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Income Taxes (Tables)
12 Months Ended
Dec. 30, 2022
Income Tax Disclosure [Abstract]  
Provision for Income Taxes

The provision for income taxes consisted of the following:

 

Year Ended

 

 

December 30,

 

 

December 31,

 

 

December 25,

 

(In millions)

2022

 

 

2021

 

 

2020

 

Current:

 

 

 

 

 

 

 

 

Federal

$

(0.8

)

 

$

-

 

 

$

(0.1

)

State

 

1.1

 

 

 

1.0

 

 

 

0.9

 

Foreign

 

37.5

 

 

 

30.0

 

 

 

18.1

 

Total current

 

37.8

 

 

 

31.0

 

 

 

18.9

 

Deferred:

 

 

 

 

 

 

 

 

Federal

 

0.3

 

 

 

0.3

 

 

 

0.3

 

State

 

0.2

 

 

 

0.4

 

 

 

0.5

 

Foreign

 

(0.4

)

 

 

(3.8

)

 

 

(0.4

)

Total deferred

 

0.1

 

 

 

(3.1

)

 

 

0.4

 

Total provision

$

37.9

 

 

$

27.9

 

 

$

19.3

 

U.S. and Foreign Components of Income before Income Taxes

Income before provision for income taxes was generated from the following geographic areas:

 

Year Ended

 

 

December 30,

 

 

December 31,

 

 

December 25,

 

(In millions)

2022

 

 

2021

 

 

2020

 

United States

$

(61.9

)

 

$

(42.1

)

 

$

(24.5

)

Foreign

 

150.2

 

 

 

196.4

 

 

 

124.2

 

Total pretax income

$

88.3

 

 

$

154.3

 

 

$

99.7

 

Effective Tax Rate Differs from U.S. Federal Statutory Tax Rate

The effective tax rate differs from the U.S. federal statutory tax rate as follows:

 

 

Year Ended

 

 

 

 

December 30,

 

 

 

December 31,

 

 

 

December 25,

 

 

 

 

2022

 

 

 

2021

 

 

 

2020

 

 

Federal income tax provision at
   statutory rate

 

 

21.0

 

%

 

 

21.0

 

%

 

 

21.0

 

%

State income taxes, net of federal
   benefit

 

 

(1.6

)

%

 

 

(0.1

)

%

 

 

0.6

 

%

Effect of foreign operations

 

 

(6.7

)

%

 

 

(10.3

)

%

 

 

(8.3

)

%

Change in valuation allowance

 

 

24.3

 

%

 

 

2.9

 

%

 

 

(0.1

)

%

Foreign income inclusions

 

 

4.0

 

%

 

 

4.9

 

%

 

 

4.6

 

%

Nondeductible executive compensation

 

 

1.8

 

%

 

 

1.8

 

%

 

 

-

 

%

Excess tax benefits related to stock-based compensation

 

 

(0.3

)

%

 

 

(3.1

)

%

 

 

-

 

%

Other

 

 

0.4

 

%

 

 

1.0

 

%

 

 

1.5

 

%

Effective Tax Rate

 

 

42.9

 

%

 

 

18.1

 

%

 

 

19.3

 

%

 

Significant Components of Deferred Tax Assets and Liabilities

Significant components of deferred tax assets and liabilities are as follows:

 

 

Year Ended

 

 

 

December 30,

 

 

December 31,

 

(In millions)

 

2022

 

 

2021

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Interest expense limitation

 

$

 

19.1

 

 

$

 

13.0

 

Operating lease liabilities

 

 

 

14.7

 

 

 

 

11.4

 

Intangibles

 

 

 

13.1

 

 

 

 

12.9

 

Tax loss carryforwards

 

 

 

15.4

 

 

 

 

11.2

 

Capitalized research and development costs

 

 

 

7.0

 

 

 

 

 

Inventory valuation and basis difference

 

 

 

4.0

 

 

 

 

7.4

 

Accruals

 

 

 

5.9

 

 

 

 

3.7

 

Tax credits

 

 

 

4.9

 

 

 

 

4.2

 

Other timing differences

 

 

 

5.0

 

 

 

 

4.7

 

 

 

 

 

89.1

 

 

 

 

68.5

 

Valuation allowance

 

 

 

(53.1

)

 

 

 

(30.9

)

Total deferred tax assets

 

 

 

36.0

 

 

 

 

37.6

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Goodwill

 

 

 

(17.4

)

 

 

 

(15.2

)

Operating lease right-of-use assets

 

 

 

(14.5

)

 

 

 

(10.8

)

Intangibles

 

 

 

(10.9

)

 

 

 

(19.7

)

Depreciation

 

 

 

(7.1

)

 

 

 

(8.7

)

Other

 

 

 

(2.3

)

 

 

 

(0.5

)

Total deferred tax liabilities

 

 

 

(52.2

)

 

 

 

(54.9

)

Net deferred tax liabilities

 

$

 

(16.2

)

 

$

 

(17.3

)

Activity Related to Company's Unrecognized Tax Benefits

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

Balance as of December 27, 2019

$

 

1.0

 

Expiration of the statute of limitations for the assessment of taxes

 

 

(0.1

)

Balance at December 25, 2020

$

 

0.9

 

Increases related to prior year tax positions

 

 

0.2

 

Increases related to current year tax positions

 

 

0.7

 

Expiration of the statute of limitations for the assessment of taxes

 

 

(0.2

)

Balance at December 31, 2021

$

 

1.6

 

Increases related to prior year tax positions

 

 

0.1

 

Increases related to current year tax positions

 

 

1.0

 

Balance at December 30, 2022

$

 

2.7