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Income Taxes (Tables)

12 Months Ended

Dec. 28, 2019

Income Tax Disclosure [Abstract]

Geographic Components of Earnings Before Income Taxes

The geographic components of earnings (loss) before income taxes are as follows:

	Fiscal Year
(In millions)	2019				2018				2017
United States	$	79.3			$	159.2			$	(78.2	)
Foreign	66.6				68.2				67.6
Earnings (loss) before income taxes	$	145.9			$	227.4			$	(10.6	)

Provisions for Income Taxes

The provisions for income tax expense (benefit) consist of the following:

	Fiscal Year
(In millions)	2019				2018				2017
Current expense:
Federal	$	10.6			$	6.7			$	48.1
State	0.5				2.4				1.9
Foreign	12.5				10.9				14.0
Deferred expense (credit):
Federal	(5.8		)		2.1				(72.0		)
State	(2.0		)		3.3				(0.2		)
Foreign	1.2				1.7				(1.7		)
Income tax provision	$	17.0			$	27.1			$	(9.9	)

Reconciliation of Income Tax Expense, Net of Federal Income Tax Rate

A reconciliation of the Company’s total income tax expense and the amount computed by applying the statutory federal income tax rate to earnings before income taxes is as follows:

	Fiscal Year
(In millions)	2019				2018				2017
Income taxes at U.S. statutory rates of 21%, 21% and 35%	$	30.6			$	47.7			$	(3.7	)
State income taxes, net of federal income tax	0.5				2.8				(4.2		)
(Nontaxable earnings) non-deductible losses of foreign affiliates:
Cayman Islands	—				—				(3.5		)
Other	(0.1		)		(0.1		)		(0.3		)
Foreign earnings taxed at rates different from the U.S. statutory rate:
Hong Kong	(8.5		)		(10.8		)		(17.3		)
Other	2.8				(3.1		)		3.5
Adjustments for uncertain tax positions	(1.0		)		(1.4		)		0.4
Change in valuation allowance	(0.2		)		3.3				3.0
Change in state tax rates	(1.5		)		1.9				0.1
Transition tax due to TCJA	—				(0.1		)		58.1
Remeasurement of U.S. deferred taxes due to TCJA	—				—				(52.5		)
Global Intangible Low Tax Income tax	2.1				3.7				—
Foreign Derived Intangible Income tax benefit	(4.4		)		(6.8		)		—
Non-deductible executive compensation	2.0				0.9				0.7
Permanent adjustments related to employee share based compensation	(5.1		)		(3.8		)		(1.9		)
Deferred tax on future cash dividends	0.6				(0.9		)		3.0
Other Permanent adjustments and non-deductible expenses	(0.6		)		(6.7		)		0.6
Other	(0.2		)		0.5				4.1
Income tax provision	$	17.0			$	27.1			$	(9.9	)

Significant Components of Deferred Income Tax Assets and Liabilities

Significant components of the Company’s deferred income tax assets and liabilities are as follows:

(In millions)	December 28, 2019				December 29, 2018
Deferred income tax assets:
Accounts receivable and inventory valuation allowances	$	5.7			$	4.9
Deferred compensation accruals	4.0				6.9
Accrued pension expense	25.3				21.6
Stock-based compensation	14.5				16.9
Net operating loss and foreign tax credit carryforwards	17.6				19.2
Book over tax depreciation and amortization	0.5				0.8
Tenant lease expenses	3.6				4.1
Environmental reserve	15.4				5.0
Other	5.1				5.8
Total gross deferred income tax assets	91.7				85.2
Less valuation allowance	(17.6		)		(17.8		)
Net deferred income tax assets	74.1				67.4
Deferred income tax liabilities:
Intangible assets	(157.5		)		(157.3		)
Tax over book depreciation and amortization	(8.6		)		(8.3		)
Other	(4.1		)		(6.6		)
Total deferred income tax liabilities	(170.2		)		(172.2		)
Net deferred income tax liabilities	$	(96.1	)		$	(104.8	)

Unrecognized Tax Benefits

The following table summarizes the activity related to the Company’s unrecognized tax benefits:

	Fiscal Year
(In millions)	2019				2018
Unrecognized tax benefits at beginning of the year	$	7.9			$	9.3
Increases related to current year tax positions	1.6				0.8
Decreases related to prior year positions	(1.4		)		(2.0		)
Decreases relating to settlements with taxing authorities	(1.2		)		—
Decrease due to lapse of statute	—				(0.2		)
Unrecognized tax benefits at end of the year	$	6.9			$	7.9

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