XML 34 R19.htm IDEA: XBRL DOCUMENT
v3.20.4

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 26, 2020
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries are as follows:
| 2020 |  | 2019 |  | 2018
United States | $ | 169,281 |  |  | $ | 166,108 |  |  | $ | 137,744 |
Foreign | 23,487 |  |  | 33,750 |  |  | 15,589 |
| $ | 192,768 |  |  | $ | 199,858 |  |  | $ | 153,333 |
Income tax expense (benefit) consists of:
| 2020 |  | 2019 |  | 2018
Current: |  |  |  |  |
Federal | $ | 30,431 |  |  | $ | 27,809 |  |  | $ | 21,106 |
State | 8,302 |  |  | 5,568 |  |  | 6,585 |
Foreign | 12,730 |  |  | 13,130 |  |  | 17,559 |
| 51,463 |  |  | 46,507 |  |  | 45,250 |
Non-current: | (451) |  |  | (240) |  |  | (456) |
Deferred: |  |  |  |  |
Federal | (6,086) |  |  | 47 |  |  | 2,290 |
State | (822) |  |  | 160 |  |  | 405 |
Foreign | 5,511 |  |  | 1,279 |  |  | (1,881) |
| (1,397) |  |  | 1,486 |  |  | 814 |
| $ | 49,615 |  |  | $ | 47,753 |  |  | $ | 45,608 |
The reconciliations of the statutory federal income tax rate and the effective tax rate follows:
| 2020 |  | 2019 |  | 2018
Statutory federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal benefit | 3.5 |  |  | 2.5 |  |  | 3.5 |
Carryforwards, credits and changes in valuation allowances | (1.6) |  |  | (1.0) |  |  | 3.2 |
Foreign tax rate differences | (1.7) |  |  | 0.3 |  |  | (1.0) |
Changes in unrecognized tax benefits | 0.2 |  |  | (0.1) |  |  | (0.3) |
Goodwill and intangible impairment | 2.4 |  |  | — |  |  | 2.2 |
Effects of 2017 Tax Act | — |  |  | — |  |  | (0.5) |
Other | 1.9 |  |  | 1.2 |  |  | 1.7 |
| 25.7 | % |  | 23.9 | % |  | 29.7 | %
Fiscal years 2020 and 2018 include $4,651 and $3,171 of tax expense related to non-tax deductible impairment of goodwill. Fiscal years 2020 and 2018 also include $1,100 and $6,756 of tax expense primarily related to restructuring charges for which no tax benefits have been recorded due to the increase in valuation allowance. Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and (b) operating loss and tax credit carryforwards. The tax effects of significant items comprising the Company’s net deferred income tax liabilities are as follows:
| 2020 |  | 2019
Deferred income tax assets: |  |  |
Accrued expenses and allowances | $ | 17,203 |  |  | $ | 16,148 |
Tax credits and loss carryforwards | 81,912 |  |  | 64,116 |
Defined benefit pension liability | 30,623 |  |  | 35,539 |
Accrued compensation and benefits | 23,545 |  |  | 14,122 |
Lease liabilities | 23,715 |  |  | 21,763 |
Deferred compensation | 13,883 |  |  | 15,174 |
Gross deferred income tax assets | 190,881 |  |  | 166,862 |
Valuation allowance | (44,451) |  |  | (35,215) |
Net deferred income tax assets | 146,430 |  |  | 131,647 |
Deferred income tax liabilities: |  |  |
Property, plant and equipment | 35,701 |  |  | 31,628 |
Intangible assets | 43,699 |  |  | 49,686 |
Inventory allowances | 5,705 |  |  | 5,352 |
Lease assets | 23,715 |  |  | 22,066 |
Other deferred tax liabilities | 5,248 |  |  | 6,067 |
Total deferred income tax liabilities | 114,068 |  |  | 114,799 |
Net deferred income tax asset | $ | 32,362 |  |  | $ | 16,848 |
Deferred income tax assets (liabilities) are presented as follows on the Consolidated Balance Sheets:
Balance Sheet Caption | 2020 |  | 2019
Other assets | $ | 74,051 |  |  | $ | 75,754 |
Deferred income taxes | (41,689) |  |  | (58,906) |
Net deferred income tax asset | $ | 32,362 |  |  | $ | 16,848 |
Management of the Company has reviewed recent operating results and projected future operating results. The Company's belief that realization of its net deferred tax assets is more likely than not is based on, among other factors, changes in operations that have occurred in recent years and available tax planning strategies. At December 26, 2020 and December 28, 2019 respectively, there were $81,912 and $64,116 relating to tax credits and loss carryforwards. Valuation allowances have been established for certain losses that reduce deferred tax assets to an amount that will, more likely than not, be realized. The deferred tax assets at December 26, 2020 that are associated with tax loss and tax credit carryforwards not reduced by valuation allowances expire in periods starting in 2023. Uncertain tax positions included in other non-current liabilities are evaluated in a two-step process, whereby (1) the Company determines whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more likely than not recognition threshold, the Company would recognize the largest amount of tax benefit that is greater than fifty percent likely to be realized upon ultimate settlement with the related tax authority. The following summarizes the activity related to our unrecognized tax benefits in 2020 and 2019, in thousands:
| 2020 |  | 2019
Gross unrecognized tax benefits—beginning of year | $ | 2,300 |  |  | $ | 2,599 |
Gross increases—tax positions in prior period | — |  |  | 29 |
Gross decreases—tax positions in prior period | (1) |  |  | — |
Gross increases—current‑period tax positions | 398 |  |  | 593 |
Settlements with taxing authorities | (183) |  |  | (150) |
Lapse of statute of limitations | (650) |  |  | (771) |
Gross unrecognized tax benefits—end of year | $ | 1,864 |  |  | $ | 2,300 |
There are approximately $973 of uncertain tax positions for which reversal is reasonably possible during the next 12 months due to the closing of the statute of limitations. The nature of these uncertain tax positions is generally the computation of a tax deduction or tax credit. During 2020, the Company recorded a reduction of its gross unrecognized tax benefit of $650 with $513 recorded as a reduction of income tax expense, due to the expiration of statutes of limitation in the United States. During 2019, the Company recorded a reduction of its gross unrecognized tax benefit of $771, with $609 recorded as a reduction of its income tax expense, due to the expiration of statutes of limitation in the United States. In addition to these amounts, there was an aggregate of $845 and $178 of interest and penalties at December 26, 2020 and December 28, 2019, respectively. The Company’s policy is to record interest and penalties directly related to income taxes as income tax expense in the Consolidated Statements of Earnings. The Company files income tax returns in the U.S. and various states as well as foreign jurisdictions. Tax years 2016 and forward remain open under U.S. statutes of limitation. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $2,547 and $2,224 at December 26, 2020 and December 28, 2019, respectively.

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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration