10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2013

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                          to                         

Commission File Number: 1-10317

LSI CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	94-2712976
(State of Incorporation)	(I.R.S. Employer Identification Number)

1320 Ridder Park Drive

San Jose, California 95131

(Address of principal executive offices)

(Zip code)

(408) 433-8000

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer þ	Accelerated filer ¨	Non-accelerated filer ¨	Smaller reporting company ¨
		(Do not check if a smaller reporting company.)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No þ

As of May 2, 2013, there were 549,559,114 shares of the registrant’s Common Stock, $.01 par value, outstanding.

LSI CORPORATION

FORM 10-Q

For the Quarter Ended March 31, 2013

INDEX

	Page         No.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)		3
Condensed Consolidated Balance Sheets as of March 31, 2013 and December 31, 2012		3
Condensed Consolidated Statements of Operations for the three months ended March  31, 2013 and April 1, 2012		4
Condensed Consolidated Statements of Comprehensive Income for the three months ended March  31, 2013 and April 1, 2012		5
Condensed Consolidated Statements of Cash Flows for the three months ended March  31, 2013 and April 1, 2012		6
Notes to Condensed Consolidated Financial Statements		7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		16
Item 3. Quantitative and Qualitative Disclosures about Market Risk		23
Item 4. Controls and Procedures		23
PART II. OTHER INFORMATION
Item 1. Legal Proceedings		23
Item 1A. Risk Factors		23
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		24
Item 6. Exhibits		24
Signatures		25
Exhibit Index		26

FORWARD-LOOKING STATEMENTS

This Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words “estimate,” “plan,” “intend,” “expect,” “anticipate,” “believe” and similar words are intended to identify forward-looking statements. Although we believe our expectations are based on reasonable assumptions, our actual results could differ materially from those projected in the forward-looking statements. We have described in Part II, Item 1A-“Risk Factors” a number of factors that could cause our actual results to differ materially from our projections or estimates. Except where otherwise indicated, the statements made in this report are made as of the date we filed this report with the Securities and Exchange Commission and should not be relied upon as of any subsequent date. We expressly disclaim any obligation to update the information in this report, except as may otherwise be required by law.

2

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

LSI CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

(Unaudited)

	March 31, 2013			December 31, 2012
ASSETS
Cash and cash equivalents	$	425,225		$	471,528
Short-term investments		233,305			204,457
Accounts receivable, less allowances of $4,620 and $6,770, respectively		223,185			264,112
Inventories		181,071			206,323
Prepaid expenses and other current assets		70,046			80,372
Total current assets		1,132,832			1,226,792
Property and equipment, net		277,995			269,747
Identified intangible assets, net		456,490			486,119
Goodwill		255,005			255,005
Other assets		118,573			118,502
Total assets	$	2,240,895		$	2,356,165
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable	$	170,334		$	209,699
Accrued salaries, wages and benefits		104,703			129,533
Other accrued liabilities		166,491			177,662
Total current liabilities		441,528			516,894
Pension and post-retirement benefit obligations		541,397			559,252
Income taxes payable — non-current		99,102			102,246
Other non-current liabilities		17,898			18,149
Total liabilities		1,099,925			1,196,541
Commitments and contingencies (Note 12)
Stockholders’ equity:
Preferred stock, $.01 par value: 2,000 shares authorized; none outstanding		—			—
Common stock, $.01 par value: 1,300,000 shares authorized; 548,826 and 550,894 shares outstanding, respectively		5,488			5,509
Additional paid-in capital		5,530,418			5,573,248
Accumulated deficit		(3,822,371	)		(3,840,803	)
Accumulated other comprehensive loss		(572,565	)		(578,330	)
Total stockholders’ equity		1,140,970			1,159,624
Total liabilities and stockholders’ equity	$	2,240,895		$	2,356,165

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

3

LSI CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended
	March 31, 2013			April 1, 2012
Revenues	$	568,636		$	622,424
Cost of revenues		279,132			335,512
Gross profit		289,504			286,912
Research and development		171,305			169,871
Selling, general and administrative		89,495			90,100
Restructuring of operations and other items, net		20,452			15,462
Income from operations		8,252			11,479
Interest income and other, net		7,880			14,656
Income before income taxes		16,132			26,135
Benefit from income taxes		(2,300	)		(49,062	)
Net income	$	18,432		$	75,197
Net income per share:
Basic	$	0.03		$	0.13
Diluted	$	0.03		$	0.13
Shares used in computing per share amounts:
Basic		550,227			566,709
Diluted		567,092			590,556

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

4

LSI CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

	Three Months Ended
	March 31, 2013			April 1, 2012
Net income	$	18,432		$	75,197
Other comprehensive income before tax:
Foreign currency translation adjustments		(342	)		1,447
Available-for-sale securities:
Unrealized gain on investments		1,980			338
Reclassification of net realized loss/(gain) on investments to net income		17			(142	)
Derivative financial instruments:
Unrealized (loss)/gain on derivatives		(32	)		640
Reclassification of net realized (gain)/loss on derivatives to net income		(162	)		673
Amortization of transition asset, prior service cost and net actuarial loss on defined benefit pension and post-retirement plans		5,044			3,969
Other comprehensive income before tax		6,505			6,925
Income tax expense on unrealized gain on investments		740			—
Other comprehensive income, net of tax		5,765			6,925
Comprehensive income	$	24,197		$	82,122

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

5

LSI CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Three Months Ended
	March 31, 2013			April 1, 2012
Operating activities:
Net income	$	18,432		$	75,197
Adjustments:
Depreciation and amortization		44,285			45,368
Stock-based compensation expense		25,546			30,834
Non-cash restructuring of operations and other items, net		6,596			2,140
Gain on re-measurement of a pre-acquisition equity interest to fair value		—			(5,765	)
(Gain)/loss on sale of property and equipment		(4	)		25
Unrealized foreign exchange loss		589			1,461
Deferred taxes		(26	)		(43,202	)
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business combination:
Accounts receivable, net		40,652			(44,845	)
Inventories		25,123			3,453
Prepaid expenses and other assets		(7,955	)		(2,290	)
Accounts payable		(33,054	)		47,119
Accrued and other liabilities		(57,354	)		(59,270	)
Net cash provided by operating activities		62,830			50,225
Investing activities:
Purchases of debt securities available-for-sale		(53,345	)		(21,263	)
Proceeds from maturities and sales of debt securities available-for-sale		24,117			9,506
Purchases of other investments		(750	)		—
Purchases of property and equipment		(25,075	)		(64,982	)
Proceeds from sale of property and equipment		27			21
Acquisition of business, net of cash acquired		—			(319,231	)
Net cash used in investing activities		(55,026	)		(395,949	)
Financing activities:
Issuances of common stock		8,165			65,274
Purchases of common stock under repurchase programs		(60,765	)		(38,206	)
Net cash (used in)/provided by financing activities		(52,600	)		27,068
Effect of exchange rate changes on cash and cash equivalents		(1,507	)		(495	)
Net change in cash and cash equivalents		(46,303	)		(319,151	)
Cash and cash equivalents at beginning of period		471,528			779,811
Cash and cash equivalents at end of period	$	425,225		$	460,660

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

6

LSI CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 — Basis of Presentation

For financial reporting purposes, LSI Corporation (“LSI” or the “Company”) reports on a 13- or 14-week quarter with the year ending December 31. The first quarters of 2013 and 2012 consisted of 13 weeks each and ended on March 31, 2013 and April 1, 2012, respectively. The results of operations for the quarter ended March 31, 2013 are not necessarily indicative of the results to be expected for the full year.

The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ significantly from these estimates.

In management’s opinion, the accompanying unaudited condensed consolidated financial statements contain all normal recurring adjustments necessary for a fair statement of the Company’s financial position, results of operations, comprehensive income and cash flows for the interim periods presented. While the Company believes that the disclosures are adequate to make the information not misleading, these financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

Recent Accounting Pronouncement

In February 2013, the Financial Accounting Standards Board (“FASB”) issued additional guidance regarding the presentation of comprehensive income. The guidance requires an entity to present the effects on net income line items of significant amounts reclassified out of accumulated other comprehensive income, but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. An entity shall provide this information either on the face of the financial statements or in the notes to the financial statements. The guidance is effective for fiscal years beginning after December 15, 2012. The Company adopted this guidance in the first quarter of 2013. The adoption did not impact the Company’s results of operations or financial position.

Note 2 — Stock-Based Compensation Expense

Stock-based compensation expense, net of estimated forfeitures, related to the Company’s stock options, Employee Stock Purchase Plan (“ESPP”) and restricted stock unit awards by expense category was as follows:

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In thousands)
Cost of revenues	$	2,875	$	3,512
Research and development		12,409		12,308
Selling, general and administrative		10,262		15,014
Total stock-based compensation expense	$	25,546	$	30,834

The income tax benefit that the Company realized for the tax deduction from option exercises and other awards was not material for any periods presented.

Stock Options

The fair value of each option grant is estimated as of the date of grant using a reduced-form calibrated binomial lattice model (“lattice model”). The following table summarizes the weighted-average assumptions that the Company applied in the lattice model:

	Three Months Ended
	March 31, 2013			April 1, 2012
Estimated grant date fair value per share	$	2.33		$	2.86
Expected life (years)		4.38			4.46
Risk-free interest rate		1	%		1	%
Volatility		49	%		47	%

The following table summarizes changes in stock options outstanding:

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	Number of Shares			Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term		Aggregate Intrinsic Value
	(In thousands)					(In years)		(In thousands)
Options outstanding at December 31, 2012		56,042		$	5.75
Granted		6,247		$	6.89
Exercised		(2,192	)	$	3.72
Canceled		(1,006	)	$	8.24
Options outstanding at March 31, 2013		59,091		$	5.90		3.86	$	85,227
Options exercisable at March 31, 2013		39,726		$	5.87		2.72	$	62,059

As of March 31, 2013, the total unrecognized compensation expense related to unvested stock options, net of estimated forfeitures, was $41.8 million and is expected to be recognized over the next 2.6 years on a weighted-average basis.

Restricted Stock Units (“RSUs”)

The cost of service-based and performance-based RSUs is determined using the fair value of the Company’s common stock on the date of grant. For performance-based RSU expense, the Company also considers the probability that those RSUs will vest.

Service-based:

The vesting of service-based RSUs requires that the employees remain employed by the Company for a specified period of time.

The following table summarizes changes in service-based RSUs outstanding:

	Number of Units			Weighted-Average Grant Date Fair Value per Share
	(In thousands)
Unvested service-based RSUs outstanding at December 31, 2012		17,655		$	6.99
Granted		7,227		$	6.90
Vested		(4,461	)	$	6.84
Forfeited		(309	)	$	6.77
Unvested service-based RSUs outstanding at March 31, 2013		20,112		$	7.00

As of March 31, 2013, the total unrecognized compensation expense related to the service-based RSUs, net of estimated forfeitures, was $124.0 million and will be recognized over the next 3 years on a weighted-average basis.

Performance-based:

The vesting of performance-based RSUs is contingent upon the Company meeting specified performance criteria and requires that the employees remain employed by the Company for a specified period of time.

The following table summarizes changes in performance-based RSUs outstanding:

	Number of Units			Weighted-Average Grant Date Fair Value per Share
	(In thousands)
Unvested performance-based RSUs outstanding at December 31, 2012		5,634		$	7.29
Granted		1,441		$	6.89
Vested		(2,324	)	$	7.87
Forfeited		(330	)	$	6.40
Unvested performance-based RSUs outstanding at March 31, 2013		4,421		$	6.93

As of March 31, 2013, the total unrecognized compensation expense related to the performance-based RSUs, net of estimated forfeitures, was $17.2 million and, if the performance conditions are fully met, will be recognized over the next 3 years.

8

Employee Stock Purchase Plan

Compensation expense for the ESPP is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model. Under the ESPP, rights to purchase shares are granted during the second and fourth quarters of each year. No shares related to the ESPP were issued during the three months ended March 31, 2013 or April 1, 2012.

Note 3 — Common Stock Repurchases

On August 1, 2012, the Company’s board of directors authorized a common stock repurchase program of up to $500.0 million of its common stock. As of March 31, 2013, $417.9 million remained available for repurchases under this program.

During the three months ended March 31, 2013, the Company repurchased 8.6 million shares for $60.8 million. During the three months ended April 1, 2012, the Company repurchased 4.6 million shares for $38.2 million. Repurchased shares are retired immediately after the repurchases are completed. Retirement of repurchased shares is recorded as a reduction of common stock and additional paid-in capital.

Note 4 — Restructuring and Other Items

The following table summarizes items included in restructuring of operations and other items, net:

	Three Months Ended
	March 31, 2013			April 1, 2012
	(In thousands)
Lease and contract terminations	$	1,768	(a)	$	1,634	(a)
Employee severance and benefits		4,386			431
Total restructuring expense		6,154			2,065
Other items, net		14,298	(b)		13,397	(c)
Total restructuring of operations and other items, net	$	20,452		$	15,462

(a) Includes lease obligation costs for facilities that the Company ceased to use, changes in estimates, changes in time value and on-going expenditures related to previously vacated facilities.

(b) Primarily consists of $12.6 million of costs related to litigation settlements.

(c) Primarily consists of $8.3 million of SandForce, Inc. (“SandForce”) acquisition-related costs and $4.6 million of costs related to the transition service agreement associated with the sale of the external storage systems business.

The following table summarizes the significant activity within, and components of, the Company’s restructuring obligations:

	Lease and Contract Terminations			Employee Severance and Benefits			Total
	(In thousands)
Balance at December 31, 2012	$	12,991		$	5,003		$	17,994
Expense		1,768			4,386			6,154
Utilized		(6,441	)(a)		(4,970	)(a)		(11,411	)
Balance at March 31, 2013	$	8,318	(b)	$	4,419	(b)	$	12,737

(a) Represents cash payments.

(b) The balance remaining for the lease terminations is expected to be paid during the remaining terms of the leases, which extend through 2014. The majority of the balance remaining for employee severance and benefits is expected to be paid by the end of 2013.

Note 5 — Benefit Obligations

The Company provides retirement benefits to certain current and former U.S. employees under defined benefit pension plans, which include a management plan and a represented plan. Benefits under the management plan are based on an adjusted career-average-pay formula or a cash-balance program. Benefits under the represented plan are based on a dollar-per-month formula. Benefit accruals under the management plan were frozen in 2009. Participants in the adjusted career-average-pay program no longer earn service accruals. Participants in the cash-balance program no longer earn service accruals, but continue to earn 4% interest per year on their cash-balance accounts. There are no active participants under the represented plan.

The Company also has a non-qualified supplemental pension plan in the U.S. that principally provides benefits based on compensation in excess of amounts that can be considered under the management plan. In addition, the Company provides post-retirement life insurance coverage under a group life insurance plan for certain U.S. employees. The Company also has pension plans covering certain international employees.

9

The following table summarizes the components of the net periodic benefit cost:

	Three Months Ended
	March 31, 2013						April 1, 2012
	Pension Benefits			Post-retirement Benefits			Pension Benefits			Post-retirement Benefits
	(In thousands)
Service cost	$	123		$	25		$	109		$	25
Interest cost		14,270			600			15,252			650
Expected return on plan assets		(16,581	)		(875	)		(17,023	)		(1,050	)
Amortization of net actuarial loss, prior service cost and transition asset		4,669			375			3,469			500
Total benefit cost	$	2,481		$	125		$	1,807		$	125

During the three months ended March 31, 2013, the Company contributed $15.3 million to its pension plans. The Company expects to contribute an additional $36.4 million to its pension plans during the remainder of 2013. The Company does not expect to contribute to its post-retirement benefit plan in 2013.

Note 6 — Cash Equivalents and Investments

The following tables summarize the Company’s cash equivalents and investments measured at fair value:

	Fair Value Measurements as of March 31, 2013
	Level 1			Level 2			Total
	(In thousands)
Cash equivalents:
Money-market funds	$	325,927	(a)	$	—		$	325,927
Government and agency securities		—			8,547	(b)		8,547
Commercial paper		—			2,500	(b)		2,500
Total cash equivalents	$	325,927		$	11,047		$	336,974
Available-for-sale debt securities:
Asset-backed and mortgage-backed securities:
Agency securities	$	—		$	145,150	(b)	$	145,150
Non-agency securities		—			1,116	(b)		1,116
Government and agency securities		15,003	(a)		58,032	(b)		73,035
Corporate debt securities		—			10,006	(b)		10,006
Commercial paper		—			3,998	(b)		3,998
Total short-term investments	$	15,003		$	218,302		$	233,305
Long-term investments in equity securities:
Marketable available-for-sale equity securities	$	1,952	(c)	$	—		$	1,952

	Fair Value Measurements as of December 31, 2012
	Level 1			Level 2			Total
	(In thousands)
Cash equivalents:
Money-market funds	$	364,596	(a)	$	—		$	364,596
Government and agency securities		—			6,479	(b)		6,479
Total cash equivalents	$	364,596		$	6,479		$	371,075
Available-for-sale debt securities:
Asset-backed and mortgage-backed securities:
Agency securities	$	—		$	129,463	(b)	$	129,463
Non-agency securities		—			1,393	(b)		1,393
Government and agency securities		17,042	(a)		49,658	(b)		66,700
Corporate debt securities		—			6,001	(b)		6,001
Commercial paper		—			900	(b)		900
Total short-term investments	$	17,042		$	187,415		$	204,457
Long-term investments in equity securities:
Marketable available-for-sale equity securities	$	1,689	(c)	$	—		$	1,689

10

(a) The fair value of money-market funds is determined using unadjusted prices in active markets. The fair value of Level 1 U.S. government and agency securities is determined using quoted prices in active markets.

