Income Taxes (Tables)

3 Months Ended

12 Months Ended

Jan. 01, 2012

The provision for income taxes consists of the following (in thousands):

Income before provision for income taxes consisted of the following (in thousands):

The Company’s provision for income taxes differs from the amount computed by applying the federal statutory rates to income before taxes as follows:



	Fiscal years ended
	January 1, 2012		January 2, 2011		January 3, 2010
U.S. federal statutory rate	35.0	%	35.0	%	35.0	%
State taxes, net of federal benefit	0.5		(0.6	)	0.8
Non-deductible share-based compensation expense	0.4		0.2		1.9
Valuation allowance	0.4		(17.4	)	(8.0	)
Tax-exempt interest income	(0.9	)	(0.7	)	(2.2	)
Foreign earnings at other than U.S. rates	(1.8	)	(5.1	)	(10.8	)
Other	(0.4	)	(0.6	)	0.9
Effective income tax rates	33.2	%	10.8	%	17.6	%

Significant components of the Company’s net deferred tax assets were as follows (in thousands):



	January 1, 2012			January 2, 2011
Deferred tax assets:
Deferred income on shipments to distributors and retailers and deferred revenue recognized for tax purposes	$	32,833		$	35,119
Accruals and reserves not currently deductible	62,812			77,998
Depreciation and amortization not currently deductible	59,464			41,434
Deductible share-based compensation	62,864			66,961
Unrealized loss on investments	9,620			18,105
Unrealized foreign exchange loss	78,360			78,753
Net operating loss carryforwards	33,871			25,215
Tax credit carryforward	16,939			6,072
Other	26,747			21,748
Gross deferred tax assets	383,510			371,405
Valuation allowance	(25,614		)	(11,198		)
Deferred tax assets, net of valuation allowance	357,896			360,207

Deferred tax liabilities:
Acquired intangible assets	(1,864		)	(5,685		)
Unrealized gain on investments	(6,201		)	(16,913		)
Unrealized foreign exchange gain	(66,006		)	(92,144		)
U.S. taxes provided on unremitted earnings of foreign subsidiaries	(28,844		)	(28,844		)
Total deferred tax liabilities	(102,915		)	(143,586		)
Net deferred tax assets	$	254,981		$	216,621

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):



Balance at January 3, 2010	$	179,764
Additions:
Tax positions related to current year	10,547
Tax positions related to prior years	14,584
Reductions:
Tax positions related to prior years	(28,597		)
Expiration of statute of limitations	(4,238		)
Balance at January 2, 2011	172,060
Additions:
Tax positions related to current year	10,090
Tax positions related to prior years	4,489
Reductions:
Tax positions related to prior years	(296		)
Expiration of statute of limitations	(517		)
Balance at January 1, 2012	$	185,826