Income Taxes (Tables)

12 Months Ended

Dec. 28, 2019

Earnings before taxes is summarized as follows (in thousands):



	2019		2018		2017
Domestic	$	336,688	$	328,870	$	290,866
Foreign	125,931		94,643		92,663
Total	$	462,619	$	423,513	$	383,529

Schedule of Provision of Taxes

The provision for income taxes is summarized as follows (in thousands):



	2019		2018		2017
Federal	$	69,074	$	66,359	$	48,688
State and local	16,203		16,035		9,076
Foreign	25,102		23,967		27,637
Total	$	110,379	$	106,361	$	85,401

Current	$	88,167	$	85,872	$	99,893
Deferred	22,212		20,489		(14,492		)
Total	$	110,379	$	106,361	$	85,401

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:



	2019		2018		2017
U.S. federal statutory tax rate	21.0	%	21.0	%	35.0	%

State taxes, net of federal benefit	3.2		3.0		1.5
U.S. domestic manufacturers deduction	—		—		(2.1	)
Permanent differences	0.6		0.2		(0.7	)
Foreign income tax rate at rates other than U.S. statutory	0.2		1.3		(1.6	)
Tax Cuts and Jobs Act of 2017 deferred tax changes	—		0.2		(10.0	)
Tax Cuts and Jobs Act of 2017 transition tax	—		(0.1	)	2.0
Change in valuation allowances ⁽¹⁾	0.1		(0.5	)	(2.0	)
Tax on unremitted earnings	0.3		—		1.5
Other	(1.5	)	—		(1.3	)
Consolidated effective tax	23.9	%	25.1	%	22.3	%

Schedule of Deferred Assets and Liabilities

At December 28, 2019 and December 29, 2018, the company had recorded the following deferred tax assets and liabilities (in thousands):



	2019			2018
Deferred tax assets:
Compensation related	$	4,744		$	3,776
Pension and post-retirement benefits	48,716			41,502
Inventory reserves	15,166			14,441
Accrued liabilities and reserves	17,321			13,835
Warranty reserves	16,550			10,641
Operating lease liability	17,521			—
Net operating loss carryforwards	17,873			36,629
Other	22,579			10,531
Gross deferred tax assets	160,470			131,355
Valuation allowance	(7,754		)	(26,023		)
Deferred tax assets	$	152,716		$	105,332

Deferred tax liabilities:
Intangible assets	$	(203,721	)	$	(167,197	)
Depreciable assets	(18,020		)	(13,617		)
Operating lease right-of-use assets	(17,542		)	—
Other	(10,001		)	(6,226		)

Deferred tax liabilities	$	(249,284	)	$	(187,040	)

Net deferred tax assets (liabilities)	$	(96,568	)	$	(81,708	)

Long-term deferred asset	36,932			32,188
Long-term deferred liability	(133,500		)	(113,896		)
Net deferred tax assets (liabilities)	$	(96,568	)	$	(81,708	)

Schedule of Unrecognized Tax Benefits

The following table summarizes the activity related to the unrecognized tax benefits for the fiscal years ended December 30, 2017, December 29, 2018 and December 28, 2019 (in thousands):



Balance at December 30, 2017	$	29,930

Increases to current year tax positions	3,912
Increase to prior year tax positions	2,860
Decrease to prior year tax positions	(569		)
Lapse of statute of limitations	(4,221		)

Balance at December 29, 2018	$	31,912

Increases to current year tax positions	4,216
Increase to prior year tax positions	254
Lapse of statute of limitations	(4,823		)

Balance at December 28, 2019	$	31,559