Income Taxes (Tables)

12 Months Ended

Jan. 01, 2022

Income Tax Disclosure [Abstract]

Schedule of components of income tax expense (benefit)

Domestic and foreign income (loss) before income taxes is as follows:

 

(in thousands)	2021		2020		2019
Domestic	$	13,746	$	(16,732)	$	(11,970)
Foreign	327,279		177,985		177,854
Income before income taxes	$	341,025	$	161,253	$	165,884

Federal, state and foreign income tax expense (benefit) consists of the following:

 

(in thousands)	2021		2020		2019
Current:
Federal	$	4,832	$	437	$	(3,495)
State	1,401		203		834
Foreign	59,006		33,841		30,610
Subtotal	65,239		34,481		27,949
Deferred:
Federal and State	(9,658)		(5,354)		1,839
Foreign	1,638		2,140		(2,986)
Subtotal	(8,020)		(3,214)		(1,147)
Provision for income taxes	$	57,219	$	31,267	$	26,802

Schedule of effective income tax rate reconciliation

A reconciliation between income taxes computed on income before income taxes at the federal statutory rate and the provision for income taxes is provided below: 

(in thousands)	2021		2020		2019
Tax expense at statutory rate of 21%	$	71,615	$	33,863	$	34,836
Non-U.S. income tax rate differential	(31,414)		(19,730)		(22,457)
Non-U.S. losses and expenses with no tax benefit	7,820		2,774		6,570
Tax on unremitted earnings	7,585		3,955		2,136
Certain changes in unrecognized tax benefits and related accrued interest	4,263		2,160		(1,468)
Net impact associated with the GILTI tax provisions	(238)		3,731		6,469
State and local taxes, net of federal tax benefit	(172)		(584)		1,080
Tax impact of non-deductible goodwill impairment charge	—		5,642		—
Other, net	(2,240)		(544)		(364)
Provision for income taxes	$	57,219	$	31,267	$	26,802

Schedule of deferred tax assets and liabilities

Significant components of the company’s deferred tax assets and liabilities at January 1, 2022 and December 26, 2020, are as follows: 

(in thousands)	2021		2020
Deferred tax assets:
Accrued expenses and reserves	$	36,168	$	31,123
Domestic and non-U.S. net operating loss carryforwards	27,818		24,763
Domestic and non-U.S. interest expense carryforwards	16,089		10,352
Excess of tax basis over the book basis for intangible assets and goodwill	5,636		—
Capitalized expenses	4,878		4,178
U.S. research and other general business tax credit carryforwards	1,104		3,724
U.S. foreign tax credit carryforwards	980		772
Other	183		117
Gross deferred tax assets	92,856		75,029
Less: Valuation allowance	(34,869)		(13,131)
Total deferred tax assets	57,987		61,898
Deferred tax liabilities:
Excess of book basis over the tax basis for intangible assets and goodwill	98,046		76,472
Tax on unremitted earnings	15,467		14,223
Unrealized foreign currency exchange gains	73		5,719
Excess of book basis over the tax basis for property, plant, and equipment	12,563		4,394
Total deferred tax liabilities	126,149		100,808
Net deferred tax liabilities	$	68,162	$	38,910

Schedule of unrecognized tax benefits roll forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits as of January 1, 2022, December 26, 2020, and December 28, 2019 is as follows:

 

(in thousands)	Unrecognized Tax Benefits
Balance at December 28, 2019	$	16,721
Additions for tax positions taken in the current year	700
Decreases due to a lapse in the statute of limitations	(103)
Other	119
Balance at December 26, 2020	17,437
Additions for tax positions related to pre-acquisition periods of acquired subsidiaries	3,260
Additions for tax positions taken in the current year	1,587
Additions for tax positions taken in the prior year	1,100
Other	61
Balance at January 1, 2022	23,445