Income Taxes (Tables)

12 Months Ended

Dec. 30, 2017

Income Taxes

Schedule of income before income taxes

        Income before income taxes includes the following components (in thousands):

	Year Ended
	December 30, 2017		December 31, 2016		January 2, 2016
Domestic	$	9,700	$	4,313	$	2,249
Foreign		67,203		60,183		28,014
	$	76,903	$	64,496	$	30,263

Schedule of provision for income taxes

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

	Year Ended
	December 30, 2017			December 31, 2016			January 2, 2016
Current:
Domestic	$	48,947		$	2,639		$	951
Foreign		7,077			4,421			3,015
Total Current		56,024			7,060			3,966
Deferred:
Domestic		(25,760	)		(2,430	)		(5,825	)
Foreign		(453	)		(1,628	)		2,536
Total Deferred		(26,213	)		(4,058	)		(3,289	)
Provision for income taxes	$	29,811		$	3,002		$	677

Schedule of reconciliation of statutory tax rate to effective tax rate

        The reconciliation of the federal statutory tax rate to the Company's effective tax rate is as follows:

	Year Ended
	December 30, 2017			December 31, 2016			January 2, 2016
Federal statutory rate		35.0	%		35.0	%		35.0	%
Foreign tax rate benefit		(25.2	)		(27.2	)		(30.7	)
Research and development tax credits		(4.5	)		(4.1	)		(5.6	)
Release of prior year unrecognized tax benefits		(0.6	)		(1.7	)		(1.9	)
Excess officer compensation		1.5			1.4			3.2
Change in cost-sharing treatment of stock-based compensation		5.2			(0.5	)		(7.1	)
Excess tax benefit of stock-based compensation		(5.6	)		—			—
Change in prior period valuation allowance		(1.3	)		(0.6	)		8.8
Transition tax on unremitted foreign earnings		70.8			—			—
Revaluation of deferred tax balances		28.2			—			—
Other deferred tax impacts of tax reform		(64.8	)		—			—
Other		0.1			2.4			0.5
Effective Tax Rate		38.8	%		4.7	%		2.2	%

Schedule of significant components of deferred taxes

Significant components of the Company's deferred taxes as of December 30, 2017 and December 31, 2016 are as follows (in thousands):

	December 30, 2017			December 31, 2016
Deferred tax assets:
Net operating loss carryforwards	$	12,925		$	21,187
Research and development tax credit carryforwards		12,322			15,068
Stock-based compensation		5,256			7,396
Capitalized research and development		3,468			6,802
Deferred income on shipments to distributors		7,070			9,338
Expected future cost-sharing adjustment		19,961			29,719
Accrued liabilities and other		8,620			11,321
		69,622			100,831
Less: Valuation allowance		(6,518	)		(12,361	)
		63,104			88,470
Deferred tax liabilities:
Acquired intangible assets		13,884			25,785
Depreciation and amortization		1,274			2,939
Unremitted foreign earnings for expected future cost-sharing adjustment		—			31,165
Convertible debt		10,351			—
Prepaid expenses and other		1,421			3,069
		26,930			62,958
Net deferred tax assets	$	36,174		$	25,512

Schedule of activity related to gross unrecognized tax benefits

        The following table summarizes the activity related to gross unrecognized tax benefits (in thousands):

	Year Ended
	December 30, 2017			December 31, 2016			January 2, 2016
Beginning balance	$	3,054		$	3,610		$	3,929
Additions based on tax positions related to current year		456			439			432
Additions based on tax positions related to prior years		114			99			—
Reductions for tax positions as a result of a lapse of the applicable statute of limitations		(437	)		(1,094	)		(751	)
Ending balance	$	3,187		$	3,054		$	3,610