Income Taxes (Tables)

12 Months Ended

Dec. 30, 2023

Income Taxes

Schedule of income (loss) from continuing operations, inclusive of equity-method earnings and before income taxes

Income (loss) from continuing operations, inclusive of equity-method earnings (loss) and before income taxes, includes the following components (in thousands):

	Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
Domestic	$	(14,539)	$	32,088	$	(15,384)
Foreign		(12,034)		97,764		(29,063)
	$	(26,573)	$	129,852	$	(44,447)

Schedule of provision (benefit) for income taxes

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

	Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
Current:
Domestic	$	3,291	$	52,834	$	(12,630)
Foreign		15,599		3,856		9,447
Total Current		18,890		56,690		(3,183)
Deferred:
Domestic		(9,036)		(17,728)		17,873
Foreign		(1,911)		(512)		(1,263)
Total Deferred		(10,947)		(18,240)		16,610
Provision for income taxes	$	7,943	$	38,450	$	13,427

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 30,		December 31,		January 1,
	2023		2022		2022
Federal statutory rate	21.0	%	21.0	%	21.0	%
Foreign tax rate benefit	(33.2)		(6.2)		(16.4)
(Nondeductible) nontaxable foreign items	(25.5)		4.4		(7.2)
GILTI and Subpart F income, net of foreign tax credits	(24.2)		16.5		(2.4)
Base erosion and anti-abuse tax	(7.4)		—		—
(Nondeductible) nontaxable domestic items	(3.6)		0.7		(2.8)
Foreign withholding taxes	(2.2)		0.4		—
State tax expense	(1.5)		1.2		(0.8)
Change in prior period valuation allowance	(1.5)		(0.3)		(10.5)
Net operating loss not benefited	—		—		(6.0)
Other tax effects of equity compensation	1.1		(0.3)		0.5
Nondeductible officer compensation	1.3		2.0		(10.3)
Excess tax benefit of stock-based compensation	4.0		(1.1)		3.7
Return to provision adjustments	16.5		(2.0)		0.8
Research and development tax credits	26.4		(5.3)		0.1
Other	(1.1)		(1.4)		0.1
Effective tax rate	(29.9)	%	29.6	%	(30.2)	%

Schedule of significant components of deferred taxes

Significant components of the Company’s deferred taxes as of December 30, 2023 and December 31, 2022 were as follows (in thousands):

	December 30,		December 31,
	2023		2022
Deferred tax assets:
Capitalized research and development	$	27,402	$	15,188
Tax credit carryforwards		13,303		13,334
Intangible assets		7,188		7,938
Net operating loss carryforwards		6,911		4,965
Leases		6,584		5,517
Deferred income on shipments to distributors		6,465		6,726
Accrued liabilities		2,859		6,809
Other		3,072		7,118
		73,784		67,595
Less: Valuation allowance		(10,530)		(9,409)
		63,254		58,186
Deferred tax liabilities:
Intangible assets		13,916		13,789
Fixed assets		8,353		8,518
Leases		6,238		5,189
Prepaid expenses and other		4,534		5,637
Unrealized gain on equity-method investment		—		4,120
		33,041		37,253
Net deferred tax assets (liabilities)	$	30,213	$	20,933

Schedule of valuation allowance

The following table summarizes the activity related to the valuation allowance for deferred tax assets (in thousands):

	Balance at		Additions				Balance at
	Beginning of		Charged to				End of
	Period		Expenses		Deductions		Period
Year ended December 30, 2023	$	9,409	$	1,121		—	$	10,530
Year ended December 31, 2022	$	9,529	$	792	$	(912)	$	9,409
Year ended January 1, 2022	$	5,311	$	5,370	$	(1,152)	$	9,529

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 30,		December 31,		January 1,
	2023		2022		2022
Beginning balance	$	4,109	$	3,677	$	2,853
Additions based on tax positions related to current year		737		872		830
Additions based on tax positions related to prior years		22		—		—
Reductions based on tax positions related to prior years		—		(6)		(6)
Reductions for tax positions as a result of a lapse of the applicable statute of limitations		—		(434)		—
Ending balance	$	4,868	$	4,109	$	3,677