Note 3 - Revenue From Contracts With Customers

12 Months Ended

Jan. 02, 2021

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

Note 3 - Revenue from Contracts with Customers

Disaggregation of Revenue

The following tables provide information about revenue from contracts with customers disaggregated by major class of revenue, revenue by channel, and by geographical market, based on ship-to location of the customer:

Major Class of Revenue	Year Ended
	January 2,				December 28,				December 29,
(In thousands)	2021				2019				2018
Product	$	388,502	95	%	$	382,548	95	%	$	380,468	95	%
Licensing and services		19,618	5	%		21,545	5	%		18,331	5	%
Total revenue	$	408,120	100	%	$	404,093	100	%	$	398,799	100	%

Revenue by Channel	Year Ended
	January 2,				December 28,				December 29,
(In thousands)	2021				2019				2018
Product revenue - Distributors	$	339,100	83	%	$	331,941	82	%	$	330,719	83	%
Product revenue - Direct		49,402	12	%		50,607	13	%		49,749	12	%
Licensing and services revenue		19,618	5	%		21,545	5	%		18,331	5	%
Total revenue	$	408,120	100	%	$	404,093	100	%	$	398,799	100	%

Revenue by Geographical Market	Year Ended
	January 2,				December 28,				December 29,
(In thousands)	2021				2019				2018
United States	$	43,945	11	%	$	44,330	11	%	$	38,585	10	%
Other Americas		18,192	4	%		13,606	3	%		16,549	4	%
Americas		62,137	15	%		57,936	14	%		55,134	14	%
China		213,714	52	%		206,107	51	%		202,983	51	%
Taiwan		30,972	8	%		19,746	5	%		16,124	4	%
Japan		25,435	6	%		42,658	11	%		44,033	11	%
Other Asia		35,062	9	%		30,254	7	%		34,979	9	%
Asia		305,183	75	%		298,765	74	%		298,119	75	%
Europe		40,800	10	%		47,392	12	%		45,546	11	%
Total revenue	$	408,120	100	%	$	404,093	100	%	$	398,799	100	%

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)
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
Revenues recorded during the period		15,860
Transferred to Accounts receivable or collected		(15,818	)
Contract assets as of January 2, 2021	$	5,611

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

(In thousands)
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
Accruals for estimated future stock rotation and scrap returns		5,976
Less: Release of accruals for recognized stock rotation and scrap returns		(5,221	)
Contract liabilities as of January 2, 2021	$	3,068

The impact to revenue in fiscal years 2020 and 2019 from the release of accruals for recognized stock rotation and scrap returns was offset by the processing of return merchandise authorizations totaling $6.1 million and $5.0 million, respectively, yielding a net revenue decrease of approximately $0.9 million and a net revenue increase of approximately $0.1 million, respectively.