Income Taxes (Tables)

12 Months Ended

Dec. 29, 2017

Schedule Of Income Before Taxes, United States And Foreign

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



Fiscal Years	2017		2016		2015
(In millions)
Income before taxes:
United States	$	38.0	$	68.4	$	55.6
Foreign	221.1		108.3		96.2
Total	$	259.1	$	176.7	$	151.8

Schedule Of Provision For Taxes



Provision for taxes:
US Federal:
Current	$	98.6		$	34.0		$	47.5
Deferred	0.8			(14.3		)	(23.0		)
	99.4			19.7			24.5
US State:
Current	4.5			3.5			5.7
Deferred	(1.1		)	0.6			(2.8		)
	3.4			4.1			2.9
Foreign:
Current	42.7			28.8			25.4
Deferred	(7.6		)	(8.1		)	(21.7		)
	35.1			20.7			3.7
Income tax provision	$	137.9		$	44.5		$	31.1
Effective tax rate	53		%	25		%	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	2017		2016		2015
Statutory federal income tax rate	35	%	35	%	35	%
Increase (reduction) in tax rate resulting from:
Foreign income taxed at lower rates	(15	)%	(10	)%	(11	)%
US State income taxes	1	%	2	%	1	%
US Federal research and development credits	(3	)%	(3	)%	(3	)%
Stock-based compensation	2	%	3	%	1	%
Excess tax benefit related to stock-based compensation	(3	)%	—	%	—	%
Effect of U.S. tax law change	33	%	—	%	—	%
Foreign audit reserve release	—	%	—	%	(2	)%
Divestiture	—	%	(5	)%	—	%
Valuation allowance release - foreign	—	%	—	%	(3	)%
Other	3	%	3	%	2	%
Effective tax rate	53	%	25	%	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	2017			2016
(In millions)
Deferred tax liabilities:
Purchased intangibles	$	69.8		$	91.9
Depreciation and amortization	13.1			11.7
US residual tax on foreign earnings	—			11.3
Total deferred tax liabilities	82.9			114.9

Deferred tax assets:
Inventory valuation differences	4.6			12.9
Expenses not currently deductible	18.1			27.7
US federal tax credit carryforwards	0.2			0.3
Deferred revenue	5.8			6.9
US state tax credit carryforwards	21.7			15.1
Accrued warranty	2.0			3.1
US federal net operating loss carryforwards	6.4			3.8
Foreign net operating loss carryforwards	20.2			31.2
Stock-based compensation	21.5			31.9
Other	(4.4		)	4.1
Total deferred tax assets	96.1			137.0
Valuation allowance	(25.2		)	(30.6		)
Total deferred tax assets	70.9			106.4
Total net deferred tax liabilities	$	(12.0	)	$	(8.5	)

Reported as:
Non-current deferred income tax assets	28.4			30.3
Non-current deferred income tax liabilities	(40.4		)	(38.8		)
Net deferred tax liabilities	$	(12.0	)	$	(8.5	)

Schedule Of Reconciliation Of Unrecognized Tax Benefit

The total amount of the unrecognized tax benefits at the end of fiscal 2017 was $82.4 million. A reconciliation of gross unrecognized tax benefit is as follows:



Fiscal Years	2017			2016			2015
(In millions)
Beginning gross balance	$	72.9		$	59.0		$	51.4
Increase (decrease) related to prior years' tax positions	(0.6		)	7.5			6.0
Increase related to current year tax positions	12.1			9.9			6.2
Lapse of statute of limitations	(1.6		)	(1.4		)	(1.5		)
Settlement with taxing authorities	(0.4		)	(2.1		)	(3.1		)
Ending gross balance	$	82.4		$	72.9		$	59.0