortization Period (Years)		7 years	7 years
Intangible assets subject to amortization, Gross Amount		$ 12,310	$ 3,690
Intangible assets subject to amortization, Accumulated Amortization		(2,442)	$ (2,344)
Z-Wave
Goodwill
Goodwill, Ending Balance	$ 109,117
Other Intangible Assets
Gross intangible assets acquired		125,700
Removal of fully amortized intangible assets		$ 23,100
Z-Wave \| Customer relationships
Other Intangible Assets
Weighted-Average Amortization Period (Years)	4 years
Z-Wave \| Trademarks
Other Intangible Assets
Weighted-Average Amortization Period (Years)	7 years

Debt - Convertible Senior Notes (Details) $ / shares in Units, $ in Thousands, shares in Millions		12 Months Ended
	Mar. 06, 2017 USD ($) item $ / shares shares	Dec. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)
Debt
Repayments of Lines of Credit		$ 72,500	$ 5,000
Credit Facility
Debt
Repayments of Lines of Credit	$ 72,500
1.375% Convertible Senior Notes
Debt
Principal amount	$ 400,000
Semi-annual interest rate	1.375%
Conversion rate, shares per $1,000 principal	10.7744
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 issuance costs	$ 10,600

Debt - Carrying amount and interest expense of notes (Details) - 1.375% Convertible Senior Notes - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017
Liability component
Principal	$ 400,000	$ 400,000
Unamortized debt discount	(39,298)	(50,499)
Unamortized debt issuance costs	(5,931)	(7,622)
Net carrying amount	354,771	341,879
Equity component
Net carrying amount	$ 57,735	57,735
Effective interest rate	4.75%
Amortization period of debt discount and debt issuance costs	3 years 2 months 12 days
Interest expense related to the Notes
Contractual interest expense	$ 5,500	4,492
Amortization of debt discount	11,202	8,816
Amortization of debt issuance costs	1,690	1,330
Interest Expense, Total	$ 18,392	$ 14,638

Debt - Credit Facility (Details) $ in Thousands		12 Months Ended
Debt - Credit Facility (Details) $ in Thousands	Mar. 06, 2017 USD ($)	Dec. 29, 2018 USD ($)	Dec. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)
Debt
Repayment of credit facility amount			$ 72,500	$ 5,000
Credit Facility
Debt
Repayment of credit facility amount	$ 72,500
Maximum leverage ratio		3.00
Minimum fixed charge coverage ratio		1.25
Revolving Credit Facility
Debt
Maximum borrowing capacity		$ 300,000
Additional increase in borrowing capacity of the line of credit available at the entity's option		$ 200,000
Revolving Credit Facility \| Base Rate \| Low end of range
Debt
Interest rate margin (as a percent)		0.25%
Revolving Credit Facility \| Base Rate \| High end of range
Debt
Interest rate margin (as a percent)		1.00%
Revolving credit facility, other than swingline loans \| Federal Funds
Debt
Interest rate margin (as a percent)		0.50%
Revolving credit facility, other than swingline loans \| Eurodollar Base Rate
Debt
Interest rate margin (as a percent)		1.00%
Revolving credit facility, other than swingline loans \| Eurodollar Base Rate \| Low end of range
Debt
Interest rate margin (as a percent)		1.25%
Revolving credit facility, other than swingline loans \| Eurodollar Base Rate \| High end of range
Debt
Interest rate margin (as a percent)		2.00%
Swingline Loans
Debt
Maximum borrowing capacity		$ 10,000
Letter of Credit
Debt
Maximum borrowing capacity		$ 25,000

Commitments and Contingencies (Details) $ in Thousands					12 Months Ended
Commitments and Contingencies (Details) $ in Thousands	Sep. 17, 2018 USD ($)	Jun. 21, 2018 patent	Jul. 16, 2014 patent	Jan. 28, 2014 patent	Dec. 29, 2018 USD ($)	Dec. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)
Operating Leases
Rent expense under operating leases					$ 6,000	$ 5,500	$ 4,700
Minimum annual future rentals
2019					5,287
2020					4,746
2021					4,051
2022					3,485
2023					2,810
Thereafter					3,842
Total minimum lease payments					24,221
Investment Commitment
Investment Funded					4,300
Patent Litigation
Payment for settlement of litigation	$ 0
High end of range
Investment Commitment
Commitment to invest in limited partnership					$ 10,000
Cresta Technology
Patent Litigation
Number of patents allegedly infringed \| patent			6	3
Bandspeed
Patent Litigation
Number of patents allegedly infringed \| patent		8

