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Income Taxes | 12 Months Ended
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Jan. 01, 2022
Income Taxes |
Income Taxes | 18. Income Taxes Loss from continuing operations before income taxes includes the following components (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended
​ | ​ | January 1, | ​ | January 2, | ​ | December 28,
​ |  | 2022 |  | 2021 | ​ | 2019
Domestic |  | $ | (29,112) |  | $ | (58,104) |  | $ | (38,448)
Foreign | ​ | ​ | (29,063) | ​ |  | (74,099) | ​ |  | (57,563)
​ | ​ | $ | (58,175) | ​ | $ | (132,203) | ​ | $ | (96,011)
​ The provision (benefit) for income taxes consists of the following (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended
​ | ​ | January 1, | ​ | January 2, | ​ | December 28,
​ |  | 2022 |  | 2021 |  | 2019
Current: |  |  |  |  |  |
Domestic | ​ | $ | (12,630) | ​ | $ | (9,740) | ​ | $ | (20,962)
Foreign | ​ | ​ | 9,447 | ​ |  | 1,656 | ​ |  | 4,940
Total Current | ​ | ​ | (3,183) | ​ |  | (8,084) | ​ |  | (16,022)
Deferred: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Domestic | ​ | ​ | 17,873 | ​ |  | (4,031) | ​ |  | 33,624
Foreign | ​ | ​ | (1,263) | ​ |  | (2,487) | ​ |  | (10,618)
Total Deferred | ​ | ​ | 16,610 | ​ |  | (6,518) | ​ |  | 23,006
Provision (benefit) for income taxes | ​ | $ | 13,427 | ​ | $ | (14,602) | ​ | $ | 6,984
​ The reconciliation of the federal statutory tax rate to the Company’s effective tax rate is as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended |
​ | ​ | January 1, | ​ | January 2, | ​ | December 28, |
​ |  | 2022 |  | 2021 |  | 2019 |
Federal statutory rate |  | 21.0 | % | 21.0 | % | 21.0 | %
Foreign tax rate benefit |  | (12.5) | ​ | (11.1) | ​ | (9.7) | ​
Research and development tax credits |  | 0.1 | ​ | 4.2 | ​ | 5.3 | ​
GILTI and Subpart F Income | ​ | (1.8) | ​ | 0.2 | ​ | 0.2 | ​
(Nondeductible) nontaxable foreign items | ​ | (4.9) | ​ | 0.1 | ​ | (2.5) | ​
Nondeductible officer compensation |  | (7.8) | ​ | (1.7) | ​ | (2.0) | ​
Change in cost-sharing treatment of stock-based compensation | ​ | — | ​ | — | ​ | (19.2) | ​
Excess tax benefit of stock-based compensation | ​ | 2.8 | ​ | 0.4 | ​ | 0.8 | ​
Other tax effects of equity compensation | ​ | 0.4 | ​ | 0.1 | ​ | 0.7 | ​
Change in prior period valuation allowance | ​ | (8.0) | ​ | (0.3) | ​ | (0.7) | ​
(Nondeductible) nontaxable domestic items | ​ | (2.1) | ​ | (1.6) | ​ | (1.6) | ​
Net operating loss not benefited | ​ | (9.5) | ​ | — | ​ | — | ​
Other |  | (0.8) | ​ | (0.3) | ​ | 0.4 | ​
Effective tax rate |  | (23.1) | % | 11.0 | % | (7.3) | %
​ ​ 18. Income Taxes (Continued) The effective tax rate for fiscal 2021 decreased from fiscal 2020 primarily due to the adoption of FASB ASU 2019-12, Simplifying the Accounting for Income Taxes, in 2021 and an increase in the beginning of year valuation allowance on deferred tax assets for state attribute carryforwards. The effective tax rate for fiscal 2020 increased from fiscal 2019 primarily due to a fiscal 2019 change in the Company’s position related to the treatment of stock-based compensation within its intercompany cost-sharing arrangement offset by the increased impact of fiscal 2020 permanent tax differences. The higher provision for income taxes for fiscal 2021 was primarily due to the adoption of ASU 2019-12 as of the beginning of fiscal 2021. Under ASU 2019-12, which is being applied prospectively from the date of adoption, the income tax benefit of a loss from continuing operations should be reallocated to discontinued operations if the Company would be unable to benefit from the loss without considering the income from discontinued operations. As such, the income tax benefit from net operating losses associated with continuing operations for fiscal 2021 was reallocated to discontinued operations. Prior to ASU 2019-12, if the Company reported a loss from continuing operations and income from discontinued operations, income from discontinued operations would be considered