Silicon Laboratories (SLAB) 10-Q1 Nov 232023 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2023	Oct. 16, 2023
Document and Entity Information
Entity Registrant Name	SILICON LABORATORIES INC.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	000-29823
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	74-2793174
Entity Address, Address Line One	400 West Cesar Chavez
Entity Address, City or Town	Austin
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78701
City Area Code	512
Local Phone Number	416-8500
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	SLAB
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		31,779,335
Entity Central Index Key	0001038074
Current Fiscal Year End Date	--12-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 159,928	$ 499,915
Short-term investments	257,157	692,024
Accounts receivable, net	102,142	71,437
Inventories	167,581	100,417
Prepaid expenses and other current assets	86,727	97,570
Total current assets	773,535	1,461,363
Property and equipment, net	150,839	152,016
Goodwill	376,389	376,389
Other intangible assets, net	65,744	84,907
Other assets, net	108,555	94,753
Total assets	1,475,062	2,169,428
Current liabilities:
Accounts payable	48,086	89,860
Revolving line of credit	45,000
Deferred revenue and returns liability	10,066	6,780
Other current liabilities	61,991	89,136
Total current liabilities	165,143	185,776
Convertible debt, net		529,573
Other non-current liabilities	49,997	49,071
Total liabilities	215,140	764,420
Commitments and contingencies
Stockholders' equity:
Preferred stock - $0.0001 par value; 10,000 shares authorized; no shares issued
Common stock - $0.0001 par value; 250,000 shares authorized; 31,779 and 31,994 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively	3	3
Retained earnings	1,262,518	1,415,693
Accumulated other comprehensive loss	(2,599)	(10,688)
Total stockholders' equity	1,259,922	1,405,008
Total liabilities and stockholders' equity	$ 1,475,062	$ 2,169,428

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 2023	Dec. 31, 2022
Condensed Consolidated Balance Sheets (Unaudited)
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000	10,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	250,000	250,000
Common stock, shares issued	31,779	31,994
Common stock, shares outstanding	31,779	31,994

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Oct. 01, 2022	Sep. 30, 2023	Oct. 01, 2022
Condensed Consolidated Statements of Income (Unaudited)
Revenues	$ 203,760	$ 269,817	$ 695,413	$ 766,781
Cost of revenues	84,735	104,232	278,753	281,521
Gross profit	119,025	165,585	416,660	485,260
Operating expenses:
Research and development	79,042	84,624	254,340	245,677
Selling, general and administrative	27,766	50,738	113,363	144,398
Operating expenses	106,808	135,362	367,703	390,075
Operating income	12,217	30,223	48,957	95,185
Other income (expense):
Interest income and other, net	2,938	4,672	15,554	9,616
Interest expense	(1,359)	(1,527)	(4,611)	(4,874)
Income before income taxes	13,796	33,368	59,900	99,927
Provision for income taxes	3,388	14,188	23,479	36,871
Equity-method earnings (loss)	(60)	1,819	(1,150)	2,985
Net income	$ 10,348	$ 20,999	$ 35,271	$ 66,041
Earnings per share:
Basic (in dollars per share)	$ 0.33	$ 0.62	$ 1.11	$ 1.84
Diluted (in dollars per share)	$ 0.32	$ 0.60	$ 1.07	$ 1.79
Weighted-average common shares outstanding:
Basic (in shares)	31,796	34,079	31,789	35,935
Diluted (in shares)	32,078	34,779	32,919	36,968

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Oct. 01, 2022	Sep. 30, 2023	Oct. 01, 2022
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Net income	$ 10,348	$ 20,999	$ 35,271	$ 66,041
Net changes to available-for-sale securities
Unrealized gains (losses) arising during the period	1,553	(3,359)	5,936	(16,064)
Reclassification for losses included in net income	68	56	4,542	479
Net changes to cash flow hedges
Unrealized gains (losses) arising during the period	409	(1,574)	(135)	(5,119)
Reclassification for (gains) losses included in net income	(195)	1,821	(38)	2,913
Other comprehensive income (loss), before tax	1,835	(3,056)	10,305	(17,791)
Provision (benefit) for income taxes	344	(644)	2,216	(3,743)
Other comprehensive income (loss)	1,491	(2,412)	8,089	(14,048)
Comprehensive income	$ 11,839	$ 18,587	$ 43,360	$ 51,993

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings Cumulative effect of adoption of accounting standard	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Cumulative effect of adoption of accounting standard	Total
Balance at Jan. 01, 2022	$ 4	$ 0	$ (59,963)	$ 2,214,839	$ (2,419)	$ (59,963)	$ 2,212,424
Balance (in shares) at Jan. 01, 2022	38,481
Increase (Decrease) in Stockholders' Equity
Net income				66,041			66,041
Other comprehensive income (loss)					(14,048)		(14,048)
Stock issuances, net of shares withheld for taxes		(8,367)					(8,367)
Stock issuances, net of shares withheld for taxes (in shares)	316
Repurchases of common stock	$ (1)	(34,885)		(652,809)			(687,695)
Repurchases of common stock (in shares)	(5,267)
Stock-based compensation		43,252					43,252
Balance at Oct. 01, 2022	$ 3	0		1,568,108	(16,467)		1,551,644
Balance (in shares) at Oct. 01, 2022	33,530
Balance at Jul. 02, 2022	$ 3	0		1,619,396	(14,055)		1,605,344
Balance (in shares) at Jul. 02, 2022	34,223
Increase (Decrease) in Stockholders' Equity
Net income				20,999			20,999
Other comprehensive income (loss)					(2,412)		(2,412)
Stock issuances, net of shares withheld for taxes		(773)					(773)
Stock issuances, net of shares withheld for taxes (in shares)	15
Repurchases of common stock		(15,211)		(72,287)			(87,498)
Repurchases of common stock (in shares)	(708)
Stock-based compensation		15,984					15,984
Balance at Oct. 01, 2022	$ 3	0		1,568,108	(16,467)		1,551,644
Balance (in shares) at Oct. 01, 2022	33,530
Balance at Dec. 31, 2022	$ 3	0		1,415,693	(10,688)		$ 1,405,008
Balance (in shares) at Dec. 31, 2022	31,994						31,994
Increase (Decrease) in Stockholders' Equity
Net income	$ 0	0		35,271	0		$ 35,271
Other comprehensive income (loss)	0	0		0	8,089		8,089
Stock issuances, net of shares withheld for taxes	$ 0	(9,112)		0	0		(9,112)
Stock issuances, net of shares withheld for taxes (in shares)	387
Repurchases of common stock	$ 0	(24,684)		(188,446)	0		(213,130)
Repurchases of common stock (in shares)	(1,522)
Stock-based compensation	$ 0	37,360		0	0		37,360
Convertible debt activity	$ 0	(3,564)		0	0		(3,564)
Convertible debt activity (in shares)	920
Balance at Sep. 30, 2023	$ 3	0		1,262,518	(2,599)		$ 1,259,922
Balance (in shares) at Sep. 30, 2023	31,779						31,779
Balance at Jul. 01, 2023	$ 3	0		1,262,984	(4,090)		$ 1,258,897
Balance (in shares) at Jul. 01, 2023	31,861
Increase (Decrease) in Stockholders' Equity
Net income	$ 0	0		10,348	0		10,348
Other comprehensive income (loss)	0	0		0	1,491		1,491
Stock issuances, net of shares withheld for taxes	$ 0	(588)		0	0		(588)
Stock issuances, net of shares withheld for taxes (in shares)	27
Repurchases of common stock	$ 0	(5,354)		(10,814)	0		(16,168)
Repurchases of common stock (in shares)	(109)
Stock-based compensation	$ 0	5,942		0	0		5,942
Balance at Sep. 30, 2023	$ 3	$ 0		$ 1,262,518	$ (2,599)		$ 1,259,922
Balance (in shares) at Sep. 30, 2023	31,779						31,779

