Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 28, 2019

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 28, 2019		December 29, 2018		December 30, 2017
United States	$	260,867	$	82,146	$	179
Foreign	119,567		35,829		64,021
Income from operations before income taxes	$	380,434	$	117,975	$	64,200

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 28, 2019			December 29, 2018			December 30, 2017
Current:
Federal	$	(162	)	$	(330	)	$	274
State	341			(3		)	(80		)
Foreign	37,117			27,935			31,256
Total current	37,296			27,602			31,450
Deferred:
Federal	13,465			4,803			(76,056		)
State	11,804			(2,216		)	622
Foreign	(3,098		)	(18,158		)	(25,170		)
Total deferred	22,171			(15,571		)	(100,604		)
	$	59,467		$	12,031		$	(69,154	)

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



	December 28, 2019			December 29, 2018
Balance at beginning of Year	$	5,777		$	2,384
Change in tax positions related to current year	3,887			237
Change in tax positions related to prior years	(233		)	3,649
Change in tax positions due to settlement with tax authorities	(1,354		)	—
Expiration of the Statute of Limitations	(267		)	(493		)
Balance at end of year	$	7,810		$	5,777

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense for the years ended December 28, 2019, December 29, 2018 and December 30, 2017, 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 28, 2019			December 29, 2018			December 30, 2017
Computed "expected" tax expense	$	79,891		$	24,775		$	22,470
Change in valuation allowance	38			9,700			1,609
Non-deductible compensation expenses	3,950			2,305			1,898
Deferred tax on unremitted foreign earnings	1,505			(31		)	641
Sub-Part F income	1,122			3,361			6,284
Foreign rate differential	7,246			658			(8,292		)
Change in uncertain tax positions	1,736			3,419			(1,080		)
State income taxes, net of federal benefit	5,686			(1,813		)	(1,012		)
Biofuel tax incentives	(46,007		)	(18,489		)	—
Change in tax law
One-time U.S. transition tax	—			(1,654		)	26,243
Deferred tax effects	1,352			(8,363		)	(115,169		)
Other, net	2,948			(1,837		)	(2,746		)
	$	59,467		$	12,031		$	(69,154	)

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 28, 2019 and December 29, 2018 are presented below (in thousands):



	December 28, 2019			December 29, 2018
Deferred tax assets:
Loss contingency reserves	$	11,193		$	9,007
Employee benefits	12,236			10,791
Pension liability	13,049			12,882
Intangible assets amortization, including taxable goodwill	1,485			1,566
Interest expense carryforwards	12,361			16,871
Tax loss carryforwards	80,195			103,618
Tax credit carryforwards	5,653			5,108
Operating lease liabilities	33,549			—
Inventory	5,185			8,583
Accrued liabilities and other	13,677			12,291
Total gross deferred tax assets	188,583			180,717
Less valuation allowance	(24,759		)	(27,942		)
Net deferred tax assets	163,824			152,775

Deferred tax liabilities:
Intangible assets amortization, including taxable goodwill	(157,332		)	(152,841		)
Property, plant and equipment depreciation	(144,911		)	(164,011		)
Investment in DGD Joint Venture	(54,287		)	(44,857		)
Operating lease assets	(32,233		)	—
Tax on unremitted foreign earnings	(6,139		)	(5,648		)
Other	(2,459		)	(1,500		)
Total gross deferred tax liabilities	(397,361		)	(368,857		)
Net deferred tax liability	$	(233,537	)	$	(216,082	)

Amounts reported on Consolidated Balance Sheets:
Non-current deferred tax asset	$	14,394		$	14,981
Non-current deferred tax liability	(247,931		)	(231,063		)
Net deferred tax liability	$	(233,537	)	$	(216,082	)