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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Apr. 02, 2016	May 09, 2016
Document Information [Line Items]
Entity Registrant Name	LATTICE SEMICONDUCTOR CORP
Entity Central Index Key	0000855658
Document Type	10-Q
Document Period End Date	Apr. 02, 2016
Amendment Flag	false
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--01-02
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding (actual number)		119,185,609

Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Income Statement [Abstract]
Product	$ 88,223	$ 85,715
Licensing and services	8,289	2,882
Total revenue	96,512	88,597
Costs and expenses:
Cost of product revenue	39,007	40,672
Cost of licensing and services revenue	401	93
Research and development	32,608	27,642
Selling, general, and administrative	23,608	21,088
Amortization of acquired intangible assets	8,721	2,942
Restructuring charges	5,431	4,894
Acquisition related charges	94	18,198
Costs and Expenses	109,870	115,529
Loss from operations	(13,358)	(26,932)
Interest expense	(4,960)	(1,611)
Other income (expense), net	817	(139)
Loss before income taxes and equity in net loss of an unconsolidated affiliate	(17,501)	(28,682)
Income tax expense	1,900	24,665
Equity in net loss of an unconsolidated affiliate, net of tax	(310)	0
Net loss	$ (19,711)	$ (53,347)
Net loss per share:
Net loss per share, basic and diluted (in usd per shares)	$ (0.17)	$ (0.46)
Shares used in per share calculations:
Shares used in per share calculations, basic and diluted (in shares)	118,833	116,863

Consolidated Statement of Comprehensive Loss (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (19,711)	$ (53,347)
Other comprehensive loss:
Unrealized loss related to marketable securities, net of tax	(28)	(20)
Reclassification adjustment for losses included in other income (expense), net of tax	2	288
Translation adjustment, net of tax	237	(6)
Change in actuarial valuation of defined benefit pension	0	(157)
Comprehensive loss	$ (19,500)	$ (53,242)

Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Current assets:
Cash and cash equivalents	$ 104,619	$ 84,606
Short-term marketable securities	11,855	17,968
Accounts receivable, net of allowance for doubtful accounts	84,399	88,471
Inventories	82,598	75,896
Prepaid expenses and other current assets	17,030	18,922
Total current assets	300,501	285,863
Property and equipment, less accumulated depreciation of $123,219 at April 2, 2016 and $118,943 at January 2, 2016	53,318	51,852
Intangible assets, net of amortization	153,675	162,583
Goodwill	269,766	267,549
Deferred income taxes	578	578
Other long-term assets	15,791	17,495
Total assets	793,629	785,920
Current liabilities:
Accounts payable and accrued expenses (includes restructuring)	90,820	74,298
Accrued payroll obligations	6,015	9,463
Current portion of long-term debt	2,308	7,557
Deferred income and allowances on sales to sell-through distributors	24,773	17,866
Deferred licensing and services revenue	1,834	1,993
Total current liabilities	125,750	111,177
Long-term debt	335,485	330,870
Other long-term liabilities	41,226	38,353
Total liabilities	502,461	480,400
Contingencies (Note 15)
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; 119,095,000 shares issued and outstanding as of April 2, 2016 and 118,651,000 shares issued and outstanding as of January 2, 2016	1,191	1,187
Additional paid-in capital	665,233	660,089
Accumulated deficit	(372,557)	(352,846)
Accumulated other comprehensive loss	(2,699)	(2,910)
Total stockholders' equity	291,168	305,520
Total liabilities and stockholders' equity	$ 793,629	$ 785,920

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Statement of Financial Position [Abstract]
Preferred stock, par value per share (in dollars per share)	$ 0.01000	$ 0.01000
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)	$ 0.01000	$ 0.01000
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	119,095,000	118,651,000
Common stock, shares outstanding	119,095,000	118,651,000
Accumulated depreciation	$ 123,219	$ 118,943

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Cash flows from operating activities:
Net loss	$ (19,711)	$ (53,347)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	17,331	7,904
Amortization of debt issuance costs and discount	241	284
Change in deferred income tax provision	17	23,791
Loss on sale or maturity of marketable securities	0	288
Loss on forward contracts	152	0
Stock-based compensation expense	4,556	5,621
Equity in net loss of an unconsolidated affiliate, net of tax	310	0
Changes in assets and liabilities:
Accounts receivable, net	4,072	12,294
Inventories	(6,702)	5,210
Prepaid expenses and other current assets	1,457	(62)
Accounts payable and accrued expenses (includes restructuring)	17,881	(2,722)
Accrued payroll obligations	(3,448)	(3,007)
Income taxes payable	(118)	0
Deferred income and allowances on sales to sell-through distributors	6,907	3,770
Deferred income and allowances on sales to sell-through distributors	179	(39)
Net cash provided by (used in) operating activities	23,124	(15)
Cash flows from investing activities:
Proceeds from sales or maturities of short-term marketable securities	5,997	108,881
Purchases of marketable securities, net	0	(4,005)
Cash paid for business acquisition, net of cash acquired	0	(425,890)
Capital expenditures, net	(5,700)	(2,878)
Cash paid for a non-marketable equity-method investment	0	(1,500)
Cash paid for software licenses	(3,362)	(1,523)
Net cash used in investing activities	(3,065)	(326,915)
Cash flows from financing activities:
Net share settlement upon issuance of restricted stock units	(525)	(1,126)
Purchases of treasury stock	0	(6,993)
Net proceeds from issuance of common stock	1,117	866
Net proceeds from issuance of long-term debt	0	346,500
Cash paid for debt issuance costs	0	(8,280)
Repayment of debt	(875)	0
Net cash (used in) provided by financing activities	(283)	330,967
Effect of exchange rate change on cash	237	(6)
Net increase in cash and cash equivalents	20,013	4,031
Beginning cash and cash equivalents	84,606	115,611
Ending cash and cash equivalents	104,619	119,642
Supplemental cash flow information:
Change in unrealized (loss) gain related to marketable securities, net of tax, included in Accumulated other comprehensive loss	(26)	268
Income taxes paid, net of refunds	2,496	1,063
Interest Paid	4,671	0
Accrued purchases of plant and equipment	$ 217	$ (433)

Basis of Presentation and Significant Accounting Policies

3 Months Ended

Apr. 02, 2016

Accounting Policies [Abstract]

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 2, 2016.

Fiscal Reporting Period

We report based on a 52 or 53-week fiscal year ending on the Saturday closest to December 31. Our first quarter of fiscal 2016 and first quarter of fiscal 2015 ended on April 2, 2016 and April 4, 2015, respectively. All references to quarterly or three months ended financial results are references to the results for the relevant 13-week fiscal period.

Principles of Consolidation and Presentation

The accompanying Consolidated Financial Statements include the accounts of Lattice and its subsidiaries after the elimination of all intercompany balances and transactions. Our results for the quarter ended April 4, 2015 include the results of Silicon Image for the approximately 3-week period from March 11, 2015 through April 4, 2015. Certain balances in prior fiscal years have been reclassified to conform to the presentation adopted in the current year. Net loss attributable to noncontrolling interest reported separately for 2015 is now included in Other income (expense), net.

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 units), 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, amounts used in acquisition valuations and purchase accounting, and the reported amounts of product revenue, licensing and services revenue, and expenses during the fiscal periods presented. Actual results could differ from those estimates.

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. Deposits with financial institutions at times exceed Federal Deposit Insurance Corporation insurance limits.

Fair Value of Financial Instruments

We invest in various financial instruments, which may include corporate and government bonds, notes, and commercial paper. 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 would 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 and Disclosures.” 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 income (expense), 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 April 2, 2016 and January 2, 2016, we had open contracts for Japanese yen of $2.1 million and $3.3 million, respectively. All five contracts outstanding at April 2, 2016 will settle in June 2016. Of the six contracts outstanding at January 2, 2016, two settled in January 2016 and four 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 for accounting purposes and as such are adjusted to fair value through Other income (expense), net, with an impact of approximately $0.2 million and less than $0.1 million, respectively, for the fiscal quarters ended April 2, 2016 and January 2, 2016. We do not hold or issue derivative financial instruments for trading or speculative purposes.

