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Income Taxes (Tables) | 12 Months Ended
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Jan. 02, 2021
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) | 2020 |  | 2019 |  | 2018
United States | $ | (218.6) |  |  | $ | 79.3 |  |  | $ | 159.2 |
Foreign | 34.5 |  |  | 66.6 |  |  | 68.2 |
Earnings (loss) before income taxes | $ | (184.1) |  |  | $ | 145.9 |  |  | $ | 227.4 |
Provisions for Income Taxes | The provisions for income tax expense (benefit) consist of the following:
| Fiscal Year
(In millions) | 2020 |  | 2019 |  | 2018
Current expense: |  |  |  |  |
Federal | $ | 0.7 |  |  | $ | 10.6 |  |  | $ | 6.7 |
State | 0.6 |  |  | 0.5 |  |  | 2.4 |
Foreign | 8.3 |  |  | 12.5 |  |  | 10.9 |
Deferred expense (credit): |  |  |  |  |
Federal | (51.6) |  |  | (5.8) |  |  | 2.1 |
State | (4.4) |  |  | (2.0) |  |  | 3.3 |
Foreign | 0.9 |  |  | 1.2 |  |  | 1.7 |
Income tax provision | $ | (45.5) |  |  | $ | 17.0 |  |  | $ | 27.1 |
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) | 2020 |  | 2019 |  | 2018
Income taxes at U.S. statutory rate of 21% | $ | (38.7) |  |  | $ | 30.6 |  |  | $ | 47.7 |
State income taxes, net of federal income tax | (8.1) |  |  | 0.5 |  |  | 2.8 |
Foreign earnings taxed at rates different from the U.S. statutory rate: |  |  |  |  |
Hong Kong | (3.3) |  |  | (8.5) |  |  | (10.8) |
Other | 1.2 |  |  | 2.8 |  |  | (3.1) |
Adjustments for uncertain tax positions | (1.4) |  |  | (1.0) |  |  | (1.4) |
Change in valuation allowance | 4.7 |  |  | (0.2) |  |  | 3.3 |
Change in state tax rates | — |  |  | (1.5) |  |  | 1.9 |
Global Intangible Low Tax Income tax | 2.5 |  |  | 2.1 |  |  | 3.7 |
Foreign Derived Intangible Income tax benefit | (1.6) |  |  | (4.4) |  |  | (6.8) |
Non-deductible executive compensation | 1.6 |  |  | 2.0 |  |  | 0.9 |
Permanent adjustments related to employee share based compensation | (4.6) |  |  | (5.1) |  |  | (3.8) |
Deferred tax on future cash dividends | 1.0 |  |  | 0.6 |  |  | (0.9) |
Other Permanent adjustments and non-deductible expenses | 1.0 |  |  | (0.6) |  |  | (6.7) |
Other | 0.2 |  |  | (0.3) |  |  | 0.3 |
Income tax provision | $ | (45.5) |  |  | $ | 17.0 |  |  | $ | 27.1 |
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) | January 2, 2021 |  | December 28, 2019
Deferred income tax assets: |  |  |
Accounts receivable and inventory valuation allowances | $ | 3.5 |  |  | $ | 5.7 |
Deferred compensation accruals | 4.5 |  |  | 4.0 |
Accrued pension expense | 33.4 |  |  | 25.3 |
Stock-based compensation | 9.1 |  |  | 14.5 |
Net operating loss and foreign tax credit carryforwards | 21.0 |  |  | 17.6 |
Book over tax depreciation and amortization | 0.4 |  |  | 0.5 |
Tenant lease expenses | 4.4 |  |  | 3.6 |
Environmental reserve | 24.9 |  |  | 15.4 |
Other | 9.1 |  |  | 5.1 |
Total gross deferred income tax assets | 110.3 |  |  | 91.7 |
Less valuation allowance | (22.3) |  |  | (17.6) |
Net deferred income tax assets | 88.0 |  |  | 74.1 |
Deferred income tax liabilities: |  |  |
Intangible assets | (105.3) |  |  | (157.5) |
Tax over book depreciation and amortization | (10.7) |  |  | (8.6) |
Other | (4.3) |  |  | (4.1) |
Total deferred income tax liabilities | (120.3) |  |  | (170.2) |
Net deferred income tax liabilities | $ | (32.3) |  |  | $ | (96.1) |
Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s unrecognized tax benefits:
| Fiscal Year
(In millions) | 2020 |  | 2019
Unrecognized tax benefits at beginning of the year | $ | 6.9 |  |  | $ | 7.9 |
Increases related to current year tax positions | 2.6 |  |  | 1.6 |
Decreases related to prior year positions | (1.3) |  |  | (1.4) |
Decreases relating to settlements with taxing authorities | (2.4) |  |  | (1.2) |
Decrease due to lapse of statute | (0.3) |  |  | — |
Unrecognized tax benefits at end of the year | $ | 5.5 |  |  | $ | 6.9 |

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