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TAXES BASED ON INCOME (Tables)

12 Months Ended

Dec. 30, 2023

Taxes based on income were as follows:

The principal items accounting for the difference between taxes computed at U.S. federal statutory rate and taxes recorded were as follows:


(In millions)	2023		2022		2021
Tax provision computed at U.S. federal statutory rate(1)	$	145.9	$	209.9	$	208.5
Increase (decrease) in taxes resulting from:
State taxes, net of federal tax benefit	2.6		11.8		4.5
Foreign earnings taxed at different rates(1)	50.4		51.7		72.7
GILTI high-tax exclusion election, net(2)	(10.0)		(11.9)		(22.8)
Valuation allowance	2.6		(5.0)		(4.8)
U.S. federal research and development tax credits	(8.3)		(6.5)		(6.2)
Tax contingencies and audit settlements	11.9		(4.3)		3.9
Other items, net	(3.4)		(3.5)		(7.2)
Provision for income taxes	$	191.7	$	242.2	$	248.6


(1)			In 2023, we recognized $4.4 million from our current year GILTI exclusion election and $5.6 million related to the election made on our 2022 U.S. federal tax return. In 2022, we recognized $11.9 million of benefit related to a GILTI exclusion election made on our 2021 U.S. federal tax return. In 2021, we recognized $14.1 million and $8.7 million of benefit related to GILTI exclusion elections made on our amended 2018 and originally filed 2020 U.S. federal tax returns, respectively.
(2)

Income before taxes from our U.S. and foreign operations was as follows:

The primary components of the temporary differences that gave rise to our deferred tax assets and liabilities were as follows:


(In millions)	2023		2022
Accrued expenses not currently deductible	$	44.5	$	32.3
Net operating loss carryforwards	138.9		137.2
Tax credit carryforwards	9.0		9.7
Capitalized research expenses	59.9		38.6
Stock-based compensation	10.9		15.4
Pension and other postretirement benefits	34.2		31.5
Inventory reserve	16.4		15.6
Lease liabilities	43.3		33.2
Other assets	27.9		21.3
Valuation allowance	(62.0)		(59.4)
Total deferred tax assets(1)	323.0		275.4
Depreciation and amortization	(317.2)		(296.6)
Repatriation accrual	(24.5)		(12.0)
Foreign operating loss recapture	(3.4)		(3.2)
Lease assets	(43.4)		(33.8)
Total deferred tax liabilities(1)	(388.5)		(345.6)
Total net deferred tax assets (liabilities)	$	(65.5)	$	(70.2)

(1)Reflect gross amounts before jurisdictional netting of deferred tax assets and liabilities.

If unused, foreign net operating losses and tax credit carryforwards will expire as follows:

(1)Net operating losses are presented before tax effects and valuation allowance.

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is set forth below.


(In millions)	2023		2022
Balance at beginning of year	$	69.5	$	74.0
Additions for tax positions of current year	15.4		6.6
Additions (reductions) for tax positions of prior years, net	8.0		(2.2)
Settlements with tax authorities	(1.8)		(1.1)
Expirations of statutes of limitations	(3.9)		(4.8)
Changes due to translation of foreign currencies	.8		(3.0)
Balance at end of year	$	88.0	$	69.5