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Income Taxes
 12 Months Ended
Dec. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Earnings before income tax expense consist of (in thousands):
202220212020
Domestic$401,405 $370,903 $289,708 
Foreign164,319 137,562 84,943 
Total$565,724 $508,465 $374,651 
Income tax expense consists of (in thousands):
202220212020
Current
Federal$70,976 $77,703 $11,509 
State and local5,948 7,493 3,217 
Foreign38,152 29,975 18,722 
Current income tax expense115,076 115,171 33,448 
Deferred
Domestic(8,733)(42,413)12,856 
Foreign(1,264)(4,159)(2,109)
Deferred income tax expense (benefit)(9,997)(46,572)10,747 
Total$105,079 $68,599 $44,195 

Income taxes paid were $112.3 million in 2022, $111.8 million in 2021 and $44.0 million in 2020.

A reconciliation between the U.S. federal statutory tax rate and the effective tax rate follows:
202220212020
Statutory tax rate21 %21 %21 %
Tax effect of international operations1 (1)(2)
State taxes, net of federal effect1 1 1 
U.S. general business tax credits(1)(1)(1)
Loss on sale of business— — 2 
Stock compensation excess tax benefit(1)(2)(6)
Foreign Derived Intangible Income (FDII)(2)(5)(3)
Effective tax rate19 %13 %12 %

Deferred income taxes are provided for temporary differences between the financial reporting and the tax basis of assets and liabilities. The deferred tax assets (liabilities) resulting from these differences were as follows (in thousands):
20222021
Inventory valuations$678 $1,181 
Accrued self-insurance retentions1,626 1,534 
Accrued warranty and service liabilities2,279 2,285 
Vacation accruals3,409 3,261 
Customer allowances 4,143 4,028 
Excess of tax over book depreciation and amortization(42,322)(39,785)
Pension benefit obligation6,375 16,022 
Postretirement medical benefit obligation5,072 5,028 
Stock compensation12,390 11,442 
Deferred compensation2,283 2,595 
Deferred revenue2,160 2,427 
Research and Development11,370 — 
Prepayments from foreign subsidiaries36,070 32,969 
Other2,114 2,138 
Net deferred tax assets$47,647 $45,125 

Total deferred tax assets were $57.1 million and $55.8 million, and total deferred tax liabilities were $9.4 million and $10.7 million on December 30, 2022 and December 31, 2021, respectively. The difference between the deferred income tax provision and the change in net deferred income taxes is due to the changes in other comprehensive income (loss) items and acquisition purchase accounting.
The Company files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2016.

The Company continues to assert that it will indefinitely reinvest earnings of foreign subsidiaries to support expansion of its international business. No additional income or withholding taxes have been provided for any remaining undistributed foreign earnings, as these amounts continue to be indefinitely reinvested in foreign operations. As of December 30, 2022, the amount of cash held outside the U.S. was not significant to the Company’s liquidity and was available to fund investments abroad.

The Company records penalties and accrued interest related to uncertain tax positions in income tax expense. Total reserves for uncertain tax positions were not material.