Income Taxes (Tables)

12 Months Ended

Jan. 02, 2022

Schedule of Income (Loss) Before Income Taxes

Income (loss) before income taxes consisted of the following:


	Fiscal Year
	2021		2020		2019
	(in thousands)
U.S. operations	$	4,460	$	(7,104)	$	46,463
Foreign operations	68,173		(72,316)		55,353
Income (loss) before income taxes	$	72,633	$	(79,420)	$	101,816

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
	2021		2020		2019
	(in thousands)
Current expense (benefit):
Federal	$	1,987	$	(22,976)	$	8,414
Foreign	21,372		14,822		14,513
State	1,418		529		2,312
Current expense (benefit)	24,777		(7,625)		25,239

Deferred expense (benefit):
Federal	(2,841)		1,787		(625)
Foreign	(3,846)		(2,422)		(2,198)
State	(691)		769		200
Deferred expense (benefit)	(7,378)		134		(2,623)

Total income tax expense (benefit)	$	17,399	$	(7,491)	$	22,616

Schedule of Effective Income Tax Rate Reconciliation

The following summary reconciles income taxes at the U.S. federal statutory rate of 21% applicable for all periods presented to the Company’s actual income tax expense:


	Fiscal Year
	2021		2020		2019
	(in thousands)
Income taxes at U.S. federal statutory rate	$	15,253	$	(16,678)	$	21,381
Increase (decrease) in taxes resulting from:
State income taxes, net of federal tax effect	(87)		(2,033)		2,321
Non-deductible business expenses	330		1,792		933
Non-deductible employee compensation	1,213		(210)		1,453
Tax effects of Company-owned life insurance	(762)		(898)		(636)
Tax effects of undistributed earnings from foreign subsidiaries not deemed to be indefinitely reinvested	1,219		748		(183)
Foreign and U.S. tax effects attributable to foreign operations	1,748		(11,991)		783
Valuation allowance effect	1,349		12,927		133
Research and development tax credits	(793)		(780)		(700)
Goodwill impairment	—		24,464		—
Unrecognized tax benefits	(2,663)		(14,962)		(3,324)
Other	592		130		455
Income tax expense (benefit)	$	17,399	$	(7,491)	$	22,616

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:


	End of Fiscal Year
	2021		2020
	(in thousands)
Deferred tax assets
Lease liability	$	25,426	$	28,094
Net operating loss and interest carryforwards	5,962		4,031
Federal tax credit carryforwards	10,054		10,412
Derivative instruments	1,126		2,680
Deferred compensation	19,487		20,244
Inventory	3,100		4,004
Prepaids, accruals and reserves	8,777		3,659
Capitalized costs	4,805		—
Pensions	6,431		11,485
Other	175		50
Deferred tax asset, gross	85,343		84,659
Valuation allowance	(15,338)		(13,919)
Deferred tax asset, net	$	70,005	$	70,740

Deferred tax liabilities
Property and equipment	$	25,352	$	27,322
Intangible assets	30,736		30,745
Lease asset	24,856		27,268
Foreign currency	458		606
Foreign withholding and U.S. state taxes on unremitted earnings	1,332		931
Deferred tax liabilities	82,734		86,872

Net deferred tax liabilities	$	12,729	$	16,132

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
	2021		2020		2019
	(in thousands)
Balance at beginning of year	$	10,799	$	25,486	$	28,143
Increases related to tax positions taken during the current year	265		271		318
Increases related to tax positions taken during the prior years	198		536		1,093
Decreases related to tax positions taken during the prior years	—		(673)		(2,809)
Decreases related to lapse of applicable statute of limitations	(2,309)		(14,992)		(1,266)
Changes due to settlements	(836)		—		—
Changes due to foreign currency translation	103		171		7
Balance at end of year	$	8,220	$	10,799	$	25,486