Income Taxes (Tables)

12 Months Ended

Jan. 02, 2015

Schedule Of Income Before Taxes, United States And Foreign

Income before taxes and the provision for taxes consisted of the following:



Fiscal Years	2014		2013		2012
(In thousands)
Income before taxes:
United States	$	99,264	$	78,271	$	72,025
Foreign	166,751		174,593		157,399
Total	$	266,015	$	252,864	$	229,424

Schedule Of Provision For Taxes



Provision for taxes:
US Federal:
Current	$	45,713		$	38,543		$	33,689
Deferred	(11,708		)	(8,708		)	(1,930		)
	34,005			29,835			31,759
US State:
Current	7,673			6,939			4,273
Deferred	(891		)	(790		)	(1,280		)
	6,782			6,149			2,993
Foreign:
Current	25,367			17,636			19,470
Deferred	(14,027		)	(18,922		)	(14,514		)
	11,340			(1,286		)	4,956
Income tax provision	$	52,127		$	34,698		$	39,708
Effective tax rate	20		%	14		%	17		%

Schedule Of Difference Between The Tax Provision At The Statutory Federal Income Tax Rate And The Tax Provision As A Percentage Of Income Before Taxes (Effective Tax Rate)

The difference between the tax provision at the statutory federal income tax rate and the tax provision as a percentage of income before taxes (effective tax rate) was as follows:



Fiscal Years	2014		2013		2012
Statutory federal income tax rate	35	%	35	%	35	%
Increase (reduction) in tax rate resulting from:
Foreign income taxed at lower rates	(18	)%	(20	)%	(19	)%
US State income taxes	2	%	2	%	1	%
US Federal research and development credits	(1	)%	(3	)%	—	%
Stock-based compensation	1	%	1	%	1	%
Foreign tax rate change	—	%	(2	)%	—	%
Other	1	%	1	%	(1	)%
Effective tax rate	20	%	14	%	17	%

Schedule Of Deferred Tax Assets And Liabilities

The significant components of the Company’s deferred tax assets and liabilities are as follows:



At the End of Fiscal Year	2014			2013
(In thousands)
Deferred tax liabilities:
Purchased intangibles	$	143,253		$	152,437
Depreciation and amortization	11,338			9,008
US residual tax on foreign earnings	12,303			10,464
Other	291			458
Total deferred tax liabilities	167,185			172,367

Deferred tax assets:
Inventory valuation differences	9,823			8,792
Expenses not currently deductible	26,209			25,086
US Federal Credit Carryforwards	420			—
Deferred revenue	4,461			2,884
US state credit carryforwards	15,746			14,125
Accrued warranty	3,789			3,142
US Federal net operating loss carryforwards	7,923			3,660
Foreign net operating loss carryforwards	29,667			35,388
Stock-based compensation	21,756			15,704
Other	5,298			2,665
Total deferred tax assets	125,092			111,446
Valuation allowance	(29,343		)	(31,944		)
Total deferred tax assets	95,749			79,502

Total net deferred tax liabilities	$	(71,436	)	$	(92,865	)

Reported as:
Current deferred income tax assets	$	45,576		$	38,597
Non-current deferred income tax assets	5,024			5,553
Current deferred income tax liabilities	(965		)	(616		)
Non-current deferred income tax liabilities	(121,071		)	(136,399		)
Net deferred tax liabilities	$	(71,436	)	$	(92,865	)

Schedule Of Reconciliation Of Unrecognized Tax Benefit

The total amount of the unrecognized tax benefits (UTB) at the end of fiscal 2014 was $51.4 million. A reconciliation of unrecognized tax benefit is as follows:



At the End of Fiscal Year	2014			2013			2011
(In thousands)
Beginning balance	$	44,107		$	32,250		$	25,984
Increase related to prior years tax positions	853			1,777			—
Increase related to current year tax positions	7,463			11,976			11,604
Lapse of statute of limitations	(1,034		)	(1,896		)	(1,801		)
Settlement with taxing authorities	—			—			(3,537		)
Ending balance	$	51,389		$	44,107		$	32,250

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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