Income Taxes (Tables)
|
12 Months Ended |
Dec. 28, 2019 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Domestic and Foreign Loss before Income Tax |
Loss before income taxes are comprised of the following components for the periods indicated:
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Year Ended
December 28, 2019 |
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Year Ended
December 29, 2018 |
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Year Ended
December 30, 2017 |
| |
| |
United States based operations |
$ |
(101,197 |
) |
|
$ |
(53,254 |
) |
|
$ |
(24,624 |
) |
| |
Non-United States based operations |
(7,559 |
) |
|
(14,317 |
) |
|
(1,639 |
) |
| |
Loss before income taxes |
$ |
(108,756 |
) |
|
$ |
(67,571 |
) |
|
$ |
(26,263 |
) |
|
| Components of Company's Income Tax Provision |
Below are the components of the Company's income tax (benefit) provision for the periods indicated:
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Year Ended
December 28, 2019 |
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Year Ended
December 29, 2018 |
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Year Ended
December 30, 2017 |
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Current: |
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Federal & State |
$ |
1,235 |
|
|
$ |
263 |
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|
$ |
164 |
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| |
Foreign |
611 |
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|
67 |
|
|
814 |
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| |
Total current |
1,846 |
|
|
330 |
|
|
978 |
|
| |
Deferred: |
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| |
Federal & State |
(23,675 |
) |
|
(11,679 |
) |
|
(85,461 |
) |
| |
Foreign |
(2,625 |
) |
|
(4,741 |
) |
|
(1,989 |
) |
| |
Total deferred |
(26,300 |
) |
|
(16,420 |
) |
|
(87,450 |
) |
| |
Valuation allowance |
19,084 |
|
|
18,160 |
|
|
1,561 |
|
| |
Income tax expense/(benefit) |
$ |
(5,370 |
) |
|
$ |
2,070 |
|
|
$ |
(84,911 |
) |
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| Deferred Tax Assets and Liabilities |
The table below reflects the significant components of the Company's net deferred tax assets and liabilities at December 28, 2019 and December 29, 2018:
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As of December 28, 2019 |
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As of December 29, 2018 |
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Non-current |
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Non-current |
Deferred Tax Asset: |
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Inventory |
|
$ |
10,043 |
|
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$ |
12,798 |
|
Bad debt reserve |
|
868 |
|
|
838 |
|
Casualty loss reserve |
|
498 |
|
|
405 |
|
Accrued bonus / deferred compensation |
|
5,174 |
|
|
3,517 |
|
Deferred rent |
|
80 |
|
|
995 |
|
Derivative security value |
|
845 |
|
|
362 |
|
Interest limitation |
|
30,533 |
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|
14,187 |
|
Lease liabilities |
|
16,487 |
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|
— |
|
Deferred revenue - shipping terms |
|
315 |
|
|
301 |
|
Medical insurance reserve |
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— |
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|
12 |
|
Original issue discount amortization |
|
3,372 |
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|
3,649 |
|
Transaction costs |
|
2,302 |
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|
2,301 |
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Federal / foreign net operating loss |
|
38,478 |
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|
47,171 |
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State net operating loss |
|
5,426 |
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|
6,650 |
|
Tax credit carryforwards |
|
2,636 |
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|
4,984 |
|
All other |
|
401 |
|
|
36 |
|
Gross deferred tax assets |
|
117,458 |
|
|
98,206 |
|
Valuation allowance for deferred tax assets |
|
(34,877 |
) |
|
(24,993 |
) |
Net deferred tax assets |
|
$ |
82,581 |
|
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$ |
73,213 |
|
Deferred Tax Liability: |
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Intangible asset amortization |
|
$ |
227,007 |
|
|
$ |
238,929 |
|
Property and equipment |
|
34,218 |
|
|
34,327 |
|
Lease assets |
|
16,473 |
|
|
— |
|
All other items |
|
618 |
|
|
653 |
|
Deferred tax liabilities |
|
$ |
278,316 |
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|
$ |
273,909 |
|
Net deferred tax liability |
|
$ |
195,735 |
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$ |
200,696 |
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| Reconciliation of Statutory Income Tax Rates to Effective Income Tax Rates |
Below is a reconciliation of statutory income tax rates to the effective income tax rates for the periods indicated:
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Year Ended
December 28, 2019 |
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Year Ended
December 29, 2018 |
|
Year Ended December 30, 2017 |
Statutory federal income tax rate |
|
21.0 |
% |
|
21.0 |
% |
|
35.0 |
% |
Non-U.S. taxes and the impact of non-U.S. losses for which a current tax benefit is not available |
|
0.3 |
% |
|
0.9 |
% |
|
6.9 |
% |
State and local income taxes, net of U.S. federal income tax benefit |
|
3.9 |
% |
|
(0.5 |
)% |
|
3.4 |
% |
Change in valuation allowance and other items |
|
(18.9 |
)% |
|
(21.7 |
)% |
|
(6.5 |
)% |
Adjustment for change in tax law |
|
— |
% |
|
(0.9 |
)% |
|
281.4 |
% |
Adjustment of unrecognized tax benefits |
|
— |
% |
|
— |
% |
|
1.4 |
% |
Permanent differences: |
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Acquisition and related transaction costs |
|
— |
% |
|
(2.7 |
)% |
|
— |
% |
Meals and entertainment expense |
|
(0.2 |
)% |
|
(0.3 |
)% |
|
(0.9 |
)% |
Reconciliation of tax provision to return |
|
(0.2 |
)% |
|
— |
% |
|
1.7 |
% |
Reconciliation of other adjustments |
|
(1.0 |
)% |
|
1.1 |
% |
|
0.9 |
% |
Effective income tax rate |
|
4.9 |
% |
|
(3.1 |
)% |
|
323.3 |
% |
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| Components of Changes in Unrecognized Tax Benefits |
The following is a summary of the changes for the periods indicated below:
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Year Ended
December 28, 2019 |
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Year Ended
December 29, 2018 |
|
Year Ended
December 30, 2017 |
Unrecognized tax benefits - beginning balance |
|
$ |
1,101 |
|
|
$ |
1,101 |
|
|
$ |
2,060 |
|
Gross increases - tax positions in current period |
|
— |
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— |
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— |
|
Gross increases - tax positions in prior period |
|
— |
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— |
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— |
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Gross decreases - tax positions in prior period |
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— |
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— |
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|
(959 |
) |
Unrecognized tax benefits - ending balance |
|
$ |
1,101 |
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$ |
1,101 |
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$ |
1,101 |
|
Amount of unrecognized tax benefit that, if recognized would affect the Company's effective tax rate |
|
$ |
1,101 |
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$ |
1,101 |
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$ |
1,101 |
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