0001104659-21-011613 | 10-K | XBRL Viewer

Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Jan. 02, 2021	Jan. 25, 2021	Jul. 02, 2020
Document and Entity Information
Entity Registrant Name	SILICON LABORATORIES INC.
Document Type	10-K
Document Annual Report	true
Document Period End Date	Jan. 02, 2021
Document Transition Report	false
Entity File Number	000-29823
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	74-2793174
Entity Address, Address Line One	400 West Cesar Chavez
Entity Address, City or Town	Austin
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78701
City Area Code	512
Local Phone Number	416-8500
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	SLAB
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 4.2
Entity Common Stock, Shares Outstanding		43,925,156
Entity Central Index Key	0001038074
Current Fiscal Year End Date	--01-02
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false

Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 02, 2021	Dec. 28, 2019
Current assets:
Cash and cash equivalents	$ 202,720	$ 227,146
Short-term investments	521,963	498,825
Accounts receivable, net	95,169	75,639
Inventories	66,662	73,057
Prepaid expenses and other current assets	89,307	69,192
Total current assets	975,821	943,859
Property and equipment, net	139,439	135,939
Goodwill	631,932	398,402
Other intangible assets, net	166,084	134,279
Other assets, net	80,211	62,374
Total assets	1,993,487	1,674,853
Current liabilities:
Accounts payable	54,949	38,899
Current portion of convertible debt, net	134,480
Deferred revenue and returns liability	12,986	19,251
Other current liabilities	82,083	79,551
Total current liabilities	284,498	137,701
Convertible debt, net	428,945	368,257
Other non-current liabilities	80,203	53,844
Total liabilities	793,646	559,802
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; 43,925 and 43,496 shares issued and outstanding at January 2, 2021 and December 28, 2019, respectively	4	4
Additional paid-in capital	204,359	133,793
Retained earnings	993,664	980,608
Accumulated other comprehensive income	1,814	646
Total stockholders' equity	1,199,841	1,115,051
Total liabilities and stockholders' equity	$ 1,993,487	$ 1,674,853

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Jan. 02, 2021	Dec. 28, 2019
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	43,925	43,496
Common stock, shares outstanding	43,925	43,496

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Consolidated Statements of Income
Revenues	$ 886,677	$ 837,554	$ 868,267
Costs of revenues	359,151	327,270	346,868
Gross profit	527,526	510,284	521,399
Operating expenses:
Research and development	287,887	257,150	238,347
Selling, general and administrative	201,339	196,437	197,844
Operating expenses	489,226	453,587	436,191
Operating income	38,300	56,697	85,208
Other income (expense):
Interest income and other, net	11,143	13,185	6,647
Interest expense	(34,142)	(20,233)	(19,694)
Income before income taxes	15,301	49,649	72,161
Provision (benefit) for income taxes	2,770	30,384	(11,430)
Net income	$ 12,531	$ 19,265	$ 83,591
Earnings per share:
Basic (in dollars per share)	$ 0.29	$ 0.44	$ 1.94
Diluted (in dollars per share)	$ 0.28	$ 0.43	$ 1.90
Weighted-average common shares outstanding:
Basic (in shares)	43,775	43,346	43,159
Diluted (in shares)	44,372	44,290	44,044

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Consolidated Statements of Comprehensive Income
Net income	$ 12,531	$ 19,265	$ 83,591
Net changes to available-for-sale securities:
Unrealized gains arising during the period	1,131	2,564	376
Reclassification for (gains) losses included in net income	(510)	(218)	49
Net changes to cash flow hedges:
Unrealized gains (losses) arising during the period	33	(321)	(953)
Reclassification for losses included in net income	825	784	316
Other comprehensive income (loss), before tax	1,479	2,809	(212)
Provision (benefit) for income taxes	311	589	(45)
Other comprehensive income (loss)	1,168	2,220	(167)
Comprehensive income	$ 13,699	$ 21,485	$ 83,424

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings Cumulative effect of adoption of accounting standard	Retained Earnings	Accumulated Other Comprehensive Income (Loss) Cumulative effect of adoption of accounting standard	Accumulated Other Comprehensive Income (Loss)	Cumulative effect of adoption of accounting standard	Total
Balance at Dec. 30, 2017	$ 4	$ 102,862	$ 26,445	$ 851,307	$ (250)	$ (1,157)	$ 26,195	$ 953,016
Balance (in shares) at Dec. 30, 2017	42,707
Increase (Decrease) in Stockholders' Equity
Net income				83,591				83,591
Other comprehensive (loss) income						(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		(39,276)						(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
Increase (Decrease) in Stockholders' Equity
Net income				19,265				19,265
Other comprehensive (loss) income						2,220		2,220
Stock issuances, net of shares withheld for taxes		(1,799)						(1,799)
Stock issuances, net of shares withheld for taxes (in shares)	709
Repurchases of common stock		(26,716)						(26,716)
Repurchases of common stock (in shares)	(301)
Stock-based compensation		54,791						54,791
Balance at Dec. 28, 2019	$ 4	133,793	$ 525	980,608		646	$ 525	$ 1,115,051
Balance (in shares) at Dec. 28, 2019	43,496							43,496,000
Increase (Decrease) in Stockholders' Equity
Net income				12,531				$ 12,531
Other comprehensive (loss) income						1,168		1,168
Stock issuances, net of shares withheld for taxes		(3,109)						(3,109)
Stock issuances, net of shares withheld for taxes (in shares)	639
Repurchases of common stock		(16,287)						(16,287)
Repurchases of common stock (in shares)	(210)
Stock-based compensation		60,065						60,065
Convertible debt activity		29,897						29,897
Balance at Jan. 02, 2021	$ 4	$ 204,359		$ 993,664		$ 1,814		$ 1,199,841
Balance (in shares) at Jan. 02, 2021	43,925							43,925,000

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Operating Activities
Net income	$ 12,531	$ 19,265	$ 83,591
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation of property and equipment	17,780	16,883	15,912
Amortization of other intangible assets and other assets	44,733	39,584	44,102
Amortization of debt discount and debt issuance costs	21,433	13,485	12,892
Loss on extinguishment of convertible debt	4,060
Stock-based compensation expense	60,091	54,799	50,077
Deferred income taxes	(6,533)	23,048	(8,210)
Changes in operating assets and liabilities:
Accounts receivable	(17,612)	(2,401)	3,931
Inventories	10,748	2,171	7,660
Prepaid expenses and other assets	(51,839)	8,965	(4,960)
Accounts payable	15,263	7,830	5,952
Other current liabilities and income taxes	3,257	(6,826)	(21,828)
Deferred revenue and returns liability	(6,694)	(3,243)	(6,202)
Other non-current liabilities	28,500	(7,038)	(9,375)
Net cash provided by operating activities	135,718	166,522	173,542
Investing Activities
Purchases of available-for-sale investments	(519,567)	(424,524)	(395,904)
Sales and maturities of available-for-sale investments	497,357	344,937	474,129
Purchases of property and equipment	(20,422)	(16,279)	(24,462)
Purchases of other assets	(1,570)	(8,396)	(11,063)
Acquisitions of businesses, net of cash acquired	(316,809)	(2,510)	(239,729)
Net cash used in investing activities	(361,011)	(106,772)	(197,029)
Financing Activities
Proceeds from issuance of debt	845,000
Payments on debt	(624,737)	(1,132)
Repurchases of common stock	(16,287)	(26,716)	(39,276)
Payment of taxes withheld for vested stock awards	(18,124)	(16,295)	(19,483)
Proceeds from the issuance of common stock	15,015	14,496	13,303
Payment of acquisition-related contingent consideration			(3,380)
Net cash provided by (used in) financing activities	200,867	(29,647)	(48,836)
Increase (decrease) in cash and cash equivalents	(24,426)	30,103	(72,323)
Cash and cash equivalents at beginning of period	227,146	197,043	269,366
Cash and cash equivalents at end of period	202,720	227,146	197,043
Supplemental Disclosure of Cash Flow Information:
Interest paid	8,662	6,367	6,227
Income taxes paid	$ 7,217	$ 10,291	$ 20,599

Description of Business

12 Months Ended

Jan. 02, 2021

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

Jan. 02, 2021

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 2020 had 53 weeks with the extra week occurring in the first quarter of the year and ended on January 2, 2021. Fiscal 2019 and 2018 had 52 weeks and ended on December 28, 2019 and December 29, 2018, 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 Financial Instruments Accounting Standard

The Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, on December 29, 2019, the first day of its fiscal year ended January 2, 2021. The adoption did not have a material impact on its financial statements.

2. Significant Accounting Policies (Continued)

Fair Value of Financial Instruments

The fair values of the Company's financial instruments are recorded using a hierarchical disclosure framework based upon the level of subjectivity of the inputs used in measuring assets and liabilities. The three levels are described below:

Level 1 - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.

Level 2 - Inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 - Inputs are unobservable for the asset or liability and are developed based on the best information available in the circumstances, which might include the Company’s own data.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash deposits, certificates of deposit, money market funds and investments in debt securities with original maturities of ninety days or less when purchased.

Investments

The Company's investments typically have original maturities greater than ninety days as of the date of purchase and are classified as either available-for-sale or trading securities. Investments in available-for-sale securities are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive income (loss) in the Consolidated Balance Sheet. Investments in trading securities are reported at fair value, with both realized and unrealized gains and losses recorded in interest income and other, net in the Consolidated Statement of Income. Investments in which the Company has the ability and intent, if necessary, to liquidate in order to support its current operations (including those with contractual maturities greater than one year from the date of purchase) are classified as short-term.

The Company reviews its available-for-sale investments as of the end of each reporting period for declines in fair value based on the specific identification method. The Company records an allowance for credit loss when a decline in fair value is due to credit-related factors. The Company considers various factors in determining whether an investment is impaired, including the severity of the impairment, changes in underlying credit ratings, forecasted recovery, its intent to sell or the likelihood that it would be required to sell the investment before its anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. When the Company concludes that a credit-related impairment has occurred, the Company assesses whether it intends to sell the security or if it is more likely than not that it will be required to sell the security before recovery. If either of these two conditions is met, the Company recognizes a charge in earnings equal to the entire difference between the security’s amortized cost basis and its fair value. If the Company does not intend to sell a security and it is not more likely than not that it will be required to sell the security before recovery, the unrealized loss is separated into an amount representing the credit loss, which is recognized in earnings, and the amount related to all other factors, which is recorded in accumulated other comprehensive income (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. The Company periodically reviews its equity investments for declines in fair value based on the specific identification method and writes down investments to their fair values when it determines that a decline has occurred.

2. Significant Accounting Policies (Continued)

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 fifteen years. Leasehold improvements are depreciated over the lease term or their useful life, whichever is shorter.

The Company owns the facilities for its headquarters in Austin, Texas. The buildings are located on land which is leased through 2099 from a third party. The rents for these ground leases were prepaid for the term of the leases. The buildings and leasehold interest in ground leases are being depreciated on a straight-line basis over their estimated useful lives of 40 years and 86 years, respectively.

Business Combinations

The Company records business combinations using the acquisition method of accounting and, accordingly, allocates the fair value of acquisition consideration to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of the assets acquired and liabilities assumed is recorded as goodwill. The results of operations of the businesses acquired are included in the Company's consolidated results of operations beginning on the date of the acquisition.

Long-Lived Assets

Purchased intangible assets are stated at cost, net of accumulated amortization, and are amortized using the straight-line method over their estimated useful lives, ranging from two 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.

2. Significant Accounting Policies (Continued)

Long-lived assets “held and used” by the Company are reviewed for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets and is recorded in the period in which the determination was made.

The Company tests goodwill for impairment annually as of the first day of its fourth fiscal quarter and in interim periods if events occur that would indicate that the carrying value of goodwill may be impaired. The Company assesses goodwill for impairment by comparing the fair value of the reporting unit to its carrying amount. In determining fair value, several valuation methodologies are allowed, although quoted market prices are the best evidence of fair value. If the fair value of the reporting unit is less than its carrying amount, an impairment loss is recognized equal to that excess amount.

Leases

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. The Company has opted to not disclose the amount of unsatisfied performance obligations as these contracts have original expected durations of less than one year.

The transaction price reflects the Company’s expectations about the consideration it will be entitled to receive from the customer and may include fixed or variable amounts. Variable consideration primarily includes sales made to distributors under agreements allowing certain rights of return, referred to as stock rotation, and credits issued to the distributor due to price protection. The Company estimates variable consideration at the most likely amount to which it expects to be entitled. The estimate is based on information available to the Company, including recent sales activity and pricing data. The Company applies a constraint to its variable consideration estimate which considers both the likelihood of a return and the amount of a potential price concession. Variable consideration that does not meet revenue recognition criteria is deferred. The Company records a right of return asset in prepaid expenses and other current assets for the costs of distributor inventory not meeting revenue recognition criteria. A corresponding deferred revenue and returns liability amount is recorded for unrecognized revenue associated with such costs. The Company’s products carry a one-year replacement warranty. Payments are typically due within 30 days of invoicing and do not include a significant financing component.

2. Significant Accounting Policies (Continued)

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 15, 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 not material for any of the periods presented.

Income Taxes

The Company accounts for income taxes using the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax laws and related rates that will be in effect when the differences are expected to reverse. These differences result in deferred tax assets and liabilities, which are included in the Company’s Consolidated Balance 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 August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40). This ASU simplifies the accounting for certain convertible instruments, amends the guidance on derivative scope exceptions for contracts in an entity's own equity and requires the use of the if-converted method for calculating diluted earnings per share. The ASU removes separation models for convertible debt with a cash conversion feature. Such convertible instruments will be accounted for as a single liability measured at amortized cost, as long as no other features require bifurcation and recognition as derivatives. This ASU is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years, using one of two retrospective transition methods. Early adoption is permitted for fiscal periods beginning after December 15, 2020. The Company expects the primary impacts of this new standard will be to potentially increase the carrying value of its convertible debt and reduce its reported interest expense. In addition, should the Company be required to use the if-converted method for calculating diluted earnings per share, the number of shares used in such calculation could potentially increase. The Company will continue to evaluate the effect that the adoption of this ASU will have on its financial statements.

