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INCOME TAXES | 3 Months Ended
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Mar. 31, 2018
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES The Company’s income tax (benefit) expense and related effective rates were as follows (in thousands, except percentage data):
| For the 13 Weeks Ended March 31, 2018 |  | For the 13 Weeks Ended April 1, 2017
Income tax (benefit) expense | $ | 6,645 |  |  | $ | (1,220 | )
Effective tax rate | (16.3 | )% |  | 2.5 | %
The effective tax rate in the First Quarter is negative due to the accrual of income tax expense on entities with positive taxable income against a consolidated First Quarter loss. There was no tax benefit accrued on the net operating losses ("NOLs") of the U.S. and certain foreign entities due to the uncertainty of future income being generated to utilize the NOLs. For these entities in a loss position, the Company has accrued valuation allowances on the deferred tax assets and the NOLs, whereas in the Prior Year Quarter the Company accrued a tax benefit on most deferred tax assets and NOLs. The First Quarter tax rate was also negatively impacted by the Global Intangible Low-Taxed Income (“GILTI”) provision of the Tax Cuts and Jobs Act signed into law last year whereby certain foreign income inclusions absorb the U.S. NOL, effectively resulting in double taxation of that income. There were also net unfavorable discrete items occurring in the quarter, mostly due to a $2.5 million revision to the estimate of the one-time repatriation tax under the Tax Cuts and Jobs Act. Accounting for the income tax effects of the repatriation tax requires significant judgments and estimates in the interpretation and calculations of its provisions. The Company made reasonable estimates and recorded provisional amounts in its financial statements for fiscal year 2017 as permitted under Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act, and expects to make additional changes to the estimate during the year as it refines the calculations and implements future expected guidance and regulations from the U.S. Department of Treasury and the Internal Revenue Service. As of March 31, 2018, the total amount of unrecognized tax benefits, excluding interest and penalties, was $35.3 million, which would favorably impact the effective tax rate in future periods, if recognized. The Company is subject to examinations in various state and foreign jurisdictions for its 2011-2016 tax years, none of which the Company believes are significant, individually or in the aggregate. Tax audit outcomes and timing of tax audit settlements are subject to significant uncertainty. The Company has classified uncertain tax positions as long-term income taxes payable, unless such amounts are expected to be settled within twelve months of the condensed consolidated balance sheet date. As of March 31, 2018, the Company had recorded $5.1 million of unrecognized tax benefits, excluding interest and penalties, for positions that are expected to be settled within the next twelve months. Consistent with its past practice, the Company recognizes interest and/or penalties related to income tax overpayments and income tax underpayments in income tax expense and income taxes receivable/payable. At March 31, 2018, the total amount of accrued income tax-related interest and penalties included in the condensed consolidated balance sheet was $3.0 million and $1.3 million, respectively. The income tax related interest expense accrued in the First Quarter was $0.2 million.

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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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