Note 3 - Revenue From Contracts With Customers

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

Note 3 - Revenue from Contracts with Customers

Disaggregation of Revenue

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

	Year Ended
Revenue by Channel	December 31,				January 1,				January 2,
(In thousands)	2022				2022				2021
Product revenue - Distributors	$	591,229	89	%	$	449,650	87	%	$	339,100	83	%
Product revenue - Direct		51,988	8	%		45,202	9	%		49,402	12	%
Licensing and services		17,139	3	%		20,475	4	%		19,618	5	%
Total revenue	$	660,356	100	%	$	515,327	100	%	$	408,120	100	%
Revenue by Geographical Market
(In thousands)
United States	$	94,972	14	%	$	60,176	12	%	$	43,945	11	%
Other Americas		5,288	1	%		20,694	4	%		18,192	4	%
Americas		100,260	15	%		80,870	16	%		62,137	15	%
China		296,917	45	%		281,237	55	%		213,714	52	%
Japan		90,902	14	%		47,915	9	%		25,435	6	%
Other Asia		77,085	12	%		55,416	10	%		66,034	17	%
Asia		464,904	71	%		384,568	74	%		305,183	75	%
Europe		95,192	14	%		49,889	10	%		40,800	10	%
Total revenue	$	660,356	100	%	$	515,327	100	%	$	408,120	100	%

Contract Balances

Our contract assets relate to our rights to consideration for licenses and royalties due to us as a member of the HDMI consortium, with collection dependent on events other than the passage of time, such as collection of licenses and royalties from customers by the HDMI licensing agent. The balance results primarily from the amount of estimated revenue related to HDMI that we have recognized to date, but which has not yet been collected by the agent. Contract assets are recorded in Prepaid expenses and other current assets in our Consolidated Balance Sheets.

The following table summarizes activity during the periods presented:

(In thousands)
Contract assets as of January 2, 2021	$	5,611
Revenues recorded during the period		15,587
Transferred to Accounts receivable or collected		(15,526	)
Contract assets as of January 1, 2022	$	5,672
Revenues recorded during the period		15,848
Transferred to Accounts receivable or collected		(14,173	)
Contract assets as of December 31, 2022	$	7,347

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

(In thousands)
Contract liabilities as of January 2, 2021	$	3,068
Accruals for estimated future stock rotation and scrap returns		4,613
Less: Release of accruals for recognized stock rotation and scrap returns		(2,913	)
Contract liabilities as of January 1, 2022	$	4,768
Prepaid customer deposit		12,811
Accruals for estimated future stock rotation and scrap returns		6,142
Less: Release of accruals for recognized stock rotation and scrap returns		(6,055	)
Contract liabilities as of December 31, 2022	$	17,666