Taxes (Tables)
|
12 Months Ended |
Jan. 02, 2021 |
Income Tax Disclosure [Abstract] |
|
Schedule of significant components of the consolidated deferred tax assets and liabilities |
Significant components of the consolidated deferred tax assets and liabilities were (in thousands): | | | | | | | | | | | | Fiscal Year | 2020 | | 2019 | Deferred income tax assets: | | | | | | | | | | | | Inventory | 4,095 | | | 6,856 | | | | | | | | | | Compensation | 14,028 | | | 11,998 | | | | | | | | | | | | | | | | | | | | | | | | | | Property, plant and equipment | — | | | 220 | | Trade names and customer lists | 5,163 | | | 4,345 | | Goodwill | 13,189 | | | 14,947 | | | | | | | | | | Foreign accruals | 12,582 | | | 10,446 | | Loss carryforwards | 54,112 | | | 32,158 | | Tax credit carryforwards | 2,771 | | | 4,281 | | | | | | | | | | Interest disallowance | 9,604 | | | 16,683 | | | | | | | | | | Lease liabilities | 54,857 | | | 82,511 | | Other | 19,042 | | | 36,302 | | Deferred income tax assets total | $ | 189,443 | | | $ | 220,747 | | | | | | Deferred income tax liabilities: | | | | | | | | | | | | Property, plant and equipment | (5,807) | | | — | | Undistributed earnings of certain foreign subsidiaries | (3,076) | | | (329) | | Right-of-use assets | (36,584) | | | (65,070) | | Other | (1,327) | | | (1,081) | | Deferred income tax liabilities total | $ | (46,794) | | | $ | (66,480) | | | | | | Valuation allowance | (109,250) | | | (118,089) | | | | | | Net deferred income tax assets | $ | 33,399 | | | $ | 36,178 | | | | | | Net deferred income tax assets | $ | 33,894 | | | $ | 38,275 | | Net deferred income tax liabilities | (495) | | | (2,097) | | Net deferred income tax assets | $ | 33,399 | | | $ | 36,178 | |
|
Schedule of the amounts and the fiscal year of expiration of loss carryforwards |
The amounts and the fiscal year of expiration of the loss carryforwards are (in thousands): | | | | | | Expires 2021 through 2025 | $ | 29,990 | | Expires 2026 through 2030 | 58,328 | | Expires 2031 through 2035 | — | | Expires 2036 through 2040 | 74,314 | | Indefinite | 21,828 | | Total loss carryforwards | $ | 184,460 | | The state apportioned amounts and the fiscal year of expiration of the loss carryforwards are (in thousands): | | | | | | Expires 2021 through 2025 | $ | 2,567 | | Expires 2026 through 2030 | 13,677 | | Expires 2031 through 2035 | 16,545 | | Expires 2036 through 2040 | 80,377 | | Indefinite | 49,292 | | Total loss carryforwards | $ | 162,458 | |
|
Schedule of income before income taxes for the Company's U.S. and non-U.S. based operations |
The following table identifies income (loss) before income taxes for the Company's U.S. and non-U.S. based operations for the fiscal years indicated (in thousands): | | | | | | | | | | | | | | | | | | Fiscal Year | 2020 | | 2019 | | 2018 | U.S | $ | (163,331) | | | $ | (142,141) | | | $ | (102,810) | | Non-U.S | (8,652) | | | 110,810 | | | 122,980 | | Total | $ | (171,983) | | | $ | (31,331) | | | $ | 20,170 | |
|
Components of provision for income taxes |
The Company's provision for income taxes consisted of the following for the fiscal years indicated (in thousands): | | | | | | | | | | | | | | | | | | Fiscal Year | 2020 | | 2019 | | 2018 | Current provision: | | | | | | U.S. federal | $ | (96,224) | | | $ | 2,338 | | | $ | (14,386) | | Non-U.S | 16,522 | | | 28,109 | | | 35,854 | | State and local | (681) | | | (2,330) | | | (2,056) | | Total current | (80,383) | | | 28,117 | | | 19,412 | | Deferred provision (benefit): | | | | | | U.S. federal | — | | | — | | | — | | Non-U.S | 4,340 | | | (9,436) | | | 1,696 | | State and local | — | | | — | | | — | | Total deferred | 4,340 | | | (9,436) | | | 1,696 | | Provision for income taxes | $ | (76,043) | | | $ | 18,681 | | | $ | 21,108 | |
|
Reconciliation of the U.S. federal statutory income tax rate to the effective tax rate |
A reconciliation of the U.S. federal statutory income tax rates to the Company's effective tax rate is as follows: | | | | | | | | | | | | | | | | | | Fiscal Year | 2020 | | 2019 | | 2018 | Tax at statutory rate | 21.0 | % | | 21.0 | % | | 21.0 | % | | | | | | | Permanent differences | (4.5) | | | (2.0) | | | (0.2) | | State, net of federal tax benefit | (0.1) | | | 17.6 | | | (3.8) | | Foreign rate differential | 1.2 | | | 12.8 | | | (12.3) | | Withholding taxes | (1.2) | | | (11.1) | | | 16.3 | | GILTI tax-net of foreign tax credits | 2.1 | | | (24.2) | | | 11.8 | | U.S. tax on foreign income-net of foreign tax credits | 3.9 | | | 0.3 | | | 6.4 | | Income tax contingencies | 1.6 | | | 3.2 | | | (5.0) | | Valuation allowances | (0.4) | | | (53.2) | | | 65.0 | | Repatriation tax - net impact | — | | | — | | | 5.9 | | Deficiencies on employee stock awards | (1.4) | | | (10.9) | | | 10.1 | | | | | | | | Tax reform rate reduction impact on deferred tax assets | — | | | — | | | (15.8) | | | | | | | | Foreign deferred tax rate change | — | | | (4.5) | | | — | | Non deductible foreign equity awards | (0.4) | | | (3.2) | | | 5.3 | | Non deductible officer compensation | 0.7 | | | (3.7) | | | — | | Tax exempt foreign capital gain income | — | | | 6.3 | | | — | | Deferred adjustment | — | | | (8.0) | | | — | | CARES Act Rate Benefit | 21.7 | | | — | | | — | | | | | | | | Provision for income taxes | 44.2 | % | | (59.6) | % | | 104.7 | % |
|
Reconciliation of the total amounts of unrecognized tax benefits |
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for the fiscal years indicated (in thousands): | | | | | | | | | | | | | | | | | | Fiscal Year | 2020 | | 2019 | | 2018 | Balance at beginning of year | $ | 35,676 | | | $ | 39,909 | | | $ | 35,355 | | Gross increases—tax positions in prior years | 1,241 | | | 6,639 | | | 7,183 | | Gross decreases—tax positions in prior years | (4,281) | | | (4) | | | (124) | | Gross increases—tax positions in current year | 857 | | | 184 | | | 576 | | Settlements | — | | | (1,901) | | | — | | Lapse in statute of limitations | (2,255) | | | (8,912) | | | (2,980) | | Change due to currency revaluation | 302 | | | (239) | | | (101) | | Balance at end of year | $ | 31,540 | | | $ | 35,676 | | | $ | 39,909 | |
|