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Taxes (Tables) | 12 Months Ended
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Dec. 28, 2019
Income Tax Disclosure [Abstract] |
Schedule of significant components of the consolidated deferred tax assets and liabilities | Significant components of the consolidated deferred tax assets and liabilities were (in thousands):
Fiscal Year | 2019 |  | 2018
Deferred income tax assets: |  |  |
Bad debt allowance | $ | 2,048 |  |  | $ | 1,974 |
Returns allowance | 3,990 |  |  | 4,935 |
Inventory | 6,856 |  |  | 4,519 |
Warranty liabilities | 3,465 |  |  | 3,317 |
Markdown allowance | 3,480 |  |  | 2,800 |
Compensation | 11,998 |  |  | 18,772 |
Accrued liabilities | 6,672 |  |  | 5,903 |
Deferred rent | — |  |  | 7,996 |
Deferred income | 3,582 |  |  | 5,706 |
Unrealized exchange gains (losses) | 3,816 |  |  | 637 |
State income tax and interest on tax contingencies | 887 |  |  | 1,189 |
Fixed assets | 220 |  |  | (8,009 | )
Trade names and customer lists | 4,345 |  |  | 1,703 |
Goodwill | 14,947 |  |  | 17,957 |
Foreign accruals | 10,446 |  |  | 8,528 |
Loss carryforwards | 32,158 |  |  | 31,582 |
Tax credit carryforwards | 4,281 |  |  | 512 |
Capitalized R&D | 8,362 |  |  | 2,546 |
Interest disallowance | 16,683 |  |  | 9,642 |
Lease liabilities | 82,511 |  |  | — |
Deferred income tax assets total | $ | 220,747 |  |  | $ | 122,209 |
Deferred income tax liabilities: |  |  |
Tenant allowance | $ | (801 | ) |  | $ | — |
Other intangibles | (235 | ) |  | (4,562 | )
Undistributed earnings of certain foreign subsidiaries | (329 | ) |  | (541 | )
Right-of-use assets | (65,070 | ) |  | — |
Other | (45 | ) |  | (32 | )
Deferred income tax liabilities total | $ | (66,480 | ) |  | $ | (5,135 | )
Valuation allowance | (118,089 | ) |  | (95,818 | )
Net deferred income tax assets | $ | 36,178 |  |  | $ | 21,256 |
Net deferred income tax assets | $ | 38,275 |  |  | $ | 23,695 |
Net deferred income tax liabilities | (2,097 | ) |  | (2,439 | )
Net deferred income tax assets | $ | 36,178 |  |  | $ | 21,256 |
Schedule of the amounts and the fiscal year of expiration of loss carryforwards | The amounts and the fiscal year of expiration of the loss carryforwards are (in thousands):
Expires 2020 through 2024 | $ | 18,923 |
Expires 2025 through 2029 | 14,931 |
Expires 2030 through 2034 | — |
Expires 2035 through 2039 | 74,315 |
Indefinite | 10,428 |
Total loss carryforwards | $ | 118,597 |
The state apportioned amounts and the fiscal year of expiration of the loss carryforwards are (in thousands):
Expires 2020 through 2024 | $ | 632 |
Expires 2025 through 2029 | 9,199 |
Expires 2030 through 2034 | 3,096 |
Expires 2035 through 2039 | 46,749 |
Indefinite | 26,270 |
Total loss carryforwards | $ | 85,946 |
Schedule of income before income taxes for the Company's U.S. and non-U.S. based operations | The following table identifies income (loss) before income taxes for the Company's U.S. and non-U.S. based operations for the fiscal years indicated (in thousands):
Fiscal Year | 2019 |  | 2018 |  | 2017
U.S | $ | (142,141 | ) |  | $ | (102,810 | ) |  | $ | (517,227 | )
Non-U.S | 110,810 |  |  | 122,980 |  |  | 63,473 |
Total | $ | (31,331 | ) |  | $ | 20,170 |  |  | $ | (453,754 | )
