INCOME TAXES (Tables)

12 Months Ended

Apr. 01, 2023

Schedule Domestic and Foreign Income Before Provision for Income Tax

Domestic and foreign income before provision (benefit) for income tax is as follows:


(In thousands)	2023		2022		2021
Domestic	$	85,657	$	(5,219)	$	5,526
Foreign	55,746		68,848		67,387
Total	$	141,403	$	63,629	$	72,913

Schedule of Income Tax Provision Components

The income tax provision (benefit) from continuing operations contains the following components:


(In thousands)	2023		2022		2021
Current
Federal	$	6,461	$	3,586	$	(289)
State	4,824		1,682		1,256
Foreign	8,940		9,940		13,319
Total current	$	20,225	$	15,208	$	14,286
Deferred
Federal	14,298		3,455		(12,906)
State	(7,678)		310		(2,436)
Foreign	(843)		1,281		(5,500)
Total deferred	$	5,777	$	5,046	$	(20,842)
Total	$	26,002	$	20,254	$	(6,556)

Schedule of Net Deferred Tax Asset

Tax effected, significant temporary differences comprising the net deferred tax liability are as follows:


(In thousands)	April 1, 2023		April 2, 2022
Deferred tax assets:
Depreciation	$	174	$	623
Amortization of intangibles	1,013		1,243
Inventory	7,674		6,841

Accruals, reserves and other deferred tax assets	15,680		13,020
Net operating loss carry-forward	20,996		30,212
Stock based compensation	4,230		4,422
Operating lease liabilities	15,851		15,777
Tax credit carry-forward, net	5,072		6,452
Capitalized research expenses	19,671		6,733
Gross deferred tax assets	90,361		85,323
Less valuation allowance	(8,838)		(14,077)
Total deferred tax assets (after valuation allowance)	81,523		71,246
Deferred tax liabilities:
Depreciation	(37,400)		(15,727)
Amortization of goodwill and intangibles	(57,752)		(63,004)
Unremitted earnings	(1,163)		(1,254)
Operating lease assets	(13,220)		(12,877)

Other deferred tax liabilities	(2,942)		(2,643)
Total deferred tax liabilities	(112,477)		(95,505)
Net deferred tax liabilities	$	(30,954)	$	(24,259)

Schedule of Effective Income Tax Rate Reconciliation


(In thousands)	2023				2022				2021
Tax at federal statutory rate	$	29,695	21.0	%	$	13,362	21.0	%	$	15,312	21.0	%

Impact of foreign operations	(2,408)		(1.7)	%	(3,799)		(6.0)	%	(7,049)		(9.7)	%
State income taxes net of federal benefit	2,939		2.1	%	1,384		2.2	%	(924)		(1.3)	%
Change in uncertain tax positions	81		0.1	%	(777)		(1.2)	%	1,172		1.6	%

Global intangible low taxed income	(828)		(0.6)	%	3,608		5.7	%	(758)		(1.0)	%
Unremitted earnings	(91)		(0.1)	%	194		0.3	%	257		0.4	%
Deferred statutory rate changes	82		0.1	%	40		0.1	%	(243)		(0.3)	%

Non-deductible executive compensation	1,439		1.0	%	1,080		1.7	%	2,238		3.1	%
Non-deductible expenses	827		0.6	%	741		1.2	%	2,038		2.8	%
Stock compensation shortfalls (benefits)	1,883		1.3	%	2,070		3.3	%	(5,504)		(7.5)	%
Research credits	(2,073)		(1.5)	%	(1,496)		(2.4)	%	(1,230)		(1.7)	%
Contingent consideration	—		—	%	1,880		3.0	%	—		—	%
Intercompany sale of intellectual property	—		—	%	—		—	%	(7,550)		(10.4)	%


Valuation allowance	(5,135)		(3.6)	%	254		0.2	%	(3,144)		(4.4)	%
Other, net	(409)		(0.3)	%	1,713		2.7	%	(1,171)		(1.6)	%
Income tax provision (benefit)	$	26,002	18.4	%	$	20,254	31.8	%	$	(6,556)	(9.0)	%

Summary of Gross Unrecognized Tax Benefits

The following table summarizes the activity related to its gross unrecognized tax benefits for the fiscal years ended April 1, 2023, April 2, 2022 and April 3, 2021:


(In thousands)	April 1, 2023		April 2, 2022		April 3, 2021
Beginning Balance	$	3,939	$	6,107	$	4,620
Additions for tax positions of current year	292		219		335
Additions for tax positions of prior years	—		—		1,194
Reductions of tax positions	(290)		(808)		(42)
Settlements of tax positions	—		(1,579)		—

Ending Balance	$	3,941	$	3,939	$	6,107