Income Taxes (Tables)

12 Months Ended

Jan. 01, 2016

Schedule Of Income Before Taxes, United States And Foreign

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



Fiscal Years	2015		2014		2013
(In millions)
Income before taxes:
United States	$	55.6	$	99.3	$	78.3
Foreign	96.2		166.7		174.6
Total	$	151.8	$	266.0	$	252.9

Schedule Of Provision For Taxes



Provision for taxes:
US Federal:
Current	$	47.5		$	45.7		$	38.5
Deferred	(23.0		)	(11.7		)	(8.7		)
	24.5			34.0			29.8
US State:
Current	5.7			7.7			7.0
Deferred	(2.8		)	(0.9		)	(0.8		)
	2.9			6.8			6.2
Foreign:
Current	25.4			25.3			17.6
Deferred	(21.7		)	(14.0		)	(18.9		)
	3.7			11.3			(1.3		)
Income tax provision	$	31.1		$	52.1		$	34.7
Effective tax rate	20		%	20		%	14		%

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	2015		2014		2013
Statutory federal income tax rate	35	%	35	%	35	%
Increase (reduction) in tax rate resulting from:
Foreign income taxed at lower rates	(11	)%	(18	)%	(20	)%
US State income taxes	1	%	2	%	2	%
US Federal research and development credits	(3	)%	(1	)%	(3	)%
Stock-based compensation	1	%	1	%	1	%
Foreign tax rate change	—	%	—	%	(2	)%
Valuation allowance release - foreign	(3	)%	—	%	—	%
Other	—	%	1	%	1	%
Effective tax rate	20	%	20	%	14	%

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	2015			2014
(In millions)
Deferred tax liabilities:
Purchased intangibles	$	122.6		$	143.3
Depreciation and amortization	11.0			11.3
US residual tax on foreign earnings	12.2			12.3
Other	—			0.3
Total deferred tax liabilities	145.8			167.2

Deferred tax assets:
Inventory valuation differences	11.5			9.8
Expenses not currently deductible	26.2			26.2
US federal tax credit carryforwards	0.6			0.4
Deferred revenue	6.6			4.5
US state tax credit carryforwards	16.4			15.7
Accrued warranty	3.4			3.8
US federal net operating loss carryforwards	5.5			7.9
Foreign net operating loss carryforwards	41.7			29.7
Stock-based compensation	29.6			21.8
Other	9.0			5.3
Total deferred tax assets	150.5			125.1
Valuation allowance	(34.9		)	(29.3		)
Total deferred tax assets	115.6			95.8

Total net deferred tax liabilities	$	(30.2	)	$	(71.4	)

Reported as:
Current deferred income tax assets	$	—		$	45.6
Non-current deferred income tax assets	21.5			5.0
Current deferred income tax liabilities	—			(0.9		)
Non-current deferred income tax liabilities	(51.7		)	(121.1		)
Net deferred tax liabilities	$	(30.2	)	$	(71.4	)

Schedule Of Reconciliation Of Unrecognized Tax Benefit

The total amount of the unrecognized tax benefits at the end of fiscal 2015 was $59.0 million. A reconciliation of unrecognized tax benefit is as follows:



At the End of Fiscal Year	2015			2014			2013
(In millions)
Beginning gross balance	$	51.4		$	44.1		$	32.2
Increase related to prior years' tax positions	6.0			0.8			1.8
Increase related to current year tax positions	6.2			7.5			12.0
Lapse of statute of limitations	(1.5		)	(1.0		)	(1.9		)
Settlement with taxing authorities	(3.1		)	—			—
Ending gross balance	$	59.0		$	51.4		$	44.1