Earnings Per Share

12 Months Ended

Jan. 02, 2021

Earnings Per Share

Earnings Per Share

3. Earnings Per Share

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


	Year Ended
	January 2,		December 28,		December 29,
	2021		2019		2018
Net income	$	12,531	$	19,265	$	83,591

Shares used in computing basic earnings per share		43,775		43,346		43,159

Effect of dilutive securities:
Stock-based awards and convertible debt		597		944		885
Shares used in computing diluted earnings per share		44,372		44,290		44,044

Earnings per share:
Basic	$	0.29	$	0.44	$	1.94
Diluted	$	0.28	$	0.43	$	1.90

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 2020, 2019 and 2018, approximately 0.2 million shares, 0.4 million shares and 0.1 million shares, respectively, 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

Jan. 02, 2021

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 January 2, 2021 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	$	75,606	$	—	$	—	$	75,606
Corporate debt securities		—		14,995		—		14,995
Government debt securities		2,355		2,564		—		4,919
Total cash equivalents	$	77,961	$	17,559	$	—	$	95,520

Short-term investments:
Government debt securities	$	38,461	$	104,112	$	—	$	142,573
Corporate debt securities		—		379,390		—		379,390
Total short-term investments	$	38,461	$	483,502	$	—	$	521,963

Other assets, net:
Auction rate securities	$	—	$	—	$	5,340	$	5,340
Total	$	—	$	—	$	5,340	$	5,340

Total	$	116,422	$	501,061	$	5,340	$	622,823

4. Fair Value of Financial Instruments (Continued)


	Fair Value Measurements
	at December 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	$	92,379	$	—	$	—	$	92,379
Corporate debt securities		—		1,325		—		1,325
Total cash equivalents	$	92,379	$	1,325	$	—	$	93,704

Short-term investments:
Government debt securities	$	85,189	$	86,682	$	—	$	171,871
Corporate debt securities		—		326,954		—		326,954
Total short-term investments	$	85,189	$	413,636	$	—	$	498,825

Other assets, net:
Auction rate securities	$	—	$	—	$	5,647	$	5,647
Total	$	—	$	—	$	5,647	$	5,647

Total	$	177,568	$	414,961	$	5,647	$	598,176

Valuation methodology

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

Available-for-sale investments

The Company's investments are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive income in the Consolidated Balance Sheet. The following summarizes the contractual underlying maturities of the Company’s available-for-sale investments at January 2, 2021 (in thousands):


			Fair
	Cost		Value
Due in one year or less	$	380,069	$	381,219
Due after one year through ten years		202,363		203,484
Due after ten years		38,780		38,120
	$	621,212	$	622,823

4. Fair Value of Financial Instruments (Continued)

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 January 2, 2021	Value		Losses		Value		Losses		Value		Losses
Government debt securities	$	10,146	$	(5)	$	—	$	—	$	10,146	$	(5)
Corporate debt securities		51,909		(74)		—		—		51,909		(74)
Auction rate securities		—		—		5,340		(660)		5,340		(660)
	$	62,055	$	(79)	$	5,340	$	(660)	$	67,395	$	(739)


	Less Than 12 Months				12 Months or Greater				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
As of December 28, 2019	Value		Losses		Value		Losses		Value		Losses
Government debt securities	$	11,947	$	(19)	$	7,183	$	(7)	$	19,130	$	(26)
Corporate debt securities		68,116		(81)		20		—		68,136		(81)
Auction rate securities		—		—		5,647		(353)		5,647		(353)
	$	80,063	$	(100)	$	12,850	$	(360)	$	92,913	$	(460)

The gross unrealized losses as of January 2, 2021 and December 28, 2019 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 records an allowance for credit loss when a decline in investment market value is due to credit-related factors. When evaluating an investment for impairment, the Company reviews factors such as the severity of the impairment, changes in underlying credit ratings, forecasted recovery, the Company’s intent to sell or the likelihood that it would be required to sell the investment before its anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. As of January 2, 2021, there were no material declines in the market value of available-for-sale investments due to credit-related factors.

At January 2, 2021 and December 28, 2019, 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
January 2, 2021				Weighted
(000s)		Valuation Technique	Unobservable Input	Average
$	5,340	Discounted cash flow	Estimated yield	1.56	%

			Expected holding period	10 years

			Estimated discount rate	2.09	%

4. Fair Value of Financial Instruments (Continued)

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 January 2, 2021 and December 28, 2019 (in thousands):

Assets


	Year Ended
	January 2,		December 28,
Auction Rate Securities	2021		2019
Beginning balance	$	5,647	$	5,759
Losses included in other comprehensive income (loss)		(307)		(112)
Ending balance	$	5,340	$	5,647

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 January 2, 2021 and December 28, 2019, the fair value of the 1.375% convertible senior notes was $194.8 million and $524.0 million, respectively. The fair value of the 0.625% convertible senior notes as of January 2, 2021 was $671.4 million.

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

- Definition

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

+ References + Details

Derivative Financial Instruments

12 Months Ended

Jan. 02, 2021

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 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 Euro, Norwegian Krone and Hungarian Forint. As of January 2, 2021, the contracts had maturities of one to twelve months and an aggregate notional value of $29.3 million. Gains expected to be reclassified into earnings in the next twelve months were not material. The fair value of the contracts, contract gains or losses recognized in other comprehensive income (loss) and amounts reclassified from accumulated other comprehensive income (loss) into earnings were not material for any of the periods presented.

5. Derivative Financial Instruments (Continued)

Interest Rate Swaps

The Company entered into an interest rate swap agreement with an original notional value of $310 million in connection with borrowing from its credit facility on March 27, 2020. The Company terminated the swap agreement on June 1, 2020 in connection with the repayment in full of its credit facility. The termination of the swap agreement resulted in the reclassification of $0.4 million of unrealized losses that were previously recorded in accumulated other comprehensive income (loss) into earnings.

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 January 2, 2021, the Company held two foreign currency forward contracts denominated in Singapore Dollars with a notional value of $11.9 million. The fair value of foreign contracts and contract losses recognized in income were not material for any of the periods presented.

Balance Sheet Details

12 Months Ended

Jan. 02, 2021

Balance Sheet Details

Balance Sheet Details

6. Balance Sheet Details

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

Inventories


	January 2,		December 28,
	2021		2019
Work in progress	$	56,165	$	52,350
Finished goods		10,497		20,707
	$	66,662	$	73,057

Prepaid Expenses and Other Current Assets


	January 2,		December 28,
	2021		2019
Distributor advances	$	51,190	$	38,485
Other		38,117		30,707
	$	89,307	$	69,192

6. Balance Sheet Details (Continued)

Property and Equipment


	January 2,		December 28,
	2021		2019
Buildings and improvements	$	118,331	$	112,673
Equipment		71,225		65,843
Computers and purchased software		46,727		45,879
Leasehold interest in ground leases		23,840		23,840
Leasehold improvements		9,054		8,782
Furniture and fixtures		8,882		8,291
		278,059		265,308
Accumulated depreciation		(138,620)		(129,369)
	$	139,439	$	135,939

Other Current Liabilities


	January 2,		December 28,
	2021		2019
Accrued compensation and benefits	$	46,633	$	41,138
Other		35,450		38,413
	$	82,083	$	79,551

Risks and Uncertainties

12 Months Ended

Jan. 02, 2021

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. Treasury bills, U.S. government securities, agency securities, asset-back securities, commercial paper and auction-rate securities. 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 distributors:


	January 2,		December 28,
	2021		2019
Arrow Electronics	28	%	14	%
Edom Technology	21	%	17	%
Other	*		11	%

* Less than 10% of accounts receivable

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

The Company holds three notes receivable from a privately held company. The total carrying value of the notes was $1.6 million as of January 2, 2021. The Company holds an equity investment in another privately held company. The investment is accounted for using the equity method and had a carrying value of $10.1 million as of January 2, 2021. The notes receivable and the investment were recorded in other assets, net in the Consolidated Balance Sheet.

7. Risks and Uncertainties (Continued)

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 accounted for greater than 10% of revenue during fiscal 2020, 2019 or 2018. The Company’s distributors that accounted for greater than 10% of revenue consisted of the following:


	Year Ended
	January 2,		December 28,		December 29,
	2021		2019		2018
Arrow Electronics	26	%	26	%	21	%
Edom Technology	20	%	20	%	17	%
Sekorm	11	%	*		*

*	Less than 10% of revenue

Acquisition

12 Months Ended

Jan. 02, 2021

Acquisition

Acquisition

8. Acquisition

Redpine Signals

On April 28, 2020, the Company acquired the Wi-Fi and Bluetooth business of Redpine Signals. The Company believes the acquisition will accelerate its roadmap for Wi-Fi and Bluetooth silicon and software solutions. The purchase price 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):


			Weighted-Average
			Amortization Period
	Amount		(Years)
Intangible assets:
In-process research and development	$	11,753	Not amortized
Developed technology		61,674	8
Customer relationships		2,450	2
Trademarks		661	2
		76,538

Accounts receivable		1,395
Inventory		4,375
Other current assets		1,251
Goodwill		233,530
Other non-current assets		673
Current liabilities		(856)
Non-current liabilities		(97)
Total purchase price	$	316,809

In-process research and development (IPR&D) represents Wi-Fi and Bluetooth technology that had not achieved technological feasibility 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 13.8%, which reflects the risks related to the projects.

Pro forma information related to this acquisition has not been presented because it would not be materially different from amounts reported. The Company recorded approximately $1.5 million of acquisition-related costs in selling, general and administrative expenses during fiscal 2020.

Goodwill and Other Intangible Assets

12 Months Ended

Jan. 02, 2021

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 January 2, 2021 and December 28, 2019 (in thousands):


	Year Ended
	January 2,		December 28,
	2021		2019
Beginning balance	$	398,402	$	397,344
Additions due to business combinations		233,530		1,058
Ending balance	$	631,932	$	398,402

Other Intangible Assets

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


	Weighted-Average
	Amortization	January 2, 2021				December 28, 2019
	Period	Gross		Accumulated		Gross		Accumulated
	(Years)	Amount		Amortization		Amount		Amortization
Subject to amortization:
Developed technology	8	$	261,939	$	(125,435)	$	219,695	$	(111,634)
Customer relationships	5		43,245		(31,877)		40,795		(22,742)
Trademarks	5		12,771		(6,312)		12,310		(4,145)
	8		317,955		(163,624)		272,800		(138,521)

Not subject to amortization:
In-process research and development	Not amortized		11,753		—		—		—

Total intangible assets		$	329,708	$	(163,624)	$	272,800	$	(138,521)

Gross intangible assets increased $76.5 million in fiscal 2020 due to assets acquired from Redpine Signals. This increase was offset by $19.6 million for the removal of fully amortized assets.

Amortization expense related to intangible assets for fiscal 2020, 2019 and 2018 was $44.7 million, $39.5 million and $38.0 million, respectively. Research and development expense included intangible asset amortization expense of $33.2 million, $29.5 million and $27.3 million in fiscal 2020, 2019 and 2018, respectively. Selling, general and administrative expense included intangible asset amortization expense of $11.5 million, $10.0 million and $10.7 million in fiscal 2020, 2019 and 2018, respectively. There was no intangible asset amortization expense recorded in cost of revenues in any of the periods presented. 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
2021	$	44,358
2022		33,046
2023		24,324
2024		21,864
2025		12,200

Debt

12 Months Ended

Jan. 02, 2021

Debt

Debt

10. Debt

0.625% Convertible Senior Notes

On June 1, 2020, the Company completed a private offering of $535 million principal amount convertible senior notes (the “2025 Notes”). The 2025 Notes bear interest semi-annually at a rate of 0.625% per year and mature on June 15, 2025. The Company used $310.0 million of the proceeds to repay in full the outstanding balance under its credit facility and the remainder of the proceeds, along with cash on hand, to repurchase approximately $236.8 million aggregate principal amount of its outstanding 1.375% convertible senior notes.

The 2025 Notes are convertible at an initial conversion rate of 8.1498 shares of common stock per $1,000 principal amount of the 2025 Notes, or approximately 4.4 million shares of common stock, which is equivalent to a conversion price of approximately $122.70 per share. The conversion rate is subject to adjustment under certain circumstances. Holders may convert the 2025 Notes under the following circumstances: during any calendar quarter after the calendar quarter ended on September 30, 2020 if the closing price of the Company’s common stock for at least 20 trading days in the 30 consecutive trading days ending on the last trading day of the preceding calendar quarter is greater than or equal to $159.51 per share, representing 130% of the conversion price of the 2025 Notes; 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 March 15, 2025. The Company may redeem all or any portion of the 2025 Notes, at its option, on or after June 20, 2023, if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days during any 30 consecutive trading day period. Upon conversion, the 2025 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 Company incurred debt issuance costs of approximately $10.4 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 2025 Notes using the effective interest method.

1.375% Convertible Senior Notes

On March 6, 2017, the Company completed a private offering of $400 million principal amount convertible senior notes (the “2022 Notes”). The Notes bear interest semi-annually at a rate of 1.375% per year and mature on March 1, 2022.

The 2022 Notes are convertible at an initial conversion rate of 10.7744 shares of common stock per $1,000 principal amount of the 2022 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 2022 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 $120.66 per share, representing 130% of the conversion price of the 2022 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 2022 Notes are called for redemption; or at any time after December 1, 2021. The Company may redeem all or any portion of the 2022 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 2022 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.

10. Debt (continued)

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 2022 Notes using the effective interest method.

During fiscal 2020, the Company paid $305.1 million in cash to repurchase $259.4 million aggregate principal amount of the 2022 Notes. The Company recognized a loss on debt extinguishment of $4.1. million during fiscal 2020, which was recorded in interest expense in the Consolidated Statements of Income. On January 6, 2021, the Company issued a notice of redemption for the remaining $140.6 million principal amount of the 2022 Notes. The redemption will occur on March 22, 2021, unless earlier converted.