Concentration Risk

Potential exposure to concentration risk may impact revenue, trade receivables, marketable securities, and supply of wafers for our new products.

Customer concentration risk may impact revenue. Our top five end customers constituted approximately 27% of our revenue for the first quarter of fiscal 2016, compared to approximately 35% for the first quarter of fiscal 2015.

Our largest end customer accounted for approximately 8% of total revenue in the first quarter of fiscal 2016. Our two largest end customers each accounted for approximately 10% of total revenue in the first quarter of fiscal 2015. No other customers accounted for more than 10% of total revenue during these periods.

Sales through distributors have historically accounted for a significant portion of our total revenue. Revenue attributable to resale of products by our sell-through distributors for the first quarter of fiscal 2016 and fiscal 2015 was 53% and 48%, respectively. Our two largest distributor groups also account for a substantial portion of our trade receivables. At April 2, 2016 and January 2, 2016, one distributor group accounted for 41% and 29%, respectively, and the other accounted for 11% and 15%, respectively, of gross trade receivables. No other distributor groups or end customers accounted for more than 10% of gross trade receivables at these dates.

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 $0.7 million and $0.6 million at April 2, 2016 and January 2, 2016, 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 one financial institution 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 3 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. 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, and Accounts receivable, net is 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)	April 2, 2016			January 2, 2016
Inventory valued at published list prices and held by sell-through distributors with right of return	$	55,978		$	47,086
Allowance for distributor advances	(23,420		)	(22,290		)
Deferred cost of sales related to inventory held by sell-through distributors	(7,785		)	(6,930		)
Total Deferred income and allowances on sales to sell-through distributors	$	24,773		$	17,866

A significant portion of our revenue in the first quarter of both fiscal years 2016 and 2015 was from sell-through distributors. Resale of products by sell-through distributors as a percentage of total revenue was 53% for the three months ended April 2, 2016 and 48% for the three months ended April 4, 2015.

We 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.

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.

From time to time we enter into patent sale and licensing agreements to monetize and license a broad portfolio of our patented inventions. Such licensing agreements may include upfront license fees and ongoing royalties. The contractual terms of the agreements generally provide for payments of upfront license fees over an extended period of time. Revenue from such license fees is recognized when payments become due and payable as long as all other revenue recognition criteria are met, while revenue from royalties is recognized when reported.

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. From time to time, we perform audits on our royalty reporting customers to ensure compliance. As a result of those compliance efforts, we may enter into settlement agreements for the payment of unreported royalties. The contractual terms of those agreements may provide for upfront payment of unreported royalties or over a period of time, generally not to exceed one year. Revenue from those arrangements is recognized when the agreement is executed by both parties, as long as price is fixed and determinable and collections is reasonably assured.

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.

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. In August 2015, the FASB issued ASU 2015-14 deferring the effective date of ASU 2014-09 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 became effective for us on January 3, 2016. The adoption of this accounting standard update did not have a material impact on our consolidated financial statements.

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.” 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 have a material impact on our consolidated financial statements.

In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. This ASU requires that the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is determined, as opposed to the prior standard which required material adjustments be retroactively adjusted. We adopted the new standard on January 3, 2016. The adoption of this accounting standard update did not have a material impact on our consolidated financial statements.

In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, to mainly change the accounting for investments in equity securities and financial liabilities carried at fair value as well as to modify the presentation and disclosure requirements for financial instruments. The ASU is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. Adoption of the ASU is retrospective with a cumulative adjustment to retained earnings or accumulated deficit as of the adoption date. We are currently evaluating the impact of ASU 2016-01 on our consolidated financial statements and related disclosures.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires that substantially all leases, including today’s operating leases, be recognized by lessees on their balance sheet as a right-of-use asset and corresponding lease liability. For public business entities, the standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all entities. We are currently evaluating the impact of ASU 2016-02 on our consolidated financial statements and related disclosures.

In March 2016, the FASB issued ASU 2016-07, Investments - Equity Method and Joint Ventures (Topic 323), Simplifying the Transition to the Equity Method of Accounting. This update eliminates the requirement that when an existing cost method investment qualifies for use of the equity method, an investor must restate its historical financial statements, as if the equity method had been used during all previous periods. Under the new guidance, at the point an investment qualifies for the equity method, any unrealized gain or loss in accumulated other comprehensive income/(loss) ("AOCI") will be recognized through earnings. The guidance is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. We are currently evaluating the impact of ASU 2016-07 on our consolidated financial statements and related disclosures.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation, Improvements to Employee Share-Based payment Accounting (Topic 718). This update is intended to provide simplification of the accounting for share based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The guidance is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. We are currently evaluating the impact of ASU 2016-09 on our consolidated financial statements and related disclosures.

Net Loss per Share

3 Months Ended

Apr. 02, 2016

Earnings Per Share [Abstract]

Net Loss Per Share

Net Loss per Share

We compute basic net loss per share by dividing net loss 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"), and Employee Stock Purchase Plan ("ESPP") shares. 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, we do not include dilutive securities as their inclusion would reduce the net loss per share.

A summary of basic and diluted net loss per share is presented below:



	Three Months Ended
(in thousands, except per share data)	April 2, 2016			April 4, 2015
Basic and diluted Net loss	$	(19,711	)	$	(53,347	)
Shares used in basic and diluted Net loss per share	118,833			116,863
Basic and diluted Net loss per share	$	(0.17	)	$	(0.46	)

The computation of diluted net loss per share for the three months ended April 2, 2016 excludes the effects of stock options, RSUs, and ESPP shares, aggregating approximately 8.2 million shares, which are antidilutive. The computation of diluted Net loss per share for the three months ended April 4, 2015 excludes the effects of stock options, RSUs, and ESPP shares aggregating approximately 11.5 million shares, 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 April 2, 2016 could become dilutive in the future.

Marketable Securities

3 Months Ended

Apr. 02, 2016

Investments, Debt and Equity Securities [Abstract]

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)	April 2, 2016		January 2, 2016
Short-term marketable securities:
Maturing within one year	$	11,855	$	12,144
Maturing between one and two years	—		5,824
Total marketable securities	$	11,855	$	17,968

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



(In thousands)	April 2, 2016		January 2, 2016
Short-term marketable securities:
Corporate and government bonds and notes, and commercial paper	$	11,775	$	17,888
Certificates of deposit	80		80
Total marketable securities	$	11,855	$	17,968

- Definition

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

+ References + Details

Fair Value of Financial Instruments

3 Months Ended

Apr. 02, 2016

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments



	Fair value measurements as of										Fair value measurements as of
	April 2, 2016										January 2, 2016
(In thousands)	Total			Level 1		Level 2			Level 3		Total			Level 1		Level 2			Level 3
Short-term marketable securities	$	11,855		$	11,775	$	80		$	—	$	17,968		$	17,888	$	80		$	—
Foreign currency forward exchange contracts, net	(152		)	—		(152		)	—		(12		)	—		(12		)	—
Total fair value of financial instruments	$	11,703		$	11,775	$	(72	)	$	—	$	17,956		$	17,888	$	68		$	—

We invest in various financial instruments including corporate and government bonds and notes, and commercial paper. 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, "Fair Value Measurements and Disclosures." 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 three months of fiscal 2016 or 2015.

In accordance with ASC 320, “Investments-Debt and Equity Securities,” we recorded an unrealized loss of less than $0.1 million during each of the three months ended April 2, 2016 and April 4, 2015 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

3 Months Ended

Apr. 02, 2016

Inventory Disclosure [Abstract]

Inventories



(In thousands)	April 2, 2016		January 2, 2016
Work in progress	$	63,116	$	57,865
Finished goods	19,482		18,031
Total inventories	$	82,598	$	75,896

Business Combinations and Goodwill

3 Months Ended

Apr. 02, 2016

Business Combinations [Abstract]

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 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	7,383
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.

