Income Taxes (Tables)

12 Months Ended

Dec. 30, 2016

Schedule Of Income Before Taxes, United States And Foreign

Income before taxes and the provision for taxes consisted of the following:



Fiscal Years	2016		2015		2014
(In millions)
Income before taxes:
United States	$	68.4	$	55.6	$	99.3
Foreign	108.3		96.2		166.7
Total	$	176.7	$	151.8	$	266.0

Schedule Of Provision For Taxes



Provision for taxes:
US Federal:
Current	$	34.0		$	47.5		$	45.7
Deferred	(14.3		)	(23.0		)	(11.7		)
	19.7			24.5			34.0
US State:
Current	3.5			5.7			7.7
Deferred	0.6			(2.8		)	(0.9		)
	4.1			2.9			6.8
Foreign:
Current	28.8			25.4			25.3
Deferred	(8.1		)	(21.7		)	(14.0		)
	20.7			3.7			11.3
Income tax provision	$	44.5		$	31.1		$	52.1
Effective tax rate	25		%	20		%	20		%

Schedule Of Difference Between The Tax Provision At The Statutory Federal Income Tax Rate And The Tax Provision As A Percentage Of Income Before Taxes (Effective Tax Rate)

The difference between the tax provision at the statutory federal income tax rate and the tax provision as a percentage of income before taxes (effective tax rate) was as follows:



Fiscal Years	2016		2015		2014
Statutory federal income tax rate	35	%	35	%	35	%
Increase (reduction) in tax rate resulting from:
Foreign income taxed at lower rates	(10	)%	(11	)%	(18	)%
US State income taxes	2	%	1	%	2	%
US Federal research and development credits	(3	)%	(3	)%	(1	)%
Stock-based compensation	3	%	1	%	1	%
Foreign audit reserve release	—	%	(2	)%	—	%
Divestiture	(5	)%	—	%	—	%
Valuation allowance release - foreign	—	%	(3	)%	—	%
Other	3	%	2	%	1	%
Effective tax rate	25	%	20	%	20	%

Schedule Of Deferred Tax Assets And Liabilities

The significant components of the Company’s deferred tax assets and liabilities are as follows:



At the End of Fiscal Year	2016			2015
(In millions)
Deferred tax liabilities:
Purchased intangibles	$	91.9		$	122.6
Depreciation and amortization	11.7			11.0
US residual tax on foreign earnings	11.3			12.2
Total deferred tax liabilities	114.9			145.8

Deferred tax assets:
Inventory valuation differences	12.9			11.5
Expenses not currently deductible	27.7			26.2
US federal tax credit carryforwards	0.3			0.6
Deferred revenue	6.9			6.6
US state tax credit carryforwards	15.1			16.4
Accrued warranty	3.1			3.4
US federal net operating loss carryforwards	3.8			5.5
Foreign net operating loss carryforwards	31.2			41.7
Stock-based compensation	31.9			29.6
Other	4.1			9.0
Total deferred tax assets	137.0			150.5
Valuation allowance	(30.6		)	(34.9		)
Total deferred tax assets	106.4			115.6

Total net deferred tax liabilities	$	(8.5	)	$	(30.2	)

Reported as:
Non-current deferred income tax assets	30.3			21.5
Non-current deferred income tax liabilities	(38.8		)	(51.7		)
Net deferred tax liabilities	$	(8.5	)	$	(30.2	)

Schedule Of Reconciliation Of Unrecognized Tax Benefit

The total amount of the unrecognized tax benefits at the end of fiscal 2016 was $72.9 million. A reconciliation of gross unrecognized tax benefit is as follows:



At the End of Fiscal Year	2016			2015			2014
(In millions)
Beginning gross balance	$	59.0		$	51.4		$	44.1
Increase related to prior years' tax positions	7.5			6.0			0.8
Increase related to current year tax positions	9.9			6.2			7.5
Lapse of statute of limitations	(1.4		)	(1.5		)	(1.0		)
Settlement with taxing authorities	(2.1		)	(3.1		)	—
Ending gross balance	$	72.9		$	59.0		$	51.4