XML 35 R20.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Income Taxes | 12 Months Ended
--- | ---
Jan. 02, 2016
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES U.S. and foreign income from operations before income taxes are as follows (in thousands):
| January 2, 2016 |  | January 3, 2015 |  | December 28, 2013
United States | $ | 50,473 |  |  | $ | 58,972 |  |  | $ | 174,470 |
Foreign | 48,307 |  |  | 22,480 |  |  | (10,792 | )
Income from operations before income taxes | $ | 98,780 |  |  | $ | 81,452 |  |  | $ | 163,678 |
Income tax expense attributable to income from continuing operations before income taxes consists of the following (in thousands):
| January 2, 2016 |  | January 3, 2015 |  | December 28, 2013
Current: |  |  |  |  |
Federal | $ | (21,775 | ) |  | $ | 1,134 |  |  | $ | 8,109 |
State | 411 |  |  | (884 | ) |  | 7,213 |
Foreign | 29,871 |  |  | 24,770 |  |  | 482 |
Total current | 8,507 |  |  | 25,020 |  |  | 15,804 |
Deferred: |  |  |  |  |  |  |
Federal | 13,057 |  |  | 886 |  |  | 40,396 |
State | (1,521 | ) |  | 1,235 |  |  | 505 |
Foreign | (6,542 | ) |  | (14,000 | ) |  | (1,994 | )
Total deferred | 4,994 |  |  | (11,879 | ) |  | 38,907 |
| $ | 13,501 |  |  | $ | 13,141 |  |  | $ | 54,711 |
Income tax expense for the years ended January 2, 2016, January 3, 2015 and December 28, 2013, differed from the amount computed by applying the statutory U.S. federal income tax rate to income from continuing operations before income taxes as a result of the following (in thousands):
| January 2, 2016 |  | January 3, 2015 |  | December 28, 2013
Computed "expected" tax expense | $ | 34,573 |  |  | $ | 28,508 |  |  | $ | 57,287 |
State income taxes, net of federal benefit | (722 | ) |  | 228 |  |  | 5,017 |
Change in valuation allowance | 4,421 |  |  | 5,420 |  |  | 507 |
Non-deductible compensation expenses | 303 |  |  | 1,622 |  |  | 106 |
Deferred tax on unremitted foreign earnings | 4,848 |  |  | 1,956 |  |  | — |
Sub-Part F income | 4,923 |  |  | 3,786 |  |  | — |
Foreign rate differential | (5,653 | ) |  | (9,754 | ) |  | 694 |
Biofuel tax incentives | (28,143 | ) |  | (22,546 | ) |  | (9,342 | )
Non-deductible transaction costs | — |  |  | 4,107 |  |  | 996 |
Other, net | (1,049 | ) |  | (186 | ) |  | (554 | )
| $ | 13,501 |  |  | $ | 13,141 |  |  | $ | 54,711 |
In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-17, Balance Sheet Classification of Deferred Taxes. This ASU amends Topic 740, Income Taxes. requiring deferred tax assets and liabilities to be classified as non-current in the statement of financial position. The Company has early adopted ASU No. 2015-17 effective January 2, 2016 on a retrospective basis. As required by ASU No. 2015-17, all deferred tax assets and liabilities are classified as non-current in the Company's consolidated balance sheets. This is a change from the Company's historical presentation whereby certain of the Company's deferred tax assets and liabilities were classified as current and the remaining amount was classified as non-current. Upon adoption of ASU No. 2015-17, current deferred tax assets of approximately $45.0 million and current deferred tax liabilities of approximately $0.6 million in the Company's January 3, 2015 consolidated balance sheet were reclassified as non-current. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at January 2, 2016 and January 3, 2015 are presented below (in thousands):
| January 2, 2016 |  | January 3, 2015
Deferred tax assets: |  |  |
Loss contingency reserves | $ | 11,961 |  |  | $ | 11,500 |
Employee benefits | 9,383 |  |  | 11,866 |
Pension liability | 17,714 |  |  | 20,106 |
Intangible assets amortization, including taxable goodwill | 2,947 |  |  | 3,300 |
Net operating losses | 99,534 |  |  | 75,920 |
Inventory | 7,934 |  |  | 7,965 |
Other | 16,621 |  |  | 11,130 |
Total gross deferred tax assets | 166,094 |  |  | 141,787 |
Less valuation allowance | (22,209 | ) |  | (18,037 | )
Net deferred tax assets | 143,885 |  |  | 123,750 |
Deferred tax liabilities: |  |  |
Intangible assets amortization, including taxable goodwill | (182,748 | ) |  | (189,877 | )
Property, plant and equipment depreciation | (209,925 | ) |  | (203,602 | )
Investment in DGD Joint Venture | (46,239 | ) |  | (41,040 | )
Tax on unremitted foreign earnings | (48,106 | ) |  | (47,870 | )
Other | (1,196 | ) |  | (3,368 | )
Total gross deferred tax liabilities | (488,214 | ) |  | (485,757 | )
Net deferred tax liability | $ | (344,329 | ) |  | $ | (362,007 | )
Amounts reported on Consolidated Balance Sheets: |  |  |
Non-current deferred tax asset | $ | 16,352 |  |  | $ | 17,266 |
Non-current deferred tax liability | (360,681 | ) |  | (379,273 | )
Net deferred tax liability | $ | (344,329 | ) |  | $ | (362,007 | )