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Oct. 01, 2022
Operating Activities
Net income	$ 35,271	$ 66,041
Adjustments to reconcile net income to net cash provided by (used in) operating activities of continuing operations:
Depreciation of property and equipment	18,992	16,514
Amortization of other intangible assets	19,162	27,328
Amortization of debt issuance costs	960	1,492
Loss on extinguishment of convertible debt		3
Stock-based compensation expense	37,167	43,213
Equity-method (earnings) loss	1,150	(2,985)
Deferred income taxes	(5,881)	(13,126)
Changes in operating assets and liabilities:
Accounts receivable	(30,706)	21,641
Inventories	(66,971)	(39,100)
Prepaid expenses and other assets	8,085	(28,404)
Accounts payable	(37,039)	26,694
Other current liabilities and income taxes	(39,155)	17,962
Deferred revenue and returns liability	3,286	(2,144)
Other non-current liabilities	6,794	(7,713)
Net cash provided by (used in) operating activities of continuing operations	(48,885)	127,416
Investing Activities
Purchases of marketable securities	(91,493)	(579,507)
Sales of marketable securities	365,073	42,952
Maturities of marketable securities	171,766	597,399
Purchases of property and equipment	(18,533)	(20,057)
Purchases of other assets	(395)
Net cash provided by investing activities of continuing operations	426,418	40,787
Financing Activities
Proceeds from revolving line of credit	80,000
Payments on debt	(571,157)	(21)
Repurchases of common stock	(217,137)	(681,695)
Payment of taxes withheld for vested stock awards	(17,239)	(14,732)
Proceeds from the issuance of common stock	8,013	6,366
Net cash used in financing activities of continuing operations	(717,520)	(690,082)
Discontinued Operations
Operating activities	0	(69,467)
Net cash used in discontinued operations	0	(69,467)
Decrease in cash and cash equivalents	(339,987)	(591,346)
Cash and cash equivalents at beginning of period	499,915	1,074,623
Cash and cash equivalents at end of period	$ 159,928	$ 483,277

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
Significant Accounting Policies	Sep. 30, 2023
Significant Accounting Policies
Significant Accounting Policies	1. Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. The information included herein contains all normal recurring accruals and adjustments which, in the opinion of management, are necessary to present fairly Silicon Laboratories Inc.’s (the “Company”) financial position, results of its operations, comprehensive income, stockholders’ equity and cash flows. The Condensed Consolidated Balance Sheet as of December 31, 2022 was derived from the Company’s audited Consolidated Financial Statements. All intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for the full year. These Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto for the year ended December 31, 2022, included in the Company’s Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 1, 2023. The Company prepares financial statements on a 52- or 53-week fiscal year that ends on the Saturday closest to December 31. Fiscal 2023 will have 52 weeks and fiscal 2022 had 52 weeks. In a 52-week year, each fiscal quarter consists of 13 weeks. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Among the significant estimates affecting the financial statements are those related to inventories, goodwill, acquired intangible assets, other long-lived assets, revenue recognition, stock-based compensation and income taxes. Actual results could differ from those estimates, and such differences could be material to the financial statements. The Company periodically reviews the assumptions used in its financial statement estimates. Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Substantially all of the Company’s contracts with customers contain a single performance obligation, the sale of mixed-signal integrated circuit (“IC”) products. This performance obligation is satisfied when control of the product is transferred to the customer, which typically occurs upon delivery. Unsatisfied performance obligations primarily represent contracts for products with future delivery dates. The Company has opted to not disclose the amount of unsatisfied performance obligations as these contracts have original expected durations of less than one year. The transaction price reflects the Company’s expectations about the consideration it will be entitled to receive from the customer and may include fixed or variable amounts. Variable consideration primarily includes sales made to distributors under agreements allowing certain rights of return, referred to as stock rotation, and credits issued to the distributor due to price protection. The Company estimates variable consideration at the most likely amount to which it expects to be entitled. The estimate is based on information available to the Company, including recent sales activity and pricing data. The Company applies a constraint to its variable consideration estimate which considers both the likelihood of a return and the amount of a potential price concession. Variable consideration that does not meet revenue recognition criteria is deferred. The Company records a right of return asset in prepaid expenses and other current assets for the costs of distributor inventory not meeting revenue recognition criteria. A corresponding deferred revenue and returns liability amount is recorded for unrecognized revenue associated with such costs. The Company’s products carry a one-year replacement warranty. Payments are typically due within 30 days of invoicing and do not include a significant financing component.

