Income Taxes (Tables)

12 Months Ended

Jan. 02, 2016

Schedule of Components of Income Tax Expense (Benefit)

Significant components of the provision for income taxes including those related to noncontrolling interest and discontinued operations are as follows:



(In thousands)	2015			2014			2013
Current:
Federal	$	27,768		$	22,738		$	12,077
State	5,258			4,623			1,036
Foreign	1,713			972			2,153
Current provision	34,739			28,333			15,266
Deferred:
Federal	15,348			13,692			16,614
State	2,217			2,013			2,558
Foreign	(540		)	(262		)	(1,100		)
Deferred provision	17,025			15,443			18,072
	$	51,764		$	43,776		$	33,338

Schedule of Effective Income Tax Rate Reconciliation

The differences between the actual tax expense and tax expense computed at the statutory U.S. Federal tax rate are explained as follows:



	2015			2014			2013
Federal statutory tax expense	$	55,020		$	36,836		$	33,957
State taxes, net of federal tax effect	4,269			4,118			2,469
Credit for increasing research activities	(3,320		)	(2,569		)	(1,338		)
Deduction related to domestic production activities	(3,320		)	(1,751		)	(1,396		)
Valuation allowance	—			2,474			—
Goodwill Impairment	—			4,298			—
Change in uncertain tax positions	(1,344		)	1,099			773
Other – net	459			(729		)	(1,127		)
Total income tax expense	$	51,764		$	43,776		$	33,338

Schedule of Deferred Tax Assets and Liabilities

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



(In thousands)	2015			2014
Deferred Taxes
Allowance for doubtful accounts	$	1,089		$	1,240
Compensation	15,491			16,817
Inventory differences	4,497			5,691
Marketing accrual	1,355			1,454
Stock-based compensation	11,923			9,906
Accrued post-retirement benefit obligations	6,682			6,341
OCI tax effected items	3,169			3,887
Vacation accrual	4,181			3,875
Warranty Accrual	6,052			6,023
Other – net	12,167			10,774
Total deferred tax assets	$	66,606		$	66,008
Deferred income	(4,907		)	(4,836		)
Goodwill	(79,471		)	(80,366		)
Prepaids	(7,876		)	(7,724		)
Tax over book depreciation	(59,308		)	(41,770		)
Total deferred tax liabilities	$	(151,562	)	$	(134,696	)
Valuation allowance	(3,978		)	(3,413		)
Total net deferred tax liabilities	$	(88,934	)	$	(72,101	)

Current net deferred tax assets	—			17,310
Long term net deferred tax liabilities	(88,934		)	(89,411		)
Total net deferred tax liabilities	$	(88,934	)	$	(72,101	)

Summary of Valuation Allowance

The valuation allowance for deferred tax assets is as follows:



Valuation allowance for deferred tax asset (in thousands)	Balance at beginning of period	Charged to expenses	Adjustments to balance sheet		Balance at end of period
Year ended January 2, 2016	3,413	—	565		3,978
Year ended January 3, 2015	1,579	2,474	(640	)	3,413
Year ended December 28, 2013	1,580	—	(1	)	1,579

Summary of Income Tax Contingencies

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



(in thousands)	2015			2014
Unrecognized tax benefits, beginning of period	$	4,250		$	2,809
Increases in positions due to purchase accounting	—			400
Increases in positions taken in a prior period	82			406
Decreases in positions taken in a prior period	(1,611		)	(124		)
New positions taken in a current period	793			1,422
Decrease due to settlements	—			—
Decrease due to lapse of statute of limitations	(656		)	(663		)
Unrecognized tax benefits, end of period	$	2,858		$	4,250