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Income Taxes | 12 Months Ended
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Dec. 26, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of income before income taxes were taxed under the following jurisdictions:
(In thousands) |  | 2020 |  | 2019 |  | 2018
Domestic |  | $ | 144,770 |  |  | $ | 112,812 |  |  | $ | 105,455 |
Foreign |  | 64,419 |  |  | 53,271 |  |  | 44,962 |
Income before income taxes |  | $ | 209,189 |  |  | $ | 166,083 |  |  | $ | 150,417 |
Income tax expense consists of the following:
(In thousands) |  | 2020 |  | 2019 |  | 2018
Current tax expense: |  |  |  |  |  |
Federal |  | $ | 37,964 |  |  | $ | 19,066 |  |  | $ | 17,974 |
Foreign |  | 16,221 |  |  | 12,727 |  |  | 9,650 |
State and local |  | 5,182 |  |  | 3,892 |  |  | 3,158 |
Current tax expense |  | 59,367 |  |  | 35,685 |  |  | 30,782 |
Deferred tax (benefit) expense: |  |  |  |  |  |
Federal |  | (5,991) |  |  | 1,725 |  |  | (1,381) |
Foreign |  | 90 |  |  | (2,311) |  |  | 551 |
State and local |  | 1,855 |  |  | 158 |  |  | 1,000 |
Deferred tax (benefit) expense |  | (4,046) |  |  | (428) |  |  | 170 |
Income tax expense |  | $ | 55,321 |  |  | $ | 35,257 |  |  | $ | 30,952 |
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) |  | 2020 |  | 2019 |  | 2018
Expected income tax expense |  | $ | 43,930 |  |  | $ | 34,892 |  |  | $ | 31,588 |
State and local income tax, net of federal benefit |  | 5,949 |  |  | 3,234 |  |  | 3,495 |
Effect of foreign statutory rates different from U.S. and other foreign adjustments |  | 2,783 |  |  | (771) |  |  | 759 |
Investment in unconsolidated affiliates |  | (387) |  |  | 538 |  |  | (2,776) |
Effect of tax on accumulated foreign earnings |  | — |  |  | (111) |  |  | (4,415) |
Other, net |  | 3,046 |  |  | (2,525) |  |  | 2,301 |
Income tax expense |  | $ | 55,321 |  |  | $ | 35,257 |  |  | $ | 30,952 |
The Tax Cuts and Jobs Act (the Act) was enacted on December 22, 2017. The Act required companies to pay a one-time transition tax on the accumulated earnings of certain foreign subsidiaries. The Company applied the guidance in Staff Accounting Bulletin No. 118 in accounting for the enactment date effects of the Act. During the fourth quarter of 2018, the Company completed its accounting for all of the enactment-date income tax effects of the Act, and following the completion of the analysis of the calculation of the transition tax, the Company recorded a reduction to income tax expense of $4.4 million, or eight cents per diluted share, to reduce this liability. During 2019, the Treasury Department finalized regulation related to the calculation of the transition tax, the impact of which was immaterial to the Company’s Consolidated Financial Statements. The Company continues to assert that the undistributed earnings of most of its foreign subsidiaries are permanently reinvested. No taxes have been accrued with respect to these undistributed earnings or any outside basis differences. The Company has elected to provide for the tax expense related to global intangible low-taxed income (GILTI) in the year the tax is incurred. The Company includes interest and penalties related to income tax matters as a component of income tax expense, none of which was material in 2020, 2019, and 2018. The statute of limitations is open for the Company’s federal tax return for 2015 and for 2017 and all subsequent years. The statutes of limitations for most state returns are open for 2017 and all subsequent years, and some state and foreign returns are also open for some earlier tax years due to differing statute periods. The Internal Revenue Service is currently auditing the Company’s 2015 and 2017 tax returns. 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) |  | 2020 |  | 2019
Deferred tax assets: |  |  |  |
Inventories |  | $ | 13,910 |  |  | $ | 12,247 |
Other postretirement benefits and accrued items |  | 11,477 |  |  | 9,271 |
Other reserves |  | 7,782 |  |  | 6,834 |
Foreign tax attributes |  | 6,250 |  |  | 5,909 |
State tax attributes, net of federal benefit |  | 21,178 |  |  | 22,395 |
Stock-based compensation |  | 3,751 |  |  | 3,378 |
Right of Use Liability |  | 6,034 |  |  | 5,965 |
Basis difference in unconsolidated affiliates |  | 8,478 |  |  | 6,547 |
Total deferred tax assets |  | 78,860 |  |  | 72,546 |
Less valuation allowance |  | (27,199) |  |  | (23,130) |
Deferred tax assets, net of valuation allowance |  | 51,661 |  |  | 49,416 |
Deferred tax liabilities: |  |  |  |
Property, plant, and equipment |  | 48,990 |  |  | 47,791 |
Pension |  | — |  |  | 949 |
Right of Use Asset |  | 6,157 |  |  | 5,967 |
Other Liabilities |  | 638 |  |  | 311 |
Total deferred tax liabilities |  | 55,785 |  |  | 55,018 |
Net deferred tax liabilities |  | $ | (4,124) |  |  | $ | (5,602) |
As of December 26, 2020, after consideration of the federal impact, the Company had state income tax credit carryforwards of $2.6 million, all of which expire by 2023, and other state income tax credit carryforwards of $9.0 million with unlimited lives. The Company had state net operating loss (NOL) carryforwards with potential tax benefits of $9.6 million, after consideration of the federal impact, expiring between 2021 and 2035. The state tax credit and NOL carryforwards are offset by valuation allowances totaling $12.0 million. As of December 26, 2020, the Company had other foreign tax attributes with potential tax benefits of $4.6 million that have an unlimited life. These attributes were offset by a valuation allowance totaling $3.4 million. The Company also had other foreign tax attributes of $1.6 million, which have limited lives expiring between 2034 and 2040. The Company has also recorded a valuation allowance against deferred tax assets related to the book-tax differences in investments in unconsolidated affiliates. Income taxes paid were approximately $49.3 million in 2020, $41.8 million in 2019, and $38.1 million in 2018.

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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