Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Geographic Components of Earnings Before Income Taxes

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



	Fiscal Year
(In millions)	2016		2015		2014
United States	$	54.7	$	102.1	$	132.4
Foreign	55.8		62.5		49.1
Earnings before income taxes	$	110.5	$	164.6	$	181.5

Provisions for Income Taxes

The provisions for income taxes consist of the following:



	Fiscal Year
(In millions)	2016			2015			2014
Current expense:
Federal	$	16.0		$	48.9		$	42.1
State	1.4			5.2			5.6
Foreign	11.3			11.6			18.0
Deferred expense (credit):
Federal	(6.9		)	(22.0		)	(9.3		)
State	(0.3		)	(1.9		)	(6.6		)
Foreign	1.5			(0.4		)	(2.2		)
Income tax provision	$	23.0		$	41.4		$	47.6

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:



	Fiscal Year
(In millions)	2016			2015			2014
Income taxes at U.S. statutory rate (35%)	$	38.7		$	57.6		$	63.5
State income taxes, net of federal income tax	(6.1		)	1.8			3.7
(Nontaxable earnings) non-deductible losses of foreign affiliates:
Cayman Islands	(0.4		)	(0.4		)	(5.5		)
Other	0.2			(1.9		)	0.7
Foreign earnings taxed at rates different from the U.S. statutory rate:
Hong Kong	(17.3		)	(18.1		)	(16.4		)
Other	3.3			0.2			3.6
Adjustments for uncertain tax positions	0.2			0.1			—
Change in valuation allowance	2.0			(1.3		)	(19.2		)
Change in state tax rates	(0.1		)	(0.7		)	(6.0		)
Gain on intercompany sale of subsidiary stock	—			—			23.2
Non-deductible expenses	1.9			3.5			1.1
Other	0.6			0.6			(1.1		)
Income tax provision	$	23.0		$	41.4		$	47.6

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 31, 2016			January 2, 2016
Deferred income tax assets:
Accounts receivable and inventory valuation allowances	$	17.2		$	22.1
Deferred compensation accruals	9.0			7.9
Accrued pension expense	53.7			40.1
Stock-based compensation	22.6			20.0
Net operating loss, capital loss and foreign tax credit carryforward	9.7			13.9
Book over tax depreciation/amortization	2.0			3.0
Tenant lease expenses	5.0			1.7
Other	9.3			8.7
Total gross deferred income tax assets	128.5			117.4
Less valuation allowance	(11.5		)	(9.5		)
Net deferred income tax assets	117.0			107.9
Deferred income tax liabilities:
Intangible assets	(270.5		)	(276.3		)
Other	(5.2		)	(6.5		)
Total deferred income tax liabilities	(275.7		)	(282.8		)
Net deferred income tax liabilities	$	(158.7	)	$	(174.9	)

Unrecognized Tax Benefits

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



	Fiscal Year
(In millions)	2016			2015
Beginning balance	$	8.7		$	8.6
Increases related to current year tax positions	1.4			1.1
Decreases related to prior year positions	(1.0		)	(0.6		)
Decrease due to lapse of statute	(0.2		)	(0.4		)
Ending balance	$	8.9		$	8.7