Income Taxes (Tables)

12 Months Ended

Jan. 02, 2021

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


	2020		2019		2018
Domestic	$	178,813	$	336,688	$	328,870
Foreign	89,244		125,931		94,643
Total	$	268,057	$	462,619	$	423,513

Schedule of Provision of Taxes

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


	2020		2019		2018
Federal	$	36,908	$	69,074	$	66,359
State and local	8,815		16,203		16,035
Foreign	15,040		25,102		23,967
Total	$	60,763	$	110,379	$	106,361

Current	$	44,342	$	88,167	$	85,872
Deferred	16,421		22,212		20,489
Total	$	60,763	$	110,379	$	106,361

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:


	2020		2019		2018
U.S. federal statutory tax rate	21.0	%	21.0	%	21.0	%

State taxes, net of federal benefit	3.2		3.2		3.0
Permanent differences	(0.4)		0.6		0.2
Foreign income tax rate at rates other than U.S. statutory	0.5		0.2		1.3
Deferred tax changes	(0.7)		—		0.2
Tax Cuts and Jobs Act of 2017 transition tax	—		—		(0.1)
Change in valuation allowances (1)	(0.1)		0.1		(0.5)
Tax on unremitted earnings	1.2		0.3		—
Other	(2.0)		(1.5)		—
Consolidated effective tax	22.7	%	23.9	%	25.1	%

Schedule of Deferred Assets and Liabilities

At January 2, 2021 and December 28, 2019, the company had recorded the following deferred tax assets and liabilities (in thousands):


	2020		2019
Deferred tax assets:
Compensation related	$	12,328	$	4,744
Pension and post-retirement benefits	88,709		48,716
Inventory reserves	14,732		15,166
Accrued liabilities and reserves	22,049		17,321
Warranty reserves	17,890		16,550
Operating lease liability	16,180		17,521
Interest rate swaps	12,997		6,075
Net operating loss carryforwards	20,747		17,873
Other	17,187		16,504
Gross deferred tax assets	222,819		160,470
Valuation allowance	(11,731)		(7,754)
Deferred tax assets	$	211,088	$	152,716

Deferred tax liabilities:
Intangible assets	$	(226,598)	$	(203,721)
Depreciable assets	(26,916)		(18,020)
Operating lease right-of-use assets	(15,921)		(17,542)
Other	(12,825)		(10,001)

Deferred tax liabilities	$	(282,260)	$	(249,284)

Net deferred tax assets (liabilities)	$	(71,172)	$	(96,568)

Long-term deferred asset	76,052		36,932
Long-term deferred liability	(147,224)		(133,500)
Net deferred tax assets (liabilities)	$	(71,172)	$	(96,568)

Schedule of Unrecognized Tax Benefits

The following table summarizes the activity related to the unrecognized tax benefits for the fiscal years ended December 29, 2018, December 28, 2019 and January 2, 2021 (in thousands):


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

Increases to current year tax positions	3,657
Increase to prior year tax positions	183
Settlements and other adjustments	(586)
Lapse of statute of limitations	(4,484)

Balance at January 2, 2021	$	30,329