in determining the income tax benefit allocated to continuing operations. Additionally, for fiscal 2021 there was an increase in the beginning of year valuation allowance on deferred tax assets for state attribute carryforwards as a result of changes in state tax estimates, primarily due to the divestiture of the infrastructure and automotive business. Tax on the gain from the divestiture of the infrastructure and automotive business of $346.9 million was recorded in discontinued operations for the current period, as well as additional tax benefits associated with discontinued operations of $7.2 million for fiscal 2021. As of January 1, 2022, income taxes payable of $74.9 million recorded in connection with the gain from the divestiture was included in other current liabilities in the Consolidated Balance Sheet. 18. Income Taxes (Continued) The Tax Cuts and Jobs Act was enacted in the U.S. on December 22, 2017 and required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously deferred from U.S income tax under U.S. tax law. The Company elected to pay the transition tax over the eight-year period provided in the Act. As of January 1, 2022, the unpaid balance of its transition tax obligation was $21.4 million, which is payable between April 2022 and April 2025. This was recorded as components of other current liabilities and other non-current liabilities in the Consolidated Balance Sheet in the amounts of $2.4 million and $19.0 million, respectively. The Company has made an accounting policy election to treat global intangible low-taxed income (GILTI) as a period expense when incurred. Deferred Income 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 January 1, 2022 and January 2, 2021 were as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | January 1, |  | January 2,
​ |  | 2022 |  | 2021
Deferred tax assets: |  | ​ | ​ | ​ | ​ | ​
Net operating loss carryforwards |  | $ | 5,803 | ​ | $ | 6,839
Tax credit carryforwards | ​ | ​ | 12,247 | ​ | ​ | 22,421
Intangible assets | ​ | ​ | 8,687 | ​ | ​ | 9,802
Deferred income on shipments to distributors |  |  | 4,588 | ​ |  | 3,099
Leases | ​ | ​ | 6,033 | ​ | ​ | 6,335
Accrued liabilities |  |  | 6,078 | ​ |  | 6,320
Other | ​ | ​ | 4,180 | ​ | ​ | 5,513
​ |  |  | 47,616 | ​ |  | 60,329
Less: Valuation allowance |  |  | (9,529) | ​ |  | (5,311)
​ |  |  | 38,087 | ​ |  | 55,018
Deferred tax liabilities: |  | ​ | ​ | ​ | ​ | ​
Intangible assets | ​ | ​ | 14,479 | ​ | ​ | 16,758
Fixed assets | ​ | ​ | 8,692 | ​ | ​ | 8,473
Leases | ​ | ​ | 5,664 | ​ | ​ | 5,999
Debt | ​ | ​ | 16,399 | ​ | ​ | 21,674
Unrealized gain on equity method investment | ​ | ​ | 3,342 | ​ | ​ | 587
Prepaid expenses and other |  |  | 6,049 | ​ |  | 4,332
​ |  |  | 54,625 | ​ |  | 57,823
​ | ​ | ​ | ​ | ​ | ​ | ​
Net deferred tax assets (liabilities) |  | $ | (16,538) | ​ | $ | (2,805)
​ As of January 1, 2022, the Company had federal net operating loss and research and development tax credit carryforwards of approximately $18.4 million and $1.8 million, respectively. These carryforwards expire in fiscal years 2022 through 2031. Recognition of these loss and credit carryforwards is subject to an annual limit, which may cause them to expire before they are used. The Company also had state loss, state tentative minimum tax credit, and state research and development tax credit carryforwards of approximately $30.6 million, $0.5 million, and $11.9 million, respectively. Certain of these carryforwards expire in fiscal years 2025 through 2036, and others do not expire. Recognition of some of these loss and credit carryforwards is subject to an annual limit, which may cause them to expire before they are used. ​ 18. Income Taxes (Continued) A valuation allowance is established against a deferred tax asset when it is more likely than not that the deferred tax asset will not be realized. The Company maintains a valuation allowance with respect to certain deferred tax assets relating to state research and development tax credits, state net operating loss carryforwards and state alternative minimum tax credits. The following table summarizes the activity related to the valuation allowance for deferred tax assets (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Balance at | ​ | Additions | ​ |  | ​ | ​ |  | ​
​ | ​ | Beginning of | ​ | Charged to | ​ | ​ | ​ | ​ | Balance at
​ |  | Period |  | Expenses |  | Deductions |  | End of Period
Year ended January 1, 2022 | ​ | $ | 5,311 |  | $ | 5,370 |  | $ | (1,152) |  | $ | 9,529
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Year ended January 2, 2021 | ​ | $ | 4,486 |  | $ | 847 |  | $ | (22) |  | $ | 5,311
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Year ended December 28, 2019 | ​ | $ | 4,975 |  | $ | 1,044 |  | $ | (1,533) |  | $ | 4,486
​ At the end of fiscal 2021, undistributed earnings of certain of the Company’s foreign subsidiaries of approximately $107.8 million are intended to be permanently reinvested outside the U.S. Accordingly, no provision for foreign withholding tax and state income taxes associated with a distribution of these earnings has been made. Determination of the amount of the unrecognized deferred tax liability on these unremitted earnings is not practicable. Uncertain Tax Positions The following table summarizes the activity related to gross unrecognized tax benefits (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended
​ | ​ | January 1, | ​ | January 2, | ​ | December 28,
​ |  | 2022 |  | 2021 |  | 2019
Beginning balance | ​ | $ | 2,853 | ​ | $ | 2,276 | ​ | $ | 2,036
Additions based on tax positions related to current year | ​ |  | 830 | ​ |  | 577 | ​ |  | 436
Reductions based on tax positions related to prior years | ​ | ​ | (6) | ​ | ​ | — | ​ | ​ | (196)
Ending balance | ​ | $ | 3,677 | ​ | $ | 2,853 | ​ | $ | 2,276
​ As of January 1, 2022, January 2, 2021 and December 28, 2019, the Company had gross unrecognized tax benefits, inclusive of interest, of $3.9 million, $3.0 million and $2.4 million, respectively, of which $3.9 million, $2.1 million and $1.9 million, respectively, would affect the effective tax rate if recognized. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision (benefit) for income taxes. These amounts were not material for any of the periods presented. Following the completion of the Norwegian Tax Administration (“NTA”) examination of the Company’s Norwegian subsidiary for income tax matters relating to fiscal years 2013 – 2016, the Company received an assessment from the NTA in December 2017 concerning an adjustment to its 2013 taxable income related to the pricing of an intercompany transaction. The Company is currently appealing the assessment. The adjustment to the pricing of the intercompany transaction results in approximately 141.3 million Norwegian kroner, or $16.0 million, additional Norwegian income tax. The Company disagrees with the NTA’s assessment and believes the Company’s position on this matter is more likely than not to be sustained. The Company plans to exhaust all available administrative remedies, and if unable to resolve this matter through administrative remedies with the NTA, the Company plans to pursue judicial remedies. The Company believes that it has accrued adequate reserves related to all matters contained in tax periods open to examination. Should the Company experience an unfavorable outcome in the NTA matter, however, such an outcome could have a material impact on its financial statements. Tax years 2015 through 2021 remain open to examination by the major taxing jurisdictions in which the Company operates. The Company is not currently under audit in any major taxing jurisdiction. 18. Income Taxes (Continued) The Company believes it is reasonably possible that its gross unrecognized tax benefits will decrease by approximately $0.5 million, inclusive of interest, in the next 12 months due to the lapse of the statute of limitations.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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