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Income Taxes
 12 Months Ended
Jan. 01, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
U.S. and foreign income before income taxes are as follows (in thousands):
        
January 1, 2022January 2, 2021December 28, 2019
United States
$545,861 $265,950 $260,867 
Foreign275,535 87,669 119,567 
Income before income taxes$821,396 $353,619 $380,434 

Income tax expense attributable to income before income taxes consists of the following (in thousands):
         
January 1, 2022January 2, 2021December 28, 2019
Current:  
Federal
$(31)$(72)$(162)
State
8,442 1,595 341 
Foreign60,730 36,453 37,117 
Total current
69,141 37,976 37,296 
Deferred:  
Federal
66,883 20,827 13,465 
State
19,495 840 11,804 
Foreign
8,587 (6,354)(3,098)
Total deferred
94,965 15,313 22,171 
$164,106 $53,289 $59,467 

Income tax expense for the years ended January 1, 2022, January 2, 2021 and December 28, 2019, differed from the amount computed by applying the statutory U.S. federal income tax rate to income before income taxes as a result of the following (in thousands):
        
January 1, 2022January 2, 2021December 28, 2019
Computed "expected" tax expense$172,493 $74,260 $79,891 
Change in valuation allowance(4,996)(522)38 
Non-deductible compensation expenses4,324 4,723 3,950 
Deferred tax on unremitted foreign earnings
3,415 (548)1,505 
Foreign rate differential14,748 7,077 7,246 
Change in uncertain tax positions6,809 (4,650)1,736 
State income taxes, net of federal benefit18,205 2,702 5,686 
Biofuel tax incentives(38,778)(31,725)(46,007)
Change in tax law1,869 3,699 1,352 
Equity compensation windfall(11,046)(2,897)(686)
Other, net(2,937)1,170 4,756 
$164,106 $53,289 $59,467 

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at January 1, 2022 and January 2, 2021 are presented below (in thousands):
        
 January 1, 2022January 2, 2021
Deferred tax assets:  
Loss contingency reserves$11,169 $9,805 
Employee benefits13,059 13,027 
Pension liability8,208 13,053 
Tax loss carryforwards123,194 68,730 
Tax credit carryforwards4,267 6,610 
Operating lease liabilities41,949 38,930 
Inventory8,533 5,935 
Accrued liabilities and other21,337 14,801 
Total gross deferred tax assets231,716 170,891 
Less valuation allowance(17,685)(24,228)
Net deferred tax assets214,031 146,663 
Deferred tax liabilities:
Intangible assets amortization, including taxable goodwill(172,575)(169,277)
Property, plant and equipment depreciation(145,178)(133,712)
Investment in DGD Joint Venture(188,154)(52,238)
Operating lease assets(40,965)(38,049)
Tax on unremitted foreign earnings(10,379)(10,234)
Other(3,511)(2,685)
Total gross deferred tax liabilities(560,762)(406,195)
Net deferred tax liability$(346,731)$(259,532)
Amounts reported on Consolidated Balance Sheets:
Non-current deferred tax asset$16,211 $16,676 
Non-current deferred tax liability(362,942)(276,208)
Net deferred tax liability$(346,731)$(259,532)
     
At January 1, 2022, the Company had net operating loss carryforwards for federal income tax purposes of approximately $381.4 million, $14.5 million of which expire in 2036 and $366.9 million of which can be carried
forward indefinitely. The Company had a capital loss carry forward for federal income tax purposes of approximately $21.1 million, which expires in 2023 and can only be used in future years in which the Company recognizes capital gains. The Company had approximately $233.4 million of net operating loss carryforwards for state income tax purposes, $174.3 million of which expire in 2022 through 2041 and $59.1 million of which can be carried forward indefinitely. The Company had foreign net operating loss carryforwards of about $96.6 million, $21.4 million of which expire in 2022 through 2038 and $75.2 million of which can be carried forward indefinitely. Also at January 1, 2022, the Company had U.S. federal and state tax credit carryforwards of approximately $1.0 million, and tax credit carryforwards with respect to its foreign tax jurisdictions of approximately $3.3 million. As of January 1, 2022, the Company had a valuation allowance of $5.5 million due to uncertainties in respect to its ability to utilize its U.S. (federal and state) net operating loss, capital loss and tax credit carryforwards. The Company also had a valuation allowance of $12.2 million due to uncertainties in its ability to utilize foreign net operating loss carryforwards, tax credit carryforwards and other foreign deferred tax assets.

At January 1, 2022, the Company had unrecognized tax benefits of approximately $10.5 million. All of the unrecognized tax benefits would favorably impact the Company's effective tax rate if recognized. The Company believes it is reasonably possible that unrecognized tax benefits could change by $0.6 million in the next twelve months. The possible change in unrecognized tax benefits relates to expiration of certain statutes of limitation. The Company recognizes accrued interest and penalties, as appropriate, related to unrecognized tax benefits as a component of income tax expense. As of January 1, 2022, interest and penalties related to unrecognized tax benefits were $1.1 million.

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

January 1, 2022January 2, 2021
Balance at beginning of Year$5,039 $7,810 
Change in tax positions related to current year5,940 9 
Change in tax positions related to prior years(471)(2,780)
Change in tax positions due to settlement with tax authorities— — 
Expiration of the Statute of Limitations— — 
Balance at end of year$10,508 $5,039 

In fiscal 2021, the Company's major taxing jurisdictions are U.S. (federal and state), Belgium, Brazil, Canada, China, France, Germany and the Netherlands. The Company is subject to regular examination by various tax authorities. Although the final outcome of these examinations is not yet determinable, the Company does not anticipate that any of the examinations will have a significant impact on the Company's results of operations or financial position. The statute of limitations for the Company's major jurisdictions is open for varying periods, but is generally closed through the 2013 tax year.
The Company expects to have access to its offshore earnings with minimal to no additional U.S. tax impact. Therefore, the Company does not consider these earnings to be permanently reinvested offshore. As of January 1, 2022, a deferred tax liability of approximately $10.4 million has been recorded for any incremental taxes, including foreign withholding taxes, that are estimated to be incurred when those earnings are distributed to the U.S. in future years.