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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Components of Income Before Provision for Income Taxes | The components of income before provision for income taxes are as follows:
(in millions) | Year Ended December 31, 2022 |  | Year Ended January 1, 2022 |  | Year Ended January 2, 2021
United States | $ | 77.6 |  |  | $ | 221.2 |  |  | $ | 214.8 |
Foreign | 115.8 |  |  | 53.2 |  |  | 48.9 |
Total | $ | 193.4 |  |  | $ | 274.4 |  |  | $ | 263.7 |
Current and Deferred Provision (Benefit) for Income Taxes | The following table presents the current and deferred provision (benefit) for income taxes:
(in millions) | Year Ended December 31, 2022 |  | Year Ended January 1, 2022 |  | Year Ended January 2, 2021
Current: |  |  |  |  |
Federal | $ | 48.7 |  |  | $ | 38.1 |  |  | $ | 13.9 |
State | 6.1 |  |  | 7.1 |  |  | 6.4 |
Foreign | 34.4 |  |  | 14.7 |  |  | 8.1 |
Subtotal | $ | 89.2 |  |  | $ | 59.9 |  |  | $ | 28.4 |
Deferred: |  |  |  |  |
Federal | $ | (20.5) |  |  | $ | (4.9) |  |  | $ | 1.3 |
State | (8.7) |  |  | (6.1) |  |  | (6.2) |
Foreign | (10.1) |  |  | (4.1) |  |  | (0.1) |
Subtotal | (39.3) |  |  | (15.1) |  |  | (5.0) |
Total | $ | 49.9 |  |  | $ | 44.8 |  |  | $ | 23.4 |
Reconciliation of U.S. Federal Statutory Tax Rate to Company's Effective Tax Rate | The reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate is as follows:
| Year Ended December 31, 2022 |  | Year Ended January 1, 2022 |  | Year Ended January 2, 2021
Statutory regular federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State provision, net of federal benefit | (1.0) |  |  | 0.3 |  |  | 0.1 |
Nondeductible executive compensation | 2.9 |  |  | 2.1 |  |  | 1.8 |
Research and development tax credits | (1.7) |  |  | (1.8) |  |  | (2.2) |
Foreign income taxed at different rates | — |  |  | (0.3) |  |  | (1.0) |
U.S. tax on foreign income, net | 4.8 |  |  | 0.9 |  |  | 1.0 |
Excess stock-based compensation | (1.2) |  |  | (5.5) |  |  | (10.4) |
Derecognition of uncertain tax position | (0.8) |  |  | (1.0) |  |  | (2.2) |
Transaction-related costs | 0.9 |  |  | — |  |  | — |
Other | 0.9 |  |  | 0.6 |  |  | 0.8 |
Total | 25.8 | % |  | 16.3 | % |  | 8.9 | %
Components of Deferred Tax Assets | The components of the deferred tax assets are as follows:
(in millions) | December 31, 2022 |  | January 1, 2022
Deferred tax assets: |  |  |
Deferred revenue | $ | 27.8 |  |  | $ | 26.1 |
Net operating losses | 34.7 |  |  | 9.5 |
Accrued liabilities | 32.1 |  |  | 19.2 |
Interest | 22.4 |  |  | — |
Capitalized R&D | 18.5 |  |  | — |
Tax credits | 18.0 |  |  | 13.1 |
Stock-based compensation | 10.9 |  |  | 8.9 |
Operating lease assets | 8.7 |  |  | 5.7 |
Other | 5.8 |  |  | — |
Total | 178.9 |  |  | 82.5 |
Valuation allowance | (7.3) |  |  | (6.5) |
Total deferred tax assets | $ | 171.6 |  |  | $ | 76.0 |
Deferred tax liabilities: |  |  |
Property and equipment | $ | (18.2) |  |  | $ | (13.0) |
Intangible assets | (186.7) |  |  | (2.7) |
Operating lease liabilities | (8.6) |  |  | (5.4) |
Withholding taxes on undistributed foreign earnings | (2.8) |  |  | (2.8) |
State taxes and other | (7.5) |  |  | (4.3) |
Interest rate hedge | (4.1) |  |  | — |
Inventory | (4.0) |  |  | — |
Other | (0.9) |  |  | (0.4) |
Total deferred tax liabilities | (232.8) |  |  | (28.6) |
Net deferred tax assets | $ | (61.2) |  |  | $ | 47.4 |
Reconciliation of Total Amounts of Unrecognized Tax Benefits | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:
(in millions) | Year Ended December 31, 2022 |  | Year Ended January 1, 2022
Unrecognized tax benefits (gross), beginning of period | $ | 21.6 |  |  | $ | 18.0 |
Increase from tax positions in prior period | 0.7 |  |  | 0.6 |
Decrease from tax position in prior period | (0.6) |  |  | (0.9) |
Increase from tax positions in current period | 6.0 |  |  | 7.0 |
Lapse of statute of limitations | (1.6) |  |  | (3.1) |
Unrecognized tax benefits (gross), end of period | $ | 26.1 |  |  | $ | 21.6 |

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