Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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


	2022		2021		2020
Domestic	$	383,813	$	453,357	$	178,813
Foreign	180,602		166,147		89,244
Total	$	564,415	$	619,504	$	268,057

Schedule of Provision of Taxes

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


	2022		2021		2020
Federal	$	62,416	$	84,689	$	36,908
State and local	23,892		24,363		8,815
Foreign	41,538		21,960		15,040
Total	$	127,846	$	131,012	$	60,763

Current	$	134,488	$	124,149	$	44,342
Deferred	(6,642)		6,863		16,421
Total	$	127,846	$	131,012	$	60,763

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:


	2022			2021		2020
U.S. federal statutory tax rate	21.0	%		21.0	%	21.0	%

State taxes, net of federal benefit	3.3			3.1		3.2
Permanent differences	0.9			0.5		(0.4)
Foreign income tax rate at rates other than U.S. statutory	0.2		-2.2	0.2		0.5
Deferred tax changes	—			(2.2)		(0.7)
Change in valuation allowances	—			0.4		(0.1)
Tax on unremitted earnings	0.3			0.4		1.2
Federal Refund	—			(0.7)		—
Internal restructuring	(2.3)			—		—
Other	(0.7)			(1.6)		(2.0)
Consolidated effective tax	22.7	%		21.1	%	22.7	%

Schedule of Deferred Assets and Liabilities

At December 31, 2022 and January 1, 2022, the company had recorded the following deferred tax assets and liabilities (in thousands):


	2022		2021
Deferred tax assets:
Compensation related	$	26,273	$	21,543
Pension and post-retirement benefits	1,640		49,072
Inventory reserves	26,134		14,453
Accrued liabilities and reserves	7,992		17,088
Warranty reserves	17,593		19,286
Operating lease liability	19,890		18,643
Basis difference on affiliates	14,473		—
Interest rate swaps	—		4,573
Convertible debt	39,388		37,034
Net operating loss carryforwards	12,964		17,083
Other	14,879		12,695
Gross deferred tax assets	181,226		211,470
Valuation allowance	(11,599)		(10,222)
Deferred tax assets	$	169,627	$	201,248

Deferred tax liabilities:
Intangible assets	$	(287,433)	$	(273,974)
Depreciable assets	(32,267)		(26,996)
Basis difference on affiliates	—		(18,795)
Operating lease right-of-use assets	(19,240)		(18,029)
Interest rate swaps	(16,836)		—
Other	(27,317)		(17,195)

Deferred tax liabilities	$	(383,093)	$	(354,989)

Net deferred tax assets (liabilities)	$	(213,466)	$	(153,741)

Long-term deferred asset	6,738		33,194
Long-term deferred liability	(220,204)		(186,935)
Net deferred tax assets (liabilities)	$	(213,466)	$	(153,741)

Schedule of Unrecognized Tax Benefits

The following table summarizes the activity related to the unrecognized tax benefits for the fiscal years ended January 2, 2021, January 1, 2022 and December 31, 2022 (in thousands):


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 at January 1, 2022	$	36,209

Increases to current year tax positions	2,195
Increase to prior year tax positions	534
Decrease to prior year tax positions	(1,709)
Settlements	(1,974)
Lapse of statute of limitations	(1,607)

Balance as of December 31, 2022	$	33,648