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INCOME TAXES (Tables) | 12 Months Ended
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Jan. 02, 2022
Income Tax Disclosure [Abstract] |
Schedule of Components of Current and Deferred Income Tax Expense (Benefit) | The components of current and deferred income tax expense reflected in the Consolidated and Combined Statements of Operations are as follows:
| Fiscal Year
(In thousands) | 2021 |  | 2020 |  | 2019
Provision for income taxes: |  |  |  |  |
Current tax benefit (expense) | $ | 3,952 |  |  | $ | (12,644) |  |  | $ | (9,305) |
Deferred tax (expense) benefit | (4,155) |  |  | 517 |  |  | (817) |
Provision for income taxes | $ | (203) |  |  | $ | (12,127) |  |  | $ | (10,122) |
Schedule of Effective Income Tax Rate Reconciliation | The provision for income taxes differs from the amounts obtained by applying the statutory Singapore tax rate of 17% (2019: U.S. statutory tax rate of 21%) to income before taxes as shown below:
| Fiscal Year
(In thousands) | 2021 |  | 2020 |  | 2019
Statutory rate | 17 | % |  | 17 | % |  | 21 | %
Tax benefit at statutory rate | $ | 40,641 |  |  | $ | 21,367 |  | $ | 33,819
Foreign tax rate differential | (37,390) |  | (19,356) |  | 1,116
Foreign income inclusion in the U.S. | — |  | — |  | (4,366)
Change in valuation allowance | (12,510) |  | (10,431) |  | (38,627)
Unrecognized tax benefits (expense) | 7,797 |  | (3,896) |  | (2,424)
Other | 1,259 |  | 189 |  | 360
Provision for income taxes | $ | (203) |  | $ | (12,127) |  | $ | (10,122)
Schedule of Deferred Tax Assets and Liabilities | Long-term deferred tax assets and liabilities are presented in the Consolidated Balance Sheets as follows:
| As of
(In thousands) | January 2, 2022 |  | January 3, 2021
Deferred tax assets: |  |  |
Net operating loss carryforward | $ | 32,486 |  |  | $ | 19,659 |
Reserves and accruals | 1,698 |  |  | 7,766 |
Fixed assets | 905 |  |  | 40 |
Total deferred tax assets | 35,089 |  |  | 27,465 |
Valuation allowance | (29,906) |  |  | (16,795) |
Total deferred tax assets, net of valuation allowance | 5,183 |  |  | 10,670 |
Deferred tax liabilities: |  |  |
Intangible assets and accruals | (1,150) |  |  | (1,050) |
Total deferred tax liabilities | (1,150) |  |  | (1,050) |
Net deferred tax assets | $ | 4,033 |  |  | $ | 9,620 |
Summary of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits during fiscal years 2021 and 2020 is as follows:
| Fiscal Year Ended
(In thousands) | January 2, 2022 |  | January 3, 2021
Balance at beginning of period | $ | 39,506 |  |  | $ | 33,502 |
Additions for tax positions related to the current year | 1,186 |  |  | 10,839 |
Reduction of tax position relating to settlement with taxing authorities | (2,554) |  |  | — |
Reductions for tax positions from prior years/statute of limitations expirations | (3,174) |  |  | (5,301) |
Foreign exchange (gain) loss | (269) |  |  | 466 |
Balance at end of period | $ | 34,695 |  |  | $ | 39,506 |
Summary of Income Tax Examinations and Jurisdictions | The following table summarizes our major tax jurisdictions and the tax years that remain subject to income tax examination by these jurisdictions as of January 2, 2022:
Tax Jurisdictions | Tax Years
Switzerland | 2020
Malaysia | 2013 and onward
Italy | 2016 and onward

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=124434304&loc=d3e36027-109320 + Details
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