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Income Taxes | 12 Months Ended
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Jan. 01, 2022
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES U.S. and foreign income before income taxes are as follows (in thousands):
| January 1, 2022 |  | January 2, 2021 |  | December 28, 2019
United States | $ | 545,861 |  |  | $ | 265,950 |  |  | $ | 260,867 |
Foreign | 275,535 |  |  | 87,669 |  |  | 119,567 |
Income before income taxes | $ | 821,396 |  |  | $ | 353,619 |  |  | $ | 380,434 |
Income tax expense attributable to income before income taxes consists of the following (in thousands):
| January 1, 2022 |  | January 2, 2021 |  | December 28, 2019
Current: |  |  |  |  |
Federal | $ | (31) |  |  | $ | (72) |  |  | $ | (162) |
State | 8,442 |  |  | 1,595 |  |  | 341 |
Foreign | 60,730 |  |  | 36,453 |  |  | 37,117 |
Total current | 69,141 |  |  | 37,976 |  |  | 37,296 |
Deferred: |  |  |  |  |
Federal | 66,883 |  |  | 20,827 |  |  | 13,465 |
State | 19,495 |  |  | 840 |  |  | 11,804 |
Foreign | 8,587 |  |  | (6,354) |  |  | (3,098) |
Total deferred | 94,965 |  |  | 15,313 |  |  | 22,171 |
| $ | 164,106 |  |  | $ | 53,289 |  |  | $ | 59,467 |
Income tax expense for the years ended January 1, 2022, January 2, 2021 and December 28, 2019, differed from the amount computed by applying the statutory U.S. federal income tax rate to income before income taxes as a result of the following (in thousands):
| January 1, 2022 |  | January 2, 2021 |  | December 28, 2019
Computed "expected" tax expense | $ | 172,493 |  |  | $ | 74,260 |  |  | $ | 79,891 |
Change in valuation allowance | (4,996) |  |  | (522) |  |  | 38 |
Non-deductible compensation expenses | 4,324 |  |  | 4,723 |  |  | 3,950 |
Deferred tax on unremitted foreign earnings | 3,415 |  |  | (548) |  |  | 1,505 |
Foreign rate differential | 14,748 |  |  | 7,077 |  |  | 7,246 |
Change in uncertain tax positions | 6,809 |  |  | (4,650) |  |  | 1,736 |
State income taxes, net of federal benefit | 18,205 |  |  | 2,702 |  |  | 5,686 |
Biofuel tax incentives | (38,778) |  |  | (31,725) |  |  | (46,007) |
Change in tax law | 1,869 |  |  | 3,699 |  |  | 1,352 |
Equity compensation windfall | (11,046) |  |  | (2,897) |  |  | (686) |
Other, net | (2,937) |  |  | 1,170 |  |  | 4,756 |
| $ | 164,106 |  |  | $ | 53,289 |  |  | $ | 59,467 |
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at January 1, 2022 and January 2, 2021 are presented below (in thousands):
| January 1, 2022 |  | January 2, 2021
Deferred tax assets: |  |  |
Loss contingency reserves | $ | 11,169 |  |  | $ | 9,805 |
Employee benefits | 13,059 |  |  | 13,027 |
Pension liability | 8,208 |  |  | 13,053 |
Tax loss carryforwards | 123,194 |  |  | 68,730 |
Tax credit carryforwards | 4,267 |  |  | 6,610 |
Operating lease liabilities | 41,949 |  |  | 38,930 |
Inventory | 8,533 |  |  | 5,935 |
Accrued liabilities and other | 21,337 |  |  | 14,801 |
Total gross deferred tax assets | 231,716 |  |  | 170,891 |
Less valuation allowance | (17,685) |  |  | (24,228) |
Net deferred tax assets | 214,031 |  |  | 146,663 |
Deferred tax liabilities: |  |  |
Intangible assets amortization, including taxable goodwill | (172,575) |  |  | (169,277) |
Property, plant and equipment depreciation | (145,178) |  |  | (133,712) |
Investment in DGD Joint Venture | (188,154) |  |  | (52,238) |
Operating lease assets | (40,965) |  |  | (38,049) |
Tax on unremitted foreign earnings | (10,379) |  |  | (10,234) |
Other | (3,511) |  |  | (2,685) |
Total gross deferred tax liabilities | (560,762) |  |  | (406,195) |
Net deferred tax liability | $ | (346,731) |  |  | $ | (259,532) |
Amounts reported on Consolidated Balance Sheets: |  |  |
Non-current deferred tax asset | $ | 16,211 |  |  | $ | 16,676 |
Non-current deferred tax liability | (362,942) |  |  | (276,208) |
Net deferred tax liability | $ | (346,731) |  |  | $ | (259,532) |
At January 1, 2022, the Company had net operating loss carryforwards for federal income tax purposes of approximately $381.4 million, $14.5 million of which expire in 2036 and $366.9 million of which can be carried forward indefinitely. The Company had a capital loss carry forward for federal income tax purposes of approximately $21.1 million, which expires in 2023 and can only be used in future years in which the Company recognizes capital gains. The Company had approximately $233.4 million of net operating loss carryforwards for state income tax purposes, $174.3 million of which expire in 2022 through 2041 and $59.1 million of which can be carried forward indefinitely. The Company had foreign net operating loss carryforwards of about $96.6 million, $21.4 million of which expire in 2022 through 2038 and $75.2 million of which can be carried forward indefinitely. Also at January 1, 2022, the Company had U.S. federal and state tax credit carryforwards of approximately $1.0 million, and tax credit carryforwards with respect to its foreign tax jurisdictions of approximately $3.3 million. As of January 1, 2022, the Company had a valuation allowance of $5.5 million due to uncertainties in respect to its ability to utilize its U.S. (federal and state) net operating loss, capital loss and tax credit carryforwards. The Company also had a valuation allowance of $12.2 million due to uncertainties in its ability to utilize foreign net operating loss carryforwards, tax credit carryforwards and other foreign deferred tax assets. At January 1, 2022, the Company had unrecognized tax benefits of approximately $10.5 million. 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 $0.6 million in the next twelve months. The possible change in unrecognized tax benefits relates to expiration of certain statutes of limitation. The Company recognizes accrued interest and penalties, as appropriate, related to unrecognized tax benefits as a component of income tax expense. As of January 1, 2022, interest and penalties related to unrecognized tax benefits were $1.1 million. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):
| January 1, 2022 |  | January 2, 2021
Balance at beginning of Year | $ | 5,039 |  |  | $ | 7,810 |
Change in tax positions related to current year | 5,940 |  |  | 9 |
Change in tax positions related to prior years | (471) |  |  | (2,780) |
Change in tax positions due to settlement with tax authorities | — |  |  | — |
Expiration of the Statute of Limitations | — |  |  | — |
Balance at end of year | $ | 10,508 |  |  | $ | 5,039 |
In fiscal 2021, the Company's major taxing jurisdictions are U.S. (federal and state), Belgium, Brazil, Canada, China, France, Germany and the Netherlands. The Company is subject to regular examination by various 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 2013 tax year. The Company expects to have access to its offshore earnings with minimal to no additional U.S. tax impact. Therefore, the Company does not consider these earnings to be permanently reinvested offshore. As of January 1, 2022, a deferred tax liability of approximately $10.4 million has been recorded for any incremental taxes, including foreign withholding taxes, that are estimated to be incurred when those earnings are distributed to the U.S. in future years.

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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=121826272&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=122134291&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=121826272&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=122134291&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=121826272&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 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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