0001104659-19-055716 | 10-Q | XBRL Viewer

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 28, 2019	Oct. 15, 2019
Document and Entity Information
Entity Registrant Name	SILICON LABORATORIES INC.
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 28, 2019
Entity File Number	000-29823
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	74-2793174
Entity Address, Address Line One	400 West Cesar Chavez
Entity Address, City or Town	Austin
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78701
City Area Code	512
Local Phone Number	416-8500
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	SLAB
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		43,373,269
Entity Central Index Key	0001038074
Current Fiscal Year End Date	--12-28
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 28, 2019	Dec. 29, 2018
Current assets:
Cash and cash equivalents	$ 237,056	$ 197,043
Short-term investments	457,879	416,779
Accounts receivable, net	76,169	73,194
Inventories	71,453	74,972
Prepaid expenses and other current assets	52,609	64,650
Total current assets	895,166	826,638
Property and equipment, net	136,601	139,049
Goodwill	397,344	397,344
Other intangible assets, net	140,941	170,832
Other assets, net	67,126	90,491
Total assets	1,637,178	1,624,354
Current liabilities:
Accounts payable	38,724	41,171
Deferred revenue and returns liability	21,827	22,494
Other current liabilities	71,485	81,180
Total current liabilities	132,036	144,845
Convertible debt	364,802	354,771
Other non-current liabilities	56,586	57,448
Total liabilities	553,424	557,064
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; 00 and 43,088 shares issued and outstanding at September 28, 2019 and December 29, 2018, respectively	4	4
Additional paid-in capital	112,251	107,517
Retained earnings	970,893	961,343
Accumulated other comprehensive income (loss)	606	(1,574)
Total stockholders' equity	1,083,754	1,067,290
Total liabilities and stockholders' equity	$ 1,637,178	$ 1,624,354

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Sep. 28, 2019	Dec. 29, 2018
Condensed Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000	10,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	250,000	250,000
Common stock, shares issued	43,373	43,088
Common stock, shares outstanding	43,373	43,088

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Condensed Consolidated Statements of Income
Revenues	$ 223,294	$ 230,243	$ 618,116	$ 652,733
Costs of revenues	89,204	94,616	241,103	261,577
Gross profit	134,090	135,627	377,013	391,156
Operating expenses:
Research and development	62,552	61,091	187,974	175,414
Selling, general and administrative	47,718	49,406	145,571	148,896
Operating expenses	110,270	110,497	333,545	324,310
Operating income	23,820	25,130	43,468	66,846
Other income (expense):
Interest income and other, net	3,172	2,109	9,691	6,920
Interest expense	(5,126)	(4,932)	(15,128)	(14,703)
Income before income taxes	21,866	22,307	38,031	59,063
Provision (benefit) for income taxes	1,685	(5,454)	28,481	(9,383)
Net income	$ 20,181	$ 27,761	$ 9,550	$ 68,446
Earnings per share:
Basic (in dollars per share)	$ 0.47	$ 0.64	$ 0.22	$ 1.59
Diluted (in dollars per share)	$ 0.45	$ 0.63	$ 0.22	$ 1.55
Weighted-average common shares outstanding:
Basic (in shares)	43,358	43,256	43,311	43,177
Diluted (in shares)	44,634	44,194	44,120	44,135

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Condensed Consolidated Statements of Comprehensive Income
Net income	$ 20,181	$ 27,761	$ 9,550	$ 68,446
Net changes to available-for-sale securities
Unrealized gain (losses) arising during the period	106	237	2,738	(126)
Reclassification for (gains) losses included in net income	(188)		(188)	49
Net changes to cash flow hedges
Unrealized gains (losses) arising during the period	(451)	3	(395)	(418)
Reclassification for losses included in net income	174	131	605	164
Other comprehensive income (loss), before tax	(359)	371	2,760	(331)
Provision (benefit) for income taxes	(75)	78	580	(71)
Other comprehensive income (loss)	(284)	293	2,180	(260)
Comprehensive income	$ 19,897	$ 28,054	$ 11,730	$ 68,186

Condensed 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 Dec. 30, 2017	$ 4	$ 102,862	$ 851,307	$ (1,157)	$ 953,016
Balance (in shares) at Dec. 30, 2017	42,707
Increase (Decrease) in Stockholders' Equity
Cumulative effect of adoption of accounting standard			26,448	(250)	26,198
Net income			68,446		68,446
Other comprehensive income (loss)				(260)	(260)
Stock issuances, net of shares withheld for taxes		(12,342)			(12,342)
Stock issuances, net of shares withheld for taxes (in shares)	697
Repurchases of common stock		(24,272)			(24,272)
Repurchases of common stock (in shares)	(257)
Stock-based compensation		36,921			36,921
Balance at Sep. 29, 2018	$ 4	103,169	946,201	(1,667)	1,047,707
Balance (in shares) at Sep. 29, 2018	43,147
Balance at Jun. 30, 2018	$ 4	111,984	918,440	(1,960)	1,028,468
Balance (in shares) at Jun. 30, 2018	43,350
Increase (Decrease) in Stockholders' Equity
Net income			27,761		27,761
Other comprehensive income (loss)				293	293
Stock issuances, net of shares withheld for taxes		(518)			(518)
Stock issuances, net of shares withheld for taxes (in shares)	18
Repurchases of common stock		(20,876)			(20,876)
Repurchases of common stock (in shares)	(221)
Stock-based compensation		12,579			12,579
Balance at Sep. 29, 2018	$ 4	103,169	946,201	(1,667)	1,047,707
Balance (in shares) at Sep. 29, 2018	43,147
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
Increase (Decrease) in Stockholders' Equity
Net income			9,550		$ 9,550
Other comprehensive income (loss)				2,180	2,180
Stock issuances, net of shares withheld for taxes		(8,585)			(8,585)
Stock issuances, net of shares withheld for taxes (in shares)	586
Repurchases of common stock		(26,716)			(26,716)
Repurchases of common stock (in shares)	(301)
Stock-based compensation		40,035			40,035
Balance at Sep. 28, 2019	$ 4	112,251	970,893	606	$ 1,083,754
Balance (in shares) at Sep. 28, 2019	43,373				43,373
Balance at Jun. 29, 2019	$ 4	99,665	950,712	890	$ 1,051,271
Balance (in shares) at Jun. 29, 2019	43,344
Increase (Decrease) in Stockholders' Equity
Net income			20,181		20,181
Other comprehensive income (loss)				(284)	(284)
Stock issuances, net of shares withheld for taxes		(1,185)			(1,185)
Stock issuances, net of shares withheld for taxes (in shares)	29
Stock-based compensation		13,771			13,771
Balance at Sep. 28, 2019	$ 4	$ 112,251	$ 970,893	$ 606	$ 1,083,754
Balance (in shares) at Sep. 28, 2019	43,373				43,373

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018
Operating Activities
Net income	$ 9,550	$ 68,446
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation of property and equipment	12,675	11,781
Amortization of other intangible assets and other assets	29,891	33,322
Amortization of debt discount and debt issuance costs	10,031	9,578
Stock-based compensation expense	40,042	36,893
Deferred income taxes	24,531	(2,994)
Changes in operating assets and liabilities:
Accounts receivable	(2,975)	2,518
Inventories	3,512	5,066
Prepaid expenses and other assets	23,401	6,349
Accounts payable	6,419	8,675
Other current liabilities and income taxes	(15,602)	(23,814)
Deferred income, deferred revenue and returns liability	(667)	(2,816)
Other non-current liabilities	(5,957)	(7,878)
Net cash provided by operating activities	134,851	145,126
Investing Activities
Purchases of available-for-sale investments	(306,645)	(253,973)
Sales and maturities of available-for-sale investments	268,140	371,885
Purchases of property and equipment	(12,773)	(18,267)
Purchases of other assets	(7,132)	(9,088)
Acquisition of business, net of cash acquired		(239,729)
Net cash used in investing activities	(58,410)	(149,172)
Financing Activities
Payment of debt issuance costs	(1,127)
Repurchases of common stock	(26,716)	(24,272)
Payment of taxes withheld for vested stock awards	(15,693)	(18,927)
Proceeds from the issuance of common stock	7,108	6,585
Payment of acquisition-related contingent consideration		(3,380)
Net cash used in financing activities	(36,428)	(39,994)
Increase (decrease) in cash and cash equivalents	40,013	(44,040)
Cash and cash equivalents at beginning of period	197,043	269,366
Cash and cash equivalents at end of period	$ 237,056	$ 225,326

Significant Accounting Policies

9 Months Ended

Sep. 28, 2019

Significant Accounting Policies

Significant Accounting Policies

1. Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The Condensed Consolidated Financial Statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments which, in the opinion of management, are necessary to present fairly the condensed consolidated financial position of Silicon Laboratories Inc. and its subsidiaries (collectively, the “Company”) at September 28, 2019 and December 29, 2018, the condensed consolidated results of its operations for the three and nine months ended September 28, 2019 and September 29, 2018, the Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 28, 2019 and September 29, 2018, the Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended September 28, 2019 and September 29, 2018, and the Condensed Consolidated Statements of Cash Flows for the nine months ended September 28, 2019 and September 29, 2018. All intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated results of operations for the three and nine months ended September 28, 2019 are not necessarily indicative of the results to be expected for the full year.

The accompanying unaudited Condensed Consolidated Financial Statements do not include certain footnotes and financial presentations normally required under U.S. generally accepted accounting principles (GAAP). Therefore, these Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto for the year ended December 29, 2018, included in the Company’s Form 10-K/A filed with the Securities and Exchange Commission (SEC) on May 3, 2019.

The Company prepares financial statements on a 52- or 53-week fiscal year that ends on the Saturday closest to December 31. Fiscal 2019 will have 52 weeks and fiscal 2018 had 52 weeks. In a 52-week year, each fiscal quarter consists of 13 weeks.

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 Lease Accounting Standard

The Company adopted Accounting Standards Codification (ASC) Topic 842, Leases, on December 30, 2018, the first day of its fiscal year ending December 28, 2019. We elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed us to not reassess historical lease classifications, initial direct costs of existing leases or whether any expired or existing contracts were or contained leases.

The Company elected the retrospective method of adoption at the beginning of the period of adoption through a cumulative-effect adjustment. Prior periods have not been adjusted. The following reflects the material changes recorded in connection with the cumulative-effect adjustment (in thousands):


Financial Statement Line Item	Increase (Decrease)
Prepaid expenses and other current assets	$	(481)
Other assets, net	$	18,166
Other current liabilities	$	3,516
Other non-current liabilities	$	14,169

The primary impact of the Company’s adoption of ASC 842 resulted from the recognition of right-of-use assets and operating lease liabilities. The adoption had no significant impact to the Condensed Consolidated Statements of Income or to cash provided by or used in net operating, investing or financing activities in the Condensed Consolidated Statements of Cash Flows.

Leases

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

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

Revenue Recognition

Revenue is recognized when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Substantially all of the Company’s contracts with customers contain a single performance obligation, the sale of mixed-signal integrated circuit (IC) products. This performance obligation is satisfied when control of the product is transferred to the customer, which typically occurs upon delivery. Unsatisfied performance obligations primarily represent contracts for products with future delivery dates 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 transaction price reflects the Company’s expectations about the consideration it will be entitled to receive from the customer and may include fixed or variable amounts. Variable consideration primarily includes sales made to distributors under agreements allowing certain rights of return, referred to as stock rotation, and credits issued to the distributor due to price protection. The Company 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.

Recent Accounting Pronouncements

In January 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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.

Earnings Per Share

9 Months Ended

Sep. 28, 2019

Earnings Per Share

Earnings Per Share

2. Earnings Per Share

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


	Three Months Ended				Nine Months Ended
	September 28,		September 29,		September 28,		September 29,
	2019		2018		2019		2018
Net income	$	20,181	$	27,761	$	9,550	$	68,446

Shares used in computing basic earnings per share		43,358		43,256		43,311		43,177

Effect of dilutive securities:
Stock-based awards and convertible debt		1,276		938		809		958
Shares used in computing diluted earnings per share		44,634		44,194		44,120		44,135

Earnings per share:
Basic	$	0.47	$	0.64	$	0.22	$	1.59
Diluted	$	0.45	$	0.63	$	0.22	$	1.55

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 the three months ended September 28, 2019 and September 29, 2018 and the nine months ended September 28, 2019 and September 29, 2018, approximately 0.6 million, 0.2 million, 0.3 million and 0.2 million shares, respectively, were included in the denominator for the calculation of diluted earnings per share. See Note 7, Debt, to the Condensed Consolidated Financial Statements for additional information.

Fair Value of Financial Instruments

9 Months Ended

Sep. 28, 2019

Fair Value of Financial Instruments

Fair Value of Financial Instruments

3. 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.

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 September 28, 2019 Using
	Quoted Prices in		Significant Other		Significant
	Active Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Cash equivalents:
Money market funds	$	128,072	$	—	$	—	$	128,072
Corporate debt securities		—		5,291		—		5,291
Total cash equivalents	$	128,072	$	5,291	$	—	$	133,363

Short-term investments:
Government debt securities	$	80,686	$	78,739	$	—	$	159,425
Corporate debt securities		—		298,454		—		298,454
Total short-term investments	$	80,686	$	377,193	$	—	$	457,879

Other assets, net:
Auction rate securities	$	—	$	—	$	5,715	$	5,715
Total	$	—	$	—	$	5,715	$	5,715

Total	$	208,758	$	382,484	$	5,715	$	596,957


	Fair Value Measurements
	at December 29, 2018 Using
	Quoted Prices in		Significant Other		Significant
	Active Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Cash equivalents:
Money market funds	$	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

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 income (loss) in the Consolidated Balance Sheet. The following summarizes the contractual underlying maturities of the Company’s available-for-sale investments at September 28, 2019 (in thousands):


			Fair
	Cost		Value
Due in one year or less	$	408,664	$	409,445
Due after one year through ten years		176,798		177,497
Due after ten years		10,300		10,015
	$	595,762	$	596,957

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


	Less Than 12 Months				12 Months or Greater				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
As of September 28, 2019	Value		Losses		Value		Losses		Value		Losses
Government debt securities	$	23,804	$	(30)	$	20,922	$	(35)	$	44,726	$	(65)
Corporate debt securities		56,374		(100)		8,555		(2)		64,929		(102)
Auction rate securities		—		—		5,715		(285)		5,715		(285)
	$	80,178	$	(130)	$	35,192	$	(322)	$	115,370	$	(452)


	Less Than 12 Months				12 Months or Greater				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
As of December 29, 2018	Value		Losses		Value		Losses		Value		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)

The gross unrealized losses as of September 28, 2019 and December 29, 2018 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 September 28, 2019, the Company has determined that no other-than-temporary impairment losses existed.

At September 28, 2019 and December 29, 2018, 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
September 28, 2019
(000s)		Valuation Technique	Unobservable Input	Weighted Average
$	5,715	Discounted cash flow	Estimated yield	3.59%

			Expected holding period	10 years

			Estimated discount rate	2.67%

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 three and nine months ended September 28, 2019 (in thousands):


Assets

	Three Months		Nine Months
Auction Rate Securities	Ended		Ended
Beginning balance	$	5,647	$	5,759
Gain (loss) included in other comprehensive income (loss)		68		(44)
Balance at September 28, 2019	$	5,715	$	5,715

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 September 28, 2019 and December 29, 2018, the fair value of the convertible senior notes was $518.7 million and $419.0 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

9 Months Ended

Sep. 28, 2019

Derivative Financial Instruments

Derivative Financial Instruments

4. Derivative Financial Instruments

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

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 income (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 income (loss) may be recognized in the Consolidated Statement of Income based on an assessment of the contracts at the time of termination.

The Company has entered into foreign currency forward contracts for a portion of its forecasted operating expenses denominated in the Norwegian Krone. As of September 28, 2019, the contracts had maturities of one to eleven months and an aggregate notional value of $7.2 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 (loss) and amounts reclassified from accumulated other comprehensive income (loss) into earnings were not material for any of the periods presented.

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 September 28, 2019, the Company held one foreign currency forward contract denominated in Singapore Dollars with a notional value of $5.7 million. The fair value of the contract and contract losses recognized in income were not material for any of the periods presented.

Balance Sheet Details

9 Months Ended

Sep. 28, 2019

Balance Sheet Details

Balance Sheet Details

5. Balance Sheet Details

The following shows the details of selected Condensed Consolidated Balance Sheet items (in thousands):

Inventories


	September 28,		December 29,
	2019		2018
Work in progress	$	49,490	$	50,983
Finished goods		21,963		23,989
	$	71,453	$	74,972

Acquisitions

9 Months Ended

Sep. 28, 2019

Acquisitions

Acquisitions

6. 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 expanded the Company's IoT connectivity portfolio in the connected home and security market, while further scaling the Company's engineering team.

Debt

9 Months Ended

Sep. 28, 2019

Debt

Debt

7. 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):


	September 28,		December 29,
	2019		2018
Liability component
Principal	$	400,000	$	400,000
Unamortized debt discount		(30,582)		(39,298)
Unamortized debt issuance costs		(4,616)		(5,931)
Net carrying amount	$	364,802	$	354,771

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 September 28, 2019, the remaining period over which the debt discount and debt issuance costs will be amortized was 2.4 years.

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


	Three Months Ended				Nine Months Ended
	September 28,		September 29,		September 28,		September 29,
	2019		2018		2019		2018
Contractual interest expense	$	1,360	$	1,360	$	4,110	$	4,125
Amortization of debt discount		2,930		2,801		8,716		8,322
Amortization of debt issuance costs		442		423		1,315		1,256
	$	4,732	$	4,584	$	14,141	$	13,703

Credit Facility

On August 7, 2019, the Company and certain of its domestic subsidiaries (the “Guarantors”) amended its existing credit agreement. The amended agreement (the “Credit Facility”) consists of a $400 million revolving credit facility with a maturity date of August 7, 2024. The Credit Facility includes a $25 million letter of credit sublimit and a $10 million swingline loan sublimit. The Company also has an option to increase the size of the borrowing capacity by up to the greater of an aggregate of $250 million and 100% of EBITDA, plus an amount that would not cause a secured leverage ratio (funded debt secured by assets/EBITDA) to exceed 3.25 to 1.00, subject to certain conditions.

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 1.00% to 1.75% and for base rate loans range from 0.00% to 0.75%, depending in each case, on the leverage ratio as defined in the Credit Facility.

The Credit Facility contains various conditions, covenants and representations with which the Company must be in compliance in order to borrow funds and to avoid an event of default, including financial covenants that the Company must maintain a leverage ratio (funded debt/EBITDA) of no more than 4.25 to 1, a secured leverage ratio of no more than 3.50 to 1, and a minimum interest coverage ratio (EBITDA/interest payments) of no less than 2.50 to 1. As of September 28, 2019, 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.

Leases

9 Months Ended

Sep. 28, 2019

Leases

Leases

8. 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. Lease costs under operating leases were $1.4 million and $4.4 million during the three and nine months ended September 28, 2019, respectively.

Supplemental Lease Information


	September 28,
Balance Sheet Information (in thousands)	2019
Operating lease right-of-use assets	$	17,276
Operating lease liabilities	$	18,465


	Nine Months
	Ended
	September 28,
Cash Flow Information (in thousands)	2019
Cash paid for operating lease liabilities	$	4,563
Right-of-use assets obtained in exchange for operating lease obligations	$	2,488


		September 28,
Operating Lease Information		2019
Weighted-average remaining lease term		4.7 years
Weighted-average discount rate		5.25%

The maturities of operating lease liabilities as of September 28, 2019 were as follows (in thousands):


Fiscal Year
2019	$	1,457
2020		5,419
2021		4,368
2022		3,668
2023		3,042
Thereafter		3,770
Total lease payments		21,724
Less imputed interest		(3,259)
Total lease liabilities	$	18,465

Commitments and Contingencies

9 Months Ended

Sep. 28, 2019

Commitments and Contingencies

Commitments and Contingencies

9. Commitments and Contingencies

Legal Proceedings

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

Stockholders' Equity

9 Months Ended

Sep. 28, 2019

Stockholders' Equity

Stockholders' Equity

10. Stockholders’ Equity

Common Stock

The Company issued 0.6 million shares of common stock during the nine months ended September 28, 2019.

Share Repurchase Program

The Company's existing share repurchase program has an authorization amount of $200 million and a termination date of December 2019. In October 2019, the Board of Directors extended the termination date of the program to December 2020. This program allows 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 0.3 million shares and 0.3 million shares of its common stock for $26.7 million and $24.3 million during the nine months ended September 28, 2019 and September 29, 2018, respectively. These shares were retired upon repurchase.

Reclassifications From Accumulated Other Comprehensive Income (Loss)

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


	Three Months Ended				Nine Months Ended
	September 28,		September 29,		September 28,		September 29,
Reclassification	2019		2018		2019		2018
Gains (losses) on available-for-sales securities to:
Interest income and other, net	$	188	$	—	$	188	$	(49)
Losses on cash flow hedges to:
Operating expenses		(174)		(131)		(605)		(164)
		14		(131)		(417)		(213)
Income tax expense (benefit)		(3)		28		88		45

Total reclassifications	$	11	$	(103)	$	(329)	$	(168)

Revenues

9 Months Ended

Sep. 28, 2019

Revenues

Revenues

11. 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):


	Three Months Ended				Nine Months Ended
	September 28,		September 29,		September 28,		September 29,
	2019		2018		2019		2018
Internet of Things	$	129,403	$	125,390	$	360,488	$	344,504
Infrastructure		45,150		52,554		134,824		153,494
Broadcast		34,100		36,081		86,695		106,318
Access		14,641		16,218		36,109		48,417
	$	223,294	$	230,243	$	618,116	$	652,733

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. During the three months ended September 28, 2019 and September 29, 2018 and the nine months ended September 28, 2019 and September 29, 2018, the Company recognized revenue of $14.1 million, $15.5 million, $16.9 million and $23.9 million, respectively, from performance obligations that were satisfied in previous reporting periods.

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


	Three Months Ended				Nine Months Ended
	September 28,		September 29,		September 28,		September 29,
	2019		2018		2019		2018
Distributors	$	163,556	$	166,082	$	448,864	$	470,385
Direct customers		59,738		64,161		169,252		182,348
	$	223,294	$	230,243	$	618,116	$	652,733

Stock-Based Compensation

9 Months Ended

Sep. 28, 2019

Stock-Based Compensation

Stock-Based Compensation

12. Stock-Based Compensation

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

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 restricted stock units (RSUs), performance stock units (PSUs) and restricted stock awards (RSAs)) are estimated based on their intrinsic values. The fair values of market stock awards (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 following table presents details of stock-based compensation costs recognized in the Condensed Consolidated Statements of Income (in thousands):


	Three Months Ended				Nine Months Ended
	September 28,		September 29,		September 28,		September 29,
	2019		2018		2019		2018
Cost of revenues	$	344	$	324	$	989	$	914
Research and development		6,474		6,016		19,030		17,454
Selling, general and administrative		6,970		6,242		20,023		18,525
		13,788		12,582		40,042		36,893
Income tax benefit		817		619		1,951		7,515
	$	12,971	$	11,963	$	38,091	$	29,378

The decrease in income tax benefit during the nine months ended September 28, 2019 was primarily due to a change in our position related to the treatment of stock-based compensation within our intercompany cost-sharing arrangement. See Note 13, Income Taxes, to the Condensed Consolidated Financial Statements for additional information. The Company had approximately $69.1 million of total unrecognized compensation costs related to granted stock options and awards as of September 28, 2019 that are expected to be recognized over a weighted-average period of approximately 2.2 years. There were no significant stock-based compensation costs capitalized into assets in any of the periods presented.

Income Taxes

9 Months Ended

Sep. 28, 2019

Income Taxes

Income Taxes

13. Income Taxes

Provision (benefit) for income taxes includes both domestic and foreign income taxes at the applicable tax rates adjusted for non-deductible expenses, research and development tax credits and other permanent differences. Income tax expense (benefit) was $1.7 million and $(5.5) million for the three months ended September 28, 2019 and September 29, 2018, resulting in effective tax rates of 7.7% and (24.4)%, respectively. Income tax expense (benefit) was $28.5 million and $(9.4) million for the nine months ended September 28, 2019 and September 29, 2018, resulting in effective tax rates of 74.9% and (15.9)%, respectively. The effective tax rate for the three months ended September 28, 2019 increased from the prior period as a result of a discrete benefit recorded under Staff Accounting Bulletin (“SAB”) No. 118 in the prior period revising the Company’s initial estimate of Transition Tax as a result of the Tax Cuts and Jobs Act. The effective tax rate for the nine months ended September 28, 2019 increased from the prior period primarily due to a change in the Company’s financial statement position related to the treatment of stock-based compensation within its intercompany cost-sharing arrangement.

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 costs 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 June 7, 2019, the Ninth Circuit reversed the 2015 decision of the U.S. Tax Court. As a result of this decision, the Company no longer reflects a tax benefit within its financial statements related to the removal of stock-based compensation from its intercompany cost-sharing arrangement. During the three months ended June 29, 2019, the Company removed the deferred tax assets and a deferred tax liability associated with this matter from its financial statements, resulting in a discrete income tax expense of $28.1 million. The Company will continue to monitor ongoing developments in this matter and potential impacts to its financial statements.

Uncertain Tax Positions

As of September 28, 2019, the Company had gross unrecognized tax benefits, inclusive of interest, of $2.4 million of which $1.9 million would affect the effective tax rate if recognized. During the nine months ended September 28, 2019, the Company released $0.2 million of unrecognized tax benefits.

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

Following the completion of the Norwegian Tax Administration (“NTA”) examination of the Company’s Norwegian subsidiary for income tax matters relating to fiscal years 2013, 2014, 2015 and 2016, the Company received an assessment from the NTA in December 2017 concerning an adjustment to its 2013 taxable income related to the pricing of an intercompany transaction. The Company is currently appealing the assessment. The adjustment to the pricing of the intercompany transaction results in approximately $15.6 million additional Norwegian income tax. The Company disagrees with the NTA’s assessment and believes the Company’s position on this matter is more likely than not to be sustained. The Company plans to exhaust all available administrative remedies, and if unable to resolve this matter through administrative remedies with the NTA, the Company plans to pursue judicial remedies.

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

Tax years 2015 through 2019 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 does not believe gross unrecognized tax benefits will decrease in the next 12 months.

Significant Accounting Policies (Policies)

9 Months Ended

Sep. 28, 2019

Significant Accounting Policies

Use of Estimates

Use of Estimates

Adoption of New Lease Accounting Standard

Adoption of New Lease Accounting Standard


Financial Statement Line Item	Increase (Decrease)
Prepaid expenses and other current assets	$	(481)
Other assets, net	$	18,166
Other current liabilities	$	3,516
Other non-current liabilities	$	14,169

Leases

Leases

Revenue Recognition

Revenue Recognition

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Significant Accounting Policies (Tables)

9 Months Ended

Sep. 28, 2019

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)
Prepaid expenses and other current assets	$	(481)
Other assets, net	$	18,166
Other current liabilities	$	3,516
Other non-current liabilities	$	14,169

Earnings Per Share (Tables)

9 Months Ended

Sep. 28, 2019

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):


	Three Months Ended				Nine Months Ended
	September 28,		September 29,		September 28,		September 29,
	2019		2018		2019		2018
Net income	$	20,181	$	27,761	$	9,550	$	68,446

Shares used in computing basic earnings per share		43,358		43,256		43,311		43,177

Effect of dilutive securities:
Stock-based awards and convertible debt		1,276		938		809		958
Shares used in computing diluted earnings per share		44,634		44,194		44,120		44,135

Earnings per share:
Basic	$	0.47	$	0.64	$	0.22	$	1.59
Diluted	$	0.45	$	0.63	$	0.22	$	1.55

Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 28, 2019

Fair Value of Financial Instruments

Summary of valuation of the financial instruments


	Fair Value Measurements
	at September 28, 2019 Using
	Quoted Prices in		Significant Other		Significant
	Active Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Cash equivalents:
Money market funds	$	128,072	$	—	$	—	$	128,072
Corporate debt securities		—		5,291		—		5,291
Total cash equivalents	$	128,072	$	5,291	$	—	$	133,363

Short-term investments:
Government debt securities	$	80,686	$	78,739	$	—	$	159,425
Corporate debt securities		—		298,454		—		298,454
Total short-term investments	$	80,686	$	377,193	$	—	$	457,879

Other assets, net:
Auction rate securities	$	—	$	—	$	5,715	$	5,715
Total	$	—	$	—	$	5,715	$	5,715

Total	$	208,758	$	382,484	$	5,715	$	596,957


	Fair Value Measurements
	at December 29, 2018 Using
	Quoted Prices in		Significant Other		Significant
	Active Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Cash equivalents:
Money market funds	$	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

Schedule of maturities of the Company's available-for-sale investments

The following summarizes the contractual underlying maturities of the Company’s available-for-sale investments at September 28, 2019 (in thousands):


			Fair
	Cost		Value
Due in one year or less	$	408,664	$	409,445
Due after one year through ten years		176,798		177,497
Due after ten years		10,300		10,015
	$	595,762	$	596,957

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


	Less Than 12 Months				12 Months or Greater				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
As of September 28, 2019	Value		Losses		Value		Losses		Value		Losses
Government debt securities	$	23,804	$	(30)	$	20,922	$	(35)	$	44,726	$	(65)
Corporate debt securities		56,374		(100)		8,555		(2)		64,929		(102)
Auction rate securities		—		—		5,715		(285)		5,715		(285)
	$	80,178	$	(130)	$	35,192	$	(322)	$	115,370	$	(452)


	Less Than 12 Months				12 Months or Greater				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
As of December 29, 2018	Value		Losses		Value		Losses		Value		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)

Summary of quantitative information about level 3 fair value measurements

Auction rate securities


Fair Value at
September 28, 2019
(000s)		Valuation Technique	Unobservable Input	Weighted Average
$	5,715	Discounted cash flow	Estimated yield	3.59%

			Expected holding period	10 years

			Estimated discount rate	2.67%

Summary of activity in Level 3 financial instruments

The following summarizes the activity in Level 3 financial instruments for the three and nine months ended September 28, 2019 (in thousands):


Assets

	Three Months		Nine Months
Auction Rate Securities	Ended		Ended
Beginning balance	$	5,647	$	5,759
Gain (loss) included in other comprehensive income (loss)		68		(44)
Balance at September 28, 2019	$	5,715	$	5,715

Balance Sheet Details (Tables)

9 Months Ended

Sep. 28, 2019

Balance Sheet Details

Schedule of Inventories

The following shows the details of selected Condensed Consolidated Balance Sheet items (in thousands):

Inventories


	September 28,		December 29,
	2019		2018
Work in progress	$	49,490	$	50,983
Finished goods		21,963		23,989
	$	71,453	$	74,972

Debt (Tables)

9 Months Ended

Sep. 28, 2019

Debt

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

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


	September 28,		December 29,
	2019		2018
Liability component
Principal	$	400,000	$	400,000
Unamortized debt discount		(30,582)		(39,298)
Unamortized debt issuance costs		(4,616)		(5,931)
Net carrying amount	$	364,802	$	354,771

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):


	Three Months Ended				Nine Months Ended
	September 28,		September 29,		September 28,		September 29,
	2019		2018		2019		2018
Contractual interest expense	$	1,360	$	1,360	$	4,110	$	4,125
Amortization of debt discount		2,930		2,801		8,716		8,322
Amortization of debt issuance costs		442		423		1,315		1,256
	$	4,732	$	4,584	$	14,141	$	13,703

Leases (Tables)

9 Months Ended

Sep. 28, 2019

Leases

Summary of supplemental lease information

Supplemental Lease Information


	September 28,
Balance Sheet Information (in thousands)	2019
Operating lease right-of-use assets	$	17,276
Operating lease liabilities	$	18,465


	Nine Months
	Ended
	September 28,
Cash Flow Information (in thousands)	2019
Cash paid for operating lease liabilities	$	4,563
Right-of-use assets obtained in exchange for operating lease obligations	$	2,488


		September 28,
Operating Lease Information		2019
Weighted-average remaining lease term		4.7 years
Weighted-average discount rate		5.25%

Schedule of maturities of operating lease liabilities

The maturities of operating lease liabilities as of September 28, 2019 were as follows (in thousands):


Fiscal Year
2019	$	1,457
2020		5,419
2021		4,368
2022		3,668
2023		3,042
Thereafter		3,770
Total lease payments		21,724
Less imputed interest		(3,259)
Total lease liabilities	$	18,465

Stockholders' Equity (Tables)

9 Months Ended

Sep. 28, 2019

Stockholders' Equity

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):


	Three Months Ended				Nine Months Ended
	September 28,		September 29,		September 28,		September 29,
Reclassification	2019		2018		2019		2018
Gains (losses) on available-for-sales securities to:
Interest income and other, net	$	188	$	—	$	188	$	(49)
Losses on cash flow hedges to:
Operating expenses		(174)		(131)		(605)		(164)
		14		(131)		(417)		(213)
Income tax expense (benefit)		(3)		28		88		45

Total reclassifications	$	11	$	(103)	$	(329)	$	(168)

Revenues (Tables)

9 Months Ended

Sep. 28, 2019

Revenues

Schedule of disaggregation of revenue by product category


	Three Months Ended				Nine Months Ended
	September 28,		September 29,		September 28,		September 29,
	2019		2018		2019		2018
Internet of Things	$	129,403	$	125,390	$	360,488	$	344,504
Infrastructure		45,150		52,554		134,824		153,494
Broadcast		34,100		36,081		86,695		106,318
Access		14,641		16,218		36,109		48,417
	$	223,294	$	230,243	$	618,116	$	652,733

Schedule of disaggregation of revenue by sales channel

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


	Three Months Ended				Nine Months Ended
	September 28,		September 29,		September 28,		September 29,
	2019		2018		2019		2018
Distributors	$	163,556	$	166,082	$	448,864	$	470,385
Direct customers		59,738		64,161		169,252		182,348
	$	223,294	$	230,243	$	618,116	$	652,733

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 28, 2019

Stock-Based Compensation

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

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


	Three Months Ended				Nine Months Ended
	September 28,		September 29,		September 28,		September 29,
	2019		2018		2019		2018
Cost of revenues	$	344	$	324	$	989	$	914
Research and development		6,474		6,016		19,030		17,454
Selling, general and administrative		6,970		6,242		20,023		18,525
		13,788		12,582		40,042		36,893
Income tax benefit		817		619		1,951		7,515
	$	12,971	$	11,963	$	38,091	$	29,378

Significant Accounting Policies - Basis of Presentation and Principles of Consolidation (Details)	9 Months Ended	12 Months Ended
	Sep. 28, 2019	Dec. 29, 2018
Significant Accounting Policies
Length of fiscal year	364 days	364 days
Number of days in each fiscal quarter for 52-week fiscal year	91 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 Accounting Standards (Details) - USD ($) $ in Thousands	Dec. 30, 2018	Sep. 28, 2019	Dec. 29, 2018
Adoption of New Lease Accounting Standard
Operating lease right-of-use assets, Statement of Financial Position		us-gaap:OtherAssetsNoncurrent
Operating lease liabilities, Statement of Financial Position		us-gaap:OtherLiabilitiesCurrent us-gaap:LiabilitiesOtherThanLongtermDebtNoncurrent
Financial Statement Line Item
Prepaid expenses and other current assets		$ 52,609	$ 64,650
Other current liabilities		$ 71,485	$ 81,180
ASU 2016-02 - Leases
Adoption of New Lease Accounting Standard
Election of practical expedients package, leases	true
ASU 2016-02 - Leases \| Cumulative effect adjustment
Financial Statement Line Item
Prepaid expenses and other current assets	$ (481)
Other assets, net	18,166
Other current liabilities	3,516
Other non-current liabilities	$ 14,169

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Earnings Per Share
Net income	$ 20,181	$ 27,761	$ 9,550	$ 68,446
Shares used in computing basic earnings per share	43,358	43,256	43,311	43,177
Effect of dilutive securities:
Stock-based awards and convertible debt	1,276	938	809	958
Shares used in computing diluted earnings (loss) per share	44,634	44,194	44,120	44,135
Earnings (loss) per share:
Basic (in dollars per share)	$ 0.47	$ 0.64	$ 0.22	$ 1.59
Diluted (in dollars per share)	$ 0.45	$ 0.63	$ 0.22	$ 1.55
Shares attributable to dilutive effect of conversion of debt securities	600	200	300	200

Fair Value of Financial Instruments - Summary of financial instruments (Details) - USD ($) $ in Thousands	Sep. 28, 2019	Dec. 29, 2018
Financial assets and liabilities measured at fair value on a recurring basis
Total short-term investments	$ 457,879	$ 416,779
Recurring
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	133,363	103,148
Total short-term investments	457,879	416,779
Other assets, net	5,715	5,759
Total assets at fair value	596,957	525,686
Recurring \| Money market funds
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	128,072	74,990
Recurring \| Corporate debt securities
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	5,291	18,820
Total short-term investments	298,454	269,427
Recurring \| Government debt securities
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents		9,338
Total short-term investments	159,425	147,352
Recurring \| Auction rate securities
Financial assets and liabilities measured at fair value on a recurring basis
Other assets, net	5,715	5,759
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	128,072	84,328
Total short-term investments	80,686	48,141
Total assets at fair value	208,758	132,469
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	128,072	74,990
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
Total short-term investments	80,686	48,141
Recurring \| Significant Other Observable Inputs (Level 2)
Financial assets and liabilities measured at fair value on a recurring basis
Total cash equivalents	5,291	18,820
Total short-term investments	377,193	368,638
Total assets at fair value	382,484	387,458
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	5,291	18,820
Total short-term investments	298,454	269,427
Recurring \| Significant Other Observable Inputs (Level 2) \| Government debt securities
Financial assets and liabilities measured at fair value on a recurring basis
Total short-term investments	78,739	99,211
Recurring \| Significant Unobservable Inputs (Level 3)
Financial assets and liabilities measured at fair value on a recurring basis
Other assets, net	5,715	5,759
Total assets at fair value	5,715	5,759
Recurring \| Significant Unobservable Inputs (Level 3) \| Auction rate securities
Financial assets and liabilities measured at fair value on a recurring basis
Other assets, net	$ 5,715	$ 5,759

