Helios Technologies Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 30, 2017

Schedule of Income before Income Tax, Domestic and Foreign

For financial reporting purposes, income before income taxes includes the following components:

	For the year ended
	December 30, 2017		December 31, 2016		January 2, 2016
United States	$	37,005	$	30,562	$	45,964
Foreign		10,539		4,339		3,266
Total	$	47,544	$	34,901	$	49,230

Schedule of Components of Income Tax Provision (Benefit)

The components of the income tax provision (benefit) are as follows:

	For the year ended
	December 30, 2017			December 31, 2016			January 2, 2016
Current tax expense (benefit):
United States	$	17,165		$	9,740		$	14,538
State and local		3,095			923			948
Foreign		2,496			1,377			1,359
Total current		22,756			12,040			16,845
Deferred tax expense (benefit):
United States		(4,922	)		(341	)		(781	)
State and local		(986	)		387			(58	)
Foreign		(862	)		(489	)		86
Total deferred		(6,770	)		(443	)		(753	)
Total income tax provision	$	15,986		$	11,597		$	16,092

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation between the effective income tax rate and the U.S. federal statutory rate is as follows:

	For the year ended
	December 30, 2017			December 31, 2016			January 2, 2016
U.S. federal taxes at statutory rate	$	16,640		$	12,245		$	17,231
Increase (decrease)
Foreign tax credit		—			—			(310	)
Domestic production activity deduction		(1,909	)		(1,032	)		(1,699	)
Foreign income taxed at lower rate		(1,177	)		(381	)		(420	)
US income tax reform		459			—			—
State and local taxes, net		1,208			586			890
Change in reserve		829			(284	)		304
Other		(64	)		463			96
Income tax provision	$	15,986		$	11,597		$	16,092

Schedule of Deferred Tax Assets and Liabilities

The temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 30, 2017, and December 31, 2016 are presented below:

	December 30, 2017			December 31, 2016
Deferred tax assets:
Noncurrent:
Foreign tax benefit of U.S. reserves	$	3,741		$	3,518
Net operating losses		529			793
Inventory		860			—
Intangible assets and goodwill		2,354			—
Accrued expenses and other		1,418			2,561
Total noncurrent deferred tax assets		8,902			6,872
Less: Valuation Allowance		(346	)		(292	)
Net noncurrent deferred tax assets		8,556			6,580
Deferred tax liabilities:
Noncurrent:
Depreciation		(5,948	)		(9,916	)
Intangible assets and goodwill		—			(2,199	)
Other		(22	)		(261	)
Total noncurrent deferred tax liabilities		(5,970	)		(12,376	)
Net noncurrent deferred tax assets (liabilities)	$	2,586		$	(5,796	)

Schedule of Unrecognized Tax Benefits Roll Forward

The following is a roll-forward of the Company’s unrecognized tax benefits:

Unrecognized tax benefits - December 27, 2014	$	1,156
Increases from positions taken during prior periods		110
Settled positions		783
Lapse of statute of limitations		—
Unrecognized tax benefits - January 2, 2016	$	2,049
Increases from positions taken during prior periods		157
Settled positions and reclassifications		1,295
Lapse of statute of limitations		—
Unrecognized tax benefits - December 31, 2016	$	3,501
Increases from positions taken during prior periods		1,525
Increases from positions taken during current period		558
Settled positions		—
Lapse of statute of limitations		(1,042	)
Unrecognized tax benefits - December 30, 2017	$	4,542