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Income Taxes (Tables)

12 Months Ended

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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