INCOME TAXES (Tables)

12 Months Ended

Dec. 30, 2023

The components of income from operations before income taxes and the related provision for income taxes are presented below:


	Fiscal Year
	2023		2022		2021
	(in thousands)
Income before income taxes:
U.S.	$	185,667	$	280,075	$	129,598
Non-U.S.	395,617		342,912		351,112
Total income before income taxes	$	581,284	$	622,987	$	480,710
Income tax provision (benefit):
Current:
Federal	$	49,090	$	75,052	$	32,728
Foreign	85,356		68,644		60,197
State	17,817		19,790		9,257
Total current	152,263		163,486		102,182
Deferred:
Federal	(42,987)		(27,230)		(27,486)
Foreign	779		(1,134)		13,891
State	(9,141)		(4,743)		(6,714)
Total deferred	(51,349)		(33,107)		(20,309)
Total provision for income taxes	$	100,914	$	130,379	$	81,873

Reconciliations of the statutory U.S. federal income tax rate to effective tax rates are as follows:


	Fiscal Year
	2023		2022		2021
U.S. statutory income tax rate	21.0	%	21.0	%	21.0	%
Foreign tax rate differences	1.5		0.4		0.1
State income taxes, net of federal tax benefit	1.7		2.3		0.8
Non-deductible compensation	0.8		0.9		1.2
Research tax credits and enhanced deductions	(5.0)		(3.8)		(5.0)
Stock-based compensation	(0.1)		(1.4)		(4.3)
Enacted tax rate changes	(0.1)		0.4		3.0
Tax on unremitted earnings	1.7		1.6		1.8
Impact of tax uncertainties	(0.3)		(1.3)		0.7
Impact of acquisitions and restructuring	(4.2)		2.0		(1.6)
Net operating loss deferred tax asset recognition, net of valuation allowance (NOL DTA)	0.2		(0.8)		—
Global intangible low-taxed income	1.5		0.8		1.3
Foreign-derived intangible income	(1.4)		(1.4)		(1.2)
Other	0.1		0.2		(0.8)
Effective income tax rate	17.4	%	20.9	%	17.0	%

The components of deferred tax assets and liabilities are as follows:


	December 30, 2023		December 31, 2022
	(in thousands)
Deferred tax assets:
Compensation	$	30,167	$	26,341
Accruals and reserves	19,121		16,938
Net operating loss and credit carryforwards	379,959		382,932
Operating lease liability	117,449		100,156
Capitalized R&D Expenditures	35,673		18,616
Other	12,190		8,516
Valuation allowance	(304,248)		(294,753)
Total deferred tax assets	290,311		258,746
Deferred tax liabilities:
Goodwill and other intangibles	(231,020)		(256,234)
Depreciation related	(57,791)		(48,965)
Venture capital investments	(8,350)		(12,007)
Tax on unremitted earnings	(25,080)		(16,407)
Right-of-use assets	(102,620)		(91,716)

Other	(16,520)		(7,737)
Total deferred tax liabilities	(441,381)		(433,066)
Net deferred taxes	$	(151,070)	$	(174,320)

A reconciliation of the Company’s beginning and ending valuation allowance are as follows:


	Fiscal Year
	2023		2022		2021
Beginning balance	$	294,753	$	315,645	$	334,845
Additions (reductions) charged to income tax provision, net	963		1,929		1,023
Additions due to acquisitions	—		—		7,747
Reductions due to divestitures, restructuring	—		(5,337)		(4,706)
Currency translation and other	8,532		(17,484)		(23,264)
Ending balance	$	304,248	$	294,753	$	315,645

A reconciliation of the Company’s beginning and ending unrecognized income tax benefits is as follows:


	Fiscal Year
	2023		2022		2021
	(in thousands)
Beginning balance	$	23,242	$	32,592	$	24,970
Additions to tax positions for current year	3,093		4,756		9,544

Additions to tax positions for prior years	721		962		2,476
Reductions to tax positions for prior years	(4,058)		(1,420)		(1,330)
Settlements	—		(10,514)		(1,870)
Expiration of statute of limitations	(296)		(3,134)		(1,198)
Ending balance	$	22,702	$	23,242	$	32,592