(b) These investments are traded less frequently than Level 1 securities and are valued using inputs that include quoted prices for similar assets in active markets and inputs other than quoted prices that are observable for the asset, such as interest rates, yield curves, prepayment speeds, collateral performance, broker/dealer quotes and indices that are observable at commonly quoted intervals.

(c) The fair value of marketable equity securities is determined using quoted prices in active markets. These amounts are included within other assets in the condensed consolidated balance sheets.

As of March 31, 2013 and December 31, 2012, the aggregate carrying value of the Company’s non-marketable securities was $42.8 million and $42.1 million, respectively.

Upon the acquisition of SandForce in January 2012, the Company recognized a gain of $5.8 million as a result of re-measuring its pre-acquisition equity interest in SandForce to estimated fair value. There were no other non-marketable securities fair-valued during the three months ended March 31, 2013 or April 1, 2012.

The following tables summarize the Company’s available-for-sale securities:

	March 31, 2013
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value
	(In thousands)
Short-term debt securities:
Asset-backed and mortgage-backed securities	$	139,611	$	7,484	$	(829	)	$	146,266
Government and agency securities		72,194		843		(2	)		73,035
Corporate debt securities		9,885		124		(3	)		10,006
Commercial paper		3,998		—		—			3,998
Total short-term debt securities	$	225,688	$	8,451	$	(834	)	$	233,305
Long-term marketable equity securities	$	669	$	1,283	$	—		$	1,952

	December 31, 2012
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value
	(In thousands)
Short-term debt securities:
Asset-backed and mortgage-backed securities	$	125,563	$	6,390	$	(1,097	)	$	130,856
Government and agency securities		65,904		802		(6	)		66,700
Corporate debt securities		5,864		137		—			6,001
Commercial paper		900		—		—			900
Total short-term debt securities	$	198,231	$	7,329	$	(1,103	)	$	204,457
Long-term marketable equity securities	$	669	$	1,020	$	—		$	1,689

As of March 31, 2013, there were 107 investments in an unrealized loss position. The following tables summarize the gross unrealized losses and fair values of the Company’s short-term investments that have been in a continuous unrealized loss position for less than and greater than 12 months, aggregated by investment category:

	March 31, 2013
	Less than 12 Months					Greater than 12 Months
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
Asset-backed and mortgage-backed securities	$	47,476	$	(749	)	$	3,728	$	(80	)
Government and agency securities		4,910		(2	)		—		—
Corporate debt securities		2,956		(3	)		—		—
Total	$	55,342	$	(754	)	$	3,728	$	(80	)

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	December 31, 2012
	Less than 12 Months					Greater than 12 Months
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
Asset-backed and mortgage-backed securities	$	38,280	$	(1,018	)	$	4,141	$	(79	)
Government and agency securities		18,301		(6	)		—		—
Total	$	56,581	$	(1,024	)	$	4,141	$	(79	)

Net realized losses and gains on sales of available-for-sale securities were not material for the three months ended March 31, 2013 or April 1, 2012.

Contractual maturities of available-for-sale debt securities as of March 31, 2013 were as follows:

	Available-For-Sale Debt Securities
	(In thousands)
Due within one year	$	29,424
Due in 1-5 years		59,264
Due in 5-10 years		10,497
Due after 10 years		134,120
Total	$	233,305

The maturities of asset-backed and mortgage-backed securities were allocated based on contractual principal maturities assuming no prepayments.

Note 7 — Supplemental Financial Information

Inventories

	March 31, 2013		December 31, 2012
	(In thousands)
Raw materials	$	71	$	176
Work-in-process		39,281		52,003
Finished goods		141,719		154,144
Total inventories	$	181,071	$	206,323

Accumulated Other Comprehensive Loss

The following table presents the components of, and changes in, accumulated other comprehensive loss, net of taxes:

	Balance at December 31, 2012			Other Comprehensive Income before Reclassifications			Amounts Reclassified from Accumulated Other Comprehensive Loss (a)			Net Current Period Other Comprehensive Income			Balance at March 31, 2013
	(In thousands)
Foreign currency translation adjustments	$	39,881		$	(342	)	$	—		$	(342	)	$	39,539
Net unrealized gain on investments		4,484			1,240			17			1,257			5,741
Net unrealized gain on derivatives		224			(32	)		(162	)		(194	)		30
Defined benefit pension and post-retirement plans		(622,919	)		—			5,044			5,044			(617,875	)
Total accumulated other comprehensive loss	$	(578,330	)	$	866		$	4,899		$	5,765		$	(572,565	)

(a) The reclassified components of defined benefit pension and post-retirement plans were included in the computation of net periodic benefit cost (see Note 5). All other reclassified amounts were insignificant.

Reconciliation of Basic and Diluted Shares

The following table provides a reconciliation of basic and diluted shares:

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	Three Months Ended
	March 31, 2013		April 1, 2012
	(In thousands)
Basic shares		550,227		566,709
Dilutive effect of stock options, employee stock purchase rights and restricted stock unit awards		16,865		23,847
Diluted shares		567,092		590,556

The weighted-average common share equivalents that were excluded from the computation of diluted shares because their inclusion would have had an anti-dilutive effect on net income per share were as follows:

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In thousands)
Anti-dilutive securities:
Stock options		29,420		15,929
Restricted stock unit awards		1,632		4,710

Note 8 — Derivative Instruments

The Company has foreign subsidiaries that operate and sell the Company’s products in various markets around the world. As a result, the Company is exposed to changes in foreign-currency exchange rates. The Company utilizes forward contracts to manage its exposure associated with net assets and liabilities denominated in non-functional currencies and to reduce the volatility of earnings and cash flows related to forecasted foreign-currency transactions. The Company does not hold derivative financial instruments for speculative or trading purposes.

Cash-Flow Hedges

The Company enters into forward contracts that are designated as foreign-currency cash-flow hedges of selected forecasted payments denominated in currencies other than U.S. dollars. These forward contracts generally mature within twelve months. The Company evaluates and calculates the effectiveness of each hedge at least quarterly. Changes in fair value attributable to changes in time value are excluded from the assessment of effectiveness and are recognized in interest income and other, net. The effective portion of the forward contracts’ gain or loss is recorded in other comprehensive income and, when the hedged expense is recognized, is subsequently reclassified into earnings within the same line item in the statement of operations as the impact of the hedged transaction. The ineffective portion of the gain or loss is reported in earnings immediately. As of March 31, 2013 and December 31, 2012, the total notional value of the Company’s outstanding forward contracts, designated as foreign-currency cash-flow hedges, was $40.3 million and $39.8 million, respectively.

Other Foreign-Currency Hedges

The Company enters into foreign-exchange forward contracts that are used to hedge certain assets or liabilities denominated in non-functional currencies and that do not qualify for hedge accounting. These forward contracts generally mature within three months. Changes in the fair value of these forward contracts are recorded immediately in earnings to offset the changes in fair value of the assets or liabilities being hedged. As of March 31, 2013 and December 31, 2012, the total notional value of the Company’s outstanding forward contracts, not designated as hedges under hedge accounting, was $40.4 million and $31.6 million, respectively. For the three months ended March 31, 2013 and April 1, 2012, the Company recognized a loss of $1.2 million and a gain of $1.1 million on other foreign-currency hedges, respectively. These amounts are included in interest income and other, net in the Company’s condensed consolidated statements of operations and were substantially offset by the gain and loss on the underlying foreign-currency-denominated assets or liabilities.

Fair Value of Derivative Instruments

The total fair value of derivative assets and liabilities was recorded in prepaid expenses and other current assets and in other accrued liabilities, respectively, in the condensed consolidated balance sheets. As of March 31, 2013 and December 31, 2012, the total fair value of derivative assets and liabilities was immaterial.

Note 9 — Segment, Geographic and Product Information

The Company operates in one reportable segment — the Semiconductor segment. The Company’s chief executive officer is the chief operating decision maker (“CODM”). The Company’s CODM bears ultimate responsibility for, and is actively engaged in, the allocation of resources and the evaluation of the Company’s operating and financial results.

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Information about Geographic Areas

The following table summarizes the Company’s revenues by geography based on the ordering location of the customer. Because the Company sells its products primarily to other sellers of technology products and not to end users, revenues by geography as presented below may not accurately reflect geographic end-user demand for its products.

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In thousands)
North America*	$	146,650	$	158,969
Asia		373,933		414,022
Europe and the Middle East		48,053		49,433
Total	$	568,636	$	622,424

* Primarily the United States.

Information about Product Groups

The following table presents the Company’s revenues by product groups:

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In thousands)
Storage products	$	437,901	$	488,469
Networking products		92,603		107,022
Other		38,132		26,933
Total	$	568,636	$	622,424

Note 10 — Income Taxes

The Company recorded income tax benefits of $2.3 million and $49.1 million for the three months ended March 31, 2013 and April 1, 2012, respectively.

The income tax benefit for the three months ended March 31, 2013 included a reversal of $8.6 million of liabilities for uncertain tax positions, which included previously unrecognized tax benefits of $3.8 million and interest and penalties of $4.8 million, as a result of the expiration of statutes of limitations in multiple jurisdictions.

The income tax benefit for the three months ended April 1, 2012 included a tax benefit of approximately $43.2 million due to the release of valuation allowance resulting from the net deferred tax liabilities recorded as part of the SandForce purchase price allocation. The income tax benefit for the three months ended April 1, 2012 also included a reversal of $10.2 million of liabilities for uncertain tax positions, which included previously unrecognized tax benefits of $5.2 million and interest and penalties of $5.0 million, as a result of the expiration of statutes of limitations in multiple jurisdictions.

The Company computes its tax provision using an estimated annual tax rate. The Company excludes certain loss jurisdictions from the computation of the estimated annual rate when no benefit can be realized on those losses. Historically, the Company has sustained losses from its U.S. operations and, as a result, has maintained a full valuation allowance against U.S. net deferred tax assets. The Company recently achieved profitability in the U.S., however, management does not believe there is sufficient positive evidence to reach a conclusion that it is more likely than not that the Company will generate sufficient future taxable income in the U.S. to realize the benefits of its deferred tax assets. Depending on future results and projected trends, it is reasonably possible that Company may determine in the foreseeable future that it is more likely than not that a significant portion of its U.S. deferred tax assets will be realized, resulting in a release of a significant portion of the valuation allowance.

As of March 31, 2013, the Company had $195.3 million of unrecognized tax benefits, for which the Company is unable to make a reasonably reliable estimate as to when cash settlement with a taxing authority may occur. It is reasonably possible that the total amount of unrecognized tax benefits will increase or decrease in the next 12 months. Such changes could occur based on the normal expiration of statutes of limitations or the possible conclusion of ongoing tax audits in various jurisdictions around the world. If those events occur within the next 12 months, the Company estimates that the unrecognized tax benefits, plus accrued interest and penalties, could decrease by up to $23.8 million.

Note 11 — Related Party Transactions

A member of the Company’s board of directors is also a member of the board of directors of Seagate Technology (“Seagate”). The Company sells semiconductors used in storage product applications to Seagate for prices comparable to those charged to an unrelated third party. Revenues from sales by the Company to Seagate were $153.7 million and $207.0 million for the three months ended March 31, 2013 and April 1, 2012, respectively. The Company had accounts receivable from Seagate of $86.7 million and $94.0 million as of March 31, 2013 and December 31, 2012, respectively.

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The Company has an equity interest in a joint venture, Silicon Manufacturing Partners Pte Ltd. (“SMP”), with GLOBALFOUNDRIES, a manufacturing foundry for integrated circuits. SMP operates an integrated circuit manufacturing facility in Singapore. The Company owns a 51% equity interest in this joint venture and accounts for its ownership position under the equity method of accounting. The Company is effectively precluded from unilaterally taking any significant action in the management of SMP due to GLOBALFOUNDRIES’ significant participatory rights under the joint venture agreement. Because of GLOBALFOUNDRIES’ approval rights, the Company cannot make any significant decisions regarding SMP without GLOBALFOUNDRIES’ approval, despite the 51% equity interest. In addition, the General Manager, who is responsible for the day-to-day management of SMP, is appointed by GLOBALFOUNDRIES, and GLOBALFOUNDRIES provides day-to-day operational support to SMP.

The Company purchased $9.4 million and $12.2 million of inventory from SMP during the three months ended March 31, 2013 and April 1, 2012, respectively. As of March 31, 2013 and December 31, 2012, the amounts payable to SMP were $6.2 million and $9.2 million, respectively.

Note 12 — Commitments, Contingencies and Legal Matters

Purchase Commitments

The Company maintains purchase commitments with certain suppliers, primarily for raw materials and manufacturing services and for some non-production items. Purchase commitments for inventory materials are generally restricted to a forecasted time horizon as mutually agreed upon between the parties. This forecasted time horizon can vary for different suppliers. As of March 31, 2013, the Company had purchase commitments of $350.4 million, which are due through 2016.

The Company has a take-or-pay agreement with SMP under which it has agreed to purchase 51% of the managed wafer capacity from SMP’s integrated circuit manufacturing facility, and GLOBALFOUNDRIES has agreed to purchase the remaining managed wafer capacity. SMP determines its managed wafer capacity each year based on forecasts provided by the Company and GLOBALFOUNDRIES. If the Company fails to purchase its required commitments, it will be required to pay SMP for the fixed costs associated with the unpurchased wafers. GLOBALFOUNDRIES is similarly obligated with respect to the wafers allotted to it. The agreement may be terminated by either party upon two years written notice. The agreement may also be terminated for material breach, bankruptcy or insolvency.

Guarantees

Product Warranties:

The following table sets forth a summary of changes in product warranties:

	Accrued Warranties
	(In thousands)
Balance as of December 31, 2012	$	5,426
Accruals for warranties issued during the period		107
Adjustments to pre-existing accruals (including changes in estimates)		395
Settlements made during the period (in cash or in kind)		(295	)
Balance as of March 31, 2013	$	5,633

Standby Letters of Credit:

The Company had outstanding obligations relating to standby letters of credit of $4.2 million and $4.1 million, respectively, as of March 31, 2013 and December 31, 2012. Standby letters of credit are financial guarantees provided by third parties for leases, customs and certain self-insured risks. If the guarantees are called, the Company must reimburse the provider of the guarantee. The fair value of the letters of credit approximates the contract amounts. The standby letters of credit generally renew annually.

Indemnifications

The Company is a party to a variety of agreements pursuant to which it may be obligated to indemnify the other party. These obligations arise primarily in connection with sales contracts, license agreements or agreements for the sale of assets, under which the Company customarily agrees to hold the other party harmless against losses arising from a breach of warranties, representations and covenants related to such matters as title to assets sold, validity of certain intellectual property rights, non-infringement of third-party rights, and certain income tax-related matters. In each of these circumstances, payment by the Company is typically subject to the other party making a claim to and cooperating with the Company pursuant to the procedures specified in the particular contract. This usually allows the Company to challenge the other party’s claims or, in case of breach of intellectual property representations or covenants, to control the defense or settlement of any third-party claims brought against the other party. Further, the Company’s obligations under these agreements may be limited in terms of activity (typically to replace or correct the products or terminate the agreement with a refund to the other party), duration and/or amounts. In some instances, the Company may have recourse against third parties covering certain payments made by the Company.

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Legal Matters

On December 6, 2006, Sony Ericsson Mobile Communications USA Inc. (“Sony Ericsson”) filed a lawsuit against Agere Systems Inc. (“Agere”), which LSI acquired in 2007, in Wake County Superior Court in North Carolina, alleging unfair and deceptive trade practices, fraud and negligent misrepresentation in connection with Agere’s engagement with Sony Ericsson to develop a wireless data card for personal computers. The complaint claimed an unspecified amount of damages and sought compensatory damages, treble damages and attorneys’ fees. In August, 2007, the case was dismissed for improper venue. On October 22, 2007, Sony Ericsson filed a lawsuit in the Supreme Court of the State of New York, New York County against LSI, raising substantially the same allegations and seeking substantially the same relief as the North Carolina proceeding. In January 2010, Sony Ericsson amended its complaint by adding claims for fraudulent concealment and gross negligence. On August 4, 2011, the court granted LSI’s motion for summary judgment in this matter and ordered the dismissal of all of Sony Ericsson’s claims. Sony Ericsson appealed this decision. On January 24, 2013, the New York Appellate Division unanimously affirmed the lower court’s ruling. On April 2, 2013, the New York Court of Appeals denied Sony Ericsson’s motion seeking to appeal this ruling.

