XML 31 R17.htm IDEA: XBRL DOCUMENT

Income Taxes	9 Months Ended
Sep. 26, 2020
Income Tax Disclosure [Abstract]
Income Taxes	10.Income Taxes The effective tax rates for the three and nine months ended September 26, 2020 were 13.6% and 17.8%, respectively. The effective tax rates for the three and nine months ended September 28, 2019 were 21.8% and 23.0%, respectively. For the nine months ended September 26, 2020, the tax expense was impacted by a tax benefit related to the reversal of the 2018, 2019 and 2020 tax impact of global intangible low-taxed income (“GILTI”) and a tax windfall from stock compensation, partially offset by an impairment of the Company’s Brazil reporting unit which has a full valuation allowance and an increase to tax reserves related to a foreign income tax audit. For the nine months ended September 26, 2020, the difference between the U.S. federal statutory tax rate and the Company’s consolidated effective tax rate was primarily due to tax expense from income earned in foreign jurisdictions and state income tax expense, partially offset by a tax benefit related to foreign-derived intangible income (“FDII”). For the nine months ended September 28, 2019, the difference between the U.S. federal statutory tax rate and the Company’s consolidated effective tax rate was primarily due to tax expense related to income earned in foreign jurisdictions, tax expense related to GILTI and state income tax expense, partially offset by tax benefits related to FDII, the reversal of tax reserves no longer needed and the cessation of certain publishing operations. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act (the “CARES Act”) was signed into law. The CARES Act includes provisions relating to modifications to the net interest deduction limitation, net operating loss carryforward rules, refundable payroll tax credits and deferment of the employer portion of certain payroll taxes. On July 20, 2020, the U.S. Treasury Department released final regulations under Internal Revenue Code Section 951A (TD 9902) permitting a taxpayer to elect to exclude from its GILTI inclusion items of income subject to a high effective rate of foreign tax. As a result of the final regulations, the Company recorded a $7,566 discrete tax benefit in the three months ended September 26, 2020 related to the 2018 and 2019 taxes previously accrued attributable to GILTI.

Income Taxes

9 Months Ended

Sep. 26, 2020

10.Income Taxes

The effective tax rates for the three and nine months ended September 26, 2020 were 13.6% and 17.8%, respectively. The effective tax rates for the three and nine months ended September 28, 2019 were 21.8% and 23.0%, respectively. For the nine months ended September 26, 2020, the tax expense was impacted by a tax benefit related to the reversal of the 2018, 2019 and 2020 tax impact of global intangible low-taxed income (“GILTI”) and a tax windfall from stock compensation, partially offset by an impairment of the Company’s Brazil reporting unit which has a full valuation allowance and an increase to tax reserves related to a foreign income tax audit. For the nine months ended September 26, 2020, the difference between the U.S. federal statutory tax rate and the Company’s consolidated effective tax rate was primarily due to tax expense from income earned in foreign jurisdictions and state income tax expense, partially offset by a tax benefit related to foreign-derived intangible income (“FDII”). For the nine months ended September 28, 2019, the difference between the U.S. federal statutory tax rate and the Company’s consolidated effective tax rate was primarily due to tax expense related to income earned in foreign jurisdictions, tax expense related to GILTI and state income tax expense, partially offset by tax benefits related to FDII, the reversal of tax reserves no longer needed and the cessation of certain publishing operations.

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act (the “CARES Act”) was signed into law. The CARES Act includes provisions relating to modifications to the net interest deduction limitation, net operating loss carryforward rules, refundable payroll tax credits and deferment of the employer portion of certain payroll taxes.

On July 20, 2020, the U.S. Treasury Department released final regulations under Internal Revenue Code Section 951A (TD 9902) permitting a taxpayer to elect to exclude from its GILTI inclusion items of income subject to a high effective rate of foreign tax. As a result of the final regulations, the Company recorded a $7,566 discrete tax benefit in the three months ended September 26, 2020 related to the 2018 and 2019 taxes previously accrued attributable to GILTI.

- 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 + Details