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Income Taxes
 12 Months Ended
Dec. 29, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Earnings before income tax expense consist of (in thousands):
202320222021
Domestic$450,806 $401,405 $370,903 
Foreign157,996 164,319 137,562 
Total$608,802 $565,724 $508,465 
Income tax expense consists of (in thousands):
202320222021
Current
Federal$79,732 $70,976 $77,703 
State and local7,282 5,948 7,493 
Foreign23,779 38,152 29,975 
Current income tax expense110,793 115,076 115,171 
Deferred
Domestic(6,919)(8,733)(42,413)
Foreign(1,583)(1,264)(4,159)
Deferred income tax expense (benefit)(8,502)(9,997)(46,572)
Total$102,291 $105,079 $68,599 

Income taxes paid were $111.3 million in 2023, $112.3 million in 2022 and $111.8 million in 2021.

A reconciliation between the U.S. federal statutory tax rate and the effective tax rate follows:
202320222021
Statutory tax rate21 %21 %21 %
Tax effect of international operations(1)1 (1)
State taxes, net of federal effect1 1 1 
U.S. general business tax credits(1)(1)(1)
Stock compensation excess tax benefit(1)(1)(2)
Foreign Derived Intangible Income (FDII)(2)(2)(5)
Effective tax rate17 %19 %13 %

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):
20232022
Inventory valuations$1,005 $678 
Accrued self-insurance retentions1,390 1,626 
Accrued warranty and service liabilities2,290 2,279 
Vacation accruals3,450 3,409 
Customer allowances 4,137 4,143 
Excess of tax over book depreciation and amortization(44,197)(42,322)
Pension benefit obligation10,063 6,375 
Postretirement medical benefit obligation5,039 5,072 
Stock compensation12,686 12,390 
Deferred compensation2,205 2,283 
Deferred revenue2,024 2,160 
Research and development23,324 11,370 
Prepayments from foreign subsidiaries27,301 36,070 
Other2,449 2,114 
Net deferred tax assets$53,166 $47,647 

Total deferred tax assets were $61.4 million and $57.1 million, and total deferred tax liabilities were $8.2 million and $9.4 million on December 29, 2023 and December 30, 2022, 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.
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 2017.

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 29, 2023, 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.