Income Taxes (Tables)

12 Months Ended

Dec. 28, 2018

Provision for (Benefit from) Income Taxes

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



	Year ended
	December 28, 2018			December 29, 2017			December 30, 2016
Current:
U.S. federal income tax	$	(0.4	)	$	8.4		$	7.6
State	0.1			1.5			1.4
Non-U.S.	12.8			13.4			11.0
	12.5			23.3			20.0
Deferred:
U.S. federal income tax	2.1			2.1			(3.3		)
State	1.3			0.5			(0.6		)
Non-U.S.	0.2			(1.0		)	(4.3		)
	3.6			1.6			(8.2		)
	$	16.1		$	24.9		$	11.8

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
	December 28, 2018			December 29, 2017		December 30, 2016
U.S.	$	11.9		$	31.1	$	16.0
Non-U.S.	(11.7		)	113.0		221.4
	$	0.2		$	144.1	$	237.4

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
	December 28, 2018			December 29, 2017			December 30, 2016
Income tax provision (benefit) computed at the U.S. statutory federal rate	$	—		$	50.4		$	83.1
Effect of tax rates on non-U.S. operations	(33.2		)	(67.4		)	(98.8		)
Provision for uncertain tax positions	—			0.7			(0.5		)
Non-deductible interest	2.3			2.4			2.0
Foreign exchange	(11.5		)	2.3			15.1
Non-deductible intercompany charges	(0.1		)	—			1.2
Non-deductible differences	0.6			6.0			1.7
Non-taxable income/loss	(1.5		)	0.3			11.8
Non-deductible goodwill impairment	—			—			0.4
Non-deductible impairment charges	3.6			—			—
Adjustment to deferred balances	0.4			0.1			—
Other	2.2			(0.9		)	0.9
Other taxes in lieu of income	2.4			1.8			1.9
Change in deferred rate	(1.3		)	11.7			(3.4		)
Increase (decrease) in valuation allowance ⁽¹⁾	52.2			17.5			(3.6		)
Provision for income taxes	$	16.1		$	24.9		$	11.8

_____________

⁽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):



		December 28,			December 29,
Deferred tax liabilities:		2018			2017
	Allowances and other accrued liabilities	$	—		$	—
	Inventories	(13.7		)	(15.3		)
	Property, plant and equipment	(70.2		)	(63.2		)
	Equity in earnings of unconsolidated companies	(0.1		)	(0.1		)
	Pension obligations	(2.5		)	(2.1		)
	Other noncurrent deferred tax liabilities	(6.5		)	(5.6		)

Total noncurrent deferred tax liabilities		$	(93.0	)	$	(86.3	)

Deferred tax assets:
	Allowances and other accrued assets	$	10.6		$	10.6
	Inventories	5.6			5.3
	Pension obligations	24.8			24.9
	Property, plant and equipment	2.3			1.5
	Post-retirement benefits other than pension	1.0			1.1
	Net operating loss carryforwards	287.1			249.7
	Capital loss carryover	1.6			2.6
	Other noncurrent assets	26.9			20.5
	Total noncurrent deferred tax assets	359.9			316.2
	Valuation allowance	(291.8		)	(257.1		)

Total deferred tax assets, net		$	68.1		$	59.1

Net deferred tax liabilities		$	(24.9	)	$	(27.2	)

Federal and Foreign Tax Operating Loss Carry-Forwards Expiring

At December 28, 2018, we had approximately $1,057.2 million of federal and foreign tax operating loss carryforwards expiring as follows (U.S. dollars in millions):



Expires:
2019	$	3.9
2020	17.8
2021	26.2
2022	6.4
2023 and beyond	16.0
No expiration	986.9
	$	1,057.2

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):



	December 28, 2018			December 29, 2017			December 30, 2016
Beginning balance	$	3.2		$	3.2		$	3.9
Gross decreases - tax position in prior period	—			—			—
Gross increases - current-period tax positions	0.1			0.1			0.1
Settlements	—			—			—
Lapse of statute of limitations	(0.3		)	(0.1		)	(0.8		)
Foreign exchange	(0.1		)	—			—
Ending balance	$	2.9		$	3.2		$	3.2