Income Taxes (Tables)

12 Months Ended

Jan. 01, 2022

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


	2021		2020		2019
Domestic	$	453,357	$	178,813	$	336,688
Foreign	166,147		89,244		125,931
Total	$	619,504	$	268,057	$	462,619

Schedule of Provision of Taxes

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


	2021		2020		2019
Federal	$	84,689	$	36,908	$	69,074
State and local	24,363		8,815		16,203
Foreign	21,960		15,040		25,102
Total	$	131,012	$	60,763	$	110,379

Current	$	124,149	$	44,342	$	88,167
Deferred	6,863		16,421		22,212
Total	$	131,012	$	60,763	$	110,379

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:


	2021		2020		2019
U.S. federal statutory tax rate	21.0	%	21.0	%	21.0	%

State taxes, net of federal benefit	3.1		3.2		3.2
Permanent differences	0.5		(0.4)		0.6
Foreign income tax rate at rates other than U.S. statutory	0.2		0.5		0.2
Deferred tax changes	(2.2)		(0.7)		—
Tax refunds	(0.7)		—		—
Change in valuation allowances (1)	0.4		(0.1)		0.1
Tax on unremitted earnings	0.4		1.2		0.3
Other	(1.6)		(2.0)		(1.5)
Consolidated effective tax	21.1	%	22.7	%	23.9	%

Schedule of Deferred Assets and Liabilities

At January 1, 2022 and January 2, 2021, the company had recorded the following deferred tax assets and liabilities (in thousands):


	2021		2020
Deferred tax assets:
Compensation related	$	21,543	$	12,328
Pension and post-retirement benefits	49,072		88,709
Inventory reserves	14,453		14,732
Accrued liabilities and reserves	17,088		22,049
Warranty reserves	19,286		17,890
Operating lease liability	18,643		16,180
Interest rate swaps	4,573		12,997
Convertible debt	37,034		—
Net operating loss carryforwards	17,083		20,747
Other	12,695		17,187
Gross deferred tax assets	211,470		222,819
Valuation allowance	(10,222)		(11,731)
Deferred tax assets	$	201,248	$	211,088

Deferred tax liabilities:
Intangible assets	$	(273,974)	$	(226,598)
Depreciable assets	(26,996)		(26,916)
Basis difference on affiliates	(18,795)		—
Operating lease right-of-use assets	(18,029)		(15,921)
Other	(17,195)		(12,825)

Deferred tax liabilities	$	(354,989)	$	(282,260)

Net deferred tax assets (liabilities)	$	(153,741)	$	(71,172)

Long-term deferred asset	33,194		76,052
Long-term deferred liability	(186,935)		(147,224)
Net deferred tax assets (liabilities)	$	(153,741)	$	(71,172)

Schedule of Unrecognized Tax Benefits

The following table summarizes the activity related to the unrecognized tax benefits for the fiscal years ended December 28, 2019, January 2, 2021 and January 1, 2022 (in thousands):


Balance at December 28, 2019	$	31,559

Increases to current year tax positions	3,657
Increase to prior year tax positions	183
Decrease to prior year tax positions	(53)
Settlements	(533)
Lapse of statute of limitations	(4,484)

Balance at January 2, 2021	$	30,329

Increases to current year tax positions	1,760
Increase to prior year tax positions	6,796
Decrease to prior year tax positions	(576)
Settlements	(1,180)
Lapse of statute of limitations	(920)

Balance as of January 1, 2022	$	36,209