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Three Months Ended

April 1, 2017

April 2, 2016

Revenue attributable to top five end customers

Revenue attributable to largest end customer

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Apr. 01, 2017	May 09, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	LATTICE SEMICONDUCTOR CORP
Entity Central Index Key	0000855658
Document Type	10-Q
Document Period End Date	Apr. 01, 2017
Amendment Flag	false
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding (actual number)		122,180,894

Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Income Statement [Abstract]
Product	$ 92,669	$ 88,223
Licensing and services	11,918	8,289
Total revenue	104,587	96,512
Costs and expenses:
Cost of product revenue	41,614	39,007
Cost of licensing and services revenue	2,141	401
Research and development	27,389	32,608
Selling, general, and administrative	23,905	23,608
Amortization of acquired intangible assets	8,514	8,721
Restructuring charges	66	5,431
Acquisition related charges	1,660	94
Total costs and expenses	105,289	109,870
Loss from operations	(702)	(13,358)
Interest expense	(5,568)	(4,960)
Other (expense) income, net	(148)	817
Loss before income taxes and equity in net loss of an unconsolidated affiliate	(6,418)	(17,501)
Income tax expense	518	1,900
Equity in net loss of an unconsolidated affiliate, net of tax	(339)	(310)
Net loss	$ (7,275)	$ (19,711)
Net loss per share, basic and diluted (in usd per shares)	$ (0.06)	$ (0.17)
Shares used in per share calculations, basic and diluted (in shares)	121,800	118,833

Consolidated Statement of Comprehensive Loss (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Statement of Comprehensive Income [Abstract]
Net loss	$ (7,275)	$ (19,711)
Other comprehensive loss:
Unrealized loss related to marketable securities, net of tax	(43)	(28)
Reclassification adjustment for losses related to marketable securities included in other (expense) income, net of tax	170	2
Translation adjustment, net of tax	274	237
Comprehensive loss	$ (6,874)	$ (19,500)

Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 97,451	$ 106,552
Short-term marketable securities	11,997	10,308
Accounts receivable, net of allowance for doubtful accounts	66,074	99,637
Inventories	77,775	79,168
Prepaid expenses and other current assets	19,660	19,035
Total current assets	272,957	314,700
Property and equipment, less accumulated depreciation of $127,221 at April 1, 2017 and $134,786 at December 31, 2016	48,780	49,481
Intangible assets, net of amortization	106,695	118,863
Goodwill	269,758	269,758
Deferred income taxes	384	372
Other long-term assets	12,802	13,709
Total assets	711,376	766,883
Current liabilities:
Accounts payable and accrued expenses (includes restructuring)	45,181	80,933
Accrued payroll obligations	8,159	9,865
Current portion of long-term debt	23,154	33,767
Deferred income and allowances on sales to sell-through distributors	29,537	32,257
Deferred licensing and services revenue	292	728
Total current liabilities	106,323	157,550
Long-term debt	301,621	300,855
Other long-term liabilities	35,937	38,048
Total liabilities	443,881	496,453
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; 121,999,000 shares issued and outstanding as of April 1, 2017 and 121,645,000 shares issued and outstanding as of December 31, 2016	1,220	1,216
Additional paid-in capital	684,605	680,315
Accumulated deficit	(414,575)	(406,945)
Accumulated other comprehensive loss	(3,755)	(4,156)
Total stockholders' equity	267,495	270,430
Total liabilities and stockholders' equity	$ 711,376	$ 766,883

Consolidated Balance Sheets (unaudited) (Parentheticals) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred stock, par value per share (in dollars per share)	$ 0.01000	$ 0.01000
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value per share (in dollars per share)	$ 0.01000	$ 0.01000
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	121,999,000	121,645,000
Common stock, shares outstanding	121,999,000	121,645,000
Accumulated depreciation	$ 127,221	$ 134,786

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Cash flows from operating activities:
Net loss	$ (7,275)	$ (19,711)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	15,296	17,331
Amortization of debt issuance costs and discount	933	241
Loss on sale or maturity of marketable securities	170	0
(Gain) loss on forward contracts	(78)	152
Stock-based compensation expense	3,843	4,556
Equity in net loss of an unconsolidated affiliate, net of tax	339	310
Changes in assets and liabilities:
Accounts receivable, net	33,563	4,072
Inventories	1,393	(6,702)
Prepaid expenses and other assets	1,137	1,457
Accounts payable and accrued expenses (includes restructuring)	(35,029)	17,881
Accrued payroll obligations	(1,706)	(3,448)
Income taxes payable	(1,765)	(101)
Deferred income and allowances on sales to sell-through distributors	(2,720)	6,907
Deferred income and allowances on sales to sell-through distributors	(436)	179
Net cash provided by operating activities	7,665	23,124
Cash flows from investing activities:
Proceeds from sales of and maturities of short-term marketable securities	5,700	5,997
Purchases of marketable securities	(7,420)	0
Capital expenditures	(3,374)	(5,700)
Cash paid for software licenses	(1,617)	(3,362)
Net cash used in investing activities	(6,711)	(3,065)
Cash flows from financing activities:
Restricted stock unit withholdings	(693)	(525)
Proceeds from issuance of common stock	1,144	1,117
Repayment of debt	(10,780)	(875)
Net cash used in financing activities	(10,329)	(283)
Effect of exchange rate change on cash	274	237
Net increase in cash and cash equivalents	(9,101)	20,013
Beginning cash and cash equivalents	106,552	84,606
Ending cash and cash equivalents	97,451	104,619
Supplemental cash flow information:
Change in unrealized gain (loss) related to marketable securities, net of tax, included in Accumulated other comprehensive loss	(43)	(28)
Income taxes paid, net of refunds	222	2,496
Interest paid	5,025	4,671
Accrued purchases of plant and equipment	$ 1,297	$ 1,494

Basis of Presentation and Significant Accounting Policies

3 Months Ended

Apr. 01, 2017

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies

The accompanying Consolidated Financial Statements are unaudited and have been prepared by Lattice Semiconductor Corporation (“Lattice,” the “Company,” “we,” “us,” or “our”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and in our opinion include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of results for the interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") have been condensed or omitted pursuant to such rules and regulations. These Consolidated Financial Statements should be read in conjunction with our audited financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016.

Fiscal Reporting Period

We report based on a 52 or 53-week fiscal year ending on the Saturday closest to December 31. Our first quarter of fiscal 2017 and first quarter of fiscal 2016 ended on April 1, 2017 and April 2, 2016, respectively. All references to quarterly or three months ended financial results are references to the results for the relevant 13-week fiscal period.

Principles of Consolidation and Presentation

The accompanying Consolidated Financial Statements include the accounts of Lattice and its subsidiaries after the elimination of all intercompany balances and transactions.

