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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jul. 04, 2015	Aug. 07, 2015
Document Information [Line Items]
Entity Registrant Name	LATTICE SEMICONDUCTOR CORP
Entity Central Index Key	0000855658
Document Type	10-Q
Document Period End Date	Jul. 04, 2015
Amendment Flag	false
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--01-02
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding (actual number)		117,616,304

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Income Statement [Abstract]
Product	$ 96,300	$ 99,320	$ 182,015	$ 195,957
Licensing and services	10,160	0	13,042
Total Revenue	106,460	99,320	195,057	195,957
Costs and expenses:
Cost of product revenue	48,163	44,345	88,835	86,844
Cost of licensing and services revenue	171	0	264
Research and development	39,552	22,302	67,194	43,541
Selling, general and administrative	28,189	18,832	49,277	37,581
Acquisition related charges	3,270	0	21,468	0
Restructuring charges	4,068	3	8,962	14
Amortization of acquired intangible assets	8,941	737	11,883	1,474
Costs and expenses	132,354	86,219	247,883	169,454
(Loss) income from operations	(25,894)	13,101	(52,826)	26,503
Interest expense	(5,505)	(37)	(7,116)	(85)
Other (expense) income, net	(201)	943	(355)	1,300
(Loss) income before income taxes	(31,600)	14,007	(60,297)	27,718
Income tax expense	4,056	2,236	28,721	3,963
Net (loss) income	(35,656)	11,771	(89,018)	23,755
Less: Net loss attributable to noncontrolling interest	86	0	101	0
Net (loss) income attributable to common stockholders	$ (35,570)	$ 11,771	$ (88,917)	$ 23,755
Net (loss) income per share:
Basic (in dollars per share)	$ (0.30)	$ 0.10	$ (0.76)	$ 0.20
Diluted (in dollars per share)	$ (0.30)	$ 0.10	$ (0.76)	$ 0.20
Shares used in per share calculations:
Basic (in shares)	116,903	117,904	116,883	117,170
Diluted (in shares)	116,903	120,944	116,883	120,041

Consolidated Statement of Comprehensive (Loss) Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Net (loss) income	$ (35,656)	$ 11,771	$ (89,018)	$ 23,755
Other comprehensive (loss) income:
Unrealized gain (loss) related to marketable securities, net	17	(19)	(3)	(70)
Less: reclassification adjustment for losses (gains) included in other (expense) income, net	(54)	108	234	99
Realized gain on sale of auction rate securities, previously unrealized, net of tax	0	(1,147)	0	(1,147)
Translation adjustment	(49)	914	(55)	738
Defined benefit pension net actuarial losses			(156)
Comprehensive (loss) income	(35,740)	11,627	(88,997)	23,375
Less: Comprehensive loss attributable to noncontrolling interest	86	0	101	0
Comprehensive (loss) income attributable to common stockholders	(35,654)	11,627	(88,896)	23,375
Accumulated other comprehensive loss
Other comprehensive (loss) income:
Unrealized gain (loss) related to marketable securities, net			(3)
Less: reclassification adjustment for losses (gains) included in other (expense) income, net			234
Translation adjustment			(55)
Defined benefit pension net actuarial losses	$ 2	$ 0	$ (155)	$ 0

Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Current assets:
Cash and cash equivalents	$ 101,498	$ 115,611
Short-term marketable securities	36,637	139,233
Accounts receivable, net of allowance for doubtful accounts	76,873	62,372
Inventories	80,796	64,925
Prepaid expenses and other current assets	20,527	16,281
Total current assets	316,331	398,422
Property and equipment, less accumulated depreciation of $160,279 at July 4, 2015 and $154,078 at January 3, 2015	50,182	27,796
Intangible assets, net of amortization	189,449	9,537
Goodwill	270,083	44,808
Deferred income taxes	3,941	20,105
Other long-term assets	11,619	9,862
Total assets	841,605	510,530
Current liabilities:
Accounts payable and accrued expenses (includes restructuring)	73,876	32,171
Accrued payroll obligations	17,027	13,629
Current portion of long-term debt	242	0
Deferred income and allowances on sales to sell-through distributors	19,584	14,946
Deferred license revenue	1,566	0
Total current liabilities	112,295	60,746
Long-term debt	338,206	0
Other long-term liabilities	24,316	8,809
Total liabilities	474,817	69,555
Commitments and contingencies
Redeemable noncontrolling interest	7,366	0
Stockholders' equity:
Preferred stock, $.01 par value, 10,000,000 shares authorized, none issued and outstanding	0	0
Common stock, $.01 par value, 300,000,000 shares authorized; 117,560,000 shares issued and outstanding as of July 4, 2015 and 117,288,000 shares issued and outstanding as of January 3, 2015	1,176	1,173
Additional paid-in capital	642,640	635,299
Accumulated deficit	(282,531)	(193,613)
Accumulated other comprehensive loss	(1,863)	(1,884)
Total stockholders' equity	359,422	440,975
Total liabilities, redeemable noncontrolling interest and stockholders' equity	$ 841,605	$ 510,530

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	117,560,000	117,288,000
Common stock, shares outstanding	117,560,000	117,288,000
Accumulated Depreciation	$ 160,279	$ 154,078

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014
Cash flows from operating activities:
Net (loss) income	$ (89,018)	$ 23,755
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	25,363	11,633
Amortization of debt issuance costs and discount	1,105	0
Change in deferred income tax provision	22,385	2,824
Loss (gain) on sale of marketable securities	293	(1,698)
Stock-based compensation expense	8,363	6,410
Changes in assets and liabilities:
Accounts receivable, net	16,176	(16,204)
Inventories	4,969	(13,048)
Prepaid expenses and other current assets	47	(1,632)
Accounts payable and accrued expenses (includes restructuring)	(8,131)	(962)
Accrued payroll obligations	(2,637)	(3,159)
Deferred income and allowances on sales to sell-through distributors	4,638	16,136
Deferred income and allowances on sales to sell-through distributors	1,040	0
Net cash (used in) provided by operating activities	(15,407)	24,055
Cash flows from investing activities:
Proceeds from sales or maturities of short-term marketable securities	112,381	45,836
Proceeds from sales of auction rate securities	0	5,488
Purchases of marketable securities	(4,005)	(53,366)
Cash paid for business acquisition, net of cash acquired	(426,661)	0
Capital expenditures, net	(7,032)	(4,875)
Cash paid for a non-marketable cost-method investment	(1,500)	0
Cash paid for software licenses	(3,251)	(1,359)
Net cash used in investing activities	(330,068)	(8,276)
Cash flows from financing activities:
Net share settlement upon issuance of restricted stock units	(4,438)	(2,334)
Purchases of treasury stock	(6,970)	0
Net proceeds from issuance of common stock	5,546	9,419
Net proceeds from issuance of long-term debt	346,500	0
Cash paid for debt issuance costs	(8,282)	0
Repayment of debt	(875)	0
Net cash provided by financing activities	331,481	7,085
Effect of exchange rate change on cash	(119)	802
Net (decrease) increase in cash and cash equivalents	(14,113)	23,666
Beginning cash and cash equivalents	115,611	114,310
Ending cash and cash equivalents	101,498	137,976
Supplemental cash flow information:
Change in unrealized gain (loss) related to marketable securities, net of tax, included in Accumulated other comprehensive (loss) income	(3)	29
Income taxes paid, net of refunds	3,112	798
Accrued purchases of plant and equipment	$ (227)	$ 58

Basis of Presentation and Significant Accounting Policies

6 Months Ended

Jul. 04, 2015

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies

Basis of Presentation and Significant Accounting Policies:

The accompanying Consolidated Financial Statements are unaudited and have been prepared by Lattice Semiconductor Corporation (“Lattice,” the “Company,” “we,” “us,” or “our”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and in our opinion include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of results for the interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") have been condensed or omitted pursuant to such rules and regulations. These Consolidated Financial Statements should be read in conjunction with our audited financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 3, 2015.

We report based on a 52 or 53-week fiscal year ending on the Saturday closest to December 31. Our second quarter of fiscal 2015 and second quarter of fiscal 2014 ended on July 4, 2015 and June 28, 2014, respectively. All references to quarterly, three or six months ended financial results are references to the results for the relevant 13-week or 26-week fiscal period.

Principles of Consolidation

The accompanying Consolidated Financial Statements include the accounts of Lattice and its subsidiaries after the elimination of all intercompany balances and transactions. Certain balances in prior fiscal years have been reclassified to conform to the presentation adopted in the current year.

Cash Equivalents and Marketable Securities

We consider all investments that are readily convertible into cash and have original maturities of three months or less to be cash equivalents. Cash equivalents consist primarily of highly liquid investments in time deposits or money market accounts and are carried at cost. We account for marketable securities as available-for-sale investments, as defined by U.S. GAAP, and record unrealized gains or losses to Accumulated other comprehensive loss on our Consolidated Balance Sheets, unless losses are considered other than temporary, in which case, those are recorded directly to the Consolidated Statements of Operations and Statements of Comprehensive (Loss) Income.

Fair Value of Financial Instruments

We invest in various financial instruments including corporate and government bonds, notes, and commercial paper. In the past we have also invested in auction rate securities. We value these instruments at their fair value and monitor the portfolio for impairment on a periodic basis. In the event that the carrying value of an investment exceeds its fair value and the decline in value is determined to be other than temporary, we record an impairment charge and establish a new carrying value. We assess other than temporary impairment of marketable securities in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements.” The framework under the provisions of ASC 820 establishes three levels of inputs that may be used to measure fair value. Each level of input has different levels of subjectivity and difficulty involved in determining fair value.

Foreign Exchange and Translation of Foreign Currencies

We have international subsidiary and branch operations. In addition, a portion of our silicon wafer and other purchases are denominated in Japanese yen, we bill certain Japanese customers in yen and collect a Japanese consumption tax refund in yen. Gains or losses from foreign exchange rate fluctuations on balances denominated in foreign currencies are reflected in Other (expense) income, net. Realized and unrealized gains or losses on foreign currency transactions were not significant for the periods presented. We translate accounts denominated in foreign currencies in accordance with ASC 830, “Foreign Currency Matters,” using the current rate method under which asset and liability accounts are translated at the current rate, while stockholders' equity accounts are translated at the appropriate historical rates, and revenue and expense accounts are translated at average monthly exchange rates. Translation adjustments related to the consolidation of foreign subsidiary financial statements are reflected in Accumulated other comprehensive loss in Stockholders' equity.

Derivative Financial Instruments

We mitigate foreign currency exchange rate risk by entering into foreign currency forward exchange contracts. At July 4, 2015 and January 3, 2015, we had open foreign exchange contracts of $1.9 million and $4.2 million, respectively. One contract outstanding at July 4, 2015 settled in July 2015, and three contracts will settle in June 2016. Although these hedges mitigate our foreign currency exchange rate exposure from an economic perspective, they were not designated as "effective" hedges under GAAP and as such are adjusted to fair value through Other (expense) income, net, with an impact of less than $0.1 million for the periods reported in the Consolidated Statements of Operations. We do not hold or issue derivative financial instruments for trading or speculative purposes.

Concentration Risk

Potential exposure to concentration risk consists primarily of revenue, cash and cash equivalents, marketable securities, trade receivables and supply of wafers for our new products.

Our top five end customers constituted approximately 33% of our revenue for the second quarter of fiscal 2015, compared to approximately 47% for the second quarter of fiscal 2014. Our top five end customers constituted approximately 34% of our revenue for the first six months of fiscal 2015, compared to approximately 49% for the first six month of fiscal 2014.

Our largest end customer accounted for approximately 12% of total revenue in the second quarter of fiscal 2015 and 11% of total revenue in the first six months of fiscal 2015. Our two largest end customers accounted for approximately 20% and 14% of total revenue, respectively, in the second quarter of fiscal 2014 and 21% and 14% of total revenue, respectively, in the first six months of fiscal 2014. No other customers accounted for more than 10% of total revenue during these periods.

Concentration of credit risk with respect to trade receivables is mitigated by our credit and collection process including active management of collections, credit limits, routine credit evaluations for essentially all customers and secure transactions with letters of credit or advance payments where appropriate. Accounts receivable do not bear interest and are shown net of allowances for doubtful accounts of $1.1 million and $0.9 million at July 4, 2015 and January 3, 2015, respectively. We regularly review our allowance for doubtful accounts and the aging of our accounts receivable. Write-offs for uncollected trade receivables have not been significant to date.

We place our investments primarily through two financial institutions and mitigate the concentration of credit risk by limiting the maximum portion of the investment portfolio which may be invested in any one instrument. Our investment policy defines approved credit ratings for investment securities. Investments on-hand in marketable securities consisted primarily of money market instruments, “AA” or better corporate notes and bonds and commercial paper, and U.S. government agency obligations. See Note 5 for a discussion of the liquidity attributes of our marketable securities.

We rely on a limited number of foundries for our wafer purchases including Fujitsu Limited, Seiko Epson Corporation, Taiwan Semiconductor Manufacturing Company, Ltd, and United Microelectronics Corporation.

Revenue Recognition and Deferred Income

Product Revenue

We sell our products directly to end customers, through a network of independent manufacturers' representatives, and indirectly through a network of independent sell-in and sell-through distributors. Distributors provide periodic data regarding the product, price, quantity, and end customer when products are resold, as well as the quantities of our products they still have in stock.

Revenue from sales to original equipment manufacturers ("OEMs") and sell-in distributors is generally recognized upon shipment. Reserves for sell-in stock rotations, where applicable, are estimated based primarily on historical experience and provided for at the time of shipment. Revenue from sales by our sell-through distributors is recognized at the time of reported resale. Under both types of revenue recognition, persuasive evidence of an arrangement exists, the price is fixed or determinable, title has transferred, collection of resulting receivables is reasonably assured, and there are no remaining customer acceptance requirements and no remaining significant performance obligations.

Orders from our sell-through distributors are initially recorded at published list prices; however, for a majority of our sales, the final selling price is determined at the time of resale and in accordance with a distributor price agreement. In certain circumstances, we allow sell-through distributors to return unsold products. At times, we protect our sell-through distributors against reductions in published list prices. For these reasons, we do not recognize revenue until products are resold by sell-through distributors to an end customer.

For sell-through distributors, at the time of shipment to distributors, we (a) record Accounts receivable at published list price since there is a legally enforceable obligation from the distributor to pay us currently for product delivered, (b) relieve inventory for the carrying value of goods shipped since legal title has passed to the distributor, and (c) record deferred revenue and deferred cost of sales in Deferred income and allowances on sales to sell-through distributors in the liability section of our Consolidated Balance Sheets. The final price is set at the time of resale and is determined in accordance with a distributor price agreement. Revenue and cost of sales to sell-through distributors are deferred until either the product is resold by the distributor or, in certain cases, return privileges terminate, at which time Revenue and Cost of products sold are reflected in Net (loss) income, and Accounts receivable, net are adjusted to reflect the final selling price.

The components of Deferred income and allowances on sales to sell-through distributors are presented in the following table:



(In thousands)	July 4, 2015			January 3, 2015
Inventory valued at published list price and held by sell-through distributors with right of return	$	51,153		$	50,854
Allowance for distributor advances	(26,770		)	(29,490		)
Deferred cost of sales related to inventory held by sell-through distributors	(4,799		)	(6,418		)
Total Deferred income and allowances on sales to sell-through distributors	$	19,584		$	14,946

A significant portion of our year-to-date revenue in fiscal 2015 was from sell-through distributors. Resale of products by sell-through distributors as a percentage of total revenue was 43% and 45% for the three and six months ended July 4, 2015, respectively, and 42% and 40% for the three and six months ended June 28, 2014, respectively.

We must use estimates and apply judgment to reconcile sell-through distributors' reported inventories to their activities. Errors in our estimates or judgments could result in inaccurate reporting of our Revenue, Cost of products sold, Deferred income and allowances on sales to sell-through distributors, and Net (loss) income.

Licensing and Services Revenue

Our licensing and services revenue is comprised of revenue from our intellectual property ("IP") core licensing activity, patent monetization activities, device management system and remote support services, and royalty and adopter fee revenue from our standards activities. These activities are complementary to our product sales and help us monetize our intellectual property and accelerate market adoption curves associated with our technology and standards.

We enter into IP licensing agreements that generally provide licensees the right to incorporate our IP components into their products pursuant to terms and conditions that vary by licensee. Revenue earned under these agreements is classified as licensing and services revenue. Our IP licensing agreements generally include multiple elements, which may include one or more off-the-shelf or customized IP licenses bundled with support services covering a fixed period of time, generally one year. If the different elements of a multiple-element arrangement qualify as separate units of accounting, we allocate the total arrangement consideration to each element based on relative selling price.

Amounts allocated to off-the-shelf IP licenses are recognized at the time of sale provided the other conditions for revenue recognition have been met. Amounts allocated to the support services are deferred and recognized on a straight-line basis over the support period, generally one year. Certain licensing agreements provide for royalty payments based on agreed-upon royalty rates, which may be fixed or variable depending on the terms of the agreement. The amount of revenue we recognize is based on a specified time period or on the agreed-upon royalty rate multiplied by the number of units shipped by the customer.

From time to time, we enter into IP licensing agreements that involve significant modification, customization or engineering services. Revenues derived from these contracts are accounted for using the percentage-of-completion method or completed contract method. The completed contract method is used for contracts where there is a risk of final acceptance by the customer or for short-term contracts. HDMI royalty revenue is determined by a contractual allocation formula agreed to by the members ("Founders") of the HDMI consortium. Evidence of an arrangement, as to HDMI royalty revenue, is deemed complete when all of the Founders agree on the royalty sharing formula.

Property and Equipment

Property and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method for financial reporting purposes over the estimated useful lives of the related assets, generally three to five years for equipment and software, one to three years for tooling and thirty years for buildings. Upon disposal of Property and equipment, the accounts are relieved of the costs and related accumulated depreciation and amortization, and resulting gains or losses are reflected in the Consolidated Statements of Operations for recognized gains and losses, or in the Consolidated Balance Sheets for deferred gains and losses. Repair and maintenance costs are expensed as incurred.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and classification of assets, such as marketable securities, accounts receivable, inventory, goodwill (including the assessment of reporting unit), intangible assets, current and deferred income taxes, accrued liabilities (including restructuring charges and bonus arrangements), deferred income and allowances on sales to sell-through distributors, disclosure of contingent assets and liabilities at the date of the financial statements, anticipated amounts used in acquisition valuations and purchase accounting, and the reported amounts of revenue and expenses during the fiscal periods presented. Actual results could differ from those estimates.

New Accounting Pronouncements	6 Months Ended
New Accounting Pronouncements	Jul. 04, 2015
Accounting Policies [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements: In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance under U.S. GAAP when it becomes effective. While ASU 2014-09 was to be effective for annual periods and interim periods beginning after December 15, 2016, on July 9, 2015, the FASB approved the deferral of the effective date to periods beginning on or after December 15, 2017, with early adoption permitted for annual reporting periods beginning after December 15, 2016, and interim periods within that year. With the deferral, we intend to adopt ASU 2014-09 on December 31, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. We are currently evaluating the impact of ASU 2014-09 on our consolidated financial statements and related disclosures and have not yet selected a transition method. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, which focuses on the consolidation evaluation for reporting organizations and requires the evaluation of whether or not certain legal entities should be consolidated. All legal entities are subject to reevaluation under the revised consolidation model. The new standard will become effective for us on January 3, 2016. Early adoption is permitted, including adoption in an interim period. We do not expect the adoption of this accounting standard update to impact our consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Cost". The ASU requires debt issuance costs associated with a recognized debt liability to be presented on the balance sheet as a direct deduction from the carrying amount of the corresponding debt liability. This new guidance is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. An entity should apply the new guidance on a retrospective basis. We adopted this ASU effective with the first quarter of fiscal year 2015. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory. Under this ASU, inventory will be measured at the “lower of cost and net realizable value” and options that currently exist for “market value” will be eliminated. The ASU defines net realizable value as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measure-ment. ASU 2015-11 is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. We do not expect the adoption of this accounting standard update to impact our consolidated financial statements.

- Definition

The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6507316

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Direct Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6510796

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22583-107794

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Indirect Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6515603

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22580-107794

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.10-01.(b)(6))
-URI http://asc.fasb.org/extlink&oid=27015980&loc=d3e46468-122699

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Accounting Change
-URI http://asc.fasb.org/extlink&oid=6503790

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22499-107794

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Retrospective Application
-URI http://asc.fasb.org/extlink&oid=6523989

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e765-108305

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e725-108305

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 01
-Paragraph b
-Subparagraph 6
-Article 10

+ Details

Net (Loss) Income Per Share

6 Months Ended

Jul. 04, 2015

Earnings Per Share [Abstract]

Net (Loss) Income Per Share

Net (Loss) Income per Share:

We compute basic Net (loss) income per share by dividing Net (loss) income available to common stockholders by the weighted average number of common shares outstanding during the period. To determine diluted share count, we apply the treasury stock method to determine the dilutive effect of outstanding stock option shares, restricted stock units ("RSUs"), Employee Stock Purchase Plan ("ESPP") shares and treasury stock. Our application of the treasury stock method includes, as assumed proceeds, the average unamortized stock-based compensation expense for the period and the impact of the pro forma deferred tax benefit or cost associated with stock-based compensation expense. When we are in a net loss position, the treasury stock method is not used.

A reconciliation of basic and diluted Net (loss) income per share is presented below:



	Three Months Ended					Six Months Ended
(in thousands, except per share data)	July 4, 2015			June 28, 2014		July 4, 2015			June 28, 2014
Basic and diluted Net (loss) income attributable to common stockholders	$	(35,570	)	$	11,771	$	(88,917	)	$	23,755
Shares used in basic Net (loss) income per share	116,903			117,904		116,883			117,170
Dilutive effect of stock options, RSUs and ESPP shares	—			3,040		—			2,871
Shares used in diluted Net (loss) income per share	116,903			120,944		116,883			120,041
Basic Net (loss) income per share	$	(0.30	)	$	0.10	$	(0.76	)	$	0.20
Diluted Net (loss) income per share	$	(0.30	)	$	0.10	$	(0.76	)	$	0.20

The computation of diluted Net (loss) income per share for the three and six months ended July 4, 2015 excludes the effects of stock options, RSUs, and ESPP shares, aggregating approximately 9.0 million and 10.8 million which are antidilutive. The computation of diluted Net (loss) income per share for the three and six months ended June 28, 2014 includes the effects of stock options, RSUs, and ESPP shares, aggregating approximately 3.0 million and 2.9 million, respectively, which are dilutive, and excludes the effects of stock options, RSUs and ESPP shares aggregating approximately 1.7 million and 2.3 million, respectively, which are antidilutive. Stock options, RSUs and ESPP shares are considered antidilutive when the aggregate of exercise price, unrecognized stock-based compensation expense and excess tax benefit are greater than the average market price for our common stock during the period or when the Company is in a net loss position, as the effects would reduce the loss per share. Stock options, RSUs and ESPP shares that are antidilutive at July 4, 2015 could become dilutive in the future.

Marketable Securities

6 Months Ended

Jul. 04, 2015

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

Marketable Securities:

Our short-term marketable securities have contractual maturities of up to two years. The following table summarizes the remaining maturities of our marketable securities at fair value:



(In thousands)	July 4, 2015		January 3, 2015
Short-term marketable securities:
Maturing within one year	$	19,625	$	60,965
Maturing between one and two years	17,012		78,268
Total marketable securities	$	36,637	$	139,233

The following table summarizes the composition of our marketable securities at fair value:



(In thousands)	July 4, 2015		January 3, 2015
Short-term marketable securities:
Corporate and government bonds and notes and commercial paper	$	31,020	$	139,233
Certificates of deposit	5,617		—
Total marketable securities	$	36,637	$	139,233

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References + Details

Fair Value of Financial Instruments

6 Months Ended

Jul. 04, 2015

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments:



	Fair value measurements as of July 4, 2015								Fair value measurements as of January 3, 2015
(In thousands)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Short-term marketable securities	$	36,637	$	31,020	$	5,617	$	—	$	139,233	$	139,233	$	—	$	—
Foreign currency forward exchange contracts, net	3		—		3		—		414		—		414		—
Total fair value of financial instruments	$	36,640	$	31,020	$	5,620	$	—	$	139,647	$	139,233	$	414	$	—

We invest in various financial instruments including corporate and government bonds and notes, and commercial paper. In the past we have also invested in auction rate securities. In addition, we enter into foreign currency forward exchange contracts to mitigate our foreign currency exchange rate exposure. We carry these instruments at their fair value in accordance with ASC 820. The framework under the provisions of ASC 820 establishes three levels of inputs that may be used to measure fair value. Each level of input has different levels of subjectivity and difficulty involved in determining fair value.

