Income Taxes (Tables)

12 Months Ended

Dec. 30, 2018

Schedule of Income before Income Tax, Domestic and Foreign

The components of income (loss) from continuing operations before income taxes for the years ended December 30, 2018, December 31, 2017, and December 25, 2016 are comprised of the following (in millions):



	2018		2017			2016
Domestic	$	2.2	$	(60.5	)	$	(61.3	)
Foreign	6.5		3.4			9.5
Total	$	8.7	$	(57.1	)	$	(51.8	)

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes from continuing operations for the years ended December 30, 2018, December 31, 2017, and December 25, 2016 are comprised of the following (in millions):



	2018			2017			2016
Federal income taxes:
Current	$	(0.4	)	$	(2.9	)	$	(0.5	)
Deferred	(1.8		)	(9.0		)	3.8
Total Federal	(2.2		)	(11.9		)	3.3
State and local income taxes
Current	0.4			0.5			0.2
Deferred	1.4			(0.3		)	0.7
Total State and local	1.8			0.2			0.9
Foreign income taxes:
Current	4.8			2.0			1.5
Deferred	0.2			(0.5		)	0.1
Total Foreign	5.0			1.5			1.6
Total	$	4.6		$	(10.2	)	$	5.8

Schedule of Income Tax Reconciliation

A reconciliation of the total income tax provision (benefit) to the amount computed by applying the statutory federal income tax rate of 21% to the income from continuing operations before income taxes for the year ended December 30, 2018, and applying the statutory federal income tax rate of 35% to the loss from continuing operations before income taxes for the years ended December 31, 2017 and December 25, 2016 is as follows (in millions):



	2018			2017			2016
Income tax (benefit) at federal statutory rate	$	1.8		$	(20.0	)	$	(18.1	)
State taxes, net of federal tax benefit and valuation allowance	0.9			0.5			0.1
Difference in tax rates between U.S. and foreign	0.7			—			0.1
Increase (decrease) in valuation allowance	4.7			(45.6		)	18.9
Nondeductible expense	0.6			1.1			0.7
Increase in reserve for uncertain tax positions	4.0			1.3			0.1
Changes to indefinite life items and separate state deferred taxes	(0.7		)	(1.8		)	4.0
One-time transition tax on previously undistributed foreign earnings	2.2			6.2			—
Goodwill impairment	—			8.1			—
Decrease in deferred taxes related to disposition	(9.6		)	—			—
Impact related to the 2017 Tax Act	—			40.0			—
Total	$	4.6		$	(10.2	)	$	5.8

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as of December 30, 2018 and December 31, 2017 are as follows (in millions):



	2018			2017
Deferred tax assets:
Allowance for doubtful accounts	$	0.6		$	0.2
Sundry accruals	1.1			1.5
Vacation accrual	2.7			3.2
Stock-based compensation	4.2			3.1
Payroll related accruals	2.4			2.1
Lease accruals	2.0			2.5
Investments	1.3			1.3
Net operating loss carryforwards	81.7			95.7
Capital loss carryforwards	1.9			—
Tax credit carryforwards	9.9			9.5
Deferred revenue	1.5			1.9
Reserves and other	10.8			6.1
	120.1			127.1
Valuation allowance	(92.2		)	(87.5		)
Total deferred tax assets, net of valuation allowance	27.9			39.6
Deferred tax liabilities:
Unearned revenue	(23.9		)	(38.8		)
Other intangibles	(8.9		)	(5.4		)
Property and equipment, principally due to differences in depreciation	(0.9		)	(0.7		)
Other	(1.2		)	(1.7		)
Total deferred tax liabilities	(34.9		)	(46.6		)
Net deferred tax liability	$	(7.0	)	$	(7.0	)

Schedule of Unrecognized Tax Benefits Roll Forward

The following table summarizes the activity related to the Company’s unrecognized tax benefits (in millions):



Balance as of December 27, 2015	$	17.2
Increases related to prior periods	1.4
Increases related to current year tax positions	0.2
Decreases related to disposition	(0.2		)
Balance as of December 25, 2016	18.6
Increases related to prior periods	0.4
Increases related to current year tax positions	1.1
Expiration of applicable statutes of limitations	(0.6		)
Decrease in federal tax rate	(3.9		)
Balance as of December 31, 2017	15.6
Increases related to prior periods	0.5
Increases related to current year tax positions	4.0
Expiration of applicable statutes of limitations	(0.4		)
Decreases related to prior year tax positions	(0.3		)
Decreases related to disposition	(1.7		)
Balance as of December 30, 2018	$	17.7