The principal balances of the notes were separated into liability and equity components, and recorded initially at fair value. The excess of the principal amounts of the liability components over their carrying amounts represent the debt discount, which are amortized to interest expense over the term of the notes using the effective interest method. The carrying amounts of the liability components was estimated by discounting the contractual cash flows of similar non-convertible debt at an appropriate market rate at the date of issuance.

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


	January 2,		December 28,
	2021		2019
Liability component
Principal	$	675,567	$	400,000
Unamortized debt discount		(103,953)		(27,580)
Unamortized debt issuance costs		(8,189)		(4,163)
Net carrying amount	$	563,425	$	368,257

Equity component
Net carrying amount	$	108,438	$	57,735

The liability components of the notes are recorded in convertible debt on the Consolidated Balance Sheet. The equity components of the notes are recorded in additional paid-in capital. The effective interest rate for the liability component was 5.336% for the 2025 Notes and 4.75% for the 2022 Notes. As of January 2, 2021, the remaining period over which the debt discount and debt issuance costs will be amortized was 4.5 years for the 2025 Notes and 0.2 years for the 2022 Notes.

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


	Year Ended
	January 2,		December 28,		December 29,
	2021		2019		2018
Contractual interest expense	$	5,530	$	5,485	$	5,500
Amortization of debt discount		19,375		11,717		11,202
Amortization of debt issuance costs		2,058		1,768		1,690
	$	26,963	$	18,970	$	18,392

Credit Facility

The Company and certain of its domestic subsidiaries (the “Guarantors”) have 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. On March 27, 2020, the Company borrowed $310 million under the credit facility. On June 1, 2020, the Company repaid in full the outstanding balance of the credit facility.

10. Debt (continued)

The 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 net leverage ratio (funded indebtedness/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 January 2, 2021, 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

12 Months Ended

Jan. 02, 2021

Leases

Leases

11. Leases

The Company leases certain facilities under operating lease agreements that expire at various dates through 2030. Some of these arrangements contain renewal options and require the Company to pay taxes, insurance and maintenance costs.

The Company adopted ASC Topic 842, Leases, on December 30, 2018, the first day of its fiscal 2019. Lease costs for operating leases were $5.6 million and $5.8 million during fiscal 2020 and 2019, respectively. The Company elected the practical expedient to not provide comparable presentation for periods prior to adoption. Rent expense for operating leases was $6.0 million for fiscal 2018.

Supplemental Lease Information


	January 2,		December 28,
Balance Sheet Information (in thousands)	2021		2019
Operating lease right-of-use assets	$	28,213	$	16,086
Operating lease liabilities	$	29,900	$	17,894


	Year Ended
	January 2,		December 28,
Cash Flow Information (in thousands)	2021		2019
Cash paid for operating lease liabilities	$	5,942	$	6,023
Right-of-use assets obtained in exchange for operating lease obligations	$	16,711	$	2,631


	January 2,		December 28,
Operating Lease Information	2021		2019
Weighted-average remaining lease term	6.5 years		4.5 years
Weighted-average discount rate	4.37	%	5.26	%

11. Leases (Continued)

The maturities of operating lease liabilities as of January 2, 2021 were as follows (in thousands):


Fiscal Year
2021	$	6,787
2022		6,174
2023		5,367
2024		4,874
2025		3,278
Thereafter		8,421
Total lease payments		34,901
Less imputed interest		(5,001)
Total lease liabilities	$	29,900

Commitments and Contingencies

12 Months Ended

Jan. 02, 2021

Commitments and Contingencies

Commitments and Contingencies

12. Commitments and Contingencies

Investment Commitment

The Company has committed to invest up to $10.0 million in a limited partnership, of which approximately $7.8 million was funded through January 2, 2021.

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

12 Months Ended

Jan. 02, 2021

Stockholders' Equity

Stockholders' Equity

13. Stockholders’ Equity

Common Stock

The Company issued 0.6 million shares of common stock during fiscal 2020.

Share Repurchase Programs

In April 2020, the Board of Directors terminated the Company’s existing share repurchase program, effective immediately, which had an authorization amount of $200 million and a termination date of December 2020. The Company repurchased 0.2 million shares, 0.3 million shares and 0.4 million shares of its common stock for $16.3 million, $26.7 million and $39.3 million during fiscal 2020, 2019 and 2018, respectively. These shares were retired upon repurchase.

Revenues

12 Months Ended

Jan. 02, 2021

Revenues

Revenues

14. Revenues

The Company groups its revenues into two 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
	January 2,		December 28,		December 29,
	2021		2019		2018
Internet of Things	$	513,670	$	488,156	$	463,838
Infrastructure and automotive		373,007		349,398		404,429
	$	886,677	$	837,554	$	868,267

14. Revenues (Continued)

The Company has combined its previous product groups, Infrastructure, Broadcast and Access, into the Infrastructure and automotive product group. Prior periods were retrospectively 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 $17.7 million, $17.6 million and $24.3 million during fiscal 2020, 2019 and 2018, respectively, from performance obligations that were satisfied in previous reporting periods.

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


		Year Ended
	January 2,		December 28,		December 29,
	2021		2019		2018
Distributors	$	696,019	$	610,410	$	618,989
Direct customers		190,658		227,144		249,278
	$	886,677	$	837,554	$	868,267

The Company periodically reviews the assumptions used to estimate consideration it will be entitled to receive from customers. In fiscal 2020, the Company adjusted certain assumptions used to estimate the constraint on variable consideration based on an analysis of prior period estimates versus actual experience. These updated assumptions and resulting revision in estimates of variable consideration increased revenue by $11.9 million in the fourth quarter of fiscal 2020.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Stock-Based Compensation

12 Months Ended

Jan. 02, 2021

Stock-Based Compensation

Stock-Based Compensation

15. 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. The purpose of the amendments was to authorize additional shares of common stock for issuance, to comply with changes in applicable law, to 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.

Stock Grants

The Company granted to its employees 0.7 million, 0.7 million and 0.6 million shares of full value awards and no stock options from the 2009 Plan during fiscal 2020, 2019 and 2018, respectively.

15. Stock-Based Compensation (Continued)

Included in the full value awards granted under the 2009 Plan in fiscal 2020, 2019 and 2018 were a total of 82,000, 93,000 and 41,000 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 granted in 2018 measures the difference between the total stockholders’ return of the Company against that of the PHLX Semiconductor Sector Total Return Index. MSUs granted in 2019 and 2020 measure the relative performance of the total stockholders' return of the Company against that of a selected benchmarked group of companies.

Also included in the full value awards granted under the 2009 Plan during fiscal 2018 were 41,000 performance-based stock awards (PSUs). There were no PSUs granted during fiscal 2020 or 2019. 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 2020, 2019 and 2018, the Company issued 177,000, 208,000 and 223,000 shares, respectively, under the 2009 Purchase Plan to its employees. The weighted-average fair value for purchase rights granted in fiscal 2020 under the 2009 Purchase Plan was $36.12 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.

15. Stock-Based Compensation (Continued)

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 shares granted were calculated using the following assumptions:


	Year Ended
	January 2,		December 28,		December 29,
Employee Stock Purchase Plan	2021		2019		2018
Expected volatility	67	%	37	%	30	%
Risk-free interest rate %	0.15	%	1.6	%	2.4	%
Expected term (in months)	9		9		9
Dividend yield	—		—		—

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


	Year Ended
	January 2,		December 28,		December 29,
MSUs	2021		2019		2018
Expected volatility	36	%	31	%	29	%
Risk-free interest rate %	1.3	%	2.4	%	2.4	%
Expected term (in years)	2.9		2.9		2.9
Dividend yield	—		—		—

A summary of stock-based compensation activity with respect to fiscal 2020 follows:


		Weighted-		Weighted-Average	Aggregate
		Average		Remaining	Intrinsic
	Shares	Exercise		Contractual Term	Value
Stock Options	(000s)	Price		(In Years)	(000s)
Outstanding at December 28, 2019	137	$	39.47
Outstanding at January 2, 2021	127	$	39.16	5.11	$	11,232
Vested at January 2, 2021 and expected to vest	127	$	39.16	5.11	$	11,232
Exercisable at January 2, 2021	127	$	39.16	5.11	$	11,232


		Weighted-		Weighted-Average	Aggregate
		Average		Remaining	Intrinsic
	Shares	Purchase		Vesting Term	Value
RSAs and RSUs	(000s)	Price		(In Years)	(000s)
Outstanding at December 28, 2019	1,084	$	—
Granted	610	$	—
Vested or issued	(546)	$	—
Cancelled or forfeited	(42)	$	—
Outstanding at January 2, 2021	1,106	$	—	1.06	$	140,801
Outstanding at January 2, 2021 and expected to vest	1,026	$	—	1.06	$	130,635

15. Stock-Based Compensation (Continued)


		Weighted-		Weighted-Average	Aggregate
		Average		Remaining	Intrinsic
	Shares	Purchase		Vesting Term	Value
PSUs and MSUs	(000s)	Price		(In Years)	(000s)
Outstanding at December 28, 2019	262	$	—
Granted	82	$	—
Earned or issued	(83)	$	—
Cancelled or forfeited	(28)	$	—
Outstanding at January 2, 2021	233	$	—	1.14	$	29,703
Outstanding at January 2, 2021 and expected to vest	215	$	—	1.14	$	27,390

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


	Year Ended
	January 2,		December 28,		December 29,
	2021		2019		2018
Per grant of RSAs and RSUs	$	100.27	$	89.35	$	93.75
Per grant of PSUs and MSUs	$	98.58	$	85.79	$	97.53

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


	Year Ended
	January 2,		December 28,		December 29,
	2021		2019		2018
Intrinsic value of stock options exercised	$	558	$	—	$	1,952
Intrinsic value of RSUs that vested	$	48,534	$	57,693	$	68,012
Grant date fair value of RSUs that vested	$	37,477	$	40,434	$	37,720
Intrinsic value of PSUs and MSUs that vested	$	8,545	$	3,649	$	3,562
Grant date fair value of PSUs and MSUs that vested	$	6,302	$	1,461	$	1,788

The Company received $15.0 million cash for the issuance of common stock, and paid $18.1 million for shares withheld for taxes, during fiscal 2020. 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
	January 2,		December 28,		December 29,
	2021		2019		2018
Cost of revenues	$	1,477	$	1,316	$	1,238
Research and development		29,212		26,187		23,867
Selling, general and administrative		29,402		27,296		24,972
		60,091		54,799		50,077
Income tax benefit		3,616		2,476		8,890
	$	56,475	$	52,323	$	41,187

The decrease in income tax benefit in fiscal 2019 was primarily due to a change in the Company’s position related to the treatment of stock-based compensation within its intercompany cost-sharing arrangement. The Company had approximately $78.6 million of total unrecognized compensation costs related to equity grants from the 2009 Plan as of January 2, 2021 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.

15. Stock-Based Compensation (Continued)

As of January 2, 2021, the Company had reserved shares of common stock for future issuance as follows (in thousands):


2009 Stock Incentive Plan		1,223
2009 Employee Stock Purchase Plan		600
Total shares reserved		1,823

Employee Benefit Plan

12 Months Ended

Jan. 02, 2021

Employee Benefit Plan

Employee Benefit Plan

16. Employee Benefit Plan

The Company maintains a defined contribution or 401(k) Plan for its qualified U.S. employees. Participants may contribute a percentage of their compensation on a pre-tax basis, subject to a maximum annual contribution imposed by the Internal Revenue Code. The Company may make discretionary matching contributions as well as discretionary profit-sharing contributions to the 401(k) Plan. The Company contributed $4.2 million, $3.9 million and $3.7 million to the 401(k) Plan during fiscal 2020, 2019 and 2018, respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 55
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=118257860&loc=d3e4179-114921

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section S99
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=21916913&loc=d3e273930-122802

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(i)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (o)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (p)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 70
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=49170846&loc=d3e28014-114942

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 60
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6414203&loc=d3e39689-114964

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(iv)(03)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (q)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (r)(1)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(iii)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (l)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (r)(2)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

+ Details

Income Taxes

12 Months Ended

Jan. 02, 2021

Income Taxes

Income Taxes

17. Income Taxes

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


	Year Ended
	January 2,		December 28,		December 29,
	2021		2019		2018
Domestic	$	(19,491)	$	2,025	$	19,777
Foreign		34,792		47,624		52,384
	$	15,301	$	49,649	$	72,161

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


	Year Ended
	January 2,		December 28,		December 29,
	2021		2019		2018
Current:
Domestic	$	1,485	$	(779)	$	(8,843)
Foreign		7,803		8,157		5,888
Total Current		9,288		7,378		(2,955)
Deferred:
Domestic		(4,031)		33,624		(8,978)
Foreign		(2,487)		(10,618)		503
Total Deferred		(6,518)		23,006		(8,475)
Provision (benefit) for income taxes	$	2,770	$	30,384	$	(11,430)

17. Income Taxes (Continued)

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


	Year Ended
	January 2,		December 28,		December 29,
	2021		2019		2018
Federal statutory rate	21.0	%	21.0	%	21.0	%
Foreign tax rate benefit	(19.2)		(14.9)		(14.8)
Research and development tax credits	(50.9)		(15.2)		(9.8)
GILTI and Subpart F income	35.7		4.9		4.1
Nondeductible (nontaxable) foreign items	(1.5)		5.4		4.4
State tax expense	2.6		1.0		1.5
Release of prior year unrecognized tax benefits	—		(0.4)		(2.7)
Nondeductible officer compensation	15.7		4.3		2.4
Change in cost-sharing treatment of stock-based compensation	—		54.8		(2.2)
Excess tax benefit of stock-based compensation	(4.0)		(2.2)		(5.9)
Change in prior period valuation allowance	2.5		1.3		(2.5)
One-time impacts of tax reform	—		(0.5)		(11.5)
Nondeductible (nontaxable) domestic items	14.8		2.8		1.5
Other	1.4		(1.1)		(1.3)
Effective Tax Rate	18.1	%	61.2	%	(15.8)	%

The effective tax rate for fiscal 2020 decreased from fiscal 2019 primarily due to a fiscal 2019 change in the Company’s position related to the treatment of stock-based compensation within its intercompany cost-sharing arrangement offset by the increased impact of fiscal 2020 permanent tax differences. The effective tax rate for fiscal 2019 increased from fiscal 2018 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.

