Income Taxes Income Taxes (Tables)

12 Months Ended

Jan. 02, 2016

Schedule of Income before Income Tax, Domestic and Foreign

U.S. and foreign income from operations before income taxes are as follows (in thousands):



	January 2, 2016		January 3, 2015		December 28, 2013
United States	$	50,473	$	58,972	$	174,470
Foreign	48,307		22,480		(10,792		)
Income from operations before income taxes	$	98,780	$	81,452	$	163,678

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense attributable to income from continuing operations before income taxes consists of the following (in thousands):



	January 2, 2016			January 3, 2015			December 28, 2013
Current:
Federal	$	(21,775	)	$	1,134		$	8,109
State	411			(884		)	7,213
Foreign	29,871			24,770			482
Total current	8,507			25,020			15,804
Deferred:
Federal	13,057			886			40,396
State	(1,521		)	1,235			505
Foreign	(6,542		)	(14,000		)	(1,994		)
Total deferred	4,994			(11,879		)	38,907
	$	13,501		$	13,141		$	54,711

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):



	January 2, 2016			January 3, 2015
Balance at beginning of Year	$	8,130		$	652
Change in tax positions related to current year	—			—
Change in tax positions related to prior years	(1,953		)	7,935
Expiration of the Statute of Limitations	(573		)	(457		)
Balance at end of year	$	5,604		$	8,130

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense for the years ended January 2, 2016, January 3, 2015 and December 28, 2013, differed from the amount computed by applying the statutory U.S. federal income tax rate to income from continuing operations before income taxes as a result of the following (in thousands):



	January 2, 2016			January 3, 2015			December 28, 2013
Computed "expected" tax expense	$	34,573		$	28,508		$	57,287
State income taxes, net of federal benefit	(722		)	228			5,017
Change in valuation allowance	4,421			5,420			507
Non-deductible compensation expenses	303			1,622			106
Deferred tax on unremitted foreign earnings	4,848			1,956			—
Sub-Part F income	4,923			3,786			—
Foreign rate differential	(5,653		)	(9,754		)	694
Biofuel tax incentives	(28,143		)	(22,546		)	(9,342		)
Non-deductible transaction costs	—			4,107			996
Other, net	(1,049		)	(186		)	(554		)
	$	13,501		$	13,141		$	54,711

Schedule of Deferred Tax Assets and Liabilities

In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-17, Balance Sheet Classification of Deferred Taxes. This ASU amends Topic 740, Income Taxes. requiring deferred tax assets and liabilities to be classified as non-current in the statement of financial position. The Company has early adopted ASU No. 2015-17 effective January 2, 2016 on a retrospective basis. As required by ASU No. 2015-17, all deferred tax assets and liabilities are classified as non-current in the Company's consolidated balance sheets. This is a change from the Company's historical presentation whereby certain of the Company's deferred tax assets and liabilities were classified as current and the remaining amount was classified as non-current. Upon adoption of ASU No. 2015-17, current deferred tax assets of approximately $45.0 million and current deferred tax liabilities of approximately $0.6 million in the Company's January 3, 2015 consolidated balance sheet were reclassified as non-current.

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at January 2, 2016 and January 3, 2015 are presented below (in thousands):



	January 2, 2016			January 3, 2015
Deferred tax assets:
Loss contingency reserves	$	11,961		$	11,500
Employee benefits	9,383			11,866
Pension liability	17,714			20,106
Intangible assets amortization, including taxable goodwill	2,947			3,300
Net operating losses	99,534			75,920
Inventory	7,934			7,965
Other	16,621			11,130
Total gross deferred tax assets	166,094			141,787
Less valuation allowance	(22,209		)	(18,037		)
Net deferred tax assets	143,885			123,750

Deferred tax liabilities:
Intangible assets amortization, including taxable goodwill	(182,748		)	(189,877		)
Property, plant and equipment depreciation	(209,925		)	(203,602		)
Investment in DGD Joint Venture	(46,239		)	(41,040		)
Tax on unremitted foreign earnings	(48,106		)	(47,870		)
Other	(1,196		)	(3,368		)
Total gross deferred tax liabilities	(488,214		)	(485,757		)
Net deferred tax liability	$	(344,329	)	$	(362,007	)

Amounts reported on Consolidated Balance Sheets:
Non-current deferred tax asset	$	16,352		$	17,266
Non-current deferred tax liability	(360,681		)	(379,273		)
Net deferred tax liability	$	(344,329	)	$	(362,007	)