Income Taxes |
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Sep. 29, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The Company regularly reviews its tax positions in each significant taxing jurisdiction in the process of evaluating its unrecognized tax benefits. The Company makes adjustments to its unrecognized tax benefits when: (i) facts and circumstances regarding a tax position change, causing a change in management’s judgment regarding that tax position; (ii) a tax position is effectively settled with a tax authority at a differing amount; and/or (iii) the statute of limitations expires regarding a tax position. The total provision for income taxes included in the condensed consolidated statements of operations consisted of the following:
At September 29, 2019, the Company had gross tax effected unrecognized tax benefits of $31.1 million, of which $29.4 million, if recognized, would affect the continuing operations effective tax rate. The remaining amount, if recognized, would affect discontinued operations. The Company believes that it is reasonably possible that approximately $1.3 million of its uncertain tax positions at September 29, 2019, including accrued interest and penalties, and net of tax benefits, may be resolved over the next twelve months as a result of lapses in applicable statutes of limitations and potential settlements. Various tax years after 2009 remain open to examination by certain jurisdictions in which the Company has significant business operations, such as Finland, Germany, Italy, Netherlands, Singapore, the United Kingdom and the United States. The tax years under examination vary by jurisdiction. During the first nine months of fiscal years 2019 and 2018, the Company recorded net discrete income tax benefits of $12.7 million and $7.1 million, respectively. The most significant discrete tax benefits recorded in the first nine months of fiscal year 2019 include recognition of excess tax benefits on stock compensation of $4.6 million, U.S. federal return to provision adjustments of $6.5 million and $3.7 million associated with a tax election made during fiscal year 2019, partially offset by the tax expense of $2.7 million related to a change in tax reform transition tax. The most significant discrete tax benefits recorded in the first nine months of fiscal year 2018 include recognition of excess tax benefits on stock compensation of $5.4 million and change in tax reform estimates of $5.4 million, partially offset by the tax expense of $7.1 million related to the sale of the multispectral imaging business.
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