Earnings Per Share

Earnings Per Share	9 Months Ended
Earnings Per Share	Sep. 30, 2023
Earnings Per Share
Earnings Per Share	2. Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2023 2022 2023 2022 Net income $ 10,348 $ 20,999 $ 35,271 $ 66,041 Shares used in computing basic earnings per share 31,796 34,079 31,789 35,935 Effect of dilutive securities: Convertible debt and stock-based awards 282 700 1,130 1,033 Shares used in computing diluted earnings per share 32,078 34,779 32,919 36,968 Earnings per share: Basic $ 0.33 $ 0.62 $ 1.11 $ 1.84 Diluted $ 0.32 $ 0.60 $ 1.07 $ 1.79 The Company irrevocably elected to settle the principal amount of its 0.625% convertible senior notes due 2025 (the “2025 Notes”) in cash and intended to settle any excess value in shares in the event of a conversion. In June 2023, the Company paid $535.0 million in cash and issued 0.9 million shares of common stock in connection with the conversions and redemptions of the 2025 Notes. For the three and nine months ended September 30, 2023 and October 1, 2022, approximately 0.0 million, 0.7 million, 0.4 million, and 0.7 million shares, respectively, were included in the denominator for the calculation of diluted earnings per share (related to the not yet converted or redeemed 2025 Notes.) See Note 6, Debt

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
Fair Value of Financial Instruments	Sep. 30, 2023
Fair Value of Financial Instruments
Fair Value of Financial Instruments	3. Fair Value of Financial Instruments The fair values of the Company’s financial instruments are recorded using a hierarchical disclosure framework based upon the level of subjectivity of the inputs used in measuring assets and liabilities. The three levels are described below: Level 1 - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 - Inputs other than Level 1 that are directly or indirectly observable, such as quoted prices for similar assets or liabilities and quoted prices in less active markets. Level 3 - Inputs are unobservable for the asset or liability and are developed based on the best information available in the circumstances, which might include the Company’s own data. 3. Fair Value of Financial Instruments (Continued) The following summarizes the valuation of the Company’s financial instruments (in thousands). The tables do not include either cash on hand or assets and liabilities that are measured at historical cost or any basis other than fair value. Fair Value Measurements at September 30, 2023 Using Quoted Prices in Significant Other Active Markets for Observable Identical Assets Inputs Description (Level 1) (Level 2) Total Cash equivalents: Money market funds $ 57,144 $ — $ 57,144 Total cash equivalents $ 57,144 $ — $ 57,144 Short-term investments: Corporate debt securities $ — $ 166,868 $ 166,868 Government debt securities — 90,289 90,289 Total short-term investments $ — $ 257,157 $ 257,157 Total $ 57,144 $ 257,157 $ 314,301 Fair Value Measurements at December 31, 2022 Using Quoted Prices in Significant Other Active Markets for Observable Identical Assets Inputs Description (Level 1) (Level 2) Total Cash equivalents: Money market funds $ 310,969 $ — $ 310,969 Corporate debt securities — 3,249 3,249 Total cash equivalents $ 310,969 $ 3,249 $ 314,218 Short-term investments: Corporate debt securities $ — $ 501,014 $ 501,014 Government debt securities — 191,010 191,010 Total short-term investments $ — $ 692,024 $ 692,024 Total $ 310,969 $ 695,273 $ 1,006,242 Valuation methodology The Company’s cash equivalents and short-term investments that are classified as Level 2 are valued using non-binding market consensus prices that are corroborated with observable market data; quoted market prices for similar instruments in active markets; quoted prices in less active markets; or pricing models, such as a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data. The Company’s foreign currency derivative instruments are valued using discounted cash flow models. The assumptions used in preparing the valuation models include foreign exchange rates, forward and spot prices for currencies and market observable data of similar instruments. 3. Fair Value of Financial Instruments (Continued) Contractual maturities of investments The Company’s available-for-sale investments are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive loss in the Condensed Consolidated Balance Sheet. The following summarizes the contractual underlying maturities of the Company’s available-for-sale investments at September 30, 2023 (in thousands): Fair Cost Value Due in one year or less $ 195,410 $ 193,040 Due after one year through five years 64,803 64,117 $ 260,213 $ 257,157 Unrealized Gains and Losses The available-for-sale investments that were in a continuous unrealized loss position, aggregated by length of time that individual securities have been in a continuous loss position, were as follows (in thousands): Less Than 12 Months 12 Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized As of September 30, 2023 Value Losses Value Losses Value Losses Corporate debt securities $ 13,876 $ (13) $ 132,920 $ (1,865) $ 146,796 $ (1,878) Government debt securities 49,597 (341) 37,762 (908) 87,359 (1,249) $ 63,473 $ (354) $ 170,682 $ (2,773) $ 234,155 $ (3,127) Less Than 12 Months 12 Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized As of December 31, 2022 Value Losses Value Losses Value Losses Corporate debt securities $ 307,085 $ (5,297) $ 185,467 $ (4,090) $ 492,552 $ (9,387) Government debt securities 76,651 (626) 100,209 (3,541) 176,860 (4,167) $ 383,736 $ (5,923) $ 285,676 $ (7,631) $ 669,412 $ (13,554) The gross unrealized losses as of September 30, 2023 and December 31, 2022 were due primarily to changes in market interest rates. At September 30, 2023 and December 31, 2022, there were no material unrealized gains associated with the Company’s available-for-sale investments. The Company records an allowance for credit loss when a decline in investment market value is due to credit-related factors. When evaluating an investment for impairment, the Company reviews factors such as the severity of the impairment, changes in underlying credit ratings, forecasted recovery, the Company’s intent to sell or the likelihood that it would be required to sell the investment before its anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. As of September 30, 2023, there were no material declines in the market value of available-for-sale investments due to credit-related factors. 3. Fair Value of Financial Instruments (Continued) Fair values of other financial instruments Prior to its conversion or redemption in June 2023, the Company’s debt was recorded at cost, but measured at fair value for disclosure purposes. The fair value of the Company’s 2025 Notes was determined using observable market prices. The notes were traded in less active markets and were therefore classified as a Level 2 fair value measurement. As of December 31, 2022, the fair value of the 2025 Notes was $671.9 million. No notes were outstanding as of September 30, 2023. The Company’s other financial instruments, including cash, accounts receivable and accounts payable, are recorded at amounts that approximate their fair values due to their short maturities.

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
Derivative Financial Instruments	Sep. 30, 2023
Derivative Financial Instruments
Derivative Financial Instruments	4. Derivative Financial Instruments The Company uses derivative financial instruments to manage certain exposures to the variability of foreign currency exchange rates. The Company’s objective is to offset increases and decreases in expenses resulting from these exposures with gains and losses on the derivative contracts, thereby reducing volatility of earnings. The Company does not use derivative contracts for speculative or trading purposes. The Company recognizes derivatives, on a gross basis, in the Condensed Consolidated Balance Sheet at fair value. Cash flows from derivatives are classified according to the nature of the cash receipt or payment in the Condensed Consolidated Statement of Cash Flows. Cash Flow Hedges Foreign Currency Forward Contracts The Company uses foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on operating expenses denominated in currencies other than the U.S. dollar. Changes in the fair value of the contracts are recorded in accumulated other comprehensive income (loss) in the Condensed Consolidated Balance Sheet and subsequently reclassified into earnings in the period during which the hedged transaction is recognized. The reclassified amount is reported in the same financial statement line item as the hedged item. If the foreign currency forward contracts are terminated or can no longer qualify as hedging instruments prior to maturity, the fair value of the contracts recorded in accumulated other comprehensive income (loss) may be recognized in the Condensed Consolidated Statement of Income based on an assessment of the contracts at the time of termination. The Company has entered into foreign currency forward contracts for a portion of its forecasted operating expenses denominated in Norwegian Krone. As of September 30, 2023, the contracts had maturities of one Non-designated Hedges Foreign Currency Forward Contracts The Company uses foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on non-U.S. dollar balance sheet exposures. The Company recognizes gains and losses on the foreign currency forward contracts in interest income and other, net in the Consolidated Statement of Income in the same period as the remeasurement loss and gain of the related foreign currency denominated asset or liability. The Company does not apply hedge accounting to these foreign currency forward contracts. As of September 30, 2023, the Company held foreign currency forward contracts denominated in the Euro with an aggregate notional value of $7.4 million. The fair value of the foreign contracts and contract gains and losses recognized in income were not material for any of the periods presented.

