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Income Taxes (Tables)

12 Months Ended

Jan. 03, 2026

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


	2025		2024		2023
Domestic	$	348,790	$	401,306	$	392,467
Foreign	133,485		164,791		143,613
Total	$	482,275	$	566,097	$	536,080

Schedule of Provision of Taxes

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


	2025		2024		2023
Federal	$	65,938	$	81,633	$	72,579
State and local	17,284		21,969		22,913
Foreign	31,786		41,517		27,584
Total	$	115,008	$	145,119	$	123,076

Current	$	44,864	$	109,320	$	122,634
Deferred	70,144		35,799		442
Total	$	115,008	$	145,119	$	123,076

The reconciliation of the differences between income taxes computed at the federal statutory rate to the effective rate were as follows (dollars in thousands):


	2025
	$		%
Provision for income taxes at the U.S. federal statutory tax rate	$	101,278	21.0	%
State and local taxes, net of federal benefit(1)	13,654		2.8
Nontaxable or nondeductible items	3,779		0.8
Foreign tax effects:
UK	1,381		0.3
Italy	2,133		0.4
Other	2,531		0.5
Effect of change in tax laws or rates	—		—
Tax credits and incentives	(6,707)		(1.4)
Changes in valuation allowances	—		—
Changes in unrecognized tax benefits	317		0.1
Other items	(3,358)		(0.7)
Provision for income taxes and effective tax rate	$	115,008	23.8	%

(1)State taxes in Illinois, California, Texas and Tennessee made up the majority of this category.

The reconciliation of the differences between income taxes computed at the federal statutory rate to the effective rate were as follows for fiscal 2024 and 2023:


	2024		2023
U.S. federal statutory tax rate	21.0	%	21.0	%
State and local taxes, net of federal benefit	3.1		3.4
Nontaxable or nondeductible items	0.7		0.6
Foreign income taxes at rates other than U.S. federal statutory tax rate	1.6		0.2
Tax credits and incentives	(1.4)		(2.0)
Changes in valuation allowances	0.2		—
Changes in unrecognized tax benefits	(0.7)		0.3
Other items	1.1		(0.5)
Effective tax rate	25.6	%	23.0	%

A tax provision of $115.0 million, at an effective rate of 23.8%, was recorded for fiscal 2025 as compared to $145.1 million at an effective rate of 25.6%, in fiscal 2024. The effective rates in 2025 and 2024 were higher than the federal tax rate of 21.0% primarily due to state taxes and foreign tax rate differentials.

Schedule of Effective Income Tax Reconciliation

The reconciliation of the differences between income taxes computed at the federal statutory rate to the effective rate were as follows (dollars in thousands):


	2025
	$		%
Provision for income taxes at the U.S. federal statutory tax rate	$	101,278	21.0	%
State and local taxes, net of federal benefit(1)	13,654		2.8
Nontaxable or nondeductible items	3,779		0.8
Foreign tax effects:
UK	1,381		0.3
Italy	2,133		0.4
Other	2,531		0.5
Effect of change in tax laws or rates	—		—
Tax credits and incentives	(6,707)		(1.4)
Changes in valuation allowances	—		—
Changes in unrecognized tax benefits	317		0.1
Other items	(3,358)		(0.7)
Provision for income taxes and effective tax rate	$	115,008	23.8	%

(1)State taxes in Illinois, California, Texas and Tennessee made up the majority of this category.

The reconciliation of the differences between income taxes computed at the federal statutory rate to the effective rate were as follows for fiscal 2024 and 2023:


	2024		2023
U.S. federal statutory tax rate	21.0	%	21.0	%
State and local taxes, net of federal benefit	3.1		3.4
Nontaxable or nondeductible items	0.7		0.6
Foreign income taxes at rates other than U.S. federal statutory tax rate	1.6		0.2
Tax credits and incentives	(1.4)		(2.0)
Changes in valuation allowances	0.2		—
Changes in unrecognized tax benefits	(0.7)		0.3
Other items	1.1		(0.5)
Effective tax rate	25.6	%	23.0	%

Schedule of Deferred Assets and Liabilities

The company's deferred tax assets and liabilities consisted of the following (in thousands):


	Jan 3, 2026		Dec 28, 2024
Deferred tax assets:
Compensation related	$	21,219	$	20,421

Inventory reserves	29,509		26,298
Accrued liabilities and reserves	36,493		20,989
Warranty reserves	19,681		18,384
Operating lease liability	24,822		17,182
Basis difference on affiliates	—		7,443
Capitalized R&D costs	21,854		42,722
Convertible debt	—		6,502
Net operating loss carryforwards	7,378		7,082
Other	21,880		26,194
Gross deferred tax assets	182,836		193,217
Valuation allowance	(8,314)		(9,178)
Deferred tax assets	$	174,522	$	184,039

Deferred tax liabilities:
Intangible assets	$	(212,054)	$	(221,982)
Depreciable assets	(32,529)		(30,046)

Interest rate swaps	(2,874)		(7,587)
Operating lease right-of-use assets	(23,693)		(16,677)
Pension and post-retirement benefits	(24,482)		(20,818)
Other	(27,404)		(31,862)
Deferred tax liabilities	$	(323,036)	$	(328,972)

Net deferred tax liabilities	$	(148,514)	$	(144,933)

Long-term deferred asset	$	8,209	$	6,281
Long-term deferred liability	(156,723)		(151,214)
Net deferred tax liabilities	$	(148,514)	$	(144,933)

Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]

Cash taxes paid, net of refunds, by jurisdiction were as follows (in thousands):


	2025
Federal	$	26,249
State and local	5,680
Foreign:
Italy	13,852
UK	8,701
France	3,777
Germany	3,380
Other	17,471
Cash taxes paid, net of refunds	$	79,110

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

The following table summarizes the activity related to the unrecognized tax benefits for the fiscal years ended December 30, 2023, December 28, 2024 and January 3, 2026 (in thousands):


Balance at December 30, 2023	$	33,922
Increases to current year tax positions	3,689


Settlements	(639)
Lapse of statute of limitations	(7,421)
Balance at December 28, 2024	$	29,551
Increases to current year tax positions	3,542



Lapse of statute of limitations	(3,023)
Balance as of January 3, 2026	$	30,070