Stockholders' Equity - Share repurchase programs (Details) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 31, 2016	Oct. 31, 2018	Jul. 01, 2017
Share Repurchase Programs
Value of shares repurchased and retired	$ 39,276	$ 40,543
Common Stock
Common Stock
Number of shares issued during the period	800
Share Repurchase Programs
Number of shares repurchased and retired	434	893
Value of shares repurchased and retired	$ 39,300	$ 40,500
Program Authorization Date October 2017
Share Repurchase Programs
Program amount authorized to repurchase	200,000		$ 200,000	$ 100,000
Program Authorization Date January 2017
Share Repurchase Programs
Program amount authorized to repurchase	100,000
Program Authorization Date August 2015
Share Repurchase Programs
Program amount authorized to repurchase	$ 100,000

Stockholders' Equity - Reclassifications from AOCI (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Amounts Reclassified from AOCI
Income (loss) before income taxes	$ 72,161	$ 76,903	$ 64,496
Income tax (expense) benefit	11,430	(29,811)	(3,002)
Net income	83,591	47,092	61,494
Net changes to available-for-sale securities:
Unrealized gains (losses) arising during the period	(79)	255	63
Reclassification for losses included in net income	(10)
Net changes to cash flow hedges
Unrealized gains (losses) arising during the period	200		(513)
Reclassification for gains (losses) included in net income	(66)	633	(87)
Other comprehensive income	45	888	(537)
Reclassifications From Accumulated Other Comprehensive Loss
Amounts Reclassified from AOCI
Income (loss) before income taxes	(365)	1,808	(249)
Income tax (expense) benefit	77	(633)	87
Net income	(288)	1,175	(162)
Reclassifications From Accumulated Other Comprehensive Loss \| Losses on available-for-sales securities
Amounts Reclassified from AOCI
Interest income and other, net	(49)
Reclassifications From Accumulated Other Comprehensive Loss \| Gains (losses) on cash flow hedges
Amounts Reclassified from AOCI
Interest income and other, net	$ (316)
Interest expense		$ 1,808	$ (249)

Revenues (Details) - USD ($) $ in Thousands	12 Months Ended
Revenues (Details) - USD ($) $ in Thousands	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Revenues
Revenues	$ 868,267	$ 768,867	$ 697,626
Revenue from performance obligations	24,300
Distributors
Revenues
Revenues	618,989	547,419	471,622
Direct customers
Revenues
Revenues	249,278	221,448	226,004
Internet of Things
Revenues
Revenues	463,838	395,012	314,614
Infrastructure
Revenues
Revenues	199,478	152,158	147,677
Broadcast
Revenues
Revenues	141,412	152,980	157,746
Access
Revenues
Revenues	$ 63,539	$ 68,717	$ 77,589

Stock-Based Compensation - Stock Incentive Plans (Details)	12 Months Ended
	Dec. 29, 2018 shares
2009 Stock Incentive Plan
Stock-Based Compensation
Number of shares deducted for each share granted	1
2009 Stock Incentive Plan \| Low end of range
Stock-Based Compensation
Award vesting period	3 years
2009 Stock Incentive Plan \| High end of range
Stock-Based Compensation
Award vesting period	4 years
2009 Stock Incentive Plan \| Stock options
Stock-Based Compensation
Minimum exercise price as percentage of fair market value of shares on the date of grant	100.00%
2000 Stock Incentive Plan \| Low end of range
Stock-Based Compensation
Award vesting period	3 years
2000 Stock Incentive Plan \| High end of range
Stock-Based Compensation
Award vesting period	8 years
2000 Stock Incentive Plan \| Stock options \| High end of range
Stock-Based Compensation
Term of award	10 years