Purchase consideration was allocated to the tangible and intangible assets and liabilities assumed on the basis of the respective estimated fair values on the acquisition date. The purchase price allocation has been completed after a final detailed analysis of certain tax matters. In the first quarter of 2016, we revised our valuation and allocation of purchase price consideration resulting in $2.1 million of additional long-term liabilities related to an uncertain tax position with an equivalent revision to Goodwill, which is reflected in the Consolidated Balance Sheets for the period ended April 2, 2016.

The final 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 and equipment	23,429
Other non-current assets	1,573
Intangible assets	192,079
Goodwill	237,608
Total assets acquired	671,311
Less liabilities assumed:
Accounts payable and other accrued liabilities	47,735
Other current liabilities	1,252
Long-term liabilities	26,675
Redeemable noncontrolling interest	7,172
Total liabilities assumed	82,834
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 including the income approach and the cost approach, 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.

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. We do not expect Goodwill impairment to be tax deductible for income tax purposes. No impairment charges relating to goodwill or intangible assets were recorded for the first three months of 2016 or 2015 as no indicators of impairment were present. The goodwill balance of $269.8 million at April 2, 2016 is comprised of $44.8 million from prior acquisitions combined with $237.6 million from the acquisition of Silicon Image, reduced by a fiscal 2015 goodwill impairment charge of $12.7 million.

- 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Intangible Assets

3 Months Ended

Apr. 02, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

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, "Fair Value Measurements and Disclosures." Additionally, during fiscal 2015, we licensed additional third-party technology.

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



	Weighted Average Amortization Period (in years)	Gross		Accumulated Amortization			Intangible assets, net of amortization
(In thousands)							April 2, 2016
Developed technology	4.7	$	131,844	$	(35,801	)	$	96,043
Customer relationships	5.5	30,800		(10,142		)	20,658
Licensed technology	2.5	2,127		(758		)	1,369
Patents	5	769		(164		)	605
Total identified finite-lived intangible assets		165,540		(46,865		)	118,675
In-process research and development	indefinite	35,000		—			35,000
Total identified intangible assets		$	200,540	$	(46,865	)	$	153,675



	Three Months Ended
(In thousands)	April 2, 2016		April 4, 2015
Research and development	$	186	$	61
Amortization of acquired intangible assets	8,721		2,942
	$	8,907	$	3,003

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



(In thousands)	Amount
2016 (remaining 9 months)	$	26,169
2017	33,275
2018	26,793
2019	24,009
2020	6,063
Thereafter	2,366
Total	$	118,675

Equity Method Investment	3 Months Ended
Equity Method Investment	Apr. 02, 2016
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investment	Equity Method Investment In the first and third quarters of fiscal 2015, we purchased a preferred stock ownership interest in a privately-held company that designs human-computer interaction technology for a total consideration of $3.0 million. This investment accounted for a 15.8% ownership interest by the end of the third quarter of fiscal 2015 and was accounted for under the cost method as we did not have the ability to exert significant influence over the investee. In the fourth quarter of fiscal 2015, we increased our ownership interest to 22.7% by making an additional investment of $2.0 million. This increased our gross investment in the investee to $5.0 million. As a result of the change in ownership interest and after considering the changes in the level of our participation in the management of and interaction with the investee, we determined that we have the ability to exert significant influence over the investee. Accordingly, we changed our accounting for the investment from the cost method to the equity method and have hence recognized our proportionate share of the investee’s operating results in the Consolidated Statements of Operations. Applying the equity method, we recognized a charge of $0.3 million in the Consolidated Statements of Operations for the three months ended April 2, 2016, which is our proportionate share of the investee’s net loss for the first quarter of 2016. Through April 2, 2016, we have reduced the value of our investment by approximately $0.8 million, representing our proportionate share of the privately-held company’s net loss accumulated to that date. The net balance of our investment amounting to $4.2 million has been included in Other long-term assets in the Consolidated Balance Sheets as of April 2, 2016.

Accounts Payable and Accrued Expenses

3 Months Ended

Apr. 02, 2016

Payables and Accruals [Abstract]

Accounts Payable and Accrued Expenses

Included in accounts payable and accrued liabilities as of April 2, 2016 and January 2, 2016 were the following balances:



(In thousands)	April 2, 2016		January 2, 2016
Trade accounts payable	$	33,901	$	18,616
Payable to members of the HDMI and MHL consortia*	20,291		16,643
Other accrued expenses	36,628		39,039
Total accounts payable and accrued expenses	$	90,820	$	74,298

*As an agent of the HDMI and MHL consortia, we administer royalty reporting and distributions to the members of these consortia. This excludes amounts payable to us, and is payable quarterly based on collections from HDMI and MHL customers.

Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss

3 Months Ended

Apr. 02, 2016

Stockholders' Equity Note [Abstract]

Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss



(In thousands)	Common stock		Additional Paid-in capital		Accumulated deficit			Accumulated other comprehensive loss			Total
Balances, January 2, 2016	$	1,187	$	660,089	$	(352,846	)	$	(2,910	)	$	305,520
Net loss for the three months ended April 2, 2016	—		—		(19,711		)	—			(19,711		)
Unrealized loss related to marketable securities, net of tax	—		—		—			(28		)	(28		)
Recognized loss on redemption of marketable securities, previously unrealized	—		—		—			2			2
Translation adjustments, net of tax	—		—		—			237			237
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax	4		588		—			—			592
Stock-based compensation expense related to stock options, ESPP and RSUs	—		4,556		—			—			4,556
Balances, April 2, 2016	$	1,191	$	665,233	$	(372,557	)	$	(2,699	)	$	291,168

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section S99
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-Subparagraph (SX 210.4-08.(d),(e))
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
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-Section E

Reference 15: http://www.xbrl.org/2003/role/presentationRef
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-Number Topic 4
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+ Details

Income Taxes	3 Months Ended
Income Taxes	Apr. 02, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For the three months ended April 2, 2016 and April 4, 2015, we recorded an income tax provision of approximately $1.9 million and $24.7 million, respectively. The income tax provision for the three months ended April 2, 2016 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 income tax examinations for the following jurisdictions and years: federal, for years before 2012, state and local, for years before 2011, or foreign, for years before 2009. 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 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 jurisdiction. We believe that it is reasonably possible that $0.2 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 $0.2 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. We have U.S. federal NOL carryforwards (pretax) of approximately $339.9 million at January 2, 2016 that expire at various dates between 2023 and 2035. We have state net operating loss carryforwards (pretax) of approximately $239.9 million at January 2, 2016 that expire at various dates from 2016 through 2035. We also have federal and state credit carryforwards of $48.2 million and $55.9 million, respectively at January 2, 2016, of which $53.4 million do not expire. The remaining credits expire at various dates from 2016 through 2034. Our liability for uncertain tax positions was $24.4 million and $23.3 million at April 2, 2016 and January 2, 2016, respectively, and is recorded as a component of other long-term liabilities on our Consolidated Balance Sheets. 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 income tax expense.

Restructuring

3 Months Ended

Apr. 02, 2016

Restructuring and Related Activities [Abstract]

Restructuring

In March 2015, our Board of Directors approved an internal restructuring plan (the "March 2015 Plan"), in connection with our acquisition of Silicon Image. The March 2015 Plan was designed to realize synergies from the acquisition by eliminating redundancies created as a result of combining the two companies. This included reductions in our worldwide workforce and consolidation of facilities, cancellation of software contracts, and engineering tools. We expect the total cost of the March 2015 Plan to be in the range of approximately $17.0 million to $21.0 million and to be substantially completed by the end of second quarter of fiscal 2016. Under this plan, approximately $3.6 million and $4.9 million of expense was incurred during the three months ended April 2, 2016 and April 4, 2015, respectively, with approximately $16.9 million of total expense incurred through April 2, 2016.

