Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes

Schedule of income before income taxes

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

	Year Ended
	December 31, 2016		January 2, 2016		January 3, 2015
Domestic	$	4,313	$	2,249	$	38,174
Foreign		60,183		28,014		10,866
	$	64,496	$	30,263	$	49,040

Schedule of provision for income taxes

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

	Year Ended
	December 31, 2016			January 2, 2016			January 3, 2015
Current:
Domestic	$	2,639		$	951		$	7,083
International		4,421			3,015			882
Total Current		7,060			3,966			7,965
Deferred:
Domestic		(2,430	)		(5,825	)		2,352
International		(1,628	)		2,536			702
Total Deferred		(4,058	)		(3,289	)		3,054
Provision for income taxes	$	3,002		$	677		$	11,019

Schedule of reconciliation of statutory tax rate to effective tax rate

        The reconciliation of the federal statutory tax rate to the Company's effective tax rate is as follows:

	Year Ended
	December 31, 2016			January 2, 2016			January 3, 2015
Federal statutory rate		35.0	%		35.0	%		35.0	%
Foreign tax rate benefit		(27.2	)		(30.7	)		(3.5	)
Research and development tax credits		(4.1	)		(5.6	)		(8.6	)
Release of prior year unrecognized tax benefits		(1.7	)		(1.9	)		(2.6	)
Excess officer compensation		1.4			3.2			2.3
Change in cost-sharing treatment of stock-based compensation		(0.5	)		(7.1	)		—
Change in prior period valuation allowance		(0.6	)		8.8			(1.4	)
Other		2.4			0.5			1.3
Effective Tax Rate		4.7	%		2.2	%		22.5	%

Schedule of significant components of deferred taxes

Significant components of the Company's deferred taxes as of December 31, 2016 and January 2, 2016 are as follows (in thousands):

	December 31, 2016			January 2, 2016
Deferred tax assets:
Net operating loss carryforwards	$	21,187		$	25,869
Research and development tax credit carryforwards		15,068			13,335
Stock-based compensation		7,396			8,757
Capitalized research and development		6,802			8,741
Deferred income on shipments to distributors		9,338			7,413
Expected future cost-sharing adjustment		29,719			25,896
Accrued liabilities and other		11,321			8,619
		100,831			98,630
Less: Valuation allowance		(12,361	)		(10,264	)
		88,470			88,366
Deferred tax liabilities:
Acquired intangible assets		25,785			33,020
Depreciation and amortization		2,939			2,349
Unremitted foreign earnings for expected future cost-sharing adjustment		31,165			27,495
Prepaid expenses and other		3,069			1,991
		62,958			64,855
Net deferred tax assets	$	25,512		$	23,511

Summary of activity related to gross unrecognized tax benefits

        The following table summarizes the activity related to gross unrecognized tax benefits (in thousands):

	Year Ended
	December 31, 2016			January 2, 2016			January 3, 2015
Beginning balance	$	3,610		$	3,929		$	4,998
Additions based on tax positions related to current year		439			432			465
Additions based on tax positions related to prior years		99			—			58
Reductions for tax positions as a result of a lapse of the applicable statute of limitations		(1,094	)		(751	)		(1,592	)
Ending balance	$	3,054		$	3,610		$	3,929