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Income Taxes
 12 Months Ended
Dec. 28, 2024
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 28, 2024December 30, 2023December 31, 2022
United States$66,953 $(10,681)$30,047 
Foreign12,459 99,948 27,823 
$79,412 $89,267 $57,870 

Provision for Income Taxes
The components of the provision for income taxes are as follows (in thousands):
 Fiscal Year Ended
 December 28, 2024December 30, 2023December 31, 2022
Current provision:   
Federal$15,688 $8,970 $4,330 
State1,703 835 520 
Foreign5,762 9,175 8,625 
23,153 18,980 13,475 
Deferred provision (benefit):   
Federal(11,446)(10,810)(5,886)
State(1,806)(330)118 
Foreign(103)(960)(575)
(13,355)(12,100)(6,343)
Total provision for income taxes$9,798 $6,880 $7,132 
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 28, 2024December 30, 2023December 31, 2022
U.S. statutory federal tax rate$16,676 $18,746 $12,153 
State taxes and credits, net of federal benefit589 (87)16 
Amortization of stock-based compensation(2,833)1,424 (2,772)
Tax credits(12,890)(13,368)(8,264)
Foreign taxes at rates different than the U.S. 1,312 9,046 2,404 
Other permanent differences2,532 1,010 1,964 
Reversal of book gain on China Sale(3,476)— — 
Foreign gain exclusion(1)
— (21,567)— 
Global intangible low-taxed income3,768 7,885 7 
Foreign derived intangible income(3,774)(2,986)(5,160)
Foreign tax on the divestiture of the China operations2,395 — — 
Change in valuation allowance2,074 2,569 2,597 
Tax contingencies, net of reversals3,661 4,259 3,124 
Other(236)(51)1,063 
Total$9,798 $6,880 $7,132 
(1) The rate reconciliation includes an exclusion of a portion of the gain on the sale of the FRT business under German tax law.

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 28, 2024December 30, 2023
Tax credits$31,196 $29,074 
Inventory reserve12,818 14,626 
Other reserves and accruals10,600 9,580 
Non-statutory stock options2,213 2,771 
Lease liability4,857 6,175 
Research and development expenditures capitalization65,520 51,698 
Net operating loss carryforwards17,295 17,484 
Gross deferred tax assets144,499 131,408 
Valuation allowance(47,938)(45,864)
Total deferred tax assets96,561 85,544 
Right-of-use assets(4,104)(5,445)
Acquired intangibles and fixed assets(445)(863)
Unrealized investment gains— (103)
Tax on undistributed earnings— (169)
Total deferred tax liabilities(4,549)(6,580)
Net deferred tax assets$92,012 $78,964 
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 28, 2024, we maintained a valuation allowance of $47.9 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 28, 2024 consisted of the following (in thousands):
AmountExpiration Date(s)
Federal research and development tax credit$12,107 2042-2044
Foreign tax credit carryforwards752 2025-2027
California research credits61,491 Indefinite
State net operating loss carryforwards238,852 2028-Indefinite
Singapore net operating loss carryforwards3,936 Indefinite

Undistributed Earnings
As of December 28, 2024, unremitted earnings of foreign subsidiaries was estimated at $43.1 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 $31.1 million of undistributed foreign earnings to the U.S., we have not established a deferred tax liability for foreign withholding taxes. Foreign earnings that can be remitted back to the U.S. are from jurisdictions with current tax treaties, which exempt us from 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 28, 2024December 30, 2023December 31, 2022
Unrecognized tax benefit, beginning balance$45,574 $40,098 $35,745 
Additions based on tax positions related to the current year3,813 4,726 3,868 
Additions based on tax positions from prior years— 858 795 
Reductions for tax positions of prior years(990)— — 
Reductions due to lapse of the applicable statute of limitations(33)(108)(310)
Unrecognized tax benefit, ending balance$48,364 $45,574 $40,098 
Interest and penalties recognized as a component of provision for income taxes$205 $34 $30 
Interest and penalties accrued at period end269 63 85 

Of the unrecognized tax benefits at December 28, 2024, $25.3 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 28, 2024, 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 28, 2024, our tax years 2021 through 2024, 2020 through 2024 and 2019 through 2024 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.