In September 2015, we implemented a further reduction of our worldwide workforce (the "September 2015 Reduction") separate from the March 2015 Plan. The September 2015 Reduction was designed to resize the company in line with the market environment and to better balance our workforce with the long-term strategic needs of our business. We expect the total cost of the September 2015 Reduction to be in the range of approximately $7.0 million to $10.0 million and to be substantially completed by the end of the second quarter of fiscal 2016. Under this reduction, approximately $1.8 million of expense was incurred during the three months ended April 2, 2016 and no expense was incurred during the three months ended April 4, 2015, with approximately $7.8 million of total expense incurred through April 2, 2016.

These expenses were recorded to restructuring charges on our Consolidated Statements of Operations. The restructuring accrual balance is presented in accounts payable and accrued expenses (includes restructuring) on our Consolidated Balance Sheets.

The following table displays the combined activity related to the restructuring plans described above:



(In thousands)	Severance and related			Lease Termination			Software Contracts & Engineering Tools*			Other			Total
Balance at January 3, 2015	$	—		$	43		$	—		$	139		$	182
Restructuring charges	4,893			—			—			—			4,893
Costs paid or otherwise settled	—			(9		)	—			(139		)	(148		)
Adjustments to prior restructuring costs	—			1			—			—			1
Balance at April 4, 2015	$	4,893		$	35		$	—		$	—		$	4,928

Balance at January 2, 2016	$	3,696		$	1,005		$	377		$	—		$	5,078
Restructuring charges	1,676			220			2,181			1,354			5,431
Costs paid or otherwise settled	(3,056		)	(323		)	(2,245		)	(1,354		)	(6,978		)
Balance at April 2, 2016	$	2,316		$	902		$	313		$	—		$	3,531

*Includes cancellation of contracts, asset impairments, and accelerated depreciation of ERP systems

Long-Term Debt

3 Months Ended

Apr. 02, 2016

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 net 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 3-month LIBOR as of April 2, 2016, subject to a 1.00% floor, plus a spread of 4.25%. The current effective interest rate on the Term Loan is 6.06%.

The Term Loan is payable through a combination of quarterly installments of approximately $0.9 million, which began on July 4, 2015, annual excess cash flow payments as defined in the Credit Agreement, which are due 95 days after the last day of our fiscal year, and any payments 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. As of April 2, 2016, we expect to be required to make principal payments of $1.7 million, in addition to required quarterly payments, in 2016. While the Credit Agreement does not contain financial covenants, it does contain informational covenants and certain restrictive covenants, including limitations on liens, mergers and consolidations, sales of assets, payment of dividends, and indebtedness. We were in compliance with all such covenants at April 2, 2016.

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 fair value of the Term Loan approximates the carrying value, which is reflected in our Consolidated Balance Sheets as follows:



(In thousands)	April 2, 2016			January 2, 2016
Principal amount	$	346,500		$	347,375
Unamortized original issue discount and debt issuance costs	(8,707		)	(8,948		)
Less: Current portion of long-term debt	(2,308		)	(7,557		)
Long-term debt	$	335,485		$	330,870

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



	Three Months Ended
(In thousands)	April 2, 2016		April 4, 2015
Contractual interest	$	4,620	$	1,327
Amortization of debt issuance costs and discount	241		284
Total Interest expense related to the Term Loan	$	4,861	$	1,611

As of April 2, 2016, expected future principal payments on the Term Loan were as follows:



Fiscal year	(in thousands)

2016 (remaining 9 months)	$	4,280
2017	36,181
2018	85,812
2019	90,544
2020	78,431
Thereafter	51,252
	$	346,500

Stock-Based Compensation

3 Months Ended

Apr. 02, 2016

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

Stock-Based Compensation

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



	Three Months Ended
(In thousands)	April 2, 2016		April 4, 2015
Line item:
Cost of products sold	$	259	$	240
Research and development	2,459		1,509
Selling, general and administrative	1,838		1,635
Acquisition related charges	—		3,891
Total stock-based compensation	$	4,556	$	7,275

Of the $7.3 million total stock-based compensation for the three months ended April 4, 2015, $1.7 million was cashed out during the first quarter 2015 and $2.2 million was accrued in accrued payroll obligations on the Consolidated Balance Sheets as of April 4, 2015, and paid out in the second quarter of 2015.

During the first and second quarters of fiscal 2015, we granted approximately 327,200 stock options and 70,000 RSUs with a market condition to certain executives. Since then, there have been no new grants with market conditions. 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 April 2, 2016, approximately 296,300 stock options and 70,000 RSUs with market conditions were outstanding. In the first quarter of fiscal 2016, we incurred stock compensation expense of less than $0.1 million related to these market condition awards.

Contingencies	3 Months Ended
Contingencies	Apr. 02, 2016
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies 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. Each of these lawsuits were 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 alleged that the Merger did not appropriately value Silicon Image, was the result of an inadequate process, and included preclusive deal devices. The amended complaints also asserted that the Silicon Image’s disclosures regarding the Merger in its Schedule 14D-9 omitted material information regarding the Merger. Each of these complaints purported to seek unspecified damages. The Delaware cases have been settled and this settlement has been approved by the court. The settlement did not have a material adverse effect on our financial position. The California cases were dismissed with prejudice on February 29, 2016. In March 2014, the China National Development and Reform Commission ("NDRC") notified HDMI Licensing, LLC ("HDMI LLC"), a wholly-owned subsidiary of the Company and the agent for an entity charged with administering the HDMI specification, that the NDRC was investigating HDMI LLC’s licensing activities in China under the Chinese Anti-Monopoly Law ("AML"). The NDRC has available a broad range of remedies with respect to business practices it deems to violate the AML, including the ability to issue an order to cease conduct deemed illegal, confiscate gains deemed illegally obtained, impose a fine and require modifications to business practices. In July 2015, the NDRC concluded its investigation and informed HDMI LLC that it did not intend to impose monetary penalties on HDMI LLC, subject to HDMI LLC entering into a settlement agreement with the China Video Industry Association (“CVIA”) relating to various issues arising in connection with HDMI LLC licensing to Chinese companies. HDMI LLC has negotiated the terms of this agreement with CVIA. In February 2016, the Company filed a complaint against Technicolor SA and its affiliates in the United States District Court for the Northern District of California alleging that Technicolor had infringed certain patents relating to the HDMI specification. Technicolor filed an answer to the Company’s complaint on April 11, 2016, which included various defenses to the alleged patent infringement. Technicolor also has informed the Company that it will attempt to raise as a counterclaim or in separate litigation a claim for payment to Technicolor and other HDMI founders their respective share of any HDMI adopters’ fees not used by Lattice and its predecessor in interest Silicon Image in the marketing and other activities in furtherance of the HDMI standard. Technicolor previously has indicated its belief that the HDMI founders enjoy a right to these funds but has never pursued such claims. At this stage of the proceedings, we do not have an estimate of the likelihood or the amount of any financial consequences 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.

Segment and Geographic Information

3 Months Ended

Apr. 02, 2016

Segment Reporting [Abstract]

Segment and Geographic Information

Segment Information

As of April 2, 2016, Lattice had 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. On April 17, 2016, we entered into a definitive agreement to sell Qterics. The sale closed on April 27, 2016.

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. For the three month periods ended April 2, 2016 and April 4, 2015, revenue generated by Qterics comprised 0.4% and 0.2%, respectively, of total Revenue. For the three month periods ended April 2, 2016 and April 4, 2015, Qterics accounted for 4.1% and 0.4%, respectively, of the total Net loss. As of April 2, 2016 and January 2, 2016, the Total assets of Qterics comprised 0.3% and 0.8%, respectively, of the Total assets of the Company.

Geographic Information

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



	Three Months Ended
(In thousands)	April 2, 2016				April 4, 2015
Asia	$	65,512	68	%	$	62,534	70	%
Europe	16,009		17		16,467		19
Americas	14,991		15		9,596		11
Total revenue	$	96,512	100	%	$	88,597	100	%

We assign revenue to geographies based on the customer ship-to address at the point where revenue is recognized. In the case of sell-in distributors and OEM customers, revenue is typically recognized, and geography is assigned, when products are shipped to our distributor or customer. In the case of sell-through distributors, revenue is recognized when resale occurs and geography is assigned based on the customer location on the resale reports provided by the distributor.

There were no material changes to property and equipment by major geographic area as of April 2, 2016 as compared to January 2, 2016.

- 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.

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+ Details

Basis of Presentation and Significant Accounting Policies (Policies)	3 Months Ended
	Apr. 02, 2016
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation and Presentation The accompanying Consolidated Financial Statements include the accounts of Lattice and its subsidiaries after the elimination of all intercompany balances and transactions. Our results for the quarter ended April 4, 2015 include the results of Silicon Image for the approximately 3-week period from March 11, 2015 through April 4, 2015. Certain balances in prior fiscal years have been reclassified to conform to the presentation adopted in the current year. Net loss attributable to noncontrolling interest reported separately for 2015 is now included in Other income (expense), net.
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 units), 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, amounts used in acquisition valuations and purchase accounting, and the reported amounts of product revenue, licensing and services revenue, and expenses during the fiscal periods presented. Actual results could differ from those estimates.
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. Deposits with financial institutions at times exceed Federal Deposit Insurance Corporation insurance limits.
Fair Value of Financial Instruments	Fair Value of Financial Instruments We invest in various financial instruments, which may include corporate and government bonds, notes, and commercial paper. 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 would 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 and Disclosures.” 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 income (expense), 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 April 2, 2016 and January 2, 2016, we had open contracts for Japanese yen of $2.1 million and $3.3 million, respectively. All five contracts outstanding at April 2, 2016 will settle in June 2016. Of the six contracts outstanding at January 2, 2016, two settled in January 2016 and four 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 for accounting purposes and as such are adjusted to fair value through Other income (expense), net, with an impact of approximately $0.2 million and less than $0.1 million, respectively, for the fiscal quarters ended April 2, 2016 and January 2, 2016. We do not hold or issue derivative financial instruments for trading or speculative purposes.
Concentration Risk	Concentration Risk Potential exposure to concentration risk may impact revenue, trade receivables, marketable securities, and supply of wafers for our new products. Customer concentration risk may impact revenue. Our top five end customers constituted approximately 27% of our revenue for the first quarter of fiscal 2016, compared to approximately 35% for the first quarter of fiscal 2015. Our largest end customer accounted for approximately 8% of total revenue in the first quarter of fiscal 2016. Our two largest end customers each accounted for approximately 10% of total revenue in the first quarter of fiscal 2015. No other customers accounted for more than 10% of total revenue during these periods. Sales through distributors have historically accounted for a significant portion of our total revenue. Revenue attributable to resale of products by our sell-through distributors for the first quarter of fiscal 2016 and fiscal 2015 was 53% and 48%, respectively. Our two largest distributor groups also account for a substantial portion of our trade receivables. At April 2, 2016 and January 2, 2016, one distributor group accounted for 41% and 29%, respectively, and the other accounted for 11% and 15%, respectively, of gross trade receivables. No other distributor groups or end customers accounted for more than 10% of gross trade receivables at these dates. 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 $0.7 million and $0.6 million at April 2, 2016 and January 2, 2016, 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 one financial institution 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 3 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	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. 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, and Accounts receivable, net is adjusted to reflect the final selling price. We 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. 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. From time to time we enter into patent sale and licensing agreements to monetize and license a broad portfolio of our patented inventions. Such licensing agreements may include upfront license fees and ongoing royalties. The contractual terms of the agreements generally provide for payments of upfront license fees over an extended period of time. Revenue from such license fees is recognized when payments become due and payable as long as all other revenue recognition criteria are met, while revenue from royalties is recognized when reported. 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. From time to time, we perform audits on our royalty reporting customers to ensure compliance. As a result of those compliance efforts, we may enter into settlement agreements for the payment of unreported royalties. The contractual terms of those agreements may provide for upfront payment of unreported royalties or over a period of time, generally not to exceed one year. Revenue from those arrangements is recognized when the agreement is executed by both parties, as long as price is fixed and determinable and collections is reasonably assured.
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.
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. In August 2015, the FASB issued ASU 2015-14 deferring the effective date of ASU 2014-09 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 became effective for us on January 3, 2016. The adoption of this accounting standard update did not have a material impact on our consolidated financial statements. 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.” 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 have a material impact on our consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. This ASU requires that the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is determined, as opposed to the prior standard which required material adjustments be retroactively adjusted. We adopted the new standard on January 3, 2016. The adoption of this accounting standard update did not have a material impact on our consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, to mainly change the accounting for investments in equity securities and financial liabilities carried at fair value as well as to modify the presentation and disclosure requirements for financial instruments. The ASU is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. Adoption of the ASU is retrospective with a cumulative adjustment to retained earnings or accumulated deficit as of the adoption date. We are currently evaluating the impact of ASU 2016-01 on our consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires that substantially all leases, including today’s operating leases, be recognized by lessees on their balance sheet as a right-of-use asset and corresponding lease liability. For public business entities, the standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all entities. We are currently evaluating the impact of ASU 2016-02 on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-07, Investments - Equity Method and Joint Ventures (Topic 323), Simplifying the Transition to the Equity Method of Accounting. This update eliminates the requirement that when an existing cost method investment qualifies for use of the equity method, an investor must restate its historical financial statements, as if the equity method had been used during all previous periods. Under the new guidance, at the point an investment qualifies for the equity method, any unrealized gain or loss in accumulated other comprehensive income/(loss) ("AOCI") will be recognized through earnings. The guidance is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. We are currently evaluating the impact of ASU 2016-07 on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation, Improvements to Employee Share-Based payment Accounting (Topic 718). This update is intended to provide simplification of the accounting for share based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The guidance is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. We are currently evaluating the impact of ASU 2016-09 on our consolidated financial statements and related disclosures.

Basis of Presentation and Significant Accounting Policies (Tables)

3 Months Ended

Apr. 02, 2016

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)	April 2, 2016			January 2, 2016
Inventory valued at published list prices and held by sell-through distributors with right of return	$	55,978		$	47,086
Allowance for distributor advances	(23,420		)	(22,290		)
Deferred cost of sales related to inventory held by sell-through distributors	(7,785		)	(6,930		)
Total Deferred income and allowances on sales to sell-through distributors	$	24,773		$	17,866

Net Loss per Share (Tables)

3 Months Ended

Apr. 02, 2016

Earnings Per Share [Abstract]

Schedule of Earnings Per Share Reconciliation

A summary of basic and diluted net loss per share is presented below:



	Three Months Ended
(in thousands, except per share data)	April 2, 2016			April 4, 2015
Basic and diluted Net loss	$	(19,711	)	$	(53,347	)
Shares used in basic and diluted Net loss per share	118,833			116,863
Basic and diluted Net loss per share	$	(0.17	)	$	(0.46	)

Marketable Securities (Tables)

3 Months Ended

Apr. 02, 2016

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)	April 2, 2016		January 2, 2016
Short-term marketable securities:
Maturing within one year	$	11,855	$	12,144
Maturing between one and two years	—		5,824
Total marketable securities	$	11,855	$	17,968

Schedule of Composition of Marketable Securities

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



(In thousands)	April 2, 2016		January 2, 2016
Short-term marketable securities:
Corporate and government bonds and notes, and commercial paper	$	11,775	$	17,888
Certificates of deposit	80		80
Total marketable securities	$	11,855	$	17,968

Fair Value of Financial Instruments (Tables)

3 Months Ended

Apr. 02, 2016

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Financial Instruments



	Fair value measurements as of										Fair value measurements as of
	April 2, 2016										January 2, 2016
(In thousands)	Total			Level 1		Level 2			Level 3		Total			Level 1		Level 2			Level 3
Short-term marketable securities	$	11,855		$	11,775	$	80		$	—	$	17,968		$	17,888	$	80		$	—
Foreign currency forward exchange contracts, net	(152		)	—		(152		)	—		(12		)	—		(12		)	—
Total fair value of financial instruments	$	11,703		$	11,775	$	(72	)	$	—	$	17,956		$	17,888	$	68		$	—

Inventories (Tables)

