Income Taxes (Tables)

12 Months Ended

Dec. 28, 2014

Schedule of income before income tax and components of income tax expense (benefit)

The geographic distribution of income (loss) from continuing operations before income taxes and equity earnings of unconsolidated investees and the components of provision for income taxes are summarized below:



	Fiscal Year
(In thousands)	2014			2013			2012
Geographic distribution of income (loss) from continuing operations before income taxes and equity in earnings of unconsolidated investees:
U.S. income (loss)	$	183,412		$	(32,022	)	$	(140,432	)
Non-U.S. income (loss)	1,202			73,605			(189,231		)
Income (loss) before income taxes and equity in earnings (loss) of unconsolidated investees	$	184,614		$	41,583		$	(329,663	)
Provision for income taxes:
Current tax benefit (expense)
Federal	$	141		$	5,068		$	—
State	3,554			(2,414		)	(805		)
Foreign	(16,571		)	(14,043		)	(28,183		)
Total current tax expense	$	(12,876	)	$	(11,389	)	$	(28,988	)
Deferred tax benefit (expense)
Federal	$	2,797		$	—		$	—
State	10			—			—
Foreign	1,309			(516		)	7,146
Total deferred tax benefit (expense)	4,116			(516		)	7,146
Provision for income taxes	$	(8,760	)	$	(11,905	)	$	(21,842	)

Schedule of effective income tax rate reconciliation

The provision for income taxes differs from the amounts obtained by applying the statutory U.S. federal tax rate to income before taxes as shown below:



	Fiscal Year
(In thousands)	2014			2013			2012
Statutory rate	35		%	35		%	35		%
Tax benefit (expense) at U.S. statutory rate	$	(64,614	)	$	(14,554	)	$	115,382
Foreign rate differential	(15,387		)	9,324			(82,017		)
State income taxes, net of benefit	2,180			(2,414		)	(805		)
Goodwill impairment	—			—			(12,596		)
Deemed foreign dividend	(4,625		)	(2,511		)	—
Tax credits (research and development/investment tax credit)	9,262			15,599			939
Change in valuation allowance	52,489			(32,512		)	(53,075		)
Reserve release	1,948			10,550			—
Non-controlling interest income	11,052			9,570			—
Lehman settlement	—			—			17,726
Other, net	(1,065		)	(4,957		)	(7,396		)
Total	$	(8,760	)	$	(11,905	)	$	(21,842	)

Schedule of deferred tax assets and liabilities



	As of
(In thousands)	December 28, 2014			December 29, 2013
Deferred tax assets:
Net operating loss carryforwards	$	60,092		$	84,815
Research and development credit and California manufacturing credit carryforwards	14,846			26,865
Reserves and accruals	164,585			145,382
Synthetic debt	1,635			13,595
Stock-based compensation stock deductions	14,694			14,752
Other	216			—
Total deferred tax asset	256,068			285,409
Valuation allowance	(118,748		)	(90,571		)
Total deferred tax asset, net of valuation allowance	137,320			194,838
Deferred tax liabilities:
Foreign currency derivatives unrealized gains	(422		)	184
Other intangible assets and accruals	(35,279		)	(44,959		)
Fixed asset basis difference	(95,247		)	(143,491		)
Total deferred tax liabilities	(130,948		)	(188,266		)
Net deferred tax asset	$	6,372		$	6,572

Summary of income tax contingencies

A reconciliation of the beginning and ending amounts of unrecognized tax benefits during fiscal 2014, 2013, and 2012 is as follows:



	Fiscal Year
(In thousands)	2014			2013			2012
Balance, beginning of year	$	29,618		$	62,932		$	33,565
Additions for tax positions related to the current year	5,579			2,053			708
Additions (reductions) for tax positions from prior years	14,408			(24,535		)	32,493
Reductions for tax positions from prior years/statute of limitations expirations	(3,391		)	(12,431		)	(2,684		)
Foreign exchange (gain) loss	(1,927		)	1,599			(1,150		)
Balance at the end of the period	$	44,287		$	29,618		$	62,932

Summary of income tax examinations

The following table summarizes the Company’s major tax jurisdictions and the tax years that remain subject to examination by these jurisdictions as of December 28, 2014:



Tax Jurisdictions	Tax Years
United States	2011 and onward
California	2010 and onward
Switzerland	2005 and onward
Philippines	2011 and onward
France	2010 and onward
Italy	2009 and onward

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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