Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Income before Income Tax, Domestic and Foreign

The domestic and foreign components of (loss) income before income taxes were as follows:



	Year Ended
(In thousands)	December 31, 2016			January 2, 2016			January 3, 2015
Domestic	$	(32,503	)	$	(92,737	)	$	6,292
Foreign	(10,220		)	(33,464		)	36,649
(Loss) income before taxes	$	(42,723	)	$	(126,201	)	$	42,941

Schedule of Components of Income Tax Expense (Benefit)

The components of the income tax expense (benefit) are as follows:



	Year Ended
(In thousands)	December 31, 2016		January 2, 2016			January 3, 2015
Current:
Federal	$	1,896	$	968		$	329
State	13		80			5
Foreign	7,918		10,634			1,944
	9,827		11,682			2,278
Deferred:
Federal	—		18,713			(7,416		)
State	—		2,318			(513		)
Foreign	90		(173		)	12
	90		20,858			(7,917		)
Income tax expense (benefit)	$	9,917	$	32,540		$	(5,639	)

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense (benefit) 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 31, 2016	January 2, 2016	January 3, 2015
	%	%	%
Statutory federal rate	(35)	(35)	35
Adjustments for tax effects of:
State taxes, net	7	(6)	1
Research and development credits	(2)	(3)	(9)
Stock compensation	3	1	1
Foreign rate differential	14	12	(25)
Foreign dividends	—	5	1
Foreign withholding taxes	9	3	—
Capital loss expiration	—	—	7
Other permanent	3	4	—
Goodwill impairment	—	4	—
Valuation allowance	17	46	(23)
Change in uncertain tax benefit accrual	5	(8)	1
Tax rate change	—	3	(4)
Other	2	—	2
Effective income tax rate	23	26	(13)

Schedule of Deferred Tax Assets and Liabilities

The components of our net deferred tax assets are as follows:



(In thousands)	December 31, 2016			January 2, 2016
Deferred tax assets:
Accrued expenses and reserves	$	5,143		$	5,690
Inventory	290			303
Deferred Revenue	426			3,177
Stock-based and deferred compensation	7,269			7,674
Intangible assets	20,063			16,959
Fixed assets	678			—
Net operating loss carry forwards	137,521			131,829
Tax credit carry forwards	89,174			87,909
Capital loss carry forwards	962			1,262
Other	2,975			2,458
	264,501			257,261
Less: valuation allowance	(260,687		)	(252,578		)
Net deferred tax assets	3,814			4,683
Deferred tax liabilities:
Fixed Assets	—			791
Other	3,746			3,734
Total deferred tax liabilities	3,746			4,525
Net deferred tax assets	$	68		$	158

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 2016, 2015 and 2014:



(In thousands)	Amount
Balance at December 28, 2013	$	22,643
Additions based on tax positions related to the current year	770
Additions based on tax positions of prior years	—
Reduction for tax positions of prior years	(4,673		)
Settlements	—
Reduction as a result of lapse of applicable statute of limitations	(67		)
Balance at January 3, 2015	18,673
Additions based on tax positions related to the current year	4,381
Additions based on tax positions of prior years	—
Additions due to acquisition	41,083
Reduction for tax positions of prior years	(14,958		)
Settlements	—
Reduction as a result of lapse of applicable statute of limitations	(972		)
Balance at January 2, 2016	48,207
Additions based on tax positions related to the current year	2,573
Additions based on tax positions of prior years	530
Additions due to acquisition	—
Reductions for tax positions of prior years	(1,824		)
Settlements	—
Reduction as a result of lapse of applicable statute of limitations	(1,863		)
Balance at December 31, 2016	$	47,623