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Income Taxes
 12 Months Ended
Dec. 27, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Earnings before income tax expense consist of (in thousands):
202420232022
Domestic$484,088 $450,806 $401,405 
Foreign105,195 157,996 164,319 
Total$589,283 $608,802 $565,724 
Income tax expense consists of (in thousands):
202420232022
Current
Federal$62,402 $79,732 $70,976 
State and local6,256 7,282 5,948 
Foreign28,481 23,779 38,152 
Current income tax expense97,139 110,793 115,076 
Deferred
Domestic8,344 (6,919)(8,733)
Foreign(2,284)(1,583)(1,264)
Deferred income tax expense (benefit)6,060 (8,502)(9,997)
Total$103,199 $102,291 $105,079 

Income taxes paid were $104 million in 2024, $111 million in 2023 and $112 million in 2022.

A reconciliation between the U.S. federal statutory tax rate and the effective tax rate follows:
202420232022
Statutory tax rate21 %21 %21 %
Tax effect of international operations1 (1)1 
State taxes, net of federal effect1 1 1 
U.S. general business tax credits(1)(1)(1)
Stock compensation excess tax benefit(2)(1)(1)
Foreign Derived Intangible Income (FDII)(2)(2)(2)
Effective tax rate18 %17 %19 %

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):
20242023
Inventory valuations$3,456 $1,005 
Accrued self-insurance retentions1,187 1,390 
Accrued warranty and service liabilities2,392 2,290 
Vacation accruals3,409 3,450 
Customer allowances 4,080 4,137 
Excess of tax over book depreciation and amortization(79,728)(44,197)
Pension benefit obligation915 10,063 
Postretirement medical benefit obligation5,002 5,039 
Acquisition costs442 — 
Stock compensation12,634 12,686 
Deferred compensation5,305 2,205 
Deferred revenue927 2,024 
Research and development31,543 23,324 
Prepayments from foreign subsidiaries13,872 27,301 
Other3,652 2,449 
Net deferred tax assets$9,088 $53,166 

Total deferred tax assets were $47 million and $61 million, and total deferred tax liabilities were $38 million and $8 million on December 27, 2024 and December 29, 2023, 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 2018.

The Company continues to assert that it will indefinitely reinvest earnings of foreign subsidiaries to support the 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 27, 2024, 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.