Supplemental Information

Supplemental Information	9 Months Ended
Supplemental Information	Sep. 30, 2023
Supplemental Information
Supplemental Information	5. Supplemental Information The following table shows the details of selected Condensed Consolidated Balance Sheet items (in thousands): Inventories September 30, December 31, 2023 2022 Work in progress $ 150,248 $ 75,112 Finished goods 17,333 25,305 $ 167,581 $ 100,417 Lease income The Company leases a portion of its headquarter facilities to other tenants. Lease income from operating leases was $2.3 million and $5.4 million during the nine months ended September 30, 2023 and October 1, 2022, respectively.

Debt

Debt	9 Months Ended
Debt	Sep. 30, 2023
Debt
Debt	6. Debt 0.625% Convertible Senior Notes On June 1, 2020, the Company completed a private placement of $535 million principal amount convertible senior notes (the “2025 Notes”). The 2025 Notes bore interest semi-annually at a rate of 0.625% per year and were scheduled to mature on June 15, 2025. On March 22, 2023, the Company issued a notice of redemption for the 2025 Notes. Prior to the redemption, the Company received conversion notices representing $533.6 million principal amount of the notes. The Company paid $533.6 million in cash and issued 0.9 million shares of common stock, as well as $47 thousand in cash in lieu of fractional shares, for the conversions. Notes representing $1.4 million principal amount were redeemed at par, plus accrued interest. All note conversions and redemptions were completed in June 2023. The carrying amount of the 2025 Notes consisted of the following (in thousands): December 31, 2022 Principal $ 534,980 Unamortized debt issuance costs (5,407) Net carrying amount $ 529,573 Interest expense related to the 2025 Notes was comprised of the following (in thousands): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2023 2022 2023 2022 Contractual interest expense $ — $ 826 $ 1,493 $ 2,511 Amortization of debt issuance costs — 498 960 1,492 $ — $ 1,324 $ 2,453 $ 4,003 The 2025 Notes were recorded in convertible debt, net on the Condensed Consolidated Balance Sheet. The remaining balance of the debt issuance costs was recognized in stockholders’ equity for the 2025 Notes that were converted and as debt extinguishment loss for the 2025 Notes that were redeemed in the second quarter of fiscal 2023. 6. Debt (Continued) Credit Facility The Company and certain of its domestic subsidiaries (the “Guarantors”) have a $400 million revolving credit facility, as amended on June 30, 2023, with a maturity date of June 30, 2028. The credit facility includes a $25 million letter of credit sublimit and a $10 million swingline loan sublimit. The Company also has an option to increase the size of the borrowing capacity by up to the greater of an aggregate of $250 million and 100% of EBITDA of the last four fiscal quarters, plus an amount that would not cause a secured net leverage ratio (funded debt secured by assets/EBITDA) to exceed 3.50 to 1.00, subject to certain conditions. The credit facility, other than swingline loans, will bear interest at the Adjusted Term Secured Overnight Financing Rate (“SOFR”) plus an applicable margin or, at the option of the Company, a base rate (defined as the highest of the Wells Fargo prime rate, the Federal Funds rate plus 0.50% and the Adjusted Term SOFR plus 1.00%) plus an applicable margin. Swingline loans accrue interest at the base rate plus the applicable margin for base rate loans. The applicable margins for the Adjusted Term SOFR loans range from 1.00% to 1.75% and for base rate loans range from 0.00% to 0.75%, depending in each case, on the leverage ratio as defined in the credit facility. The credit facility contains various conditions, covenants and representations with which the Company must be in compliance in order to borrow funds and to avoid an event of default, including financial covenants that the Company must maintain a consolidated net leverage ratio (funded indebtedness less cash and cash equivalents up to $750 million and divided by EBITDA) of no more than 4.25 to 1, and a minimum interest coverage ratio (EBITDA/interest payments) of no less than 2.50 to 1. As of September 30, 2023, the Company was in compliance with all covenants of the credit facility. The Company’s obligations under the credit facility are guaranteed by the Guarantors and are secured by a security interest in substantially all assets of the Company and the Guarantors. As of September 30, 2023, $45.0 million was outstanding on the credit facility.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2023
Commitments and Contingencies
Commitments and Contingencies	7. Commitments and Contingencies Litigation The Company is involved in various legal proceedings that have arisen in the normal course of business. While the ultimate results cannot be predicted with certainty, the Company does not expect them to have a material adverse effect on its Condensed Consolidated Financial Statements.

Revenues

Revenues	9 Months Ended
Revenues	Sep. 30, 2023
Revenues
Revenues	8. Revenues The Company groups its products as Industrial & Commercial or Home & Life based on the target markets they address. The following represents revenue by product category (in thousands): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2023 2022 2023 2022 Industrial & Commercial $ 120,957 $ 145,661 $ 436,973 $ 416,475 Home & Life 82,803 124,156 258,440 350,306 $ 203,760 $ 269,817 $ 695,413 $ 766,781 A portion of the Company’s sales are made to distributors under agreements allowing certain rights of return and/or price protection related to the final selling price to the end customers. These factors impact the timing and uncertainty of revenues and cash flows. During the three and nine months ended September 30, 2023, the Company did not recognize any revenue related to performance obligations that were satisfied in previous reporting periods. During the three and nine months ended October 1, 2022, the Company recognized revenue of $4.5 million and $30.7 million, respectively, from performance obligations that were satisfied in previous reporting periods. The following disaggregates the Company’s revenue by sales channel (in thousands): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2023 2022 2023 2022 Distributors $ 164,444 $ 217,355 $ 556,963 $ 621,563 Direct customers 39,316 52,462 138,450 145,218 $ 203,760 $ 269,817 $ 695,413 $ 766,781

