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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 30, 2019	Apr. 29, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	LATTICE SEMICONDUCTOR CORP
Entity Central Index Key	0000855658
Document Type	10-Q
Document Period End Date	Mar. 30, 2019
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-28
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		132,017,866

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Revenue:
Revenue	$ 98,091	$ 98,623
Costs and expenses:
Cost of product revenue	40,439	42,102
Research and development	19,665	22,941
Selling, general, and administrative	20,781	27,043
Amortization of acquired intangible assets	3,389	5,636
Restructuring charges	1,341	1,029
Acquisition related charges	0	667
Total costs and expenses	85,615	99,418
Income (loss) from operations	12,476	(795)
Interest expense	(4,987)	(5,114)
Other income, net	153	554
Income (loss) before income taxes	7,642	(5,355)
Income tax expense	234	597
Net income (loss)	$ 7,408	$ (5,952)
Net income (loss) per share:
Basic (in usd per share)	$ 0.06	$ (0.05)
Diluted (in usd per share)	$ 0.05	$ (0.05)
Shares used in per share calculations:
Basic (in shares)	130,992	124,076
Diluted (in shares)	134,810	124,076
Product
Revenue:
Revenue	$ 91,612	$ 95,109
Licensing and services
Revenue:
Revenue	$ 6,479	$ 3,514

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 7,408	$ (5,952)
Other comprehensive income (loss):
Unrealized gain (loss) related to marketable securities, net of tax	42	(7)
Reclassification adjustment for gains related to marketable securities included in Other income, net of tax	(53)	(1)
Translation adjustment, net of tax	47	589
Comprehensive income (loss)	$ 7,444	$ (5,371)

- Definition

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

+ References + Details

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Mar. 30, 2019	Dec. 29, 2018
Current assets:
Cash and cash equivalents	$ 130,391	$ 119,051
Short-term marketable securities	0	9,624
Accounts receivable, net of allowance for doubtful accounts	55,606	60,890
Inventories	66,773	67,096
Prepaid expenses and other current assets	28,993	27,762
Total current assets	281,763	284,423
Property and equipment, less accumulated depreciation of $139,985 at March 30, 2019 and $141,367 at December 29, 2018	36,758	34,883
Operating lease right-of-use assets	27,868	0
Intangible assets, net	17,187	21,325
Goodwill	267,514	267,514
Deferred income taxes	215	215
Other long-term assets	13,421	15,327
Total assets	644,726	623,687
Current liabilities:
Accounts payable and accrued expenses (includes restructuring)	50,789	51,763
Accrued payroll obligations	6,577	9,365
Current portion of long-term debt	7,796	8,290
Current portion of operating lease liabilities	5,027
Total current liabilities	70,189	69,418
Long-term debt, net of current portion	225,662	251,357
Long-term operating lease liabilities, net of current portion	25,376
Other long-term liabilities	42,344	44,455
Total liabilities	363,571	365,230
Contingencies (Note 16)
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; 131,905,000 shares issued and outstanding as of March 30, 2019 and 129,728,000 shares issued and outstanding as of December 29, 2018	1,319	1,297
Additional paid-in capital	751,506	736,274
Accumulated deficit	(469,375)	(476,783)
Accumulated other comprehensive loss	(2,295)	(2,331)
Total stockholders' equity	281,155	258,457
Total liabilities and stockholders' equity	$ 644,726	$ 623,687

CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 30, 2019	Dec. 29, 2018
Statement of Financial Position [Abstract]
Accumulated depreciation	$ 139,985	$ 141,367
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	131,905,000	129,728,000
Common stock, shares outstanding	131,905,000	129,728,000

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net income (loss)	$ 7,408	$ (5,952)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	8,403	12,356
Amortization of operating lease right-of-use assets	1,487	0
Amortization of debt issuance costs and discount	686	507
Gain on sale or maturity of marketable securities	(53)	(1)
(Gain) loss on forward contracts	(84)	99
Stock-based compensation expense	3,686	4,800
Impairment of operating lease right-of-use asset (recorded in Restructuring charges)	757	0
Loss (gain) on disposal of fixed assets	8	(58)
Changes in assets and liabilities:
Accounts receivable, net	5,284	(8,867)
Inventories	323	2,356
Prepaid expenses and other assets	(1,965)	(3,253)
Accounts payable and accrued expenses (includes restructuring)	330	1,567
Accrued payroll obligations	(2,788)	(1,441)
Operating lease liabilities, current and long-term portions	(2,089)	0
Income taxes payable	365	413
Deferred licensing and services revenue	0	(68)
Net cash provided by operating activities	21,758	2,458
Cash flows from investing activities:
Proceeds from sales of and maturities of short-term marketable securities	9,655	2,500
Purchases of marketable securities	0	(9,603)
Capital expenditures	(3,074)	(1,804)
Cash paid for software licenses	(1,739)	(1,837)
Net cash provided by (used in) investing activities	4,842	(10,744)
Cash flows from financing activities:
Restricted stock unit tax withholdings	(418)	(459)
Proceeds from issuance of common stock	11,986	1,608
Repayment of debt	(26,875)	(875)
Net cash (used in) provided by financing activities	(15,307)	274
Effect of exchange rate change on cash	47	589
Net increase (decrease) in cash and cash equivalents	11,340	(7,423)
Beginning cash and cash equivalents	119,051	106,815
Ending cash and cash equivalents	130,391	99,392
Supplemental cash flow information:
Interest paid	4,383	4,420
Operating lease payments	2,597	0
Income taxes paid, net of refunds	280	40
Accrued purchases of plant and equipment	1,417	232
Operating lease right-of-use assets obtained in exchange for lease obligations	219	0
Change in unrealized (gain) loss related to marketable securities, net of tax, included in Accumulated other comprehensive loss	$ (42)	$ 7

Basis of Presentation and Significant Accounting Policies

3 Months Ended

Mar. 30, 2019

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 presentation 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 as permitted by the SEC's 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 29, 2018.

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 2019 and first quarter of fiscal 2018 ended on March 30, 2019 and March 31, 2018, respectively. All references to quarterly financial results are references to the results for the relevant 13-week 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, contract assets and contract liabilities, inventory, depreciable lives of fixed assets, lease right-of-use assets and lease liabilities, goodwill (including the assessment of reporting units), intangible assets, current and deferred income taxes, accrued liabilities (including restructuring charges and bonus arrangements), disclosure of contingent assets and liabilities at the date of the financial statements, impairment assessments, the fair value of equity awards, 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 that 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 Income (Loss). Deposits with financial institutions at times exceed Federal Deposit Insurance Corporation insurance limits.

Fair Value of Financial Instruments

From time to time, 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 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 subsidiaries 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 income, net in our Consolidated Statements of Operations. 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 11 - Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss").

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:



	March 30, 2019		December 29, 2018
Total cost of contracts for Japanese yen (in thousands)	$	2,883	$	1,955
Number of contracts	3		2
Settlement month	June 2019		June 2019

Although these hedges mitigate our foreign currency exchange rate exposure from an economic perspective, they were not designated as "effective" hedges for accounting purposes and as such are adjusted to fair value through Other income, net, with gains of approximately $0.1 million for each of the fiscal quarters ended March 30, 2019 and December 29, 2018. We do not hold or issue derivative financial instruments for trading or speculative purposes.

Concentration Risk

Potential exposure to concentration risk may impact revenue, accounts receivable, and supply of wafers for our products.

Customer and distributor concentration risk may impact revenue. In the periods covered by this report, no end customer accounted for more than 10% of total revenue.

Distributors have historically accounted for a significant portion of our total revenue. Revenue attributable to distributors as a percentage of total revenue was 79% and 87% for the three months ended March 30, 2019 and March 31, 2018, respectively.

Our two largest distributor groups, Arrow Electronics, Inc. ("Arrow") and the Weikeng Group ("Weikeng"), also account for a substantial portion of our net accounts receivable. At March 30, 2019 and December 29, 2018, Arrow accounted for 34% and 41%, respectively, and Weikeng accounted for 32% and 23%, respectively, of net accounts receivable. A third distributor accounted for 12% of net accounts receivable at March 30, 2019, but accounted for less than 10% of net accounts receivable at December 29, 2018. No other distributor group or end customer accounted for more than 10% of net accounts receivable at these dates.

Concentration of credit risk with respect to accounts receivable 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 $0.2 million at both March 30, 2019 and December 29, 2018. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on assessment of known troubled accounts, analysis of the aging of our accounts receivable, historical experience, management judgment, and other currently available evidence. We write off accounts receivable against the allowance when we determine a balance is uncollectible and no longer actively pursue collection of the receivable.

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, among other factors.

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.

Leases

On December 30, 2018, the first day of our 2019 fiscal year, we adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), which increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. See "Note 7 - Leases" for further information on our leases and our application of Topic 842.

Goodwill

Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is not amortized, but instead is 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.

New Accounting Pronouncements

Recently Issued Accounting Standards

In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), which clarifies the accounting for implementation costs in cloud computing arrangements. This guidance is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. We are currently assessing the impact of ASU 2018-15 on our consolidated financial statements and related disclosures.

In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements, which clarified the FASB’s original intent to grant disclosure relief for interim periods during the year in which a company adopts Topic 842. ASU 2019-01 accomplishes this by explicitly providing an exception to the paragraph 250-10-50-3 interim disclosure requirements in the Topic 842 transition disclosure requirements. Paragraph 250-10-50-3 requires entities to provide in the fiscal year in which a new accounting principle is adopted the identical disclosures for interim periods after the date of adoption. Thus, ASU 2019-01 exempts entities from such reporting in interim periods in the fiscal year in which the entities adopt Topic 842. The amendments set forth in ASC 2019-01 take effect in fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. We will follow this exception for interim periods in the current fiscal year, concurrent with our adoption of Topic 842.

