Income Taxes (Tables)

12 Months Ended

Dec. 28, 2019

Schedule of Income before Income Tax, Domestic and Foreign

The domestic and foreign components of Income (loss) before income taxes were as follows:



	Year Ended
(In thousands)	December 28, 2019		December 29, 2018			December 30, 2017
Domestic	$	33,417	$	(8,274	)	$	(17,341	)
Foreign	11,648		(15,695		)	(52,372		)
Income (loss) before taxes	$	45,065	$	(23,969	)	$	(69,713	)

Schedule of Components of Income Tax Expense (Benefit)

The components of the Income tax expense are as follows:



	Year Ended
(In thousands)	December 28, 2019			December 29, 2018			December 30, 2017
Current:
Federal	$	499		$	536		$	508
State	45			38			30
Foreign	1,345			1,869			304
	1,889			2,443			842
Deferred:
Federal	—			—			—
State	—			—			—
Foreign	(317		)	(90		)	7
	(317		)	(90		)	7
Income tax expense	$	1,572		$	2,353		$	849

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pretax income as a result of the following differences:



	Year Ended
	December 28, 2019	December 29, 2018	December 30, 2017
	%	%	%
Statutory federal rate	21	(21)	(35)
Adjustments for tax effects of:
State taxes, net	3	(6)	(7)
Research and development credits	3	(5)	(1)
Stock compensation	(11)	8	3
Foreign rate differential	(2)	20	28
Foreign dividends	—	—	1
Foreign withholding taxes	3	5	—
Other permanent	6	2	—
Other deferred tax asset adjustment	—	13	—
Valuation allowance	(19)	(11)	(73)
Change in uncertain tax benefit accrual	—	2	1
Stock compensation (ASU 2016-09) adoption	—	—	(8)
Tax rate change	—	—	93
Other	—	3	(1)
Effective income tax rate	4	10	1

Schedule of Deferred Tax Assets and Liabilities

The components of our net deferred tax assets are as follows:



(In thousands)	December 28, 2019			December 29, 2018
Deferred tax assets:
Accrued expenses and reserves	$	4,137		$	3,714
Inventory	—			2
Deferred Revenue	—			—
Stock-based and deferred compensation	2,812			2,660
Interest expense disallowance	—			1,283
Intangible assets	12,294			14,649
Fixed assets	256			281
Net operating loss carry forwards	86,899			88,333
Tax credit carry forwards	90,339			92,208
Capital loss carry forwards	4,235			5,007
Other	1,059			1,130
Total deferred tax assets	202,031			209,267
Less: valuation allowance	(198,499		)	(207,108		)
Net deferred tax assets	3,532			2,159
Deferred tax liabilities:
Fixed assets	2,620			1,536
Deferred revenue	434			525
Other	—			(57		)
Total deferred tax liabilities	3,054			2,004
Net deferred tax assets	$	478		$	155

Schedule of Valuation Allowance

The following table displays the activity related to changes in our allowance for doubtful accounts:



Fiscal Years Ended (In thousands)	Balance at beginning of period		Charged (Credit) to costs and expenses			Charged (credit) to other accounts			Settlements & write-offs net of recoveries			Balance at end of period
Allowance for doubtful accounts
December 28, 2019	$	197	$	(30	)	$	(12	)	$	(49	)	$	106
December 29, 2018	$	9,371	$	1		$	73		$	(9,248	)	$	197
December 30, 2017	$	9,299	$	3		$	38		$	31		$	9,371

The following table displays the activity related to changes in our valuation allowance for deferred tax assets:



Fiscal Years Ended (In thousands)	Balance at beginning of period		Charged (Credit) to costs and expenses			Charged (credit) to other accounts			Balance at end of period
Valuation allowance for deferred tax assets
December 28, 2019	$	207,108	$	(8,609	)	$	—		$	198,499
December 29, 2018	$	209,691	$	(2,583	)	$	—		$	207,108
December 30, 2017	$	260,687	$	(50,960	)	$	(36	)	$	209,691

Schedule of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns Roll Forward

The following table summarizes the changes to unrecognized tax benefits for the fiscal years presented:



(In thousands)	Amount
Balance at December 31, 2016	$	47,623
Additions based on tax positions related to the current year	471
Additions based on tax positions of prior years	11
Reduction for tax positions of prior years	(1,226		)
Reduction as a result of lapse of applicable statute of limitations	(2,047		)
Balance at December 30, 2017	44,832
Additions based on tax positions related to the current year	389
Additions based on tax positions of prior years	19
Reductions for tax positions of prior years	(5		)
Reduction as a result of lapse of applicable statute of limitations	(1,235		)
Balance at December 29, 2018	44,000
Additions based on tax positions related to the current year	238
Additions based on tax positions of prior years	334
Reductions for tax positions of prior years	(213		)
Reduction as a result of lapse of applicable statute of limitations	(2,432		)
Balance at December 28, 2019	$	41,927