Use of Estimates

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

Cash Equivalents and Marketable Securities

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

Fair Value of Financial Instruments

We invest in various financial instruments, which may include corporate and government bonds, notes, and commercial paper. We value these instruments at their fair value and monitor 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. We did not have any Level 3 instruments during the periods presented.

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, details of which are presented in the following table:



	April 1, 2017		December 31, 2016
Total cost of contracts for Japanese yen (thousands)	$	2,323	$	2,323
Number of contracts	2		2
Settlement month	June 2017		June 2017

Although these hedges mitigate our foreign currency exchange rate exposure from an economic perspective, they were not designated as "effective" hedges for accounting purposes and as such are adjusted to fair value through Other (expense) income, net, with gains of approximately $0.1 million and approximately $0.2 million, respectively, for the fiscal quarters ended April 1, 2017 and December 31, 2016. We do not hold or issue derivative financial instruments for trading or speculative purposes.

Concentration Risk

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

Customer concentration risk may impact revenue. The percentage of total revenue attributable to our top five end customers and largest end customer is presented in the following table:

No other end customer accounted for more than 10% of total revenue during these periods.

Sales through distributors have historically accounted for a significant portion of our total revenue. Revenue attributable to resale of products by sell-through distributors as a percentage of total revenue is presented in the following table:

Our two largest distributor groups also account for a substantial portion of our trade receivables. At April 1, 2017 and December 31, 2016, one distributor group accounted for 42% and 38%, respectively, and the other accounted for 25% and 24%, respectively, of gross trade receivables. No other distributor group or end customer 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 at both April 1, 2017 and December 31, 2016. 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 recorded a full allowance on our accounts receivable, net of deferred revenue, from that distributor group, which accounts for $9.0 million of the allowance for doubtful accounts. Bad debt expense was negligible for both the first quarter of fiscal 2017 and the first quarter of 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 and changing from one foundry to another can have a significant cost.

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, and Accounts receivable, net is adjusted to reflect the final selling price.

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



(In thousands)	April 1, 2017			December 31, 2016
Inventory valued at published list prices and held by sell-through distributors with right of return	$	84,382		$	86,218
Allowance for distributor advances	(42,160		)	(37,090		)
Deferred cost of sales related to inventory held by sell-through distributors	(12,685		)	(16,871		)
Total Deferred income and allowances on sales to sell-through distributors	$	29,537		$	32,257

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 products sold, Deferred income and allowances on sales to sell-through distributors, and Net loss.

Licensing and Services Revenue

Our licensing and services revenue is comprised of revenue from our intellectual property ("IP") core licensing activity, patent monetization activities, 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. The contractual allocation formula is subject to periodic adjustment, generally every three years. The most recent agreement expired on December 31, 2016 and a new agreement has not yet been entered into covering the period January 1, 2017 and beyond. As a result the HDMI agent is unable to distribute royalties collected to Founders and, given the lack of evidence of an arrangement, we are unable to recognize HDMI royalty revenue for the three months ended April 1, 2017.

We acted as the agent of the HDMI consortium until December 31, 2016. From time to time, as the agent, we performed audits on 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.

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.

New Accounting Pronouncements

Recently Adopted Accounting Standards

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 or 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.” We adopted this ASU in the first quarter of 2017, and it did not have a material impact on our consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation, Improvements to Employee Share-Based Payment Accounting (Topic 718). This ASU simplifies several aspects of the accounting for share-based payment transactions, including accounting for income taxes, forfeitures, classification of awards as either equity or liabilities, statutory tax withholding requirements, and classification within the statement of cash flows. We adopted this ASU in the first quarter of fiscal 2017. As a result of the adoption of this ASU, we recognized deferred tax assets of $5.7 million for the excess tax benefits that arose directly from tax deductions related to equity compensation greater than amounts recognized for financial reporting and also recognized an increase of an equal amount in the valuation allowance against those deferred tax assets. The adoption of this ASU did not have any other material impacts on our consolidated financial statements.

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 early adopted this accounting standard in the first quarter of fiscal 2017 and recorded a nominal amount to accumulated deficit based on the guidance, as detailed in Note 10.

Recently Issued Accounting Standards

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. Based on our initial assessment, we believe the most significant impact of the new standard will be to accelerate the timing of revenue recognition on product shipments to our sell-through distributors (which accounted for approximately two-thirds of product revenue and approximately 60% of total revenue during both the first quarter of fiscal 2017 and the year ended December 31, 2016). Assuming all other revenue recognition criteria have been met, the new guidance would require us to recognize revenue and costs relating to such sales upon shipment to the distributor - subject to reductions for estimated reserves for price adjustments and returns - rather than upon the ultimate sale by the distributor to its end customer, as is our current practice.

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 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 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 per Share

3 Months Ended

Apr. 01, 2017

Earnings Per Share [Abstract]

Net Loss Per Share

Net Loss per Share

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

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



	Three Months Ended
(in thousands, except per share data)	April 1, 2017			April 2, 2016
Basic and diluted net loss	$	(7,275	)	$	(19,711	)
Shares used in basic and diluted net loss per share	121,800			118,833
Basic and diluted net loss per share	$	(0.06	)	$	(0.17	)

The computation of diluted net loss per share for the three months ended April 1, 2017 and April 2, 2016 excludes the effects of stock options, RSUs, and ESPP shares that are antidilutive, aggregating approximately the following number of shares:



	Three Months Ended
(in thousands)	April 1, 2017	April 2, 2016
Stock options, RSUs, and ESPP shares excluded as they are antidilutive	5,582	8,217

Stock options, RSUs, and ESPP shares are considered antidilutive when the aggregate of exercise price and unrecognized stock-based compensation expense are greater than the average market price for our common stock during the period or when the Company is in a net loss position, as the effects would reduce the loss per share. Stock options, RSUs, and ESPP shares that are antidilutive at April 1, 2017 could become dilutive in the future.

Marketable Securities

3 Months Ended

Apr. 01, 2017

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



(In thousands)	April 1, 2017		December 31, 2016
Short-term marketable securities:
Maturing within one year	$	9,515	$	10,308
Maturing between one and two years	2,482		—
Total marketable securities	$	11,997	$	10,308

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



(In thousands)	April 1, 2017		December 31, 2016
Short-term marketable securities:
Corporate and government bonds and notes, and commercial paper	$	11,909	$	10,230
Certificates of deposit	88		78
Total marketable securities	$	11,997	$	10,308

- Definition

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

+ References + Details

Fair Value of Financial Instruments

3 Months Ended

Apr. 01, 2017

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments



	Fair value measurements as of								Fair value measurements as of
	April 1, 2017								December 31, 2016
(In thousands)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Short-term marketable securities	$	11,997	$	11,909	$	88	$	—	$	10,308	$	10,230	$	78	$	—
Foreign currency forward exchange contracts, net	78		—		78		—		184		—		184		—
Total fair value of financial instruments	$	12,075	$	11,909	$	166	$	—	$	10,492	$	10,230	$	262	$	—

We invest in various financial instruments that may include corporate and government bonds and notes, commercial paper, and certificates of deposit. In addition, we enter into foreign currency forward exchange contracts to mitigate our foreign currency exchange rate exposure. We carry these instruments at their fair value in accordance with ASC 820, "Fair Value Measurements and Disclosures." The framework under the provisions of ASC 820 establishes three levels of inputs that may be used to measure fair value. Each level of input has different levels of subjectivity and difficulty involved in determining fair value, as summarized in Note 1. There were no transfers between any of the levels during the first three months of fiscal 2017 or 2016.

