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Income Taxes (Tables) | 12 Months Ended
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Dec. 28, 2019
Income Taxes |
Schedule of income before income taxes | Income before income taxes includes the following components (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended
​ | ​ | December 28, | ​ | December 29, | ​ | December 30,
​ |  | 2019 |  | 2018 | ​ | 2017
Domestic |  | $ | 2,025 |  | $ | 19,777 |  | $ | 9,700
Foreign | ​ | ​ | 47,624 | ​ |  | 52,384 | ​ |  | 67,203
​ | ​ | $ | 49,649 | ​ | $ | 72,161 | ​ | $ | 76,903
Schedule of provision (benefit) for income taxes | The provision (benefit) for income taxes consists of the following (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended
​ | ​ | December 28, | ​ | December 29, | ​ | December 30,
​ |  | 2019 |  | 2018 |  | 2017
Current: |  |  |  |  |  |
Domestic | ​ | $ | (779) | ​ | $ | (8,843) | ​ | $ | 48,947
Foreign | ​ | ​ | 8,157 | ​ |  | 5,888 | ​ |  | 7,077
Total Current | ​ | ​ | 7,378 | ​ |  | (2,955) | ​ |  | 56,024
Deferred: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Domestic | ​ | ​ | 33,624 | ​ |  | (8,978) | ​ |  | (25,760)
Foreign | ​ | ​ | (10,618) | ​ |  | 503 | ​ |  | (453)
Total Deferred | ​ | ​ | 23,006 | ​ |  | (8,475) | ​ |  | (26,213)
Provision (benefit) for income taxes | ​ | $ | 30,384 | ​ | $ | (11,430) | ​ | $ | 29,811
Schedule of reconciliation of federal statutory tax rate to effective tax rate | ​ 17. Income Taxes (Continued) The reconciliation of the federal statutory tax rate to the Company’s effective tax rate is as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended |
​ | ​ | December 28, | ​ | December 29, | ​ | December 30, |
​ |  | 2019 |  | 2018 |  | 2017 |
Federal statutory rate |  | 21.0 | % | 21.0 | % | 35.0 | %
Foreign tax rate benefit |  | (13.8) | ​ | (12.9) | ​ | (25.4) | ​
Research and development tax credits |  | (15.2) | ​ | (9.8) | ​ | (4.5) | ​
GILTI and Subpart F income | ​ | 5.8 | ​ | 4.3 | ​ | 1.4 | ​
Nondeductible (nontaxable) foreign expenses | ​ | 3.9 | ​ | 3.9 | ​ | 1.1 | ​
State tax expense | ​ | 1.0 | ​ | 1.5 | ​ | 0.9 | ​
Release of prior year unrecognized tax benefits |  | (0.4) | ​ | (2.7) | ​ | (0.6) | ​
Nondeductible officer compensation |  | 4.3 | ​ | 2.4 | ​ | 1.5 | ​
Other tax effects of equity compensation | ​ | 0.8 | ​ | (0.4) | ​ | (2.2) | ​
Change in cost-sharing treatment of stock-based compensation | ​ | 54.8 | ​ | (2.2) | ​ | 5.2 | ​
Excess tax benefit of stock-based compensation | ​ | (2.2) | ​ | (5.9) | ​ | (5.6) | ​
Change in prior period valuation allowance | ​ | 1.3 | ​ | (2.5) | ​ | (1.3) | ​
Transition tax on unremitted foreign earnings | ​ | — | ​ | (8.4) | ​ | 70.8 | ​
Revaluation of deferred tax balances | ​ | — | ​ | 0.3 | ​ | 28.2 | ​
Other deferred tax impacts of tax reform |  | (0.5) | ​ | (3.1) | ​ | (64.8) | ​
Other |  | 0.4 | ​ | (1.3) | ​ | (0.9) | ​
Effective Tax Rate |  | 61.2 | % | (15.8) | % | 38.8 | %
