Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Income before Income Tax, Domestic and Foreign

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


	December 31, 2022		January 1, 2022		January 2, 2021
United States	$	551,521	$	545,861	$	265,950
Foreign	342,197		275,535		87,669
Income before income taxes	$	893,718	$	821,396	$	353,619

Schedule of Components of Income Tax Expense (Benefit)

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


	December 31, 2022		January 1, 2022		January 2, 2021
Current:
Federal	$	(206)	$	(31)	$	(72)
State	2,288		8,442		1,595
Foreign	105,368		60,730		36,453
Total current	107,450		69,141		37,976
Deferred:
Federal	35,290		66,883		20,827
State	18,150		19,495		840
Foreign	(14,264)		8,587		(6,354)
Total deferred	39,176		94,965		15,313
	$	146,626	$	164,106	$	53,289

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


	December 31, 2022		January 1, 2022
Balance at beginning of Year	$	10,508	$	5,039
Change in tax positions related to current year	7,904		5,940
Change in tax positions related to prior years	(38)		(471)
Change in tax positions due to settlement with tax authorities	—		—
Expiration of the Statute of Limitations	(532)		—
Balance at end of year	$	17,842	$	10,508

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense for the years ended December 31, 2022, January 1, 2022 and January 2, 2021, 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):


	December 31, 2022		January 1, 2022		January 2, 2021
Computed "expected" tax expense	$	187,681	$	172,493	$	74,260

Change in valuation allowance	(3,241)		(4,996)		(522)
Non-deductible compensation expenses	5,320		4,324		4,723
Deferred tax on unremitted foreign earnings	4,939		3,415		(548)

Foreign rate differential	17,628		14,748		7,077
Change in uncertain tax positions	8,167		6,809		(4,650)
State income taxes, net of federal benefit	10,738		18,205		2,702
Biofuel tax incentives	(77,189)		(38,778)		(31,725)
Change in tax law	(13)		1,869		3,699

Equity compensation windfall	(13,441)		(11,046)		(2,897)
Other, net	6,037		(2,937)		1,170
	$	146,626	$	164,106	$	53,289

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 31, 2022 and January 1, 2022 are presented below (in thousands):


	December 31, 2022		January 1, 2022
Deferred tax assets:
Loss contingency reserves	$	11,775	$	11,169
Employee benefits	14,480		13,059
Pension liability	3,505		8,208

Interest expense carryforwards	28,769		46
Tax loss carryforwards	275,675		123,194
Tax credit carryforwards	2,432		4,267
Operating lease liabilities	53,765		41,949
Inventory	15,002		8,533
Accrued liabilities and other	18,408		16,271
Total gross deferred tax assets	423,811		226,696
Less valuation allowance	(12,788)		(17,685)
Net deferred tax assets	411,023		209,011

Deferred tax liabilities:
Intangible assets amortization, including taxable goodwill	(238,347)		(172,575)
Property, plant and equipment depreciation	(218,316)		(140,158)
Investment in DGD Joint Venture	(344,633)		(188,154)
Operating lease assets	(52,330)		(40,965)
Tax on unremitted foreign earnings	(12,890)		(10,379)
Other	(8,451)		(3,511)
Total gross deferred tax liabilities	(874,967)		(555,742)
Net deferred tax liability	$	(463,944)	$	(346,731)

Amounts reported on Consolidated Balance Sheets:
Non-current deferred tax asset	$	17,888	$	16,211
Non-current deferred tax liability	(481,832)		(362,942)
Net deferred tax liability	$	(463,944)	$	(346,731)