The Company’s operations in Singapore are subject to reduced tax rates through June 30, 2024, as long as certain conditions are met. The impact of the tax holiday decreased foreign taxes by $1.8 million in fiscal 2020 (representing $0.04 per diluted share), by $4.0 million in fiscal 2019 (representing $0.09 per diluted share), and by $8.1 million in fiscal 2018 (representing $0.18 per diluted share).

The Tax Cuts and Jobs Act was enacted in the U.S. on December 22, 2017 and required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously deferred from U.S income tax under U.S. tax law. The Company elected to pay the transition tax over the eight-year period provided in the Act. As of January 2, 2021, the unpaid balance of its transition tax obligation is $21.4 million, which is payable between April 2022 and April 2025. This is recorded as a component of other non-current liabilities in the Consolidated Balance Sheet.

17. Income Taxes (Continued)

Deferred Income Taxes

Deferred tax assets and liabilities are recorded for the estimated tax impact of temporary differences between the tax basis and book basis of assets and liabilities. Significant components of the Company’s deferred taxes as of January 2, 2021 and December 28, 2019 are as follows (in thousands):


	January 2,		December 28,
	2021		2019
Deferred tax assets:
Net operating loss carryforwards	$	6,839	$	7,912
Tax credit carryforwards		22,421		14,755
Stock-based compensation		2,683		2,619
Intangible assets		9,802		7,135
Fixed assets		261		289
Capitalized research and development		1,237		1,735
Deferred income on shipments to distributors		3,099		4,018
Leases		6,335		3,446
Accrued liabilities and other		7,652		7,374
		60,329		49,283
Less: Valuation allowance		(5,311)		(4,486)
		55,018		44,797
Deferred tax liabilities:
Intangible assets		16,758		16,621
Fixed assets		8,473		4,969
Leases		5,999		3,166
Debt		21,674		5,741
Prepaid expenses and other		4,919		2,424
		57,823		32,921
Net deferred tax assets (liabilities)	$	(2,805)	$	11,876

As of January 2, 2021, the Company had federal net operating loss and research and development tax credit carryforwards of approximately $23.2 million and $1.9 million, respectively, as a result of the Silicon Clocks, Spectra Linear and Ember acquisitions. These carryforwards expire in fiscal years 2021 through 2031. Recognition of these loss and credit carryforwards is subject to an annual limit, which may cause them to expire before they are used. Additionally, as of January 2, 2021, the Company had generated $10.5 million of federal research and development credit carryforwards and $0.6 million of foreign tax credit carryforwards. The federal research and development credits expire in fiscal years 2039 through 2040, and the foreign tax credits expire in 2030. These credits are not currently subject to an annual limitation.

The Company also had state loss, state tentative minimum tax credit, and state research and development tax credit carryforwards of approximately $31.6 million, $0.1 million, and $13.0 million, respectively. A portion of these loss and credit carryforwards was generated by the Company and a portion was acquired through the Integration Associates, Silicon Clocks, Spectra Linear and Zentri acquisitions. Certain of these carryforwards expire in fiscal years 2024 through 2036, and others do not expire. Recognition of some of these loss and credit carryforwards is subject to an annual limit, which may cause them to expire before they are used.

17. Income Taxes (Continued)

A valuation allowance is established against a deferred tax asset when it is more likely than not that the deferred tax asset will not be realized. The Company maintains a valuation allowance with respect to certain deferred tax assets relating to state research and development tax credit and state net operating loss carryforwards. The following table summarizes the activity related to the valuation allowance for deferred tax assets (in thousands):


	Balance at		Additions
	Beginning of		Charged to				Balance at
	Period		Expenses		Deductions		End of Period
Year ended January 2, 2021	$	4,486	$	847	$	(22)	$	5,311

Year ended December 28, 2019	$	4,975	$	1,044	$	(1,533)	$	4,486

Year ended December 29, 2018	$	6,518	$	435	$	(1,978)	$	4,975

At the end of fiscal 2020, undistributed earnings of certain of the Company's foreign subsidiaries of approximately $94.8 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
	January 2,		December 28,		December 29,
	2021		2019		2018
Beginning balance	$	2,276	$	2,036	$	3,187
Additions based on tax positions related to current year		577		436		630
Additions based on tax positions related to prior years		—		—		115
Reductions based on tax positions related to prior years		—		(196)		—
Reductions for tax positions as a result of a lapse of the applicable statute of limitations		—		—		(1,896)
Ending balance	$	2,853	$	2,276	$	2,036

As of January 2, 2021, December 28, 2019 and December 29, 2018, the Company had gross unrecognized tax benefits, inclusive of interest, of $3.0 million, $2.4 million and $2.1 million, respectively, of which $2.1 million, $1.9 million and $2.1 million, respectively, would affect the effective tax rate if recognized.

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

Following the completion of the Norwegian Tax Administration (“NTA”) examination of the Company’s Norwegian subsidiary for income tax matters relating to fiscal years 2013 – 2016, the Company received an assessment from the NTA in December 2017 concerning an adjustment to its 2013 taxable income related to the pricing of an intercompany transaction. The Company is currently appealing the assessment. The adjustment to the pricing of the intercompany transaction results in approximately 141.3 million Norwegian kroner, or $16.5 million additional Norwegian income tax. The Company disagrees with the NTA’s assessment and believes the Company’s position on this matter is more likely than not to be sustained. The Company plans to exhaust all available administrative remedies, and if unable to resolve this matter through administrative remedies with the NTA, the Company plans to pursue judicial remedies.

17. Income Taxes (Continued)

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

Tax years 2015 through 2020 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 expect material changes to its gross unrecognized tax benefits in the next 12 months.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Segment Information

12 Months Ended

Jan. 02, 2021

Segment Information

Segment Information

18. Segment Information

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

The Company groups its products into two categories, based on the markets and applications in which the products may be used. See Note 14, Revenues, for a summary of the Company’s revenue by product category.

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


	Year Ended
	January 2,		December 28,		December 29,
	2021		2019		2018
United States	$	92,136	$	110,451	$	149,385
China		397,751		354,855		344,255
Rest of world		396,790		372,248		374,627
Total	$	886,677	$	837,554	$	868,267

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


	January 2,		December 28,
	2021		2019
United States	$	128,204	$	126,572
Rest of world		11,235		9,367
Total	$	139,439	$	135,939

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Significant Accounting Policies (Policies)	12 Months Ended
Significant Accounting Policies (Policies)	Jan. 02, 2021
Significant Accounting Policies
Foreign Currency Transactions	Foreign Currency Transactions The Company's foreign subsidiaries are considered to be extensions of the U.S. Company. The functional currency of the foreign subsidiaries is the U.S. dollar. Accordingly, gains and losses resulting from remeasuring transactions denominated in currencies other than U.S. dollars are included in interest income and other, net in the Consolidated Statements of Income.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Among the significant estimates affecting the financial statements are those related to inventories, 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 Financial Instruments Accounting Standard	Adoption of New Financial Instruments Accounting Standard The Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, on December 29, 2019, the first day of its fiscal year ended January 2, 2021. The adoption did not have a material impact on its financial statements.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The fair values of the Company's financial instruments are recorded using a hierarchical disclosure framework based upon the level of subjectivity of the inputs used in measuring assets and liabilities. The three levels are described below: Level 1 - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 - Inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 - Inputs are unobservable for the asset or liability and are developed based on the best information available in the circumstances, which might include the Company’s own data.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents consist of cash deposits, certificates of deposit, money market funds and investments in debt securities with original maturities of ninety days or less when purchased.
Investments	Investments The Company's investments typically have original maturities greater than ninety days as of the date of purchase and are classified as either available-for-sale or trading securities. Investments in available-for-sale securities are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive income (loss) in the Consolidated Balance Sheet. Investments in trading securities are reported at fair value, with both realized and unrealized gains and losses recorded in interest income and other, net in the Consolidated Statement of Income. Investments in which the Company has the ability and intent, if necessary, to liquidate in order to support its current operations (including those with contractual maturities greater than one year from the date of purchase) are classified as short-term. The Company reviews its available-for-sale investments as of the end of each reporting period for declines in fair value based on the specific identification method. The Company records an allowance for credit loss when a decline in fair value is due to credit-related factors. The Company considers various factors in determining whether an investment is impaired, including the severity of the impairment, changes in underlying credit ratings, forecasted recovery, its intent to sell or the likelihood that it would be required to sell the investment before its anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. When the Company concludes that a credit-related impairment has occurred, the Company assesses whether it intends to sell the security or if it is more likely than not that it will be required to sell the security before recovery. If either of these two conditions is met, the Company recognizes a charge in earnings equal to the entire difference between the security’s amortized cost basis and its fair value. If the Company does not intend to sell a security and it is not more likely than not that it will be required to sell the security before recovery, the unrealized loss is separated into an amount representing the credit loss, which is recognized in earnings, and the amount related to all other factors, which is recorded in accumulated other comprehensive income (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. The Company periodically reviews its equity investments for declines in fair value based on the specific identification method and writes down investments to their fair values when it determines that a decline has occurred.
Derivative Financial Instruments	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 Inventories are stated at the lower of cost, determined using the first-in, first-out method, or net realizable value. The Company writes down the carrying value of inventory to net realizable value for estimated obsolescence or unmarketable inventory based upon assumptions about the age of inventory, future demand and market conditions. Inventory impairment charges establish a new cost basis for inventory and charges are not subsequently reversed to income even if circumstances later suggest that increased carrying amounts are recoverable.
Property and Equipment	Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the useful lives of the assets ranging from three to fifteen years. Leasehold improvements are depreciated over the lease term or their useful life, whichever is shorter. The Company owns the facilities for its headquarters in Austin, Texas. The buildings are located on land which is leased through 2099 from a third party. The rents for these ground leases were prepaid for the term of the leases. The buildings and leasehold interest in ground leases are being depreciated on a straight-line basis over their estimated useful lives of 40 years and 86 years, respectively.
Business Combinations	Business Combinations The Company records business combinations using the acquisition method of accounting and, accordingly, allocates the fair value of acquisition consideration to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of the assets acquired and liabilities assumed is recorded as goodwill. The results of operations of the businesses acquired are included in the Company's consolidated results of operations beginning on the date of the acquisition.
Long-Lived Assets	Long-Lived Assets Purchased intangible assets are stated at cost, net of accumulated amortization, and are amortized using the straight-line method over their estimated useful lives, ranging from two 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. 2. Significant Accounting Policies (Continued) Long-lived assets “held and used” by the Company are reviewed for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets and is recorded in the period in which the determination was made. The Company tests goodwill for impairment annually as of the first day of its fourth fiscal quarter and in interim periods if events occur that would indicate that the carrying value of goodwill may be impaired. The Company assesses goodwill for impairment by comparing the fair value of the reporting unit to its carrying amount. In determining fair value, several valuation methodologies are allowed, although quoted market prices are the best evidence of fair value. If the fair value of the reporting unit is less than its carrying amount, an impairment loss is recognized equal to that excess amount.
Leases	Leases At the commencement date of a lease, the Company recognizes a liability to make lease payments and an asset representing the right to use the underlying asset during the lease term. The lease liability is measured at the present value of lease payments over the lease term. As its leases typically do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date taking into consideration necessary adjustments for collateral, depending on the facts and circumstances of the lessee and the leased asset, and term to match the lease term. The right-of-use (“ROU”) asset is measured at cost, which includes the initial measurement of the lease liability and initial direct costs incurred by the Company and excludes lease incentives. Lease liabilities are recorded in other current liabilities and other non-current liabilities. ROU assets are recorded in other assets, net. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease costs are recognized on a straight-line basis over the lease term. Lease agreements that contain both lease and non-lease components are generally accounted for separately.
Revenue Recognition	Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to 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. The Company has opted to not disclose the amount of unsatisfied performance obligations as these contracts have original expected durations of less than one year. The transaction price reflects the Company’s expectations about the consideration it will be entitled to receive from the customer and may include fixed or variable amounts. Variable consideration primarily includes sales made to distributors under agreements allowing certain rights of return, referred to as stock rotation, and credits issued to the distributor due to price protection. The Company estimates variable consideration at the most likely amount to which it expects to be entitled. The estimate is based on information available to the Company, including recent sales activity and pricing data. The Company applies a constraint to its variable consideration estimate which considers both the likelihood of a return and the amount of a potential price concession. Variable consideration that does not meet revenue recognition criteria is deferred. The Company records a right of return asset in prepaid expenses and other current assets for the costs of distributor inventory not meeting revenue recognition criteria. A corresponding deferred revenue and returns liability amount is recorded for unrecognized revenue associated with such costs. The Company’s products carry a one-year replacement warranty. Payments are typically due within 30 days of invoicing and do not include a significant financing component.
Shipping and Handling	Shipping and Handling Shipping and handling costs are classified as a component of cost of revenues in the Consolidated Statements of Income.
Stock-Based Compensation	Stock-Based Compensation The Company has stock-based compensation plans, which are more fully described in Note 15, Stock-Based Compensation. The Company accounts for those plans using a fair-value method and recognizes the expense in its Consolidated Statement of Income.
Research and Development	Research and Development Research and development costs are expensed as incurred. Research and development expense consists primarily of personnel-related expenses, including stock-based compensation, as well as new product masks, external consulting and services costs, equipment tooling, equipment depreciation, amortization of intangible assets, and an allocated portion of our occupancy costs. Assets purchased to support the Company's ongoing research and development activities are capitalized when related to products which have achieved technological feasibility or have an alternative future use, and are amortized over their estimated useful lives.
Advertising	Advertising Advertising costs are expensed as incurred. Advertising expenses were not material for any of the periods presented.
Income Taxes	Income Taxes The Company accounts for income taxes using the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax laws and related rates that will be in effect when the differences are expected to reverse. These differences result in deferred tax assets and liabilities, which are included in the Company’s Consolidated Balance Sheet. The Company then assesses the likelihood that the deferred tax assets will be realized. A valuation allowance is established against deferred tax assets to the extent the Company believes that it is more likely than not that the deferred tax assets will not be realized, taking into consideration the level of historical taxable income and projections for future taxable income over the periods in which the temporary differences are deductible. Uncertain tax positions must meet a more-likely-than-not threshold to be recognized in the financial statements and the tax benefits recognized are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon final settlement. See Note 17, Income Taxes, for additional information.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40). This ASU simplifies the accounting for certain convertible instruments, amends the guidance on derivative scope exceptions for contracts in an entity's own equity and requires the use of the if-converted method for calculating diluted earnings per share. The ASU removes separation models for convertible debt with a cash conversion feature. Such convertible instruments will be accounted for as a single liability measured at amortized cost, as long as no other features require bifurcation and recognition as derivatives. This ASU is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years, using one of two retrospective transition methods. Early adoption is permitted for fiscal periods beginning after December 15, 2020. The Company expects the primary impacts of this new standard will be to potentially increase the carrying value of its convertible debt and reduce its reported interest expense. In addition, should the Company be required to use the if-converted method for calculating diluted earnings per share, the number of shares used in such calculation could potentially increase. The Company will continue to evaluate the effect that the adoption of this ASU will have on its financial statements.