Stock-Based Compensation - Stock Grants and Modifications (Details) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 29, 2018 USD ($) shares	Dec. 30, 2017 shares	Dec. 31, 2016 USD ($) employee shares
Stock-Based Compensation
SG&A expense related to modifications to equity awards \| $			$ 900
Number of employee terminated \| employee			3
2009 Stock Incentive Plan \| Full value awards
Stock-Based Compensation
Number of equity awards granted	600	700	1,300
2009 Stock Incentive Plan \| Stock options
Stock-Based Compensation
Stock options granted (in shares)	0	0	200
2009 Stock Incentive Plan \| MSUs
Stock-Based Compensation
Number of equity awards granted	41	54	65
Cash consideration based upon achievement of specified levels of market conditions \| $	$ 0
Award vesting period	3 years
2009 Stock Incentive Plan \| PSUs
Stock-Based Compensation
Number of equity awards granted	41	54	65
Cash consideration based upon achievement of specified levels of market conditions \| $	$ 0
Award vesting period	3 years

Stock-Based Compensation - 2009 Employee Stock Purchase Plan (Details) - 2009 Employee Stock Purchase Plan - $ / shares shares in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Stock-Based Compensation
Minimum exercise price as percentage of fair market value of shares on the date of grant	85.00%
Term of award	24 months	24 months	24 months
Shares issued	223	239	224
Weighted average fair value for purchase rights granted (in dollars per share)	$ 22.59

Stock-Based Compensation - Fair Value Assumptions (Details)	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Fair value assumptions
Dividend yield (as a percent)	0.00%	0.00%	0.00%
Stock options
Fair value assumptions
Expected volatility (as a percent)			32.00%
Risk-free interest rate %			1.30%
Expected term (in years)			5 years 4 months 24 days
MSUs
Fair value assumptions
Expected volatility (as a percent)	29.00%	31.00%	30.00%
Risk-free interest rate %	2.40%	1.60%	0.90%
Expected term (in years)	2 years 10 months 24 days	2 years 10 months 24 days	2 years 10 months 24 days
2009 Employee Stock Purchase Plan
Fair value assumptions
Expected volatility (as a percent)	30.00%	28.00%	30.00%
Risk-free interest rate %	2.40%	1.10%	0.60%
Expected term (in years)	9 months	8 months	15 months

Stock-Based Compensation - Stock options activity (Details) - Stock options $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 29, 2018 USD ($) $ / shares shares
Number of options
Outstanding at the beginning of the year (in shares) \| shares	170
Exercised (in shares) \| shares	(33)
Outstanding at the end of the year (in shares) \| shares	137
Vested and expected to vest at the end of the year (in shares) \| shares	83
Exercisable at the end of the year (in shares) \| shares	50
Weighted-Average Exercise Price
Outstanding at the beginning of the year (in dollars per share) \| $ / shares	$ 38.88
Exercised (in dollars per share) \| $ / shares	36.45
Outstanding at the end of the year (in dollars per share) \| $ / shares	39.47
Vested and expected to vest at the end of the year (in dollars per share) \| $ / shares	40.39
Exercisable at the end of the year (in dollars per share) \| $ / shares	$ 37.88
Weighted-Average Remaining Contractual Term (In years)
Outstanding at the end of the year	7 years 1 month 6 days
Vested and expected to vest at the end of the year	7 years 1 month 6 days
Exercisable at the end of the year	7 years 1 month 6 days
Aggregate Intrinsic Value
Outstanding at the end of the year (in dollars) \| $	$ 5,327
Vested and expected to vest at the end of the year (in dollars) \| $	3,154
Options exercisable at the end of the year (in dollars) \| $	$ 2,031

