Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.20.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 28, 2019
Income Tax Disclosure [Abstract]  
Provision for Income Taxes was Computed Based on Amounts of Income Before Income Taxes
The following table presents income before income taxes for which the provision for income taxes was computed:
 
Year Ended December
 
 
 
 
 
 
 
 
(In thousands)
 
2019
 
 
2018
 
2017
Domestic
 
$
61,691

 
 
$
159,716

 
$
169,160

Foreign
 
73,503

 
 
180,362

 
189,993

Income before income taxes
 
$
135,194

 
 
$
340,078

 
$
359,153


Provision for Income Taxes
The following table presents components of the provision for income taxes:
 
Year Ended December
 
 
 
 
 
 
 
 
(In thousands)
 
2019
 
 
2018
 
2017
Current:
 
 
 
 
 
 
 
Federal
 
$
14,831

 
 
$
29,670

 
$
161,482

Foreign
 
23,017

 
 
32,501

 
31,444

State
 
4,866

 
 
12,303

 
13,546

Total current income taxes
 
42,714

 
 
74,474

 
206,472

Deferred:
 
 
 
 
 
 
 
Federal and state
 
(5,912
)
 
 
4,067

 
36,009

Foreign
 
1,738

 
 
(1,536
)
 
481

Total deferred income taxes
 
(4,174
)
 
 
2,531

 
36,490

Total provision for income taxes
 
$
38,540

 
 
$
77,005

 
$
242,962


Differences Between Income Taxes Computed by Applying Statutory Federal Income Tax Rate and Income Tax Expense reported in Consolidated Financial Statements
The following table presents a reconciliation of the differences between income taxes computed by applying the statutory federal income tax rate and income tax expense reported in the financial statements:
 
Year Ended December
 
 
 
 
 
 
 
 
(In thousands)
 
2019
 
 
2018
 
2017
Tax at federal statutory rate
 
$
28,391

 
 
$
71,416

 
$
125,703

State income taxes, net of federal tax benefit
 
2,476

 
 
10,532

 
5,788

Foreign rate differences
 
(8,983
)
 
 
(5,125
)
 
(28,077
)
Tax reform
 
258

 
 
5,526

 
136,722

Stock-based compensation - federal
 
(3,169
)
 
 
(2,692
)
 
(2,929
)
Adjustments to opening balances
 
1,928

 
 

 

Change in valuation allowance
 
17,025

 
 
(2,707
)
 
5,120

GILTI
 
2,437

 
 

 

Change in indefinite reinvestment assertions
 
(3,914
)
 
 

 

Other
 
2,091

 
 
55

 
635

Income taxes
 
$
38,540

 
 
$
77,005

 
$
242,962


Deferred Income Tax Assets and Liabilities
The following table presents the components of deferred income tax assets and liabilities:
(In thousands)
 
December 2019
 
 
December 2018
Deferred income tax assets:
 
 
 
 
 
Inventories
 
$
7,811

 
 
$
7,676

Deferred compensation
 
13,816

 
 
11,701

Other employee benefits
 
10,125

 
 
3,297

Stock-based compensation
 
8,076

 
 
6,243

Other accrued expenses
 
27,369

 
 
19,266

Intangible assets
 
21,356

 
 
7,541

Leases
 
20,219

 
 

Operating loss carryforwards
 
9,779

 
 
23,702

Gross deferred income tax assets
 
118,551

 
 
79,426

Less: valuation allowance
 
(16,699
)
 
 
(24,175
)
Net deferred income tax assets
 
101,852

 
 
55,251

Deferred income tax liabilities:
 
 
 
 
 
Leases
 
19,417

 
 

Depreciation
 
2,959

 
 
4,142

Taxes on unremitted earnings
 
2,163

 
 
9,702

Other deferred tax liabilities
 
221

 
 
1,195

Deferred income tax liabilities
 
24,760

 
 
15,039

Total net deferred income tax assets
 
$
77,092

 
 
$
40,212

Amounts included in the balance sheets:
 
 
 
 
 
Deferred income taxes - assets
 
$
79,551

 
 
$
42,891

Deferred income taxes - liabilities
 
(2,459
)
 
 
(2,679
)
 
 
$
77,092

 
 
$
40,212


Reconciliation of Change in Accrual for Unrecognized Income Tax Benefits
The following table presents a reconciliation of the change in the accrual for unrecognized income tax benefits:
(In thousands)
Unrecognized
Income Tax
Benefits
 
Accrued
Interest
and Penalties
 
Unrecognized Income Tax Benefits
Including Interest
and Penalties
 
Balance, December 2016
$
48,842

 
$
1,411

 
$
50,253

 
Additions for current year tax positions
7,419

 

 
7,419

 
Additions for prior year tax positions
75

 
1,458

 
1,533

 
Reductions for prior year tax positions
(418
)
 
(1
)
 
(419
)
 
Reductions due to statute expirations
(4,655
)
 
(380
)
 
(5,035
)
 
Balance, December 2017
51,263

 
2,488

 
53,751

 
Additions for current year tax positions
2,458

 
8

 
2,466

 
Additions for prior year tax positions
6,286

 
2,870

 
9,156

 
Reductions for prior year tax positions
(191
)
 

 
(191
)
 
Reductions due to statute expirations
(5,735
)
 
(427
)
 
(6,162
)
 
Balance, December 2018
54,081

 
4,939

 
59,020

 
Additions for current year tax positions
1,260

 

 
1,260

 
Additions for prior year tax positions
4,881

 
2,632

 
7,513

 
Reductions for prior year tax positions
(3,680
)
 
(318
)
 
(3,998
)
 
Reductions due to statute expirations
(674
)
 
(127
)
 
(801
)
 
Payments in settlement
(205
)
 
(183
)
 
(388
)
 
Amounts transferred to former parent
(41,986
)
 
(2,728
)
 
(44,714
)
 
Balance, December 2019
$
13,677

 
$
4,215

 
$
17,892

 

Amounts Included in Consolidated Balance Sheets
(In thousands)
 
December 2019
 
 
December 2018
Amounts included in the balance sheets:
 
 
 
 
 
Unrecognized income tax benefits, including interest and penalties
 
$
17,892

 
 
$
59,020

Less: deferred tax benefits
 
(3,626
)
 
 
(7,724
)
Total unrecognized tax benefits
 
$
14,266

 
 
$
51,296