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Income Taxes | 12 Months Ended
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Dec. 28, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | 23. Income Taxes The components of income before (benefit) provision for income taxes are as follows:
(in millions) | Year Ended December 28, 2024 |  | Year Ended December 30, 2023 |  | Year Ended December 31, 2022
United States | $ | (67.1) |  |  | $ | 9.1 |  |  | $ | 77.6 |
Foreign | (238.2) |  |  | 79.0 |  |  | 115.8 |
Total | $ | (305.3) |  |  | $ | 88.1 |  |  | $ | 193.4 |
The following table presents the current and deferred (benefit) provision for income taxes:
(in millions) | Year Ended December 28, 2024 |  | Year Ended December 30, 2023 |  | Year Ended December 31, 2022
Current: |  |  |  |  |
Federal | $ | 15.0 |  |  | $ | 15.0 |  |  | $ | 48.7 |
State | 3.4 |  |  | 3.5 |  |  | 6.1 |
Foreign | 19.4 |  |  | 23.7 |  |  | 34.4 |
Subtotal | $ | 37.8 |  |  | $ | 42.2 |  |  | $ | 89.2 |
Deferred: |  |  |  |  |
Federal | $ | (19.0) |  |  | $ | (12.5) |  |  | $ | (20.5) |
State | (8.3) |  |  | (9.0) |  |  | (8.7) |
Foreign | (10.9) |  |  | (14.1) |  |  | (10.1) |
Subtotal | (38.2) |  |  | (35.6) |  |  | (39.3) |
Total | $ | (0.4) |  |  | $ | 6.6 |  |  | $ | 49.9 |
Included in the fiscal year 2024, 2023 and 2022 tax (benefit) provisions are increases of $5.4 million, $7.4 million and $4.5 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 28, 2024 |  | Year Ended December 30, 2023 |  | Year Ended December 31, 2022
Statutory regular federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Foreign income taxed at different rates | 6.7 |  |  | 1.1 |  |  | — |
Excess stock-based compensation | 1.8 |  |  | (3.2) |  |  | (1.2) |
State provision, net of federal benefit | 1.3 |  |  | (4.9) |  |  | (1.0) |
Research and development tax credits | 1.2 |  |  | (5.1) |  |  | (1.7) |
Derecognition of uncertain tax position | 1.1 |  |  | (2.3) |  |  | (0.8) |
Transaction-related costs | — |  |  | — |  |  | 0.9 |
Tax credit | — |  |  | (9.2) |  |  | — |
Nondeductible executive compensation | (1.2) |  |  | (1.6) |  |  | 2.9 |
U.S. tax on foreign income, net | (3.5) |  |  | 10.0 |  |  | 4.8 |
Goodwill impairment | (27.4) |  |  | — |  |  | — |
Other | (0.9) |  |  | 1.6 |  |  | 0.9 |
Total | 0.1 | % |  | 7.4 | % |  | 25.8 | %
As of December 28, 2024, the Company has accumulated undistributed earnings generated by its foreign subsidiaries of approximately $997.5 million. Because such earnings have previously been subject to U.S. tax are eligible for a dividends received deduction when repatriated, any additional taxes due with respect to such earnings or the excess of the amount for financial reporting over the tax basis of its foreign investments would generally be limited to foreign withholding and state taxes. The Company considers $86.5 million of these accumulated undistributed earnings as no longer permanently reinvested and has accrued foreign withholding and state taxes, net of estimated foreign tax credits, of $1.9 million. The Company intends, however, to indefinitely reinvest the remaining $911 million of earnings. If the Company decides to distribute such permanently reinvested earnings, the Company would accrue estimated additional income tax expense of up to approximately $26.8 million. The components of the deferred tax assets are as follows:
(in millions) | December 28, 2024 |  | December 30, 2023
Deferred tax assets: |  |  |
Net operating losses | $ | 54.8 |  |  | $ | 53.7 |
Capitalized R&D | 44.6 |  |  | 33.0 |
Accrued liabilities | 39.3 |  |  | 24.6 |
Tax credits | 36.7 |  |  | 33.2 |
Deferred revenue | 27.6 |  |  | 28.0 |
Operating lease liabilities | 13.8 |  |  | 9.7 |
Interest | 11.8 |  |  | 15.6 |
Stock-based compensation | 9.4 |  |  | 12.3 |
Inventory Reserve | 1.1 |  |  | — |
Other | 7.2 |  |  | 7.3 |
Total | 246.3 |  |  | 217.4 |
Valuation allowance | (26.5) |  |  | (18.9) |
Total deferred tax assets | $ | 219.8 |  |  | $ | 198.5 |