Stock-Based Compensation - RSAs and RSUs, PSUs and MSUs activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
RSAs and RSUs
Number of equity awards
Outstanding at the beginning the of year (in shares)	1,523
Granted (in shares)	522
Vested, earned or issued (in shares)	(730)
Cancelled or forfeited (in shares)	(97)
Outstanding at the end of the year (in shares)	1,218	1,523
Outstanding at the end of the year and expected to vest (in shares)	1,147
Weighted-Average Purchase Price
Granted (in dollars per share)	$ 93.75	$ 72.85	$ 40.55
Weighted-Average Remaining Vesting Term
Outstanding at the end of year	10 months 10 days
Outstanding at the end of year and expected to vest	10 months 10 days
Aggregate Intrinsic Value
Outstanding at the end of the year (in dollars)	$ 95,620
Outstanding at the end of the year and expected to vest (in dollars)	$ 90,008
PSUs and MSUs
Number of equity awards
Outstanding at the beginning the of year (in shares)	259
Granted (in shares)	81
Vested, earned or issued (in shares)	(37)
Cancelled or forfeited (in shares)	(21)
Outstanding at the end of the year (in shares)	282	259
Outstanding at the end of the year and expected to vest (in shares)	249
Weighted-Average Purchase Price
Granted (in dollars per share)	$ 97.53	$ 78.40	$ 32.23
Weighted-Average Remaining Vesting Term
Outstanding at the end of year	1 year 1 month 6 days
Outstanding at the end of year and expected to vest	1 year 1 month 6 days
Aggregate Intrinsic Value
Outstanding at the end of the year (in dollars)	$ 22,164
Outstanding at the end of the year and expected to vest (in dollars)	$ 19,615

Stock-Based Compensation - Grant Date Weighted Average Fair Value (Details) - $ / shares	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
RSAs and RSUs
Stock-Based Compensation
Equity award, weighted average fair value at grant date	$ 93.75	$ 72.85	$ 40.55
PSUs and MSUs
Stock-Based Compensation
Equity award, weighted average fair value at grant date	$ 97.53	$ 78.40	32.23
Stock options
Stock-Based Compensation
Options, weighted average fair value at grant date			$ 40.38

Stock-Based Compensation - Stock-based payment and stock option values (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Stock-based payment and stock option values
Cash received for the issuance of common stock, net of shares withheld for taxes	$ 13,300
Payment for shares withheld for taxes	19,483	$ 15,753	$ 10,561
Stock options
Stock-based payment and stock option values
Intrinsic value of options exercised	1,952	2,174	2,560
RSUs
Stock-based payment and stock option values
Intrinsic value of equity awards that vested	68,012	53,093	36,502
Grant date fair value of equity awards that vested	37,720	32,449	$ 39,853
MSUs
Stock-based payment and stock option values
Intrinsic value of equity awards that vested	3,562	687
Grant date fair value of equity awards that vested	$ 1,788	$ 633

Stock-Based Compensation - Stock-based compensation costs (Details) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Stock-Based Compensation
Stock-based compensation cost	$ 50,077	$ 44,752	$ 39,628
Income tax benefit	8,890	11,073	8,496
Share based compensation costs after tax	41,187	33,679	31,132
Total unrecognized compensation costs related to awards	$ 65,400
Weighted-average period of recognition of unrecognized compensation costs	1 year 10 months 24 days
Reserved shares of common stock for future issuance	3,328
2009 Stock Incentive Plan
Stock-Based Compensation
Reserved shares of common stock for future issuance	2,343
2009 Employee Stock Purchase Plan
Stock-Based Compensation
Reserved shares of common stock for future issuance	985
Cost of revenues
Stock-Based Compensation
Stock-based compensation cost	$ 1,238	1,090	1,070
Research and development
Stock-Based Compensation
Stock-based compensation cost	23,867	21,771	19,573
Selling, general and administrative
Stock-Based Compensation
Stock-based compensation cost	$ 24,972	$ 21,891	$ 18,985

Employee Benefit Plan (Details) - USD ($) $ in Millions	12 Months Ended
Employee Benefit Plan (Details) - USD ($) $ in Millions	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Employee Benefit Plan
Contribution made to the 401 (k) Plan	$ 3.7	$ 3.5	$ 3.4

