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Income Taxes (Tables) | 12 Months Ended
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Jan. 01, 2022
Income Tax Disclosure [Abstract] |
Schedule of Earnings Before Taxes | Earnings before taxes is summarized as follows (in thousands):
| 2021 |  | 2020 |  | 2019
Domestic | $ | 453,357 |  |  | $ | 178,813 |  |  | $ | 336,688 |
Foreign | 166,147 |  |  | 89,244 |  |  | 125,931 |
Total | $ | 619,504 |  |  | $ | 268,057 |  |  | $ | 462,619 |
Schedule of Provision of Taxes | The provision for income taxes is summarized as follows (in thousands):
| 2021 |  | 2020 |  | 2019
Federal | $ | 84,689 |  |  | $ | 36,908 |  |  | $ | 69,074 |
State and local | 24,363 |  |  | 8,815 |  |  | 16,203 |
Foreign | 21,960 |  |  | 15,040 |  |  | 25,102 |
Total | $ | 131,012 |  |  | $ | 60,763 |  |  | $ | 110,379 |
Current | $ | 124,149 |  |  | $ | 44,342 |  |  | $ | 88,167 |
Deferred | 6,863 |  |  | 16,421 |  |  | 22,212 |
Total | $ | 131,012 |  |  | $ | 60,763 |  |  | $ | 110,379 |
Schedule of Effective Income Tax Reconciliation | Reconciliation of the differences between income taxes computed at the federal statutory rate to the effective rate are as follows:
| 2021 |  | 2020 |  | 2019
U.S. federal statutory tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State taxes, net of federal benefit | 3.1 |  |  | 3.2 |  |  | 3.2 |
Permanent differences | 0.5 |  |  | (0.4) |  |  | 0.6 |
Foreign income tax rate at rates other than U.S. statutory | 0.2 |  |  | 0.5 |  |  | 0.2 |
Deferred tax changes | (2.2) |  |  | (0.7) |  |  | — |
Tax refunds | (0.7) |  |  | — |  |  | — |
Change in valuation allowances (1) | 0.4 |  |  | (0.1) |  |  | 0.1 |
Tax on unremitted earnings | 0.4 |  |  | 1.2 |  |  | 0.3 |
Other | (1.6) |  |  | (2.0) |  |  | (1.5) |
Consolidated effective tax | 21.1 | % |  | 22.7 | % |  | 23.9 | %
Schedule of Deferred Assets and Liabilities | At January 1, 2022 and January 2, 2021, the company had recorded the following deferred tax assets and liabilities (in thousands):
| 2021 |  | 2020
Deferred tax assets: |  |  |
Compensation related | $ | 21,543 |  |  | $ | 12,328 |
Pension and post-retirement benefits | 49,072 |  |  | 88,709 |
Inventory reserves | 14,453 |  |  | 14,732 |
Accrued liabilities and reserves | 17,088 |  |  | 22,049 |
Warranty reserves | 19,286 |  |  | 17,890 |
Operating lease liability | 18,643 |  |  | 16,180 |
Interest rate swaps | 4,573 |  |  | 12,997 |
Convertible debt | 37,034 |  |  | — |
Net operating loss carryforwards | 17,083 |  |  | 20,747 |
Other | 12,695 |  |  | 17,187 |
Gross deferred tax assets | 211,470 |  |  | 222,819 |
Valuation allowance | (10,222) |  |  | (11,731) |
Deferred tax assets | $ | 201,248 |  |  | $ | 211,088 |
Deferred tax liabilities: |  |  |
Intangible assets | $ | (273,974) |  |  | $ | (226,598) |
Depreciable assets | (26,996) |  |  | (26,916) |
Basis difference on affiliates | (18,795) |  |  | — |
Operating lease right-of-use assets | (18,029) |  |  | (15,921) |
Other | (17,195) |  |  | (12,825) |
Deferred tax liabilities | $ | (354,989) |  |  | $ | (282,260) |
Net deferred tax assets (liabilities) | $ | (153,741) |  |  | $ | (71,172) |
Long-term deferred asset | 33,194 |  |  | 76,052 |
Long-term deferred liability | (186,935) |  |  | (147,224) |
Net deferred tax assets (liabilities) | $ | (153,741) |  |  | $ | (71,172) |
Schedule of Unrecognized Tax Benefits | The following table summarizes the activity related to the unrecognized tax benefits for the fiscal years ended December 28, 2019, January 2, 2021 and January 1, 2022 (in thousands):
Balance at December 28, 2019 | $ | 31,559 |
Increases to current year tax positions | 3,657 |
Increase to prior year tax positions | 183 |
Decrease to prior year tax positions | (53) |
Settlements | (533) |
Lapse of statute of limitations | (4,484) |
Balance at January 2, 2021 | $ | 30,329 |
Increases to current year tax positions | 1,760 |
Increase to prior year tax positions | 6,796 |
Decrease to prior year tax positions | (576) |
Settlements | (1,180) |
Lapse of statute of limitations | (920) |
Balance as of January 1, 2022 | $ | 36,209 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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