Income Taxes (Tables)
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12 Months Ended |
Jan. 01, 2022 |
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| Income Tax Disclosure [Abstract] |
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| Schedule of Income before Income Tax, Domestic and Foreign |
For financial reporting purposes, income before income taxes includes the following components:
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For the year ended |
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January 1, 2022 |
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January 2, 2021 |
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December 28, 2019 |
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United States |
|
$ |
87,122 |
|
|
$ |
30,619 |
|
|
$ |
51,007 |
|
Foreign |
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|
44,057 |
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(6,572 |
) |
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|
24,300 |
|
Total |
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$ |
131,179 |
|
|
$ |
24,047 |
|
|
$ |
75,307 |
|
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| Schedule of Components of Income Tax Provision (Benefit) |
The components of the income tax provision (benefit) are as follows:
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For the year ended |
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January 1, 2022 |
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January 2, 2021 |
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December 28, 2019 |
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Current tax expense (benefit): |
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United States |
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$ |
10,727 |
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$ |
3,251 |
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$ |
7,380 |
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State and local |
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3,129 |
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|
1,166 |
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(388 |
) |
Foreign |
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17,245 |
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7,430 |
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|
9,107 |
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Total current |
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31,101 |
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11,847 |
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|
16,099 |
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Deferred tax expense (benefit): |
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United States |
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(1,126 |
) |
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|
3,190 |
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|
665 |
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State and local |
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230 |
|
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(326 |
) |
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|
58 |
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Foreign |
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(3,622 |
) |
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(4,882 |
) |
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(1,783 |
) |
Total deferred |
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(4,518 |
) |
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(2,018 |
) |
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(1,060 |
) |
Total income tax provision |
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$ |
26,583 |
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|
$ |
9,829 |
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|
$ |
15,039 |
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| Schedule of Effective Income Tax Rate Reconciliation |
The reconciliation between the effective income tax rate and the U.S. federal statutory rate is as follows:
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For the year ended |
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January 1, 2022 |
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January 2, 2021 |
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December 28, 2019 |
|
U.S. federal taxes at statutory rate |
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$ |
27,547 |
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|
$ |
5,057 |
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|
$ |
15,815 |
|
Increase (decrease) |
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986(c) FX gain/(loss) |
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— |
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— |
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(281 |
) |
Foreign withholding tax |
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93 |
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326 |
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— |
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Capitalized transaction costs |
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— |
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387 |
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— |
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Foreign income taxed at different rate |
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3,573 |
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1,363 |
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1,446 |
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FDII deduction |
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(3,220 |
) |
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(1,265 |
) |
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(1,790 |
) |
Changes in estimates related to prior years including foreign |
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(206 |
) |
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(2,530 |
) |
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— |
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Goodwill impairment |
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— |
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6,693 |
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— |
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State and local taxes, net |
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2,702 |
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|
595 |
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(73 |
) |
Current year tax credits |
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(490 |
) |
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(674 |
) |
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(663 |
) |
Foreign deferred other true up |
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(1,628 |
) |
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— |
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— |
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Change in reserve |
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(1,930 |
) |
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(453 |
) |
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|
957 |
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Foreign patent box benefit |
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— |
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— |
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(1,213 |
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Increase in valuation allowance |
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— |
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— |
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|
116 |
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Other |
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142 |
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|
330 |
|
|
|
725 |
|
Income tax provision |
|
$ |
26,583 |
|
|
$ |
9,829 |
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|
$ |
15,039 |
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| Schedule of Deferred Tax Assets and Liabilities |
Deferred income tax assets and liabilities are provided to reflect the future tax consequences of differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of January 1, 2022 and January 2, 2021, are presented below:
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January 1, 2022 |
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January 2, 2021 |
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Deferred tax assets: |
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Foreign tax benefit of U.S. reserves |
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$ |
1,849 |
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$ |
5,086 |
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Net operating losses |
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5,186 |
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|
6,159 |
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Inventory |
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|
3,029 |
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|
2,495 |
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Intangible assets and goodwill |
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|
675 |
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|
675 |
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Accrued expenses and other |
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6,618 |
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|
5,485 |
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Other comprehensive income |
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3,411 |
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— |
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Total deferred tax assets |
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20,768 |
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|
19,900 |
|
Less: Valuation allowance |
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(428 |
) |
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(428 |
) |
Net deferred tax assets |
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20,340 |
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19,472 |
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Deferred tax liabilities: |
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Depreciation |
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(9,572 |
) |
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(7,493 |
) |
Intangible assets and goodwill |
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(79,352 |
) |
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(82,126 |
) |
Other deferred tax liabilities |
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(318 |
) |
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(1,564 |
) |
Other comprehensive income |
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— |
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(508 |
) |
Total deferred tax liabilities |
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(89,242 |
) |
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(91,691 |
) |
Net deferred tax liabilities |
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$ |
(68,902 |
) |
|
$ |
(72,219 |
) |
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| Schedule of Unrecognized Tax Benefits Roll Forward |
The following is a roll-forward of the Company’s unrecognized tax benefits:
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Unrecognized tax benefits - December 29, 2018 |
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$ |
6,113 |
|
Increases from positions taken during prior periods |
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|
1,121 |
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Increases from positions taken during current period |
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|
817 |
|
Settled positions |
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|
— |
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Lapse of statute of limitations |
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|
— |
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Unrecognized tax benefits - December 28, 2019 |
|
$ |
8,051 |
|
Increases from positions taken during prior periods |
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|
656 |
|
Increases from positions taken during current period |
|
|
459 |
|
Current year acquisitions |
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|
3,170 |
|
Settled positions |
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(947 |
) |
Lapse of statute of limitations |
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|
— |
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Unrecognized tax benefits - January 2, 2021 |
|
$ |
11,389 |
|
Increases from positions taken during prior periods |
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(175 |
) |
Increases from positions taken during current period |
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|
610 |
|
Current year acquisitions |
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|
— |
|
Settled positions |
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|
— |
|
Lapse of statute of limitations |
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|
(2,824 |
) |
Unrecognized tax benefits - January 1, 2022 |
|
$ |
9,000 |
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