2 unchanged sentences
We have performed an evaluation under the supervision and with the participation of our management, including our Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of our disclosure controls and procedures, as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the Exchange Act).
−Removed: Based on that evaluation, our management, including our CEO and CFO, concluded that our disclosure controls and procedures were effective as of December 28, 2024 to provide reasonable assurance that information required to be disclosed by us in the reports filed or submitted by us under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.
+Added: Based on that evaluation, our management, including our CEO and CFO, concluded that our disclosure controls and procedures were effective as of January 3, 2026 to provide reasonable assurance that information required to be disclosed by us in the reports filed or submitted by us under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.
Such disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed is accumulated and communicated to our management, including our CEO and CFO, to allow timely decisions regarding required disclosures.
Changes in Internal Control over Financial Reporting
−Removed: There was no change in our internal controls during the fiscal quarter ended December 28, 2024 that materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting, other than the remediation efforts of the material weakness discussed below.
−Removed: Remediation of Material Weakness in Internal Control over Financial Reporting
−Removed: As previously disclosed in Item 9A.
−Removed: Controls and Procedures in our Annual Report on Form 10-K for the year ended December 30, 2023 filed with the SEC, our management, including our CEO and CFO, identified deficiencies in our internal control over financial reporting that we believe rose to the level of a material weakness.
−Removed: A material weakness is a deficiency, or a combination of deficiencies in internal control over financial reporting, such that there is a reasonable
−Removed: possibility that a material misstatement of our annual or interim consolidated financial statements will not be prevented or detected on a timely basis.
−Removed: This material weakness did not result in any material errors.
−Removed: To address the material weakness related to undue reliance on forecasted inventory demand information used in determining inventory carrying value adjustments, we completed the following:
−Removed: • Evaluated and reassessed the design of our inventory valuation methods, including key assumptions used in the determination of the net realizable value of our inventory;
−Removed: • Designed and implemented enhanced controls and documentation requirements during the quarter ended December 28, 2024 that support the completeness and accuracy of data used in the inventory valuation assessment;
−Removed: • Formalized management’s review and assessment of information used in the inventory valuation assessment;
−Removed: • Refined the critical assumptions to be used in the inventory valuation assessment, including demand forecast information, historical results, market conditions, and aging of inventory.
−Removed: During the quarter ended December 28, 2024, we successfully completed the testing necessary to conclude that this material weakness has been remediated.
+Added: There was no change in our internal controls during the fiscal quarter ended January 3, 2026 that materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.
Management’s Report on Internal Control over Financial Reporting
1 unchanged sentence
Our internal control system was designed to provide reasonable assurance to our management and Board of Directors regarding the preparation and fair presentation of published financial statements.
−Removed: Our management assessed the effectiveness of our internal control over financial reporting as of December 28, 2024.
+Added: Our management assessed the effectiveness of our internal control over financial reporting as of January 3, 2026.
In making this assessment, it used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—Integrated Framework (2013 framework).
−Removed: Based on our assessment we concluded that, as of December 28, 2024, our internal control over financial reporting is effective based on those criteria.
−Removed: Our independent registered public accounting firm, Ernst & Young LLP, issued an attestation report on our internal control over financial reporting.
−Removed: This report appears on page F-3.
+Added: Based on our assessment we concluded that, as of January 3, 2026, our internal control over financial reporting is effective based on those criteria.
+Added: Our independent registered public accounting firm, Deloitte & Touche LLP, issued an attestation report on our internal control over financial reporting;
+Added: their report is included herein.
+Added: Report of Independent Registered Public Accounting Firm
+Added: To the Stockholders and the Board of Directors of Silicon Laboratories Inc.
+Added: Opinion on Internal Control Over Financial Reporting
+Added: We have audited the internal control over financial reporting of Silicon Laboratories Inc.
+Added: and subsidiaries (the “Company”) as of January 3, 2026, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
+Added: In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of January 3, 2026, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.
+Added: We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended January 3, 2026, of the Company and our report dated February 10, 2026 expressed an unqualified opinion on those financial statements.
+Added: Basis for Opinion
+Added: The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting.
+Added: Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.
+Added: We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.
+Added: federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
+Added: We conducted our audit in accordance with the standards of the PCAOB.
+Added: Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.
+Added: Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances.
+Added: We believe that our audit provides a reasonable basis for our opinion.
+Added: Definition and Limitations of Internal Control over Financial Reporting
+Added: A company’s internal control over financial reporting is a process designed 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.
+Added: A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
+Added: (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;
+Added: and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
+Added: Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
+Added: Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
+Added: /s/ Deloitte & Touche LLP
+Added: Austin, Texas
+Added: February 10, 2026
Other Information
Rule 10b5-1 Trading Arrangements
−Removed: The following table describes 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) entered into or terminated during the quarter ended December 28, 2024 by our directors and officers (as defined under Rule 16b-1(f) of the Exchange Act).
−Removed: There were no non-Rule 10b5-1 trading arrangements entered into or terminated by our directors and officers during the quarter ended December 28, 2024.
+Added: The following table describes 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) entered into or terminated during the quarter ended January 3, 2026 by our directors and officers (as defined under Rule 16b-1(f) of the Exchange Act).
+Added: There were no non-Rule 10b5-1 trading arrangements entered into or terminated by our directors and officers during the quarter ended January 3, 2026.
Name and Title of Director or Officer Date of Adoption of Arrangement Duration of the Arrangement Aggregate Number of Securities to be Purchased or Sold Pursuant to the Arrangement
1 unchanged sentence
President & CEO
−Removed: November 27, 2024 Expires June 02, 2025
+Added: November 06, 2025 Expires November 06, 2026
(1) Represents the total number of shares that may be sold under the trading arrangement, which includes shares underlying restricted stock units (“RSUs”) and performance share units (“PSUs”).
15 unchanged sentences
Report of Independent Registered Public Accounting Firm (PCAOB ID:
−Removed: Report of Independent Registered Public Accounting Firm
−Removed: Consolidated Balance Sheets at December 28, 2024 and December 30, 2023
−Removed: Consolidated Statements of Operations for the fiscal years ended December 28, 2024 , December 30, 2023 and December 31, 2022
−Removed: Consolidated Statements of Comprehensive Income (Loss) for the fiscal years ended December 28, 2024 , December 30, 2023 and December 31, 2022
−Removed: Consolidated Statements of Changes in Stockholders’ Equity for the fiscal years ended December 28, 2024 , December 30, 2023 and December 31, 2022
−Removed: Consolidated Statements of Cash Flows for the fiscal years ended December 28, 2024 , December 30, 2023 and December 31, 2022
+Added: Report of Independent Registered Public Accounting Firm (PCAOB ID:
+Added: Consolidated Balance Sheets at January 3, 2026 and December 28, 2024
+Added: Consolidated Statements of Operations for the fiscal years ended January 3, 2026 , December 28, 2024 and December 30, 2023
+Added: Consolidated Statements of Comprehensive Loss for the fiscal years ended January 3, 2026 , December 28, 2024 and December 30, 2023
+Added: Consolidated Statements of Changes in Stockholders’ Equity for the fiscal years ended January 3, 2026 , December 28, 2024 and December 30, 2023
+Added: Consolidated Statements of Cash Flows for the fiscal years ended January 3, 2026 , December 28, 2024 and December 30, 2023
Notes to Consolidated Financial Statements
2 unchanged sentences
The following exhibits are filed as part of this report:
−Removed: 2.1* Asset Purchase Agreement dated April 22, 2021 between Silicon Laboratories Inc.
−Removed: and Skyworks Solutions, Inc.
−Removed: (filed as Exhibit 2.1 to the Form 8-K filed on April 22, 2021).
−Removed: 3.1* Form of Fourth Amended and Restated Certificate of Incorporation of Silicon Laboratories Inc.
−Removed: (filed as Exhibit 3.1 to the Registration Statement on Form S-1 (Securities and Exchange Commission File No.
−Removed: 333-94853) (the “IPO Registration Statement”)).
+Added: 3.1* Fifth Amended and Restated Certificate of Incorporation of Silicon Laboratories Inc.
+Added: (filed as Exhibit 3.1 to the Form 10-Q filed on August 8, 2025).
3.2* Fifth Amended and Restated Bylaws of Silicon Laboratories Inc.
28 unchanged sentences
Form of Performance Stock Units Grant Notice and Global PSU Award Agreement under Registrant’s 2009 Stock Incentive Plan, as amended and restated (filed as Exhibit 10.19 to the Form 10-K filed on February 20, 2024).
−Removed: 19 Insider Trading Policy.
+Added: 10.19+ Silicon Laboratories Inc.
+Added: Form of Performance Stock Units Grant Notice and Global PSU Award Agreement under Registrant’s 2009 Stock Incentive Plan, as amended and restated .
+Added: 19* Insider Trading Policy (filed as Exhibit 19 to the Form 10-K filed on February 4, 2025.)
21 Subsidiaries of the Registrant.
−Removed: 23.1 Consent of Independent Registered Public Accounting Firm.
+Added: 23.1 Consent of Independent Registered Public Accounting Firm (Deloitte & Touche LLP) .
+Added: 23.2 Consent of Independent Registered Public Accounting Firm (Ernst & Young LLP).
24 Power of Attorney (included on signature page to this Form 10-K).
46 unchanged sentences
Opinion on the Financial Statements
−Removed: We have audited the accompanying consolidated balance sheets of Silicon Laboratories Inc.
−Removed: (the Company) as of December 28, 2024 and December 30, 2023, the related consolidated statements of operations, comprehensive income (loss), changes in stockholders’ equity and cash flows for each of the three years in the period ended December 28, 2024, and the related notes (collectively referred to as the “consolidated financial statements”).
