XML 32 R20.htm IDEA: XBRL DOCUMENT v3.6.0.2
Income Taxes
9 Months Ended
Dec. 30, 2016
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The Company's effective tax rate (ETR) from continuing operations was 26.0% and (192.3)% for the three and nine months ended December 30,2016, respectively, as compared to 71.8% and 8.6% for the three and nine months ended January 1, 2016. For the three months ended December 30, 2016, the primary driver of the ETR was the global mix of income. For the nine months ended December 30, 2016, the primary drivers of the ETR were the global mix of income, release of a valuation allowance in a non-U.S. jurisdiction and excess tax benefits related to employee share-based payment awards. The primary drivers of the ETR for the three months ended January 1, 2016 were the global mix of income, the impact of changes in tax law and the recording of a valuation allowance against certain state deferred tax assets. The primary drivers of the ETR for the nine months ended January 1, 2016 were the global mix of income, excess tax benefits related to employee share-based payment awards, the recording of a valuation allowance against certain state deferred tax assets and the release of a reserve for uncertain tax positions following the closure of an audit in a non-U.S. jurisdiction.

There were no material changes to uncertain tax positions during the first nine months of fiscal 2017 compared to the fiscal 2016 year-end.

The Company is currently undergoing an IRS audit for its fiscal years 2011 through 2013 US Federal tax returns. In January of 2017, the Company received Notices of Proposed Adjustment (NOPAs) disallowing certain transfer pricing deductions. The company is assessing the IRS’s position in the NOPAs and believes its tax position is more-likely-than-not sustainable and that it will ultimately prevail. Accordingly, no unrecognized tax benefits have been recorded for this tax position.

It is reasonably possible that during the next 12 months the Company's liability for uncertain tax positions may change by a significant amount. In addition, the Company may settle certain other tax examinations, have lapses in statute limitations, or voluntarily settle income tax positions in negotiated settlements for different amounts than the Company has accrued as uncertain tax positions. The Company may need to accrue and ultimately pay additional amounts for tax positions that previously met a more likely than not standard if such positions are not upheld. Conversely, the Company could settle positions with the tax authorities for amounts lower than those that have been accrued or extinguish a position through payment. The Company believes the outcomes which are reasonably possible within the next 12 months may result in a reduction in liability for uncertain tax positions of between $18 million and $49 million, excluding interest, penalties, and tax carryforwards.