Income Taxes (Tables)

12 Months Ended

Dec. 29, 2012

Income before provision for income taxes

Income before provision for income taxes consists of the following (in thousands):



	Years Ended
	December 29, 2012		December 31, 2011		January 1, 2011
Domestic	$	1,887	$	41,773	$	37,640
Foreign	2,732		2,811		3,049
Income (loss) before income taxes	$	4,619	$	44,584	$	40,689

Provision (benefit) for income taxes

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



	Years Ended
	December 29, 2012			December 31, 2011			January 1, 2011
Current:
Federal	$	(2,403	)	$	11,059		$	2,031
State	(492		)	1,048			659
Foreign	270			354			55
Total current	(2,625		)	12,461			2,745
Deferred:
Federal	1,753			2,366			(14,266		)
State	379			(158		)	(459		)
Foreign	647			1,230			(3,279		)
Total deferred	2,779			3,438			(18,004		)
Provision (benefit) for income taxes	$	154		$	15,899		$	(15,259	)

Components of deferred tax assets and liabilities

Significant components of the Company's deferred tax assets and liabilities are as follows (in thousands):



	At
	December 29, 2012			December 31, 2011
Deferred tax assets:
Reserves and accruals	$	7,682		$	12,441
Deferred revenue	1,714			1,308
Shared based compensation	3,129			2,242
Tax credit carry-forwards	1,510			999
Net operating losses	10,830			10,133
Depreciation & amortization	3,273			2,957
Other	945			967
Total deferred tax assets	29,083			31,047
Less: Valuation allowance	(10,229		)	(8,142		)
Total deferred tax assets net of valuation allowance	18,854			22,905
Deferred tax liabilities:
Depreciation & amortization	(5,797		)	(6,229		)
Other	(793		)	(1,406		)
Total deferred tax liabilities	(6,590		)	(7,635		)
Net deferred tax assets	$	12,264		$	15,270

Statutory federal income tax rate reconciliation

Differences between income taxes computed by applying the statutory federal income tax rate to income before income taxes and the provision (benefit) for income taxes consist of the following (in thousands):



	Years Ended
	December 29, 2012			December 31, 2011			January 1, 2011
Income taxes computed at U.S. statutory rate	$	1,616		$	15,604		$	14,241
State income taxes	(116		)	636			1,766
Foreign tax rate differential	(275		)	907			(3,512		)
Change in valuation allowance	—			17			(28,825		)
Domestic production activities deduction	(17		)	(1,033		)	(404		)
Tax credits	—			(601		)	(869		)
Benefit of tax elections	(1,309		)	—			—
Liabilities for uncertain tax positions	66			153			1,793
Other, net	189			216			551
Provision (benefit) for income taxes	$	154		$	15,899		$	(15,259	)

Unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):



	Years Ended
	December 29, 2012			December 31, 2011			January 1, 2011
Unrecognized tax benefits-beginning of the period	$	3,599		$	3,370		$	1,032
Foreign currency movements	—			—			(15		)
Gross increases-tax positions in prior period	—			154			1,971
Gross decreases-tax positions in prior period	(183		)	—			—
Gross increases-current-period tax positions	265			622			530
Lapse of statute of limitations	(217		)	(547		)	(148		)
Unrecognized tax benefits - end of the period	$	3,464		$	3,599		$	3,370