
	2020		2019		2018
Current
Federal	$	7.1	$	1.8	$	4.5
State	2.7		1.1		0.8
Foreign	63.5		35.9		37.9
	$	73.3	$	38.8	$	43.2
Deferred
Federal	$	(2.0)	$	20.4	$	16.6
State	(0.3)		2.6		2.1
Foreign	(14.2)		(0.6)		(5.5)
	(16.5)		22.4		13.2
Total	$	56.8	$	61.2	$	56.4


	2020	2019	2018
Federal Statutory Rate	21.0%	21.0%	21.0%
State Income Taxes, Net of Federal Benefit	0.8%	1.3%	1.1%

Foreign Rate Differential - China	1.2%	0.9%	0.9%
Foreign Rate Differential - All Other	(0.4)%	(2.8)%	(1.4)%
Research and Development Credit	(3.0)%	(2.5)%	(2.5)%


Valuation Allowance	(0.1)%	0.8%	(0.3)%
Tax Cuts and Jobs Act of 2017	—%	—%	(1.3)%
Tax on Repatriation	1.2%	3.4%	1.3%
Adjustments to Tax Accruals and Reserves	0.1%	0.3%	—%

Tax Impact of Divestitures	—%	(1.7)%	—%
Other	1.9%	(0.6)%	0.5%
Effective Tax Rate	22.7%	20.1%	19.3%

Deferred taxes arise primarily from differences in amounts reported for tax and financial statement purposes. The Company's net deferred tax liability was $(128.1) million as of January 2, 2021, classified on the consolidated Balance Sheet as a net non-current deferred tax asset of $43.9 million and a net non-current deferred income tax liability of $(172.0) million. As of December 28, 2019, the Company's net deferred tax liability was $(113.5) million classified on the consolidated Balance Sheet as a net non-current deferred income tax asset of $58.4 million and a net non-current deferred income tax liability of $(171.9) million.


	January 2, 2021		December 28, 2019
Accrued Benefits	$	36.8	$	54.3
Bad Debt Allowances	4.9		2.0
Warranty Accruals	3.4		2.5
Inventory	10.4		7.3
Accrued Liabilities	(8.8)		(2.6)
Derivative Instruments	(7.5)		1.4
Tax Loss Carryforward	9.2		35.4
Valuation Allowance	(7.4)		(12.9)
Operating Lease Liability	18.8		17.2
Other	34.6		18.0
Deferred Tax Assets	94.4		122.6
Property Related	(33.7)		(36.1)
Intangible Items	(170.9)		(182.8)
Operating Lease Asset	(17.9)		(17.2)
Deferred Tax Liabilities	(222.5)		(236.1)
Net Deferred Tax Liability	$	(128.1)	$	(113.5)


Unrecognized Tax Benefits, December 30, 2017	$	6.7
Gross Increases from Prior Period Tax Positions	—
Gross Increases from Current Period Tax Positions	0.3
Settlements with Taxing Authorities	(0.1)
Lapse of Statute of Limitations	(0.4)
Unrecognized Tax Benefits, December 29, 2018	$	6.5
Gross Increases from Prior Period Tax Positions	—
Gross Increases from Current Period Tax Positions	0.7
Settlements with Taxing Authorities	—
Lapse of Statute of Limitations	(0.3)
Unrecognized Tax Benefits, December 28, 2019	$	6.9
Gross Increases from Prior Period Tax Positions	—
Gross Increases from Current Period Tax Positions	0.2
Settlements with Taxing Authorities	—
Lapse of Statute of Limitations	(0.3)
Unrecognized Tax Benefits, January 2, 2021	$	6.8

Potential interest and penalties related to unrecognized tax benefits are recorded in income tax expense. During fiscal years 2020, 2019 and 2018, the Company recognized approximately $0.4 million, $0.5 million and $0.2 million in net interest (income) expense, respectively. The Company had approximately $2.7 million, $2.3 million and $1.9 million of accrued interest as of January 2, 2021, December 28, 2019 and December 29, 2018, respectively.

Due to statute expirations, approximately $1.3 million of the unrecognized tax benefits, including accrued interest, could reasonably change in the coming year.

With few exceptions, the Company is no longer subject to US federal and state/local income tax examinations by tax authorities for years prior to 2014, and the Company is no longer subject to non-US income tax examinations by tax authorities for years prior to 2012.

As of January 2, 2021, the Company had approximately $9.2 million of tax effected net operating losses in various jurisdictions with a portion expiring over a period of up to 15 years and the remaining without expiration. As of December 28, 2019, the Company had approximately $35.4 million of tax effected net operating losses in various jurisdictions with a portion expiring over a period up to 15 years and the remaining without expiration.

Valuation allowances totaling $7.4 million and $12.9 million as of January 2, 2021 and December 28, 2019, respectively, have been established for deferred income tax assets primarily related to certain subsidiary loss carryforwards that may not be realized. Realization of the net deferred income tax assets is dependent on generating sufficient taxable income prior to their expiration. Although realization is not assured, management believes it is more-likely-than-not that the net deferred income tax assets will be realized. The amount of the net deferred income tax assets considered realizable, however, could change in the near term if future taxable income during the carryforward period fluctuates.

The Company has been granted tax holidays for some of its Chinese subsidiaries. The majority of these tax holidays expired at the end of 2020. All tax holidays will be renewed subject to certain conditions with which the Company expects to comply. In 2020, these holidays decreased the Provision for Income Taxes by $4.1 million.

The Company continues to treat approximately $149.6 million of earnings from certain foreign entities as permanently reinvested and has not recorded a deferred tax liability for the local withholding taxes of approximately $15.2 million on those earnings.