XML 32 R20.htm IDEA: XBRL DOCUMENT
v3.20.2

Income Taxes | 6 Months Ended
--- | ---
Jul. 03, 2020
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES The Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"), enacted on March 27, 2020, provides tax relief to individuals and businesses in light of the impacts of COVID-19. It did not result in material adjustments to our income tax provision or to our net deferred tax assets as of the end of the second quarter of fiscal 2020. For the second quarter of fiscal 2020, our effective income tax rate was 30.5%, as compared to 18.0% in the corresponding period in fiscal 2019. For the first two quarters of fiscal 2020, our effective income tax rate was 26.5%, as compared to 17.6% in the corresponding period in fiscal 2019. The increase in the effective income tax rate was primarily attributable to a one time charge related to increased valuation allowance arising from California tax legislation and a lower tax benefit from stock-based compensation deductions. Our effective tax rate is higher than the U.S. federal statutory rate of 21% primarily due to a one-time valuation allowance arising from California tax legislation. We and our subsidiaries are subject to U.S. federal and state and foreign income tax. Currently, we are in different stages of multiple year examinations by various state and foreign taxing authorities. We believe our reserves are more likely than not to be adequate to cover final resolution of all open tax matters. Although timing of the resolution and/or closure of audits in other jurisdictions is not certain, we do not believe that our gross unrecognized tax benefits would materially change in the next twelve months. Unrecognized tax benefits of $61.1 million and $59.5 million as of the end of the second quarter of fiscal 2020 and fiscal year end 2019, 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 on our Condensed Consolidated Balance Sheets. Our practice is to recognize interest and/or penalties related to income tax matters in income tax expense. As of the end of the second quarter of fiscal 2020 and fiscal year end 2019, we accrued $12.8 million and $11.5 million, respectively, for interest and penalties, which are recorded in other non-current liabilities on our Condensed Consolidated Balance Sheets.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration