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Income Taxes (Tables)

12 Months Ended

Dec. 28, 2019

Schedule of Income before Income Tax, Domestic and Foreign

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



	Year Ended
(In thousands)	December 28, 2019		December 29, 2018			December 30, 2017
Domestic	$	33,417	$	(8,274	)	$	(17,341	)
Foreign	11,648		(15,695		)	(52,372		)
Income (loss) before taxes	$	45,065	$	(23,969	)	$	(69,713	)

Schedule of Components of Income Tax Expense (Benefit)

The components of the Income tax expense are as follows:



	Year Ended
(In thousands)	December 28, 2019			December 29, 2018			December 30, 2017
Current:
Federal	$	499		$	536		$	508
State	45			38			30
Foreign	1,345			1,869			304
	1,889			2,443			842
Deferred:
Federal	—			—			—
State	—			—			—
Foreign	(317		)	(90		)	7
	(317		)	(90		)	7
Income tax expense	$	1,572		$	2,353		$	849

Schedule of Effective Income Tax Rate Reconciliation

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



	Year Ended
	December 28, 2019	December 29, 2018	December 30, 2017
	%	%	%
Statutory federal rate	21	(21)	(35)
Adjustments for tax effects of:
State taxes, net	3	(6)	(7)
Research and development credits	3	(5)	(1)
Stock compensation	(11)	8	3
Foreign rate differential	(2)	20	28
Foreign dividends	—	—	1
Foreign withholding taxes	3	5	—
Other permanent	6	2	—
Other deferred tax asset adjustment	—	13	—
Valuation allowance	(19)	(11)	(73)
Change in uncertain tax benefit accrual	—	2	1
Stock compensation (ASU 2016-09) adoption	—	—	(8)
Tax rate change	—	—	93
Other	—	3	(1)
Effective income tax rate	4	10	1

Schedule of Deferred Tax Assets and Liabilities

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



(In thousands)	December 28, 2019			December 29, 2018
Deferred tax assets:
Accrued expenses and reserves	$	4,137		$	3,714
Inventory	—			2
Deferred Revenue	—			—
Stock-based and deferred compensation	2,812			2,660
Interest expense disallowance	—			1,283
Intangible assets	12,294			14,649
Fixed assets	256			281
Net operating loss carry forwards	86,899			88,333
Tax credit carry forwards	90,339			92,208
Capital loss carry forwards	4,235			5,007
Other	1,059			1,130
Total deferred tax assets	202,031			209,267
Less: valuation allowance	(198,499		)	(207,108		)
Net deferred tax assets	3,532			2,159
Deferred tax liabilities:
Fixed assets	2,620			1,536
Deferred revenue	434			525
Other	—			(57		)
Total deferred tax liabilities	3,054			2,004
Net deferred tax assets	$	478		$	155

Schedule of Valuation Allowance

The following table displays the activity related to changes in our allowance for doubtful accounts:



Fiscal Years Ended (In thousands)	Balance at beginning of period		Charged (Credit) to costs and expenses			Charged (credit) to other accounts			Settlements & write-offs net of recoveries			Balance at end of period
Allowance for doubtful accounts
December 28, 2019	$	197	$	(30	)	$	(12	)	$	(49	)	$	106
December 29, 2018	$	9,371	$	1		$	73		$	(9,248	)	$	197
December 30, 2017	$	9,299	$	3		$	38		$	31		$	9,371

The following table displays the activity related to changes in our valuation allowance for deferred tax assets:



Fiscal Years Ended (In thousands)	Balance at beginning of period		Charged (Credit) to costs and expenses			Charged (credit) to other accounts			Balance at end of period
Valuation allowance for deferred tax assets
December 28, 2019	$	207,108	$	(8,609	)	$	—		$	198,499
December 29, 2018	$	209,691	$	(2,583	)	$	—		$	207,108
December 30, 2017	$	260,687	$	(50,960	)	$	(36	)	$	209,691

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

The following table summarizes the changes to unrecognized tax benefits for the fiscal years presented:



(In thousands)	Amount
Balance at December 31, 2016	$	47,623
Additions based on tax positions related to the current year	471
Additions based on tax positions of prior years	11
Reduction for tax positions of prior years	(1,226		)
Reduction as a result of lapse of applicable statute of limitations	(2,047		)
Balance at December 30, 2017	44,832
Additions based on tax positions related to the current year	389
Additions based on tax positions of prior years	19
Reductions for tax positions of prior years	(5		)
Reduction as a result of lapse of applicable statute of limitations	(1,235		)
Balance at December 29, 2018	44,000
Additions based on tax positions related to the current year	238
Additions based on tax positions of prior years	334
Reductions for tax positions of prior years	(213		)
Reduction as a result of lapse of applicable statute of limitations	(2,432		)
Balance at December 28, 2019	$	41,927

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Income Statement [Abstract]
Revenue	$ 404,093	$ 398,799	$ 385,961
Cost of revenue	165,671	179,360	169,382
Gross margin	238,422	219,439	216,579
Operating expenses:
Research and development	78,617	82,449	103,357
Selling, general, and administrative	82,542	91,054	90,718
Amortization of acquired intangible assets	13,558	17,690	31,340
Restructuring charges	4,664	17,349	7,196
Impairment of acquired intangible assets	0	12,486	32,431
Acquisition related charges	0	1,531	3,781
Gain on sale of building	0	0	(4,624)
Total operating expenses	179,381	222,559	264,199
Income (loss) from operations	59,041	(3,120)	(47,620)
Interest expense	(11,731)	(20,600)	(18,807)
Other expense, net	(2,245)	(249)	(3,286)
Income (loss) before income taxes	45,065	(23,969)	(69,713)
Income tax expense	1,572	2,353	849
Net income (loss)	$ 43,493	$ (26,322)	$ (70,562)
Net income (loss) per share:
Basic (in usd per share)	$ 0.33	$ (0.21)	$ (0.58)
Diluted (in usd per share)	$ 0.32	$ (0.21)	$ (0.58)
Shares used in per share calculations:
Basic (in shares)	132,471	126,564	122,677
Diluted (in shares)	137,274	126,564	122,677

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 28, 2019	Dec. 29, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	133,883,000	129,728,000
Common stock, shares outstanding	133,883,000	129,728,000

Balance Sheet Components - Narrative (Details) $ in Millions	Dec. 28, 2019 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Capitalized implementation costs	$ 2.5

Stock-Based Compensation Plans - Summary of RSU Activity (Details) - $ / shares shares in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Weighted average grant date fair value
Granted, Weighted average grant date fair value (dollars per share)	$ 1.69	$ 1.50
Restricted Stock Units (RSUs)
Shares
Balance at the beginning of period, Shares	4,412
Granted, Shares	2,445
Effect of vesting multiplier, Shares	216
Vested, Shares	(1,734)
Forfeited or expired, Shares	(564)
Balance at the end of period, Shares	4,775	4,412
Weighted average grant date fair value
Balance at the beginning of period, Weighted average grant date fair value (dollars per share)	$ 7.53
Granted, Weighted average grant date fair value (dollars per share)	16.23
Effect of vesting multiplier, Weighted average grant date fair value (dollars per share)	0.00
Vested, Weighted average grant date fair value (dollars per share)	8.10
Forfeited or expired, Weighted average grant date fair value (dollars per share)	7.27
Balance at the end of period, Weighted average grant date fair value (dollars per share)	$ 12.23	$ 7.53

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) $ in Thousands	3 Months Ended
	Sep. 30, 2017 USD ($)
June 2017 Plan
Stock-based compensation expense related to stock options, ESPP and RSUs (1)	$ 100

Intangible Assets - Schedule of annual expected amortization expense of acquired intangible assets (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
2020	$ 4,500
2021	2,239
2022	238
Intangible assets, net	$ 6,977	$ 21,325

Income Taxes - Reconciliation of Effective Income Tax Rate (Details)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Income Tax Disclosure [Abstract]
Statutory federal rate	21.00%	21.00%	35.00%
Adjustments for tax effects of:
State taxes, net	3.00%	6.00%	7.00%
Research and development credits	3.00%	5.00%	1.00%
Stock compensation	(11.00%)	(8.00%)	(3.00%)
Foreign rate differential	(2.00%)	(20.00%)	(28.00%)
Foreign dividends		0.00%	(1.00%)
Foreign withholding taxes	3.00%	(5.00%)	0.00%
Other permanent	6.00%	(2.00%)	0.00%
Other deferred tax asset adjustment		(13.00%)	0.00%
Valuation allowance	(19.00%)	11.00%	73.00%
Change in uncertain tax benefit accrual	0.00%	(2.00%)	(1.00%)
Stock compensation (ASU 2016-09) adoption	0.00%	0.00%	8.00%
Tax rate change	0.00%	0.00%	(93.00%)
Other	0.00%	(3.00%)	1.00%
Effective income tax rate	4.00%	(10.00%)	(1.00%)

Balance Sheet Components - Allowance for Doubtful Accounts (Details) - Allowance for doubtful accounts - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	$ 197	$ 9,371	$ 9,299
Charged (Credit) to costs and expenses	(30)	1	3
Charged (credit) to other accounts	(12)	73	38
Settlements & write-offs net of recoveries	(49)	(9,248)	31
Balance at end of period	$ 106	$ 197	$ 9,371

Restructuring

12 Months Ended

Dec. 28, 2019

Restructuring and Related Activities [Abstract]

Restructuring

In April 2019, our management approved and executed an internal restructuring plan (the “Q2 2019 Sales Plan”) which focused on a restructuring of the global sales organization through cancellation of certain contracts and a workforce reduction. Under this plan, we have incurred $2.0 million of restructuring expense during fiscal 2019. All actions planned under the Q2 2019 Sales Plan have been implemented.

In December 2018, our management approved and executed an internal restructuring plan (the “December 2018 Plan”), which included a global workforce reduction. This plan also included the abandonment of long lived assets related to the restructuring of our agreements with a privately-held investee. Under this plan, no restructuring expense was incurred during fiscal year 2019, and approximately $4.8 million of restructuring expense was incurred during fiscal year 2018. All actions planned under the December 2018 Plan have been implemented.

In June 2018, our Board of Directors approved an internal restructuring plan (the "June 2018 Plan"), which included the discontinuation of our millimeter wave business and the use of certain assets related to our Wireless products, and a workforce reduction. Under this plan, we recorded a total credit adjustment of approximately $0.1 million during fiscal 2019 due to the final reconciliation of expenses incurred, and we incurred approximately $4.2 million of restructuring expense during fiscal 2018. Approximately $4.1 million of total expense has been incurred through December 28, 2019 under the June 2018 Plan. All actions planned under the June 2018 Plan have been implemented.

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% or our facility in Portland, Oregon in the first quarter of fiscal 2019, and recorded approximately $2.7 million of Restructuring charges from ceasing use of this space, which includes approximately $1.0 million of impairment of the operating lease right-of-use asset for this property. During fiscal 2019, we entered into a sublease agreement for this facility and bought out the lease on the portion of the space that was not sublet. Under this plan, approximately $2.7 million, $8.4 million, and $8.0 million of expense was incurred during the years ended December 28, 2019, December 29, 2018, and December 30, 2017, respectively. Approximately $19.1 million of total expense has been incurred through December 28, 2019 under the June 2017 Plan, and all planned actions have been implemented. We expect the total cost of the June 2017 Plan to be approximately $20.0 million to $21.5 million as accretion expenses related to our partially vacated facility in San Jose, California will be incurred over the remaining lease term.

These expenses and credits were recorded to Restructuring charges on our Consolidated Statements of Operations. The restructuring accrual balance is presented in Accounts payable and accrued expenses and Other long-term liabilities on our Consolidated Balance Sheets.

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



(In thousands)	Severance & Related (1)			Lease Termination & Fixed Assets			Software Contracts & Engineering Tools (2)			Other (3)			Total
Balance at December 31, 2016	$	801		$	1,036		$	25		$	12		$	1,874
Restructuring charges	2,484			811			3,066			835			7,196
Costs paid or otherwise settled	(2,093		)	(977		)	(2,731		)	(822		)	(6,623		)
Balance at December 30, 2017	$	1,192		$	870		$	360		$	25		$	2,447
Restructuring charges	5,696			7,379			913			3,361			17,349
Costs paid or otherwise settled	(5,074		)	381			(1,055		)	(3,368		)	(9,116		)
Balance at December 29, 2018	$	1,814		$	8,630		$	218		$	18		$	10,680
Restructuring charges	625			2,716			—			1,323			4,664
Costs paid or otherwise settled	(2,279		)	(4,761		)	(218		)	(476		)	(7,734		)
Balance at December 28, 2019	$	160		$	6,585		$	—		$	865		$	7,610



(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
(3)	In fiscal 2018, "Other" activity included the abandonment of long lived assets related to the restructuring of our agreements with a privately-held investee. In fiscal 2019, "Other" activity included termination fees on the cancellation of certain contracts under the Q2 2019 Sales Plan

Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 134,380	$ 135,115
Accumulated Amortization	(127,403)	(113,790)
Intangible assets, net	$ 6,977	$ 21,325
Developed technology
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	5 years	5 years
Intangible assets, gross	$ 110,987	$ 110,987
Accumulated Amortization	(105,594)	(94,389)
Intangible assets, net	$ 5,393	$ 16,598
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	5 years 9 months 22 days	5 years 9 months 22 days
Intangible assets, gross	$ 22,934	$ 22,934
Accumulated Amortization	(21,400)	(19,048)
Intangible assets, net	$ 1,534	$ 3,886
Licensed technology
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	5 years	5 years
Intangible assets, gross	$ 459	$ 1,194
Accumulated Amortization	(409)	(353)
Intangible assets, net	$ 50	$ 841

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

Income Taxes - Valuation Allowance for Deferred Tax Assets (Details) - Valuation allowance for deferred tax assets - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	$ 207,108	$ 209,691	$ 260,687
Charged (Credit) to costs and expenses	(8,609)	(2,583)	(50,960)
Charged (credit) to other accounts	0	0	(36)
Balance at end of period	$ 198,499	$ 207,108	$ 209,691

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 165,220	$ 176,250
Accumulated depreciation and amortization	(125,990)	(141,367)
Property and equipment, net	39,230	34,883
United States
Property, Plant and Equipment [Line Items]
Property and equipment, net	32,313	27,353
China
Property, Plant and Equipment [Line Items]
Property and equipment, net	1,683	2,360
Philippines
Property, Plant and Equipment [Line Items]
Property and equipment, net	2,683	3,319
Taiwan
Property, Plant and Equipment [Line Items]
Property and equipment, net	1,885	949
Japan
Property, Plant and Equipment [Line Items]
Property and equipment, net	283	324
Other
Property, Plant and Equipment [Line Items]
Property and equipment, net	383	578
Foreign countries
Property, Plant and Equipment [Line Items]
Property and equipment, net	6,917	7,530
Production equipment and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	150,591	160,979
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	12,517	12,648
Office furniture and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,112	$ 2,623