Earnings Per Share (Tables)

12 Months Ended

Jan. 02, 2021

Earnings Per Share

Schedule of computation of basic and diluted earnings per share

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


	Year Ended
	January 2,		December 28,		December 29,
	2021		2019		2018
Net income	$	12,531	$	19,265	$	83,591

Shares used in computing basic earnings per share		43,775		43,346		43,159

Effect of dilutive securities:
Stock-based awards and convertible debt		597		944		885
Shares used in computing diluted earnings per share		44,372		44,290		44,044

Earnings per share:
Basic	$	0.29	$	0.44	$	1.94
Diluted	$	0.28	$	0.43	$	1.90

Fair Value of Financial Instruments (Tables)

12 Months Ended

Jan. 02, 2021

Fair Value of Financial Instruments

Summary of valuation of the financial instruments


	Fair Value Measurements
	at January 2, 2021 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	$	75,606	$	—	$	—	$	75,606
Corporate debt securities		—		14,995		—		14,995
Government debt securities		2,355		2,564		—		4,919
Total cash equivalents	$	77,961	$	17,559	$	—	$	95,520

Short-term investments:
Government debt securities	$	38,461	$	104,112	$	—	$	142,573
Corporate debt securities		—		379,390		—		379,390
Total short-term investments	$	38,461	$	483,502	$	—	$	521,963

Other assets, net:
Auction rate securities	$	—	$	—	$	5,340	$	5,340
Total	$	—	$	—	$	5,340	$	5,340

Total	$	116,422	$	501,061	$	5,340	$	622,823

4. Fair Value of Financial Instruments (Continued)


	Fair Value Measurements
	at December 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	$	92,379	$	—	$	—	$	92,379
Corporate debt securities		—		1,325		—		1,325
Total cash equivalents	$	92,379	$	1,325	$	—	$	93,704

Short-term investments:
Government debt securities	$	85,189	$	86,682	$	—	$	171,871
Corporate debt securities		—		326,954		—		326,954
Total short-term investments	$	85,189	$	413,636	$	—	$	498,825

Other assets, net:
Auction rate securities	$	—	$	—	$	5,647	$	5,647
Total	$	—	$	—	$	5,647	$	5,647

Total	$	177,568	$	414,961	$	5,647	$	598,176

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 January 2, 2021 (in thousands):


			Fair
	Cost		Value
Due in one year or less	$	380,069	$	381,219
Due after one year through ten years		202,363		203,484
Due after ten years		38,780		38,120
	$	621,212	$	622,823

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 January 2, 2021	Value		Losses		Value		Losses		Value		Losses
Government debt securities	$	10,146	$	(5)	$	—	$	—	$	10,146	$	(5)
Corporate debt securities		51,909		(74)		—		—		51,909		(74)
Auction rate securities		—		—		5,340		(660)		5,340		(660)
	$	62,055	$	(79)	$	5,340	$	(660)	$	67,395	$	(739)


	Less Than 12 Months				12 Months or Greater				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
As of December 28, 2019	Value		Losses		Value		Losses		Value		Losses
Government debt securities	$	11,947	$	(19)	$	7,183	$	(7)	$	19,130	$	(26)
Corporate debt securities		68,116		(81)		20		—		68,136		(81)
Auction rate securities		—		—		5,647		(353)		5,647		(353)
	$	80,063	$	(100)	$	12,850	$	(360)	$	92,913	$	(460)

Summary of quantitative information about level 3 fair value measurements

Auction rate securities


Fair Value at
January 2, 2021				Weighted
(000s)		Valuation Technique	Unobservable Input	Average
$	5,340	Discounted cash flow	Estimated yield	1.56	%

			Expected holding period	10 years

			Estimated discount rate	2.09	%

Summary of activity in Level 3 financial instruments

Assets


	Year Ended
	January 2,		December 28,
Auction Rate Securities	2021		2019
Beginning balance	$	5,647	$	5,759
Losses included in other comprehensive income (loss)		(307)		(112)
Ending balance	$	5,340	$	5,647

Balance Sheet Details (Tables)

12 Months Ended

Jan. 02, 2021

Balance Sheet Details

Schedule of Inventories

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


	January 2,		December 28,
	2021		2019
Work in progress	$	56,165	$	52,350
Finished goods		10,497		20,707
	$	66,662	$	73,057

Summary of prepaid Expenses and Other Current Assets


	January 2,		December 28,
	2021		2019
Distributor advances	$	51,190	$	38,485
Other		38,117		30,707
	$	89,307	$	69,192

Schedule of Property and Equipment


	January 2,		December 28,
	2021		2019
Buildings and improvements	$	118,331	$	112,673
Equipment		71,225		65,843
Computers and purchased software		46,727		45,879
Leasehold interest in ground leases		23,840		23,840
Leasehold improvements		9,054		8,782
Furniture and fixtures		8,882		8,291
		278,059		265,308
Accumulated depreciation		(138,620)		(129,369)
	$	139,439	$	135,939

Schedule of Other Current Liabilities


	January 2,		December 28,
	2021		2019
Accrued compensation and benefits	$	46,633	$	41,138
Other		35,450		38,413
	$	82,083	$	79,551

Risks and Uncertainties (Tables)

12 Months Ended

Jan. 02, 2021

Accounts receivable

Schedule of concentration risk


	January 2,		December 28,
	2021		2019
Arrow Electronics	28	%	14	%
Edom Technology	21	%	17	%
Other	*		11	%

* Less than 10% of accounts receivable

Revenue

Schedule of concentration risk


	Year Ended
	January 2,		December 28,		December 29,
	2021		2019		2018
Arrow Electronics	26	%	26	%	21	%
Edom Technology	20	%	20	%	17	%
Sekorm	11	%	*		*

*	Less than 10% of revenue

Acquisition (Tables)

12 Months Ended

Jan. 02, 2021

Redpine Signals

Schedule of purchase price allocation

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


			Weighted-Average
			Amortization Period
	Amount		(Years)
Intangible assets:
In-process research and development	$	11,753	Not amortized
Developed technology		61,674	8
Customer relationships		2,450	2
Trademarks		661	2
		76,538

Accounts receivable		1,395
Inventory		4,375
Other current assets		1,251
Goodwill		233,530
Other non-current assets		673
Current liabilities		(856)
Non-current liabilities		(97)
Total purchase price	$	316,809

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Jan. 02, 2021

Goodwill and Other Intangible Assets

Summary of goodwill activity

The following summarizes the activity in goodwill for the years ended January 2, 2021 and December 28, 2019 (in thousands):


	Year Ended
	January 2,		December 28,
	2021		2019
Beginning balance	$	398,402	$	397,344
Additions due to business combinations		233,530		1,058
Ending balance	$	631,932	$	398,402

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):


	Weighted-Average
	Amortization	January 2, 2021				December 28, 2019
	Period	Gross		Accumulated		Gross		Accumulated
	(Years)	Amount		Amortization		Amount		Amortization
Subject to amortization:
Developed technology	8	$	261,939	$	(125,435)	$	219,695	$	(111,634)
Customer relationships	5		43,245		(31,877)		40,795		(22,742)
Trademarks	5		12,771		(6,312)		12,310		(4,145)
	8		317,955		(163,624)		272,800		(138,521)

Not subject to amortization:
In-process research and development	Not amortized		11,753		—		—		—

Total intangible assets		$	329,708	$	(163,624)	$	272,800	$	(138,521)

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
2021	$	44,358
2022		33,046
2023		24,324
2024		21,864
2025		12,200

Debt (Tables)

12 Months Ended

Jan. 02, 2021

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):


	January 2,		December 28,
	2021		2019
Liability component
Principal	$	675,567	$	400,000
Unamortized debt discount		(103,953)		(27,580)
Unamortized debt issuance costs		(8,189)		(4,163)
Net carrying amount	$	563,425	$	368,257

Equity component
Net carrying amount	$	108,438	$	57,735

Schedule of components of interest expense

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


	Year Ended
	January 2,		December 28,		December 29,
	2021		2019		2018
Contractual interest expense	$	5,530	$	5,485	$	5,500
Amortization of debt discount		19,375		11,717		11,202
Amortization of debt issuance costs		2,058		1,768		1,690
	$	26,963	$	18,970	$	18,392

Leases (Tables)

12 Months Ended

Jan. 02, 2021

Leases

Summary of supplemental lease information


	January 2,		December 28,
Balance Sheet Information (in thousands)	2021		2019
Operating lease right-of-use assets	$	28,213	$	16,086
Operating lease liabilities	$	29,900	$	17,894


	Year Ended
	January 2,		December 28,
Cash Flow Information (in thousands)	2021		2019
Cash paid for operating lease liabilities	$	5,942	$	6,023
Right-of-use assets obtained in exchange for operating lease obligations	$	16,711	$	2,631


	January 2,		December 28,
Operating Lease Information	2021		2019
Weighted-average remaining lease term	6.5 years		4.5 years
Weighted-average discount rate	4.37	%	5.26	%

11. Leases (Continued)

Schedule of maturities of operating lease liabilities

The maturities of operating lease liabilities as of January 2, 2021 were as follows (in thousands):


Fiscal Year
2021	$	6,787
2022		6,174
2023		5,367
2024		4,874
2025		3,278
Thereafter		8,421
Total lease payments		34,901
Less imputed interest		(5,001)
Total lease liabilities	$	29,900

Revenues (Tables)

12 Months Ended

Jan. 02, 2021

Revenues

Schedule of disaggregation of revenue by product category

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


		Year Ended
	January 2,		December 28,		December 29,
	2021		2019		2018
Internet of Things	$	513,670	$	488,156	$	463,838
Infrastructure and automotive		373,007		349,398		404,429
	$	886,677	$	837,554	$	868,267

Schedule of disaggregation of revenue by sales channel

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


		Year Ended
	January 2,		December 28,		December 29,
	2021		2019		2018
Distributors	$	696,019	$	610,410	$	618,989
Direct customers		190,658		227,144		249,278
	$	886,677	$	837,554	$	868,267

Stock-Based Compensation (Tables)

12 Months Ended

Jan. 02, 2021

Stock-Based Compensation

Summary of assumptions used to estimate fair values for ESPP

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


	Year Ended
	January 2,		December 28,		December 29,
Employee Stock Purchase Plan	2021		2019		2018
Expected volatility	67	%	37	%	30	%
Risk-free interest rate %	0.15	%	1.6	%	2.4	%
Expected term (in months)	9		9		9
Dividend yield	—		—		—

Summary of assumptions used to estimate fair values for MSUs

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


	Year Ended
	January 2,		December 28,		December 29,
MSUs	2021		2019		2018
Expected volatility	36	%	31	%	29	%
Risk-free interest rate %	1.3	%	2.4	%	2.4	%
Expected term (in years)	2.9		2.9		2.9
Dividend yield	—		—		—

Summary of stock-based compensation activity, options

A summary of stock-based compensation activity with respect to fiscal 2020 follows:


		Weighted-		Weighted-Average	Aggregate
		Average		Remaining	Intrinsic
	Shares	Exercise		Contractual Term	Value
Stock Options	(000s)	Price		(In Years)	(000s)
Outstanding at December 28, 2019	137	$	39.47
Outstanding at January 2, 2021	127	$	39.16	5.11	$	11,232
Vested at January 2, 2021 and expected to vest	127	$	39.16	5.11	$	11,232
Exercisable at January 2, 2021	127	$	39.16	5.11	$	11,232

Summary of stock-based compensation activity, RSAs and RSUs


		Weighted-		Weighted-Average	Aggregate
		Average		Remaining	Intrinsic
	Shares	Purchase		Vesting Term	Value
RSAs and RSUs	(000s)	Price		(In Years)	(000s)
Outstanding at December 28, 2019	1,084	$	—
Granted	610	$	—
Vested or issued	(546)	$	—
Cancelled or forfeited	(42)	$	—
Outstanding at January 2, 2021	1,106	$	—	1.06	$	140,801
Outstanding at January 2, 2021 and expected to vest	1,026	$	—	1.06	$	130,635

Summary of stock-based compensation activity, PSUs and MSUs


		Weighted-		Weighted-Average	Aggregate
		Average		Remaining	Intrinsic
	Shares	Purchase		Vesting Term	Value
PSUs and MSUs	(000s)	Price		(In Years)	(000s)
Outstanding at December 28, 2019	262	$	—
Granted	82	$	—
Earned or issued	(83)	$	—
Cancelled or forfeited	(28)	$	—
Outstanding at January 2, 2021	233	$	—	1.14	$	29,703
Outstanding at January 2, 2021 and expected to vest	215	$	—	1.14	$	27,390

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
	January 2,		December 28,		December 29,
	2021		2019		2018
Per grant of RSAs and RSUs	$	100.27	$	89.35	$	93.75
Per grant of PSUs and MSUs	$	98.58	$	85.79	$	97.53