Level 1 instruments generally represent quoted prices for identical assets or liabilities in active markets. Therefore, determining fair value for Level 1 instruments generally does not require significant management judgment, and the estimation is not difficult. Our Level 1 instruments consist of U.S. Government agency, corporate notes and bonds, and commercial paper that are traded in active markets and are classified as Short-term marketable securities on our Consolidated Balance Sheets.

Level 2 instruments include inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices for identical instruments in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Our Level 2 instruments consist of certificates of deposit and foreign currency exchange contracts, entered into to hedge against fluctuation in the Japanese yen.

Level 3 instruments include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Our auction rate securities were classified as Level 3 instruments. Management used a combination of the market and income approach to derive the fair value of auction rate securities, which included third party valuation results, investment broker provided market information and available information on the credit quality of the underlying collateral. As a result, the determination of fair value for Level 3 instruments requires significant management judgment and subjectivity.

There were no transfers between any of the levels during the first six months of fiscal 2015 or 2014.

During the six months ended July 4, 2015 and June 28, 2014, the following changes occurred in our Level 3 instruments:



	Six Months Ended
(In thousands)	July 4, 2015		June 28, 2014
Beginning fair value of Long-term marketable securities	$	—	$	5,241
Fair value of securities sold or redeemed	—		(5,488		)
Realized gain from increase in fair value	—		247
Ending fair value of Long-term marketable securities	$	—	$	—

In the second quarter of fiscal 2014, we sold our remaining auction rate securities, with a par value of $5.7 million and an estimated fair value of $5.2 million.

In accordance with ASC 320, “Investments-Debt and Equity Securities,” we recorded an unrealized gain of less than $0.1 million during the six months ended July 4, 2015 and an unrealized loss of less than $0.1 million during the six months ended June 28, 2014 on certain Short-term marketable securities (Level 1 instruments), which have been recorded in Accumulated other comprehensive loss. Future fluctuations in fair value related to these instruments that we deem to be temporary, including any recoveries of previous write-downs, would be recorded to Accumulated other comprehensive loss. If we were to determine in the future that any further decline in fair value is other-than-temporary, we would record an impairment charge, which could have a materially adverse effect on our operating results. If we were to liquidate our position in these securities, it is likely that the amount of any future realized gain or loss would be different from the unrealized gain or loss reported in Accumulated other comprehensive loss.

- 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

Inventories

6 Months Ended

Jul. 04, 2015

Inventory Disclosure [Abstract]

Inventories

Inventories:



(In thousands)	July 4, 2015		January 3, 2015
Work in progress	$	57,912	$	49,554
Finished goods	22,884		15,371
Total inventories	$	80,796	$	64,925

Business Combinations and Goodwill

6 Months Ended

Jul. 04, 2015

Business Combinations [Abstract]

Business Combinations and Goodwill

Business Combinations and Goodwill:

On March 10, 2015, we acquired 100% of the outstanding equity of Silicon Image, Inc. ("Silicon Image"), a provider of video, audio, and data connectivity solutions for the mobile, consumer electronics, and personal computer markets.

The preliminary fair value of the purchase price consideration consisted of the following:



(In thousands)	Estimated Fair Value
Cash paid to Silicon Image shareholders	$	575,955
Cash paid for options and RSUs	2,976
Accrual for options and RSUs	4,407
Fair value of partially vested stock options and RSUs assumed	5,139
Total purchase consideration	$	588,477

There is no contingent consideration included in the determination of the purchase consideration.

The Company is currently completing its evaluation of information and assumptions used in the recognition and determination of the purchase price allocation. This includes reviewing information, inputs, assumptions, and valuation methodologies used to estimate consideration, liabilities, taxes, intangible assets, deferred revenue, inventory, and fixed assets. The purchase price allocation is based on the preliminary valuation and is our best estimate as of the filing date of this 10-Q. The purchase price allocation will be subject to revision as more detailed analysis is performed and completed. In the second quarter of 2015, we revised our preliminary valuation and allocation of purchase price consideration resulting in $1.4 million of additional Accounts payable and other accrued liabilities with an equivalent revision to Goodwill. The revised preliminary allocation of the total purchase price is as follows:



(In thousands)	Estimated Fair Value
Assets acquired:
Cash, cash equivalents and short-term investments	$	157,923
Accounts receivable	30,677
Inventory	20,839
Other current assets	7,183
Property, plant and equipment	23,429
Other non-current assets	1,573
Intangible assets	192,079
Goodwill	225,275
Total assets acquired	658,978
Liabilities assumed
Accounts payable and other accrued liabilities	47,735
Other current liabilities	1,252
Long-term liabilities	14,342
Redeemable noncontrolling interest	7,172
Total liabilities assumed	70,501
Fair value of net assets acquired	$	588,477

The following table presents details of the identified intangible assets acquired through the acquisition of Silicon Image:



(In thousands)	Asset Life in Years	Fair Value
Developed technology	3-5	$	125,000
Customer relationships	4-7	29,458
Licensed technology	3-5	1,852
Patents	5	769
Total identified finite-lived intangible assets		157,079
In-process research and development	indefinite	35,000
Total identified intangible assets		$	192,079

We do not believe there is any significant residual value associated with these intangible assets. We are amortizing the intangible assets using the straight-line method over their estimated useful lives. The estimation of the fair values of the intangible assets required the use of valuation techniques and entailed consideration of all the relevant factors that might affect the fair value such as present value factors, and estimates of future revenues and costs.

Silicon Image’s results of operations and the estimated fair value of the assets acquired and liabilities assumed are included in Lattice's unaudited consolidated financial statements effective March 11, 2015. Silicon Image's revenue and net loss for the period from March 11, 2015 through July 4, 2015 were approximately $53.9 million and $33.0 million, respectively. Acquisition related charges, which were expensed as incurred, were approximately $8.6 million.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and intangible assets. The goodwill recognized in the acquisition of Silicon Image was derived from expected benefits from cost synergies and knowledgeable and experienced workforce who joined the Company after the acquisition. Goodwill will not be amortized, but will instead be tested for impairment annually or more frequently if certain indicators of impairment are present. Goodwill impairment is not expected to be tax deductible for income tax purposes. No impairment charges relating to goodwill or intangible assets were recorded for the first six months of 2015 or 2014 as no indicators of impairment were present. The goodwill balance of $270.1 million at July 4, 2015 is comprised of $44.8 million from prior acquisitions combined with the $225.3 million from the acquisition of Silicon Image.

Unaudited Pro Forma Financial Information

The unaudited pro forma financial information in the table below summarizes the combined results of operations for the Company and Silicon Image as if the merger occurred on December 29, 2013, the first day of our 2014 fiscal year. The pro forma financial information for the periods presented includes adjustments to amortization and depreciation for intangible assets and property, plant and equipment acquired, adjustments to share-based compensation expense, and interest expense for the additional indebtedness incurred as part of the acquisition. The total of nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings for the three and six months ended June 28, 2014 and excluded in the reported pro forma revenue and earnings for the three and six months ended July 4, 2015 was $3.3 million and $29.6 million, respectively, related to acquisition-related charges. The pro forma financial information as presented below is for informational purposes only, is based on certain assumptions and estimates, and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of the first period presented.

The unaudited pro forma financial information for the three and six months ended July 4, 2015 combined the historical results of the Company for the three and six months ended July 4, 2015, the historical results of Silicon Image for the three and six months ended July 4, 2015, and the effects of the pro forma adjustments described above.

The unaudited pro forma financial information for the three and six months ended June 28, 2014 combined the historical results of the Company for the three and six months ended June 28, 2014, the historical results of Silicon Image for the three and six months ended June 28, 2014, and the effects of the pro forma adjustments described above.



	Three Months Ended						Six Months Ended
(Dollars in thousands, except per share amounts)	July 4, 2015			June 28, 2014			July 4, 2015			June 28, 2014
Total revenues	$	106,460		$	158,856		$	239,958		$	317,054
Net loss attributable to common stockholders	$	(37,525	)	$	(2,654	)	$	(85,813	)	$	(30,895	)
Basic net loss per share	$	(0.32	)	$	(0.02	)	$	(0.73	)	$	(0.26	)
Diluted net loss per share	$	(0.32	)	$	(0.02	)	$	(0.73	)	$	(0.26	)

The pro forma adjustments did not have any impact on the pro forma combined provision for income taxes for the three and six months ended July 4, 2015 and June 28, 2014 due to net loss positions and valuation allowances on deferred income tax assets in those periods.

- Definition

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

+ References

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+ Details

Intangible Assets

6 Months Ended

Jul. 04, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible Assets:

In connection with our acquisitions of Silicon Image in March 2015 and SiliconBlue in December 2011 we recorded identifiable intangible assets related to developed technology, customer relationships, licensed technology, patents, and in-process research and development based on guidance for determining fair value under the provisions of ASC 820. The following table summarizes the details of our total purchased intangible assets:



(In thousands)	Weighted Average Amortization Period (in years)	Gross		Accumulated Amortization			Intangible assets, net of amortization July 4, 2015
Developed technology	4.7	$	135,700	$	(14,105	)	$	121,595
Customer relationships	5.5	37,258		(6,740		)	30,518
Licensed technology	2.5	1,852		(236		)	1,616
Patents	5	769		(49		)	720
Total identified finite-lived intangible assets		175,579		(21,130		)	154,449
In-process research and development	indefinite	35,000		—			35,000
Total identified intangible assets		$	210,579	$	(21,130	)	$	189,449

We recorded amortization expense on the Consolidated Statements of Operations as follows:



	Three Months Ended				Six Months Ended
(In thousands)	July 4, 2015		June 28, 2014		July 4, 2015		June 28, 2014
Research and development	$	223	$	—	$	284	$	—
Amortization of acquired intangible assets	8,941		737		11,883		1,474
	$	9,164	$	737	$	12,167	$	1,474

The annual expected amortization expense of acquired intangible assets with finite lives is as follows:



(In thousands)	Amount
2015 (remaining 6 months)	$	18,378
2016	36,452
2017	35,635
2018	29,752
Thereafter	34,283
Total	$	154,500

Redeemable Noncontrolling Interests	6 Months Ended
Redeemable Noncontrolling Interests	Jul. 04, 2015
Noncontrolling Interest [Abstract]
Redeemable Noncontrolling Interest	Redeemable Noncontrolling Interest: With the acquisition of Silicon Image on March 10, 2015, we also assumed a redeemable noncontrolling interest which comprises a 7% investment in Qterics amounting to $7.0 million initially entered into on December 4, 2014. The investment is redeemable at fair market value at the holder's option on the third, fourth or fifth year anniversaries. If the fair market value at the redemption date, as negotiated and agreed to by the parties, does not exceed $21 million, the redemption price will be 130% of the fair market value. As of the acquisition date, the fair value of the noncontrolling interest was determined to be $7.2 million (Note 7). The Company has elected to accrete the carrying value to the estimated redemption value over the three-year redemption period and reports the accretion charge as a reduction to additional-paid-in-capital. For the three and six months ended July 4, 2015, we have recorded accretion charges of $159 thousand and $194 thousand, respectively, bringing the value of the redeemable noncontrolling interest to $7.4 million at July 4, 2015.

Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss

6 Months Ended

Jul. 04, 2015

Stockholders' Equity Note [Abstract]

Changes in Stockholders' Equity and Accumulated other Comprehensive Loss

Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss:



(In thousands)	Common stock			Additional Paid-in capital			Treasury stock			Accumulated deficit			Accumulated other comprehensive loss			Total
Balances, January 3, 2015	$	1,173		$	635,299		$	—		$	(193,613	)	$	(1,884	)	$	440,975
Net loss attributable to common stockholders for the six months ended July 4, 2015	—			—			—			(88,917		)	—			(88,917		)
Unrealized (loss) gain related to marketable securities, net of tax	—			—			—			—			(3		)	(3		)
Recognized loss on redemption of marketable securities, previously unrealized	—			—			—			—			234			234
Translation adjustments, net of tax	—			—			—			—			(55		)	(55		)
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax	14			1,094			—			—			—			1,108
Stock repurchase	—			—			(6,970		)	—			—			(6,970		)
Retirement of treasury stock	(11		)	(6,959		)	6,970			—			—			—
Stock-based compensation expense related to stock options, ESPP and RSUs	—			8,363			—			—			—			8,363
Fair value of partially vested stock options and RSUs assumed in business acquisition	—			5,139			—			—			—			5,139
Defined benefit pension net actuarial losses	—			—			—			(1		)	(155		)	(156		)
Adjustment of redeemable noncontrolling interest to redemption value	—			(296		)	—			—			—			(296		)
Balances, July 4, 2015	$	1,176		$	642,640		$	—		$	(282,531	)	$	(1,863	)	$	359,422

On March 3, 2014, the Company's Board of Directors approved a stock repurchase program pursuant to which up to $20.0 million of outstanding common stock could be repurchased from time to time. The duration of the repurchase program was twelve months. During fiscal 2014, approximately 1.9 million shares were repurchased for $13.1 million. The 2014 program completed during the three months ended April 4, 2015, during which approximately 1.1 million shares were repurchased for approximately $7.0 million. No shares were repurchased during the three months ended July 4, 2015, and all shares repurchased under the 2014 program have been retired.

- Definition

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

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Reference 17: http://www.xbrl.org/2003/role/presentationRef
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Reference 19: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Income Taxes	6 Months Ended
Income Taxes	Jul. 04, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes: For the three months ended July 4, 2015 and June 28, 2014, we recorded an income tax provision of approximately $4.1 million and $2.2 million, respectively. For the six months ended July 4, 2015 and June 28 2014, we recorded an income tax provision of approximately $28.7 million and $4.0 million, respectively. The income tax provision for the three and six months ended July 4, 2015 represents tax at the federal, state and foreign statutory tax rates adjusted for withholding taxes, changes in uncertain tax positions, changes in the U.S. valuation allowance, as well as other non-deductible items in the United States and foreign jurisdictions. The difference between the U.S. federal statutory tax rate of 35% and our effective tax rate is primarily due to a valuation allowance increase in the United States and income earned in lower tax rate jurisdictions, for which no U.S. income tax has been provided, because we intend to permanently reinvest these earnings outside of the United States. During the first quarter of 2015, we concluded that it was not more-likely-than-not that we would be able to realize the benefit of our remaining U.S. deferred tax assets, resulting in an increase to the valuation allowance and an increase to the tax provision of $21.0 million. We based this conclusion on changes to our expected operations in the United States as a result of the acquisition of Silicon Image. We exercised significant judgment and considered estimates about our ability to generate revenue and gross profits sufficient enough to offset expenditures in future periods within the United States. We are subject to federal income tax as well as income tax of multiple state and foreign jurisdictions. We are no longer subject to federal, state and local, or foreign income tax examinations for years before 2011, 2010 and 2008, respectively. However, U.S. federal net operating loss ("NOL") and credit carryforwards from all years are subject to examination and adjustments for at least three years following the year in which we used the attributes. Our U.S. and French income tax returns are currently under examination for 2011 and 2012, as well as our Singapore income tax return for 2012. We are not under examination in any other jurisdictions. We believe that it is reasonably possible that $2.3 million of unrecognized tax benefits and less than $0.1 million of associated interest and penalties could be recognized during the next twelve months. The $2.3 million potential change would represent a decrease in unrecognized tax benefits, comprised of items related to tax filings for years that will no longer be subject to examination under expiring statutes of limitations and the finalization of an ongoing tax examination. We have U.S. federal NOL carryforwards that expire at various dates between 2023 and 2035. We have state net operating loss carryforwards that expire at various dates from 2015 through 2035. We also have federal and state credit carryforwards, some not expiring and others expiring at various dates from 2015 through 2034. We are not currently paying U.S. federal income taxes and do not expect to pay such taxes until we fully utilize our tax NOL and credit carryforwards. We expect to pay a nominal amount of state income tax. We are paying foreign income and withholding taxes, which are reflected in Income tax expense in our Consolidated Statements of Operations and are primarily related to the cost of operating offshore activities and subsidiaries. We accrue interest and penalties related to uncertain tax positions in the Income tax expense.

Restructuring

6 Months Ended

Jul. 04, 2015

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring:

In March 2015, our Board of Directors approved an internal restructuring plan (the "Plan"), in connection with our acquisition of Silicon Image, involving the Company and certain of its subsidiaries. The Plan is designed to realize synergies from the acquisition by eliminating redundancies created as a result of combining the two companies. The total cost of the plan is expected to be in the range of $20 million to $25 million and is expected to be substantially completed by the end of fiscal 2015.

Approximately $4.1 million and $9.0 million of expense was incurred in the three and six months ended July 4, 2015, respectively, and $0 was incurred in both the three and six month periods ended June 28, 2014. These expenses were recorded to Restructuring charges on the Statements of Operations.

The following table displays the activity related to restructuring:



(In thousands)	Severance and related			Lease Termination			Systems & Engineering Tools*			Other			Total
Balance at December 28, 2013	$	17		$	368		$	—		$	147		$	532
Restructuring Charges	—			1			—			9			10
Costs Paid or Otherwise Settled	(8		)	(304		)	—			(16		)	(328		)
Adjustments to prior restructuring costs	(9		)	13			—			—			4
Balance at June 28, 2014	$	—		$	78		$	—		$	140		$	218

Balance at January 3, 2015	—			43			—			139			182
Restructuring Charges	6,909			688			1,303			62			8,962
Costs Paid or Otherwise Settled	(4,503		)	(313		)	(537		)	(201		)	(5,554		)
Adjustments to prior restructuring costs	—			—			—			—			—
Balance at July 4, 2015	$	2,406		$	418		$	766		$	—		$	3,590

*Includes cancellation of contracts and accelerated depreciation of ERP systems

Long-Term Debt

6 Months Ended

Jul. 04, 2015

Debt Disclosure [Abstract]

Long-term Debt

Long-Term Debt:

On March 10, 2015, we entered into a secured credit agreement (the "Credit Agreement") with Jefferies Finance, LLC and certain other lenders for purposes of funding, in part, our acquisition of Silicon Image. The Credit Agreement provided for a $350 million term loan (the "Term Loan") maturing on March 10, 2021 (the "Term Loan Maturity Date"). We received $346.5 million after deduction of an original issue discount of $3.5 million and we paid debt issuance costs of $8.3 million. The Term Loan bears variable interest equal to the LIBOR, subject to a 1.00% floor, plus a spread of 4.25%. The current effective interest rate on the Term Loan is 6.15%.

The Term Loan is payable through a combination of quarterly installments of approximately $0.9 million beginning on July 4, 2015, and annual excess cash flow payments, as defined in the Credit Agreement, becoming due in the second quarter of 2016. Payments could also become due upon certain issuances of additional indebtedness, and certain asset dispositions, with any remaining outstanding principal amount due and payable on the Term Loan Maturity Date. The percentage of excess cash flow we are required to pay ranges from 0% to 75%, depending on our leverage and other factors as defined in the Credit Agreement. Currently, the Credit Agreement would require a 75% excess cash flow payment. The Credit Agreement also contains informational covenants and certain restrictive covenants, including limitations on liens, mergers and consolidations, sales of assets, payment of dividends, and indebtedness. The Credit Agreement does not contain financial covenants.

The original issue discount and the debt issuance costs have been accounted for as a reduction to the carrying value of the Term Loan on our Consolidated Balance Sheets and are being amortized to Interest expense in our Consolidated Statements of Operations over the contractual term, using the effective interest method.

The carrying value of the Term Loan is reflected in our Consolidated Balance Sheets as follows:



(In thousands)	July 4, 2015			January 3, 2015
Principal amount	$	349,125		$	—
Unamortized original issue discount and debt issuance costs	(10,677		)	—
Less current portion of Long-term debt	(242		)	—
Long-term debt	$	338,206		$	—

Interest expense related to the Term Loan was included in Interest expense on the Consolidated Statements of Operations as follows:



	Three Months Ended				Six Months Ended
(In thousands)	July 4, 2015		June 28, 2014		July 4, 2015		June 28, 2014
Contractual interest	$	4,593	$	—	$	5,920	$	—
Amortization of debt issuance costs and discount	821		—		1,105		—
Total Interest expense related to the Term Loan	$	5,414	$	—	$	7,025	$	—

Stock-Based Compensation

6 Months Ended

Jul. 04, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation:

Total stock-based compensation expense included in our Consolidated Statements of Operations was as follows:



	Three Months Ended				Six Months Ended
(In thousands)	July 4, 2015		June 28, 2014		July 4, 2015		June 28, 2014
Line item:
Cost of products sold	$	398	$	211	$	638	$	377
Research and development	2,346		1,354		3,855		2,388
Selling, general and administrative	2,235		1,755		3,870		3,645
Acquisition related charges	—		—		3,891		—
Total stock-based compensation	$	4,979	$	3,320	$	12,254	$	6,410

During the first and seconds quarters of 2015, we granted approximately 306,000 stock options and 91,500 stock options and RSUs, respectively, with a market condition to certain executives. The options and RSUs have a two year vesting and vest between 0% and 200% of the target amount, based on the Company's relative Total Shareholder Return (TSR) when compared to the TSR of a component of companies of the PHLX Semiconductor Sector Index over a two year period. The fair values of the options were determined and fixed on the date of grant using a lattice-based option-pricing valuation model, which incorporates a Monte-Carlo simulation, and considered the likelihood that we would achieve the market condition. TSR is a measure of stock price appreciation plus dividends paid, if any, in the performance period. As of July 4, 2015, 397,500 market-based stock options were outstanding. In the second quarter of 2015, we incurred stock compensation expense of $0.3 million related to these market condition awards.

Total stock-based compensation for the six months ended July 4, 2015 was $12.3 million of which $3.9 million was paid during the period.

Legal Matters	6 Months Ended
Legal Matters	Jul. 04, 2015
Legal Matters Disclosure [Abstract]
Legal Matters	Legal Matters: On or about January 29, 2015, Silicon Image, members of its Board, the Company and the Company’s wholly-owned merger acquisition subsidiary were named as defendants in two complaints filed in Santa Clara Superior Court by alleged stockholders of Silicon Image in connection with the proposed merger of Silicon Image and the Company. Both complaints were dated January 29, 2015 and were captioned respectively Molland v. George, et al. and Stein v. Silicon Image, Inc. et. al. Five additional complaints were subsequently filed on January 30, 2015, February 4, 2015 and February 9, 2015 in Delaware Chancery Court by alleged stockholders of Silicon Image, Inc. in connection with the Merger, captioned respectively Pfeiffer v. Martino et. al.; Lipinski v. Silicon Image, Inc. et. al.; Feldbaum et. al. v. Silicon Image, Inc. et. al; Nelson v. Silicon Image, Inc. et. al. and Partansky v. Silicon Image, Inc. et. al. The five Delaware matters were subsequently consolidated into an action captioned In re Silicon Image Stockholders Litigation by order of the Delaware Chancery Court on February 11, 2015, and a consolidated amended complaint was filed in the matter on February 13, 2015. Two complaints captioned Tapia v. Silicon Image, Inc. et. al. and Caldwel v. Silicon Image, Inc. were also filed on February 4, 2015 and February 9, 2015 in Santa Clara Superior Court by alleged stockholders in connection with the merger. Amended complaints were filed in the Molland and Stein actions on February 11, 2015. The parties have reached a tentative settlement in this matter, subject to final court approval. The Company has estimated a range of possible loss, but considers the resulting accrual under U.S. GAAP to be immaterial to our Consolidated Statements of Operations. Each of these lawsuits are purported class actions brought on behalf of Silicon Image stockholders, asserting claims against each member of the Silicon Image Board for breach of fiduciary duty, and against various officers of the Silicon Image, the Company, and the Company’s wholly-owned merger subsidiary for aiding and abetting breach of fiduciary duty. The lawsuits allege that the Merger does not appropriately value Silicon Image, was the result of an inadequate process, and includes preclusive deal devices. The amended complaints also assert that the Silicon Image’s disclosures regarding the Merger in its Schedule 14D-9 omitted material information regarding the Merger. Each of these complaints purport to seek unspecified damages. The parties have reached a tentative settlement agreement in the Delaware case, subject to court approval, which we consider to be immaterial to our Consolidated Statements of Operations. The California cases are ongoing but are subject to a motion to stay which will be heard on or about August 28, 2015. In November 2014, a patent infringement lawsuit was filed by Papst Licensing GmbH & Co., KG ("Papst") against us in the U.S. District Court for the District of Delaware. In the complaint, Papst alleges that certain of the simulator or simulation products sold by the Company may infringe one or more of the patents held by Papst. The parties have reached a tentative settlement of this matter which is subject to the negotiation and execution of a license agreement between the parties, which we consider to be immaterial to our Consolidated Statements of Operations. In March 2014, the China National Development and Reform Commission ("NDRC") notified HDMI Licensing, LLC, a wholly-owned subsidiary of the Company and the agent for and entity charged with administering the HDMI specification, that the NDRC was investigating HDMI’s licensing activities in China under the Chinese Anti-Monopoly Law ("AML"). A broad range of remedies with respect to business practices deemed to violate the AML is potentially available to the NDRC, including but not limited to issuing an order to cease conduct deemed illegal, confiscating gains deemed illegally obtained, imposing a fine and requiring modifications to business practices. It is difficult to predict the outcome of this matter or what remedies, if any, may be imposed by the NDRC. The Company continues to cooperate with the NDRC as it conducts its investigation. HDMI Licensing, LLC and the Company will continue to defend themselves vigorously in the foregoing matter. However, litigation and administrative proceedings are inherently uncertain. Accordingly, the outcome of this matter cannot be predicted. At this stage of the proceedings, we do not have an estimate of the likelihood or the amount of any potential exposure to the Company. We are exposed to certain other asserted and unasserted potential claims. There can be no assurance that, with respect to potential claims made against us, we could resolve such claims under terms and conditions that would not have a material adverse effect on our business, our liquidity or our financial results. Periodically, we review the status of each significant matter and assess its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and a range of possible losses can be estimated, we then accrue a liability for the estimated loss based on the provisions of FASB ASC 450, “Contingencies" (“ASC 450”). Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based only on the best information available at the time. As additional information becomes available, we reassess the potential liability related to pending claims and litigation and may revise estimates. Presently, no accrual has been estimated under ASC 450 for potential losses that may or may not arise from the current lawsuits in which we are involved.

