Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Components of Income Tax (Benefit) Provision

The Company’s income tax (benefit) provision consists of the following components:


	Fiscal 2016			Fiscal 2015		Fiscal 2014
Federal income tax (benefit) provision
Current	$	1,609		$	870	$	—
Deferred		(47,621	)		6,517		7,333

Net federal income tax (benefit) provision		(46,012	)		7,387		7,333

State income tax (benefit) provision
Current		816			591		331
Deferred		(11,794	)		941		725

Net state income tax (benefit) provision		(10,978	)		1,532		1,056

Income tax (benefit) provision	$	(56,990	)	$	8,919	$	8,389

Schedule of Reconciliation between Reported Income Tax (Benefit) Provision and Income Tax Provision

The following is a reconciliation between the reported income tax (benefit) provision and the income tax provision based on applying the federal statutory rate to the Company’s pretax income:


	Fiscal 2016						Fiscal 2015						Fiscal 2014
	Amount			Percent of Pre-tax Income			Amount			Percent of Pre- tax Income			Amount			Percent of Pre- tax Income
Income tax provision (benefit) computed at statutory rate	$	27,754			35.0	%	$	16,109			35.0	%	$	(10,344	)		35.0	%
Permanent book/tax difference:
Stock-based compensation		8,259			10.4	%		5,501			12.0	%		67			(0.2	)%
Merger, acquisition and IPO-related costs		4,439			5.6	%		—			—			—			—
Other permanent differences		220			0.2	%		199			0.4	%		205			(0.7	)%
State and local income tax		12,019			15.2	%		2,814			6.1	%		(12,021	)		40.7	%
Change in valuation allowance		(109,690	)		(138.3	)%		(15,812	)		(34.4	)%		30,545			(103.4	)%
Other		9			0.0	%		108			0.2	%		(63	)		0.2	%

Income tax (benefit) provision	$	(56,990	)		(71.9	)%	$	8,919			19.4	%	$	8,389			(28.4	)%

Schedule of Deferred Tax Assets and Liabilities

The approximate tax effect of each type of temporary difference that gave rise to the Company’s deferred tax assets and liabilities were as follows:


	December 31, 2016			January 2, 2016
Deferred tax assets:
Inventory cost capitalization and reserves	$	5,420		$	4,789
Other reserves and accruals		7,071			4,209
Federal net operating loss carryforwards		42,207			76,678
State net operating loss carryforwards		3,533			11,153
Alternative minimum tax carryforward		3,111			1,502
State income tax credit		6,565			10,100
Other		1,380			307

		69,287			108,738
Less: Valuation allowance		—			(109,690	)

Net deferred tax assets		69,287			(952)

Deferred tax liabilities:
Other reserves and accruals		(998	)		(940	)
Basis difference in property, plant and equipment		(16,669	)		(16,794	)
Amortization of intangible assets		(45,246	)		(23,261	)
Other		(3,667	)		(803	)

Total deferred tax liabilities		(66,580	)		(41,798	)

Net deferred tax asset (liability) – net	$	2,707		$	(42,750	)

Schedule of Net Operating Loss ("NOL") Carryforwards

At December 31, 2016, the Company had net operating losses (“NOL”) carryforwards of $120,498 and $85,427 for federal and state purposes, respectively, which expire during the following years (as revised):


	Federal		State
2017 – 2021		—		9,500
2022 – 2026		—		5,812
2027 – 2031		—		5,483
2032 – 2035		120,498		64,632

Schedule of Activity in the Valuation Allowance for Deferred Tax Assets

The following shows the activity in the valuation allowance for deferred tax assets:


	Fiscal 2016			Fiscal 2015			Fiscal 2014
Balance at beginning of period	$	109,690		$	126,392		$	94,952
Additions		—			—			31,440
Valuation allowance released		(109,690	)		(15,812	)		—
Other deductions		—			(890	)		—

Balance at end of period	$	—		$	109,690		$	126,392