Income Taxes (Tables)

12 Months Ended

Dec. 28, 2014

Income Tax Contingency

Income Tax Expense Benefit Continuing Operations Text Block

The provision for income taxes consists of the following (in thousands):

	Fiscal years ended
	December 28, 2014			December 29, 2013			December 30, 2012
Current:
Federal	$	388,532		$	359,012		$	74,258
State	12,404			9,972			(824		)
Foreign	88,563			103,981			101,710
	489,499			472,965			175,144
Deferred:
Federal	10,544			27,328			45,383
State	(13,250		)	2,645			1,634
Foreign	(5,209		)	(29,446		)	(12,649		)
	(7,915		)	527			34,368
Provision for income taxes	$	481,584		$	473,492		$	209,512

Income Loss Before Provision For Income Taxes Text Block

Income before provision for income taxes consisted of the following (in thousands):

	Fiscal years ended
	December 28, 2014		December 29, 2013		December 30, 2012
United States	$	1,319,528	$	1,436,470	$	518,509
Foreign	169,502		79,679		108,407
Total	$	1,489,030	$	1,516,149	$	626,916

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	Fiscal years ended
	December 28, 2014			December 29, 2013			December 30, 2012
Balance, beginning of year	$	185,250		$	179,522		$	185,826
Additions:
Tax positions related to current year	17,656			8,255			8,164
Tax positions related to prior years	14,411			15,938			942
Reductions:
Tax positions related to prior years	(9,597		)	(1,737		)	(7,186		)
Expiration of statute of limitations	(8,039		)	(7,419		)	(2,003		)
Settlements with taxing authorities	(71,121		)	—			—
Foreign currency translation adjustment	(3,387		)	(9,309		)	(6,221		)
Balance, end of year	$	125,173		$	185,250		$	179,522

Income Tax Expense and Effective Tax Rate

The Company’s provision for income taxes differs from the amount computed by applying the federal statutory rates to income before taxes as follows:

	Fiscal years ended
	December 28, 2014		December 29, 2013		December 30, 2012
U.S. federal statutory rate	35.0	%	35.0	%	35.0	%
State taxes, net of federal benefit	0.8		0.6		0.3
Non-deductible share-based compensation expense	1.0		0.5		1.3
Valuation allowance	0.8		(0.1	)	0.2
Tax-exempt interest income	(0.6	)	(0.7	)	(1.9	)
Foreign earnings at other than U.S. rates	(2.2	)	(2.9	)	(1.2	)
Settlements with tax authorities	(1.7	)	—		(0.6	)
Other	(0.8	)	(1.2	)	0.3
Effective income tax rates	32.3	%	31.2	%	33.4	%

Deferred Tax Assets Liabilities Net Text Block

Significant components of the Company’s net deferred tax assets were as follows (in thousands):

	December 28, 2014			December 29, 2013
Deferred tax assets:
Deferred income on shipments to distributors and retailers and deferred revenue recognized for tax purposes	$	65,002		$	68,117
Accruals and reserves not currently deductible	98,342			63,236
Depreciation and amortization not currently deductible	96,735			81,245
Deductible share-based compensation	32,679			28,684
Unrealized loss on investments	10,045			13,620
Unrealized foreign exchange loss	10,357			8,061
Net operating loss carryforwards	196,809			36,422
Tax credit carryforwards	61,134			37,905
Other	22,100			24,667
Gross deferred tax assets	593,203			361,957
Valuation allowance	(96,128		)	(52,105		)
Deferred tax assets, net of valuation allowance	497,075			309,852
Deferred tax liabilities:
Acquired intangible assets	(146,955		)	(2,701		)
Unrealized gain on investments	(2,007		)	(5,939		)
Unrealized foreign exchange gain	—			(3,127		)
U.S. taxes provided on unremitted earnings of foreign subsidiaries	(28,844		)	(28,844		)
Total deferred tax liabilities	(177,806		)	(40,611		)
Net deferred tax assets	$	319,269		$	269,241