Income Taxes (Tables)

12 Months Ended

Dec. 28, 2020

Income Tax Disclosure [Abstract]

Components of Income (Loss) from Continuing Operations Before Income Taxes

The components of income (loss) from continuing operations before income taxes for the years ended January 3, 2022, December 28, 2020 and December 30, 2019 are:

	For the Year Ended
	January 3, 2022			December 28, 2020			December 30, 2019
	(In thousands)
United States	$	(28,057	)	$	(84,582	)	$	16,066
Foreign		98,110			38,305			18,260
Income (loss) from continuing operations before income taxes	$	70,053		$	(46,277	)	$	34,326

Components of Income Tax (Provision) Benefit

The components of income tax (provision) benefit for the years ended January 3, 2022, December 28, 2020
and December 30, 2019 are:

	For the Year Ended
	January 3, 2022			December 28, 2020			December 30, 2019
	(In thousands)
Current (provision) benefit:
Federal	$	(1,125	)	$	(44	)	$	294
State		547			(4,624	)		(2,922	)
Foreign		(9,211	)		27,902			(12,748	)
Total current		(9,789	)		23,234			(15,376	)
Deferred (provision) benefit:
Federal		2,889			2,446			1,004
State		(1,492	)		4,498			(1,076	)
Foreign		(7,247	)		(287	)		13,043
Total deferred		(5,850	)		6,657			12,971
Income tax (provision) benefit	$	(15,639	)	$	29,891		$	(2,405	)

Reconciliation of Provision for Income Taxes at Statutory Federal Income Tax Rate Compared to Provision for Income Taxes

The following is a reconciliation of the provision for income taxes at the statutory federal income tax rate compared to the Company’s provision for income taxes for the years ended January 3, 2022, December 28, 2020 and December 30, 2019:

	For the Year Ended
	January 3, 2022			December 28, 2020			December 30, 2019
	(In thousands)
Statutory federal income tax (provision) benefit	$	(14,711	)	$	9,718		$	(7,209	)
State income taxes, net of federal benefit and state tax credits		1,815			(2,674	)		(3,163	)
IRC Section 162(m) limitation		(725	)		(712	)		(868	)
Stock options		89			(1,298	)		(252	)
Global Intangible Low-Taxed Income		(9,824	)		(1,300	)		—
Permanently reinvested earnings assertion		(1,392	)		(1,442	)		(1,765	)
Foreign tax differential on foreign earnings & other permanent items		3,917			3,933			687
Change in valuation allowance		(1,139	)		(2,668	)		2,127
Uncertain tax positions		(642	)		36,936			999
Foreign tax credits		3,028			4,250			4,582
Federal research and development credits		3,400			—			—
Goodwill impairment		—			(14,532	)		—
Other		545			(320	)		2,457
Income tax (provision) benefit	$	(15,639	)	$	29,891		$	(2,405	)

Significant Components of Net Deferred Income Tax Assets and Liabilities

The significant components of the net deferred income tax assets (liabilities) as of January 3, 2022 and December 28, 2020 are as follows:

	As of
	January 3, 2022			December 28, 2020
	(In thousands)
Deferred income tax assets:
Net operating loss carryforwards	$	41,354		$	43,209
Reserves and accruals		30,944			29,429
Interest expense limitation		2,826			—
Unrealized loss on cash flow hedge		1,128			4,713
Tax credit carryforwards		38,890			39,757
Stock-based compensation		4,724			4,216
Property, plant and equipment		7,665			9,989
Other deferred income tax assets		707			493
		128,238			131,806
Less: valuation allowance		(16,541	)		(15,322	)
		111,697			116,484
Deferred income tax liabilities:
Repatriation of foreign earnings		(4,482	)		(4,006	)
Property, plant and equipment basis differences		(62,791	)		(50,463	)
Goodwill and intangible amortization		(33,318	)		(39,668	)
Other deferred income tax liabilities		(4,203	)		(5,700	)
Net deferred income tax assets (included in       Deposits and other non-current assets)	$	6,903		$	16,647

Summary of Activity in Valuation Allowance

The following summarizes the activity in the Company’s valuation allowance for the years ended January 3, 2022, December 28, 2020 and December 30, 2019:

	For the Year Ended
	January 3, 2022			December 28, 2020			December 30, 2019
	(In thousands)
Balance at beginning of year	$	15,322		$	14,292		$	16,635
Additions charged to expense		2,330			3,904			1,526
Other reduction charged to expense		(1,111	)		(2,874	)		(3,869	)
Balance at end of year	$	16,541		$	15,322		$	14,292

Summary of HNTE and R&D Benefit and Effect on Earnings per Share

The HNTE status as well as enhanced research and development (R&D) deductions decreased Chinese taxes. HNTE and R&D benefit and effect on earnings per share are as follows:

	For the Year Ended
	January 3, 2022		December 28, 2020		December 30, 2019
	(In thousands, except per share data)
HNTE and R&D benefits	$	5,611	$	4,235	$	6,060
Basic shares		106,314		106,366		105,195
Diluted shares		108,153		106,366		106,332
Increases earnings per share:
Basic	$	0.05	$	0.04	$	0.06
Diluted	$	0.05	$	0.04	$	0.06

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits, exclusive of accrued interest and penalties, is as follows:

	For the Year Ended
	January 3, 2022			December 28, 2020			December 30, 2019
	(In thousands)
Balance at beginning of year	$	7,404		$	37,465		$	30,284
Additions based on tax positions related to the current year		2,749			839			3,553
Additions for tax positions of prior years		41			202			4,952
Reductions for tax positions of prior years		(357	)		(27,283	)		(103	)
Lapse of statute of limitations		(395	)		(3,819	)		(1,221	)
Balance at end of year	$	9,442		$	7,404		$	37,465