−Removed: In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 28, 2024 and December 30, 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 28, 2024, in conformity with U.S.
−Removed: generally accepted accounting principles.
−Removed: We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company ’ s internal control over financial reporting as of December 28, 2024, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 4, 2025 expressed an unqualified opinion thereon.
+Added: We have audited the accompanying consolidated balance sheet of Silicon Laboratories Inc.
+Added: and subsidiaries (the “Company”) as of January 3, 2026 and the related consolidated statements of operations, comprehensive loss, changes in stockholders’ equity, and cash flows, for the year ended January 3, 2026, and the related notes (collectively referred to as the “financial statements”).
+Added: In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of January 3, 2026 and the results of its operations and its cash flows for the year ended January 3, 2026, in conformity with accounting principles generally accepted in the United States of America.
+Added: We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of January 3, 2026, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 10, 2026, expressed an unqualified opinion on the Company’s internal control over financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company’s management.
−Removed: Our responsibility is to express an opinion on the Company’s financial statements based on our audits.
+Added: Our responsibility is to express an opinion on the Company’s financial statements based on our audit.
We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.
federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
−Removed: We conducted our audits in accordance with the standards of the PCAOB.
+Added: We conducted our audit in accordance with the standards of the PCAOB.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
−Removed: Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.
+Added: Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.
Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
−Removed: Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.
+Added: Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
−Removed: The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that:
−Removed: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.
−Removed: The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
−Removed: Inventory Valuation
−Removed: Description of the matter At December 28, 2024, the Company’s net inventory balance was $105.6 million.
−Removed: As discussed in Note 2 to the consolidated financial statements, inventories are stated at the lower of cost, determined using the first-in, first-out method, or net realizable value.
−Removed: The Company writes down the carrying value of inventory to net realizable value if it is obsolete or if quantities are in excess of projected customer demand.
−Removed: Auditing management’s estimates of excess and obsolete inventory was challenging because the estimate is judgmental and considers a number of factors that are affected by market and economic conditions that are outside of the Company’s control.
−Removed: In particular, excess and obsolete inventory calculations are sensitive to significant assumptions that relate to projected customer demand for the Company’s products.
−Removed: How we addressed the matter in our audit We obtained an understanding, evaluated the design and tested the operating effectiveness of internal controls over the Company’s inventory valuation process for inventory.
−Removed: This included assessing management’s basis for developing the significant assumptions for projected customer demand.
−Removed: Our audit procedures included, among others, evaluating the significant assumptions stated above and the underlying data used in management’s excess and obsolete inventory assessment.
−Removed: We evaluated inventory levels compared to projected customer demand and historical sales with an incremental focus on product groups subject to a longer demand horizon.
−Removed: We assessed the accuracy of historical forecasts underlying management’s estimates and performed sensitivity analyses over the significant assumptions used by management to evaluate necessary changes in inventory valuation.
−Removed: /s/ Ernst & Young LLP
−Removed: We have served as the Company’s auditor since 1996.
+Added: The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.
+Added: The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
+Added: Inventories – Inventory Valuation — Refer to Note 2 to the financial statements
+Added: Critical Audit Matter Description
+Added: Inventory is stated at the lower of cost, determined using the first-in, first-out method, or net realizable value.
+Added: The Company writes down the carrying value of inventory to net realizable value if it is obsolete or unmarketable based upon the age of inventory or if quantities are in excess of customer demand.
+Added: Inventory not identified to be written down due to aging is compared to an eighteen-month forecasted demand to identify potential excess inventory quantities on hand.
+Added: Management estimates of forecasted demand is based on various assumptions, including but not limited to assumptions regarding product life cycles and market conditions.
+Added: As of January 3, 2026, the Company’s inventory balance was $95.6 million.
+Added: We identified inventory valuation as a critical audit matter because of the significant assumptions management makes with regards to estimating the forecasted demand.
+Added: Performing audit procedures to evaluate the reasonableness of management’s estimates of forecasted demand required a high degree of auditor judgment and increased audit effort.
+Added: How the Critical Audit Matter Was Addressed in the Audit
+Added: Our audit procedures related to management’s estimates of forecasted demand used in the valuation of inventory included the following, among others:
+Added: • We tested the effectiveness of internal controls over management’s provisions for slow moving and obsolete inventories, including internal controls designed to review and approve forecasted demand and the underlying assumptions regarding product life cycles and market conditions.
+Added: • We evaluated management’s ability to accurately estimate forecasted demand by comparing estimates made in prior periods to the historical actual results for those same periods.
+Added: • We made inquiries of Company personnel including executive, sales and marketing, and operations personnel about product life cycles and market conditions and compared expectations to those included in the forecasted demand.
+Added: • We selected a sample of inventory products and tested the forecasted demand by comparing internal and external information (e.g., historical sales, customer backlog, communications with customers, product life cycles and market conditions, as applicable) with the Company’s forecast.
+Added: • We considered, when relevant, the existence of contradictory evidence based on reading of internal financial and operational information used by management and the board of directors, Company press releases, and analysts’ reports, as well as our observations and inquiries as to changes within the business and evidence obtained through other areas of the audit.
+Added: /s/ Deloitte & Touche LLP
Austin, Texas
February 10, 2026
+Added: We have served as the Company's auditor since 2025.
Report of Independent Registered Public Accounting Firm
To the Stockholders and the Board of Directors of Silicon Laboratories Inc.
−Removed: Opinion on Internal Control Over Financial Reporting
−Removed: We have audited Silicon Laboratories Inc.’s internal control over financial reporting as of December 28, 2024, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria).
−Removed: In our opinion, Silicon Laboratories Inc.
−Removed: (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 28, 2024, based on the COSO criteria.
−Removed: We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 28, 2024 and December 30, 2023, the related consolidated statements of operations, comprehensive income (loss), changes in stockholders’ equity and cash flows for each of the three years in the period ended December 28, 2024, and the related notes and our report dated February 4, 2025 expressed an unqualified opinion thereon.
+Added: Opinion on the Financial Statements
+Added: We have audited the accompanying consolidated balance sheet of Silicon Laboratories Inc.
+Added: (the Company) as of December 28, 2024, the related consolidated statements of operations, comprehensive loss, changes in stockholders’ equity and cash flows for each of the two years in the period ended December 28, 2024, and the related notes (collectively referred to as the “consolidated financial statements”).
+Added: In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 28, 2024, and the results of its operations and its cash flows for each of the two years in the period ended December 28, 2024, in conformity with U.S.
+Added: generally accepted accounting principles.
Basis for Opinion
−Removed: The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control over Financial Reporting.
−Removed: Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.
+Added: These financial statements are the responsibility of the Company’s management.
+Added: Our responsibility is to express an opinion on the Company’s financial statements based on our audits.
We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.
federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
−Removed: We conducted our audit in accordance with the standards of the PCAOB.
−Removed: Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.
−Removed: Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances.
−Removed: We believe that our audit provides a reasonable basis for our opinion.
−Removed: Definition and Limitations of Internal Control Over Financial Reporting
−Removed: A company’s internal control over financial reporting is a process designed 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.
−Removed: A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
−Removed: (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;
−Removed: and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
−Removed: Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
−Removed: Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
+Added: We conducted our audits in accordance with the standards of the PCAOB.
+Added: Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
+Added: Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.
+Added: Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
+Added: Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.
+Added: We believe that our audits provide a reasonable basis for our opinion.
/s/ Ernst & Young LLP
+Added: We served as the Company’s auditor from 1996 to 2024.
Austin, Texas
19 unchanged sentences
Accounts payable $ 50,717 $ 42,448
−Removed: Revolving line of credit — 45,000
Deferred revenue and returns liability 5,359 3,073
3 unchanged sentences
Total liabilities 174,899 142,653
−Removed: Commitments and contingencies
+Added: Commitments and contingencies (Note 11)
Stockholders’ equity:
4 unchanged sentences
250,000 shares authorized;
−Removed: 32,458 and 31,897 shares issued and outstanding at December 28, 2024 and December 30, 2023, respectively
+Added: 32,955 and 32,458 shares issued and outstanding at January 3, 2026 and December 28, 2024, respectively
Additional paid-in capital 157,402 78,227
Retained earnings 936,814 1,001,721
−Removed: Accumulated other comprehensive income (loss) 70 ( 1,025 )
+Added: Accumulated other comprehensive income 199 70
Total stockholders’ equity 1,094,418 1,080,021
13 unchanged sentences
Operating expenses 527,524 477,678 484,740
−Removed: Operating income (loss) ( 165,490 ) ( 24,154 ) 119,260
+Added: Operating loss ( 70,541 ) ( 165,490 ) ( 24,154 )
Other income (expense):
1 unchanged sentence
Interest expense ( 975 ) ( 1,310 ) ( 5,554 )
−Removed: Income (loss) before income taxes ( 154,813 ) ( 10,543 ) 126,452
+Added: Loss before income taxes ( 57,912 ) ( 154,813 ) ( 10,543 )
Provision for income taxes 6,995 36,197 7,943
−Removed: Equity-method earnings (loss) — ( 16,030 ) 3,400
−Removed: Net income (loss) $ ( 191,010 ) $ ( 34,516 ) $ 91,402
−Removed: Earnings (loss) per share:
+Added: Equity-method loss — — ( 16,030 )
+Added: Net loss $ ( 64,907 ) $ ( 191,010 ) $ ( 34,516 )
+Added: Loss per share:
Basic $ ( 1.98 ) $ ( 5.93 ) $ ( 1.09 )
5 unchanged sentences
Silicon Laboratories Inc.