Fair Value of Financial Instruments - Available-for-sale investments (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 28, 2019	Dec. 29, 2018
Cost
Due in one year or less, Cost	$ 408,664
Due after one year through ten years, Cost	176,798
Due after ten years, Cost	10,300
Total Cost	595,762
Fair Value
Due in one year or less, Fair Value	409,445
Due after one year through ten years, Fair Value	177,497
Due after ten years, Fair Value	10,015
Total Fair Value	596,957
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months	80,178	$ 125,977
Fair value of available-for-sale securities, continuous loss position for twelve months or greater	35,192	170,765
Total fair value of available-for-sale securities, continuous loss position	115,370	296,742
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses	(130)	(283)
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses	(322)	(1,272)
Available-for-sale securities, total gross unrealized losses	(452)	(1,555)
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	23,804	13,278
Fair value of available-for-sale securities, continuous loss position for twelve months or greater	20,922	88,696
Total fair value of available-for-sale securities, continuous loss position	44,726	101,974
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses	(30)	(10)
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses	(35)	(583)
Available-for-sale securities, total gross unrealized losses	(65)	(593)
Corporate debt securities
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months	56,374	112,699
Fair value of available-for-sale securities, continuous loss position for twelve months or greater	8,555	76,310
Total fair value of available-for-sale securities, continuous loss position	64,929	189,009
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses	(100)	(273)
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses	(2)	(448)
Available-for-sale securities, total gross unrealized losses	(102)	(721)
Auction rate securities
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for twelve months or greater	5,715	5,759
Total fair value of available-for-sale securities, continuous loss position	5,715	5,759
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses	(285)	(241)
Available-for-sale securities, total gross unrealized losses	$ (285)	$ (241)

Fair Value of Financial Instruments - Auction rate securities (Details) - Auction rate securities - Significant Unobservable Inputs (Level 3) $ in Thousands	Sep. 28, 2019 USD ($) item Y	Jun. 29, 2019 USD ($)	Dec. 29, 2018 USD ($)
Weighted Average \| Estimated yield \| Discounted cash flow
Quantitative information for Level 3 Fair Value Measurements Assets
Unobservable Input	0.0359
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	0.0267
Recurring
Quantitative information for Level 3 Fair Value Measurements Assets
Fair value balance at the end of the period \| $	$ 5,715	$ 5,647	$ 5,759

Fair Value of Financial Instruments - Activity in Level 3 financial instruments (Details) - Significant Unobservable Inputs (Level 3) - Recurring - Auction rate securities - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 28, 2019	Sep. 28, 2019
Fair value assets reconciliation of changes
Balance at the beginning of the period	$ 5,647	$ 5,759
Gain (loss) included in other comprehensive income (loss)	68	(44)
Balance at the end of the period	$ 5,715	$ 5,715

Fair Value of Financial Instruments - Fair Values of Other Financial Instruments (Details) - USD ($) $ in Millions	Sep. 28, 2019	Dec. 29, 2018
Convertible Senior Notes
Fair values of other financial instruments
Fair value of debt	$ 518.7	$ 419.0

Derivative Financial Instruments (Details) - Foreign currency forward contracts $ in Millions	9 Months Ended
	Sep. 28, 2019 USD ($) contract
Non-designated Hedges
Derivative Financial Instruments
Number of foreign currency forward contracts held \| contract	1
Derivative, Notional Amount	$ 5.7
Cash flow hedges
Derivative Financial Instruments
Derivative, Notional Amount	$ 7.2
Cash flow hedges \| Low end of range
Derivative Financial Instruments
Maturity of contracts	1 month
Cash flow hedges \| High end of range
Derivative Financial Instruments
Maturity of contracts	11 months

Balance Sheet Details (Details) - USD ($) $ in Thousands	Sep. 28, 2019	Dec. 29, 2018
Inventories
Work in progress	$ 49,490	$ 50,983
Finished goods	21,963	23,989
Inventories	$ 71,453	$ 74,972

Acquisitions - Z-Wave (Details) $ in Millions	Apr. 18, 2018 USD ($)
Z-Wave
Acquisitions
Cash consideration	$ 243

Debt - Convertible Senior Notes (Details) $ / shares in Units, shares in Millions, $ in Millions	Mar. 06, 2017 USD ($) D $ / shares shares
1.375% Convertible Senior Notes
Debt
Principal amount \| $	$ 400.0
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
Debt issuance costs \| $	$ 10.6
1.375% Convertible Senior Notes \| Conversion of Notes, Holders
Debt
Number of trading days within 30 trading day period	20
Number of consecutive trading days	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
Number of consecutive trading days before the five consecutive business days	10
Maximum amount the sales price of the Company's stock exceeds the conversion price (as a percent)	98.00%
1.375% Convertible Senior Notes \| Conversion of Notes, Company
Debt
Number of trading days within 30 trading day period	20
Number of consecutive trading days	30
Minimum amount the sales price of the Company's stock exceeds the conversion price (as a percent)	130.00%
Amended Credit Agreement \| Credit Facility
Debt
Repayments of Lines of Credit \| $	$ 72.5

Debt - Carrying amount of Notes (Details) - 1.375% Convertible Senior Notes - USD ($) $ in Thousands	9 Months Ended
	Sep. 28, 2019	Dec. 29, 2018
Liability component
Principal	$ 400,000	$ 400,000
Unamortized debt discount	(30,582)	(39,298)
Unamortized debt issuance costs	(4,616)	(5,931)
Net carrying amount	364,802	354,771
Equity component
Net carrying amount	$ 57,735	$ 57,735
Effective interest rate	4.75%
Amortization period of debt discount and debt issuance costs	2 years 4 months 24 days

Debt - Interest expense (Details) - 1.375% Convertible Senior Notes - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Interest expense related to the Notes
Contractual interest expense	$ 1,360	$ 1,360	$ 4,110	$ 4,125
Amortization of debt discount	2,930	2,801	8,716	8,322
Amortization of debt issuance costs	442	423	1,315	1,256
Interest Expense, Total	$ 4,732	$ 4,584	$ 14,141	$ 13,703

