Income Taxes Income Taxes (Tables)

12 Months Ended

Jan. 01, 2022

Schedule of Income before Income Tax, Domestic and Foreign

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


	January 1, 2022		January 2, 2021		December 28, 2019
United States	$	545,861	$	265,950	$	260,867
Foreign	275,535		87,669		119,567
Income before income taxes	$	821,396	$	353,619	$	380,434

Schedule of Components of Income Tax Expense (Benefit)

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


	January 1, 2022		January 2, 2021		December 28, 2019
Current:
Federal	$	(31)	$	(72)	$	(162)
State	8,442		1,595		341
Foreign	60,730		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

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


	January 1, 2022		January 2, 2021
Balance at beginning of Year	$	5,039	$	7,810
Change in tax positions related to current year	5,940		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

Schedule of Effective Income Tax Rate Reconciliation

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, 2022		January 2, 2021		December 28, 2019
Computed "expected" tax expense	$	172,493	$	74,260	$	79,891

Change in valuation allowance	(4,996)		(522)		38
Non-deductible compensation expenses	4,324		4,723		3,950
Deferred tax on unremitted foreign earnings	3,415		(548)		1,505

Foreign rate differential	14,748		7,077		7,246
Change in uncertain tax positions	6,809		(4,650)		1,736
State income taxes, net of federal benefit	18,205		2,702		5,686
Biofuel tax incentives	(38,778)		(31,725)		(46,007)
Change in tax law	1,869		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

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 1, 2022 and January 2, 2021 are presented below (in thousands):


	January 1, 2022		January 2, 2021
Deferred tax assets:
Loss contingency reserves	$	11,169	$	9,805
Employee benefits	13,059		13,027
Pension liability	8,208		13,053


Tax loss carryforwards	123,194		68,730
Tax credit carryforwards	4,267		6,610
Operating lease liabilities	41,949		38,930
Inventory	8,533		5,935
Accrued liabilities and other	21,337		14,801
Total gross deferred tax assets	231,716		170,891
Less valuation allowance	(17,685)		(24,228)
Net deferred tax assets	214,031		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)