Stock-Based Compensation Plans - Narrative (Details)	12 Months Ended
Stock-Based Compensation Plans - Narrative (Details)	Dec. 28, 2019 USD ($) period plan $ / shares shares	Dec. 29, 2018 USD ($) $ / shares shares	Dec. 30, 2017 USD ($) $ / shares	May 31, 2012 shares
Class of Stock [Line Items]
Number of equity incentive plans \| plan	2
Contractual terms of options granted (do not exceed)	10 years
Compensation expense	$ 18,899,000	$ 13,646,000	$ 12,543,000
Plan adjustment ratio	2.2
Number of outstanding option (in shares) \| shares	3,332,000	6,616,000
Total unrecognized compensation cost related to unvested employee and director stock options	$ 3,200,000
Total intrinsic value of options exercised	17,800,000	$ 6,500,000	2,200,000
Total fair value of options and RSU's vested and expensed	$ 18,400,000	$ 13,000,000	$ 12,500,000
Grant date weighted average fair values based on fair value assumptions, options (in dollars per share) \| $ / shares		$ 2.73	$ 2.02
Grant date weighted average fair values based on fair assumptions, non-options (in dollars per share) \| $ / shares	$ 1.69	$ 1.50
Chief Executive Officer
Class of Stock [Line Items]
Compensation expense		$ 1,400,000
Executive Officer
Class of Stock [Line Items]
Compensation expense	$ 5,700,000
Minimum
Class of Stock [Line Items]
Contractual terms of options granted (do not exceed)	2 years
Maximum
Class of Stock [Line Items]
Contractual terms of options granted (do not exceed)	3 years
Employee and Director Stock Options
Class of Stock [Line Items]
Award vesting period	4 years
Weighted average period for recognition	1 year 6 months
Restricted Stock Units (RSUs)
Class of Stock [Line Items]
Award vesting period	4 years
Grant date weighted average fair values based on fair assumptions, non-options (in dollars per share) \| $ / shares	$ 16.23
Unrecognized compensation expense related to unvested RSU's	$ 51,900,000
Restricted Stock Units (RSUs) \| Executive Officer
Class of Stock [Line Items]
Compensation expense		$ 900,000	$ 500,000
Performance Shares
Class of Stock [Line Items]
Number of outstanding option (in shares) \| shares	0	0
Performance Shares \| Executive Officer
Class of Stock [Line Items]
Award vesting period			2 years
Award vesting comparison period			2 years
Performance Shares \| President and Chief Executive Officer
Class of Stock [Line Items]
Award vesting period	3 years
Number of consecutive trailing four-quarter periods for measurement \| period	2
Performance Shares \| Minimum
Class of Stock [Line Items]
Award vesting percentage	0.00%
Performance Shares \| Minimum \| Executive Officer
Class of Stock [Line Items]
Award vesting percentage			0.00%
Performance Shares \| Maximum
Class of Stock [Line Items]
Award vesting percentage	250.00%
Performance Shares \| Maximum \| Executive Officer
Class of Stock [Line Items]
Award vesting percentage			200.00%
Performance Shares \| TSR Relative To PHLX Semiconductor Sector Index 50th Percentile Achievement \| President and Chief Executive Officer
Class of Stock [Line Items]
Award vesting percentage	100.00%
Performance Shares \| TSR Relative To PHLX Semiconductor Sector Index 75th Percentile Achievement \| President and Chief Executive Officer
Class of Stock [Line Items]
Vesting multiplier	250.00%
Performance Shares \| TSR Relative To PHLX Semiconductor Sector Index 75th Percentile Achievement \| Corporate Vice President of Research and Development
Class of Stock [Line Items]
Vesting multiplier	200.00%
Performance Shares \| TSR Below 25th Percentile \| President and Chief Executive Officer
Class of Stock [Line Items]
Award vesting percentage	0.00%		0.00%
2012 ESPP
Class of Stock [Line Items]
Number of shares authorized \| shares				3,000,000
Percentage of employee's compensation maximum for employee share purchases	10.00%
Purchase price of shares as percentage of fair market value	85.00%
Compensation expense	$ 500,000	$ 600,000	$ 0
Number of shares available for future awards \| shares	1,400,000
2013 Incentive Plan, Inducement Plan and the 2011 Non-Employee Director Equity Incentive Plan
Class of Stock [Line Items]
Number of shares available for future awards \| shares	9,000,000
2013 Incentive Plan
Class of Stock [Line Items]
Number of shares transfered out of plan \| shares	2,900,000

Basis of Presentation and Significant Accounting Policies (Policies)

12 Months Ended

Dec. 28, 2019

Accounting Policies [Abstract]

Basis of Presentation

The accompanying Consolidated Financial Statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). They 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 judgments affecting the amounts reported in our consolidated condensed financial statements and the accompanying notes. The actual results that we experience may differ materially from our estimates.

Fiscal Reporting Periods

We report based on a 52 or 53-week fiscal year ending on the Saturday closest to December 31. Our fiscal 2019, 2018, and 2017 were 52-week years that ended December 28, 2019, December 29, 2018, and December 30, 2017 respectively. Our fiscal 2020 will be a 53-week year and will end on January 2, 2021. All references to quarterly or annual financial results are references to the results for the relevant fiscal period.

Concentrations of Risk

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

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. Our two largest distributor groups, the Weikeng Group ("Weikeng") and Arrow Electronics, Inc. ("Arrow"), each account for substantial portions of our total revenue and our net accounts receivable. Revenue attributable to distributors as a percentage of total revenue is presented in the following table:



	Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
Weikeng Group	30	%	25	%	27	%
Arrow Electronics Inc.	25		29		24
All others	27		29		26
Revenue attributable to distributors*	82	%	83	%	77	%



*	During the first quarter of 2018, we updated our channel categories to group all forms of distribution into a single channel. Prior periods have been reclassified to match the current period presentation.

At December 28, 2019 and December 29, 2018, Arrow accounted for 40% and 41%, respectively, and Weikeng accounted for 38% and 23%, respectively, of net accounts receivable. 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.

We rely on a limited number of foundries for our wafer purchases. 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, or create delays in production or shipments, among other factors.

Cash and Cash Equivalents

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, which approximates fair value. Deposits with financial institutions at times exceed Federal Deposit Insurance Corporation insurance limits.

Foreign Exchange and Translation of Foreign Currencies

While our revenues and the majority of our expenses are denominated in U.S. dollars, we also have international subsidiaries and branch operations that conduct some transactions in foreign currencies. Gains or losses from foreign exchange rate fluctuations on balances denominated in foreign currencies are reflected in Other expense, net.

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 our Consolidated Statements of Stockholders' Equity).

Revenue Recognition

We adopted ASC 606 effective on December 31, 2017, the first day of our 2018 fiscal year, using the modified retrospective method. Under this transition method, we applied the provisions of the new standard to all open customer contracts as of the date of adoption and recorded the cumulative effect of adoption to Accumulated deficit on December 31, 2017. We have not restated any prior financial statements presented. Under the guidance in effect prior to the adoption of ASC 606, we deferred the recognition of revenue and the cost of revenue from certain sales until the distributors of our products reported that they had sold the products to their customers, at which point the selling price of these products became fixed and determinable, and certain licensing revenues were not recognizable under previous GAAP due to the fixed and determinable revenue recognition criteria not being met.

Under ASC 606, we recognize revenue when we satisfy performance obligations as evidenced by the transfer of control of our products or services to customers. We consider customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. 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. The majority of our revenue is derived from product sales. For each contract, we consider our promise to transfer each distinct product to be the identified performance obligations. Revenue for product sales is recognized at the time of product shipment, as determined by the agreed upon contract shipping terms.

Our Licensing and services revenue is comprised of revenue from our intellectual property ("IP") core licensing activity, patent monetization activities, design services, 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 and agreements with the standards consortia of which we are a member to be 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. We recognize license revenue at the point in time that control of the license transfers to the customer, which is generally upon delivery, or as usage occurs.

We measure revenue based on the amount of consideration we expect to be entitled to in exchange for products or services. Variable consideration is estimated and reflected as an adjustment to the transaction price. We determine variable consideration, which consists primarily of various sales price concessions, by estimating the most likely amount of consideration we expect to receive from the customer 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. Sales rebates earned by customers are offset against their receivable balances. Rebates earned by customers when they do not have outstanding receivable balances are recorded within other accrued liabilities. The impacts of distributor sales price reductions resulting from price protection agreements are also estimated based on historical analysis of such activity and are reflected as a reduction in net revenue. Our HDMI and MHL standards revenue, as well as certain IP licenses, include variable consideration in the form of usage-based royalties.

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 cases, 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. Under the practical expedient provided by ASC 340, we generally expense sales commissions when incurred because the amortization period would be 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.

Inventories and Cost of Revenue

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

Property and Equipment

Property and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method 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. We capitalize costs for the fabrication of masks used by our foundry partners to manufacture our products. The capitalized mask costs begin depreciating to Cost of revenue once the products go into production, and depreciation is straight-lined over a three-year period, which is the expected useful life of the mask. 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.

Impairment of Long-Lived Assets

Long-lived assets, which consist primarily of property and equipment and amortizable intangible assets, are carried on our financial statements based on their cost less accumulated depreciation or amortization. We monitor the carrying value of our long-lived assets for potential impairment and test the recoverability of such assets whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. These events or changes in circumstances, including management decisions pertaining to such assets, are referred to as impairment indicators. If an impairment indicator occurs, we perform a test of recoverability by comparing the carrying value of the asset group to its undiscounted expected future cash flows. If the carrying values are in excess of undiscounted expected future cash flows, we measure any impairment by comparing the fair value of the asset group to its carrying value. Fair value is generally determined by considering (i) internally developed discounted projected cash flow analysis of the asset group; (ii) actual third-party valuations; and/or (iii) information available regarding the current market for similar asset groups. If the fair value of the asset group is determined to be less than the carrying amount of the asset group, an impairment in the amount of the difference is recorded in the period that the impairment indicator occurs and is included in our Consolidated Statements of Operations. Estimating future cash flows requires significant judgment and projections may vary from the cash flows eventually realized, which could impact our ability to accurately assess whether an asset has been impaired. There has been no occurrence of events to date that would trigger an impairment analysis of property and equipment.

Valuation of Goodwill

Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is not amortized, but is instead tested for impairment annually during the fourth quarter and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. When evaluating whether goodwill is impaired, we make a qualitative assessment to determine if it is more likely than not that the reporting unit's fair value is less than the carrying amount. If the qualitative assessment determines that it is more likely than not that the fair value is less than the carrying amount, the fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit is less than its carrying value, then goodwill impairment exists for the reporting unit. The impairment loss, if any, is recognized for the amount by which the carrying value exceeds the fair value. If the fair value of the reporting unit exceeds its carrying value, no further impairment analysis is needed. For purposes of testing goodwill for impairment, we currently operate as a single reporting unit: the core Lattice ("Core") business, which includes intellectual property and semiconductor devices. We do not expect goodwill impairment to be tax deductible for income tax purposes.

We determined that the strategic decision to discontinue our millimeter wave business in the second quarter of 2018 constituted a triggering event related to goodwill, and we evaluated our goodwill balance as of June 30, 2018. We concluded that goodwill was not impaired, and no impairment charges relating to goodwill were recorded for fiscal 2018.

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. 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, which we have applied to all asset classes. Concurrent with our adoption of Topic 842, we have early adopted ASU 2019-01, Leases (Topic 842): Codification Improvements, which grants disclosure relief for interim periods during the year in which a company adopted Topic 842.

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 determine the present value of lease payments using an incremental borrowing rate based on information from our commercial bank for an equivalent borrowing and term in the respective region as of the lease commencement date. 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. We have operating leases for corporate offices, sales offices, research and development facilities, storage facilities, and a data center.

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.

Research and Development

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

Restructuring Charges

Expenses associated with exit or disposal activities are recognized when incurred under ASC 420, “Exit or Disposal Cost Obligations,” for everything except severance expenses and vacated leased facilities. Because we have a history of paying severance benefits, the cost of severance benefits associated with a restructuring plan is recorded when such costs are probable and the amount can be reasonably estimated in accordance with ASC 712, “Compensation - Nonretirement Postemployment Benefits.” When leased facilities are vacated, the amount of any ROU asset impairment is calculated in accordance with ASC 360, "Property, Plant, and Equipment" and recorded as a part of restructuring charges. Expenses from other exit or disposal activities, including the cancellation of software contracts and engineering tools or the abandonment of long-lived assets, is recorded as a part of restructuring charges.

Accounting for Income Taxes

Our provision for income tax is comprised of our current tax liability and changes in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements using enacted tax rates and laws that will be in effect when the difference is expected to reverse. Valuation allowances are provided to reduce deferred tax assets to an amount that in management’s judgment is more-likely-than-not to be recoverable against future taxable income. The determination of a valuation allowance and when it should be released requires complex judgment.

In assessing the ability to realize deferred tax assets, we evaluate both positive and negative evidence that may exist and consider whether it is more-likely-than-not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Any adjustment to the net deferred tax asset valuation allowance is recorded in the Consolidated Statements of Operations for the period that the adjustment is determined to be required.

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

Stock-Based Compensation

We use the Black-Scholes option pricing model to estimate the fair value of substantially all share-based awards consistent with the provisions of ASC 718, “Compensation - Stock Compensation.” We have also granted stock options and RSUs with a market condition to certain executives. We determined and fixed the fair value of the awards with a market condition 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. The awards with a market condition generally have a two- or three-year vesting period and vest between 0% and 250% of the target amount, based on the Company's relative Total Shareholder Return ("TSR") when compared to the TSR of a component of companies of the PHLX Semiconductor Sector Index over the measurement period. TSR is a measure of stock price appreciation plus dividends paid, if any, in the performance period. We have also granted RSUs with a performance condition to our President and Chief Executive Officer, which 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 assess the probability of achieving the performance condition on a quarterly basis. We valued the RSUs with a performance condition using the market price on the day of grant.

Segment Information

As of December 28, 2019, we had one operating segment: the core Lattice business, which includes semiconductor devices, evaluation boards, development hardware, and related intellectual property licensing, services, and sales. Our chief operating decision maker is the Chief Executive Officer, who reviews operating results and financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance.

New Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This guidance requires entities to use a current expected credit loss (“CECL”) methodology to measure impairments of certain financial assets and to recognize an allowance for its estimate of lifetime expected credit losses. The new standard will become effective for our fiscal year 2020, which begins on December 29, 2019. We are evaluating the implementation of ASC 326 and expect it will not have a material impact on our consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which adds new guidance for accounting for tax law changes, year-to-date losses in interim periods, and determining how to apply the income tax guidance to franchise taxes that are partially based on income, as well as other changes to simplify accounting for income taxes. The ASU is effective for calendar year-end public business entities on January 1, 2021. Entities may early adopt the ASU in any interim period for which financial statements have not yet been issued (or made available for issuance). We are currently assessing the impact of ASU 2019-12 on our consolidated financial statements and related disclosures.

Revenue from Contracts with Customers - Contract Liability (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Movement In Contract With Customer, Liability, Net [Roll Forward]
Beginning balance	$ 1,614	$ 0
Accruals for estimated future stock rotation and scrap returns	5,763	4,281
Less: Release of accruals for recognized stock rotation and scrap returns	(5,064)	(2,667)
Ending balance	2,313	1,614
Processing of RMAs	5,000	3,700
Net revenue increase (decrease)	$ 100	$ (1,000)

Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	$ 13,613	$ 17,967	$ 31,909
Research and development
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	55	277	569
Amortization of acquired intangible assets
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	$ 13,558	$ 17,690	$ 31,340

Subsequent Event	12 Months Ended
Subsequent Event	Dec. 28, 2019
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event Subsequent to December 28, 2019, the Company's Board of Directors approved a stock repurchase program pursuant to which up to $40.0 million of outstanding common stock may be repurchased from time to time. The duration of the repurchase program is twelve months. All repurchases will be open market transactions and funded from available working capital.

Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Dec. 28, 2019	Dec. 29, 2018
Inventory [Line Items]
Work in progress		$ 39,855	$ 47,224
Finished goods		15,125	19,872
Total inventories		$ 54,980	$ 67,096
Discontinued Operations \| Millimeter Wave Business
Inventory [Line Items]
Inventory write-down	$ 8,000

Long-Term Debt - Narrative (Details) - USD ($)		3 Months Ended	12 Months Ended
Long-Term Debt - Narrative (Details) - USD ($)	May 17, 2019	Jun. 29, 2019	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Debt Instrument [Line Items]
Payment of debt issuance cost			$ 2,086,000	$ 0	$ 0
Loss on re-financing of long-term debt		$ 2,200,000	$ 2,235,000	$ 0	$ 0
Previous Credit Agreement
Debt Instrument [Line Items]
Repayments of debt	$ 204,400,000
Secured Debt \| Term Loan
Debt Instrument [Line Items]
Debt instrument, term	5 years
Debt principal amount	$ 175,000,000
Amount drawn	175,000,000
Debt instrument, interest rate, effective percentage			3.16%
Debt instrument, periodic payment			$ 4,400,000
Secured Debt \| Credit Agreement, May 17, 2019
Debt Instrument [Line Items]
Payment of debt issuance cost	$ 2,100,000
Revolving Credit Facility \| Secured Debt
Debt Instrument [Line Items]
Debt instrument, term	5 years
Debt principal amount	$ 75,000,000
Amount drawn	$ 31,500,000
Commitment fee, percentage			0.20%
Option One \| Minimum \| Secured Debt \| Base Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate			0.25%
Option One \| Maximum \| Secured Debt \| Base Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate			1.00%
Option Two \| Secured Debt \| Credit Agreement, May 17, 2019 \| Federal Funds Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate			0.50%
Option Two \| Minimum \| Secured Debt \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate			1.25%
Option Two \| Maximum \| Secured Debt \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate			2.00%
Option Three \| Secured Debt \| Credit Agreement, May 17, 2019 \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate			1.00%

Long-Term Debt - Debt Schedule (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Debt Disclosure [Abstract]
Principal amount	$ 148,125	$ 263,033
Unamortized original issue discount and debt costs	(1,579)	(3,386)
Less: Current portion of long-term debt	(21,474)	(8,290)
Long-term debt, net of current portion and unamortized debt issue costs	$ 125,072	$ 251,357

Balance Sheet Components - Short-Term Marketable Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Short-term marketable securities term	2 years
Short-term marketable securities:
Maturing within one year	$ 0	$ 7,454
Maturing between one and two years	0	2,170
Total marketable securities	$ 0	$ 9,624

Leases - Schedule of Lease Balance Classifications Within Consolidated Balance Sheets and Lease Activities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
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	747
Reduction in the carrying amount of right-of-use assets during the period	(5,797)	$ 0	$ 0
Impairment of right-of-use asset on Portland, Oregon office (recorded in Restructuring charges)	(977)
Adjustments for present value and foreign currency effects	(275)
Balance as of December 28, 2019	23,591	0
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	747
Accretion of lease liabilities	1,918
Operating cash used by payments on lease liabilities	(8,425)
Adjustments for present value, foreign currency, and restructuring liability effects	(389)
Balance as of December 28, 2019	26,124	$ 0
Less: Current portion of operating lease liabilities	(4,686)
Long-term operating lease liabilities, net of current portion	$ 21,438

Stock-Based Compensation Plans - Summary of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 28, 2019 USD ($) $ / shares shares
Shares
Beginning balance, Shares	6,616
Granted, Shares	0
Effect of vesting multiplier, Shares	36
Exercised, Shares	(2,715)
Forfeited or expired, Shares	(605)
Ending balance, Shares	3,332
Vested and expected to vest at end of period, Shares	3,332
Exercisable at end of period, Shares	1,721
Weighted average exercise price
Beginning balance (dollars per share) \| $ / shares	$ 5.94
Granted (dollars per share) \| $ / shares	0.00
Exercised (dollars per share) \| $ / shares	5.73
Forfeited or expired (dollars per share) \| $ / shares	5.72
Ending balance (dollars per share) \| $ / shares	6.16
Vested and expected to vest at end of period, Weighted average exercise price (dollars per share) \| $ / shares	6.16
Exercisable at end of period, Weighted average exercise price (dollars per share) \| $ / shares	$ 6.00
Total
Vested and expected to vest at end of period, Weighted average remaining contractual term	4 years 6 months
Vested and expected to vest at end of period, aggregate intrinsic value \| $	$ 43,553
Exercisable at end of period, Weighted average remaining contractual term	3 years 11 months 12 days
Exercisable at end of period, aggregate intrinsic value \| $	$ 22,758

Stock-Based Compensation Plans

12 Months Ended

Dec. 28, 2019

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation Plans

Employee and Director Stock Options, Restricted Stock and ESPP

We have two active equity incentive plans, the "2013 Incentive Plan and the "2011 Non-Employee Director Equity Incentive Plan", under which shares remain available for grants to employees and non-employee directors, respectively. In addition, we have made grants of inducement awards to certain of our newly hired executives and employees that are granted outside of, but governed by, the 2013 Incentive Plan. "Incentive stock options" under Section 422 of the U.S. Internal Revenue Code and restricted stock unit ("RSU") grants are part of our equity compensation practices for employees who receive equity grants. Options and RSUs generally vest quarterly over a four-year period beginning on the grant date. The contractual terms of options granted do not exceed ten years.

In May 2012, the Company's stockholders approved the 2012 Employee Stock Purchase Plan ("2012 ESPP"), which authorizes the issuance of 3.0 million shares of common stock to eligible employees to purchase shares of common stock through payroll deductions, which cannot exceed 10% of an employee's compensation. The purchase price of the shares is the lower of 85% of the fair market value of the stock at the beginning of each six-month offering period or 85% of the fair market value at the end of such period. We have treated the 2012 ESPP as a compensatory plan. We recorded $0.5 million and $0.6 million related compensation expense in fiscal 2019 and 2018, respectively. During fiscal 2017 only, the ESPP was suspended and we recorded no related compensation expense.

At December 28, 2019, a total of 9.0 million shares of our common stock were available for future grants under the 2013 Incentive Plan, and the 2011 Non-Employee Director Equity Incentive Plan. Following our 2018 Shareholder meeting, a share ratio of 2.2:1 was applied to the 2013 Incentive Plan. This ratio takes two and two tenths shares out of the 2013 Plan for every one full value share granted. During fiscal 2019, a total of 2.9 million shares were adjusted out of the 2013 Plan. Shares subject to stock option grants that expire or are canceled, without delivery of such shares, generally become available for re-issuance under equity incentive plans. At December 28, 2019, a total of 1.4 million shares of our common stock were available for future purchases under the 2012 ESPP.

Stock-Based Compensation

Total stock-based compensation expense included in our Consolidated Statements of Operations is presented in the following table:



	Year Ended
(In thousands)	December 28, 2019		December 29, 2018		December 30, 2017
Cost of revenue	$	1,422	$	940	$	795
Research and development	5,640		4,357		5,245
Selling, general, and administrative	11,837		8,349		6,503
Total stock-based compensation	$	18,899	$	13,646	$	12,543

The stock-based compensation expense included in Selling, general, and administrative expense for fiscal 2018 includes approximately $1.4 million of additional one-time expense for acceleration of stock compensation under the CEO separation agreement executed with our former CEO during the first quarter of fiscal 2018.

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

The following table summarizes the assumptions used in the valuation of stock option and ESPP compensation:



	Year Ended
	December 28, 2019	December 29, 2018	December 30, 2017
Employee and Director Stock Options *
Expected volatility	n/a	39.87% to 41.11%	40.96% to 48.01%
Risk-free interest rate	n/a	2.29% to 2.78%	1.99% to 2.09%
Expected term (years)	n/a	4.08 to 4.25	4.08 to 4.25
Employee Stock Purchase Plan **
Weighted average expected volatility	31.6%	36.4%	n/a
Weighted average risk-free interest rate	2.51%	1.61%	n/a
Expected term	6 months	6 months	n/a

* No stock options granted during fiscal 2019
** ESPP suspended during fiscal 2017 only

At December 28, 2019, there was $3.2 million of total unrecognized compensation cost related to unvested employee and director stock options, which is expected to be recognized over a weighted average period of 1.5 years. Our current practice is to issue new shares to satisfy option exercises. Compensation expense for all stock-based compensation awards is recognized using the straight-line method.

The following table summarizes our stock option activity and related information for the year ended December 28, 2019:



(Shares and aggregate intrinsic value in thousands)	Shares		Weighted average exercise price		Weighted average remaining contractual term (years)	Aggregate Intrinsic Value
Balance, December 29, 2018	6,616		$	5.94
Granted	—		—
Effect of vesting multiplier	36
Exercised	(2,715	)	5.73
Forfeited or expired	(605	)	5.72
Balance, December 28, 2019	3,332		$	6.16
Vested and expected to vest at December 28, 2019	3,332		$	6.16	4.50	$	43,553
Exercisable, December 28, 2019	1,721		$	6.00	3.95	$	22,758

The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the Company's closing stock price on the last trading day of the fiscal year and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on that day. This amount changes based on the fair market value of the Company's stock. Total intrinsic value of options exercised for fiscal 2019, 2018, and 2017 was $17.8 million, $6.5 million, and $2.2 million, respectively. The total fair value of options and RSUs vested and expensed in fiscal 2019, 2018, and 2017 was $18.4 million, $13.0 million, and $12.5 million, respectively.

The resultant grant date weighted-average fair values for stock options granted, calculated using the Black-Scholes option pricing model with the noted assumptions for stock options, were $2.73 and $2.02 for fiscal years 2018 and 2017, respectively. No stock options were granted during fiscal 2019. The weighted average fair values for the ESPP, calculated using the Black-Scholes option pricing model with the noted assumptions for the ESPP, were $1.69 and $1.50 for fiscal years 2019 and 2018, respectively.

The following table summarizes our RSU activity for the year ended December 28, 2019:



(Shares in thousands)	Shares		Weighted average grant date fair value
Balance, December 29, 2018	4,412		$	7.53
Granted	2,445		16.23
Effect of vesting multiplier	216		—
Vested	(1,734	)	8.10
Forfeited or expired	(564	)	7.27
Balance, December 28, 2019	4,775		$	12.23

At December 28, 2019 there was $51.9 million of total unrecognized compensation cost related to unvested RSUs. Our current practice is to issue new shares when RSUs vest. Compensation expense for RSUs is recognized using the straight-line method over the related vesting period.

Market-Based and Performance-Based Stock Compensation

In fiscal years 2017 through 2019, we granted stock options and RSUs with either a market condition (TSR) or a performance condition (Adjusted EBITDA) to certain executives.

The options with a market condition granted in fiscal year 2017 have a two year vesting period and vest between 0% and 200% of the target amount, based on the Company's relative TSR when compared to the TSR of a component of companies of the PHLX Semiconductor Sector Index over a two year period. Under the terms of the grants, executives will receive the target amount if the Company’s TSR relative to that of the Index achieves or exceeds the 50^th percentile. Executives may receive 200% if the Company’s TSR exceeds the 75^th percentile. No vesting occurs if the Company’s TSR does not exceed the 25^th percentile.

In fiscal years 2018 and 2019, we granted inducement awards outside of, but subject to the terms and conditions of the 2013 Incentive Plan to certain executives. These awards consisted of RSUs with either a market condition or a performance condition that vest and become payable upon achievement of TSR or 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 and either 200% or 250% of the units vesting at the 75th percentile, depending upon the executive, 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. During the third quarter of fiscal 2019, the market condition for awards granted in the previous year achieved the 75^th percentile of the condition, and the first tranche of these awards vested at 200% or 250% of the RSUs, as applicable for the respective executive.

The following table summarizes the assumptions used in the valuation of stock options and RSUs with a market or performance condition:



	Year Ended
	December 28, 2019	December 29, 2018	December 30, 2017
Executive stock options with a market condition
Expected volatility	n/a	n/a	41%
Risk-free interest rate	n/a	n/a	1.9%
Expected term (years)	n/a	n/a	4.5
Executive RSUs with a market or performance condition
Expected volatility	40.15% to 41.10%	41.06% to 41.74%	n/a
Risk-free interest rate	1.66% to 2.55%	2.71% to 2.87%	n/a
Expected term (years)	3.00	3.00 to 3.16	n/a

The following table summarizes the activity for our stock options and RSUs with a market condition or performance condition:



(Shares in thousands)	Unvested		Vested		Total
Balance, December 29, 2018	909		—		909
Granted	584		—		584
Effect of vesting multiplier	260		—		260
Vested	(484	)	71		(413	)
Exercised	—		(71	)	(71	)
Canceled	(106	)	—		(106	)
Balance, December 28, 2019	1,163		—		1,163

We incurred stock compensation expense related to these stock option and RSU awards with a market or performance condition of approximately $5.7 million, $0.9 million, and $0.5 million in fiscal years 2019, 2018, and 2017, respectively, which is recorded as a component of total stock-based compensation expense.

Income Taxes - Summary of Changes to Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Beginning balance	$ 44,000	$ 44,832	$ 47,623
Additions based on tax positions related to the current year	238	389	471
Additions based on tax positions of prior years	334	19	11
Reduction for tax positions of prior years	(213)	(5)	(1,226)
Reduction as a result of lapse of applicable statute of limitations	(2,432)	(1,235)	(2,047)
Ending balance	$ 41,927	$ 44,000	$ 44,832

Label

Element

Value

Cumulative Effect of New Accounting Principle in Period of Adoption

us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption

$ (355,000)

^[1]

Cumulative Effect of New Accounting Principle in Period of Adoption

us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption

27,401,000

^[2]

Retained Earnings [Member]

Cumulative Effect of New Accounting Principle in Period of Adoption

us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption

(355,000)

^[1]

Cumulative Effect of New Accounting Principle in Period of Adoption

us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption

$ 27,401,000

^[2]

[1]

During the first quarter of fiscal 2017, we early adopted ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.This guidance is required to be applied on a modified retrospective basis through a cumulative-effect adjustment to the balance sheet as of the beginningof the fiscal year of adoption. As a result of this adoption, we recorded a nominal amount to Accumulated deficit, as detailed in the table above.

[2]

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

Balance Sheet Components - Accounts Receivable (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 28, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts receivable	$ 61,087	$ 65,023
Less: Allowance for doubtful accounts	(197)	(106)
Accounts receivable, net of allowance for doubtful accounts	60,890	$ 64,917
Accounts receivable, write-offs	$ 9,000

Subsequent Event (Details) - Subsequent Event	2 Months Ended
Subsequent Event (Details) - Subsequent Event	Feb. 24, 2020 USD ($)
Subsequent Event [Line Items]
Stock repurchase program, Authorized amount (up to)	$ 40,000,000.0
Stock repurchase program, period	12 months

Property and Equipment

12 Months Ended

Dec. 28, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment



(In thousands)	December 28, 2019			December 29, 2018
Production equipment and software	$	150,591		$	160,979
Leasehold improvements	12,517			12,648
Office furniture and equipment	2,112			2,623
	165,220			176,250
Accumulated depreciation and amortization	(125,990		)	(141,367		)
	$	39,230		$	34,883

For fiscal year 2019, depreciation and amortization expense for property and equipment was $11.6 million, including $0.4 million of restructuring expense. For fiscal year 2018, depreciation and amortization expense for property and equipment was $13.4 million, including $0.6 million of restructuring expense. For fiscal year 2017, depreciation and amortization expense for property and equipment was $16.3 million.

In August 2017, we sold building space which we owned in Shanghai, China for gross proceeds of approximately $7.9 million. As of the sale date, the building had a historical cost of $3.6 million, accumulated depreciation of $1.4 million and we incurred $1.1 million of direct selling costs, resulting in a net gain on sale of $4.6 million, which is presented as Gain on sale of building in our Consolidated Statements of Operations.