Segment and Geographic Information

6 Months Ended

Jul. 04, 2015

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information:

Lattice has two operating segments: the core Lattice ("Core") business, which includes intellectual property and semiconductor devices, and Qterics, a discrete software-as-a-service business unit in the Lattice legal entity structure. Although these two operating segments constitute two reportable segments, we combine Qterics with our Core business and report them together as one reportable segment due to the immaterial nature of the Qterics segment.

Our revenue by major geographic area, based on ship-to location, was as follows:



	Three Months Ended								Six Months Ended
(In thousands)	July 4, 2015				June 28, 2014				July 4, 2015				June 28, 2014
Asia	$	83,395	78	%	$	73,459	74	%	$	145,929	75	%	$	146,203	75	%
Europe	13,477		13		15,718		16		29,944		15		30,428		15
Americas	9,588		9		10,143		10		19,184		10		19,326		10
Total revenue	$	106,460	100	%	$	99,320	100	%	$	195,057	100	%	$	195,957	100	%

- 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

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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Basis of Presentation and Significant Accounting Policies (Policies)	6 Months Ended
	Jul. 04, 2015
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The accompanying Consolidated Financial Statements include the accounts of Lattice and its subsidiaries after the elimination of all intercompany balances and transactions. Certain balances in prior fiscal years have been reclassified to conform to the presentation adopted in the current year.
Cash Equivalents	We consider all investments that are readily convertible into cash and have original maturities of three months or less to be cash equivalents. Cash equivalents consist primarily of highly liquid investments in time deposits or money market accounts and are carried at cost.
Marketable Securities	We account for marketable securities as available-for-sale investments, as defined by U.S. GAAP, and record unrealized gains or losses to Accumulated other comprehensive loss on our Consolidated Balance Sheets, unless losses are considered other than temporary, in which case, those are recorded directly to the Consolidated Statements of Operations and Statements of Comprehensive (Loss) Income.
Fair Value of Financial Instruments	Fair Value of Financial Instruments We invest in various financial instruments including corporate and government bonds, notes, and commercial paper. In the past we have also invested in auction rate securities. We value these instruments at their fair value and monitor the portfolio for impairment on a periodic basis. In the event that the carrying value of an investment exceeds its fair value and the decline in value is determined to be other than temporary, we record an impairment charge and establish a new carrying value. We assess other than temporary impairment of marketable securities in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements.” The framework under the provisions of ASC 820 establishes three levels of inputs that may be used to measure fair value. Each level of input has different levels of subjectivity and difficulty involved in determining fair value.
Foreign Exchange and Translation of Foreign Currencies	Foreign Exchange and Translation of Foreign Currencies We have international subsidiary and branch operations. In addition, a portion of our silicon wafer and other purchases are denominated in Japanese yen, we bill certain Japanese customers in yen and collect a Japanese consumption tax refund in yen. Gains or losses from foreign exchange rate fluctuations on balances denominated in foreign currencies are reflected in Other (expense) income, net. Realized and unrealized gains or losses on foreign currency transactions were not significant for the periods presented. We translate accounts denominated in foreign currencies in accordance with ASC 830, “Foreign Currency Matters,” using the current rate method under which asset and liability accounts are translated at the current rate, while stockholders' equity accounts are translated at the appropriate historical rates, and revenue and expense accounts are translated at average monthly exchange rates. Translation adjustments related to the consolidation of foreign subsidiary financial statements are reflected in Accumulated other comprehensive loss in Stockholders' equity.
Derivative Financial Instruments	Derivative Financial Instruments We mitigate foreign currency exchange rate risk by entering into foreign currency forward exchange contracts. At July 4, 2015 and January 3, 2015, we had open foreign exchange contracts of $1.9 million and $4.2 million, respectively. One contract outstanding at July 4, 2015 settled in July 2015, and three contracts will settle in June 2016. Although these hedges mitigate our foreign currency exchange rate exposure from an economic perspective, they were not designated as "effective" hedges under GAAP and as such are adjusted to fair value through Other (expense) income, net, with an impact of less than $0.1 million for the periods reported in the Consolidated Statements of Operations. We do not hold or issue derivative financial instruments for trading or speculative purposes.
Concentration Risk	Concentration Risk Potential exposure to concentration risk consists primarily of revenue, cash and cash equivalents, marketable securities, trade receivables and supply of wafers for our new products. Our top five end customers constituted approximately 33% of our revenue for the second quarter of fiscal 2015, compared to approximately 47% for the second quarter of fiscal 2014. Our top five end customers constituted approximately 34% of our revenue for the first six months of fiscal 2015, compared to approximately 49% for the first six month of fiscal 2014. Our largest end customer accounted for approximately 12% of total revenue in the second quarter of fiscal 2015 and 11% of total revenue in the first six months of fiscal 2015. Our two largest end customers accounted for approximately 20% and 14% of total revenue, respectively, in the second quarter of fiscal 2014 and 21% and 14% of total revenue, respectively, in the first six months of fiscal 2014. No other customers accounted for more than 10% of total revenue during these periods. Concentration of credit risk with respect to trade receivables is mitigated by our credit and collection process including active management of collections, credit limits, routine credit evaluations for essentially all customers and secure transactions with letters of credit or advance payments where appropriate. Accounts receivable do not bear interest and are shown net of allowances for doubtful accounts of $1.1 million and $0.9 million at July 4, 2015 and January 3, 2015, respectively. We regularly review our allowance for doubtful accounts and the aging of our accounts receivable. Write-offs for uncollected trade receivables have not been significant to date. We place our investments primarily through two financial institutions and mitigate the concentration of credit risk by limiting the maximum portion of the investment portfolio which may be invested in any one instrument. Our investment policy defines approved credit ratings for investment securities. Investments on-hand in marketable securities consisted primarily of money market instruments, “AA” or better corporate notes and bonds and commercial paper, and U.S. government agency obligations. See Note 5 for a discussion of the liquidity attributes of our marketable securities. We rely on a limited number of foundries for our wafer purchases including Fujitsu Limited, Seiko Epson Corporation, Taiwan Semiconductor Manufacturing Company, Ltd, and United Microelectronics Corporation.
Revenue Recognition and Deferred Income	We must use estimates and apply judgment to reconcile sell-through distributors' reported inventories to their activities. Errors in our estimates or judgments could result in inaccurate reporting of our Revenue, Cost of products sold, Deferred income and allowances on sales to sell-through distributors, and Net (loss) income. Licensing and Services Revenue Our licensing and services revenue is comprised of revenue from our intellectual property ("IP") core licensing activity, patent monetization activities, device management system and remote support services, and royalty and adopter fee revenue from our standards activities. These activities are complementary to our product sales and help us monetize our intellectual property and accelerate market adoption curves associated with our technology and standards. We enter into IP licensing agreements that generally provide licensees the right to incorporate our IP components into their products pursuant to terms and conditions that vary by licensee. Revenue earned under these agreements is classified as licensing and services revenue. Our IP licensing agreements generally include multiple elements, which may include one or more off-the-shelf or customized IP licenses bundled with support services covering a fixed period of time, generally one year. If the different elements of a multiple-element arrangement qualify as separate units of accounting, we allocate the total arrangement consideration to each element based on relative selling price. Amounts allocated to off-the-shelf IP licenses are recognized at the time of sale provided the other conditions for revenue recognition have been met. Amounts allocated to the support services are deferred and recognized on a straight-line basis over the support period, generally one year. Certain licensing agreements provide for royalty payments based on agreed-upon royalty rates, which may be fixed or variable depending on the terms of the agreement. The amount of revenue we recognize is based on a specified time period or on the agreed-upon royalty rate multiplied by the number of units shipped by the customer. From time to time, we enter into IP licensing agreements that involve significant modification, customization or engineering services. Revenues derived from these contracts are accounted for using the percentage-of-completion method or completed contract method. The completed contract method is used for contracts where there is a risk of final acceptance by the customer or for short-term contracts. HDMI royalty revenue is determined by a contractual allocation formula agreed to by the members ("Founders") of the HDMI consortium. Evidence of an arrangement, as to HDMI royalty revenue, is deemed complete when all of the Founders agree on the royalty sharing formula. Revenue Recognition and Deferred Income Product Revenue We sell our products directly to end customers, through a network of independent manufacturers' representatives, and indirectly through a network of independent sell-in and sell-through distributors. Distributors provide periodic data regarding the product, price, quantity, and end customer when products are resold, as well as the quantities of our products they still have in stock. Revenue from sales to original equipment manufacturers ("OEMs") and sell-in distributors is generally recognized upon shipment. Reserves for sell-in stock rotations, where applicable, are estimated based primarily on historical experience and provided for at the time of shipment. Revenue from sales by our sell-through distributors is recognized at the time of reported resale. Under both types of revenue recognition, persuasive evidence of an arrangement exists, the price is fixed or determinable, title has transferred, collection of resulting receivables is reasonably assured, and there are no remaining customer acceptance requirements and no remaining significant performance obligations. Orders from our sell-through distributors are initially recorded at published list prices; however, for a majority of our sales, the final selling price is determined at the time of resale and in accordance with a distributor price agreement. In certain circumstances, we allow sell-through distributors to return unsold products. At times, we protect our sell-through distributors against reductions in published list prices. For these reasons, we do not recognize revenue until products are resold by sell-through distributors to an end customer. For sell-through distributors, at the time of shipment to distributors, we (a) record Accounts receivable at published list price since there is a legally enforceable obligation from the distributor to pay us currently for product delivered, (b) relieve inventory for the carrying value of goods shipped since legal title has passed to the distributor, and (c) record deferred revenue and deferred cost of sales in Deferred income and allowances on sales to sell-through distributors in the liability section of our Consolidated Balance Sheets. The final price is set at the time of resale and is determined in accordance with a distributor price agreement. Revenue and cost of sales to sell-through distributors are deferred until either the product is resold by the distributor or, in certain cases, return privileges terminate, at which time Revenue and Cost of products sold are reflected in Net (loss) income, and Accounts receivable, net are adjusted to reflect the final selling price.
Property and Equipment	Property and Equipment Property and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method for financial reporting purposes over the estimated useful lives of the related assets, generally three to five years for equipment and software, one to three years for tooling and thirty years for buildings. Upon disposal of Property and equipment, the accounts are relieved of the costs and related accumulated depreciation and amortization, and resulting gains or losses are reflected in the Consolidated Statements of Operations for recognized gains and losses, or in the Consolidated Balance Sheets for deferred gains and losses. Repair and maintenance costs are expensed as incurred.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and classification of assets, such as marketable securities, accounts receivable, inventory, goodwill (including the assessment of reporting unit), intangible assets, current and deferred income taxes, accrued liabilities (including restructuring charges and bonus arrangements), deferred income and allowances on sales to sell-through distributors, disclosure of contingent assets and liabilities at the date of the financial statements, anticipated amounts used in acquisition valuations and purchase accounting, and the reported amounts of revenue and expenses during the fiscal periods presented. Actual results could differ from those estimates.
New Accounting Pronouncements	New Accounting Pronouncements: In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance under U.S. GAAP when it becomes effective. While ASU 2014-09 was to be effective for annual periods and interim periods beginning after December 15, 2016, on July 9, 2015, the FASB approved the deferral of the effective date to periods beginning on or after December 15, 2017, with early adoption permitted for annual reporting periods beginning after December 15, 2016, and interim periods within that year. With the deferral, we intend to adopt ASU 2014-09 on December 31, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. We are currently evaluating the impact of ASU 2014-09 on our consolidated financial statements and related disclosures and have not yet selected a transition method. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, which focuses on the consolidation evaluation for reporting organizations and requires the evaluation of whether or not certain legal entities should be consolidated. All legal entities are subject to reevaluation under the revised consolidation model. The new standard will become effective for us on January 3, 2016. Early adoption is permitted, including adoption in an interim period. We do not expect the adoption of this accounting standard update to impact our consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Cost". The ASU requires debt issuance costs associated with a recognized debt liability to be presented on the balance sheet as a direct deduction from the carrying amount of the corresponding debt liability. This new guidance is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. An entity should apply the new guidance on a retrospective basis. We adopted this ASU effective with the first quarter of fiscal year 2015. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory. Under this ASU, inventory will be measured at the “lower of cost and net realizable value” and options that currently exist for “market value” will be eliminated. The ASU defines net realizable value as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measure-ment. ASU 2015-11 is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. We do not expect the adoption of this accounting standard update to impact our consolidated financial statements.

