Income Taxes (Tables)

12 Months Ended

Dec. 28, 2024

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The components of income tax expense are as follows:

	Year Ended
	December 28, 2024			December 30, 2023			December 31, 2022
	(in thousands)
Current:
Federal	$	40,688		$	28,326		$	47,963
State		1,156			879			987
Foreign		3,409			4,647			2,901
		45,253			33,852			51,851
Deferred:
Federal		(25,287	)		(22,429	)		(31,622	)
State		(871	)		242			(1,506	)
Foreign		(318	)		(242	)		(473	)
		(26,476	)		(22,429	)		(33,601	)
Total income tax expense	$	18,777		$	11,423		$	18,250

Income before Tax

The income before tax is comprised of the following:

	Year Ended
	December 28, 2024		December 30, 2023		December 31, 2022
	(in thousands)
Domestic operations	$	207,747	$	107,640	$	239,527
Foreign operations	$	12,700	$	24,942	$	2,057

Income Before Provision for Income Taxes

The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. federal income tax rate of 21% for the years ended December 28, 2024, December 30, 2023 and December 31, 2022, to income before provision for income taxes as follows:

	Year Ended
	December 28, 2024			December 30, 2023			December 31, 2022
	(in thousands, except for percentages)
Federal income tax provision at statutory rate	$	46,294		$	27,842		$	50,732
State taxes, net of federal effect		2,171			1,389			467
Foreign taxes, net of federal effect		854			(2,000	)		(481	)
Foreign Derived Intangible Income (“FDII”) Deduction		(16,960	)		(12,662	)		(25,445	)
US tax on foreign source income		(207	)		184			1,423
Tax effect of share-based compensation		(6,883	)		(2,288	)		(2,497	)
Non-deductible officer's compensation		3,412			2,301			1,910
Research and development tax credit		(6,640	)		(6,410	)		(7,146	)
Change in tax reserves		(2,648	)		(1,133	)		(1,084	)
Change in valuation allowance		(1,790	)		2,180			(276	)
Withholding taxes		785			640			937
Other		389			1,380			(290	)
Provision for income taxes	$	18,777		$	11,423		$	18,250
Effective tax rate		9	%		9	%		8	%

Prior year amounts were reclassified to conform to current year classification requirements for comparability purposes. The total tax provision amounts remained unchanged.

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities are comprised of the following:

	December 28, 2024			December 30, 2023
	(in thousands)
Deferred tax assets:
Reserves and accruals	$	20,315		$	16,658
Deferred revenue		4,677			4,082
Share-based compensation		3,792			3,495
Tax credit carryforward		12,170			13,960
Net operating losses		1,618			1,088
Depreciation and amortization		162			156
Capitalized research and development		48,943			34,165
Operating lease liabilities		2,968			3,744
Other		1,162			2,875
Gross deferred tax assets		95,807			80,223
Less: valuation allowance		(12,170	)		(13,960	)
Total deferred tax assets after valuation allowance		83,637			66,263
Deferred tax liabilities:
Depreciation and amortization		(38,144	)		(43,908	)
Operating lease right of use assets		(2,682	)		(3,519	)
Other		(4	)		—
Gross deferred tax liabilities		(40,830	)		(47,427	)
Net deferred tax assets	$	42,807		$	18,836

Unrecognized Tax Benefits

The total amount of unrecognized tax benefits are as follows:

	Year Ended
	December 28, 2024			December 30, 2023			December 31, 2022
	(in thousands)
Balance, beginning of the period	$	13,142		$	13,010		$	12,373
Gross increases—tax positions in prior period		1,416			29			456
Gross decreases—tax positions in prior period		(33	)		(100	)		—
Gross increases—current-period tax positions		1,761			1,785			1,729
Closure of audit/statute limitation		(3,291	)		(1,582	)		(1,548	)
Balance, end of the period	$	12,995		$	13,142		$	13,010