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Income Taxes | 12 Months Ended
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Dec. 28, 2013
Income Taxes [Abstract] |
Income Taxes | Note 7 – Income Taxes The components of income before income taxes were taxed under the following jurisdictions:
(In thousands) |  | 2013 |  |  | 2012 |  |  | 2011 |
Domestic |  | $ | 262,220 |  |  | $ | 105,945 |  |  | $ | 118,208 |
Foreign |  |  | 9,178 |  |  |  | 14,409 |  |  |  | 11,953 |
Income before income taxes |  | $ | 271,398 |  |  | $ | 120,354 |  |  | $ | 130,161 |
Income tax expense consists of the following:
(In thousands) |  | 2013 |  |  | 2012 |  |  | 2011 |
Current tax expense: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 69,565 |  |  | $ | 33,152 |  |  | $ | 43,127 |
Foreign |  |  | 2,608 |  |  |  | 1,764 |  |  |  | 1,740 |
State and local |  |  | 6,723 |  |  |  | 3,049 |  |  |  | 2,398 |
Current tax expense |  |  | 78,896 |  |  |  | 37,965 |  |  |  | 47,265 |
Deferred tax expense (benefit): |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 17,694 |  |  |  | 570 |  |  |  | (6,480 | )
Foreign |  |  | (376 | ) |  |  | (2,015 | ) |  |  | 344 |
State and local |  |  | 1,895 |  |  |  | 161 |  |  |  | 1,946 |
Deferred tax expense (benefit) |  |  | 19,213 |  |  |  | (1,284 | ) |  |  | (4,190 | )
Income tax expense |  | $ | 98,109 |  |  | $ | 36,681 |  |  | $ | 43,075 |
No provision is made for U.S. income taxes applicable to undistributed earnings of foreign subsidiaries that are indefinitely reinvested in foreign operations. It is not practicable to compute the potential deferred tax liability associated with these undistributed foreign earnings. The Company has approximately $100 million of undistributed foreign earnings for which it has not recorded deferred tax liabilities. The difference between the reported income tax expense and a tax determined by applying the applicable U.S. federal statutory income tax rate to income before income taxes is reconciled as follows:
(In thousands) |  | 2013 |  |  | 2012 |  |  | 2011 |
Expected income tax expense |  | $ | 94,989 |  |  | $ | 42,124 |  |  | $ | 45,556 |
State and local income tax, net of federal benefit |  |  | 6,405 |  |  |  | 3,178 |  |  |  | 4,267 |
Effect of foreign statutory rate different from U.S. and other foreign adjustments |  |  | (1,026 | ) |  |  | (2,637 | ) |  |  | (560 | )
Valuation allowance changes |  |  | — |  |  |  | (1,224 | ) |  |  | (443 | )
U.S. production activities deduction |  |  | (4,445 | ) |  |  | (2,975 | ) |  |  | (3,850 | )
Goodwill disposition |  |  | 1,790 |  |  |  | — |  |  |  | — |
Tax contingency changes |  |  | (140 | ) |  |  | (3,224 | ) |  |  | (1,934 | )
Other, net |  |  | 536 |  |  |  | 1,439 |  |  |  | 39 |
Income tax expense |  | $ | 98,109 |  |  | $ | 36,681 |  |  | $ | 43,075 |
During 2012 and 2011, the Company released a valuation allowance of $1.2 million, or three cents per diluted share, and $0.4 million, or one cent per diluted share, respectively, due to the expectation that certain state tax attributes will be utilized. The following summarizes the activity related to the Company’s unrecognized tax benefits:
(In thousands) |  | 2013 |  |  | 2012 |
Beginning balance |  | $ | 3,259 |  |  | $ | 6,572 |
Increases related to prior year tax positions |  |  | — |  |  |  | — |
Increases related to current year tax positions |  |  | — |  |  |  | — |
Decreases related to prior year tax positions |  |  | — |  |  |  | — |
Decreases related to settlements with taxing authorities |  |  | (431 | ) |  |  | — |
Decreases due to lapses in the statute of limitations |  |  | — |  |  |  | (3,313 | )
Ending balance |  | $ | 2,828 |  |  | $ | 3,259 |
It is reasonably possible that the $2.8 million of unrecognized tax benefits will decrease by the full amount over the next twelve months, none of which will impact the effective tax rate, if recognized. The Company includes interest and penalties related to income tax matters as a component of income tax expense. The net reduction to income tax expense related to penalties and interest was immaterial in 2013 and in 2012, and $0.5 million in 2011. The Internal Revenue Service (IRS) concluded its audit of the Company’s 2009 and 2010 federal income tax returns during 2012, the results of which were immaterial to the consolidated financial statements. The IRS is currently auditing the 2012 federal income tax return, and the Company is currently under audit in various state and foreign jurisdictions. The statute of limitations is still open for the Company’s federal tax return and most state income tax returns for 2010 and all subsequent years. The statutes of limitations for certain state and foreign returns are also open for some earlier tax years due to ongoing audits and differing statute periods. While the Company believes that it is adequately reserved for possible audit adjustments, the final resolution of these examinations cannot be determined with certainty and could result in final settlements that differ from current estimates. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:
(In thousands) |  | 2013 |  |  | 2012 |
Deferred tax assets: |  |  |  |  |  |
Accounts receivable |  | $ | 490 |  |  | $ | 447 |
Inventories |  |  | 11,136 |  |  |  | 7,829 |
Other postretirement benefits and accrued items |  |  | 13,548 |  |  |  | 14,767 |
Pension |  |  | — |  |  |  | 10,489 |
Other reserves |  |  | 12,441 |  |  |  | 14,905 |
Federal and foreign tax attributes |  |  | 5,913 |  |  |  | 9,829 |
State tax attributes, net of federal benefit |  |  | 24,663 |  |  |  | 29,880 |
Insurance Claim Receivable |  |  | — |  |  |  | 8,048 |
Share-based Compensation |  |  | 2,486 |  |  |  | 1,493 |
Total deferred tax assets |  |  | 70,677 |  |  |  | 97,687 |
Less valuation allowance |  |  | (22,544 | ) |  |  | (30,394 | )
Deferred tax assets, net of valuation allowance |  |  | 48,133 |  |  |  | 67,293 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property, plant, and equipment |  |  | 60,425 |  |  |  | 49,531 |
Pension |  |  | 4,507 |  |  |  | — |
Other |  |  | 2,209 |  |  |  | 983 |
Total deferred tax liabilities |  |  | 67,141 |  |  |  | 50,514 |
Net deferred tax (liability) asset |  | $ | (19,008 | ) |  | $ | 16,779 |
As of December 28, 2013, after consideration of the federal impact, the Company had state income tax credit carryforwards of $2.0 million, all of which expire by 2016, and other state income tax credit carryforwards of $11.9 million with unlimited lives. The Company had state net operating loss (NOL) carryforwards with potential tax benefits of $10.7 million expiring between 2014 and 2028. The state tax credit and NOL carryforwards are offset by valuation allowances totaling $19.4 million. As of December 28, 2013, the Company had federal and foreign tax attributes with potential tax benefits of $5.9 million, of which $4.5 million has an unlimited life and $1.4 million expire from 2014 to 2018. These attributes were offset by valuation allowances of $3.2 million. The change in the valuation allowance was primarily related to deferred assets that are fully reserved, such that the change had no material impact on the effective tax rate. Income taxes paid were approximately $80.1 million in 2013, $38.4 million in 2012, and $45.9 million in 2011.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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