Income Taxes (Tables)

12 Months Ended

Dec. 30, 2017

Components of Income from Continuing Operations Before Income Taxes

The components of income from continuing operations before provision for income taxes are as follows:



(In thousands)	December 30, 2017		December 31, 2016		January 2, 2016
Domestic	$	2,797	$	6,196	$	13,076
Foreign	54,856		38,353		36,295
	$	57,653	$	44,549	$	49,371

Components of the Provision for Income Taxes from Continuing Operations

The components of the provision for income taxes from continuing operations are as follows:



(In thousands)	December 30, 2017			December 31, 2016			January 2, 2016
Current Provision:
Federal	$	7,835		$	535		$	4,693
Foreign	17,372			11,323			10,623
State	285			838			1,152
	25,492			12,696			16,468
Deferred Provision (Benefit):
Federal	4,682			1,738			45
Foreign	(3,563		)	(1,818		)	(1,378		)
State	(541		)	(533		)	(373		)
	578			(613		)	(1,706		)
	$	26,070		$	12,083		$	14,762

Provision for Income Taxes by Continuing and Discontinued Operation

The provision for income taxes included in the accompanying consolidated statement of income is as follows:



(In thousands)	December 30, 2017		December 31, 2016		January 2, 2016
Continuing Operations	$	26,070	$	12,083	$	14,762
Discontinued Operation	—		2		43
	$	26,070	$	12,085	$	14,805

Income Tax Reconciliation

The provision for income taxes from continuing operations in the accompanying statement of income differs from the provision calculated by applying the statutory federal income tax rate of 35% to income from continuing operations before provision for income taxes due to the following:



(In thousands)	December 30, 2017			December 31, 2016			January 2, 2016
Provision for Income Taxes at Statutory Rate	$	20,179		$	15,592		$	17,279
Increases (Decreases) Resulting From:
State income taxes, net of federal tax	151			189			506
U.S. tax cost of foreign earnings	761			192			455
Foreign tax rate differential	(3,747		)	(3,921		)	(3,852		)
Provision for (reversal of) tax benefit reserves, net	1,517			(76		)	33
Change in valuation allowance	(341		)	(131		)	99
Nondeductible expenses	1,177			1,090			704
Research and development tax credits	(297		)	(229		)	(210		)
Excess tax benefit related to share-based compensation	(581		)	(553		)	—
Impact of the U.S. Tax Cuts and Jobs Act	7,093			—			—
Other	158			(70		)	(252		)
	$	26,070		$	12,083		$	14,762

Net Deferred Tax (Liability) Asset

Net deferred tax liability in the accompanying consolidated balance sheet consists of the following:



(In thousands)	December 30, 2017			December 31, 2016
Deferred Tax Asset:
Foreign, state, and alternative minimum tax credit carryforwards	$	185		$	161
Reserves and accruals	4,455			4,842
Net operating loss carryforwards	15,161			13,694
Inventory basis difference	3,265			3,005
Research and development	88			75
Employee compensation	2,610			4,966
Allowance for doubtful accounts	505			488
Revenue recognition	—			636
Other	59			249
Deferred tax asset, gross	26,328			28,116
Less: valuation allowance	(10,835		)	(10,863		)
Deferred tax asset, net	15,493			17,253
Deferred Tax Liability:
Goodwill and intangible assets	(32,120		)	(21,853		)
Fixed asset basis difference	(4,213		)	(4,325		)
Provision for unremitted foreign earnings	(2,718		)	—
Other	(554		)	(1,199		)
Deferred tax liability	(39,605		)	(27,377		)
Net deferred tax liability	$	(24,112	)	$	(10,124	)

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits at year-end 2017 and year-end 2016 is as follows:



(In thousands)	December 30, 2017			December 31, 2016
Unrecognized Tax Benefits, Beginning of Year	$	5,467		$	5,052
Gross Increases—Tax Positions in Prior Periods	4			403
Gross Decreases—Tax Positions in Prior Periods	(22		)	(23		)
Gross Increases—Current-period Tax Positions	2,229			480
Lapses of Statutes of Limitations	(11		)	(359		)
Currency Translation	176			(86		)
Unrecognized Tax Benefits, End of Year	$	7,843		$	5,467