Income Taxes (Tables)

12 Months Ended

Dec. 29, 2023

Income Tax Disclosure [Abstract]

Provision for (Benefit from) Income Taxes

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

	Year ended
	December 29, 2023		December 30, 2022		December 31, 2021
Current:
U.S. federal income tax	$	0.1	$	0.3	$	(2.1)
State	1.0		0.7		0.3
Non-U.S.	20.8		16.6		18.8
	21.9		17.6		17.0
Deferred:
U.S. federal income tax	(1.1)		—		(5.0)
State	(0.2)		—		(1.2)
Non-U.S.	(2.5)		2.5		(8.8)
	(3.8)		2.5		(15.0)
	$	18.1	$	20.1	$	2.0

Schedule of Income Before Income Tax, Domestic and Foreign

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

	Year ended
	December 29, 2023		December 30, 2022		December 31, 2021
U.S.	$	(136.4)	$	1.0	$	(24.7)
Non-U.S.	152.9		116.8		106.6
	$	16.5	$	117.8	$	81.9

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 (1)
	December 29, 2023		December 30, 2022		December 31, 2021
Income tax provision computed at the U.S. statutory federal rate	$	3.4	$	24.7	$	17.2
Effect of tax rates on non-U.S. operations	(70.8)		(71.7)		(67.9)
Provision for uncertain tax positions	1.5		1.7		2.3
Non-deductible interest	23.1		0.7		0.6
Foreign exchange	8.1		2.8		(6.1)
Non-deductible intercompany charges	—		0.5		0.1
Non-deductible differences	(0.7)		0.9		2.0
Non-taxable income/loss	(0.5)		0.6		(4.8)
Non-deductible impairment charges	5.4		—		1.1
Adjustment to deferred balances	—		—		0.1
Other	0.8		(3.3)		3.1
State tax benefit	(4.4)		0.1		(1.0)
Other taxes in lieu of income	3.5		5.5		4.5
Change in deferred rate	—		—		0.1
Benefit from net operating loss carryback provision (C.A.R.E.S. Act)	—		—		(0.8)
Increase in valuation allowance (2)	48.7		57.6		51.5
Provision for income taxes	$	18.1	$	20.1	$	2.0

  _____________

(1) Certain amounts from prior year have been conformed to current year presentation

(2) 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 29,		December 30,
Deferred tax liabilities:		2023		2022
	Allowances and other accrued liabilities	$	(0.2)	$	(0.1)
	Inventories	(14.8)		(17.1)
	Property, plant and equipment	(69.7)		(75.7)
	Equity in earnings of unconsolidated companies	(0.5)		(0.2)
	Pension obligations	(2.7)		(2.6)
	Other noncurrent deferred tax liabilities	(28.1)		(26.8)
	ROU assets	(21.6)		(21.0)
	Total noncurrent deferred tax liabilities	$	(137.6)	$	(143.5)
Deferred tax assets:
	Allowances and other accrued assets	$	13.9	$	17.9
	Inventories	9.6		5.9
	Pension obligations	22.4		21.4
	Property, plant and equipment	3.6		1.0
	Post-retirement benefits other than pension	2.7		3.6
	Net operating loss carryforwards	434.5		434.2
	Capital loss carryover	2.2		2.1
	Other noncurrent assets	129.7		93.9
	Operating lease	23.5		22.9
	Total noncurrent deferred tax assets	642.1		602.9
	Valuation allowance	(525.7)		(483.5)
	Total deferred tax assets, net	$	116.4	$	119.4
Net deferred tax liabilities		$	(21.2)	$	(24.1)

Federal and Foreign Tax Operating Loss Carry-Forwards Expiring

At December 29, 2023, we had approximately $1,664.4 million of federal and foreign tax operating loss carryforwards expiring as follows (U.S. dollars in millions):

 

Expires:
2024	$	1.4
2025	24.3
2026	20.1
2027	11.2
2028 and beyond	13.3
No expiration	1,594.1
	$	1,664.4

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): 

	December 29, 2023		December 30, 2022		December 31, 2021
Beginning balance	$	6.1	$	5.0	$	3.5
Gross increases - current-period tax positions	1.2		1.2		1.7
Settlements	(1.1)		—		—
Foreign exchange	0.2		(0.1)		(0.2)
Ending balance	$	6.4	$	6.1	$	5.0