Related Party Transactions (Details) - Energy Micro - USD ($) $ in Millions	Jul. 01, 2013	Dec. 31, 2016
Related Party Transaction
Contingent consideration	$ 26.7
Mr. Forre
Related Party Transaction
Beneficial ownership percentage	30.00%
Contingent consideration		$ 4.8
Mr. Bogen
Related Party Transaction
Beneficial ownership percentage	2.00%
Cash consideration	$ 0.3

Income Taxes - Summary (Details) $ in Millions	12 Months Ended
Income Taxes - Summary (Details) $ in Millions	Dec. 29, 2018 USD ($)	Dec. 30, 2017 USD ($)	Dec. 31, 2016
Income Taxes
Federal statutory rate (as a percent)	21.00%	35.00%	35.00%
Decrease in effective tax rate due to changes in provisional amount	(6.2)
Benefit to the provisional amounts recorded at December 30, 2017	$ (4.5)
Transition tax cost		$ 54.4
Total provisional transaction tax liability		42.6
Decrease in provisional amount related to transition tax recorded at December 30, 2017	$ (6.1)
Period for payment of transition tax	8 years
Unpaid balance of its transition tax obligation payable between April 2022 and April 2025	$ 21.6
Net provisional benefit on remeasurement of certain deferred tax assets and liabilities		(28.1)
Increase in deferred tax expense due to revaluation of net deferred tax asset		21.8
Reduction in provisional tax benefit	$ 1.0
Altera decision
Income Taxes
Reversal of deferred tax liability		39.4
Reduction in deferred tax benefit due to reduction of corresponding deferred tax liability		$ 10.5

Income Taxes - Income before income taxes and Provision (benefit) for income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Income before income taxes
Domestic	$ 19,777	$ 9,700	$ 4,313
Foreign	52,384	67,203	60,183
Income before income taxes	72,161	76,903	64,496
Current:
Domestic	(8,843)	48,947	2,639
Foreign	5,888	7,077	4,421
Total Current	(2,955)	56,024	7,060
Deferred:
Domestic	(8,978)	(25,760)	(2,430)
Foreign	503	(453)	(1,628)
Total Deferred	(8,475)	(26,213)	(4,058)
Provision (benefit) for income taxes	$ (11,430)	$ 29,811	$ 3,002

Income Taxes - Tax rate reconciliation (Details)	12 Months Ended
Income Taxes - Tax rate reconciliation (Details)	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Reconciliation of federal statutory tax rate to effective tax rate
Federal statutory rate (as a percent)	21.00%	35.00%	35.00%
Foreign tax rate benefit (as a percent)	(12.90%)	(25.40%)	(22.60%)
Research and development tax credits (as a percent)	(9.80%)	(4.50%)	(4.10%)
GILTI and Subpart F income	4.30%	1.40%	1.40%
Nondeductible (nontaxable) foreign expenses	3.90%	1.10%	(4.00%)
State tax expense	1.50%	0.90%	0.60%
Release of prior year unrecognized tax benefits (as a percent)	(2.70%)	(0.60%)	(1.70%)
Excess officer compensation (as a percent)	2.40%	1.50%	1.40%
Other tax effects of equity compensation	(0.40%)	(2.20%)	(1.50%)
Change in cost-sharing treatment of stock-based compensation	(2.20%)	5.20%	(0.50%)
Excess tax benefit of stock-based compensation	(5.90%)	(5.60%)
Change in prior period valuation allowance	(2.50%)	(1.30%)	(0.60%)
Transition Tax On unremitted foreign earnings	(8.40%)	70.80%
Revaluation of deferred tax balances	0.30%	28.20%
Other deferred tax impacts of tax reform	(3.10%)	(64.80%)
Other (as a percent)	(1.30%)	(0.90%)	1.30%
Effective Tax Rate (as a percent)	(15.80%)	38.80%	4.70%

Income Taxes - Altera Corp and Singapore Operations (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Income Taxes
Net deferred tax assets	$ 35,514	$ 36,174
Income tax benefit	(11,430)	29,811	$ 3,002
Altera decision
Income Taxes
Net deferred tax assets	27,200
Singapore
Income Taxes
Income tax benefit	$ (5,400)	$ (11,000)	$ (7,700)
Income tax benefit (expense) per diluted share (in dollars per share)	$ 0.12	$ 0.25	$ 0.18