Components of provision for income taxes | The Company's provision for income taxes consisted of the following for the fiscal years indicated (in thousands):
Fiscal Year | 2019 |  | 2018 |  | 2017
Current provision: |  |  |  |  |
U.S. federal | $ | 2,338 |  |  | $ | (14,386 | ) |  | $ | 30,817 |
Non-U.S | 28,109 |  |  | 35,854 |  |  | 40,423 |
State and local | (2,330 | ) |  | (2,056 | ) |  | (2,055 | )
Total current | 28,117 |  |  | 19,412 |  |  | 69,185 |
Deferred provision (benefit): |  |  |  |  |
U.S. federal | — |  |  | — |  |  | (45,990 | )
Non-U.S | (9,436 | ) |  | 1,696 |  |  | (3,770 | )
State and local | — |  |  | — |  |  | 380 |
Total deferred | (9,436 | ) |  | 1,696 |  |  | (49,380 | )
Provision for income taxes | $ | 18,681 |  |  | $ | 21,108 |  |  | $ | 19,805 |
Reconciliation of the U.S. federal statutory income tax rate to the effective tax rate | A reconciliation of the U.S. federal statutory income tax rates to the Company's effective tax rate is as follows:
Fiscal Year | 2019 |  | 2018 |  | 2017
Tax at statutory rate | 21.0 | % |  | 21.0 | % |  | 35.0 | %
Permanent differences | (2.0 | ) |  | (0.2 | ) |  | (0.1 | )
State, net of federal tax benefit | 17.6 |  |  | (3.8 | ) |  | 1.0 |
Foreign rate differential | 12.8 |  |  | (12.3 | ) |  | 3.7 |
Withholding taxes | (11.1 | ) |  | 16.3 |  |  | — |
GILTI Tax-net of foreign tax credits | (24.2 | ) |  | 11.8 |  |  | — |
U.S. tax on foreign income-net of foreign tax credits | 0.3 |  |  | 6.4 |  |  | (1.7 | )
Income tax contingencies | 3.2 |  |  | (5.0 | ) |  | (0.1 | )
Valuation allowances | (53.2 | ) |  | 65.0 |  |  | (12.5 | )
Repatriation tax - net impact | — |  |  | 5.9 |  |  | (7.4 | )
Deficiencies on employee stock awards | (10.9 | ) |  | 10.1 |  |  | (0.9 | )
Non-deductible goodwill impairment | — |  |  | — |  |  | (15.2 | )
Tax reform rate reduction impact on deferred tax assets | — |  |  | (15.8 | ) |  | (6.2 | )
Foreign deferred tax rate change | (4.5 | ) |  | — |  |  | — |
Non deductible foreign equity awards | (3.2 | ) |  | 5.3 |  |  | (0.5 | )
Non deductible officer compensation | (3.7 | ) |  | — |  |  | — |
Tax exempt foreign capital gain income | 6.3 |  |  | — |  |  | — |
Deferred adjustment | (8.0 | ) |  | — |  |  | — |
Other | — |  |  | — |  |  | 0.5 |
Provision for income taxes | (59.6 | )% |  | 104.7 | % |  | (4.4 | )%
Reconciliation of the total amounts of unrecognized tax benefits | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for the fiscal years indicated (in thousands):
Fiscal Year | 2019 |  | 2018 |  | 2017
Balance at beginning of year | $ | 39,909 |  |  | $ | 35,355 |  |  | $ | 23,399 |
Gross increases—tax positions in prior years | 6,639 |  |  | 7,183 |  |  | 2,104 |
Gross decreases—tax positions in prior years | (4 | ) |  | (124 | ) |  | (845 | )
Gross increases—tax positions in current year | 184 |  |  | 576 |  |  | 13,444 |
Settlements | (1,901 | ) |  | — |  |  | (81 | )
Lapse in statute of limitations | (8,912 | ) |  | (2,980 | ) |  | (2,706 | )
Change due to currency revaluation | (239 | ) |  | (101 | ) |  | 40 |
Balance at end of year | $ | 35,676 |  |  | $ | 39,909 |  |  | $ | 35,355 |

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