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INCOME TAXES
 12 Months Ended
Dec. 30, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The components of income from operations before income taxes and the related provision for income taxes are presented below:
 Fiscal Year
 202320222021
(in thousands)
Income before income taxes:   
U.S. $185,667 $280,075 $129,598 
Non-U.S. 395,617 342,912 351,112 
Total income before income taxes$581,284 $622,987 $480,710 
Income tax provision (benefit):   
Current:   
Federal$49,090 $75,052 $32,728 
Foreign85,356 68,644 60,197 
State17,817 19,790 9,257 
Total current152,263 163,486 102,182 
Deferred:   
Federal(42,987)(27,230)(27,486)
Foreign779 (1,134)13,891 
State(9,141)(4,743)(6,714)
Total deferred(51,349)(33,107)(20,309)
Total provision for income taxes$100,914 $130,379 $81,873 
Reconciliations of the statutory U.S. federal income tax rate to effective tax rates are as follows:
Fiscal Year
202320222021
U.S. statutory income tax rate21.0 %21.0 %21.0 %
Foreign tax rate differences1.5 0.4 0.1 
State income taxes, net of federal tax benefit1.7 2.3 0.8 
Non-deductible compensation0.8 0.9 1.2 
Research tax credits and enhanced deductions(5.0)(3.8)(5.0)
Stock-based compensation(0.1)(1.4)(4.3)
Enacted tax rate changes(0.1)0.4 3.0 
Tax on unremitted earnings1.7 1.6 1.8 
Impact of tax uncertainties(0.3)(1.3)0.7 
Impact of acquisitions and restructuring(4.2)2.0 (1.6)
Net operating loss deferred tax asset recognition, net of valuation allowance (NOL DTA)0.2 (0.8)— 
Global intangible low-taxed income1.5 0.8 1.3 
Foreign-derived intangible income(1.4)(1.4)(1.2)
Other0.1 0.2 (0.8)
Effective income tax rate17.4 %20.9 %17.0 %
The components of deferred tax assets and liabilities are as follows:
December 30, 2023December 31, 2022
(in thousands)
Deferred tax assets:
Compensation$30,167 $26,341 
Accruals and reserves19,121 16,938 
Net operating loss and credit carryforwards379,959 382,932 
Operating lease liability117,449 100,156 
Capitalized R&D Expenditures
35,673 18,616 
Other12,190 8,516 
Valuation allowance(304,248)(294,753)
Total deferred tax assets290,311 258,746 
Deferred tax liabilities:
Goodwill and other intangibles(231,020)(256,234)
Depreciation related(57,791)(48,965)
Venture capital investments(8,350)(12,007)
Tax on unremitted earnings(25,080)(16,407)
Right-of-use assets(102,620)(91,716)
Other(16,520)(7,737)
Total deferred tax liabilities(441,381)(433,066)
Net deferred taxes$(151,070)$(174,320)
The Company has recognized its deferred tax assets on the belief that it is more likely than not that they will be realized. Exceptions primarily relate to deferred tax assets for net operating losses in Luxembourg, Sweden, state research and development tax credits, certain capital losses, and fixed assets in the U.K.
A reconciliation of the Company’s beginning and ending valuation allowance are as follows:
Fiscal Year
202320222021
Beginning balance$294,753 $315,645 $334,845 
Additions (reductions) charged to income tax provision, net963 1,929 1,023 
Additions due to acquisitions— — 7,747 
Reductions due to divestitures, restructuring— (5,337)(4,706)
Currency translation and other8,532 (17,484)(23,264)
Ending balance$304,248 $294,753 $315,645 
As of December 30, 2023, the Company had tax-effected deferred tax assets for net operating loss carryforwards of $336.0 million, as compared to $336.6 million as of December 31, 2022. Of this amount, $25.9 million are definite-lived and begin to expire in 2027, and the remainder of $310.1 million can be carried forward indefinitely. The Company has deferred tax assets for tax credit carryforwards of $41.5 million. The entire $41.5 million are definite-lived and begin to expire after 2039. Additionally, the Company records a benefit to operating income for research and development and other credits in Quebec, France, the Netherlands, and the U.K. related to its DSA facilities.
A reconciliation of the Company’s beginning and ending unrecognized income tax benefits is as follows:
Fiscal Year
202320222021
(in thousands)
Beginning balance$23,242 $32,592 $24,970 
Additions to tax positions for current year3,093 4,756 9,544 
Additions to tax positions for prior years721 962 2,476 
Reductions to tax positions for prior years(4,058)(1,420)(1,330)
Settlements— (10,514)(1,870)
Expiration of statute of limitations(296)(3,134)(1,198)
Ending balance$22,702 $23,242 $32,592 
The $0.5 million decrease in unrecognized income tax benefits during fiscal year 2023 as compared to the corresponding period in 2022 is primarily attributable to prior year reductions to Canadian Scientific Research and Experimental Development (SR&ED) credits, partially offset by an additional year of SR&ED credit additions. The amount of unrecognized income tax benefits that, if recognized, would favorably impact the effective tax rate was $20.3 million as of December 30, 2023 and $20.3 million as of December 31, 2022. It is reasonably possible as of December 30, 2023 that the liability for unrecognized tax benefits for the uncertain tax position will decrease by approximately $5.2 million over the next twelve-month period. The Company continues to recognize interest and penalties related to unrecognized income tax benefits in income tax expense. The total amount of cumulative accrued interest related to unrecognized income tax benefits as of December 30, 2023 and December 31, 2022 was $1.3 million and $1.4 million, respectively. Interest expense recorded as a component of income taxes was immaterial for all periods. There were no accrued penalties related to unrecognized income tax benefits as of December 30, 2023 or as of December 31, 2022.
The Company conducts business in a number of tax jurisdictions. As a result, it is subject to tax audits on a regular basis including, but not limited to, such major jurisdictions as the U.S., the U.K., China, France, Germany, and Canada. With few exceptions, the Company is no longer subject to U.S. and international income tax examinations for years before 2019.
The Company and certain of its subsidiaries have ongoing tax controversies in the U.S., Canada, France, and India. The Company does not anticipate resolution of these audits will have a material impact on its consolidated financial statements.
Prepaid income tax of $59.7 million and $88.6 million has been presented within Other current assets in the accompanying consolidated balance sheets as of December 30, 2023 and December 31, 2022, respectively. Accrued income taxes of $38.8 million and $39.9 million have been presented within Other current liabilities in the accompanying consolidated balance sheets as of December 30, 2023 and December 31, 2022, respectively.