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Income Taxes | 9 Months Ended
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Sep. 27, 2019
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES For the third quarter of fiscal 2019, the Company’s effective income tax rate resulted in an expense of 1%, as compared to a benefit of 15% in the corresponding period in fiscal 2018; the increase was primarily due to a tax benefit from 2017 U.S. federal provision to return adjustments in the third quarter of fiscal 2018 and a lower tax rate benefit percentage from reserve releases due to expiration of the U.S. federal statute of limitations for certain tax years. For the first three quarters of fiscal 2019, the Company’s effective income tax rate was 13% as compared to 6% in the corresponding period in fiscal 2018; the increase was primarily due to a tax benefit from 2017 U.S. federal provision to return adjustments in the third quarter of fiscal 2018 and transfer pricing tax reserves for stock-based compensation deductions in the second quarter of fiscal 2019. The Company's effective tax rate is lower than the U.S. federal statutory rate of 21% primarily due to reserve releases, favorable tax rates associated with certain earnings from operations in lower-tax jurisdictions, a benefit from U.S. federal R&D credit, and stock-based compensation deductions. The Company and its subsidiaries are subject to U.S. federal and state and foreign income tax. The Company is currently in different stages of multiple year examinations by various state and foreign taxing authorities. The Company believes its reserves are more likely than not to be adequate to cover final resolution of all open tax matters. In the first quarter of fiscal 2018, the Company had received a formal Notice of Deficiency from the Internal Revenue Service for fiscal year 2011, assessing tax and penalties totaling $51.2 million. In the third quarter of fiscal 2019, the Company received a decision from U.S. tax court resulting in no change to its federal income tax liability for fiscal 2011. There are no federal income tax returns currently under examination. Although timing of the resolution and/or closure of audits in other jurisdictions is not certain, the Company does not believe that its gross unrecognized tax benefits would materially change in the next twelve months. Unrecognized tax benefits of $60.9 million and $60.5 million as of the end of the third quarter of fiscal 2019 and fiscal year end 2018, respectively, if recognized, would favorably affect the effective income tax rate in future periods. Unrecognized tax benefits are recorded in Other non-current liabilities and in the deferred tax accounts in the accompanying Condensed Consolidated Balance Sheets. The Company's practice is to recognize interest and/or penalties related to income tax matters in income tax expense. As of the end of the third quarter of fiscal 2019 and fiscal year end 2018, the Company had accrued $11.1 million and $11.0 million, respectively, for interest and penalties, which are recorded in other non-current liabilities in the accompanying Condensed Consolidated Balance Sheets.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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