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
Stock-Based Compensation	Sep. 30, 2023
Stock-Based Compensation
Stock-Based Compensation	9. Stock-Based Compensation Stock-based compensation costs are based on the fair values on the date of grant for stock awards and stock options and on the date of enrollment for the employee stock purchase plans. The fair values of stock awards (such as restricted stock units (“RSUs”), performance stock units (“PSUs”) and restricted stock awards (“RSAs”)) are estimated based on their intrinsic values. The fair values of market stock awards (“MSUs”) are estimated using a Monte Carlo simulation. The fair values of stock options and employee stock purchase plans are estimated using the Black-Scholes option-pricing model. The following table presents details of stock-based compensation costs recognized in the Condensed Consolidated Statements of Income (in thousands): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2023 2022 2023 2022 Cost of revenues $ 192 $ 288 $ 774 $ 834 Research and development 8,598 8,788 26,903 23,482 Selling, general and administrative (3,000) 6,874 9,490 18,897 5,790 15,950 37,167 43,213 Income tax benefit 505 1,230 4,446 4,444 Total $ 5,285 $ 14,720 $ 32,721 $ 38,769 For the three months ended September 30, 2023, the Company recognized an expense reversal of $9.5 million to reflect a reduction in the estimated levels of achievement related to unvested performance stock units. The Company had approximately $103.8 million of total unrecognized compensation cost related to equity grants as of September 30, 2023 that is expected to be recognized over a weighted-average period of approximately 2.2 years. There were no significant stock-based compensation costs capitalized into assets in any of the periods presented.

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2023
Income Taxes
Income Taxes	10. Income Taxes Provision for income taxes includes both domestic and foreign income taxes at the applicable tax rates adjusted for non-deductible expenses, research and development tax credits, global intangible low-taxed income, Subpart F income inclusions, and other permanent differences. Typically, the Company’s interim provision for income taxes is determined using an estimated annual effective tax rate, adjusted for discrete tax items. Under certain circumstances where the Company is unable to make a reliable estimate of the annual effective tax rate, it uses the actual effective tax rate for the year-to-date period. For the three and nine months ended September 30, 2023, the Company used this approach due to the variability of the rate as a result of fluctuations in forecasted pre-tax income. Income tax expense was $3.4 million and $14.2 million for the three months ended September 30, 2023 and October 1, 2022, resulting in effective tax rates of 24.7% and 40.3%, respectively. Income tax expense was $23.5 million and $36.9 million for the nine months ended September 30, 2023, and October 1, 2022, resulting in effective tax rates of 40.0% and 35.8%, respectively. The decrease in the effective tax rate for the three months ended September 30, 2023 as compared to the prior period was primarily due to a decrease in nondeductible stock compensation and a delay in the application of unfavorable foreign tax credit Treasury regulations that was announced during the recent quarter, partially offset by the increased impact of global intangible low-taxed income relative to lower pre-tax book income. The increase in the effective tax rate for the nine months ended September 30, 2023 as compared to the prior period was primarily due the increased impact of global intangible low-taxed income relative to lower pre-tax book income, partially offset by discrete U.S. federal and state return-to-provision benefits recorded in the recent nine-month period. Uncertain Tax Positions As of September 30, 2023, the Company had gross unrecognized tax benefits, inclusive of interest, of $5.2 million, all of which would affect the effective tax rate if recognized. During the nine months ended September 30, 2023, the Company did not release any unrecognized tax benefits. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. These amounts were not material for any of the periods presented. Following the completion of the Norwegian Tax Administration (“NTA”) examination of the Company’s Norwegian subsidiary for income tax matters relating to fiscal years 2013 - 2016, the Company received an assessment from the NTA in December 2017 concerning an adjustment to its 2013 taxable income related to the pricing of an intercompany transaction. The Company is currently appealing the assessment. The adjustment to the pricing of the intercompany transaction results in approximately 141.3 million Norwegian kroner, or $13.2 million, additional Norwegian income tax. The Company disagrees with the NTA’s assessment and believes the Company’s position on this matter is more likely than not to be sustained. The Company plans to exhaust all available administrative remedies. If unable to resolve this matter through administrative remedies with the NTA, the Company plans to pursue judicial remedies. The Company believes that it has accrued adequate reserves related to all matters contained in tax periods open to examination. Should the Company experience an unfavorable outcome in the NTA matter, however, such an outcome could have a material impact on its financial statements. Tax years 2015 through 2023 remain open to examination by the major taxing jurisdictions in which the Company operates. The Company’s 2021 tax year is currently under examination in India. Although the outcome of tax audits is always uncertain, the Company believes that the results of the examination will not materially impact its financial position or results of operations. The Company is not currently under audit in any other major taxing jurisdiction. The Company does not expect material changes to its gross unrecognized tax benefits in the next 12 months.

Subsequent Event

Subsequent Event	9 Months Ended
Subsequent Event	Sep. 30, 2023
Subsequent Event
Subsequent Event	11. Subsequent Event The Company expects to incur approximately $6.5 million of restructuring related expense in the fourth quarter of fiscal year 2023, consisting primarily of reduction-in-force severance charges.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	9 Months Ended
Significant Accounting Policies (Policies)	Sep. 30, 2023
Significant Accounting Policies
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. The information included herein contains all normal recurring accruals and adjustments which, in the opinion of management, are necessary to present fairly Silicon Laboratories Inc.’s (the “Company”) financial position, results of its operations, comprehensive income, stockholders’ equity and cash flows. The Condensed Consolidated Balance Sheet as of December 31, 2022 was derived from the Company’s audited Consolidated Financial Statements. All intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for the full year. These Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto for the year ended December 31, 2022, included in the Company’s Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 1, 2023. The Company prepares financial statements on a 52- or 53-week fiscal year that ends on the Saturday closest to December 31. Fiscal 2023 will have 52 weeks and fiscal 2022 had 52 weeks. In a 52-week year, each fiscal quarter consists of 13 weeks.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Among the significant estimates affecting the financial statements are those related to inventories, goodwill, acquired intangible assets, other long-lived assets, revenue recognition, stock-based compensation and income taxes. Actual results could differ from those estimates, and such differences could be material to the financial statements. The Company periodically reviews the assumptions used in its financial statement estimates.
Revenue Recognition	Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Substantially all of the Company’s contracts with customers contain a single performance obligation, the sale of mixed-signal integrated circuit (“IC”) products. This performance obligation is satisfied when control of the product is transferred to the customer, which typically occurs upon delivery. Unsatisfied performance obligations primarily represent contracts for products with future delivery dates. The Company has opted to not disclose the amount of unsatisfied performance obligations as these contracts have original expected durations of less than one year. The transaction price reflects the Company’s expectations about the consideration it will be entitled to receive from the customer and may include fixed or variable amounts. Variable consideration primarily includes sales made to distributors under agreements allowing certain rights of return, referred to as stock rotation, and credits issued to the distributor due to price protection. The Company estimates variable consideration at the most likely amount to which it expects to be entitled. The estimate is based on information available to the Company, including recent sales activity and pricing data. The Company applies a constraint to its variable consideration estimate which considers both the likelihood of a return and the amount of a potential price concession. Variable consideration that does not meet revenue recognition criteria is deferred. The Company records a right of return asset in prepaid expenses and other current assets for the costs of distributor inventory not meeting revenue recognition criteria. A corresponding deferred revenue and returns liability amount is recorded for unrecognized revenue associated with such costs. The Company’s products carry a one-year replacement warranty. Payments are typically due within 30 days of invoicing and do not include a significant financing component.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
Earnings Per Share (Tables)	Sep. 30, 2023
Earnings Per Share
Schedule of computation of basic and diluted earnings per share	The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2023 2022 2023 2022 Net income $ 10,348 $ 20,999 $ 35,271 $ 66,041 Shares used in computing basic earnings per share 31,796 34,079 31,789 35,935 Effect of dilutive securities: Convertible debt and stock-based awards 282 700 1,130 1,033 Shares used in computing diluted earnings per share 32,078 34,779 32,919 36,968 Earnings per share: Basic $ 0.33 $ 0.62 $ 1.11 $ 1.84 Diluted $ 0.32 $ 0.60 $ 1.07 $ 1.79

