Income Taxes (Tables)

12 Months Ended

Dec. 30, 2018

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 (losses) of unconsolidated investees and the components of provision for income taxes are summarized below:



	Fiscal Year
(In thousands)	2018			2017			2016
Geographic distribution of income (loss) from continuing operations before income taxes and equity in earnings of unconsolidated investees:
U.S. income (loss)	$	(778,316	)	$	(1,242,000	)	$	(660,029	)
Non-U.S. income (loss)	(120,355		)	41,250			131,637
Income (loss) before income taxes and equity in earnings (loss) of unconsolidated investees	$	(898,671	)	$	(1,200,750	)	$	(528,392	)
Provision for income taxes:
Current tax benefit (expense)
Federal	$	(1,155	)	$	6,816		$	(6,842	)
State	(553		)	6,575			9,254
Foreign	(4,100		)	(12,074		)	(19,073		)
Total current tax expense	(5,808		)	1,317			(16,661		)
Deferred tax benefit (expense)
Federal				—			3,286
State	—			1,450			6,819
Foreign	4,798			1,177			(762		)
Total deferred tax benefit (expense)	4,798			2,627			9,343
Benefit from (provision for) income taxes	$	(1,010	)	$	3,944		$	(7,318	)

Schedule of effective income tax rate reconciliation

The benefit from (provision for) 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)	2018			2017			2016
Statutory rate	21		%	35		%	35		%
Tax benefit (expense) at U.S. statutory rate	$	188,721		$	420,263		$	184,891
Foreign rate differential	(28,376		)	6,178			24,932
State income taxes, net of benefit	(450		)	(450		)	(329		)
Return to provision adjustments	—			—			10,784
Tax credits (investment tax credit and other)	4,727			8,132			6,396
Change in valuation allowance	(105,363		)	(143,804		)	(178,231		)
Unrecognized tax benefits	2,345			2,430			(42,697		)
Non-controlling interest income	(22,763		)	17,705			17,183
Global intangible low-taxed income (“GILTI”)	(36,455		)	—			—
Goodwill impairment	—			—			(20,236		)
Intercompany profit deferral	—			—			(4,933		)
Effects of tax reform	—			(302,899		)	—
Other, net	(3,396		)	(3,611		)	(5,078		)
Total	$	(1,010	)	$	3,944		$	(7,318	)

Schedule of deferred tax assets and liabilities



	As of
(In thousands)	December 30, 2018			December 31, 2017
Deferred tax assets:
Net operating loss carryforwards	$	225,489		$	160,778
Tax credit carryforwards	55,527			57,072
Reserves and accruals	241,194			194,566
Stock-based compensation stock deductions	9,316			11,160
Basis difference on third-party project sales	50,648			242,290
Other	2,081			2,410
Total deferred tax assets	584,255			668,276
Valuation allowance	(404,923		)	(448,723		)
Total deferred tax assets, net of valuation allowance	179,332			219,553
Deferred tax liabilities:
Outside basis difference on investment in 8point3 Energy Partners	—			(53,460		)
Other intangible assets and accruals	—			(8,257		)
Fixed asset basis difference	(151,192		)	(140,939		)
Other	(14,882		)	(8,252		)
Total deferred tax liabilities	(166,074		)	(210,908		)
Net deferred tax asset	$	13,258		$	8,645

Summary of income tax contingencies

A reconciliation of the beginning and ending amounts of unrecognized tax benefits during fiscal 2018, 2017, and 2016 is as follows:



	Fiscal Year
(In thousands)	2018			2017			2016
Balance, beginning of year	$	105,959		$	82,253		$	41,058
Additions for tax positions related to the current year	2,404			2,478			35,768
Additions for tax positions from prior years	451			22,151			7,322
Reductions for tax positions from prior years/statute of limitations expirations	(2,468		)	(1,460		)	(2,063		)
Foreign exchange (gain) loss	(2,462		)	537			168
Balance at the end of the period	$	103,884		$	105,959		$	82,253

Summary of income tax examinations

The following table summarizes our major tax jurisdictions and the tax years that remain subject to examination by these jurisdictions as of December 30, 2018:



Tax Jurisdictions	Tax Years
United States	2010 and onward
California	2011 and onward
Switzerland	2013 and onward
Philippines	2009 and onward
France	2015 and onward
Italy	2014 and onward