Income Taxes (Tables)

12 Months Ended

Jan. 03, 2016

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes consists of the following:



	Years ended
	January 3, 2016			December 28, 2014			December 29, 2013
	(In thousands)
Current:
Federal	$	71,509		$	388,532		$	359,012
State	(12,487		)	12,404			9,972
Foreign	87,015			88,563			103,981
	146,037			489,499			472,965
Deferred:
Federal	(9,183		)	10,544			27,328
State	1,458			(13,250		)	2,645
Foreign	2,834			(5,209		)	(29,446		)
	(4,891		)	(7,915		)	527
Provision for income taxes	$	141,146		$	481,584		$	473,492

Schedule of Income before Income Tax, Domestic and Foreign

Income before income taxes consisted of the following:



	Years ended
	January 3, 2016		December 28, 2014		December 29, 2013
	(In thousands)
United States	$	417,685	$	1,319,528	$	1,436,470
Foreign	111,939		169,502		79,679
Total	$	529,624	$	1,489,030	$	1,516,149

Schedule of Effective Income Tax Rate Reconciliation

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



	Years ended
	January 3, 2016		December 28, 2014		December 29, 2013
U.S. federal statutory rate	35.0	%	35.0	%	35.0	%
State taxes, net of federal benefit	(2.4	)	0.8		0.6
Non-deductible share-based compensation expense	3.6		1.0		0.5
Valuation allowance	(0.4	)	0.8		(0.1	)
Tax-exempt interest income	(1.2	)	(0.6	)	(0.7	)
Foreign earnings at other than U.S. rates	(0.5	)	(2.2	)	(2.9	)
Settlements with tax authorities	(4.2	)	(1.7	)	—
R&D credit	(2.1	)	(1.3	)	(1.3	)
Other	(1.1	)	0.5		0.1
Effective income tax rates	26.7	%	32.3	%	31.2	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s net deferred tax assets were as follows:



	January 3, 2016			December 28, 2014
	(In thousands)
Deferred tax assets:
Deferred income on shipments to distributors and retailers and deferred revenue recognized for tax purposes	$	45,542		$	65,002
Accruals and reserves not currently deductible	94,625			98,342
Depreciation and amortization not currently deductible	92,380			96,735
Deductible share-based compensation	40,939			32,679
Unrealized loss on investments	12,782			10,045
Unrealized foreign exchange loss	9,301			10,357
Net operating loss carryforwards	152,276			196,809
Tax credit carryforwards	85,047			61,134
Other	14,389			22,100
Gross deferred tax assets	547,281			593,203
Valuation allowance	(111,403		)	(96,128		)
Deferred tax assets, net of valuation allowance	435,878			497,075

Deferred tax liabilities:
Acquired intangible assets	(81,551		)	(146,955		)
Unrealized gain on investments	(480		)	(2,007		)
U.S. taxes provided on unremitted earnings of foreign subsidiaries	(28,844		)	(28,844		)
Total deferred tax liabilities	(110,875		)	(177,806		)
Net deferred tax assets	$	325,003		$	319,269

Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



	Years ended
	January 3, 2016			December 28, 2014			December 29, 2013
	(In thousands)
Balance, beginning of year	$	125,173		$	185,250		$	179,522
Additions:
Tax positions related to current year	11,813			17,656			8,255
Tax positions related to prior years	14,539			14,411			15,938
Foreign currency translation adjustment	1,906			—			—
Reductions:
Tax positions related to prior years	(9,772		)	(9,597		)	(1,737		)
Expiration of statute of limitations	(12,099		)	(8,039		)	(7,419		)
Settlements with taxing authorities	(27,393		)	(71,121		)	—
Foreign currency translation adjustment	—			(3,387		)	(9,309		)
Balance, end of year	$	104,167		$	125,173		$	185,250