On March 23, 2007, CIF Licensing, LLC, d/b/a GE Licensing (“GE”) filed a lawsuit against Agere Systems, which is now a subsidiary of LSI, in the United States District Court for the District of Delaware, asserting that Agere products infringed patents in a portfolio of patents GE acquired from Motorola. GE asserted that four of the patents cover inventions relating to modems. The court postponed hearing motions based on Agere’s defenses until after the trial, and did not allow Agere to present evidence on its defenses at trial. On February 17, 2009, the jury in this case returned a verdict finding that three of the four patents were invalid and that Agere products infringed the one patent found to be valid and awarding GE $7.6 million for infringement of that patent. The jury also found Agere’s infringement was willful, which means that the judge could have increased the amount of damages up to three times the original amount. If the jury’s verdict had been entered by the court, Agere expected to be required to pay interest from the date of infringing sales. On February 17, 2010, the court issued an order granting GE’s summary judgment motions seeking to bar Agere’s defenses of laches, exhaustion, and license and denying Agere’s summary judgment motions concerning the same defenses. On July 30, 2010, the court held that one of the patents found invalid by the jury was valid. On December 3, 2012, the court affirmed its prior grant of GE’s summary judgment motions seeking to bar Agere’s defenses of laches and license, but ordered that a trial go forward regarding Agere’s exhaustion defense. On April 24, 2013, following a court-ordered mediation, LSI and GE settled this lawsuit. The settlement did not have a material impact on LSI’s results of operations or financial condition.

In addition to the foregoing, the Company and its subsidiaries are parties to other litigation matters and claims in the normal course of business. The Company does not believe, based on currently available facts and circumstances, that the final outcome of these other matters, taken individually or as a whole, will have a material adverse effect on the Company’s consolidated results of operations or financial position. However, the pending unsettled lawsuits may involve complex questions of fact and law and may require the expenditure of significant funds and the diversion of other resources to defend. From time to time, the Company may enter into confidential discussions regarding the potential settlement of such lawsuits. However, there can be no assurance that any such discussions will occur or will result in a settlement. Moreover, the settlement of any pending litigation could require the Company to incur substantial costs and, in the case of the settlement of any intellectual property proceeding against the Company, may require the Company to obtain a license to a third-party’s intellectual property that could require royalty payments in the future and the Company to grant a license to certain of its intellectual property to a third party under a cross-license agreement. The results of litigation are inherently uncertain, and material adverse outcomes are possible.

The Company has not provided accruals for any legal matters in its financial statements as potential losses for such matters are not considered probable and reasonably estimable. However, because such matters are subject to many uncertainties, the ultimate outcomes are not predictable, and there can be no assurances that the actual amounts required to satisfy any liabilities arising from the matters described above will not have a material adverse effect on the Company’s consolidated results of operations, financial position or cash flows.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This management’s discussion and analysis should be read in conjunction with the other sections of this Form 10-Q, including Part 1, Item 1-“Financial Statements.”

Where more than one significant factor contributed to changes in results from year to year, we have quantified these factors throughout Management’s Discussion and Analysis of Financial Condition and Results of Operations where practicable and material to understanding the discussion.

OVERVIEW

We design, develop and market complex, high-performance storage and networking semiconductors. We offer a broad portfolio of capabilities including custom and standard product integrated circuits that are used in hard disk drives, solid state drives, high-speed communications systems, computer servers, storage systems and personal computers. We deliver our products to our customers as stand-alone integrated circuits as well as incorporated onto circuit boards that offer additional functionality. We also license our intellectual property to other entities.

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On January 3, 2012, we acquired SandForce, Inc., a provider of flash storage processors for enterprise and client flash solutions and solid state drives, for total consideration of approximately $346.4 million, net of cash acquired. We acquired SandForce to enhance our competitive position in the PCIe^® flash adapter space where LSI’s products already used SandForce flash storage processors. Additionally, the combination of LSI’s custom capability and SandForce’s standard product offerings allows us to offer a full range of products aimed at the growing flash storage processor market for ultrabook, notebook and enterprise solid state drives and other flash memory-based solutions.

We derive the majority of our revenues from sales of products for the hard disk and solid state drive, server and networking equipment end markets and our revenues depend on market demand for these types of products. We believe that these markets offer us attractive opportunities because of the growing demand to create, store, manage and move digital content efficiently.

Our products are sold primarily to original equipment manufacturers, or OEMs, in the server, storage and networking industries. We also sell some of our products through a network of resellers and distributors.

The markets in which we operate are highly competitive and our revenues depend on our ability to compete successfully. We face competition not only from makers of products similar to ours, but also from competing technologies.

During the first quarter of 2013, we reported revenues of $568.6 million, compared to $622.4 million for the first quarter of 2012. For the first quarter of 2013, we reported net income of $18.4 million, or $0.03 per diluted share, compared to $75.2 million, or $0.13 per diluted share, for the first quarter of 2012.

Our board of directors authorized a stock repurchase program of up to $500.0 million on August 1, 2012. During the first quarter of 2013, we repurchased 8.6 million shares for $60.8 million under this program. As of March 31, 2013, $417.9 million remained available for stock repurchases. Future purchases under the stock repurchase program are expected to be funded with available cash, cash equivalents and short-term investments. We ended the first quarter of 2013 with cash and cash equivalents, together with short-term investments, of $658.5 million, compared to $676.0 million at the end of 2012.

A number of hard disk drive manufacturers have production facilities in Thailand. In the fall of 2011, flooding there forced many of these facilities to stop production. As the industry recovered in early 2012, our revenues benefited. Since late 2012, sales of personal computers have been weak and we expect this to continue in the near term, affecting sales of hard disk and solid state drives and our revenues from semiconductors for hard disk and solid state drives. We also believe that general economic conditions remain weak, and are resulting in reduced spending on information technology products in general, which is also affecting our revenues. Our networking revenues are closely tied to capital spending by wireless telecommunications carriers who have been limiting their capital expenditures in recent quarters. Some large carriers have indicated that they may increase their expenditures later in 2013.

In light of this environment, we are working to manage our operating expenses while at the same time continuing work on products under development. We are focusing our research and development operations on products that we believe provide favorable growth opportunities for our business. We are also working to expand our sales of products in newer areas such as flash memory-based server adapter cards, where we are working directly with large, internet-based datacenter operators, in addition to our more traditional customer base of OEMs and distributors.

RESULTS OF OPERATIONS

Revenues

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In millions)
Revenues	$	568.6	$	622.4

Revenues decreased by $53.8 million, or 8.6%, for the three months ended March 31, 2013 as compared to the three months ended April 1, 2012. The decrease reflected lower unit sales of semiconductors used in hard disk drives and our older networking products in the first quarter of 2013. In addition, revenues in the first quarter of 2012 reflected temporarily higher unit sales of semiconductors used in hard disk drives as a result of the recovery from the Thailand flooding, which had adversely impacted the hard disk drive industry in late 2011. These decreases were partially offset by increased unit sales from the ramping of flash memory-based storage products and higher intellectual property licensing revenues in the first quarter of 2013.

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Significant Customers:

The following table provides information about sales to Seagate, which was our only customer that accounted for 10% or more of our revenues in the first quarter of each of 2013 and 2012:

	Three Months Ended
	March 31, 2013			April 1, 2012
Percentage of revenues		27	%		33	%

Revenues by Geography:

The following table summarizes our revenues by geography based on the ordering location of the customer. Because we sell our products primarily to other sellers of technology products and not to end users, the information in the table below may not accurately reflect geographic end-user demand for our products.

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In millions)
North America*	$	146.6	$	159.0
Asia		373.9		414.0
Europe and the Middle East		48.1		49.4
Total	$	568.6	$	622.4

* Primarily the United States.

Revenues in Asia and North America decreased by $40.1 million, or 9.7%, and $12.4 million, or 7.8%, respectively for the three months ended March 31, 2013 as compared to the three months ended April 1, 2012. The decreases in both regions were primarily attributable to lower unit sales of semiconductors used in hard disk drives and our older networking products in the first quarter of 2013. In addition, revenues in the first quarter of 2012 reflected temporarily higher unit sales of semiconductors used in hard disk drives as a result of the recovery from the Thailand flooding, which had adversely impacted the hard disk drive industry in late 2011. These decreases were partially offset by increased unit sales from the ramping of flash memory-based storage products and higher intellectual property licensing revenues in the first quarter of 2013.

Revenues by Product Groups:

The following table presents our revenues by product groups:

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In millions)
Storage products	$	437.9	$	488.5
Networking products		92.6		107.0
Other		38.1		26.9
Total	$	568.6	$	622.4

Revenues from storage products decreased by $50.6 million, or 10.4%, for the three months ended March 31, 2013 as compared to the three months ended April 1, 2012. This was attributable to lower unit sales of semiconductors used in hard disk drives in the first quarter of 2013 and temporarily higher unit sales of semiconductors used in hard disk drives in the first quarter of 2012 as a result of the recovery from the Thailand flooding, which had adversely impacted the hard disk drive industry in late 2011. These decreases were partially offset by increased unit sales from the ramping of flash memory-based storage products in the first quarter of 2013.

Revenues from networking products decreased by $14.4 million, or 13.5%, for the three months ended March 31, 2013 as compared to the three months ended April 1, 2012. The decrease was primarily the result of lower unit sales of semiconductors used in our older networking products.

Other revenues increased by $11.2 million, or 41.6%, for the three months ended March 31, 2013 as compared to the three months ended April 1, 2012. The increase primarily resulted from higher intellectual property licensing revenues in the first quarter of 2013.

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Gross Profit Margin

	Three Months Ended
	March 31, 2013			April 1, 2012
	(Dollars in millions)
Gross profit margin	$	289.5		$	286.9
Percentage of revenues		50.9	%		46.1	%

Various factors affect and may continue to affect our product gross margin. These factors include, but are not limited to, changes in our production mix and volume of product sales, the timing of production ramps and margin structures of new products, the positions of our products in their respective life cycles, the effects of competition, the price of commodities used in our products, provisions for excess and obsolete inventories, changes in the costs charged by foundry, assembly and test subcontractors, and amortization of acquired intangible assets.

Gross profit margin as a percentage of revenues increased by 4.8% for the three months ended March 31, 2013 as compared to the three months ended April 1, 2012. The increase was primarily attributable to sales of higher margin products, offset in part by decreased revenues with a similar level of fixed costs in the first quarter of 2013 as compared to the first quarter of 2012.

Research and Development

	Three Months Ended
	March 31, 2013			April 1, 2012
	(Dollars in millions)
Research and development	$	171.3		$	169.9
Percentage of revenues		30.1	%		27.3	%

R&D expense increased by $1.4 million, or 0.8%, for the three months ended March 31, 2013 as compared to the three months ended April 1, 2012. The increase was primarily attributable to higher compensation-related expense and increased spending to support our new product development projects.

Selling, General and Administrative

	Three Months Ended
	March 31, 2013			April 1, 2012
	(Dollars in millions)
Selling, general and administrative	$	89.5		$	90.1
Percentage of revenues		15.7	%		14.5	%

SG&A expense decreased by $0.6 million, or 0.7%, for the three months ended March 31, 2013 as compared to the three months ended April 1, 2012. The decrease was primarily attributable to lower stock-based compensation expense as a result of a $4.5 million charge in the first quarter of 2012 related to the accelerated vesting of stock options and restricted stock units for certain SandForce employees. The decrease was offset in part by an increase in litigation costs and higher sales and marketing expenses, including higher compensation-related expenses to support future revenue growth.

Restructuring of Operations and Other Items, net

The following table summarizes items included in restructuring of operations and other items, net:

	Three Months Ended
	March 31, 2013			April 1, 2012
	(In millions)
Lease and contract terminations	$	1.8	(a)	$	1.6	(a)
Employee severance and benefits		4.4			0.5
Total restructuring expense		6.2			2.1
Other items, net		14.3	(b)		13.4	(c)
Total restructuring of operations and other items, net	$	20.5		$	15.5

(a) Includes lease obligation costs for facilities that we ceased to use, changes in estimates, changes in time value and on-going expenditures related to previously vacated facilities.

(b) Primarily consists of $12.6 million of costs related to litigation settlements.

(c) Primarily consists of $8.3 million of SandForce acquisition-related costs and $4.6 million of costs related to the transition service agreement associated with the sale of the external storage systems business.

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Interest Income and Other, net

The following table summarizes components of interest income and other, net:

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In millions)
Interest income	$	0.3	$	1.6
Other income, net		7.6		13.1
Total	$	7.9	$	14.7

The $1.3 million decrease in interest income for the three months ended March 31, 2013 as compared to the three months ended April 1, 2012 primarily resulted from lower returns on investments in the first quarter of 2013 as compared to the first quarter of 2012.

Other income, net, for the three months ended March 31, 2013 primarily included $6.1 million of insurance proceeds for covered losses from the 2011 Thailand flooding. We do not expect any further insurance recoveries related to the Thailand flooding. Other income, net, for the three months ended April 1, 2012 primarily included a $5.8 million gain as a result of re-measuring our pre-acquisition equity interest in SandForce to estimated fair value and $4.5 million of income for services provided under the transition service agreements entered into in connection with the sale of the external storage systems business.

Benefit from Income Taxes

We recorded income tax benefits of $2.3 million and $49.1 million for the three months ended March 31, 2013 and April 1, 2012, respectively.

The income tax benefit for the three months ended March 31, 2013 included a reversal of $8.6 million of liabilities for uncertain tax positions, which included previously unrecognized tax benefits of $3.8 million and interest and penalties of $4.8 million, as a result of the expiration of statutes of limitations in multiple jurisdictions.

The income tax benefit for the three months ended April 1, 2012 included a tax benefit of approximately $43.2 million due to the release of valuation allowance resulting from the net deferred tax liabilities recorded as part of the SandForce purchase price allocation. The income tax benefit for the three months ended April 1, 2012 also included a reversal of $10.2 million of liabilities for uncertain tax positions, which included previously unrecognized tax benefits of $5.2 million and interest and penalties of $5.0 million, as a result of the expiration of statutes of limitations in multiple jurisdictions.

We compute our tax provision using an estimated annual tax rate. We exclude certain loss jurisdictions from the computation of the estimated annual rate when no benefit can be realized on those losses. Historically, we have sustained losses from our U.S. operations and, as a result, have maintained a full valuation allowance against U.S. net deferred tax assets. We recently achieved profitability in the U.S., however, we do not believe there is sufficient positive evidence to reach a conclusion that it is more likely than not that we will generate sufficient future taxable income in the U.S. to realize the benefits of our deferred tax assets. Depending on future results and projected trends, it is reasonably possible that we may determine in the foreseeable future that it is more likely than not that a significant portion of our U.S. deferred tax assets will be realized, resulting in a release of a significant portion of the valuation allowance.

FINANCIAL CONDITION, CAPITAL RESOURCES AND LIQUIDITY

Cash, cash equivalents, short-term investments and cash generated from our operations are our primary source of liquidity. Short-term investments consist primarily of U.S. government and agency securities. We believe that our existing liquid resources and cash generated from operations will be adequate to meet our operating and capital requirements and other obligations for more than the next 12 months. We may, however, find it desirable to obtain additional debt or equity financing. Such financing may not be available to us at all or on acceptable terms if we determine that it would be desirable to obtain additional financing.

Cash, cash equivalents and short-term investments decreased to $658.5 million as of March 31, 2013 from $676.0 million as of December 31, 2012. The decrease was mainly due to cash outflows for investing and financing activities, offset in part by cash inflows generated from operating activities as described below.

Working Capital

Working capital decreased by $18.6 million to $691.3 million as of March 31, 2013 from $709.9 million as of December 31, 2012. The decrease was attributable to the following:

• Accounts receivable decreased by $40.9 million primarily as a result of decreased revenues in the first quarter of 2013 as compared to the fourth quarter of 2012;

• Inventories decreased by $25.3 million, which primarily reflects our continued proactive management of inventory levels;

• Cash, cash equivalents and short-term investments decreased by $17.5 million primarily due to $60.8 million used to repurchase our common stock, $30.0 million used for purchases of investments, net of proceeds from maturities and sales and $25.0 million used for purchases of property and equipment, net of proceeds from sales, offset in part by net cash provided by operating activities of $62.8 million and proceeds from issuances of common stock of $8.2 million; and

20

• Prepaid expenses and other current assets decreased by $10.3 million primarily as a result of decreases in prepaid software maintenance.

These decreases in working capital were offset in part by the following:

• Accounts payable decreased by $39.4 million primarily due to a decrease in inventory purchases and the timing of invoice receipts and payments;

• Accrued salaries, wages and benefits decreased by $24.8 million primarily as a result of the timing of payments for salaries, benefits and performance-based compensation; and

• Other accrued liabilities decreased by $11.2 million primarily due to the utilization of restructuring reserves, and decreases in tax and other accruals.

