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Note 9 - Intangible Assets

12 Months Ended

Jan. 02, 2021

Intangible Assets Disclosure [Text Block]

In connection with our acquisitions of Silicon Image, Inc. in March 2015 and SiliconBlue Technologies, Inc. in December 2011, we recorded identifiable intangible assets related to developed technology, customer relationships, licensed technology, patents, and in-process research and development based on guidance for determining fair value under the provisions of ASC 820, "Fair Value Measurements." We are amortizing the intangible assets using the straight-line method over their estimated useful lives. Additionally, we have entered into license agreements for third-party technology and recorded them as intangible assets. These licenses are being amortized to Research and development expense over their estimated useful lives.

The following tables summarize the details of our Intangible assets, net as of January 2, 2021 and December 28, 2019:

	*January 2, 2021*
(In thousands)	*Weighted Average Amortization Period (in years)*	*Gross*		*Accumulated Amortization*			*Intangible assets, net*
Developed technology	5.0	$	110,987	$	(109,162	)	$	1,825
Customer relationships	5.8		22,934		(22,281	)		653
Licensed technology	6.6		4,376		(533	)		3,843
Total identified intangible assets		$	138,297	$	(131,976	)	$	6,321

	*December 28, 2019*
(In thousands)	*Weighted Average Amortization Period (in years)*	*Gross*		*Accumulated Amortization*			*Intangible assets, net*
Developed technology	5.0	$	110,987	$	(105,594	)	$	5,393
Customer relationships	5.8		22,934		(21,400	)		1,534
Licensed technology	5.0		459		(409	)		50
Total identified intangible assets		$	134,380	$	(127,403	)	$	6,977

We recorded amortization expense related to intangible assets on the Consolidated Statements of Operations as presented in the following table:

	*Year Ended*
	*January 2,*		*December 28,*		*December 29,*
(In thousands)	*2021*		*2019*		*2018*
Research and development	$	124	$	55	$	277
Amortization of acquired intangible assets		4,449		13,558		17,690
	$	4,573	$	13,613	$	17,967

The annual expected amortization expense of acquired intangible assets is as follows:

Fiscal year	(in thousands)
2021	$	2,877
2022		876
2023		600
2024		501
2025		501
Thereafter		966
Total	$	6,321

No impairment charges relating to acquired intangible assets were recorded for either fiscal 2020 or 2019, as no indicators of impairment were present. During fiscal 2018, we recorded an impairment charge of $11.9 million relating to intangible assets as a result of the strategic decision to discontinue our millimeter wave business, and we recorded an impairment charge of $0.6 million to an intangible asset associated with a certain product line that we concluded had limited future revenue potential due to a decline in customer demand for that product. These charges were recorded to Impairment of acquired intangible assets in the Consolidated Statements of Operations.