Income Taxes (Tables)

12 Months Ended

Jan. 03, 2015

Income Tax Disclosure [Abstract]

Schedule of Earnings Before Taxes

Earnings before taxes is summarized as follows:

	2014		2013		2012
	(dollars in thousands)
Domestic	$	240,936	$	195,435	$	157,471
Foreign	39,854		30,346		16,969
Total	$	280,790	$	225,781	$	174,440

Schedule of Provision of Taxes

The provision for income taxes is summarized as follows:

	2014		2013			2012
	(dollars in thousands)
Federal	$	69,536	$	60,232		$	42,660
State and local	9,316		3,248			7,216
Foreign	8,626		8,373			3,867
Total	$	87,478	$	71,853		$	53,743
Current	$	72,137	$	74,828		$	53,826
Deferred	15,341		(2,975		)	(83		)
Total	$	87,478	$	71,853		$	53,743

Schedule of Effective Income Tax Reconciliation

Reconciliation of the differences between income taxes computed at the federal statutory rate to the effective rate are as follows:

	2014		2013		2012
U.S. federal statutory tax rate	35.0	%	35.0	%	35.0	%
State taxes, net of federal benefit	2.2		0.9		2.7
Tax relief for U.S. manufacturers	(2.3	)	(2.6	)	(2.4	)
Permanent book vs. tax differences	(2.0	)	(1.2	)	(1.6	)
Foreign tax rate differentials	(1.9	)	(1.0	)	(1.5	)
Reserve adjustments and other	0.2		0.7		(1.4	)
Consolidated effective tax	31.2	%	31.8	%	30.8	%

Schedule of Deferred Assets and Liabilities

At January 3, 2015 and December 28, 2013, the company had recorded the following deferred tax assets and liabilities:

	2014			2013
	(dollars in thousands)
Deferred tax assets:
Federal net operating loss carryforwards	$	7,020		$	6,382
Compensation related	17,092			25,321
Accrued retirement benefits	8,211			6,234
Inventory reserves	6,503			5,971
Product liability and workers compensation reserves	7,810			7,902
Warranty reserves	9,191			7,139
Receivable related reserves	3,277			2,222
UNICAP	3,727			5,123
State net operating loss carryforwards	2,731			785
Interest rate swap	157			419
Other	18,154			12,091
Gross deferred tax assets	83,873			79,589
Valuation allowance	—			(466		)
Deferred tax assets	$	83,873		$	79,123
Deferred tax liabilities:
Intangible assets	$	(111,501	)	$	(82,188	)
Foreign tax earnings repatriation	(3,029		)	(2,552		)
LIFO reserves	(90		)	(22		)
Depreciation	(1,366		)	(1,724		)
Other	(2,745		)	(2,092		)
Deferred tax liabilities	$	(118,731	)	$	(88,578	)
Net deferred tax assets (liabilities)	$	(34,858	)	$	(9,455	)
Current deferred asset	$	51,017		$	50,337
Long-term deferred asset	2,925			1,641
Long-term deferred liability	(88,800		)	(61,433		)
Net deferred tax assets (liabilities)	$	(34,858	)	$	(9,455	)

Schedule of Unrecognized Tax Benefits

The following table summarizes the activity related to the unrecognized tax benefits for the fiscal years ended December 29, 2012, December 28, 2013 and January 3, 2015 (dollars in thousands):

Balance at December 31, 2011	$	15,591
Increases to current year tax positions	1,572
Increase to prior year tax positions	84
Decrease to prior year tax positions	(1,289		)
Settlements	(3,836		)
Balance at December 29, 2012	$	12,122
Increases to current year tax positions	1,718
Increase to prior year tax positions	2
Decrease to prior year tax positions	(532		)
Settlements	—
Lapse of statute of limitations	(583		)
Balance at December 28, 2013	$	12,727
Increases to current year tax positions	3,270
Increase to prior year tax positions	1,105
Decrease to prior year tax positions	(189		)
Settlements	(4,092		)
Lapse of statute of limitations	(347		)
Balance at January 3, 2015	$	12,474

Summary of Income Tax Examinations

A summary of the tax years that remain subject to examination in the company’s major tax jurisdictions are:

United States – federal	2012 – 2014
United States – states	2004 – 2014
Australia	2011 – 2014
Brazil	2010 – 2014
Canada	2009 – 2014
China	2005 – 2014
Czech Republic	2013 – 2014
Denmark	2011 – 2014
France	2011 – 2014
Germany	2012 – 2014
India	2013 – 2014
Italy	2010 – 2014
Luxembourg	2011 – 2014
Mexico	2009 – 2014
Philippines	2011 – 2014
South Korea	2009 – 2011
Spain	2009 – 2014
Taiwan	2008 – 2012
United Kingdom	2011 – 2014