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Segment Information | 12 Months Ended
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Jan. 27, 2019
Segment Reporting [Abstract] |
Segment Information | Segment Information Segment Information The Company's CEO functions as the Chief Operating Decision Maker ("CODM"). The Company’s CODM makes operating decisions and assesses performance based on these operating segments. As part of a realignment strategy, during the first quarter of fiscal year 2019, the Company restructured and combined the Power and High-Reliability operating segment with the Wireless and Sensing operating segment to better align resources with our LoRa® initiatives. This resulted in the Company having three operating segments compared to previously having four operating segments. The three operating segments: Protection, Signal Integrity, and Wireless and Sensing, all have similar economic characteristics and have been aggregated into one reportable segment identified in the table below as the "Semiconductor Products Group". The Company’s assets are commingled among the various operating segments and the CODM does not use that information in making operating decisions or assessing performance. Therefore, the Company has not included asset information by reportable segment below. Net sales by reportable segment are as follows:
| Fiscal Year Ended
(in thousands) | January 27, 2019 |  | January 28, 2018 |  | January 29, 2017
Semiconductor Products Group | $ | 627,196 |  |  | $ | 587,847 |  |  | $ | 544,067 |
All others | — |  |  | — |  |  | 205 |
Total | $ | 627,196 |  |  | $ | 587,847 |  |  | $ | 544,272 |
Income by segment and reconciliation to consolidated operating income:
| Fiscal Year Ended
(in thousands) | January 27, 2019 |  | January 28, 2018 |  | January 29, 2017
Semiconductor Products Group | $ | 186,975 |  |  | $ | 160,810 |  |  | $ | 126,271 |
All others | — |  |  | — |  |  | 23,406 |
Operating income by segment | 186,975 |  |  | 160,810 |  |  | 149,677 |
Items to reconcile segment operating income to consolidated income before taxes |  |  |  |  |
Share-based compensation | 73,859 |  |  | 47,936 |  |  | 30,828 |
Intangible amortization | 26,649 |  |  | 27,867 |  |  | 25,301 |
Investment impairments | 30,000 |  |  | 4,250 |  |  | — |
Changes in the fair value of contingent earn-out obligations | (9,419 | ) |  | 3,892 |  |  | (215 | )
Other non-segment related expenses | (2,591 | ) |  | 12,189 |  |  | 7,455 |
Amortization of fair value adjustments related to acquired property, plant and equipment | — |  |  | 190 |  |  | 2,227 |
Interest expense, net | 9,202 |  |  | 7,963 |  |  | 9,300 |
Non-operating expense, net | (3,823 | ) |  | (3,348 | ) |  | 1,721 |
Income before taxes | $ | 63,098 |  |  | $ | 59,871 |  |  | $ | 73,060 |
Information by Product Line The Company operates exclusively in the semiconductor industry and primarily within the analog and mixed-signal sector. The table below provides net sales activity by product line on a comparative basis for all periods.
| Fiscal Year Ended
(in thousands, except percentages) | January 27, 2019 |  | January 28, 2018 |  | January 29, 2017
Signal Integrity | $ | 276,040 |  |  | 44 | % |  | $ | 263,015 |  |  | 45 | % |  | $ | 258,824 |  |  | 47 | %
Wireless and Sensing | 190,589 |  |  | 30 | % |  | 164,569 |  |  | 28 | % |  | 140,774 |  |  | 26 | %
Protection | 182,068 |  |  | 29 | % |  | 176,482 |  |  | 30 | % |  | 149,865 |  |  | 28 | %
Systems Innovation | — |  |  | — | % |  | — |  |  | — | % |  | 205 |  |  | — | %
Other: Warrant Shares | (21,501 | ) |  | (3 | )% |  | (16,219 | ) |  | (3 | )% |  | (5,396 | ) |  | (1 | )%
Total net sales | $ | 627,196 |  |  | 100 | % |  | $ | 587,847 |  |  | 100 | % |  | $ | 544,272 |  |  | 100 | %
The cost of the Warrant granted is recognized as an offset to net sales over the respective performance period (see Note 11 for discussion regarding Share-Based Compensation). Information by Sales Channel
| Fiscal Year Ended
(in thousands) | January 27, 2019 |  | January 28, 2018 |  | January 29, 2017
Distributor | $ | 442,518 |  |  | $ | 390,618 |  |  | $ | 348,070 |
Direct | 206,179 |  |  | 213,448 |  |  | 201,598 |
Other: Warrant Shares | (21,501 | ) |  | (16,219 | ) |  | (5,396 | )
Total net sales | $ | 627,196 |  |  | $ | 587,847 |  |  | $ | 544,272 |
Geographic Information The Company generates virtually all of its sales from its Semiconductor Products Group through sales of analog and mixed-signal devices. Sales activity by geographic region is as follows:
| Fiscal Year Ended
(in thousands, except percentages) | January 27, 2019 |  | January 28, 2018 |  | January 29, 2017
Asia-Pacific | $ | 480,680 |  |  | 76 | % |  | $ | 439,342 |  |  | 75 | % |  | $ | 412,167 |  |  | 76 | %
North America | 118,664 |  |  | 19 | % |  | 121,144 |  |  | 21 | % |  | 94,123 |  |  | 17 | %
