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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2017	Nov. 06, 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	Sep. 30, 2017
Amendment Flag	false
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding (actual number)		123,365,688

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Revenue:
Product	$ 87,369	$ 102,816	$ 263,206	$ 280,374
Licensing and services	4,602	10,409	27,489	28,572
Total revenue	91,971	113,225	290,695	308,946
Costs and expenses:
Cost of product revenue	38,032	45,695	120,395	125,412
Cost of licensing and services revenue	617	106	4,937	580
Research and development	25,648	27,747	79,857	91,270
Selling, general, and administrative	21,290	29,244	67,133	75,857
Amortization of acquired intangible assets	8,526	8,260	25,777	25,292
Restructuring charges	3,071	317	4,713	8,316
Acquisition related charges	681	0	3,208	94
Impairment of acquired intangible assets	36,198	7,866	36,198	7,866
Gain on sale of building	(4,624)	0	(4,624)	0
Total costs and expenses	129,439	119,235	337,594	334,687
Loss from operations	(37,468)	(6,010)	(46,899)	(25,741)
Interest expense	(3,888)	(5,235)	(14,112)	(15,257)
Other (expense) income, net	(1,828)	209	(1,412)	3,558
Loss before income taxes and equity in net loss of an unconsolidated affiliate	(43,184)	(11,036)	(62,423)	(37,440)
Income tax (benefit) expense	(331)	971	234	7,410
Equity in net loss of an unconsolidated affiliate, net of tax	(199)	(407)	(692)	(1,085)
Net loss	$ (43,052)	$ (12,414)	$ (63,349)	$ (45,935)
Net loss per share, basic and diluted (in usd per share)	$ (0.35)	$ (0.10)	$ (0.52)	$ (0.38)
Shares used in per share calculations, basic and diluted (in shares)	122,990	120,584	122,393	119,596

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Statement of Comprehensive Income [Abstract]
Net loss	$ (43,052)	$ (12,414)	$ (63,349)	$ (45,935)
Other comprehensive loss:
Unrealized loss related to marketable securities, net of tax	(1)	(61)	(72)	(88)
Reclassification adjustment for losses related to marketable securities included in other income, net of tax	37	0	237	38
Translation adjustment, net of tax	431	(138)	1,381	(579)
Change in actuarial valuation of defined benefit pension	0	0	(47)	141
Comprehensive loss	$ (42,585)	$ (12,613)	$ (61,850)	$ (46,423)

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 99,995	$ 106,552
Short-term marketable securities	7,982	10,308
Accounts receivable, net of allowance for doubtful accounts	79,030	99,637
Inventories	77,482	79,168
Prepaid expenses and other current assets	19,913	19,035
Total current assets	284,402	314,700
Property and equipment, less accumulated depreciation of $129,206 at September 30, 2017 and $134,786 at December 31, 2016	43,236	49,481
Intangible assets, net	52,966	118,863
Goodwill	267,514	269,758
Deferred income taxes	242	372
Other long-term assets	13,137	13,709
Total assets	661,497	766,883
Current liabilities:
Accounts payable and accrued expenses (includes restructuring)	62,854	80,933
Accrued payroll obligations	7,688	9,865
Current portion of long-term debt	22,243	33,767
Deferred income and allowances on sales to sell-through distributors	36,119	32,257
Deferred licensing and services revenue	78	728
Total current liabilities	128,982	157,550
Long-term debt	280,381	300,855
Other long-term liabilities	33,842	38,048
Total liabilities	443,205	496,453
Contingencies (Note 15)
Stockholders' equity:
Preferred stock, $.01 par value, 10,000,000 shares authorized, none issued and outstanding	0	0
Common stock, $.01 par value, 300,000,000 shares authorized; 123,138,000 shares issued and outstanding as of September 30, 2017 and 121,645,000 shares issued and outstanding as of December 31, 2016	1,231	1,216
Additional paid-in capital	690,367	680,315
Accumulated deficit	(470,649)	(406,945)
Accumulated other comprehensive loss	(2,657)	(4,156)
Total stockholders' equity	218,292	270,430
Total liabilities and stockholders' equity	$ 661,497	$ 766,883

CONSOLIDATED BALANCE SHEETS (unaudited) (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Accumulated depreciation	$ 129,206	$ 134,786
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	123,138,000	121,645,000
Common stock, shares outstanding	123,138,000	121,645,000

