Income Taxes (Tables)

12 Months Ended

Dec. 30, 2023

Schedule of components of income tax expense (benefit)

Domestic and foreign income (loss) before income taxes is as follows:


(in thousands)	2023		2022		2021
Domestic	$	40,571	$	32,462	$	13,746
Foreign	288,027		410,582		327,279
Income before income taxes	$	328,598	$	443,044	$	341,025

Federal, state and foreign income tax expense (benefit) consists of the following:


(in thousands)	2023		2022		2021
Current:
Federal	$	8,188	$	12,423	$	4,832
State	2,880		2,183		1,401
Foreign	57,999		77,551		59,006
Subtotal	69,067		92,157		65,239
Deferred:
Federal and State	1,751		(9,182)		(9,658)
Foreign	(1,705)		(13,237)		1,638
Subtotal	46		(22,419)		(8,020)
Provision for income taxes	$	69,113	$	69,738	$	57,219

Schedule of effective income tax rate reconciliation

A reconciliation between income taxes computed on income before income taxes at the federal statutory rate and the provision for income taxes is provided below:


(in thousands)	2023		2022		2021
Tax expense at statutory rate of 21%	$	69,006	$	93,039	$	71,615
Non-U.S. income tax rate differential	(25,623)		(41,731)		(31,414)
Non-U.S. losses and expenses with no tax benefit	11,261		10,660		7,820
Tax on unremitted earnings	6,394		10,870		7,585
Net impact associated with U.S. tax on Non-U.S. income, including GILTI	4,739		2,546		(238)
State and local taxes, net of federal tax benefit	1,503		215		(172)
Certain changes in unrecognized tax benefits and related accrued interest	(172)		1,839		4,263

One-time tax deductions for stock of subsidiaries	—		(11,495)		—
Other, net	2,005		3,795		(2,240)
Provision for income taxes	$	69,113	$	69,738	$	57,219

Schedule of deferred tax assets and liabilities

Significant components of the Company’s deferred tax assets and liabilities at December 30, 2023 and December 31, 2022, are as follows:


(in thousands)	2023		2022
Deferred tax assets:
Accrued expenses and reserves	$	39,299	$	49,138
Net operating loss carryforwards	36,941		30,403
Interest expense carryforwards	34,205		33,507
Capitalized expenses	16,872		11,632
U.S. foreign tax credit carryforwards	3,561		3,385
U.S. research and other general business tax credit carryforwards	1,468		2,076
Excess of tax basis over the book basis for intangible assets and goodwill	—		404

Deferred tax assets	132,346		130,545
Less: Valuation allowance	(41,542)		(37,001)
Total deferred tax assets	90,804		93,544

Deferred tax liabilities:
Excess of book basis over the tax basis for intangible assets and goodwill	148,659		143,542
Excess of book basis over the tax basis for property, plant, and equipment	22,570		18,489
Tax on unremitted earnings	18,621		16,282
Unrealized foreign currency exchange gains	1,288		1,094
Total deferred tax liabilities	191,138		179,407
Net deferred tax liabilities	$	100,334	$	85,863

Schedule of unrecognized tax benefits roll forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits as of December 30, 2023, December 31, 2022, and January 1, 2022 is as follows:


(in thousands)	Unrecognized Tax Benefits
Balance at January 1, 2022	$	23,445
Additions for tax positions related to pre-acquisition periods of acquired subsidiaries	6,726
Additions for tax positions taken in the current year	2,153
Decreases for tax positions taken in the prior year	(957)
Decreases for lapses in statute of limitations	(758)
Other	(235)
Balance at December 31, 2022	$	30,374
Additions for tax positions related to pre-acquisition periods of acquired subsidiaries	1,975
Additions for tax positions taken in the current year	1,200
Decreases for tax positions taken in the prior year	(792)
Decreases for lapses in statute of limitations	(1,051)
Decreases for settlements	(215)
Other	(42)
Balance at December 30, 2023	$	31,449