Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 29, 2018

Schedule of Income before Income Tax, Domestic and Foreign

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



	December 29, 2018		December 30, 2017		December 31, 2016
United States	$	82,146	$	179	$	48,869
Foreign	35,829		64,021		73,670
Income from operations before income taxes	$	117,975	$	64,200	$	122,539

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):



	December 29, 2018			December 30, 2017			December 31, 2016
Current:
Federal	$	(330	)	$	274		$	65
State	(3		)	(80		)	(332		)
Foreign	27,935			31,256			27,992
Total current	27,602			31,450			27,725
Deferred:
Federal	4,803			(76,056		)	(8,056		)
State	(2,216		)	622			(649		)
Foreign	(18,158		)	(25,170		)	(3,705		)
Total deferred	(15,571		)	(100,604		)	(12,410		)
	$	12,031		$	(69,154	)	$	15,315

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



	December 29, 2018			December 30, 2017
Balance at beginning of Year	$	2,384		$	4,667
Change in tax positions related to current year	237			290
Change in tax positions related to prior years	3,649			(198		)
Change in tax positions due to settlement with tax authorities	—			(1,949		)
Expiration of the Statute of Limitations	(493		)	(426		)
Balance at end of year	$	5,777		$	2,384

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense for the years ended December 29, 2018, December 30, 2017 and December 31, 2016, 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):



	December 29, 2018			December 30, 2017			December 31, 2016
Computed "expected" tax expense	$	24,775		$	22,470		$	42,888
Change in valuation allowance	9,700			1,609			1,039
Deferred tax on unremitted foreign earnings	(31		)	641			2,546
Sub-Part F income	3,361			6,284			6,159
Foreign rate differential	658			(8,292		)	(9,982		)
Change in uncertain tax positions	3,419			(1,080		)	—
Biofuel tax incentives	(18,489		)	—			(28,435		)
Change in tax law
One-time U.S. transition tax	(1,654		)	26,243			—
Deferred tax effects	(8,363		)	(115,169		)	2,169
Other, net	(1,345		)	(1,860		)	(1,069		)
	$	12,031		$	(69,154	)	$	15,315

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 29, 2018 and December 30, 2017 are presented below (in thousands):



	December 29, 2018			December 30, 2017
Deferred tax assets:
Loss contingency reserves	$	9,007		$	8,546
Employee benefits	10,791			8,471
Pension liability	12,882			12,224
Intangible assets amortization, including taxable goodwill	1,566			1,475
Interest expense carryforwards	16,871			754
Tax loss carryforwards	103,618			89,660
Tax credit carryforwards	5,108			7,057
Inventory	8,583			6,295
Accrued liabilities and other	12,291			13,010
Total gross deferred tax assets	180,717			147,492
Less valuation allowance	(27,942		)	(24,530		)
Net deferred tax assets	152,775			122,962

Deferred tax liabilities:
Intangible assets amortization, including taxable goodwill	(152,841		)	(170,294		)
Property, plant and equipment depreciation	(164,011		)	(166,217		)
Investment in DGD Joint Venture	(44,857		)	(29,516		)
Tax on unremitted foreign earnings	(5,648		)	(8,045		)
Other	(1,500		)	(1,555		)
Total gross deferred tax liabilities	(368,857		)	(375,627		)
Net deferred tax liability	$	(216,082	)	$	(252,665	)

Amounts reported on Consolidated Balance Sheets:
Non-current deferred tax asset	$	14,981		$	14,043
Non-current deferred tax liability	(231,063		)	(266,708		)
Net deferred tax liability	$	(216,082	)	$	(252,665	)