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
Fair Value of Financial Instruments (Tables)	Sep. 30, 2023
Fair Value of Financial Instruments
Summary of valuation of the financial instruments	The following summarizes the valuation of the Company’s financial instruments (in thousands). The tables do not include either cash on hand or assets and liabilities that are measured at historical cost or any basis other than fair value. Fair Value Measurements at September 30, 2023 Using Quoted Prices in Significant Other Active Markets for Observable Identical Assets Inputs Description (Level 1) (Level 2) Total Cash equivalents: Money market funds $ 57,144 $ — $ 57,144 Total cash equivalents $ 57,144 $ — $ 57,144 Short-term investments: Corporate debt securities $ — $ 166,868 $ 166,868 Government debt securities — 90,289 90,289 Total short-term investments $ — $ 257,157 $ 257,157 Total $ 57,144 $ 257,157 $ 314,301 Fair Value Measurements at December 31, 2022 Using Quoted Prices in Significant Other Active Markets for Observable Identical Assets Inputs Description (Level 1) (Level 2) Total Cash equivalents: Money market funds $ 310,969 $ — $ 310,969 Corporate debt securities — 3,249 3,249 Total cash equivalents $ 310,969 $ 3,249 $ 314,218 Short-term investments: Corporate debt securities $ — $ 501,014 $ 501,014 Government debt securities — 191,010 191,010 Total short-term investments $ — $ 692,024 $ 692,024 Total $ 310,969 $ 695,273 $ 1,006,242
Schedule of maturities of the Company's available-for-sale investments and money market funds	The Company’s available-for-sale investments are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive loss in the Condensed Consolidated Balance Sheet. The following summarizes the contractual underlying maturities of the Company’s available-for-sale investments at September 30, 2023 (in thousands): Fair Cost Value Due in one year or less $ 195,410 $ 193,040 Due after one year through five years 64,803 64,117 $ 260,213 $ 257,157
Schedule of available-for-sale investments in continuous unrealized loss position	The available-for-sale investments that were in a continuous unrealized loss position, aggregated by length of time that individual securities have been in a continuous loss position, were as follows (in thousands): Less Than 12 Months 12 Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized As of September 30, 2023 Value Losses Value Losses Value Losses Corporate debt securities $ 13,876 $ (13) $ 132,920 $ (1,865) $ 146,796 $ (1,878) Government debt securities 49,597 (341) 37,762 (908) 87,359 (1,249) $ 63,473 $ (354) $ 170,682 $ (2,773) $ 234,155 $ (3,127) Less Than 12 Months 12 Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized As of December 31, 2022 Value Losses Value Losses Value Losses Corporate debt securities $ 307,085 $ (5,297) $ 185,467 $ (4,090) $ 492,552 $ (9,387) Government debt securities 76,651 (626) 100,209 (3,541) 176,860 (4,167) $ 383,736 $ (5,923) $ 285,676 $ (7,631) $ 669,412 $ (13,554)

Supplemental Information (Table

Supplemental Information (Tables)	9 Months Ended
Supplemental Information (Tables)	Sep. 30, 2023
Supplemental Information
Schedule of Inventories	The following table shows the details of selected Condensed Consolidated Balance Sheet items (in thousands): Inventories September 30, December 31, 2023 2022 Work in progress $ 150,248 $ 75,112 Finished goods 17,333 25,305 $ 167,581 $ 100,417

Debt (Tables)

Debt (Tables)	9 Months Ended
Debt (Tables)	Sep. 30, 2023
Debt
Schedule of information about the equity and liability components of convertible debt	The carrying amount of the 2025 Notes consisted of the following (in thousands): December 31, 2022 Principal $ 534,980 Unamortized debt issuance costs (5,407) Net carrying amount $ 529,573
Schedule of components of interest expense	Interest expense related to the 2025 Notes was comprised of the following (in thousands): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2023 2022 2023 2022 Contractual interest expense $ — $ 826 $ 1,493 $ 2,511 Amortization of debt issuance costs — 498 960 1,492 $ — $ 1,324 $ 2,453 $ 4,003 The 2025 Notes were recorded in convertible debt, net on the Condensed Consolidated Balance Sheet. The remaining balance of the debt issuance costs was recognized in stockholders’ equity for the 2025 Notes that were converted and as debt extinguishment loss for the 2025 Notes that were redeemed in the second quarter of fiscal 2023.

Revenues (Tables)

Revenues (Tables)	9 Months Ended
Revenues (Tables)	Sep. 30, 2023
Revenues
Schedule of disaggregation of revenue	The following represents revenue by product category (in thousands): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2023 2022 2023 2022 Industrial & Commercial $ 120,957 $ 145,661 $ 436,973 $ 416,475 Home & Life 82,803 124,156 258,440 350,306 $ 203,760 $ 269,817 $ 695,413 $ 766,781 Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2023 2022 2023 2022 Distributors $ 164,444 $ 217,355 $ 556,963 $ 621,563 Direct customers 39,316 52,462 138,450 145,218 $ 203,760 $ 269,817 $ 695,413 $ 766,781

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
Stock-Based Compensation (Tables)	Sep. 30, 2023
Stock-Based Compensation
Schedule of stock-based compensation costs recognized in the Condensed Consolidated Statements of Income	The following table presents details of stock-based compensation costs recognized in the Condensed Consolidated Statements of Income (in thousands): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2023 2022 2023 2022 Cost of revenues $ 192 $ 288 $ 774 $ 834 Research and development 8,598 8,788 26,903 23,482 Selling, general and administrative (3,000) 6,874 9,490 18,897 5,790 15,950 37,167 43,213 Income tax benefit 505 1,230 4,446 4,444 Total $ 5,285 $ 14,720 $ 32,721 $ 38,769

Significant Accounting Polici_3

Significant Accounting Policies (Details)	9 Months Ended	12 Months Ended
Significant Accounting Policies (Details)	Sep. 30, 2023	Dec. 31, 2022
Significant Accounting Policies
Length of fiscal year	364 days	364 days
Number of days in each fiscal quarter for 52-week fiscal year	91 days
Minimum
Significant Accounting Policies
Length of fiscal year	364 days
Maximum
Significant Accounting Policies
Length of fiscal year	371 days

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Sep. 30, 2023	Oct. 01, 2022	Sep. 30, 2023	Oct. 01, 2022	Jun. 01, 2020
Earnings Per Share:
Net income		$ 10,348	$ 20,999	$ 35,271	$ 66,041
Shares used in computing basic earnings per share		31,796	34,079	31,789	35,935
Effect of dilutive securities:
Convertible debt and stock-based awards		282	700	1,130	1,033
Shares used in computing diluted earnings per share		32,078	34,779	32,919	36,968
Earnings per share:
Basic (in dollars per share)		$ 0.33	$ 0.62	$ 1.11	$ 1.84
Diluted (in dollars per share)		$ 0.32	$ 0.60	$ 1.07	$ 1.79
Shares attributable to dilutive effect of conversion of debt securities		0	700	400	700
0.625% Convertible Senior Notes (2025 Notes)
Earnings per share:
Interest rate (as a percent)		0.625%		0.625%		0.625%
Repayment of convertible senior notes	$ 535,000
Number of shares of common stock issued in connection with redemption of convertible senior notes	900

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Valuation of financial instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Fair Value of Financial Instruments
Cash equivalents	$ 57,144	$ 314,218
Short-term investments	257,157	692,024
Total	314,301	1,006,242
Money market funds
Fair Value of Financial Instruments
Cash equivalents	57,144	310,969
Corporate debt securities
Fair Value of Financial Instruments
Cash equivalents		3,249
Short-term investments	166,868	501,014
Government debt securities
Fair Value of Financial Instruments
Short-term investments	90,289	191,010
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value of Financial Instruments
Cash equivalents	57,144	310,969
Total	57,144	310,969
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Money market funds
Fair Value of Financial Instruments
Cash equivalents	57,144	310,969
Significant Other Observable Inputs (Level 2)
Fair Value of Financial Instruments
Cash equivalents		3,249
Short-term investments	257,157	692,024
Total	257,157	695,273
Significant Other Observable Inputs (Level 2) \| Corporate debt securities
Fair Value of Financial Instruments
Cash equivalents		3,249
Short-term investments	166,868	501,014
Significant Other Observable Inputs (Level 2) \| Government debt securities
Fair Value of Financial Instruments
Short-term investments	$ 90,289	$ 191,010

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Contractual maturities of investments (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Cost
Due in one year or less, Cost	$ 195,410
Due after one year through five years, Cost	64,803
Total Cost	260,213
Fair Value
Due in one year or less, Fair Value	193,040
Due after one year through five years, Fair Value	64,117
Total Fair Value	$ 257,157

Fair Value of Financial Instr_5

Fair Value of Financial Instruments - Unrealized Gains and Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale investments, continuous loss position for less than twelve months	$ 63,473	$ 383,736
Fair value of available-for-sale investments, continuous loss position for twelve months or greater	170,682	285,676
Total fair value of available-for-sale investments, continuous loss position	234,155	669,412
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale investments, continuous loss position for less than 12 months, gross unrealized losses	(354)	(5,923)
Available-for-sale investments, continuous loss position for 12 months or greater, gross unrealized losses	(2,773)	(7,631)
Available-for-sale investments, total gross unrealized losses	(3,127)	(13,554)
Corporate debt securities
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale investments, continuous loss position for less than twelve months	13,876	307,085
Fair value of available-for-sale investments, continuous loss position for twelve months or greater	132,920	185,467
Total fair value of available-for-sale investments, continuous loss position	146,796	492,552
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale investments, continuous loss position for less than 12 months, gross unrealized losses	(13)	(5,297)
Available-for-sale investments, continuous loss position for 12 months or greater, gross unrealized losses	(1,865)	(4,090)
Available-for-sale investments, total gross unrealized losses	(1,878)	(9,387)
Government debt securities
Continuous unrealized loss position, Fair Value
Fair value of available-for-sale investments, continuous loss position for less than twelve months	49,597	76,651
Fair value of available-for-sale investments, continuous loss position for twelve months or greater	37,762	100,209
Total fair value of available-for-sale investments, continuous loss position	87,359	176,860
Continuous unrealized loss position, Gross Unrealized Losses
Available-for-sale investments, continuous loss position for less than 12 months, gross unrealized losses	(341)	(626)
Available-for-sale investments, continuous loss position for 12 months or greater, gross unrealized losses	(908)	(3,541)
Available-for-sale investments, total gross unrealized losses	$ (1,249)	$ (4,167)

Fair Value of Financial Instr_6

Fair Value of Financial Instruments - Fair values of other financial instruments (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Convertible notes 2025 \| Level 2
Fair Value of Financial Instruments
Fair value of debt	$ 0	$ 671.9

Derivative Financial Instrume_2

Derivative Financial Instruments (Details) - Foreign currency forward contracts $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($)
Non-designated Hedges
Derivative Financial Instruments
Derivative, notional amount	$ 7.4
Cash flow hedges
Derivative Financial Instruments
Derivative, notional amount	$ 2
Cash flow hedges \| Minimum
Derivative Financial Instruments
Maturity of contracts	1 month
Cash flow hedges \| Maximum
Derivative Financial Instruments
Maturity of contracts	3 months

Supplemental Information (Detai

Supplemental Information (Details) - USD ($) $ in Thousands	9 Months Ended
Supplemental Information (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Oct. 01, 2022	Dec. 31, 2022
Inventories
Work in progress	$ 150,248		$ 75,112
Finished goods	17,333		25,305
Inventories	167,581		$ 100,417
Lease income
Lease income	$ 2,300	$ 5,400
Lease income, Statements of Income location	Selling, general and administrative	Selling, general and administrative