3 Months Ended

Apr. 02, 2016

Inventory Disclosure [Abstract]

Schedule of Inventories



(In thousands)	April 2, 2016		January 2, 2016
Work in progress	$	63,116	$	57,865
Finished goods	19,482		18,031
Total inventories	$	82,598	$	75,896

Business Combinations and Goodwill (Tables)

3 Months Ended

Apr. 02, 2016

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition

The final 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 and equipment	23,429
Other non-current assets	1,573
Intangible assets	192,079
Goodwill	237,608
Total assets acquired	671,311
Less liabilities assumed:
Accounts payable and other accrued liabilities	47,735
Other current liabilities	1,252
Long-term liabilities	26,675
Redeemable noncontrolling interest	7,172
Total liabilities assumed	82,834
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 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	7,383
Fair value of partially vested stock options and RSUs assumed	5,139
Total purchase consideration	$	588,477

Intangible Assets (Tables)

3 Months Ended

Apr. 02, 2016

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:



	Weighted Average Amortization Period (in years)	Gross		Accumulated Amortization			Intangible assets, net of amortization
(In thousands)							April 2, 2016
Developed technology	4.7	$	131,844	$	(35,801	)	$	96,043
Customer relationships	5.5	30,800		(10,142		)	20,658
Licensed technology	2.5	2,127		(758		)	1,369
Patents	5	769		(164		)	605
Total identified finite-lived intangible assets		165,540		(46,865		)	118,675
In-process research and development	indefinite	35,000		—			35,000
Total identified intangible assets		$	200,540	$	(46,865	)	$	153,675

Schedule of Acquired Indefinite-lived Intangible Assets by Major Class

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



	Weighted Average Amortization Period (in years)	Gross		Accumulated Amortization			Intangible assets, net of amortization
(In thousands)							April 2, 2016
Developed technology	4.7	$	131,844	$	(35,801	)	$	96,043
Customer relationships	5.5	30,800		(10,142		)	20,658
Licensed technology	2.5	2,127		(758		)	1,369
Patents	5	769		(164		)	605
Total identified finite-lived intangible assets		165,540		(46,865		)	118,675
In-process research and development	indefinite	35,000		—			35,000
Total identified intangible assets		$	200,540	$	(46,865	)	$	153,675

Finite-lived Intangible Assets Amortization Expense

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



	Three Months Ended
(In thousands)	April 2, 2016		April 4, 2015
Research and development	$	186	$	61
Amortization of acquired intangible assets	8,721		2,942
	$	8,907	$	3,003

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

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



(In thousands)	Amount
2016 (remaining 9 months)	$	26,169
2017	33,275
2018	26,793
2019	24,009
2020	6,063
Thereafter	2,366
Total	$	118,675

Accounts Payable and Accrued Expenses (Tables)

3 Months Ended

Apr. 02, 2016

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Liabilities

Included in accounts payable and accrued liabilities as of April 2, 2016 and January 2, 2016 were the following balances:



(In thousands)	April 2, 2016		January 2, 2016
Trade accounts payable	$	33,901	$	18,616
Payable to members of the HDMI and MHL consortia*	20,291		16,643
Other accrued expenses	36,628		39,039
Total accounts payable and accrued expenses	$	90,820	$	74,298

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

3 Months Ended

Apr. 02, 2016

Stockholders' Equity Note [Abstract]

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



(In thousands)	Common stock		Additional Paid-in capital		Accumulated deficit			Accumulated other comprehensive loss			Total
Balances, January 2, 2016	$	1,187	$	660,089	$	(352,846	)	$	(2,910	)	$	305,520
Net loss for the three months ended April 2, 2016	—		—		(19,711		)	—			(19,711		)
Unrealized loss related to marketable securities, net of tax	—		—		—			(28		)	(28		)
Recognized loss on redemption of marketable securities, previously unrealized	—		—		—			2			2
Translation adjustments, net of tax	—		—		—			237			237
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax	4		588		—			—			592
Stock-based compensation expense related to stock options, ESPP and RSUs	—		4,556		—			—			4,556
Balances, April 2, 2016	$	1,191	$	665,233	$	(372,557	)	$	(2,699	)	$	291,168

Restructuring (Tables)

3 Months Ended

Apr. 02, 2016

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Reserve by Type of Cost

The following table displays the combined activity related to the restructuring plans described above:



(In thousands)	Severance and related			Lease Termination			Software Contracts & Engineering Tools*			Other			Total
Balance at January 3, 2015	$	—		$	43		$	—		$	139		$	182
Restructuring charges	4,893			—			—			—			4,893
Costs paid or otherwise settled	—			(9		)	—			(139		)	(148		)
Adjustments to prior restructuring costs	—			1			—			—			1
Balance at April 4, 2015	$	4,893		$	35		$	—		$	—		$	4,928

Balance at January 2, 2016	$	3,696		$	1,005		$	377		$	—		$	5,078
Restructuring charges	1,676			220			2,181			1,354			5,431
Costs paid or otherwise settled	(3,056		)	(323		)	(2,245		)	(1,354		)	(6,978		)
Balance at April 2, 2016	$	2,316		$	902		$	313		$	—		$	3,531

*Includes cancellation of contracts, asset impairments, and accelerated depreciation of ERP systems

Long-Term Debt (Tables)

3 Months Ended

Apr. 02, 2016

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

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



(In thousands)	April 2, 2016			January 2, 2016
Principal amount	$	346,500		$	347,375
Unamortized original issue discount and debt issuance costs	(8,707		)	(8,948		)
Less: Current portion of long-term debt	(2,308		)	(7,557		)
Long-term debt	$	335,485		$	330,870

Interest Income and Interest Expense Disclosure

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



	Three Months Ended
(In thousands)	April 2, 2016		April 4, 2015
Contractual interest	$	4,620	$	1,327
Amortization of debt issuance costs and discount	241		284
Total Interest expense related to the Term Loan	$	4,861	$	1,611

Schedule of Debt

As of April 2, 2016, expected future principal payments on the Term Loan were as follows:



Fiscal year	(in thousands)

2016 (remaining 9 months)	$	4,280
2017	36,181
2018	85,812
2019	90,544
2020	78,431
Thereafter	51,252
	$	346,500

- 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

+ Details

Stock-Based Compensation (Tables)

3 Months Ended

Apr. 02, 2016

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
(In thousands)	April 2, 2016		April 4, 2015
Line item:
Cost of products sold	$	259	$	240
Research and development	2,459		1,509
Selling, general and administrative	1,838		1,635
Acquisition related charges	—		3,891
Total stock-based compensation	$	4,556	$	7,275

Segment and Geographic Information (Tables)

3 Months Ended

Apr. 02, 2016

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
(In thousands)	April 2, 2016				April 4, 2015
Asia	$	65,512	68	%	$	62,534	70	%
Europe	16,009		17		16,467		19
Americas	14,991		15		9,596		11
Total revenue	$	96,512	100	%	$	88,597	100	%