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended		12 Months Ended	33 Months Ended
	Sep. 30, 2017	Jul. 01, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016	Jan. 02, 2016	Sep. 30, 2017
Cash flows from operating activities:
Net loss	$ (43,052)		$ (12,414)	$ (63,349)	$ (45,935)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization				45,591	47,908
Impairment of acquired intangible assets	36,198		7,866	36,198	7,866
Amortization of debt issuance costs and discount				1,680	1,212
Loss on sale or maturity of marketable securities				237	72
Gain on forward contracts				(72)	0
Stock-based compensation expense				9,286	12,107
(Gain) Loss on disposal of fixed assets				(197)	263
Gain on sale of building	(4,624)		0	(4,624)	0
Loss (gain) on sale of assets and business units				1,496	(2,646)
Equity in net loss of an unconsolidated affiliate, net of tax	199		407	692	1,085		$ 2,600
Changes in assets and liabilities:
Accounts receivable, net				20,687	(5,728)
Inventories				1,519	(4,644)
Prepaid expenses and other assets				3,839	(2,227)
Accounts payable and accrued expenses (includes restructuring)				(17,901)	6,295
Accrued payroll obligations				(2,002)	(454)
Income taxes payable				(711)	1,335
Deferred income and allowances on sales to sell-through distributors				3,862	3,067
Deferred licensing and services revenue				(485)	(258)
Net cash provided by operating activities				35,746	19,318
Cash flows from investing activities:
Proceeds from sales of and maturities of short-term marketable securities				9,689	11,977
Purchases of marketable securities				(7,420)	(5,961)
Proceeds from sale of building				7,895	0
Cash paid for costs of sale of building				(1,004)	0
Capital expenditures				(12,325)	(13,991)
Proceeds from sale of assets and business units, net of cash sold				967	1,972
Cash paid for a non-marketable equity method investment	(1,000)	$ (1,000)	(1,000)	(2,000)	(1,000)	$ (5,000)
Cash paid for software licenses				(6,472)	(7,370)
Net cash used in investing activities				(10,670)	(14,373)
Cash flows from financing activities:
Restricted stock unit withholdings				(2,787)	(2,883)
Proceeds from issuance of common stock				3,452	5,353
Repayment of debt				(33,679)	(4,279)
Net cash used in financing activities				(33,014)	(1,809)
Effect of exchange rate change on cash				1,381	(579)
Net increase in cash and cash equivalents				(6,557)	2,557
Beginning cash and cash equivalents				106,552	84,606
Ending cash and cash equivalents	99,995		87,163	99,995	87,163	$ 84,606	99,995
Supplemental cash flow information:
Change in unrealized gain (loss) related to marketable securities, net of tax, included in Accumulated other comprehensive loss				72	50
Income taxes paid, net of refunds				2,308	7,250
Interest paid				16,379	13,849
Accrued purchases of plant and equipment				51	1,678
Note receivable resulting from sale of assets and business units	$ 3,050		$ 0	$ 3,050	$ 0		$ 3,050

Basis of Presentation and Significant Accounting Policies

9 Months Ended

Sep. 30, 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 third quarter of fiscal 2017 and third quarter of fiscal 2016 ended on September 30, 2017 and October 1, 2016, respectively. All references to quarterly or nine months ended financial results are references to the results for the relevant 13-week or 39-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, impairment assessments, 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 Consolidated 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.” 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 obligations, 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, and we collect an annual 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 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 (see Note 10).

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:



	September 30, 2017		December 31, 2016
Total cost of contracts for Japanese yen (in thousands)	$	2,204	$	2,323
Number of contracts	2		2
Settlement month	June 2018		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 September 30, 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:



	Three Months Ended				Nine Months Ended
	September 30, 2017		October 1, 2016		September 30, 2017		October 1, 2016
Revenue attributable to top five end customers	23	%	32	%	28	%	25	%
Revenue attributable to largest end customer	5	%	14	%	9	%	7	%

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:



	Three Months Ended				Nine Months Ended
	September 30, 2017		October 1, 2016		September 30, 2017		October 1, 2016
Revenue attributable to sell-through distributors	68	%	62	%	65	%	58	%

Our two largest distributor groups also account for a substantial portion of our trade receivables. At September 30, 2017 and December 31, 2016, one distributor group accounted for 41% and 38%, respectively, and the other accounted for 28% 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 $9.4 million and $9.3 million at September 30, 2017 and December 31, 2016, respectively. Bad debt expense was negligible for the third quarter and first nine months of fiscal 2017. 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 resulting in an increase in allowance for doubtful accounts of $9.0 million at December 31, 2016 and bad debt expense of $7.5 million for the third quarter and first nine months 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 product revenue are reflected in Net loss in our Consolidated Statements of Operations, 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)	September 30, 2017			December 31, 2016
Inventory valued at published list prices and held by sell-through distributors with right of return	$	99,919		$	86,218
Allowance for distributor advances	(47,720		)	(37,090		)
Deferred cost of sales related to inventory held by sell-through distributors	(16,080		)	(16,871		)
Total Deferred income and allowances on sales to sell-through distributors	$	36,119		$	32,257

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. 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 beginning January 1, 2017. As a result, the HDMI agent is unable to distribute the majority of the royalties collected to the Founders and, given that the fixed and determinable revenue recognition criteria has not been met, we are unable to recognize all of the HDMI royalty revenue for the three and nine months ended September 30, 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.