Property and Equipment – Geographic Information

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



(In thousands)	December 28, 2019		December 29, 2018
United States	$	32,313	$	27,353
China	1,683		2,360
Philippines	2,683		3,319
Taiwan	1,885		949
Japan	283		324
Other	383		578
Total foreign property and equipment, net	6,917		7,530
Total property and equipment, net	$	39,230	$	34,883

Income Taxes - Components of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Deferred tax assets:
Accrued expenses and reserves	$ 4,137	$ 3,714
Inventory	0	2
Deferred Revenue	0	0
Stock-based and deferred compensation	2,812	2,660
Interest expense disallowance	0	1,283
Intangible assets	12,294	14,649
Fixed assets	256	281
Net operating loss carry forwards	86,899	88,333
Tax credit carry forwards	90,339	92,208
Capital loss carry forwards	4,235	5,007
Other	1,059	1,130
Total deferred tax assets	202,031	209,267
Less: valuation allowance	(198,499)	(207,108)
Net deferred tax assets	3,532	2,159
Deferred tax liabilities:
Fixed assets	2,620	1,536
Deferred revenue	434	525
Other	0	(57)
Total deferred tax liabilities	3,054	2,004
Net deferred tax assets	$ 478	$ 155

Contingencies	12 Months Ended
Contingencies	Dec. 28, 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 we 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, we removed the action to the United States District Court for the District of Oregon. At this stage of the proceedings, we do not have an estimate of the likelihood or the amount of any potential exposure to the Company; however, we believe that these claims are without merit and intend to vigorously defend the action. See “Litigation and unfavorable results of legal proceedings could adversely affect our financial condition and operating results” in “Risk Factors” in Item 1A of Part I of this Annual Report on Form 10-K. 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.

Long-Term Debt

12 Months Ended

Dec. 28, 2019

Debt Disclosure [Abstract]

Long-term Debt

Long-Term Debt

On May 17, 2019, we entered into a new credit agreement (the “Current Credit Agreement”) with Wells Fargo Bank, National Association, as administrative agent, and other lenders. The Current Credit Agreement provides for a five-year secured term loan facility in an aggregate principal amount of $175.0 million and a five-year secured revolving loan facility in an aggregate principal amount of up to $75.0 million, along with other components and options, such as a letter of credit, swing line, or expansion of the revolver, currently not in use, which are more fully described in the Current Credit Agreement.

We used the $175.0 million term loan proceeds and an initial $31.5 million revolving loan draw at closing to (i) repay the $204.4 million obligation outstanding under our previous credit agreement (the “Previous Credit Agreement”) with Jefferies Finance LLC, as administrative agent, and (ii) pay fees and expenses totaling $2.1 million incurred in connection with the Current Credit Agreement. The revolving loan may be used for working capital and general corporate purposes. With the repayment of our obligations under the Previous Credit Agreement, we wrote off the remaining unamortized balance of the related original issue discount and debt costs, which we recorded as a $2.2 million loss on refinancing in Other expense, net on our Consolidated Statements of Operations in the second quarter of fiscal 2019.

At our option, the term loan and the revolving loan (collectively, "long-term debt") accrue interest at a per annum rate based on either (i) the base rate plus a margin ranging from 0.25% to 1.00%, determined based on our total leverage ratio or (ii) the London Interbank Offered Rate ("LIBOR") for interest periods of 1, 2, 3 or 6 months plus a margin ranging from 1.25% to 2.00%, determined based on our total leverage ratio. The base rate is defined as the highest of (i) the federal funds rate, plus 0.50%, (ii) Wells Fargo Bank, National Association’s prime rate or (iii) the LIBOR rate for a 1-month interest period plus 1.00%. As of December 28, 2019, the effective interest rate on the term loan was 3.16%, and the revolving loan did not have an outstanding balance. We pay a commitment fee of 0.20% on the unused portion of the revolving loan.

The term loan is payable through a combination of (i) required quarterly installments of approximately $4.4 million, and (ii) any payments due upon certain issuances of additional indebtedness and certain asset dispositions, with any remaining outstanding principal amount due and payable on the maturity date of the term loan. The revolving loan is payable at our discretion, with any remaining outstanding principal amount due and payable on the maturity date of the revolving loan.

The Current Credit Agreement contains customary affirmative and negative covenants, including covenants limiting the ability of the Company to, among other things, incur debt, grant liens, undergo certain fundamental changes, make investments, make certain restricted payments, dispose of assets, enter into transactions with affiliates, and enter into burdensome agreements, in each case, subject to limitations and exceptions set forth in the Current Credit Agreement. We are also required to maintain compliance with a total leverage ratio and an interest coverage ratio, in each case, determined in accordance with the terms of the Current Credit Agreement.

We account for the original issue discount and the debt issuance costs as a reduction to the carrying value of our long-term debt on our Consolidated Balance Sheets. We amortize the discount and costs to Interest expense in our Consolidated Statements of Operations over the contractual term using the effective interest method. We determine the Current portion of long-term debt as the sum of the required quarterly installments to be made over the next twelve months, reduced by the original issue discount and the debt issuance costs to be amortized over the next twelve months.

The fair value of our long-term debt approximates the carrying value, which is reflected in our Consolidated Balance Sheets as follows:



(In thousands)	December 28, 2019			December 29, 2018
Principal amount	$	148,125		$	263,033
Unamortized original issue discount and debt costs	(1,579		)	(3,386		)
Less: Current portion of long-term debt	(21,474		)	(8,290		)
Long-term debt, net of current portion and unamortized debt issue costs	$	125,072		$	251,357

Interest expense related to our long-term debt was included in Interest expense on our Consolidated Statements of Operations as follows:



			Year Ended
(in thousands)	December 28, 2019		December 29, 2018		December 30, 2017
Contractual interest	$	10,278	$	18,600	$	16,503
Amortization of debt issuance costs and discount	1,659		2,230		1,982
Total Interest expense related to the long-term debt	$	11,937	$	20,830	$	18,485

Expected future principal payments are based on the schedule of required quarterly installments, adjusted for known voluntary payments. Our 53-week fiscal 2020 will result in five quarterly installments being paid during that fiscal year. As of December 28, 2019, expected future principal payments on our long-term debt were as follows:



Fiscal year	(in thousands)

2020	$	21,875
2021	17,500
2022	17,500
2023	17,500
2024	73,750
	$	148,125

Income Taxes - Domestic and Foreign Components of Loss before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Income Tax Disclosure [Abstract]
Domestic	$ 33,417	$ (8,274)	$ (17,341)
Foreign	11,648	(15,695)	(52,372)
Income (loss) before income taxes	$ 45,065	$ (23,969)	$ (69,713)

Property and Equipment - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Aug. 31, 2017	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Property, Plant and Equipment [Line Items]
Depreciation		$ 11,600	$ 13,400	$ 16,300
Proceeds from sale of building		0	0	7,895
Property and equipment, net		39,230	34,883
Accumulated depreciation and amortization		125,990	141,367
Gain on sale of building		0	0	$ 4,624
Restructuring
Property, Plant and Equipment [Line Items]
Depreciation		$ 400	$ 600
Shanghai, China \| Building
Property, Plant and Equipment [Line Items]
Proceeds from sale of building	$ 7,900
Property and equipment, net	3,600
Accumulated depreciation and amortization	1,400
Direct selling costs	1,100
Gain on sale of building	$ 4,600

Basis of Presentation and Significant Accounting Policies - Stock-Based Compensation (Details)	12 Months Ended
	Dec. 28, 2019 period
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual terms of options granted	10 years
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual terms of options granted	2 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual terms of options granted	3 years
Performance Shares \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage	0.00%
Performance Shares \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage	250.00%
President and Chief Executive Officer \| Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of consecutive trailing four-quarter periods for measurement	2

Stock-Based Compensation Plans (Tables)

12 Months Ended

Dec. 28, 2019

Share-based Payment Arrangement [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:



	Year Ended
(In thousands)	December 28, 2019		December 29, 2018		December 30, 2017
Cost of revenue	$	1,422	$	940	$	795
Research and development	5,640		4,357		5,245
Selling, general, and administrative	11,837		8,349		6,503
Total stock-based compensation	$	18,899	$	13,646	$	12,543

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

The following table summarizes the assumptions used in the valuation of stock option and ESPP compensation:



	Year Ended
	December 28, 2019	December 29, 2018	December 30, 2017
Employee and Director Stock Options *
Expected volatility	n/a	39.87% to 41.11%	40.96% to 48.01%
Risk-free interest rate	n/a	2.29% to 2.78%	1.99% to 2.09%
Expected term (years)	n/a	4.08 to 4.25	4.08 to 4.25
Employee Stock Purchase Plan **
Weighted average expected volatility	31.6%	36.4%	n/a
Weighted average risk-free interest rate	2.51%	1.61%	n/a
Expected term	6 months	6 months	n/a

* No stock options granted during fiscal 2019
** ESPP suspended during fiscal 2017 only

Schedule of Share-based Compensation, Stock Options, Activity

The following table summarizes our stock option activity and related information for the year ended December 28, 2019:



(Shares and aggregate intrinsic value in thousands)	Shares		Weighted average exercise price		Weighted average remaining contractual term (years)	Aggregate Intrinsic Value
Balance, December 29, 2018	6,616		$	5.94
Granted	—		—
Effect of vesting multiplier	36
Exercised	(2,715	)	5.73
Forfeited or expired	(605	)	5.72
Balance, December 28, 2019	3,332		$	6.16
Vested and expected to vest at December 28, 2019	3,332		$	6.16	4.50	$	43,553
Exercisable, December 28, 2019	1,721		$	6.00	3.95	$	22,758

The following table summarizes the activity for our stock options and RSUs with a market condition or performance condition:



(Shares in thousands)	Unvested		Vested		Total
Balance, December 29, 2018	909		—		909
Granted	584		—		584
Effect of vesting multiplier	260		—		260
Vested	(484	)	71		(413	)
Exercised	—		(71	)	(71	)
Canceled	(106	)	—		(106	)
Balance, December 28, 2019	1,163		—		1,163

Schedule of Nonvested Restricted Stock Units Activity

The following table summarizes our RSU activity for the year ended December 28, 2019:



(Shares in thousands)	Shares		Weighted average grant date fair value
Balance, December 29, 2018	4,412		$	7.53
Granted	2,445		16.23
Effect of vesting multiplier	216		—
Vested	(1,734	)	8.10
Forfeited or expired	(564	)	7.27
Balance, December 28, 2019	4,775		$	12.23

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

The following table summarizes the assumptions used in the valuation of stock options and RSUs with a market or performance condition:



	Year Ended
	December 28, 2019	December 29, 2018	December 30, 2017
Executive stock options with a market condition
Expected volatility	n/a	n/a	41%
Risk-free interest rate	n/a	n/a	1.9%
Expected term (years)	n/a	n/a	4.5
Executive RSUs with a market or performance condition
Expected volatility	40.15% to 41.10%	41.06% to 41.74%	n/a
Risk-free interest rate	1.66% to 2.55%	2.71% to 2.87%	n/a
Expected term (years)	3.00	3.00 to 3.16	n/a

Employee Benefit Plans (Details) - USD ($) $ in Millions	12 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Millions	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Retirement Benefits [Abstract]
Employer matching contribution to a 401(k) plan	$ 0.8	$ 0.6	$ 0.8
Cash incentive plan expense	$ 5.8	$ 5.9	$ 7.2

Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Earnings Per Share [Abstract]
Net income (loss)	$ 13,987	$ 13,539	$ 8,559	$ 7,408	$ (7,121)	$ 6,974	$ (20,223)	$ (5,952)	$ 43,493	$ (26,322)	$ (70,562)
Shares used in diluted Net (loss) income per share (in shares)									132,471	126,564	122,677
Dilutive effect of stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition (in shares)									4,803	0	0
Shares used in diluted Net (loss) income per share (in shares)									137,274	126,564	122,677
Basic Net income (loss) per share (in usd per share)	$ 0.10	$ 0.10	$ 0.06	$ 0.06	$ (0.05)	$ 0.05	$ (0.16)	$ (0.05)	$ 0.33	$ (0.21)	$ (0.58)
Diluted Net income (loss) per share (in usd per share)	$ 0.10	$ 0.10	$ 0.06	$ 0.05	$ (0.05)	$ 0.05	$ (0.16)	$ (0.05)	$ 0.32	$ (0.21)	$ (0.58)
Stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition excluded as they are antidilutive (in shares)									890	7,567	6,622

- 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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- 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.

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-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1337-109256

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=116634182&loc=SL114868664-224227

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=117326831&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=116637232&loc=SL114874131-224263

+ Details

- Definition

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

+ References + Details

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 28, 2019	Feb. 20, 2020	Jun. 29, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	LATTICE SEMICONDUCTOR CORP
Entity Central Index Key	0000855658
Document Type	10-K
Document Period End Date	Dec. 28, 2019
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-28
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		134,318,226
Entity Shell Company	false
Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Filer	No
Entity Public Float			$ 1,242,396,539

Restructuring (Tables)

12 Months Ended

Dec. 28, 2019

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Reserve by Type of Cost

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



(In thousands)	Severance & Related (1)			Lease Termination & Fixed Assets			Software Contracts & Engineering Tools (2)			Other (3)			Total
Balance at December 31, 2016	$	801		$	1,036		$	25		$	12		$	1,874
Restructuring charges	2,484			811			3,066			835			7,196
Costs paid or otherwise settled	(2,093		)	(977		)	(2,731		)	(822		)	(6,623		)
Balance at December 30, 2017	$	1,192		$	870		$	360		$	25		$	2,447
Restructuring charges	5,696			7,379			913			3,361			17,349
Costs paid or otherwise settled	(5,074		)	381			(1,055		)	(3,368		)	(9,116		)
Balance at December 29, 2018	$	1,814		$	8,630		$	218		$	18		$	10,680
Restructuring charges	625			2,716			—			1,323			4,664
Costs paid or otherwise settled	(2,279		)	(4,761		)	(218		)	(476		)	(7,734		)
Balance at December 28, 2019	$	160		$	6,585		$	—		$	865		$	7,610



(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
(3)	In fiscal 2018, "Other" activity included the abandonment of long lived assets related to the restructuring of our agreements with a privately-held investee. In fiscal 2019, "Other" activity included termination fees on the cancellation of certain contracts under the Q2 2019 Sales Plan

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Dec. 28, 2019
Retirement Benefits [Abstract]
Employee Benefit Plans	Employee Benefit Plans Qualified Investment Plan In 1990, we adopted a 401(k) tax-deferred savings plan, which provides all employees in the United States who meet certain eligibility requirements with an opportunity to accumulate funds for retirement. Participants may contribute up to the amount allowable as a deduction for federal income tax purposes. The plan does not allow investments in the Company's common stock. The plan allows for the Company to make discretionary matching contributions in cash. We recorded matching contributions of approximately $0.8 million, $0.6 million, and $0.8 million in fiscal years 2019, 2018, and 2017, respectively. Cash Incentive Plans For 2019, 2018, and 2017, the Board of Directors of the Company, upon the recommendation of the Compensation Committee, approved the Cash Incentive Plan (the “Cash Plans”) for the respective fiscal year. The chief executive officer, other executive officers, and other members of senior management, including vice presidents and director-level employees, together with all other employees of the Company not on the Company's sales incentive plan are eligible to participate in the Cash Plans. Under the Cash Plans, individual cash incentive payments for the eligible employees will be based both on Company financial performance, as measured by achievement of operating income (before incentive plan accruals) and revenue goals within specified ranges established by the Compensation Committee, and Company performance, as measured by the achievement of personal management objectives. The Compensation Committee determines the performance of the chief executive officer, the chief financial officer and other participants based on the achievement of the management objectives established by the Compensation Committee during the first quarter of the respective fiscal year. We recorded approximately $5.8 million, $5.9 million, and $7.2 million of expense under the Cash Plans in fiscal 2019, 2018, and 2017, respectively.

Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Current:
Federal	$ 499	$ 536	$ 508
State	45	38	30
Foreign	1,345	1,869	304
Current income tax (provision) benefit	1,889	2,443	842
Deferred:
Federal	0	0	0
State	0	0	0
Foreign	(317)	(90)	7
Deferred income tax (provision) benefit	(317)	(90)	7
Income tax expense	$ 1,572	$ 2,353	$ 849

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 43,493	$ (26,322)	$ (70,562)
Other comprehensive income (loss):
Unrealized gain (loss) related to marketable securities, net of tax	42	41	(73)
Reclassification adjustment for (gains) losses related to marketable securities included in Other expense, net of tax	(53)	(18)	252
Translation adjustment, net of tax	341	(1,271)	2,620
Change in actuarial valuation of defined benefit pension	(602)	369	(95)
Comprehensive income (loss)	$ 43,221	$ (27,201)	$ (67,858)

- Definition

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

+ References + Details

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
shares in Thousands, $ in Thousands

Total

Common stock

Additional Paid-in capital

Accumulated deficit

Accumulated other comprehensive loss

Beginning balances (in shares) at Dec. 31, 2016

121,645

Beginning balances at Dec. 31, 2016

$ 270,430

$ 1,216

$ 680,315

$ (406,945)

$ (4,156)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net income (loss)

(70,562)

Unrealized gain (loss) related to marketable securities, net of tax

(73)

Recognized gain (loss) on redemption of marketable securities, previously unrealized

252

Translation adjustments, net of tax

2,620

Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of shares withheld for employee taxes (in shares)

2,250

Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of shares withheld for employee taxes

2,818

$ 23

2,795

Stock-based compensation expense related to stock options, ESPP and RSUs

^[1]

12,658

Defined benefit pension, net of actuarial valuation adjustments

(95)

Ending balances (in shares) at Dec. 30, 2017

123,895

Ending balances at Dec. 30, 2017

217,693

$ 1,239

695,768

(477,862)

(1,452)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net income (loss)

(26,322)

Unrealized gain (loss) related to marketable securities, net of tax

Recognized gain (loss) on redemption of marketable securities, previously unrealized

(18)

Translation adjustments, net of tax

(1,271)

Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of shares withheld for employee taxes (in shares)

5,833

Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of shares withheld for employee taxes

26,918

$ 58

26,860

Stock-based compensation expense related to stock options, ESPP and RSUs

13,646

Defined benefit pension, net of actuarial valuation adjustments

$ 369

369

Ending balances (in shares) at Dec. 29, 2018

129,728

Ending balances at Dec. 29, 2018

$ 258,457

$ 1,297

736,274

(476,783)

(2,331)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net income (loss)

43,493

Unrealized gain (loss) related to marketable securities, net of tax

Recognized gain (loss) on redemption of marketable securities, previously unrealized

(53)

Translation adjustments, net of tax

341

Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of shares withheld for employee taxes (in shares)

4,155

Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs, net of shares withheld for employee taxes

7,082

$ 42

7,040

Stock-based compensation expense related to stock options, ESPP and RSUs

18,899

Defined benefit pension, net of actuarial valuation adjustments

$ (602)

(602)

Ending balances (in shares) at Dec. 28, 2019

133,883

Ending balances at Dec. 28, 2019

$ 327,659

$ 1,339

$ 762,213

$ (433,290)

$ (2,603)

[1]

In the third quarter of fiscal 2017, in relation to the sale of 100% of the equity of our Hyderabad, India subsidiary and certain assets related to our SimplayLabs testing and certification business, certain stock compensation was accelerated due to a change of control agreement. As a result of this acceleration,the equity effect of stock compensation shown above includes approximately $0.1 million that was charged to restructuring expense as part of the June2017 Plan (see "Note 7 - Restructuring").

Basis of Presentation and Significant Accounting Policies - Property and Equipment (Details)	12 Months Ended
	Dec. 28, 2019
Equipment and software \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Equipment and software \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	5 years
Tools, Dies and Molds \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	1 year
Tools, Dies and Molds \| 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

Basis of Presentation and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 28, 2019

Accounting Policies [Abstract]

Schedules of Revenue Concentration of Risk

Revenue attributable to distributors as a percentage of total revenue is presented in the following table:



	Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
Weikeng Group	30	%	25	%	27	%
Arrow Electronics Inc.	25		29		24
All others	27		29		26
Revenue attributable to distributors*	82	%	83	%	77	%



*	During the first quarter of 2018, we updated our channel categories to group all forms of distribution into a single channel. Prior periods have been reclassified to match the current period presentation.

Intangible Assets (Tables)

12 Months Ended

Dec. 28, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

The following tables summarize the details of our Intangible assets, net as of December 28, 2019 and December 29, 2018:



	December 28, 2019
(In thousands)	Weighted Average Amortization Period (in years)	Gross		Accumulated Amortization			Intangible assets, net
Developed technology	5.0	$	110,987	$	(105,594	)	$	5,393
Customer relationships	5.8	22,934		(21,400		)	1,534
Licensed technology	5.0	459		(409		)	50
Total identified intangible assets		$	134,380	$	(127,403	)	$	6,977



	December 29, 2018
(In thousands)	Weighted Average Amortization Period (in years)	Gross		Accumulated Amortization			Intangible assets, net
Developed technology	5.0	$	110,987	$	(94,389	)	$	16,598
Customer relationships	5.8	22,934		(19,048		)	3,886
Licensed technology	5.0	1,194		(353		)	841
Total identified intangible assets		$	135,115	$	(113,790	)	$	21,325

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:



	Year Ended
(In thousands)	December 28, 2019		December 29, 2018		December 30, 2017
Research and development	$	55	$	277	$	569
Amortization of acquired intangible assets	13,558		17,690		31,340
	$	13,613	$	17,967	$	31,909

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

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



(In thousands)	Amount
2020	$	4,500
2021	2,239
2022	238
Total	$	6,977

Intangible Assets

12 Months Ended

Dec. 28, 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." Additionally, during the fiscal years presented, we licensed additional third-party technology. We do not believe there is any significant residual value associated with these intangible assets. We are amortizing the intangible assets using the straight-line method over their estimated useful lives.

The following tables summarize the details of our Intangible assets, net as of December 28, 2019 and December 29, 2018:



	December 28, 2019
(In thousands)	Weighted Average Amortization Period (in years)	Gross		Accumulated Amortization			Intangible assets, net
Developed technology	5.0	$	110,987	$	(105,594	)	$	5,393
Customer relationships	5.8	22,934		(21,400		)	1,534
Licensed technology	5.0	459		(409		)	50
Total identified intangible assets		$	134,380	$	(127,403	)	$	6,977



	December 29, 2018
(In thousands)	Weighted Average Amortization Period (in years)	Gross		Accumulated Amortization			Intangible assets, net
Developed technology	5.0	$	110,987	$	(94,389	)	$	16,598
Customer relationships	5.8	22,934		(19,048		)	3,886
Licensed technology	5.0	1,194		(353		)	841
Total identified intangible assets		$	135,115	$	(113,790	)	$	21,325

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



	Year Ended
(In thousands)	December 28, 2019		December 29, 2018		December 30, 2017
Research and development	$	55	$	277	$	569
Amortization of acquired intangible assets	13,558		17,690		31,340
	$	13,613	$	17,967	$	31,909

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



(In thousands)	Amount
2020	$	4,500
2021	2,239
2022	238
Total	$	6,977

No impairment charges relating to acquired intangible assets were recorded for fiscal 2019 as no indicators of impairment were present. During the third quarter of fiscal 2018, we concluded that a certain product line had limited future revenue potential due to a decline in customer demand for that product, and we recorded an impairment charge of $0.6 million to the intangible asset associated with that product. During the second quarter of 2018, we recorded an impairment charge relating to intangible assets of $11.9 million as a result of the strategic decision to discontinue our millimeter wave business. During fiscal 2017, we recorded a net impairment charge of $32.4 million related to certain of the developed technology intangible assets acquired in our acquisition of Silicon Image. These charges were recorded to Impairment of acquired intangible assets in the Consolidated Statements of Operations.

Net Income (Loss) Per Share (Tables)

12 Months Ended

Dec. 28, 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:



	Year Ended
(in thousands, except per share data)	December 28, 2019		December 29, 2018			December 30, 2017
Net income (loss)	$	43,493	$	(26,322	)	$	(70,562	)

Shares used in basic Net income (loss) per share	132,471		126,564			122,677
Dilutive effect of stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition	4,803		—			—
Shares used in diluted Net (loss) income per share	137,274		126,564			122,677

Basic Net income (loss) per share	$	0.33	$	(0.21	)	$	(0.58	)
Diluted Net income (loss) per share	$	0.32	$	(0.21	)	$	(0.58	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

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:



	Year Ended
(in thousands)	December 28, 2019	December 29, 2018	December 30, 2017
Stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition excluded as they are antidilutive	890	7,567	6,622

Leases

12 Months Ended

Dec. 28, 2019

Leases [Abstract]

Leases

All of our facilities are leased under operating leases, which expire at various times through 2027. We recorded fixed operating lease cost of $7.7 million for fiscal 2019. Rental expense under the previous guidance for operating leases was $8.3 million and $8.9 million for fiscal years 2018 and 2017, respectively.

Our leases have remaining lease terms of 1 to 8 years, some of which include options to extend for up to 5 years, and some of which include options to terminate within 1 year. For our operating leases, the weighted-average remaining lease term was 5.7 years and the weighted-average discount rate is 7.0% as of December 28, 2019.

Our adoption of Topic 842 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.

The following table presents the lease balance classifications within the Consolidated Balance Sheets and summarizes their activity during 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	747
Reduction in the carrying amount of right-of-use assets during the period	(5,797		)
Impairment of right-of-use asset on Portland, Oregon office (recorded in Restructuring charges)	(977		)
Adjustments for present value and foreign currency effects	(275		)
Balance as of December 28, 2019	$	23,591

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	747
Accretion of lease liabilities	1,918
Operating cash used by payments on lease liabilities	(8,425		)
Adjustments for present value, foreign currency, and restructuring liability effects	(389		)
Balance as of December 28, 2019	26,124
Less: Current portion of operating lease liabilities	(4,686		)
Long-term operating lease liabilities, net of current portion	$	21,438

Maturities of operating lease liabilities as of December 28, 2019 are as follows:



Fiscal year	(in thousands)

2020	$	6,445
2021	5,485
2022	4,468
2023	4,596
2024	4,716
Thereafter	6,705
Total lease payments	32,415
Less: amount representing interest	(6,156		)
Less: amount representing restructuring liability adjustments	(135		)
Total lease liabilities	$	26,124

Under the previous lease guidance, ASC 840, future minimum lease commitments at December 29, 2018 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. Lease obligations for facilities restructured prior to the adoption of Topic 842 totaled approximately $6.6 million at December 28, 2019 and continued to be recorded in Other long-term liabilities on our Consolidated Balance Sheets.

Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 28, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (Unaudited)

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



	2019									2018
(In thousands, except per share data)	Q4			Q3		Q2		Q1		Q4			Q3		Q2			Q1
Revenue	$	100,237		$	103,469	$	102,296	$	98,091	$	95,977		$	101,484	$	102,715		$	98,623
Gross margin	59,293			61,439		60,038		57,652		54,306			58,364		50,248			56,521
Restructuring charges	(55		)	252		3,126		1,341		11,854			90		4,376			1,029
Net income (loss)	$	13,987		$	13,539	$	8,559	$	7,408	$	(7,121	)	$	6,974	$	(20,223	)	$	(5,952	)

Net income (loss) per share - basic	$	0.10		$	0.10	$	0.06	$	0.06	$	(0.05	)	$	0.05	$	(0.16	)	$	(0.05	)
Net income (loss) per share - diluted	$	0.10		$	0.10	$	0.06	$	0.05	$	(0.05	)	$	0.05	$	(0.16	)	$	(0.05	)

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Current assets:
Cash and cash equivalents	$ 118,081	$ 119,051
Short-term marketable securities	0	9,624
Accounts receivable, net of allowance for doubtful accounts	64,917	60,890
Inventories	54,980	67,096
Prepaid expenses and other current assets	24,452	27,762
Total current assets	262,430	284,423
Property and equipment, net	39,230	34,883
Operating lease right-of-use assets	23,591	0
Intangible assets, net	6,977	21,325
Goodwill	267,514	267,514
Deferred income taxes	478	215
Other long-term assets	11,796	15,327
Total assets	612,016	623,687
Current liabilities:
Accounts payable and accrued expenses (includes restructuring)	60,255	51,763
Accrued payroll obligations	13,404	9,365
Current portion of long-term debt	21,474	8,290
Current portion of operating lease liabilities	4,686
Total current liabilities	99,819	69,418
Long-term debt, net of current portion	125,072	251,357
Long-term operating lease liabilities, net of current portion	21,438
Other long-term liabilities	38,028	44,455
Total liabilities	284,357	365,230
Commitments and contingencies (Notes 8 and 13)
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; 133,883,000 shares issued and outstanding as of December 28, 2019 and 129,728,000 shares issued and outstanding as of December 29, 2018	1,339	1,297
Additional paid-in capital	762,213	736,274
Accumulated deficit	(433,290)	(476,783)
Accumulated other comprehensive loss	(2,603)	(2,331)
Total stockholders' equity	327,659	258,457
Total liabilities and stockholders' equity	$ 612,016	$ 623,687

Long-Term Debt - Future Principal Payments (Details) $ in Thousands	Dec. 28, 2019 USD ($)
Debt Disclosure [Abstract]
2020	$ 21,875
2021	17,500
2022	17,500
2023	17,500
2024	73,750
Total	$ 148,125

Stock-Based Compensation Plans - Summary of Stock Options with Market Condition Activity (Details) shares in Thousands	12 Months Ended
	Dec. 28, 2019 shares
Unvested
Granted, Shares	0
Effect of vesting multiplier, Shares	36
Vested
Beginning balance, Shares	6,616
Exercised, Shares	(2,715)
Ending balance, Shares	3,332
Total
Granted, Shares	0
Effect of vesting multiplier, Shares	36
Exercised, Shares	(2,715)
Ending balance, shares	3,332
Performance Shares
Unvested
Beginning balance, Shares	909
Granted, Shares	584
Effect of vesting multiplier, Shares	260
Unvested, Shares	(484)
Canceled, Shares	(106)
Ending balance, Shares	1,163
Vested
Beginning balance, Shares	0
Vested, Shares	413
Exercised, Shares	(71)
Canceled, Shares	0
Ending balance, Shares	0
Total
Beginning balance, shares	909
Granted, Shares	584
Effect of vesting multiplier, Shares	260
Vested, Shares	(413)
Exercised, Shares	(71)
Canceled, Shares	(106)
Ending balance, shares	1,163

Stock-Based Compensation Plans - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 18,899	$ 13,646	$ 12,543
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	1,422	940	795
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	5,640	4,357	5,245
Selling, general, and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 11,837	$ 8,349	$ 6,503

Income Taxes

12 Months Ended

Dec. 28, 2019

Income Tax Disclosure [Abstract]

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



	Year Ended
(In thousands)	December 28, 2019		December 29, 2018			December 30, 2017
Domestic	$	33,417	$	(8,274	)	$	(17,341	)
Foreign	11,648		(15,695		)	(52,372		)
Income (loss) before taxes	$	45,065	$	(23,969	)	$	(69,713	)

The components of the Income tax expense are as follows:



	Year Ended
(In thousands)	December 28, 2019			December 29, 2018			December 30, 2017
Current:
Federal	$	499		$	536		$	508
State	45			38			30
Foreign	1,345			1,869			304
	1,889			2,443			842
Deferred:
Federal	—			—			—
State	—			—			—
Foreign	(317		)	(90		)	7
	(317		)	(90		)	7
Income tax expense	$	1,572		$	2,353		$	849

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



	Year Ended
	December 28, 2019	December 29, 2018	December 30, 2017
	%	%	%
Statutory federal rate	21	(21)	(35)
Adjustments for tax effects of:
State taxes, net	3	(6)	(7)
Research and development credits	3	(5)	(1)
Stock compensation	(11)	8	3
Foreign rate differential	(2)	20	28
Foreign dividends	—	—	1
Foreign withholding taxes	3	5	—
Other permanent	6	2	—
Other deferred tax asset adjustment	—	13	—
Valuation allowance	(19)	(11)	(73)
Change in uncertain tax benefit accrual	—	2	1
Stock compensation (ASU 2016-09) adoption	—	—	(8)
Tax rate change	—	—	93
Other	—	3	(1)
Effective income tax rate	4	10	1

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

Through December 28, 2019, we continued to evaluate the valuation allowance position in the United States and concluded that we should maintain a full 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 taxable profits sufficient to offset expenditures in future periods within the United States. It is reasonably possible that during the next twelve months, we will establish a sustained level of profitability in the U.S. As a result, we may reverse a significant portion of the valuation allowance recorded against our U.S. deferred tax assets. The reversal would result in an income tax benefit for the quarterly and annual fiscal period in which we release the valuation allowance.

