Segment and Geographic Information

12 Months Ended

Jan. 02, 2016

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

Segment Information

We have two operating segments: the core Lattice ("Core") business, which includes intellectual property and semiconductor devices, and Qterics, a discrete software-as-a-service business unit in the Lattice legal entity structure.

Although these two operating segments constitute two reportable segments, we combine Qterics with our Core business and report them together as one reportable segment due to the immaterial nature of the Qterics segment. For the twelve months ended January 2, 2016, revenue generated by Qterics comprised 0.3% of Total revenue. For the twelve months ended January 2, 2016, Qterics accounted for 16.3% of the total Net loss attributable to stockholders, due primarily to a $21.7 million impairment of goodwill and intangible assets related to this segment (Note 9). As of January 2, 2016, the Total assets of Qterics comprised 0.8% of the Total assets of the company.

Geographic Information

Our revenue by major geographic area based on ship-to location was as follows:

	Year Ended
(In thousands)	January 2, 2016			January 3, 2015			December 28, 2013
United States:	$	33,677	8%	$	30,848	8%	$	28,506	9%
China	147,688		36	159,155		43	148,018		45
Europe	55,596		14	59,041		16	47,459		14
Japan	44,067		11	31,207		9	26,538		8
Taiwan	31,181		8	6,691		2	6,708		2
Other Asia	85,598		21	69,778		19	64,425		19
Other Americas	8,159		2	9,407		3	10,871		3
Total foreign revenue	372,289		92	335,279		92	304,019		91
Total revenue	$	405,966	100%	$	366,127	100%	$	332,525	100%

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

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

(In thousands)	January 2, 2016	January 3, 2015
United States	25,615	14,250
China	14,998	5,626
Philippines	3,948	3,658
Taiwan	3,677	405
India	1,470	248
Japan	1,211	1,732
Other	933	1,877
Total foreign property and equipment, net	26,237	13,546
Total property and equipment, net	51,852	27,796

Revenue by Distributors

Our largest customers are often distributors and sales through distributors have historically made up a significant portion of our total revenue. Revenue attributable to resales of products by our primary distributors are as follows:

	% of Total Revenue
	2015		2014		2013
Arrow Electronics Inc. (including Nu Horizons Electronics)	20	%	24	%	23	%
Weikeng Group	12		10		12
All others	13		11		10
All sell-through distributors	45	%	45	%	45	%

Orders from our sell-through distributors are initially recorded at published list prices; however, for a majority of our sales, the final selling price is determined at the time of resale and in accordance with a distributor price agreement. In certain circumstances, we allow sell-through distributors to return unsold products. At times, we protect our sell-through distributors against reductions in published list prices. For these reasons, we do not recognize revenue until products are resold by sell-through distributors to an end customer.