Summary of stock-based payment and stock option values

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


	Year Ended
	January 2,		December 28,		December 29,
	2021		2019		2018
Intrinsic value of stock options exercised	$	558	$	—	$	1,952
Intrinsic value of RSUs that vested	$	48,534	$	57,693	$	68,012
Grant date fair value of RSUs that vested	$	37,477	$	40,434	$	37,720
Intrinsic value of PSUs and MSUs that vested	$	8,545	$	3,649	$	3,562
Grant date fair value of PSUs and MSUs that vested	$	6,302	$	1,461	$	1,788

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

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


	Year Ended
	January 2,		December 28,		December 29,
	2021		2019		2018
Cost of revenues	$	1,477	$	1,316	$	1,238
Research and development		29,212		26,187		23,867
Selling, general and administrative		29,402		27,296		24,972
		60,091		54,799		50,077
Income tax benefit		3,616		2,476		8,890
	$	56,475	$	52,323	$	41,187

Summary of shares reserved of common stock for future issuance

As of January 2, 2021, the Company had reserved shares of common stock for future issuance as follows (in thousands):


2009 Stock Incentive Plan		1,223
2009 Employee Stock Purchase Plan		600
Total shares reserved		1,823

Income Taxes (Tables)

12 Months Ended

Jan. 02, 2021

Income Taxes

Schedule of income before income taxes

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


	Year Ended
	January 2,		December 28,		December 29,
	2021		2019		2018
Domestic	$	(19,491)	$	2,025	$	19,777
Foreign		34,792		47,624		52,384
	$	15,301	$	49,649	$	72,161

Schedule of provision (benefit) for income taxes

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


	Year Ended
	January 2,		December 28,		December 29,
	2021		2019		2018
Current:
Domestic	$	1,485	$	(779)	$	(8,843)
Foreign		7,803		8,157		5,888
Total Current		9,288		7,378		(2,955)
Deferred:
Domestic		(4,031)		33,624		(8,978)
Foreign		(2,487)		(10,618)		503
Total Deferred		(6,518)		23,006		(8,475)
Provision (benefit) for income taxes	$	2,770	$	30,384	$	(11,430)

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
	January 2,		December 28,		December 29,
	2021		2019		2018
Federal statutory rate	21.0	%	21.0	%	21.0	%
Foreign tax rate benefit	(19.2)		(14.9)		(14.8)
Research and development tax credits	(50.9)		(15.2)		(9.8)
GILTI and Subpart F income	35.7		4.9		4.1
Nondeductible (nontaxable) foreign items	(1.5)		5.4		4.4
State tax expense	2.6		1.0		1.5
Release of prior year unrecognized tax benefits	—		(0.4)		(2.7)
Nondeductible officer compensation	15.7		4.3		2.4
Change in cost-sharing treatment of stock-based compensation	—		54.8		(2.2)
Excess tax benefit of stock-based compensation	(4.0)		(2.2)		(5.9)
Change in prior period valuation allowance	2.5		1.3		(2.5)
One-time impacts of tax reform	—		(0.5)		(11.5)
Nondeductible (nontaxable) domestic items	14.8		2.8		1.5
Other	1.4		(1.1)		(1.3)
Effective Tax Rate	18.1	%	61.2	%	(15.8)	%

Schedule of significant components of deferred taxes

Significant components of the Company’s deferred taxes as of January 2, 2021 and December 28, 2019 are as follows (in thousands):


	January 2,		December 28,
	2021		2019
Deferred tax assets:
Net operating loss carryforwards	$	6,839	$	7,912
Tax credit carryforwards		22,421		14,755
Stock-based compensation		2,683		2,619
Intangible assets		9,802		7,135
Fixed assets		261		289
Capitalized research and development		1,237		1,735
Deferred income on shipments to distributors		3,099		4,018
Leases		6,335		3,446
Accrued liabilities and other		7,652		7,374
		60,329		49,283
Less: Valuation allowance		(5,311)		(4,486)
		55,018		44,797
Deferred tax liabilities:
Intangible assets		16,758		16,621
Fixed assets		8,473		4,969
Leases		5,999		3,166
Debt		21,674		5,741
Prepaid expenses and other		4,919		2,424
		57,823		32,921
Net deferred tax assets (liabilities)	$	(2,805)	$	11,876

Schedule of valuation allowance

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


	Balance at		Additions
	Beginning of		Charged to				Balance at
	Period		Expenses		Deductions		End of Period
Year ended January 2, 2021	$	4,486	$	847	$	(22)	$	5,311

Year ended December 28, 2019	$	4,975	$	1,044	$	(1,533)	$	4,486

Year ended December 29, 2018	$	6,518	$	435	$	(1,978)	$	4,975

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
	January 2,		December 28,		December 29,
	2021		2019		2018
Beginning balance	$	2,276	$	2,036	$	3,187
Additions based on tax positions related to current year		577		436		630
Additions based on tax positions related to prior years		—		—		115
Reductions based on tax positions related to prior years		—		(196)		—
Reductions for tax positions as a result of a lapse of the applicable statute of limitations		—		—		(1,896)
Ending balance	$	2,853	$	2,276	$	2,036

Segment Information (Tables)

12 Months Ended

Jan. 02, 2021

Segment Information

Schedule of revenue attributed to geographic area based on shipped-to location

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


	Year Ended
	January 2,		December 28,		December 29,
	2021		2019		2018
United States	$	92,136	$	110,451	$	149,385
China		397,751		354,855		344,255
Rest of world		396,790		372,248		374,627
Total	$	886,677	$	837,554	$	868,267

Schedule of property and equipment, net by geographic area

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


	January 2,		December 28,
	2021		2019
United States	$	128,204	$	126,572
Rest of world		11,235		9,367
Total	$	139,439	$	135,939

Significant Accounting Policies - Basis of Presentation and Principles of Consolidation (Details)	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Significant Accounting Policies
Length of fiscal year	371 days	364 days	364 days
Minimum
Significant Accounting Policies
Length of fiscal year	364 days
Maximum
Significant Accounting Policies
Length of fiscal year	371 days

Significant Accounting Policies - Property and Equipment, Long-Lived Assets and Leases (Details)	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Leases
Operating lease right-of-use assets, Statement of Financial Position	us-gaap:OtherAssetsNoncurrent	us-gaap:OtherAssetsNoncurrent
Operating lease liabilities, Statement of Financial Position	us-gaap:OtherLiabilitiesCurrent us-gaap:LiabilitiesOtherThanLongtermDebtNoncurrent	us-gaap:OtherLiabilitiesCurrent us-gaap:LiabilitiesOtherThanLongtermDebtNoncurrent
Minimum
Property and Equipment
Useful life, Property and Equipment	3 years
Long-Lived Assets
Useful life, Intangible assets	2 years
Maximum
Property and Equipment
Useful life, Property and Equipment	15 years
Long-Lived Assets
Useful life, Intangible assets	12 years
Buildings
Property and Equipment
Useful life, Property and Equipment	40 years
Leasehold interest in ground leases
Property and Equipment
Useful life, Property and Equipment	86 years

Significant Accounting Policies - Revenue Recognition (Details)	12 Months Ended
	Jan. 02, 2021
Revenue Recognition
Product replacement warranty	1 year

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Earnings Per Share
Net income	$ 12,531	$ 19,265	$ 83,591
Shares used in computing basic earnings per share	43,775	43,346	43,159
Effect of dilutive securities:
Stock-based awards and convertible debt	597	944	885
Shares used in computing diluted earnings per share	44,372	44,290	44,044
Earnings per share:
Basic (in dollars per share)	$ 0.29	$ 0.44	$ 1.94
Diluted (in dollars per share)	$ 0.28	$ 0.43	$ 1.90
Shares attributable to dilutive effect of conversion of debt securities	200	400	100

Fair Value of Financial Instruments - Summary of financial instruments (Details) - USD ($) $ in Thousands	Jan. 02, 2021	Dec. 28, 2019
Financial assets and liabilities measured at fair value on a recurring basis
Short-term investments	$ 521,963	$ 498,825
Recurring
Financial assets and liabilities measured at fair value on a recurring basis
Cash equivalents	95,520	93,704
Short-term investments	521,963	498,825
Other assets, net	5,340	5,647
Total assets at fair value	622,823	598,176
Recurring \| Money market funds
Financial assets and liabilities measured at fair value on a recurring basis
Cash equivalents	75,606	92,379
Recurring \| Government debt securities
Financial assets and liabilities measured at fair value on a recurring basis
Cash equivalents	4,919
Short-term investments	142,573	171,871
Recurring \| Corporate debt securities
Financial assets and liabilities measured at fair value on a recurring basis
Cash equivalents	14,995	1,325
Short-term investments	379,390	326,954
Recurring \| Auction rate securities
Financial assets and liabilities measured at fair value on a recurring basis
Other assets, net	5,340	5,647
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets and liabilities measured at fair value on a recurring basis
Cash equivalents	77,961	92,379
Short-term investments	38,461	85,189
Total assets at fair value	116,422	177,568
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
Cash equivalents	75,606	92,379
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
Cash equivalents	2,355
Short-term investments	38,461	85,189
Recurring \| Significant Other Observable Inputs (Level 2)
Financial assets and liabilities measured at fair value on a recurring basis
Cash equivalents	17,559	1,325
Short-term investments	483,502	413,636
Total assets at fair value	501,061	414,961
Recurring \| Significant Other Observable Inputs (Level 2) \| Government debt securities
Financial assets and liabilities measured at fair value on a recurring basis
Cash equivalents	2,564
Short-term investments	104,112	86,682
Recurring \| Significant Other Observable Inputs (Level 2) \| Corporate debt securities
Financial assets and liabilities measured at fair value on a recurring basis
Cash equivalents	14,995	1,325
Short-term investments	379,390	326,954
Recurring \| Significant Unobservable Inputs (Level 3)
Financial assets and liabilities measured at fair value on a recurring basis
Other assets, net	5,340	5,647
Total assets at fair value	5,340	5,647
Recurring \| Significant Unobservable Inputs (Level 3) \| Auction rate securities
Financial assets and liabilities measured at fair value on a recurring basis
Other assets, net	$ 5,340	$ 5,647

Fair Value of Financial Instruments - Available-for-sale investments (Details) - USD ($) $ in Thousands	Jan. 02, 2021	Dec. 28, 2019
Cost
Due in one year or less, Cost	$ 380,069
Due after one year through ten years, Cost	202,363
Due after ten years, Cost	38,780
Total Cost	621,212
Fair Value
Due in one year or less, Fair Value	381,219
Due after one year through ten years, Fair Value	203,484
Due after ten years, Fair Value	38,120
Total Fair Value	622,823
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months	62,055	$ 80,063
Fair value of available-for-sale securities, continuous loss position for twelve months or greater	5,340	12,850
Total fair value of available-for-sale securities, continuous loss position	67,395	92,913
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses	(79)	(100)
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses	(660)	(360)
Available-for-sale securities, total gross unrealized losses	(739)	(460)
Government debt securities
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months	10,146	11,947
Fair value of available-for-sale securities, continuous loss position for twelve months or greater		7,183
Total fair value of available-for-sale securities, continuous loss position	10,146	19,130
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses	(5)	(19)
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses		(7)
Available-for-sale securities, total gross unrealized losses	(5)	(26)
Corporate debt securities
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for less than twelve months	51,909	68,116
Fair value of available-for-sale securities, continuous loss position for twelve months or greater		20
Total fair value of available-for-sale securities, continuous loss position	51,909	68,136
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses	(74)	(81)
Available-for-sale securities, total gross unrealized losses	(74)	(81)
Auction rate securities
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale securities, continuous loss position for twelve months or greater	5,340	5,647
Total fair value of available-for-sale securities, continuous loss position	5,340	5,647
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses	(660)	(353)
Available-for-sale securities, total gross unrealized losses	$ (660)	$ (353)

Fair Value of Financial Instruments - Auction rate securities (Details) - Auction rate securities - Significant Unobservable Inputs (Level 3) $ in Thousands	Jan. 02, 2021 USD ($) item Y	Dec. 28, 2019 USD ($)	Dec. 29, 2018 USD ($)
Weighted Average \| Estimated yield \| Discounted cash flow
Quantitative information for Level 3 Fair Value Measurements Assets
Unobservable Input	0.0156
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	0.0209
Recurring
Quantitative information for Level 3 Fair Value Measurements Assets
Fair value balance at the end of the period \| $	$ 5,340	$ 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	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Fair value assets reconciliation of changes
Balance at the beginning of the period	$ 5,647	$ 5,759
Loss included in other comprehensive income (loss)	(307)	(112)
Balance at the end of the period	$ 5,340	$ 5,647

Fair Value of Financial Instruments - Fair Values of Other Financial Instruments (Details) - USD ($) $ in Millions	Jan. 02, 2021	Jun. 01, 2020	Dec. 28, 2019	Mar. 06, 2017
1.375% Convertible Senior Notes (2022 Notes)
Fair values of other financial instruments
Interest rate (as a percent)	1.375%			1.375%
Fair value of debt	$ 194.8		$ 524.0
0.625% Convertible Senior Notes (2025 Notes)
Fair values of other financial instruments
Interest rate (as a percent)	0.625%	0.625%
Fair value of debt	$ 671.4

Derivative Financial Instruments (Details) $ in Millions	12 Months Ended
Derivative Financial Instruments (Details) $ in Millions	Jan. 02, 2021 USD ($) contract	Mar. 27, 2020 USD ($)
Non-designated Hedges \| Foreign currency forward contracts \| Singapore Dollars
Derivative Financial Instruments
Number of foreign currency forward contracts held \| contract	2
Derivative, notional amount	$ 11.9
Cash flow hedges \| Foreign currency forward contracts
Derivative Financial Instruments
Derivative, notional amount	$ 29.3
Cash flow hedges \| Foreign currency forward contracts \| Minimum
Derivative Financial Instruments
Maturity of contracts	1 month
Cash flow hedges \| Foreign currency forward contracts \| Maximum
Derivative Financial Instruments
Maturity of contracts	12 months
Cash flow hedges \| Interest rate swaps
Derivative Financial Instruments
Derivative, notional amount		$ 310.0
Reclassification of unrealized gains (losses) from AOCI into earnings due to termination of swap agreement	$ (0.4)

