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Income Taxes (Tables) | 12 Months Ended
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Dec. 30, 2023
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) | 2023 |  | 2022 |  | 2021
United States | $ | (115.2) |  |  | $ | (94.6) |  |  | $ | 22.7 |
Foreign | (19.0) |  |  | (158.3) |  |  | 57.6 |
Earnings (loss) before income taxes | $ | (134.2) |  |  | $ | (252.9) |  |  | $ | 80.3 |
Provisions for Income Taxes | The provisions for income tax expense (benefit) consist of the following:
| Fiscal Year
(In millions) | 2023 |  | 2022 |  | 2021
Current expense: |  |  |  |  |
Federal | $ | (0.6) |  |  | $ | 22.7 |  |  | $ | 14.6 |
State | (1.7) |  |  | 4.0 |  |  | 2.5 |
Foreign | 1.3 |  |  | 28.2 |  |  | 15.0 |
Deferred expense (benefit): |  |  |  |  |
Federal | (88.5) |  |  | (52.9) |  |  | (17.1) |
State | 0.1 |  |  | (4.9) |  |  | (1.8) |
Foreign | (5.6) |  |  | (60.9) |  |  | 0.1 |
Income tax expense (benefit) | $ | (95.0) |  |  | $ | (63.8) |  |  | $ | 13.3 |
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) | 2023 |  | 2022 |  | 2021
Income taxes at U.S. statutory rate of 21% | $ | (28.2) |  |  | $ | (53.1) |  |  | $ | 16.9 |
State income taxes, net of federal income tax | (2.0) |  |  | (2.3) |  |  | (1.1) |
Foreign earnings taxed at rates different from the U.S. statutory rate: |  |  |  |  |
Hong Kong | (7.3) |  |  | (14.2) |  |  | (7.2) |
Italy | (2.5) |  |  | 0.3 |  |  | 1.1 |
United Kingdom | 2.3 |  |  | (1.1) |  |  | (0.5) |
Other | 3.9 |  |  | 2.9 |  |  | 2.5 |
Adjustments for uncertain tax positions | (1.3) |  |  | (0.9) |  |  | (1.3) |
Change in valuation allowance | 29.0 |  |  | 2.1 |  |  | 2.2 |
Tax impact of impairment in foreign jurisdiction | — |  |  | 3.0 |  |  | — |
Global Intangible Low Tax Income tax | 1.5 |  |  | 3.8 |  |  | 3.2 |
Foreign Derived Intangible Income tax benefit | — |  |  | (8.2) |  |  | (3.7) |
Non-deductible executive compensation | (0.8) |  |  | 3.3 |  |  | 5.2 |
Permanent adjustments related to employee share based compensation | 4.2 |  |  | 1.6 |  |  | (3.7) |
Deferred tax on future cash dividends | — |  |  | (0.2) |  |  | (0.9) |
Income tax audit adjustments | — |  |  | — |  |  | 2.5 |
Permanent adjustment related to goodwill divested | 4.3 |  |  | — |  |  | — |
Deferred adjustment for income tax audit | — |  |  | — |  |  | (1.2) |
Capital loss from sale of subsidiary | (95.7) |  |  | — |  |  | — |
Other Permanent adjustments and non-deductible expenses | (1.2) |  |  | (1.4) |  |  | (0.3) |
Other | (1.2) |  |  | 0.6 |  |  | (0.4) |
Income tax expense (benefit) | $ | (95.0) |  |  | $ | (63.8) |  |  | $ | 13.3 |
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 30, 2023 |  | December 31, 2022
Deferred income tax assets: |  |  |
Accounts receivable and inventory valuation allowances | $ | 16.0 |  |  | $ | 18.1 |
Deferred compensation accruals | 6.1 |  |  | 4.3 |
Accrued pension expense | 19.7 |  |  | 18.7 |
Stock-based compensation | 7.0 |  |  | 9.1 |
Net operating loss and foreign tax credit carryforwards | 56.6 |  |  | 19.9 |
Capital loss carryforwards | 60.4 |  |  | — |
Book over tax depreciation and amortization | 0.4 |  |  | 0.5 |
Tenant lease expenses | 10.6 |  |  | 4.3 |
Environmental reserve | 14.8 |  |  | 28.3 |
Intangible Assets | 1.3 |  |  | — |
Other | 8.3 |  |  | 6.5 |
Total gross deferred income tax assets | 201.2 |  |  | 109.7 |
Less valuation allowance | (55.6) |  |  | (26.7) |
Net deferred income tax assets | 145.6 |  |  | 83.0 |
Deferred income tax liabilities: |  |  |
Intangible assets | (48.9) |  |  | (76.2) |
Tax over book depreciation and amortization | (3.4) |  |  | (9.4) |
Other | (3.8) |  |  | (8.2) |
Total deferred income tax liabilities | (56.1) |  |  | (93.8) |
Net deferred income tax asset (liabilities) | $ | 89.5 |  |  | $ | (10.8) |
Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s unrecognized tax benefits:
| Fiscal Year
(In millions) | 2023 |  | 2022
Unrecognized tax benefits at beginning of the year | $ | 9.0 |  |  | $ | 10.9 |
Increases related to current year tax positions | 0.3 |  |  | 0.2 |
Decreases related to prior year positions | (5.1) |  |  | (1.1) |
Decreases relating to settlements with taxing authorities | (0.7) |  |  | (0.5) |
Decrease due to lapse of statute | (0.9) |  |  | (0.5) |
Unrecognized tax benefits at end of the year | $ | 2.6 |  |  | $ | 9.0 |

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