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Income Taxes
 12 Months Ended
Dec. 31, 2022
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 31, 2022December 25, 2021December 26, 2020
United States$30,047 $74,298 $72,950 
Foreign27,823 24,202 12,225 
$57,870 $98,500 $85,175 

Provision for Income Taxes
The components of the provision for income taxes are as follows (in thousands):
 Fiscal Year Ended
 December 31, 2022December 25, 2021December 26, 2020
Current provision:   
Federal$4,330 $2,334 $1,799 
State520 712 1,194 
Foreign8,625 7,661 4,278 
13,475 10,707 7,271 
Deferred provision (benefit):   
Federal(5,886)4,651 1,472 
State118 522 (267)
Foreign(575)(1,304)(1,824)
(6,343)3,869 (619)
Total provision for income taxes$7,132 $14,576 $6,652 
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 31, 2022December 25, 2021December 26, 2020
U.S. statutory federal tax rate$12,153 $20,685 $17,887 
State taxes and credits, net of federal benefit16 811 663 
Stock-based compensation(2,772)(6,118)(4,962)
Research and development credits(8,264)(7,153)(6,576)
Foreign taxes at rates different than the U.S. 2,404 2,286 415 
Other permanent differences1,964 2,043 400 
Global intangible low-taxed income7 — — 
Foreign derived intangible income(5,160)(2,486)(3,668)
Change in valuation allowance2,597 2,231 1,862 
Tax contingencies, net of reversals3,124 2,812 2,712 
Other1,063 (535)(2,081)
Total$7,132 $14,576 $6,652 

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 31, 2022December 25, 2021
Tax credits$33,025 $41,650 
Inventory reserve14,269 13,691 
Other reserves and accruals6,527 8,523 
Non-statutory stock options3,180 2,837 
Lease liability6,024 6,717 
Research and development expenditures capitalization36,821 19,553 
Net operating loss carryforwards18,173 18,395 
Gross deferred tax assets118,019 111,366 
Valuation allowance(43,295)(40,698)
Total deferred tax assets74,724 70,668 
Right-of-use assets(5,219)(5,910)
Acquired intangibles and fixed assets(4,342)(6,163)
Unrealized investment gains(103)(105)
Tax on undistributed earnings(146)(118)
Total deferred tax liabilities(9,810)(12,296)
Net deferred tax assets$64,914 $58,372 

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 31, 2022, we maintained a valuation allowance of $43.3 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 31, 2022 consisted of the following (in thousands):
AmountLatest Expiration Date
Federal research and development tax credit$26,424 2034-2042
Foreign tax credit carryforwards995 2023-2027
California research credits52,131 Indefinite
State net operating loss carryforwards249,087 2025-Indefinite
Singapore net operating loss carryforwards5,724 Indefinite

Undistributed Earnings
As of December 31, 2022, unremitted earnings of foreign subsidiaries was estimated at $48.7 million. We intend to permanently invest $12.0 million of undistributed earnings indefinitely outside of the U.S. To the extent we repatriate the remaining $36.7 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 31, 2022December 25, 2021December 26, 2020
Unrecognized tax benefit, beginning balance$35,745 $32,497 $28,800 
Additions based on tax positions related to the current year3,868 3,201 3,072 
Additions based on tax positions from prior years795 124 702 
Reductions for tax positions of prior years— — — 
Reductions due to lapse of the applicable statute of limitations(310)(77)(77)
Unrecognized tax benefit, ending balance$40,098 $35,745 $32,497 
Interest and penalties recognized as a component of provision for income taxes$30 $40 $50 
Interest and penalties accrued at period end85 188 204 

Of the unrecognized tax benefits at December 31, 2022, $20.2 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 31, 2022, 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 31, 2022, our tax years 2019 through 2022, 2018 through 2022 and 2017 through 2022, 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.