Income Taxes (Tables)

12 Months Ended

Dec. 29, 2019

Schedule of Income Before Taxes on Income

Income before taxes on income consisted of the following:



	FISCAL YEAR
	2019		2018		2017
	(in thousands)
U.S. operations	$	46,463	$	35,728	$	53,407
Foreign operations	55,353		19,263		47,132

Income before taxes	$	101,816	$	54,991	$	100,539

Schedule of Provisions for Federal, Foreign and State Income Taxes

Provisions for federal, foreign and state income taxes in the consolidated statements of operations consisted of the following components:



	FISCAL YEAR
	2019			2018			2017
	(in thousands)
Current expense/(benefit):
Federal	$	8,414		$	(3,549	)	$	10,245
Foreign	14,513			14,548			11,923
State	2,312			2,628			1,414
Current expense	25,239			13,627			23,582

Deferred expense/(benefit):
Federal	(625		)	2,145			20,467
Foreign	(2,198		)	(11,228		)	1,214
State	200			194			2,030
Deferred expense/(benefit)	(2,623		)	(8,889		)	23,711

Total income tax expense	$	22,616		$	4,738		$	47,293

Schedule of Effective Income Tax Rate Reconciliation

The following summary reconciles income taxes at the U.S. federal statutory rate of 21% applicable for 2019 and 2018 and 35% applicable for 2017 to the Company’s actual income tax expense:



	FISCAL YEAR
	2019			2018			2017
	(in thousands)
Income taxes at U.S. federal statutory rate	$	21,381		$	11,548		$	35,189
Increase (decrease) in taxes resulting from:
State income taxes, net of federal tax effect	2,321			2,228			2,055
Non-deductible business expenses	933			1,352			695
Non-deductible employee compensation	1,453			2,566			80
Tax effects of Company owned life insurance	(636		)	235			(1,295		)
Tax effects of Tax Act:
One-time transition tax on foreign earnings	—			(5,000		)	11,707
Remeasurement of net Deferred Tax Asset	—			(1,739		)	3,467
Tax effects of undistributed earnings from foreign subsidiaries not deemed to be indefinitely reinvested	(183		)	61			523
Foreign and U.S. tax effects attributable to foreign operations	783			(2,226		)	(4,575		)
Valuation allowance effect – NOL	133			(79		)	(858		)
Federal tax credits	(700		)	(2,863		)	(632		)
Changes in unrecognized tax benefits	(3,324		)	(1,010		)	874
Other	455			(335		)	63
Income tax expense	$	22,616		$	4,738		$	47,293

Schedule of Deferred Tax Assets and Liabilities

The temporary differences that give rise to significant portions of the deferred tax assets and liabilities are as follows:



	FISCAL YEAR
	2019			2018
	(in thousands)
Deferred tax assets
Lease liability	$	29,782		$	—
Net operating loss carryforwards	3,090			2,349
Derivative instruments	1,638			—
Deferred compensation	20,194			18,945
Inventory	3,200			4,712
Prepaids, accruals and reserves	7,935			6,473
Pensions	9,229			4,290
Other	71			—
Deferred tax asset (gross)	75,139			36,769
Valuation allowance on net operating loss carryforwards	(971		)	(1,067		)
Deferred tax asset (net)	$	74,168		$	35,702

Deferred tax liabilities
Property and equipment	$	23,770		$	24,871
Intangible assets	33,760			18,699
Lease asset	29,301			—
Foreign currency	3,026			2,357
Foreign withholding taxes on unremitted earnings	178			348
Other	—			314
Deferred tax liabilities	90,035			46,589

Net deferred tax liabilities	$	15,867		$	10,887

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits is as follows:



	FISCAL YEAR
	2019			2018			2017
	(in thousands)
Balance at beginning of year	$	28,143		$	29,221		$	27,888
Increases related to tax positions taken during the current year	318			671			627
Increases related to tax positions taken during the prior years	1,093			180			709
Decreases related to tax positions taken during the prior years	(2,809		)	—			—
Decreases related to settlements with taxing authorities	—			—			—
Decreases related to lapse of applicable statute of limitations	(1,266		)	(1,861		)	(462		)
Changes due to foreign currency translation	7			(68		)	459
Balance at end of year	$	25,486		$	28,143		$	29,221