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Income Taxes
6 Months Ended
Jul. 02, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The income tax provision for the three and six months ended July 2, 2017, was $5.4 million, or an effective tax rate of 26.9%, and $12.9 million, or an effective tax rate of 29.7%, respectively. The income tax provision for the three and six months ended July 3, 2016, was $9.4 million, or an effective tax rate of 37.0%, and $18.3 million, or an effective tax rate of 36.0%, respectively. The effective tax rate for the three and six months ended July 2, 2017 compared to the three and six months ended July 3, 2016, decreased mainly due to lower pre-tax earnings and differences in the accounting treatment of excess tax benefits related to stock awards. The Company adopted ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting" on January 1, 2017, which requires excess tax benefits or deficiencies to be reflected in the unaudited condensed consolidated statements of operations as a component of the provision for income taxes whereas they previously were recorded in equity. Total excess tax benefits recognized in the three and six months ended July 2, 2017 was $1.0 million and $1.8 million, respectively. Additionally, for the three months ended July 2, 2017, the Company had a one-time benefit related to the geographic distribution of earnings for tax purposes of $0.4 million. The Company is subject to income taxes in the U.S. and numerous foreign jurisdictions. The future foreign tax rate could be affected by changes in the composition in earnings in countries with tax rates differing from the U.S. federal rate. The Company is under examination in various U.S. and foreign jurisdictions.

The Company files income tax returns in the U.S. federal jurisdiction as well as various state, local, and foreign jurisdictions. Due to the uncertain nature of ongoing tax audits, the Company has recorded its liability for uncertain tax positions as part of its long-term liability as payments cannot be anticipated over the next twelve months. The existing tax positions of the Company continue to generate an increase in the liability for uncertain tax positions. The liability for uncertain tax positions may be reduced for liabilities that are settled with taxing authorities or on which the statute of limitations could expire without assessment from tax authorities. The possible reduction in liabilities for uncertain tax positions resulting from the expiration of statutes of limitation in multiple jurisdictions in the next twelve months is approximately $1.0 million, excluding the interest, penalties and the effect of any related deferred tax assets or liabilities.