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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2016	Feb. 27, 2017	Jul. 02, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	LATTICE SEMICONDUCTOR CORP
Entity Central Index Key	0000855658
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding (actual number)		121,748,458
Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Filer	No
Entity Public Float			$ 494,446,306

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Current assets:
Cash and cash equivalents	$ 106,552	$ 84,606
Short-term marketable securities	10,308	17,968
Accounts receivable, net of allowance for doubtful accounts	99,637	88,471
Inventories	79,168	75,896
Prepaid expenses and other current assets	19,035	18,922
Total current assets	314,700	285,863
Property and equipment, less accumulated depreciation of $134,786 at December 31, 2016 and $118,943 at January 2, 2016	49,481	51,852
Intangible assets, net of amortization	118,863	162,583
Goodwill	269,758	267,549
Deferred income taxes	372	578
Other long-term assets	13,709	17,495
Total assets	766,883	785,920
Current liabilities:
Accounts payable and accrued expenses (includes restructuring)	80,933	74,298
Accrued payroll obligations	9,865	9,463
Current portion of long-term debt	33,767	7,557
Deferred income and allowances on sales to sell-through distributors	32,257	17,866
Deferred licensing and services revenue	728	1,993
Total current liabilities	157,550	111,177
Long-term debt	300,855	330,870
Other long-term liabilities	38,048	38,353
Total liabilities	496,453	480,400
Commitments and contingencies
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; 121,645,000 shares issued and outstanding as of December 31, 2016 and 118,651,000 shares issued and outstanding as of January 2, 2016	1,216	1,187
Additional paid-in capital	680,315	660,089
Accumulated deficit	(406,945)	(352,846)
Accumulated other comprehensive loss	(4,156)	(2,910)
Total stockholders' equity	270,430	305,520
Total liabilities and stockholders' equity	$ 766,883	$ 785,920

Consolidated Balance Sheets Parentheticals - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Statement of Financial Position [Abstract]
Accumulated Depreciation	$ 134,786	$ 118,943
Preferred stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	121,645,000	118,651,000
Common stock, shares outstanding	121,645,000	118,651,000

Consolidated Statements of Operations - USD ($) shares in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Income Statement [Abstract]
Product	$ 390,704,000	$ 369,200,000	$ 366,127,000
Licensing and services	36,350,000	36,766,000	0
Total revenue	427,054,000	405,966,000	366,127,000
Costs and expenses:
Cost of product revenue	179,983,000	184,914,000	159,940,000
Cost of licensing and services revenue	637,000	1,143,000	0
Research and development	117,518,000	136,868,000	88,079,000
Selling, general, and administrative	98,602,000	97,349,000	73,527,000
Amortization of acquired intangible assets	33,575,000	29,580,000	2,948,000
Restructuring charges	9,267,000	19,239,000	17,000
Acquisition related charges	6,305,000	22,450,000	0
Impairment of goodwill and intangible assets	7,866,000	21,655,000	0
Costs and expenses	453,753,000	513,198,000	324,511,000
(Loss) income from operations	(26,699,000)	(107,232,000)	41,616,000
Interest expense	(20,327,000)	(18,389,000)	(172,000)
Other income (expense), net	4,303,000	(580,000)	1,497,000
(Loss) income before income taxes and equity in net loss of an unconsolidated affiliate	(42,723,000)	(126,201,000)	42,941,000
Income tax expense (benefit)	9,917,000	32,540,000	(5,639,000)
Equity in net loss of an unconsolidated affiliate, net of tax	(1,459,000)	(492,000)	0
Net (loss) income	$ (54,099,000)	$ (159,233,000)	$ 48,580,000
Net (loss) income per share
Basic net (loss) income per share (in dollars per share)	$ (0.45)	$ (1.36)	$ 0.41
Diluted net (loss) income per share (in dollars per share)	$ (0.45)	$ (1.36)	$ 0.40
Shares used in per share calculations:
Basic (in shares)	119,994	117,387	117,708
Diluted (in shares)	119,994	117,387	120,245

Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (54,099)	$ (159,233)	$ 48,580
Other comprehensive (loss) income:
Unrealized loss related to marketable securities, net of tax	(172)	(69)	(373)
Reclassification adjustment for losses related to marketable securities included in other income (expense)	79	442	170
Realized gain on sale of auction rate securities, previously unrealized, net of tax	0	0	(1,147)
Translation adjustment loss, net of tax	(1,303)	(1,243)	(330)
Change in actuarial valuation of defined benefit pension	150	(156)	(59)
Comprehensive (loss) income	$ (55,345)	$ (160,259)	$ 46,841

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common stock	Paid-in capital	Treasury stock	Accumulated deficit	Accumulated other comprehensive loss
Balances (shares) at Dec. 28, 2013		115,671,000
Balances at Dec. 28, 2013	$ 385,680	$ 1,157	$ 626,861	$ 0	$ (242,193)	$ (145)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	48,580				48,580
Unrealized loss related to marketable securities, net of tax	(373)					(373)
Recognized loss on redemption of marketable securities, previously unrealized	170					170
Realized gain on sale of auction rate securities, previously unrealized, net of tax	(1,147)					(1,147)
Translation adjustments, net of tax	(330)					(330)
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs (net of taxes) (shares)		3,560,000
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax	8,741	$ 35	8,706
Stock repurchase	(13,089)			(13,089)
Retirement of treasury stock (shares)		(1,943,000)
Retirement of treasury stock	0	$ (19)	(13,070)	13,089
Stock-based compensation expense related to options, ESPP and RSUs	12,802		12,802
Change in actuarial valuation of defined benefit pension	(59)					(59)
Balances (shares) at Jan. 03, 2015		117,288,000
Balances at Jan. 03, 2015	440,975	$ 1,173	635,299	0	(193,613)	(1,884)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(159,233)				(159,233)
Unrealized loss related to marketable securities, net of tax	(69)					(69)
Recognized loss on redemption of marketable securities, previously unrealized	442					442
Realized gain on sale of auction rate securities, previously unrealized, net of tax	0
Translation adjustments, net of tax	(1,243)					(1,243)
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs (net of taxes) (shares)		2,415,000
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax	2,186	$ 25	2,161
Stock repurchase	(6,970)			(6,970)
Retirement of treasury stock (shares)		(1,052,000)
Retirement of treasury stock	0	$ (11)	(6,959)	6,970
Stock-based compensation expense related to options, ESPP and RSUs	18,396		18,396
Fair value of partially vested stock options and RSUs assumed in acquisition	5,139		5,139
Change in actuarial valuation of defined benefit pension	(156)					(156)
Redemption of noncontrolling interest, net of previous accretion to redemption value.	$ 6,053		6,053
Balances (shares) at Jan. 02, 2016	118,651,000	118,651,000
Balances at Jan. 02, 2016	$ 305,520	$ 1,187	660,089	0	(352,846)	(2,910)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(54,099)				(54,099)
Unrealized loss related to marketable securities, net of tax	(172)					(172)
Recognized loss on redemption of marketable securities, previously unrealized	79					79
Realized gain on sale of auction rate securities, previously unrealized, net of tax	0
Translation adjustments, net of tax	(1,303)					(1,303)
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs (net of taxes) (shares)		2,994,000
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax	4,042	$ 29	4,013
Stock-based compensation expense related to options, ESPP and RSUs	16,213		16,213
Change in actuarial valuation of defined benefit pension	$ 150					150
Balances (shares) at Dec. 31, 2016	121,645,000	121,645,000
Balances at Dec. 31, 2016	$ 270,430	$ 1,216	$ 680,315	$ 0	$ (406,945)	$ (4,156)

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Cash flows from operating activities:
Net (loss) income	$ (54,099)	$ (159,233)	$ 48,580
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	61,806	60,808	22,248
Impairment of goodwill and intangible assets	7,866	21,655	0
Amortization of debt issuance costs and discount	1,350	2,835	0
Change in deferred income tax provision	90	21,367	(7,222)
Loss (gain) on sale or maturity of marketable securities	79	333	(1,698)
Gain on forward contracts	(184)	0	0
Stock-based compensation expense	16,213	18,396	12,802
Loss on disposal of fixed assets	597	0	0
Gain on sale of business unit	(2,646)	0	0
Equity in net loss of an unconsolidated affiliate, net of tax	1,459	492	0
Changes in assets and liabilities:
Accounts receivable, net	(11,419)	4,578	(12,287)
Inventories	(3,272)	9,868	(18,703)
Prepaid expenses and other assets	(2,270)	(6,710)	(3,200)
Accounts payable and accrued expenses (includes restructuring)	8,338	6,301	(7,819)
Accrued payroll obligations	402	(10,202)	(30)
Income taxes payable	3,216	1,749	0
Deferred income and allowances on sales to sell-through distributors	14,391	2,920	7,451
Deferred licensing and services revenue	(183)	1,958	0
Net cash (used in) provided by operating activities	41,734	(22,885)	40,122
Cash flows from investing activities:
Proceeds from sales of and maturities of marketable securities	14,897	142,956	101,861
Purchase of marketable securities, net	(7,490)	(15,982)	(139,792)
Proceeds from sale of auction rate securities	0	0	5,488
Cash paid for business acquisition, net of cash acquired	0	(431,068)	0
Proceeds from sale of land and building	0	0	14,625
Capital expenditures	(16,717)	(18,209)	(10,267)
Proceeds from sale of business unit, net of cash sold	1,972	0	0
Cash paid for a non-marketable equity-method investment	(1,000)	(5,000)	0
Cash paid for software licenses	(9,035)	(9,515)	(6,059)
Net cash used in investing activities	(17,373)	(336,818)	(34,144)
Cash flows from financing activities:
Proceeds from issuance of restricted stock units, net of withholding taxes	(3,565)	(3,493)	(3,427)
Purchase of treasury stock	0	(6,970)	(13,089)
Net proceeds from issuance of common stock	7,607	5,679	12,168
Net proceeds from issuance of long-term debt	0	346,500	0
Cash paid for debt issuance costs	0	(8,283)	0
Repayment of debt	(5,154)	(2,625)	0
Cash paid to redeem noncontrolling interest	0	(867)	0
Net cash provided by (used in) financing activities	(1,112)	329,941	(4,348)
Effect of exchange rate change on cash	(1,303)	(1,243)	(329)
Net (decrease) increase in cash and cash equivalents	21,946	(31,005)	1,301
Beginning cash and cash equivalents	84,606	115,611	114,310
Ending cash and cash equivalents	106,552	84,606	115,611
Supplemental cash flow information:
Change in unrealized loss related to marketable securities, net of tax, included in Accumulated other comprehensive loss	172	69	373
Income taxes paid, net of refunds	9,359	8,339	1,599
Interest paid	18,159	11,071	0
Accrued purchases of property and equipment	1,028	1,277	478
Transfer of residual temporary equity to additional paid-in capital on redemption of noncontrolling interest	$ 0	$ 6,773	$ 0

Nature of Operations and Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Nature of Operations and Significant Accounting Policies

Nature of Operations

Lattice Semiconductor (“Lattice,” the “Company,” “we,” “us,” or “our”) is a Delaware company that engages in smart connectivity solutions, providing intellectual property and low-power, small form-factor devices that enable global customers to quickly deliver innovative and differentiated cost and power efficient products. The Company's broad end-market exposure extends from mobile and consumer electronics to industrial and automotive equipment, communications and computing infrastructure, and licensing.

We do not manufacture our own silicon wafers. We maintain strategic relationships with large semiconductor foundries located in Asia to source our finished silicon wafers. In addition, all of our assembly operations and most of our test and logistics operations are performed by outside suppliers located in Asia. We perform certain test operations and reliability and quality assurance processes internally.

We place substantial emphasis on new product development and believe that continued investment in this area is required to maintain and improve our competitive position. Our product development activities emphasize new proprietary products, advanced packaging, enhancement of existing products and process technologies, and improvement of software development tools. Research and development activities occur primarily in: Hillsboro, Oregon; San Jose and Sunnyvale, California; Shanghai, China; Alabang, Philippines; and Hyderabad, India.

Fiscal Reporting Period

We report based on a 52 or 53-week fiscal year ending on the Saturday closest to December 31. Our fiscal 2016 and 2015 were 52-week years that ended December 31, 2016 and January 2, 2016, respectively. Our fiscal 2014 was a 53-week year, with a 14-week fourth quarter, that ended January 3, 2015. Our fiscal 2017 will be a 52-week year and will end on December 30, 2017. All references to quarterly or yearly financial results are references to the results for the relevant 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 year ended January 2, 2016 include the results of Silicon Image, Inc. ("Silicon Image") for the approximately 10-month period from March 11, 2015 through January 2, 2016. Results presented for periods prior to fiscal 2015 are those historically reported for Lattice only. Our results for the year ended December 31, 2016 fully include the results of Silicon Image. 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 amounting to approximately $0.3 million that was reported separately for the year ended January 2, 2016 is now included in Other income (expense), net.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts and classification of assets, such as marketable securities, accounts receivable, inventory, goodwill (including the assessment of reporting unit), intangible assets, current and deferred income taxes, accrued liabilities (including restructuring charges and bonus arrangements), deferred income and allowances on sales to sell-through distributors, disclosure of contingent assets and liabilities at the date of the financial statements, 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) Income. 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 were also invested in auction rate securities until June 2014. We value these instruments at their fair value and monitor our 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.

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. As a result, the determination of fair value for Level 3 instruments requires significant management judgment and subjectivity. During fiscal 2014 we sold all of our Level 3 instruments, which had been entirely made up of auction rate securities consisting of student loan asset-backed notes. These were classified as Long-term marketable securities on our Consolidated Balance Sheets, and management derived the fair value of the auction rate securities from a combination of market and income approaches, including third party valuation results, investment broker-provided market information, and available information on the credit quality of the underlying collateral.

Foreign Exchange and Translation of Foreign Currencies

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

Derivative Financial Instruments

We mitigate foreign currency exchange rate risk by entering into foreign currency forward exchange contracts. At December 31, 2016 and January 2, 2016, we had open contracts for Japanese yen of $2.3 million and $3.3 million, respectively. The two contract outstanding at December 31, 2016 will settle in June 2017. Of the six contracts outstanding at January 2, 2016, two settled in January 2016 and the other four contracts settled in June 2016. Although such hedges mitigate our foreign currency exchange rate exposure from an economic perspective they were not designated as "effective" hedges for accounting purposes and are adjusted to fair value through Other (expense) income, net, with a gain of approximately $0.2 million and a loss of less than $0.1 million for the years ended December 31, 2016 and January 2, 2016, respectively.

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. For fiscal years 2016, 2015, and 2014, our top five end customers constituted approximately 27%, 32%, and 45%, respectively, of our revenue. Our largest end customer in fiscal year 2016 accounted for 9.9% of total revenue. Our largest end customer in fiscal year 2015 accounted for 9.3% of total revenue, and our two largest end customers in fiscal year 2014 accounted for 19.1% and 12.3%, respectively, of total revenue.

Sales through distributors have historically accounted for a significant portion of our total revenue. For fiscal year 2016, revenue attributable to resale of products by sell-through distributors as a percentage of our total revenue was 61%. For both of the fiscal years 2015 and 2014, revenue attributable to resale of products by sell-through distributors as a percentage of our total revenue was 45%. Our two largest distributor groups also account for a substantial portion of our trade receivables. At December 31, 2016 and January 2, 2016, one distributor group accounted for 38% and 29%, respectively, and the other accounted for 24% 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. We regularly review our allowance for doubtful accounts and the aging of our accounts receivable. Accounts receivable do not bear interest and are shown net of allowances for doubtful accounts of $9.3 million and $0.6 million at December 31, 2016 and January 2, 2016, respectively. During the third quarter of fiscal 2016, we received notice from one of our distributor groups that indicated a high likelihood of their bankruptcy. As a result, we reserved our accounts receivable, net of deferred revenue, from the distributor group resulting in an increase in allowance for doubtful accounts of $9.0 million and bad debt expense of $7.5 million for fiscal 2016.

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. We seek to mitigate the concentration of supply risk by establishing, maintaining and managing multiple foundry relationships; however, certain of our products are sourced from a single foundry.

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. For this reason, we do not recognize revenue until products are resold by sell-through distributors to an end customer. 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.

At the time of shipment to sell-through 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) income, and Accounts receivable, net are adjusted to reflect the final selling price.

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



(In thousands)	December 31, 2016			January 2, 2016
Inventory valued at published list price and held by sell-through distributors with right of return	$	86,218		$	47,086
Allowance for distributor advances	(37,090		)	(22,290		)
Deferred cost of sales related to inventory held by sell-through distributors	(16,871		)	(6,930		)
Total Deferred income and allowances on sales to sell-through distributors	$	32,257		$	17,866

A significant portion of our revenue in fiscal 2016 was from sell-through distributors. For fiscal year 2016, resale of products by sell-through distributors as a percentage of our total revenue was 61%. For fiscal years 2015 and 2014, resale of products by sell-through distributors as a percentage of our total revenue was 45% in each year.

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

Licensing and Services Revenue

Our licensing and services revenue is comprised of revenue from our intellectual property ("IP") core licensing activity, patent monetization activities, and royalty and adopter fee revenue from our standards activities. These activities are complementary to our product sales and help us monetize our IP 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 and/or royalties 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 to us by customers.

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 reported 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 associated with final acceptance by the customer or for short-term contracts.

HDMI royalty revenue is determined by a contractual allocation formula agreed to by the Founders of the HDMI consortium. Evidence of an arrangement, as it relates to HDMI royalty revenue, is deemed complete when all of the Founders agree on the royalty sharing formula. From time to time through December 31, 2016, as an agent of the HDMI Consortium, we performed audits on our royalty reporting customers to ensure compliance. As a result of those compliance efforts, we entered into settlement agreements for the payment of unreported royalties. The contractual terms of those agreements provided for upfront payment of unreported royalties or payment over a period of time, generally not to exceed one year. Revenue from those arrangements was recognized when the agreement was executed by both parties, as long as price was fixed and determinable and collection was reasonably assured.

Inventories

Inventories are recorded at the lower of actual cost determined on a first-in-first-out basis or market. We establish provisions for inventory if it is obsolete or we hold quantities which are in excess of projected customer demand. The creation of such provisions results in a write-down of inventory to net realizable value and a charge to Cost of product revenue.

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 and building space. Leasehold improvements are amortized over the shorter of the non-cancelable lease term or the estimated useful life of the assets. 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.

Equity Investments in Privately Held Companies

Equity investments in privately-held companies are reviewed on a quarterly basis to determine if their values have been impaired and adjustments are recorded as necessary. We assess the potential impairment of these investments by considering available evidence such as the investee’s historical and projected operating results, progress towards meeting business milestones, ability to meet expense forecasts, and the prospects for industry or market in which the investee operates. Upon disposition of these investments, the specific identification method is used to determine the cost basis in computing realized gains or losses. Declines in value that are judged to be other-than-temporary are reported in other income (expense), net in the accompanying Consolidated Statements of Operations.

The accounting method for equity investments in privately-held companies is assessed under ASC 323-10, Equity Method and Joint Ventures. Investments for which we have the ability to exert significant influence on the investee are accounted for under the equity method with our proportionate share of the investee’s operating results recognized through the Consolidated Statements of Operations, along with a commensurate increase or decrease in the carrying value of the investment.

