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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Text Block [Abstract]

Provision for Income Tax Computed by Applying U.S. Statutory Rate to Income Before Taxes as Reconciled to Actual Provisions

The provision for income tax expense (benefit) computed by applying the U.S. statutory rate to income (loss) from continuing operations before income tax expense as reconciled to the actual provisions were: 

			Years Ended
			December 31, 2022						January 1, 2022						January 2, 2021
Income (loss) from continuing operations before income tax expense:
Domestic			(45.0)		%				(3.3)		%				445.1		%
Foreign			145.0						103.3						(345.1)
			100.0		%				100.0		%				100.0		%
Tax expense at U.S. statutory rate			21.0		%				21.0		%				21.0		%
State income tax			(1.6)						(0.7)						17.0
Tax on actual and planned remittances of foreign earnings			(1.6)						1.5						5.4
Tax on foreign earnings due to U.S. tax reform including measurement period adjustments (1)			—						(0.3)						26.9
Tax on foreign earnings (U.S. tax reform - GILTI and FDII)			3.8						1.7						(2.3)
Foreign taxes less than U.S. statutory rate			(14.0)						(12.3)						39.0
Statutory stock deduction and other foreign adjustments(2)			22.5						—						(34.5)
Employee benefits			1.0						0.3						(2.2)
Changes in valuation allowance			101.1						1.9						(14.2)
Release of unrecognized tax benefit reserves			(1.1)						(0.9)						13.2
State tax rate change			3.1						1.0						0.3
Tax provision adjustments and revisions to prior years' returns			3.6						(1.6)						(1.0)
Nondeductible expenses and tax exempt income, net			(1.2)						(0.4)						10.2
Nondeductible impairment charges			—						—						(3.7)
Domestic income tax credits			(0.7)						(0.4)						2.3
Other, net			1.3						(0.5)						(0.1)
Taxes at effective worldwide tax rates			137.2		%				10.3		%				77.3		%

(1)In 2020, the Company continued to analyze the impacts of the Tax Cuts and Jobs Act (the “Tax Act”) and recently issued regulations that have been published to help taxpayers interpret and apply the legislation. As a result of its analysis, the Company changed its estimate of the tax liability due in connection with the one-time mandatory transition tax and recognized a $4,668 income tax benefit in 2021 and a $38,315 income tax benefit in 2020.

(2)During the year ending January 2, 2021, the Company recorded $49,082 of tax expense due to recapture of previous net operating losses created by statutory impairment. This amount is offset in the change in valuation allowance section of the rate reconciliation. During the year ending December 31, 2022, the Company recorded a deferred tax liability related to tax impairments of subsidiary stock in Switzerland which created a net operating loss carryforward. Pursuant to Swiss tax law, the loss created is subject to recapture for which a deferred tax liability was recorded in excess of the deferred tax asset.

Current and Deferred Tax Provisions (Benefits)

Current and deferred tax provisions (benefits) were:

			Current						Deferred						Total
Year ended December 31, 2022
Domestic			$	15,188					$	201,112					$	216,300
Foreign			83,607						95,558						179,165
State			(2,712)						91,154						88,442
			$	96,083					$	387,824					$	483,907
Year ended January 1, 2022
Domestic			$	(15,176)					$	6,934					$	(8,242)
Foreign			66,844						1,421						68,265
State			(2,948)						3,032						84
			$	48,720					$	11,387					$	60,107
Year ended January 2, 2021
Domestic			$	(7,770)					$	(136,221)					$	(143,991)
Foreign			46,701						34,066						80,767
State			6,256						(52,972)						(46,716)
			$	45,187					$	(155,127)					$	(109,940)

Cash Payments For Income Taxes

			Years Ended
			December 31, 2022						January 1, 2022						January 2, 2021
Cash payments for income taxes			$	95,331					$	95,011					$	107,577

Deferred Tax Assets and Liabilities

The deferred tax assets and liabilities at the respective year-ends were as follows:

			December 31, 2022						January 1, 2022
Deferred tax assets:
Inventories			$	92,347					$	64,425
Bad debt allowance			15,854						15,605
Accrued expenses			15,492						20,863
Employee benefits			55,687						104,845
Tax credits			10,859						4,804
Net operating loss and other tax carryforwards			562,326						410,921
Leasing			112,619						112,423
Property and equipment			6,094						4,707
Section 163(j)			50,695						46,729
Capitalized research costs			17,501						5,873
Other			1,029						—
Gross deferred tax assets			940,503						791,195
Less valuation allowances			(626,540)						(306,221)
Deferred tax assets			313,963						484,974
Deferred tax liabilities:
Derivatives			13,781						10,303
Section 481(a) liability			—						23,881
Leasing			101,558						99,470
Accrued tax on unremitted foreign earnings			26,128						38,812
Intangibles			41,331						43,917
Other			—						392
Statutory impairment			247,360						—
Prepaids			877						434
Deferred tax liabilities			431,035						217,209
Net deferred tax assets (liabilities)			$	(117,072)					$	267,765

Summary of Changes in Valuation Allowance

The changes in the Company’s valuation allowance for deferred tax assets are as follows:

December 28, 2019			$	188,554
Charged to income tax expense			14,959
Charged to other accounts(1)			1,341
January 2, 2021			$	204,854
Charged to income tax expense			4,343
Charged to other accounts(1)			97,024
January 1, 2022			$	306,221
Charged to income tax expense			356,740
Charged to other accounts(1)			(36,421)
December 31, 2022			$	626,540

(1)Charges to other accounts include the effects of foreign currency translation, purchase accounting adjustments and changes to valuation allowances as a result of intraperiod tax allocations.

Net Operating Loss Carryforwards

At December 31, 2022, the Company had gross foreign net operating loss carryforwards of approximately $1,912,611 (on a tax return basis) which are subject to expiration as follows:

Fiscal Year:
2023			$	6,055
2024			3,921
2025			6,076
2026			2,320
2027			4,168
Thereafter			1,890,071

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

Balance at December 28, 2019 (gross balance of $78,789)			$	74,385
Additions based on tax positions related to the current year			3,675
Additions based on tax positions of prior years			2,666
Settlements			—
Lapse of statute of limitations			(16,655)
Reductions for tax positions of prior years			(18,385)
Balance at January 2, 2021 (gross balance of $46,645)			$	45,686
Additions based on tax positions related to the current year			3,231
Additions based on tax positions of prior years			3,401
Settlements			—
Lapse of statute of limitations			(147)
Reductions for tax positions of prior years			(12,599)
Balance at January 1, 2022 (gross balance of $40,706)			$	39,572
Adjustments related to prior year ending balance			1,138
Additions based on tax positions related to the current year			2,857
Additions based on tax positions of prior years			798
Settlements			—
Lapse of statute of limitations			(7,191)
Reductions for tax positions of prior years			(311)
Balance at December 31, 2022 (gross balance of $37,818)			$	36,863

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- Definition

The tabular disclosure of the amount of cash paid during the current period to foreign, federal, state, and local authorities as taxes on income, net of any cash received during the current period as refunds for the overpayment of taxes

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Schedule of income before income tax and effective income tax rate reconciliation.

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months.

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Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance.

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