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Income Taxes
9 Months Ended
Dec. 28, 2019
Income Tax Disclosure [Abstract]  
Income Taxes

11. Income Taxes

 

 Miami Division [Member]

The Company files income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to state or foreign income tax examinations by tax authorities for years ending before April 2, 2005. The Company is no longer subject to U.S. federal tax examination by the Internal Revenue Service for years ending before April 2, 2016.

 

The effective income tax rates for the three-month periods ended December 28, 2019 and December 29, 2018, were 17.0% and 15.0%. In addition to discrete items, the effective income tax rates for these periods are different from the U.S. statutory rates due to the foreign-derived intangible income provision and U.S. credit for increasing research activities which decrease the rate and state income taxes which increase the rate.

 

The effective income tax rate for the three-month period ended December 28, 2019 of 17.0% includes $857 of tax benefit associated with share-based compensation. The third quarter provision for fiscal 2020 was also impacted by $567 of tax benefit associated with the decrease in the Company’s unrecognized tax positions related to the statute of limitations expiration. The effective income tax rate without discrete items for the three-month period ended December 28, 2019 would have been 20.9%. The effective income tax rate for the three-month period ended December 29, 2018 of 15.0% includes $4,048 of tax benefit associated with the sale of the Miami division. The third quarter provision for fiscal 2019 was also impacted by $1,469 of tax benefit associated with the decrease in the Company’s unrecognized tax positions, pertaining primarily to items associated with the consolidation and restructuring of the Company’s U.K. manufacturing facility. The third quarter provision for fiscal 2019 also includes $943 tax expense associated with withholding tax on a one-time repatriation of cash from the Company’s foreign operations and $558 of tax benefit associated with share-based compensation. The effective income tax rate without discrete items for the three-month period ended December 29, 2018 would have been 22.3%. The Company believes it is reasonably possible that some of its unrecognized tax positions may be effectively settled within the next twelve months due to the closing of audits and the statute of limitations expiring in varying jurisdictions. The decrease in the Company’s unrecognized tax positions, pertaining primarily to credits and state tax, is estimated to be approximately $487.

 

Income tax expense for the nine-month period ended December 28, 2019 was $18,914 compared to $12,626 for the nine-month period ended December 29, 2018. Our effective income tax rate for the nine-month period ended December 28, 2019 was 17.0% compared to 14.6% for the nine-month period ended December 29, 2018. The effective income tax rate for the nine-month period ended December 28, 2019 of 17.0% includes $3,896 of tax benefit associated with share-based compensation and $477 of tax benefit associated with the decrease in the Company’s unrecognized tax positions related to statute of limitations expiration and $241 of tax benefit associated with other permanent adjustments from filing the Company’s fiscal 2018 foreign tax returns. The effective income tax rate without this benefit and other items for the nine-month period ended December 28, 2019 would have been 21.2%. The effective income tax rate for the nine-month period ended December 29, 2018 of 14.6% includes $4,048 of tax benefit associated with the sale of the Miami division. The effective income tax rate was also impacted by $1,510 of tax benefit associated with the decrease in the Company’s unrecognized tax positions, pertaining primarily to items associated with the consolidation and restructuring of the Company’s U.K. manufacturing facility. The effective rate was also impacted by $943 of tax expense associated with withholding tax on a one-time repatriation of cash from the Company’s foreign operations and $5,063 of tax benefits associated with share-based compensation. The effective income tax rate without discrete items for the nine-month period ended December 29, 2018 would have been 21.6%.