−Removed: Consolidated Statements of Comprehensive Income (Loss)
+Added: Consolidated Statements of Comprehensive Loss
(In thousands)
1 unchanged sentence
2024 December 30,
−Removed: Net income (loss) $ ( 191,010 ) $ ( 34,516 ) $ 91,402
−Removed: Other comprehensive income (loss), before tax:
+Added: Net loss $ ( 64,907 ) $ ( 191,010 ) $ ( 34,516 )
+Added: Other comprehensive income, before tax:
Net changes to available-for-sale securities:
−Removed: Unrealized gains (losses) arising during the period 1,277 7,709 ( 12,562 )
−Removed: Reclassification for losses included in net income (loss) 41 4,596 2,088
+Added: Unrealized gains arising during the period 189 1,277 7,709
+Added: Reclassification for losses (gains) included in net loss ( 25 ) 41 4,596
Net changes to cash flow hedges:
−Removed: Unrealized gains (losses) arising during the period 684 210 ( 4,110 )
−Removed: Reclassification for losses (gains) included in net income (loss) ( 644 ) ( 250 ) 4,110
−Removed: Other comprehensive income (loss), before tax 1,358 12,265 ( 10,474 )
−Removed: Provision (benefit) for income taxes 263 2,602 ( 2,205 )
−Removed: Other comprehensive income (loss) 1,095 9,663 ( 8,269 )
−Removed: Comprehensive income (loss) $ ( 189,915 ) $ ( 24,853 ) $ 83,133
+Added: Unrealized gains arising during the period 248 684 210
+Added: Reclassification for gains included in net loss ( 248 ) ( 644 ) ( 250 )
+Added: Other comprehensive income, before tax 164 1,358 12,265
+Added: Provision for income taxes 35 263 2,602
+Added: Other comprehensive income 129 1,095 9,663
+Added: Comprehensive loss $ ( 64,778 ) $ ( 189,915 ) $ ( 24,853 )
The accompanying notes are an integral part of these Consolidated Financial Statements.
9 unchanged sentences
Stockholders’
−Removed: Balance as of January 1, 2022 38,481 $ 4 $ — $ 2,214,839 $ ( 2,419 ) $ 2,212,424
−Removed: Cumulative effect of adoption of accounting standard — — — ( 59,963 ) — ( 59,963 )
−Removed: Net income — — — 91,402 — 91,402
−Removed: Other comprehensive loss — — — — ( 8,269 ) ( 8,269 )
−Removed: Stock issuances, net of shares withheld for taxes 387 — ( 3,608 ) — — ( 3,608 )
−Removed: Repurchases of common stock ( 6,874 ) ( 1 ) ( 56,968 ) ( 830,585 ) — ( 887,554 )
−Removed: Stock-based compensation — — 60,576 — — 60,576
Balance as of December 31, 2022 31,994 $ 3 $ — $ 1,415,693 $ ( 10,688 ) $ 1,405,008
11 unchanged sentences
Balance as of December 28, 2024 32,458 3 78,227 1,001,721 70 1,080,021
+Added: Net loss — — — ( 64,907 ) — ( 64,907 )
+Added: Other comprehensive income — — — — 129 129
+Added: Stock issuances, net of shares withheld for taxes 497 — ( 1,068 ) — — ( 1,068 )
+Added: Stock-based compensation — — 80,243 — — 80,243
+Added: Balance as of January 3, 2026 32,955 $ 3 $ 157,402 $ 936,814 $ 199 $ 1,094,418
The accompanying notes are an integral part of these Consolidated Financial Statements.
5 unchanged sentences
Operating Activities
−Removed: Net income (loss) $ ( 191,010 ) $ ( 34,516 ) $ 91,402
−Removed: Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities of continuing operations:
+Added: Net loss $ ( 64,907 ) $ ( 191,010 ) $ ( 34,516 )
+Added: Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation of property and equipment 24,716 25,551 25,707
1 unchanged sentence
Amortization of debt discount and debt issuance costs — — 960
−Removed: Loss on extinguishment of convertible debt — — 3
Stock-based compensation expense 80,324 61,503 48,208
−Removed: Equity-method loss (earnings) — 16,030 ( 3,400 )
+Added: Equity-method loss — — 16,030
Deferred income taxes 881 29,470 ( 11,815 )
7 unchanged sentences
Other non-current liabilities ( 12,859 ) ( 17,163 ) 29,793
−Removed: Net cash provided by (used in) operating activities of continuing operations ( 13,910 ) ( 30,348 ) 141,274
+Added: Net cash provided by (used in) operating activities 95,708 ( 13,910 ) ( 30,348 )
Investing Activities
3 unchanged sentences
Purchases of property and equipment ( 29,922 ) ( 11,748 ) ( 22,282 )
+Added: Proceeds from capital-related government incentives 578 — —
Proceeds from sale of equity investment — 12,382 —
Purchases of other assets ( 4,000 ) — ( 520 )
−Removed: Net cash provided by investing activities of continuing operations 113,117 469,808 240,538
+Added: Net cash provided by (used in) investing activities ( 12,025 ) 113,117 469,808
Financing Activities
4 unchanged sentences
Proceeds from the issuance of common stock 14,638 16,346 14,612
−Removed: Net cash used in financing activities of continuing operations ( 45,104 ) ( 711,871 ) ( 887,053 )
−Removed: Discontinued Operations
−Removed: Operating activities — — ( 69,467 )
−Removed: Net cash used in discontinued operations — — ( 69,467 )
+Added: Net cash used in financing activities ( 1,068 ) ( 45,104 ) ( 711,871 )
Increase (decrease) in cash and cash equivalents 82,615 54,103 ( 272,411 )
9 unchanged sentences
Notes to Consolidated Financial Statements
−Removed: December 28, 2024
+Added: January 3, 2026
Description of Business
7 unchanged sentences
The Company prepares financial statements on a 52- or 53-week fiscal year that ends on the Saturday closest to December 31.
+Added: Fiscal 2025, had 53 weeks with the extra week occurring in the first quarter of the year.
Fiscal 2024 and 2023 had 52 weeks.
−Removed: Fiscal 2024, 2023 and 2022 ended on December 28, 2024, December 30, 2023, and December 31, 2022, respectively.
+Added: Fiscal 2025, 2024, and 2023 ended on January 3, 2026, December 28, 2024, and December 30, 2023, respectively.
The accompanying Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries.
19 unchanged sentences
Notes to Consolidated Financial Statements (Continued)
−Removed: December 28, 2024
+Added: January 3, 2026
Significant Accounting Policies (Continued)
Cash and Cash Equivalents
−Removed: Cash and cash equivalents consist of cash deposits and money market funds.
+Added: Cash and cash equivalents consist of cash deposits, time deposits and money market funds.
The Company’s investments typically have original maturities greater than ninety days as of the date of purchase and are classified as available-for-sale securities.
−Removed: Investments in available-for-sale securities are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive loss in the Consolidated Balance Sheet.
+Added: Investments in available-for-sale securities are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive income in the Consolidated Balance Sheet.
Investments in which the Company has the ability and intent, if necessary, to liquidate in order to support its current operations (including those with contractual maturities greater than one year from the date of purchase) are classified as short-term.
4 unchanged sentences
If either of these two conditions is met, the Company recognizes a charge in earnings equal to the entire difference between the security’s amortized cost basis and its fair value.
−Removed: If the Company does not intend to sell a security and it is not more likely than not that it will be required to sell the security before recovery, the unrealized loss is separated into an amount representing the credit loss, which is recognized in earnings, and the amount related to all other factors, which is recorded in accumulated other comprehensive loss.
+Added: If the Company does not intend to sell a security and it is not more likely than not that it will be required to sell the security before recovery, the unrealized loss is separated into an amount representing the credit loss, which is recognized in earnings, and the amount related to all other factors, which is recorded in accumulated other comprehensive income.
In addition, the Company has made equity investments in non-publicly traded companies.
1 unchanged sentence
The Company’s proportionate share of income or loss is recorded in equity-method earnings in the Consolidated Statements of Operations.
−Removed: The Company has elected to use the measurement alternative under Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, to value non-marketable equity investments that do not have readily determinable fair values.
+Added: For equity investments in which the Company does not have control or the ability to exercise significant influence over operating and financial policies, the Company has elected to use the measurement alternative under Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, to value non-marketable equity investments that do not have readily determinable fair values.
Under the alternative, these non-marketable equity investments are recorded at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes of the same or similar securities in observable transactions.
12 unchanged sentences
Notes to Consolidated Financial Statements (Continued)
−Removed: December 28, 2024
+Added: January 3, 2026
Significant Accounting Policies (Continued)
3 unchanged sentences
Government Incentives
−Removed: Incentives provided by government entities are recognized when we have reasonable assurance that we will comply with the conditions of the incentive, if any, and that the incentive will be received.
+Added: Incentives provided by government entities are recognized when we have reasonable assurance that we have complied with the conditions of the incentive, if any, and that the incentive will be received.
Incentives for specific operating activities are recognized as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the incentive is intended to compensate.
Incentives related to the acquisition or construction of fixed assets are recognized as a reduction to property, plant and equipment within the Consolidated Balance Sheets and a reduction to depreciation expense over the useful life of the corresponding acquired asset.
−Removed: The Company receives incentives from governmental agencies in Singapore, France, and Canada, principally in the form of cash grants and refundable tax credits.
+Added: The Company receives incentives from governmental agencies in the United States, Singapore, France, and Canada, principally in the form of cash grants and refundable tax credits.
+Added: As of January 3, 2026, the Company recognized receivables related to these incentives of $ 23.7 million in Prepaid expenses and other current assets and $ 6.3 million in Other assets, net .
As of December 28, 2024, the Company recognized receivables of $ 5.2 million in Prepaid expenses and other current assets and $ 4.9 million in Other assets, net.