Working capital decreased by $243.7 million to $718.1 million as of April 1, 2012 from $961.8 million as of December 31, 2011. The decrease was primarily attributable to the following:

• Cash, cash equivalents and short-term investments decreased by $312.4 million primarily due to $319.2 million used in connection with the acquisition of SandForce in January 2012, net of cash acquired, $65.0 million used for purchases of property and equipment, net of proceeds from sales, and $38.2 million used to repurchase our common stock, offset in part by proceeds from issuances of common stock of $65.3 million and net cash provided by operating activities of $50.2 million; and

• Accounts payable increased by $47.1 million primarily due to an increase in inventory purchases to support new product introductions and expected increases in product demand in future quarters and, to a lesser extent, due to the normal timing of invoice receipts and payments.

These decreases in working capital were offset in part by the following:

• Accounts receivable increased by $55.6 million primarily as a result of increased revenues in the first quarter of 2012 as compared to the fourth quarter of 2011;

• Other accrued liabilities decreased by $32.7 million primarily due to the utilization of restructuring reserves, payments of taxes and decreases in other accruals related to our operations;

• Inventories increased by $20.8 million as a result of increased inventory purchases to support new product introductions and expected increases in product demand in future quarters; and

• Accrued salaries, wages and benefits decreased by $5.0 million primarily as a result of the timing of payments for salaries, benefits and performance-based compensation.

Cash Provided by Operating Activities

During the three months ended March 31, 2013, we generated $62.8 million of cash from operating activities as a result of the following:

• Net income adjusted for non-cash items and other non-operating adjustments, which are quantified in our statements of cash flows included in Item 1;

• Offset in part by a net decrease of $32.6 million in assets and liabilities, including changes in working capital components, from December 31, 2012 to March 31, 2013, as discussed above.

During the three months ended April 1, 2012, we generated $50.2 million of cash from operating activities as a result of the following:

• Net income adjusted for non-cash items and other non-operating adjustments, which are quantified in our statements of cash flows included in Item 1;

• Offset in part by a net decrease of $55.8 million in assets and liabilities, including changes in working capital components, from December 31, 2011 to April 1, 2012, as discussed above.

Cash Used in Investing Activities

Cash used in investing activities for the three months ended March 31, 2013 was $55.0 million. Our investing activities during the three months ended March 31, 2013 were the following:

• Purchases of available-for-sale debt securities and other investments, net of proceeds from maturities and sales, of $30.0 million; and

• Purchases of property and equipment, net of proceeds from sales, totaling $25.0 million.

21

Cash used in investing activities for the three months ended April 1, 2012 was $395.9 million. Our investing activities during the three months ended April 1, 2012 were the following:

• $319.2 million of cash used in connection with the acquisition of SandForce;

• Purchases of property and equipment, net of proceeds from sales, totaling $65.0 million, including $45.5 million for our new headquarters; and

• Purchases of available-for-sale debt securities, net of proceeds from maturities and sales, of $11.7 million.

We expect capital expenditures to be approximately $85 million in 2013. We use semiconductor foundries and outside assembly and test companies to manufacture products, which enables us to have access to advanced manufacturing capacity without having to increase our capital spending requirements.

Cash Used in/Provided by Financing Activities

Cash used in financing activities for the three months ended March 31, 2013 was $52.6 million. This amount included $60.8 million used to repurchase our common stock, offset in part by $8.2 million of cash received from issuances of common stock under our employee stock plans.

Cash provided by financing activities for the three months ended April 1, 2012 was $27.1 million. This amount included $65.3 million of cash received from issuances of common stock under our employee stock plans, offset in part by $38.2 million used to repurchase our common stock.

We do not currently pay any cash dividends to our stockholders.

CONTRACTUAL OBLIGATIONS

The following table summarizes our contractual obligations as of March 31, 2013:

	Payments Due by Period
	Less Than 1 Year		1-3 Years		4-5 Years		After 5 Years		Other			Total
	(In millions)
Operating lease obligations	$	38.8	$	33.1	$	10.1	$	4.8	$	—		$	86.8
Purchase commitments		322.4		22.6		5.4		—		—			350.4
Pension contributions		36.4		*		*		*		*			36.4
Uncertain tax positions		—		—		—		—		99.1	**		99.1
Total	$	397.6	$	55.7	$	15.5	$	4.8	$	99.1		$	572.7

* We have pension plans covering certain U.S. employees and international employees. Although additional future contributions will be required, the amount and timing of these contributions will be affected by actuarial assumptions, the actual rate of return on plan assets, the level of market interest rates, legislation changes and the amount of voluntary contributions to the plans. The amount shown in the table represents our planned contributions to our pension plans during the remainder of 2013. Because any contributions for 2014 and later will depend on the value of the plan assets in the future and thus are uncertain, we have not included any amounts for 2014 and beyond in the above table.

** This amount represents the non-current tax payable obligation. We are unable to make a reasonably reliable estimate as to when cash settlement with a taxing authority may occur.

Operating Lease Obligations

We lease real estate and certain non-manufacturing equipment under non-cancellable operating leases. We also include non-cancellable obligations under certain software licensing arrangements in this category.

Purchase Commitments

We maintain purchase commitments with certain suppliers, primarily for raw materials and manufacturing services and for some non-production items. Purchase commitments for inventory materials are generally restricted to a forecasted time horizon as mutually agreed upon between the parties. This forecasted time horizon can vary for different suppliers.

Uncertain Tax Positions

As of March 31, 2013, we had $195.3 million of unrecognized tax benefits, for which we are unable to make a reasonably reliable estimate as to when cash settlement with a taxing authority may occur. It is reasonably possible that the total amount of unrecognized tax benefits will increase or decrease in the next 12 months. Such changes could occur based on the normal expiration of statutes of limitations or the possible conclusion of ongoing tax audits in various jurisdictions around the world. If those events occur within the next 12 months, we estimate that the unrecognized tax benefits, plus accrued interest and penalties, could decrease by up to $23.8 million.

22

Standby Letters of Credit

We had outstanding obligations relating to standby letters of credit of $4.2 million and $4.1 million, respectively, as of March 31, 2013 and December 31, 2012. Standby letters of credit are financial guarantees provided by third parties for leases, customs and certain self-insured risks. If the guarantees are called, we must reimburse the provider of the guarantee. The fair value of the letters of credit approximates the contract amounts. The standby letters of credit generally renew annually.

CRITICAL ACCOUNTING POLICIES

There have been no significant changes in our critical accounting estimates or significant accounting policies during the three months ended March 31, 2013 as compared to the discussion in Part II, Item 7 and in Note 2 to our financial statements in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2012.

RECENT ACCOUNTING PRONOUNCEMENTS

The information contained in Note 1 to our financial statements in Item 1 under the heading “Recent Accounting Pronouncement” is incorporated by reference into this Item 2.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

There have been no significant changes in the market risk disclosures during the three months ended March 31, 2013 as compared to the discussion in Part II, Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2012.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures: The Securities and Exchange Commission defines the term “disclosure controls and procedures” to mean a company’s controls and other procedures that are designed to ensure that information required to be disclosed in the reports that it files or furnishes under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act is accumulated and communicated to management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required or necessary disclosures. Our chief executive officer and chief financial officer have concluded, based on the evaluation of the effectiveness of the disclosure controls and procedures by our management with the participation of our chief executive officer and chief financial officer, as of the end of the period covered by this report, that our disclosure controls and procedures were effective for this purpose.

Changes in Internal Control: During the first quarter of 2013, there were no changes in our internal control over financial reporting that materially affected or are reasonably likely to materially affect our internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

This information is included under the caption “Legal Matters” in Note 12 to our financial statements in Item 1 of Part I.

Item 1A. Risk Factors

Set forth below are risks and uncertainties, many of which are discussed in greater detail in our Annual Report on Form 10-K for the year ended December 31, 2012, that, if they were to occur, could materially adversely affect our business or could cause our actual results to differ materially from the results contemplated by the forward-looking statements in this report and other public statements we make:

• We depend on a small number of customers. The loss of, or a significant reduction in revenues from, any of these customers would harm our results of operations.

• A significant portion of our revenues is derived from the sale of products for use in hard disk drives and dynamics in that industry as well as competing technologies could have an adverse impact on our revenues.

• We operate in intensely competitive markets, and our failure to compete effectively would harm our results of operations.

• Customer orders and ordering patterns can change quickly, making it difficult for us to predict our revenues and making it possible that our actual revenues may vary materially from our expectations, which could harm our results of operations and stock price.

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• We depend on outside suppliers to manufacture, assemble, package and test our products; accordingly, any failure to secure and maintain sufficient manufacturing capacity at attractive prices or to maintain the quality of our products could harm our business and results of operations.

• Failure to qualify our semiconductor products or our suppliers’ manufacturing lines with key customers could harm our business and results of operations.

• We are seeking to expand our business by selling to new types of customers and may be unsuccessful in doing so, which could have a negative impact on our results of operations.

• If we fail to keep pace with technological advances, or if we pursue technologies that do not become commercially accepted, customers may not buy our products and our results of operations may be harmed.

• Any defects in our products could harm our reputation, customer relationships and results of operations.

• Our pension plans are underfunded, and may require significant future contributions, which could have an adverse impact on our business.

• We may be subject to intellectual property infringement claims and litigation, which could cause us to incur significant expenses or prevent us from selling our products.

• If we are unable to protect or assert our intellectual property rights, our business and results of operations may be harmed.

• Volatility in the price of commodities used in the production of our products or lack of availability of these materials could negatively impact our results of operations.

• We are exposed to legal, business, political and economic risks associated with our international operations.

• We use indirect channels of product distribution over which we have limited control.

• We have engaged, and will likely continue to engage, in acquisitions and strategic alliances, which may disrupt our business or may not be successful and could harm our business and operating results.

• The semiconductor industry is highly cyclical, which may cause our operating results to fluctuate.

• Our failure to attract, retain and motivate key employees could harm our business.

• Our operations and our suppliers’ operations are subject to natural disasters and other events outside of our control that may disrupt our business and harm our operating results.

• Laws and regulations to which we are subject, as well as customer requirements in the area of environmental protection and social responsibility, could impose substantial costs on us and may adversely affect our business.

• We rely on our information technology systems to run our business and any failure of these systems or any malicious intrusion into those systems could result in harm to our business, results of operations and financial condition.

• Our blank check preferred stock and Delaware law contain provisions that may inhibit potential acquisition bids, which may harm our stock price, discourage merger offers or prevent changes in our management.

• Class action litigation due to stock price volatility or other factors could cause us to incur substantial costs and divert our management’s attention and resources.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table contains information about the repurchases of our common stock during the quarter ended March 31, 2013.

Issuer Purchases of Equity Securities

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
January 1 — January 31, 2013		202,824	$	7.40		202,824	$	477,128,738
February 1 — February 28, 2013		4,385,582	$	7.16		4,385,582	$	445,736,108
March 1 — March 31, 2013		4,046,400	$	6.89		4,046,400	$	417,864,085
Total		8,634,806	$	7.04		8,634,806

On August 1, 2012, our board of directors authorized the repurchase of up to $500.0 million of our common stock. The repurchases reported in the table above were made pursuant to this authorization.

Item 6. Exhibits

See the Exhibit Index, which follows the signature page to this report.

24

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		LSI CORPORATION
		(Registrant)
Date: May 8, 2013	By	/s/ Bryon Look
		Bryon Look
		Executive Vice President, Chief Financial Officer and Chief Administrative Officer

25

EXHIBIT INDEX

31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a)
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a)
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350
101.INS	XBRL instance document
101.SCH	XBRL taxonomy extension schema document
101.CAL	XBRL taxonomy extension calculation linkbase document
101.DEF	XBRL taxonomy extension definition linkbase document
101.LAB	XBRL taxonomy extension label linkbase document
101.PRE	XBRL taxonomy extension presentation linkbase document

26

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

AS ADOPTED PURSUANT TO

SECTION 302(a) OF THE SARBANES-OXLEY ACT OF 2002

I, Abhijit Y. Talwalkar, certify that:

1. I have reviewed this quarterly report on Form 10-Q of LSI Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 8, 2013

By:	/s/ Abhijit Y. Talwalkar
	Name: Abhijit Y. Talwalkar
	Title: President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

AS ADOPTED PURSUANT TO

SECTION 302(a) OF THE SARBANES-OXLEY ACT OF 2002

I, Bryon Look, certify that:

1. I have reviewed this quarterly report on Form 10-Q of LSI Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 8, 2013

By:	/s/ Bryon Look
	Name:	Bryon Look
	Title:	Executive Vice President, Chief Financial Officer
		and Chief Administrative Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Abhijit Y. Talwalkar, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of LSI Corporation on Form 10-Q for the quarterly period ended March 31, 2013 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of LSI Corporation.

By:	/s/ Abhijit Y. Talwalkar
	Name:	Abhijit Y. Talwalkar
	Title:	President and Chief Executive Officer
	Date:	May 8, 2013

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Bryon Look, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of LSI Corporation on Form 10-Q for the quarterly period ended March 31, 2013 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of LSI Corporation.

By:	/s/ Bryon Look
	Name:	Bryon Look
	Title:	Executive Vice President, Chief Financial Officer and Chief Administrative Officer
	Date:	May 8, 2013

XML

Benefit Obligations - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract]
Interest per year on cash-balance accounts	4.00%
Company contribution to pension plans	$ 15.3
Expected contribution to pension plan for the reminder of 2013	$ 36.4

XML

Related Party Transactions - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012	Dec. 31, 2012
Silicon Manufacturing Partners Pte Ltd. [Member]
Related Party Transaction [Line Items]
Company's equity interest in SMP joint venture	51.00%
Purchase of inventory from SMP	$ 9.4	$ 12.2
Amounts payable to SMP	6.2		9.2
Seagate Technology [Member]
Related Party Transaction [Line Items]
Revenues from sales to Seagate	153.7	207.0
Accounts receivable from Seagate	$ 86.7		$ 94.0

XML

Supplemental Financial Information - Reconciliation of Basic and Diluted Shares (Detail) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Supplemental Financial Information [Abstract]
Basic shares	550,227	566,709
Dilutive effect of stock options, employee stock purchase rights and restricted stock unit awards	16,865	23,847
Diluted shares	567,092	590,556

XML

Commitments, Contingencies and Legal Matters - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	1 Months Ended	3 Months Ended
	Feb. 28, 2009	Mar. 31, 2013	Dec. 31, 2012
Commitments And Contingencies Disclosure [Abstract]
Total purchase commitments due through 2016		$ 350.4
Company's percentage of take-or-pay agreement with SMP		51.00%
Terms in which take-or-pay agreement may be terminated by either party		Upon two years written notice
Outstanding obligations related to standby letters of credit		4.2	4.1
Period of renewal for standby letter of credit		Annually
Jury award to GE for patent infringement	$ 7.6

XML

Supplemental Financial Information - Schedule of Inventories (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Supplemental Financial Information [Abstract]
Raw materials	$ 71	$ 176
Work-in-process	39,281	52,003
Finished goods	141,719	154,144
Total inventories	$ 181,071	$ 206,323

XML

Stock-Based Compensation Expense - Summary of Unvested Performance-Based Restricted Stock (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Performance-Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested RSUs, Weighted-Average Grant Date Fair Value per Share, Beginning balance	$ 7.29
Granted, Weighted-Average Grant Date Fair Value Per Share	$ 6.89
Vested, Weighted-Average Grant Date Fair Value per Share	$ 7.87
Forfeited, Weighted-Average Grant Date Fair Value per Share	$ 6.40
Unvested RSUs, Weighted-Average Grant Date Fair Value per Share, Ending of period	$ 6.93
Performance-based RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested restricted stock units, Beginning Balance	5,634
Granted, Number of Units	1,441
Vested, Number of Units	(2,324)
Forfeited, Number of Units	(330)
Unvested restricted stock units, Ending Balance	4,421

XML

Segment, Geographic and Product Information (Tables)

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Company's Revenues by Geography Based on Ordering Location of Customer

The following table summarizes the Company’s revenues by geography based on the ordering location of the customer. Because the Company sells its products primarily to other sellers of technology products and not to end users, revenues by geography as presented below may not accurately reflect geographic end-user demand for its products.

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In thousands)
North America*	$	146,650	$	158,969
Asia		373,933		414,022
Europe and the Middle East		48,053		49,433
Total	$	568,636	$	622,424

* Primarily the United States.

