Income Taxes (Tables)

12 Months Ended

Jan. 01, 2022

Income Tax Disclosure [Abstract]

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

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

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

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

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