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INCOME TAXES
 12 Months Ended
Dec. 28, 2024
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
 202420232022
(in thousands)
Income before income taxes:   
U.S. $(290,308)$185,667 $280,075 
Non-U.S. 383,422 395,617 342,912 
Total income before income taxes$93,114 $581,284 $622,987 
Income tax provision (benefit):   
Current:   
Federal$36,349 $49,090 $75,052 
Foreign86,493 85,356 68,644 
State12,175 17,817 19,790 
Total current135,017 152,263 163,486 
Deferred:   
Federal(50,555)(42,987)(27,230)
Foreign(6,922)779 (1,134)
State(9,717)(9,141)(4,743)
Total deferred(67,194)(51,349)(33,107)
Total provision for income taxes$67,823 $100,914 $130,379 
Reconciliations of the statutory U.S. federal income tax rate to effective tax rates are as follows:
Fiscal Year
202420232022
U.S. statutory income tax rate21.0 %21.0 %21.0 %
Foreign tax rate differences11.1 1.5 0.4 
State income taxes, net of federal tax benefit(1.2)1.7 2.3 
Non-deductible compensation5.2 0.8 0.9 
Research tax credits and enhanced deductions(29.3)(5.0)(3.8)
Stock-based compensation2.6 (0.1)(1.4)
Enacted tax rate changes3.0 (0.1)0.4 
Tax on unremitted earnings10.7 1.7 1.6 
Impact of tax uncertainties0.6 (0.3)(1.3)
Impact of acquisitions and restructuring1.3 (4.2)2.0 
Net operating loss deferred tax asset recognition, net of valuation allowance (NOL DTA)(0.9)0.2 (0.8)
Global intangible low-taxed income6.3 1.5 0.8 
Foreign-derived intangible income(7.6)(1.4)(1.4)
Goodwill Impairment48.5 — — 
Foreign Local Tax1.6 0.7 0.6 
Other(0.1)(0.6)(0.4)
Effective income tax rate72.8 %17.4 %20.9 %
The components of deferred tax assets and liabilities are as follows:
December 28, 2024December 30, 2023
(in thousands)
Deferred tax assets:
Compensation$34,932 $30,167 
Accruals and reserves17,523 19,121 
Net operating loss and credit carryforwards348,228 379,959 
Operating lease liability132,388 117,449 
Capitalized R&D Expenditures
46,247 35,673 
Other25,133 12,190 
Valuation allowance(286,771)(304,248)
Total deferred tax assets317,680 290,311 
Deferred tax liabilities:
Goodwill and other intangibles(198,103)(231,020)
Depreciation related(41,481)(57,791)
Venture capital investments(1,654)(8,350)
Tax on unremitted earnings(11,622)(25,080)
Right-of-use assets(113,631)(102,620)
Other(15,970)(16,520)
Total deferred tax liabilities(382,461)(441,381)
Net deferred taxes$(64,781)$(151,070)
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. and Ireland.
A reconciliation of the Company’s beginning and ending valuation allowance are as follows:
Fiscal Year
202420232022
Beginning balance$304,248 $294,753 $315,645 
Additions (reductions) charged to income tax provision, net965 963 1,929 
Reductions due to divestitures, restructuring(1,877)— (5,337)
Currency translation and other(16,565)8,532 (17,484)
Ending balance$286,771 $304,248 $294,753 
As of December 28, 2024, the Company had tax-effected deferred tax assets for net operating loss carryforwards of $311.7 million, as compared to $336.0 million as of December 30, 2023. Of this amount, $27.3 million are definite-lived and begin to expire in 2027, and the remainder of $284.4 million can be carried forward indefinitely. The Company has deferred tax assets for tax credit carryforwards of $36.1 million. The entire $36.1 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
202420232022
(in thousands)
Beginning balance$22,702 $23,242 $32,592 
Additions to tax positions for current year2,649 3,093 4,756 
Additions to tax positions for prior years852 721 962 
Reductions to tax positions for prior years(801)(4,058)(1,420)
Settlements— — (10,514)
Expiration of statute of limitations(362)(296)(3,134)
Ending balance$25,040 $22,702 $23,242 
The $2.3 million increase in unrecognized income tax benefits during fiscal year 2024 as compared to the corresponding period in 2023 is primarily attributable to an additional year of Canadian Scientific Research and Experimental Development (SR&ED) credit additions, offset by favorable foreign exchange movement, as well as statute of limitations lapse on R&D credits. The amount of unrecognized income tax benefits that, if recognized, would favorably impact the effective tax rate was $22.0 million as of December 28, 2024 and $20.3 million as of December 30, 2023. It is reasonably possible as of December 28, 2024 that the liability for unrecognized tax benefits for the uncertain tax position will decrease by approximately $7.5 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 28, 2024 and December 30, 2023 was $2.0 million and $1.3 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 28, 2024 or as of December 30, 2023.
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 2020.
The Company and certain of its subsidiaries have ongoing tax controversies in the U.S., Canada, France, China, Hungary, Israel, Ireland, Singapore, 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 $83.0 million and $59.7 million has been presented within Other current assets in the accompanying consolidated balance sheets as of December 28, 2024 and December 30, 2023, respectively. Accrued income taxes of $31.9 million and $38.8 million have been presented within Other current liabilities in the accompanying consolidated balance sheets as of December 28, 2024 and December 30, 2023, respectively.