Company's Revenues by Product Groups

The following table presents the Company’s revenues by product groups:

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In thousands)
Storage products	$	437,901	$	488,469
Networking products		92,603		107,022
Other		38,132		26,933
Total	$	568,636	$	622,424

XML

Derivative Instruments - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012	Dec. 31, 2012
Cash-Flow Hedges [Member]
Derivative [Line Items]
Period to evaluate and calculate the effectiveness of each hedge	Quarterly
Maturity period of forward contract	Within twelve months
Total notional value of the Company's outstanding forward contracts, designated as foreign-currency cash-flow hedges	$ 40.3		$ 39.8
Other Foreign Currency Hedges [Member]
Derivative [Line Items]
Maturity period of forward contract	Within three months
Total notional value of outstanding forward contracts, not designated as hedges under hedge accounting	40.4		31.6
Gains (losses) on other foreign-currency hedges recognized in interest income and other, net	$ (1.2)	$ 1.1

XML

Cash Equivalents and Investments - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Apr. 01, 2012	Mar. 31, 2013	Dec. 31, 2012
Investments Debt And Equity Securities [Abstract]
Carrying value of company's non-marketable securities		$ 42.8	$ 42.1
Gain recognized from re-measurement of pre-acquisition equity interest to estimated fair value	$ 5.8
Number of investments in an unrealized loss position		107

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Restructuring and Other Items - Summary of Significant Activity Within, and Components of Restructuring Obligations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Restructuring Cost and Reserve [Line Items]
Beginning Balance	$ 17,994
Expense	6,154	2,065
Utilized	(11,411)
Ending Balance	12,737
Lease and contract terminations [Member]
Restructuring Cost and Reserve [Line Items]
Beginning Balance	12,991
Expense	1,768	1,634
Utilized	(6,441)
Ending Balance	8,318
Employee severance and benefits [Member]
Restructuring Cost and Reserve [Line Items]
Beginning Balance	5,003
Expense	4,386	431
Utilized	(4,970)
Ending Balance	$ 4,419

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Segment, Geographic and Product Information - Company's Revenues by Product Groups (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 568,636	$ 622,424
Storage products [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	437,901	488,469
Networking products [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	92,603	107,022
Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 38,132	$ 26,933

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Supplemental Financial Information - Accumulated Other Comprehensive Loss, Net of Taxes (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Supplemental Financial Information [Abstract]
Foreign currency translation adjustments, Beginning Balance	$ 39,881
Net unrealized gain on investments, Beginning Balance	4,484
Net unrealized gain on derivatives, Beginning Balance	224
Defined benefit pension and post-retirement plans, Beginning Balance	(622,919)
Total accumulated other comprehensive loss, Beginning Balance	(578,330)
Foreign currency translation adjustments, Other Comprehensive Income before Reclassifications	(342)
Net unrealized gain on investments, Other Comprehensive Income before Reclassifications	1,240
Net unrealized gain on derivatives, Other Comprehensive Income before Reclassifications	(32)
Defined benefit pension and post-retirement plans, Other Comprehensive Income before Reclassifications
Total accumulated other comprehensive loss, Other Comprehensive Income before Reclassifications	866
Foreign currency translation adjustments, Amounts Reclassified from Accumulated Other Comprehensive Loss
Net unrealized gain on investments, Amounts Reclassified from Accumulated Other Comprehensive Loss	17
Net unrealized gain on derivatives, Amounts Reclassified from Accumulated Other Comprehensive Loss	(162)
Defined benefit pension and post-retirement plans, Amounts Reclassified from Accumulated Other Comprehensive Loss	5,044
Total accumulated other comprehensive loss, Amounts Reclassified from Accumulated Other Comprehensive Loss	4,899
Foreign currency translation adjustments, Net Current Period Other Comprehensive Income	(342)
Net unrealized gain on investments, Net Current Period Other Comprehensive Income	1,257
Net unrealized gain on derivatives, Net Current Period Other Comprehensive Income	(194)
Defined benefit pension and post-retirement plans, Net Current Period Other Comprehensive Income	5,044
Other comprehensive income, net of tax	5,765	6,925
Foreign currency translation adjustments, Ending Balance	39,539
Net unrealized gain on investments, Ending Balance	5,741
Net unrealized gain on derivatives, Ending Balance	30
Defined benefit pension and post-retirement plans, Ending Balance	(617,875)
Total accumulated other comprehensive loss, Ending Balance	$ (572,565)

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Common Stock Repurchases

3 Months Ended

Mar. 31, 2013

Equity [Abstract]

Common Stock Repurchases

Note 3 — Common Stock Repurchases

On August 1, 2012, the Company’s board of directors authorized a common stock repurchase program of up to $500.0 million of its common stock. As of March 31, 2013, $417.9 million remained available for repurchases under this program.

During the three months ended March 31, 2013, the Company repurchased 8.6 million shares for $60.8 million. During the three months ended April 1, 2012, the Company repurchased 4.6 million shares for $38.2 million. Repurchased shares are retired immediately after the repurchases are completed. Retirement of repurchased shares is recorded as a reduction of common stock and additional paid-in capital.

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Cash Equivalents and Investments - Company's Available-for-Sale Securities (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Long-term investments in equity securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale equity securities, Amortized Cost	$ 669	$ 669
Available-for-sale securities, Gross Unrealized Gain	1,283	1,020
Available-for-sale securities, Gross Unrealized Loss
Available-for-sale securities, Fair Value	1,952	1,689
Asset-backed and mortgage-backed securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	139,611	125,563
Available-for-sale securities, Gross Unrealized Gain	7,484	6,390
Available-for-sale securities, Gross Unrealized Loss	(829)	(1,097)
Available-for-sale securities, Fair Value	146,266	130,856
Government and agency securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	72,194	65,904
Available-for-sale securities, Gross Unrealized Gain	843	802
Available-for-sale securities, Gross Unrealized Loss	(2)	(6)
Available-for-sale securities, Fair Value	73,035	66,700
Corporate debt securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	9,885	5,864
Available-for-sale securities, Gross Unrealized Gain	124	137
Available-for-sale securities, Gross Unrealized Loss	(3)
Available-for-sale securities, Fair Value	10,006	6,001
Commercial paper [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	3,998	900
Available-for-sale securities, Gross Unrealized Gain
Available-for-sale securities, Gross Unrealized Loss
Available-for-sale securities, Fair Value	3,998	900
Total short-term debt securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	225,688	198,231
Available-for-sale securities, Gross Unrealized Gain	8,451	7,329
Available-for-sale securities, Gross Unrealized Loss	(834)	(1,103)
Available-for-sale securities, Fair Value	$ 233,305	$ 204,457

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Stock-Based Compensation Expense - Summary of Weighted-Average Assumptions in Fair Value of Option Grant (Detail) (USD $)	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Estimated grant date fair value per share	$ 2.33	$ 2.86
Expected life (years)	4 years 4 months 17 days	4 years 5 months 16 days
Risk-free interest rate	1.00%	1.00%
Volatility	49.00%	47.00%

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Stock-Based Compensation Expense - Stock-Based Compensation Expense, Net of Estimated Forfeitures (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 25,546	$ 30,834
Cost of revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	2,875	3,512
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	12,409	12,308
Selling, general and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 10,262	$ 15,014

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Commitments, Contingencies and Legal Matters - Summary of Changes in Product Warranties (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Commitments and Contingencies Disclosure [Abstract]
Balance	$ 5,426
Accruals for warranties issued during the period	107
Adjustments to pre-existing accruals (including changes in estimates)	395
Settlements made during the period (in cash or in kind)	(295)
Balance	$ 5,633

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Cash Equivalents and Investments - Gross Unrealized Losses and Fair Value of Company's Short-Term Investments (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous unrealized loss position, Less than 12 Months, Fair Value	$ 55,342	$ 56,581
Available-for-sale Securities, Continuous unrealized loss position, Less than 12 Months, Unrealized Losses	(754)	(1,024)
Available-for-sale Securities, Continuous unrealized loss position, Greater than 12 Months, Fair Value	3,728	4,141
Available-for-sale Securities, Continuous unrealized loss position, Greater than 12 Months, Unrealized Losses	(80)	(79)
Asset-backed and mortgage-backed securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous unrealized loss position, Less than 12 Months, Fair Value	47,476	38,280
Available-for-sale Securities, Continuous unrealized loss position, Less than 12 Months, Unrealized Losses	(749)	(1,018)
Available-for-sale Securities, Continuous unrealized loss position, Greater than 12 Months, Fair Value	3,728	4,141
Available-for-sale Securities, Continuous unrealized loss position, Greater than 12 Months, Unrealized Losses	(80)	(79)
Government and agency securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous unrealized loss position, Less than 12 Months, Fair Value	4,910	18,301
Available-for-sale Securities, Continuous unrealized loss position, Less than 12 Months, Unrealized Losses	(2)	(6)
Available-for-sale Securities, Continuous unrealized loss position, Greater than 12 Months, Fair Value
Available-for-sale Securities, Continuous unrealized loss position, Greater than 12 Months, Unrealized Losses
Corporate debt securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous unrealized loss position, Less than 12 Months, Fair Value	2,956
Available-for-sale Securities, Continuous unrealized loss position, Less than 12 Months, Unrealized Losses	(3)
Available-for-sale Securities, Continuous unrealized loss position, Greater than 12 Months, Fair Value
Available-for-sale Securities, Continuous unrealized loss position, Greater than 12 Months, Unrealized Losses

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Stock-Based Compensation Expense - Summary of Changes in Stock Options Outstanding (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Options outstanding beginning balance at December 31, 2012, Number of Shares	56,042
Granted, Number of Shares	6,247
Exercised, Number of Shares	(2,192)
Canceled, Number of Shares	(1,006)
Options outstanding ending balance at March 31, 2013, Number of Shares	59,091
Options exercisable at March 31, 2013, Number of Shares	39,726
Options outstanding, beginning balance at December 31, 2012, Weighted-Average Exercise Price Per Share	$ 5.75
Granted, Weighted-Average Exercise Price Per Share	$ 6.89
Exercised, Weighted-Average Exercise Price Per Share	$ 3.72
Canceled, Weighted-Average Exercise Price Per Share	$ 8.24
Options outstanding, ending balance at March 31, 2013, Weighted-Average Exercise Price Per Share	$ 5.90
Options exercisable at March 31, 2013, Weighted-Average Exercise Price Per Share	$ 5.87
Options outstanding at March 31, 2013, Weighted-Average Remaining Contractual Term	3 years 10 months 10 days
Options exercisable at March 31, 2013, Weighted-Average Remaining Contractual Term	2 years 8 months 19 days
Options outstanding at March 31, 2013, Aggregate Intrinsic Value	$ 85,227
Options exercisable at March 31, 2013, Aggregate Intrinsic Value	$ 62,059

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Stock-Based Compensation Expense - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Employee stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense, net of estimated forfeitures	$ 41.8
Period to recognize total unrecognized compensation expense, net of estimated forfeitures on a weighted-average basis	2 years 7 months 6 days
Service-based RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period to recognize total unrecognized compensation expense, net of estimated forfeitures on a weighted-average basis	3 years
Total unrecognized compensation expense, net of estimated forfeitures	124.0
Performance-based RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense related to performance based awards, net of estimated forfeitures	$ 17.2
Period to recognize total unrecognized compensation expense, net of estimated forfeitures on a weighted-average basis	3 years

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Stock-Based Compensation Expense

3 Months Ended

Mar. 31, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation Expense

Note 2 — Stock-Based Compensation Expense

Stock-based compensation expense, net of estimated forfeitures, related to the Company’s stock options, Employee Stock Purchase Plan (“ESPP”) and restricted stock unit awards by expense category was as follows:

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In thousands)
Cost of revenues	$	2,875	$	3,512
Research and development		12,409		12,308
Selling, general and administrative		10,262		15,014
Total stock-based compensation expense	$	25,546	$	30,834

The income tax benefit that the Company realized for the tax deduction from option exercises and other awards was not material for any periods presented.

Stock Options

The fair value of each option grant is estimated as of the date of grant using a reduced-form calibrated binomial lattice model (“lattice model”). The following table summarizes the weighted-average assumptions that the Company applied in the lattice model:

	Three Months Ended
	March 31, 2013			April 1, 2012
Estimated grant date fair value per share	$	2.33		$	2.86
Expected life (years)		4.38			4.46
Risk-free interest rate		1	%		1	%
Volatility		49	%		47	%

The following table summarizes changes in stock options outstanding:

	Number of Shares			Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term		Aggregate Intrinsic Value
	(In thousands)					(In years)		(In thousands)
Options outstanding at December 31, 2012		56,042		$	5.75
Granted		6,247		$	6.89
Exercised		(2,192	)	$	3.72
Canceled		(1,006	)	$	8.24
Options outstanding at March 31, 2013		59,091		$	5.90		3.86	$	85,227
Options exercisable at March 31, 2013		39,726		$	5.87		2.72	$	62,059

As of March 31, 2013, the total unrecognized compensation expense related to unvested stock options, net of estimated forfeitures, was $41.8 million and is expected to be recognized over the next 2.6 years on a weighted-average basis.

Restricted Stock Units (“RSUs”)

The cost of service-based and performance-based RSUs is determined using the fair value of the Company’s common stock on the date of grant. For performance-based RSU expense, the Company also considers the probability that those RSUs will vest.

Service-based:

The vesting of service-based RSUs requires that the employees remain employed by the Company for a specified period of time.

The following table summarizes changes in service-based RSUs outstanding:

	Number of Units			Weighted-Average Grant Date Fair Value per Share
	(In thousands)
Unvested service-based RSUs outstanding at December 31, 2012		17,655		$	6.99
Granted		7,227		$	6.90
Vested		(4,461	)	$	6.84
Forfeited		(309	)	$	6.77
Unvested service-based RSUs outstanding at March 31, 2013		20,112		$	7.00

As of March 31, 2013, the total unrecognized compensation expense related to the service-based RSUs, net of estimated forfeitures, was $124.0 million and will be recognized over the next 3 years on a weighted-average basis.

Performance-based:

The vesting of performance-based RSUs is contingent upon the Company meeting specified performance criteria and requires that the employees remain employed by the Company for a specified period of time.

The following table summarizes changes in performance-based RSUs outstanding:

	Number of Units			Weighted-Average Grant Date Fair Value per Share
	(In thousands)
Unvested performance-based RSUs outstanding at December 31, 2012		5,634		$	7.29
Granted		1,441		$	6.89
Vested		(2,324	)	$	7.87
Forfeited		(330	)	$	6.40
Unvested performance-based RSUs outstanding at March 31, 2013		4,421		$	6.93

As of March 31, 2013, the total unrecognized compensation expense related to the performance-based RSUs, net of estimated forfeitures, was $17.2 million and, if the performance conditions are fully met, will be recognized over the next 3 years.

Employee Stock Purchase Plan

Compensation expense for the ESPP is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model. Under the ESPP, rights to purchase shares are granted during the second and fourth quarters of each year. No shares related to the ESPP were issued during the three months ended March 31, 2013 or April 1, 2012.

