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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Components of Income Tax Expense | The components of income tax expense are as follows:
|  | Year Ended |
|  | December 31, 2022 |  |  | January 1, 2022 |  |  | December 26, 2020 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 47,963 |  |  | $ | 21,791 |  |  | $ | 1,466 |
State |  |  | 987 |  |  |  | 1,007 |  |  |  | 371 |
Foreign |  |  | 2,901 |  |  |  | 3,153 |  |  |  | 5,637 |
|  |  | 51,851 |  |  |  | 25,951 |  |  |  | 7,474 |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  |  | (31,622 | ) |  |  | (9,475 | ) |  |  | (10,355 | )
State |  |  | (1,506 | ) |  |  | (540 | ) |  |  | (1,036 | )
Foreign |  |  | (473 | ) |  |  | (2,603 | ) |  |  | (240 | )
|  |  | (33,601 | ) |  |  | (12,618 | ) |  |  | (11,631 | )
Total income tax expense (benefit) |  | $ | 18,250 |  |  | $ | 13,333 |  |  | $ | (4,157 | )
Income before Tax | The income before tax is comprised of the following:
|  | Year Ended |
|  | December 31, 2022 |  |  | January 1, 2022 |  |  | December 26, 2020 |
Domestic operations |  | $ | 239,527 |  |  | $ | 136,143 |  |  | $ | (120 | )
Foreign operations |  | $ | 2,057 |  |  | $ | 19,539 |  |  | $ | 26,988 |
Income Before Provision for Income Taxes | The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. federal income tax rate of 21% for the years ended December 31, 2022, January 1, 2022 and December 26, 2020, to income before provision for income taxes as follows:
|  | Year Ended |
|  | December 31, 2022 |  |  | January 1, 2022 |  |  | December 26, 2020 |
Federal income tax provision at statutory rate |  | $ | 50,732 |  |  | $ | 32,693 |  |  | $ | 5,642 |
State taxes, net of federal effect |  |  | 467 |  |  |  | 1,066 |  |  |  | 126 |
Foreign taxes, net of federal effect |  |  | (481 | ) |  |  | (3,817 | ) |  |  | 596 |
Foreign Derived Intangible Income (“FDII”) Deduction |  |  | (25,445 | ) |  |  | (11,061 | ) |  |  | (4,262 | )
US tax on foreign source income |  |  | 1,423 |  |  |  | 1,721 |  |  |  | 2,013 |
Non-deductible officer's compensation |  |  | 1,910 |  |  |  | 689 |  |  |  | 213 |
Research and development tax credit |  |  | (7,146 | ) |  |  | (3,607 | ) |  |  | (4,858 | )
Tax impact of audit and statue closures |  |  | (1,526 | ) |  |  | (1,987 | ) |  |  | (2,905 | )
Impact of the CARES Act |  |  | — |  |  |  | (732 | ) |  |  | (1,141 | )
Other |  |  | (1,684 | ) |  |  | (1,632 | ) |  |  | (419 | )
Provision (benefit) for income taxes |  | $ | 18,250 |  |  | $ | 13,333 |  |  | $ | (4,157 | )
Effective tax rate |  |  | 8 | % |  |  | 9 | % |  |  | (16 | )%
Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities are comprised of the following:
|  | December 31, 2022 |  |  | January 1, 2022 |
Deferred tax assets: |  |  |  |  |  |
Reserves and accruals |  | $ | 17,231 |  |  | $ | 15,084 |
Deferred revenue |  |  | 3,512 |  |  |  | 4,729 |
Share-based compensation |  |  | 3,942 |  |  |  | 3,023 |
Tax credit carryforward |  |  | 12,197 |  |  |  | 10,339 |
Net operating losses |  |  | 1,643 |  |  |  | 3,254 |
Depreciation and amortization |  |  | 125 |  |  |  | 368 |
Operating lease liabilities |  |  | 4,162 |  |  |  | 3,575 |
Other |  |  | 4,044 |  |  |  | 2,364 |
Gross deferred tax assets |  |  | 46,856 |  |  |  | 42,736 |
Less: valuation allowance |  |  | (11,772 | ) |  |  | (10,948 | )
Total deferred tax assets after valuation allowance |  |  | 35,084 |  |  |  | 31,788 |
Deferred tax liabilities: |  |  |  |  |  |
Depreciation and amortization |  |  | (32,693 | ) |  |  | (63,554 | )
Operating lease right of use assets |  |  | (4,890 | ) |  |  | (3,469 | )
Other |  |  | (89 | ) |  |  | (224 | )
Gross deferred tax liabilities |  |  | (37,672 | ) |  |  | (67,247 | )
Net deferred tax liabilities |  | $ | (2,588 | ) |  | $ | (35,459 | )
Unrecognized Tax Benefits | The total amount of unrecognized tax benefits are as follows:
|  | Year Ended |
|  | December 31, 2022 |  |  | January 1, 2022 |  |  | December 26, 2020 |
Balance, beginning of the period |  | $ | 12,373 |  |  | $ | 13,486 |  |  | $ | 15,143 |
Gross increases—tax positions in prior period |  |  | 456 |  |  |  | 156 |  |  |  | 347 |
Gross decreases—tax positions in prior period |  |  | — |  |  |  | (204 | ) |  |  | — |
Gross increases—current-period tax positions |  |  | 1,729 |  |  |  | 1,193 |  |  |  | 1,048 |
Closure of audit/statute limitation |  |  | (1,548 | ) |  |  | (2,258 | ) |  |  | (3,052 | )
Balance, end of the period |  | $ | 13,010 |  |  | $ | 12,373 |  |  | $ | 13,486 |

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