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INCOME TAXES (Tables)

12 Months Ended

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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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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