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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of income before provision for income taxes are as follows (in thousands):
| Year ended December 31, 2016 |  | Year ended January 2, 2016 |  | Year ended January 3, 2015
United States | $ | 320,702 |  |  | $ | 87,762 |  |  | $ | 69,282 |
Foreign | 97,639 |  |  | 28,583 |  |  | 32,759 |
Total | $ | 418,341 |  |  | $ | 116,345 |  |  | $ | 102,041 |
The following table presents the current and deferred provision (benefit) for income taxes (in thousands):
| Year ended December 31, 2016 |  | Year ended January 2, 2016 |  | Year ended January 3, 2015
Current: |  |  |  |  |
Federal | $ | 99,533 |  |  | $ | 31,983 |  |  | $ | 22,553 |
State | 6,922 |  |  | 2,388 |  |  | 2,736 |
Foreign | 5,815 |  |  | 2,448 |  |  | 2,709 |
| 112,270 |  |  | 36,819 |  |  | 27,998 |
Deferred: |  |  |  |  |
Federal | 2,982 |  |  | (900 | ) |  | 342 |
State | 2,331 |  |  | (1,206 | ) |  | (811 | )
Foreign | 92 |  |  | 132 |  |  | 149 |
| 5,405 |  |  | (1,974 | ) |  | (320 | )
Total | $ | 117,675 |  |  | $ | 34,845 |  |  | $ | 27,678 |
Included in the fiscal 2016, 2015 and 2014 current tax provisions are net increases of $6.1 million, $0.6 million and $1.1 million, respectively, for tax and accrued interest related to uncertain tax positions for each fiscal year. The reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate is as follows:
| Year ended December 31, 2016 |  | Year ended January 2, 2016 |  | Year ended January 3, 2015
Statutory regular federal income tax rate | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State provision, net of federal benefit | 1.4 |  |  | 0.7 |  |  | 1.2 |
Nondeductible items | 0.8 |  |  | 1.7 |  |  | 1.3 |
Foreign income taxed at different rates | (5.6 | ) |  | (6.3 | ) |  | (8.2 | )
Tax credits | (0.5 | ) |  | (1.7 | ) |  | (1.5 | )
Change in federal valuation allowance | — |  |  | 0.4 |  |  | (0.1 | )
Excess stock based compensation | (3.0 | ) |  | — |  |  | — |
Other | — |  |  | 0.2 |  |  | (0.6 | )
Total | 28.1 | % |  | 30.0 | % |  | 27.1 | %
The components of the deferred tax assets are as follows (in thousands):
| December 31, 2016 |  | January 2, 2016
Deferred tax assets: |  |  |
Tax credits | $ | 802 |  |  | $ | 4,683 |
Deferred revenue | 5,393 |  |  | 3,994 |
Accrued liabilities | 16,244 |  |  | 20,817 |
Share-based compensation | 18,680 |  |  | 20,688 |
Other | 1,902 |  |  | 2,416 |
Total | 43,021 |  |  | 52,598 |
Valuation allowance | — |  |  | (4,196 | )
Total deferred tax assets | 43,021 |  |  | 48,402 |
Deferred tax liabilities: |  |  |
Property and equipment | (2,691 | ) |  | — |
State taxes and other | (1,695 | ) |  | (4,276 | )
Total deferred tax liabilities | (4,386 | ) |  | (4,276 | )
Net deferred tax assets | $ | 38,635 |  |  | $ | 44,126 |
As of December 31, 2016, the Company has $0.1 million of net operating losses from various states, which will begin to expire in 2028, all of which will be recorded in equity when realized. The Company has state research and development tax credits of $2.6 million that will carry forward indefinitely. Additionally, the Company has $0.4 million of investment tax credit on research and development expenditures from its operations in Canada that will begin to expire in 2031. The Company believes that it is more likely than not that the deferred tax assets related to these carryforwards will be realized. In making this determination, the Company considered all available positive and negative evidence, including scheduled reversals of liabilities, projected future taxable income, tax planning strategies and recent financial performance. As a result of certain business and employment actions undertaken by the Company, income earned in a certain European country is subject to a reduced tax rate through 2018 as the Company has met certain employment thresholds. For the years ended December 31, 2016, January 2, 2016 and January 3, 2015, the estimated income tax benefit related to such business arrangement was $4.6 million, $1.3 million and $1.6 million, respectively, and favorably impacted net income per diluted share by $0.09, $0.02 and $0.03, respectively. As of December 31, 2016, the Company has not provided for deferred income taxes on approximately $198.2 million of cumulative undistributed earnings of certain foreign subsidiaries, because such earnings are intended to be permanently reinvested in those operations. If such earnings were distributed, the Company would accrue estimated additional income tax expense of $62.5 million. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in thousands):
| Year ended December 31, 2016 |  | Year ended January 2, 2016
Unrecognized tax benefits (gross), beginning of period | $ | 8,875 |  |  | $ | 8,024 |
Amounts related to Cercacor from prior year | (277 | ) |  | — |
Increase from tax positions in prior period | 143 |  |  | 131 |
Increase from tax positions in current period | 6,437 |  |  | 1,616 |
Settlements | (296 | ) |  | — |
Lapse of statute of limitations | (388 | ) |  | (896 | )
Unrecognized tax benefits (gross), end of period | $ | 14,494 |  |  | $ | 8,875 |
The amount of unrecognized benefits which, if ultimately recognized, could favorably affect the tax rate in a future period was $13.1 million and $7.2 million as of December 31, 2016 and January 2, 2016, respectively. It is reasonably possible that the amount of unrecognized tax benefits in various jurisdictions may change in the next 12 months due to the expiration of statutes of limitation and audit settlements. However, due to the uncertainty surrounding the timing of these events, an estimate of the change within the next 12 months cannot be made at this time. For the years ended December 31, 2016, January 2, 2016 and January 3, 2015, the Company accrued $0.1 million, $0.2 million and less than $0.1 million, respectively, for interest and penalties related to unrecognized tax benefits as part of income tax expense. Total accrued interest and penalties related to unrecognized tax benefits as of December 31, 2016 and January 2, 2016 were $1.2 million and $1.1 million, respectively. The Company conducts business in multiple jurisdictions, and as a result, one or more of the Company’s subsidiaries files income tax returns in the U.S. federal, various state, local and foreign jurisdictions. The Company has concluded all U.S. federal income tax matters for years through 2011. The Company’s 2012 income tax return is currently under examination by the U.S. Internal Revenue Service. All material state, local and foreign income tax matters have been concluded for years through 2009. The Company does not believe that the results of any tax authority examination would have a significant impact on its financial statements.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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