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Income Taxes
 3 Months Ended
Apr. 03, 2021
Income Tax Disclosure [Abstract]  
Income Taxes
7 Income Taxes
The four principal
 jurisdictions in which the Company manufactures are the U.S., Ireland, the U.K. and Singapore, where the statutory tax rates were
21
%,
12.5
%,
19
% and
17
%, respectively, as of April 
3
,
2021
. The Company ha
d
 a contractual tax rate of
0
% on qualifying activities in Singapore through
March 2021
, based upon the achievement of certain contractual milestones. The Company has a new Development and Expansion Incentive in Singapore that provides a concessionary income tax rate of 
5
% on certain types of income for the period April 
1
,
2021
through March 
31
,
2026
. The effect of applying the 
0
% concessionary income tax rate rather than the statutory tax rate to income arising from qualifying activities in Singapore increased the Company’s net income for the
three
months ended April 
3
,
2021
and March 
28
,
2020
by
$4 million 
and $
2
 million, respectively, and increased the Company’s net income per diluted share by $
0.06
and $
0.04
, respectively.
The Company’s effective
tax
rate for the three months ended April 3, 2021 and March 28, 2020 was 14.8% and 7.4%, respectively. The income tax provision includes a $2 million income tax benefit related to stock-based compensation
for both 
the three months ended April 3, 2021 and March 28, 2020. The effective tax rate for the three months ended
March 28, 2020 included a $4 million income tax benefit related to certain restructuring charges. This income tax benefit decreased the effective tax rate by 7.1
percentage points for the three months ended March 28, 2020. The remaining differences between the effective tax rates can primarily be attributed to differences in the proportionate amounts of pre-tax income recognized in jurisdictions with different effective tax rates.
The Company accounts for its uncertain tax return positions in accordance with the accounting standards for income taxes, which require financial statement reporting of the expected future tax consequences of uncertain tax reporting positions on the presumption that all concerned tax authorities possess full knowledge of those tax reporting positions, as well as all of the pertinent facts and circumstances, but prohibit any discounting of unrecognized tax benefits associated with those reporting positions for the time value of money. The Company continues to classify interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes.
The following is a summary of the activity of the Company’s gross unrecognized tax benefits, excluding interest and penalties, for the three months ended April 3, 2021 and March 28, 2020 (in thousands):
 
    
April 3, 2021
     
March 28, 2020
  
Balance at the beginning of the period
    $ 28,666      $ 27,790  
Net reductions for lapse of statutes taken during the period
      (95 )       (101 ) 
Net additions for tax positions taken during the current period
      289        203  
    
 
 
     
 
 
  
Balance at the end of the period
    $ 28,860      $ 27,892  
    
 
 
     
 
 
  
With limited exceptions, the Company is no longer subject to tax audit examinations in significant jurisdictions for the years ended on or before December 31, 201
5
. The Company continuously monitors the lapsing of statutes of limitations on potential tax assessments for related changes in the measurement of unrecognized tax benefits, related net interest and penalties, and deferred tax assets and liabilities. As of April 3, 2021, the Company expects to record reductions in the measurement of its unrecognized tax benefits and related net interest and penalties of less than $1 million within the next twelve months due to potential tax audit settlements and the lapsing of statutes of limitations on potential tax assessments. The Company does not expect to record any other material reductions in the measurement of its unrecognized tax benefits within the next twelve months.