Basis of Presentation and Significant Accounting Policies (Tables)

6 Months Ended

Jul. 04, 2015

Accounting Policies [Abstract]

Deferred Income and Allowances on Sales to Sell-through Distributors

The components of Deferred income and allowances on sales to sell-through distributors are presented in the following table:



(In thousands)	July 4, 2015			January 3, 2015
Inventory valued at published list price and held by sell-through distributors with right of return	$	51,153		$	50,854
Allowance for distributor advances	(26,770		)	(29,490		)
Deferred cost of sales related to inventory held by sell-through distributors	(4,799		)	(6,418		)
Total Deferred income and allowances on sales to sell-through distributors	$	19,584		$	14,946

Net Income Per Share (Tables)

6 Months Ended

Jul. 04, 2015

Earnings Per Share [Abstract]

Schedule of Earnings Per Share Reconciliation

A reconciliation of basic and diluted Net (loss) income per share is presented below:



	Three Months Ended					Six Months Ended
(in thousands, except per share data)	July 4, 2015			June 28, 2014		July 4, 2015			June 28, 2014
Basic and diluted Net (loss) income attributable to common stockholders	$	(35,570	)	$	11,771	$	(88,917	)	$	23,755
Shares used in basic Net (loss) income per share	116,903			117,904		116,883			117,170
Dilutive effect of stock options, RSUs and ESPP shares	—			3,040		—			2,871
Shares used in diluted Net (loss) income per share	116,903			120,944		116,883			120,041
Basic Net (loss) income per share	$	(0.30	)	$	0.10	$	(0.76	)	$	0.20
Diluted Net (loss) income per share	$	(0.30	)	$	0.10	$	(0.76	)	$	0.20

Marketable Securities (Tables)

6 Months Ended

Jul. 04, 2015

Investments, Debt and Equity Securities [Abstract]

Schedule of Contractual Maturities of Marketable Securities

The following table summarizes the remaining maturities of our marketable securities at fair value:



(In thousands)	July 4, 2015		January 3, 2015
Short-term marketable securities:
Maturing within one year	$	19,625	$	60,965
Maturing between one and two years	17,012		78,268
Total marketable securities	$	36,637	$	139,233

Schedule of Composition of Marketable Securities

The following table summarizes the composition of our marketable securities at fair value:



(In thousands)	July 4, 2015		January 3, 2015
Short-term marketable securities:
Corporate and government bonds and notes and commercial paper	$	31,020	$	139,233
Certificates of deposit	5,617		—
Total marketable securities	$	36,637	$	139,233

Fair Value of Financial Instruments (Tables)

6 Months Ended

Jul. 04, 2015

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Financial Instruments



	Fair value measurements as of July 4, 2015								Fair value measurements as of January 3, 2015
(In thousands)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Short-term marketable securities	$	36,637	$	31,020	$	5,617	$	—	$	139,233	$	139,233	$	—	$	—
Foreign currency forward exchange contracts, net	3		—		3		—		414		—		414		—
Total fair value of financial instruments	$	36,640	$	31,020	$	5,620	$	—	$	139,647	$	139,233	$	414	$	—

Schedule of Changes In Level 3 Instruments

During the six months ended July 4, 2015 and June 28, 2014, the following changes occurred in our Level 3 instruments:



	Six Months Ended
(In thousands)	July 4, 2015		June 28, 2014
Beginning fair value of Long-term marketable securities	$	—	$	5,241
Fair value of securities sold or redeemed	—		(5,488		)
Realized gain from increase in fair value	—		247
Ending fair value of Long-term marketable securities	$	—	$	—

Inventories (Tables)

6 Months Ended

Jul. 04, 2015

Inventory Disclosure [Abstract]

Schedule of Inventories



(In thousands)	July 4, 2015		January 3, 2015
Work in progress	$	57,912	$	49,554
Finished goods	22,884		15,371
Total inventories	$	80,796	$	64,925

Business Combinations and Goodwill (Tables)

6 Months Ended

Jul. 04, 2015

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition



(In thousands)	Estimated Fair Value
Assets acquired:
Cash, cash equivalents and short-term investments	$	157,923
Accounts receivable	30,677
Inventory	20,839
Other current assets	7,183
Property, plant and equipment	23,429
Other non-current assets	1,573
Intangible assets	192,079
Goodwill	225,275
Total assets acquired	658,978
Liabilities assumed
Accounts payable and other accrued liabilities	47,735
Other current liabilities	1,252
Long-term liabilities	14,342
Redeemable noncontrolling interest	7,172
Total liabilities assumed	70,501
Fair value of net assets acquired	$	588,477

The following table presents details of the identified intangible assets acquired through the acquisition of Silicon Image:



(In thousands)	Asset Life in Years	Fair Value
Developed technology	3-5	$	125,000
Customer relationships	4-7	29,458
Licensed technology	3-5	1,852
Patents	5	769
Total identified finite-lived intangible assets		157,079
In-process research and development	indefinite	35,000
Total identified intangible assets		$	192,079

The preliminary fair value of the purchase price consideration consisted of the following:



(In thousands)	Estimated Fair Value
Cash paid to Silicon Image shareholders	$	575,955
Cash paid for options and RSUs	2,976
Accrual for options and RSUs	4,407
Fair value of partially vested stock options and RSUs assumed	5,139
Total purchase consideration	$	588,477

Business acquisition, pro forma information



	Three Months Ended						Six Months Ended
(Dollars in thousands, except per share amounts)	July 4, 2015			June 28, 2014			July 4, 2015			June 28, 2014
Total revenues	$	106,460		$	158,856		$	239,958		$	317,054
Net loss attributable to common stockholders	$	(37,525	)	$	(2,654	)	$	(85,813	)	$	(30,895	)
Basic net loss per share	$	(0.32	)	$	(0.02	)	$	(0.73	)	$	(0.26	)
Diluted net loss per share	$	(0.32	)	$	(0.02	)	$	(0.73	)	$	(0.26	)

Intangible Assets (Tables)

6 Months Ended

Jul. 04, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Acquired Finite-lived Intangible Assets by Major Class

The following table summarizes the details of our total purchased intangible assets:



(In thousands)	Weighted Average Amortization Period (in years)	Gross		Accumulated Amortization			Intangible assets, net of amortization July 4, 2015
Developed technology	4.7	$	135,700	$	(14,105	)	$	121,595
Customer relationships	5.5	37,258		(6,740		)	30,518
Licensed technology	2.5	1,852		(236		)	1,616
Patents	5	769		(49		)	720
Total identified finite-lived intangible assets		175,579		(21,130		)	154,449
In-process research and development	indefinite	35,000		—			35,000
Total identified intangible assets		$	210,579	$	(21,130	)	$	189,449

Schedule of Acquired Indefinite-lived Intangible Assets by Major Class

The following table summarizes the details of our total purchased intangible assets:



(In thousands)	Weighted Average Amortization Period (in years)	Gross		Accumulated Amortization			Intangible assets, net of amortization July 4, 2015
Developed technology	4.7	$	135,700	$	(14,105	)	$	121,595
Customer relationships	5.5	37,258		(6,740		)	30,518
Licensed technology	2.5	1,852		(236		)	1,616
Patents	5	769		(49		)	720
Total identified finite-lived intangible assets		175,579		(21,130		)	154,449
In-process research and development	indefinite	35,000		—			35,000
Total identified intangible assets		$	210,579	$	(21,130	)	$	189,449

Finite-lived Intangible Assets Amortization Expense

We recorded amortization expense on the Consolidated Statements of Operations as follows:



	Three Months Ended				Six Months Ended
(In thousands)	July 4, 2015		June 28, 2014		July 4, 2015		June 28, 2014
Research and development	$	223	$	—	$	284	$	—
Amortization of acquired intangible assets	8,941		737		11,883		1,474
	$	9,164	$	737	$	12,167	$	1,474

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The annual expected amortization expense of acquired intangible assets with finite lives is as follows:



(In thousands)	Amount
2015 (remaining 6 months)	$	18,378
2016	36,452
2017	35,635
2018	29,752
Thereafter	34,283
Total	$	154,500

Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Jul. 04, 2015

Stockholders' Equity Note [Abstract]

Schedule of Changes in Stockholders' Equity and Accumulated other Comprehensive Loss

Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss:



(In thousands)	Common stock			Additional Paid-in capital			Treasury stock			Accumulated deficit			Accumulated other comprehensive loss			Total
Balances, January 3, 2015	$	1,173		$	635,299		$	—		$	(193,613	)	$	(1,884	)	$	440,975
Net loss attributable to common stockholders for the six months ended July 4, 2015	—			—			—			(88,917		)	—			(88,917		)
Unrealized (loss) gain related to marketable securities, net of tax	—			—			—			—			(3		)	(3		)
Recognized loss on redemption of marketable securities, previously unrealized	—			—			—			—			234			234
Translation adjustments, net of tax	—			—			—			—			(55		)	(55		)
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax	14			1,094			—			—			—			1,108
Stock repurchase	—			—			(6,970		)	—			—			(6,970		)
Retirement of treasury stock	(11		)	(6,959		)	6,970			—			—			—
Stock-based compensation expense related to stock options, ESPP and RSUs	—			8,363			—			—			—			8,363
Fair value of partially vested stock options and RSUs assumed in business acquisition	—			5,139			—			—			—			5,139
Defined benefit pension net actuarial losses	—			—			—			(1		)	(155		)	(156		)
Adjustment of redeemable noncontrolling interest to redemption value	—			(296		)	—			—			—			(296		)
Balances, July 4, 2015	$	1,176		$	642,640		$	—		$	(282,531	)	$	(1,863	)	$	359,422

Restructuring (Tables)

6 Months Ended

Jul. 04, 2015

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Reserve by Type of Cost

The following table displays the activity related to restructuring:



