11.

Income Taxes

The following tables summarize the Company’s consolidated provision for US federal, state and foreign taxes on income:


	January 2, 2016			January 3, 2015			December 28, 2013
Current:
US federal	$	(6,862	)	$	12,904		$	60,030
State		1,859			(131	)		9,583
Foreign		15,740			24,059			25,647

	$	10,737		$	36,832		$	95,260

Deferred:
US federal	$	10,756		$	25,162		$	30,513
State		1,890			2,876			3,487
Foreign		(548	)		1,061			358

	$	12,098		$	29,099		$	34,358

Total tax provision	$	22,835		$	65,931		$	129,618

The components of the Company’s consolidated income before income taxes consist of the following:


	January 2, 2016		January 3, 2015		December 28, 2013
Domestic	$	6,299	$	88,024	$	248,637
Foreign		49,315		95,640		83,723

	$	55,614	$	183,664	$	332,360

The difference between the US federal statutory tax rate and the Company’s consolidated effective tax rate is as follows:


	January 2, 2016			January 3, 2015			December 28, 2013
US federal statutory rate		35.0	%		35.0	%		35.0	%
States income taxes (net of federal benefit)		3.8			1.3			2.7
Reserves for uncertain tax positions		3.5			0.4			(0.1	)
Foreign taxes		(0.4	)		(0.6	)		0.4
(Decrease) increase in valuation allowance		(2.2	)		1.7			0.9
Loss on closure of China		0.0			(2.1	)		0.0
Other		1.4			0.2			0.1

Effective tax rate		41.1	%		35.9	%		39.0	%

The deferred tax assets and liabilities recorded on the Company’s consolidated balance sheets are as follows:


	January 2, 2016			January 3, 2015
Provision for estimated expenses	$	4,638		$	7,863
Depreciation		4,164			0
Operating loss carryforwards		34,285			37,746
Salaries and wages		641			9,567
Share-based compensation		14,330			6,653
Other		8,024			6,922
Other comprehensive income		24,778			13,060
Less: valuation allowance		(28,279	)		(34,640	)

Total deferred tax assets	$	62,581		$	47,171

Depreciation	$	0		$	(6,482	)
Other		(1,823	)		(3,123	)
Amortization		(210,901	)		(188,745	)

Total deferred tax liabilities	$	(212,724	)	$	(198,350	)

Net deferred tax liabilities	$	(150,143	)	$	(151,179	)

Certain foreign operations of the Company have generated net operating loss carryforwards. If it has been determined that it is more-likely-than-not that the deferred tax assets associated with these net operating loss carryforwards will not be utilized, a valuation allowance has been recorded. As of January 2, 2016 and January 3, 2015, various foreign subsidiaries had net operating loss carryforwards of approximately $138,562 and $142,433, respectively, most of which can be carried forward indefinitely.

The Company’s undistributed earnings of substantially all of its foreign subsidiaries are not considered to be permanently reinvested. Accordingly, the Company has recorded all taxes, after taking into account foreign tax credits, on the undistributed earnings of these foreign subsidiaries.

The undistributed earnings of the remaining foreign subsidiaries are indefinitely invested outside the United States. We have not recorded a deferred tax liability of approximately $10,000 for the U.S. income taxes on the undistributed earnings of these foreign subsidiaries.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


	January 2, 2016			January 3, 2015			December 28, 2013
Balance at beginning of year	$	6,268		$	5,784		$	5,319
Additions based on tax positions related to the current year		2,106			1,304			1,428
Reductions for tax positions of prior years		(676	)		(820	)		(963	)

Balance at end of year	$	7,698		$	6,268		$	5,784

At January 2, 2016, the total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate is $6,948. As of January 2, 2016, given the nature of the Company’s uncertain tax positions, it is reasonably possible that there will not be a significant change in the Company’s uncertain tax benefits within the next twelve months.

The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. The Company had $1,229 and $2,300 of accrued interest and penalties at January 2, 2016 and January 3, 2015, respectively. The Company recognized $(266), $83, and $(1,188) in interest and penalties during the fiscal years ended January 2, 2016, January 3, 2015 and December 28, 2013, respectively.

The Company or one of its subsidiaries files income tax returns in the US federal jurisdiction, and various state and foreign jurisdictions. At January 2, 2016, with few exceptions, the Company was no longer subject to US federal, state or local income tax examinations by tax authorities for years prior to 2012, or non-US income tax examinations by tax authorities for years prior to 2009.