Balance Sheet Details (Details) - USD ($) $ in Thousands	Jan. 02, 2021	Dec. 28, 2019
Inventories
Work in progress	$ 56,165	$ 52,350
Finished goods	10,497	20,707
Inventories	66,662	73,057
Prepaid Expenses and Other Current Assets
Distributor advances	51,190	38,485
Other	38,117	30,707
Prepaid Expenses and Other Current Assets	89,307	69,192
Property and Equipment
Property and equipment, gross	278,059	265,308
Accumulated depreciation	(138,620)	(129,369)
Total Property and Equipment, net	139,439	135,939
Other Current Liabilities
Accrued compensation and benefits	46,633	41,138
Other	35,450	38,413
Total Other Current Liabilities	82,083	79,551
Buildings and improvements
Property and Equipment
Property and equipment, gross	118,331	112,673
Equipment
Property and Equipment
Property and equipment, gross	71,225	65,843
Computers and purchased software
Property and Equipment
Property and equipment, gross	46,727	45,879
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	9,054	8,782
Furniture and fixtures
Property and Equipment
Property and equipment, gross	$ 8,882	$ 8,291

Risks and Uncertainties (Details) $ in Millions	12 Months Ended
Risks and Uncertainties (Details) $ in Millions	Jan. 02, 2021 USD ($) item	Dec. 28, 2019	Dec. 29, 2018
Accounts receivable \| Customers \| Arrow Electronics
Risks and Uncertainties
Concentrations of credit risk (as a percent)	28.00%	14.00%
Accounts receivable \| Customers \| Edom Technology
Risks and Uncertainties
Concentrations of credit risk (as a percent)	21.00%	17.00%
Accounts receivable \| Customers \| Other
Risks and Uncertainties
Concentrations of credit risk (as a percent)		11.00%
Notes receivable
Risks and Uncertainties
Number of notes receivable \| item	3
Notes receivable \| Other assets, net
Risks and Uncertainties
Notes receivable carrying value	$ 1.6
Equity method investments \| Other assets, net
Risks and Uncertainties
Equity method investments	$ 10.1
Revenue \| Distributors \| Arrow Electronics
Risks and Uncertainties
Concentrations of credit risk (as a percent)	26.00%	26.00%	21.00%
Revenue \| Distributors \| Edom Technology
Risks and Uncertainties
Concentrations of credit risk (as a percent)	20.00%	20.00%	17.00%
Revenue \| Distributors \| Sekorm
Risks and Uncertainties
Concentrations of credit risk (as a percent)	11.00%

Acquisition (Details) - USD ($) $ in Thousands		12 Months Ended
Acquisition (Details) - USD ($) $ in Thousands	Apr. 28, 2020	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Purchase price allocation
Goodwill		$ 631,932	$ 398,402	$ 397,344
Weighted-Average Amortization Period (Years)		8 years
Customer relationships
Purchase price allocation
Weighted-Average Amortization Period (Years)		5 years
Trademarks
Purchase price allocation
Weighted-Average Amortization Period (Years)		5 years
Wi-Fi and Bluetooth technology
Purchase price allocation
Discount rate applicable to the projected cash flows (as a percent)	13.80%
Redpine Signals
Purchase price allocation
Intangible assets	$ 76,538
Accounts receivable	1,395
Inventory	4,375
Other current assets	1,251
Goodwill	233,530
Other non-current assets	673
Current liabilities	(856)
Non-current liabilities	(97)
Total purchase price	316,809
Redpine Signals \| Selling, general and administrative
Purchase price allocation
Acquisition-related costs		$ 1,500
Redpine Signals \| Developed technology
Purchase price allocation
Intangible assets	$ 61,674
Weighted-Average Amortization Period (Years)	8 years
Redpine Signals \| Customer relationships
Purchase price allocation
Intangible assets	$ 2,450
Weighted-Average Amortization Period (Years)	2 years
Redpine Signals \| Trademarks
Purchase price allocation
Intangible assets	$ 661
Weighted-Average Amortization Period (Years)	2 years
Redpine Signals \| In-process research and development
Purchase price allocation
Intangible assets	$ 11,753

Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Goodwill
Beginning balance	$ 398,402	$ 397,344
Additions due to business combinations	233,530	1,058
Ending balance	$ 631,932	$ 398,402

Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands		12 Months Ended
	Apr. 28, 2020	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Subject to amortization:
Weighted-Average Amortization Period (Years)		8 years
Gross Amount		$ 317,955	$ 272,800
Accumulated Amortization		(163,624)	(138,521)
Total Other Intangible Assets
Gross Amount		329,708	272,800
Removal of fully amortized intangible assets		19,600
Amortization expense related to intangible assets		44,700	39,500	$ 38,000
Estimated aggregate amortization expense for intangible assets subject to amortization
2021		44,358
2022		33,046
2023		24,324
2024		21,864
2025		12,200
Research and development
Total Other Intangible Assets
Amortization expense related to intangible assets		33,200	29,500	27,300
Selling, general and administrative
Total Other Intangible Assets
Amortization expense related to intangible assets		11,500	10,000	10,700
Cost of revenues
Total Other Intangible Assets
Amortization expense related to intangible assets		0	0	$ 0
In-process research and development
Not subject to amortization:
Not subject to amortization		11,753
Redpine Signals
Total Other Intangible Assets
Gross intangible assets acquired		$ 76,500
Developed technology
Subject to amortization:
Weighted-Average Amortization Period (Years)		8 years
Gross Amount		$ 261,939	219,695
Accumulated Amortization		$ (125,435)	(111,634)
Customer relationships
Subject to amortization:
Weighted-Average Amortization Period (Years)		5 years
Gross Amount		$ 43,245	40,795
Accumulated Amortization		$ (31,877)	(22,742)
Customer relationships \| Redpine Signals
Subject to amortization:
Weighted-Average Amortization Period (Years)	2 years
Trademarks
Subject to amortization:
Weighted-Average Amortization Period (Years)		5 years
Gross Amount		$ 12,771	12,310
Accumulated Amortization		$ (6,312)	$ (4,145)
Trademarks \| Redpine Signals
Subject to amortization:
Weighted-Average Amortization Period (Years)	2 years

Debt - Convertible Senior Notes (Details) $ in Thousands			12 Months Ended
Debt - Convertible Senior Notes (Details) $ in Thousands	Jun. 01, 2020 USD ($) D $ / shares	Mar. 06, 2017 USD ($) D $ / shares	Jan. 02, 2021 USD ($)	Jan. 06, 2021 USD ($)
Debt
Loss on debt extinguishment			$ (4,060)
Credit Facility
Debt
Repayment of credit facility amount	$ 310,000
0.625% Convertible Senior Notes (2025 Notes)
Debt
Principal amount	$ 535,000
Semi-annual interest rate	0.625%		0.625%
Conversion rate, shares per $1,000 principal	8.1498
Conversion, number of shares of common stock	4,400
Initial conversion price \| $ / shares	$ 122.70
Debt issuance costs	$ 10,400
0.625% Convertible Senior Notes (2025 Notes) \| Conversion of Notes, Holders
Debt
Number of trading days within 30 trading day period \| D	20
Number of consecutive trading days \| D	30
Stock price trigger per share \| $ / shares	$ 159.51
Stock price trigger, as a percentage of conversion price	130.00%
Number of consecutive business days after the 10 consecutive trading day period \| D	5
Number of consecutive trading days before the five consecutive business days \| D	10
Maximum threshold stock price, as a percentage of conversion price	98.00%
0.625% Convertible Senior Notes (2025 Notes) \| Conversion of Notes, Company
Debt
Stock price trigger, as a percentage of conversion price	130.00%
Number of consecutive business days after the 10 consecutive trading day period \| D	20
Number of consecutive trading days before the five consecutive business days \| D	30
1.375% Convertible Senior Notes (2022 Notes)
Debt
Principal amount		$ 400,000
Semi-annual interest rate		1.375%	1.375%
Repayment of credit facility amount			$ 305,100
Aggregate principal amount of debt repurchased	$ 236,800		259,400
Conversion rate, shares per $1,000 principal		10.7744
Conversion, number of shares of common stock		4,300
Initial conversion price \| $ / shares		$ 92.81
Debt issuance costs		$ 10,600
Remaining principal amount				$ 140,600
1.375% Convertible Senior Notes (2022 Notes) \| Interest expense
Debt
Loss on debt extinguishment			$ (4,100)
1.375% Convertible Senior Notes (2022 Notes) \| Conversion of Notes, Holders
Debt
Number of trading days within 30 trading day period \| D		20
Number of consecutive trading days \| D		30
Stock price trigger per share \| $ / shares		$ 120.66
Stock price trigger, as a percentage of conversion price		130.00%
Maximum threshold stock price, as a percentage of conversion price		98.00%
1.375% Convertible Senior Notes (2022 Notes) \| Conversion of Notes, Company
Debt
Stock price trigger, as a percentage of conversion price		130.00%
Number of consecutive business days after the 10 consecutive trading day period \| D		20
Number of consecutive trading days before the five consecutive business days \| D		30

Debt - Carrying amount of Notes (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Jan. 06, 2021	Dec. 28, 2019
0.625% Convertible Senior Notes (2025 Notes)
Equity component
Effective interest rate	5.336%
Amortization period of debt discount and debt issuance costs	4 years 6 months
1.375% Convertible Senior Notes (2022 Notes)
Liability component
Principal		$ 140,600
Equity component
Effective interest rate	4.75%
Amortization period of debt discount and debt issuance costs	2 months 12 days
Convertible Senior Notes
Liability component
Principal	$ 675,567		$ 400,000
Unamortized debt discount	(103,953)		(27,580)
Unamortized debt issuance costs	(8,189)		(4,163)
Net carrying amount	563,425		368,257
Equity component
Net carrying amount	$ 108,438		$ 57,735

Debt - Interest expense (Details) - USD ($) $ in Thousands	12 Months Ended
Debt - Interest expense (Details) - USD ($) $ in Thousands	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Interest expense related to the notes
Interest Expense, Total	$ 34,142	$ 20,233	$ 19,694
Convertible Senior Notes
Interest expense related to the notes
Contractual interest expense	5,530	5,485	5,500
Amortization of debt discount	19,375	11,717	11,202
Amortization of debt issuance costs	2,058	1,768	1,690
Interest Expense, Total	$ 26,963	$ 18,970	$ 18,392

Debt - Credit Facility (Details) - USD ($) $ in Millions	12 Months Ended
Debt - Credit Facility (Details) - USD ($) $ in Millions	Jan. 02, 2021	Mar. 27, 2020
Credit Facility
Debt
Amount borrowed		$ 310.0
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
Credit Facility \| Scenario: Credit facility debt covenants
Debt
Maximum net leverage ratio	4.25
Maximum secured leverage ratio	3.50
Minimum interest coverage ratio	2.50
Revolving Credit Facility
Debt
Maximum borrowing capacity	$ 400.0
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 Rate
Debt
Interest rate margin (as a percent)	1.00%
Revolving credit facility, other than swingline loans \| Eurodollar Rate \| Minimum
Debt
Interest rate margin (as a percent)	1.00%
Revolving credit facility, other than swingline loans \| Eurodollar Rate \| Maximum
Debt
Interest rate margin (as a percent)	1.75%
Revolving credit facility, other than swingline loans \| Base Rate \| Minimum
Debt
Interest rate margin (as a percent)	0.00%
Revolving credit facility, other than swingline loans \| Base Rate \| Maximum
Debt
Interest rate margin (as a percent)	0.75%
Letter of Credit
Debt
Maximum borrowing capacity	$ 25.0
Swingline Loans
Debt
Maximum borrowing capacity	$ 10.0

Leases - Supplemental Lease Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Leases
Operating lease costs (ASC Topic 842)	$ 5,600	$ 5,800
Rent expense (ASC Topic 840)			$ 6,000
Balance Sheet Information
Operating lease right-of-use assets	28,213	16,086
Operating lease liabilities	29,900	17,894
Cash Flow Information
Cash paid for operating lease liabilities	5,942	6,023
Right-of-use assets obtained in exchange for operating lease obligations	$ 16,711	$ 2,631
Operating Lease Information
Weighted-average remaining lease term	6 years 6 months	4 years 6 months
Weighted-average discount rate	4.37%	5.26%

Leases - Maturities of operating lease liabilities (Details) - USD ($) $ in Thousands	Jan. 02, 2021	Dec. 28, 2019
Leases
2021	$ 6,787
2022	6,174
2023	5,367
2024	4,874
2025	3,278
Thereafter	8,421
Total lease payments	34,901
Less imputed interest	(5,001)
Total lease liabilities	$ 29,900	$ 17,894
Operating lease liabilities, Statement of Financial Position	us-gaap:OtherLiabilitiesCurrent us-gaap:LiabilitiesOtherThanLongtermDebtNoncurrent	us-gaap:OtherLiabilitiesCurrent us-gaap:LiabilitiesOtherThanLongtermDebtNoncurrent

Commitments and Contingencies (Details) $ in Millions	12 Months Ended
Commitments and Contingencies (Details) $ in Millions	Jan. 02, 2021 USD ($)
Commitments and Contingencies
Funded portion of investment commitment	$ 7.8
Maximum
Commitments and Contingencies
Commitment to invest in limited partnership	$ 10.0

Stockholders' Equity - Common Stock and Share Repurchase Program (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018	Apr. 30, 2020
Share Repurchase Programs
Value of shares repurchased and retired	$ 16,287	$ 26,716	$ 39,276
Common Stock
Common Stock
Number of shares issued during the period	600,000
Share Repurchase Programs
Number of shares repurchased and retired	210	301	434
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	200,000	300,000	400,000
Value of shares repurchased and retired	$ 16,300	$ 26,700	$ 39,300

Revenues (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
Revenues (Details) - USD ($) $ in Thousands	Jan. 02, 2021	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Revenues
Revenues		$ 886,677	$ 837,554	$ 868,267
Revenue from performance obligations that were satisfied in previous reporting periods		17,700	17,600	24,300
Increase in revenue due to revision in estimates of variable consideration	$ 11,900
Distributors
Revenues
Revenues		696,019	610,410	618,989
Direct customers
Revenues
Revenues		190,658	227,144	249,278
Internet of Things
Revenues
Revenues		513,670	488,156	463,838
Infrastructure and automotive
Revenues
Revenues		$ 373,007	$ 349,398	$ 404,429