(In thousands)	Severance and related			Lease Termination			Systems & Engineering Tools*			Other			Total
Balance at December 28, 2013	$	17		$	368		$	—		$	147		$	532
Restructuring Charges	—			1			—			9			10
Costs Paid or Otherwise Settled	(8		)	(304		)	—			(16		)	(328		)
Adjustments to prior restructuring costs	(9		)	13			—			—			4
Balance at June 28, 2014	$	—		$	78		$	—		$	140		$	218

Balance at January 3, 2015	—			43			—			139			182
Restructuring Charges	6,909			688			1,303			62			8,962
Costs Paid or Otherwise Settled	(4,503		)	(313		)	(537		)	(201		)	(5,554		)
Adjustments to prior restructuring costs	—			—			—			—			—
Balance at July 4, 2015	$	2,406		$	418		$	766		$	—		$	3,590

*Includes cancellation of contracts and accelerated depreciation of ERP systems

Long-Term Debt (Tables)

6 Months Ended

Jul. 04, 2015

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

The carrying value of the Term Loan is reflected in our Consolidated Balance Sheets as follows:



(In thousands)	July 4, 2015			January 3, 2015
Principal amount	$	349,125		$	—
Unamortized original issue discount and debt issuance costs	(10,677		)	—
Less current portion of Long-term debt	(242		)	—
Long-term debt	$	338,206		$	—

Interest Income and Interest Expense Disclosure

Interest expense related to the Term Loan was included in Interest expense on the Consolidated Statements of Operations as follows:



	Three Months Ended				Six Months Ended
(In thousands)	July 4, 2015		June 28, 2014		July 4, 2015		June 28, 2014
Contractual interest	$	4,593	$	—	$	5,920	$	—
Amortization of debt issuance costs and discount	821		—		1,105		—
Total Interest expense related to the Term Loan	$	5,414	$	—	$	7,025	$	—

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=34725769&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 22
-Article 5

+ Details

Stock-Based Compensation (Tables)

6 Months Ended

Jul. 04, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Stock-Based Compensation Expense

Total stock-based compensation expense included in our Consolidated Statements of Operations was as follows:



	Three Months Ended				Six Months Ended
(In thousands)	July 4, 2015		June 28, 2014		July 4, 2015		June 28, 2014
Line item:
Cost of products sold	$	398	$	211	$	638	$	377
Research and development	2,346		1,354		3,855		2,388
Selling, general and administrative	2,235		1,755		3,870		3,645
Acquisition related charges	—		—		3,891		—
Total stock-based compensation	$	4,979	$	3,320	$	12,254	$	6,410

Segment and Geographic Information (Tables)

6 Months Ended

Jul. 04, 2015

Segment Reporting [Abstract]

Schedule of Revenue by Major Geographic Area

Our revenue by major geographic area, based on ship-to location, was as follows:



	Three Months Ended								Six Months Ended
(In thousands)	July 4, 2015				June 28, 2014				July 4, 2015				June 28, 2014
Asia	$	83,395	78	%	$	73,459	74	%	$	145,929	75	%	$	146,203	75	%
Europe	13,477		13		15,718		16		29,944		15		30,428		15
Americas	9,588		9		10,143		10		19,184		10		19,326		10
Total revenue	$	106,460	100	%	$	99,320	100	%	$	195,057	100	%	$	195,957	100	%

Basis of Presentation and Significant Accounting Policies (Details)	3 Months Ended		6 Months Ended
	Jul. 04, 2015 USD ($) Contract	Jun. 28, 2014	Jul. 04, 2015 USD ($) Contract	Jun. 28, 2014	Jan. 03, 2015 USD ($)
General Discussion of Derivative Instruments and Hedging Activities [Abstract]
Derivative, Number of Instruments Held \| Contract	1		1
Risks and Uncertainties [Abstract]
Allowance for doubtful accounts	$ 1,100,000		$ 1,100,000		$ 900,000
Deferred Revenue and Credits [Abstract]
Inventory valued at published list price and held by sell-through distributors with right of return	51,153,000		51,153,000		50,854,000
Allowance for distributor advances	(26,770,000)		(26,770,000)		(29,490,000)
Deferred cost of sales related to inventory held by sell-through distributors	(4,799,000)		(4,799,000)		(6,418,000)
Total Deferred income and allowances on sales to sell-through distributors	$ 19,584,000		$ 19,584,000		14,946,000
Revenue \| Customer Concentration Risk
Risks and Uncertainties [Abstract]
Concentration Risk	33.00%	47.00%	34.00%	49.00%
Sales Revenue \| Sell-Through Distributors
Risks and Uncertainties [Abstract]
Concentration Risk	43.00%	42.00%	45.00%	40.00%
Derivative One
General Discussion of Derivative Instruments and Hedging Activities [Abstract]
Derivative, Number of Instruments Held \| Contract	3		3
Not designated as effective hedges for accounting purposes \| Foreign exchange contracts
General Discussion of Derivative Instruments and Hedging Activities [Abstract]
Open foreign exchange contracts - notional amounts	$ 1,900,000		$ 1,900,000		$ 4,200,000
Minimum
Basis of Presentation and Significant Accounting Policies [Line Items]
Fiscal year duration (52 weeks or 53 weeks)			364 days
Maximum
Basis of Presentation and Significant Accounting Policies [Line Items]
Fiscal year duration (52 weeks or 53 weeks)			371 days
Term of maturities of investments considered cash and cash equivalents			3 months
Customer A \| Revenue \| Customer Concentration Risk
Risks and Uncertainties [Abstract]
Concentration Risk	12.00%	20.00%	11.00%	21.00%
Customer B \| Revenue \| Customer Concentration Risk
Risks and Uncertainties [Abstract]
Concentration Risk		14.00%		14.00%
Other Nonoperating Income (Expense) [Member]
General Discussion of Derivative Instruments and Hedging Activities [Abstract]
Gain on foreign exchange contracts adjusted to fair value through earnings - less than			$ 100,000

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Earnings Per Share [Abstract]
Basic and diluted Net (loss) income attributable to common stockholders	$ (35,570)	$ 11,771	$ (88,917)	$ 23,755
Shares used in basic Net (loss) income per share (in shares)	116,903	117,904	116,883	117,170
Dilutive effect of stock options, RSUs and ESPP shares (in shares)	0	3,040	0	2,871
Shares used in diluted Net (loss) income per share (in shares)	116,903	120,944	116,883	120,041
Basic Net (loss) income per share (in dollars per share)	$ (0.30)	$ 0.10	$ (0.76)	$ 0.20
Diluted Net (loss) income per share (in dollars per share)	$ (0.30)	$ 0.10	$ (0.76)	$ 0.20
Stock options, RSU's and ESPP shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of EPS (in shares)	9,000	1,700	10,800	2,300

Marketable Securities Composition (Details) - Short-term marketable securities - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Schedule of Available-for-sale Securities [Line Items]
Maturing within one year	$ 19,625	$ 60,965
Maturing between one and two years	17,012	78,268
Total marketable securities	36,637	139,233
Corporate and Government Bonds and Notes and Commercial Paper [Member]
Schedule of Available-for-sale Securities [Line Items]
Total marketable securities	31,020	139,233
Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Schedule of Available-for-sale Securities [Line Items]
Total marketable securities	$ 5,617	$ 0

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jan. 03, 2015
Total
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Foreign currency forward exchange contracts, net	$ 3		$ 414
Total fair value of financial instruments	36,640		139,647
Short-term marketable securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of marketable securities	36,637		139,233
Short-term marketable securities \| Total
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of marketable securities	36,637		139,233
Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Foreign currency forward exchange contracts, net	0		0
Total fair value of financial instruments	31,020		139,233
Level 1 \| Short-term marketable securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of marketable securities	31,020		139,233
Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Foreign currency forward exchange contracts, net	3		414
Total fair value of financial instruments	5,620		414
Level 2 \| Short-term marketable securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of marketable securities	5,617		0
Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Foreign currency forward exchange contracts, net	0		0
Total fair value of financial instruments	0		0
Level 3 \| Short-term marketable securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of marketable securities	0		$ 0
Maximum \| Short-term marketable securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Unrealized gain (loss)	$ 100	$ (100)

Fair Value of Financial Instruments Unobservable Inputs (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Short-term marketable securities \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized gain (loss)		$ 100	$ (100)
Fair Value, Inputs, Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning fair value of Long-term marketable securities		0	5,241
Fair value of securities sold or redeemed		0	(5,488)
Realized gain from increase in fair value		0	247
Ending fair value of Long-term marketable securities	$ 0	$ 0	0
Federally-insured or FFELP guaranteed student loan auction rate securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Par value	5,700		$ 5,700
Federally-insured or FFELP guaranteed student loan auction rate securities \| Fair Value, Inputs, Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of securities sold or redeemed	$ (5,200)

Inventories (Details) - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Inventory Disclosure [Abstract]
Work in progress	$ 57,912	$ 49,554
Finished goods	22,884	15,371
Total inventories	$ 80,796	$ 64,925

Business Combinations and Goodwill (Acquisition Silicon Image) (Details) - Silicon Image, Inc $ in Thousands	Mar. 10, 2015 USD ($)
Business Combination, Consideration Transferred [Abstract]
Cash paid to Silicon Image shareholders	$ 575,955
Cash paid for options and RSUs	2,976
Accrual for options and RSUs	4,407
Fair value of partially vested stock options and RSUs assumed	5,139
Total purchase consideration	$ 588,477

Business Combinations and Goodwill (Allocation of the Purchase Price) (Details) - USD ($) $ in Thousands	Jul. 04, 2015	Mar. 10, 2015	Jan. 03, 2015	Dec. 04, 2014
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Goodwill	$ 270,083		$ 44,808
Redeemable noncontrolling interest	7,400
Silicon Image, Inc
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Cash, cash equivalents and short-term investments	157,923
Accounts receivable	30,677
Inventory	20,839
Other current assets	7,183
Property, plant and equipment	23,429
Other non-current assets	1,573
Intangible assets	192,079
Goodwill	225,275	$ 225,300
Total assets acquired	658,978
Accounts payable and other accrued liabilities	47,735
Other current liabilities	1,252
Long-term liabilities	14,342
Redeemable noncontrolling interest	7,172			$ 7,000
Total liabilities assumed	70,501
Fair value of net assets acquired	$ 588,477

Business Combinations and Goodwill (Identified Intangible Assets Acquired) (Details) - Silicon Image, Inc - USD ($) $ in Thousands	Mar. 10, 2015	Jul. 04, 2015
Allocation of purchase price to assets acquired based on fair values:
Total identified finite-lived intangible assets		$ 157,079
Total identified intangible assets		192,079
Developed technology
Allocation of purchase price to assets acquired based on fair values:
Total identified finite-lived intangible assets		125,000
Customer relationships
Allocation of purchase price to assets acquired based on fair values:
Total identified finite-lived intangible assets		29,458
Licensing Agreements
Allocation of purchase price to assets acquired based on fair values:
Total identified finite-lived intangible assets		1,852
Patents
Allocation of purchase price to assets acquired based on fair values:
Total identified finite-lived intangible assets		769
Asset Life in Years	5 years
In Process Research and Development [Member]
Allocation of purchase price to assets acquired based on fair values:
In-process research and development		$ 35,000
Minimum \| Developed technology
Allocation of purchase price to assets acquired based on fair values:
Asset Life in Years	3 years
Minimum \| Customer relationships
Allocation of purchase price to assets acquired based on fair values:
Asset Life in Years	4 years
Minimum \| Licensing Agreements
Allocation of purchase price to assets acquired based on fair values:
Asset Life in Years	3 years
Maximum \| Developed technology
Allocation of purchase price to assets acquired based on fair values:
Asset Life in Years	5 years
Maximum \| Customer relationships
Allocation of purchase price to assets acquired based on fair values:
Asset Life in Years	7 years
Maximum \| Licensing Agreements
Allocation of purchase price to assets acquired based on fair values:
Asset Life in Years	5 years

Business Combinations and Goodwill Pro Forma Financial Information (Details) - Silicon Image, Inc - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Business Acquisition [Line Items]
Total revenues	$ 106,460	$ 158,856	$ 239,958	$ 317,054
Net loss attributable to common stockholders	$ (37,525)	$ (2,654)	$ (85,813)	$ (30,895)
Basic net loss per share	$ (0.32)	$ (0.02)	$ (0.73)	$ (0.26)
Diluted net loss per share	$ (0.32)	$ (0.02)	$ (0.73)	$ (0.26)

