LATTICE SEMICONDUCTOR CORP Revenue Disclosure

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. Revenue is attributed to geographic regions based on the ship-to location of the customer. The Greater China geography includes revenue associated with shipments to both Hong Kong and mainland China. Products shipped to Hong Kong may subsequently be transferred to mainland China or other destinations, and products shipped to mainland China may similarly move through intermediary locations

 

		Year Ended
Revenue by Channel		January 3,								December 28,								December 30,
(In thousands)		2026								2024								2023
Distributors		$	438,455				84	%		$	455,160				89	%		$	644,181				87	%
Direct			84,807				16	%			54,241				11	%			92,973				13	%
Total revenue		$	523,262				100	%		$	509,401				100	%		$	737,154				100	%
Revenue by Geographical Market
(In thousands)
Greater China		$	273,246				52	%		$	206,380				40	%			239,192				32	%
Japan			28,602				6	%			81,043				16	%			110,403				15	%
Other Asia			51,851				10	%			45,324				9	%			94,170				13	%
Asia			353,699				68	%			332,747				65	%			443,765				60	%
Americas			102,758				19	%			101,217				20	%			145,839				20	%
Europe			66,805				13	%			75,437				15	%			147,550				20	%
Total revenue		$	523,262				100	%		$	509,401				100	%		$	737,154				100	%

 

Contract Balances

 

Our contract assets relate primarily to our rights to consideration for licenses and royalties due to us as a member of the HDMI Founders consortium. 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 distributed to us by the HDMI licensing agent. Contract assets are recorded in Prepaid expenses and other current assets in our Consolidated Balance Sheets.

 

The following table summarizes activity during the periods presented:

 

(In thousands)
Contract assets as of December 30, 2023		$	11,194
Revenues recorded during the period			14,408
Transferred to Accounts receivable or collected			(7,724	)
Contract assets as of December 28, 2024		$	17,878
Revenues recorded during the period			25,854
Transferred to Accounts receivable or collected			(36,063	)
Contract assets as of January 3, 2026		$	7,669

 

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 December 30, 2023		$	5,304
Unperformed performance obligations			6,945
Accruals for estimated future stock rotation and scrap returns			13,051
Less: Release of accruals for recognized stock rotation and scrap returns			(14,118	)
Contract liabilities as of December 28, 2024		$	11,182
Revenue recognized from satisfied performance obligations			(6,945	)
Accruals for estimated future stock rotation and scrap returns			6,131
Less: Release of accruals for recognized stock rotation and scrap returns			(6,362	)
Contract liabilities as of January 3, 2026		$	4,006