Income Taxes (Tables)

12 Months Ended

Dec. 29, 2019

Components of Income Tax Provision (Benefit)


Income tax provision/(benefit) - (in millions):	2019		2018		2017
Current
Federal	$	66.0	$	22.9	$	54.0
State	10.6		8.1		6.4
Foreign	28.4		31.8		22.8
Total current	105.0		62.8		83.2
Deferred
Federal	(37.0)		2.3		(10.7)
State	(2.3)		0.6		(3.6)
Foreign	5.7		(5.6)		(9.1)
Total deferred	(33.6)		(2.7)		(23.4)
Provision for income taxes	$	71.4	$	60.1	$	59.8

Reconciliation of the Statutory Federal Income Tax Rate to the Actual Effective Income Tax Rate

The following is a reconciliation of the statutory federal income tax rate to the actual effective income tax rate:


Tax rate reconciliation:	2019		2018		2017
U.S. federal statutory income tax rate	21.0	%	21.0	%	35.0	%
State and local taxes, net of federal benefit	2.1		1.9		1.8
Research and development tax credits	(2.1)		(2.3)		(3.2)
Investment tax credits	(1.1)		(1.2)		(1.5)
Qualified production activity deduction	—		—		(1.3)
Foreign rate differential	0.7		1.1		(4.2)
Net reversals for unrecognized tax benefits	(0.6)		(0.3)		(0.8)
Stock-based compensation	(3.3)		(3.3)		(3.1)
U.S. export sales	(2.4)		(1.3)		—
Provisional charges related to U.S. tax reform	—		(0.2)		1.6
Other	0.8		(0.1)		(3.5)
Effective income tax rate	15.1	%	15.3	%	20.8	%

Schedule of Deferred Tax Assets and Liabilities

The categories of assets and liabilities that have resulted in differences in the timing of the recognition of income and expense were as follows (in millions):



Deferred income tax assets:	2019		2018
Long-term:
Accrued liabilities	$	20.5	$	20.3
Inventory valuation	14.5		11.9
Accrued vacation	7.8		7.8
Deferred compensation and other benefit plans	30.2		20.0
Postretirement benefits other than pensions	1.8		2.5
Operating lease liabilities	33.5		—
Capitalization of research and development	38.8		—
Tax credit and net operating loss carryforward	30.2		43.8

Valuation allowance	(6.1)		(5.4)
Total deferred income tax assets	171.2		100.9

Deferred income tax liabilities:
Long-term:
Property, plant and equipment differences	16.0		20.5

Intangible amortization	133.5		112.0
Operating lease right-of-use assets	33.5		—
Other	5.5		7.1
Total deferred income tax liabilities	188.5		139.6

Net deferred income tax liabilities	$	17.3	$	38.7

Rollforward of our Unrecognized Tax Benefits


Unrecognized tax benefits (in millions):	2019		2018		2017
Beginning of year	$	25.0	$	26.0	$	24.5
Increase in prior year tax positions (a)	4.2		2.3		0.5
Increase for tax positions taken during the current period	4.3		2.1		9.8
Reduction related to settlements with taxing authorities	(4.6)		(0.1)		—
Reduction related to lapse of the statute of limitations	(4.3)		(5.2)		(8.8)
Impact of exchange rate changes	(0.1)		(0.1)		—

End of year	$	24.5	$	25.0	$	26.0
a) Includes the impact of acquisitions in all years.