Note 3 - Revenue From Contracts With Customers

12 Months Ended

Jan. 01, 2022

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 channel and by geographical market, based on ship-to location of the customer:

	Year Ended
Revenue by Channel	January 1,				January 2,				December 28,
(In thousands)	2022				2021				2019
Product revenue - Distributors	$	449,650	87	%	$	339,100	83	%	$	331,941	82	%
Product revenue - Direct		45,202	9	%		49,402	12	%		50,607	13	%
Licensing and services		20,475	4	%		19,618	5	%		21,545	5	%
Total revenue	$	515,327	100	%	$	408,120	100	%	$	404,093	100	%
Revenue by Geographical Market
(In thousands)
United States	$	60,176	12	%	$	43,945	11	%	$	44,330	11	%
Other Americas		20,694	4	%		18,192	4	%		13,606	3	%
Americas		80,870	16	%		62,137	15	%		57,936	14	%
China		281,237	55	%		213,714	52	%		206,107	51	%
Japan		47,915	9	%		25,435	6	%		42,658	11	%
Other Asia		55,416	10	%		66,034	17	%		50,000	12	%
Asia		384,568	74	%		305,183	75	%		298,765	74	%
Europe		49,889	10	%		40,800	10	%		47,392	12	%
Total revenue	$	515,327	100	%	$	408,120	100	%	$	404,093	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 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
Revenues recorded during the period		15,587
Transferred to Accounts receivable or collected		(15,526	)
Contract assets as of January 1, 2022	$	5,672

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 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
Accruals for estimated future stock rotation and scrap returns		4,613
Less: Release of accruals for recognized stock rotation and scrap returns		(2,913	)
Contract liabilities as of January 1, 2022	$	4,768