Schedule of significant components of deferred taxes | Deferred tax assets and liabilities are recorded for the estimated tax impact of temporary differences between the tax basis and book basis of assets and liabilities. Significant components of the Company’s deferred taxes as of December 28, 2019 and December 29, 2018 are as follows (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | December 28, |  | December 29,
​ |  | 2019 |  | 2018
Deferred tax assets: |  | ​ | ​ | ​ | ​ | ​
Net operating loss carryforwards |  | $ | 7,912 | ​ | $ | 9,973
Research and development tax credit carryforwards |  |  | 14,755 | ​ |  | 12,500
Stock-based compensation |  |  | 2,619 | ​ |  | 4,360
Depreciation and amortization |  | ​ | 7,424 | ​ | ​ | 7,799
Capitalized research and development |  |  | 1,735 | ​ |  | 2,521
Deferred income on shipments to distributors |  |  | 4,018 | ​ |  | 5,824
Expected future cost-sharing adjustment |  | ​ | — | ​ | ​ | 25,257
Leases | ​ | ​ | 3,446 | ​ | ​ | —
Accrued liabilities and other |  |  | 7,374 | ​ |  | 7,737
​ |  |  | 49,283 | ​ |  | 75,971
Less: Valuation allowance |  |  | (4,486) | ​ |  | (4,975)
​ |  |  | 44,797 | ​ |  | 70,996
Deferred tax liabilities: |  | ​ | ​ | ​ | ​ | ​
Acquired intangible assets |  |  | 16,621 | ​ |  | 20,656
Depreciation and amortization |  |  | 4,969 | ​ |  | 4,604
Leases | ​ | ​ | 3,166 | ​ | ​ | —
Long-term debt |  | ​ | 5,741 | ​ | ​ | 8,080
Prepaid expenses and other |  |  | 2,424 | ​ |  | 2,142
​ |  |  | 32,921 | ​ |  | 35,482
Net deferred tax assets |  | $ | 11,876 | ​ | $ | 35,514
Schedule of Valuation allowance | The following table summarizes the activity related to the valuation allowance for deferred tax assets (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Balance at | ​ | Additions | ​ | Additions | ​ |  | ​ | ​ |  | ​
​ | ​ | Beginning of | ​ | Charged to | ​ | Charged to | ​ | ​ | ​ | ​ | Balance at
​ |  | Period |  | Expenses |  | Other Accounts |  | Deductions |  | End of Period
Year ended December 28, 2019 | ​ | $ | 4,975 |  | $ | 1,044 |  | $ | — |  | $ | (1,533) |  | $ | 4,486
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Year ended December 29, 2018 | ​ | $ | 6,518 | ​ | $ | 435 | ​ | $ | — | ​ | $ | (1,978) | ​ | $ | 4,975
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Year ended December 30, 2017 | ​ | $ | 12,361 | ​ | $ | 2,110 | ​ | $ | 1,732 | ​ | $ | (9,685) | ​ | $ | 6,518
Schedule of activity related to gross unrecognized tax benefits | The following table summarizes the activity related to gross unrecognized tax benefits (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended
​ | ​ | December 28, | ​ | December 29, | ​ | December 30,
​ |  | 2019 |  | 2018 |  | 2017
Beginning balance | ​ | $ | 2,036 | ​ | $ | 3,187 | ​ | $ | 3,054
Additions based on tax positions related to current year | ​ |  | 436 | ​ |  | 630 | ​ |  | 456
Additions based on tax positions related to prior years | ​ |  | — | ​ |  | 115 | ​ |  | 114
Reductions based on tax positions related to prior years | ​ | ​ | (196) | ​ | ​ | — | ​ | ​ | —
Reductions for tax positions as a result of a lapse of the applicable statute of limitations | ​ | ​ | — | ​ | ​ | (1,896) | ​ | ​ | (437)
Ending balance | ​ | $ | 2,276 | ​ | $ | 2,036 | ​ | $ | 3,187

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