Business Combinations and Goodwill (Narrative) (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Apr. 04, 2015	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014	Mar. 10, 2015	Jan. 03, 2015	Dec. 04, 2014
Business Acquisition [Line Items]
Acquisition related charges		$ 3,270,000	$ 0	$ 21,468,000	$ 0
Goodwill and Intangible Asset Impairment				0	$ 0
Goodwill		270,083,000		270,083,000			$ 44,808,000
Silicon Image, Inc
Business Acquisition [Line Items]
Increase (Decrease) in Accrued Liabilities		1,400,000
Business Acquisition, Percentage of Voting Interests Acquired						100.00%		7.00%
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual	$ 53,900,000
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual	33,000,000
Acquisition related charges	$ 8,600,000
Goodwill		225,275,000		225,275,000		$ 225,300,000
Scenario, Adjustment [Member] \| Silicon Image, Inc
Business Acquisition [Line Items]
Acquisition related charges		$ (3,300,000)		$ (29,600,000)

Intangible Assets (Intangible Assets) (Details) - USD ($) $ in Thousands	Mar. 10, 2015	Jul. 04, 2015	Jan. 03, 2015
Acquired Finite-Lived Intangible Assets [Line Items]
Total		$ 154,500
Intangible Assets, Net (Excluding Goodwill)		189,449	$ 9,537
SiliconBlue Technologies Ltd. and Silicon Image, Inc [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross		175,579
Accumulated Amortization		(21,130)
Total		154,449
Intangible Assets, Gross (Excluding Goodwill)		210,579
Intangible Assets, Net (Excluding Goodwill)		189,449
SiliconBlue Technologies Ltd. and Silicon Image, Inc [Member] \| Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	4 years 8 months 12 days
Gross		135,700
Accumulated Amortization		(14,105)
Total		121,595
SiliconBlue Technologies Ltd. and Silicon Image, Inc [Member] \| Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	5 years 6 months
Gross		37,258
Accumulated Amortization		(6,740)
Total		30,518
SiliconBlue Technologies Ltd. and Silicon Image, Inc [Member] \| Licensing Agreements
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	2 years 6 months
Gross		1,852
Accumulated Amortization		(236)
Total		1,616
SiliconBlue Technologies Ltd. and Silicon Image, Inc [Member] \| Patents
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	5 years
Gross		769
Accumulated Amortization		(49)
Total		720
In Process Research and Development [Member] \| SiliconBlue Technologies Ltd. and Silicon Image, Inc [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets (Excluding Goodwill)		$ 35,000

Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	$ 8,941	$ 737	$ 11,883	$ 1,474
SiliconBlue Technologies Ltd. and Silicon Image, Inc
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	9,164	737	12,167	1,474
Research and development \| SiliconBlue Technologies Ltd. and Silicon Image, Inc
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	$ 223	$ 0	$ 284	$ 0

Intangible Assets (Intangible Assets, Amortization Expense) (Details) $ in Thousands	Jul. 04, 2015 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2015 (remaining 6 months)	$ 18,378
2016	36,452
2017	35,635
2018	29,752
Thereafter	34,283
Total	$ 154,500

Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jul. 04, 2015	Jul. 04, 2015	Mar. 10, 2015	Dec. 04, 2014
Noncontrolling Interest [Line Items]
Redeemable noncontrolling interest	$ 7,400	$ 7,400
Redeemable Noncontrolling Interest, Equity, Fair Value	$ 21,000	$ 21,000
Noncontrolling Interest, Redemption Price, Fair Value, Percentage	130.00%	130.00%
Noncontrolling Interest, Period Increase (Decrease)	$ 159	$ 194
Silicon Image, Inc
Noncontrolling Interest [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired			100.00%	7.00%
Redeemable noncontrolling interest	7,172	7,172		$ 7,000
Redeemable Noncontrolling Interest, Equity, Fair Value	$ 7,200	$ 7,200

Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			$ 440,975
Net loss attributable to common stockholders for the six months ended July 4, 2015	$ (35,570)	$ 11,771	(88,917)	$ 23,755
Unrealized (loss) gain related to marketable securities, net of tax	17	(19)	(3)	(70)
Recognized loss on redemption of marketable securities, previously unrealized	(54)	108	234	99
Translation adjustments, net of tax	(49)	914	(55)	738
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax			1,108
Stock repurchase			(6,970)
Retirement of treasury stock			0
Stock-based compensation expense related to stock options, ESPP and RSUs			8,363
Fair value of partially vested stock options and RSUs assumed in business acquisition			5,139
Defined benefit pension net actuarial losses			(156)
Noncontrolling Interest, Change in Redemption Value			296
Ending balance	359,422		359,422
Common stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			1,173
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax			14
Retirement of treasury stock			(11)
Ending balance	1,176		1,176
Additional Paid-in capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			635,299
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax			1,094
Retirement of treasury stock			(6,959)
Stock-based compensation expense related to stock options, ESPP and RSUs			8,363
Fair value of partially vested stock options and RSUs assumed in business acquisition			5,139
Noncontrolling Interest, Change in Redemption Value			296
Ending balance	642,640		642,640
Treasury stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			0
Stock repurchase			(6,970)
Retirement of treasury stock			6,970
Ending balance	0		0
Accumulated deficit
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			(193,613)
Net loss attributable to common stockholders for the six months ended July 4, 2015			(88,917)
Defined benefit pension net actuarial losses			(1)
Noncontrolling Interest, Change in Redemption Value			0
Ending balance	(282,531)		(282,531)
Accumulated other comprehensive loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			(1,884)
Unrealized (loss) gain related to marketable securities, net of tax			(3)
Recognized loss on redemption of marketable securities, previously unrealized			234
Translation adjustments, net of tax			(55)
Defined benefit pension net actuarial losses	2	$ 0	(155)	$ 0
Noncontrolling Interest, Change in Redemption Value			0
Ending balance	$ (1,863)		$ (1,863)

Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss Narrative (Details) - USD ($) shares in Millions	3 Months Ended	12 Months Ended
	Apr. 04, 2015	Jan. 03, 2015	Mar. 03, 2014
Class of Stock [Line Items]
Treasury Stock, Shares, Acquired	1.1
Share Repurchase Program Four [Member]
Class of Stock [Line Items]
Stock Repurchase Program, Authorized Amount			$ 20,000,000.0
Share Repurchase Program Three [Member]
Class of Stock [Line Items]
Treasury Stock, Shares, Acquired		1.9
Treasury Stock, Value, Acquired, Cost Method	$ 7,000,000	$ 13,100,000

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Income tax expense	$ 4,056	$ 2,236	$ 28,721	$ 3,963
Unrecognized tax benefits that could significantly change during the next twelve months	2,300		2,300
Total potential decrease in UTB	2,300		2,300
Maximum
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Unrecognized tax benefits, associated interest and penalties that could significantly change within the next twelve months	$ 100		$ 100
U.S. Federal
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Statutory income tax rate			35.00%

Restructuring (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Restructuring (Details) - USD ($) $ in Thousands	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Restructuring Cost and Reserve [Line Items]
Recorded restructuring charges - less than	$ 4,068	$ 3	$ 8,962	$ 14
Restructuring Reserve [Roll Forward]
Balance at beginning of the period			182	532
Restructuring Charges			8,962	10
Costs Paid or Otherwise Settled			(5,554)	(328)
Adjustments to prior restructuring costs			0	4
Balance at the end of the period	3,590	218	3,590	218
Severance and related
Restructuring Reserve [Roll Forward]
Balance at beginning of the period			0	17
Restructuring Charges			6,909	0
Costs Paid or Otherwise Settled			(4,503)	(8)
Adjustments to prior restructuring costs			0	(9)
Balance at the end of the period	2,406	0	2,406	0
Lease Termination
Restructuring Reserve [Roll Forward]
Balance at beginning of the period			43	368
Restructuring Charges			688	1
Costs Paid or Otherwise Settled			(313)	(304)
Adjustments to prior restructuring costs			0	13
Balance at the end of the period	418	78	418	78
Systems & Engineering Tools
Restructuring Reserve [Roll Forward]
Balance at beginning of the period			0	0
Restructuring Charges			1,303	0
Costs Paid or Otherwise Settled			(537)	0
Adjustments to prior restructuring costs			0	0
Balance at the end of the period	766	0	766	0
Other
Restructuring Reserve [Roll Forward]
Balance at beginning of the period			139	147
Restructuring Charges			62	9
Costs Paid or Otherwise Settled			(201)	(16)
Adjustments to prior restructuring costs			0	0
Balance at the end of the period	0	140	0	140
2012 restructuring plan
Restructuring Cost and Reserve [Line Items]
Recorded restructuring charges - less than	4,100	$ 0	9,000	$ 0
Minimum
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	20,000		20,000
Maximum
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	$ 25,000		$ 25,000

Long-Term Debt (Narrative) (Details) - USD ($)		6 Months Ended
Long-Term Debt (Narrative) (Details) - USD ($)	Mar. 10, 2015	Jul. 04, 2015	Jun. 28, 2014
Debt Instrument [Line Items]
Repayment of debt		$ (875,000)	$ 0
Line of Credit \| Term Loan
Debt Instrument [Line Items]
Principal amount	$ 350,000,000	349,125,000	0
Repayment of debt		346,500,000
Debt Instrument, Unamortized Discount	3,500,000	10,677,000	$ 0
Debt Issuance Cost	$ 8,300,000
Debt Instrument, Interest Rate, Effective Percentage	6.15%
Debt Instrument, Periodic Payment		$ 900,000
Debt Instrument, Payment, Percentage		75.00%
Line of Credit \| Term Loan \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum	1.00%
Debt Instrument, Basis Spread on Variable Rate	4.25%
Minimum \| Line of Credit \| Term Loan
Debt Instrument [Line Items]
Debt Instrument, Payment, Percentage		0.00%
Maximum \| Line of Credit \| Term Loan
Debt Instrument [Line Items]
Debt Instrument, Payment, Percentage		75.00%

Long-Term Debt (Debt Schedule) (Details) - Line of Credit - Term Loan - USD ($)	Jul. 04, 2015	Mar. 10, 2015	Jun. 28, 2014
Debt Instrument [Line Items]
Principal amount	$ 349,125,000	$ 350,000,000	$ 0
Unamortized original issue discount and debt issuance costs	(10,677,000)	$ (3,500,000)	0
Less current portion of Long-term debt	(242,000)		0
Long-term debt	$ 338,206,000		$ 0

Long-Term Debt (Interest Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Debt Disclosure [Abstract]
Contractual interest	$ 4,593	$ 0	$ 5,920	$ 0
Amortization of debt issuance costs and discount	821	0	1,105	0
Total Interest expense related to the Term Loan	$ 5,414	$ 0	$ 7,025	$ 0

Stock-Based Compensation (Stock-based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 4,979	$ 3,320	$ 12,254	$ 6,410
Cost of products sold
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	398	211	638	377
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	2,346	1,354	3,855	2,388
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	2,235	$ 1,755	3,870	3,645
Acquisition-related Costs
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 0		$ 3,891	$ 0

Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jul. 04, 2015	Apr. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 4,979		$ 3,320	$ 12,254	$ 6,410
Compensation Cost				$ 3,900
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in Period	91,500	306,000
Award Requisite Service Period				2 years
Options, Nonvested, Number of Shares	397,500			397,500
Total stock-based compensation	$ 300
Minimum \| Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award Vesting Rights, Percentage				0.00%
Maximum \| Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award Vesting Rights, Percentage				200.00%

Segment and Geographic Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
Segment and Geographic Information (Details) $ in Thousands	Jul. 04, 2015 USD ($)	Jun. 28, 2014 USD ($)	Jul. 04, 2015 USD ($) segment	Jun. 28, 2014 USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of operating segments \| segment			2
Total revenue	$ 106,460	$ 99,320	$ 195,057	$ 195,957
Total revenue as percentage	100.00%	100.00%	100.00%	100.00%
Asia
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 83,395	$ 73,459	$ 145,929	$ 146,203
Total revenue as percentage	78.00%	74.00%	75.00%	75.00%
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 13,477	$ 15,718	$ 29,944	$ 30,428
Total revenue as percentage	13.00%	16.00%	15.00%	15.00%
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 9,588	$ 10,143	$ 19,184	$ 19,326
Total revenue as percentage	9.00%	10.00%	10.00%	10.00%