Income Taxes (Tables)

12 Months Ended

Jan. 02, 2021

Schedule of Income before Income Tax, Domestic and Foreign

For financial reporting purposes, income before income taxes includes the following components:

	For the year ended
	January 2, 2021			December 28, 2019		December 29, 2018
United States	$	30,619		$	51,007	$	44,693
Foreign		(6,572	)		24,300		11,702
Total	$	24,047		$	75,307	$	56,395

Schedule of Components of Income Tax Provision (Benefit)

The components of the income tax provision (benefit) are as follows:

	For the year ended
	January 2, 2021			December 28, 2019			December 29, 2018
Current tax expense (benefit):
United States	$	3,251		$	7,380		$	4,229
State and local		1,166			(388	)		2,522
Foreign		7,430			9,107			3,707
Total current		11,847			16,099			10,458
Deferred tax expense (benefit):
United States		3,190			665			380
State and local		(326	)		58			110
Foreign		(4,882	)		(1,783	)		(1,283	)
Total deferred		(2,018	)		(1,060	)		(793	)
Total income tax provision	$	9,829		$	15,039		$	9,665

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation between the effective income tax rate and the U.S. federal statutory rate is as follows:

	For the year ended
	January 2, 2021			December 28, 2019			December 29, 2018
U.S. federal taxes at statutory rate	$	5,057		$	15,815		$	11,843
Increase (decrease)
986(c) FX gain/(loss)		—			(281	)		—
Foreign withholding tax		326			—			—
Capitalized transaction costs		387			—			—
Foreign income taxed at different rate		1,363			1,446			1,292
FDII deduction		(1,265	)		(1,790	)		(2,195	)
Changes in estimates related to prior years including foreign		(2,530	)		—			(2,049	)
Goodwill impairment		6,693			—			—
State and local taxes, net		595			(73	)		1,462
Current year tax credits		(674	)		(663	)		(633	)
Foreign deferred other true up		—			—			(810	)
Change in reserve		(453	)		957			578
Foreign patent box benefit		—			(1,213	)		(937	)
Increase in valuation allowance		—			116			526
Other		330			725			588
Income tax provision	$	9,829		$	15,039		$	9,665

Schedule of Deferred Tax Assets and Liabilities

The temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of January 2, 2021, and December 28, 2019, are presented below:

	January 2, 2021			December 28, 2019
Deferred tax assets:
Foreign tax benefit of U.S. reserves	$	5,086		$	3,691
Net operating losses		6,159			510
Inventory		2,495			1,824
Intangible assets and goodwill		675			2,518
Accrued expenses and other		5,485			2,883
Other comprehensive income		—			3,887
Total deferred tax assets		19,900			15,313
Less: Valuation allowance		(428	)		(428	)
Net deferred tax assets		19,472			14,885
Deferred tax liabilities:
Depreciation		(7,493	)		(6,495	)
Intangible assets and goodwill		(82,126	)		(51,834	)
Other deferred tax liabilities		(1,564	)		(43	)
Other comprehensive income		(508	)		—
Total deferred tax liabilities		(91,691	)		(58,372	)
Net deferred tax liabilities	$	(72,219	)	$	(43,487	)

Schedule of Unrecognized Tax Benefits Roll Forward

The following is a roll-forward of the Company’s unrecognized tax benefits:

Unrecognized tax benefits - December 30, 2017	$	4,542
Increases from positions taken during prior periods		372
Increases from positions taken during current period		2,036
Settled positions		—
Lapse of statute of limitations		(837	)
Unrecognized tax benefits - December 29, 2018	$	6,113
Increases from positions taken during prior periods		1,121
Increases from positions taken during current period		817
Settled positions		—
Lapse of statute of limitations		—
Unrecognized tax benefits - December 28, 2019	$	8,051
Increases from positions taken during prior periods		656
Increases from positions taken during current period		459
Current year acquisitions		3,170
Settled positions		(947	)
Lapse of statute of limitations		—
Unrecognized tax benefits - January 2, 2021	$	11,389