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Income Taxes Income Taxes | 3 Months Ended
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Apr. 05, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES The Company determines its provision for income taxes for interim periods using an estimate of its annual effective tax rate and records any changes affecting the estimated annual effective tax rate in the interim period in which the change occurs, including discrete tax items. During the three months ended April 5, 2020, the Company recorded a total income tax provision of $1.5 million on a pre-tax loss of $100.6 million resulting in an effective tax rate of (1.5)%. The effective tax rate for this period was primarily impacted by a non-deductible goodwill impairment. Excluding the impact of the goodwill impairment, the effective tax rate was 7.4% for the period compared to 17.7% during the three months ended March 31, 2019. The decrease in the effective tax rate, excluding goodwill impairment, was due to the favorable impact of amending prior year tax returns which was partially offset by unfavorable changes related to company-owned life insurance. In the first three months of 2020, the Company decreased its liability for unrecognized tax benefits by $0.8 million. As of April 5, 2020, the Company had accrued approximately $24.7 million for unrecognized tax benefits. In accordance with applicable accounting standards, the Company’s deferred tax asset as of April 5, 2020 reflects a reduction for $2.8 million of these unrecognized tax benefits. Unrecognized tax benefits are reviewed on an ongoing basis and are adjusted for changing facts and circumstances, including the progress of tax audits and the closing of statutes of limitations. Based on information currently available, it is reasonably possible that approximately $14.4 million of unrecognized tax benefits may be recognized within the next 12 months due to a lapse of statute of limitations. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES Act) was signed into law in response to the COVID-19 pandemic and provides certain tax relief to businesses. Tax provisions of the CARES Act include, among other things, the deferral of certain payroll taxes, relief for retaining employees, and certain income tax provisions for corporations. During the three months ended April 5, 2020, the CARES Act did not have an impact on the Company’s effective tax rate or income tax accounts. While the Company continues to evaluate the impacts of the CARES Act and similar foreign government support programs on its business, it does not expect they will have a material impact during the year. The Company does expect to benefit from the deferral of certain payroll taxes which it believes will result in an increase in its payroll tax accrual of approximately $3.1 million through the end of fiscal year 2020.

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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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