Income Taxes Income Taxes (Tables)

12 Months Ended

Jan. 02, 2021

Income Tax Disclosure [Abstract]

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, 2021		December 28, 2019		December 29, 2018
United States	$	265,950	$	260,867	$	82,146
Foreign	87,669		119,567		35,829
Income from operations before income taxes	$	353,619	$	380,434	$	117,975

Schedule of Components of Income Tax Expense (Benefit)

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

	January 2, 2021		December 28, 2019		December 29, 2018
Current:
Federal	$	(72)	$	(162)	$	(330)
State	1,595		341		(3)
Foreign	36,453		37,117		27,935
Total current	37,976		37,296		27,602
Deferred:
Federal	20,827		13,465		4,803
State	840		11,804		(2,216)
Foreign	(6,354)		(3,098)		(18,158)
Total deferred	15,313		22,171		(15,571)
	$	53,289	$	59,467	$	12,031

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

	January 2, 2021		December 28, 2019
Balance at beginning of Year	$	7,810	$	5,777
Change in tax positions related to current year	9		3,887
Change in tax positions related to prior years	(2,780)		(233)
Change in tax positions due to settlement with tax authorities	—		(1,354)
Expiration of the Statute of Limitations	—		(267)
Balance at end of year	$	5,039	$	7,810

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense for the years ended January 2, 2021, December 28, 2019 and December 29, 2018, 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, 2021		December 28, 2019		December 29, 2018
Computed "expected" tax expense	$	74,260	$	79,891	$	24,775
Change in valuation allowance	(522)		38		9,700
Non-deductible compensation expenses	4,723		3,950		2,305
Deferred tax on unremitted foreign earnings	(548)		1,505		(31)
Sub-Part F income	45		1,122		3,361
Foreign rate differential	7,077		7,246		658
Change in uncertain tax positions	(4,650)		1,736		3,419
State income taxes, net of federal benefit	2,702		5,686		(1,813)
Biofuel tax incentives	(31,725)		(46,007)		(18,489)
Change in tax law	3,699		1,352		(10,017)
Other, net	(1,772)		2,948		(1,837)
	$	53,289	$	59,467	$	12,031

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 January 2, 2021 and December 28, 2019 are presented below (in thousands):

	January 2, 2021		December 28, 2019
Deferred tax assets:
Loss contingency reserves	$	9,805	$	11,193
Employee benefits	13,027		12,236
Pension liability	13,053		13,049
Intangible assets amortization, including taxable goodwill	1,474		1,485
Interest expense carryforwards	402		12,361
Tax loss carryforwards	68,730		80,195
Tax credit carryforwards	6,610		5,653
Operating lease liabilities	38,930		33,549
Inventory	5,935		5,185
Accrued liabilities and other	12,925		13,677
Total gross deferred tax assets	170,891		188,583
Less valuation allowance	(24,228)		(24,759)
Net deferred tax assets	146,663		163,824
Deferred tax liabilities:
Intangible assets amortization, including taxable goodwill	(169,277)		(157,332)
Property, plant and equipment depreciation	(133,712)		(144,911)
Investment in DGD Joint Venture	(52,238)		(54,287)
Operating lease assets	(38,049)		(32,233)
Tax on unremitted foreign earnings	(10,234)		(6,139)
Other	(2,685)		(2,459)
Total gross deferred tax liabilities	(406,195)		(397,361)
Net deferred tax liability	$	(259,532)	$	(233,537)
Amounts reported on Consolidated Balance Sheets:
Non-current deferred tax asset	$	16,676	$	14,394
Non-current deferred tax liability	(276,208)		(247,931)
Net deferred tax liability	$	(259,532)	$	(233,537)