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Income Taxes (Tables)
 12 Months Ended
Jan. 26, 2020
Income Tax Disclosure [Abstract]  
Schedule of regional income before income taxes
The Company's regional income before income taxes and equity in net gains (losses) of equity method investments was as follows:
 
Fiscal Year Ended
(in thousands)
January 26, 2020
 
January 27, 2019
 
January 28, 2018
Domestic
$
(24,530
)
 
$
(13,667
)
 
$
(16,585
)
Foreign
69,115

 
83,787

 
74,341

Total
$
44,585

 
$
70,120

 
$
57,756
Schedule of components of income tax expense
The provision for income taxes consisted of the following:
 
Fiscal Year Ended
(in thousands)
January 26, 2020
 
January 27, 2019
 
January 28, 2018
Current income tax provision (benefit)
  
 
 
 
 
Federal
$
6,463

 
$
(147
)
 
$
2,108

State
100

 
—

 
—

Foreign
11,861

 
21,753

 
13,442

Subtotal
18,424

 
21,606

 
15,550

Deferred income tax provision (benefit)
  
 
 
 
 
Federal
74

 
(24,928
)
 
7,363

State
(33
)
 
—

 
—

Foreign
(5,637
)
 
3,677

 
(60
)
Subtotal
(5,596
)
 
(21,251
)
 
7,303

Provision for income taxes
$
12,828

 
$
355

 
$
22,853
Schedule of income tax reconciliation
The provision for income taxes reconciles to the amount computed by applying the statutory federal rate to income before taxes as follows:
 
Fiscal Year Ended
(in thousands)
January 26, 2020
 
January 27, 2019
 
January 28, 2018
Federal income tax at statutory rate
$
9,328

  
$
14,725

 
$
19,591

State income taxes, net of federal benefit
68

  
(55
)
 
(159
)
Foreign taxes differential
(966
)
  
2,910

 
(8,698
)
Tax credits generated
(2,026
)
  
(3,344
)
 
(3,278
)
Changes in valuation allowance
(2,722
)
  
(23,029
)
 
(41,911
)
Gain on intra-entity asset transfer
6,802

 
—

 
—

Changes in uncertain tax positions
8,636

  
2,219

 
1,538

Equity compensation
(6,008
)
  
786

 
(8,040
)
Permanent differences
—

  
—

 
264

GILTI and Subpart F income
538

  
1,164

 
299

Impact of U.S. tax reform  (1)
—

 
1,904

 
65,442

Other
(822
)
  
3,075

 
(2,195
)
Provision for income taxes
$
12,828

  
$
355

 
$
22,853


(1) During fiscal year 2020, the Company continued to maintain a valuation allowance against foreign tax credits. The impact of the U.S. tax reform for fiscal year 2019 included a tax benefit from the overall reduction to the transition tax of approximately $5.0 million and a tax expense from the reduction to foreign tax credits of approximately $6.9 million. The impact of the U.S. tax reform for fiscal year 2018 includes $66.5 million of expense due to the estimated impact of the transition tax, net of foreign tax credits generated.
Schedule of components of deferred tax assets and liabilities
The components of the net deferred income tax assets and liabilities at January 26, 2020 and January 27, 2019 were as follows:
(in thousands)
January 26, 2020
 
January 27, 2019
Non-current deferred tax assets:
 
 
 
Inventory reserve
4,147

 
4,984

Bad debt reserve
20

 
17

Foreign tax credits
1,331

 
2,996

Research credit carryforward
6,063

 
6,693

NOL carryforward
7,659

 
8,773

Payroll and related accruals
9,383

 
8,133

Share-based compensation
5,607

 
14,047

Foreign pension deferred
2,070

 
832

Accrued sales reserves
746

 
763

Research and development charges
2,864

 
—

Goodwill and other intangibles
2,875

 
—

Leasing deferred assets
2,396

 
—

Other deferred assets
1,713

 
1,031

Valuation allowance
(16,189
)
 
(18,912
)
Total non-current deferred tax assets
30,685

 
29,357

Non-current deferred tax liabilities:
 
 
 
Goodwill and other intangibles
—

 
(3,227
)
Property, plant and equipment
(6,034
)
 
(6,482
)
Repatriation of foreign earnings
(4,323
)
 
(8,158
)
Leasing deferred liabilities
(2,285
)
 
—

Other non-current deferred tax liabilities
(1,549
)
 
(592
)
Total non-current deferred tax liabilities
(14,191
)
 
(18,459
)
Net deferred tax assets
$
16,494

 
$
10,898
Summary of changes in the valuation allowance
Changes in the valuation allowance for the three years ended January 26, 2020 are summarized in the table below:
 
Fiscal Year Ended
(in thousands)
January 26, 2020
 
January 27, 2019
 
January 28, 2018
Beginning balance
$
18,912

 
$
41,050

 
$
82,961

Additions
159

 
152

 
74

Releases
(2,882
)
 
(22,290
)
 
(41,985
)
Ending balance
$
16,189

  
$
18,912

 
$
41,050
Schedule of gross unrecognized tax benefits
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (before federal impact of state items) is as follows:
 
Fiscal Year Ended
(in thousands)
January 26, 2020
 
January 27, 2019
Beginning balance
$
18,293

  
$
16,059

Net additions based on tax positions related to the current year
2,252

  
2,642

Additions based on tax positions related to prior years
6,850

  
—

Reductions as a result of lapsed statutes
(399
)
 
—

Reductions for settlements with tax authorities
(1,530
)
 
(408
)
Ending balance
$
25,466

  
$
18,293
Schedule of liability for uncertain tax positions
The liability for UTP is reflected on the Balance Sheets as follows:
 
Fiscal Year Ended
(in thousands)
January 26, 2020
 
January 27, 2019
Deferred tax assets - non-current
$
15,575

 
$
12,492

Other long-term liabilities
8,555

 
4,479

Total accrued taxes
$
24,130

 
$
16,971