Income Taxes - Deferred Income Taxes (Details) - USD ($) $ in Thousands	Dec. 29, 2018	Dec. 30, 2017
Deferred tax assets:
Net operating loss carryforwards	$ 9,973	$ 12,925
Research and development tax credit carryforwards	12,500	12,322
Stock-based compensation	4,360	5,256
Depreciation and amortization	7,799
Capitalized research and development	2,521	3,468
Deferred income on shipments to distributors	5,824	7,070
Expected future cost-sharing adjustment	25,257	21,582
Accrued liabilities and other	7,737	6,999
Deferred tax assets	75,971	69,622
Less: Valuation allowance	(4,975)	(6,518)
Deferred tax assets, net	70,996	63,104
Deferred tax liabilities:
Acquired intangible assets	20,656	13,884
Depreciation and amortization	4,604	1,274
Convertible debt	8,080	10,351
Prepaid expenses and other	2,142	1,421
Deferred tax liabilities	35,482	26,930
Net deferred tax assets	$ 35,514	$ 36,174

Income Taxes - Operating Loss and Tax Credit Carryforwards (Details) $ in Millions	12 Months Ended
	Dec. 29, 2018 USD ($)
Operating loss and tax credit carryforwards
Undistributed earnings of foreign subsidiaries	$ 105.0
Provision for foreign withholding tax and state income taxes	0.0
State
Operating loss and tax credit carryforwards
Operating loss carryforwards	43.8
State \| Tentative minimum tax credit
Operating loss and tax credit carryforwards
Tax credit carryforwards	0.1
State \| Research and development tax credit
Operating loss and tax credit carryforwards
Tax credit carryforwards	13.5
Silicon Clocks, Spectra Linear and Ember \| Federal
Operating loss and tax credit carryforwards
Operating loss carryforwards	32.7
Tax credit carryforwards	1.9
Energy Micro \| Foreign
Operating loss and tax credit carryforwards
Operating loss carryforwards	$ 1.9

Income Taxes - Uncertain Tax Positions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Summarizes the activity related to gross unrecognized tax benefits
Beginning balance	$ 3,187	$ 3,054	$ 3,610
Additions based on tax positions related to current year	630	456	439
Additions based on tax positions related to prior years	115	114	99
Reductions for tax positions as a result of a lapse of the applicable statute of limitations	(1,896)	(437)	(1,094)
Ending balance	2,036	3,187	3,054
Interest on income tax included in gross unrecognized tax benefits	2,100	3,200	3,000
Gross unrecognized tax benefits which would affect the effective tax rate if recognized	2,100	$ 3,200	$ 2,200
Norwegian
Summarizes the activity related to gross unrecognized tax benefits
Taxes payable during appeal process	9,000
Norwegian \| 2013
Summarizes the activity related to gross unrecognized tax benefits
Adjustment to the pricing of the intercompany transaction	$ 16,200

Segment Information (Details) $ in Thousands	12 Months Ended
Segment Information (Details) $ in Thousands	Dec. 29, 2018 USD ($) segment product	Dec. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)
Segment Information
Number of operating segments \| segment	1
Number of product categories \| product	4
Revenues	$ 868,267	$ 768,867	$ 697,626
Property and equipment, net	139,049	127,682
United States
Segment Information
Revenues	149,385	112,574	94,583
Property and equipment, net	128,622	119,746
China
Segment Information
Revenues	344,255	307,748	291,974
Rest of world
Segment Information
Revenues	374,627	348,545	$ 311,069
Property and equipment, net	$ 10,427	$ 7,936

Schedule II - VALUATION AND QUALIFYING ACCOUNTS (Details) - Valuation Allowance for Deferred Tax Assets - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Valuation Allowance
Balance at Beginning of Period	$ 6,518	$ 12,361	$ 10,264
Additions Charged to Expenses	435	2,110	2,715
Additions Charged to Other Accounts		1,732
Deductions	(1,978)	(9,685)	(618)
Balance at End of Period	$ 4,975	$ 6,518	$ 12,361