Revenue from Contracts with Customers

3 Months Ended

Mar. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

We adopted ASC 606, "Revenue from Contracts with Customers," effective on December 31, 2017, the first day of our 2018 fiscal year, using the modified retrospective method. As a result of this adoption, we revised our accounting policy for revenue recognition as detailed below.

We recognize revenue under the core principle of depicting the transfer of control to our customers in an amount reflecting the consideration we expect to be entitled. In order to achieve that core principle, we apply the following five step approach, as further described below: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to each performance obligation in the contract, and (5) recognize revenue when applicable performance obligations are satisfied.

Product Revenue

Identify the contract with a customer - Our product revenues consist of sales to original equipment manufacturers ("OEMs") and to distributors. We consider customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. In certain cases we consider firm forecasts that are agreed to by both us and the customer to be contracts. For sales to distributors, we have concluded that our contracts are with the distributor, rather than with the distributor’s end customer, as we hold a contract bearing enforceable rights and obligations only with the distributor. As part of our consideration of the contract, we evaluate certain factors including the customer’s ability to pay (or credit risk).

Identify the performance obligations in the contract - For each contract, we consider our promise to transfer each distinct product to be the identified performance obligations.

Determine the transaction price - In determining the transaction price, we evaluate whether the set contract price is subject to refund or adjustment to determine the net consideration to which we expect to be entitled. As our standard payment terms are less than one year, we have elected to apply the practical expedient to not assess whether a contract has a significant financing component.

Sales to most distributors are made under terms allowing certain price adjustments and limited rights of return of our products held in their inventory or upon sale to their end customers. Revenue from sales to distributors is recognized upon the transfer of control to the distributor, which generally occurs upon shipment of product to the distributor. Frequently, distributors need to sell at a price lower than the standard distribution price in order to win business. At the time the distributor invoices its customer or soon thereafter, the distributor submits a “ship and debit” price adjustment claim to us to adjust the distributor’s cost from the standard price to the pre-approved lower price. After we verify that the claim was pre-approved, we issue a credit memo to the distributor for the ship and debit claim. In determining the transaction price, we consider ship and debit price adjustments to be variable consideration. Such price adjustments are estimated using the expected value method based on an analysis of historical ship and debit claims, at the distributor and product level, over a period of time considered adequate to account for current pricing and business trends. Any differences between the estimated consideration and the actual amount received from the customer is recorded in the period that the actual consideration becomes known. Most of our distributors are entitled to limited rights of return, referred to as stock rotation, not to exceed 5% of billings, net of returns and ship and debit price adjustments. Stock rotation reserves are based on historical return rates and recorded as a reduction to revenue with a corresponding reduction to cost of goods sold for the estimated cost of inventory that we expect to be returned.

Sales to OEMs and certain distributors are made under terms that do not include rights of return or price concessions after we ship the product. Accordingly, the transaction price equals the invoice price and there is no variable consideration.

Allocate the transaction price to each performance obligation in the contract - Because our product revenue contracts generally include the delivery of a certain quantity of semiconductors as the single performance obligation, we do not allocate revenue across distinct performance obligations. However, we frequently receive orders for products to be delivered over multiple dates that may extend across several reporting periods. We invoice for each delivery upon shipment and recognize revenues for each distinct product delivered, assuming transfer of control has occurred. Payment term for invoices are generally 30 to 60 days.

Recognize revenue when applicable performance obligations are satisfied - Revenue is recognized when control of the product is transferred to the customer (i.e., when our performance obligation is satisfied), which typically occurs at shipment. In determining whether control has transferred, we also consider if there is a present right to payment and legal title, along with whether the risks and rewards of ownership have transferred to the customer. We have certain vendor-managed inventory arrangements with certain OEM customers whereby we ship product into an inventory hub location but for which control does not transfer until the customer consumes the inventory. In such cases, we recognize revenue upon customer consumption.

Licensing and Services Revenue

Identify the contract with a customer - 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 to monetize our IP associated with our technology and standards. We consider licensing arrangements with our customers to be the contract.

Identify the performance obligations in the contract - For each contract, we consider the promise to deliver a license that grants the customer the right to use the IP, as well as any professional services provided under the contract, as distinct performance obligations.

Determine the transaction price - Our HDMI and MHL standards revenue, as well as certain IP licenses, include variable consideration in the form of usage-based royalties. We apply the provisions of ASC 606 in accounting for these types of arrangements, whereby we do not include estimated royalties in the transaction price at the origination of the contract but rather recognize royalty revenue as usage occurs.

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 royalty sharing formula covered the period from January 1, 2014 through December 31, 2016, and an interim agreement covering the period from January 1, 2017 through December 31, 2017 was signed in the second quarter of fiscal 2018. However, a new agreement covering the period beginning January 1, 2018 is yet to be signed. While a new royalty sharing agreement is being negotiated with the other Founders of the HDMI consortium, the HDMI agent is unable to distribute the majority of the royalties collected to the Founders. We are recording revenue based on our estimated share of the royalties, which we determine using an analytical model that combines historical and forecasted collection trends with our expected share of those collections. This estimate will be adjusted once the Founders finalize the agreement for the period beginning January 1, 2018.

Allocate the transaction price to each performance obligation in the contract - For contracts that include multiple performance obligations (most commonly those that include licenses and professional services, but which also may include inventory), we allocate revenue to each performance obligation based on the best estimate of the standalone selling price of each obligation. When available, we use the observable standalone selling price of the performance obligations. When the standalone selling price is not directly observable, we use an adjusted market assessment approach or the expected cost plus margin approach to estimate standalone selling price.

Recognize revenue when applicable performance obligations are satisfied - We recognize license revenue at the point in time that control of the license transfers to the customer, which is generally upon delivery. We recognize professional service revenue as we perform the services. Royalty revenues are recognized as customers sell products that include our IP and are legally obligated to remit royalties to us. We receive payments from customers based on contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Payment terms on invoiced amounts are typically 30 days.

Other matters

We generally provide an assurance warranty that our products will substantially conform to the published specifications for twelve months from the date of shipment. In some case the warranty period may be longer than twelve months. We do not separately price or sell the assurance warranty. Our liability is limited to either a credit equal to the purchase price or replacement of the defective part. Returns under warranty have historically been immaterial. As such, we do not record a specific warranty reserve or consider activities related to such warranty, if any, to be a separate performance obligation.

Under the practical expedient provided by ASC 340, "Other Assets and Deferred Costs," we generally expense sales commissions when incurred because the amortization period would have been less than one year. We record these costs within Selling, general, and administrative expenses.

Substantially all of our performance obligations are satisfied within twelve months. Accordingly, under the optional exemption provided by ASC 606, we do not disclose revenues allocated to future performance obligations of partially completed contracts.

As of March 30, 2019, we have contract liabilities totaling approximately $3.9 million, which is comprised of approximately $3.2 million accrued for estimated future stock rotation and scrap returns. We also have a contract liability of approximately $0.7 million related to a prepayment for products to be manufactured and delivered to the customer within six months. We will recognize the revenue related to the contract liability when control of the product is transferred to the end customer.

Contract assets relate to our rights to consideration for licenses and royalties due to us as a member of the HDMI consortium, with collection dependent on events other than the passage of time, such as collection of licenses and royalties from customers by the HDMI licensing agent and the finalization of a new royalty sharing agreement. The contract assets are recorded in Prepaid expenses and other current assets in our Consolidated Balance Sheets, and they are transferred to Accounts receivable when the rights become unconditional.

The following table summarizes the activity for our contract assets during the first three months of fiscal 2019:



(In thousands)
Balance as of December 29, 2018	$	9,143
Revenues recorded during the period	2,947
Transferred to accounts receivable or collected	(1,118		)
Balance as of March 30, 2019	$	10,972

Disaggregation of revenue

The following tables provide information about revenue from contracts with customers disaggregated by major class of revenue and by geographical market, based on ship-to location of the end customer, where available, and ship-to location of distributor otherwise:



Major Class of Revenue	Three Months Ended
(In thousands)	March 30, 2019	March 31, 2018
Product revenue - Distributors	77,472	85,957
Product revenue - Direct	14,140	9,152
Licensing and services revenue	6,479	3,514
Total revenue	98,091	98,623

Revenue by Geographical Market	Three Months Ended
(In thousands)	March 30, 2019	March 31, 2018
Asia	69,011	71,921
Europe	12,210	12,142
Americas	16,870	14,560
Total revenue	98,091	98,623

Net Income (Loss) per Share

3 Months Ended

Mar. 30, 2019

Earnings Per Share [Abstract]

Net Income (Loss) per Share

We compute basic Net income (loss) per share by dividing Net income (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. When we are in a net loss position, we do not include dilutive securities as their inclusion would reduce the net loss per share.

The number of shares from our equity awards with market conditions or performance conditions that are included in the diluted share count is based on the number of shares, if any, that would be issuable under the terms of such awards at the end of the reporting period. Under these terms, the maximum number of shares issuable from the equity awards with a market condition are included in the diluted share count as of March 30, 2019, as the market condition would have been achieved at the highest level of vesting if measured as of the end of the reporting period. No shares related to the performance conditions are included in the diluted share count as of March 30, 2019, as vesting of these awards is contingent upon evaluation of the performance condition over two consecutive trailing four-quarter periods, which have not yet elapsed. See "Note 15 - Stock-Based Compensation" to our consolidated financial statements for further discussion of our equity awards with market conditions or performance conditions.

