Segment and Geographic Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

Segment Information

As of December 31, 2016, we had one operating segment: the core Lattice business, which includes IP and semiconductor devices. Qterics, a discrete software-as-a-service business unit, was previously an immaterial operating segment in the Lattice legal entity structure. In April 2016, we sold Qterics to an unrelated third party for net proceeds of $2.0 million, net of cash sold, resulting in a gain of $2.6 million. The gain has been included in other income (expense), net for the year ended December 31, 2016 in the Consolidated Statements of Operations.

Geographic Information

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

	Year Ended
(In thousands)	December 31, 2016			January 2, 2016			January 3, 2015
United States:	$	51,752	12%	$	33,677	8%	$	30,848	8%
China	146,645		34	147,688		36	159,155		43
Europe	59,835		14	55,596		14	59,041		16
Japan	49,080		12	44,067		11	31,207		9
Taiwan	31,322		7	31,181		8	6,691		2
Other Asia	78,046		18	85,598		21	69,778		19
Other Americas	10,374		3	8,159		2	9,407		3
Total foreign revenue	375,302		88	372,289		92	335,279		92
Total revenue	$	427,054	100%	$	405,966	100%	$	366,127	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)	December 31, 2016		January 2, 2016
United States	$	30,532	$	25,615
China	10,617		14,998
Philippines	4,928		3,948
Taiwan	2,310		3,677
India	215		1,470
Japan	637		1,211
Other	242		933
Total foreign property and equipment, net	18,949		26,237
Total property and equipment, net	$	49,481	$	51,852

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
	2016		2015		2014
Arrow Electronics Inc.	24	%	20	%	24	%
Weikeng Group	22		12		10
All others	15		13		11
All sell-through distributors	61	%	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. For this reason, we do not recognize revenue until products are resold by sell-through distributors to an end customer. 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.