Income Taxes (Tables)

12 Months Ended

Jan. 03, 2020

Schedule Of Income Before Taxes, United States And Foreign

Income before taxes and the provision (benefit) for taxes consisted of the following:



Fiscal Years	2019		2018		2017
(In millions)
Income before taxes:
United States	$	43.0	$	25.4	$	33.2
Foreign	301.8		252.6		215.0
Total	$	344.8	$	278.0	$	248.2

Schedule Of Provision For Taxes



Provision (benefit) for taxes:
U.S. Federal:
Current	$	(3.8	)	$	(19.7	)	$	98.6
Deferred	252.3			(25.8		)	(6.1		)
	248.5			(45.5		)	92.5
U.S. State:
Current	5.1			5.0			4.5
Deferred	(0.7		)	(3.6		)	(1.0		)
	4.4			1.4			3.5
Foreign:
Current	49.2			57.0			42.7
Deferred	(471.8		)	(18.2		)	(9.0		)
	(422.6		)	38.8			33.7
Income tax provision (benefit)	$	(169.7	)	$	(5.3	)	$	129.7
Effective tax rate	(49		)%	(2		)%	52		%

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



Fiscal Years	2019		2018		2017

Statutory federal income tax rate	21	%	21	%	35	%
Increase (reduction) in tax rate resulting from:
Foreign income taxed at different rates	(7	)%	(7	)%	(15	)%
U.S. State income taxes	2	%	1	%	1	%
U.S. Federal research and development credits	(3	)%	(4	)%	(3	)%
Stock-based compensation	1	%	1	%	2	%
Excess tax benefit related to stock-based compensation	(2	)%	(3	)%	(4	)%
Effect of U.S. tax law change	—	%	(8	)%	33	%
Other US taxes on foreign operations	1	%	2	%	—	%
Tax reserve releases	(5	)%	(9	)%	—	%
Intercompany transfer of intellectual property	(60	)%	—	%	—	%
Other	3	%	4	%	3	%
Effective tax rate	(49	)%	(2	)%	52	%

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	2019			2018
(In millions)
Deferred tax liabilities:
Purchased intangibles	$	158.7		$	177.1
Global intangible low-taxed income	233.7			—
Operating lease right-of-use assets	35.3			—
Other	12.8			13.8
Total deferred tax liabilities	440.5			190.9

Deferred tax assets:
Expenses not currently deductible	28.0			33.4
Depreciation and amortization	471.5			7.3
U.S. tax credit carryforwards	34.2			30.3
U.S. net operating loss carryforwards	9.8			20.8
Foreign net operating loss carryforwards	16.2			16.9
Stock-based compensation	13.3			20.3
Global intangible low-taxed income	—			13.4
Operating lease liabilities	36.0			—
Other	14.1			14.7
Total deferred tax assets	623.1			157.1
Valuation allowance	(25.3		)	(27.8		)
Total deferred tax assets	597.8			129.3
Total net deferred tax assets	$	157.3		$	(61.6	)

Reported as:
Non-current deferred income tax assets	$	475.5		$	12.2
Non-current deferred income tax liabilities	(318.2		)	(73.8		)
Net deferred tax assets (liabilities)	$	157.3		$	(61.6	)

Schedule Of Reconciliation Of Unrecognized Tax Benefit

The total amount of the unrecognized tax benefits at the end of fiscal 2019 was $71.6 million. A reconciliation of gross unrecognized tax benefit is as follows:



Fiscal Years	2019			2018			2017
(In millions)
Beginning balance	$	69.1		$	82.4		$	72.9
Increase (decrease) related to prior years' tax positions	3.8			4.5			(0.6		)
Increase related to current year tax positions	12.6			10.0			12.1
Lapse of statute of limitations	(8.2		)	(18.9		)	(1.6		)
Settlement with taxing authorities	(5.7		)	(8.9		)	(0.4		)
Ending balance	$	71.6		$	69.1		$	82.4