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Stock-Based Compensation - Stock Incentive Plan (Details) - 2009 Stock Incentive Plan - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Stock-Based Compensation
Number of available shares deducted for each share granted	1
Minimum
Stock-Based Compensation
Award vesting period	3 years
Maximum
Stock-Based Compensation
Award vesting period	4 years
Full value awards
Stock-Based Compensation
Number of equity awards granted	700,000	700,000	600,000
MSUs
Stock-Based Compensation
Number of equity awards granted	82,000	93,000	41,000
Cash consideration based upon achievement of specified levels of market conditions	$ 0	$ 0	$ 0
Award vesting period	3 years	3 years	3 years
PSUs
Stock-Based Compensation
Number of equity awards granted	0	0	41,000
Cash consideration based upon achievement of specified levels of market conditions			$ 0
Award vesting period			3 years
Stock options
Stock-Based Compensation
Stock options granted (in shares)	0	0	0
Minimum exercise price as percentage of fair market value of shares on the date of grant	100.00%

Stock-Based Compensation - 2009 Employee Stock Purchase Plan (Details) - 2009 Employee Stock Purchase Plan - $ / shares	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
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
Shares issued	177,000	208,000	223,000
Weighted average fair value for purchase rights granted (in dollars per share)	$ 36.12

Stock-Based Compensation - Fair Value Assumptions (Details)	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Fair value assumptions
Dividend yield (as a percent)	0.00%	0.00%	0.00%
MSUs
Fair value assumptions
Expected volatility (as a percent)	36.00%	31.00%	29.00%
Risk-free interest rate %	1.30%	2.40%	2.40%
Expected term	2 years 10 months 24 days	2 years 10 months 24 days	2 years 10 months 24 days
Dividend yield (as a percent)	0.00%	0.00%	0.00%
2009 Employee Stock Purchase Plan
Fair value assumptions
Expected volatility (as a percent)	67.00%	37.00%	30.00%
Risk-free interest rate %	0.15%	1.60%	2.40%
Expected term	9 months	9 months	9 months
Dividend yield (as a percent)	0.00%	0.00%	0.00%

Stock-Based Compensation - Stock options activity (Details) - Stock options $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 02, 2021 USD ($) $ / shares shares
Number of options
Outstanding at the beginning of the year (in shares) \| shares	137
Outstanding at the end of the year (in shares) \| shares	127
Vested and expected to vest at the end of the year (in shares) \| shares	127
Exercisable at the end of the year (in shares) \| shares	127
Weighted-Average Exercise Price
Outstanding at the beginning of the year (in dollars per share) \| $ / shares	$ 39.47
Outstanding at the end of the year (in dollars per share) \| $ / shares	39.16
Vested and expected to vest at the end of the year (in dollars per share) \| $ / shares	39.16
Exercisable at the end of the year (in dollars per share) \| $ / shares	$ 39.16
Weighted-Average Remaining Contractual Term (In years)
Outstanding at the end of the year	5 years 1 month 9 days
Vested and expected to vest at the end of the year	5 years 1 month 9 days
Exercisable at the end of the year	5 years 1 month 9 days
Aggregate Intrinsic Value
Outstanding at the end of the year (in dollars) \| $	$ 11,232
Vested and expected to vest at the end of the year (in dollars) \| $	11,232
Options exercisable at the end of the year (in dollars) \| $	$ 11,232

Stock-Based Compensation - RSAs and RSUs, PSUs and MSUs activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
RSAs and RSUs
Number of equity awards
Outstanding at the beginning the of year (in shares)	1,084
Granted (in shares)	610
Vested Earned or issued (in shares)	(546)
Cancelled or forfeited (in shares)	(42)
Outstanding at the end of the year (in shares)	1,106	1,084
Outstanding at the end of the year and expected to vest (in shares)	1,026
Weighted-Average Purchase Price
Granted (in dollars per share)	$ 100.27	$ 89.35	$ 93.75
Weighted-Average Remaining Vesting Term
Outstanding at the end of year	1 year 21 days
Outstanding at the end of year and expected to vest	1 year 21 days
Aggregate Intrinsic Value
Outstanding at the end of the year (in dollars)	$ 140,801
Outstanding at the end of the year and expected to vest (in dollars)	$ 130,635
PSUs and MSUs
Number of equity awards
Outstanding at the beginning the of year (in shares)	262
Granted (in shares)	82
Vested Earned or issued (in shares)	(83)
Cancelled or forfeited (in shares)	(28)
Outstanding at the end of the year (in shares)	233	262
Outstanding at the end of the year and expected to vest (in shares)	215
Weighted-Average Purchase Price
Granted (in dollars per share)	$ 98.58	$ 85.79	$ 97.53
Weighted-Average Remaining Vesting Term
Outstanding at the end of year	1 year 1 month 20 days
Outstanding at the end of year and expected to vest	1 year 1 month 20 days
Aggregate Intrinsic Value
Outstanding at the end of the year (in dollars)	$ 29,703
Outstanding at the end of the year and expected to vest (in dollars)	$ 27,390

Stock-Based Compensation - Grant Date Weighted Average Fair Value (Details) - $ / shares	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
RSAs and RSUs
Stock-Based Compensation
Equity award, weighted average fair value at grant date	$ 100.27	$ 89.35	$ 93.75
PSUs and MSUs
Stock-Based Compensation
Equity award, weighted average fair value at grant date	$ 98.58	$ 85.79	$ 97.53

Stock-Based Compensation - Stock-based payment and stock option values (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Stock-based payment and stock option values
Cash received for the issuance of common stock, net of shares withheld for taxes	$ 15,000
Payment for shares withheld for taxes	18,124	$ 16,295	$ 19,483
Stock options
Stock-based payment and stock option values
Intrinsic value of stock options exercised	558		1,952
RSUs
Stock-based payment and stock option values
Intrinsic value of stock-based payments that vested	48,534	57,693	68,012
Grant date fair value of stock-based payments that vested	37,477	40,434	37,720
PSUs and MSUs
Stock-based payment and stock option values
Intrinsic value of stock-based payments that vested	8,545	3,649	3,562
Grant date fair value of stock-based payments that vested	$ 6,302	$ 1,461	$ 1,788

Stock-Based Compensation - Stock-based compensation costs (Details) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Stock-Based Compensation
Stock-based compensation cost	$ 60,091	$ 54,799	$ 50,077
Income tax benefit	3,616	2,476	8,890
Share based compensation costs after tax	56,475	52,323	41,187
Total unrecognized compensation costs related to awards	$ 78,600
Weighted-average period of recognition of unrecognized compensation costs	2 years 2 months 12 days
Reserved shares of common stock for future issuance	1,823
Cost of revenues
Stock-Based Compensation
Stock-based compensation cost	$ 1,477	1,316	1,238
Research and development
Stock-Based Compensation
Stock-based compensation cost	29,212	26,187	23,867
Selling, general and administrative
Stock-Based Compensation
Stock-based compensation cost	$ 29,402	$ 27,296	$ 24,972
2009 Stock Incentive Plan
Stock-Based Compensation
Reserved shares of common stock for future issuance	1,223
2009 Employee Stock Purchase Plan
Stock-Based Compensation
Reserved shares of common stock for future issuance	600

Employee Benefit Plan (Details) - USD ($) $ in Millions	12 Months Ended
Employee Benefit Plan (Details) - USD ($) $ in Millions	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Employee Benefit Plan
Contributions made to the 401(k) Plan	$ 4.2	$ 3.9	$ 3.7

Income Taxes - Income before income taxes and provision (benefit) for income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Income before income taxes
Domestic	$ (19,491)	$ 2,025	$ 19,777
Foreign	34,792	47,624	52,384
Income before income taxes	15,301	49,649	72,161
Current:
Domestic	1,485	(779)	(8,843)
Foreign	7,803	8,157	5,888
Total Current	9,288	7,378	(2,955)
Deferred:
Domestic	(4,031)	33,624	(8,978)
Foreign	(2,487)	(10,618)	503
Total Deferred	(6,518)	23,006	(8,475)
Provision (benefit) for income taxes	$ 2,770	$ 30,384	$ (11,430)

Income Taxes - Tax rate reconciliation (Details)	12 Months Ended
Income Taxes - Tax rate reconciliation (Details)	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Reconciliation of federal statutory tax rate to effective tax rate
Federal statutory rate (as a percent)	21.00%	21.00%	21.00%
Foreign tax rate benefit (as a percent)	(19.20%)	(14.90%)	(14.80%)
Research and development tax credits (as a percent)	(50.90%)	(15.20%)	(9.80%)
GILTI and Subpart F income	35.70%	4.90%	4.10%
Nondeductible (nontaxable) foreign items	(1.50%)	5.40%	4.40%
State tax expense	2.60%	1.00%	1.50%
Release of prior year unrecognized tax benefits (as a percent)		(0.40%)	(2.70%)
Nondeductible officer compensation	15.70%	4.30%	2.40%
Change in cost-sharing treatment of stock-based compensation		54.80%	(2.20%)
Excess tax benefit of stock-based compensation	(4.00%)	(2.20%)	(5.90%)
Change in prior period valuation allowance	2.50%	1.30%	(2.50%)
One-time impacts of tax reform		(0.50%)	(11.50%)
Nondeductible (nontaxable) domestic items	14.80%	2.80%	1.50%
Other (as a percent)	1.40%	(1.10%)	(1.30%)
Effective Tax Rate (as a percent)	18.10%	61.20%	(15.80%)

Income Taxes - Singapore Operations (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Income Taxes
Period for payment of transition tax	8 years
Transition Tax obligation	$ 21.4
Singapore
Income Taxes
Foreign income tax expense (benefit)	$ 1.8	$ 4.0	$ 8.1
Income (loss) per diluted share (in dollars per share)	$ 0.04	$ 0.09	$ 0.18

- Definition

The amount of net income (loss) derived from continuing operations during the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=121326447&loc=d3e1337-109256

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(23))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(27))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(11))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(25))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-03(13))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868656-224227

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121326447&loc=SL5780133-109256

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=121326447&loc=d3e1252-109256

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22595-107794

+ Details

Income Taxes - Deferred Income Taxes (Details) - USD ($) $ in Thousands	Jan. 02, 2021	Dec. 28, 2019
Deferred tax assets:
Net operating loss carryforwards	$ 6,839	$ 7,912
Tax credit carryforwards	22,421	14,755
Stock-based compensation	2,683	2,619
Intangible assets	9,802	7,135
Fixed assets	261	289
Capitalized research and development	1,237	1,735
Deferred income on shipments to distributors	3,099	4,018
Leases	6,335	3,446
Accrued liabilities and other	7,652	7,374
Deferred tax assets	60,329	49,283
Less: Valuation allowance	(5,311)	(4,486)
Deferred tax assets, net	55,018	44,797
Deferred tax liabilities:
Intangible assets	16,758	16,621
Fixed assets	8,473	4,969
Leases	5,999	3,166
Debt	21,674	5,741
Prepaid expenses and other	4,919	2,424
Deferred tax liabilities	57,823	32,921
Net deferred tax liabilities	$ (2,805)
Net deferred tax assets		$ 11,876

Income Taxes - Operating Loss and Tax Credit Carryforwards (Details) $ in Millions	Jan. 02, 2021 USD ($)
Federal \| Research and development tax credit
Operating loss and tax credit carryforwards
Tax credit carryforwards	$ 10.5
Foreign
Operating loss and tax credit carryforwards
Tax credit carryforwards	0.6
State
Operating loss and tax credit carryforwards
Operating loss carryforwards	31.6
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	13.0
Silicon Clocks, Spectra Linear and Ember \| Federal
Operating loss and tax credit carryforwards
Operating loss carryforwards	23.2
Silicon Clocks, Spectra Linear and Ember \| Federal \| Research and development tax credit
Operating loss and tax credit carryforwards
Tax credit carryforwards	$ 1.9

Income Taxes - Valuation allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Changes in the valuation allowance for deferred tax assets
Balance at Beginning of Period	$ 4,486	$ 4,975	$ 6,518
Additions Charged to Expenses	847	1,044	435
Deductions	(22)	(1,533)	(1,978)
Balance at End of Period	5,311	$ 4,486	$ 4,975
Undistributed earnings of foreign subsidiaries	94,800
Provision for foreign withholding tax and state income taxes	$ 0

Income Taxes - Uncertain Tax Positions (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Summary of the activity related to gross unrecognized tax benefits
Beginning balance	$ 2,276	$ 2,036	$ 3,187
Additions based on tax positions related to current year	577	436	630
Additions based on tax positions related to prior years			115
Reductions based on tax positions related to prior years		(196)
Reductions for tax positions as a result of a lapse of the applicable statute of limitations			(1,896)
Ending balance	2,853	2,276	2,036
Unrecognized tax benefits
Gross unrecognized tax benefits, inclusive of interest	3,000	2,400	2,100
Gross unrecognized tax benefits which would affect the effective tax rate if recognized	2,100	1,900	$ 2,100
Norwegian \| 2013
Unrecognized tax benefits
Additional income tax expense	$ 141,300	$ 16,500

Segment Information (Details) $ in Thousands	12 Months Ended
Segment Information (Details) $ in Thousands	Jan. 02, 2021 USD ($) segment product	Dec. 28, 2019 USD ($)	Dec. 29, 2018 USD ($)
Segment Information
Number of operating segments \| segment	1
Number of product categories \| product	2
Revenues	$ 886,677	$ 837,554	$ 868,267
Property and equipment, net	139,439	135,939
United States
Segment Information
Revenues	92,136	110,451	149,385
Property and equipment, net	128,204	126,572
China
Segment Information
Revenues	397,751	354,855	344,255
Rest of world
Segment Information
Revenues	396,790	372,248	$ 374,627
Property and equipment, net	$ 11,235	$ 9,367

- Definition

+ References

+ Details