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Stock-Based Compensation Expense - Summary of Unvested Service-Based Restricted Stock (Detail) (Service-based RSUs [Member], USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Service-based RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested restricted stock units, Beginning Balance	17,655
Granted, Number of Units	7,227
Vested, Number of Units	(4,461)
Forfeited, Number of Units	(309)
Unvested restricted stock units, Ending Balance	20,112
Unvested RSUs, Weighted-Average Grant Date Fair Value per Share, Beginning balance	$ 6.99
Granted, Weighted-Average Grant Date Fair Value Per Share	$ 6.90
Vested, Weighted-Average Grant Date Fair Value per Share	$ 6.84
Forfeited, Weighted-Average Grant Date Fair Value per Share	$ 6.77
Unvested RSUs, Weighted-Average Grant Date Fair Value per Share, Ending of period	$ 7.00

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Benefit Obligations - Components of Net Periodic Benefit Cost (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 123	$ 109
Interest cost	14,270	15,252
Expected return on plan assets	(16,581)	(17,023)
Amortization of net actuarial loss, prior service cost and transition asset	4,669	3,469
Total benefit cost	2,481	1,807
Post-retirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	25	25
Interest cost	600	650
Expected return on plan assets	(875)	(1,050)
Amortization of net actuarial loss, prior service cost and transition asset	375	500
Total benefit cost	$ 125	$ 125

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Income Taxes - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Income Tax Disclosure [Abstract]
Benefit from income taxes	$ (2,300,000)	$ (49,062,000)
Reversal in liabilities for uncertain tax positions	8,600,000	10,200,000
Unrecognized tax benefits related to uncertain tax positions	3,800,000	5,200,000
Interest and penalties related to uncertain tax positions	4,800,000	5,000,000
Portion of income tax benefit due to release of valuation allowance		43,200,000
Unrecognized tax benefits	195,300,000
Estimated decrease in unrecognized tax benefits, plus accrued interest and penalties	$ 23,800,000

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
ASSETS
Cash and cash equivalents	$ 425,225	$ 471,528
Short-term investments	233,305	204,457
Accounts receivable, less allowances of $4,620 and $6,770, respectively	223,185	264,112
Inventories	181,071	206,323
Prepaid expenses and other current assets	70,046	80,372
Total current assets	1,132,832	1,226,792
Property and equipment, net	277,995	269,747
Identified intangible assets, net	456,490	486,119
Goodwill	255,005	255,005
Other assets	118,573	118,502
Total assets	2,240,895	2,356,165
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	170,334	209,699
Accrued salaries, wages and benefits	104,703	129,533
Other accrued liabilities	166,491	177,662
Total current liabilities	441,528	516,894
Pension and post-retirement benefit obligations	541,397	559,252
Income taxes payable - non-current	99,102	102,246
Other non-current liabilities	17,898	18,149
Total liabilities	1,099,925	1,196,541
Commitments and contingencies (Note 12)
Stockholders' equity:
Preferred stock, $.01 par value: 2,000 shares authorized; none outstanding
Common stock, $.01 par value: 1,300,000 shares authorized; 548,826 and 550,894 shares outstanding, respectively	5,488	5,509
Additional paid-in capital	5,530,418	5,573,248
Accumulated deficit	(3,822,371)	(3,840,803)
Accumulated other comprehensive loss	(572,565)	(578,330)
Total stockholders' equity	1,140,970	1,159,624
Total liabilities and stockholders' equity	$ 2,240,895	$ 2,356,165

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Cash Equivalents and Investments - Contractual Maturities of Available-for-Sale Debt Securities (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Investments Debt And Equity Securities [Abstract]
Due within one year	$ 29,424
Due in 1-5 years	59,264
Due in 5-10 years	10,497
Due after 10 years	134,120
Total	$ 233,305	$ 204,457

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Operating activities:
Net income	$ 18,432	$ 75,197
Adjustments:
Depreciation and amortization	44,285	45,368
Stock-based compensation expense	25,546	30,834
Non-cash restructuring of operations and other items, net	6,596	2,140
Gain on re-measurement of a pre-acquisition equity interest to fair value		(5,765)
(Gain)/loss on sale of property and equipment	(4)	25
Unrealized foreign exchange loss	589	1,461
Deferred taxes	(26)	(43,202)
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business combination:
Accounts receivable, net	40,652	(44,845)
Inventories	25,123	3,453
Prepaid expenses and other assets	(7,955)	(2,290)
Accounts payable	(33,054)	47,119
Accrued and other liabilities	(57,354)	(59,270)
Net cash provided by operating activities	62,830	50,225
Investing activities:
Purchases of debt securities available-for-sale	(53,345)	(21,263)
Proceeds from maturities and sales of debt securities available-for-sale	24,117	9,506
Purchases of other investments	(750)
Purchases of property and equipment	(25,075)	(64,982)
Proceeds from sale of property and equipment	27	21
Acquisition of business, net of cash acquired		(319,231)
Net cash used in investing activities	(55,026)	(395,949)
Financing activities:
Issuances of common stock	8,165	65,274
Purchases of common stock under repurchase programs	(60,765)	(38,206)
Net cash (used in)/provided by financing activities	(52,600)	27,068
Effect of exchange rate changes on cash and cash equivalents	(1,507)	(495)
Net change in cash and cash equivalents	(46,303)	(319,151)
Cash and cash equivalents at beginning of period	471,528	779,811
Cash and cash equivalents at end of period	$ 425,225	$ 460,660

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Restructuring and Other Items - Restructuring of Operations and Other Items Net (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Restructuring Cost and Reserve [Line Items]
Total restructuring expense	$ 6,154	$ 2,065
Other items, net	14,298	13,397
Total restructuring of operations and other items, net	20,452	15,462
Lease and contract terminations [Member]
Restructuring Cost and Reserve [Line Items]
Total restructuring expense	1,768	1,634
Employee severance and benefits [Member]
Restructuring Cost and Reserve [Line Items]
Total restructuring expense	$ 4,386	$ 431

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Benefit Obligations (Tables)

3 Months Ended

Mar. 31, 2013

Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract]

Components of Net Periodic Benefit Cost

The following table summarizes the components of the net periodic benefit cost:

	Three Months Ended
	March 31, 2013						April 1, 2012
	Pension Benefits			Post-retirement Benefits			Pension Benefits			Post-retirement Benefits
	(In thousands)
Service cost	$	123		$	25		$	109		$	25
Interest cost		14,270			600			15,252			650
Expected return on plan assets		(16,581	)		(875	)		(17,023	)		(1,050	)
Amortization of net actuarial loss, prior service cost and transition asset		4,669			375			3,469			500
Total benefit cost	$	2,481		$	125		$	1,807		$	125

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Restructuring and Other Items - Restructuring of Operations and Other Items Net (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Restructuring And Related Activities [Abstract]
Litigation costs	$ 12.6
Acquisition-related costs		8.3
Costs of transition service agreement		$ 4.6

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Supplemental Financial Information (Tables)

3 Months Ended

Mar. 31, 2013

Disclosure Text Block Supplement [Abstract]

Schedule of Inventories

Inventories

	March 31, 2013		December 31, 2012
	(In thousands)
Raw materials	$	71	$	176
Work-in-process		39,281		52,003
Finished goods		141,719		154,144
Total inventories	$	181,071	$	206,323

Accumulated Other Comprehensive Loss, Net of Taxes

The following table presents the components of, and changes in, accumulated other comprehensive loss, net of taxes:

	Balance at December 31, 2012			Other Comprehensive Income before Reclassifications			Amounts Reclassified from Accumulated Other Comprehensive Loss (a)			Net Current Period Other Comprehensive Income			Balance at March 31, 2013
	(In thousands)
Foreign currency translation adjustments	$	39,881		$	(342	)	$	—		$	(342	)	$	39,539
Net unrealized gain on investments		4,484			1,240			17			1,257			5,741
Net unrealized gain on derivatives		224			(32	)		(162	)		(194	)		30
Defined benefit pension and post-retirement plans		(622,919	)		—			5,044			5,044			(617,875	)
Total accumulated other comprehensive loss	$	(578,330	)	$	866		$	4,899		$	5,765		$	(572,565	)

(a) The reclassified components of defined benefit pension and post-retirement plans were included in the computation of net periodic benefit cost (see Note 5). All other reclassified amounts were insignificant.

Reconciliation of Basic and Diluted Shares

The following table provides a reconciliation of basic and diluted shares:

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In thousands)
Basic shares		550,227		566,709
Dilutive effect of stock options, employee stock purchase rights and restricted stock unit awards		16,865		23,847
Diluted shares		567,092		590,556

Weighted-Average Common Share Equivalents Excluded from Computation of Diluted Shares

The weighted-average common share equivalents that were excluded from the computation of diluted shares because their inclusion would have had an anti-dilutive effect on net income per share were as follows:

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In thousands)
Anti-dilutive securities:
Stock options		29,420		15,929
Restricted stock unit awards		1,632		4,710

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Basis of Presentation

3 Months Ended

Mar. 31, 2013

Basis Of Presentation [Abstract]

Basis of Presentation

Note 1 — Basis of Presentation

For financial reporting purposes, LSI Corporation (“LSI” or the “Company”) reports on a 13- or 14-week quarter with the year ending December 31. The first quarters of 2013 and 2012 consisted of 13 weeks each and ended on March 31, 2013 and April 1, 2012, respectively. The results of operations for the quarter ended March 31, 2013 are not necessarily indicative of the results to be expected for the full year.

The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ significantly from these estimates.

In management’s opinion, the accompanying unaudited condensed consolidated financial statements contain all normal recurring adjustments necessary for a fair statement of the Company’s financial position, results of operations, comprehensive income and cash flows for the interim periods presented. While the Company believes that the disclosures are adequate to make the information not misleading, these financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

Recent Accounting Pronouncement

In February 2013, the Financial Accounting Standards Board (“FASB”) issued additional guidance regarding the presentation of comprehensive income. The guidance requires an entity to present the effects on net income line items of significant amounts reclassified out of accumulated other comprehensive income, but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. An entity shall provide this information either on the face of the financial statements or in the notes to the financial statements. The guidance is effective for fiscal years beginning after December 15, 2012. The Company adopted this guidance in the first quarter of 2013. The adoption did not impact the Company’s results of operations or financial position.

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Statement Of Financial Position [Abstract]
Allowances for accounts receivable	$ 4,620	$ 6,770
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	1,300,000,000	1,300,000,000
Common stock, shares outstanding	548,826,000	550,894,000

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Related Party Transactions

3 Months Ended

Mar. 31, 2013

Related Party Transactions [Abstract]

Related Party Transactions

Note 11 — Related Party Transactions

A member of the Company’s board of directors is also a member of the board of directors of Seagate Technology (“Seagate”). The Company sells semiconductors used in storage product applications to Seagate for prices comparable to those charged to an unrelated third party. Revenues from sales by the Company to Seagate were $153.7 million and $207.0 million for the three months ended March 31, 2013 and April 1, 2012, respectively. The Company had accounts receivable from Seagate of $86.7 million and $94.0 million as of March 31, 2013 and December 31, 2012, respectively.

The Company has an equity interest in a joint venture, Silicon Manufacturing Partners Pte Ltd. (“SMP”), with GLOBALFOUNDRIES, a manufacturing foundry for integrated circuits. SMP operates an integrated circuit manufacturing facility in Singapore. The Company owns a 51% equity interest in this joint venture and accounts for its ownership position under the equity method of accounting. The Company is effectively precluded from unilaterally taking any significant action in the management of SMP due to GLOBALFOUNDRIES’ significant participatory rights under the joint venture agreement. Because of GLOBALFOUNDRIES’ approval rights, the Company cannot make any significant decisions regarding SMP without GLOBALFOUNDRIES’ approval, despite the 51% equity interest. In addition, the General Manager, who is responsible for the day-to-day management of SMP, is appointed by GLOBALFOUNDRIES, and GLOBALFOUNDRIES provides day-to-day operational support to SMP.

The Company purchased $9.4 million and $12.2 million of inventory from SMP during the three months ended March 31, 2013 and April 1, 2012, respectively. As of March 31, 2013 and December 31, 2012, the amounts payable to SMP were $6.2 million and $9.2 million, respectively.

XML

Document and Entity Information	3 Months Ended
	Mar. 31, 2013	May 02, 2013
Document Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1
Trading Symbol	LSI
Entity Registrant Name	LSI CORP
Entity Central Index Key	0000703360
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		549,559,114

XML

Commitments, Contingencies and Legal Matters

3 Months Ended

Mar. 31, 2013

Commitments And Contingencies Disclosure [Abstract]

Commitments, Contingencies and Legal Matters

Note 12 — Commitments, Contingencies and Legal Matters

Purchase Commitments

The Company maintains purchase commitments with certain suppliers, primarily for raw materials and manufacturing services and for some non-production items. Purchase commitments for inventory materials are generally restricted to a forecasted time horizon as mutually agreed upon between the parties. This forecasted time horizon can vary for different suppliers. As of March 31, 2013, the Company had purchase commitments of $350.4 million, which are due through 2016.

The Company has a take-or-pay agreement with SMP under which it has agreed to purchase 51% of the managed wafer capacity from SMP’s integrated circuit manufacturing facility, and GLOBALFOUNDRIES has agreed to purchase the remaining managed wafer capacity. SMP determines its managed wafer capacity each year based on forecasts provided by the Company and GLOBALFOUNDRIES. If the Company fails to purchase its required commitments, it will be required to pay SMP for the fixed costs associated with the unpurchased wafers. GLOBALFOUNDRIES is similarly obligated with respect to the wafers allotted to it. The agreement may be terminated by either party upon two years written notice. The agreement may also be terminated for material breach, bankruptcy or insolvency.

Guarantees

Product Warranties:

The following table sets forth a summary of changes in product warranties:

	Accrued Warranties
	(In thousands)
Balance as of December 31, 2012	$	5,426
Accruals for warranties issued during the period		107
Adjustments to pre-existing accruals (including changes in estimates)		395
Settlements made during the period (in cash or in kind)		(295	)
Balance as of March 31, 2013	$	5,633

Standby Letters of Credit:

The Company had outstanding obligations relating to standby letters of credit of $4.2 million and $4.1 million, respectively, as of March 31, 2013 and December 31, 2012. Standby letters of credit are financial guarantees provided by third parties for leases, customs and certain self-insured risks. If the guarantees are called, the Company must reimburse the provider of the guarantee. The fair value of the letters of credit approximates the contract amounts. The standby letters of credit generally renew annually.

Indemnifications

The Company is a party to a variety of agreements pursuant to which it may be obligated to indemnify the other party. These obligations arise primarily in connection with sales contracts, license agreements or agreements for the sale of assets, under which the Company customarily agrees to hold the other party harmless against losses arising from a breach of warranties, representations and covenants related to such matters as title to assets sold, validity of certain intellectual property rights, non-infringement of third-party rights, and certain income tax-related matters. In each of these circumstances, payment by the Company is typically subject to the other party making a claim to and cooperating with the Company pursuant to the procedures specified in the particular contract. This usually allows the Company to challenge the other party’s claims or, in case of breach of intellectual property representations or covenants, to control the defense or settlement of any third-party claims brought against the other party. Further, the Company’s obligations under these agreements may be limited in terms of activity (typically to replace or correct the products or terminate the agreement with a refund to the other party), duration and/or amounts. In some instances, the Company may have recourse against third parties covering certain payments made by the Company.

Legal Matters

On December 6, 2006, Sony Ericsson Mobile Communications USA Inc. (“Sony Ericsson”) filed a lawsuit against Agere Systems Inc. (“Agere”), which LSI acquired in 2007, in Wake County Superior Court in North Carolina, alleging unfair and deceptive trade practices, fraud and negligent misrepresentation in connection with Agere’s engagement with Sony Ericsson to develop a wireless data card for personal computers. The complaint claimed an unspecified amount of damages and sought compensatory damages, treble damages and attorneys’ fees. In August, 2007, the case was dismissed for improper venue. On October 22, 2007, Sony Ericsson filed a lawsuit in the Supreme Court of the State of New York, New York County against LSI, raising substantially the same allegations and seeking substantially the same relief as the North Carolina proceeding. In January 2010, Sony Ericsson amended its complaint by adding claims for fraudulent concealment and gross negligence. On August 4, 2011, the court granted LSI’s motion for summary judgment in this matter and ordered the dismissal of all of Sony Ericsson’s claims. Sony Ericsson appealed this decision. On January 24, 2013, the New York Appellate Division unanimously affirmed the lower court’s ruling. On April 2, 2013, the New York Court of Appeals denied Sony Ericsson’s motion seeking to appeal this ruling.

On March 23, 2007, CIF Licensing, LLC, d/b/a GE Licensing (“GE”) filed a lawsuit against Agere Systems, which is now a subsidiary of LSI, in the United States District Court for the District of Delaware, asserting that Agere products infringed patents in a portfolio of patents GE acquired from Motorola. GE asserted that four of the patents cover inventions relating to modems. The court postponed hearing motions based on Agere’s defenses until after the trial, and did not allow Agere to present evidence on its defenses at trial. On February 17, 2009, the jury in this case returned a verdict finding that three of the four patents were invalid and that Agere products infringed the one patent found to be valid and awarding GE $7.6 million for infringement of that patent. The jury also found Agere’s infringement was willful, which means that the judge could have increased the amount of damages up to three times the original amount. If the jury’s verdict had been entered by the court, Agere expected to be required to pay interest from the date of infringing sales. On February 17, 2010, the court issued an order granting GE’s summary judgment motions seeking to bar Agere’s defenses of laches, exhaustion, and license and denying Agere’s summary judgment motions concerning the same defenses. On July 30, 2010, the court held that one of the patents found invalid by the jury was valid. On December 3, 2012, the court affirmed its prior grant of GE’s summary judgment motions seeking to bar Agere’s defenses of laches and license, but ordered that a trial go forward regarding Agere’s exhaustion defense. On April 24, 2013, following a court-ordered mediation, LSI and GE settled this lawsuit. The settlement did not have a material impact on LSI’s results of operations or financial condition.

In addition to the foregoing, the Company and its subsidiaries are parties to other litigation matters and claims in the normal course of business. The Company does not believe, based on currently available facts and circumstances, that the final outcome of these other matters, taken individually or as a whole, will have a material adverse effect on the Company’s consolidated results of operations or financial position. However, the pending unsettled lawsuits may involve complex questions of fact and law and may require the expenditure of significant funds and the diversion of other resources to defend. From time to time, the Company may enter into confidential discussions regarding the potential settlement of such lawsuits. However, there can be no assurance that any such discussions will occur or will result in a settlement. Moreover, the settlement of any pending litigation could require the Company to incur substantial costs and, in the case of the settlement of any intellectual property proceeding against the Company, may require the Company to obtain a license to a third-party’s intellectual property that could require royalty payments in the future and the Company to grant a license to certain of its intellectual property to a third party under a cross-license agreement. The results of litigation are inherently uncertain, and material adverse outcomes are possible.

The Company has not provided accruals for any legal matters in its financial statements as potential losses for such matters are not considered probable and reasonably estimable. However, because such matters are subject to many uncertainties, the ultimate outcomes are not predictable, and there can be no assurances that the actual amounts required to satisfy any liabilities arising from the matters described above will not have a material adverse effect on the Company’s consolidated results of operations, financial position or cash flows.

