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Income Taxes
 12 Months Ended
Dec. 25, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Components of Income Before Income Taxes
The components of income before income taxes were as follows (in thousands):
 Fiscal Year Ended
 December 25, 2021December 26, 2020December 28, 2019
United States$74,298 $72,950 $41,115 
Foreign24,202 12,225 9,948 
$98,500 $85,175 $51,063 

Provision for Income Taxes
The components of the provision for income taxes are as follows (in thousands):
 Fiscal Year Ended
 December 25, 2021December 26, 2020December 28, 2019
Current provision:   
Federal$2,334 $1,799 $179 
State712 1,194 2,302 
Foreign7,661 4,278 4,202 
10,707 7,271 6,683 
Deferred provision (benefit):   
Federal4,651 1,472 8,128 
State522 (267)(1,898)
Foreign(1,304)(1,824)(1,196)
3,869 (619)5,034 
Total provision for income taxes$14,576 $6,652 $11,717 
Tax Rate Reconciliation
The following is a reconciliation of the difference between income taxes computed by applying the federal statutory rate of 21% and the provision from income taxes (in thousands):
 Fiscal Year Ended
 December 25, 2021December 26, 2020December 28, 2019
U.S. statutory federal tax rate$20,685 $17,887 $10,723 
State taxes and credits, net of federal benefit811 663 441 
Stock-based compensation(6,118)(4,962)(911)
Research and development credits(7,153)(6,576)(6,436)
Foreign taxes at rates different than the U.S. 2,286 415 1,454 
Other permanent differences2,043 400 (148)
Global intangible low-taxed income— — 1,369 
Foreign derived intangible income(2,486)(3,668)— 
Change in valuation allowance2,231 1,862 2,567 
Other2,277 631 2,658 
Total$14,576 $6,652 $11,717 

Deferred Tax Assets and Liabilities
Deferred tax assets and liabilities are recognized for the future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax basis using enacted tax rates in effect for the year in which the differences are expected to be reversed.

Significant deferred tax assets and liabilities consisted of the following (in thousands):
 As of
 December 25, 2021December 26, 2020
Tax credits$41,650 $42,927 
Inventory reserve13,691 13,401 
Other reserves and accruals8,523 8,610 
Non-statutory stock options2,837 2,794 
Lease liability6,717 6,934 
Depreciation and amortization17,912 20,961 
Net operating loss carryforwards18,395 18,421 
Gross deferred tax assets109,725 114,048 
Valuation allowance(40,698)(38,466)
Total deferred tax assets69,027 75,582 
Right of use asset(5,910)(6,074)
Acquired intangibles and fixed assets(4,522)(8,395)
Unrealized investment gains(105)(106)
Tax on undistributed earnings(118)(110)
Total deferred tax liabilities(10,655)(14,685)
Net deferred tax assets$58,372 $60,897 

We are required to evaluate the realizability of our deferred tax assets in both our U.S. and non-U.S. jurisdictions on an ongoing basis to determine whether there is a need for a valuation allowance with respect to such deferred tax assets. As of December 25, 2021, we maintained a valuation allowance of $40.7 million, primarily related to California deferred tax assets and foreign tax credit carryovers, due to uncertainty about the future realization of these assets. We believe that future reversals of taxable temporary differences, and our forecast of continued earnings in both our U.S. and non-U.S. jurisdictions, support our decision to not record a valuation allowance on other deferred tax assets.
Tax Credits and Carryforwards
Tax credits and carryforwards available to us at December 25, 2021 consisted of the following (in thousands):
AmountLatest Expiration Date
Federal research and development tax credit$34,838 2024-2041
Foreign tax credit carryforwards1,029 2022-2027
California research credits46,993 Indefinite
State net operating loss carryforwards250,472 2022-Indefinite
Singapore net operating loss carryforwards6,331 Indefinite

Undistributed Earnings
As of December 25, 2021, unremitted earnings of foreign subsidiaries was estimated at $45.0 million. We intend to permanently invest $10.0 million of undistributed earnings indefinitely outside of the U.S. To the extent we repatriate the remaining $35.0 million of undistributed foreign earnings to the U.S., we established a deferred tax liability of $0.1 million for foreign withholding taxes. Our estimates are provisional and subject to change because of the complexity and variety of assumptions necessary to compute the tax.

Unrecognized Tax Benefits
We recognize the benefits of tax return positions if we determine that the positions are “more-likely-than-not” to be sustained by the taxing authority. Interest and penalties accrued on unrecognized tax benefits are recorded as tax expense in the period incurred.

The following table reflects changes in the unrecognized tax benefits (in thousands):
 Fiscal Year Ended
 December 25, 2021December 26, 2020December 28, 2019
Unrecognized tax benefit, beginning balance$32,497 $28,800 $25,224 
Additions based on tax positions related to the current year3,201 3,072 3,679 
Additions based on tax positions from prior years124 702 — 
Reductions for tax positions of prior years— — (5)
Reductions due to lapse of the applicable statute of limitations(77)(77)(98)
Unrecognized tax benefit, ending balance$35,745 $32,497 $28,800 
Interest and penalties recognized as a component of provision for income taxes$40 $50 $59 
Interest and penalties accrued at period end188 204 212 

Of the unrecognized tax benefits at December 25, 2021, $17.5 million would impact the effective tax rate if recognized.

The amount of income taxes we pay is subject to ongoing audits by federal, state and foreign tax authorities which might result in proposed assessments. Our estimate for the potential outcome for any uncertain tax issue is judgmental in nature. However, we believe we have adequately provided for any reasonably foreseeable outcome related to those matters. Our future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period the assessments are made or resolved or when statutes of limitation on potential assessments expire. As of December 25, 2021, changes to our uncertain tax positions in the next 12 months that are reasonably possible are not expected to have a significant impact on our financial position or results of operations.

At December 25, 2021, our tax years 2018 through 2021, 2017 through 2021 and 2016 through 2021, remain open for examination in the federal, state and foreign jurisdictions, respectively. However, to the extent allowed by law, the taxing authorities may have the right to examine prior periods where net operating losses and credits were generated and carried forward, and make adjustments up to the net operating loss and credit carryforward amounts.