Income Taxes (Tables)

12 Months Ended

Jan. 02, 2022

Income Tax Disclosure [Abstract]

Earnings (Loss) From Continuing Operations Before Taxes Per Jurisdiction

Earnings (loss) before taxes and equity in net earnings (loss) of affiliate for the years 2021, 2020 and 2019 were taxed under the following jurisdictions:

	2021		2020		2019
	(In millions of dollars)
Domestic	$	30.5	$	(84.7)	$	46.6
Foreign	155.3		(22.1)		69.8
Total	$	185.8	$	(106.8)	$	116.4

Provision for Income Taxes From Continuing Operations

The provision for income taxes was as follows:

	2021		2020		2019
	(In millions of dollars)
Current tax expense:
U.S. federal	$	3.5	$	8.2	$	4.7
U.S. state and local	2.1		5.9		3.0
Foreign	7.9		9.0		11.0
Total current	13.5		23.1		18.7
Deferred tax (benefit) expense:
U.S. federal	(11.8)		(36.0)		(19.4)
U.S. state and local	(0.7)		(12.3)		(1.6)
Foreign	34.1		(8.8)		2.7
Total deferred	21.6		(57.1)		(18.3)
Total provision	$	35.1	$	(34.0)	$	0.4

Deferred Taxes

The deferred tax assets and liabilities are comprised of the following:

	2021		2020
	(In millions of dollars)
Depreciation and amortization	$	(9.5)	$	(10.5)
Employee compensation and benefit plans	70.4		61.4
Accrued payroll and related taxes	22.1		29.6
Accrued workers’ compensation	11.7		13.4
Investment in Persol Holdings	(70.9)		(39.1)
Investment in equity affiliate	(13.3)		(13.1)
Operating lease liabilities	21.8		21.7
Loss carryforwards	36.4		33.6
Credit carryforwards	175.0		161.2
Other, net	6.5		4.3
Valuation allowance	(19.0)		(20.2)
Net deferred tax assets	$	231.2	$	242.3

The deferred tax balance is classified in the consolidated balance sheet as:

	2021		2020
	(In millions of dollars)
Deferred tax asset	$	302.8	$	282.0
Other long-term liabilities	(71.6)		(39.7)
	$	231.2	$	242.3

Differences Between Income Taxes From Continuing Operations and U.S. Statutory Rate

The differences between income taxes from continuing operations for financial reporting purposes and the U.S. statutory rate of 21% in 2021, 2020, and 2019 as follows:

	2021		2020		2019
	(In millions of dollars)
Income tax based on statutory rate	$	39.0	$	(22.4)	$	24.4
State income taxes, net of federal benefit	1.1		(5.1)		1.1
Foreign tax rate differential	12.2		2.8		4.6
General business credits	(9.7)		(9.9)		(16.7)
Life insurance cash surrender value	(5.2)		(4.6)		(6.5)
Foreign items	1.7		(1.8)		0.8
Sale of Brazil operations	—		(6.6)		—
Foreign business taxes	2.1		3.0		3.8
Tax law change	(5.2)		(1.7)		(0.2)
Change in deferred tax realizability	(0.7)		0.4		(10.6)
Non-deductible goodwill impairment	—		11.9		—
Other	(0.2)		—		(0.3)
Total	$	35.1	$	(34.0)	$	0.4

Reconciliation of Unrecognized Tax Benefits

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

	2021		2020		2019
	(In millions of dollars)
Balance at beginning of the year	$	0.5	$	0.9	$	1.1
Additions for prior years’ tax positions	0.2		—		—
Reductions for prior years’ tax positions	—		—		—
Additions for settlements	—		—		—
Reductions for settlements	—		—		—
Reductions for expiration of statutes	(0.1)		(0.4)		(0.2)
Balance at end of the year	$	0.6	$	0.5	$	0.9