Impairment of Long-Lived Assets

Long-lived assets, including amortizable intangible assets, are carried on our financial statements based on their cost less accumulated depreciation or amortization. We monitor the carrying value of our long-lived assets for potential impairment and test the recoverability of such assets annually during the fourth quarter and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. These events or changes in circumstances, including management decisions pertaining to such assets, are referred to as impairment indicators. If an impairment indicator occurs, we perform a test of recoverability by comparing the carrying value of the asset group to its undiscounted expected future cash flows. If the carrying values are in excess of undiscounted expected future cash flows, we measure any impairment by comparing the fair value of the asset group to its carrying value. Fair value is generally determined by considering (i) internally developed discounted projected cash flow analysis of the asset group; (ii) actual third-party valuations; and/or (iii) information available regarding the current market for similar asset groups. If the fair value of the asset group is determined to be less than the carrying amount of the asset group, an impairment in the amount of the difference is recorded in the period that the impairment indicator occurs and is included in our Consolidated Statements of Operations. Estimating future cash flows requires significant judgment and projections may vary from the cash flows eventually realized, which could impact our ability to accurately assess whether an asset has been impaired. The results of our assessments are detailed in Note 9.

Valuation of Goodwill

Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. We review goodwill for impairment annually during the fourth quarter and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. When evaluating whether goodwill is impaired, we make a qualitative assessment to determine if it is more likely than not that the reporting unit's fair value is less than the carrying amount. If the qualitative assessment determines that it is more likely than not that the fair value is less than the carrying amount, the fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and we must measure the impairment loss. The impairment loss, if any, is recognized for any excess of the carrying amount of the reporting unit's goodwill over the implied fair value of the goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. If the fair value of the reporting unit exceeds its carrying value, no further impairment analysis is needed. For purposes of testing goodwill for impairment, we currently operate as a single reporting unit: the core Lattice ("Core") business, which includes intellectual property and semiconductor devices. In fiscal 2015 only, we separately tested goodwill for impairment in Qterics, a discrete software-as-a-service business unit in the Lattice legal entity structure. We sold Qterics to an unrelated third party in April 2016. Although these two operating units constituted two reportable segments in fiscal 2015, we combined Qterics with our Core business and reported them together as one reportable segment due to the immaterial nature of the Qterics unit. The results of our assessments are detailed in Note 9.

Leases

We lease office space and classify our leases as either operating or capital lease arrangements in accordance with the criteria of ASC 840, “Leases.” Certain of our office space operating leases contain provisions under which monthly rent escalates over time and certain leases may also contain provisions for reimbursement of a specified amount of leasehold improvements. When lease agreements contain escalating rent clauses, we recognize expense on a straight-line basis over the term of the lease. When lease agreements provide allowances for leasehold improvements, we capitalize the leasehold improvement assets and amortize them on a straight-line basis over the lesser of the lease term or the estimated useful life of the asset, and reduce rent expense on a straight-line basis over the term of the lease by the amount of the asset capitalized.

Restructuring Charges

Expenses associated with exit or disposal activities are recognized when incurred under ASC 420, “Exit or Disposal Cost Obligations,” for everything but severance. Because the Company has a history of paying severance benefits, the cost of severance benefits associated with a restructuring plan is recorded when such costs are probable and the amount can be reasonably estimated in accordance with ASC 712, “Compensation - Nonretirement Postemployment Benefits.” When leased facilities are vacated, an amount equal to the total future lease obligations from the date of vacating the premises through the expiration of the lease, net of any future sublease income, is recorded as a part of restructuring charges.

Research and Development

Research and development expenses include costs for compensation and benefits, development masks, engineering wafers, depreciation, licenses, and outside engineering services. These expenditures are for the design of new products, intellectual property cores, processes, packaging, and software to support new products. Research and development costs are expensed as incurred.

Accounting for Income Taxes

Our provision for income tax is comprised of our current tax liability and changes in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements using enacted tax rates and laws that will be in effect when the difference is expected to reverse. Valuation allowances are provided to reduce deferred tax assets to an amount that in management’s judgment is more-likely-than-not to be recoverable against future taxable income. At December 31, 2016, U.S. income taxes were not provided on approximately $3.0 million of the undistributed earnings of our Chinese subsidiary as we intend to reinvest these earnings indefinitely. If these earnings were distributed to the U.S. in the form of dividends or otherwise, these earnings would be subject to Chinese withholding taxes and would be subject to additional U.S. income taxes but offset by net operating loss carryforwards which have been fully reserved.

Our income tax calculations are based on application of the respective U.S. federal, state or foreign tax law. Our tax filings, however, are subject to audit by the relevant tax authorities. Accordingly, we recognize tax liabilities based upon our estimate of whether, and the extent to which, additional taxes will be due when such estimates are more-likely-than-not to be sustained. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. To the extent the final tax liabilities are different than the amounts originally accrued, the increases or decreases as well as any interest or penalties are recorded as income tax expense or benefit in the Consolidated Statements of Operations.

In assessing the ability to realize deferred tax assets, the Company evaluates both positive and negative evidence that may exist and considers whether it is more-likely-than-not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible.

Any adjustment to the net deferred tax asset valuation allowance is recorded in the Consolidated Statements of Operations for the period that the adjustment is determined to be required.

Stock-Based Compensation

We use the Black-Scholes option pricing model to estimate the fair value of substantially all share-based awards consistent with the provisions of ASC 718, “Compensation - Stock Compensation.” Option pricing models, including the Black-Scholes model, require the use of input assumptions, including expected volatility, expected term, expected dividend rate, and expected risk-free rate of return. The assumptions for expected volatility and expected term most significantly affect the grant date fair value.

We have also used a lattice-based option-pricing model to determine and fix the fair value of stock options with a market condition granted to certain executives. This valuation model incorporates a Monte-Carlo simulation, and considered the likelihood that we would achieve the market condition. The options 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. TSR is a measure of stock price appreciation plus dividends paid, if any, in the performance period.

New Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update (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. We intend to adopt ASU 2014-09 on December 31, 2017 which is the first day of our fiscal 2018. The new standard allows for two transition methods - (i) apply it retrospectively to each prior reporting period presented, or (ii) apply it prospectively with the cumulative effect of adoption recognized on December 31, 2017, the first day of our fiscal 2018. We have not yet concluded upon our selection of the transition method. We have commenced our implementation efforts, which have thus far focused on developing a project plan and performing a preliminary assessment of potential impacts of the new standard to our financial statements. Key elements of our project plan include the final determination of the impacts of the standard to revenues, contract acquisition costs, income taxes and various balance sheet accounts; the identification of additional system requirements, if any, to support our application of the new standard; and the design and implementation of relevant internal controls. We believe that we have sufficient time and resources to complete our implementation efforts no later than the fourth quarter of fiscal 2017.

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 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 current 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 2016-09, 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 do not expect the adoption of this accounting standard update to have a material impact on our consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The new guidance is intended to reduce diversity in practice in how cash receipts and cash payments are classified in the statement of cash flows. For public business entities, this guidance will be effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted. We are currently evaluating the impact of ASU 2016-15 on our consolidated financial statements and related disclosures.

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This update is intended to recognize the income tax consequences of intra-entity transfers of assets other than inventory when they occur by removing the exception to postpone recognition until the asset has been sold to an outside party. For public business entities, this guidance is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted, and it is required to be applied on a modified retrospective basis through a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. We are currently evaluating the impact of ASU 2016-16 on our consolidated financial statements and related disclosures.

In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business, which narrows the existing definition of a business and provides a framework for evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or a business. This update requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities (collectively, the set) is not a business. To be considered a business, the set would need to include an input and a substantive process that together significantly contribute to the ability to create outputs. The standard also narrows the definition of outputs. The definition of a business affects areas of accounting such as acquisitions, disposals and goodwill. Under the new guidance, fewer acquired sets are expected to be considered businesses. For public business entities, this guidance is effective for interim and annual periods beginning after December 15, 2017. We are currently evaluating the impact of ASU 2017-01 on our consolidated financial statements and related disclosures.

In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which simplifies the subsequent measurement of goodwill by eliminating step two from the goodwill impairment test. Under the new guidance, an entity will recognize an impairment charge for the amount by which the carrying value exceeds the fair value. This standard is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017 and requires a prospective transition method. We are currently evaluating the impact of ASU 2017-04 on our consolidated financial statements and related disclosures.

Net (Loss) Income per Share

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Net (Loss) Income per Share

Net (Loss) Income Per Share

We compute basic net (loss) income per share by dividing net (loss) income 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 reconciliation of basic and diluted net (loss) income per share is presented below:



	Year Ended
(in thousands, except per share data)	December 31, 2016			January 2, 2016			January 3, 2015
Net (loss) income	$	(54,099	)	$	(159,233	)	$	48,580

Shares used in basic net (loss) income per share	119,994			117,387			117,708
Dilutive effect of stock options, RSUs and ESPP shares	—			—			2,537
Shares used in diluted net (loss) income per share	119,994			117,387			120,245

Basic net (loss) income per share	$	(0.45	)	$	(1.36	)	$	0.41

Diluted net (loss) income per share	$	(0.45	)	$	(1.36	)	$	0.40

The computation of diluted net (loss) income per share for fiscal years 2016 and 2015 excludes the effects of stock options, RSUs, and ESPP shares, aggregating approximately 9.0 million shares and 9.2 million shares, respectively, which are antidilutive. The computation of diluted net (loss) income per share for fiscal year 2014 includes the effects of stock options, RSUs and ESPP shares aggregating approximately 2.5 million shares, as they are dilutive, and excludes the effects of stock options, RSUs and ESPP shares aggregating approximately 2.6 million shares, as they 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 and RSUs that are antidilutive at December 31, 2016 could become dilutive in the future.

Marketable Securities

12 Months Ended

Dec. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

We classify our marketable securities as short-term based on their nature and availability for use in current operations. 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)	December 31, 2016		January 2, 2016
Short-term marketable securities:
Maturing within one year	$	10,308	$	12,144
Maturing between one and two years	—		5,824
Total marketable securities	$	10,308	$	17,968

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



(In thousands)	December 31, 2016		January 2, 2016
Short-term marketable securities:
Corporate and government bonds and notes	$	10,230	$	17,888
Certificates of deposit	78		80
Total marketable securities	$	10,308	$	17,968

- Definition

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

+ References + Details

Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments



	Fair value measurements as of December 31, 2016								Fair value measurements as of January 2, 2016
(In thousands)	Total		Level 1		Level 2		Level 3		Total			Level 1		Level 2			Level 3
Short-term marketable securities	$	10,308	$	10,230	$	78	$	—	$	17,968		$	17,888	$	80		$	—
Foreign currency forward exchange contracts, net	184		—		184		—		(12		)	—		(12		)	—
Total fair value of financial instruments	$	10,492	$	10,230	$	262	$	—	$	17,956		$	17,888	$	68		$	—

We invest in various financial instruments that may include corporate and government bonds and notes, commercial paper, and certificates of deposit. In the past we have also invested in auction rate securities. In addition, we enter into foreign currency forward exchange contracts to mitigate our foreign currency exchange rate exposure. We carry these instruments at their fair value in accordance with ASC 820. The framework under the provisions of ASC 820 establishes three levels of inputs that may be used to measure fair value. Each level of input has different levels of subjectivity and difficulty involved in determining fair value. There were no transfers between any of the levels during fiscal 2016, 2015, and 2014.

During the fiscal years ended December 31, 2016 and January 2, 2016, we had no Level 3 instruments. In the second quarter of the fiscal year ended January 3, 2015, we sold our remaining auction rate securities with a par value of $5.7 million with an estimated fair value of $5.2 million, for $5.5 million. As a result, we reported a gain of $1.7 million in the Consolidated Statements of Operations and relieved $1.1 million of previously unrealized gain, net of taxes, from accumulated other comprehensive loss in fiscal 2014.

In accordance with ASC 320, “Investments-Debt and Equity Securities,” we recorded an unrealized loss of approximately $0.2 million during the fiscal year ended December 31, 2016, and an unrealized loss of less than $0.1 million during the fiscal year ended January 2, 2016 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

12 Months Ended

Dec. 31, 2016

Inventory Disclosure [Abstract]

Inventories



(In thousands)	December 31, 2016		January 2, 2016
Work in progress	$	50,688	$	57,865
Finished goods	28,480		18,031
Total inventories	$	79,168	$	75,896

Property and Equipment

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Property and Equipment



(In thousands)	December 31, 2016			January 2, 2016
Buildings	$	3,554		$	3,554
Computer and test equipment	162,388			148,995
Office furniture and equipment	3,460			3,880
Leasehold and building improvements	14,865			14,366
	184,267			170,795
Accumulated depreciation and amortization	(134,786		)	(118,943		)
	$	49,481		$	51,852

Depreciation and amortization expense for property and equipment was $18.4 million, $18.1 million including $1.5 million of restructuring expense, and $11.4 million for fiscal years 2016, 2015, and 2014, respectively.

As of December 31, 2016, our owned building space in Shanghai, China was classified as held for sale as a result of planned facilities consolidation under our March 2015 Restructuring Plan. We have halted depreciation as of December 31, 2016 and entered into a contract to sell the building in January 2017. We expect the sale to be completed in the first quarter of fiscal 2017. The office space had a carrying value of $2.2 million as of December 31, 2016 and is included in property and equipment in the Consolidated Balance Sheets.

In November 2014, we sold land and buildings, comprising the former location of our corporate headquarters and executive office in Hillsboro, Oregon, for net proceeds of approximately $14.6 million. This property had a historical cost of $30.9 million and accumulated depreciation of $17.9 million, resulting in a net gain on sale of $1.6 million. We leased back a portion of the facilities for a lease term of eight years, resulting in deferral of the gain, which is being amortized over the life of the lease.

Business Combinations and Goodwill

12 Months Ended

Dec. 31, 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 in this acquisition.

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. 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 year ended December 31, 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 consolidated financial statements effective March 11, 2015. Silicon Image's revenue and net loss for the approximately 10-month period from March 11, 2015 through January 2, 2016 were approximately $135.6 million and $77.0 million, respectively. Silicon Image's acquisition related charges in that period, which were expensed as incurred, were approximately $8.2 million.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and intangible assets. The goodwill recognized in the acquisition of Silicon Image was derived from expected benefits from cost synergies and knowledgeable and experienced workforce who joined the Company after the acquisition. Goodwill is not amortized, but is instead 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 were recorded in fiscal 2016 as no indicators of impairment were present. A $13 million charge to fully impair the Qterics goodwill was recorded for fiscal 2015 (Note 9). No impairment charges related to goodwill were recorded in fiscal 2014 as no indicators of impairment were present. The goodwill balance of $270 million at December 31, 2016 is comprised of $45 million from prior acquisitions combined with the $238 million from the acquisition of Silicon Image, reduced by the fiscal 2015 goodwill impairment charge of $13 million.

Unaudited Pro Forma Financial Information

The unaudited pro forma financial information in the table below summarizes the combined results of operations for the Company and Silicon Image as if the merger occurred on December 29, 2013, the first day of our 2014 fiscal year. The pro forma financial information for the periods presented includes adjustments to amortization and depreciation for intangible assets and property and equipment acquired; adjustments to share-based compensation expense; and interest expense for the additional indebtedness incurred as part of the acquisition. The total of nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings for the year ended January 3, 2015 and excluded from the reported pro forma revenue and earnings for the year ended January 2, 2016 was $30.6 million related to acquisition-related charges. The pro forma financial information as presented below is for informational purposes only, is based on certain assumptions and estimates, and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of the first period presented.

The unaudited pro forma financial information for the fiscal year ended January 2, 2016 combined the historical results of the Company for the fiscal year ended January 2, 2016, the historical results of Silicon Image for the fiscal year ended January 2, 2016, and the effects of the pro forma adjustments described above.

The unaudited pro forma financial information for the fiscal year ended January 3, 2015 combined the historical results of the Company for the fiscal year ended January 3, 2015, the historical results of Silicon Image for the fiscal year ended January 3, 2015, and the effects of the pro forma adjustments described above.



	Year Ended
(Dollars in thousands, except per share data)	January 2, 2016			January 3, 2015
Total revenues	$	450,867		$	624,179
Net (loss) income attributable to stockholders	$	(147,436	)	$	10,376
Basic net (loss) income per share	$	(1.26	)	$	0.09
Diluted net (loss) income per share	$	(1.26	)	$	0.09

The pro forma adjustments did not have any impact on the pro forma combined provision for income taxes for fiscal 2015 and 2014 due to net loss positions and valuation allowances on deferred income tax assets in those periods.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1500-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1524-128463

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4922-128472

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4934-128472

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
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-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4926-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1383-128463

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479

+ Details

Intangible Assets

12 Months Ended

Dec. 31, 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.

We monitor the carrying value of our intangible assets for potential impairment and test the recoverability of such assets annually during the fourth quarter and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. The results of our assessments are summarized below and more fully detailed in Note 9.

During the third quarter of fiscal 2016, we recorded a $7.9 million non-cash impairment charge to the intangible assets associated with future HDMI adopter fees. During the fourth quarter of fiscal 2015, we recorded a $9.0 million impairment charge to the intangible assets of the then Qterics operating segment comprising developed technology of $3.9 million, and customer relationships of $5.1 million. With the sale of Qterics in April 2016, its balances for intangible assets, accumulated amortization, and impairment have been removed from the balance for intangible assets, net of amortization in the Consolidated Balance Sheet as of December 31, 2016. No impairment charges related to intangible assets were recorded during fiscal 2014 as no indicators of impairment were present.

The following tables summarize the details of our total purchased intangible assets as of December 31, 2016 and January 2, 2016:



	December 31, 2016
(In thousands)	Weighted Average Amortization Period (in years)	Gross		Impairment			Accumulated Amortization			Intangible assets, net of amortization
Developed technology	4.7	$	141,359	$	—		$	(55,493	)	$	85,866
Customer relationships	6.1	30,800		(7,866		)	(13,694		)	9,240
Licensed technology	3.3	2,127		—			(1,201		)	926
Patents	5	769		—			(279		)	490
Total identified finite-lived intangible assets		175,055		(7,866		)	(70,667		)	96,522
In-process research and development	indefinite	22,341		—			—			22,341
Total identified intangible assets		$	197,396	$	(7,866	)	$	(70,667	)	$	118,863



	January 2, 2016
(In thousands)	Weighted Average Amortization Period (in years)	Gross		Impairment			Accumulated Amortization			Intangible assets, net of amortization
Developed technology	4.7	$	135,700	$	(3,856	)	$	(28,384	)	$	103,460
Customer relationships	5.5	37,258		(5,139		)	(10,156		)	21,963
Licensed technology	2.5	2,127		—			(610		)	1,517
Patents	5	769		—			(126		)	643
Total identified finite-lived intangible assets		175,854		(8,995		)	(39,276		)	127,583
In-process research and development	indefinite	35,000		—			—			35,000
Total identified intangible assets		$	210,854	$	(8,995	)	$	(39,276	)	$	162,583

We recorded amortization expense associated with these intangible assets on the Consolidated Statements of Operations as follows:



	Year Ended
(In thousands)	December 31, 2016		January 2, 2016		January 3, 2015
Research and development	$	745	$	731	$	—
Amortization of acquired intangible assets	33,575		28,849		2,948
	$	34,320	$	29,580	$	2,948

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



(In thousands)	Amount
2017	$	33,759
2018	27,877
2019	25,093
2020	7,145
2021	2,547
Thereafter	101
Total	$	96,522

Impairment of Goodwill and Intangible Assets	12 Months Ended
Impairment of Goodwill and Intangible Assets	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Impairment of Goodwill and Intangible Assets	Impairment of Goodwill and Intangible Assets In connection with our acquisitions of Silicon Image in March 2015 and SiliconBlue in December 2011 we recorded goodwill and identifiable intangible assets related to developed technology, customer relationships, licensed technology, patents, and in-process research. We monitor the carrying value of our goodwill and intangible assets for potential impairment and test the recoverability of such assets annually during the fourth quarter and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. In September 2016, the Founders of the HDMI consortium, of which we are a member, amended the existing Founders Agreement resulting in changes to our role as agent for the HDMI consortium and to the model for sharing adopter fee revenues. Lattice historically served the role of the HDMI licensing agent via a wholly owned subsidiary, HDMI Licensing LLC. Under the terms of the new agreement, our role as the agent was terminated effective January 1, 2017 and a new independent entity was appointed to act as the new HDMI licensing agent with responsibility for licensing and the distribution of royalties among Founders. As a result of the amended model for sharing revenue, we will be entitled to a reduced share of adopter fees paid by parties adopting the HDMI standard. We determined that this modification constituted an impairment indicator related to the intangible assets associated with future HDMI adopter fees. Our assessment of the new value of these intangible assets concluded that they had been impaired as of the end of the third quarter of fiscal 2016, and we recorded a $7.9 million non-cash impairment charge in the Consolidated Statements of Operations. We do not anticipate any future cash expenditures related to this impairment. No impairment charges related to goodwill were recorded in fiscal 2016 as no indicators of impairment were present. For fiscal 2015, the impairment of goodwill and intangible assets was related to Qterics, Inc., which was acquired in the March 2015 acquisition of Silicon Image. During the fourth quarter of fiscal 2015, we determined that we experienced an impairment indicator related to the long-lived assets of the Qterics operating segment. For purposes of testing for impairment in fiscal 2015, the Company operated as two reporting units: the continuing core Lattice ("Core") business, which includes intellectual property and semiconductor devices, and Qterics, which was a discrete software-as-a-service business unit in the Lattice legal entity structure until it was sold in April 2016. Although these two operating segments constituted two reportable segments in fiscal 2015, we combined Qterics with our Core business and reported them together as one reportable segment due to the immaterial nature of the Qterics segment. Following this assessment, we concluded that goodwill and intangible assets had been impaired in the Qterics segment as of January 2, 2016. As a result we recorded an impairment charge amounting to $21.7 million, or approximately 92% of the previous value of goodwill and intangible assets, in the Consolidated Statements of Operations for the year ended January 2, 2016, comprising $12.7 million pertaining to goodwill, $3.9 million pertaining to developed technology, and $5.1 million pertaining to customer relationships. The valuation was based on the market approach and was our best estimate of fair value as of the end of fiscal 2015. No impairment charges were recorded for the Core segment in fiscal 2015, and we had no impairment charges in fiscal 2014

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Equity Method Investment

12 Months Ended

Dec. 31, 2016

Equity Method Investments and Joint Ventures [Abstract]

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 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 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 since recognized our proportionate share of the investee’s operating results in the Consolidated Statements of Operations.