In fiscal 2025, Cost of revenues and Research and development benefited by $ 1.8 million and $ 13.9 million, respectively, from a reduction in depreciation expense and operating-related incentives, and property, plant and equipment was reduced by $ 11.3 million from government incentives related to capital expenditures.
+Added: In fiscal 2024, Cost of revenues and Research and development benefited by $ 0.7 million and $ 4.0 million, respectively, from a reduction in depreciation expense and operating-related incentives, and property, plant and equipment was reduced by $ 1.1 million from government incentives related to capital expenditures.
+Added: In fiscal 2023, the impact to Cost of revenues and Research and development was not material.
Property and Equipment
10 unchanged sentences
The results of operations of the businesses acquired are included in the Company’s consolidated results of operations beginning on the date of the acquisition.
+Added: Silicon Laboratories Inc.
+Added: Notes to Consolidated Financial Statements (Continued)
+Added: January 3, 2026
+Added: Significant Accounting Policies (Continued)
Long-Lived Assets
2 unchanged sentences
Long-lived assets “held and used” by the Company are reviewed for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable.
−Removed: When such factors and circumstances exist, the
−Removed: Silicon Laboratories Inc.
−Removed: Notes to Consolidated Financial Statements (Continued)
−Removed: December 28, 2024
−Removed: Significant Accounting Policies (Continued)
−Removed: Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amounts.
+Added: When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amounts.
Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets and is recorded in the period in which the determination was made.
The Company tests goodwill for impairment annually as of the first day of its fourth fiscal quarter and in interim periods if events occur that would indicate that the carrying value of goodwill may be impaired.
−Removed: The Company assesses goodwill for impairment by comparing the fair value of the reporting unit to its carrying amount.
+Added: When testing goodwill for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative goodwill impairment test.
+Added: The Company has identified that the business operates as a single operating segment and as a single reporting unit for the purpose of goodwill impairment testing.
+Added: If a quantitative test is necessary, the Company assesses goodwill for impairment by comparing the fair value of the reporting unit to its carrying amount, including goodwill.
In determining fair value, several valuation methodologies are allowed, although quoted market prices are the best evidence of fair value.
−Removed: If the fair value of the reporting unit is less than its carrying amount, an impairment loss is recognized equal to that excess amount.
+Added: If the fair value of the reporting unit is less than its carrying amount, an impairment loss is recognized equal to that excess amount in the fiscal quarter in which the determination is made.
At the commencement date of a lease, the Company recognizes a liability to make lease payments and an asset representing the right to use the underlying asset during the lease term.
10 unchanged sentences
Substantially all of the Company’s contracts with customers contain a single performance obligation, the sale of mixed-signal integrated circuit (IC) products.
−Removed: This performance obligation is satisfied when control of the product is transferred to the customer, which typically occurs upon delivery.
+Added: This performance obligation is satisfied when control of the product is transferred to the customer, which typically occurs upon shipment.
Unsatisfied performance obligations primarily represent contracts for products with future delivery dates.
4 unchanged sentences
The estimate is based on information available to the Company, including recent sales activity and pricing data.
+Added: Silicon Laboratories Inc.
+Added: Notes to Consolidated Financial Statements (Continued)
+Added: January 3, 2026
+Added: Significant Accounting Policies (Continued)
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.
−Removed: 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.
−Removed: A corresponding deferred revenue and returns liability amount is recorded for unrecognized revenue associated with such costs.
−Removed: The Company’s products carry a one-year replacement warranty.
+Added: The Company’s products carry a one-year replacement warranty, which is accounted for as an assurance-type warranty.
Payments are typically due within 30 days of invoicing and do not include a significant financing component.
1 unchanged sentence
Shipping and handling costs are classified as a component of cost of revenues in the Consolidated Statements of Operations.
−Removed: Silicon Laboratories Inc.
−Removed: Notes to Consolidated Financial Statements (Continued)
−Removed: December 28, 2024
−Removed: Significant Accounting Policies (Continued)
Stock-Based Compensation
14 unchanged sentences
Adoption of New Accounting Standard
−Removed: The Company adopted FASB ASU 2023-07, Segment Reporting (Topic 280)—Improvements to Reportable Segment Disclosures on December 28, 2024.
−Removed: This ASU requires interim and annual disclosure of significant segment expenses that are regularly provided to the chief operating decision-maker (“CODM”) and included within the reported measure of a segment’s profit or loss, requires interim disclosures about a reportable segment’s profit or loss and assets that are currently required annually, requires disclosure of the position and title of the CODM, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, and contains other disclosure requirements.
−Removed: This authoritative guidance is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.
−Removed: The requirements of this ASU are disclosure-related and did not have an impact on the Company’s consolidated financial position and results of operations.
−Removed: See Note 17, Segment Information , for the updated segment disclosures as a result of adopting this ASU.
−Removed: Recent Accounting Pronouncements
−Removed: In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740)—Improvements to Income Tax Disclosures .
+Added: The Company adopted FASB ASU 2023-09, Income Taxes (Topic 740)—Improvements to Income Tax Disclosures on January 3, 2026 on a prospective basis.
This ASU requires that reporting entities disclose specific categories in the effective tax rate reconciliation as well as information about income taxes paid.
The authoritative guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted.
−Removed: As the requirements of this ASU are disclosure-related, the adoption
+Added: The requirements of this ASU are
Silicon Laboratories Inc.
Notes to Consolidated Financial Statements (Continued)
−Removed: December 28, 2024
+Added: January 3, 2026
Significant Accounting Policies (Continued)
−Removed: will not have an impact on the Company’s consolidated financial position and results of operations.
−Removed: The Company is currently evaluating the impact of this update on its income tax disclosures.
+Added: disclosure-related and did not have an impact on the Company’s consolidated financial position and results of operations.
+Added: See Note 16, Income Taxes , for the updated income tax disclosures as a result of adopting this ASU.
+Added: Recent Accounting Pronouncements
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) .
3 unchanged sentences
The Company is currently evaluating the effect of this new guidance on its consolidated financial statements.
+Added: In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) .
+Added: This ASU clarifies and modernizes the accounting for costs related to internal-use software.
+Added: The amendments in the ASU are effective for all entities for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods.
+Added: Entities may apply the guidance using a prospective, retrospective or modified transition approach.
+Added: Early adoption is permitted as of the beginning of an annual reporting period.
+Added: The Company is currently evaluating the effect of this new guidance on its consolidated financial statements.
+Added: In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832).
+Added: This ASU establishes authoritative guidance about the recognition, measurement, and presentation of a grant received by a business entity from a government, including guidance for 1) a grant related to an asset and 2) a grant related to income.
+Added: The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2028, and interim reporting periods within those annual reporting periods.
+Added: Entities may apply the guidance using a modified prospective or modified retrospective approach.
+Added: Early adoption is permitted in both interim and annual reporting periods.
+Added: The Company is currently evaluating the effect of this new guidance on its consolidated financial statements.
Earnings (Loss) Per Share
−Removed: The following table sets forth the computation of basic and diluted earnings (loss) per share (in thousands, except per share data):
+Added: The following table sets forth the computation of basic and diluted loss per share (in thousands, except per share data):
2026 December 28,
2024 December 30,
−Removed: Net income (loss) $ ( 191,010 ) $ ( 34,516 ) $ 91,402
−Removed: Shares used in computing basic earnings (loss) per share 32,191 31,804 35,086
+Added: Net loss $ ( 64,907 ) $ ( 191,010 ) $ ( 34,516 )
+Added: Shares used in computing basic loss per share 32,721 32,191 31,804
Effect of dilutive securities:
Stock-based awards and convertible debt — — —
−Removed: Shares used in computing diluted earnings (loss) per share 32,191 31,804 36,042
−Removed: Earnings (loss) per share:
+Added: Shares used in computing diluted loss per share 32,721 32,191 31,804
+Added: Loss per share:
Basic $ ( 1.98 ) $ ( 5.93 ) $ ( 1.09 )
Diluted $ ( 1.98 ) $ ( 5.93 ) $ ( 1.09 )
−Removed: In periods where the Company reports net income, diluted earnings per share was computed using the treasury stock method for stock-based awards and the if-converted method for convertible debt.
−Removed: Diluted shares for fiscal 2024 excluded 0.2 million shares and fiscal 2023 excluded 0.9 million shares due to the Company’s net loss for the periods.
−Removed: The Company irrevocably elected to settle the principal amount of its 0.625 % convertible senior notes due 2025 (the “2025 Notes”) in cash and any excess value in shares in the event of a conversion.
−Removed: 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.
−Removed: For fiscal 2022, approximately 0.6 million shares were included in the denominator for the calculation of diluted earnings per share (related to the not yet converted or redeemed 2025 Notes.) Securities that were anti-dilutive were insignificant and were excluded from the computation of diluted earnings per share in all periods presented.
+Added: Diluted shares for fiscal 2025 excluded 0.3 million shares, fiscal 2024 excluded 0.2 million shares, and fiscal 2023 excluded 0.9 million shares due to the Company’s net loss for the periods.
Silicon Laboratories Inc.
Notes to Consolidated Financial Statements (Continued)
−Removed: December 28, 2024
+Added: January 3, 2026
+Added: Earnings (Loss) Per Share (Continued)
+Added: The Company irrevocably elected to settle the principal amount of its 0.625 % convertible senior notes due 2025 (the “2025 Notes”) in cash and any excess value in shares in the event of a conversion.
+Added: 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.
+Added: Securities that were anti-dilutive were insignificant and were excluded from the computation of diluted earnings per share in all periods presented.
