XML 30 R19.htm IDEA: XBRL DOCUMENT

Income Taxes

3 Months Ended

Mar. 27, 2021

NOTE 12. Income Taxes

The following table provides details of income taxes:

	Three Months Ended
	March 27,			March 28,
	2021			2020
Income (loss) before income taxes	$	26,602		$	(4,004	)
Provision for income taxes	$	2,489		$	400
Effective tax rate		9	%		(10	%)

The income tax provision for the three months ended March 27, 2021 was computed based on the Company’s annual forecast of profit by jurisdiction and forecasted effective tax rate for the year. The increase in the Company’s effective tax rate for the three months ended March 27, 2021 as compared to the three months ended March 28, 2020 is primarily due to (i) an increase in quarterly earnings, offset by an increase in the Foreign Derived Intangible Income (“FDII”) deduction and (ii) an increase in the excess tax benefit associated with equity compensation. The Company’s recorded effective tax rate is less than the U.S. statutory rate primarily due to projected FDII deductions and federal research and development tax credits.

The Company currently has a partial valuation allowance recorded against certain foreign and state net operating loss and credit carryforwards where the realizability of such deferred tax assets is substantially in doubt. Each quarter, the Company assesses the likelihood that it will be able to recover its deferred tax assets. The Company considers available evidence, both positive and negative, including forecasted earnings in assessing its need for a valuation allowance. As a result of the Company’s analysis, it concluded that it is more likely than not that a portion of its deferred tax assets will not be realized. Therefore, the Company continues to provide a valuation allowance against certain deferred tax assets. The Company continues to monitor available evidence and may reverse some or all of the remaining valuation allowance in future periods, if appropriate. The Company has a recorded valuation allowance against certain of its deferred tax assets of $14,249 and $14,238 as of March 27, 2021 and December 26, 2020, respectively.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details