INCOME TAXES (Tables)

12 Months Ended

Jan. 03, 2021

Reconciliation of accounting profit multiplied by applicable tax rates and average effective tax rate

The reasons for the difference and the related tax effects are as follows:


		2020			2019

Earnings before income taxes		$	(229,373)		$	249,825
Applicable statutory tax rate		26.5		%	26.6		%
Income taxes at applicable statutory rate		(60,784)			66,404

Increase (decrease) in income taxes resulting from:
	Effect of different tax rates on earnings of foreign subsidiaries	35,017			(79,229)
	Income tax recovery and other adjustments related to prior taxation years	(1,417)			197

	Recognition of previously de-recognized tax benefits related to tax losses and temporary differences	(5,150)			(19,211)
	Non-recognition of tax benefits related to tax losses and temporary differences	22,451			16,877
	Effect of non-deductible expenses and other	5,792			4,978
Total income tax recovery		$	(4,091)		$	(9,984)
Average effective tax rate		1.8		%	(4.0)		%

Major components of tax expense (income)

The details of income tax expense are as follows:


		2020		2019

Current income taxes, includes a recovery of $1,511 (2019 - expense of $99) relating to prior taxation years		$	3,633	$	13,639

Deferred income taxes:


	Origination and reversal of temporary differences	(25,119)		(21,387)
	Recognition of previously de-recognized tax benefits related to tax losses and temporary differences	(5,150)		(19,211)
	Non-recognition of tax benefits related to tax losses and temporary differences	22,451		16,877
	Adjustments relating to prior taxation years	94		98
		(7,724)		(23,623)
Total income tax recovery		$	(4,091)	$	(9,984)

Disclosure of temporary difference, unused tax losses and unused tax credits

Significant components of the Company’s deferred income tax assets and liabilities relate to the following temporary differences and unused tax losses:


		January 3, 2021		December 29, 2019


Deferred income tax assets:
	Non-capital losses	$	99,659	$	99,504
	Non-deductible reserves and accruals	28,211		12,502
	Property, plant and equipment	15,319		12,439
	Other items	7,455		8,259
		150,644		132,704
	Unrecognized deferred income tax assets	(100,424)		(83,390)
Deferred income tax assets		$	50,220	$	49,314

Deferred income tax liabilities:
	Property, plant and equipment	$	(28,643)	$	(30,165)
	Intangible assets	(3,888)		(9,232)
Deferred income tax liabilities		$	(32,531)	$	(39,397)
Deferred income taxes		$	17,689	$	9,917

The details of changes to deferred income tax assets and liabilities were as follows:


		2020		2019

Balance, beginning of fiscal year, net		$	9,917	$	(12,623)

Recognized in the statements of earnings:
	Non-capital losses	155		14,804
	Non-deductible reserves and accruals	16,044		1,107
	Property, plant and equipment	4,400		2,142
	Intangible assets	5,344		1,033
	Other	(825)		2,203

	Unrecognized deferred income tax assets	(17,394)		2,334
		7,724		23,623

Business acquisitions		—		(1,100)
Other		48		17
Balance, end of fiscal year, net		$	17,689	$	9,917