Debt - Convertible Senior Notes

Debt - Convertible Senior Notes (Details) - 0.625% Convertible Senior Notes (2025 Notes) - USD ($) $ in Thousands, shares in Millions	1 Months Ended
	Jun. 30, 2023	Sep. 30, 2023	Mar. 22, 2023	Jun. 01, 2020
Debt
Principal amount			$ 533,600	$ 535,000
Semi-annual interest rate (as a percent)		0.625%		0.625%
Repayment of convertible senior notes including conversions and redemptions	$ 533,600
Number of shares of common stock issued in connection with redemption of convertible senior notes	0.9
Payments made in lieu of fractional shares	$ 47
Principal amount were redeemed at par, plus accrued interest	$ 1,400

Debt - Convertible Debt, Net (D

Debt - Convertible Debt, Net (Details) - 0.625% Convertible Senior Notes (2025 Notes) $ in Thousands	Dec. 31, 2022 USD ($)
Liability component
Principal	$ 534,980
Unamortized debt issuance costs	(5,407)
Net carrying amount	$ 529,573

Debt - Interest expense (Detail

Debt - Interest expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Debt - Interest expense (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Oct. 01, 2022	Sep. 30, 2023	Oct. 01, 2022
Interest expense related to the notes
Interest Expense, Total	$ 1,359	$ 1,527	$ 4,611	$ 4,874
Convertible Senior Notes
Interest expense related to the notes
Contractual interest expense		826	1,493	2,511
Amortization of debt issuance costs		498	960	1,492
Interest Expense, Total		$ 1,324	$ 2,453	$ 4,003

Debt - Credit Facility (Details

Debt - Credit Facility (Details) $ in Millions	9 Months Ended
Debt - Credit Facility (Details) $ in Millions	Sep. 30, 2023 USD ($)
Debt
Cash and cash equivalents used in net leverage ratio	$ 750
Credit Facility
Debt
Amount outstanding	45
Credit Facility \| Scenario: Company's option to increase borrowing capacity
Debt
Additional increase in borrowing capacity of the line of credit available at the entity's option	$ 250
Additional increase in borrowing capacity based on EBITDA (as a percent)	100%
Maximum secured net leverage ratio	3.50
Credit Facility \| Scenario: Credit facility debt covenants
Debt
Maximum net leverage ratio	4.25
Maximum secured leverage ratio	2.50
Revolving Credit Facility
Debt
Maximum borrowing capacity	$ 400
Revolving credit facility, other than swingline loans \| Federal Funds Rate
Debt
Interest rate margin (as a percent)	0.50%
Revolving credit facility, other than swingline loans \| SOFR
Debt
Interest rate margin (as a percent)	1%
Revolving credit facility, other than swingline loans \| SOFR \| Minimum
Debt
Interest rate margin (as a percent)	1%
Revolving credit facility, other than swingline loans \| SOFR \| Maximum
Debt
Interest rate margin (as a percent)	1.75%
Revolving credit facility, other than swingline loans \| Base Rate \| Minimum
Debt
Interest rate margin (as a percent)	0%
Revolving credit facility, other than swingline loans \| Base Rate \| Maximum
Debt
Interest rate margin (as a percent)	0.75%
Letter of Credit
Debt
Maximum borrowing capacity	$ 25
Swingline Loans
Debt
Maximum borrowing capacity	$ 10

Revenues (Details)

Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Revenues (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Oct. 01, 2022	Sep. 30, 2023	Oct. 01, 2022
Revenues
Revenues	$ 203,760	$ 269,817	$ 695,413	$ 766,781
Revenue from performance obligations that were satisfied in previous reporting periods	0	4,500	0	30,700
Distributors
Revenues
Revenues	164,444	217,355	556,963	621,563
Direct customers
Revenues
Revenues	39,316	52,462	138,450	145,218
Industrial & Commercial
Revenues
Revenues	120,957	145,661	436,973	416,475
Home & Life
Revenues
Revenues	$ 82,803	$ 124,156	$ 258,440	$ 350,306

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Stock-Based Compensation (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Oct. 01, 2022	Sep. 30, 2023	Oct. 01, 2022
Stock-based compensation costs
Stock based compensation costs	$ 5,790	$ 15,950	$ 37,167	$ 43,213
Income tax benefit	505	1,230	4,446	4,444
Share based compensation costs after tax	5,285	14,720	32,721	38,769
Total unrecognized compensation costs related to awards	103,800		$ 103,800
Weighted-average period of recognition of unrecognized compensation costs			2 years 2 months 12 days
Unvested performance stock
Stock-based compensation costs
Stock based compensation costs	(9,500)
Cost of revenues
Stock-based compensation costs
Stock based compensation costs	192	288	$ 774	834
Research and development
Stock-based compensation costs
Stock based compensation costs	8,598	8,788	26,903	23,482
Selling, general and administrative
Stock-based compensation costs
Stock based compensation costs	$ (3,000)	$ 6,874	$ 9,490	$ 18,897

Income Taxes (Details)

Income Taxes (Details) $ in Thousands, kr in Millions	3 Months Ended		9 Months Ended
Income Taxes (Details) $ in Thousands, kr in Millions	Sep. 30, 2023 USD ($)	Oct. 01, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2023 NOK (kr)	Oct. 01, 2022 USD ($)
Income Taxes
Income tax expense (benefit)	$ 3,388	$ 14,188	$ 23,479		$ 36,871
Effective income tax rate (as a percent)	24.70%	40.30%	40%	40%	35.80%
Gross unrecognized tax benefits which would affect the effective tax rate if recognized	$ 5,200		$ 5,200
Norwegian Tax Administration \| 2013 \| Under appeal
Income Taxes
Estimate of additional income tax expense			$ 13,200	kr 141.3

Subsequent Event (Details)

Subsequent Event (Details) $ in Millions	3 Months Ended
Subsequent Event (Details) $ in Millions	Dec. 30, 2023 USD ($)
Subsequent Event
Subsequent Event
Restructuring expenses	$ 6.5

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2023
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	Rule 10b5-1 Trading Arrangements There were no contracts, instructions or written plans for the purchase or sale of our securities intended to satisfy the affirmative defense conditions of Rule 10b5-1(c), nor were there any non-Rule 10b5-1 trading arrangements, entered into or terminated by our directors and officers (as defined under Rule 16b-1(f) of the Exchange Act) during the quarter ended September 30, 2023.
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false