We will continue to evaluate both positive and negative evidence in future periods to determine if we will realize the net deferred tax assets. We don't 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. The net decrease in the total valuation allowance affecting the effective tax rate for the year ended December 28, 2019 was approximately $8.6 million, mainly attributable to the write down of intangible assets which had no tax basis.

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



(In thousands)	December 28, 2019			December 29, 2018
Deferred tax assets:
Accrued expenses and reserves	$	4,137		$	3,714
Inventory	—			2
Deferred Revenue	—			—
Stock-based and deferred compensation	2,812			2,660
Interest expense disallowance	—			1,283
Intangible assets	12,294			14,649
Fixed assets	256			281
Net operating loss carry forwards	86,899			88,333
Tax credit carry forwards	90,339			92,208
Capital loss carry forwards	4,235			5,007
Other	1,059			1,130
Total deferred tax assets	202,031			209,267
Less: valuation allowance	(198,499		)	(207,108		)
Net deferred tax assets	3,532			2,159
Deferred tax liabilities:
Fixed assets	2,620			1,536
Deferred revenue	434			525
Other	—			(57		)
Total deferred tax liabilities	3,054			2,004
Net deferred tax assets	$	478		$	155

The following table displays the activity related to changes in our valuation allowance for deferred tax assets:



Fiscal Years Ended (In thousands)	Balance at beginning of period		Charged (Credit) to costs and expenses			Charged (credit) to other accounts			Balance at end of period
Valuation allowance for deferred tax assets
December 28, 2019	$	207,108	$	(8,609	)	$	—		$	198,499
December 29, 2018	$	209,691	$	(2,583	)	$	—		$	207,108
December 30, 2017	$	260,687	$	(50,960	)	$	(36	)	$	209,691

At December 28, 2019, we had U.S. federal net operating loss ("NOL") carryforwards (pretax) of approximately $360.5 million that expire at various dates between 2020 and 2037. We had state NOL carryforwards (pretax) of approximately $141.3 million that expire at various dates from 2020 through 2039. We also had federal and state credit carryforwards of $50.1 million and $62.6 million, respectively. Of the $62.6 million state credit carryforwards, $61.9 million do not expire. The federal and remaining state credits expire at various dates from 2020 through 2039.

Future utilization of federal and state net operating losses and tax credit carry forwards may be limited if cumulative changes to ownership exceed 50% within any three-year period. If there is a significant change in ownership, future tax attribute utilization may be restricted and NOL carryforwards and/or R&D credits will be reduced to reflect the limitation.

Foreign earnings may be subject to withholding taxes in local jurisdictions if they are distributed and repatriated in the United States. At December 28, 2019, U.S. income taxes and foreign withholding taxes were not provided for on a cumulative total of approximately $2.9 million of the undistributed earnings of our Chinese subsidiary. We intend to reinvest these earnings indefinitely.

At December 28, 2019, our unrecognized tax benefits associated with uncertain tax positions were $41.9 million, of which $39.9 million, if recognized, would affect the effective tax rate, subject to valuation allowance. As of December 28, 2019, interest and penalties associated with unrecognized tax benefits were $9.0 million, which are not reflected in the table below.

The following table summarizes the changes to unrecognized tax benefits for the fiscal years presented:



(In thousands)	Amount
Balance at December 31, 2016	$	47,623
Additions based on tax positions related to the current year	471
Additions based on tax positions of prior years	11
Reduction for tax positions of prior years	(1,226		)
Reduction as a result of lapse of applicable statute of limitations	(2,047		)
Balance at December 30, 2017	44,832
Additions based on tax positions related to the current year	389
Additions based on tax positions of prior years	19
Reductions for tax positions of prior years	(5		)
Reduction as a result of lapse of applicable statute of limitations	(1,235		)
Balance at December 29, 2018	44,000
Additions based on tax positions related to the current year	238
Additions based on tax positions of prior years	334
Reductions for tax positions of prior years	(213		)
Reduction as a result of lapse of applicable statute of limitations	(2,432		)
Balance at December 28, 2019	$	41,927

Our liability for uncertain tax positions (including penalties and interest) was $24.6 million and $26.3 million at December 28, 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 $24.8 million is netted against deferred tax assets.

At December 28, 2019, it is reasonably possible that $2.4 million of unrecognized tax benefits and $0.5 million of associated interest and penalties could be recognized during the next twelve months. The $2.9 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.

The years that remain subject to examination are 2016 for federal income taxes, 2015 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 Philippines 2016 and 2017 and Israeli 2013 through 2017 income tax returns are currently under examination. We are not under examination in any other jurisdiction.

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 - Activity Related to Restructuring Plans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Restructuring Reserve [Roll Forward]
Beginning Balance	$ 10,680	$ 2,447	$ 1,874
Restructuring charges	4,664	17,349	7,196
Costs paid or otherwise settled	(7,734)	(9,116)	(6,623)
Ending Balance	7,610	10,680	2,447
Severance & Related
Restructuring Reserve [Roll Forward]
Beginning Balance	1,814	1,192	801
Restructuring charges	625	5,696	2,484
Costs paid or otherwise settled	(2,279)	(5,074)	(2,093)
Ending Balance	160	1,814	1,192
Lease Termination & Fixed Assets
Restructuring Reserve [Roll Forward]
Beginning Balance	8,630	870	1,036
Restructuring charges	2,716	7,379	811
Costs paid or otherwise settled	(4,761)	381	(977)
Ending Balance	6,585	8,630	870
Software Contracts & Engineering Tools
Restructuring Reserve [Roll Forward]
Beginning Balance	218	360	25
Restructuring charges	0	913	3,066
Costs paid or otherwise settled	(218)	(1,055)	(2,731)
Ending Balance	0	218	360
Other
Restructuring Reserve [Roll Forward]
Beginning Balance	18	25	12
Restructuring charges	1,323	3,361	835
Costs paid or otherwise settled	(476)	(3,368)	(822)
Ending Balance	$ 865	$ 18	$ 25

Balance Sheet Components (Tables)

12 Months Ended

Dec. 28, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Short-Term Marketable Securities

The following table summarizes the maturities of our formerly-held Short-term marketable securities at fair value.



(In thousands)	December 28, 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

Schedule of Accounts Receivable



(In thousands)	December 28, 2019			December 29, 2018
Accounts receivable	$	65,023		$	61,087
Less: Allowance for doubtful accounts	(106		)	(197		)
Accounts receivable, net of allowance for doubtful accounts	$	64,917		$	60,890

Schedule of Allowance for Doubtful Accounts

The following table displays the activity related to changes in our allowance for doubtful accounts:



Fiscal Years Ended (In thousands)	Balance at beginning of period		Charged (Credit) to costs and expenses			Charged (credit) to other accounts			Settlements & write-offs net of recoveries			Balance at end of period
Allowance for doubtful accounts
December 28, 2019	$	197	$	(30	)	$	(12	)	$	(49	)	$	106
December 29, 2018	$	9,371	$	1		$	73		$	(9,248	)	$	197
December 30, 2017	$	9,299	$	3		$	38		$	31		$	9,371

The following table displays the activity related to changes in our valuation allowance for deferred tax assets:



Fiscal Years Ended (In thousands)	Balance at beginning of period		Charged (Credit) to costs and expenses			Charged (credit) to other accounts			Balance at end of period
Valuation allowance for deferred tax assets
December 28, 2019	$	207,108	$	(8,609	)	$	—		$	198,499
December 29, 2018	$	209,691	$	(2,583	)	$	—		$	207,108
December 30, 2017	$	260,687	$	(50,960	)	$	(36	)	$	209,691

Schedule of Inventories



(In thousands)	December 28, 2019		December 29, 2018
Work in progress	$	39,855	$	47,224
Finished goods	15,125		19,872
Total inventories	$	54,980	$	67,096

Schedule of Accounts Payable and Accrued Expenses

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



(In thousands)	December 28, 2019		December 29, 2018
Trade accounts payable	$	44,350	$	31,880
Liability for non-cancelable contracts	6,964		6,078
Restructuring	3,060		4,220
Other accrued expenses	5,881		9,585
Total accounts payable and accrued expenses	$	60,255	$	51,763

Basis of Presentation and Significant Accounting Policies

12 Months Ended

Dec. 28, 2019

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies

Basis of Presentation and Use of Estimates

Fiscal Reporting Periods

Concentrations of Risk

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

In the periods covered by this report, no end customer accounted for more than 10% of total revenue.



	Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
Weikeng Group	30	%	25	%	27	%
Arrow Electronics Inc.	25		29		24
All others	27		29		26
Revenue attributable to distributors*	82	%	83	%	77	%



*	During the first quarter of 2018, we updated our channel categories to group all forms of distribution into a single channel. Prior periods have been reclassified to match the current period presentation.

Cash and Cash Equivalents

Foreign Exchange and Translation of Foreign Currencies

Revenue Recognition

Inventories and Cost of Revenue

Property and Equipment

Impairment of Long-Lived Assets

Valuation of Goodwill

Leases

Research and Development

Restructuring Charges

Accounting for Income Taxes

Stock-Based Compensation

Segment Information

New Accounting Pronouncements

Revenue from Contracts with Customers

12 Months Ended

Dec. 28, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Disaggregation of Revenue

The following tables provide disaggregation of revenue from contracts with customers by major class of revenue, revenue by channel, 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	Year Ended *
	(In thousands)	December 28, 2019			December 29, 2018			December 30, 2017
	Product	$	382,548	95%	$	380,468	95%	$	356,502	92%
	Licensing and services	21,545		5%	18,331		5%	29,459		8%
	Total revenue	$	404,093	100%	$	398,799	100%	$	385,961	100%

	Revenue by Channel	Year Ended *
	(In thousands)	December 28, 2019			December 29, 2018			December 30, 2017
	Product revenue - Distributors	$	331,941	82%	$	330,719	83%	$	297,736	77%
	Product revenue - Direct	50,607		13%	49,749		12%	58,766		15%
	Licensing and services revenue	21,545		5%	18,331		5%	29,459		8%
	Total revenue	$	404,093	100%	$	398,799	100%	$	385,961	100%

	Revenue by Geographical Market	Year Ended *
	(In thousands)	December 28, 2019			December 29, 2018			December 30, 2017
	Asia	$	298,765	74%	$	298,119	75%	$	277,638	72%
	Europe	47,392		12%	45,546		11%	44,547		12%
	Americas	57,936		14%	55,134		14%	63,776		16%
	Total revenue	$	404,093	100%	$	398,799	100%	$	385,961	100%

*	Amounts in periods prior to fiscal 2018 have not been adjusted under the modified retrospective method of adopting ASC 606 and, therefore, are presented under GAAP in effect during that period.

Contract balances

Our 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. The balance results primarily from the amount of estimated revenue related to HDMI that we have recognized to date, but which has not yet been collected by the agent. Contract assets are recorded in Prepaid expenses and other current assets in our Consolidated Balance Sheets. The following table summarizes activity during the periods presented:



(In thousands)
Balance as of December 31, 2017	$	7,515
Revenues recorded during the period	11,618
Transferred to accounts receivable or collected	(9,990		)
Contract assets as of December 29, 2018	9,143
Revenues recorded during the period	17,356
Transferred to Accounts receivable or collected	(20,930		)
Contract assets as of December 28, 2019	$	5,569

Contract liabilities are included in Accounts payable and accrued expenses on our Consolidated Balance Sheets. The following table summarizes activity during the periods presented:



(In thousands)
Contract liabilities as of December 31, 2017	$	—
Accruals for estimated future stock rotation and scrap returns	4,281
Less: Release of accruals for recognized stock rotation and scrap returns	(2,667		)
Contract liabilities as of December 29, 2018	1,614
Accruals for estimated future stock rotation and scrap returns	5,763
Less: Release of accruals for recognized stock rotation and scrap returns	(5,064		)
Contract liabilities as of December 28, 2019	$	2,313

The impact to revenue in fiscal years 2019 and 2018 from the release of accruals for recognized stock rotation and scrap returns was offset by the processing of return merchandise authorizations totaling $5.0 million and $3.7 million, respectively, yielding a net revenue increase of approximately $0.1 million and a net revenue decrease of approximately $1.0 million, respectively.

Impact of Adoption of ASC 606

We adopted ASC 606 effective on December 31, 2017, the first day of our 2018 fiscal year, using the modified retrospective method. ASC 606 requires us to disclose the effect of adoption on each financial statement line item in the year of adoption as compared to the revenue recognition accounting standard that was in effect previously, and an explanation of the reasons for significant changes. The significant impacts of the new standard were to accelerate the recognition of revenues on both sales to certain distributors and certain licensing activities. As a result of adopting this standard, we recorded a cumulative effect adjustment of $27.4 million as a reduction to Accumulated deficit on December 31, 2017, resulting primarily from a net $20.2 million of previously deferred distributor revenues and costs and $6.6 million of previously unrecognized licensing revenues. The effect of adoption on each financial statement line item is detailed in the tables below:



Condensed Consolidated Statement of Operations
	Year ended December 29, 2018
(In thousands, except per share data)	As reported under new standard			Adjustments			Pro forma as if previous standard was in effect
Product revenue	$	380,468		$	(14,098	)	$	366,370
Licensing and services revenue	18,331			(1,478		)	16,853
Cost of product revenue	179,101			(6,399		)	172,702
Net loss	$	(26,322	)	$	(9,177	)	$	(35,499	)

Net loss per share, basic and diluted	$	(0.21	)	$	(0.07	)	$	(0.28	)



Condensed Consolidated Balance Sheets
	As of December 29, 2018
(In thousands)	As reported under new standard			Adjustments			Pro forma as if previous standard was in effect
Accounts receivable, net of allowance for doubtful accounts	$	60,890		$	6,600		$	67,490
Inventories	67,096			78			67,174
Prepaid expenses and other current assets	27,762			(9,775		)	17,987
Total assets	$	623,687		$	(3,097	)	$	620,590

Accounts payable and accrued expenses (includes restructuring)	$	51,763		$	(1,156	)	$	50,607
Deferred income and allowances on sales to distributors	—			34,637			34,637
Accumulated deficit	(476,783		)	(36,578		)	(513,361		)
Total liabilities and stockholders' equity	$	623,687		$	(3,097	)	$	620,590



Condensed Consolidated Statement of Cash Flows
	Year ended December 29, 2018
(In thousands)	As reported under new standard			Adjustments			Pro forma as if previous standard was in effect
Cash flows from operating activities:
Net loss	$	(26,322	)	$	(9,177	)	$	(35,499	)
Accounts receivable, net	(3,978		)	(8,408		)	(12,386		)
Inventories	13,177			(448		)	12,729
Prepaid expenses and other assets	(11,667		)	2,260			(9,407		)
Accounts payable and accrued expenses (includes restructuring)	13,325			(1,614		)	11,711
Deferred income and allowances on sales to distributors	$	—		$	17,387		$	17,387