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Income Statement [Abstract]
Revenues	$ 568,636	$ 622,424
Cost of revenues	279,132	335,512
Gross profit	289,504	286,912
Research and development	171,305	169,871
Selling, general and administrative	89,495	90,100
Restructuring of operations and other items, net	20,452	15,462
Income from operations	8,252	11,479
Interest income and other, net	7,880	14,656
Income before income taxes	16,132	26,135
Benefit from income taxes	(2,300)	(49,062)
Net income	$ 18,432	$ 75,197
Net income per share:
Basic	$ 0.03	$ 0.13
Diluted	$ 0.03	$ 0.13
Shares used in computing per share amounts:
Basic	550,227	566,709
Diluted	567,092	590,556

XML

Cash Equivalents and Investments

3 Months Ended

Mar. 31, 2013

Text Block [Abstract]

Cash Equivalents and Investments

Note 6 — Cash Equivalents and Investments

The following tables summarize the Company’s cash equivalents and investments measured at fair value:

	Fair Value Measurements as of March 31, 2013
	Level 1			Level 2			Total
	(In thousands)
Cash equivalents:
Money-market funds	$	325,927	(a)	$	—		$	325,927
Government and agency securities		—			8,547	(b)		8,547
Commercial paper		—			2,500	(b)		2,500
Total cash equivalents	$	325,927		$	11,047		$	336,974
Available-for-sale debt securities:
Asset-backed and mortgage-backed securities:
Agency securities	$	—		$	145,150	(b)	$	145,150
Non-agency securities		—			1,116	(b)		1,116
Government and agency securities		15,003	(a)		58,032	(b)		73,035
Corporate debt securities		—			10,006	(b)		10,006
Commercial paper		—			3,998	(b)		3,998
Total short-term investments	$	15,003		$	218,302		$	233,305
Long-term investments in equity securities:
Marketable available-for-sale equity securities	$	1,952	(c)	$	—		$	1,952

	Fair Value Measurements as of December 31, 2012
	Level 1			Level 2			Total
	(In thousands)
Cash equivalents:
Money-market funds	$	364,596	(a)	$	—		$	364,596
Government and agency securities		—			6,479	(b)		6,479
Total cash equivalents	$	364,596		$	6,479		$	371,075
Available-for-sale debt securities:
Asset-backed and mortgage-backed securities:
Agency securities	$	—		$	129,463	(b)	$	129,463
Non-agency securities		—			1,393	(b)		1,393
Government and agency securities		17,042	(a)		49,658	(b)		66,700
Corporate debt securities		—			6,001	(b)		6,001
Commercial paper		—			900	(b)		900
Total short-term investments	$	17,042		$	187,415		$	204,457
Long-term investments in equity securities:
Marketable available-for-sale equity securities	$	1,689	(c)	$	—		$	1,689

(a) The fair value of money-market funds is determined using unadjusted prices in active markets. The fair value of Level 1 U.S. government and agency securities is determined using quoted prices in active markets.

(b) These investments are traded less frequently than Level 1 securities and are valued using inputs that include quoted prices for similar assets in active markets and inputs other than quoted prices that are observable for the asset, such as interest rates, yield curves, prepayment speeds, collateral performance, broker/dealer quotes and indices that are observable at commonly quoted intervals.

(c) The fair value of marketable equity securities is determined using quoted prices in active markets. These amounts are included within other assets in the condensed consolidated balance sheets.

As of March 31, 2013 and December 31, 2012, the aggregate carrying value of the Company’s non-marketable securities was $42.8 million and $42.1 million, respectively.

Upon the acquisition of SandForce in January 2012, the Company recognized a gain of $5.8 million as a result of re-measuring its pre-acquisition equity interest in SandForce to estimated fair value. There were no other non-marketable securities fair-valued during the three months ended March 31, 2013 or April 1, 2012.

The following tables summarize the Company’s available-for-sale securities:

	March 31, 2013
	Amortized Cost		Gross  Unrealized Gain		Gross  Unrealized Loss			Fair Value
	(In thousands)
Short-term debt securities:
Asset-backed and mortgage-backed securities	$	139,611	$	7,484	$	(829	)	$	146,266
Government and agency securities		72,194		843		(2	)		73,035
Corporate debt securities		9,885		124		(3	)		10,006
Commercial paper		3,998		—		—			3,998
Total short-term debt securities	$	225,688	$	8,451	$	(834	)	$	233,305
Long-term marketable equity securities	$	669	$	1,283	$	—		$	1,952

	December 31, 2012
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value
	(In thousands)
Short-term debt securities:
Asset-backed and mortgage-backed securities	$	125,563	$	6,390	$	(1,097	)	$	130,856
Government and agency securities		65,904		802		(6	)		66,700
Corporate debt securities		5,864		137		—			6,001
Commercial paper		900		—		—			900
Total short-term debt securities	$	198,231	$	7,329	$	(1,103	)	$	204,457
Long-term marketable equity securities	$	669	$	1,020	$	—		$	1,689

As of March 31, 2013, there were 107 investments in an unrealized loss position. The following tables summarize the gross unrealized losses and fair values of the Company’s short-term investments that have been in a continuous unrealized loss position for less than and greater than 12 months, aggregated by investment category:

	March 31, 2013
	Less than 12 Months					Greater than 12 Months
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
Asset-backed and mortgage-backed securities	$	47,476	$	(749	)	$	3,728	$	(80	)
Government and agency securities		4,910		(2	)		—		—
Corporate debt securities		2,956		(3	)		—		—
Total	$	55,342	$	(754	)	$	3,728	$	(80	)

	December 31, 2012
	Less than 12 Months					Greater than 12 Months
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
Asset-backed and mortgage-backed securities	$	38,280	$	(1,018	)	$	4,141	$	(79	)
Government and agency securities		18,301		(6	)		—		—
Total	$	56,581	$	(1,024	)	$	4,141	$	(79	)

Net realized losses and gains on sales of available-for-sale securities were not material for the three months ended March 31, 2013 or April 1, 2012.

Contractual maturities of available-for-sale debt securities as of March 31, 2013 were as follows:

	Available-For-Sale Debt Securities
	(In thousands)
Due within one year	$	29,424
Due in 1-5 years		59,264
Due in 5-10 years		10,497
Due after 10 years		134,120
Total	$	233,305

The maturities of asset-backed and mortgage-backed securities were allocated based on contractual principal maturities assuming no prepayments.

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Benefit Obligations

3 Months Ended

Mar. 31, 2013

Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract]

Benefit Obligations

Note 5 — Benefit Obligations

The Company provides retirement benefits to certain current and former U.S. employees under defined benefit pension plans, which include a management plan and a represented plan. Benefits under the management plan are based on an adjusted career-average-pay formula or a cash-balance program. Benefit under the represented plan are based on a dollar-per-month formula. Benefits accruals under the management plan were frozen in 2009. Participants in the adjusted career-average-pay program no longer earn service accruals. Participants in the cash-balance program no longer earn service accruals, but continue to earn 4% interest per year on their cash-balance accounts. There are no active participants under the represented plan.

The Company also has a non-qualified supplemental pension plan in the U.S. that principally provides benefits based on compensation in excess of amounts that can be considered under the management plan. In addition, the Company provides post-retirement life insurance coverage under a group life insurance plan for certain U.S. employees. The Company also has pension plans covering certain international employees.

The following table summarizes the components of the net periodic benefit cost:

	Three Months Ended
	March 31, 2013						April 1, 2012
	Pension Benefits			Post-retirement Benefits			Pension Benefits			Post-retirement Benefits
	(In thousands)
Service cost	$	123		$	25		$	109		$	25
Interest cost		14,270			600			15,252			650
Expected return on plan assets		(16,581	)		(875	)		(17,023	)		(1,050	)
Amortization of net actuarial loss, prior service cost and transition asset		4,669			375			3,469			500
Total benefit cost	$	2,481		$	125		$	1,807		$	125

During the three months ended March 31, 2013, the Company contributed $15.3 million to its pension plans. The Company expects to contribute an additional $36.4 million to its pension plans during the remainder of 2013. The Company does not expect to contribute to its post-retirement benefit plan in 2013.

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Cash Equivalents and Investments (Tables)

3 Months Ended

Mar. 31, 2013

Text Block [Abstract]

Company's Cash Equivalents and Investments Measured at Fair Value

The following tables summarize the Company’s cash equivalents and investments measured at fair value:

	Fair Value Measurements as of March 31, 2013
	Level 1			Level 2			Total
	(In thousands)
Cash equivalents:
Money-market funds	$	325,927	(a)	$	—		$	325,927
Government and agency securities		—			8,547	(b)		8,547
Commercial paper		—			2,500	(b)		2,500
Total cash equivalents	$	325,927		$	11,047		$	336,974
Available-for-sale debt securities:
Asset-backed and mortgage-backed securities:
Agency securities	$	—		$	145,150	(b)	$	145,150
Non-agency securities		—			1,116	(b)		1,116
Government and agency securities		15,003	(a)		58,032	(b)		73,035
Corporate debt securities		—			10,006	(b)		10,006
Commercial paper		—			3,998	(b)		3,998
Total short-term investments	$	15,003		$	218,302		$	233,305
Long-term investments in equity securities:
Marketable available-for-sale equity securities	$	1,952	(c)	$	—		$	1,952

	Fair Value Measurements as of December 31, 2012
	Level 1			Level 2			Total
	(In thousands)
Cash equivalents:
Money-market funds	$	364,596	(a)	$	—		$	364,596
Government and agency securities		—			6,479	(b)		6,479
Total cash equivalents	$	364,596		$	6,479		$	371,075
Available-for-sale debt securities:
Asset-backed and mortgage-backed securities:
Agency securities	$	—		$	129,463	(b)	$	129,463
Non-agency securities		—			1,393	(b)		1,393
Government and agency securities		17,042	(a)		49,658	(b)		66,700
Corporate debt securities		—			6,001	(b)		6,001
Commercial paper		—			900	(b)		900
Total short-term investments	$	17,042		$	187,415		$	204,457
Long-term investments in equity securities:
Marketable available-for-sale equity securities	$	1,689	(c)	$	—		$	1,689

(a) The fair value of money-market funds is determined using unadjusted prices in active markets. The fair value of Level 1 U.S. government and agency securities is determined using quoted prices in active markets.

(b) These investments are traded less frequently than Level 1 securities and are valued using inputs that include quoted prices for similar assets in active markets and inputs other than quoted prices that are observable for the asset, such as interest rates, yield curves, prepayment speeds, collateral performance, broker/dealer quotes and indices that are observable at commonly quoted intervals.

(c) The fair value of marketable equity securities is determined using quoted prices in active markets. These amounts are included within other assets in the condensed consolidated balance sheets.

Company's Available-for-Sale Securities

The following tables summarize the Company’s available-for-sale securities:

	March 31, 2013
	Amortized Cost		Gross  Unrealized Gain		Gross  Unrealized Loss			Fair Value
	(In thousands)
Short-term debt securities:
Asset-backed and mortgage-backed securities	$	139,611	$	7,484	$	(829	)	$	146,266
Government and agency securities		72,194		843		(2	)		73,035
Corporate debt securities		9,885		124		(3	)		10,006
Commercial paper		3,998		—		—			3,998
Total short-term debt securities	$	225,688	$	8,451	$	(834	)	$	233,305
Long-term marketable equity securities	$	669	$	1,283	$	—		$	1,952

	December 31, 2012
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value
	(In thousands)
Short-term debt securities:
Asset-backed and mortgage-backed securities	$	125,563	$	6,390	$	(1,097	)	$	130,856
Government and agency securities		65,904		802		(6	)		66,700
Corporate debt securities		5,864		137		—			6,001
Commercial paper		900		—		—			900
Total short-term debt securities	$	198,231	$	7,329	$	(1,103	)	$	204,457
Long-term marketable equity securities	$	669	$	1,020	$	—		$	1,689

Gross Unrealized Losses and Fair Values of Company's Short-Term Investments

As of March 31, 2013, there were 107 investments in an unrealized loss position. The following tables summarize the gross unrealized losses and fair values of the Company’s short-term investments that have been in a continuous unrealized loss position for less than and greater than 12 months, aggregated by investment category:

	March 31, 2013
	Less than 12 Months					Greater than 12 Months
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
Asset-backed and mortgage-backed securities	$	47,476	$	(749	)	$	3,728	$	(80	)
Government and agency securities		4,910		(2	)		—		—
Corporate debt securities		2,956		(3	)		—		—
Total	$	55,342	$	(754	)	$	3,728	$	(80	)

	December 31, 2012
	Less than 12 Months					Greater than 12 Months
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
Asset-backed and mortgage-backed securities	$	38,280	$	(1,018	)	$	4,141	$	(79	)
Government and agency securities		18,301		(6	)		—		—
Total	$	56,581	$	(1,024	)	$	4,141	$	(79	)

Contractual Maturities of Available-for-Sale Debt Securities

Contractual maturities of available-for-sale debt securities as of March 31, 2013 were as follows:

	Available-For-Sale Debt Securities
	(In thousands)
Due within one year	$	29,424
Due in 1-5 years		59,264
Due in 5-10 years		10,497
Due after 10 years		134,120
Total	$	233,305

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Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2013

Basis Of Presentation [Abstract]

Basis of Presentation

For financial reporting purposes, LSI Corporation (“LSI” or the “Company”) reports on a 13- or 14-week quarter with the year ending December 31. The first quarters of 2013 and 2012 consisted of 13 weeks each and ended on March 31, 2013 and April 1, 2012, respectively. The results of operations for the quarter ended March 31, 2013 are not necessarily indicative of the results to be expected for the full year.

The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ significantly from these estimates.

In management’s opinion, the accompanying unaudited condensed consolidated financial statements contain all normal recurring adjustments necessary for a fair statement of the Company’s financial position, results of operations, comprehensive income and cash flows for the interim periods presented. While the Company believes that the disclosures are adequate to make the information not misleading, these financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

Recent Accounting Pronouncements

Recent Accounting Pronouncement

In February 2013, the Financial Accounting Standards Board (“FASB”) issued additional guidance regarding the presentation of comprehensive income. The guidance requires an entity to present the effects on net income line items of significant amounts reclassified out of accumulated other comprehensive income, but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. An entity shall provide this information either on the face of the financial statements or in the notes to the financial statements. The guidance is effective for fiscal years beginning after December 15, 2012. The Company adopted this guidance in the first quarter of 2013. The adoption did not impact the Company’s results of operations or financial position.

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Segment, Geographic and Product Information

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Segment, Geographic and Product Information

Note 9 — Segment, Geographic and Product Information

The Company operates in one reportable segment — the Semiconductor segment. The Company’s chief executive officer is the chief operating decision maker (“CODM”). The Company’s CODM bears ultimate responsibility for, and is actively engaged in, the allocation of resources and the evaluation of the Company’s operating and financial results.

Information about Geographic Areas

The following table summarizes the Company’s revenues by geography based on the ordering location of the customer. Because the Company sells its products primarily to other sellers of technology products and not to end users, revenues by geography as presented below may not accurately reflect geographic end-user demand for its products.

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In thousands)
North America*	$	146,650	$	158,969
Asia		373,933		414,022
Europe and the Middle East		48,053		49,433
Total	$	568,636	$	622,424

* Primarily the United States.

Information about Product Groups

The following table presents the Company’s revenues by product groups:

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In thousands)
Storage products	$	437,901	$	488,469
Networking products		92,603		107,022
Other		38,132		26,933
Total	$	568,636	$	622,424

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Supplemental Financial Information

3 Months Ended

Mar. 31, 2013

Disclosure Text Block Supplement [Abstract]

Supplemental Financial Information

Note 7 — Supplemental Financial Information

Inventories

	March 31, 2013		December 31, 2012
	(In thousands)
Raw materials	$	71	$	176
Work-in-process		39,281		52,003
Finished goods		141,719		154,144
Total inventories	$	181,071	$	206,323

Accumulated Other Comprehensive Loss

The following table presents the components of, and changes in, accumulated other comprehensive loss, net of taxes:

	Balance at December 31, 2012			Other Comprehensive Income before Reclassifications			Amounts Reclassified from Accumulated Other Comprehensive Loss (a)			Net Current Period Other Comprehensive Income			Balance at March 31, 2013
	(In thousands)
Foreign currency translation adjustments	$	39,881		$	(342	)	$	—		$	(342	)	$	39,539
Net unrealized gain on investments		4,484			1,240			17			1,257			5,741
Net unrealized gain on derivatives		224			(32	)		(162	)		(194	)		30
Defined benefit pension and post-retirement plans		(622,919	)		—			5,044			5,044			(617,875	)
Total accumulated other comprehensive loss	$	(578,330	)	$	866		$	4,899		$	5,765		$	(572,565	)

(a) The reclassified components of defined benefit pension and post-retirement plans were included in the computation of net periodic benefit cost (see Note 5). All other reclassified amounts were insignificant.