A summary of basic and diluted Net income (loss) per share is presented in the following table:



	Three Months Ended
(in thousands, except per share data)	March 30, 2019		March 31, 2018
Net income (loss)	$	7,408	$	(5,952	)

Shares used in basic Net income (loss) per share	130,992		124,076
Dilutive effect of stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition	3,818		—
Shares used in diluted Net income (loss) per share	134,810		124,076

Basic Net income (loss) per share	$	0.06	$	(0.05	)
Diluted Net income (loss) per share	$	0.05	$	(0.05	)

The computation of diluted Net income (loss) per share excludes the effects of stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition that are antidilutive, aggregating approximately the following number of shares:



	Three Months Ended
(in thousands)	March 30, 2019	March 31, 2018
Stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition excluded as they are antidilutive	812	9,424

Stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition 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 we are in a net loss position, as the effects would reduce the loss per share. Stock options, RSUs, and ESPP shares that are antidilutive at March 30, 2019 could become dilutive in the future.

Marketable Securities

3 Months Ended

Mar. 30, 2019

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. During the periods presented, our Short-term marketable securities consisted of U.S. government agency obligations with contractual maturities of up to two years. We liquidated our Short-term marketable securities during the first quarter of fiscal 2019. The following table summarizes the remaining maturities of our Short-term marketable securities at fair value:



(In thousands)	March 30, 2019		December 29, 2018
Short-term marketable securities:
Maturing within one year	$	—	$	7,454
Maturing between one and two years	—		2,170
Total marketable securities	$	—	$	9,624

Fair Value of Financial Instruments

3 Months Ended

Mar. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments



	Fair value measurements as of								Fair value measurements as of
	March 30, 2019								December 29, 2018
(In thousands)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Short-term marketable securities	$	—	$	—	$	—	$	—	$	9,624	$	9,624	$	—	$	—
Foreign currency forward exchange contracts, net	84		—		84		—		53		—		53		—
Total fair value of financial instruments	$	84	$	—	$	84	$	—	$	9,677	$	9,624	$	53	$	—

In the periods presented, we were invested in U.S. Government agency obligations, which we liquidated during the first quarter of fiscal 2019. 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 - Basis of Presentation and Significant Accounting Policies." There were no transfers between any of the levels during the first three months of fiscal 2019 or 2018.

In accordance with ASC 320, “Investments-Debt and Equity Securities,” we recorded an unrealized gain of less than $0.1 million during the three months ended March 30, 2019 and an unrealized loss of less than $0.1 million during the three months ended March 31, 2018 on certain Short-term marketable securities (Level 1 instruments), which have been recorded 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

Mar. 30, 2019

Inventory Disclosure [Abstract]

Inventories



(In thousands)	March 30, 2019		December 29, 2018
Work in progress	$	49,096	$	47,224
Finished goods	17,677		19,872
Total inventories	$	66,773	$	67,096

Leases

3 Months Ended

Mar. 30, 2019

Leases [Abstract]

Leases

We adopted ASC 842, "Leases," effective on December 30, 2018, the first day of our 2019 fiscal year, using the modified retrospective transition method. The new standard requires lessees to record assets and liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations.

We evaluated the transition and presentation approaches available as well as the impact of the new guidance on our consolidated financial statements and related disclosures, including the increase in the assets and liabilities on our balance sheet, and the impact on our current lease portfolio from both a lessor and lessee perspective. To facilitate this, we utilized a comprehensive approach to review our lease portfolio, as well as assessed system requirements and control implications. We elected the "package of practical expedients" that would allow us to carryforward our historical lease classifications, not reassess historical contracts to determine if they contain leases, and not reassess the initial direct costs for any existing leases. We also elected the practical expedient to not separate lease and non-lease components.

Our leases are recognized in our Consolidated Balance Sheets as Operating lease right-of-use assets, and as lease liabilities, with the current portion presented in Current portion of operating lease liabilities and with the long-term portion presented in Long-term operating lease liabilities, net of current portion.

Right-of-use ("ROU") assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized on the commencement date of the lease based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available on the commencement date in determining the present value of lease payments.

At inception, we determine if an arrangement is a lease, if it includes options to extend or terminate the lease, and if it is reasonably certain that we will exercise the options. Lease cost, representing lease payments over the term of the lease and any capitalizable direct costs less any incentives received, is recognized on a straight-line basis over the lease term as lease expense. Lattice has operating leases for corporate offices, sales offices, research and development facilities, storage facilities, and a data center. Our leases have remaining lease terms of 1 year to 8 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year. The exercise of lease renewal options is at our sole discretion. When deemed reasonably certain of exercise, the renewal options are included in the determination of the lease term and lease payment obligation, respectively. For our leases that contain variable lease payments, residual value guarantees, or restrictive covenants, we have concluded that these inputs are not significant to the determination of the ROU asset and lease liability. We have no finance leases as of March 30, 2019.

Our adoption of the standard resulted in the non-cash recognition of additional net ROU assets and lease liabilities of approximately $29.9 million and $32.3 million, respectively, as of December 30, 2018. The difference between these amounts resulted from an adjustment to the deferred rent balance existing under the prior guidance. Adoption of this standard did not materially affect our consolidated net earnings.

All of our facilities are leased under operating leases, which expire at various times through 2027. For the first quarter of fiscal 2019, we recorded the following for lease expense and cash paid for lease liabilities:



	Three Months Ended
(In thousands)	March 30, 2019

Fixed operating lease expense	$	1,995
Variable operating lease expense	—
Total operating lease expense	$	1,995

The following table presents the lease balance classifications within the Consolidated Balance Sheets and summarizes their activity during the first three months of fiscal 2019:



Operating lease right-of-use assets	(in thousands)
Balance as of December 29, 2018	—
Right-of-use assets recorded from adoption of ASC 842	29,893
Right-of-use assets obtained in exchange for new lease obligations during the period	219
Amortization of right-of-use asset during the period	(1,487	)
Impairment of right-of-use asset on Portland, Oregon office (recorded in Restructuring charges)	(757	)
Balance as of March 30, 2019	27,868

Operating lease liabilities	(in thousands)
Balance as of December 29, 2018	—
Lease liabilities recorded from adoption of ASC 842	32,273
Lease liabilities incurred for new lease obligations during the period	219
Accretion of lease liabilities	508
Operating cash used by payments on lease liabilities	(2,597	)
Balance as of March 30, 2019	30,403
Less: Current portion of operating lease liabilities	(5,027	)
Long-term operating lease liabilities, net of current portion	25,376

For our operating leases, the weighted-average remaining lease term is 6.5 years and the weighted-average discount rate is 7.0% as of March 30, 2019.

Maturities of operating lease liabilities as of March 30, 2019 are as follows:



Fiscal year	(in thousands)

2019 (remaining 9 months)	$	4,974
2020	7,053
2021	5,288
2022	4,436
2023	4,563
Thereafter	11,369
Total lease payments	37,683
Less: amount representing interest	(7,280		)
Total lease liabilities	$	30,403

Future minimum lease commitments at December 29, 2018, under the previous lease guidance (ASC 840), were as follows:



Fiscal year	(in thousands)

2019	$	7,090
2020	6,893
2021	5,452
2022	4,658
2023	4,229
Thereafter	9,930
	$	38,252

Prior to 2019, the reporting of future minimum lease commitments included the lease obligations associated with previously restructured facilities. After adoption of Topic 842 for the first quarter of 2019, the lease obligations for previously restructured facilities were $8.1 million and continued to be recorded in Other long-term liabilities on our Consolidated Balance Sheets. The difference between the future minimum lease payments reported at December 29, 2018 and the total maturity of operating lease liabilities as of March 30, 2019 is primarily due to new leases executed in the first quarter of fiscal 2019 and to the reasonable certainty of extending the lease of an existing facility. Rental expense under operating leases was $8.3 million for fiscal 2018 and $8.9 million for fiscal 2017.

Intangible Assets

3 Months Ended

Mar. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

In connection with our acquisitions of Silicon Image, Inc. in March 2015 and SiliconBlue Technologies, Inc. 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." We are amortizing the intangible assets using the straight-line method over their estimated useful lives.

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 triggering events or changes in circumstances indicate that their carrying amounts may not be recoverable. No impairment charges relating to intangible assets were recorded for the first three months of either fiscal 2019 or fiscal 2018 as no indicators of impairment were present.