Restructuring - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 30, 2019	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017	Jun. 30, 2017
Restructuring Cost and Reserve [Line Items]
Impairment of operating lease right-of-use asset (recorded in Restructuring charges)		$ 4,664	$ 17,349	$ 7,196
Q2 2019 Sales Plan
Restructuring Cost and Reserve [Line Items]
Impairment of operating lease right-of-use asset (recorded in Restructuring charges)		2,000
December 2018 Plan
Restructuring Cost and Reserve [Line Items]
Impairment of operating lease right-of-use asset (recorded in Restructuring charges)		0	4,800
June 2018 Plan
Restructuring Cost and Reserve [Line Items]
Impairment of operating lease right-of-use asset (recorded in Restructuring charges)		(100)	4,200
Restructuring cost incurred to date		4,100
June 2017 Plan
Restructuring Cost and Reserve [Line Items]
Impairment of operating lease right-of-use asset (recorded in Restructuring charges)	$ 1,000	2,700	8,400	8,000
Restructuring cost incurred to date		19,100
Minimum \| June 2017 Plan
Restructuring Cost and Reserve [Line Items]
Total expected restructuring cost		20,000
Maximum \| June 2017 Plan
Restructuring Cost and Reserve [Line Items]
Total expected restructuring cost		21,500
Lease Termination & Fixed Assets
Restructuring Cost and Reserve [Line Items]
Impairment of operating lease right-of-use asset (recorded in Restructuring charges)		$ 2,716	$ 7,379	$ 811
Lease Termination & Fixed Assets \| June 2017 Plan
Restructuring Cost and Reserve [Line Items]
Impairment of operating lease right-of-use asset (recorded in Restructuring charges)	$ 2,700
Percentage of facility vacated				100.00%
Hyderabad \| Hyderabad \| Disposed of by Sale
Restructuring Cost and Reserve [Line Items]
Ownership percentage					100.00%

Revenue from Contracts with Customers - Schedule of New Accounting Standard Impact on Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Condensed Consolidated Statement of Operations
Revenue	$ 100,237	$ 103,469	$ 102,296	$ 98,091	$ 95,977	$ 101,484	$ 102,715	$ 98,623	$ 404,093	$ 398,799	$ 385,961
Net loss	13,987	13,539	8,559	7,408	(7,121)	6,974	(20,223)	(5,952)	43,493	(26,322)	(70,562)
Cost of revenue									165,671	$ 179,360	169,382
Net loss per share, basic and diluted (in dollars per share)										$ (0.21)
Condensed Consolidated Balance Sheets
Accounts receivable, net of allowance for doubtful accounts	64,917				60,890				64,917	$ 60,890
Inventories	54,980				67,096				54,980	67,096
Prepaid expenses and other current assets	24,452				27,762				24,452	27,762
Total assets	612,016				623,687				612,016	623,687
Accounts payable and accrued expenses (includes restructuring)	60,255				51,763				60,255	51,763
Deferred income and allowances on sales to distributors					0					0
Accumulated deficit	(433,290)				(476,783)				(433,290)	(476,783)
Total liabilities and stockholders' equity	612,016				623,687				612,016	623,687
Condensed Consolidated Statement of Cash Flows
Net income (loss)	$ 13,987	$ 13,539	$ 8,559	$ 7,408	(7,121)	$ 6,974	$ (20,223)	$ (5,952)	43,493	(26,322)	(70,562)
Accounts receivable, net									(4,027)	(3,978)	44,613
Inventories									12,116	13,177	(902)
Prepaid expenses and other assets									3,740	(11,667)	889
Accounts payable and accrued expenses (includes restructuring)									9,261	13,325	(23,588)
Deferred income and allowances on sales to distributors										0
Adjustments \| Accounting Standards Update 2014-09
Condensed Consolidated Statement of Operations
Net loss										$ (9,177)
Net loss per share, basic and diluted (in dollars per share)										$ (0.07)
Condensed Consolidated Balance Sheets
Accounts receivable, net of allowance for doubtful accounts					6,600					$ 6,600
Inventories					78					78
Prepaid expenses and other current assets					(9,775)					(9,775)
Total assets					(3,097)					(3,097)
Accounts payable and accrued expenses (includes restructuring)					(1,156)					(1,156)
Deferred income and allowances on sales to distributors					34,637					34,637
Accumulated deficit					(36,578)					(36,578)
Total liabilities and stockholders' equity					(3,097)					(3,097)
Condensed Consolidated Statement of Cash Flows
Net income (loss)										(9,177)
Accounts receivable, net										(8,408)
Inventories										(448)
Prepaid expenses and other assets										2,260
Accounts payable and accrued expenses (includes restructuring)										(1,614)
Deferred income and allowances on sales to distributors										17,387
Pro forma as if previous standard was in effect
Condensed Consolidated Statement of Operations
Net loss										$ (35,499)
Net loss per share, basic and diluted (in dollars per share)										$ (0.28)
Condensed Consolidated Balance Sheets
Accounts receivable, net of allowance for doubtful accounts					67,490					$ 67,490
Inventories					67,174					67,174
Prepaid expenses and other current assets					17,987					17,987
Total assets					620,590					620,590
Accounts payable and accrued expenses (includes restructuring)					50,607					50,607
Deferred income and allowances on sales to distributors					34,637					34,637
Accumulated deficit					(513,361)					(513,361)
Total liabilities and stockholders' equity					$ 620,590					620,590
Condensed Consolidated Statement of Cash Flows
Net income (loss)										(35,499)
Accounts receivable, net										(12,386)
Inventories										12,729
Prepaid expenses and other assets										(9,407)
Accounts payable and accrued expenses (includes restructuring)										11,711
Deferred income and allowances on sales to distributors										17,387
Product
Condensed Consolidated Statement of Operations
Revenue									382,548	380,468	356,502
Cost of revenue										179,101
Condensed Consolidated Statement of Cash Flows
Deferred income and allowances on sales to distributors									0	0	(15,007)
Product \| Adjustments \| Accounting Standards Update 2014-09
Condensed Consolidated Statement of Operations
Revenue										(14,098)
Cost of revenue										(6,399)
Product \| Pro forma as if previous standard was in effect
Condensed Consolidated Statement of Operations
Revenue										366,370
Cost of revenue										172,702
Licensing and services
Condensed Consolidated Statement of Operations
Revenue									21,545	18,331	29,459
Condensed Consolidated Statement of Cash Flows
Deferred income and allowances on sales to distributors									$ 0	(68)	$ (495)
Licensing and services \| Adjustments \| Accounting Standards Update 2014-09
Condensed Consolidated Statement of Operations
Revenue										(1,478)
Licensing and services \| Pro forma as if previous standard was in effect
Condensed Consolidated Statement of Operations
Revenue										$ 16,853

Property and Equipment (Tables)

12 Months Ended

Dec. 28, 2019

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment



(In thousands)	December 28, 2019			December 29, 2018
Production equipment and software	$	150,591		$	160,979
Leasehold improvements	12,517			12,648
Office furniture and equipment	2,112			2,623
	165,220			176,250
Accumulated depreciation and amortization	(125,990		)	(141,367		)
	$	39,230		$	34,883

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



(In thousands)	December 28, 2019		December 29, 2018
United States	$	32,313	$	27,353
China	1,683		2,360
Philippines	2,683		3,319
Taiwan	1,885		949
Japan	283		324
Other	383		578
Total foreign property and equipment, net	6,917		7,530
Total property and equipment, net	$	39,230	$	34,883

Long-Term Debt - Interest Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Debt Disclosure [Abstract]
Contractual interest	$ 10,278	$ 18,600	$ 16,503
Amortization of debt issuance costs and discount	1,659	2,230	1,982
Total Interest expense related to the long-term debt	$ 11,937	$ 20,830	$ 18,485

Revenue from Contracts with Customers (Tables)

12 Months Ended

Dec. 28, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue



	Major Class of Revenue	Year Ended *
	(In thousands)	December 28, 2019			December 29, 2018			December 30, 2017
	Product	$	382,548	95%	$	380,468	95%	$	356,502	92%
	Licensing and services	21,545		5%	18,331		5%	29,459		8%
	Total revenue	$	404,093	100%	$	398,799	100%	$	385,961	100%

	Revenue by Channel	Year Ended *
	(In thousands)	December 28, 2019			December 29, 2018			December 30, 2017
	Product revenue - Distributors	$	331,941	82%	$	330,719	83%	$	297,736	77%
	Product revenue - Direct	50,607		13%	49,749		12%	58,766		15%
	Licensing and services revenue	21,545		5%	18,331		5%	29,459		8%
	Total revenue	$	404,093	100%	$	398,799	100%	$	385,961	100%

	Revenue by Geographical Market	Year Ended *
	(In thousands)	December 28, 2019			December 29, 2018			December 30, 2017
	Asia	$	298,765	74%	$	298,119	75%	$	277,638	72%
	Europe	47,392		12%	45,546		11%	44,547		12%
	Americas	57,936		14%	55,134		14%	63,776		16%
	Total revenue	$	404,093	100%	$	398,799	100%	$	385,961	100%

*	Amounts in periods prior to fiscal 2018 have not been adjusted under the modified retrospective method of adopting ASC 606 and, therefore, are presented under GAAP in effect during that period.

Contracts with Customers

Contract assets are recorded in Prepaid expenses and other current assets in our Consolidated Balance Sheets. The following table summarizes activity during the periods presented:



(In thousands)
Balance as of December 31, 2017	$	7,515
Revenues recorded during the period	11,618
Transferred to accounts receivable or collected	(9,990		)
Contract assets as of December 29, 2018	9,143
Revenues recorded during the period	17,356
Transferred to Accounts receivable or collected	(20,930		)
Contract assets as of December 28, 2019	$	5,569

Contract liabilities are included in Accounts payable and accrued expenses on our Consolidated Balance Sheets. The following table summarizes activity during the periods presented:



(In thousands)
Contract liabilities as of December 31, 2017	$	—
Accruals for estimated future stock rotation and scrap returns	4,281
Less: Release of accruals for recognized stock rotation and scrap returns	(2,667		)
Contract liabilities as of December 29, 2018	1,614
Accruals for estimated future stock rotation and scrap returns	5,763
Less: Release of accruals for recognized stock rotation and scrap returns	(5,064		)
Contract liabilities as of December 28, 2019	$	2,313

Schedule of New Accounting Pronouncements

The effect of adoption on each financial statement line item is detailed in the tables below:



Condensed Consolidated Statement of Operations
	Year ended December 29, 2018
(In thousands, except per share data)	As reported under new standard			Adjustments			Pro forma as if previous standard was in effect
Product revenue	$	380,468		$	(14,098	)	$	366,370
Licensing and services revenue	18,331			(1,478		)	16,853
Cost of product revenue	179,101			(6,399		)	172,702
Net loss	$	(26,322	)	$	(9,177	)	$	(35,499	)

Net loss per share, basic and diluted	$	(0.21	)	$	(0.07	)	$	(0.28	)



Condensed Consolidated Balance Sheets
	As of December 29, 2018
(In thousands)	As reported under new standard			Adjustments			Pro forma as if previous standard was in effect
Accounts receivable, net of allowance for doubtful accounts	$	60,890		$	6,600		$	67,490
Inventories	67,096			78			67,174
Prepaid expenses and other current assets	27,762			(9,775		)	17,987
Total assets	$	623,687		$	(3,097	)	$	620,590

Accounts payable and accrued expenses (includes restructuring)	$	51,763		$	(1,156	)	$	50,607
Deferred income and allowances on sales to distributors	—			34,637			34,637
Accumulated deficit	(476,783		)	(36,578		)	(513,361		)
Total liabilities and stockholders' equity	$	623,687		$	(3,097	)	$	620,590



Condensed Consolidated Statement of Cash Flows
	Year ended December 29, 2018
(In thousands)	As reported under new standard			Adjustments			Pro forma as if previous standard was in effect
Cash flows from operating activities:
Net loss	$	(26,322	)	$	(9,177	)	$	(35,499	)
Accounts receivable, net	(3,978		)	(8,408		)	(12,386		)
Inventories	13,177			(448		)	12,729
Prepaid expenses and other assets	(11,667		)	2,260			(9,407		)
Accounts payable and accrued expenses (includes restructuring)	13,325			(1,614		)	11,711
Deferred income and allowances on sales to distributors	$	—		$	17,387		$	17,387

CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands	Dec. 28, 2019 USD ($)	Dec. 29, 2018 USD ($)	Dec. 30, 2017 USD ($)
Cash flows from operating activities:
Net income (loss)	$ 43,493	$ (26,322)	$ (70,562)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	33,056	39,261	57,861
Impairment of acquired intangible assets	0	12,486	32,431
Stock-based compensation expense	18,899	13,646	12,543
Reduction in the carrying amount of right-of-use assets	5,797	0	0
Loss on re-financing of long-term debt	2,235	0	0
Amortization of debt issuance costs and discount	1,659	2,230	1,982
Impairment of operating lease right-of-use asset (recorded in Restructuring charges)	977
Impairment of operating lease right-of-use asset (recorded in Restructuring charges)	4,664	17,349	7,196
Gain on sale of building	0	0	(4,624)
Loss on sale of assets and business units	0	0	1,496
Other non-cash adjustments	(374)	(79)	1,707
Changes in assets and liabilities:
Accounts receivable, net	(4,027)	(3,978)	44,613
Inventories	12,116	13,177	(902)
Prepaid expenses and other assets	3,740	(11,667)	889
Accounts payable and accrued expenses (includes restructuring)	9,261	13,325	(23,588)
Accrued payroll obligations	4,039	(1,051)	726
Operating lease liabilities, current and long-term portions	(6,896)
Income taxes payable	162	498	(556)
Deferred income and allowances on sales to distributors		0
Net cash provided by operating activities	124,137	51,458	38,514
Cash flows from investing activities:
Proceeds from sales of and maturities of short-term marketable securities	9,655	5,000	12,689
Purchases of marketable securities	0	(9,603)	(7,420)
Proceeds from sale of building	0	0	7,895
Cash paid for costs of sale of building	0	0	(1,004)
Capital expenditures	(15,590)	(8,384)	(12,855)
Proceeds from sale of assets and business units, net of cash sold	0	0	967
Repayment received on short-term loan to cost-method investee	0	0	2,000
Short-term loan to cost-method investee	0	0	(2,000)
Cash paid for software licenses	(9,601)	(8,123)	(8,532)
Net cash used in investing activities	(15,536)	(21,110)	(8,260)
Cash flows from financing activities:
Restricted stock unit tax withholdings	(10,084)	(2,370)	(3,267)
Proceeds from issuance of common stock	17,166	29,288	6,085
Proceeds from issuance of long-term debt	206,500	0	0
Original issue discount and debt issuance costs	(2,086)	0	0
Repayment of debt	(321,408)	(43,759)	(35,429)
Net cash used in financing activities	(109,912)	(16,841)	(32,611)
Effect of exchange rate change on cash	341	(1,271)	2,620
Net (decrease) increase in cash and cash equivalents	(970)	12,236	263
Beginning cash and cash equivalents	119,051	106,815	106,552
Ending cash and cash equivalents	118,081	119,051	106,815
Supplemental disclosure of cash flow information and non-cash investing and financing activities:
Interest paid	10,995	18,607	20,649
Operating lease payments	8,425
Income taxes paid, net of refunds	3,393	3,054	2,387
Accrued purchases of property and equipment	826	110	588
Operating lease right-of-use assets obtained in exchange for lease obligations	747
Note receivable resulting from sale of assets and business units	0	0	3,050
Product
Changes in assets and liabilities:
Deferred income and allowances on sales to distributors	0	0	(15,007)
Licensing and services
Changes in assets and liabilities:
Deferred income and allowances on sales to distributors	$ 0	$ (68)	$ (495)

Basis of Presentation and Significant Accounting Policies - Segment Information (Details)	12 Months Ended
	Dec. 28, 2019 segment
Accounting Policies [Abstract]
Number of operating segments	1

Leases (Tables)

12 Months Ended

Dec. 28, 2019

Leases [Abstract]

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 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	747
Reduction in the carrying amount of right-of-use assets during the period	(5,797		)
Impairment of right-of-use asset on Portland, Oregon office (recorded in Restructuring charges)	(977		)
Adjustments for present value and foreign currency effects	(275		)
Balance as of December 28, 2019	$	23,591