In August 2017, we sold building space which we owned in Shanghai, China. The building space was vacated in fiscal 2015, upon consolidation of facilities to a single, alternate site in Shanghai following our acquisition of Silicon Image, and was sold for gross proceeds of approximately $7.9 million. As of the sale date, the asset had a historical cost of $3.6 million, accumulated depreciation of $1.4 million and we incurred $1.1 million of direct selling costs, resulting in a net gain on sale of $4.6 million, which is presented as Gain on sale of building in our Consolidated Statements of Operations.

New Accounting Pronouncements

Recently Adopted Accounting Standards

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) a full retrospective method applied to each prior reporting period presented, or (ii) a modified retrospective method applied with the cumulative effect of adoption recognized on December 31, 2017, the first day of our fiscal 2018. We plan to adopt this guidance using the modified retrospective transition method, which will result in an adjustment to accumulated deficit for the cumulative effect of applying this guidance to contracts in process as of the adoption date. Under this approach, we will not restate the prior financial statements presented. This guidance requires us to provide additional disclosures of the amount by which each financial statement line item is affected in the current reporting period during 2018 as compared to the guidance that was in effect before the change, and an explanation of the reasons for significant changes.

We have been executing against a project plan developed early in 2017 and believe that we are on schedule to be complete with our implementation efforts by the first quarter of fiscal 2018. Key ongoing elements of our project plan include the quantification of the impacts of the standard to revenues, contract acquisition costs, income taxes and various balance sheet accounts, and the design and implementation of relevant internal controls. Based on our current 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. 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. The impact of this change will depend primarily on the level of inventory held by sell-through distributors at the beginning and end of each period. To the extent these inventory levels fluctuate significantly, revenue under the new standard could be materially different than that under the current standard. Revenue to our sell-through distributors accounted for 72% and 71% of our product revenue and 68% and 65% of our total revenue for the three and nine months ended September 30, 2017, respectively, as compared to approximately 66% of product revenue and approximately 60% of total revenue during the year ended December 31, 2016. We also anticipate that the new standard will require us to recognize certain licensing revenues which are not recognizable under current GAAP due to the fixed and determinable revenue recognition criteria not being met. Unless we are able to meet the recognition criteria in the fourth quarter of 2017, we anticipate that the cumulative adjustment to 2018 opening accumulated deficit, as well as the increase in 2018 licensing revenues under the new standard, could be material.

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 the recognition of assets and liabilities arising from lease transactions on the balance sheet and will also require significant additional disclosures about the amount, timing, and uncertainty of cash flows from leases. Substantially all leases, including current operating leases, will be recognized by lessees on their balance sheet as a lease asset for its right to use the underlying asset and a lease liability for the corresponding lease obligation. The new guidance requires a modified prospective transition approach to recognize and measure leases at the beginning of the earliest period presented. 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.

In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, which provides clarity on which changes to the terms or conditions of share-based payment awards require entities to apply the modification accounting provisions required in Topic 718. This standard is effective for all entities for annual reporting periods beginning after December 15, 2017, with early adoption permitted, including adoption in any interim period for which financial statements have not yet been issued. We are currently evaluating the impact of ASU 2017-09 on our consolidated financial statements and related disclosures.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and simplifies the application of the hedge accounting guidance. This standard is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. We are currently evaluating the impact of ASU 2017-12 on our consolidated financial statements and related disclosures.

Net Loss per Share

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

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 in the following table:



	Three Months Ended						Nine Months Ended
(in thousands, except per share data)	September 30, 2017			October 1, 2016			September 30, 2017			October 1, 2016
Basic and diluted net loss	$	(43,052	)	$	(12,414	)	$	(63,349	)	$	(45,935	)
Shares used in basic and diluted net loss per share	122,990			120,584			122,393			119,596
Basic and diluted net loss per share	$	(0.35	)	$	(0.10	)	$	(0.52	)	$	(0.38	)

The computation of diluted net loss per share excludes the effects of stock options, RSUs, and ESPP shares that are antidilutive, aggregating approximately the following number of shares:



	Three Months Ended		Nine Months Ended
(in thousands)	September 30, 2017	October 1, 2016	September 30, 2017	October 1, 2016
Stock options, RSUs, and ESPP shares excluded as they are antidilutive	7,221	8,155	6,018	8,315

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 September 30, 2017 could become dilutive in the future.

Marketable Securities

9 Months Ended

Sep. 30, 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 have contractual maturities of up to two years, with less than one year remaining term as of September 30, 2017 and December 31, 2016.