On our Consolidated Balance Sheets at March 30, 2019 and December 29, 2018, Intangible assets, net are shown net of accumulated amortization of $117.2 million and $114.5 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
(In thousands)	March 30, 2019		March 31, 2018
Research and development	$	14	$	127
Amortization of acquired intangible assets	3,389		5,636
	$	3,403	$	5,763

Cost Method Investment and Collaborative Arrangement	3 Months Ended
Cost Method Investment and Collaborative Arrangement	Mar. 30, 2019
Investments, All Other Investments [Abstract]
Cost Method Investment	Cost Method Investment and Collaborative Arrangement 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. 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. In 2017, we signed new development and licensing contracts with the investee, and the investee incurred preferred debt that effectively subordinates our ownership position between their debt and common shareholders. After evaluating these events and our investment position, we concluded that we have a variable interest in the privately-held company. However, we are not the primary beneficiary of the investee, are not holding in-substance common stock, and do not have a significant amount of influence to direct the activities that most significantly impact the investee’s economic performance. Accordingly, we accounted for our investment in this company under the cost method. In the fourth quarter of fiscal 2018, we restructured our relationship such that we now own only preferred shares and the prior agreements were canceled, thereby eliminating the variable interest in the investee. We assess this investment for impairment on a quarterly basis. Prior to the fourth quarter of fiscal 2018, we assessed this investment for impairment by applying a fair value analysis using a revenue multiple approach. After the variable interest in the investee was eliminated, the investment was assessed for indicators of impairment utilizing the qualitative approach as prescribed by ASC 321-10-35, "Impairment of Equity Securities without Readily Determinable Fair Values." A decline in value that is judged to be other-than temporary is reported in Other income, net in the accompanying Consolidated Statements of Operations with a commensurate decrease in the carrying value of the investment. Under these approaches, we have concluded that no impairment adjustment was necessary in the first quarter of either fiscal 2019 or fiscal 2018. Through March 30, 2019, we have reduced the value of our investment by approximately $4.0 million. The net balance of our investment included in Other long-term assets in the Consolidated Balance Sheets is approximately $2.0 million.
Collaborative Arrangement	Cost Method Investment and Collaborative Arrangement 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. 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. In 2017, we signed new development and licensing contracts with the investee, and the investee incurred preferred debt that effectively subordinates our ownership position between their debt and common shareholders. After evaluating these events and our investment position, we concluded that we have a variable interest in the privately-held company. However, we are not the primary beneficiary of the investee, are not holding in-substance common stock, and do not have a significant amount of influence to direct the activities that most significantly impact the investee’s economic performance. Accordingly, we accounted for our investment in this company under the cost method. In the fourth quarter of fiscal 2018, we restructured our relationship such that we now own only preferred shares and the prior agreements were canceled, thereby eliminating the variable interest in the investee. We assess this investment for impairment on a quarterly basis. Prior to the fourth quarter of fiscal 2018, we assessed this investment for impairment by applying a fair value analysis using a revenue multiple approach. After the variable interest in the investee was eliminated, the investment was assessed for indicators of impairment utilizing the qualitative approach as prescribed by ASC 321-10-35, "Impairment of Equity Securities without Readily Determinable Fair Values." A decline in value that is judged to be other-than temporary is reported in Other income, net in the accompanying Consolidated Statements of Operations with a commensurate decrease in the carrying value of the investment. Under these approaches, we have concluded that no impairment adjustment was necessary in the first quarter of either fiscal 2019 or fiscal 2018. Through March 30, 2019, we have reduced the value of our investment by approximately $4.0 million. The net balance of our investment included in Other long-term assets in the Consolidated Balance Sheets is approximately $2.0 million.

Accounts Payable and Accrued Expenses

3 Months Ended

Mar. 30, 2019

Payables and Accruals [Abstract]

Accounts Payable and Accrued Expenses

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



(In thousands)	March 30, 2019		December 29, 2018
Trade accounts payable	$	33,414	$	31,880
Liability for non-cancelable contracts	5,681		6,078
Contract liability under ASC 606	3,917		1,614
Restructuring	2,525		4,220
Other accrued expenses	5,252		7,971
Total accounts payable and accrued expenses	$	50,789	$	51,763

Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 30, 2019

Stockholders' Equity Note [Abstract]

Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss



The following summarizes the changes in total equity for the three month period ended March 30, 2019:

	Common Stock ($.01 par value)			Additional Paid-in capital		Accumulated deficit			Accumulated other comprehensive loss			Total
(In thousands, except par value data)	Shares	Amount		Additional Paid-in capital		Accumulated deficit			Accumulated other comprehensive loss			Total
Balances, December 29, 2018	129,728	$	1,297	$	736,274	$	(476,783	)	$	(2,331	)	$	258,457
Net income for the three months ended March 30, 2019	—	—		—		7,408			—			7,408
Unrealized gain related to marketable securities, net of tax	—	—		—		—			42			42
Recognized gain on redemption of marketable securities, previously unrealized	—	—		—		—			(53		)	(53		)
Translation adjustments, net of tax	—	—		—		—			47			47
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax	2,177	22		11,546		—			—			11,568
Stock-based compensation related to stock options, ESPP and RSUs	—	—		3,686		—			—			3,686
Balances, March 30, 2019	131,905	$	1,319	$	751,506	$	(469,375	)	$	(2,295	)	$	281,155



The following summarizes the changes in total equity for the three month period ended March 31, 2018:

	Common Stock ($.01 par value)			Additional Paid-in capital		Accumulated deficit			Accumulated other comprehensive loss			Total
(In thousands, except par value data)	Shares	Amount		Additional Paid-in capital		Accumulated deficit			Accumulated other comprehensive loss			Total
Balances, December 30, 2017	123,895	$	1,239	$	695,768	$	(477,862	)	$	(1,452	)	$	217,693
Net income for the three months ended March 31, 2018	—	—		—		(5,952		)	—			(5,952		)
Unrealized loss related to marketable securities, net of tax	—	—		—		—			(7		)	(7		)
Recognized gain on redemption of marketable securities, previously unrealized	—	—		—		—			(1		)	(1		)
Translation adjustments, net of tax	—	—		—		—			589			589
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax	416	4		1,145		—			—			1,149
Stock-based compensation related to stock options, ESPP and RSUs	—	—		4,800		—			—			4,800
Accounting method transition adjustment (1)	—	—		—		27,401			—			27,401
Balances, March 31, 2018	124,311	$	1,243	$	701,713	$	(456,413	)	$	(871	)	$	245,672



(1)	As of the beginning of fiscal 2018, we adopted ASC 606, "Revenue from Contracts With Customers," using the modified retrospective transition method. As a result of this adoption, we recorded a cumulative-effect adjustment to Accumulated Deficit, as shown in the table above.

Income Taxes	3 Months Ended
Income Taxes	Mar. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes We are subject to federal and state income tax as well as income tax in the various foreign jurisdictions in which we operate. For the three months ended March 30, 2019, we recorded an income tax expense of approximately $0.2 million, and for the three months ended March 31, 2018, we recorded an income tax expense of approximately $0.6 million. Income taxes for the three month periods ended March 30, 2019 and March 31, 2018 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 21% and our effective tax rate for the three months ended March 30, 2019 results from foreign income and withholding taxes offset with release of uncertain tax positions due to lapsing of the statute of limitations. Through March 30, 2019, we continued to evaluate the valuation allowance position in the United States and concluded we should maintain a valuation allowance against the net federal and state deferred tax assets. In making this evaluation, we exercised significant judgment and considered estimates about our ability to generate revenue and gross profits sufficient to offset expenditures in future periods within the United States. We will continue to evaluate both positive and negative evidence in future periods to determine if we should recognize more deferred tax assets. We do not have a valuation allowance in any foreign jurisdictions as we have concluded it is more likely than not that we will realize the net deferred tax assets in future periods. We believe that the years that our tax returns remain subject to examination by taxing authorities are 2015 for federal income taxes, 2014 for state income taxes, and 2012 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 returns are under examination in the Philippines for fiscal years 2016 and 2017. At March 30, 2019, it is reasonably possible that $1.2 million of unrecognized tax benefits and $0.1 million of associated interest and penalties could be recognized during the next twelve months. The $1.3 million potential change would represent a decrease in unrecognized tax benefits, comprised of items related to tax filings for years that will no longer be subject to examination under expiring statutes of limitations. At December 29, 2018, we had U.S. federal net operating loss ("NOL") carryforwards (pretax) of approximately $365.3 million that expire at various dates between 2019 and 2037. We had state NOL carryforwards (pretax) of approximately $147.6 million that expire at various dates from 2019 through 2037. We also had federal and state credit carryforwards of $51.5 million and $61.2 million, respectively. Of the total $61.2 million state credit carryforwards, $60.2 million do not expire. The remaining credits expire at various dates from 2019 through 2037. Our liability for uncertain tax positions (including penalties and interest) was $25.9 million and $26.3 million at March 30, 2019 and December 29, 2018, 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 $24.9 million is netted against deferred tax assets. The Tax Cuts and Jobs Act, enacted December 22, 2017, required a deemed repatriation of deferred foreign earnings as of December 30, 2017 and, as a result, no future U.S. taxes should be due on these earnings because of enactment of a 100% dividends received deduction. We had no impact from this transition tax due to utilization of NOL carryforwards. Foreign earnings may be subject to withholding taxes in local jurisdictions if they are distributed and repatriated in the United States. 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

Mar. 30, 2019

Restructuring and Related Activities [Abstract]

Restructuring

In June 2017, our Board of Directors approved an internal restructuring plan (the "June 2017 Plan"), which included the sale of 100% of the equity of our Hyderabad, India subsidiary and the transfer of certain assets related to our Simplay Labs testing and certification business, a worldwide workforce reduction, and an initiative to reduce our infrastructure costs, including reconfiguring our use of certain leased properties. Under this initiative approved by the Board in 2017, we vacated 100% of our facility in Portland, Oregon in the first quarter of fiscal 2019, and recorded approximately $1.3 million of Restructuring charges from ceasing use of this space, which includes approximately $0.8 million of impairment of the operating lease right-of-use asset for this property. 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 $1.3 million and $1.0 million of expense was incurred during the three months ended March 30, 2019 and March 31, 2018, respectively. Approximately $17.7 million of total expense has been incurred through March 30, 2019 under the June 2017 Plan. We expect the total cost of the June 2017 Plan to be approximately $21.5 million to $23.0 million and that it will be substantially completed by the end of fiscal 2019.

