INCOME TAXES (Tables)

12 Months Ended

Jan. 03, 2020

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense was comprised of:

	Years Ended
(In millions)	January 3, 2020		December 28, 2018		December 29, 2017
Current:
Foreign	$	21.7	$	24.2	$	21.7
State	10.3		9.4		8.3
Federal	39.9		34.2		99.4
	71.9		67.8		129.4
Deferred:
Foreign	(3.5)		(2.5)		0.2
State	0.5		0.2		2.0
Federal	(38.4)		1.4		(3.0)
	(41.4)		(0.9)		(0.8)
Income tax expense	$	30.5	$	66.9	$	128.6

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations of income tax expense to the statutory corporate federal tax rate of 21% were as follows:

	Years Ended
(In millions)	January 3, 2020		December 28, 2018		December 29, 2017
Statutory tax expense	$	61.6	$	46.9	$	83.2
Increase (reduction) in taxes resulting from:
State income taxes, net	9.7		7.9		4.4
Foreign tax effects	3.5		11.9		2.0
Change in valuation allowance	(42.3)		(0.6)		(0.3)
Impact of tax legislation	—		(2.1)		35.6
Foreign derived intangible income deduction	(4.5)		—		—
Other, net	2.5		2.9		3.7
Income tax expense	$	30.5	$	66.9	$	128.6

Schedule of Deferred Tax Assets and Liabilities

Deferred Income Taxes: Significant components of the Company's deferred tax assets (liabilities) included in "Other assets" and "Other liabilities" on the Consolidated Balance Sheets were as follows:

(In millions)	January 3, 2020		December 28, 2018
Deferred compensation and other postretirement benefits	$	38.4	$	36.0
Foreign NOL carryforwards and other	26.1		28.1
Operating lease obligations	67.6		1.6
Accrued expenses and other	9.1		8.4
Inventory reserves	8.7		8.5
Unrealized foreign exchange	0.5		2.7
Allowance for doubtful accounts	6.5		7.9
Federal and state credits	54.5		50.6
Gross deferred tax assets	$	211.4	$	143.8
Property, equipment, intangibles and other	(74.8)		(90.1)
Operating lease assets	(66.5)		—
Gross deferred tax liabilities	$	(141.3)	$	(90.1)
Deferred tax assets, net of deferred tax liabilities	70.1		53.7
Valuation allowance	(38.3)		(79.1)
Net deferred tax assets (liabilities)	$	31.8	$	(25.4)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal 2017, 2018 and 2019 is as follows:

(In millions)
Balance at December 30, 2016	$	5.0
Reductions for tax positions of prior years	(0.3)
Balance at December 29, 2017	$	4.7
Additions for tax positions of prior years	0.6
Reductions for tax positions of prior years	(0.6)
Balance at December 28, 2018	$	4.7
Additions for tax positions of prior years	0.1
Reductions for tax positions of prior years	(2.6)
Balance at January 3, 2020	$	2.2