In accordance with ASC 320, “Investments-Debt and Equity Securities,” we recorded an unrealized loss of less than $0.1 million during each of the three months ended April 1, 2017 and April 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 material adverse effect on our operating results. If we were to liquidate our position in these securities, it is likely that the amount of any future realized gain or loss would be different from the unrealized gain or loss reported in accumulated other comprehensive loss.

- Definition

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

+ References + Details

Inventories

3 Months Ended

Apr. 01, 2017

Inventory Disclosure [Abstract]

Inventories



(In thousands)	April 1, 2017		December 31, 2016
Work in progress	$	46,261	$	50,688
Finished goods	31,514		28,480
Total inventories	$	77,775	$	79,168

Goodwill	3 Months Ended
Goodwill	Apr. 01, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and intangible assets. 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 for the first three months of fiscal 2017 or fiscal 2016 as no indicators of impairment were present. In the first quarter of 2016, we finalized our valuation and allocation of purchase price consideration resulting in $2.1 million of additional long-term liabilities related to an uncertain tax position with an equivalent revision to Goodwill, which is reflected in the Consolidated Balance Sheets for the period ended December 31, 2016. The goodwill balance of $270 million at both April 1, 2017 and 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.

Intangible Assets

3 Months Ended

Apr. 01, 2017

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.

On our Consolidated Balance Sheets, intangible assets are shown net of accumulated amortization of $84.9 million and $78.5 million at April 1, 2017 and December 31, 2016, respectively.

During the first quarter of fiscal 2017, we sold a portfolio of patents that had been acquired from Silicon Image. As a result of this transaction, intangible assets, net of amortization was reduced by approximately $3.5 million.

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. No impairment charges related to intangible assets were recorded for the first three months of either fiscal 2017 or fiscal 2016 as no indicators of impairment were present.

We recorded amortization expense related to intangible assets on the Consolidated Statements of Operations as follows:



	Three Months Ended
(In thousands)	April 1, 2017		April 2, 2016
Research and development	$	173	$	186
Amortization of acquired intangible assets	8,514		8,721
	$	8,687	$	8,907

Equity Method Investment

3 Months Ended

Apr. 01, 2017

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 of and interaction with the investee, we determined that we have the ability to exert significant influence over the investee. Accordingly, we changed our accounting for the investment from the cost method to the equity method and have hence recognized our proportionate share of the investee’s operating results in the Consolidated Statements of Operations.

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.

Applying the equity method, the proportionate share of the investee's net loss that we have recognized in the Consolidated Statements of Operations for the first quarter of fiscal 2017 and fiscal 2016 was as follows:



	Three Months Ended
(In thousands)	April 1, 2017			April 2, 2016
Equity in net loss of an unconsolidated affiliate, net of tax	$	(339	)	$	(310	)

Through April 1, 2017, we have reduced the value of our investment by approximately $2.3 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 December 31, 2016	4,049
Equity in net loss of an unconsolidated affiliate, net of tax	(339		)
Balance at April 1, 2017	$	3,710

Accounts Payable and Accrued Expenses

3 Months Ended

Apr. 01, 2017

Payables and Accruals [Abstract]

Accounts Payable and Accrued Expenses

Included in accounts payable and accrued liabilities as of April 1, 2017 and December 31, 2016 were the following balances:



(In thousands)	April 1, 2017		December 31, 2016
Trade accounts payable	$	14,620	$	37,800
Liability for non-cancelable contracts	7,141		5,744
Payable to members of the MHL and HDMI consortia*	174		9,698
Other accrued expenses	23,246		27,691
Total accounts payable and accrued expenses	$	45,181	$	80,933

* As an agent of the MHL consortium, we administer royalty reporting and distributions to the members of this consortium.

This excludes amounts payable to us, and is payable quarterly based on collections from MHL customers. Our role as the

agent of the HDMI consortium terminated on January 1, 2017 and, therefore, the balance as of April 1, 2017 is due to MHL

consortium members only.

Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss

3 Months Ended

Apr. 01, 2017

Stockholders' Equity Note [Abstract]

Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss



(In thousands)	Common stock		Additional Paid-in capital		Accumulated deficit			Accumulated other comprehensive loss			Total
Balances, December 31, 2016	$	1,216	$	680,315	$	(406,945	)	$	(4,156	)	$	270,430
Net loss for the three months ended April 1, 2017	—		—		(7,275		)	—			(7,275		)
Unrealized loss related to marketable securities, net of tax	—		—		—			(43		)	(43		)
Recognized loss on redemption of marketable securities, previously unrealized	—		—		—			170			170
Translation adjustments, net of tax	—		—		—			274			274
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax	4		447		—			—			451
Stock-based compensation expense related to stock options, ESPP and RSUs	—		3,843		—			—			3,843
Accounting method transition adjustment	—		—		(355		)	—			(355		)
Balances, April 1, 2017	$	1,220	$	684,605	$	(414,575	)	$	(3,755	)	$	267,495

During the first quarter of fiscal 2017, we early adopted ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This guidance 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. As a result of this adoption, we recorded a nominal amount to accumulated deficit, as detailed in the table above.

- Definition

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

+ References

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-Publisher FASB
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+ Details

Income Taxes	3 Months Ended
Income Taxes	Apr. 01, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For the three months ended April 1, 2017 and April 2, 2016, we recorded an income tax provision of approximately $0.5 million and $1.9 million, respectively. The income tax provision for the three months ended April 1, 2017 represents tax at the federal, state, and foreign statutory tax rates adjusted for withholding taxes, changes in uncertain tax positions, changes in the U.S. valuation allowance, as well as other non-deductible items in the United States and foreign jurisdictions. The difference between the U.S. federal statutory tax rate of 35% and our negative effective tax rates for the three months ended April 1, 2017 is primarily due to a valuation allowance increase that offsets the otherwise expected tax benefit from the pretax loss in the United States, and to the zero tax rate in Bermuda which results in no tax benefit for the pretax loss in Bermuda. In 2016, we evaluated the valuation allowance position in the United States and concluded that we should maintain a valuation allowance against our federal and state deferred tax assets. We reached the same conclusion through April 1, 2017. We will continue to evaluate both positive and negative evidence in future periods to determine if we should recognize more deferred tax assets. 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. 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. Our income tax return for India is currently under examination for the fiscal year ended March 31, 2015. We are not under examination in any other jurisdiction. We believe that it is reasonably possible that $1.7 million of unrecognized tax benefits and $0.1 million of associated interest and penalties could be recognized during the next twelve months. The $1.7 million potential change would represent a decrease in unrecognized tax benefits, comprised of items related to tax filings for years that will no longer be subject to examination under expiring statutes of limitations. At December 31, 2016, we had U.S. federal net operating loss ("NOL") carryforwards (pretax) of approximately $367.0 million that expire at various dates between 2025 and 2036. We had state NOL 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, respectively. Of the total $105.9 million credit carryforwards, $55.5 million do not expire. The remaining credits expire at various dates from 2017 through 2036. Our liability for uncertain tax positions (including penalties and interest) was $28.0 million and $29.6 million at April 1, 2017 and December 31, 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. We are not currently paying U.S. federal income taxes and do not expect to pay such taxes until we fully utilize our tax NOL and credit carryforwards. We expect to pay a nominal amount of state income tax. We are paying foreign income and withholding taxes, which are reflected in income tax expense in our Consolidated Statements of Operations and are primarily related to the cost of operating offshore activities and subsidiaries. We accrue interest and penalties related to uncertain tax positions in income tax expense.

Restructuring

3 Months Ended

Apr. 01, 2017

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 according to U.S. GAAP. Under this plan, approximately $0.3 million and $3.6 million of expense was incurred during the three months ended April 1, 2017 and April 2, 2016, respectively. Approximately $20.9 million of total expense has been incurred through April 1, 2017 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 but which will be expensed as incurred according to U.S. GAAP. Under this reduction, approximately $0.2 million of credit and $1.8 million of expense were incurred during the three months ended April 1, 2017 and April 2, 2016, respectively. Approximately $7.7 million of total expense has been incurred through April 1, 2017 under the September 2015 Reduction. We expect the total cost of the September 2015 Reduction to be approximately $8.0 million.

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

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



(In thousands)	Severance & related *			Lease Termination			Software Contracts & Engineering Tools **			Other			Total
Balance at January 2, 2016	$	3,696		$	1,005		$	377		$	—		$	5,078
Restructuring charges	1,676			220			2,181			1,354			5,431
Costs paid or otherwise settled	(3,056		)	(323		)	(2,245		)	(1,354		)	(6,978		)
Balance at April 2, 2016	$	2,316		$	902		$	313		$	—		$	3,531

Balance at December 31, 2016	$	801		$	1,036		$	25		$	12		$	1,874
Restructuring charges	(248		)	63			—			251			66
Costs paid or otherwise settled	(52		)	(1,049		)	(25		)	(234		)	(1,360		)
Balance at April 1, 2017	$	501		$	50		$	—		$	29		$	580

* 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

3 Months Ended

Apr. 01, 2017

Debt Disclosure [Abstract]

Long-term Debt

Long-Term Debt

On March 10, 2015, we entered into a secured credit agreement (the "Credit Agreement") with Jefferies Finance, LLC and certain other lenders for purposes of funding, in part, our acquisition of Silicon Image. The Credit Agreement provided for a $350 million term loan (the "Term Loan") maturing on March 10, 2021 (the "Term Loan Maturity Date"). We received $346.5 million net of an original issue discount of $3.5 million and we paid debt issuance costs of $8.3 million. The Term Loan bears variable interest equal to the 3-month LIBOR as of April 1, 2017, subject to a 1.00% floor if necessary, plus a spread of 4.25%. The current effective interest rate on the Term Loan is 5.97%.

The Term Loan is payable through a combination of (i) quarterly installments of approximately $0.9 million, (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 first quarter of fiscal 2017, we made a required additional principal payment of $9.9 million due to a sale of patents. Since the end of the first quarter of fiscal 2017, we made a required annual excess cash flow payment of $13.7 million. Over the next twelve months, our principal payments will be comprised mainly of regular quarterly installments and a required additional principal payment driven by the final installment expected for the previously mentioned sale of patents.

While the Credit Agreement does not contain financial covenants, it does contain informational covenants and certain restrictive covenants, including limitations on liens, mergers and consolidations, sales of assets, payment of dividends, and indebtedness. We were in compliance with all such covenants at April 1, 2017.

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

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



(In thousands)	April 1, 2017			December 31, 2016
Principal amount	$	331,441		$	342,221
Unamortized original issue discount and debt costs	(6,666		)	(7,599		)
Less: Current portion of long-term debt	(23,154		)	(33,767		)
Long-term debt	$	301,621		$	300,855

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



	Three Months Ended
(In thousands)	April 1, 2017		April 2, 2016
Contractual interest	$	4,543	$	4,620
Amortization of debt issuance costs and discount	933		241
Total Interest expense related to the Term Loan	$	5,476	$	4,861

As of April 1, 2017, expected future principal payments on the Term Loan were as follows:



Fiscal year	(in thousands)

2017 (remaining 9 months)	$	24,499
2018	33,204
2019	52,993
2020	89,902
2021	130,843
	$	331,441

Stock-Based Compensation

3 Months Ended

Apr. 01, 2017

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

Stock-Based Compensation

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



	Three Months Ended
(In thousands)	April 1, 2017		April 2, 2016
Cost of products sold	$	228	$	259
Research and development	1,850		2,459
Selling, general and administrative	1,765		1,838
Total stock-based compensation	$	3,843	$	4,556

We granted stock options with a market condition to certain executives in fiscal years 2015 and 2016. 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. 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 were outstanding and unvested at December 31, 2016. During the first quarter of fiscal 2017, approximately 91,500 grants vested, and approximately 183,200 were canceled due to the expiration of the vesting period for the 2015 tranche. A total of approximately 413,400 stock options were outstanding as of April 1, 2017, which includes the approximately 91,500 that vested but were not exercised. We incurred stock compensation expense related to these market condition awards of approximately $0.2 million in the first quarter of fiscal 2017 and approximately $0.1 million in the first quarter of fiscal 2016.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Contingencies	3 Months Ended
Contingencies	Apr. 01, 2017
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. The Company supplemented its disclosures to the Company’s shareholders regarding the transaction prior to the meeting of shareholders to approve the transaction. As a result of the supplemented disclosure, counsel for plaintiffs in both actions entered into stipulations to dismiss the actions and the Oregon and Delaware actions were dismissed by stipulation on March 13, 2017 and March 21, 2017, respectively. In both cases, the courts retained jurisdiction to determine the mootness fees to be paid to plaintiffs’ counsel. 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 but such amount is not expected to have a material adverse effect on the financial position of the Company. We are exposed to certain other asserted and unasserted potential claims. There can be no assurance that, with respect to potential claims made against us, we could resolve such claims under terms and conditions that would not have a material adverse effect on our business, our liquidity or our financial results. Periodically, we review the status of each significant matter and assess its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and a range of possible losses can be estimated, we then accrue a liability for the estimated loss based on the provisions of FASB ASC 450, “Contingencies" (“ASC 450”). Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based only on the best information available at the time. As additional information becomes available, we reassess the potential liability related to pending claims and litigation and may revise estimates.

Segment and Geographic Information

3 Months Ended

Apr. 01, 2017

Segment Reporting [Abstract]

Segment and Geographic Information

Segment Information

As of April 1, 2017, Lattice 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 was included in Other (expense) income, net in the Consolidated Statements of Operations in the period of sale.

Geographic Information

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



	Three Months Ended
(In thousands)	April 1, 2017				April 2, 2016
Asia	$	73,458	70	%	$	65,512	68	%
Europe	11,080		11		16,009		17
Americas	20,049		19		14,991		15
Total revenue	$	104,587	100	%	$	96,512	100	%

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

There were no material changes to property and equipment by major geographic area as of April 1, 2017 as compared to December 31, 2016.

- Definition

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

+ References

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-Name Accounting Standards Codification
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+ Details

Basis of Presentation and Significant Accounting Policies (Policies)

3 Months Ended

Apr. 01, 2017

Accounting Policies [Abstract]

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.

Use of Estimates

Cash Equivalents

Marketable Securities

We account for marketable securities as available-for-sale investments, as defined by U.S. GAAP, and record unrealized gains or losses to Accumulated other comprehensive loss on our Consolidated Balance Sheets, unless losses are considered other than temporary, in which case, those are recorded directly to the Consolidated Statements of Operations and Statements of Comprehensive Loss. Deposits with financial institutions at times exceed Federal Deposit Insurance Corporation insurance limits.

Fair Value of Financial Instruments

Foreign Exchange and Translation of Foreign Currencies

Derivative Financial Instruments

We mitigate foreign currency exchange rate risk by entering into foreign currency forward exchange contracts, details of which are presented in the following table:



	April 1, 2017		December 31, 2016
Total cost of contracts for Japanese yen (thousands)	$	2,323	$	2,323
Number of contracts	2		2
Settlement month	June 2017		June 2017

Concentration Risk

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

Customer concentration risk may impact revenue. The percentage of total revenue attributable to our top five end customers and largest end customer is presented in the following table:

No other end customer accounted for more than 10% of total revenue during these periods.

Revenue Recognition and Deferred Income

Licensing and Services Revenue

Revenue Recognition and Deferred Income

Product Revenue

Property and Equipment

New Accounting Pronouncements

Recently Adopted Accounting Standards

Recently Issued Accounting Standards

Basis of Presentation and Significant Accounting Policies (Tables)

3 Months Ended

Apr. 01, 2017

Accounting Policies [Abstract]

Schedule of Derivative Instruments

We mitigate foreign currency exchange rate risk by entering into foreign currency forward exchange contracts, details of which are presented in the following table:



	April 1, 2017		December 31, 2016
Total cost of contracts for Japanese yen (thousands)	$	2,323	$	2,323
Number of contracts	2		2
Settlement month	June 2017		June 2017

Schedules of Revenue Concentration of Risk

Revenue attributable to resale of products by sell-through distributors as a percentage of total revenue is presented in the following table:

The percentage of total revenue attributable to our top five end customers and largest end customer is presented in the following table:

Deferred Income and Allowances on Sales to Sell-through Distributors

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



(In thousands)	April 1, 2017			December 31, 2016
Inventory valued at published list prices and held by sell-through distributors with right of return	$	84,382		$	86,218
Allowance for distributor advances	(42,160		)	(37,090		)
Deferred cost of sales related to inventory held by sell-through distributors	(12,685		)	(16,871		)
Total Deferred income and allowances on sales to sell-through distributors	$	29,537		$	32,257

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

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+ Details

Net Loss per Share (Tables)

3 Months Ended

Apr. 01, 2017

Earnings Per Share [Abstract]

Schedule of Earnings Per Share Reconciliation

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



	Three Months Ended
(in thousands, except per share data)	April 1, 2017			April 2, 2016
Basic and diluted net loss	$	(7,275	)	$	(19,711	)
Shares used in basic and diluted net loss per share	121,800			118,833
Basic and diluted net loss per share	$	(0.06	)	$	(0.17	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share



	Three Months Ended
(in thousands)	April 1, 2017	April 2, 2016
Stock options, RSUs, and ESPP shares excluded as they are antidilutive	5,582	8,217

Marketable Securities (Tables)

3 Months Ended

Apr. 01, 2017

Investments, Debt and Equity Securities [Abstract]

Schedule of Contractual Maturities of Marketable Securities

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



(In thousands)	April 1, 2017		December 31, 2016
Short-term marketable securities:
Maturing within one year	$	9,515	$	10,308
Maturing between one and two years	2,482		—
Total marketable securities	$	11,997	$	10,308

Schedule of Composition of Marketable Securities

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



(In thousands)	April 1, 2017		December 31, 2016
Short-term marketable securities:
Corporate and government bonds and notes, and commercial paper	$	11,909	$	10,230
Certificates of deposit	88		78
Total marketable securities	$	11,997	$	10,308

Fair Value of Financial Instruments (Tables)

3 Months Ended

Apr. 01, 2017

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Financial Instruments



	Fair value measurements as of								Fair value measurements as of
	April 1, 2017								December 31, 2016
(In thousands)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Short-term marketable securities	$	11,997	$	11,909	$	88	$	—	$	10,308	$	10,230	$	78	$	—
Foreign currency forward exchange contracts, net	78		—		78		—		184		—		184		—
Total fair value of financial instruments	$	12,075	$	11,909	$	166	$	—	$	10,492	$	10,230	$	262	$	—

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Inventories (Tables)

3 Months Ended

Apr. 01, 2017

Inventory Disclosure [Abstract]

Schedule of Inventories



(In thousands)	April 1, 2017		December 31, 2016
Work in progress	$	46,261	$	50,688
Finished goods	31,514		28,480
Total inventories	$	77,775	$	79,168

Intangible Assets (Tables)

3 Months Ended

Apr. 01, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Finite-lived Intangible Assets Amortization Expense

We recorded amortization expense related to intangible assets on the Consolidated Statements of Operations as follows:



	Three Months Ended
(In thousands)	April 1, 2017		April 2, 2016
Research and development	$	173	$	186
Amortization of acquired intangible assets	8,514		8,721
	$	8,687	$	8,907

Equity Method Investment (Tables)

3 Months Ended

Apr. 01, 2017

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investment, Investee's Net Loss



	Three Months Ended
(In thousands)	April 1, 2017			April 2, 2016
Equity in net loss of an unconsolidated affiliate, net of tax	$	(339	)	$	(310	)

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 December 31, 2016	4,049
Equity in net loss of an unconsolidated affiliate, net of tax	(339		)
Balance at April 1, 2017	$	3,710

Accounts Payable and Accrued Expenses (Tables)

3 Months Ended

Apr. 01, 2017

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Liabilities

Included in accounts payable and accrued liabilities as of April 1, 2017 and December 31, 2016 were the following balances:



(In thousands)	April 1, 2017		December 31, 2016
Trade accounts payable	$	14,620	$	37,800
Liability for non-cancelable contracts	7,141		5,744
Payable to members of the MHL and HDMI consortia*	174		9,698
Other accrued expenses	23,246		27,691
Total accounts payable and accrued expenses	$	45,181	$	80,933

* As an agent of the MHL consortium, we administer royalty reporting and distributions to the members of this consortium.

This excludes amounts payable to us, and is payable quarterly based on collections from MHL customers. Our role as the

agent of the HDMI consortium terminated on January 1, 2017 and, therefore, the balance as of April 1, 2017 is due to MHL

consortium members only.

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

3 Months Ended

Apr. 01, 2017

Stockholders' Equity Note [Abstract]

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



(In thousands)	Common stock		Additional Paid-in capital		Accumulated deficit			Accumulated other comprehensive loss			Total
Balances, December 31, 2016	$	1,216	$	680,315	$	(406,945	)	$	(4,156	)	$	270,430
Net loss for the three months ended April 1, 2017	—		—		(7,275		)	—			(7,275		)
Unrealized loss related to marketable securities, net of tax	—		—		—			(43		)	(43		)
Recognized loss on redemption of marketable securities, previously unrealized	—		—		—			170			170
Translation adjustments, net of tax	—		—		—			274			274
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax	4		447		—			—			451
Stock-based compensation expense related to stock options, ESPP and RSUs	—		3,843		—			—			3,843
Accounting method transition adjustment	—		—		(355		)	—			(355		)
Balances, April 1, 2017	$	1,220	$	684,605	$	(414,575	)	$	(3,755	)	$	267,495

Restructuring (Tables)

3 Months Ended

Apr. 01, 2017

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Reserve by Type of Cost

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



(In thousands)	Severance & related *			Lease Termination			Software Contracts & Engineering Tools **			Other			Total
Balance at January 2, 2016	$	3,696		$	1,005		$	377		$	—		$	5,078
Restructuring charges	1,676			220			2,181			1,354			5,431
Costs paid or otherwise settled	(3,056		)	(323		)	(2,245		)	(1,354		)	(6,978		)
Balance at April 2, 2016	$	2,316		$	902		$	313		$	—		$	3,531

Balance at December 31, 2016	$	801		$	1,036		$	25		$	12		$	1,874
Restructuring charges	(248		)	63			—			251			66
Costs paid or otherwise settled	(52		)	(1,049		)	(25		)	(234		)	(1,360		)
Balance at April 1, 2017	$	501		$	50		$	—		$	29		$	580

* 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)

3 Months Ended

Apr. 01, 2017

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

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



(In thousands)	April 1, 2017			December 31, 2016
Principal amount	$	331,441		$	342,221
Unamortized original issue discount and debt costs	(6,666		)	(7,599		)
Less: Current portion of long-term debt	(23,154		)	(33,767		)
Long-term debt	$	301,621		$	300,855

Interest Income and Interest Expense Disclosure

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



	Three Months Ended
(In thousands)	April 1, 2017		April 2, 2016
Contractual interest	$	4,543	$	4,620
Amortization of debt issuance costs and discount	933		241
Total Interest expense related to the Term Loan	$	5,476	$	4,861

Schedule of Debt

As of April 1, 2017, expected future principal payments on the Term Loan were as follows:



Fiscal year	(in thousands)

2017 (remaining 9 months)	$	24,499
2018	33,204
2019	52,993
2020	89,902
2021	130,843
	$	331,441

- 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.

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-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=64930785&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=64930785&loc=d3e28551-108399

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

+ Details

Stock-Based Compensation (Tables)

3 Months Ended

Apr. 01, 2017

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

Schedule of Stock-Based Compensation Expense

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



	Three Months Ended
(In thousands)	April 1, 2017		April 2, 2016
Cost of products sold	$	228	$	259
Research and development	1,850		2,459
Selling, general and administrative	1,765		1,838
Total stock-based compensation	$	3,843	$	4,556

Segment and Geographic Information (Tables)

3 Months Ended

Apr. 01, 2017

Segment Reporting [Abstract]

Schedule of Revenue by Major Geographic Area

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



	Three Months Ended
(In thousands)	April 1, 2017				April 2, 2016
Asia	$	73,458	70	%	$	65,512	68	%
Europe	11,080		11		16,009		17
Americas	20,049		19		14,991		15
Total revenue	$	104,587	100	%	$	96,512	100	%

Basis of Presentation and Significant Accounting Policies (Details) $ in Thousands	3 Months Ended			12 Months Ended
	Apr. 01, 2017 USD ($) Contract	Oct. 01, 2016 USD ($)	Apr. 02, 2016	Dec. 31, 2016 USD ($) Contract
General Discussion of Derivative Instruments and Hedging Activities [Abstract]
Gain on foreign exchange contracts adjusted to fair value through earnings - less than	$ 100			$ 200
Risks and Uncertainties [Abstract]
Allowance for doubtful accounts	9,300			9,300
Increase in allowance for doubtful accounts		$ 9,000
Deferred Revenue and Credits [Abstract]
Inventory valued at published list prices and held by sell-through distributors with right of return	84,382			86,218
Allowance for distributor advances	(42,160)			(37,090)
Deferred cost of sales related to inventory held by sell-through distributors	(12,685)			(16,871)
Total Deferred income and allowances on sales to sell-through distributors	$ 29,537			$ 32,257
Product revenue \| Sell-Through Distributors Concentration Risk
Risks and Uncertainties [Abstract]
Concentration Risk	67.00%			67.00%
Revenue \| Sell-Through Distributors Concentration Risk
Risks and Uncertainties [Abstract]
Concentration Risk	60.00%		53.00%	60.00%
Foreign exchange contracts
General Discussion of Derivative Instruments and Hedging Activities [Abstract]
Total cost of contracts for Japanese yen (thousands)	$ 2,323			$ 2,323
Derivative contracts \| Contract	2			2
Top Five Customers \| Revenue \| Customer Concentration Risk
Risks and Uncertainties [Abstract]
Concentration Risk	37.00%		27.00%
Largest Customer \| Revenue \| Customer Concentration Risk
Risks and Uncertainties [Abstract]
Concentration Risk	12.00%		8.00%
Largest Distributor Group [Member] \| Trade receivables \| Sell-Through Distributors Concentration Risk
Risks and Uncertainties [Abstract]
Concentration Risk	42.00%			38.00%
Second Largest Distributor Group [Member] \| Trade receivables \| Sell-Through Distributors Concentration Risk
Risks and Uncertainties [Abstract]
Concentration Risk	25.00%			24.00%
Equipment \| Minimum
Deferred Revenue and Credits [Abstract]
Property, plant and equipment, useful life	3 years
Equipment \| Maximum
Deferred Revenue and Credits [Abstract]
Property, plant and equipment, useful life	5 years
Tools, Dies and Molds \| Minimum
Deferred Revenue and Credits [Abstract]
Property, plant and equipment, useful life	1 year
Tools, Dies and Molds \| Maximum
Deferred Revenue and Credits [Abstract]
Property, plant and equipment, useful life	3 years
Building
Deferred Revenue and Credits [Abstract]
Property, plant and equipment, useful life	30 years
Software Development \| Minimum
Deferred Revenue and Credits [Abstract]
Property, plant and equipment, useful life	3 years
Software Development \| Maximum
Deferred Revenue and Credits [Abstract]
Property, plant and equipment, useful life	5 years
Accounting Standards Update 2016-09
Deferred Revenue and Credits [Abstract]
Deferred tax assets	$ 5,700

Net Loss per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Earnings Per Share [Abstract]
Basic and diluted net loss	$ (7,275)	$ (19,711)
Shares used in basic and diluted net loss per share (in shares)	121,800	118,833
Basic and diluted Net loss per share (in usd per share)	$ (0.06)	$ (0.17)
Stock options, RSU's and ESPP shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of EPS (in shares)	5,582	8,217

Marketable Securities Composition (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Dec. 31, 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	$ 9,515	$ 10,308
Maturing between one and two years	2,482	0
Total marketable securities	11,997	10,308
Corporate and government bonds and notes, and commercial paper \| Short-term marketable securities
Schedule of Available-for-sale Securities [Line Items]
Total marketable securities	11,909	10,230
Certificates of deposit \| Short-term marketable securities
Schedule of Available-for-sale Securities [Line Items]
Total marketable securities	$ 88	$ 78

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Total
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Foreign currency forward exchange contracts, net	$ 78	$ 184
Total fair value of financial instruments	12,075	10,492
Short-term marketable securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of marketable securities	11,997	10,308
Short-term marketable securities \| Total
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of marketable securities	11,997	10,308
Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Foreign currency forward exchange contracts, net	0	0
Total fair value of financial instruments	11,909	10,230
Level 1 \| Short-term marketable securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of marketable securities	11,909	10,230
Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Foreign currency forward exchange contracts, net	78	184
Total fair value of financial instruments	166	262
Level 2 \| Short-term marketable securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of marketable securities	88	78
Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Foreign currency forward exchange contracts, net	0	0
Total fair value of financial instruments	0	0
Level 3 \| Short-term marketable securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of marketable securities	$ 0	$ 0

Fair Value of Financial Instruments Unobservable Inputs (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Short-term marketable securities \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized loss (less than)	$ 0.1	$ 0.1

Inventories (Details) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Work in progress	$ 46,261	$ 50,688
Finished goods	31,514	28,480
Total inventories	$ 77,775	$ 79,168

Goodwill (Details) - USD ($)	3 Months Ended		12 Months Ended
Goodwill (Details) - USD ($)	Apr. 01, 2017	Apr. 02, 2016	Jan. 02, 2016	Dec. 31, 2016
Business Acquisition [Line Items]
Goodwill impairment	$ 0	$ 0	$ 13,000,000
Goodwill	269,758,000			$ 269,758,000
Silicon Image, Inc
Business Acquisition [Line Items]
Long-term liabilities from valuation and allocation of purchase price consideration		$ 2,100,000
Goodwill	238,000,000
Series of Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Goodwill	$ 45,000,000

Intangible Assets (Details) - USD ($)	3 Months Ended
Intangible Assets (Details) - USD ($)	Apr. 01, 2017	Apr. 02, 2016	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization, intangible assets	$ 84,900,000		$ 78,500,000
Impairment of intangible assets		$ 0
Amortization of acquired intangible assets	8,514,000	8,721,000
SiliconBlue Technologies Ltd. and Silicon Image, Inc
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	8,687,000	8,907,000
Research and development \| SiliconBlue Technologies Ltd. and Silicon Image, Inc
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	173,000	$ 186,000
Patents
Finite-Lived Intangible Assets [Line Items]
Decrease of intangible assets, net of amortization	$ 3,500,000

Equity Method Investment (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended	12 Months Ended	27 Months Ended
Equity Method Investment (Details) - USD ($) $ in Thousands	Apr. 01, 2017	Oct. 01, 2016	Apr. 02, 2016	Jan. 02, 2016	Oct. 03, 2015	Jan. 02, 2016	Apr. 01, 2017
Equity Method Investments and Joint Ventures [Abstract]
Cash paid for a non-marketable equity-method investment					$ 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		$ 5,000
Equity method investment, gross		$ 6,000
Equity Method Investment [Roll Forward]
Balance at December 31, 2016	$ 4,049
Equity in net loss of an unconsolidated affiliate, net of tax	(339)		$ (310)				$ (2,300)
Balance at April 1, 2017	$ 3,710						$ 3,710

Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Trade accounts payable	$ 14,620	$ 37,800
Liability for non-cancelable contracts	7,141	5,744
Payable to members of the MHL and HDMI consortia	174	9,698
Other accrued expenses	23,246	27,691
Total accounts payable and accrued expenses	$ 45,181	$ 80,933

Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Apr. 01, 2017	Dec. 31, 2016
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 270,430
Net loss for the three months ended April 1, 2017		$ (7,275)
Unrealized loss related to marketable securities, net of tax	(43)
Recognized loss on redemption of marketable securities, previously unrealized	170
Translation adjustments, net of tax	274
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax	451
Stock-based compensation expense related to stock options, ESPP and RSUs	3,843
Accounting method transition adjustment	(355)
Ending balance	267,495	270,430
Common stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	1,216
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax	4
Ending balance	1,220	1,216
Additional Paid-in capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	680,315
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax	447
Stock-based compensation expense related to stock options, ESPP and RSUs	3,843
Ending balance	684,605	680,315
Accumulated deficit
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(406,945)
Net loss for the three months ended April 1, 2017		(7,275)
Accounting method transition adjustment	(355)
Ending balance	(414,575)	(406,945)
Accumulated other comprehensive loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(4,156)
Unrealized loss related to marketable securities, net of tax	(43)
Recognized loss on redemption of marketable securities, previously unrealized	170
Translation adjustments, net of tax	274
Ending balance	$ (3,755)	$ (4,156)

Income Taxes (Details) - USD ($)	3 Months Ended
Income Taxes (Details) - USD ($)	Apr. 01, 2017	Apr. 02, 2016	Dec. 31, 2016
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Income tax provision	$ 518,000	$ 1,900,000
Unrecognized tax benefits that could significantly change during the next twelve months	1,700,000
Total potential decrease in UTB	1,700,000
Tax credit carryforward, amount			$ 105,900,000
Maximum
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Unrecognized tax benefits, associated interest and penalties that could significantly change within the next twelve months	$ 100,000
U.S. Federal
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Statutory income tax rate	35.00%
Bermuda
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Income tax provision	$ 0
Statutory income tax rate	0.00%
Internal Revenue Service (IRS)
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Operating loss carryforwards			367,000,000
Tax credit carryforward, amount			49,200,000
State and Local Jurisdiction
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Operating loss carryforwards			193,300,000
Tax credit carryforward, amount			56,700,000
Other Long-term Liabilities
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Uncertain tax positions	$ 28,000,000		29,600,000
No Expiration Date
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Tax credit carryforward, amount			$ 55,500,000

Restructuring Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
Restructuring Narrative (Details) - USD ($) $ in Thousands	Apr. 01, 2017	Apr. 02, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 66	$ 5,431
March 2015 Plan
Restructuring Cost and Reserve [Line Items]
Restructuring charges	300	3,600
Restructuring and related cost, cost incurred to date	20,900
Restructuring and related cost, expected cost	21,000
September 2015 Reduction
Restructuring Cost and Reserve [Line Items]
Restructuring charges	(200)	$ 1,800
Restructuring and related cost, cost incurred to date	7,700
Restructuring and related cost, expected cost	$ 8,000

Restructuring - Schedule of Restructuring Activities (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Restructuring Reserve [Roll Forward]
Balance at beginning of the period	$ 1,874	$ 5,078
Restructuring charges	66	5,431
Costs paid or otherwise settled	(1,360)	(6,978)
Balance at the end of the period	580	3,531
Severance & related
Restructuring Reserve [Roll Forward]
Balance at beginning of the period	801	3,696
Restructuring charges	(248)	1,676
Costs paid or otherwise settled	(52)	(3,056)
Balance at the end of the period	501	2,316
Lease Termination
Restructuring Reserve [Roll Forward]
Balance at beginning of the period	1,036	1,005
Restructuring charges	63	220
Costs paid or otherwise settled	(1,049)	(323)
Balance at the end of the period	50	902
Software Contracts & Engineering Tools
Restructuring Reserve [Roll Forward]
Balance at beginning of the period	25	377
Restructuring charges	0	2,181
Costs paid or otherwise settled	(25)	(2,245)
Balance at the end of the period	0	313
Other
Restructuring Reserve [Roll Forward]
Balance at beginning of the period	12	0
Restructuring charges	251	1,354
Costs paid or otherwise settled	(234)	(1,354)
Balance at the end of the period	$ 29	$ 0

Long-Term Debt (Narrative) (Details) - USD ($)			3 Months Ended
Long-Term Debt (Narrative) (Details) - USD ($)	Apr. 02, 2017	Mar. 10, 2015	Apr. 01, 2017	Apr. 02, 2016	Dec. 31, 2016
Debt Instrument [Line Items]
Principal amount			$ 331,441,000
Proceeds from debt			(10,780,000)	$ (875,000)
Repayments of debt			9,900,000
Line of Credit \| Term Loan
Debt Instrument [Line Items]
Principal amount		$ 350,000,000	331,441,000		$ 342,221,000
Proceeds from debt		346,500,000
Debt instrument, unamortized discount		3,500,000	$ 6,666,000		$ 7,599,000
Payment of debt issuance cost		$ 8,300,000
Debt instrument, interest rate, effective percentage			5.97%
Debt instrument, periodic payment			$ 900,000
Debt instrument, payment, percentage			75.00%
Line of Credit \| Term Loan \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, variable interest floor rate			1.00%
Debt instrument, basis spread on variable rate			4.25%
Minimum \| Line of Credit \| Term Loan
Debt Instrument [Line Items]
Debt instrument, payment, percentage			0.00%
Maximum \| Line of Credit \| Term Loan
Debt Instrument [Line Items]
Debt instrument, payment, percentage			75.00%
Subsequent event
Debt Instrument [Line Items]
Repayments of debt	$ 13,700,000

Long-Term Debt (Debt Schedule) (Details) - USD ($)	Apr. 01, 2017	Dec. 31, 2016	Mar. 10, 2015
Debt Instrument [Line Items]
Principal amount	$ 331,441,000
Line of Credit \| Term Loan
Debt Instrument [Line Items]
Principal amount	331,441,000	$ 342,221,000	$ 350,000,000
Unamortized original issue discount and debt costs	(6,666,000)	(7,599,000)	$ (3,500,000)
Less: Current portion of long-term debt	(23,154,000)	(33,767,000)
Long-term debt	$ 301,621,000	$ 300,855,000

Long-Term Debt (Interest Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Debt Disclosure [Abstract]
Contractual interest	$ 4,543	$ 4,620
Amortization of debt issuance costs and discount	933	241
Total Interest expense related to the Term Loan	$ 5,476	$ 4,861

Long-Term Debt (Future Principal Payments) (Details) $ in Thousands	Apr. 01, 2017 USD ($)
Debt Disclosure [Abstract]
2017 (remaining 9 months)	$ 24,499
2018	33,204
2019	52,993
2020	89,902
2021	130,843
Total	$ 331,441

Stock-Based Compensation (Stock-based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 3,843	$ 4,556
Cost of products sold
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	228	259
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	1,850	2,459
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 1,765	$ 1,838

Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 3,843	$ 4,556
Executives
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, nonvested, number of shares	413,400		596,600
Options vested, number of shares	91,500
Options canceled in period	183,200
Stock-based compensation	$ 200	$ 100
Executives \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	2 years
Comparison period	2 years
Executives \| Minimum \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	0.00%
Executives \| Maximum \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	200.00%

Segment and Geographic Information (Details) $ in Thousands	1 Months Ended	3 Months Ended
Segment and Geographic Information (Details) $ in Thousands	Apr. 30, 2016 USD ($)	Apr. 01, 2017 USD ($) segment	Apr. 02, 2016 USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of operating segments \| segment		1
Total revenue		$ 104,587	$ 96,512
Total revenue as percentage		100.00%	100.00%
Asia
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue		$ 73,458	$ 65,512
Total revenue as percentage		70.00%	68.00%
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue		$ 11,080	$ 16,009
Total revenue as percentage		11.00%	17.00%
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue		$ 20,049	$ 14,991
Total revenue as percentage		19.00%	15.00%
Qterics
Revenues from External Customers and Long-Lived Assets [Line Items]
Proceeds from sale of business unit, net of cash sold	$ 2,000
Gain on sale of business unit	$ 2,600