Income Taxes (Tables)

12 Months Ended

Dec. 31, 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)	2022		2021		2020
Domestic	$	32,462	$	13,746	$	(16,732)
Foreign	410,582		327,279		177,985
Income before income taxes	$	443,044	$	341,025	$	161,253

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

 

(in thousands)	2022		2021		2020
Current:
Federal	$	12,423	$	4,832	$	437
State	2,183		1,401		203
Foreign	77,551		59,006		33,841
Subtotal	92,157		65,239		34,481
Deferred:
Federal and State	(9,182)		(9,658)		(5,354)
Foreign	(13,237)		1,638		2,140
Subtotal	(22,419)		(8,020)		(3,214)
Provision for income taxes	$	69,738	$	57,219	$	31,267

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)	2022		2021		2020
Tax expense at statutory rate of 21%	$	93,039	$	71,615	$	33,863
Non-U.S. income tax rate differential	(41,731)		(31,414)		(19,730)
One-time tax deductions for stock of subsidiaries	(11,495)		—		—
Tax on unremitted earnings	10,870		7,585		3,955
Non-U.S. losses and expenses with no tax benefit	10,660		7,820		2,774
Net impact associated with U.S. tax on Non-U.S. income, including GILTI	2,546		(238)		3,731
Certain changes in unrecognized tax benefits and related accrued interest	1,839		4,263		2,160
State and local taxes, net of federal tax benefit	215		(172)		(584)
Tax impact of non-deductible goodwill impairment charge	—		—		5,642
Other, net	3,795		(2,240)		(544)
Provision for income taxes	$	69,738	$	57,219	$	31,267

Schedule of deferred tax assets and liabilities

Significant components of the Company’s deferred tax assets and liabilities at December 31, 2022 and January 1, 2022, are as follows: 

(in thousands)	2022		2021
Deferred tax assets:
Accrued expenses and reserves	$	49,138	$	36,168
Net operating loss carryforwards	30,403		27,818
Interest expense carryforwards	33,507		16,089
Capitalized expenses	11,632		4,878
U.S. foreign tax credit carryforwards	3,385		980
U.S. research and other general business tax credit carryforwards	2,076		1,104
Excess of tax basis over the book basis for intangible assets and goodwill	404		5,636
Other	—		183
Deferred tax assets	130,545		92,856
Less: Valuation allowance	(37,001)		(34,869)
Total deferred tax assets	93,544		57,987
Deferred tax liabilities:
Excess of book basis over the tax basis for intangible assets and goodwill	143,542		98,046
Excess of book basis over the tax basis for property, plant, and equipment	18,489		12,563
Tax on unremitted earnings	16,282		15,467
Unrealized foreign currency exchange gains	1,094		73
Total deferred tax liabilities	179,407		126,149
Net deferred tax liabilities	$	85,863	$	68,162

Schedule of unrecognized tax benefits roll forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits as of December 31, 2022, January 1, 2022, and December 26, 2020 is as follows:

 

(in thousands)	Unrecognized Tax Benefits
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
Additions for tax positions related to pre-acquisition periods of acquired subsidiaries	6,726
Additions for tax positions taken in the current year	2,153
Decreases for tax positions taken in the prior year	(957)
Decreases for lapses in statute of limitations	(758)
Other	(235)
Balance at December 31, 2022	$	30,374