Europe | 49,353 |  |  | 8 | % |  | 43,580 |  |  | 7 | % |  | 43,378 |  |  | 8 | %
Other: Warrant Shares | (21,501 | ) |  | (3 | )% |  | (16,219 | ) |  | (3 | )% |  | (5,396 | ) |  | (1 | )%
Total net sales | $ | 627,196 |  |  | 100 | % |  | $ | 587,847 |  |  | 100 | % |  | $ | 544,272 |  |  | 100 | %
The Company attributes sales to a country based on the ship-to address. The table below summarizes sales activity to countries that represented greater than 10% of total sales for at least one of the periods presented:
| Fiscal Year Ended
(percentage of total net sales) | January 27, 2019 |  | January 28, 2018 |  | January 29, 2017
China (including Hong Kong) | 55 | % |  | 51 | % |  | 48 | %
United States | 11 | % |  | 9 | % |  | 9 | %
Total net sales | 66 | % |  | 60 | % |  | 57 | %
Significant Customers The following significant customers accounted for at least 10% of net sales in one or more of the periods indicated
| Fiscal Year Ended
(percentage of net sales) | January 27, 2019 |  | January 28, 2018 |  | January 29, 2017
Trend-tek Technology Ltd (and affiliates) | 14 | % |  | 10 | % |  | 10 | %
Frontek Technology Corporation (and affiliates) | 11 | % |  | 7 | % |  | 8 | %
Arrow Electronics (and affiliates) | 10 | % |  | 11 | % |  | 10 | %
Samsung Electronics (and affiliates) | 8 | % |  | 8 | % |  | 7 | %
Premier Technical Sales Korea, Inc. (and affiliates) (1) | 4 | % |  | 6 | % |  | 4 | %
(1) Premier is a distributor with a concentration of sales to Samsung. The above percentages represent the Company's estimate of the sales activity related to Samsung that is passing through this distributor. The following table shows customers that have an outstanding receivable balance that represents at least 10% of total net receivables as of one or more of the dates indicated:
| Fiscal Years
(percentage of net receivables) | 2019 |  | 2018
Trend-tek Technology Ltd (and affiliates) | 11 | % |  | 8 | %
Frontek Technology Corporation (and affiliates) | 10 | % |  | 9 | %
Long-lived Assets Long-lived assets, which consist of property, plant and equipment, net of accumulated depreciation and classified by location are summarized as follows:
| Fiscal Year Ended
(in thousands) | January 27, 2019 |  | January 28, 2018
United States | $ | 46,285 |  |  | $ | 48,289 |
Rest of North America | 34,493 |  |  | 34,941 |
Asia and all others | 28,871 |  |  | 31,624 |
Europe | 8,839 |  |  | 9,752 |
Total | $ | 118,488 |  |  | $ | 124,606 |
Some of these assets are at locations owned or operated by the Company’s suppliers. The Company has consigned certain equipment to a foundry based in China to support its specialized processes run at the foundry. The Company has also installed its own equipment at some of its packaging and testing subcontractors in order to ensure a certain level of capacity, assuming the subcontractor has ample employees to operate the equipment. The net book value of equipment and machinery that are consigned to multiple foundries in China is $17.4 million and $15.4 million as of January 27, 2019, and January 28, 2018, respectively. The net book value of equipment and machinery that are consigned to a foundry in Malaysia is $5.6 million and $6.1 million as of January 27, 2019, and January 28, 2018, respectively. Outside Subcontractors and Suppliers The Company relies on a limited number of third-party subcontractors and suppliers for the production of silicon wafers, packaging and certain other tasks. Disruption or termination of supply sources or subcontractors, including due to natural disasters such as an earthquake or other causes, could delay shipments and could have a material adverse effect on the Company. Although there are generally alternate sources for these materials and services, qualification of the alternate sources could cause delays sufficient to have a material adverse effect on the Company. Several of the Company’s third-party subcontractors and suppliers, including third-party foundries that supply silicon wafers, are located in foreign countries, including China, Israel and Taiwan. A significant amount of the Company’s assembly and test operations are conducted by third-party contractors in China, Malaysia, Taiwan, Thailand, South Korea and the Philippines. For fiscal year 2019, approximately 16% of the Company’s silicon in terms of cost of wafers was supplied by a third-party foundry in China, and this percentage could be higher in future periods. For fiscal years 2018 and 2017, approximately 20% and 25% of the Company’s silicon in terms of cost of wafers was supplied by this third-party foundry in China, respectively. Generally, the Company does not have long-term contracts with its distributors and most can terminate their agreement with little or no notice. For fiscal year 2019, the Company's two largest distributors were based in Asia.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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