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1041 - Disclosure - Income Taxes (Tables)
(http://www.advancepierre.com/taxonomy/role/NotesToFinancialStatementsIncomeTaxDisclosureTextBlockTables)
Table(Implied)
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Reporting Entity [Axis]0001669792 (http://www.sec.gov/CIK)
Income Tax Disclosure [Abstract]Period [Axis]
2016-01-03 - 2016-12-31
Income Tax Disclosure [Abstract]
 
Schedule of Components of Income Tax (Benefit) Provision

The Company’s income tax (benefit) provision consists of the following components:

 

     Fiscal 2016      Fiscal 2015      Fiscal 2014  

Federal income tax (benefit) provision

         

Current

    $ 1,609      $ 870      $ —    

Deferred

      (47,621 )       6,517        7,333  
  

 

 

     

 

 

     

 

 

  

Net federal income tax (benefit) provision

      (46,012 )       7,387        7,333  

State income tax (benefit) provision

         

Current

      816        591        331  

Deferred

      (11,794 )       941        725  
  

 

 

     

 

 

     

 

 

  

Net state income tax (benefit) provision

      (10,978 )       1,532        1,056  
  

 

 

     

 

 

     

 

 

  

Income tax (benefit) provision

    $ (56,990 )     $ 8,919      $ 8,389  
  

 

 

     

 

 

     

 

 

  

 

  
Schedule of Reconciliation between Reported Income Tax (Benefit) Provision and Income Tax Provision

The following is a reconciliation between the reported income tax (benefit) provision and the income tax provision based on applying the federal statutory rate to the Company’s pretax income:

 

     Fiscal 2016     Fiscal 2015     Fiscal 2014  
     Amount     Percent
of Pre-tax
Income		     Amount     Percent
of Pre-
tax
Income		     Amount     Percent
of Pre-
tax
Income		  

Income tax provision (benefit) computed at statutory rate

    $ 27,754       35.0 %    $ 16,109       35.0 %    $ (10,344 )      35.0 % 

Permanent book/tax difference:

             

Stock-based compensation

      8,259       10.4 %      5,501       12.0 %      67       (0.2 )% 

Merger, acquisition and IPO-related costs

      4,439       5.6 %      —         —         —         —    

Other permanent differences

      220       0.2 %      199       0.4 %      205       (0.7 )% 

State and local income tax

      12,019       15.2 %      2,814       6.1 %      (12,021 )      40.7 % 

Change in valuation allowance

      (109,690 )      (138.3 )%      (15,812 )      (34.4 )%      30,545       (103.4 )% 

Other

      9       0.0 %      108       0.2 %      (63 )      0.2 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income tax (benefit) provision

    $ (56,990 )      (71.9 )%    $ 8,919       19.4 %    $ 8,389       (28.4 )% 
  
Schedule of Deferred Tax Assets and Liabilities

The approximate tax effect of each type of temporary difference that gave rise to the Company’s deferred tax assets and liabilities were as follows:

 

     December 31, 2016      January 2, 2016  

Deferred tax assets:

      

Inventory cost capitalization and reserves

    $ 5,420      $ 4,789  

Other reserves and accruals

      7,071        4,209  

Federal net operating loss carryforwards

      42,207        76,678  

State net operating loss carryforwards

      3,533        11,153  

Alternative minimum tax carryforward

      3,111        1,502  

State income tax credit

      6,565        10,100  

Other

      1,380        307  
  

 

 

     

 

 

  
     69,287        108,738  

Less: Valuation allowance

      —          (109,690 ) 
  

 

 

     

 

 

  

Net deferred tax assets

      69,287        (952)  
  

 

 

     

 

 

  

Deferred tax liabilities:

      

Other reserves and accruals

      (998 )       (940 ) 

Basis difference in property, plant and equipment

      (16,669 )       (16,794 ) 

Amortization of intangible assets

      (45,246 )       (23,261 ) 

Other

      (3,667 )       (803 ) 
  

 

 

     

 

 

  

Total deferred tax liabilities

      (66,580 )       (41,798 ) 
  

 

 

     

 

 

  

Net deferred tax asset (liability) – net

    $ 2,707      $ (42,750 ) 
  

 

 

     

 

 

  

  
Schedule of Net Operating Loss ("NOL") Carryforwards

At December 31, 2016, the Company had net operating losses (“NOL”) carryforwards of $120,498 and $85,427 for federal and state purposes, respectively, which expire during the following years (as revised):

 

     Federal      State  

2017 – 2021

      —          9,500  

2022 – 2026

      —          5,812  

2027 – 2031

      —          5,483  

2032 – 2035

      120,498        64,632  

  
Schedule of Activity in the Valuation Allowance for Deferred Tax Assets

The following shows the activity in the valuation allowance for deferred tax assets:

 

     Fiscal 2016      Fiscal 2015      Fiscal 2014  

Balance at beginning of period

    $ 109,690      $ 126,392      $ 94,952  

Additions

      —          —          31,440  

Valuation allowance released

      (109,690 )       (15,812 )       —    

Other deductions

      —          (890 )       —    
  

 

 

     

 

 

     

 

 

  

Balance at end of period

    $ —        $ 109,690      $ 126,392