Fair Value of Financial Instruments
2 unchanged sentences
Fair Value Measurements
−Removed: at December 28, 2024 Using Total
+Added: at January 3, 2026 Using Total
Description Quoted Prices in
4 unchanged sentences
Money market funds $ 206,051 $ — $ 206,051
+Added: Time deposit — 5,595 5,595
Total cash equivalents $ 206,051 $ 5,595 $ 211,646
Short-term investments:
−Removed: Corporate debt securities $ — $ 13,514 $ 13,514
Government debt securities $ — $ 79,400 $ 79,400
17 unchanged sentences
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;
−Removed: quoted market prices for similar instruments in active markets;
−Removed: quoted prices in less active markets;
−Removed: or pricing models, such as a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data.
−Removed: The Company’s foreign currency derivative instruments are valued using discounted cash flow models.
−Removed: 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.
+Added: quoted market prices for similar
Silicon Laboratories Inc.
Notes to Consolidated Financial Statements (Continued)
−Removed: December 28, 2024
+Added: January 3, 2026
Fair Value of Financial Instruments (Continued)
+Added: instruments in active markets;
+Added: quoted prices in less active markets;
+Added: or pricing models, such as a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data.
The following summarizes the components of available-for-sale investments:
−Removed: As of December 28, 2024 Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalent Marketable Securities
−Removed: Corporate debt securities $ 13,517 $ 12 $ ( 15 ) $ 13,514 $ — $ 13,514
+Added: As of January 3, 2026 Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalent Marketable Securities
+Added: Time deposits $ 5,595 $ — $ — $ 5,595 $ 5,595 $ —
Government debt securities 79,148 252 — 79,400 — 79,400
7 unchanged sentences
Contractual maturities of investments
−Removed: 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 Consolidated Balance Sheet.
−Removed: The following summarizes the contractual underlying maturities of the Company’s available-for-sale investments at December 28, 2024 (in thousands):
+Added: 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 income in the Consolidated Balance Sheet.
+Added: The following summarizes the contractual underlying maturities of the Company’s available-for-sale investments at January 3, 2026 (in thousands):
Due in one year or less $ 69,647 $ 69,822
3 unchanged sentences
Notes to Consolidated Financial Statements (Continued)
−Removed: December 28, 2024
+Added: January 3, 2026
Fair Value of Financial Instruments (Continued)
6 unchanged sentences
$ 26,318 $ ( 49 ) $ 4,187 $ ( 15 ) $ 30,505 $ ( 64 )
−Removed: Less Than 12 Months 12 Months or Greater Total
−Removed: As of December 30, 2023 Fair
−Removed: Corporate debt securities $ 12,449 $ ( 13 ) $ 95,760 $ ( 867 ) $ 108,209 $ ( 880 )
−Removed: Government debt securities 28,255 ( 115 ) 31,122 ( 440 ) 59,377 ( 555 )
−Removed: $ 40,704 $ ( 128 ) $ 126,882 $ ( 1,307 ) $ 167,586 $ ( 1,435 )
−Removed: The gross unrealized losses as of December 28, 2024 and December 30, 2023 were due primarily to changes in market interest rates.
+Added: There were no gross unrealized losses as of January 3, 2026.
+Added: The gross unrealized losses as of December 28, 2024 were due primarily to changes in market interest rates.
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.
−Removed: As of December 28, 2024, there were no material declines in the market value of available-for-sale investments due to credit-related factors.
−Removed: At December 28, 2024 and December 30, 2023, there were no material unrealized gains associated with the Company’s available-for-sale investments.
+Added: As of January 3, 2026, there were no material declines in the market value of available-for-sale investments due to credit-related factors.
Fair values of other financial instruments
−Removed: 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.
−Removed: No notes were outstanding as of December 28, 2024.
+Added: No notes were outstanding as of January 3, 2026.
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.
+Added: The Company’s foreign currency derivative instruments are valued using discounted cash flow models.
+Added: 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.
Derivative Financial Instruments
1 unchanged sentence
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.
−Removed: Silicon Laboratories Inc.
−Removed: Notes to Consolidated Financial Statements (Continued)
−Removed: December 28, 2024
−Removed: Derivative Financial Instruments (Continued)
Cash Flow Hedges
1 unchanged sentence
The Company may use 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.
−Removed: Changes in the fair value of the contracts are recorded in accumulated other comprehensive income (loss) in the Consolidated Balance Sheet and subsequently reclassified into earnings in the period during which the hedged transaction is recognized.
+Added: Changes in the fair value of the contracts are recorded in accumulated other comprehensive income in the 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.
−Removed: 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 Consolidated Statement of Operations based on an assessment of the contracts at the time of termination.
−Removed: As of December 28, 2024, the Company held no such foreign currency forward contracts.
−Removed: The fair value of the contracts, contract gains or losses recognized in other comprehensive income (loss) and amounts reclassified from accumulated other comprehensive income (loss) into earnings were not material for any of the periods presented.
+Added: 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 may be recognized in the Consolidated Statement of Operations based on an assessment of the contracts at the time of termination.
+Added: As of January 3, 2026, the Company held no such foreign currency forward contracts.
+Added: The fair value of the contracts, contract gains or losses recognized in other comprehensive income and
+Added: Silicon Laboratories Inc.
+Added: Notes to Consolidated Financial Statements (Continued)
+Added: January 3, 2026
+Added: Derivative Financial Instruments (Continued)
+Added: amounts reclassified from accumulated other comprehensive income into earnings were not material for any of the periods presented.
Supplemental Information
15 unchanged sentences
$ 128,643 $ 132,136
−Removed: Silicon Laboratories Inc.
−Removed: Notes to Consolidated Financial Statements (Continued)
−Removed: December 28, 2024
−Removed: Supplemental Information (Continued)
Other Current Liabilities
2 unchanged sentences
Income taxes payable 1,218 8,681
−Removed: Other 25,082 35,931
+Added: Accrued price protection credits 14,200 *
28,744 25,082
+Added: $ 87,711 $ 52,362
+Added: ____________________________________________
+Added: * Below threshold
+Added: (1) The current portion of operating lease liabilities is included in this amount.
+Added: See discussion in Note 10 below.
+Added: Silicon Laboratories Inc.
+Added: Notes to Consolidated Financial Statements (Continued)
+Added: January 3, 2026
+Added: Supplemental Information (Continued)
Other Non-Current Liabilities
6 unchanged sentences
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash equivalents, investments, accounts receivable and derivatives.
−Removed: The Company places its cash equivalents and investments primarily in money market funds, corporate bonds, U.S.
−Removed: government securities, asset-back securities, and Yankee bonds.
+Added: The Company places its cash equivalents and investments primarily in money market funds, U.S.
+Added: government securities, and time deposits.
Concentrations of credit risk with respect to accounts receivable are primarily due to customers with large outstanding balances.
14 unchanged sentences
On sales to distributors, the Company’s payment terms often require the distributor to initially pay amounts owed to the Company for an amount in excess of their ultimate cost.
−Removed: The Company’s sales price to its distributors may be higher than the amount that the distributors will ultimately owe the Company because distributors often negotiate price reductions
−Removed: Silicon Laboratories Inc.
−Removed: Notes to Consolidated Financial Statements (Continued)
−Removed: December 28, 2024
−Removed: Risks and Uncertainties (Continued)
−Removed: after purchasing the product from the Company and such reductions are often significant.
+Added: The Company’s sales price to its distributors may be higher than the amount that the distributors will ultimately owe the Company because distributors often negotiate price reductions after purchasing the product from the Company and such reductions are often significant.
These negotiated price discounts are not granted until the distributor sells the product to the end customer, which may occur after the distributor has paid the original invoice amount to the Company.
5 unchanged sentences
The agreements governing these advances can be cancelled by the Company at any time.
+Added: Silicon Laboratories Inc.
+Added: Notes to Consolidated Financial Statements (Continued)
+Added: January 3, 2026
+Added: Risks and Uncertainties (Continued)
A significant portion of the Company’s products are fabricated by Taiwan Semiconductor Manufacturing Co.
12 unchanged sentences
Weighted-Average
−Removed: (Years) December 28, 2024 December 30, 2023
+Added: (Years) January 3, 2026 December 28, 2024
Amount Accumulated
4 unchanged sentences
Total intangible assets 7 $ 161,427 $ ( 138,297 ) $ 190,897 $ ( 154,398 )
−Removed: Silicon Laboratories Inc.
−Removed: Notes to Consolidated Financial Statements (Continued)
−Removed: December 28, 2024
−Removed: Other Intangible Assets, Net (Continued)
The following table presents details of intangible asset amortization expense recognized in the Consolidated Statements of Operations (in thousands):
4 unchanged sentences
$ 13,369 $ 23,034 $ 25,374
+Added: Silicon Laboratories Inc.
+Added: Notes to Consolidated Financial Statements (Continued)
+Added: January 3, 2026
+Added: Other Intangible Assets, Net (Continued)
The estimated aggregate amortization expense for intangible assets subject to amortization for each of the five succeeding fiscal years is as follows (in thousands):
−Removed: 2025 $ 13,369
Credit Facility
6 unchanged sentences
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.
−Removed: The Company was granted a waiver of compliance for the minimum interest coverage ratio through March 29, 2025.
−Removed: Based on the waiver, as of December 28, 2024, the Company was in compliance with all covenants of the credit facility.
+Added: The Company was granted a waiver of compliance for the minimum interest coverage ratio through October 4, 2025.
+Added: As of January 3, 2026, the Company was in compliance with the minimum interest coverage ratio.
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.
−Removed: As of December 28, 2024, no amounts were outstanding on the credit facility.
−Removed: Silicon Laboratories Inc.
−Removed: Notes to Consolidated Financial Statements (Continued)
−Removed: December 28, 2024
+Added: As of January 3, 2026, no amounts were outstanding on the credit facility.
