INCOME TAXES (Tables)

12 Months Ended

Apr. 02, 2022

Schedule Domestic and Foreign Income Before Provision for Income Tax

Domestic and foreign income (loss) before (benefit) provision for income tax is as follows:


(In thousands)	2022		2021		2020
Domestic	$	(5,219)	$	5,526	$	5,344
Foreign	68,848		67,387		81,808
Total	$	63,629	$	72,913	$	87,152

Schedule of Income Tax Provision Components

The income tax (benefit) provision from continuing operations contains the following components:


(In thousands)	2022		2021		2020
Current
Federal	$	3,586	$	(289)	$	3,834
State	1,682		1,256		1,054
Foreign	9,940		13,319		12,467
Total current	$	15,208	$	14,286	$	17,355
Deferred
Federal	3,455		(12,906)		(8,257)
State	310		(2,436)		280
Foreign	1,281		(5,500)		1,248
Total deferred	$	5,046	$	(20,842)	$	(6,729)
Total	$	20,254	$	(6,556)	$	10,626

Schedule of Net Deferred Tax Asset

Tax effected, significant temporary differences comprising the net deferred tax liability are as follows:


(In thousands)	April 2, 2022		April 3, 2021
Deferred tax assets:
Depreciation	$	623	$	1,054
Amortization of intangibles	1,243		1,167
Inventory	6,841		5,166

Accruals, reserves and other deferred tax assets	13,020		17,274
Net operating loss carry-forward	30,212		38,827
Stock based compensation	4,422		4,374
Operating lease liabilities	15,777		16,941
Tax credit carry-forward, net	6,452		5,073
Capitalized research expenses	6,733		4,291
Gross deferred tax assets	85,323		94,167
Less valuation allowance	(14,077)		(11,081)
Total deferred tax assets (after valuation allowance)	71,246		83,086
Deferred tax liabilities:
Depreciation	(15,727)		(10,470)
Amortization of goodwill and intangibles	(63,004)		(68,802)
Unremitted earnings	(1,254)		(1,060)
Operating lease assets	(12,877)		(14,722)
Debt discount	—		(19,868)
Other deferred tax liabilities	(2,643)		(5,980)
Total deferred tax liabilities	(95,505)		(120,902)
Net deferred tax liabilities	$	(24,259)	$	(37,816)

Schedule of Effective Income Tax Rate Reconciliation


(In thousands)	2022				2021				2020
Tax at federal statutory rate	$	13,362	21.0	%	$	15,312	21.0	%	$	18,302	21.0	%

Difference between U.S. and foreign tax	(3,799)		(6.0)	%	(7,049)		(9.7)	%	(6,688)		(7.7)	%
State income taxes net of federal benefit	1,384		2.2	%	(924)		(1.3)	%	(342)		(0.4)	%
Change in uncertain tax positions	(777)		(1.2)	%	1,172		1.6	%	785		0.9	%

Global intangible low taxed income	3,608		5.7	%	(758)		(1.0)	%	5,431		6.2	%
Unremitted earnings	194		0.3	%	257		0.4	%	40		—	%
Deferred statutory rate changes	40		0.1	%	(243)		(0.3)	%	1,091		1.3	%

Non-deductible executive compensation	1,080		1.7	%	2,238		3.1	%	2,423		2.8	%
Non-deductible expenses	741		1.2	%	2,038		2.8	%	1,050		1.2	%
Stock compensation benefits	2,070		3.3	%	(5,504)		(7.5)	%	(12,133)		(13.9)	%
Research credits	(1,496)		(2.4)	%	(1,230)		(1.7)	%	(2,085)		(2.4)	%
Contingent consideration	1,880		3.0	%	—		—	%	—		—	%
Intercompany sale of intellectual property	—		—	%	(7,550)		(10.4)	%	—		—	%


Valuation allowance	254		0.2	%	(3,144)		(4.4)	%	2,939		3.4	%
Other, net	1,713		2.7	%	(1,171)		(1.6)	%	(187)		(0.2)	%
Income tax (benefit) provision	$	20,254	31.8	%	$	(6,556)	(9.0)	%	$	10,626	12.2	%

Summary of Gross Unrecognized Tax Benefits

The following table summarizes the activity related to its gross unrecognized tax benefits for the fiscal years ended April 2, 2022, April 3, 2021 and March 28, 2020:


(In thousands)	April 2, 2022		April 3, 2021		March 28, 2020
Beginning Balance	$	6,107	$	4,620	$	4,657
Additions for tax positions of current year	219		335		180
Additions for tax positions of prior years	—		1,194		880
Reductions of tax positions	(808)		(42)		(539)
Settlements of tax positions	(1,579)		—		(558)
Closure of statute of limitations	—		—		—
Ending Balance	$	3,939	$	6,107	$	4,620