In the third quarter of fiscal 2016, we made an additional investment of $1.0 million via a convertible debt instrument, bringing our gross investment in the investee to $6.0 million. We have determined that this additional investment is an in-substance common stock and has been included in our equity method accounting but that, in its unconverted state, it does not change our ownership interest.

Applying the equity method, the proportionate share of the investee's net loss that we have recognized in the Consolidated Statements of Operations for fiscal years 2016, 2015, and 2014 was as follows:



	Year Ended
(In thousands)	December 31, 2016			January 2, 2016			January 3, 2015
Equity in net loss of an unconsolidated affiliate, net of tax	$	(1,459	)	$	(492	)	$	—

Through December 31, 2016, we have reduced the value of our investment by approximately $2.0 million, representing our cumulative proportionate share of the privately-held company’s net loss accumulated to that date. The net balance of our investment included in other long-term assets in the Consolidated Balance Sheets is detailed in the following table:



(In thousands)	Total
Balance at January 3, 2015	$	—
Investment made during fiscal year	5,000
Equity in net loss of an unconsolidated affiliate, net of tax	(492		)
Balance at January 2, 2016	4,508
Investment made during fiscal year	1,000
Equity in net loss of an unconsolidated affiliate, net of tax	(1,459		)
Balance at December 31, 2016	$	4,049

Accounts Payable and Accrued Expenses

12 Months Ended

Dec. 31, 2016

Payables and Accruals [Abstract]

Accounts Payable and Accrued Expenses

Included in accounts payable and accrued liabilities in the Consolidated Balance Sheets are the following balances:



(In thousands)	December 31, 2016		January 2, 2016
Trade accounts payable	$	37,800	$	18,616
Payable to members of the HDMI and MHL consortia*	9,698		16,643
Other accrued expenses	33,435		39,039
Total accounts payable and accrued expenses	$	80,933	$	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. Our role as the agent of the HDMI consortium terminated on January 1, 2017.

Redeemable Noncontrolling Interests	12 Months Ended
Redeemable Noncontrolling Interests	Dec. 31, 2016
Noncontrolling Interest [Abstract]
Redeemable Noncontrolling Interests	Redeemable Noncontrolling Interest With the acquisition of Silicon Image on March 10, 2015, we also assumed a redeemable noncontrolling interest which comprised a 7% investment in Qterics amounting to $7.0 million invested by the noncontrolling interest holder initially entered into on December 4, 2014. The investment was redeemable at fair market value at the third-party holder's option on the third, fourth, or fifth year anniversaries. If the fair market value at the redemption date, as negotiated and agreed to by the parties, did not exceed $21 million, the redemption price would be 130% of the fair market value. As of the acquisition date, the fair value of the noncontrolling interest was determined to be $7.2 million (Note 7), recorded as temporary equity and reported as Redeemable noncontrolling interest in the Consolidated Balance Sheets. The Company elected to accrete the carrying value to the estimated redemption value over the three-year redemption period and reported the accretion charge as a reduction to additional-paid-in-capital. During fiscal 2015, we recorded cumulative accretion charges amounting to $0.4 million bringing the value of the redeemable noncontrolling interest to $7.6 million. During the fourth quarter of fiscal 2015, we entered into an agreement with the holder pursuant to which the entire interest was redeemed for a cash payment of approximately $0.9 million. The difference between the carrying value and the redemption amount totaling approximately $6.7 million was recorded as additional-paid-in-capital during the year ended January 2, 2016.

Lease Obligations

12 Months Ended

Dec. 31, 2016

Leases [Abstract]

Lease Obligations

Certain of our facilities are leased under operating leases, which expire at various times through 2026. Rental expense under operating leases was $9.5 million, $7.4 million and $4.5 million for fiscal years 2016, 2015 and 2014, respectively. Future minimum lease commitments at December 31, 2016 were as follows:



Fiscal year	Amount
(In thousands)	Amount
2017	$	7,220
2018	5,890
2019	4,559
2020	4,528
2021	4,583
Thereafter	18,965
	$	45,745

Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

The domestic and foreign components of (loss) income before income taxes were as follows:



	Year Ended
(In thousands)	December 31, 2016			January 2, 2016			January 3, 2015
Domestic	$	(32,503	)	$	(92,737	)	$	6,292
Foreign	(10,220		)	(33,464		)	36,649
(Loss) income before taxes	$	(42,723	)	$	(126,201	)	$	42,941

The components of the income tax expense (benefit) are as follows:



	Year Ended
(In thousands)	December 31, 2016		January 2, 2016			January 3, 2015
Current:
Federal	$	1,896	$	968		$	329
State	13		80			5
Foreign	7,918		10,634			1,944
	9,827		11,682			2,278
Deferred:
Federal	—		18,713			(7,416		)
State	—		2,318			(513		)
Foreign	90		(173		)	12
	90		20,858			(7,917		)
Income tax expense (benefit)	$	9,917	$	32,540		$	(5,639	)

Income tax expense (benefit) differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pretax income as a result of the following differences:



	Year Ended
	December 31, 2016	January 2, 2016	January 3, 2015
	%	%	%
Statutory federal rate	(35)	(35)	35
Adjustments for tax effects of:
State taxes, net	7	(6)	1
Research and development credits	(2)	(3)	(9)
Stock compensation	3	1	1
Foreign rate differential	14	12	(25)
Foreign dividends	—	5	1
Foreign withholding taxes	9	3	—
Capital loss expiration	—	—	7
Other permanent	3	4	—
Goodwill impairment	—	4	—
Valuation allowance	17	46	(23)
Change in uncertain tax benefit accrual	5	(8)	1
Tax rate change	—	3	(4)
Other	2	—	2
Effective income tax rate	23	26	(13)

ASC 740, “Income Taxes”, provides for the recognition of deferred tax assets if realization of these assets is more-likely-than-not. We evaluate both positive and negative evidence to determine if some or all of our deferred tax assets should be recognized on a quarterly basis.

During the fourth quarter of 2014, we concluded that it was more-likely-than-not that we would be able to realize the benefit of a portion of our remaining deferred tax assets, resulting in a tax benefit of $11.5 million and a federal and state net deferred tax asset of $21.3 million. We based this conclusion on improved operating results over the past two years and our expectations about generating taxable income in the foreseeable future. We exercised significant judgment and considered estimates about our ability to generate revenue, gross profits, operating income and jurisdictional taxable income in future periods under our tax structure in reaching this decision.

In 2015, we completed the acquisition of Silicon Image, Inc. At the time of the acquisition, we evaluated the combined entity's net deferred income taxes, which included an assessment of the cumulative income or loss over the prior three-year period, to determine if a valuation allowance is required. After considering the significant loss for 2015, we concluded that it was more-likely-than-not that we would not 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 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.

In 2016, we continued to evaluate the valuation allowance position in the United States and concluded we should maintain a valuation allowance against the net federal and state deferred tax assets.

We will continue to evaluate both positive and negative evidence in future periods to determine if more deferred tax assets should be recognized. We don't have a valuation allowance in any foreign jurisdictions as it has been concluded it is more likely than not that we will realize the net deferred tax assets in future periods. The net increase in the total valuation allowance affecting the effective tax rate for the year ended December 31, 2016 was approximately $7.5 million.

The components of our net deferred tax assets are as follows:



(In thousands)	December 31, 2016			January 2, 2016
Deferred tax assets:
Accrued expenses and reserves	$	5,143		$	5,690
Inventory	290			303
Deferred Revenue	426			3,177
Stock-based and deferred compensation	7,269			7,674
Intangible assets	20,063			16,959
Fixed assets	678			—
Net operating loss carry forwards	137,521			131,829
Tax credit carry forwards	89,174			87,909
Capital loss carry forwards	962			1,262
Other	2,975			2,458
	264,501			257,261
Less: valuation allowance	(260,687		)	(252,578		)
Net deferred tax assets	3,814			4,683
Deferred tax liabilities:
Fixed Assets	—			791
Other	3,746			3,734
Total deferred tax liabilities	3,746			4,525
Net deferred tax assets	$	68		$	158

At December 31, 2016, we had federal net operating loss carryforwards (pretax) of approximately $367.0 million that expire at various dates between 2025 and 2036. We had state net operating loss carryforwards (pretax) of approximately $193.3 million that expire at various dates from 2017 through 2036. We also had federal and state credit carryforwards of $49.2 million and $56.7 million of which $55.5 million do not expire. The remaining credits expire at various dates from 2017 through 2036.

Future utilization of federal and state net operating losses and tax credit carry forwards may be limited if cumulative changes to ownership exceed 50% within any three-year period, which has not occurred through fiscal 2016. However, if there is a significant change in ownership, the future utilization may be limited and the deferred tax asset would be reduced to the amount available.

At December 31, 2016, U.S. income taxes were not provided for approximately $3.0 million of the undistributed earnings of our Chinese subsidiary. We intend to reinvest these earnings indefinitely. If these earnings were distributed to the U.S. in the form of dividends or otherwise, we would be subject to additional U.S. income taxes and foreign withholding taxes.

At December 31, 2016, our unrecognized tax benefits associated with uncertain tax positions were $47.6 million, of which $44.5 million, if recognized, would affect the effective tax rate, subject to valuation allowance. As of December 31, 2016, interest and penalties associated with unrecognized tax benefits were $7.5 million.

The following table summarizes the changes to unrecognized tax benefits for fiscal years 2016, 2015 and 2014:



(In thousands)	Amount
Balance at December 28, 2013	$	22,643
Additions based on tax positions related to the current year	770
Additions based on tax positions of prior years	—
Reduction for tax positions of prior years	(4,673		)
Settlements	—
Reduction as a result of lapse of applicable statute of limitations	(67		)
Balance at January 3, 2015	18,673
Additions based on tax positions related to the current year	4,381
Additions based on tax positions of prior years	—
Additions due to acquisition	41,083
Reduction for tax positions of prior years	(14,958		)
Settlements	—
Reduction as a result of lapse of applicable statute of limitations	(972		)
Balance at January 2, 2016	48,207
Additions based on tax positions related to the current year	2,573
Additions based on tax positions of prior years	530
Additions due to acquisition	—
Reductions for tax positions of prior years	(1,824		)
Settlements	—
Reduction as a result of lapse of applicable statute of limitations	(1,863		)
Balance at December 31, 2016	$	47,623

At December 31, 2016, it is reasonably possible that $2.2 million of unrecognized tax benefits and $0.1 million of associated interest and penalties could significantly change during the next twelve months. Our liability for uncertain tax positions (including penalties and interest) was $29.6 million and $26.9 million at December 31, 2016 and January 2, 2016, respectively, and is recorded as a component of other long-term liabilities on our Consolidated Balance Sheets. The remainder of our uncertain tax position exposure is netted against deferred tax assets.

Our income tax return for India is currently under examination for the tax year ended March 31, 2015. We are not under examination in any other jurisdiction.

We are subject to federal and state income tax as well as income tax in the various foreign jurisdictions in which we operate. Additionally, the years that remain subject to examination are 2013 for federal income taxes, 2012 for state income taxes, and 2010 for foreign income taxes, including years ending thereafter. However, to the extent allowed by law, the tax authorities may have the right to examine prior periods where net operating losses or tax credits were generated and carried forward, and make adjustments up to the amount of the net operating losses or credit carryforward amount.

The Tax Increase Prevention Tax Act of 2014 was enacted into law in the fourth quarter of 2014 and extended the research and development tax credit through December 31, 2014. On December 18, 2015, the Protecting Americans from Tax Hikes Act of 2015 was enacted. The Act included several business tax provisions including the permanent extension of the credit for qualified research and development. The tax benefit in each year resulting from these reinstatements of the federal research and development tax credit was offset by a valuation allowance and therefore did not impact our annual effective tax rate.

Restructuring

12 Months Ended

Dec. 31, 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, consolidation of facilities, and cancellation of software contracts and engineering tools. The March 2015 Plan is substantially complete, subject to certain remaining expected costs that we do not expect to be material and any changes in sublease assumptions should they occur, which will be expensed as incurred under U.S. GAAP rules through the first quarter of fiscal 2017. Under this plan, approximately $7.3 million and $13.3 million of expense was incurred during the years ended December 31, 2016 and January 2, 2016, respectively. Approximately $20.6 million of total expense has been incurred through December 31, 2016 under the March 2015 Plan. We expect the total cost of the March 2015 Plan to be approximately $21.0 million.

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. The September 2015 Reduction is substantially complete, subject to certain remaining expected costs, which we do not expect to be material, which will be expensed as incurred under U.S. GAAP rules through the first quarter of fiscal 2017. Under this reduction, approximately $2.0 million and $5.9 million of expense was incurred during the years ended December 31, 2016 and January 2, 2016, respectively. Approximately $7.9 million of total expense has been incurred through December 31, 2016 under the September 2015 Reduction. We expect the total cost of the September 2015 Reduction to be approximately $8.0 million.

In each of the fiscal years 2015 and 2014, less than $0.1 million of expense was incurred related to a prior restructuring plan. No charges were incurred in fiscal 2016 under this prior plan.

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 the Consolidated Balance Sheets.

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



(In thousands)	Severance & related *			Lease termination			Software Contracts & Engineering Tools**			Other			Total
Balance at December 28, 2013	$	17		$	368		$	—		$	147		$	532
Restructuring charges	—			1			—			9			10
Costs paid or otherwise settled	(8		)	(341		)	—			(18		)	(367		)
Adjustments to prior restructuring costs	(9		)	15			—			1			7
Balance at January 3, 2015	$	—		$	43		—			$	139		$	182
Restructuring charges	12,861			2,667			3,040			671			19,239
Costs paid or otherwise settled	(9,165		)	(1,705		)	(2,663		)	(810		)	(14,343		)
Balance at January 2, 2016	$	3,696		$	1,005		377			$	—		$	5,078
Restructuring charges	2,883			2,993			1,903			1,488			9,267
Costs paid or otherwise settled	(5,778		)	(2,962		)	(2,255		)	(1,476		)	(12,471		)
Balance at December 31, 2016	$	801		$	1,036		$	25		$	12		$	1,874

* Includes employee relocation costs

**Includes cancellation of contracts, asset impairments, and accelerated depreciation on certain enterprise resource planning and customer

relationship management systems

Long-Term Debt

12 Months Ended

Dec. 31, 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 6-month LIBOR as of December 31, 2016, subject to a 1.00% floor, plus a spread of 4.25%. The current effective interest rate on the Term Loan is 6.20%.

The Term Loan is payable through a combination of (i) quarterly installments of approximately $0.9 million, which began on July 4, 2015, (ii) 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 (iii) 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. In the second quarter of fiscal 2016, we made a required additional principal payment of $1.7 million due to the sale of Qterics.

Due to the combination of payments described above, our calculation of the current portion of long-term debt depends on activity that has occurred subsequent to December 31, 2016. Since our Earnings Release on February 15, 2017, we have entered into a patent monetization transaction that has triggered a $17.9 million increase to current portion of long-term debt presented in the Consolidated Balance Sheets. Over the next twelve months, we expect to be required to make principal payments of approximately $32.5 million, in addition to required quarterly payments.

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 December 31, 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)	December 31, 2016			January 2, 2016
Principal amount	$	342,221		$	347,375
Unamortized original issue discount and debt issuance costs	(7,599		)	(8,948		)
Less: Current portion of long-term debt	(33,767		)	(7,557		)
Long-term debt	$	300,855		$	330,870

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



			Year Ended
(in thousands)	December 31, 2016		January 2, 2016		January 3, 2015
Contractual interest	$	18,518	$	15,225	$	—
Amortization of debt issuance costs and discount	1,350		2,835		—
Total Interest expense related to the Term Loan	$	19,868	$	18,060	$	—

As of December 31, 2016, minimum expected future principal payments on the Term Loan were as follows:



Fiscal year	(in thousands)

2017	$	35,996
2018	20,813
2019	52,583
2020	89,113
2021	143,716
	$	342,221

Common Stock Repurchase Program	12 Months Ended
Common Stock Repurchase Program	Dec. 31, 2016
Equity [Abstract]
Common Stock Repurchase Program	Common Stock Repurchase Program On March 3, 2014, our Board of Directors approved a stock repurchase program pursuant to which up to $20.0 million of outstanding common stock may be repurchased from time to time. The duration of the repurchase program was twelve months. Under this program during fiscal 2014, approximately 1.9 million shares were repurchased for $13.1 million. The 2014 program completed during the first quarter of fiscal 2015, during which approximately 1.1 million shares were repurchased for approximately $7.0 million. All shares repurchased under the 2014 program were retired by the end of the fiscal year in which they were repurchased. All repurchases were open market transactions funded from available working capital.

Stockholders' Equity

12 Months Ended

Dec. 31, 2016

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

Stockholders' Equity

Employee and Director Stock Options, Restricted Stock and ESPP

We have four equity incentive plans (the "1996 Stock Incentive Plan," the "2001 Stock Plan," the "2013 Incentive Plan" and the "2011 Non-Employee Director Equity Incentive Plan"). Awards granted under the 1996 Stock Incentive Plan and the 2001 Stock Plan remain outstanding, but no shares are available for future awards under these plans. Shares remain available for grants to employees and non-employee directors only under the 2013 Incentive Plan and the 2011 Non-Employee Director Equity Incentive Plan. "Incentive stock options" under Section 422 of the U.S. Internal Revenue Code and restricted stock unit ("RSU") grants are part of our equity compensation practices for employees who receive equity grants. Options and RSUs generally vest quarterly over a four-year period beginning on the grant date. The contractual terms of options granted do not exceed ten years.

In May 2012, the Company's stockholders approved the 2012 Employee Stock Purchase Plan ("2012 ESPP"), which authorizes the issuance of 3.0 million shares of common stock to eligible employees to purchase shares of common stock through payroll deductions, which cannot exceed 10% of an employee's compensation. The purchase price of the shares is the lower of 85% of the fair market value of the stock at the beginning of each six-month offering period or 85% of the fair market value at the end of such period. Employees are required to hold purchased shares for six months. We have treated the 2012 ESPP as a compensatory plan and recorded related compensation expense of $0.6 million, $0.4 million and $0.3 million for the fiscal years 2016, 2015 and 2014, respectively.

At December 31, 2016, a total of 1.3 million shares of our common stock were available for future grants under the 2013 Incentive Plan and the 2011 Non-Employee Director Equity Incentive Plan. Shares subject to stock option grants that expire or are canceled, without delivery of such shares, generally become available for re-issuance under equity incentive plans. At December 31, 2016, a total of 1.9 million shares of our common stock were available for future purchases under the 2012 ESPP. On March 10, 2015, in conjunction with the acquisition of Silicon Image, we assumed certain outstanding stock option and RSU grants of the Silicon Image Equity Incentive Plans. We assumed all stock option grants that were unvested or vested and out-of-the-money and all outstanding unvested RSU grants. The exchange ratio for the conversion was 1.09816 for all grants. The conversion ratio was determined by the weighted average closing price of Lattice common stock for the ten days prior to the acquisition date divided by the offer price of $7.30. The converted outstanding option grants totaled 2,087,605 shares and converted RSU grants totaled 2,025,255 shares as of March 10, 2015. As of December 31, 2016, 787,130 options and 228,659 RSU shares arising from this conversion remained outstanding.

Stock-Based Compensation

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



	Year Ended
(In thousands)	December 31, 2016		January 2, 2016		January 3, 2015
Cost of products sold	$	888	$	1,416	$	819
Research and development	7,928		9,141		5,176
Selling, general, and administrative	7,397		6,793		6,807
Acquisition related charges	—		4,293		—
Total stock-based compensation	$	16,213	$	21,643	$	12,802

Of the $21.6 million total stock-based compensation for the twelve months ended January 2, 2016, $3.9 million was paid in cash during the period as a result of the acquisition of Silicon Image on March 10, 2015.

ASC 718, “Compensation-Stock Compensation (“ASC 718”),” requires that we recognize compensation expense for only the portion of employee and director options and ESPP rights that are expected to vest.

The fair values of each option award on the date of grant and of the shares expected to be issued under the employee stock purchase plan are estimated using the Black-Scholes valuation model and the assumptions noted in the following table. The expected term is based on historical vested option exercises and includes an estimate of the expected term for options that are fully vested and outstanding. The expected volatility of both stock options and ESPP shares is based on the daily historical volatility of our stock price, measured over the expected term of the option or the ESPP purchase period. The risk-free interest rate is based on the implied yield on a U.S. Treasury zero-coupon issue with a remaining term closest to the expected term of the option. The dividend yield reflects that we have not paid any cash dividends since inception and do not intend to pay any cash dividends in the foreseeable future.

The following table summarizes the assumptions used in the valuation of stock option and ESPP compensation for fiscal years 2016, 2015, and 2014:



	Year Ended
	December 31, 2016	January 2, 2016	January 3, 2015
Employee and Director Stock Options
Expected volatility	44.2% to 50.8%	43.6% to 47.3%	45.4% to 50.4%
Risk-free interest rate	.94% - 2.06%	1.4% to 1.7%	1.5% to 1.7%
Expected term (years)	4.06 - 4.78	4.08 to 4.75	4.1 to 4.7
Dividend yield	—%	—%	—%
Employee Stock Purchase Plan
Weighted average expected volatility	57.9%	33.6%	38.7%
Weighted average risk-free interest rate	0.43%	0.12%	0.08%
Expected term	6 months	6 months	6 months
Dividend yield	—%	—%	—%

At December 31, 2016, there was $11.0 million of total unrecognized compensation cost related to unvested employee and director stock options, which is expected to be recognized over a weighted average period of 2.6 years. Our current practice is to issue new shares to satisfy option exercises. Compensation expense for all stock-based compensation awards is recognized using the straight-line method.

The following table summarizes our stock option activity and related information for the year ended December 31, 2016:



(Shares and aggregate intrinsic value in thousands)	Shares		Weighted average exercise price		Weighted average remaining contractual term (years)	Aggregate Intrinsic Value
Balance, January 2, 2016	11,444		$	5.46
Granted	3,907		5.65
Exercised	(1,466	)	3.91
Forfeited or expired	(1,319	)	5.47
Balance, December 31, 2016	12,566		$	5.70
Vested and expected to vest at December 31, 2016	12,566		$	5.70	4.39	$	20,966
Exercisable, December 31, 2016	6,876		$	5.65	3.15	$	11,851

The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the Company's closing stock price on the last trading day of the fiscal year and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on that day. This amount changes based on the fair market value of the Company's stock. Total intrinsic value of options exercised for fiscal 2016, 2015 and 2014, and was $3.3 million, $2.5 million and $7.8 million, respectively. The total fair value of options and RSUs vested and expensed in fiscal 2016, 2015 and 2014 and was $15.6 million, $18.0 million and $12.8 million, respectively.

The resultant grant date weighted-average fair values for stock options granted, calculated using the Black-Scholes option pricing model with the noted assumptions for stock options, were $2.14, $2.35 and $2.93 for fiscal years 2016, 2015 and 2014, respectively. The weighted average fair values for the ESPP, calculated using the Black-Scholes option pricing model with the noted assumptions for the ESPP, were $1.82, $1.51 and $1.73 for fiscal years 2016, 2015 and 2014, respectively.

The following table summarizes our RSU activity for the year ended December 31, 2016:



(Shares in thousands)	Shares		Weighted average grant date fair value
Balance, January 2, 2016	4,757		$	5.95
Granted	1,376		5.64
Exercised	(1,742	)	5.97
Forfeited or expired	(1,144	)	5.68
Balance, December 31, 2016	3,247		$	5.90

At December 31, 2016 there was $16.2 million of total unrecognized compensation cost related to unvested RSUs. Our current practice is to issue new shares when RSUs vest. Compensation expense for RSUs is recognized using the straight-line method over the related vesting period.

We granted stock options and RSUs with a market condition to certain executives, amounting to approximately 321,900 stock options during fiscal 2016 and approximately 327,200 stock options and 70,000 RSUs during fiscal 2015. Of fiscal 2015 grants, 21,540 stock options and 70,000 RSUs were canceled in fiscal 2016 upon the departure of certain executives. The options and RSUs have a two year vesting and vest between 0% and 200% of the target amount, based on the Company's relative Total Shareholder Return (TSR) when compared to the TSR of a component of companies of the PHLX Semiconductor Sector Index over a two year period. TSR is a measure of stock price appreciation plus dividends paid, if any, in the performance 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. Of these grants with a market condition, approximately 596,600 stock options were outstanding as of December 31, 2016. We incurred stock compensation expense related to these market condition awards of approximately $0.8 million in fiscal 2016 and approximately $0.6 million in fiscal 2015.

During fiscal year 2014, we granted approximately 98,600 market-based RSUs in two equal tranches, each of which vest upon achievement of certain market-based conditions. The fair values of the market-based RSUs 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-based conditions. Both tranches vested and we incurred total stock compensation expense related to performance based awards of $0.7 million for the fiscal year ended January 3, 2015.

The following table summarizes the assumptions used in the valuation of stock options and RSUs with a market condition for fiscal years 2016, 2015 and 2014:



	Year Ended
	December 31, 2016	January 2, 2016	January 3, 2015
Executive stock options with a market condition
Expected volatility	46%	44% to 46%	n/a
Risk-free interest rate	1.1%	1.4%	n/a
Expected term (years)	4.5	4.5	n/a
Dividend yield	—%	—%	n/a
Executive RSUs with a market condition
Expected volatility	n/a	36.9%	53.5%
Risk-free interest rate	n/a	0.6%	2.2%
Expected term (years)	n/a	2.0	0.2
Dividend yield	n/a	—%	—%

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Dec. 31, 2016
Compensation Related Costs [Abstract]
Employee Benefit Plans	Employee Benefit Plans Qualified Investment Plan In 1990, we adopted a 401(k) plan, which provides participants with an opportunity to accumulate funds for retirement. The plan does not allow investments in the Company's common stock. The plan allows for the Company to make discretionary matching contributions in cash. We recorded matching contributions of $0.9 million in each of fiscal 2016 and 2015. No matching contributions were recorded in fiscal 2014. 2016 Cash Incentive Plan On December 21, 2015, upon the recommendation of the Compensation Committee, the Board of Directors of the Company approved the 2016 Cash Incentive Plan (the “2016 Cash Plan”). The chief executive officer, other executive officers, and other members of senior management, including vice presidents and director-level employees, together with all other employees of the Company not on the Company's sales incentive plan are eligible to participate in the 2016 Cash Plan. Under the 2016 Cash Plan, individual cash incentive payments for the eligible employees will be based both on Company financial performance, as measured by achievement of operating income (before incentive plan accruals) and revenue goals within specified ranges established by the Compensation Committee, and Company performance, as measured by the achievement of personal management objectives. The Compensation Committee determines the performance of the chief executive officer, the chief financial officer and other participants based on the achievement of the management objectives established by the Compensation Committee during the first fiscal quarter of 2016. There was $4.7 million of expense recorded under this plan in fiscal 2016. 2015 Cash Incentive Plan On December 4, 2014, upon the recommendation of the Compensation Committee, the Board of Directors of the Company approved the 2015 Cash Incentive Plan (the “2015 Cash Plan”). The chief executive officer, other executive officers, and other members of senior management, including vice presidents and director-level employees, together with all other employees of the Company not on the Company's sales incentive plan were eligible to participate in the 2015 Cash Plan. Under the 2015 Cash Plan, individual cash incentive payments for the eligible employees were based both on Company financial performance, as measured by achievement of operating income (before incentive plan accruals) and revenue goals within specified ranges established by the Compensation Committee, and Company performance, as measured by the achievement of personal management objectives. The Compensation Committee determined the performance of the chief executive officer, the chief financial officer and other participants based on the achievement of the management objectives established by the Compensation Committee during the first fiscal quarter of 2015. There was $1.0 million of expense recorded under this plan in fiscal 2015. 2014 Cash Incentive Plan On February 3, 2014, upon the recommendation of the Compensation Committee, the Board of Directors of the Company approved the 2014 Cash Incentive Plan (the “2014 Cash Plan”). The chief executive officer, other executive officers, and other members of senior management, including vice presidents and director-level employees, together with all other employees of the Company not on the Company's sales incentive plan were eligible to participate in the 2014 Cash Plan. Under the 2014 Cash Plan, individual cash incentive payments for the eligible employees were based both on Company financial performance, as measured by achievement of operating income (before incentive plan accruals) and revenue goals within specified ranges established by the Compensation Committee, and Company performance, as measured by the achievement of personal management objectives. The Compensation Committee determined the performance of the chief executive officer, the chief financial officer and other participants based on the achievement of the management objectives established by the Compensation Committee during the first fiscal quarter of 2014. There was $11.6 million of expense recorded under this plan in fiscal 2014.

Contingencies	12 Months Ended
Contingencies	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies Legal Matters In February 2016, we 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 on certain patents relating to the HDMI specification. Technicolor filed an answer to our complaint on April 11, 2016, which included various defenses to the alleged patent infringement. In November 2016, Technicolor amended its answer and asserted a counterclaim, alleging that the Company’s action constituted a breach of the HDMI Founders Agreement to provide licenses on fair, reasonable and non-discriminatory terms. Technicolor seeks declaratory relief and compensation for the alleged breach. At this stage of the proceedings, we do not have an estimate of the likelihood or the amount of any financial consequences to us. On or about January 9, 2017, Lattice, members of our Board, Canyon Bridge Capital Partners, Inc., Canyon Bridge Acquisition Company, Inc. and Canyon Bridge Merger Sub Inc. were named as defendants in a complaint filed in the United States District Court for the District of Oregon by an alleged stockholder of the Company in connection with the proposed acquisition of the Company by Canyon Bridge. The complaint was captioned Paul Parshall, et al. v. Lattice, et al. and alleges violations of federal securities laws based on alleged deficiencies in the disclosure provided to shareholders regarding the transaction. An additional complaint was subsequently filed on or about January 27, 2017, naming Lattice and members of our Board, in the United States district Court for the District of Delaware. This complaint is captioned Robert Sellers, et al. v. Lattice, et al. We believe that we possess defenses to these claims and intend to vigorously defend this litigation. At this stage of the proceedings, we do not have an estimate of the likelihood or the amount of any potential exposure to the Company, if any. 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.

Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2016

Valuation and Qualifying Accounts [Abstract]

Valuation and Qualifying Accounts

The following table displays the activity related to changes in our valuation and qualifying accounts:



(In thousands)	Balance at beginning of period		Balance received through acquisition		Charged (Credit) to costs and expenses			Charged to other accounts		Settlements & write-offs net of recoveries			Balance at end of period
Fiscal year ended December 31, 2016
Allowance for deferred taxes	$	252,578	$	—	$	7,450		$	659	$	—		$	260,687
Allowance for doubtful accounts	621		—		7,362			2,284		(968		)	9,299
Allowance for warranty expense	370		—		216			—		(234		)	352
	$	253,569	$	—	$	15,028		$	2,943	$	(1,202	)	$	270,338
Fiscal year ended January 2, 2016
Allowance for deferred taxes	$	141,215	$	52,481	$	58,658		$	224	$	—		$	252,578
Allowance for doubtful accounts	875		—		(438		)	189		(5		)	621
Allowance for warranty expense	81		136		153			—		—			370
	$	142,171	$	52,617	$	58,373		$	413	$	(5	)	$	253,569
Fiscal year ended January 3, 2015
Allowance for deferred taxes	$	150,528	$	—	$	(9,958	)	$	645	$	—		$	141,215
Allowance for doubtful accounts	878		—		—			—		(3		)	875
Allowance for warranty expense	—		—		81			—		—			81
	$	151,406	$	—	$	(9,877	)	$	645	$	(3	)	$	142,171

Segment and Geographic Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment and Geographic Information

Segment Information

As of December 31, 2016, we had one operating segment: the core Lattice business, which includes IP and semiconductor devices. Qterics, a discrete software-as-a-service business unit, was previously an immaterial operating segment in the Lattice legal entity structure. In April 2016, we sold Qterics to an unrelated third party for net proceeds of $2.0 million, net of cash sold, resulting in a gain of $2.6 million. The gain has been included in other income (expense), net for the year ended December 31, 2016 in the Consolidated Statements of Operations.

Geographic Information

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



	Year Ended
(In thousands)	December 31, 2016			January 2, 2016			January 3, 2015
United States:	$	51,752	12%	$	33,677	8%	$	30,848	8%

China	146,645		34	147,688		36	159,155		43
Europe	59,835		14	55,596		14	59,041		16
Japan	49,080		12	44,067		11	31,207		9
Taiwan	31,322		7	31,181		8	6,691		2
Other Asia	78,046		18	85,598		21	69,778		19
Other Americas	10,374		3	8,159		2	9,407		3
Total foreign revenue	375,302		88	372,289		92	335,279		92
Total revenue	$	427,054	100%	$	405,966	100%	$	366,127	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.

Our property and equipment, net by country at the end of each period was as follows:



(In thousands)	December 31, 2016		January 2, 2016
United States	$	30,532	$	25,615

China	10,617		14,998
Philippines	4,928		3,948
Taiwan	2,310		3,677
India	215		1,470
Japan	637		1,211
Other	242		933
Total foreign property and equipment, net	18,949		26,237
Total property and equipment, net	$	49,481	$	51,852

Revenue by Distributors

Our largest customers are often distributors and sales through distributors have historically made up a significant portion of our total revenue. Revenue attributable to resales of products by our primary distributors are as follows:



	% of Total Revenue
	2016		2015		2014
Arrow Electronics Inc.	24	%	20	%	24	%
Weikeng Group	22		12		10
All others	15		13		11
All sell-through distributors	61	%	45	%	45	%

- 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

Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (Unaudited)

A summary of the Company's consolidated quarterly results of operations is as follows:



	2016												2015 *
(In thousands, except per share data)	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Revenue	$	118,108		$	113,225		$	99,209		$	96,512		$	101,194		$	109,715		$	106,460		$	88,597
Gross margin	63,480			67,424			58,426			57,104			54,102			59,849			58,126			47,832
Restructuring charges	951			317			2,568			5,431			3,459			6,818			4,068			4,894
Net loss	$	(8,164	)	$	(12,414	)	$	(13,810	)	$	(19,711	)	$	(45,454	)	$	(24,862	)	$	(35,570	)	$	(53,347	)

Net loss per share - basic and diluted	$	(0.07	)	$	(0.10	)	$	(0.12	)	$	(0.17	)	$	(0.38	)	$	(0.21	)	$	(0.30	)	$	(0.46	)

* Our results for the year ended January 2, 2016 include the results of Silicon Image for the approximately 10-month period from

March 11, 2015 through January 2, 2016. Our results for the year ended December 31, 2016 fully include the results of Silicon

Image. The first quarter of fiscal 2015 ended on April 4, 2015.

Nature of Operations and Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Fiscal Reporting Period	Fiscal Reporting Period We report based on a 52 or 53-week fiscal year ending on the Saturday closest to December 31. Our fiscal 2016 and 2015 were 52-week years that ended December 31, 2016 and January 2, 2016, respectively. Our fiscal 2014 was a 53-week year, with a 14-week fourth quarter, that ended January 3, 2015. Our fiscal 2017 will be a 52-week year and will end on December 30, 2017. All references to quarterly or yearly financial results are references to the results for the relevant fiscal period.
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 year ended January 2, 2016 include the results of Silicon Image, Inc. ("Silicon Image") for the approximately 10-month period from March 11, 2015 through January 2, 2016. Results presented for periods prior to fiscal 2015 are those historically reported for Lattice only. Our results for the year ended December 31, 2016 fully include the results of Silicon Image. 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 amounting to approximately $0.3 million that was reported separately for the year ended January 2, 2016 is now included in Other income (expense), net.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts and classification of assets, such as marketable securities, accounts receivable, inventory, goodwill (including the assessment of reporting unit), intangible assets, current and deferred income taxes, accrued liabilities (including restructuring charges and bonus arrangements), deferred income and allowances on sales to sell-through distributors, disclosure of contingent assets and liabilities at the date of the financial statements, 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	Cash Equivalents and Marketable Securities We consider all investments that are readily convertible into cash and have original maturities of three months or less, to be cash equivalents. Cash equivalents consist primarily of highly liquid investments in time deposits or money market accounts and are carried at cost. We account for marketable securities as available-for-sale investments, as defined by U.S. GAAP, and record unrealized gains or losses to Accumulated other comprehensive loss on our Consolidated Balance Sheets, unless losses are considered other than temporary, in which case, those are recorded directly to the Consolidated Statements of Operations and Statements of Comprehensive (Loss) Income. 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 were also invested in auction rate securities until June 2014. We value these instruments at their fair value and monitor our 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. 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. As a result, the determination of fair value for Level 3 instruments requires significant management judgment and subjectivity. During fiscal 2014 we sold all of our Level 3 instruments, which had been entirely made up of auction rate securities consisting of student loan asset-backed notes. These were classified as Long-term marketable securities on our Consolidated Balance Sheets, and management derived the fair value of the auction rate securities from a combination of market and income approaches, including third party valuation results, investment broker-provided market information, and available information on the credit quality of the underlying collateral.
Foreign Exchange and Translation of Foreign Currencies	Foreign Exchange and Translation of Foreign Currencies While our revenues and the majority of our expenses are denominated in U.S. dollars, we have international subsidiary and branch operations that conduct some transactions in foreign currencies. In addition, a portion of our silicon wafer and other purchases were historically denominated in Japanese yen, we billed certain Japanese customers in yen, and we continue to collect a Japanese consumption tax refund in yen. Gains or losses from foreign exchange rate fluctuations on balances denominated in foreign currencies are reflected in Other (expense) income, net. Realized and unrealized gains or losses on foreign currency transactions were not significant for the periods presented. We translate accounts denominated in foreign currencies in accordance with ASC 830, “Foreign Currency Matters,” using the current rate method under which asset and liability accounts are translated at the current rate, while stockholders' equity accounts are translated at the appropriate historical rates, and revenue and expense accounts are translated at average monthly exchange rates. Translation adjustments related to the consolidation of foreign subsidiary financial statements are reflected in Accumulated other comprehensive loss in Stockholders' equity.
Derivative Financial Instruments	Derivative Financial Instruments We mitigate foreign currency exchange rate risk by entering into foreign currency forward exchange contracts. At December 31, 2016 and January 2, 2016, we had open contracts for Japanese yen of $2.3 million and $3.3 million, respectively. The two contract outstanding at December 31, 2016 will settle in June 2017. Of the six contracts outstanding at January 2, 2016, two settled in January 2016 and the other four contracts settled in June 2016. Although such hedges mitigate our foreign currency exchange rate exposure from an economic perspective they were not designated as "effective" hedges for accounting purposes and are adjusted to fair value through Other (expense) income, net, with a gain of approximately $0.2 million and a loss of less than $0.1 million for the years ended December 31, 2016 and January 2, 2016, respectively.
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. For fiscal years 2016, 2015, and 2014, our top five end customers constituted approximately 27%, 32%, and 45%, respectively, of our revenue. Our largest end customer in fiscal year 2016 accounted for 9.9% of total revenue. Our largest end customer in fiscal year 2015 accounted for 9.3% of total revenue, and our two largest end customers in fiscal year 2014 accounted for 19.1% and 12.3%, respectively, of total revenue. Sales through distributors have historically accounted for a significant portion of our total revenue. For fiscal year 2016, revenue attributable to resale of products by sell-through distributors as a percentage of our total revenue was 61%. For both of the fiscal years 2015 and 2014, revenue attributable to resale of products by sell-through distributors as a percentage of our total revenue was 45%. Our two largest distributor groups also account for a substantial portion of our trade receivables. At December 31, 2016 and January 2, 2016, one distributor group accounted for 38% and 29%, respectively, and the other accounted for 24% 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. We regularly review our allowance for doubtful accounts and the aging of our accounts receivable. Accounts receivable do not bear interest and are shown net of allowances for doubtful accounts of $9.3 million and $0.6 million at December 31, 2016 and January 2, 2016, respectively. During the third quarter of fiscal 2016, we received notice from one of our distributor groups that indicated a high likelihood of their bankruptcy. As a result, we reserved our accounts receivable, net of deferred revenue, from the distributor group resulting in an increase in allowance for doubtful accounts of $9.0 million and bad debt expense of $7.5 million for fiscal 2016. 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. We seek to mitigate the concentration of supply risk by establishing, maintaining and managing multiple foundry relationships; however, certain of our products are sourced from a single foundry.
Revenue Recognition and Deferred Income	We use estimates and apply judgment to reconcile sell-through distributors' inventories. Errors in our estimates or judgments could result in inaccurate reporting of our Revenue, Cost of product sold, Deferred income and allowances on sales to sell-through distributors, and Net (loss) income. Licensing and Services Revenue Our licensing and services revenue is comprised of revenue from our intellectual property ("IP") core licensing activity, patent monetization activities, and royalty and adopter fee revenue from our standards activities. These activities are complementary to our product sales and help us monetize our IP 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 and/or royalties 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 to us by customers. 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 reported 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 associated with final acceptance by the customer or for short-term contracts. HDMI royalty revenue is determined by a contractual allocation formula agreed to by the Founders of the HDMI consortium. Evidence of an arrangement, as it relates to HDMI royalty revenue, is deemed complete when all of the Founders agree on the royalty sharing formula. From time to time through December 31, 2016, as an agent of the HDMI Consortium, we performed audits on our royalty reporting customers to ensure compliance. As a result of those compliance efforts, we entered into settlement agreements for the payment of unreported royalties. The contractual terms of those agreements provided for upfront payment of unreported royalties or payment over a period of time, generally not to exceed one year. Revenue from those arrangements was recognized when the agreement was executed by both parties, as long as price was fixed and determinable and collection was reasonably assured. 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. For this reason, we do not recognize revenue until products are resold by sell-through distributors to an end customer. 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. At the time of shipment to sell-through 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) income, and Accounts receivable, net are adjusted to reflect the final selling price.
Inventories	Inventories Inventories are recorded at the lower of actual cost determined on a first-in-first-out basis or market. We establish provisions for inventory if it is obsolete or we hold quantities which are in excess of projected customer demand. The creation of such provisions results in a write-down of inventory to net realizable value and a charge to Cost of product revenue.
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 and building space. Leasehold improvements are amortized over the shorter of the non-cancelable lease term or the estimated useful life of the assets. 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.
Equity Investments in Privately Held Companies	Equity Investments in Privately Held Companies Equity investments in privately-held companies are reviewed on a quarterly basis to determine if their values have been impaired and adjustments are recorded as necessary. We assess the potential impairment of these investments by considering available evidence such as the investee’s historical and projected operating results, progress towards meeting business milestones, ability to meet expense forecasts, and the prospects for industry or market in which the investee operates. Upon disposition of these investments, the specific identification method is used to determine the cost basis in computing realized gains or losses. Declines in value that are judged to be other-than-temporary are reported in other income (expense), net in the accompanying Consolidated Statements of Operations. The accounting method for equity investments in privately-held companies is assessed under ASC 323-10, Equity Method and Joint Ventures. Investments for which we have the ability to exert significant influence on the investee are accounted for under the equity method with our proportionate share of the investee’s operating results recognized through the Consolidated Statements of Operations, along with a commensurate increase or decrease in the carrying value of the investment.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets Long-lived assets, including amortizable intangible assets, are carried on our financial statements based on their cost less accumulated depreciation or amortization. We monitor the carrying value of our long-lived assets for potential impairment and test the recoverability of such assets annually during the fourth quarter and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. These events or changes in circumstances, including management decisions pertaining to such assets, are referred to as impairment indicators. If an impairment indicator occurs, we perform a test of recoverability by comparing the carrying value of the asset group to its undiscounted expected future cash flows. If the carrying values are in excess of undiscounted expected future cash flows, we measure any impairment by comparing the fair value of the asset group to its carrying value. Fair value is generally determined by considering (i) internally developed discounted projected cash flow analysis of the asset group; (ii) actual third-party valuations; and/or (iii) information available regarding the current market for similar asset groups. If the fair value of the asset group is determined to be less than the carrying amount of the asset group, an impairment in the amount of the difference is recorded in the period that the impairment indicator occurs and is included in our Consolidated Statements of Operations. Estimating future cash flows requires significant judgment and projections may vary from the cash flows eventually realized, which could impact our ability to accurately assess whether an asset has been impaired. The results of our assessments are detailed in Note 9.
Valuation of Goodwill	Valuation of Goodwill Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. We review goodwill for impairment annually during the fourth quarter and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. When evaluating whether goodwill is impaired, we make a qualitative assessment to determine if it is more likely than not that the reporting unit's fair value is less than the carrying amount. If the qualitative assessment determines that it is more likely than not that the fair value is less than the carrying amount, the fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and we must measure the impairment loss. The impairment loss, if any, is recognized for any excess of the carrying amount of the reporting unit's goodwill over the implied fair value of the goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. If the fair value of the reporting unit exceeds its carrying value, no further impairment analysis is needed. For purposes of testing goodwill for impairment, we currently operate as a single reporting unit: the core Lattice ("Core") business, which includes intellectual property and semiconductor devices. In fiscal 2015 only, we separately tested goodwill for impairment in Qterics, a discrete software-as-a-service business unit in the Lattice legal entity structure. We sold Qterics to an unrelated third party in April 2016. Although these two operating units constituted two reportable segments in fiscal 2015, we combined Qterics with our Core business and reported them together as one reportable segment due to the immaterial nature of the Qterics unit. The results of our assessments are detailed in Note 9.
Leases	Leases We lease office space and classify our leases as either operating or capital lease arrangements in accordance with the criteria of ASC 840, “Leases.” Certain of our office space operating leases contain provisions under which monthly rent escalates over time and certain leases may also contain provisions for reimbursement of a specified amount of leasehold improvements. When lease agreements contain escalating rent clauses, we recognize expense on a straight-line basis over the term of the lease. When lease agreements provide allowances for leasehold improvements, we capitalize the leasehold improvement assets and amortize them on a straight-line basis over the lesser of the lease term or the estimated useful life of the asset, and reduce rent expense on a straight-line basis over the term of the lease by the amount of the asset capitalized.
Restructuring Charges	Restructuring Charges Expenses associated with exit or disposal activities are recognized when incurred under ASC 420, “Exit or Disposal Cost Obligations,” for everything but severance. Because the Company has a history of paying severance benefits, the cost of severance benefits associated with a restructuring plan is recorded when such costs are probable and the amount can be reasonably estimated in accordance with ASC 712, “Compensation - Nonretirement Postemployment Benefits.” When leased facilities are vacated, an amount equal to the total future lease obligations from the date of vacating the premises through the expiration of the lease, net of any future sublease income, is recorded as a part of restructuring charges.
Research and Development	Research and Development Research and development expenses include costs for compensation and benefits, development masks, engineering wafers, depreciation, licenses, and outside engineering services. These expenditures are for the design of new products, intellectual property cores, processes, packaging, and software to support new products. Research and development costs are expensed as incurred.
Accounting for Income Taxes	Accounting for Income Taxes Our provision for income tax is comprised of our current tax liability and changes in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements using enacted tax rates and laws that will be in effect when the difference is expected to reverse. Valuation allowances are provided to reduce deferred tax assets to an amount that in management’s judgment is more-likely-than-not to be recoverable against future taxable income. At December 31, 2016, U.S. income taxes were not provided on approximately $3.0 million of the undistributed earnings of our Chinese subsidiary as we intend to reinvest these earnings indefinitely. If these earnings were distributed to the U.S. in the form of dividends or otherwise, these earnings would be subject to Chinese withholding taxes and would be subject to additional U.S. income taxes but offset by net operating loss carryforwards which have been fully reserved. Our income tax calculations are based on application of the respective U.S. federal, state or foreign tax law. Our tax filings, however, are subject to audit by the relevant tax authorities. Accordingly, we recognize tax liabilities based upon our estimate of whether, and the extent to which, additional taxes will be due when such estimates are more-likely-than-not to be sustained. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. To the extent the final tax liabilities are different than the amounts originally accrued, the increases or decreases as well as any interest or penalties are recorded as income tax expense or benefit in the Consolidated Statements of Operations. In assessing the ability to realize deferred tax assets, the Company evaluates both positive and negative evidence that may exist and considers whether it is more-likely-than-not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Any adjustment to the net deferred tax asset valuation allowance is recorded in the Consolidated Statements of Operations for the period that the adjustment is determined to be required.
Share-Based Compensation	Stock-Based Compensation We use the Black-Scholes option pricing model to estimate the fair value of substantially all share-based awards consistent with the provisions of ASC 718, “Compensation - Stock Compensation.” Option pricing models, including the Black-Scholes model, require the use of input assumptions, including expected volatility, expected term, expected dividend rate, and expected risk-free rate of return. The assumptions for expected volatility and expected term most significantly affect the grant date fair value. We have also used a lattice-based option-pricing model to determine and fix the fair value of stock options with a market condition granted to certain executives. This valuation model incorporates a Monte-Carlo simulation, and considered the likelihood that we would achieve the market condition. The options 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. TSR is a measure of stock price appreciation plus dividends paid, if any, in the performance period.
New Accounting Pronouncements	New Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (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. We intend to adopt ASU 2014-09 on December 31, 2017 which is the first day of our fiscal 2018. The new standard allows for two transition methods - (i) apply it retrospectively to each prior reporting period presented, or (ii) apply it prospectively with the cumulative effect of adoption recognized on December 31, 2017, the first day of our fiscal 2018. We have not yet concluded upon our selection of the transition method. We have commenced our implementation efforts, which have thus far focused on developing a project plan and performing a preliminary assessment of potential impacts of the new standard to our financial statements. Key elements of our project plan include the final determination of the impacts of the standard to revenues, contract acquisition costs, income taxes and various balance sheet accounts; the identification of additional system requirements, if any, to support our application of the new standard; and the design and implementation of relevant internal controls. We believe that we have sufficient time and resources to complete our implementation efforts no later than the fourth quarter of fiscal 2017. 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 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 current 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 2016-09, 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 do not expect the adoption of this accounting standard update to have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The new guidance is intended to reduce diversity in practice in how cash receipts and cash payments are classified in the statement of cash flows. For public business entities, this guidance will be effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted. We are currently evaluating the impact of ASU 2016-15 on our consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This update is intended to recognize the income tax consequences of intra-entity transfers of assets other than inventory when they occur by removing the exception to postpone recognition until the asset has been sold to an outside party. For public business entities, this guidance is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted, and it is required to be applied on a modified retrospective basis through a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. We are currently evaluating the impact of ASU 2016-16 on our consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business, which narrows the existing definition of a business and provides a framework for evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or a business. This update requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities (collectively, the set) is not a business. To be considered a business, the set would need to include an input and a substantive process that together significantly contribute to the ability to create outputs. The standard also narrows the definition of outputs. The definition of a business affects areas of accounting such as acquisitions, disposals and goodwill. Under the new guidance, fewer acquired sets are expected to be considered businesses. For public business entities, this guidance is effective for interim and annual periods beginning after December 15, 2017. We are currently evaluating the impact of ASU 2017-01 on our consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which simplifies the subsequent measurement of goodwill by eliminating step two from the goodwill impairment test. Under the new guidance, an entity will recognize an impairment charge for the amount by which the carrying value exceeds the fair value. This standard is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017 and requires a prospective transition method. We are currently evaluating the impact of ASU 2017-04 on our consolidated financial statements and related disclosures.

Nature of Operations and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Schedule of Components of 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)	December 31, 2016			January 2, 2016
Inventory valued at published list price and held by sell-through distributors with right of return	$	86,218		$	47,086
Allowance for distributor advances	(37,090		)	(22,290		)
Deferred cost of sales related to inventory held by sell-through distributors	(16,871		)	(6,930		)
Total Deferred income and allowances on sales to sell-through distributors	$	32,257		$	17,866

Net (Loss) Income per Share (Tables)

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Schedule of Earnings Per Share Reconciliation

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



	Year Ended
(in thousands, except per share data)	December 31, 2016			January 2, 2016			January 3, 2015
Net (loss) income	$	(54,099	)	$	(159,233	)	$	48,580

Shares used in basic net (loss) income per share	119,994			117,387			117,708
Dilutive effect of stock options, RSUs and ESPP shares	—			—			2,537
Shares used in diluted net (loss) income per share	119,994			117,387			120,245

Basic net (loss) income per share	$	(0.45	)	$	(1.36	)	$	0.41

Diluted net (loss) income per share	$	(0.45	)	$	(1.36	)	$	0.40

Marketable Securities (Tables)

12 Months Ended

Dec. 31, 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)	December 31, 2016		January 2, 2016
Short-term marketable securities:
Maturing within one year	$	10,308	$	12,144
Maturing between one and two years	—		5,824
Total marketable securities	$	10,308	$	17,968

Schedule of Composition of Marketable Securities

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



(In thousands)	December 31, 2016		January 2, 2016
Short-term marketable securities:
Corporate and government bonds and notes	$	10,230	$	17,888
Certificates of deposit	78		80
Total marketable securities	$	10,308	$	17,968

Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Financial Instruments



	Fair value measurements as of December 31, 2016								Fair value measurements as of January 2, 2016
(In thousands)	Total		Level 1		Level 2		Level 3		Total			Level 1		Level 2			Level 3
Short-term marketable securities	$	10,308	$	10,230	$	78	$	—	$	17,968		$	17,888	$	80		$	—
Foreign currency forward exchange contracts, net	184		—		184		—		(12		)	—		(12		)	—
Total fair value of financial instruments	$	10,492	$	10,230	$	262	$	—	$	17,956		$	17,888	$	68		$	—

Inventories (Tables)

12 Months Ended

Dec. 31, 2016

Inventory Disclosure [Abstract]

Schedule of Inventories



(In thousands)	December 31, 2016		January 2, 2016
Work in progress	$	50,688	$	57,865
Finished goods	28,480		18,031
Total inventories	$	79,168	$	75,896

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Property and Equipment



(In thousands)	December 31, 2016			January 2, 2016
Buildings	$	3,554		$	3,554
Computer and test equipment	162,388			148,995
Office furniture and equipment	3,460			3,880
Leasehold and building improvements	14,865			14,366
	184,267			170,795
Accumulated depreciation and amortization	(134,786		)	(118,943		)
	$	49,481		$	51,852

Business Combinations and Goodwill Business Combination (Tables)

12 Months Ended

Dec. 31, 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

Business Acquisition, Pro Forma Information



	Year Ended
(Dollars in thousands, except per share data)	January 2, 2016			January 3, 2015
Total revenues	$	450,867		$	624,179
Net (loss) income attributable to stockholders	$	(147,436	)	$	10,376
Basic net (loss) income per share	$	(1.26	)	$	0.09
Diluted net (loss) income per share	$	(1.26	)	$	0.09

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

The following tables summarize the details of our total purchased intangible assets as of December 31, 2016 and January 2, 2016:



	December 31, 2016
(In thousands)	Weighted Average Amortization Period (in years)	Gross		Impairment			Accumulated Amortization			Intangible assets, net of amortization
Developed technology	4.7	$	141,359	$	—		$	(55,493	)	$	85,866
Customer relationships	6.1	30,800		(7,866		)	(13,694		)	9,240
Licensed technology	3.3	2,127		—			(1,201		)	926
Patents	5	769		—			(279		)	490
Total identified finite-lived intangible assets		175,055		(7,866		)	(70,667		)	96,522
In-process research and development	indefinite	22,341		—			—			22,341
Total identified intangible assets		$	197,396	$	(7,866	)	$	(70,667	)	$	118,863



	January 2, 2016
(In thousands)	Weighted Average Amortization Period (in years)	Gross		Impairment			Accumulated Amortization			Intangible assets, net of amortization
Developed technology	4.7	$	135,700	$	(3,856	)	$	(28,384	)	$	103,460
Customer relationships	5.5	37,258		(5,139		)	(10,156		)	21,963
Licensed technology	2.5	2,127		—			(610		)	1,517
Patents	5	769		—			(126		)	643
Total identified finite-lived intangible assets		175,854		(8,995		)	(39,276		)	127,583
In-process research and development	indefinite	35,000		—			—			35,000
Total identified intangible assets		$	210,854	$	(8,995	)	$	(39,276	)	$	162,583

Finite-lived Intangible Assets Amortization Expense

We recorded amortization expense associated with these intangible assets on the Consolidated Statements of Operations as follows:



	Year Ended
(In thousands)	December 31, 2016		January 2, 2016		January 3, 2015
Research and development	$	745	$	731	$	—
Amortization of acquired intangible assets	33,575		28,849		2,948
	$	34,320	$	29,580	$	2,948

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

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



(In thousands)	Amount
2017	$	33,759
2018	27,877
2019	25,093
2020	7,145
2021	2,547
Thereafter	101
Total	$	96,522

Equity Method Investment (Tables)

12 Months Ended

Dec. 31, 2016

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investment, Investee's Net Loss



	Year Ended
(In thousands)	December 31, 2016			January 2, 2016			January 3, 2015
Equity in net loss of an unconsolidated affiliate, net of tax	$	(1,459	)	$	(492	)	$	—

Equity Method Investments Roll-forward Schedule

The net balance of our investment included in other long-term assets in the Consolidated Balance Sheets is detailed in the following table:



(In thousands)	Total
Balance at January 3, 2015	$	—
Investment made during fiscal year	5,000
Equity in net loss of an unconsolidated affiliate, net of tax	(492		)
Balance at January 2, 2016	4,508
Investment made during fiscal year	1,000
Equity in net loss of an unconsolidated affiliate, net of tax	(1,459		)
Balance at December 31, 2016	$	4,049

Accounts Payable and Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2016

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Liabilities

Included in accounts payable and accrued liabilities in the Consolidated Balance Sheets are the following balances:



(In thousands)	December 31, 2016		January 2, 2016
Trade accounts payable	$	37,800	$	18,616
Payable to members of the HDMI and MHL consortia*	9,698		16,643
Other accrued expenses	33,435		39,039
Total accounts payable and accrued expenses	$	80,933	$	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. Our role as the agent of the HDMI consortium terminated on January 1, 2017.

Lease Obligations (Tables)

12 Months Ended

Dec. 31, 2016

Leases [Abstract]

Operating Leases of Lessee Disclosure

Future minimum lease commitments at December 31, 2016 were as follows:



Fiscal year	Amount
(In thousands)	Amount
2017	$	7,220
2018	5,890
2019	4,559
2020	4,528
2021	4,583
Thereafter	18,965
	$	45,745

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

The domestic and foreign components of (loss) income before income taxes were as follows:



	Year Ended
(In thousands)	December 31, 2016			January 2, 2016			January 3, 2015
Domestic	$	(32,503	)	$	(92,737	)	$	6,292
Foreign	(10,220		)	(33,464		)	36,649
(Loss) income before taxes	$	(42,723	)	$	(126,201	)	$	42,941

Schedule of Components of Income Tax Expense (Benefit)

The components of the income tax expense (benefit) are as follows:



	Year Ended
(In thousands)	December 31, 2016		January 2, 2016			January 3, 2015
Current:
Federal	$	1,896	$	968		$	329
State	13		80			5
Foreign	7,918		10,634			1,944
	9,827		11,682			2,278
Deferred:
Federal	—		18,713			(7,416		)
State	—		2,318			(513		)
Foreign	90		(173		)	12
	90		20,858			(7,917		)
Income tax expense (benefit)	$	9,917	$	32,540		$	(5,639	)

Schedule of Effective Income Tax Rate Reconciliation



	Year Ended
	December 31, 2016	January 2, 2016	January 3, 2015
	%	%	%
Statutory federal rate	(35)	(35)	35
Adjustments for tax effects of:
State taxes, net	7	(6)	1
Research and development credits	(2)	(3)	(9)
Stock compensation	3	1	1
Foreign rate differential	14	12	(25)
Foreign dividends	—	5	1
Foreign withholding taxes	9	3	—
Capital loss expiration	—	—	7
Other permanent	3	4	—
Goodwill impairment	—	4	—
Valuation allowance	17	46	(23)
Change in uncertain tax benefit accrual	5	(8)	1
Tax rate change	—	3	(4)
Other	2	—	2
Effective income tax rate	23	26	(13)

Schedule of Deferred Tax Assets and Liabilities

The components of our net deferred tax assets are as follows:



(In thousands)	December 31, 2016			January 2, 2016
Deferred tax assets:
Accrued expenses and reserves	$	5,143		$	5,690
Inventory	290			303
Deferred Revenue	426			3,177
Stock-based and deferred compensation	7,269			7,674
Intangible assets	20,063			16,959
Fixed assets	678			—
Net operating loss carry forwards	137,521			131,829
Tax credit carry forwards	89,174			87,909
Capital loss carry forwards	962			1,262
Other	2,975			2,458
	264,501			257,261
Less: valuation allowance	(260,687		)	(252,578		)
Net deferred tax assets	3,814			4,683
Deferred tax liabilities:
Fixed Assets	—			791
Other	3,746			3,734
Total deferred tax liabilities	3,746			4,525
Net deferred tax assets	$	68		$	158

Schedule of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns Roll Forward

The following table summarizes the changes to unrecognized tax benefits for fiscal years 2016, 2015 and 2014:



(In thousands)	Amount
Balance at December 28, 2013	$	22,643
Additions based on tax positions related to the current year	770
Additions based on tax positions of prior years	—
Reduction for tax positions of prior years	(4,673		)
Settlements	—
Reduction as a result of lapse of applicable statute of limitations	(67		)
Balance at January 3, 2015	18,673
Additions based on tax positions related to the current year	4,381
Additions based on tax positions of prior years	—
Additions due to acquisition	41,083
Reduction for tax positions of prior years	(14,958		)
Settlements	—
Reduction as a result of lapse of applicable statute of limitations	(972		)
Balance at January 2, 2016	48,207
Additions based on tax positions related to the current year	2,573
Additions based on tax positions of prior years	530
Additions due to acquisition	—
Reductions for tax positions of prior years	(1,824		)
Settlements	—
Reduction as a result of lapse of applicable statute of limitations	(1,863		)
Balance at December 31, 2016	$	47,623

Restructuring (Tables)

12 Months Ended

Dec. 31, 2016

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Reserve by Type of Cost

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



(In thousands)	Severance & related *			Lease termination			Software Contracts & Engineering Tools**			Other			Total
Balance at December 28, 2013	$	17		$	368		$	—		$	147		$	532
Restructuring charges	—			1			—			9			10
Costs paid or otherwise settled	(8		)	(341		)	—			(18		)	(367		)
Adjustments to prior restructuring costs	(9		)	15			—			1			7
Balance at January 3, 2015	$	—		$	43		—			$	139		$	182
Restructuring charges	12,861			2,667			3,040			671			19,239
Costs paid or otherwise settled	(9,165		)	(1,705		)	(2,663		)	(810		)	(14,343		)
Balance at January 2, 2016	$	3,696		$	1,005		377			$	—		$	5,078
Restructuring charges	2,883			2,993			1,903			1,488			9,267
Costs paid or otherwise settled	(5,778		)	(2,962		)	(2,255		)	(1,476		)	(12,471		)
Balance at December 31, 2016	$	801		$	1,036		$	25		$	12		$	1,874

* Includes employee relocation costs

**Includes cancellation of contracts, asset impairments, and accelerated depreciation on certain enterprise resource planning and customer

relationship management systems

Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 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)	December 31, 2016			January 2, 2016
Principal amount	$	342,221		$	347,375
Unamortized original issue discount and debt issuance costs	(7,599		)	(8,948		)
Less: Current portion of long-term debt	(33,767		)	(7,557		)
Long-term debt	$	300,855		$	330,870

Interest Income and Interest Expense Disclosure

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



			Year Ended
(in thousands)	December 31, 2016		January 2, 2016		January 3, 2015
Contractual interest	$	18,518	$	15,225	$	—
Amortization of debt issuance costs and discount	1,350		2,835		—
Total Interest expense related to the Term Loan	$	19,868	$	18,060	$	—

Future principal payments

As of December 31, 2016, minimum expected future principal payments on the Term Loan were as follows:



Fiscal year	(in thousands)

2017	$	35,996
2018	20,813
2019	52,583
2020	89,113
2021	143,716
	$	342,221

- 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

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 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:



	Year Ended
(In thousands)	December 31, 2016		January 2, 2016		January 3, 2015
Cost of products sold	$	888	$	1,416	$	819
Research and development	7,928		9,141		5,176
Selling, general, and administrative	7,397		6,793		6,807
Acquisition related charges	—		4,293		—
Total stock-based compensation	$	16,213	$	21,643	$	12,802

Schedule of Share-based Payment Award, Stock Options and Employee Stock Purchase Plan, Valuation Assumptions

The following table summarizes the assumptions used in the valuation of stock option and ESPP compensation for fiscal years 2016, 2015, and 2014:



	Year Ended
	December 31, 2016	January 2, 2016	January 3, 2015
Employee and Director Stock Options
Expected volatility	44.2% to 50.8%	43.6% to 47.3%	45.4% to 50.4%
Risk-free interest rate	.94% - 2.06%	1.4% to 1.7%	1.5% to 1.7%
Expected term (years)	4.06 - 4.78	4.08 to 4.75	4.1 to 4.7
Dividend yield	—%	—%	—%
Employee Stock Purchase Plan
Weighted average expected volatility	57.9%	33.6%	38.7%
Weighted average risk-free interest rate	0.43%	0.12%	0.08%
Expected term	6 months	6 months	6 months
Dividend yield	—%	—%	—%

Schedule of Share-based Compensation, Stock Options, Activity

The following table summarizes our stock option activity and related information for the year ended December 31, 2016:



(Shares and aggregate intrinsic value in thousands)	Shares		Weighted average exercise price		Weighted average remaining contractual term (years)	Aggregate Intrinsic Value
Balance, January 2, 2016	11,444		$	5.46
Granted	3,907		5.65
Exercised	(1,466	)	3.91
Forfeited or expired	(1,319	)	5.47
Balance, December 31, 2016	12,566		$	5.70
Vested and expected to vest at December 31, 2016	12,566		$	5.70	4.39	$	20,966
Exercisable, December 31, 2016	6,876		$	5.65	3.15	$	11,851

Schedule of Nonvested Restricted Stock Units Activity

The following table summarizes our RSU activity for the year ended December 31, 2016:



(Shares in thousands)	Shares		Weighted average grant date fair value
Balance, January 2, 2016	4,757		$	5.95
Granted	1,376		5.64
Exercised	(1,742	)	5.97
Forfeited or expired	(1,144	)	5.68
Balance, December 31, 2016	3,247		$	5.90

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The following table summarizes the assumptions used in the valuation of stock options and RSUs with a market condition for fiscal years 2016, 2015 and 2014:



	Year Ended
	December 31, 2016	January 2, 2016	January 3, 2015
Executive stock options with a market condition
Expected volatility	46%	44% to 46%	n/a
Risk-free interest rate	1.1%	1.4%	n/a
Expected term (years)	4.5	4.5	n/a
Dividend yield	—%	—%	n/a
Executive RSUs with a market condition
Expected volatility	n/a	36.9%	53.5%
Risk-free interest rate	n/a	0.6%	2.2%
Expected term (years)	n/a	2.0	0.2
Dividend yield	n/a	—%	—%

Valuation and Qualifying Accounts (Tables)

12 Months Ended

Dec. 31, 2016

Valuation and Qualifying Accounts [Abstract]

Valuation and Qualifying Accounts

The following table displays the activity related to changes in our valuation and qualifying accounts:



(In thousands)	Balance at beginning of period		Balance received through acquisition		Charged (Credit) to costs and expenses			Charged to other accounts		Settlements & write-offs net of recoveries			Balance at end of period
Fiscal year ended December 31, 2016
Allowance for deferred taxes	$	252,578	$	—	$	7,450		$	659	$	—		$	260,687
Allowance for doubtful accounts	621		—		7,362			2,284		(968		)	9,299
Allowance for warranty expense	370		—		216			—		(234		)	352
	$	253,569	$	—	$	15,028		$	2,943	$	(1,202	)	$	270,338
Fiscal year ended January 2, 2016
Allowance for deferred taxes	$	141,215	$	52,481	$	58,658		$	224	$	—		$	252,578
Allowance for doubtful accounts	875		—		(438		)	189		(5		)	621
Allowance for warranty expense	81		136		153			—		—			370
	$	142,171	$	52,617	$	58,373		$	413	$	(5	)	$	253,569
Fiscal year ended January 3, 2015
Allowance for deferred taxes	$	150,528	$	—	$	(9,958	)	$	645	$	—		$	141,215
Allowance for doubtful accounts	878		—		—			—		(3		)	875
Allowance for warranty expense	—		—		81			—		—			81
	$	151,406	$	—	$	(9,877	)	$	645	$	(3	)	$	142,171

Segment and Geographic Information (Tables)

12 Months Ended

Dec. 31, 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:



	Year Ended
(In thousands)	December 31, 2016			January 2, 2016			January 3, 2015
United States:	$	51,752	12%	$	33,677	8%	$	30,848	8%

China	146,645		34	147,688		36	159,155		43
Europe	59,835		14	55,596		14	59,041		16
Japan	49,080		12	44,067		11	31,207		9
Taiwan	31,322		7	31,181		8	6,691		2
Other Asia	78,046		18	85,598		21	69,778		19
Other Americas	10,374		3	8,159		2	9,407		3
Total foreign revenue	375,302		88	372,289		92	335,279		92
Total revenue	$	427,054	100%	$	405,966	100%	$	366,127	100%

Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country

Our property and equipment, net by country at the end of each period was as follows:



(In thousands)	December 31, 2016		January 2, 2016
United States	$	30,532	$	25,615

China	10,617		14,998
Philippines	4,928		3,948
Taiwan	2,310		3,677
India	215		1,470
Japan	637		1,211
Other	242		933
Total foreign property and equipment, net	18,949		26,237
Total property and equipment, net	$	49,481	$	51,852

Schedule of Revenue by Major Customers by Reporting Segments

Revenue attributable to resales of products by our primary distributors are as follows:



	% of Total Revenue
	2016		2015		2014
Arrow Electronics Inc.	24	%	20	%	24	%
Weikeng Group	22		12		10
All others	15		13		11
All sell-through distributors	61	%	45	%	45	%

Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

A summary of the Company's consolidated quarterly results of operations is as follows:



	2016												2015 *
(In thousands, except per share data)	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Revenue	$	118,108		$	113,225		$	99,209		$	96,512		$	101,194		$	109,715		$	106,460		$	88,597
Gross margin	63,480			67,424			58,426			57,104			54,102			59,849			58,126			47,832
Restructuring charges	951			317			2,568			5,431			3,459			6,818			4,068			4,894
Net loss	$	(8,164	)	$	(12,414	)	$	(13,810	)	$	(19,711	)	$	(45,454	)	$	(24,862	)	$	(35,570	)	$	(53,347	)

Net loss per share - basic and diluted	$	(0.07	)	$	(0.10	)	$	(0.12	)	$	(0.17	)	$	(0.38	)	$	(0.21	)	$	(0.30	)	$	(0.46	)

* Our results for the year ended January 2, 2016 include the results of Silicon Image for the approximately 10-month period from

March 11, 2015 through January 2, 2016. Our results for the year ended December 31, 2016 fully include the results of Silicon

Image. The first quarter of fiscal 2015 ended on April 4, 2015.

Nature of Operations and Significant Accounting Policies (Details) $ in Thousands	9 Months Ended	10 Months Ended	12 Months Ended
	Oct. 03, 2015	Jan. 02, 2016 USD ($) Contract	Dec. 31, 2016 USD ($) segment Contract	Jan. 02, 2016 USD ($) segment Contract	Jan. 03, 2015
General Discussion of Derivative Instruments and Hedging Activities [Abstract]
Fair value adjustment through earnings on foreign exchange contracts not designated as hedges			$ 200	$ (100)
Concentration percentage			61.00%	45.00%	45.00%
Risks and Uncertainties [Abstract]
Allowance for doubtful accounts		$ 600	$ 9,300	$ 600
Increase in allowance for doubtful accounts			9,000
Bad debt expense			7,500
Deferred Revenue and Credits [Abstract]
Inventory valued at published list price and held by sell-through distributors with right of return		47,086	86,218	47,086
Allowance for distributor advances		(22,290)	(37,090)	(22,290)
Deferred cost of sales related to inventory held by sell-through distributors		(6,930)	(16,871)	(6,930)
Total Deferred income and allowances on sales to sell-through distributors		17,866	$ 32,257	$ 17,866
Property, Plant and Equipment [Abstract]
Number of operating units \| segment			1	2
Number of reportable segment \| segment			1	2
Undistributed earnings of our Chinese subsidiary			$ 3,000
Contractual terms of options granted			2 years
Award vesting comparison period			2 years
Building
Property, Plant and Equipment [Abstract]
Estimated useful lives of PP&E			30 years
Minimum \| Equipment and software
Property, Plant and Equipment [Abstract]
Estimated useful lives of PP&E			3 years
Minimum \| Tooling
Property, Plant and Equipment [Abstract]
Estimated useful lives of PP&E			1 year
Maximum
Property, Plant and Equipment [Abstract]
Contractual terms of options granted	10 years
Maximum \| Equipment and software
Property, Plant and Equipment [Abstract]
Estimated useful lives of PP&E			5 years
Maximum \| Tooling
Property, Plant and Equipment [Abstract]
Estimated useful lives of PP&E			3 years
Not designated as hedges for accounting purposes \| Foreign exchange contracts
General Discussion of Derivative Instruments and Hedging Activities [Abstract]
Foreign exchange contracts outstanding		$ 3,300	$ 2,300	$ 3,300
Derivative, Number of Instruments Held \| Contract		6	2	6
Sales Revenue, Net \| Sell-Through Distributors Concentration Risk
General Discussion of Derivative Instruments and Hedging Activities [Abstract]
Concentration percentage			61.00%	45.00%	45.00%
Top Five Customers \| Sales Revenue, Net \| Customer Concentration Risk
General Discussion of Derivative Instruments and Hedging Activities [Abstract]
Concentration percentage			27.00%	32.00%	45.00%
Largest Customer \| Sales Revenue, Net \| Customer Concentration Risk
General Discussion of Derivative Instruments and Hedging Activities [Abstract]
Concentration percentage			9.90%	9.30%	19.10%
Second Largest Customer \| Sales Revenue, Net \| Customer Concentration Risk
General Discussion of Derivative Instruments and Hedging Activities [Abstract]
Concentration percentage					12.30%
Largest Distributor Group \| Trader receivables \| Sell-Through Distributors Concentration Risk
General Discussion of Derivative Instruments and Hedging Activities [Abstract]
Concentration percentage			38.00%	29.00%
Second Largest Distributor Group \| Trader receivables \| Sell-Through Distributors Concentration Risk
General Discussion of Derivative Instruments and Hedging Activities [Abstract]
Concentration percentage			24.00%	15.00%
Performance Shares \| Minimum
Property, Plant and Equipment [Abstract]
Award vesting percentage			0.00%
Performance Shares \| Maximum
Property, Plant and Equipment [Abstract]
Award vesting percentage			200.00%
Silicon Image, Inc
Basis of Presentation and Significant Accounting Policies [Line Items]
Fiscal Period Duration		10 months
Other income (expense), net
Basis of Presentation and Significant Accounting Policies [Line Items]
Net loss attributable to noncontrolling interest				$ 300
January 2016 \| Not designated as hedges for accounting purposes \| Foreign exchange contracts
General Discussion of Derivative Instruments and Hedging Activities [Abstract]
Derivative, Number of Instruments Held \| Contract		2		2
June 2016 \| Not designated as hedges for accounting purposes \| Foreign exchange contracts
General Discussion of Derivative Instruments and Hedging Activities [Abstract]
Derivative, Number of Instruments Held \| Contract		4		4

Net (Loss) Income per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Oct. 01, 2016	Jul. 02, 2016	Apr. 02, 2016	Jan. 02, 2016	Oct. 03, 2015	Jul. 04, 2015	Apr. 04, 2015	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net (loss) income	$ (8,164)	$ (12,414)	$ (13,810)	$ (19,711)	$ (45,454)	$ (24,862)	$ (35,570)	$ (53,347)	$ (54,099)	$ (159,233)	$ 48,580
Shares used in basic Net (loss) income per share									119,994	117,387	117,708
Dilutive effect of stock options, RSUs and ESPP shares									0	0	2,537
Shares used in diluted Net (loss) income per share									119,994	117,387	120,245
Basic Net (loss) income per share									$ (0.45)	$ (1.36)	$ 0.41
Diluted Net (loss) income per share									$ (0.45)	$ (1.36)	$ 0.40
Stock options, RSU's and ESPP shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Aggregate antidilutive shares excluded from computation of diluted net (loss) income per share									9,000	9,200	2,600

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Marketable Securities Composition (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Schedule of Available-for-sale Securities [Line Items]
Term of maturities of investments considered short-term	2 years
Short-term marketable securities
Schedule of Available-for-sale Securities [Line Items]
Maturing within one year	$ 10,308	$ 12,144
Maturing between one and two years	0	5,824
Short-term marketable securities	10,308	17,968
Short-term marketable securities \| Corporate and government bonds and notes
Schedule of Available-for-sale Securities [Line Items]
Short-term marketable securities	10,230	17,888
Short-term marketable securities \| Certificates of deposit
Schedule of Available-for-sale Securities [Line Items]
Short-term marketable securities	$ 78	$ 80

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Short Term
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Short-term marketable securities	$ 10,308	$ 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	10,230	17,888
Level 1 \| Short Term
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Short-term marketable securities	10,230	17,888
Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Foreign currency forward exchange contracts, net	184	(12)
Total fair value of financial instruments	262	68
Level 2 \| Short Term
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Short-term marketable securities	78	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
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Short-term marketable securities	0	0
Estimate of Fair Value Measurement
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Foreign currency forward exchange contracts, net	184	(12)
Total fair value of financial instruments	10,492	17,956
Estimate of Fair Value Measurement \| Short Term
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Short-term marketable securities	$ 10,308	$ 17,968

Fair Value of Financial Instruments Unobservable Inputs (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 28, 2014	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities sold	$ 5,200
Realized gain from sale of marketable securities				$ 1,700
Realized gain on sale of auction rate securities, previously unrealized, net of tax		$ 0	$ 0	$ 1,147
Level 1 \| Short Term
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized loss		$ 200
Level 1 \| Short Term \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized loss			$ 100
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Sale of securities	5,500
Federally-Insured OR FFELP Guaranteed Student Loan Auction Rate Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Par value of available for sale securities	$ 5,700

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Inventory Disclosure [Abstract]
Work in progress	$ 50,688	$ 57,865
Finished goods	28,480	18,031
Total inventories	$ 79,168	$ 75,896

Property and Equipment (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Nov. 30, 2014	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, gross		$ 184,267	$ 170,795
Accumulated depreciation and amortization		(134,786)	(118,943)
Property and equipment, net		49,481	51,852
Depreciation expense		18,400	18,100	$ 11,400
Proceeds from sale of land and building		0	0	$ 14,625
Buildings
Property, Plant and Equipment [Line Items]
Property and equipment, gross		3,554	3,554
Computer and test equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross		162,388	148,995
Office furniture and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross		3,460	3,880
Leasehold and building improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross		14,865	14,366
Land and Building
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 30,900
Accumulated depreciation and amortization	(17,900)
Proceeds from sale of land and building	14,600
Gain (Loss) on Disposition of Property Plant Equipment	$ 1,600
Lease term	8 years
Restructuring
Property, Plant and Equipment [Line Items]
Depreciation expense			1,500
China
Property, Plant and Equipment [Line Items]
Property and equipment, net		10,617	$ 14,998
Held-for-sale \| China \| Buildings
Property, Plant and Equipment [Line Items]
Property and equipment, net		$ 2,200

Business Combinations and Goodwill Consideration (Details) - Silicon Image, Inc $ in Thousands	Mar. 10, 2015 USD ($)
Business Acquisition [Line Items]
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

Business Combinations and Goodwill (Allocation of the Purchase Price) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Apr. 02, 2016	Jan. 02, 2016	Mar. 10, 2015	Dec. 04, 2014
Business Acquisition [Line Items]
Goodwill	$ 269,758		$ 267,549
Redeemable noncontrolling interest			$ 7,600
Silicon Image, Inc
Business Acquisition [Line Items]
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	$ 238,000			237,608
Total assets acquired				671,311
Accounts payable and other accrued liabilities				47,735
Other current liabilities				1,252
Long-term liabilities		$ 2,100		26,675
Redeemable noncontrolling interest				7,172	$ 7,000
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 $ in Thousands	Mar. 10, 2015 USD ($)
Business Acquisition [Line Items]
Intangible assets	$ 157,079
Total identified intangible assets	192,079
Developed technology
Business Acquisition [Line Items]
Intangible assets	125,000
Customer relationships
Business Acquisition [Line Items]
Intangible assets	29,458
Licensed technology
Business Acquisition [Line Items]
Intangible assets	$ 1,852
Patents
Business Acquisition [Line Items]
Asset Life in Years	5 years
Intangible assets	$ 769
In-process research and development
Business Acquisition [Line Items]
In-process research and development	$ 35,000
Minimum \| Developed technology
Business Acquisition [Line Items]
Asset Life in Years	3 years
Minimum \| Customer relationships
Business Acquisition [Line Items]
Asset Life in Years	4 years
Minimum \| Licensed technology
Business Acquisition [Line Items]
Asset Life in Years	3 years
Maximum \| Developed technology
Business Acquisition [Line Items]
Asset Life in Years	5 years
Maximum \| Customer relationships
Business Acquisition [Line Items]
Asset Life in Years	7 years
Maximum \| Licensed technology
Business Acquisition [Line Items]
Asset Life in Years	5 years

Business Combinations and Goodwill (Pro Forma Financial Information) (Details) (Details) - Silicon Image, Inc - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Business Acquisition [Line Items]
Total revenues	$ 450,867	$ 624,179
Net (loss) income attributable to stockholders	$ (147,436)	$ 10,376
Basic net (loss) income per share (usd per share)	$ (1.26)	$ 0.09
Diluted net (loss) income per share (usd per share)	$ (1.26)	$ 0.09

Business Combinations and Goodwill (Narrative) (Details) - USD ($)		10 Months Ended	12 Months Ended
	Mar. 10, 2015	Jan. 02, 2016	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015	Apr. 02, 2016	Dec. 04, 2014
Business Acquisition [Line Items]
Goodwill impairment			$ 0		$ 0
Goodwill		$ 267,549,000	269,758,000	$ 267,549,000
Silicon Image, Inc
Business Acquisition [Line Items]
Interests acquired	100.00%						7.00%
Long-term liabilities	$ 26,675,000					$ 2,100,000
Revenue of acquiree since acquisition date, actual		135,600,000
Net loss of acquiree since acquisition date, actual		77,000,000
Acquisition related costs		$ 8,200,000
Goodwill	237,608,000		238,000,000
Fair value of partially vested stock options and RSUs assumed	$ 5,139,000
Prior Acquisitions
Business Acquisition [Line Items]
Goodwill			$ 45,000,000
Scenario, Adjustment \| Silicon Image, Inc
Business Acquisition [Line Items]
Acquisition related costs				30,600,000
Qterics
Business Acquisition [Line Items]
Goodwill impairment				$ 13,000,000

Intangible Assets (Intangible Assets) (Details) - USD ($) $ in Thousands		3 Months Ended	12 Months Ended
	Mar. 10, 2015	Oct. 01, 2016	Dec. 31, 2016	Jan. 02, 2016
Finite-Lived Intangible Assets [Line Items]
Total identified finite-lived Intangible assets, net of amortization			$ 96,522
Impairment		$ (7,900)
Total identified intangible assets, net of amortization			118,863	$ 162,583
SiliconBlue Technologies Ltd. and Silicon Image, Inc
Finite-Lived Intangible Assets [Line Items]
Total identified finite-lived intangible assets, gross			175,055	175,854
Total identified intangible assets, gross			197,396	210,854
Total identified finite-lived Intangible assets, net of amortization			96,522	127,583
Impairment			(7,866)	(8,995)
Accumulated Amortization			(70,667)	(39,276)
Total identified intangible assets, net of amortization			118,863	$ 162,583
SiliconBlue Technologies Ltd. and Silicon Image, Inc \| Developed technology
Finite-Lived Intangible Assets [Line Items]
Asset Life in Years	4 years 8 months 12 days			4 years 8 months 12 days
Total identified finite-lived intangible assets, gross			141,359	$ 135,700
Total identified finite-lived Intangible assets, net of amortization			85,866	103,460
Impairment			0	(3,856)
Accumulated Amortization			(55,493)	$ (28,384)
SiliconBlue Technologies Ltd. and Silicon Image, Inc \| Customer relationships
Finite-Lived Intangible Assets [Line Items]
Asset Life in Years	6 years 1 month 6 days			5 years 6 months
Total identified finite-lived intangible assets, gross			30,800	$ 37,258
Total identified finite-lived Intangible assets, net of amortization			9,240	21,963
Impairment			(7,866)	(5,139)
Accumulated Amortization			(13,694)	$ (10,156)
SiliconBlue Technologies Ltd. and Silicon Image, Inc \| Licensed technology
Finite-Lived Intangible Assets [Line Items]
Asset Life in Years	3 years 3 months 18 days			2 years 6 months
Total identified finite-lived intangible assets, gross			2,127	$ 2,127
Total identified finite-lived Intangible assets, net of amortization			926	1,517
Impairment			0	0
Accumulated Amortization			(1,201)	$ (610)
SiliconBlue Technologies Ltd. and Silicon Image, Inc \| Patents
Finite-Lived Intangible Assets [Line Items]
Asset Life in Years	5 years			5 years
Total identified finite-lived intangible assets, gross			769	$ 769
Total identified finite-lived Intangible assets, net of amortization			490	643
Impairment			0	0
Accumulated Amortization			(279)	(126)
In-process research and development \| SiliconBlue Technologies Ltd. and Silicon Image, Inc
Finite-Lived Intangible Assets [Line Items]
In-process research and development			22,341	35,000
Impairment			$ 0	$ 0

Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	$ 34,320	$ 29,580	$ 2,948
SiliconBlue Technologies Ltd. and Silicon Image, Inc
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	33,575	28,849	2,948
Research and development \| SiliconBlue Technologies Ltd. and Silicon Image, Inc
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	$ 745	$ 731	$ 0

Intangible Assets (Intangible Assets, Amortization Expense) (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2017	$ 33,759
2018	27,877
2019	25,093
2020	7,145
2021	2,547
Thereafter	101
Total	$ 96,522

Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Oct. 01, 2016	Jan. 02, 2016	Dec. 31, 2016	Jan. 02, 2016
Finite-Lived Intangible Assets [Line Items]
Impairment	$ 7,900
SiliconBlue Technologies Ltd. and Silicon Image, Inc
Finite-Lived Intangible Assets [Line Items]
Impairment			$ 7,866	$ 8,995
SiliconBlue Technologies Ltd. and Silicon Image, Inc \| Developed technology
Finite-Lived Intangible Assets [Line Items]
Impairment			0	3,856
SiliconBlue Technologies Ltd. and Silicon Image, Inc \| Customer relationships
Finite-Lived Intangible Assets [Line Items]
Impairment			$ 7,866	$ 5,139
Qterics \| Disposal Group, Disposed of by Sale
Finite-Lived Intangible Assets [Line Items]
Impairment		$ 9,000
Qterics \| Disposal Group, Disposed of by Sale \| Developed technology
Finite-Lived Intangible Assets [Line Items]
Impairment		3,900
Qterics \| Disposal Group, Disposed of by Sale \| Customer relationships
Finite-Lived Intangible Assets [Line Items]
Impairment		$ 5,100

Impairment of Goodwill and Intangible Assets (Details)	3 Months Ended	12 Months Ended
Impairment of Goodwill and Intangible Assets (Details)	Oct. 01, 2016 USD ($)	Dec. 31, 2016 USD ($) segment	Jan. 02, 2016 USD ($) segment	Jan. 03, 2015 USD ($)
Finite-Lived Intangible Assets [Line Items]
Number of operating units \| segment		1	2
Number of reportable segment \| segment		1	2
Impairment of goodwill and intangible assets		$ 7,866,000	$ 21,655,000	$ 0
Impairment	$ 7,900,000
SiliconBlue Technologies Ltd. and Silicon Image, Inc
Finite-Lived Intangible Assets [Line Items]
Impairment of goodwill and intangible assets			12,700,000
Impairment		7,866,000	8,995,000
SiliconBlue Technologies Ltd. and Silicon Image, Inc \| Developed technology
Finite-Lived Intangible Assets [Line Items]
Impairment		0	3,856,000
SiliconBlue Technologies Ltd. and Silicon Image, Inc \| Customer relationships
Finite-Lived Intangible Assets [Line Items]
Impairment		7,866,000	5,139,000
Lattice
Finite-Lived Intangible Assets [Line Items]
Impairment of goodwill and intangible assets		$ 0	$ 0
Qterics
Finite-Lived Intangible Assets [Line Items]
Goodwill and Intangible Asset Impairment, Percent			92.00%

Equity Method Investment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended	12 Months Ended			24 Months Ended
Equity Method Investment (Details) - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016	Oct. 03, 2015	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015	Dec. 31, 2016
Schedule of Equity Method Investments [Line Items]
Payments to acquire securities non-marketable securities			$ 3,000
Cost method investment, ownership percentage			15.80%
Equity method investment, ownership percentage				22.70%			22.70%
Payments to acquire equity method investments	$ 1,000	$ 2,000		$ 1,000	$ 5,000	$ 0
Equity Method Investment Activities [Roll Forward]
Equity method investments, Beginning Balance	6,000	4,508			4,508	0
Investment made during fiscal year	$ 1,000	$ 2,000		1,000	5,000	0
Equity in net loss of an unconsolidated affiliate, net of tax				(1,459)	(492)	$ 0	$ (2,000)
Equity method investments, Ending Balance			$ 0	4,508	$ 0		0
Other Noncurrent Assets
Equity Method Investment Activities [Roll Forward]
Equity method investments, Beginning Balance				$ 4,049			$ 4,049

Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Payables and Accruals [Abstract]
Trade accounts payable	$ 37,800	$ 18,616
Payable to members of the HDMI and MHL consortia	9,698	16,643
Other accrued expenses	33,435	39,039
Total accounts payable and accrued expenses	$ 80,933	$ 74,298

Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands		3 Months Ended	12 Months Ended
	Mar. 10, 2015	Jan. 02, 2016	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015	Dec. 04, 2014
Business Acquisition [Line Items]
Redeemable noncontrolling interest		$ 7,600		$ 7,600
Redeemable noncontrolling interest, maximum estimated fair value			$ 21,000
Noncontrolling interest, redemption price as percentage of fair Value			130.00%
Redeemable noncontrolling interest, redemption period	3 years
Period increase of noncontrolling interest				400
Cash paid to redeem noncontrolling interest		$ 900	$ 0	867	$ 0
Redemption of noncontrolling interest, net of previous accretion to redemption value.				$ 6,700
Silicon Image, Inc
Business Acquisition [Line Items]
Interests acquired	100.00%					7.00%
Redeemable noncontrolling interest	$ 7,172					$ 7,000
Fair value of redeemable noncontrolling interest	$ 7,200

Lease Obligations (Details) - USD ($) $ in Thousands	12 Months Ended
Lease Obligations (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Leases [Abstract]
Rental expense under operating leases	$ 9,500	$ 7,400	$ 4,500
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2017	7,220
2018	5,890
2019	4,559
2020	4,528
2021	4,583
Thereafter	18,965
Total future minimum lease commitments	$ 45,745

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Results of Operations, Income before Income Taxes [Abstract]
Domestic	$ (32,503)	$ (92,737)	$ 6,292
Foreign	(10,220)	(33,464)	36,649
(Loss) income before income taxes and equity in net loss of an unconsolidated affiliate	(42,723)	(126,201)	42,941
Current:
Federal	1,896	968	329
State	13	80	5
Foreign	7,918	10,634	1,944
Current income tax (provision) benefit	9,827	11,682	2,278
Deferred:
Federal	0	18,713	(7,416)
State	0	2,318	(513)
Foreign	90	(173)	12
Deferred income tax (provision) benefit	90	20,858	(7,917)
Income tax expense (benefit)	$ 9,917	$ 32,540	$ (5,639)
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract]
Statutory federal rate	35.00%	35.00%	35.00%
State taxes, net	(7.00%)	6.00%	1.00%
Research and development credits	2.00%	3.00%	(9.00%)
Stock compensation	(3.00%)	(1.00%)	1.00%
Foreign rate differential	(14.00%)	(12.00%)	(25.00%)
Foreign dividends	0.00%	(5.00%)	1.00%
Foreign withholding taxes	(9.00%)	(3.00%)	0.00%
Capital loss expiration	0.00%	0.00%	7.00%
Other permanent	(3.00%)	(4.00%)	0.00%
Goodwill impairment	0.00%	(4.00%)	0.00%
Valuation allowance	(17.00%)	(46.00%)	(23.00%)
Change in uncertain tax benefit accrual	(5.00%)	8.00%	1.00%
Tax rate change	0.00%	(3.00%)	(4.00%)
Other	(2.00%)	0.00%	2.00%
Effective income tax rate	(23.00%)	(26.00%)	(13.00%)

Income Taxes (Discussion of Valuation Allowance and Net Deferred Tax Assets) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jan. 03, 2015	Dec. 31, 2016	Jan. 02, 2016
Valuation Allowance [Line Items]
Resulting tax benefit from realization of the benefit of a portion of remaining deferred tax assets	$ 11,500
Resulting net deferred tax asset			$ 21,300
Increase in valuation allowance		$ 7,500	21,000
Deferred tax assets:
Accrued expenses and reserves		5,143	5,690
Inventory		290	303
Deferred Revenue		426	3,177
Stock-based and deferred compensation		7,269	7,674
Intangible assets		20,063	16,959
Fixed assets		678	0
Net operating loss carry forwards		137,521	131,829
Tax credit carry forwards		89,174	87,909
Capital loss carry forwards		962	1,262
Other		2,975	2,458
Gross deferred tax assets		264,501	257,261
Less: valuation allowance		(260,687)	(252,578)
Net deferred tax assets		3,814	4,683
Deferred tax liabilities
Fixed Assets		0	791
Other		3,746	3,734
Total deferred tax liabilities		3,746	4,525
Net deferred tax assets		68	$ 158
Do not expire
Valuation Allowance [Line Items]
Tax credit carryforwards		55,500
Federal
Valuation Allowance [Line Items]
Operating loss carryforwards		367,000
Tax credit carryforwards		49,200
State
Valuation Allowance [Line Items]
Operating loss carryforwards		193,300
Tax credit carryforwards		$ 56,700

Income Taxes (Discussion of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015	Dec. 31, 2016	Jan. 02, 2016
Income Tax Contingency [Line Items]
Undistributed earnings of our Chinese subsidiary				$ 3,000
Unrecognized tax benefits associated with uncertain tax positions	$ 48,207	$ 18,673	$ 22,643	47,623	$ 48,207
Unrecognized tax benefits associated with uncertain tax positions that, if recognized, would affect the effective tax rate				44,500
Interest and penalties associated with unrecognized tax benefits				7,500
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Beginning balance	48,207	18,673	22,643
Additions based on tax positions related to the current year	2,573	4,381	770
Additions based on tax positions of prior years	530	0	0
Additions due to acquisition	0	41,083
Reduction for tax positions of prior years	(1,824)	(14,958)	(4,673)
Settlements	0	0	0
Reduction as a result of lapse of applicable statute of limitations	(1,863)	(972)	(67)
Ending balance	$ 47,623	$ 48,207	$ 18,673
Expiration of statutes of limitations \| Foreign tax filings
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Amount of unrecognized tax benefits that could significantly change during the next twelve months				2,200
Expiration of statutes of limitations \| Foreign tax filings \| Maximum
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Amount of associated interest and penalties that could significantly change within the next twelve months				100
Other Long-term Liabilities
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Liability for uncertain tax positions				$ 29,600	$ 26,900

Restructuring (Details) - USD ($) $ in Thousands	12 Months Ended
Restructuring (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Restructuring Reserve [Roll Forward]
Beginning Balance	$ 5,078	$ 182	$ 532
Restructuring charges	9,267	19,239	10
Costs paid or otherwise settled	(12,471)	(14,343)	(367)
Adjustments to prior restructuring costs			7
Ending Balance	1,874	5,078	182
Severance and related
Restructuring Reserve [Roll Forward]
Beginning Balance	3,696	0	17
Restructuring charges	2,883	12,861	0
Costs paid or otherwise settled	(5,778)	(9,165)	(8)
Adjustments to prior restructuring costs			(9)
Ending Balance	801	3,696	0
Lease termination
Restructuring Reserve [Roll Forward]
Beginning Balance	1,005	43	368
Restructuring charges	2,993	2,667	1
Costs paid or otherwise settled	(2,962)	(1,705)	(341)
Adjustments to prior restructuring costs			15
Ending Balance	1,036	1,005	43
Software Contracts & Engineering Tools
Restructuring Reserve [Roll Forward]
Beginning Balance	377	0	0
Restructuring charges	1,903	3,040	0
Costs paid or otherwise settled	(2,255)	(2,663)	0
Adjustments to prior restructuring costs			0
Ending Balance	25	377	0
Other
Restructuring Reserve [Roll Forward]
Beginning Balance	0	139	147
Restructuring charges	1,488	671	9
Costs paid or otherwise settled	(1,476)	(810)	(18)
Adjustments to prior restructuring costs			1
Ending Balance	$ 12	$ 0	$ 139

Restructuring Narrative (Details) - USD ($)	3 Months Ended								12 Months Ended
Restructuring Narrative (Details) - USD ($)	Dec. 31, 2016	Oct. 01, 2016	Jul. 02, 2016	Apr. 02, 2016	Jan. 02, 2016	Oct. 03, 2015	Jul. 04, 2015	Apr. 04, 2015	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 951,000	$ 317,000	$ 2,568,000	$ 5,431,000	$ 3,459,000	$ 6,818,000	$ 4,068,000	$ 4,894,000	$ 9,267,000	$ 19,239,000	$ 17,000
March 2015 Plan
Restructuring Cost and Reserve [Line Items]
Restructuring charges									7,300,000	13,300,000
Restructuring cost incurred to date	20,600,000								20,600,000
September 2015 Reduction
Restructuring Cost and Reserve [Line Items]
Restructuring charges									2,000,000	5,900,000
Restructuring cost incurred to date	7,900,000								7,900,000
Total expected restructuring cost	8,000,000								8,000,000
Prior Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring charges									0
Maximum
Restructuring Cost and Reserve [Line Items]
Total expected restructuring cost	$ 21,000,000								$ 21,000,000
Maximum \| Prior Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring charges										$ 100,000	$ 100,000

Long-Term Debt (Debt Schedule) (Details) - USD ($)	12 Months Ended
Long-Term Debt (Debt Schedule) (Details) - USD ($)	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015	Mar. 10, 2015
Debt Instrument [Line Items]
Principal amount	$ 342,221,000
Contractual interest	18,518,000	$ 15,225,000	$ 0
Amortization of debt issuance costs and discount	1,350,000	2,835,000	0
Total Interest expense related to the Term Loan	19,868,000	18,060,000	$ 0
Line of Credit \| Term Loan
Debt Instrument [Line Items]
Principal amount	342,221,000	347,375,000		$ 350,000,000
Unamortized original issue discount and debt issuance costs	(7,599,000)	(8,948,000)		$ (3,500,000)
Less: Current portion of long-term debt	(33,767,000)	(7,557,000)
Long-term debt	$ 300,855,000	$ 330,870,000

Long-Term Debt (Future Principal Payments) (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Debt Disclosure [Abstract]
2017	$ 35,996
2018	20,813
2019	52,583
2020	89,113
2021	143,716
Principal amount	$ 342,221

Long-Term Debt (Narrative) (Details) - USD ($)			3 Months Ended	12 Months Ended
Long-Term Debt (Narrative) (Details) - USD ($)	Feb. 15, 2017	Mar. 10, 2015	Jul. 02, 2016	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Debt Instrument [Line Items]
Principal amount				$ 342,221,000
Repayment of debt				$ (5,154,000)	$ (2,625,000)	$ 0
Annual excess cash flow payments				95 days
Repayments of debt			$ 1,700,000
Increase to current portion of long-term debt				$ 33,767,000	7,557,000
Line of Credit \| Term Loan
Debt Instrument [Line Items]
Principal amount		$ 350,000,000		342,221,000	347,375,000
Repayment of debt		346,500,000
Unamortized original issue discount and debt issuance costs		3,500,000		7,599,000	$ 8,948,000
Debt issuance cost		$ 8,300,000
Interest rate, effective percentage		6.20%
Periodic payment				$ 900,000
Payment, percentage				75.00%
Line of Credit \| Term Loan \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate, minimum		1.00%
Basis spread on variable rate		4.25%
Minimum \| Line of Credit \| Term Loan
Debt Instrument [Line Items]
Payment, percentage				0.00%
Maximum \| Line of Credit \| Term Loan
Debt Instrument [Line Items]
Payment, percentage				75.00%
Subsequent Event [Member]
Debt Instrument [Line Items]
Increase to current portion of long-term debt	$ 17,900,000
Principal payments required next twelve months in addition to quarterly payments	$ 32,500,000

Common Stock Repurchase Program (Details) - Stock repurchase program authorized on March 3, 2014 - USD ($) shares in Millions	3 Months Ended	12 Months Ended
	Apr. 04, 2015	Jan. 03, 2015	Mar. 03, 2014
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount			$ 20,000,000.0
Number of shares repurchased	1.1	1.9
Value of shares repurchased	$ 7,000,000	$ 13,100,000

Stockholders' Equity (Narrative) (Details) $ / shares in Units, $ in Thousands		9 Months Ended	12 Months Ended
	Mar. 10, 2015 $ / shares shares	Oct. 03, 2015	Dec. 31, 2016 USD ($) plan $ / shares shares	Jan. 02, 2016 USD ($) $ / shares shares	Jan. 03, 2015 USD ($) tranch $ / shares shares	May 31, 2012 shares
Class of Stock [Line Items]
Number of equity incentive plans \| plan			4
Contractual terms of options granted			2 years
Compensation expense \| $			$ 16,213	$ 21,643	$ 12,802
Conversion ratio	1.09816
Number of outstanding option			12,566,000	11,444,000
Cash used to settle awards \| $				$ 3,900
Total unrecognized compensation cost related to unvested employee and director stock options \| $			$ 11,000
Total intrinsic value of options exercised \| $			3,300	2,500	7,800
Total fair value of options and RSU's vested and expensed \| $			$ 15,600	$ 18,000	$ 12,800
Grant date weighted average fair values based on fair value assumptions, options \| $ / shares			$ 2.14	$ 2.35	$ 2.93
Grant date weighted average fair values based on fair assumptions, non-options \| $ / shares			$ 1.82	$ 1.51	$ 1.73
Granted, Shares			3,907,000
Award vesting comparison period			2 years
1996 Stock Incentive Plan and the 2001 Stock Plan
Class of Stock [Line Items]
Number of shares available for future awards			0
2012 ESPP
Class of Stock [Line Items]
Number of shares available for future awards			1,900,000
Number of shares authorized						3,000,000
Percentage of employee's compensation maximum for employee share purchases			10.00%
Purchase price of shares as percentage of fair market value			85.00%
2013 Incentive Plan and the 2011 Non-Employee Director Equity Incentive Plan
Class of Stock [Line Items]
Number of shares available for future awards			1,300,000
Stock options
Class of Stock [Line Items]
Award vesting period			4 years
Number of outstanding option	2,087,605		787,130
Weighted average period for recognition			2 years 7 months 17 days
Performance Shares
Class of Stock [Line Items]
Award vesting period			2 years
Compensation expense \| $			$ 800	$ 600
Granted, Shares			321,900	327,200
Awards canceled, Shares			21,540
Number of options outstanding			596,600
Restricted Stock Units (RSUs)
Class of Stock [Line Items]
Award vesting period			4 years
Compensation expense \| $					$ 700
Stock conversion offer price \| $ / shares	$ 7.30
Number of outstanding option	2,025,255		228,659
Grant date weighted average fair values based on fair assumptions, non-options \| $ / shares			$ 5.64
Unrecognized compensation expense related to unvested RSU's \| $			$ 16,200
Granted, Shares				70,000	98,600
Awards canceled, Shares			70,000
Number of tranches in award grants \| tranch					2
Maximum
Class of Stock [Line Items]
Contractual terms of options granted		10 years
Maximum \| 2012 ESPP
Class of Stock [Line Items]
Compensation expense \| $			$ 600	$ 400	$ 300
Maximum \| Performance Shares
Class of Stock [Line Items]
Award vesting percentage			200.00%
Minimum \| Performance Shares
Class of Stock [Line Items]
Award vesting percentage			0.00%

Stockholders' Equity (Stock-based Compensation Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 16,213	$ 21,643	$ 12,802
Cost of products sold
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	888	1,416	819
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	7,928	9,141	5,176
Selling, general, and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	7,397	6,793	6,807
Acquisition related charges
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 0	$ 4,293	$ 0

Stockholders' Equity (Employee and Director Stock Options, Restricted Stock and ESPP) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Total unrecognized compensation cost related to unvested employee and director stock options	$ 11,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Beginning balance, Shares	11,444,000
Granted, Shares	3,907,000
Exercised, Shares	(1,466,000)
Forfeited or expired, Shares	(1,319,000)
Ending balance, Shares	12,566,000	11,444,000
Vested and expected to vest at end of period, Shares	12,566,000
Exercisable at end of period, Shares	6,876,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Beginning balance, Dollars per Share	$ 5.46
Granted, Dollars per Share	5.65
Exercised, Dollars per Share	3.91
Forfeited or expired, Dollars per Share	5.47
Ending balance, Dollars per Share	5.70	$ 5.46
Vested and expected to vest at end of period, Weighted average exercise price, Dollars per Share	5.70
Exercisable at end of period, Weighted average exercise price, Dollars per Share	$ 5.65
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract]
Vested and expected to vest at end of period, Weighted average remaining contractual term	4 years 4 months 20 days
Vested and expected to vest at end of period, aggregate intrinsic value	$ 20,966
Exercisable at end of period, Weighted average remaining contractual term	3 years 1 month 25 days
Exercisable at end of period, aggregate intrinsic value	$ 11,851
Total intrinsic value of options exercised	3,300	$ 2,500	$ 7,800
Total fair value of options and RSU's vested and expensed	$ 15,600	$ 18,000	$ 12,800
Grant date weighted average fair values based on fair value assumptions, options	$ 2.14	$ 2.35	$ 2.93
Grant date weighted average fair values based on fair assumptions, non-options	1.82	1.51	1.73
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Granted, Weighted average grant date fair value	$ 1.82	$ 1.51	$ 1.73
Compensation expense	$ 16,213	$ 21,643	$ 12,802
Stock options
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected volatility, percent, minimum	44.20%	43.60%	45.40%
Expected volatility, percent, maximum	50.80%	47.30%	50.40%
Risk-free interest rate, percent, minimum	0.94%	1.40%	1.50%
Risk-free interest rate, percent, maximum	2.06%	1.70%	1.70%
Dividend yield	0.00%	0.00%	0.00%
Weighted average period for recognition	2 years 7 months 17 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Ending balance, Shares	787,130
Stock options \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected term (years)	4 years 22 days	4 years 1 month	4 years 1 month 6 days
Stock options \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected term (years)	4 years 9 months 12 days	4 years 9 months	4 years 8 months 12 days
ESPP
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected term (years)	6 months	6 months	6 months
Dividend yield	0.00%	0.00%	0.00%
Weighted average expected volatility rate (percent)	57.90%	33.60%	38.70%
Risk-free interest rate	0.43%	0.12%	0.08%
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected term (years)		2 years	2 months 27 days
Dividend yield		0.00%	0.00%
Risk-free interest rate		0.60%	2.20%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Granted, Shares		70,000	98,600
Ending balance, Shares	228,659
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract]
Grant date weighted average fair values based on fair assumptions, non-options	$ 5.64
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Balance at the beginning of period, Shares	4,757,000
Granted, Shares	1,376,000
Vested, Shares	(1,742,000)
Forfeited, Shares	(1,144,000)
Balance at the end of period, Shares	3,247,000	4,757,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Balance at the beginning of period, Weighted average grant date fair value	$ 5.95
Granted, Weighted average grant date fair value	5.64
Vested, Weighted average grant date fair value	5.97
Forfeited, Weighted average grant date fair value	5.68
Balance at the end of period, Weighted average grant date fair value	$ 5.90	$ 5.95
Unrecognized compensation expense related to unvested RSU's	$ 16,200
Compensation expense			$ 700

Stockholders' Equity (Valuation of Stock Options and RSUs with a Market Condition) (Details)	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	46.00%
Risk-free interest rate	1.10%	1.40%
Expected term (years)	4 years 6 months	4 years 6 months
Dividend yield	0.00%	0.00%
Expected volatility, percent, minimum	44.00%
Expected volatility, percent, maximum	46.00%
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility		36.90%	53.50%
Risk-free interest rate		0.60%	2.20%
Expected term (years)		2 years	2 months 27 days
Dividend yield		0.00%	0.00%

Employee Benefit Plans (Details) - USD ($)	12 Months Ended
Employee Benefit Plans (Details) - USD ($)	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Compensation Related Costs [Abstract]
Employer matching contribution to a 401(k) plan	$ 900,000	$ 900,000	$ 0
2016 Cash Incentive Plan
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Cash incentive plan expense	$ 4,700,000
2015 Cash Incentive Plan
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Cash incentive plan expense		$ 1,000,000
2014 Cash Incentive Plan
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Cash incentive plan expense			$ 11,600,000

Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	$ 253,569	$ 142,171	$ 151,406
Balance received through acquisition	0	52,617	0
Charged (Credit) to costs and expenses	15,028	58,373	(9,877)
Charged to other accounts	2,943	413	645
Settlements & write-offs net of recoveries	(1,202)	(5)	(3)
Balance at end of period	270,338	253,569	142,171
Allowance for deferred taxes
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	252,578	141,215	150,528
Balance received through acquisition	0	52,481	0
Charged (Credit) to costs and expenses	7,450	58,658	(9,958)
Charged to other accounts	659	224	645
Settlements & write-offs net of recoveries	0	0	0
Balance at end of period	260,687	252,578	141,215
Allowance for doubtful accounts
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	621	875	878
Balance received through acquisition	0	0	0
Charged (Credit) to costs and expenses	7,362	(438)	0
Charged to other accounts	2,284	189	0
Settlements & write-offs net of recoveries	(968)	(5)	(3)
Balance at end of period	9,299	621	875
Allowance for warranty expense
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	370	81	0
Balance received through acquisition	0	136	0
Charged (Credit) to costs and expenses	216	153	81
Charged to other accounts	0	0	0
Settlements & write-offs net of recoveries	(234)	0	0
Balance at end of period	$ 352	$ 370	$ 81

Segment and Geographic Information (Narrative) (Details) $ in Millions	1 Months Ended	12 Months Ended
	Apr. 30, 2016 USD ($)	Dec. 31, 2016 segment	Jan. 02, 2016 segment
Segment Reporting Information [Line Items]
Number of operating units \| segment		1	2
Qterics
Segment Reporting Information [Line Items]
Net proceeds from disposal group	$ 2.0
Gain on disposal	$ 2.6

Segment and Geographic Information (Revenue by Major Geographic Area) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 427,054	$ 405,966	$ 366,127
Total revenue, percent	100.00%	100.00%	100.00%
United States:
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 51,752	$ 33,677	$ 30,848
Total revenue, percent	12.00%	8.00%	8.00%
Total foreign revenue
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 375,302	$ 372,289	$ 335,279
Total revenue, percent	88.00%	92.00%	92.00%
China
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 146,645	$ 147,688	$ 159,155
Total revenue, percent	34.00%	36.00%	43.00%
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 59,835	$ 55,596	$ 59,041
Total revenue, percent	14.00%	14.00%	16.00%
Japan
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 49,080	$ 44,067	$ 31,207
Total revenue, percent	12.00%	11.00%	9.00%
Taiwan
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 31,322	$ 31,181	$ 6,691
Total revenue, percent	7.00%	8.00%	2.00%
Other Asia
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 78,046	$ 85,598	$ 69,778
Total revenue, percent	18.00%	21.00%	19.00%
Other Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 10,374	$ 8,159	$ 9,407
Total revenue, percent	3.00%	2.00%	3.00%

Segment and Geographic Information (Property and Equipment, Net by Country) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, less accumulated depreciation of $134,786 at December 31, 2016 and $118,943 at January 2, 2016	$ 49,481	$ 51,852
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, less accumulated depreciation of $134,786 at December 31, 2016 and $118,943 at January 2, 2016	30,532	25,615
China
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, less accumulated depreciation of $134,786 at December 31, 2016 and $118,943 at January 2, 2016	10,617	14,998
Philippines
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, less accumulated depreciation of $134,786 at December 31, 2016 and $118,943 at January 2, 2016	4,928	3,948
Taiwan
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, less accumulated depreciation of $134,786 at December 31, 2016 and $118,943 at January 2, 2016	2,310	3,677
India
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, less accumulated depreciation of $134,786 at December 31, 2016 and $118,943 at January 2, 2016	215	1,470
Japan
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, less accumulated depreciation of $134,786 at December 31, 2016 and $118,943 at January 2, 2016	637	1,211
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, less accumulated depreciation of $134,786 at December 31, 2016 and $118,943 at January 2, 2016	242	933
Foreign
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, less accumulated depreciation of $134,786 at December 31, 2016 and $118,943 at January 2, 2016	$ 18,949	$ 26,237

Segment and Geographic Information (Revenue by Primary Distributor) (Details)	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Revenue, Major Customer [Line Items]
Revenue from all sell-through distributors	61.00%	45.00%	45.00%
Arrow Electronics Inc.
Revenue, Major Customer [Line Items]
Revenue from all sell-through distributors	24.00%	20.00%	24.00%
Weikeng Group
Revenue, Major Customer [Line Items]
Revenue from all sell-through distributors	22.00%	12.00%	10.00%
All others
Revenue, Major Customer [Line Items]
Revenue from all sell-through distributors	15.00%	13.00%	11.00%

Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Oct. 01, 2016	Jul. 02, 2016	Apr. 02, 2016	Jan. 02, 2016	Oct. 03, 2015	Jul. 04, 2015	Apr. 04, 2015	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Quarterly Financial Information Disclosure [Abstract]
Revenue	$ 118,108	$ 113,225	$ 99,209	$ 96,512	$ 101,194	$ 109,715	$ 106,460	$ 88,597	$ 427,054	$ 405,966	$ 366,127
Gross margin	63,480	67,424	58,426	57,104	54,102	59,849	58,126	47,832
Restructuring charges	951	317	2,568	5,431	3,459	6,818	4,068	4,894	9,267	19,239	17
Net loss	$ (8,164)	$ (12,414)	$ (13,810)	$ (19,711)	$ (45,454)	$ (24,862)	$ (35,570)	$ (53,347)	$ (54,099)	$ (159,233)	$ 48,580
Net loss per share - basic and diluted (in dollars per share)	$ (0.07)	$ (0.10)	$ (0.12)	$ (0.17)	$ (0.38)	$ (0.21)	$ (0.30)	$ (0.46)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details