The Company leases certain facilities under operating lease agreements that expire at various dates through 2031.
1 unchanged sentence
Lease costs for operating leases were $ 7.6 million, $ 7.7 million and $ 7.8 million during fiscal 2025, 2024 and 2023, respectively.
+Added: Silicon Laboratories Inc.
+Added: Notes to Consolidated Financial Statements (Continued)
+Added: January 3, 2026
+Added: Leases (Continued)
Supplemental Lease Information
Balance Sheet Information (in thousands) Consolidated Balance
−Removed: Sheet Classification December 28,
+Added: Sheet Classification January 3,
2026 December 28,
2 unchanged sentences
Operating lease liabilities Other non-current liabilities $ 17,026 $ 15,549
−Removed: Cash Flow Information (in thousands) December 28,
+Added: Cash Flow Information (in thousands) January 3,
2026 December 28,
1 unchanged sentence
Right-of-use assets obtained in exchange for operating lease obligations $ 7,384 $ 13,867
−Removed: Operating Lease Information December 28,
+Added: Operating Lease Information January 3,
2026 December 28,
1 unchanged sentence
Weighted-average discount rate 5.17 % 4.87 %
−Removed: The maturities of operating lease liabilities as of December 28, 2024 were as follows (in thousands):
+Added: The maturities of operating lease liabilities as of January 3, 2026 were as follows (in thousands):
Thereafter 3,230
4 unchanged sentences
Lease income from operating leases was $ 2.2 million, $ 2.8 million and $ 3.1 million during fiscal 2025, 2024 and 2023, respectively.
+Added: Maturities of lease income as of January 3, 2026 were as follows (in thousands):
Silicon Laboratories Inc.
Notes to Consolidated Financial Statements (Continued)
−Removed: December 28, 2024
−Removed: Leases (Continued)
−Removed: Maturities of lease income as of December 28, 2024 were as follows (in thousands):
+Added: January 3, 2026
Commitments and Contingencies
2 unchanged sentences
Share Repurchases
−Removed: The Company repurchased 1.5 million shares and 6.9 million shares of its common stock for $ 213.0 million and $ 887.6 million during fiscal 2023 and 2022, respectively.
−Removed: There were no share repurchases in fiscal 2024.
+Added: The Company repurchased 1.5 million shares of its common stock for $ 213.0 million during fiscal 2023.
+Added: There were no share repurchases in fiscal 2025 or 2024.
The Company groups its products as Industrial & Commercial or Home & Life based on the target markets they address.
8 unchanged sentences
During fiscal 2025, 2024, and 2023, the impact of revenue related to performance obligations that were satisfied in previous reporting periods was insignificant.
−Removed: The Company recognized revenue of $ 30.1 million during fiscal 2022 from performance obligations that were satisfied in previous reporting periods.
The following disaggregates the Company’s revenue by sales channel (in thousands):
4 unchanged sentences
$ 784,764 $ 584,386 $ 782,258
−Removed: Silicon Laboratories Inc.
−Removed: Notes to Consolidated Financial Statements (Continued)
−Removed: December 28, 2024
Stock-Based Compensation
4 unchanged sentences
To the extent awards granted under the 2009 Plan terminate, expire, or lapse for any reason, or are settled in cash, shares subject to such awards will again be available for grant.
−Removed: • The 2009 ESPP allows eligible employees to purchase a limited number of shares of the Company’s common stock at no less than 85 % of the fair market value of a share of common stock at prescribed purchase intervals during an offering period.
+Added: • The 2009 ESPP allows eligible employees to purchase a limited number of shares of the Company’s common stock at no less than 85 % of the fair market value of a share of common stock at prescribed purchase intervals
+Added: Silicon Laboratories Inc.
+Added: Notes to Consolidated Financial Statements (Continued)
+Added: January 3, 2026
+Added: Stock-Based Compensation (Continued)
+Added: during an offering period.
Each offering period is comprised of a series of one or more successive and/or overlapping purchase intervals and has a maximum term of 27 months.
7 unchanged sentences
The requisite performance period of these PSUs is approximately three years from the date of grant.
−Removed: The Company granted 95,953 , 85,554 , and 52,078 PSUs in fiscal 2024, 2023, and 2022, respectively.
+Added: The Company granted 145,735 ;
+Added: and 85,554 PSUs in fiscal 2025, 2024, and 2023, respectively.
The rights to purchase common stock granted under the 2009 ESPP are intended to be treated as either (i) purchase rights granted under an “employee stock purchase plan,” as that term is defined in Section 423(b) of the Internal Revenue Code (the “423(b) Plan”), or (ii) purchase rights granted under an employee stock purchase plan that is not subject to the terms and conditions of Section 423(b) of the Internal Revenue Code (the “Non-423(b) Plan”).
The Company will retain the discretion to grant purchase rights under either the 423(b) Plan or the Non-423(b) Plan.
−Removed: During fiscal 2024, 2023 and 2022, the Company issued 173,000 , 154,000 , and 109,000 shares, respectively, under the 2009 ESPP to its employees.
+Added: During fiscal 2025, 2024 and 2023, the Company issued 160,000 ;
+Added: and 154,000 shares, respectively, under the 2009 ESPP to its employees.
The weighted-average fair value for purchase rights granted in fiscal 2025 under the 2009 ESPP was $ 34.90 per share.
5 unchanged sentences
The fair values of all such stock-based grants are generally amortized on a straight-line basis over the vesting period of the grants.
−Removed: The Company estimates potential forfeitures of stock grants and adjusts compensation cost recorded accordingly.
−Removed: The estimate of forfeitures will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are
−Removed: Silicon Laboratories Inc.
−Removed: Notes to Consolidated Financial Statements (Continued)
−Removed: December 28, 2024
−Removed: Stock-Based Compensation (Continued)
−Removed: expected to differ, from such estimates.
−Removed: Changes in estimated forfeitures are recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of stock-based compensation expense to be recognized in future periods.
The following table presents details of stock-based compensation costs recognized in the Consolidated Statements of Operations (in thousands):
7 unchanged sentences
Total $ 68,654 $ 52,945 $ 41,979
+Added: Silicon Laboratories Inc.
+Added: Notes to Consolidated Financial Statements (Continued)
+Added: January 3, 2026
+Added: Stock-Based Compensation (Continued)
The Company recorded $ 1.5 million and $ 0.6 million of stock-based compensation charges during fiscal 2025 and 2024 respectively, in connection with the modification of certain equity awards.
1 unchanged sentence
There were no other significant modifications made to any stock grants during fiscal 2025, 2024 or 2023.
−Removed: The Company had approximately $ 104.3 million of total unrecognized compensation cost related to equity grants as of December 28, 2024 that is expected to be recognized over a weighted-average period of approximately 2.0 years.
+Added: The Company had approximately $ 127.0 million of total unrecognized compensation cost related to equity grants as of January 3, 2026 that is expected to be recognized over a weighted-average period of approximately 2.0 years.
There were no significant stock-based compensation costs capitalized into assets in any of the periods presented.
1 unchanged sentence
The fair values estimated from the Black-Scholes option-pricing model for ESPP shares granted were calculated using the following assumptions:
−Removed: Employee Stock Purchase Plan December 28,
+Added: Employee Stock Purchase Plan January 3,
2026 December 28,
4 unchanged sentences
Dividend yield — — —
−Removed: Silicon Laboratories Inc.
−Removed: Notes to Consolidated Financial Statements (Continued)
−Removed: December 28, 2024
−Removed: Stock-Based Compensation (Continued)
A summary of stock-based compensation activity with respect to fiscal 2025 follows:
6 unchanged sentences
Exercised 18 $ 43.82 $ 1,774
−Removed: Outstanding at December 28, 2024 18 $ 43.82 1.08 $ 1,534
−Removed: Vested at December 28, 2024 and expected to vest 18 $ 43.82 1.08 $ 1,534
−Removed: Exercisable at December 28, 2024 18 $ 43.82 1.08 $ 1,534
+Added: Outstanding at January 3, 2026 — $ —
+Added: Vested at January 3, 2026 and expected to vest — $ —
+Added: Exercisable at January 3, 2026 — $ —
RSAs and RSUs Shares
6 unchanged sentences
Cancelled or forfeited ( 71 ) $ 130.75
−Removed: Outstanding at December 28, 2024 968 $ 132.26 1.22 $ 123,685
−Removed: Outstanding at December 28, 2024 and expected to vest 887 $ 132.62 1.22 $ 113,354
+Added: Outstanding at January 3, 2026 1,151 $ 131.02 1.18 $ 151,802
+Added: Outstanding at January 3, 2026 and expected to vest 1,150 $ 131.04 1.18 $ 151,703
+Added: Silicon Laboratories Inc.
+Added: Notes to Consolidated Financial Statements (Continued)
+Added: January 3, 2026
+Added: Stock-Based Compensation (Continued)
PSUs and MSUs Shares
6 unchanged sentences
Cancelled or forfeited ( 85 ) $ 172.44
−Removed: Outstanding at December 28, 2024 235 $ 165.73 1.23 $ 30,069
−Removed: Outstanding at December 28, 2024 and expected to vest 50 $ 139.69 1.23 $ 6,401
+Added: Outstanding at January 3, 2026 296 $ 155.56 1.35 $ 39,037
+Added: Outstanding at January 3, 2026 and expected to vest 175 $ 146.46 1.35 $ 23,034
The following summarizes the Company’s weighted average fair value at the date of grant:
3 unchanged sentences
Per grant of PSUs and MSUs $ 148.99 $ 138.22 $ 188.45
−Removed: Silicon Laboratories Inc.
