Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The components of income tax expense are as follows:

	Year Ended
	December 31, 2022			January 1, 2022			December 26, 2020
Current:
Federal	$	47,963		$	21,791		$	1,466
State		987			1,007			371
Foreign		2,901			3,153			5,637
		51,851			25,951			7,474
Deferred:
Federal		(31,622	)		(9,475	)		(10,355	)
State		(1,506	)		(540	)		(1,036	)
Foreign		(473	)		(2,603	)		(240	)
		(33,601	)		(12,618	)		(11,631	)
Total income tax expense (benefit)	$	18,250		$	13,333		$	(4,157	)

Income before Tax

The income before tax is comprised of the following:

	Year Ended
	December 31, 2022		January 1, 2022		December 26, 2020
Domestic operations	$	239,527	$	136,143	$	(120	)
Foreign operations	$	2,057	$	19,539	$	26,988

Income Before Provision for Income Taxes

The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. federal income tax rate of 21% for the years ended December 31, 2022, January 1, 2022 and December 26, 2020, to income before provision for income taxes as follows:

	Year Ended
	December 31, 2022			January 1, 2022			December 26, 2020
Federal income tax provision at statutory rate	$	50,732		$	32,693		$	5,642
State taxes, net of federal effect		467			1,066			126
Foreign taxes, net of federal effect		(481	)		(3,817	)		596
Foreign Derived Intangible Income (“FDII”) Deduction		(25,445	)		(11,061	)		(4,262	)
US tax on foreign source income		1,423			1,721			2,013
Non-deductible officer's compensation		1,910			689			213
Research and development tax credit		(7,146	)		(3,607	)		(4,858	)
Tax impact of audit and statue closures		(1,526	)		(1,987	)		(2,905	)
Impact of the CARES Act		—			(732	)		(1,141	)
Other		(1,684	)		(1,632	)		(419	)
Provision (benefit) for income taxes	$	18,250		$	13,333		$	(4,157	)
Effective tax rate		8	%		9	%		(16	)%

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities are comprised of the following:

	December 31, 2022			January 1, 2022
Deferred tax assets:
Reserves and accruals	$	17,231		$	15,084
Deferred revenue		3,512			4,729
Share-based compensation		3,942			3,023
Tax credit carryforward		12,197			10,339
Net operating losses		1,643			3,254
Depreciation and amortization		125			368
Operating lease liabilities		4,162			3,575
Other		4,044			2,364
Gross deferred tax assets		46,856			42,736
Less: valuation allowance		(11,772	)		(10,948	)
Total deferred tax assets after valuation allowance		35,084			31,788
Deferred tax liabilities:
Depreciation and amortization		(32,693	)		(63,554	)
Operating lease right of use assets		(4,890	)		(3,469	)
Other		(89	)		(224	)
Gross deferred tax liabilities		(37,672	)		(67,247	)
Net deferred tax liabilities	$	(2,588	)	$	(35,459	)

Unrecognized Tax Benefits

The total amount of unrecognized tax benefits are as follows:

	Year Ended
	December 31, 2022			January 1, 2022			December 26, 2020
Balance, beginning of the period	$	12,373		$	13,486		$	15,143
Gross increases—tax positions in prior period		456			156			347
Gross decreases—tax positions in prior period		—			(204	)		—
Gross increases—current-period tax positions		1,729			1,193			1,048
Closure of audit/statute limitation		(1,548	)		(2,258	)		(3,052	)
Balance, end of the period	$	13,010		$	12,373		$	13,486