Income Taxes (Tables)

12 Months Ended

Jan. 03, 2015

Income Taxes

Components of the provision (benefit) for income taxes

Significant components of the provision for income taxes are as follows (in thousands):

	Year Ended
	January 3, 2015		December 28, 2013			December 29, 2012
Current:
Domestic	$	7,083	$	4,796		$	21,084
International		882		4,093			(3,009	)
Total Current		7,965		8,889			18,075
Deferred:
Domestic		2,352		5,591			5,444
International		702		(2,272	)		(719	)
Total Deferred		3,054		3,319			4,725
	$	11,019	$	12,208		$	22,800

Summary of effective income tax rate reconciliation

	Year Ended
	January 3, 2015			December 28, 2013			December 29, 2012
Federal statutory rate		35.0	%		35.0	%		35.0	%
Foreign tax rate benefit		(3.5	)		(8.2	)		(11.8	)
Research and development tax credits		(8.6	)		(12.8	)		(0.5	)
Release of prior year unrecognized tax benefits		(2.6	)		—			(8.4	)
Intercompany technology license		—			—			11.8
Excess officer compensation		2.3			1.9			1.0
Change in prior period valuation allowance		(1.4	)		3.1			—
Other		1.3			0.7			(0.7	)
		22.5	%		19.7	%		26.4	%

Schedule of components of income before income taxes

Income before income taxes included the following components (in thousands):

	Year Ended
	January 3, 2015		December 28, 2013		December 29, 2012
Domestic	$	38,174	$	41,849	$	80,494
Foreign		10,866		20,178		5,854
	$	49,040	$	62,027	$	86,348

Significant components of the Company's deferred taxes

Significant components of the Company's deferred taxes as of January 3, 2015 and December 28, 2013 are as follows (in thousands):

	January 3, 2015			December 28, 2013
Deferred tax assets:
Net operating loss carryforwards	$	31,518		$	38,399
Research and development tax credit carryforwards		9,740			9,276
Stock-based compensation		6,353			6,757
Capitalized research and development		7,371			8,999
Deferred income on shipments to distributors		8,117			5,733
Accrued liabilities and other		6,481			8,302
		69,580			77,466
Less: Valuation allowance		(3,455	)		(3,775	)
		66,125			73,691
Deferred tax liabilities:
Acquired intangible assets		33,630			38,444
Depreciation and amortization		3,388			2,022
Prepaid expenses and other		1,517			1,889
		38,535			42,355
Net deferred tax assets	$	27,590		$	31,336

Schedule of changes in the unrecognized tax benefits

The following table reflects changes in the unrecognized tax benefits (in thousands):

	Year Ended
	January 3, 2015			December 28, 2013		December 29, 2012
Beginning balance	$	4,998		$	4,364	$	10,943
Additions based on tax positions related to current year		465			316		1,818
Additions based on tax positions related to prior years		58			318		—
Reductions for tax positions related to prior years		(1,592	)		—		(8,397	)
Ending balance	$	3,929		$	4,998	$	4,364