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



(In thousands)	September 30, 2017		December 31, 2016
Short-term marketable securities:
Corporate and government bonds and notes, and commercial paper	$	7,982	$	10,230
Certificates of deposit	—		78
Total marketable securities	$	7,982	$	10,308

Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments



	Fair value measurements as of								Fair value measurements as of
	September 30, 2017								December 31, 2016
(In thousands)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Short-term marketable securities	$	7,982	$	7,982	$	—	$	—	$	10,308	$	10,230	$	78	$	—
Foreign currency forward exchange contracts, net	72		—		72		—		184		—		184		—
Total fair value of financial instruments	$	8,054	$	7,982	$	72	$	—	$	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." 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 nine 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 nine months ended September 30, 2017 and October 1, 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

9 Months Ended

Sep. 30, 2017

Inventory Disclosure [Abstract]

Inventories



(In thousands)	September 30, 2017		December 31, 2016
Work in progress	$	52,028	$	50,688
Finished goods	25,454		28,480
Total inventories	$	77,482	$	79,168

Sales of Assets and Business Units, and Goodwill

9 Months Ended

Sep. 30, 2017

Sales of Assets and Business Units, and Goodwill [Abstract]

Sales of Assets and Business Units, and Goodwill

Sales of Assets and Business Units

On September 30, 2017, in conjunction with our June 2017 restructuring plan (see Note 12), we sold 100% of the equity of our Hyderabad, India subsidiary and certain assets related to our Simplay Labs testing and certification business to an unrelated third party. The fair value of purchase price consideration was $5.3 million, which was comprised of $2.3 million of cash and a $3.0 million note receivable. We recorded a $1.8 million loss on the sale, including a $2.2 million disposal of a relative fair value share of our goodwill, which is included in Other (expense) income, net in the Consolidated Statements of Operations.

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. In the second quarter of fiscal 2017, we received a final escrow payment of $0.3 million related to the sale of Qterics, which was included as a gain in Other (expense) income, net in the Consolidated Statements of Operations for the period of receipt.

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 nine 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 related to the acquisition of Silicon Image, Inc. ("Silicon Image") 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.

As part of our accounting for the asset sale in September 2017, we recorded a $2.2 million disposal of a relative fair value share of our Goodwill. This change to the Goodwill balances on the Consolidated Balance Sheets is summarized in the following table:



(In thousands)	Goodwill
Balance at December 31, 2016	$	269,758
Less: Disposal of relative fair value share in sale of assets in September 2017	(2,244		)
Balance at September 30, 2017	$	267,514

Intangible Assets

9 Months Ended

Sep. 30, 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." Additionally, during fiscal 2015, we licensed additional third-party technology.

We monitor the carrying value of our intangible assets for potential impairment and test the recoverability of such assets annually during the fourth quarter and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. When we are required to determine the fair value of intangible assets other than goodwill, we use the income approach. We start with a forecast of all expected net cash flows associated with the asset and then apply a discount rate to arrive at fair value.

In the third quarter of 2017, we updated our annual strategic long-range plan, which resulted in revised forecasts, and we also sold 100% of the equity of our Hyderabad, India subsidiary and certain assets related to our Simplay Labs testing and certification business to an unrelated third party. We determined that these activities constituted impairment indicators related to the developed technology intangible assets acquired in our acquisition of Silicon Image. Our assessment of the fair value of these intangible assets concluded that they had been impaired as of September 30, 2017, and we recorded a preliminary impairment charge of $36.2 million in the Consolidated Statements of Operations. We are currently completing our evaluation of the information and assumptions used in the determination of the impairment charge. This includes reviewing information, inputs, assumptions, and valuation methodologies used to estimate the fair value of these intangible assets. The impairment charge is based on the preliminary valuation and is our best estimate as of the filing date of this 10-Q. The impairment charge will be subject to revision as more detailed analysis is performed and completed.

In September 2016, the founders of the HDMI consortium ("Founders"), of which we are a member, updated the Founders Agreement as part of a regular amendment process resulting in changes to our role as agent for the HDMI consortium and to the model for sharing adopter fee revenues. Under the terms of the amendment agreement, our role as the agent was terminated effective January 1, 2017 and a new independent entity was appointed to act as the new HDMI licensing agent with responsibility for licensing and the distribution of royalties among Founders. As a result of the amended model for sharing revenue, we will be entitled to a reduced share of adopter fees paid by parties adopting the HDMI standard. We determined that this modification constituted an impairment indicator related to the intangible assets acquired in the Silicon Image acquisition associated with future HDMI adopter fees. Our assessment of the fair value of these intangible assets concluded that they had been impaired as of the end of the third quarter of fiscal 2016, and we recorded a $7.9 million impairment charge in the Consolidated Statements of Operations.

During the first quarter of fiscal 2017, we sold a portfolio of patents that had been acquired in our acquisition of Silicon Image for $18.0 million. This amount was received in two installments over the first and second quarters of fiscal 2017, and was recognized as licensing and services revenue in our Consolidated Statements of Operations during the respective periods in which the installment payments were received. As a result of this transaction, Intangible assets, net was reduced by approximately $3.5 million on our Consolidated Balance Sheets.

On our Consolidated Balance Sheets at September 30, 2017 and December 31, 2016, Intangible assets, net are shown net of accumulated amortization of $94.6 million and $70.7 million, respectively, and net of accumulated impairment of $44.1 million and $7.9 million, respectively.

We recorded amortization expense related to intangible assets on the Consolidated Statements of Operations as presented in the following table:



	Three Months Ended				Nine Months Ended
(In thousands)	September 30, 2017		October 1, 2016		September 30, 2017		October 1, 2016
Research and development	$	128	$	186	$	442	$	559
Amortization of acquired intangible assets	8,526		8,260		25,777		25,292
	$	8,654	$	8,446	$	26,219	$	25,851

Equity Method Investment

9 Months Ended

Sep. 30, 2017

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investment

During fiscal 2015, we purchased a series of preferred stock ownership interests in a privately-held company that designs human-computer interaction technology for total consideration of $5.0 million. This gross investment constituted a 22.7% ownership interest. As a result of the ownership interest and after considering 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 have accounted for the investment by the equity method and have 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.

In each of the second and third quarters of fiscal 2017, we advanced the investee $1.0 million through a short-term instrument, bringing our total short-term advances to the investee to $2.0 million. As these investments are due and payable in the fourth quarter of fiscal 2017, they are included in Prepaid expenses and other current assets in our Consolidated Balance Sheets as of September 30, 2017. The investee repaid the total advances in October 2017.

Applying the equity method, the proportionate share of the investee's net loss that we have recognized in the Consolidated Statements of Operations is presented in the following table:



	Three Months Ended						Nine Months Ended
(In thousands)	September 30, 2017			October 1, 2016			September 30, 2017			October 1, 2016
Equity in net loss of an unconsolidated affiliate, net of tax	$	(199	)	$	(407	)	$	(692	)	$	(1,085	)

Through September 30, 2017, we have reduced the value of our investment by approximately $2.6 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	(692		)
Balance at September 30, 2017	$	3,357

Accounts Payable and Accrued Expenses

9 Months Ended

Sep. 30, 2017

Payables and Accruals [Abstract]

Accounts Payable and Accrued Expenses

Included in Accounts payable and accrued expenses are the following balances:



(In thousands)	September 30, 2017		December 31, 2016
Trade accounts payable	$	42,485	$	37,800
Liability for non-cancelable contracts	5,201		5,744
Payable to members of the MHL and HDMI consortia*	85		9,698
Other accrued expenses	15,083		27,691
Total accounts payable and accrued expenses	$	62,854	$	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 September 30, 2017 is due

to MHL consortium members only.

Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 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 nine months ended September 30, 2017	—		—		(63,349		)	—			(63,349		)
Unrealized loss related to marketable securities, net of tax	—		—		—			(72		)	(72		)
Recognized loss on redemption of marketable securities, previously unrealized	—		—		—			237			237
Translation adjustments, net of tax	—		—		—			1,381			1,381
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax	15		650		—			—			665
Stock-based compensation related to stock options, ESPP and RSUs (1)	—		9,402		—			—			9,402
Defined benefit pension, net of actuarial losses	—		—		—			(47		)	(47		)
Accounting method transition adjustment (2)	—		—		(355		)	—			(355		)
Balances, September 30, 2017	$	1,231	$	690,367	$	(470,649	)	$	(2,657	)	$	218,292

(1) In the third quarter of fiscal 2017, in relation to our sale of 100% of the equity of our Hyderabad, India subsidiary and certain

assets related to our Simplay Labs testing and certification business, certain stock compensation was accelerated due to a

change of control agreement. As a result of this acceleration, the equity effect of stock compensation shown above includes

approximately $0.1 million that was accrued in the restructuring balance as part of the June 2017 Plan (see Note 12).

(2) In 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.

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For the three months ended September 30, 2017 and October 1, 2016, we recorded an income tax benefit of approximately $0.3 million and a provision of approximately $1.0 million, respectively. For the nine months ended September 30, 2017 and October 1, 2016, we recorded an income tax provision of approximately $0.2 million and $7.4 million, respectively. The income tax benefit for the three months ended September 30, 2017 and the provision for the nine months ended September 30, 2017 represent tax at the federal, state, and foreign statutory tax rates adjusted for withholding taxes, changes in uncertain tax positions, changes in the U.S. valuation allowance, as well as other non-deductible items in the United States and foreign jurisdictions. The difference between the U.S. federal statutory tax rate of 35% and our effective tax rate for the three months ended September 30, 2017, as well as the difference between the U.S. federal statutory tax rate of 35% and our negative effective tax rate for the nine months ended September 30, 2017, results from valuation allowance increase that offsets the otherwise expected tax benefit from the pretax loss in the United States, zero tax rate in Bermuda which results in no tax benefit for the pretax loss in Bermuda, foreign rate differential, and discrete benefit from the release of uncertain tax positions. Through September 30, 2017, we evaluated the existing valuation allowance position in the United States and concluded that we should continue to maintain a valuation allowance against our federal and state deferred tax assets. 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 2014 for federal income taxes, 2013 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 China is currently under examination for 2016. We are not under examination in any other jurisdiction. We believe that it is reasonably possible that $1.4 million of unrecognized tax benefits and $0.1 million of associated interest and penalties could be recognized during the next twelve months. The $1.5 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 $27.1 million and $29.6 million at September 30, 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 of $24.2 million 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

9 Months Ended

Sep. 30, 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. Under this plan, no expense and approximately $0.3 million of expense was incurred during the three months ended September 30, 2017 and October 1, 2016, respectively, and approximately $0.1 million of credit and $6.3 million of expense was incurred during the nine months ended September 30, 2017 and October 1, 2016, respectively. Approximately $20.5 million of total expense has been incurred through September 30, 2017 under the March 2015 Plan, and we believe this amount approximates the total costs expected.

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. Under this reduction, no expenses were incurred during either of the three months ended September 30, 2017 and October 1, 2016, and approximately $0.7 million of credit and $2.0 million of expense was incurred during the nine months ended September 30, 2017 and October 1, 2016, respectively. Approximately $7.2 million of total expense has been incurred through September 30, 2017 under the September 2015 Reduction, and we believe this amount approximates the total costs expected.

In June 2017, our Board of Directors approved an additional internal restructuring plan (the "June 2017 Plan"), which included the sale of 100% of the equity of our Hyderabad, India subsidiary and certain assets related to our Simplay Labs testing and certification business, a worldwide workforce reduction, and an initiative to reduce our infrastructure costs. These actions are part of an overall plan to achieve financial targets and to enhance our financial and competitive position by better aligning our revenue and operating expenses. Under this plan, approximately $3.1 million of expense was incurred during the three months ended September 30, 2017. Approximately $5.5 million of total expense has been incurred through September 30, 2017 under the June 2017 Plan, and we expect the total cost to be approximately $8.0 million to $19.0 million.

The approximately $5.5 million of expense related to the June 2017 Plan has been offset by credits from the March 2015 Plan and the September 2015 Reduction discussed above totaling approximately $0.8 million for the first nine months of fiscal 2017, resulting in the net charge of approximately $4.7 million 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	1,863			2,343			1,917			2,193			8,316
Costs paid or otherwise settled	(4,688		)	(2,315		)	(2,211		)	(2,066		)	(11,280		)
Balance at October 1, 2016	$	871		$	1,033		$	83		$	127		$	2,114

Balance at December 31, 2016	$	801		$	1,036		$	25		$	12		$	1,874
Restructuring charges	2,433			816			686			778			4,713
Costs paid or otherwise settled	(1,707		)	(897		)	(711		)	(771		)	(4,086		)
Balance at September 30, 2017	$	1,527		$	955		$	—		$	19		$	2,501

* Includes employee relocation costs and accelerated stock compensation

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

relationship management systems

Long-Term Debt

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

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 one-month LIBOR as of September 30, 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 6.15%.

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. In the second quarter of fiscal 2017, we made another required additional principal payment of $8.3 million due to a sale of patents, and 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 annual excess cash flow payment.

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 September 30, 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)	September 30, 2017			December 31, 2016
Principal amount	$	308,542		$	342,221
Unamortized original issue discount and debt costs	(5,918		)	(7,599		)
Less: Current portion of long-term debt	(22,243		)	(33,767		)
Long-term debt	$	280,381		$	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				Nine Months Ended
(In thousands)	September 30, 2017		October 1, 2016		September 30, 2017		October 1, 2016
Contractual interest	$	3,492	$	4,563	$	12,202	$	13,798
Amortization of debt issuance costs and discount	326		553		1,680		1,212
Total Interest expense related to the Term Loan	$	3,818	$	5,116	$	13,882	$	15,010

As of September 30, 2017, expected future principal payments on the Term Loan were as follows:



Fiscal year	(in thousands)

2017 (remaining 3 months)	$	1,750
2018	22,822
2019	32,536
2020	65,202
2021	186,232
	$	308,542

Stock-Based Compensation

9 Months Ended

Sep. 30, 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 is presented in the following table:



	Three Months Ended				Nine Months Ended
(In thousands)	September 30, 2017		October 1, 2016		September 30, 2017		October 1, 2016
Cost of products sold	$	154	$	231	$	562	$	656
Research and development	980		2,024		4,129		5,951
Selling, general and administrative	1,380		2,054		4,595		5,500
Total stock-based compensation	$	2,514	$	4,309	$	9,286	$	12,107

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. In 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. During the second quarter of fiscal 2017, approximately 9,200 vested options were exercised, while 28,000 unvested options were canceled due to termination. There were no vestings or cancellations in the third quarter of fiscal 2017. A total of approximately 376,200 stock options were outstanding as of September 30, 2017, which includes the approximately 82,300 that vested but were not exercised. We incurred stock compensation expense related to these market condition awards of approximately $0.1 million and approximately $0.4 million in the third quarter and first nine months, respectively, of fiscal 2017 and approximately $0.2 million and approximately $0.4 million in the third quarter and first nine months, respectively, of fiscal 2016.

Contingencies	9 Months Ended
Contingencies	Sep. 30, 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. In August 2017, we entered into a Settlement and License Agreement pursuant to which we granted to Technicolor a fully-paid license with respect to the subject patents and resolved claims of prior infringement. From time to time, we are exposed to certain other asserted and unasserted potential claims. 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. 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

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Segment and Geographic Information

Segment Information

As of September 30, 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 prior to the sale of Qterics in April 2016.

Geographic Information

Our revenue by major geographic area, based on ship-to location, is presented in the following table:



	Three Months Ended								Nine Months Ended
(In thousands)	September 30, 2017				October 1, 2016				September 30, 2017				October 1, 2016
Asia	$	68,677	75	%	$	83,797	74	%	$	207,081	71	%	$	216,964	70	%
Europe	10,972		12		13,111		12		32,631		11		43,849		14
Americas	12,322		13		16,317		14		50,983		18		48,133		16
Total revenue	$	91,971	100	%	$	113,225	100	%	$	290,695	100	%	$	308,946	100	%

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

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



(In thousands)	September 30, 2017		December 31, 2016
United States	$	31,641	$	30,532

China	5,311		10,617
Philippines	4,204		4,928
Taiwan	1,285		2,310
India	—		215
Japan	397		637
Other	398		242
Total foreign property and equipment, net	11,595		18,949
Total property and equipment, net	$	43,236	$	49,481

Basis of Presentation and Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 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 Consolidated 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:



	September 30, 2017		December 31, 2016
Total cost of contracts for Japanese yen (in thousands)	$	2,204	$	2,323
Number of contracts	2		2
Settlement month	June 2018		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:



	Three Months Ended				Nine Months Ended
	September 30, 2017		October 1, 2016		September 30, 2017		October 1, 2016
Revenue attributable to top five end customers	23	%	32	%	28	%	25	%
Revenue attributable to largest end customer	5	%	14	%	9	%	7	%

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



	Three Months Ended				Nine Months Ended
	September 30, 2017		October 1, 2016		September 30, 2017		October 1, 2016
Revenue attributable to sell-through distributors	68	%	62	%	65	%	58	%

Revenue Recognition and Deferred Income

Product Revenue

Licensing and Services Revenue

Property and Equipment

New Accounting Pronouncements

Recently Adopted Accounting Standards

Recently Issued Accounting Standards

Basis of Presentation and Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 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:



	September 30, 2017		December 31, 2016
Total cost of contracts for Japanese yen (in thousands)	$	2,204	$	2,323
Number of contracts	2		2
Settlement month	June 2018		June 2017

Schedules of Revenue Concentration of Risk

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



	Three Months Ended				Nine Months Ended
	September 30, 2017		October 1, 2016		September 30, 2017		October 1, 2016
Revenue attributable to top five end customers	23	%	32	%	28	%	25	%
Revenue attributable to largest end customer	5	%	14	%	9	%	7	%

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



	Three Months Ended				Nine Months Ended
	September 30, 2017		October 1, 2016		September 30, 2017		October 1, 2016
Revenue attributable to sell-through distributors	68	%	62	%	65	%	58	%

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)	September 30, 2017			December 31, 2016
Inventory valued at published list prices and held by sell-through distributors with right of return	$	99,919		$	86,218
Allowance for distributor advances	(47,720		)	(37,090		)
Deferred cost of sales related to inventory held by sell-through distributors	(16,080		)	(16,871		)
Total Deferred income and allowances on sales to sell-through distributors	$	36,119		$	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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Net Loss per Share (Tables)

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Schedule of Earnings Per Share Reconciliation

A summary of basic and diluted net loss per share is presented in the following table:



