Income Taxes (Tables)

12 Months Ended

Dec. 29, 2019

Income Taxes

Schedule of Domestic and Foreign Components of Income (Loss) Before Income Taxes

The following table presents the domestic and foreign components of income (loss) before income taxes for 2019, 2018 and 2017 (in thousands):

	2019		2018		2017
Domestic (loss) income	$	(16,065)	$	(9,665)	$	122,828
Foreign income		21,111		16,362		17,514
Total income	$	5,046	$	6,697	$	140,342

Summary of the Provision for Income Taxes

A summary of the (benefit) provision for income tax follows (in thousands):

	2019		2018		2017
Current:
Federal	$	(2,734)	$	(5,262)	$	28,951
Foreign		5,077		4,736		4,602
State and local		810		1,530		(234)
Deferred		(3,764)		1,620		498
Total income taxes	$	(611)	$	2,624	$	33,817

Schedule of Significant Deferred Tax Assets (Liabilities)

Significant deferred tax assets (liabilities) follow (in thousands):

	December 29,		December 30,
	2019		2018
Accrued liabilities	$	16,686	$	16,828
Accrued bonuses		2,308		724
Other assets and liabilities		16,244		10,705
Equity awards		7,196		5,862
Lease liability		30,756		—
Other		2,418		2,482
Net operating losses		8,205		1,555
Foreign tax credit carryforwards		10,049		7,230
Total deferred tax assets		93,862		45,386
Valuation allowances		(17,303)		(8,183)
Total deferred tax assets, net of valuation allowances		76,559		37,203
Deferred expenses		(9,521)		(5,970)
Accelerated depreciation		(27,299)		(24,239)
Goodwill		(9,510)		(12,645)
Right-of-use asset		(30,257)		—
Other		(782)		(1,064)
Total deferred tax liabilities		(77,369)		(43,918)
Net deferred liability	$	(810)	$	(6,715)

Schedule of Reconciliation of Income Tax Computed at the U.S. Federal Statutory Rate to Income Tax Expense

The reconciliation of income tax computed at the U.S. federal statutory rate to income tax expense for the years ended December 29, 2019, December 30, 2018 and December 31, 2017 is as follows in both dollars and as a percentage of income before income taxes ($ in thousands):

	2019				2018				2017
	Income Tax		Income		Income Tax		Income		Income Tax		Income
	Expense		Tax Rate		Expense		Tax Rate		Expense		Tax Rate
Tax at U.S. federal statutory rate	$	1,060	21.0	%	$	1,406	21.0	%	$	49,120	35.0	%
State and local income taxes		79	1.6	%		150	2.2	%		2,432	1.7	%
Foreign income taxes		5,058	100.2	%		4,879	72.9	%		5,306	3.8	%
Income of consolidated partnerships
attributable to noncontrolling interests		(177)	(3.5)	%		(371)	(5.6)	%		(1,554)	(1.1)	%
Non-qualified deferred compensation plan
(income) loss		(1,260)	(25.0)	%		483	7.2	%		(1,236)	(0.9)	%
Excess tax (benefits) expense on equity awards		(212)	(4.2)	%		447	6.7	%		(1,879)	(1.4)	%
Preferred stock option mark-to-market adjustment		1,338	26.5	%		—	—	%		—	—	%
Remeasurement of deferred taxes		—	—	%		—	—	%		(7,020)	(5.0)	%
Tax credits		(6,128)	(121.4)	%		(6,945)	(103.7)	%		(6,909)	(4.9)	%
Disposition of China		—	—	%		4,118	61.5	%		—	—	%
Other		(369)	(7.3)	%		(1,543)	(23.0)	%		(4,443)	(3.1)	%
Total	$	(611)	(12.1)	%	$	2,624	39.2	%	$	33,817	24.1	%

Schedule of Reconciliation of the Beginning and Ending Liability for Unrecognized Tax Benefits

The Company had $1.6 million of unrecognized tax benefits at December 29, 2019 which, if recognized, would affect the effective tax rate. A reconciliation of the beginning and ending liability for unrecognized tax benefits excluding interest and penalties is as follows, which is recorded as an other long-term liability (in thousands):

Balance at December 31, 2017	$	2,028
Additions for tax positions of prior years		510
Reductions for tax positions of prior years		(515)
Reductions for lapse of statute of limitations		—
Balance at December 30, 2018		2,023
Additions for tax positions of prior years		179
Reductions for tax positions of prior years		(623)
Reductions for lapse of statute of limitations		—
Balance at December 29, 2019	$	1,579