Income Taxes (Tables)

12 Months Ended

Dec. 29, 2018

Income Taxes

Schedule of income before income taxes

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

	Year Ended
	December 29, 2018		December 30, 2017		December 31, 2016
Domestic	$	19,777	$	9,700	$	4,313
Foreign		52,384		67,203		60,183
	$	72,161	$	76,903	$	64,496

Schedule of provision (benefit) for income taxes

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

	Year Ended
	December 29, 2018			December 30, 2017			December 31, 2016
Current:
Domestic	$	(8,843	)	$	48,947		$	2,639
Foreign		5,888			7,077			4,421
Total Current		(2,955	)		56,024			7,060
Deferred:
Domestic		(8,978	)		(25,760	)		(2,430	)
Foreign		503			(453	)		(1,628	)
Total Deferred		(8,475	)		(26,213	)		(4,058	)
Provision (benefit) for income taxes	$	(11,430	)	$	29,811		$	3,002

Schedule of reconciliation of federal 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 29, 2018			December 30, 2017			December 31, 2016
Federal statutory rate		21.0	%		35.0	%		35.0	%
Foreign tax rate benefit		(12.9	)		(25.4	)		(22.6	)
Research and development tax credits		(9.8	)		(4.5	)		(4.1	)
GILTI and Subpart F income		4.3			1.4			1.4
Nondeductible (nontaxable) foreign expenses		3.9			1.1			(4.0	)
State tax expense		1.5			0.9			0.6
Release of prior year unrecognized tax benefits		(2.7	)		(0.6	)		(1.7	)
Excess officer compensation		2.4			1.5			1.4
Other tax effects of equity compensation		(0.4	)		(2.2	)		(1.5	)
Change in cost-sharing treatment of stock-based compensation		(2.2	)		5.2			(0.5	)
Excess tax benefit of stock-based compensation		(5.9	)		(5.6	)		—
Change in prior period valuation allowance		(2.5	)		(1.3	)		(0.6	)
Transition tax on unremitted foreign earnings		(8.4	)		70.8			—
Revaluation of deferred tax balances		0.3			28.2			—
Other deferred tax impacts of tax reform		(3.1	)		(64.8	)		—
Other		(1.3	)		(0.9	)		1.3
Effective Tax Rate		(15.8	)%		38.8	%		4.7	%

Schedule of significant components of deferred taxes

Significant components of the Company's deferred taxes as of December 29, 2018 and December 30, 2017 are as follows (in thousands):

	December 29, 2018			December 30, 2017
Deferred tax assets:
Net operating loss carryforwards	$	9,973		$	12,925
Research and development tax credit carryforwards		12,500			12,322
Stock-based compensation		4,360			5,256
Depreciation and amortization		7,799			—
Capitalized research and development		2,521			3,468
Deferred income on shipments to distributors		5,824			7,070
Expected future cost-sharing adjustment		25,257			21,582
Accrued liabilities and other		7,737			6,999
		75,971			69,622
Less: Valuation allowance		(4,975	)		(6,518	)
		70,996			63,104
Deferred tax liabilities:
Acquired intangible assets		20,656			13,884
Depreciation and amortization		4,604			1,274
Convertible debt		8,080			10,351
Prepaid expenses and other		2,142			1,421
		35,482			26,930
Net deferred tax assets	$	35,514		$	36,174

Schedule 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 29, 2018			December 30, 2017			December 31, 2016
Beginning balance	$	3,187		$	3,054		$	3,610
Additions based on tax positions related to current year		630			456			439
Additions based on tax positions related to prior years		115			114			99
Reductions for tax positions as a result of a lapse of the applicable statute of limitations		(1,896	)		(437	)		(1,094	)
Ending balance	$	2,036		$	3,187		$	3,054