	Three Months Ended						Nine Months Ended
(in thousands, except per share data)	September 30, 2017			October 1, 2016			September 30, 2017			October 1, 2016
Basic and diluted net loss	$	(43,052	)	$	(12,414	)	$	(63,349	)	$	(45,935	)
Shares used in basic and diluted net loss per share	122,990			120,584			122,393			119,596
Basic and diluted net loss per share	$	(0.35	)	$	(0.10	)	$	(0.52	)	$	(0.38	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The computation of diluted net loss per share excludes the effects of stock options, RSUs, and ESPP shares that are antidilutive, aggregating approximately the following number of shares:



	Three Months Ended		Nine Months Ended
(in thousands)	September 30, 2017	October 1, 2016	September 30, 2017	October 1, 2016
Stock options, RSUs, and ESPP shares excluded as they are antidilutive	7,221	8,155	6,018	8,315

Marketable Securities (Tables)

9 Months Ended

Sep. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Schedule of Composition of Marketable Securities

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



(In thousands)	September 30, 2017		December 31, 2016
Short-term marketable securities:
Corporate and government bonds and notes, and commercial paper	$	7,982	$	10,230
Certificates of deposit	—		78
Total marketable securities	$	7,982	$	10,308

Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Financial Instruments



	Fair value measurements as of								Fair value measurements as of
	September 30, 2017								December 31, 2016
(In thousands)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Short-term marketable securities	$	7,982	$	7,982	$	—	$	—	$	10,308	$	10,230	$	78	$	—
Foreign currency forward exchange contracts, net	72		—		72		—		184		—		184		—
Total fair value of financial instruments	$	8,054	$	7,982	$	72	$	—	$	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)

9 Months Ended

Sep. 30, 2017

Inventory Disclosure [Abstract]

Schedule of Inventories



(In thousands)	September 30, 2017		December 31, 2016
Work in progress	$	52,028	$	50,688
Finished goods	25,454		28,480
Total inventories	$	77,482	$	79,168

Sales of Assets and Business Units, and Goodwill (Tables)

9 Months Ended

Sep. 30, 2017

Sales of Assets and Business Units, and Goodwill [Abstract]

Schedule of Goodwill

This change to the Goodwill balances on the Consolidated Balance Sheets is summarized in the following table:



(In thousands)	Goodwill
Balance at December 31, 2016	$	269,758
Less: Disposal of relative fair value share in sale of assets in September 2017	(2,244		)
Balance at September 30, 2017	$	267,514

Intangible Assets (Tables)

9 Months Ended

Sep. 30, 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 presented in the following table:



	Three Months Ended				Nine Months Ended
(In thousands)	September 30, 2017		October 1, 2016		September 30, 2017		October 1, 2016
Research and development	$	128	$	186	$	442	$	559
Amortization of acquired intangible assets	8,526		8,260		25,777		25,292
	$	8,654	$	8,446	$	26,219	$	25,851

Equity Method Investment (Tables)

9 Months Ended

Sep. 30, 2017

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investment, Investee's Net Loss

Applying the equity method, the proportionate share of the investee's net loss that we have recognized in the Consolidated Statements of Operations is presented in the following table:



	Three Months Ended						Nine Months Ended
(In thousands)	September 30, 2017			October 1, 2016			September 30, 2017			October 1, 2016
Equity in net loss of an unconsolidated affiliate, net of tax	$	(199	)	$	(407	)	$	(692	)	$	(1,085	)

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	(692		)
Balance at September 30, 2017	$	3,357

Accounts Payable and Accrued Expenses (Tables)

9 Months Ended

Sep. 30, 2017

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Liabilities

Included in Accounts payable and accrued expenses are the following balances:



(In thousands)	September 30, 2017		December 31, 2016
Trade accounts payable	$	42,485	$	37,800
Liability for non-cancelable contracts	5,201		5,744
Payable to members of the MHL and HDMI consortia*	85		9,698
Other accrued expenses	15,083		27,691
Total accounts payable and accrued expenses	$	62,854	$	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 September 30, 2017 is due

to MHL consortium members only.

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

9 Months Ended

Sep. 30, 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 nine months ended September 30, 2017	—		—		(63,349		)	—			(63,349		)
Unrealized loss related to marketable securities, net of tax	—		—		—			(72		)	(72		)
Recognized loss on redemption of marketable securities, previously unrealized	—		—		—			237			237
Translation adjustments, net of tax	—		—		—			1,381			1,381
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax	15		650		—			—			665
Stock-based compensation related to stock options, ESPP and RSUs (1)	—		9,402		—			—			9,402
Defined benefit pension, net of actuarial losses	—		—		—			(47		)	(47		)
Accounting method transition adjustment (2)	—		—		(355		)	—			(355		)
Balances, September 30, 2017	$	1,231	$	690,367	$	(470,649	)	$	(2,657	)	$	218,292