Reconciliation of Basic and Diluted Shares

The following table provides a reconciliation of basic and diluted shares:

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In thousands)
Basic shares		550,227		566,709
Dilutive effect of stock options, employee stock purchase rights and restricted stock unit awards		16,865		23,847
Diluted shares		567,092		590,556

The weighted-average common share equivalents that were excluded from the computation of diluted shares because their inclusion would have had an anti-dilutive effect on net income per share were as follows:

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In thousands)
Anti-dilutive securities:
Stock options		29,420		15,929
Restricted stock unit awards		1,632		4,710

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Derivative Instruments

3 Months Ended

Mar. 31, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Instruments

Note 8 — Derivative Instruments

The Company has foreign subsidiaries that operate and sell the Company’s products in various markets around the world. As a result, the Company is exposed to changes in foreign-currency exchange rates. The Company utilizes forward contracts to manage its exposure associated with net assets and liabilities denominated in non-functional currencies and to reduce the volatility of earnings and cash flows related to forecasted foreign-currency transactions. The Company does not hold derivative financial instruments for speculative or trading purposes.

Cash-Flow Hedges

The Company enters into forward contracts that are designated as foreign-currency cash-flow hedges of selected forecasted payments denominated in currencies other than U.S. dollars. These forward contracts generally mature within twelve months. The Company evaluates and calculates the effectiveness of each hedge at least quarterly. Changes in fair value attributable to changes in time value are excluded from the assessment of effectiveness and are recognized in interest income and other, net. The effective portion of the forward contracts’ gain or loss is recorded in other comprehensive income and, when the hedged expense is recognized, is subsequently reclassified into earnings within the same line item in the statement of operations as the impact of the hedged transaction. The ineffective portion of the gain or loss is reported in earnings immediately. As of March 31, 2013 and December 31, 2012, the total notional value of the Company’s outstanding forward contracts, designated as foreign-currency cash-flow hedges, was $40.3 million and $39.8 million, respectively.

Other Foreign-Currency Hedges

The Company enters into foreign-exchange forward contracts that are used to hedge certain assets or liabilities denominated in non-functional currencies and that do not qualify for hedge accounting. These forward contracts generally mature within three months. Changes in the fair value of these forward contracts are recorded immediately in earnings to offset the changes in fair value of the assets or liabilities being hedged. As of March 31, 2013 and December 31, 2012, the total notional value of the Company’s outstanding forward contracts, not designated as hedges under hedge accounting, was $40.4 million and $31.6 million, respectively. For the three months ended March 31, 2013 and April 1, 2012, the Company recognized a loss of $1.2 million and a gain of $1.1 million on other foreign-currency hedges, respectively. These amounts are included in interest income and other, net in the Company’s condensed consolidated statements of operations and were substantially offset by the gain and loss on the underlying foreign-currency-denominated assets or liabilities.

Fair Value of Derivative Instruments

The total fair value of derivative assets and liabilities was recorded in prepaid expenses and other current assets and in other accrued liabilities, respectively, in the condensed consolidated balance sheets. As of March 31, 2013 and December 31, 2012, the total fair value of derivative assets and liabilities was immaterial.

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Income Taxes

3 Months Ended

Mar. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Note 10 — Income Taxes

The Company recorded income tax benefits of $2.3 million and $49.1 million for the three months ended March 31, 2013 and April 1, 2012, respectively.

The income tax benefit for the three months ended March 31, 2013 included a reversal of $8.6 million of liabilities for uncertain tax positions, which included previously unrecognized tax benefits of $3.8 million and interest and penalties of $4.8 million, as a result of the expiration of statutes of limitations in multiple jurisdictions.

The income tax benefit for the three months ended April 1, 2012 included a tax benefit of approximately $43.2 million due to the release of valuation allowance resulting from the net deferred tax liabilities recorded as part of the SandForce purchase price allocation. The income tax benefit for the three months ended April 1, 2012 also included a reversal of $10.2 million of liabilities for uncertain tax positions, which included previously unrecognized tax benefits of $5.2 million and interest and penalties of $5.0 million, as a result of the expiration of statutes of limitations in multiple jurisdictions.

The Company computes its tax provision using an estimated annual tax rate. The Company excludes certain loss jurisdictions from the computation of the estimated annual rate when no benefit can be realized on those losses. Historically, the Company has sustained losses from its U.S. operations and, as a result, has maintained a full valuation allowance against U.S. net deferred tax assets. The Company recently achieved profitability in the U.S., however, management does not believe there is sufficient positive evidence to reach a conclusion that it is more likely than not that the Company will generate sufficient future taxable income in the U.S. to realize the benefits of its deferred tax assets. Depending on future results and projected trends, it is reasonably possible that Company may determine in the foreseeable future that it is more likely than not that a significant portion of its U.S. deferred tax assets will be realized, resulting in a release of a significant portion of the valuation allowance.

As of March 31, 2013, the Company had $195.3 million of unrecognized tax benefits, for which the Company is unable to make a reasonably reliable estimate as to when cash settlement with a taxing authority may occur. It is reasonably possible that the total amount of unrecognized tax benefits will increase or decrease in the next 12 months. Such changes could occur based on the normal expiration of statutes of limitations or the possible conclusion of ongoing tax audits in various jurisdictions around the world. If those events occur within the next 12 months, the Company estimates that the unrecognized tax benefits, plus accrued interest and penalties, could decrease by up to $23.8 million.

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Common Stock Repurchases - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2013	Apr. 01, 2012	Dec. 31, 2012
Equity [Abstract]
Maximum amount authorized under stock repurchase program			$ 500.0
Date the Company's board of directors authorized stock repurchase programs			August 1, 2012
Value of shares remaining under stock repurchase program	417.9
Shares repurchased during the year, shares	8.6	4.6
Shares repurchased during the year, value	$ 60.8	$ 38.2

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Segment, Geographic and Product Information - Company's Revenues by Geography Based on Ordering Location of Customer (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 568,636	$ 622,424
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	146,650	158,969
Asia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	373,933	414,022
Europe and the Middle East [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 48,053	$ 49,433

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Restructuring and Other Items (Tables)

3 Months Ended

Mar. 31, 2013

Restructuring And Related Activities [Abstract]

Restructuring of Operations and Other Items Net

The following table summarizes items included in restructuring of operations and other items, net:

	Three Months Ended
	March 31, 2013			April 1, 2012
	(In thousands)
Lease and contract terminations	$	1,768	(a)	$	1,634	(a)
Employee severance and benefits		4,386			431
Total restructuring expense		6,154			2,065
Other items, net		14,298	(b)		13,397	(c)
Total restructuring of operations and other items, net	$	20,452		$	15,462

(a) Includes lease obligation costs for facilities that the Company ceased to use, changes in estimates, changes in time value and on-going expenditures related to previously vacated facilities.

(b) Primarily consists of $12.6 million of costs related to litigation settlements.

(c) Primarily consists of $8.3 million of SandForce, Inc. (“SandForce”) acquisition-related costs and $4.6 million of costs related to the transition service agreement associated with the sale of the external storage systems business.

Summary of Significant Activity Within, and Components of Restructuring Obligations

The following table summarizes the significant activity within, and components of, the Company’s restructuring obligations:

	Lease and  Contract Terminations			Employee Severance and Benefits			Total
	(In thousands)
Balance at December 31, 2012	$	12,991		$	5,003		$	17,994
Expense		1,768			4,386			6,154
Utilized		(6,441	)(a)		(4,970	)(a)		(11,411	)
Balance at March 31, 2013	$	8,318	(b)	$	4,419	(b)	$	12,737

(a) Represents cash payments.

(b) The balance remaining for the lease terminations is expected to be paid during the remaining terms of the leases, which extend through 2014. The majority of the balance remaining for employee severance and benefits is expected to be paid by the end of 2013.

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Commitments, Contingencies and Legal Matters (Tables)

3 Months Ended

Mar. 31, 2013

Commitments And Contingencies Disclosure [Abstract]

Summary of Changes in Product Warranties

The following table sets forth a summary of changes in product warranties:

	Accrued Warranties
	(In thousands)
Balance as of December 31, 2012	$	5,426
Accruals for warranties issued during the period		107
Adjustments to pre-existing accruals (including changes in estimates)		395
Settlements made during the period (in cash or in kind)		(295	)
Balance as of March 31, 2013	$	5,633

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Supplemental Financial Information - Weighted-Average Common Share Equivalents Excluded from Computation of Diluted Shares (Detail) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Stock options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	29,420	15,929
Restricted stock and/or restricted stock units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,632	4,710

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Cash Equivalents and Investments - Company's Cash Equivalents and Investments Measured at Fair Value (Detail) (Fair Value, Measurements, Recurring [Member], USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Company's Cash Equivalents and Investments measured at Fair Value [Line Items]
Cash equivalents measured at fair value	$ 336,974	$ 371,075
Investments measured at fair value	233,305	204,457
Money-market funds [Member]
Company's Cash Equivalents and Investments measured at Fair Value [Line Items]
Cash equivalents measured at fair value	325,927	364,596
Government and agency securities [Member]
Company's Cash Equivalents and Investments measured at Fair Value [Line Items]
Cash equivalents measured at fair value	8,547	6,479
Investments measured at fair value	73,035	66,700
Commercial paper [Member]
Company's Cash Equivalents and Investments measured at Fair Value [Line Items]
Cash equivalents measured at fair value	2,500
Investments measured at fair value	3,998	900
Agency securities [Member]
Company's Cash Equivalents and Investments measured at Fair Value [Line Items]
Investments measured at fair value	145,150	129,463
Non-agency securities [Member]
Company's Cash Equivalents and Investments measured at Fair Value [Line Items]
Investments measured at fair value	1,116	1,393
Corporate debt securities [Member]
Company's Cash Equivalents and Investments measured at Fair Value [Line Items]
Investments measured at fair value	10,006	6,001
Long-term investments in equity securities [Member]
Company's Cash Equivalents and Investments measured at Fair Value [Line Items]
Investments measured at fair value	1,952	1,689
Level 1 [Member]
Company's Cash Equivalents and Investments measured at Fair Value [Line Items]
Cash equivalents measured at fair value	325,927	364,596
Investments measured at fair value	15,003	17,042
Level 1 [Member] | Money-market funds [Member]
Company's Cash Equivalents and Investments measured at Fair Value [Line Items]
Cash equivalents measured at fair value	325,927	364,596
Level 1 [Member] | Government and agency securities [Member]
Company's Cash Equivalents and Investments measured at Fair Value [Line Items]
Investments measured at fair value	15,003	17,042
Level 1 [Member] | Long-term investments in equity securities [Member]
Company's Cash Equivalents and Investments measured at Fair Value [Line Items]
Investments measured at fair value	1,952	1,689
Level 2 [Member]
Company's Cash Equivalents and Investments measured at Fair Value [Line Items]
Cash equivalents measured at fair value	11,047	6,479
Investments measured at fair value	218,302	187,415
Level 2 [Member] | Government and agency securities [Member]
Company's Cash Equivalents and Investments measured at Fair Value [Line Items]
Cash equivalents measured at fair value	8,547	6,479
Investments measured at fair value	58,032	49,658
Level 2 [Member] | Commercial paper [Member]
Company's Cash Equivalents and Investments measured at Fair Value [Line Items]
Cash equivalents measured at fair value	2,500
Investments measured at fair value	3,998	900
Level 2 [Member] | Agency securities [Member]
Company's Cash Equivalents and Investments measured at Fair Value [Line Items]
Investments measured at fair value	145,150	129,463
Level 2 [Member] | Non-agency securities [Member]
Company's Cash Equivalents and Investments measured at Fair Value [Line Items]
Investments measured at fair value	1,116	1,393
Level 2 [Member] | Corporate debt securities [Member]
Company's Cash Equivalents and Investments measured at Fair Value [Line Items]
Investments measured at fair value	$ 10,006	$ 6,001

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 18,432	$ 75,197
Other comprehensive income before tax:
Foreign currency translation adjustments	(342)	1,447
Available-for-sale securities:
Unrealized gain on investments	1,980	338
Reclassification of net realized loss/(gain) on investments to net income	17	(142)
Derivative financial instruments:
Unrealized (loss)/gain on derivatives	(32)	640
Reclassification of net realized (gain)/loss on derivatives to net income	(162)	673
Amortization of transition asset, prior service cost and net actuarial loss on defined benefit pension and post-retirement plans	5,044	3,969
Other comprehensive income before tax	6,505	6,925
Income tax expense on unrealized gain on investments	740
Other comprehensive income, net of tax	5,765	6,925
Comprehensive income	$ 24,197	$ 82,122

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Restructuring and Other Items

3 Months Ended

Mar. 31, 2013

Restructuring And Related Activities [Abstract]

Restructuring and Other Items

Note 4 — Restructuring and Other Items

The following table summarizes items included in restructuring of operations and other items, net:

	Three Months Ended
	March 31, 2013			April 1, 2012
	(In thousands)
Lease and contract terminations	$	1,768	(a)	$	1,634	(a)
Employee severance and benefits		4,386			431
Total restructuring expense		6,154			2,065
Other items, net		14,298	(b)		13,397	(c)
Total restructuring of operations and other items, net	$	20,452		$	15,462

(a) Includes lease obligation costs for facilities that the Company ceased to use, changes in estimates, changes in time value and on-going expenditures related to previously vacated facilities.

(b) Primarily consists of $12.6 million of costs related to litigation settlements.

(c) Primarily consists of $8.3 million of SandForce, Inc. (“SandForce”) acquisition-related costs and $4.6 million of costs related to the transition service agreement associated with the sale of the external storage systems business.

The following table summarizes the significant activity within, and components of, the Company’s restructuring obligations:

	Lease and  Contract Terminations			Employee Severance and Benefits			Total
	(In thousands)
Balance at December 31, 2012	$	12,991		$	5,003		$	17,994
Expense		1,768			4,386			6,154
Utilized		(6,441	)(a)		(4,970	)(a)		(11,411	)
Balance at March 31, 2013	$	8,318	(b)	$	4,419	(b)	$	12,737

(a) Represents cash payments.

(b) The balance remaining for the lease terminations is expected to be paid during the remaining terms of the leases, which extend through 2014. The majority of the balance remaining for employee severance and benefits is expected to be paid by the end of 2013.

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Basis of Presentation - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2013
Basis Of Presentation [Abstract]
Number of weeks in a quarter for financial reporting purposes	13-or 14-week quarter

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Restructuring and Other Items - Summary of Significant Activity Within, and Components of Restructuring Obligations (Parenthetical) (Detail)	3 Months Ended
	Mar. 31, 2013
Employee severance and benefits [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Activities, Completion Date	Dec. 31, 2013
Lease terminations [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Activities, Completion Date	Dec. 31, 2014

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Stock-Based Compensation Expense (Tables)

3 Months Ended

Mar. 31, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation Expense, Net of Estimated Forfeitures

Stock-based compensation expense, net of estimated forfeitures, related to the Company’s stock options, Employee Stock Purchase Plan (“ESPP”) and restricted stock unit awards by expense category was as follows:

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In thousands)
Cost of revenues	$	2,875	$	3,512
Research and development		12,409		12,308
Selling, general and administrative		10,262		15,014
Total stock-based compensation expense	$	25,546	$	30,834

Summary of Weighted-Average Assumptions in Fair Value of Option Grant

The following table summarizes the weighted-average assumptions that the Company applied in the lattice model:

	Three Months Ended
	March 31, 2013			April 1, 2012
Estimated grant date fair value per share	$	2.33		$	2.86
Expected life (years)		4.38			4.46
Risk-free interest rate		1	%		1	%
Volatility		49	%		47	%

Summary of Changes in Stock Options Outstanding

The following table summarizes changes in stock options outstanding:

	Number of Shares			Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term		Aggregate Intrinsic Value
	(In thousands)					(In years)		(In thousands)
Options outstanding at December 31, 2012		56,042		$	5.75
Granted		6,247		$	6.89
Exercised		(2,192	)	$	3.72
Canceled		(1,006	)	$	8.24
Options outstanding at March 31, 2013		59,091		$	5.90		3.86	$	85,227
Options exercisable at March 31, 2013		39,726		$	5.87		2.72	$	62,059

Summary of Unvested Service-Based Restricted Stock

The following table summarizes changes in service-based RSUs outstanding:

	Number of Units			Weighted-Average Grant Date Fair Value per Share
	(In thousands)
Unvested service-based RSUs outstanding at December 31, 2012		17,655		$	6.99
Granted		7,227		$	6.90
Vested		(4,461	)	$	6.84
Forfeited		(309	)	$	6.77
Unvested service-based RSUs outstanding at March 31, 2013		20,112		$	7.00

Summary of Unvested Performance-Based Restricted Stock

The following table summarizes changes in performance-based RSUs outstanding:

	Number of Units			Weighted-Average Grant Date Fair Value per Share
	(In thousands)
Unvested performance-based RSUs outstanding at December 31, 2012		5,634		$	7.29
Granted		1,441		$	6.89
Vested		(2,324	)	$	7.87
Forfeited		(330	)	$	6.40
Unvested performance-based RSUs outstanding at March 31, 2013		4,421		$	6.93