Income Taxes (Tables)
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12 Months Ended |
Jan. 01, 2022 |
Income Tax Disclosure [Abstract] |
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Schedule of income (loss) before provision for income taxes |
Income before provision for income taxes was as follows (in thousands): | | | | | | | | | | | | | | | | | | | Fiscal Year Ended | | January 1, 2022 | | January 2, 2021 | | December 28, 2019 | Domestic | $ | 8,880 | | | $ | 166,973 | | | $ | 84,225 | | Foreign | 19,404 | | | 20,942 | | | 14,608 | | Income before income taxes | $ | 28,284 | | | $ | 187,915 | | | $ | 98,833 | |
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Components of income tax expense |
The components of income tax (benefit) provision were as follows (in thousands): | | | | | | | | | | | | | | | | | | | Fiscal Year Ended | | January 1, 2022 | | January 2, 2021 | | December 28, 2019 | Current | | | | | | Federal | $ | 1,045 | | | $ | 13,593 | | | $ | 13,366 | | State | 441 | | | 2,724 | | | 5,004 | | Foreign | 7,019 | | | 10,451 | | | 6,941 | | Total current income tax provision | $ | 8,505 | | | $ | 26,768 | | | $ | 25,311 | | Deferred | | | | | | Federal | $ | (8,286) | | | $ | 14,695 | | | $ | (9,345) | | State | (690) | | | 2,552 | | | (1,783) | | Foreign | (1,635) | | | (3,168) | | | (650) | | Total deferred income tax (benefit) provision | (10,611) | | | 14,079 | | | (11,778) | | Total income tax (benefit) provision | $ | (2,106) | | | $ | 40,847 | | | $ | 13,533 | |
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Reconciliation of the expected tax (benefit) expense |
The reconciliation of statutory federal income tax to the income tax (benefit) provision is as follows (in thousands): | | | | | | | | | | | | | | | | | | | Fiscal Year Ended | | January 1, 2022 | | January 2, 2021 | | December 28, 2019 | Statutory federal income tax | $ | 5,940 | | | $ | 39,462 | | | $ | 20,755 | | | | | | | | State taxes (net of federal benefit) | 389 | | | 4,834 | | | 3,999 | | Federal and state credits | (7,620) | | | (6,702) | | | (8,152) | | | | | | | | | | | | | | Excess tax (benefits) expenses from stock-based compensation | (4,160) | | | 313 | | | (6,468) | | | | | | | | Foreign-derived intangible income | (3,253) | | | (3,360) | | | (4,180) | | | | | | | | | | | | | | Executive compensation | 1,706 | | | 718 | | | 2,081 | | Foreign tax rate differential | 264 | | | 1,458 | | | 1,986 | | Change in valuation allowance | 4,691 | | | 3,817 | | | 2,678 | | Other | (63) | | | 307 | | | 834 | | | $ | (2,106) | | | $ | 40,847 | | | $ | 13,533 | |
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Components of net deferred tax assets |
The components of net deferred tax assets were as follows (in thousands): | | | | | | | | | | | | | January 1, 2022 | | January 2, 2021 | Deferred tax assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Revenue reserves | $ | 22,039 | | | $ | 20,564 | | Accruals and other liabilities | 14,518 | | | 14,357 | | Operating lease liabilities | 11,428 | | | 12,429 | | Tax credits and net operating loss carryforwards | 17,326 | | | 12,748 | | | | | | Stock-based compensation | 3,463 | | | 4,868 | | | | | | Other | 5,476 | | | 3,793 | | Gross deferred tax assets | 74,250 | | | 68,759 | | Valuation allowance | (13,136) | | | (7,643) | | Total deferred tax assets | 61,114 | | | 61,116 | | | | | | | | | | | | | | Deferred tax liabilities | | | | Intangible assets | 5,469 | | | 3,341 | | Operating lease right-of-use assets | 10,998 | | | 11,443 | | Marketable equity securities | 7,370 | | | 10,676 | | Other | 2,582 | | | 2,957 | | Total deferred tax liabilities | 26,419 | | | 28,417 | | Net deferred tax assets | $ | 34,695 | | | $ | 32,699 | |
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Schedule of adjustments to uncertain tax position |
A summary of the Company’s adjustments to its gross unrecognized tax benefits in the current year is as follows (in thousands): | | | | | | | | | | | | | | | | | | | Fiscal Year Ended | | January 1, 2022 | | January 2, 2021 | | December 28, 2019 | Balance at beginning of period | $ | 8,559 | | | $ | 7,121 | | | $ | 7,119 | | Increase for tax positions related to the current year | 914 | | | 765 | | | 770 | | | | | | | | Increase (decrease) for tax positions related to prior years | 369 | | | 1,231 | | | (768) | | | | | | | | Decrease for lapses of statute of limitations | — | | | (558) | | | — | | Balance at end of period | $ | 9,842 | | | $ | 8,559 | | | $ | 7,121 | |
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