v2.4.0.8

Income Taxes (Tables)

12 Months Ended

Dec. 28, 2013

Schedule of Components of Income Tax Expense (Benefit)

The Company’s income tax provision (benefit) consists of the following:

		Fiscal Year Ended
		December 28,			December 29,			December 31,
		2013			2012			2011
Federal:
Current		$	(11,907)		$	83,185		$	79,305
Deferred			1,913			(22,988)			(25,763)
			(9,994)			60,197			53,542
State:
Current			2,584			8,532			9,087
Deferred			(408)			(5,327)			(4,490)
			2,176			3,205			4,597
Foreign:
Current			37,094			22,296			22,363
Deferred			11,870			(3,573)			(17,237)
			48,964			18,723			5,126
Total		$	41,146		$	82,125		$	63,265

Schedule of Effective Income Tax Rate Reconciliation

The sources and tax effects of the differences, including the impact of establishing tax contingency accruals, are as follows:

		December 28,			December 29,			December 31,
		2013			2012			2011
Federal income tax expense at U.S. statutory rate		$	229,420		$	218,585		$	204,456
State income tax expense, net of federal tax effect			1,414			2,083			2,988
Foreign tax rate differential			(121,279)			(141,456)			(148,058)
Taiwan tax holiday benefit			(4,944)			(6,418)			(13,127)
Net change in uncertain tax postions			(50,700)			19,850			8,283
Other foreign taxes less incentives and credits			5,041			(2,287)			9,658
U.S. federal domestic production activities deduction			(3,550)			(6,276)			(2,415)
U.S. federal research and development credit			(14,876)			-			(6,111)
Other, net			620			(1,956)			7,591
Income tax expense		$	41,146		$	82,125		$	63,265

Schedule of Deferred Tax Assets and Liabilities

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

		December 28,			December 29,
		2013			2012
Deferred tax assets:
Product warranty accruals		$	3,000		$	2,522
Allowance for doubtful accounts			11,394			11,026
Inventory reserves			5,491			6,162
Sales program allowances			525			5,680
Reserve for sales returns			-			3,442
Other accruals			8,927			8,774
Deferred costs			4,266			-
Stock option compensation			47,954			51,241
Tax credit carryforwards			55,435			46,577
Amortization			23,900			25,841
Deferred revenue			57,813			56,293
Net operating losses of subsidiaries			11,561			15,771
Unrealized investment gain			-			2,459
Benefit related to uncertain tax positions			9,904			13,882
Other			4,064			1,334
Valuation allowance related to loss carryforward and tax credits			(63,361)			(51,393)
			180,873			199,611
Deferred tax liabilities:
Depreciation			16,202			16,286
Reserve for sales returns			733			-
Prepaid expenses			4,766			2,886
Book basis in excess of tax basis for acquired entities			2,343			4,907
Unrealized investment loss			1,429			-
Other			-			1,744
			25,473			25,823
Net deferred tax assets		$	155,400		$	173,788

Schedule of Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits

The total amount of unrecognized tax benefits as of December 28, 2013 was $133,015. A reconciliation of the beginning and ending amount of unrecognized tax benefits for years ended December 28, 2013, December 29, 2012, and December 31, 2011 is as follows:

		December 28,			December 29,			December 31,
		2013			2012			2011
Balance at beginning of year		$	182,870		$	156,354		$	149,731
Additions based on tax positions related to prior years			2,668			3,263			834
Reductions based on tax positions related to prior years			(5,224)			(890)			(7,335)
Additions based on tax positions related to current period			30,262			33,232			30,781
Reductions related to settlements with tax authorities			(3,387)			(672)			-
Expiration of statute of limitations			(74,174)			(8,417)			(17,257)
Balance at end of year		$	133,015		$	182,870		$	156,754

X

- Definition

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

-Paragraph 9

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- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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-Name Accounting Standards Codification

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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Tabular disclosure of the change in unrecognized tax benefits.

+ References

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 55

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-URI http://asc.fasb.org/extlink&oid=32707879&loc=d3e36027-109320



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