Income Taxes (Tables)

12 Months Ended

Dec. 26, 2020

Schedule of components of income tax expense (benefit)

Domestic and foreign income (loss) before income taxes is as follows:


(in thousands)	2020		2019		2018
Domestic	$	(16,732)	$	(11,970)	$	(49,995)
Foreign	177,985		177,854		254,937
Income before income taxes	$	161,253	$	165,884	$	204,942

Federal, state and foreign income tax expense (benefit) consists of the following:


(in thousands)	2020		2019		2018
Current:
Federal	$	437	$	(3,495)	$	(3,193)
State	203		834		119
Foreign	33,841		30,610		48,130
Subtotal	34,481		27,949		45,056
Deferred:
Federal and State	(5,354)		1,839		(3,896)
Foreign	2,140		(2,986)		(783)
Subtotal	(3,214)		(1,147)		(4,679)
Provision for income taxes	$	31,267	$	26,802	$	40,377

Schedule of effective income tax rate reconciliation

A reconciliation between income taxes computed on income before income taxes at the federal statutory rate and the provision for income taxes is provided below:


(in thousands)	2020		2019		2018
Tax expense at statutory rate of 21%	$	33,863	$	34,836	$	43,038
Non-U.S. income tax rate differential	(19,730)		(22,457)		(20,472)
Tax impact of non-deductible goodwill impairment charge	5,642		—		—
Tax on unremitted earnings	3,955		2,136		4,660
Net impact associated with the GILTI tax provisions	3,731		6,469		5,075
Non-U.S. losses and expenses with no tax benefit	2,774		6,570		3,107
Certain changes in unrecognized tax benefits and related accrued interest	2,160		(1,468)		208
State and local taxes, net of federal tax benefit	(584)		1,080		(1,238)
Nondeductible professional fees	236		195		1,001
2017 Toll Charge (2018 adjustment)	—		—		2,278
Provisional Tax Act impact other than Toll Charge (2018 adjustment)	—		—		966
Other, net	(780)		(559)		1,754
Provision for income taxes	$	31,267	$	26,802	$	40,377

Schedule of deferred tax assets and liabilities

Significant components of the company’s deferred tax assets and liabilities at December 26, 2020 and December 28, 2019, are as follows:


(in thousands)	2020		2019
Deferred tax assets:
Accrued expenses and reserves	$	31,123	$	28,294
Domestic and non-U.S. net operating loss carryforwards	24,763		10,511
Non-U.S. interest expense carryforwards	10,352		5,324
U.S. research credit carryforwards	3,724		2,581
Capitalized expenses	4,178		2,400
U.S. foreign tax credit carryforwards	772		1,320
Other	117		1,261
Gross deferred tax assets	75,029		51,691
Less: Valuation allowance	(13,131)		(5,957)
Total deferred tax assets	61,898		45,734

Deferred tax liabilities:
Excess of book basis over the tax basis for intangible assets and goodwill	76,472		71,229
Tax on unremitted earnings	14,223		12,968
Unrealized foreign currency exchange gains	5,719		—
Excess of book basis over the tax basis for property, plant, and equipment	4,394		3,231
Total deferred tax liabilities	100,808		87,428
Net deferred tax liabilities	$	38,910	$	41,694

Schedule of unrecognized tax benefits roll forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits as of December 26, 2020, December 28, 2019, and December 29, 2018 is as follows:


(in thousands)	Unrecognized Tax Benefits
Balance at December 29, 2018	$	18,259
Additions for tax positions taken in the current year	1,305
Decreases due to a lapse in the statute of limitations	(2,758)
Other	(85)
Balance at December 28, 2019	16,721
Additions for tax positions taken in the current year	700
Decreases due to a lapse in the statute of limitations	(103)
Other	119
Balance at December 26, 2020	17,437