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	747
Accretion of lease liabilities	1,918
Operating cash used by payments on lease liabilities	(8,425		)
Adjustments for present value, foreign currency, and restructuring liability effects	(389		)
Balance as of December 28, 2019	26,124
Less: Current portion of operating lease liabilities	(4,686		)
Long-term operating lease liabilities, net of current portion	$	21,438

Schedule of Maturities of Operating Lease Liabilities

Maturities of operating lease liabilities as of December 28, 2019 are as follows:



Fiscal year	(in thousands)

2020	$	6,445
2021	5,485
2022	4,468
2023	4,596
2024	4,716
Thereafter	6,705
Total lease payments	32,415
Less: amount representing interest	(6,156		)
Less: amount representing restructuring liability adjustments	(135		)
Total lease liabilities	$	26,124

Schedule of Future Minimum Rental Payments for Operating Leases

Under the previous lease guidance, ASC 840, future minimum lease commitments at December 29, 2018 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

Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Quarterly Financial Information Disclosure [Abstract]
Revenue	$ 100,237	$ 103,469	$ 102,296	$ 98,091	$ 95,977	$ 101,484	$ 102,715	$ 98,623	$ 404,093	$ 398,799	$ 385,961
Gross margin	59,293	61,439	60,038	57,652	54,306	58,364	50,248	56,521	238,422	219,439	216,579
Restructuring charges	(55)	252	3,126	1,341	11,854	90	4,376	1,029	4,664	17,349	7,196
Net income (loss)	$ 13,987	$ 13,539	$ 8,559	$ 7,408	$ (7,121)	$ 6,974	$ (20,223)	$ (5,952)	$ 43,493	$ (26,322)	$ (70,562)
Net income (loss) per share - basic (in usd per share)	$ 0.10	$ 0.10	$ 0.06	$ 0.06	$ (0.05)	$ 0.05	$ (0.16)	$ (0.05)	$ 0.33	$ (0.21)	$ (0.58)
Net income (loss) per share - diluted (in usd per share)	$ 0.10	$ 0.10	$ 0.06	$ 0.05	$ (0.05)	$ 0.05	$ (0.16)	$ (0.05)	$ 0.32	$ (0.21)	$ (0.58)

- Definition

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

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

+ References + Details

Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 100,237	$ 103,469	$ 102,296	$ 98,091	$ 95,977	$ 101,484	$ 102,715	$ 98,623	$ 404,093	$ 398,799	$ 385,961
Revenue from contracts with customers, percentage	100.00%				100.00%				100.00%	100.00%	100.00%
Asia
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									$ 298,765	$ 298,119	$ 277,638
Revenue from contracts with customers, percentage	74.00%				75.00%				74.00%	75.00%	72.00%
Europe
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									$ 47,392	$ 45,546	$ 44,547
Revenue from contracts with customers, percentage	12.00%				11.00%				12.00%	11.00%	12.00%
Americas
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									$ 57,936	$ 55,134	$ 63,776
Revenue from contracts with customers, percentage	14.00%				14.00%				14.00%	14.00%	16.00%
Product
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									$ 382,548	$ 380,468	$ 356,502
Revenue from contracts with customers, percentage	95.00%				95.00%				95.00%	95.00%	92.00%
Licensing and services
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									$ 21,545	$ 18,331	$ 29,459
Revenue from contracts with customers, percentage	5.00%				5.00%				5.00%	5.00%	8.00%
Product revenue - Distributors
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									$ 331,941	$ 330,719	$ 297,736
Revenue from contracts with customers, percentage	82.00%				83.00%				82.00%	83.00%	77.00%
Product revenue - Direct
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									$ 50,607	$ 49,749	$ 58,766
Revenue from contracts with customers, percentage	13.00%				12.00%				13.00%	12.00%	15.00%
Licensing and services revenue
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									$ 21,545	$ 18,331	$ 29,459
Revenue from contracts with customers, percentage	5.00%				5.00%				5.00%	5.00%	8.00%

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Valuation Allowance [Line Items]
Decrease in valuation allowance	$ 8,600
Undistributed earnings of foreign subsidiaries	2,900
Unrecognized tax benefits associated with uncertain tax positions	41,927	$ 44,000	$ 44,832	$ 47,623
Unrecognized tax benefits associated with uncertain tax positions that, if recognized, would affect the effective tax rate	39,900
Interest and penalties associated with unrecognized tax benefits	9,000
Uncertain tax position exposure netted against deferred tax assets	24,800
Amount of unrecognized tax benefit that is reasonably possible be recognized during next twelve months	2,400
Amount of associated interest and penalties could be recognized during next twelve months	500
Decrease in unrecognized tax benefits	2,900
Federal
Valuation Allowance [Line Items]
Operating loss carryforwards	360,500
Tax credit carryforwards	50,100
State
Valuation Allowance [Line Items]
Operating loss carryforwards	141,300
Tax credit carryforwards	62,600
Do not expire \| State
Valuation Allowance [Line Items]
Tax credit carryforwards	61,900
Other long-term liabilities
Valuation Allowance [Line Items]
Liability for uncertain tax positions	$ 24,600	$ 26,300

Leases - Future Minimum Rental Payments (Details) $ in Thousands	Dec. 29, 2018 USD ($)
Fiscal year
2019	$ 7,090
2020	6,893
2021	5,452
2022	4,658
2023	4,229
Thereafter	9,930
Total future minimum lease commitments	$ 38,252

Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 28, 2019

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

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



	2019									2018
(In thousands, except per share data)	Q4			Q3		Q2		Q1		Q4			Q3		Q2			Q1
Revenue	$	100,237		$	103,469	$	102,296	$	98,091	$	95,977		$	101,484	$	102,715		$	98,623
Gross margin	59,293			61,439		60,038		57,652		54,306			58,364		50,248			56,521
Restructuring charges	(55		)	252		3,126		1,341		11,854			90		4,376			1,029
Net income (loss)	$	13,987		$	13,539	$	8,559	$	7,408	$	(7,121	)	$	6,974	$	(20,223	)	$	(5,952	)

Net income (loss) per share - basic	$	0.10		$	0.10	$	0.06	$	0.06	$	(0.05	)	$	0.05	$	(0.16	)	$	(0.05	)
Net income (loss) per share - diluted	$	0.10		$	0.10	$	0.06	$	0.05	$	(0.05	)	$	0.05	$	(0.16	)	$	(0.05	)

Balance Sheet Components - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Trade accounts payable	$ 44,350	$ 31,880
Liability for non-cancelable contracts	6,964	6,078
Restructuring	3,060	4,220
Other accrued expenses	5,881	9,585
Total accounts payable and accrued expenses	$ 60,255	$ 51,763

Leases - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Leases - Narrative (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017	Dec. 30, 2018
Lessee, Lease, Description [Line Items]
Fixed operating lease expenses	$ 7,700
Rental expense		$ 8,300	$ 8,900
Leases renewal term (up to)	5 years
Leases termination period (within)	1 year
Operating leases, the weighted-average remaining lease term	5 years 8 months 12 days
Operating leases, weighted-average discount rate	7.00%
Operating lease right-of-use assets	$ 23,591	0
Total lease liabilities	26,124	$ 0
Operating leases obligation for previously restructured facilities	$ 6,600
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

Net Income (Loss) Per Share

12 Months Ended

Dec. 28, 2019

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

Our calculation of the diluted share count includes the number of shares from our equity awards with market conditions or performance conditions that would be issuable under the terms of such awards at the end of the reporting period. For equity awards with a market condition, the maximum number of shares issuable are included in the diluted share count as of December 28, 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. For equity awards with a performance condition, no shares are included in the diluted share count as of December 28, 2019, as vesting of these awards is contingent upon achievement of the performance condition over two consecutive trailing four-quarter periods, which has not yet been achieved. See "Note 10 - Stock-Based Compensation Plans" to our consolidated financial statements for further discussion of our equity awards with market or performance conditions.

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



	Year Ended
(in thousands, except per share data)	December 28, 2019		December 29, 2018			December 30, 2017
Net income (loss)	$	43,493	$	(26,322	)	$	(70,562	)

Shares used in basic Net income (loss) per share	132,471		126,564			122,677
Dilutive effect of stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition	4,803		—			—
Shares used in diluted Net (loss) income per share	137,274		126,564			122,677

Basic Net income (loss) per share	$	0.33	$	(0.21	)	$	(0.58	)
Diluted Net income (loss) per share	$	0.32	$	(0.21	)	$	(0.58	)



	Year Ended
(in thousands)	December 28, 2019	December 29, 2018	December 30, 2017
Stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition excluded as they are antidilutive	890	7,567	6,622

Basis of Presentation and Significant Accounting Policies - Concentrations of Risk (Details) - Sell-Through Distributors Concentration Risk	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Revenue
Concentration Risk [Line Items]
Concentration risk, percentage	82.00%	83.00%	77.00%
Weikeng Group \| Revenue
Concentration Risk [Line Items]
Concentration risk, percentage	30.00%	25.00%	27.00%
Weikeng Group \| Trade receivables
Concentration Risk [Line Items]
Concentration risk, percentage	38.00%	23.00%
Arrow Electronics Inc. \| Revenue
Concentration Risk [Line Items]
Concentration risk, percentage	25.00%	29.00%	24.00%
Arrow Electronics Inc. \| Trade receivables
Concentration Risk [Line Items]
Concentration risk, percentage	40.00%	41.00%
All others \| Revenue
Concentration Risk [Line Items]
Concentration risk, percentage	27.00%	29.00%	26.00%

Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Sep. 29, 2018	Jun. 30, 2018	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Finite-Lived Intangible Assets [Line Items]
Impairment of acquired intangible assets	$ 600	$ 11,900	$ 0	$ 12,486	$ 32,431
Silicon Image, Inc \| Developed technology
Finite-Lived Intangible Assets [Line Items]
Impairment of acquired intangible assets					$ 32,400

Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Fiscal year
2020	$ 6,445
2021	5,485
2022	4,468
2023	4,596
2024	4,716
Thereafter	6,705
Total lease payments	32,415
Less: amount representing interest	(6,156)
Less: amount representing restructuring liability adjustments	(135)
Total lease liabilities	$ 26,124	$ 0

Long-Term Debt (Tables)

12 Months Ended

Dec. 28, 2019

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

The fair value of our long-term debt approximates the carrying value, which is reflected in our Consolidated Balance Sheets as follows:



(In thousands)	December 28, 2019			December 29, 2018
Principal amount	$	148,125		$	263,033
Unamortized original issue discount and debt costs	(1,579		)	(3,386		)
Less: Current portion of long-term debt	(21,474		)	(8,290		)
Long-term debt, net of current portion and unamortized debt issue costs	$	125,072		$	251,357

Schedule of Interest Income and Interest Expense Disclosure

Interest expense related to our long-term debt was included in Interest expense on our Consolidated Statements of Operations as follows:



			Year Ended
(in thousands)	December 28, 2019		December 29, 2018		December 30, 2017
Contractual interest	$	10,278	$	18,600	$	16,503
Amortization of debt issuance costs and discount	1,659		2,230		1,982
Total Interest expense related to the long-term debt	$	11,937	$	20,830	$	18,485

Schedule of Debt

As of December 28, 2019, expected future principal payments on our long-term debt were as follows:



Fiscal year	(in thousands)

2020	$	21,875
2021	17,500
2022	17,500
2023	17,500
2024	73,750
	$	148,125

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Balance Sheet Components

12 Months Ended

Dec. 28, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Components

Short-Term Marketable Securities

Our Short-term marketable securities consisted of U.S. government agency obligations with maturities up to two years, which we carried at their fair value as Level 1 instruments in accordance with ASC 820, "Fair Value Measurements." We liquidated these investments in the first quarter of fiscal 2019. The following table summarizes the maturities of our formerly-held Short-term marketable securities at fair value.



(In thousands)	December 28, 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

Accounts Receivable

Accounts receivable do not bear interest and are shown net of allowances for doubtful accounts. 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.



(In thousands)	December 28, 2019			December 29, 2018
Accounts receivable	$	65,023		$	61,087
Less: Allowance for doubtful accounts	(106		)	(197		)
Accounts receivable, net of allowance for doubtful accounts	$	64,917		$	60,890

The following table displays the activity related to changes in our allowance for doubtful accounts:



Fiscal Years Ended (In thousands)	Balance at beginning of period		Charged (Credit) to costs and expenses			Charged (credit) to other accounts			Settlements & write-offs net of recoveries			Balance at end of period
Allowance for doubtful accounts
December 28, 2019	$	197	$	(30	)	$	(12	)	$	(49	)	$	106
December 29, 2018	$	9,371	$	1		$	73		$	(9,248	)	$	197
December 30, 2017	$	9,299	$	3		$	38		$	31		$	9,371

During fiscal 2018, we wrote off $9.0 million of accounts receivable from a bankrupt distributor group. This write off had no impact on Accounts Receivable in fiscal 2018, as we had recorded a full allowance against our accounts receivable, net of deferred revenue, from the bankrupt distributor group in fiscal 2016.

Inventories



(In thousands)	December 28, 2019		December 29, 2018
Work in progress	$	39,855	$	47,224
Finished goods	15,125		19,872
Total inventories	$	54,980	$	67,096

In the second quarter of 2018, we made the strategic decision to discontinue our millimeter wave business, which included certain wireless technology inventory items. As such, specific inventory charges of $8.0 million were taken during fiscal 2018 on product lines eliminated with the discontinuation of our millimeter wave business and were charged to Cost of revenue in the Consolidated Statements of Operations.

Accounts Payable and Accrued Expenses

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



(In thousands)	December 28, 2019		December 29, 2018
Trade accounts payable	$	44,350	$	31,880
Liability for non-cancelable contracts	6,964		6,078
Restructuring	3,060		4,220
Other accrued expenses	5,881		9,585
Total accounts payable and accrued expenses	$	60,255	$	51,763

Cloud Based Computing Implementation Costs

During the fourth quarter of fiscal 2019, we early adopted ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), which clarifies the accounting for implementation costs in cloud computing arrangements. We adopted this guidance using the retrospective method, but did not restate any prior financial statements presented. As of December 28, 2019, we had capitalized approximately $2.5 million of implementation costs mainly for our new and interrelated distributor accounting management systems. These cloud based computing implementation costs are recorded in Prepaid expenses and other current assets and Other long-term assets on our Consolidated Balance Sheets.

Revenue from Contracts with Customers - Contract Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Movement In Contract With Customer, Asset, Net [Roll Forward]
Beginning balance	$ 9,143	$ 7,515
Revenues recorded during the period	17,356	11,618
Transferred to accounts receivable or collected	(20,930)	(9,990)
Ending balance	$ 5,569	$ 9,143

Stock-Based Compensation Plans - Summary of Assumptions Used in Valuation of Stock Options and RSUs (Details)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility			41.00%
Risk-free interest rate			1.90%
Expected term (years)			4 years 6 months
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	3 years
Minimum \| Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	40.15%	41.06%
Risk-free interest rate	1.66%	2.71%
Expected term (years)		3 years
Maximum \| Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	41.10%	41.74%
Risk-free interest rate	2.55%	2.87%
Expected term (years)		3 years 1 month 28 days

Stock-Based Compensation Plans - Summary of Assumptions Used in Valuation of Stock Option and ESPP Compensation (Details)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Risk-free interest rate			1.90%
Expected term (years)			4 years 6 months
Employee and Director Stock Options
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected volatility, percent, minimum		39.87%	40.96%
Expected volatility, percent, maximum		41.11%	48.01%
Weighted average risk-free interest rate, percent, minimum		2.29%	1.99%
Weighted average risk-free interest rate, percent, maximum		2.78%	2.09%
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Weighted average expected volatility	31.60%	36.40%
Risk-free interest rate	2.51%	1.61%
Expected term (years)	6 months	6 months
Minimum \| Employee and Director Stock Options
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected term (years)		4 years 28 days	4 years 28 days
Maximum \| Employee and Director Stock Options
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected term (years)		4 years 3 months	4 years 3 months