Basis of Presentation and Significant Accounting Policies (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Apr. 02, 2016 USD ($) Contract	Apr. 04, 2015	Jan. 02, 2016 USD ($) Contract	Jun. 30, 2016 Contract	Jan. 31, 2016 Contract
General Discussion of Derivative Instruments and Hedging Activities [Abstract]
Derivative contracts \| Contract	5
Risks and Uncertainties [Abstract]
Allowance for doubtful accounts	$ 700		$ 600
Deferred Revenue and Credits [Abstract]
Inventory valued at published list prices and held by sell-through distributors with right of return	55,978		47,086
Allowance for distributor advances	(23,420)		(22,290)
Deferred cost of sales related to inventory held by sell-through distributors	(7,785)		(6,930)
Total Deferred income and allowances on sales to sell-through distributors	$ 24,773		17,866
Revenue \| Customer Concentration Risk
Risks and Uncertainties [Abstract]
Concentration Risk	8.00%
Sales Revenue \| Customer Concentration Risk
Risks and Uncertainties [Abstract]
Concentration Risk	27.00%	35.00%
Sell-Through Distributors \| Customer Concentration Risk
Risks and Uncertainties [Abstract]
Concentration Risk	53.00%	48.00%
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	$ 2,100		$ 3,300
Not designated as effective hedges for accounting purposes \| Derivative One
General Discussion of Derivative Instruments and Hedging Activities [Abstract]
Derivative contracts \| Contract			6		2
Maximum
Basis of Presentation and Significant Accounting Policies [Line Items]
Term of maturities of investments considered cash and cash equivalents	3 months
Customer A \| Revenue \| Customer Concentration Risk
Risks and Uncertainties [Abstract]
Concentration Risk		10.00%
Sell-Through Distributor A \| Sell-Through Distributors \| Customer Concentration Risk
Risks and Uncertainties [Abstract]
Concentration Risk	41.00%		11.00%
Sell-Through Distributor B \| Sell-Through Distributors \| Customer Concentration Risk
Risks and Uncertainties [Abstract]
Concentration Risk	29.00%		15.00%
Other Nonoperating Income (Expense)
General Discussion of Derivative Instruments and Hedging Activities [Abstract]
Gain on foreign exchange contracts adjusted to fair value through earnings - less than	$ 200		$ 100
Scenario, Forecast \| Not designated as effective hedges for accounting purposes \| Derivative One
General Discussion of Derivative Instruments and Hedging Activities [Abstract]
Derivative contracts \| Contract				4

Net Loss per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Earnings Per Share [Abstract]
Basic and diluted Net loss	$ (19,711)	$ (53,347)
Shares used in diluted Net (loss) income per share (in shares)	118,833	116,863
Net loss per share, basic and diluted (in usd per shares)	$ (0.17)	$ (0.46)
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)	8,200	11,500

Marketable Securities Composition (Details) - Short-term marketable securities - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Schedule of Available-for-sale Securities [Line Items]
Maturing within one year	$ 11,855	$ 12,144
Maturing between one and two years	0	5,824
Total marketable securities	11,855	17,968
Corporate and government bonds and notes, and commercial paper
Schedule of Available-for-sale Securities [Line Items]
Total marketable securities	11,775	17,888
Certificates of deposit
Schedule of Available-for-sale Securities [Line Items]
Total marketable securities	$ 80	$ 80

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Total
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Foreign currency forward exchange contracts, net	$ (152)	$ (12)
Total fair value of financial instruments	11,703	17,956
Short-term marketable securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of marketable securities	11,855	17,968
Short-term marketable securities \| Total
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of marketable securities	11,855	17,968
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	11,775	17,888
Level 1 \| Short-term marketable securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of marketable securities	11,775	17,888
Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Foreign currency forward exchange contracts, net	(152)	(12)
Total fair value of financial instruments	(72)	68
Level 2 \| Short-term marketable securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of marketable securities	80	80
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

Fair Value of Financial Instruments Unobservable Inputs (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Short-term marketable securities \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized gain (loss)	$ 0.1	$ 0.1

Inventories (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Inventory Disclosure [Abstract]
Work in progress	$ 63,116	$ 57,865
Finished goods	19,482	18,031
Total inventories	$ 82,598	$ 75,896

Business Combinations and Goodwill (Acquisition Silicon Image) (Details) - Silicon Image, Inc - USD ($) $ in Thousands		3 Months Ended
	Mar. 10, 2015	Apr. 02, 2016
Business Combination, Consideration Transferred [Abstract]
Cash paid to Silicon Image shareholders	$ 575,955
Cash paid for options and RSUs	7,383
Fair value of partially vested stock options and RSUs assumed	5,139	$ 2,100
Total purchase consideration	$ 588,477

Business Combinations and Goodwill (Allocation of the Purchase Price) (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016	Mar. 10, 2015
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Goodwill	$ 269,766	$ 267,549
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 and equipment	23,429
Other non-current assets	1,573
Intangible assets	192,079		$ 192,079
Goodwill	237,608		$ 237,600
Total assets acquired	671,311
Accounts payable and other accrued liabilities	47,735
Other current liabilities	1,252
Long-term liabilities	26,675
Redeemable noncontrolling interest	7,172
Total liabilities assumed	82,834
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	Apr. 02, 2016
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	$ 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 (Narrative) (Details) - USD ($)		3 Months Ended		12 Months Ended
	Mar. 10, 2015	Apr. 02, 2016	Apr. 04, 2015	Jan. 02, 2016
Business Acquisition [Line Items]
Goodwill and intangible asset impairment		$ 0	$ 0
Goodwill		269,766,000		$ 267,549,000
Silicon Image, Inc
Business Acquisition [Line Items]
Business acquisition, percentage of ownership	100.00%
Fair value of partially vested stock options and RSUs assumed	$ 5,139,000	2,100,000
Goodwill	$ 237,600,000	237,608,000
Series of Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Goodwill		$ 44,800,000
SiliconBlue Technologies Ltd. and Silicon Image, Inc
Business Acquisition [Line Items]
Goodwill and intangible asset impairment				$ 12,700,000

Intangible Assets (Intangible Assets) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Jan. 02, 2016
Acquired Finite-Lived Intangible Assets [Line Items]
Total	$ 118,675
Intangible Assets, Net (Excluding Goodwill)	153,675	$ 162,583
SiliconBlue Technologies Ltd. and Silicon Image, Inc
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	165,540
Accumulated Amortization	(46,865)
Total	118,675
Intangible Assets, Gross (Excluding Goodwill)	200,540
Intangible Assets, Net (Excluding Goodwill)	$ 153,675
SiliconBlue Technologies Ltd. and Silicon Image, Inc \| Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	4 years 8 months 12 days
Gross	$ 131,844
Accumulated Amortization	(35,801)
Total	$ 96,043
SiliconBlue Technologies Ltd. and Silicon Image, Inc \| Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	5 years 6 months
Gross	$ 30,800
Accumulated Amortization	(10,142)
Total	$ 20,658
SiliconBlue Technologies Ltd. and Silicon Image, Inc \| Licensing Agreements
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	2 years 6 months
Gross	$ 2,127
Accumulated Amortization	(758)
Total	$ 1,369
SiliconBlue Technologies Ltd. and Silicon Image, Inc \| Patents
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	5 years
Gross	$ 769
Accumulated Amortization	(164)
Total	605
In Process Research and Development [Member] \| SiliconBlue Technologies Ltd. and Silicon Image, Inc
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
	Apr. 02, 2016	Apr. 04, 2015
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	$ 8,721	$ 2,942
SiliconBlue Technologies Ltd. and Silicon Image, Inc
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	8,907	3,003
Research and development \| SiliconBlue Technologies Ltd. and Silicon Image, Inc
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	$ 186	$ 61

Intangible Assets (Intangible Assets, Amortization Expense) (Details) $ in Thousands	Apr. 02, 2016 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2016 (remaining 9 months)	$ 26,169
2016	33,275
2017	26,793
2018	24,009
2020	6,063
Thereafter	2,366
Total	$ 118,675

Equity Method Investment (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
Equity Method Investment (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016	Apr. 04, 2015	Apr. 02, 2016	Oct. 03, 2015
Schedule of Equity Method Investments [Line Items]
Cash paid for a non-marketable equity-method investment	$ 0		$ 1,500		$ 3,000
Cost method investment, ownership percentage					15.80%
Equity method investment, ownership percentage		22.70%
Payments to acquire equity method investments		$ 2,000
Equity method investments		$ 5,000
Equity in net loss of an unconsolidated affiliate, net of tax	(310)		$ 0	$ (800)
Other Noncurrent Assets
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 4,200			$ 4,200

Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Related Party Transaction [Line Items]
Trade accounts payable	$ 33,901	$ 18,616
Accounts payable and accrued expenses (includes restructuring)	90,820	74,298
Other accrued expenses	36,628	39,039
Total accounts payable and accrued expenses	90,820	74,298
Consortia
Related Party Transaction [Line Items]
Accounts payable and accrued expenses (includes restructuring)	$ 20,291	$ 16,643

Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 305,520
Net loss for the three months ended April 2, 2016	(19,711)
Unrealized loss related to marketable securities, net of tax	(28)	$ (20)
Recognized loss on redemption of marketable securities, previously unrealized	2	288
Translation adjustments, net of tax	237	$ (6)
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax	592
Stock-based compensation expense related to stock options, ESPP and RSUs	4,556
Ending balance	291,168
Common stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	1,187
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax	4
Ending balance	1,191
Additional Paid-in capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	660,089
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax	588
Stock-based compensation expense related to stock options, ESPP and RSUs	4,556
Ending balance	665,233
Accumulated deficit
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(352,846)
Net loss for the three months ended April 2, 2016	(19,711)
Ending balance	(372,557)
Accumulated other comprehensive loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(2,910)
Unrealized loss related to marketable securities, net of tax	(28)
Recognized loss on redemption of marketable securities, previously unrealized	2
Translation adjustments, net of tax	237
Ending balance	$ (2,699)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Apr. 04, 2015	Jan. 02, 2016
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Income tax expense	$ 1,900	$ 24,665
Deferred tax assets, valuation allowance		$ 21,000
Unrecognized tax benefits that could significantly change during the next twelve months	200
Total potential decrease in UTB	200
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
U.S. Federal
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Statutory income tax rate	35.00%
Internal Revenue Service (IRS)
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Operating loss carryforwards			$ 339,900
Tax credit carryforward, amount			48,200
State and Local Jurisdiction
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Operating loss carryforwards			239,900
Tax credit carryforward, amount			55,900
Other Long-term Liabilities
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Uncertain tax positions	$ 24,400		23,300
No Expiration Date
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Tax credit carryforward, amount			$ 53,400

Restructuring Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		7 Months Ended	15 Months Ended
Restructuring Narrative (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Apr. 04, 2015	Apr. 02, 2016	Apr. 02, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 5,431	$ 4,894
March 2015 Plan
Restructuring Cost and Reserve [Line Items]
Restructuring charges	3,600	4,900		$ 16,900
September 2015 Reduction
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1,800	$ 0	$ 7,800
Minimum
Restructuring Cost and Reserve [Line Items]
Restructuring and elated cost, expected cost	17,000		17,000	17,000
Minimum \| Severance and related \| September 2015 Reduction
Restructuring Cost and Reserve [Line Items]
Restructuring and elated cost, expected cost	7,000		7,000	7,000
Maximum
Restructuring Cost and Reserve [Line Items]
Restructuring and elated cost, expected cost	21,000		21,000	21,000
Maximum \| Severance and related \| September 2015 Reduction
Restructuring Cost and Reserve [Line Items]
Restructuring and elated cost, expected cost	$ 10,000		$ 10,000	$ 10,000

Restructuring (Details) - USD ($) $ in Thousands	3 Months Ended
Restructuring (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Apr. 04, 2015
Restructuring Reserve [Roll Forward]
Balance at beginning of the period	$ 5,078	$ 182
Restructuring charges	5,431	4,893
Costs paid or otherwise settled	(6,978)	(148)
Adjustments to prior restructuring costs		1
Balance at the end of the period	3,531	4,928
Severance and related
Restructuring Reserve [Roll Forward]
Balance at beginning of the period	3,696	0
Restructuring charges	1,676	4,893
Costs paid or otherwise settled	(3,056)	0
Adjustments to prior restructuring costs		0
Balance at the end of the period	2,316	4,893
Lease Termination
Restructuring Reserve [Roll Forward]
Balance at beginning of the period	1,005	43
Restructuring charges	220	0
Costs paid or otherwise settled	(323)	(9)
Adjustments to prior restructuring costs		1
Balance at the end of the period	902	35
Software Contracts & Engineering Tools
Restructuring Reserve [Roll Forward]
Balance at beginning of the period	377	0
Restructuring charges	2,181	0
Costs paid or otherwise settled	(2,245)	0
Adjustments to prior restructuring costs		0
Balance at the end of the period	313	0
Other
Restructuring Reserve [Roll Forward]
Balance at beginning of the period	0	139
Restructuring charges	1,354	0
Costs paid or otherwise settled	(1,354)	(139)
Adjustments to prior restructuring costs		0
Balance at the end of the period	$ 0	$ 0

Long-Term Debt (Narrative) (Details) - USD ($)		3 Months Ended
Long-Term Debt (Narrative) (Details) - USD ($)	Mar. 10, 2015	Apr. 02, 2016	Apr. 04, 2015	Jan. 02, 2016
Debt Instrument [Line Items]
Principal amount		$ 346,500,000
Repayment of debt		(875,000)	$ 0
Debt instrument, periodic payment terms, additional payments		1,700,000
Line of Credit \| Term Loan
Debt Instrument [Line Items]
Principal amount	$ 350,000,000	346,500,000		$ 347,375,000
Repayment of debt	346,500,000
Debt instrument, unamortized discount	3,500,000	8,707,000		$ 8,948,000
Debt issuance cost	$ 8,300,000
Debt instrument, interest rate, effective percentage	6.06%
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) - USD ($)	Apr. 02, 2016	Jan. 02, 2016	Mar. 10, 2015
Debt Instrument [Line Items]
Principal amount	$ 346,500,000
Line of Credit \| Term Loan
Debt Instrument [Line Items]
Principal amount	346,500,000	$ 347,375,000	$ 350,000,000
Unamortized original issue discount and debt issuance costs	(8,707,000)	(8,948,000)	$ (3,500,000)
Less: Current portion of long-term debt	(2,308,000)	(7,557,000)
Long-term debt	$ 335,485,000	$ 330,870,000

Long-Term Debt (Interest Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Debt Disclosure [Abstract]
Contractual interest	$ 4,620	$ 1,327
Amortization of debt issuance costs and discount	241	284
Total Interest expense related to the Term Loan	$ 4,861	$ 1,611

Long-Term Debt (Future Principal Payments) (Details) $ in Thousands	Apr. 02, 2016 USD ($)
Debt Disclosure [Abstract]
2016 (remaining 9 months)	$ 4,280
2017	36,181
2018	85,812
2018	90,544
2019	78,431
2020	51,252
Total	$ 346,500

Stock-Based Compensation (Stock-based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 4,556	$ 7,275
Cost of products sold
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	259	240
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	2,459	1,509
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	1,838	1,635
Acquisition-related Costs
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 0	$ 3,891

Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended	12 Months Ended
	Apr. 02, 2016	Apr. 04, 2015	Jul. 04, 2015	Apr. 02, 2016	Jan. 02, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 4,556	$ 7,275
Decrease in employee related liabilities		1,700
Accrued payroll obligations	$ 6,015	$ 2,200		$ 6,015	$ 9,463
Award requisite service period	2 years
Comparison period	2 years
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 100
Grants in Period (in shares)			327,200	0	0
Options, nonvested, (in shares)	296,300			296,300
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in Period (in shares)			70,000
Options, nonvested, (in shares)	70,000			70,000
Minimum \| Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	0.00%
Maximum \| Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	200.00%

Contingencies (Details) - complant	Feb. 13, 2015	Jan. 30, 2015	Jan. 29, 2015
Molland v. George, et al. and Stein v. Silicon Image, Inc.
Loss Contingencies [Line Items]
Pending claims, number	2	5	2

Segment and Geographic Information (Details) $ in Thousands	3 Months Ended
Segment and Geographic Information (Details) $ in Thousands	Apr. 02, 2016 USD ($) segment	Apr. 04, 2015 USD ($)	Jan. 02, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of operating segments \| segment	2
Number of reportable segments \| segment	1
Total revenue	$ 96,512	$ 88,597
Total revenue as percentage	100.00%	100.00%
Asia
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 65,512	$ 62,534
Total revenue as percentage	68.00%	70.00%
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 16,009	$ 16,467
Total revenue as percentage	17.00%	19.00%
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 14,991	$ 9,596
Total revenue as percentage	15.00%	11.00%
Qterics
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue, percent	0.40%	0.20%
Net Loss, percent	4.10%	0.40%
Assets, percent	0.30%		0.80%