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) and in Other long-term liabilities on our Consolidated Balance Sheets. The following table displays the activity related to our restructuring plans:



(In thousands)	Severance & Related (1)			Lease Termination & Fixed Assets			Software Contracts & Engineering Tools (2)			Other			Total
Balance at December 30, 2017	$	1,192		$	870		$	360		$	25		$	2,447
Restructuring charges	241			13			738			37			1,029
Costs paid or otherwise settled	(908		)	(85		)	(700		)	(31		)	(1,724		)
Balance at March 31, 2018	$	525		$	798		$	398		$	31		$	1,752

Balance at December 29, 2018	$	1,814		$	8,630		$	218		$	18		$	10,680
Restructuring charges	(60		)	1,409			—			(8		)	1,341
Costs paid or otherwise settled	(1,540		)	(1,875		)	(83		)	(10		)	(3,508		)
Balance at March 30, 2019	$	214		$	8,164		$	135		$	—		$	8,513



(1)	Includes employee relocation costs and accelerated stock compensation
(2)	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

Mar. 30, 2019

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, Inc. 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, subject to a 1.00% floor, plus a spread of 4.25%. The current effective interest rate on the Term Loan is 7.42%.

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. As of March 30, 2019, the Credit Agreement would require a 75% excess cash flow payment.

In the first quarter of fiscal 2019, we made a total of $26.9 million in payments on the Term Loan, including $25.0 million in voluntary principal payments, a $1.0 million mandatory payment from the proceeds of an asset sale in the fourth quarter of fiscal 2018, and a required quarterly installment payment of $0.9 million. As of March 30, 2019, we had approximately $236.2 million outstanding under the Credit Agreement.

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 in all material respects at March 30, 2019.

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)	March 30, 2019			December 29, 2018
Principal amount	$	236,158		$	263,033
Unamortized original issue discount and debt costs	(2,700		)	(3,386		)
Less: Current portion of long-term debt	(7,796		)	(8,290		)
Long-term debt, net of current portion	$	225,662		$	251,357

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)	March 30, 2019		March 31, 2018
Contractual interest	$	4,316	$	4,528
Amortization of debt issuance costs and discount	687		507
Total interest expense related to the Term Loan	$	5,003	$	5,035

As of March 30, 2019, expected future principal payments on the Term Loan were as follows:



Fiscal year	(in thousands)

2019	9,388
2020	59,291
2021	167,479
	$	236,158

Stock-Based Compensation

3 Months Ended

Mar. 30, 2019

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
(In thousands)	March 30, 2019		March 31, 2018
Cost of products sold	$	202	$	237
Research and development	1,125		1,207
Selling, general, and administrative	2,359		3,356
Total stock-based compensation	$	3,686	$	4,800

Market-Based and Performance-Based Stock Compensation

In fiscal years 2018 and 2019, we granted RSUs with a market condition to certain executives. The market condition is a comparison of 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 measurement period. TSR is a measure of stock price appreciation plus dividends paid, if any, in the performance period. We determined and fixed the fair value of the awards with a market condition on the date of grant using a lattice-based option-pricing model. The valuation of these awards incorporated a Monte-Carlo simulation, and considered the likelihood that we would achieve the market condition.

In September 2018, we granted inducement awards outside of, but subject to the terms and conditions of the 2013 Incentive Plan to our incoming President and Chief Executive Officer. These awards included restricted stock units that vest and become payable upon satisfaction of certain market and performance conditions. The market and performance conditions include TSR and Adjusted EBITDA targets, respectively. The TSR-based awards vest and become payable over a three-year period based on the Company’s TSR relative to the PHLX Semiconductor Sector Index, with 100% of the units vesting at the 50th percentile, 250% of the units vesting at the 75th percentile achievement, zero vesting if relative TSR is below the 25th percentile, and vesting scaling linearly for achievement between the 25th and 75th percentile. The Adjusted EBITDA-based awards will vest and become payable based upon the Company’s generating specified “adjusted” EBITDA levels on a trailing four quarter basis in any two consecutive trailing four-quarter periods. We valued the RSUs with a performance condition using the market price on the day of grant.

In September 2018, we granted inducement awards outside of, but subject to the terms and conditions of the 2013 Incentive Plan to our incoming Corporate Vice President of Research and Development, and in September 2018 and January 2019, we granted awards from the 2013 Incentive Plan to certain executives. These awards included restricted stock units that would vest and become payable upon achievement of a target TSR. The awards vest and become payable over a three-year period based on the Company’s TSR relative to the PHLX Semiconductor Sector Index, with 100% of the units vesting at the 50th percentile, 200% of the units vesting at the 75th percentile achievement, zero vesting if relative TSR is below the 25th percentile, and vesting scaling linearly for achievement between the 25th and 75th percentile.

We recognize expense related to these stock option and RSU awards with a market or performance condition based on our estimate of the probability of the respective conditions being achieved. For these awards, we incurred stock compensation expense of approximately $0.9 million in the first quarter of fiscal 2019 and of approximately $0.3 million in the first quarter of fiscal 2018, which is recorded as a component of total stock-based compensation expense.

The following table summarizes the activity for our stock options and RSUs with a market or performance condition during the first three months of fiscal 2019:



(Shares in thousands)	Unvested		Vested	Total
Balance, December 29, 2018	909		—	909
Granted	265		—	265
Canceled	(98	)	—	(98	)
Balance, March 30, 2019	1,076		—	1,076

Contingencies	3 Months Ended
Contingencies	Mar. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies Legal Matters On or about December 19, 2018, Steven A.W. De Jaray, Perienne De Jaray and Darrell R. Oswald (collectively, the “Plaintiffs”) commenced an action against the Company and several unnamed defendants in the Multnomah County Circuit Court of the State of Oregon, in connection with the sale of certain products by the Company to the Plaintiffs in or around 2008. The Plaintiffs allege that the Company violated The Lanham Act, engaged in negligence and fraud by failing to disclose to the Plaintiffs the export-controlled status of the subject parts. The Plaintiffs seek damages of $138 million, treble damages, and other remedies. In January 2019, the Company removed the action to the United States District Court for the District of Oregon. At this stage of the proceedings, the Company does not have an estimate of the likelihood or the amount of any potential exposure to the Company; however, the Company believes that these claims are without merit and intends to vigorously defend the action. From time to time, we are exposed to certain 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

3 Months Ended

Mar. 30, 2019

Segment Reporting [Abstract]

Segment and Geographic Information

Segment Information

In the three-month periods ended March 30, 2019 and March 31, 2018, respectively, Lattice had one operating segment: the core Lattice business, which includes semiconductor devices, evaluation boards, development hardware, and related intellectual property licensing, services, and sales.

Geographic Information

Our revenue by major geographic area is presented in "Note 2 - Revenue from Contracts with Customers".

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



(In thousands)	March 30, 2019				December 29, 2018
United States	$	29,965	82	%	$	27,353	78	%

China	2,088		6		2,360		7
Philippines	3,142		8		3,319		9
Taiwan	802		2		949		3
Japan	280		1		324		1
Other	481		1		578		2
Total foreign property and equipment, net	6,793		18		7,530		22
Total property and equipment, net	$	36,758	100	%	$	34,883	100	%

Basis of Presentation and Significant Accounting Policies (Policies)

3 Months Ended

Mar. 30, 2019

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 Income (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:



	March 30, 2019		December 29, 2018
Total cost of contracts for Japanese yen (in thousands)	$	2,883	$	1,955
Number of contracts	3		2
Settlement month	June 2019		June 2019

Concentration Risk

Potential exposure to concentration risk may impact revenue, accounts receivable, and supply of wafers for our products.

Customer and distributor concentration risk may impact revenue. In the periods covered by this report, no end customer accounted for more than 10% of total revenue.

Property and Equipment

Leases

Goodwill

New Accounting Pronouncements

Recently Issued Accounting Standards

Basis of Presentation and Significant Accounting Policies (Tables)

3 Months Ended

Mar. 30, 2019

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:



	March 30, 2019		December 29, 2018
Total cost of contracts for Japanese yen (in thousands)	$	2,883	$	1,955
Number of contracts	3		2
Settlement month	June 2019		June 2019

- 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.

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+ Details

Revenue from Contracts with Customers (Tables)

3 Months Ended

Mar. 30, 2019

Revenue from Contract with Customer [Abstract]

Contracts with Customers

The following table summarizes the activity for our contract assets during the first three months of fiscal 2019:



(In thousands)
Balance as of December 29, 2018	$	9,143
Revenues recorded during the period	2,947
Transferred to accounts receivable or collected	(1,118		)
Balance as of March 30, 2019	$	10,972

Disaggregation of revenue



Major Class of Revenue	Three Months Ended
(In thousands)	March 30, 2019	March 31, 2018
Product revenue - Distributors	77,472	85,957
Product revenue - Direct	14,140	9,152
Licensing and services revenue	6,479	3,514
Total revenue	98,091	98,623

Revenue by Geographical Market	Three Months Ended
(In thousands)	March 30, 2019	March 31, 2018
Asia	69,011	71,921
Europe	12,210	12,142
Americas	16,870	14,560
Total revenue	98,091	98,623

Net Income (Loss) per Share (Tables)

3 Months Ended

Mar. 30, 2019

Earnings Per Share [Abstract]

Schedule of Earnings Per Share Reconciliation

A summary of basic and diluted Net income (loss) per share is presented in the following table:



	Three Months Ended
(in thousands, except per share data)	March 30, 2019		March 31, 2018
Net income (loss)	$	7,408	$	(5,952	)

Shares used in basic Net income (loss) per share	130,992		124,076
Dilutive effect of stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition	3,818		—
Shares used in diluted Net income (loss) per share	134,810		124,076

Basic Net income (loss) per share	$	0.06	$	(0.05	)
Diluted Net income (loss) per share	$	0.05	$	(0.05	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share



	Three Months Ended
(in thousands)	March 30, 2019	March 31, 2018
Stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition excluded as they are antidilutive	812	9,424

Marketable Securities (Tables)