Debt - Credit Facility (Details) - USD ($) $ in Millions		9 Months Ended
Debt - Credit Facility (Details) - USD ($) $ in Millions	Aug. 07, 2019	Sep. 28, 2019
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)		1.00%
Revolving credit facility, other than swingline loans \| Eurodollar Base Rate \| High end of range
Debt
Interest rate margin (as a percent)		1.75%
Revolving credit facility, other than swingline loans \| Base Rate \| Low end of range
Debt
Interest rate margin (as a percent)		0.00%
Revolving credit facility, other than swingline loans \| Base Rate \| High end of range
Debt
Interest rate margin (as a percent)		0.75%
Amended Credit Agreement \| Credit Facility \| Scenario: Company's option to increase borrowing capacity
Debt
Additional increase in borrowing capacity of the line of credit available at the entity's option	$ 250.0
Additional increase in borrowing capacity based on EBITDA (as a percent)	100.00%
Maximum secured leverage ratio	3.25
Amended Credit Agreement \| Credit Facility \| Scenario: Credit facility debt covenants
Debt
Maximum leverage ratio		4.25
Maximum secured leverage ratio		3.50
Minimum interest coverage ratio		2.50
Amended Credit Agreement \| Revolving Credit Facility
Debt
Maximum borrowing capacity	$ 400.0
Amended Credit Agreement \| Letter of Credit
Debt
Maximum borrowing capacity	25.0
Amended Credit Agreement \| Swingline Loans
Debt
Maximum borrowing capacity	$ 10.0

Leases - Supplemental Lease Information (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 28, 2019 USD ($)	Sep. 28, 2019 USD ($)
Leases
Operating lease costs	$ 1,400	$ 4,400
Balance Sheet Information
Operating lease right-of-use assets	17,276	17,276
Operating lease liabilities	$ 18,465	18,465
Cash Flow Information
Cash paid for operating lease liabilities		4,563
Right-of-use assets obtained in exchange for operating lease obligations		$ 2,488
Operating Lease Information
Weighted-average remaining lease term	4 years 8 months 12 days	4 years 8 months 12 days
Weighted-average discount rate	5.25%	5.25%

Leases - Maturities of operating lease liabilities (Details) $ in Thousands	Sep. 28, 2019 USD ($)
Maturities of operating lease liabilities
2019	$ 1,457
2020	5,419
2021	4,368
2022	3,668
2023	3,042
Thereafter	3,770
Total lease payments	21,724
Less imputed interest	(3,259)
Total lease liabilities	$ 18,465

Stockholders' Equity - Common Stock and Share Repurchase Program (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018	Oct. 31, 2018
Share Repurchase Programs
Value of shares repurchased and retired	$ 20,876	$ 26,716	$ 24,272
Common Stock
Common Stock
Number of shares issued during the period		600
Share Repurchase Programs
Number of shares repurchased and retired	221	301	257
Program Authorization Date October 2017
Share Repurchase Programs
Program amount authorized to repurchase				$ 200,000
Program Authorization Date October 2017 \| Common Stock
Share Repurchase Programs
Number of shares repurchased and retired		300	300
Value of shares repurchased and retired		$ 26,700	$ 24,300

Stockholders' Equity - Reclassified from AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Amounts Reclassified from AOCI
Operating expenses	$ (110,270)	$ (110,497)	$ (333,545)	$ (324,310)
Income before income taxes	21,866	22,307	38,031	59,063
Income tax expense (benefit)	1,685	(5,454)	28,481	(9,383)
Net income	20,181	27,761	9,550	68,446
Reclassifications From Accumulated Other Comprehensive Income (Loss)
Amounts Reclassified from AOCI
Income before income taxes	14	(131)	(417)	(213)
Income tax expense (benefit)	3	(28)	(88)	(45)
Net income	11	(103)	(329)	(168)
Reclassifications From Accumulated Other Comprehensive Income (Loss) \| Gains (losses) on available-for-sales securities
Amounts Reclassified from AOCI
Interest income and other, net	188		188	(49)
Reclassifications From Accumulated Other Comprehensive Income (Loss) \| Losses on cash flow hedges
Amounts Reclassified from AOCI
Operating expenses	$ (174)	$ (131)	$ (605)	$ (164)

Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Revenues (Details) - USD ($) $ in Thousands	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Revenues
Revenues	$ 223,294	$ 230,243	$ 618,116	$ 652,733
Revenue from performance obligations	14,100	15,500	16,900	23,900
Distributors
Revenues
Revenues	163,556	166,082	448,864	470,385
Direct customers
Revenues
Revenues	59,738	64,161	169,252	182,348
Internet of Things
Revenues
Revenues	129,403	125,390	360,488	344,504
Infrastructure
Revenues
Revenues	45,150	52,554	134,824	153,494
Broadcast
Revenues
Revenues	34,100	36,081	86,695	106,318
Access
Revenues
Revenues	$ 14,641	$ 16,218	$ 36,109	$ 48,417

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Stock-Based Compensation (Details) - USD ($) $ in Thousands	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Stock-based compensation costs
Stock based compensation costs	$ 13,788	$ 12,582	$ 40,042	$ 36,893
Income tax benefit	817	619	1,951	7,515
Share based compensation costs after tax	12,971	11,963	38,091	29,378
Total unrecognized compensation costs related to awards	69,100		$ 69,100
Weighted-average period of recognition of unrecognized compensation costs			2 years 2 months 12 days
Cost of revenues
Stock-based compensation costs
Stock based compensation costs	344	324	$ 989	914
Research and development
Stock-based compensation costs
Stock based compensation costs	6,474	6,016	19,030	17,454
Selling, general and administrative
Stock-based compensation costs
Stock based compensation costs	$ 6,970	$ 6,242	$ 20,023	$ 18,525

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Income Taxes
Provision (benefit) for income taxes	$ 1,685	$ (5,454)	$ 28,481	$ (9,383)
Effective income tax rate (as a percent)	7.70%	(24.40%)	74.90%	(15.90%)
Discrete income tax expense	$ 28,100
Gross unrecognized tax benefits	2,400		$ 2,400
Gross unrecognized tax benefits which would affect the effective tax rate if recognized	$ 1,900		1,900
Unrecognized tax benefits as a result of a lapse in the statute of limitations			200
Norwegian \| 2013
Income Taxes
Adjustment to the pricing of the intercompany transaction			$ 15,600