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Income Taxes | 9 Months Ended
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Sep. 29, 2018
Income Tax Disclosure [Abstract] |
Income Taxes |
10. | Income Taxes
On December 22, 2017, the 2017 Tax Act was enacted. As of the fourth quarter of fiscal 2017, the Company had not completed the determination of the tax implications of the 2017 Tax Act. However, the Company reasonably estimated the effects of the 2017 Tax Act and recognized a provisional charge of $56,560 in the fourth quarter of fiscal 2017. During the third quarter of fiscal 2018, the Company reduced its provisional calculation by $741, which represented a revised estimate of the one-time transition tax on accumulated unrepatriated foreign earnings. The Company continues to gather additional information as new guidance is released and expects to complete its accounting for this item within the one-year time period provided by Staff Accounting Bulletin 118. Additionally, the Company continues to evaluate the impact of the Global Intangible Low Taxed Income (“GILTI”) provisions under the 2017 Tax Act and await further guidance. The Company is required to make an accounting policy election to either recognize the tax expense related to GILTI inclusions as a current period expense or recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years. While the Company has included an estimate of GILTI in its estimated effective tax rate for fiscal 2018, it is still evaluating the effects of the GILTI provisions and has not yet determined its accounting policy. The effective tax rates for the three and nine months ended September 29, 2018 were 15.0% and 9.8%, respectively. The effective tax rates for the three and nine months ended September 30, 2017 were 30.5% and 26.6%, respectively. For the nine months ended September 29, 2018, the primary difference between the U.S. federal statutory tax rate and the Company’s consolidated effective tax rate was due to the $24,632 tax benefit related to tax windfalls from stock compensation, a $3,811 reversal of tax reserves resulting from the closure of various tax audits, a $3,697 tax benefit related to favorable tax return adjustments, including the transition tax noted above, and a $1,859 tax benefit related to the cessation of operations of the Company’s Mexican subsidiary. For the nine months ended September 30, 2017, the primary difference between the U.S. federal statutory tax rate and the Company’s consolidated effective tax rate was due to the $11,633 tax benefit related to the cessation of operations of the Company’s Spanish subsidiary and a $2,255 reversal of tax reserves resulting from an updated transfer pricing study. The differences between the U.S. federal statutory tax rate and the Company’s consolidated effective tax rate is as follows:
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 29, |  |  | September 30, |  |  | September 29, |  |  | September 30, |
|  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
U.S. federal statutory tax rate |  |  | 21.0 | % |  |  | 35.0 | % |  |  | 21.0 | % |  |  | 35.0 | %
State income taxes (net of federal benefit) |  |  | (0.6 | %) |  |  | 0.5 | % |  |  | 1.1 | % |  |  | 1.5 | %
Cessation of operations |  |  | 0.0 | % |  |  | 0.0 | % |  |  | (0.9 | %) |  |  | (8.5 | %)
Research and development credit |  |  | (0.3 | %) |  |  | (2.1 | %) |  |  | (0.3 | %) |  |  | (2.2 | %)
Tax (windfall) shortfall on share-based awards |  |  | (3.0 | %) |  |  | (0.9 | %) |  |  | (12.4 | %) |  |  | 0.0 | %
Tax return adjustments related to the 2017 Tax Act |  |  | (3.3 | %) |  |  | 0.0 | % |  |  | (1.3 | %) |  |  | 0.0 | %
Reserve for uncertain tax positions |  |  | (4.6 | %) |  |  | (4.5 | %) |  |  | (1.8 | %) |  |  | (1.7 | %)
Increase in valuation allowance due to net operating loss |  |  | (0.1 | %) |  |  | 1.1 | % |  |  | 0.2 | % |  |  | 3.0 | %
Impact of Foreign Ops |  |  | 4.2 | % |  |  | 0.0 | % |  |  | 3.2 | % |  |  | 0.0 | %
Other |  |  | 1.7 | % |  |  | 1.4 | % |  |  | 1.0 | % |  |  | (0.5 | %)
Total effective tax rate |  |  | 15.0 | % |  |  | 30.5 | % |  |  | 9.8 | % |  |  | 26.6 | %

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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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