3 Months Ended

Mar. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Schedule of Marketable Securities

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



(In thousands)	March 30, 2019		December 29, 2018
Short-term marketable securities:
Maturing within one year	$	—	$	7,454
Maturing between one and two years	—		2,170
Total marketable securities	$	—	$	9,624

Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 30, 2019

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Financial Instruments



	Fair value measurements as of								Fair value measurements as of
	March 30, 2019								December 29, 2018
(In thousands)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Short-term marketable securities	$	—	$	—	$	—	$	—	$	9,624	$	9,624	$	—	$	—
Foreign currency forward exchange contracts, net	84		—		84		—		53		—		53		—
Total fair value of financial instruments	$	84	$	—	$	84	$	—	$	9,677	$	9,624	$	53	$	—

- 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

Mar. 30, 2019

Inventory Disclosure [Abstract]

Schedule of Inventories



(In thousands)	March 30, 2019		December 29, 2018
Work in progress	$	49,096	$	47,224
Finished goods	17,677		19,872
Total inventories	$	66,773	$	67,096

Leases (Tables)

3 Months Ended

Mar. 30, 2019

Leases [Abstract]

Lease Expense and Cash Paid for Lease Liabilities

For the first quarter of fiscal 2019, we recorded the following for lease expense and cash paid for lease liabilities:



	Three Months Ended
(In thousands)	March 30, 2019

Fixed operating lease expense	$	1,995
Variable operating lease expense	—
Total operating lease expense	$	1,995

Schedule of Lease Balance Classifications Within Consolidated Balance Sheets and Lease Activities

The following table presents the lease balance classifications within the Consolidated Balance Sheets and summarizes their activity during the first three months of fiscal 2019:



Operating lease right-of-use assets	(in thousands)
Balance as of December 29, 2018	—
Right-of-use assets recorded from adoption of ASC 842	29,893
Right-of-use assets obtained in exchange for new lease obligations during the period	219
Amortization of right-of-use asset during the period	(1,487	)
Impairment of right-of-use asset on Portland, Oregon office (recorded in Restructuring charges)	(757	)
Balance as of March 30, 2019	27,868

Operating lease liabilities	(in thousands)
Balance as of December 29, 2018	—
Lease liabilities recorded from adoption of ASC 842	32,273
Lease liabilities incurred for new lease obligations during the period	219
Accretion of lease liabilities	508
Operating cash used by payments on lease liabilities	(2,597	)
Balance as of March 30, 2019	30,403
Less: Current portion of operating lease liabilities	(5,027	)
Long-term operating lease liabilities, net of current portion	25,376

Maturities of Operating Lease Liabilities

Maturities of operating lease liabilities as of March 30, 2019 are as follows:



Fiscal year	(in thousands)

2019 (remaining 9 months)	$	4,974
2020	7,053
2021	5,288
2022	4,436
2023	4,563
Thereafter	11,369
Total lease payments	37,683
Less: amount representing interest	(7,280		)
Total lease liabilities	$	30,403

Future Minimum Lease Commitments, under Previous Lease Guidance (ASC 840)

Future minimum lease commitments at December 29, 2018, under the previous lease guidance (ASC 840), were as follows:



Fiscal year	(in thousands)

2019	$	7,090
2020	6,893
2021	5,452
2022	4,658
2023	4,229
Thereafter	9,930
	$	38,252

Intangible Assets (Tables)

3 Months Ended

Mar. 30, 2019

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
(In thousands)	March 30, 2019		March 31, 2018
Research and development	$	14	$	127
Amortization of acquired intangible assets	3,389		5,636
	$	3,403	$	5,763

Accounts Payable and Accrued Expenses (Tables)

3 Months Ended

Mar. 30, 2019

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Liabilities

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



(In thousands)	March 30, 2019		December 29, 2018
Trade accounts payable	$	33,414	$	31,880
Liability for non-cancelable contracts	5,681		6,078
Contract liability under ASC 606	3,917		1,614
Restructuring	2,525		4,220
Other accrued expenses	5,252		7,971
Total accounts payable and accrued expenses	$	50,789	$	51,763

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

3 Months Ended

Mar. 30, 2019

Stockholders' Equity Note [Abstract]

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



The following summarizes the changes in total equity for the three month period ended March 30, 2019:

	Common Stock ($.01 par value)			Additional Paid-in capital		Accumulated deficit			Accumulated other comprehensive loss			Total
(In thousands, except par value data)	Shares	Amount		Additional Paid-in capital		Accumulated deficit			Accumulated other comprehensive loss			Total
Balances, December 29, 2018	129,728	$	1,297	$	736,274	$	(476,783	)	$	(2,331	)	$	258,457
Net income for the three months ended March 30, 2019	—	—		—		7,408			—			7,408
Unrealized gain related to marketable securities, net of tax	—	—		—		—			42			42
Recognized gain on redemption of marketable securities, previously unrealized	—	—		—		—			(53		)	(53		)
Translation adjustments, net of tax	—	—		—		—			47			47
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax	2,177	22		11,546		—			—			11,568
Stock-based compensation related to stock options, ESPP and RSUs	—	—		3,686		—			—			3,686
Balances, March 30, 2019	131,905	$	1,319	$	751,506	$	(469,375	)	$	(2,295	)	$	281,155



The following summarizes the changes in total equity for the three month period ended March 31, 2018:

	Common Stock ($.01 par value)			Additional Paid-in capital		Accumulated deficit			Accumulated other comprehensive loss			Total
(In thousands, except par value data)	Shares	Amount		Additional Paid-in capital		Accumulated deficit			Accumulated other comprehensive loss			Total
Balances, December 30, 2017	123,895	$	1,239	$	695,768	$	(477,862	)	$	(1,452	)	$	217,693
Net income for the three months ended March 31, 2018	—	—		—		(5,952		)	—			(5,952		)
Unrealized loss related to marketable securities, net of tax	—	—		—		—			(7		)	(7		)
Recognized gain on redemption of marketable securities, previously unrealized	—	—		—		—			(1		)	(1		)
Translation adjustments, net of tax	—	—		—		—			589			589
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax	416	4		1,145		—			—			1,149
Stock-based compensation related to stock options, ESPP and RSUs	—	—		4,800		—			—			4,800
Accounting method transition adjustment (1)	—	—		—		27,401			—			27,401
Balances, March 31, 2018	124,311	$	1,243	$	701,713	$	(456,413	)	$	(871	)	$	245,672



(1)	As of the beginning of fiscal 2018, we adopted ASC 606, "Revenue from Contracts With Customers," using the modified retrospective transition method. As a result of this adoption, we recorded a cumulative-effect adjustment to Accumulated Deficit, as shown in the table above.

Restructuring (Tables)

3 Months Ended

Mar. 30, 2019

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Reserve by Type of Cost

The following table displays the activity related to our restructuring plans:



(In thousands)	Severance & Related (1)			Lease Termination & Fixed Assets			Software Contracts & Engineering Tools (2)			Other			Total
Balance at December 30, 2017	$	1,192		$	870		$	360		$	25		$	2,447
Restructuring charges	241			13			738			37			1,029
Costs paid or otherwise settled	(908		)	(85		)	(700		)	(31		)	(1,724		)
Balance at March 31, 2018	$	525		$	798		$	398		$	31		$	1,752

Balance at December 29, 2018	$	1,814		$	8,630		$	218		$	18		$	10,680
Restructuring charges	(60		)	1,409			—			(8		)	1,341
Costs paid or otherwise settled	(1,540		)	(1,875		)	(83		)	(10		)	(3,508		)
Balance at March 30, 2019	$	214		$	8,164		$	135		$	—		$	8,513



(1)	Includes employee relocation costs and accelerated stock compensation
(2)	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

Mar. 30, 2019

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)	March 30, 2019			December 29, 2018
Principal amount	$	236,158		$	263,033
Unamortized original issue discount and debt costs	(2,700		)	(3,386		)
Less: Current portion of long-term debt	(7,796		)	(8,290		)
Long-term debt, net of current portion	$	225,662		$	251,357

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)	March 30, 2019		March 31, 2018
Contractual interest	$	4,316	$	4,528
Amortization of debt issuance costs and discount	687		507
Total interest expense related to the Term Loan	$	5,003	$	5,035

Schedule of Debt

As of March 30, 2019, expected future principal payments on the Term Loan were as follows:



Fiscal year	(in thousands)

2019	9,388
2020	59,291
2021	167,479
	$	236,158

- 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=109259400&loc=d3e21475-112644

+ Details

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 30, 2019

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 is presented in the following table:



	Three Months Ended
(In thousands)	March 30, 2019		March 31, 2018
Cost of products sold	$	202	$	237
Research and development	1,125		1,207
Selling, general, and administrative	2,359		3,356
Total stock-based compensation	$	3,686	$	4,800

Share-based Compensation, Stock Options, Activity

The following table summarizes the activity for our stock options and RSUs with a market or performance condition during the first three months of fiscal 2019:



(Shares in thousands)	Unvested		Vested	Total
Balance, December 29, 2018	909		—	909
Granted	265		—	265
Canceled	(98	)	—	(98	)
Balance, March 30, 2019	1,076		—	1,076

Segment and Geographic Information (Tables)

3 Months Ended

Mar. 30, 2019

Segment Reporting [Abstract]

Schedule of Property and Equipment by Country

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



(In thousands)	March 30, 2019				December 29, 2018
United States	$	29,965	82	%	$	27,353	78	%

China	2,088		6		2,360		7
Philippines	3,142		8		3,319		9
Taiwan	802		2		949		3
Japan	280		1		324		1
Other	481		1		578		2
Total foreign property and equipment, net	6,793		18		7,530		22
Total property and equipment, net	$	36,758	100	%	$	34,883	100	%

Basis of Presentation and Significant Accounting Policies (Derivative Financial Instruments) (Details) $ in Thousands	3 Months Ended
	Mar. 30, 2019 USD ($) Contract	Mar. 31, 2018 USD ($)	Dec. 29, 2018 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	$ 100
Foreign exchange contracts
General Discussion of Derivative Instruments and Hedging Activities [Abstract]
Total cost of contracts for Japanese yen (in thousands)	$ 2,883		$ 1,955
Number of contracts \| Contract	3		2

Basis of Presentation and Significant Accounting Policies (Concentration Risk) (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 30, 2019	Mar. 31, 2018	Dec. 29, 2018
Concentration Risk [Line Items]
Allowance for doubtful accounts	$ 0.2		$ 0.2
Revenue \| Sell-Through Distributors Concentration Risk
Concentration Risk [Line Items]
Concentration risk percentage	79.00%	87.00%
Arrow Electronics Inc. \| Trade receivables \| Sell-Through Distributors Concentration Risk
Concentration Risk [Line Items]
Concentration risk percentage	34.00%		41.00%
Weikeng Group \| Trade receivables \| Sell-Through Distributors Concentration Risk
Concentration Risk [Line Items]
Concentration risk percentage	32.00%		23.00%
Third Largest Distributor \| Trade receivables \| Sell-Through Distributors Concentration Risk
Concentration Risk [Line Items]
Concentration risk percentage	12.00%

Basis of Presentation and Significant Accounting Policies (Property and Equipment) (Details)	3 Months Ended
	Mar. 30, 2019
Equipment \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Equipment \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	5 years
Software Development \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Software Development \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	5 years
Tooling \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	1 year
Tooling \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Building
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	30 years

Revenue from Contracts with Customers (Additional Information) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Dec. 29, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stock rotation as percentage of billings (not to exceed)	5.00%
Royalty revenue periodic adjustment period	3 years
Contract liability under ASC 606	$ 3,917	$ 1,614
Contract liabilities, accrued for estimated future stock rotation and scrap returns	3,200
Contract liabilities, related to a prepayment for products to be manufactured and delivered to the customer within six months	$ 700
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Payment term for invoice	30 days
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Payment term for invoice	60 days

Revenue from Contracts with Customers (Contract Assets) (Details) $ in Thousands	3 Months Ended
	Mar. 30, 2019 USD ($)
Movement In Contract With Customer, Asset, Net [Roll Forward]
Beginning balance	$ 9,143
Revenues recorded during the period	2,947
Transferred to accounts receivable or collected	(1,118)
Ending balance	$ 10,972

Revenue from Contracts with Customers (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 98,091	$ 98,623
Asia
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	69,011	71,921
Europe
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	12,210	12,142
Americas
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	16,870	14,560
Product revenue - Distributors
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	77,472	85,957
Product revenue - Direct
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	14,140	9,152
Licensing and services revenue
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 6,479	$ 3,514

Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Earnings Per Share [Abstract]
Net income (loss)	$ 7,408	$ (5,952)
Shares used in basic Net income (loss) per share (in shares)	130,992	124,076
Dilutive effect of stock options, RSUs and ESPP shares (in shares)	3,818	0
Shares used in diluted Net income (loss) per share (in shares)	134,810	124,076
Basic Net income (loss) per share (in usd per share)	$ 0.06	$ (0.05)
Diluted Net income (loss) per share (in usd per share)	$ 0.05	$ (0.05)
Stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition excluded as they are antidilutive	812	9,424

- Definition

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

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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

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+ Details

- Definition

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

+ References + Details

Marketable Securities (Details) - USD ($) $ in Thousands	3 Months Ended
Marketable Securities (Details) - USD ($) $ in Thousands	Mar. 30, 2019	Dec. 29, 2018
Investments, Debt and Equity Securities [Abstract]
Term of maturities of investments considered short-term	2 years
Maturing within one year	$ 0	$ 7,454
Maturing between one and two years	0	2,170
Total marketable securities	$ 0	$ 9,624

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018	Dec. 29, 2018
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Short-term marketable securities	$ 0		$ 9,624
Foreign currency forward exchange contracts, net	84		53
Total fair value of financial instruments	84		9,677
Unrealized gain (loss) on marketable securities	100	$ (100)
Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Short-term marketable securities	0		9,624
Foreign currency forward exchange contracts, net	0		0
Total fair value of financial instruments	0		9,624
Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Short-term marketable securities	0		0
Foreign currency forward exchange contracts, net	84		53
Total fair value of financial instruments	84		53
Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Short-term marketable securities	0		0
Foreign currency forward exchange contracts, net	0		0
Total fair value of financial instruments	$ 0		$ 0

Inventories (Details) - USD ($) $ in Thousands	Mar. 30, 2019	Dec. 29, 2018
Inventory Disclosure [Abstract]
Work in progress	$ 49,096	$ 47,224
Finished goods	17,677	19,872
Total inventories	$ 66,773	$ 67,096

Leases (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
Leases (Narrative) (Details) - USD ($) $ in Thousands	Mar. 30, 2019	Dec. 29, 2018	Dec. 30, 2017	Dec. 30, 2018
Lessee, Lease, Description [Line Items]
Leases renewal term (up to)	5 years
Leases termination period (within)	1 year
Operating lease right-of-use assets	$ 27,868	$ 0
Total lease liabilities	$ 30,403	0
Operating leases, the weighted-average remaining lease term	6 years 6 months
Operating leases, weighted-average discount rate	7.00%
Operating leases obligation for previously restructured facilities	$ 8,100
Operating leases, rental expense		$ 8,300	$ 8,900
Minimum
Lessee, Lease, Description [Line Items]
Leases remaining term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Leases remaining term	8 years
Accounting Standards Update 2016-02
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets				$ 29,900
Total lease liabilities				$ 32,300

Leases (Lease Expense and Cash Paid for Lease Liabilities) (Details) $ in Thousands	3 Months Ended
	Mar. 30, 2019 USD ($)
Leases [Abstract]
Fixed operating lease expense	$ 1,995
Variable operating lease expense	0
Total operating lease expense	$ 1,995

Leases (Schedule of Lease Balance Classifications Within Consolidated Balance Sheets and Lease Activities) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Operating lease right-of-use assets
Balance as of December 29, 2018	$ 0
Right-of-use assets recorded from adoption of ASC 842	29,893
Right-of-use assets obtained in exchange for new lease obligations during the period	219	$ 0
Amortization of right-of-use asset during the period	(1,487)
Impairment of right-of-use asset on Portland, Oregon office (recorded in Restructuring charges)	(757)	0
Balance as of March 30, 2019	27,868
Operating lease liabilities
Balance as of December 29, 2018	0
Lease liabilities recorded from adoption of ASC 842	32,273
Lease liabilities incurred for new lease obligations during the period	219
Accretion of lease liabilities	508
Operating cash used by payments on lease liabilities	(2,597)	$ 0
Balance as of March 30, 2019	30,403
Current portion of operating lease liabilities	5,027
Long-term operating lease liabilities, net of current portion	$ 25,376

Leases (Maturities of Operating Lease Liabilities) (Details) - USD ($) $ in Thousands	Mar. 30, 2019	Dec. 29, 2018
Leases [Abstract]
2019 (remaining 9 months)	$ 4,974
2020	7,053
2021	5,288
2022	4,436
2023	4,563
Thereafter	11,369
Total lease payments	37,683
Less: amount representing interest	(7,280)
Total lease liabilities	$ 30,403	$ 0

Leases (Future Minimum Lease Commitments, under Previous Lease Guidance (ASC 840)) (Details) $ in Thousands	Dec. 29, 2018 USD ($)
Leases [Abstract]
2019	$ 7,090
2020	6,893
2021	5,452
2022	4,658
2023	4,229
Thereafter	9,930
Total future minimum payments due	$ 38,252

Intangible Assets (Details) - USD ($)	3 Months Ended
Intangible Assets (Details) - USD ($)	Mar. 30, 2019	Mar. 31, 2018	Dec. 29, 2018
Finite-Lived Intangible Assets [Line Items]
Impairment of acquired intangible assets	$ 0	$ 0
Accumulated amortization, intangible assets	117,200,000		$ 114,500,000
Amortization of acquired intangible assets	3,403,000	5,763,000
Research and development
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	14,000	127,000
Amortization of acquired intangible assets
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	$ 3,389,000	$ 5,636,000

Cost Method Investment and Collaborative Arrangement (Details) - USD ($)	3 Months Ended			12 Months Ended	51 Months Ended
	Mar. 30, 2019	Mar. 31, 2018	Oct. 01, 2016	Jan. 02, 2016	Mar. 30, 2019
Investments, All Other Investments [Abstract]
Investment made during fiscal year			$ 1,000,000	$ 5,000,000
Ownership interest percentage				22.70%
Cost method investments			$ 6,000,000
Impairment of cost-method investment	$ 0	$ 0
Decrease of cost method investment					$ (4,000,000)
Equity securities investment	$ 2,000,000				$ 2,000,000

Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 30, 2019	Dec. 29, 2018
Payables and Accruals [Abstract]
Trade accounts payable	$ 33,414	$ 31,880
Liability for non-cancelable contracts	5,681	6,078
Contract liability under ASC 606	3,917	1,614
Restructuring	2,525	4,220
Other accrued expenses	5,252	7,971
Total accounts payable and accrued expenses	$ 50,789	$ 51,763

Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018	Dec. 29, 2018	Dec. 30, 2017
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	129,728
Beginning balance	$ 258,457	$ 217,693
Net income	7,408	(5,952)
Unrealized gain related to marketable securities, net of tax	42	(7)
Recognized gain on redemption of marketable securities, previously unrealized	(53)	(1)
Translation adjustments, net of tax	47	589
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax	11,568	1,149
Stock-based compensation related to stock options, ESPP and RSUs	$ 3,686	4,800
Accounting method transition adjustment				$ 27,401
Ending balance (in shares)	131,905
Ending balance	$ 281,155	$ 245,672
Common stock, par value per share (in dollars per share)	$ 0.01000		$ 0.01000
Common stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	129,728	123,895
Beginning balance	$ 1,297	$ 1,239
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax (in shares)	2,177	416
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax	$ 22	$ 4
Ending balance (in shares)	131,905	124,311
Ending balance	$ 1,319	$ 1,243
Additional Paid-in capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	736,274	695,768
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of tax	11,546	1,145
Stock-based compensation related to stock options, ESPP and RSUs	3,686	4,800
Ending balance	751,506	701,713
Accumulated deficit
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(476,783)	(477,862)
Net income	7,408	(5,952)
Accounting method transition adjustment				$ 27,401
Ending balance	(469,375)	(456,413)
Accumulated other comprehensive loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(2,331)	(1,452)
Unrealized gain related to marketable securities, net of tax	42	(7)
Recognized gain on redemption of marketable securities, previously unrealized	(53)	(1)
Translation adjustments, net of tax	47	589
Ending balance	$ (2,295)	$ (871)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 30, 2019	Mar. 31, 2018	Dec. 29, 2018
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Income tax expense	$ 234	$ 597
Unrecognized tax benefits that could significantly change during the next twelve months	1,200
Unrecognized tax benefits, associated interest and penalties that could significantly change within the next twelve months	100
Total potential decrease in UTB	1,300
Deferred tax assets, valuation allowance	24,900
Federal
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Operating loss carryforwards			$ 365,300
Tax credit carryforward, amount			51,500
State and Local Jurisdiction
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Operating loss carryforwards			147,600
Tax credit carryforward, amount			61,200
Other Long-term Liabilities
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Uncertain tax positions	$ 25,900		26,300
No Expiration Date
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Tax credit carryforward, amount			$ 60,200

Restructuring (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018	Jun. 30, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 1,341	$ 1,029
Impairment of operating lease right-of-use asset (recorded in Restructuring charges)	757	0
June 2017 Plan
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1,300	$ 1,000
Restructuring and related cost, cost incurred to date	17,700
Minimum \| June 2017 Plan
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, expected cost	21,500
Maximum \| June 2017 Plan
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, expected cost	$ 23,000
Lease Termination & Fixed Assets \| June 2017 Plan
Restructuring Cost and Reserve [Line Items]
Percentage of facility vacated	100.00%
Restructuring charges	$ 1,300
Impairment of operating lease right-of-use asset (recorded in Restructuring charges)	$ (800)
Hyderabad
Restructuring Cost and Reserve [Line Items]
Ownership percentage			100.00%

Restructuring (Schedule of Restructuring Activities) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Restructuring Reserve [Roll Forward]
Balance at beginning of the period	$ 10,680	$ 2,447
Restructuring charges	1,341	1,029
Costs paid or otherwise settled	(3,508)	(1,724)
Balance at the end of the period	8,513	1,752
Severance & related
Restructuring Reserve [Roll Forward]
Balance at beginning of the period	1,814	1,192
Restructuring charges	(60)	241
Costs paid or otherwise settled	(1,540)	(908)
Balance at the end of the period	214	525
Lease Termination & Fixed Assets
Restructuring Reserve [Roll Forward]
Balance at beginning of the period	8,630	870
Restructuring charges	1,409	13
Costs paid or otherwise settled	(1,875)	(85)
Balance at the end of the period	8,164	798
Software Contracts & Engineering Tools
Restructuring Reserve [Roll Forward]
Balance at beginning of the period	218	360
Restructuring charges	0	738
Costs paid or otherwise settled	(83)	(700)
Balance at the end of the period	135	398
Other
Restructuring Reserve [Roll Forward]
Balance at beginning of the period	18	25
Restructuring charges	(8)	37
Costs paid or otherwise settled	(10)	(31)
Balance at the end of the period	$ 0	$ 31

Long-Term Debt (Narrative) (Details) - USD ($)		3 Months Ended
Long-Term Debt (Narrative) (Details) - USD ($)	Mar. 10, 2015	Mar. 30, 2019	Dec. 29, 2018
Debt Instrument [Line Items]
Principal amount		$ 236,158,000
Line of Credit \| Term Loan
Debt Instrument [Line Items]
Principal amount	$ 350,000,000
Proceeds from debt	346,500,000
Debt instrument, unamortized discount	3,500,000	$ 2,700,000	$ 3,386,000
Payment of debt issuance cost	$ 8,300,000
Debt instrument, interest rate, effective percentage		7.42%
Debt instrument, periodic payment		$ 900,000	900,000
Debt instrument, payment, percentage		75.00%
Repayments of debt		$ 26,900,000
Debt principal payment			25,000,000
Mandatory debt payment from proceeds of asset sale		1,000,000
Debt outstanding		$ 236,158,000	$ 263,033,000
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%

Long-Term Debt (Debt Schedule) (Details) - USD ($)	Mar. 30, 2019	Dec. 29, 2018	Mar. 10, 2015
Debt Instrument [Line Items]
Principal amount	$ 236,158,000
Line of Credit \| Term Loan
Debt Instrument [Line Items]
Principal amount			$ 350,000,000
Unamortized original issue discount and debt costs	(2,700,000)	$ (3,386,000)	$ (3,500,000)
Less: Current portion of long-term debt	(7,796,000)	(8,290,000)
Long-term debt, net of current portion	$ 225,662,000	$ 251,357,000

Long-Term Debt (Interest Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Debt Disclosure [Abstract]
Contractual interest	$ 4,316	$ 4,528
Amortization of debt issuance costs and discount	687	507
Total interest expense related to the Term Loan	$ 5,003	$ 5,035

Long-Term Debt (Future Principal Payments) (Details) $ in Thousands	Mar. 30, 2019 USD ($)
Debt Disclosure [Abstract]
2019	$ 9,388
2020	59,291
2021	167,479
Total	$ 236,158

Stock-Based Compensation (Stock-based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 3,686	$ 4,800
Cost of products sold
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	202	237
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	1,125	1,207
Selling, general, and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 2,359	$ 3,356

Stock-Based Compensation (Narrative) (Details) $ in Thousands	3 Months Ended
	Mar. 30, 2019 USD ($) Period	Mar. 31, 2018 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 3,686	$ 4,800
President And Chief Executive Officer [Member] \| Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Award vesting rights, number of consecutive trailing four-quarter periods for measurement \| Period	2
Corporate Vice President Of Research And Development [Member] \| Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Executives
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 900	$ 300
TSR relative to PHLX Semiconductor Sector Index 50th percentile achievement \| President And Chief Executive Officer [Member] \| Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	100.00%
TSR relative to PHLX Semiconductor Sector Index 50th percentile achievement \| Corporate Vice President Of Research And Development [Member] \| Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	100.00%
TSR relative to PHLX Semiconductor Sector Index 75th percentile achievement \| President And Chief Executive Officer [Member] \| Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting multiplier	250.00%
TSR relative to PHLX Semiconductor Sector Index 75th percentile achievement \| Corporate Vice President Of Research And Development [Member] \| Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting multiplier	200.00%
TSR below 25th percentile \| President And Chief Executive Officer [Member] \| Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	0.00%

Stock-Based Compensation (Schedule of Activity for Stock Options with Market Condition) (Details) - Performance Shares shares in Thousands	3 Months Ended
	Mar. 30, 2019 shares
Unvested
Beginning balance, shares	909
Granted, shares	265
Canceled, shares	(98)
Ending balance, shares	1,076
Vested
Beginning balance, shares	0
Canceled, shares	0
Ending balance, shares	0
Total
Beginning balance, shares	909
Granted, shares	265
Canceled, shares	(98)
Ending balance, shares	1,076

Contingencies (Details) $ in Millions	Dec. 19, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Damages sought, value	$ 138

Segment and Geographic Information (Details) $ in Thousands	3 Months Ended		12 Months Ended
Segment and Geographic Information (Details) $ in Thousands	Mar. 30, 2019 USD ($) segment	Mar. 31, 2018 segment	Dec. 29, 2018 USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of operating segments \| segment	1	1
Total property and equipment, net	$ 36,758		$ 34,883
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	29,965		27,353
China
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	2,088		2,360
Philippines
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	3,142		3,319
Taiwan
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	802		949
Japan
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	280		324
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	481		578
Foreign countries
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	$ 6,793		$ 7,530
Geographic Concentration Risk \| Property, Plant and Equipment
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage	100.00%		100.00%
Geographic Concentration Risk \| Property, Plant and Equipment \| United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage	82.00%		78.00%
Geographic Concentration Risk \| Property, Plant and Equipment \| China
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage	6.00%		7.00%
Geographic Concentration Risk \| Property, Plant and Equipment \| Philippines
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage	8.00%		9.00%
Geographic Concentration Risk \| Property, Plant and Equipment \| Taiwan
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage	2.00%		3.00%
Geographic Concentration Risk \| Property, Plant and Equipment \| Japan
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage	1.00%		1.00%
Geographic Concentration Risk \| Property, Plant and Equipment \| Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage	1.00%		2.00%
Geographic Concentration Risk \| Property, Plant and Equipment \| Foreign countries
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage	18.00%		22.00%