Income Taxes (Tables)

12 Months Ended

Jan. 03, 2025

Income before taxes and the provision (benefit) for taxes consisted of the following:


	2024			2023			2022
(In millions)
Income before taxes:
United States	$	216.4		$	26.9		$	117.7
Foreign	1,789.5			330.1			451.4
Total	$	2,005.9		$	357.0		$	569.1

Provision (benefit) for taxes:
U.S. Federal:
Current	$	94.1		$	57.1		$	98.4
Deferred	(71.2)			(92.5)			(97.7)
	22.9			(35.4)			0.7
U.S. State:
Current	15.6			12.8			12.6
Deferred	2.1			(6.6)			(5.0)
	17.7			6.2			7.6
Foreign:
Current	364.8			80.4			48.4
Deferred	96.1			(5.5)			62.7
	460.9			74.9			111.1
Income tax provision	$	501.5		$	45.7		$	119.4
Effective tax rate	25.0		%	12.8		%	21.0		%

Schedule Of Provision (Benefit) For Taxes

Income before taxes and the provision (benefit) for taxes consisted of the following:


	2024			2023			2022
(In millions)
Income before taxes:
United States	$	216.4		$	26.9		$	117.7
Foreign	1,789.5			330.1			451.4
Total	$	2,005.9		$	357.0		$	569.1

Provision (benefit) for taxes:
U.S. Federal:
Current	$	94.1		$	57.1		$	98.4
Deferred	(71.2)			(92.5)			(97.7)
	22.9			(35.4)			0.7
U.S. State:
Current	15.6			12.8			12.6
Deferred	2.1			(6.6)			(5.0)
	17.7			6.2			7.6
Foreign:
Current	364.8			80.4			48.4
Deferred	96.1			(5.5)			62.7
	460.9			74.9			111.1
Income tax provision	$	501.5		$	45.7		$	119.4
Effective tax rate	25.0		%	12.8		%	21.0		%

Schedule Of Difference Between The Tax Provision At The Statutory Federal Income Tax Rate And The Tax Provision (Benefit) As A Percentage Of Income Before Taxes (Effective Tax Rate)

The difference between the tax provision at the statutory federal income tax rate and the tax provision as a percentage of income before taxes (“effective tax rate”) was as follows:


	2024		2023		2022
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
Increase (reduction) in tax rate resulting from:
Foreign income taxed at different rates	3.4	%	0.8	%	4.4	%

U.S. State income taxes	0.8	%	1.0	%	1.0	%
Stock-based compensation	0.9	%	4.8	%	1.2	%


Other U.S. taxes on foreign operations	(2.8)	%	(4.4)	%	(3.1)	%
Foreign-derived intangible income	—	%	(3.9)	%	(0.4)	%
U.S. Federal research and development credits	(0.8)	%	(5.4)	%	(2.2)	%
Tax reserve releases	(1.0)	%	(2.5)	%	(1.8)	%

Tax on Ag divestiture	2.1	%	—	%	—	%
Other	1.4	%	1.4	%	0.9	%
Effective tax rate	25.0	%	12.8	%	21.0	%

Schedule Of Deferred Tax Assets And Liabilities

The significant components of deferred tax assets and liabilities were as follows:


At the End of Year	2024		2023
(In millions)
Deferred tax liabilities:
Purchased intangibles	$	311.3	$	373.6
Global intangible low-taxed income	17.6		105.8

Operating lease right-of-use assets	29.7		30.2
Other	26.9		19.7
Total deferred tax liabilities	$	385.5	$	529.3

Deferred tax assets:
Depreciation and amortization	$	217.6	$	368.2
Capitalized research and development	118.2		98.4
Operating lease liabilities	34.7		36.2
U.S. tax credit carryforwards	23.1		23.5
Expenses not currently deductible	26.3		26.5
Net operating loss carryforwards	24.3		17.9
Stock-based compensation	17.2		16.7
Intercompany prepayments	—		36.6
Other	74.6		60.8
Total deferred tax assets	536.0		684.8
Valuation allowance	(56.0)		(31.0)
Total deferred tax assets	480.0		653.8
Total net deferred tax assets	$	94.5	$	124.5

Reported as:
Non-current deferred income tax assets	$	294.4	$	412.3
Non-current deferred income tax liabilities	(199.9)		(287.8)
Net deferred tax assets	$	94.5	$	124.5

Schedule of Unrecognized Tax Benefits Roll Forward

The total amount of unrecognized tax benefits at the end of 2024 was $78.2 million. A reconciliation of gross unrecognized tax benefits was as follows:


	2024		2023		2022
(In millions)
Beginning balance	$	88.3	$	76.5	$	64.2
Increase related to current year tax positions	11.3		12.4		23.0
(Decrease) increase related to prior years’ tax positions	(1.5)		7.6		(0.7)

Lapse of statute of limitations	(19.9)		(8.2)		(10.0)
Ending balance	$	78.2	$	88.3	$	76.5