Income Taxes (Tables)
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12 Months Ended |
Dec. 26, 2020 |
Income Tax Disclosure [Abstract] |
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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 26, 2020 |
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Year Ended December 28, 2019 |
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Year Ended December 29, 2018 |
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United States based operations |
$ |
(30,083) |
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$ |
(101,197) |
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$ |
(53,254) |
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Non-United States based operations |
(3,855) |
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(7,559) |
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(14,317) |
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Loss before income taxes |
$ |
(33,938) |
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$ |
(108,756) |
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$ |
(67,571) |
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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 26, 2020 |
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Year Ended December 28, 2019 As Restated |
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Year Ended December 29, 2018 As Restated |
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Current: |
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Federal & State |
$ |
629 |
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$ |
1,235 |
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$ |
263 |
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Foreign |
(49) |
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611 |
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67 |
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Total current |
580 |
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1,846 |
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330 |
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Deferred: |
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Federal & State |
(7,625) |
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(23,333) |
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(11,679) |
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Foreign |
(1,356) |
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(2,625) |
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(4,741) |
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Total deferred |
(8,981) |
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(25,958) |
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(16,420) |
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Valuation allowance |
(1,038) |
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835 |
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7,200 |
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Income tax expense/(benefit) |
$ |
(9,439) |
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$ |
(23,277) |
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$ |
(8,890) |
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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 26, 2020 and December 28, 2019:
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December 26, 2020 |
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December 28, 2019 As Restated |
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Non-current |
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Non-current |
Deferred Tax Asset: |
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Inventory |
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$ |
11,423 |
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$ |
10,043 |
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Bad debt reserve |
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1,497 |
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868 |
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Casualty loss reserve |
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279 |
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498 |
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Accrued bonus / deferred compensation |
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7,411 |
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5,174 |
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Deferred rent |
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54 |
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80 |
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Derivative security value |
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817 |
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845 |
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Deferred social security (CARES Act) |
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1,798 |
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— |
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Interest limitation |
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21,011 |
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30,335 |
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Lease liabilities |
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21,241 |
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22,134 |
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Deferred revenue - shipping terms |
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315 |
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315 |
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Original issue discount amortization |
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3,078 |
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3,372 |
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Transaction costs |
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3,061 |
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2,302 |
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Federal / foreign net operating loss |
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36,217 |
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38,478 |
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State net operating loss |
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3,806 |
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5,426 |
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Tax credit carryforwards |
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2,150 |
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2,636 |
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All other |
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610 |
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401 |
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Gross deferred tax assets |
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114,768 |
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122,907 |
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Valuation allowance for deferred tax assets |
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(1,471) |
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(2,586) |
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Net deferred tax assets |
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$ |
113,297 |
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$ |
120,321 |
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Deferred Tax Liability: |
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Intangible asset amortization |
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$ |
216,354 |
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$ |
227,007 |
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Property and equipment |
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29,901 |
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34,218 |
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Lease assets |
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20,598 |
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22,119 |
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All other items |
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487 |
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618 |
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Deferred tax liabilities |
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$ |
267,340 |
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$ |
283,962 |
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Net deferred tax liability |
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$ |
154,043 |
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$ |
163,641 |
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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 26, 2020 |
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Year Ended December 28, 2019 As Restated |
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Year Ended December 29, 2018 As Restated |
Statutory federal income tax rate |
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21.0 |
% |
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21.0 |
% |
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21.0 |
% |
Non-U.S. taxes and the impact of non-U.S. losses for which a current tax benefit is not available |
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0.6 |
% |
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0.4 |
% |
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0.9 |
% |
State and local income taxes, net of U.S. federal income tax benefit |
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5.7 |
% |
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3.0 |
% |
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1.4 |
% |
Change in valuation allowance |
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1.6 |
% |
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(1.2) |
% |
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(7.5) |
% |
Adjustment for change in tax law |
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0.5 |
% |
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— |
% |
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(0.9) |
% |
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Permanent differences: |
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Acquisition and related transaction costs |
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— |
% |
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— |
% |
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(2.7) |
% |
Meals and entertainment expense |
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(0.4) |
% |
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(0.2) |
% |
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(0.3) |
% |
Reconciliation of tax provision to return |
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0.6 |
% |
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(0.5) |
% |
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— |
% |
Reconciliation of other adjustments |
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(1.6) |
% |
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(1.0) |
% |
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1.2 |
% |
Effective income tax rate |
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27.8 |
% |
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21.4 |
% |
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13.2 |
% |
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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 26, 2020 |
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Year Ended December 28, 2019 |
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Year Ended December 29, 2018 |
Unrecognized tax benefits - beginning balance |
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$ |
1,101 |
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$ |
1,101 |
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$ |
1,101 |
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Gross increases - tax positions in current period |
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— |
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— |
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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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— |
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Gross decreases - tax positions in prior period |
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— |
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— |
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— |
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Unrecognized tax benefits - ending balance |
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$ |
1,101 |
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$ |
1,101 |
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$ |
1,101 |
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Amount of unrecognized tax benefit that, if recognized would affect the Company's effective tax rate |
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$ |
1,101 |
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$ |
1,101 |
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$ |
1,101 |
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