Helios Technologies Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 28, 2024

Schedule of Income before Income Tax, Domestic and Foreign

For financial reporting purposes, income before income taxes includes the following components:


	For the year ended
	December 28, 2024		December 30, 2023		December 31, 2022
United States	$	10.8	$	12.8	$	71.3
Foreign		39.7		36.4		50.5
Total	$	50.5	$	49.2	$	121.8

Schedule of Components of Income Tax Provision (Benefit)

The components of the income tax provision (benefit) are as follows:


	For the year ended
	December 28, 2024			December 30, 2023			December 31, 2022
Current tax expense (benefit):
United States	$	6.7		$	6.7		$	12.3
State and local		0.5			1.5			0.4
Foreign		12.9			11.4			15.9
Total current		20.1			19.6			28.6
Deferred tax expense (benefit):
United States		(6.5	)		(3.6	)		(0.4	)
State and local		—			(1.4	)		(2.6	)
Foreign		(2.1	)		(2.9	)		(2.2	)
Total deferred		(8.6	)		(7.9	)		(5.2	)
Total income tax provision	$	11.5		$	11.7		$	23.4

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:


	For the year ended
	December 28, 2024			December 30, 2023			December 31, 2022
U.S. federal taxes at statutory rate	$	10.6		$	10.3		$	25.6
Increase (decrease)
Foreign withholding tax		0.1			—			—
Capitalized transaction costs		—			0.2			0.3
Foreign income taxed at different rate		1.5			1.4			1.7
FDII deduction		(1.1	)		(1.2	)		(2.8	)
Changes in estimates related to prior years including foreign		0.8			0.7			0.2
State and local taxes, net		0.5			(0.3	)		(2.3	)
Foreign tax expense		0.7			0.7			1.3
Current year tax credits		(1.1	)		(1.0	)		(0.9	)
Foreign deferred other true up and permanent items		(0.5	)		(1.8	)		(1.0	)
Change in reserve		0.2			0.2			0.2
Excess officer compensation		(0.3	)		1.3			1.4
Change in valuation allowance		(0.7	)		0.7			—
Stock-based compensation		0.5			—			(0.7	)
Other		0.3			0.5			0.4
Income tax provision	$	11.5		$	11.7		$	23.4

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 December 28, 2024 and December 30, 2023, are presented below:


	December 28, 2024			December 30, 2023
Deferred tax assets:
Foreign tax benefit of U.S. reserves	$	1.0		$	1.4
Net operating losses		6.2			6.2
Inventory		3.0			3.7
Intangible assets and goodwill		0.7			0.7
Lease liability		3.9			4.5
Capitalized research expenditures		8.1			8.0
Interest expense limitation carryforward		8.6			3.6
Accrued expenses and other		6.8			6.4
Other comprehensive income		8.9			3.0
Total deferred tax assets		47.2			37.5
Less: Valuation allowance		(2.3	)		(3.0	)
Net deferred tax assets		44.9			34.5
Deferred tax liabilities:
Depreciation		(3.8	)		(7.4	)
Right of use asset		(3.7	)		(4.4	)
Intangible assets and goodwill		(76.3	)		(78.1	)
Other deferred tax liabilities		(0.1	)		—
Total deferred tax liabilities		(83.9	)		(89.9	)
Net deferred tax liabilities	$	(39.0	)	$	(55.4	)

Schedule of Unrecognized Tax Benefits Roll Forward

The following is a roll-forward of the Company’s unrecognized tax benefits:


Unrecognized tax benefits - January 1, 2022	$	9.0
Increases from positions taken during prior periods		0.9
Increases from positions taken during current period		0.2
Settled positions		(0.2	)
Lapse of statute of limitations		(2.0	)
Unrecognized tax benefits - December 31, 2022	$	7.9
Increases from positions taken during prior periods		1.1
Increases from positions taken during current period		0.2
Settled positions		(2.7	)
Lapse of statute of limitations		(0.4	)
Unrecognized tax benefits - December 30, 2023	$	6.1
Decreases from positions taken during prior periods		(0.5	)
Increases from positions taken during current period		0.2
Settled positions		—
Lapse of statute of limitations		(0.4	)
Unrecognized tax benefits - December 28, 2024	$	5.4