Income Taxes (Tables)

12 Months Ended

Dec. 29, 2012

Schedule of Income before Income Tax, Domestic and Foreign



	Year Ended
	December 29, 2012			December 31, 2011		January 1, 2011
Domestic	$	51,859		$	42,619	$	56,782
Foreign	(60,720		)	104		821
(Loss) income before income taxes	$	(8,861	)	$	42,723	$	57,603

Schedule of Components of Income Tax Expense (Benefit)

The components of the income tax (provision) benefit are as follows (in thousands):



	Year Ended
	December 29, 2012			December 31, 2011			January 1, 2011
Current:
Federal	$	344		$	(13,463	)	$	(83	)
State	(36		)	137			(47		)
Foreign	(1,498		)	(541		)	(880		)
	(1,190		)	(13,867		)	(1,010		)
Deferred:
Federal	(18,000		)	45,423			296
State	(1,487		)	3,894			8
Foreign	(68		)	59			175
	(19,555		)	49,376			479
(Provision) benefit for income taxes	$	(20,745	)	$	35,509		$	(531	)

Schedule of Effective Income Tax Rate Reconciliation

The (provision) benefit for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pretax income as a result of the following differences:



	Year Ended
	December 29, 2012	December 31, 2011	January 1, 2011
	%	%	%
Statutory federal rate	35	35	35
Adjustments for tax effects of:
State taxes, net	(7)	3	—
Intellectual property sale	—	144	—
Research and development credits	(1)	(3)	(2)
Foreign rate differential	(252)	2	—
Foreign dividends	3	1	—
Valuation allowance	(19)	(289)	(37)
Change in uncertain tax benefit accrual	3	31	—
Tax rate change	—	(7)	5
Other	4	—	—
Effective income tax rate	(234)	(83)	1

Schedule of Deferred Tax Assets and Liabilities

The components of our net deferred tax assets are as follows (in thousands):



	December 29, 2012			December 31, 2011
Deferred tax assets:
Accrued expenses and reserves	$	1,791		$	4,011
Inventory	—			4,036
Deferred revenue	—			13,047
Stock-based and deferred compensation	4,164			3,716
Intangible assets	8,187			9,277
Fixed assets	—			124
Net operating loss carry forwards	127,400			125,013
Tax credit carry forwards	32,446			31,768
Capital loss carry forwards	6,926			6,916
Unrealized loss on securities	758			925
Other	120			81
	181,792			198,914
Less: valuation allowance	(149,209		)	(147,499		)
Net deferred tax assets	32,583			51,415
Deferred tax liabilities:
Fixed Assets	1,897			—
Prepaid expenses	—			768
Other	608			977
Total deferred tax liabilities	2,505			1,745
Net deferred tax assets	$	30,078		$	49,670

Schedule of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns Roll Forward

The following table summarizes the changes to unrecognized tax benefits for fiscal years 2012, 2011 and 2010 (in thousands):



Unrecognized tax benefit	Amount
Balance at January 2, 2010	$	6,969
Additions based on tax positions related to the current year	786
Additions based on tax positions of prior years	60
Reduction for tax positions of prior years	—
Settlements	—
Reduction as a result of lapse of applicable statute of limitations	(74		)
Balance at January 1, 2011	7,741
Additions based on tax positions related to the current year	15,005
Additions based on tax positions of prior years	—
Additions for acquisition of SiliconBlue	298
Reduction for tax positions of prior years	(106		)
Settlements	(1,248		)
Reduction as a result of lapse of applicable statute of limitations	(138		)
Balance at December 31, 2011	21,552
Additions based on tax positions related to the current year	384
Additions based on tax positions of prior years	192
Reduction for tax positions of prior years	(26		)
Settlements	(30		)
Reduction as a result of lapse of applicable statute of limitations	(392		)
Balance at December 29, 2012	$	21,680