Income Taxes (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Expense from Continuing Operations |
Income tax expense (benefit) from continuing operations is summarized as follows (in thousands):
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Reconciliation of Income Taxes at Federal Statutory Rate to Effective Tax Rate |
A reconciliation of income taxes at the federal statutory rate to the effective tax rate is summarized in the following table:
(1) The Company generated $0.7 million, $10.2 million and $4.2 million of foreign tax credits, excluding the impact of tax reform for fiscal 2019, 2018 and 2017, respectively.
(2) Fiscal 2019, 2018 and 2017 pretax earnings (loss) include $22.8 million, $3.0 million and $117.0 million, respectively, in impairment & divestiture charges related to goodwill, intangible assets, tangible assets and the cumulative effect of foreign currency rate changes of which $14.0 million, $0.7 million and $69.0 million, respectively, are not deductible for income tax purposes.
(3) Incremental valuation allowances of $1.7 million and $20.4 million were recorded in fiscal 2019 and 2018, respectively, due to uncertainty regarding utilization of foreign operating loss carryforwards, which were partially offset by a reduction of $2.9 million and $11.8 million of valuation allowances for fiscal 2019 and 2018, respectively. These amounts exclude valuation allowances related to foreign tax credits that are categorized with tax reform.
(4) During fiscal 2019, legislative changes and additional guidance related to the Act resulted in tax benefit of $5.8 million related to the fiscal 2018 tax year.
(5) During fiscal 2018 and 2017, the Company generated a net expense of $1.5 million and a net benefit of $14.9 million, the result of taxable liquidations of foreign subsidiaries.
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Temporary Differences and Carryforwards of Deferred Tax Assets and Liabilities |
Temporary differences and carryforwards that gave rise to deferred tax assets and liabilities include the following items (in thousands):
(1) The net deferred income tax asset is reflected on the balance sheet in two categories: an asset of $18.4 million and $21.3 million for fiscal 2019 and 2018, respectively, is included in "Other long-term assets" and a liability of $1.6 million and $3.9 million for fiscal 2019 and 2018, respectively, is included in "Deferred income taxes".
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Changes in Gross Liability for Unrecognized Tax benefits, Excluding Interest and Penalties |
Changes in the Company’s gross liability for unrecognized tax benefits, excluding interest and penalties, are as follows (in thousands):
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Earnings before Income Taxes, Including both Continuing and Discontinued Operations |
arnings (loss) before income taxes from continuing operations, are summarized as follows (in thousands):
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