−Removed: Notes to Consolidated Financial Statements (Continued)
−Removed: December 28, 2024
−Removed: Stock-Based Compensation (Continued)
The following summarizes the Company’s stock-based payment and stock option values (in thousands):
6 unchanged sentences
Grant date fair value of PSUs and MSUs that vested $ — $ 9,067 $ 3,037
−Removed: As of December 28, 2024, the Company had reserved shares of common stock for future issuance as follows (in thousands):
+Added: As of January 3, 2026, the Company had reserved shares of common stock for future issuance as follows (in thousands):
2009 Plan 839
6 unchanged sentences
The Company contributed $ 3.0 million, $ 3.0 million and $ 3.3 million to the 401(k) Plan during fiscal 2025, 2024 and 2023, respectively.
−Removed: Income (loss), inclusive of equity-method earnings (loss) and before income taxes, includes the following components (in thousands):
+Added: Silicon Laboratories Inc.
+Added: Notes to Consolidated Financial Statements (Continued)
+Added: January 3, 2026
+Added: Loss, inclusive of equity-method loss and before income taxes, includes the following components (in thousands):
2026 December 28,
3 unchanged sentences
$ ( 57,912 ) $ ( 154,813 ) $ ( 26,573 )
−Removed: Silicon Laboratories Inc.
−Removed: Notes to Consolidated Financial Statements (Continued)
−Removed: December 28, 2024
−Removed: Income Taxes (Continued)
−Removed: The provision (benefit) for income taxes consists of the following (in thousands):
−Removed: 2024 December 30,
+Added: The provision for income taxes consists of the following (in thousands):
+Added: Federal $ 182
+Added: State and local 86
+Added: Foreign 5,846
+Added: Total Current 6,114
+Added: State and local ( 150 )
+Added: Total Deferred 881
+Added: Provision for income taxes $ 6,995
2024 December 30,
6 unchanged sentences
Provision for income taxes $ 36,197 $ 7,943
−Removed: The reconciliation of the federal statutory tax rate to the Company’s effective tax rate is as follows:
−Removed: 2024 December 30,
+Added: Silicon Laboratories Inc.
+Added: Notes to Consolidated Financial Statements (Continued)
+Added: January 3, 2026
+Added: Income Taxes (Continued)
+Added: The reconciliation of the federal statutory tax rate to the Company’s effective tax rate is as follows ($ in thousands):
+Added: federal tax at statutory rate $ ( 12,161 ) 21.0 %
+Added: State and local income taxes, net of federal income tax effect (1)
+Added: Foreign tax effects:
+Added: Statutory tax rate difference 2,254 ( 3.9 ) %
+Added: Changes in valuation allowance 10,128 ( 17.5 ) %
+Added: Effect of cross-border tax laws 652 ( 1.1 ) %
+Added: Nontaxable or nondeductible items:
+Added: Enhanced research deduction ( 1,741 ) 3.0 %
+Added: Nondeductible amortization expense 1,230 ( 2.1 ) %
+Added: Other ( 716 ) 1.2 %
+Added: Effect of cross-border tax laws 662 ( 1.1 ) %
+Added: Other 1,225 ( 2.1 ) %
+Added: Other foreign jurisdictions ( 14 ) — %
+Added: Effect of changes in tax laws or rates enacted in the current period — — %
+Added: Effect of cross-border tax laws:
+Added: Subpart F income and GILTI, net of foreign tax credit ( 513 ) 0.9 %
+Added: Other ( 501 ) 0.8 %
+Added: Research and development tax credit ( 6,434 ) 11.1 %
+Added: Changes in valuation allowance 10,376 ( 17.9 ) %
+Added: Nontaxable or nondeductible items:
+Added: Stock-based compensation 3,145 ( 5.4 ) %
+Added: Other nondeductible/nontaxable items 367 ( 0.6 ) %
+Added: Worldwide changes in unrecognized tax benefits ( 567 ) 1.0 %
+Added: Other adjustments ( 333 ) 0.5 %
+Added: Effective Tax Rate $ 6,995 ( 12.1 ) %
+Added: ____________________________________________
+Added: (1) No state jurisdictions were individually material.
+Added: Silicon Laboratories Inc.
+Added: Notes to Consolidated Financial Statements (Continued)
+Added: January 3, 2026
+Added: Income Taxes (Continued)
2024 December 30,
17 unchanged sentences
Effective tax rate ( 23.4 ) % ( 29.9 ) %
+Added: The decrease in the provision for income taxes for fiscal 2025 as compared to fiscal 2024 was primarily due to a decrease in tax expense related to the valuation allowance during fiscal 2025.
The increase in the provision for income taxes for fiscal 2024 as compared to fiscal 2023 was primarily due to the establishment of a valuation allowance against the majority of the Company’s U.S.
and Singapore deferred tax assets during the second quarter of fiscal 2024.
−Removed: The decrease in the provision for income taxes for fiscal 2023 was primarily due to decreases in pre-tax book income and global intangible low-taxed income inclusions as compared to fiscal 2022.
+Added: On July 4, 2025, the U.S.
+Added: government enacted tax legislation commonly referred to as the One Big Beautiful Bill Act (the “OBBBA”).
+Added: The OBBBA extends and/or modifies many provisions first enacted via the Tax Cuts and Jobs Act (“TCJA”) in 2017, as well as introduces new modifications to U.S.federal tax law.
+Added: Beginning with the 2025 tax year, the OBBBA permanently restores current deductibility for U.S.
+Added: research and experimental (“R&E”) expenditures.
+Added: A number of other changes enacted in the OBBBA will not take effect until the 2026 tax year, including various modifications to existing international tax provisions.
+Added: The Company determined that its annual effective tax rate for the current year decreased due to the impacts of the OBBBA, primarily due to U.S.
+Added: R&E expenditures no longer being capitalized within global intangible low-taxed income or “GILTI”, which the Company has elected to treat as a period cost.
+Added: The Company did not identify any material discrete tax impacts related to beginning-of-the-year deferred tax assets and liabilities or valuation allowances due to the enactment of the OBBBA.
+Added: Cash paid for income taxes (net of refunds) consisted of the following (in thousands):
+Added: Federal $ 7,932
+Added: State and local ( 2,668 )
+Added: Foreign 5,694
+Added: Cash paid for income taxes (net of refunds) $ 10,958
Silicon Laboratories Inc.
Notes to Consolidated Financial Statements (Continued)
−Removed: December 28, 2024
+Added: January 3, 2026
Income Taxes (Continued)
−Removed: The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017.
−Removed: Under the Act, research and experimental expenditures incurred for tax years beginning after December 31, 2021 must be capitalized and amortized ratably over five or fifteen years for tax purposes, depending on where the research activities are conducted.
−Removed: The Company has elected to treat global intangible low-taxed income (“GILTI”) as a period cost, so the capitalization of research and experimental costs in GILTI increases the Company’s provision for income taxes.
−Removed: Additionally, the Act required companies to pay a one-time transition tax on the earnings of certain foreign subsidiaries that were previously deferred from U.S.
−Removed: income tax under U.S.
−Removed: The Company elected to pay the transition tax over the eight-year period provided in the Act.
−Removed: As of December 28, 2024, the unpaid balance of its transition tax obligation was $ 7.9 million, which is payable in April 2025 and recorded as a component of other current liabilities in the Consolidated Balance Sheet.
+Added: Individual jurisdictions equaling 5% or more of the total income taxes paid (net of refunds) for the year ended January 3, 2026 include U.S.
+Added: Federal at $ 7.9 million, Minnesota at $( 2.7 ) million, India at $ 2.9 million, and Singapore at $ 0.7 million.
Deferred Income Taxes
Deferred tax assets and liabilities are recorded for the estimated tax impact of temporary differences between the tax basis and book basis of assets and liabilities.
−Removed: Significant components of the Company’s deferred taxes as of December 28, 2024 and December 30, 2023 were as follows (in thousands):
+Added: Significant components of the Company’s deferred taxes as of January 3, 2026 and December 28, 2024 were as follows (in thousands):
2026 December 28,
3 unchanged sentences
Net operating loss carryforwards 25,986 17,484
−Removed: Intangible assets 6,447 7,188
Leases 7,332 6,388
−Removed: Deferred income on shipments to distributors 2,153 6,465
+Added: Intangible assets 5,697 6,447
Accrued liabilities 5,389 2,063
+Added: Deferred income on shipments to distributors 4,824 2,153
Other 7,138 6,130
10 unchanged sentences
Net deferred tax assets (liabilities) $ ( 436 ) $ 479
−Removed: As of December 28, 2024, the Company had foreign net operating loss and research and development tax credit carryforwards of approximately $ 172.6 million and $ 0.4 million, respectively.
−Removed: The foreign net operating loss carryforward does not expire.
+Added: As of January 3, 2026, the Company had foreign net operating loss and research and development tax credit carryforwards of approximately $ 230.3 million and $ 0.4 million, respectively.
+Added: The foreign net operating loss carryforwards do not expire.
The foreign research and development tax credits expire in fiscal years 2044 through 2045.
−Removed: As of December 28, 2024, the Company had U.S.
+Added: As of January 3, 2026, the Company had U.S.
federal net operating loss, research and development tax credit and foreign tax credit carryforwards of approximately $ 8.0 million, $ 10.5 million and $ 3.6 million, respectively.
−Removed: All of the net
+Added: All of the net operating loss and $ 0.2 million of the research and development tax credit carryforwards are subject to an annual limit, which may cause them to expire before they are used.
+Added: The net operating loss and research and development tax credit carryforwards that are subject to limitation expire in fiscal years 2028 through 2030, the remaining research and development tax credit carryforwards expire in fiscal years 2044 through 2045, and the foreign tax credit carryforwards expire in fiscal years 2033 through 2034.
