Income Taxes (Tables)

12 Months Ended

Jan. 01, 2016

Provision for (Benefit from) Income Taxes

The provision for income taxes consisted of the following (U.S. dollars in millions):



	Year ended
	January 1, 2016			December 26, 2014		December 27, 2013
Current:
U.S. federal income tax	$	4.7		$	3.1	$	4.6
State	0.5			0.9		1.0
Non-U.S.	7.6			5.6		8.9
	12.8			9.6		14.5
Deferred:
U.S. federal income tax	1.6			3.1		0.8
State	0.3			0.4		0.1
Non-U.S.	(1.0		)	1.2		1.8
	0.9			4.7		2.7
	$	13.7		$	14.3	$	17.2

Schedule of Income Before Income Tax, Domestic and Foreign

Income (loss) before income taxes consisted of the following (U.S. dollars in millions):



	Year ended
	January 1, 2016			December 26, 2014		December 27, 2013
U.S.	$	(49.4	)	$	19.9	$	21.4
Non-U.S.	129.5			139.0		(38.1		)
	$	80.1		$	158.9	$	(16.7	)

Differences Between Reported Provision for (Benefit from) Income Taxes and Income Taxes Computed at U.S. Statutory Federal Income Tax Rate

The differences between the reported provision for income taxes and income taxes computed at the U.S. statutory federal income tax rate are explained in the following reconciliation (U.S. dollars in millions):



	Year ended
	January 1, 2016			December 26, 2014			December 27, 2013
Income tax provision (benefit) computed at the U.S. statutory federal rate	$	28.0		$	55.6		$	(5.9	)
Effect of tax rates on non-U.S. operations	(112.9		)	(50.8		)	(33.5		)
Provision for uncertain tax positions	0.6			0.2			3.3
Non-deductible interest	—			(0.1		)	23.6
Foreign exchange	(17.2		)	(5.6		)	(6.6		)
Non-deductible intercompany charges	(0.3		)	0.4			0.2
Non-deductible differences	0.6			2.1			0.9
Non-taxable income/loss	(2.2		)	(2.4		)	(1.0		)
Non-deductible expenses	—			—			0.5
Non-deductible goodwill impairment	23.1			—			16.3
Adjustment to deferred balances	(1.2		)	(0.2		)	2.5
Other	(0.4		)	(1.2		)	0.1
Other taxes in lieu of income	1.3			—			2.3
Change in deferred rate	1.4			(0.8		)	1.4
Tax credits	—			(0.3		)	(2.0		)
Increase in valuation allowance ⁽¹⁾	92.9			17.4			15.1
Provision for income taxes	$	13.7		$	14.3		$	17.2

_____________

⁽¹⁾ The increase in valuation allowance includes effects of foreign exchange and adjustments to deferred tax balances which were fully offset by valuation allowance.

Deferred Income Tax Assets and Liabilities

Deferred income tax assets and liabilities consisted of the following (U.S. dollars in millions):



		January 1,			December 26,
Deferred tax liabilities:		2016			2014
Current:
	Allowances and other accrued liabilities	$	(0.9	)	$	(2.7	)
	Inventories	(14.0		)	(15.6		)
	Total current deferred tax liabilities	(14.9		)	(18.3		)

Noncurrent:
	Property, plant and equipment	(64.6		)	(64.7		)
	Equity in earnings of unconsolidated companies	(0.2		)	(0.2		)
	Pension	(2.9		)	(2.8		)
	Other noncurrent deferred tax liabilities	(6.4		)	(6.3		)

	Total noncurrent deferred tax liabilities	(74.1		)	(74.0		)
Total current and noncurrent deferred tax liabilities		$	(89.0	)	$	(92.3	)

Deferred tax assets:
Current:
	Net operating loss carryforwards	$	6.8		$	6.4
	Allowances and other accrued assets	11.3			13.2
	Inventories	5.0			4.8
	Total current deferred tax assets	23.1			24.4
	Valuation allowance	(11.2		)	(12.1		)
Total net current deferred tax assets		11.9			12.3

Noncurrent:
	Pension liability	21.1			22.1
	Property, plant and equipment	2.0			2.4
	Post-retirement benefits other than pension	0.7			0.3
	Net operating loss carryforwards	209.1			158.8
	Capital loss carryover	3.0			3.5
	Other noncurrent assets	21.3			26.1
	Total noncurrent deferred tax assets	257.2			213.2
	Valuation allowance	(214.6		)	(167.4		)
Total net noncurrent deferred tax assets		42.6			45.8

Total deferred tax assets, net		$	54.5		$	58.1

Net deferred tax liabilities		$	(34.5	)	$	(34.2	)

Federal and Foreign Tax Operating Loss Carry-Forwards Expiring

At January 1, 2016, we had approximately $765.4 million of federal and foreign tax operating loss carry-forwards expiring as follows (U.S. dollars in millions):



Expires:
2016	$	21.0
2017	29.3
2018	5.8
2019	0.5
2020 and beyond	31.3
No expiration	677.5
	$	765.4

Reconciliation of Beginning and Ending Amount of Uncertain Tax Positions Excluding Interest and Penalties

A reconciliation of the beginning and ending amount of uncertain tax positions excluding interest and penalties is as follows (U.S. dollars in millions):



	January 1, 2016			December 26, 2014		December 27, 2013
Beginning balance	$	3.5		$	3.0	$	4.1
Gross decreases - tax position in prior period	—			—		(0.2		)
Gross increases - current-period tax positions	0.8			0.5		1.4
Settlements	—			—		(2.3		)
Lapse of statute of limitations	(0.4		)	—		—
Ending balance	$	3.9		$	3.5	$	3.0