Deferred tax liabilities: |  |  |
Inventory | $ | (0.8) |  |  | $ | (0.8) |
Interest rate hedge | (1.5) |  |  | (1.9) |
Withholding taxes on undistributed foreign earnings | (3.1) |  |  | (3.1) |
Property and equipment | (11.4) |  |  | (14.4) |
State taxes and other | (12.4) |  |  | (10.4) |
Operating lease liabilities | (17.2) |  |  | (11.8) |
Intangible assets | (129.6) |  |  | (160.5) |
Other | (0.3) |  |  | (0.2) |
Total deferred tax liabilities | (176.3) |  |  | (203.1) |
Net deferred tax assets | $ | 43.5 |  |  | $ | (4.6) |
As of December 28, 2024, the Company has $43.7 million and $157.1 million of net operating losses from federal and various state jurisdictions, which will begin to expire in 2037 and 2025, respectively. Additionally, the Company has $125.9 million of net operating losses from foreign jurisdictions that will begin to expire in 2025. The Company also has federal research and development tax credits of $2.8 million that will begin to expire in 2031, state research and development tax credits of $35.8 million that will carry forward indefinitely, $2.7 million of foreign tax credits on research and development expenditures that will begin to expire in 2042 and $6.8 million of Swiss tax credits that will begin to expire in 2026. In assessing the realizability of deferred tax assets, the Company considers whether it is more-likely-than-not that all or some portion of the deferred tax assets will not 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. During the year ended December 31, 2022, the Company established a valuation allowance to reduce the deferred tax assets relating to certain acquired operating losses in certain foreign jurisdictions that the Company believes are not likely to be realized. During the year ended December 28, 2024, there was an increase in the valuation allowance of $7.6 million, primarily due to the losses of certain foreign operations and certain state jurisdictions that the Company believes are not likely to be realized. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:
(in millions) | Year Ended December 28, 2024 |  | Year Ended December 30, 2023
Unrecognized tax benefits (gross), beginning of period | $ | 33.0 |  |  | $ | 26.1 |
Increase from tax positions in current period | 7.2 |  |  | 7.9 |
Increase from tax positions in prior period | 1.8 |  |  | 1.3 |
Lapse of statute of limitations | (3.5) |  |  | (2.3) |
Unrecognized tax benefits (gross), end of period | $ | 38.5 |  |  | $ | 33.0 |
The amount of unrecognized benefits which, if ultimately recognized, could favorably affect the tax rate in a future period was $35.6 million and $30.6 million as of December 28, 2024 and December 30, 2023, respectively. It is reasonably possible that the amount of unrecognized tax benefits in various jurisdictions may change in the next twelve 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 twelve months cannot currently be made. For the year ended December 28, 2024 the Company recorded an expense of $0.6 million for interest and penalties related to unrecognized tax benefits as part of income tax expense. For the year ended December 30, 2023, the Company recorded a benefit of $1.0 million for interest and penalties related to unrecognized tax benefits as part of income tax expense. For the year ended December 31, 2022, the Company recorded a benefit of $0.3 million 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 28, 2024 and December 30, 2023 were $2.7 million and $2.1 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 U.S. federal, various state, local and foreign jurisdictions. The Company has concluded all U.S. federal income tax matters through fiscal year 2020. All material state, local and foreign income tax matters have been concluded through fiscal year 2017. The Company does not believe that the results of any tax authority examination would have a significant impact on its consolidated financial statements.

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