+Added: Additionally, the Company had state net operating loss and state research and development tax credit carryforwards of approximately $ 28.9 million and $ 14.2 million, respectively.
+Added: Certain of these carryforwards expire in fiscal years 2026
Silicon Laboratories Inc.
Notes to Consolidated Financial Statements (Continued)
−Removed: December 28, 2024
+Added: January 3, 2026
Income Taxes (Continued)
−Removed: operating loss and $ 1.1 million of the research and development tax credit carryforwards are subject to an annual limit, which may cause them to expire before they are used.
−Removed: The net operating loss and research and development tax credit carryforwards that are subject to limitation expire in fiscal years 2026 through 2031, the remaining research and development tax credit carryforwards expire in fiscal year 2044, and the foreign tax credit carryforwards expire in fiscal years 2033 through 2034.
−Removed: Additionally, the Company had state net operating loss and state research and development tax credit carryforwards of approximately $ 34.7 million and $ 13.7 million, respectively.
−Removed: Certain of these carryforwards expire in fiscal years 2025 through 2044, and others do not expire.
+Added: through 2044, and others do not expire.
Recognition of some of these loss and credit carryforwards is subject to an annual limit, which may cause them to expire before they are used.
2 unchanged sentences
and Singapore and with respect to research and development tax credit carryforwards in Canada.
−Removed: In the three months ended June 29, 2024, the Company determined that there is a need for a valuation allowance in the U.S.
−Removed: and Singapore due to a forecasted three-year cumulative pre-tax loss for the current and two preceding years in conjunction with the recent downturn in the semiconductor industry.
−Removed: The company intends to maintain the valuation allowance until sufficient future sources of taxable income are forecasted to realize the benefit of the deferred tax assets.
+Added: During fiscal 2024, the Company determined that there is a need for a valuation allowance in the U.S.
+Added: and Singapore due to a three-year cumulative pre-tax loss in conjunction with the recent downturn in the semiconductor industry.
+Added: The Company intends to maintain the valuation allowance until its ability to forecast sufficient future sources of taxable income is reestablished.
The following table summarizes the activity related to the valuation allowance for deferred tax assets (in thousands):
1 unchanged sentence
Expenses Deductions Balance at
−Removed: Year ended December 28, 2024 $ 10,530 $ 50,230 — $ 60,760
+Added: Year ended January 3, 2026 $ 60,760 $ 20,500 ( 191 ) $ 81,069
Year ended December 28, 2024 $ 10,530 $ 50,230 $ — $ 60,760
10 unchanged sentences
Ending balance $ 4,095 $ 4,427 $ 4,868
−Removed: As of December 28, 2024, December 30, 2023 and December 31, 2022, the Company had gross unrecognized tax benefits, inclusive of interest, of $ 4.7 million, $ 5.4 million and $ 4.4 million, respectively, of which $ 3.5 million, $ 5.1 million and $ 4.4 million, respectively, would affect the effective tax rate if recognized.
+Added: As of January 3, 2026, December 28, 2024 and December 30, 2023, the Company had gross unrecognized tax benefits, inclusive of interest, of $ 4.2 million, $ 4.7 million and $ 5.4 million, respectively, of which $ 1.8 million, $ 3.5 million and $ 5.1 million, respectively, would affect the effective tax rate if recognized.
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.
+Added: 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.
+Added: The adjustment would have resulted in approximately 141.3 million Norwegian kroner, or $ 14.0 million, additional Norwegian income tax.
+Added: The Company disagreed with the NTA’s findings and appealed the assessment, concluding that the Company’s position was more likely than not to be sustained in the appeal.
+Added: During fiscal 2025, the Norwegian Tax Appeals Board issued a formal decision in favor of the Company, rejecting the proposed adjustment to its
Silicon Laboratories Inc.
Notes to Consolidated Financial Statements (Continued)
−Removed: December 28, 2024
+Added: January 3, 2026
Income Taxes (Continued)
−Removed: 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.
−Removed: The Company is currently appealing the assessment.
−Removed: The adjustment to the pricing of the intercompany transaction results in approximately 141.3 million Norwegian kroner, or $ 12.4 million, additional Norwegian income tax.
−Removed: 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.
−Removed: The Company plans to exhaust all available administrative remedies, and if unable to resolve this matter through administrative remedies with the NTA, the Company plans to pursue judicial remedies.
−Removed: The Company believes that it has accrued adequate reserves related to all matters contained in tax periods open to examination.
−Removed: Should the Company experience an unfavorable outcome in the NTA matter, however, such an outcome could have a material impact on its financial statements.
+Added: 2013 tax liability.
+Added: Because the Company did not previously establish a reserve related to the NTA assessment, there was no resulting financial statement impact for the final resolution of this matter.
Tax years 2021 through 2025 remain open to examination by the major taxing jurisdictions in which the Company operates.
−Removed: The Company’s 2021 and 2022 tax years are currently under examination in India.
−Removed: 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.
+Added: The Company’s 2022 tax year is currently under examination in the U.S., and the Company’s 2022 through 2023 tax years are currently under examination in India.
+Added: 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 and that it has accrued adequate reserves related to all matters contained in tax periods open to examination.
The Company is not currently under audit in any other major taxing jurisdiction.
−Removed: The Company believes it is reasonably possible that its gross unrecognized benefits will decrease by approximately $ 1.7 million, inclusive of interest, in the next 12 months due to the lapse of the statute of limitations.
Segment Information
2 unchanged sentences
The CODM allocates resources and assesses performance of the business and other activities at the operating segment level.
−Removed: The CODM assesses performance for the operating segment and decides how to allocate resources based on net income (loss) that is also reported on the Consolidated Statement of Operations as Consolidated Net income (loss).
+Added: The CODM assesses performance for the operating segment and decides how to allocate resources based on net loss that is also reported on the Consolidated Statement of Operations as Consolidated Net loss.
The measure of segment assets is reported on the Consolidated Balance Sheets as Total assets.
−Removed: The CODM uses net income (loss) to evaluate income generated in deciding whether to reinvest profits into the segment or to use such profits for other purposes, such as for acquisitions or share repurchases.
−Removed: Net income (loss) is used to monitor budget versus actual results.
−Removed: The CODM also uses net income (loss) in competitive analyses by benchmarking to the Company’s competitors.
+Added: The CODM uses net loss to evaluate income generated in deciding whether to reinvest profits into the segment or to use such profits for other purposes, such as for acquisitions or share repurchases.
+Added: Net loss is used to monitor budget versus actual results.
+Added: The CODM also uses net loss in competitive analyses by benchmarking to the Company’s competitors.
The competitive analysis along with the monitoring of budget versus actual results are used in assessing performance of the segment, and in establishing management and variable compensation.
12 unchanged sentences
Notes to Consolidated Financial Statements (Continued)
−Removed: December 28, 2024
+Added: January 3, 2026
Segment Information (Continued)
The CODM regularly reviews the Consolidated Statement of Operations and a disaggregation of operating expenses, of which the significant expenses are related to employee base compensation.
−Removed: Other segment items include other personnel-related expenses, outside services, software expense, depreciation and amortization of intangible assets, and other expenses.
The following summarizes the significant and other operating expenses:
1 unchanged sentence
2024 December 30,
−Removed: Operating expenses:
+Added: Research and development:
Employee base compensation $ 130,979 $ 123,716 $ 124,850
−Removed: Other segment items 301,485 305,302 359,042
−Removed: Operating expenses $ 477,678 $ 484,740 $ 523,297
+Added: Other research and development expenses (1)
+Added: 222,267 208,509 212,894
+Added: Total research and development $ 353,246 $ 332,225 $ 337,744
+Added: Selling, general and administrative:
+Added: Employee base compensation $ 55,027 $ 52,477 $ 54,588
+Added: Other selling, general and administrative expenses (1)
+Added: 119,251 92,976 92,408
+Added: Total selling, general and administrative $ 174,278 $ 145,453 $ 146,996
+Added: (1) Other research and development and selling, general and administrative expenses include other personnel-related expenses, outside services, software expense, depreciation, amortization, and other expenses.
The following summarizes the Company’s property and equipment, net by geographic area (in thousands):
3 unchanged sentences
Total $ 128,643 $ 132,136
−Removed: Restructuring Activities
−Removed: During 2023, the Company implemented a workforce reduction of approximately 10 % of its employees to reduce costs and align its business in response to market conditions.
−Removed: The Company incurred total employee separation costs of $ 10.0 million and non-cash charges for the accelerated vesting of certain equity awards of approximately $ 0.6 million.
−Removed: All employee separation costs were paid by the fourth quarter of fiscal 2024.
+Added: Subsequent Events
+Added: On February 4, 2026, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Texas Instruments Incorporated, a Delaware corporation (“Parent”), and Caldwell Merger Corp., a Delaware corporation and wholly-owned direct subsidiary of Parent (“Merger Subsidiary”), pursuant to which Merger Subsidiary will merge with and into the Company (the “Merger”), and the Company will survive the Merger as a wholly-owned direct subsidiary of Parent.
+Added: At the effective time of the Merger, each share of the Company’s common stock outstanding as of immediately prior to the effective time (other than dissenting shares or any shares of the Company’s common stock held by the Company as treasury stock or owned by Parent or any of the Company’s or Parent’s subsidiaries) will be cancelled and converted into the right to receive $ 231.00 in cash, without interest.
+Added: The transactions contemplated by the Merger Agreement were unanimously approved by the Company’s board of directors, and the Merger is expected to close in the first half of 2027, subject to customary closing conditions, including approval by the Company’s stockholders and the receipt of required regulatory approvals.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.