Income Taxes (Tables)

12 Months Ended

Dec. 28, 2013

Geographic Components of Earnings Before Income Taxes

The geographic components of earnings before income taxes are as follows:



(In millions)	2013		2012		2011
United States	$	76.7	$	38.3	$	105.5
Foreign	51.0		55.9		63.4
Earnings before income taxes	$	127.7	$	94.2	$	168.9

Provisions for Income Taxes

The provisions for income taxes consist of the following:



(In millions)	2013			2012			2011
Current expense:
Federal	$	37.1		$	15.3		$	22.9
State	2.2			1.4			0.1
Foreign	15.0			3.1			15.1
Deferred expense (credit):
Federal	(23.5		)	(5.1		)	5.8
State	(3.0		)	(0.4		)	0.5
Foreign	(1.1		)	(0.9		)	1.2
Income tax provision	$	26.7		$	13.4		$	45.6

Reconciliation of Income Tax Expense, Net of Federal Income Tax Rate

A reconciliation of the Company’s total income tax expense and the amount computed by applying the statutory federal income tax rate of 35% to earnings before income taxes is as follows:



(In millions)	2013			2012			2011
Income taxes at U.S. statutory rate (35%)	$	44.7		$	33.0		$	59.1
State income taxes, net of federal income tax	0.5			0.2			1.0
(Nontaxable earnings) non-deductible losses of foreign affiliates:
Cayman Islands	(5.4		)	(4.6		)	(3.2		)
Bermuda	2.7			1.7			—
Dominican Republic	1.7			(2.0		)	(1.4		)
Research and development credits	(2.2		)	—			(0.6		)
Foreign earnings taxed at rates different from the U.S. statutory rate:
Hong Kong	(17.1		)	(12.2		)	(12.8		)
Other	3.1			(1.6		)	(1.8		)
Adjustments for uncertain tax positions	(1.2		)	(6.7		)	3.5
Change in valuation allowance	0.1			0.7			1.1
Change in state tax rates	(2.0		)	—			—
Non deductible expenses	0.9			4.9			0.7
Other	0.9			—			—
Income tax provision	$	26.7		$	13.4		$	45.6

Significant Components of Deferred Income Tax Assets and Liabilities

Significant components of the Company’s deferred income tax assets and liabilities are as follows:



(In millions)	December 28, 2013			December 29, 2012
Deferred income tax assets:
Accounts receivable and inventory valuation allowances	$	18.7		$	16.5
Deferred compensation accruals	11.0			9.9
Accrued pension expense	26.6			58.9
Stock-based compensation	16.2			7.7
Net operating loss, capital loss and foreign tax credit carryforward	32.1			3.9
Other amounts not deductible until paid	9.2			10.1
Other	0.7			1.4
Total gross deferred income tax assets	114.5			108.4
Less valuation allowance	(29.7		)	(3.2		)
Net deferred income tax assets	84.8			105.2
Deferred income tax liabilities:
Tax depreciation in excess of book depreciation	(5.3		)	(9.9		)
Intangible assets	(294.8		)	(302.0		)
Other	(6.1		)	(4.9		)
Total deferred income tax liabilities	(306.2		)	(316.8		)
Net deferred income tax liabilities	$	(221.4	)	$	(211.6	)

Unrecognized Tax Benefits

The following table summarizes the activity related to the Company’s unrecognized tax benefits:



(In millions)	2013			2012
Beginning balance	$	9.8		$	13.8
Increase related to business acquisition	—			2.6
Increases related to current year tax positions	2.0			1.5
Decreases related to prior years positions	(0.4		)	(4.8		)
Settlements	—			(2.7		)
Decrease due to lapse of statute	(2.8		)	(0.6		)
Ending balance	$	8.6		$	9.8