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Related Party transactions
9 Months Ended
Oct. 01, 2017
Related Party Transactions [Abstract]  
Related Party transactions
Related Party Transactions
Purchases from Cadence Design Systems, Inc.
Lip-Bu Tan, a member of the Company’s board of directors since June 2015, is the President and Chief Executive Officer of Cadence, an electronic design automation software and engineering services company. Since 2012, the Company has paid licensing fees for digital and analog layout tools and simulation tools from Cadence in the ordinary course of business. The Company incurred fees of approximately $2.0 million and $0.6 million under the terms of this arrangement during the three months ended October 1, 2017 and September 25, 2016, respectively, and approximately $3.7 million and $1.2 million during the nine months ended October 1, 2017 and September 25, 2016, respectively.
On September 29, 2017, the Company entered into a three-year software license contract with Cadence for the use of various EDA software tools used for its research and development efforts. The license payments will be made and amortized over 12 quarterly periods amounting to approximately $3.3 million. In addition, the Company also contracted with Cadence for ongoing maintenance support which will be recognized ratably over the contractual term and amount to approximately $1.2 million. The Company has classified these licenses as definite long-lived intangible assets in its Condensed Consolidated Balance Sheets as of October 1, 2017.