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Note 1 - Organization and Summary of Significant Accounting Policies
 3 Months Ended
Apr. 29, 2017
Notes to Financial Statements  
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]
1.
             Organization and summary of significant accounting policies
 
Organization and nature of operations:  
Sigma Designs, Inc. (referred to collectively in these unaudited condensed consolidated financial statements as “Sigma,” “we,” “our”, “the Company” and “us”) is a provider of intelligent platforms for use in a variety of home entertainment and home control appliances. We sell our products into
two
primary target markets which are the Connected Smart TV Platforms and Internet of Things (“IoT”) Devices markets. Our integrated system-on-chip (“SoC”) solutions serve as the foundation for some of the world’s leading consumer products, including televisions, media connectivity, smart home, and mobile IoT products
. A majority of our primary products are semiconductors that are targeted toward end-product manufacturers, Original Equipment Manufacturers (“OEMs”), and Original Design Manufacturers (“ODMs”). We derive a portion of our revenue from licensing and other activities, including licensing of our software development kits, and engineering support services for hardware and software.
 
Basis of presentation:  
The unaudited condensed consolidated financial statements include the accounts of Sigma Designs, Inc. and its wholly-owned subsidiaries.  All significant intercompany balances and transactions have been eliminated upon consolidation.
We operate and report quarterly financial results that consist of
13
weeks and end on the last Saturday of the period. The
first
quarter of fiscal
2018
and fiscal
2017
ended on
April 29, 2017 (
91
days) and
April 30, 2016 (
91
days), respectively.
 
The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”).  They do
not
include all disclosures required by US GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto for the year ended
January 28, 2017,
included in our fiscal
2017
Annual Report on Form
10
-K, as filed with the SEC on
March 30, 2017,
referred to as our fiscal
2017
Annual Report.
 
The condensed consolidated financial statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments that, in our opinion, are necessary to present fairly our consolidated financial position at
April 29, 2017
and
January 28, 2017,
the consolidated results of our operations for the
three
months ended
April 29, 2017
and
April 30, 2016,
and the consolidated cash flows for the
three
months ended
April 29, 2017
and
April 30, 2016.  
The results of operations for the
three
months ended
April 29, 2017
are
not
necessarily indicative of the results to be expected for future quarters or the full year.
 
There have been
no
significant changes in our critical accounting policies during the
three
months ended
April 29, 2017,
as compared to the critical accounting policies described in our Annual Report on Form
10
-K for the year ended
January 28, 2017.
For a complete summary of our significant accounting policies, refer to Note
1,
"Organization and Summary of Significant Accounting Policies”, in Part II, Item
8
of our fiscal
2017
Annual Report.
 
Recently adopted accounting pronouncements
 
In
March 2016,
the Financial Accounting Standards Board (“FASB”) issued
Accounting Standards Update (“ASU”)
No.
2016
-
09,
Compensation-Stock Compensation (Topic
718
): Improvements to Employee Share-Based Payment Accounting. The amendment simplifies several aspects of the accounting for share-based payments, including the accounting for income taxes and forfeitures, as well as the classification on the statements of cash flows. We adopted this ASU in the
first
quarter of fiscal
2018
by recording the cumulative impact through an increase in retained earnings of
$4.6
million.
Stock-based compensation excess tax benefits or deficiencies are now reflected in the condensed consolidated statements of operations as a component of the provision for income taxes, whereas they previously were recognized in equity. The presentation requirements for cash flows related to employee taxes paid for withheld shares had
no
impact to all periods presented on our condensed consolidated statements of cash flows since such cash flows have historically been presented as a financing activity.
 
We have elected to account for forfeitures as they occur and therefore, stock-based compensation expense for the
three
months ended
April 29, 2017
has been calculated based on actual forfeitures in our condensed consolidated statements of operations, rather than our previous approach which was net of estimated forfeitures. The net cumulative effect of this change was less than
$0.1
million and recognized as an increase to paid-in capital as of
January 29, 2017.
 
In
July 2015,
the FASB issued ASU
No.
2015
-
11,
Simplifying the Measurement of Inventory. Under this ASU, the measurement principle for inventory changed from the lower of cost or market value to the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.
We adopted this ASU in the
first
quarter of fiscal
2018
with
no
material impact on our condensed consolidated financial statements.
 
Recently issued a
ccounting
pronouncements n
ot
y
et
effective:
Recent accounting pronouncements expected to impact our operations that are
not
yet effective are summarized as follows:
 
In
November 2016,
the FASB issued ASU
No.
2016
-
18,
Statement of Cash Flows (Topic
230
): Restricted Cash (“ASU
2016
-
18”
). The update provides guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows. We will
not
be required to adopt ASU
2016
-
18
until the commencement of our
first
quarter of fiscal
2019,
but early adoption is permitted.
The adoption of this ASU is
not
expected to have a material impact on our consolidated financial statements.
 
In
October 2016,
the FASB issued ASU
No.
2016
-
16,
Income Taxes (Topic
740
): Intra-Entity Transfers of Assets Other Than Inventory (“ASU
2016
-
16”
), which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. ASU
2016
-
16
is effective for us beginning in the
first
quarter of fiscal
2019
and early adoption is permitted. We are currently evaluating the impact that this ASU will have on our consolidated financial statements.
 
In
February 2016,
the FASB issued ASU
No.
2016
-
02,
 Leases (Topic
842
) (“ASU
2016
-
02”
), which requires lessees to recognize all leases, including operating leases, on the balance sheet as a lease asset or lease liability, unless the lease is a short-term lease. ASU
2016
-
02
also requires additional disclosures regarding leasing arrangements. ASU
2016
-
02
is effective for us beginning in the
first
quarter of fiscal
2020
and early adoption is permitted. We are currently evaluating the impact, and expect the ASU will have a material impact on our consolidated financial statements, primarily to the consolidated balance sheets and related disclosures
.
 
In
May 2014,
the FASB issued ASU
No.
2014
-
09,
Revenue from Contracts with Customers (Topic
606
) (“ASU
2014
-
09”
), which amends the existing accounting standards for revenue recognition. ASU
2014
-
09
is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products or services are transferred to customers. ASU
2014
-
09
is effective for us beginning in the
first
quarter of fiscal
2019
and early adoption is permitted. 
 
Subsequently, the FASB has issued the following standards related to ASU
2014
-
09:
ASU
No.
 
2016
-
08,
Revenue from Contracts with Customers (Topic
606
): Principal versus Agent Considerations (“ASU
2016
-
08”
); ASU
No.
2016
-
10,
Revenue from Contracts with Customers (Topic
606
): Identifying Performance Obligations and Licensing (“ASU
2016
-
10”
); ASU
No.
2016
-
12,
Revenue from Contracts with Customers (Topic
606
): Narrow-Scope Improvements and Practical Expedients (“ASU
2016
-
12”
) and ASU
No.
2016
-
20,
Technical Corrections and Improvements to Topic
606,
Revenue from Contracts with Customers (“ASU
2016
-
20”
). We must adopt ASU
2016
-
08,
ASU
2016
-
10,
ASU
2016
-
12
and ASU
2016
-
20
with ASU
2014
-
09
(collectively, the “new revenue standards”). We currently expect to adopt Topic
606
as of
February 4, 2018,
using the modified retrospective transition method applied to those contracts that were
not
completed as of that date. Upon adoption, we will recognize the cumulative effect of adopting this guidance as an adjustment to our opening balance of retained earnings. Prior periods will
not
be retrospectively adjusted. We expect the adoption of Topic
606
will
not
have a material impact to our consolidated financial statements.