Income Taxes (Tables)

12 Months Ended

Dec. 29, 2018

Income Tax Disclosure [Abstract]

Income (loss) before provision for income taxes

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

	Years Ended
	December 29, 2018		December 30, 2017		December 31, 2016
Domestic	$	52,836	$	34,238	$	25,372
Foreign		14,688		9,060		3,763
Income (loss) before income taxes	$	67,524	$	43,298	$	29,135

Provision (benefit) for income taxes

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

	Years Ended
	December 29, 2018			December 30, 2017		December 31, 2016
Current:
Federal	$	616		$	3,250	$	697
State		142			9		85
Foreign		5,054			2,998		2,111
		5,812			6,257		2,893
Deferred:
Federal		3,875			6,314		(16,641	)
State		(18	)		53		(320	)
Foreign		207			472		(832	)
		4,064			6,839		(17,793	)
Provision (benefit) for income taxes	$	9,876		$	13,096	$	(14,900	)

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, 2018			December 30, 2017
Deferred tax assets:
Reserves and accruals	$	5,704		$	5,797
Deferred revenue		241			240
Shared-based compensation		1,644			1,483
Tax credit carry-forwards		6,920			9,669
Net operating losses		6,022			9,755
Depreciation & amortization		(7,528	)		(1,525	)
Other		532			207
Total deferred tax assets		13,535			25,626
Less: Valuation allowance		(10,966	)		(13,702	)
Total deferred tax assets net of valuation allowance		2,569			11,924
Deferred tax liabilities:
Depreciation & amortization		(13	)		(12	)
Other		(149	)		(167	)
Total deferred tax liabilities		(162	)		(179	)
Net deferred tax assets	$	2,407		$	11,745

Income Tax Rate Reconciliation

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

	Years Ended
	December 29, 2018			December 30, 2017			December 31, 2016
Income taxes computed at U.S. statutory rate	$	14,180		$	15,153		$	10,197
State income taxes		379			227			223
Foreign tax rate differential		(2,382	)		794			3,502
Change in valuation allowance		3,037			1,490			(25,738	)
Non-deductible equity compensation		(1,241	)		(1,803	)		380
Tax credits		(3,876	)		(2,336	)		(3,191	)
Domestic production activities deduction		-			(608	)		(354	)
Liabilities for uncertain tax positions		12			18			67
Other, net		(233	)		161			14
Provision (benefit) for income taxes	$	9,876		$	13,096		$	(14,900	)

Reconciliation of unrecognized tax benefits

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

	At
	December 29, 2018			December 30, 2017			December 31, 2016
Unrecognized tax benefits - beginning of the period	$	7,151		$	6,477		$	6,961
Gross increases-tax positions in prior period		132			32			23
Gross decreases-tax positions in prior period		—			—			(1,193	)
Gross increases-current-period tax positions		1,000			723			686
Lapse of statute of limitations		(175	)		(81	)		—
Unrecognized tax benefits - end of the period	$	8,108		$	7,151		$	6,477