Annual report pursuant to Section 13 and 15(d)

Income Taxes

v2.4.0.8
Income Taxes
12 Months Ended
Dec. 28, 2013
Income Taxes [Abstract]  
Income Taxes

NOTE – INCOME TAXES 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit) included in income from net earnings consists of the following:

 

 

 

 

 

 

 

 

 

Year ended

 

 

2011

 

2012

 

2013

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

Federal

 

$             22,383

 

$             27,779

 

$             26,233

State

 

1,913 

 

1,141 

 

94 

Foreign

 

4,442 

 

4,051 

 

9,626 

 

 

 

 

 

 

 

Total Current

 

28,738 

 

32,971 

 

35,953 

 

 

 

 

 

 

 

Deferred

 

 

 

 

 

 

Federal

 

1,044 

 

(145)

 

5,507 

State

 

(71)

 

94 

 

(5)

Foreign

 

(2,985)

 

(927)

 

(3,898)

 

 

 

 

 

 

 

Total Deferred

 

(2,012)

 

(978)

 

1,604 

 

 

 

 

 

 

 

 

 

$             26,726

 

$             31,993

 

$             37,557

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The income tax provision, as reconciled to the tax computed at the federal statutory rate of 35% for 2011, 2012, and

2013, is as follows:

 

 

 

 

 

 

 

 

Year ended

 

 

2011

 

2012

 

2013

 

 

 

 

 

 

 

Federal income taxes at statutory rate

 

$             27,117

 

$             34,449

 

$             40,803

State income taxes, net of federal tax benefit

 

1,373 

 

1,201 

 

102 

Qualified production activities deduction

 

(1,576)

 

(2,651)

 

(1,700)

Foreign income taxes

 

 -

 

(337)

 

(890)

All other, net

 

(188)

 

(669)

 

(758)

 

 

 

 

 

 

 

 

 

$             26,726

 

$             31,993

 

$             37,557

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTE – INCOME TAXES – CONTINUED

 

 

 

 

 

 

 

 

 

 

 

 

The significant categories of deferred taxes are as follows:

 

 

December 29,

 

December 28,

 

 

2012

 

2013

Deferred tax assets

 

 

 

 

Inventory differences

 

$              2,415

 

$              3,111

Accruals not currently deductible

 

2,533 

 

5,345 

Equity-based compensation

 

4,375 

 

2,779 

Intangible assets

 

9,532 

 

10,590 

Net operating losses

 

2,240 

 

530 

Other

 

2,675 

 

2,315 

 

 

 

 

 

Gross deferred tax assets

 

23,770 

 

24,670 

Valuation allowance

 

(1,598)

 

(530)

 

 

 

 

 

Net deferred tax assets

 

22,172 

 

24,140 

 

 

 

 

 

Deferred tax liabilities

 

 

 

 

Depreciation/amortization

 

(5,260)

 

(5,323)

Accumulated other comprehensive income

 

(3,833)

 

(3,418)

Prepaid expenses

 

(1,240)

 

(1,370)

Intangible assets

 

(10,521)

 

(10,590)

Other

 

(2,490)

 

(5,268)

 

 

 

 

 

Gross deferred tax liabilities

 

(23,344)

 

(25,969)

 

 

 

 

 

Net deferred taxes

 

$            (1,172)

 

$            (1,829)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Components of deferred taxes, net on a jurisdiction basis are as follows:

 

 

 

 

 

 

 

 

 

 

 

December 29,

 

December 28,

 

 

2012

 

2013

 

 

 

 

 

Net current deferred tax assets

 

$              4,255

 

$              8,588

Net noncurrent deferred tax assets

 

5,956 

 

5,519 

Net current deferred tax liabilities

 

(1,382)

 

(5,070)

Net noncurrent deferred tax liabilities

 

(10,001)

 

(10,866)

 

 

 

 

 

Net deferred taxes

 

$            (1,172)

 

$            (1,829)

 

 

At December 28, 2013, the Company had foreign operating loss carry forwards of approximately $2,218.  If these operating losses are not used, they will expire between 2014 and 2018.  A valuation allowance of $530 has been placed on these foreign operating loss carry forwards.  The valuation allowance is determined using a more likely than not realization criteria and is based upon all available positive and negative evidence, including future reversals of temporary differences.  A future increase or decrease in the current valuation allowance is not expected to impact the income tax provision due to the Company’s ability to fully utilize foreign tax credits associated with taxable income in these jurisdictions.

 

 

 

 

NOTE – INCOME TAXES – CONTINUED

 

The Company has not recognized a deferred tax liability for the undistributed earnings of certain of its foreign operations that arose in 2013 and prior years as the Company considers these earnings to be indefinitely reinvested. As of December 28, 2013, the undistributed earnings of these subsidiaries was $10,200.  If these earnings were repatriated to the United States, the Company would need to accrue and pay the related tax.  However, the Company considers these earnings indefinitely re-invested and has no plans to repatriate these earnings.

 

The Company recognizes the impact of a tax position in the financial statements if that position is more likely than not of being sustained on audit, based on the technical merits of the position.  As of December 29, 2012 and December 28, 2013, the Company had no significant unrecognized tax benefits.

 

From time to time, the Company is subject to federal, state, and foreign tax authority income tax examinations. The Company remains subject to income tax examinations for each of its open tax years, which extend back to 2010 under most circumstances.  Certain taxing jurisdictions may provide for additional open years depending upon their statutes or if an audit is on-going.