At January 2, 2016, the Company had net operating loss carryforwards for federal income tax purposes of approximately $118.5 million, which begin to expire in 2019 through 2035. As a result of the change in ownership which occurred pursuant to the May 2002 recapitalization, utilization of approximately $4.9 million of the federal net operating loss carryforwards is limited to approximately $0.7 million per year for the remaining life of the net operating losses. The Company had approximately $119.5 million of net operating loss carryforwards for state income tax purposes, which expire in 2017 through 2035. Also at January 2, 2016, the Company had U.S. foreign tax credit carryforwards of approximately $2.2 million and state tax credit carryforwards of approximately $0.9 million. The Company had foreign net operating loss carryforwards of about $184.0 million, $88.3 million of which expire in 2016 through 2035 and $95.7 million of which can be carried forward indefinitely. As of January 2, 2016, the Company had a valuation allowance of $3.4 million due to uncertainties in respect to its ability to utilize its U.S. (federal and state) net operating loss and tax credit carryforwards before they expire. The Company also had a valuation allowance of $18.8 million due to uncertainties in its ability to utilize foreign net operating loss carryforwards and other foreign deferred tax assets. At January 2, 2016, the Company had unrecognized tax benefits of approximately $5.6 million. An indemnity receivable of $4.7 million has also been recorded in respect to the VION Acquisition. There was no material income statement activity in fiscal 2015 in respect to unrecognized tax benefits. All of the unrecognized tax benefits would favorably impact the Company's effective tax rate if recognized. The Company believes it is reasonably possible that unrecognized tax benefits could change by $2.2 million in the next twelve months. The possible change in unrecognized tax benefits relates to the expiration of certain statutes of limitation and the possible settlement of an ongoing income tax audit. The Company recognizes accrued interest and penalties, as appropriate, related to unrecognized tax benefits as a component of income tax expense. As of January 2, 2016, interest and penalties related to unrecognized tax benefits were $1.8 million. These interest and penalties related to the unrecognized tax benefits from the Vion Acquisition and were primarily recorded in purchase accounting. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):
| January 2, 2016 |  | January 3, 2015
Balance at beginning of Year | $ | 8,130 |  |  | $ | 652 |
Change in tax positions related to current year | — |  |  | — |
Change in tax positions related to prior years | (1,953 | ) |  | 7,935 |
Expiration of the Statute of Limitations | (573 | ) |  | (457 | )
Balance at end of year | $ | 5,604 |  |  | $ | 8,130 |
In fiscal 2015, the Company's major taxing jurisdictions are U.S. (federal and state), Belgium, Brazil, Canada, China, France, Germany and the Netherlands. The Company is currently subject to federal and state examinations in the U.S. for tax years 2012 through 2014. The Company is also subject to regular examination by various foreign tax authorities. Although the final outcome of these examinations is not yet determinable, the Company does not anticipate that any of the examinations will have a significant impact on the Company's results of operations or financial position. The statute of limitations for the Company's major jurisdictions is open for varying periods, but is generally closed through the 2009 tax year. Prior to fiscal 2014, the Company did not have significant operations outside of the U.S. During fiscal 2013, the Company began operations in Canada through the Rothsay Acquisition. During fiscal 2014, the Company began operations in the other major taxing jurisdictions through the VION Acquisition. The Company expects to indefinitely reinvest the earnings of its foreign subsidiaries outside the U.S. and has generally not provided deferred income taxes on the accumulated earnings of its foreign subsidiaries. At January 2, 2016, the amount of undistributed foreign subsidiary earnings indefinitely reinvested outside of the U.S. for which no U.S. deferred incomes taxes have been provided is approximately $44.0 million. It is not practicable to determine the deferred tax liability related to these undistributed earnings.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: 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 3: 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 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 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration