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Income Taxes | 12 Months Ended
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Jan. 02, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Significant components of the provision for income taxes including those related to noncontrolling interest and discontinued operations are as follows:
(In thousands) | 2015 |  |  | 2014 |  |  | 2013 |
Current: |  |  |  |  |
Federal | $ | 27,768 |  |  | $ | 22,738 |  |  | $ | 12,077 |
State | 5,258 |  |  | 4,623 |  |  | 1,036 |
Foreign | 1,713 |  |  | 972 |  |  | 2,153 |
Current provision | 34,739 |  |  | 28,333 |  |  | 15,266 |
Deferred: |  |  |  |  |  |  |  |
Federal | 15,348 |  |  | 13,692 |  |  | 16,614 |
State | 2,217 |  |  | 2,013 |  |  | 2,558 |
Foreign | (540 | ) |  | (262 | ) |  | (1,100 | )
Deferred provision | 17,025 |  |  | 15,443 |  |  | 18,072 |
| $ | 51,764 |  |  | $ | 43,776 |  |  | $ | 33,338 |
The differences between the actual tax expense and tax expense computed at the statutory U.S. Federal tax rate are explained as follows:
| 2015 |  |  | 2014 |  |  | 2013 |
Federal statutory tax expense | $ | 55,020 |  |  | $ | 36,836 |  |  | $ | 33,957 |
State taxes, net of federal tax effect | 4,269 |  |  | 4,118 |  |  | 2,469 |
Credit for increasing research activities | (3,320 | ) |  | (2,569 | ) |  | (1,338 | )
Deduction related to domestic production activities | (3,320 | ) |  | (1,751 | ) |  | (1,396 | )
Valuation allowance | — |  |  | 2,474 |  |  | — |
Goodwill Impairment | — |  |  | 4,298 |  |  | — |
Change in uncertain tax positions | (1,344 | ) |  | 1,099 |  |  | 773 |
Other – net | 459 |  |  | (729 | ) |  | (1,127 | )
Total income tax expense | $ | 51,764 |  |  | $ | 43,776 |  |  | $ | 33,338 |
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Corporation’s deferred tax liabilities and assets are as follows:
(In thousands) | 2015 |  |  | 2014 |
Deferred Taxes |  |  |
Allowance for doubtful accounts | $ | 1,089 |  |  | $ | 1,240 |
Compensation | 15,491 |  |  | 16,817 |
Inventory differences | 4,497 |  |  | 5,691 |
Marketing accrual | 1,355 |  |  | 1,454 |
Stock-based compensation | 11,923 |  |  | 9,906 |
Accrued post-retirement benefit obligations | 6,682 |  |  | 6,341 |
OCI tax effected items | 3,169 |  |  | 3,887 |
Vacation accrual | 4,181 |  |  | 3,875 |
Warranty Accrual | 6,052 |  |  | 6,023 |
Other – net | 12,167 |  |  | 10,774 |
Total deferred tax assets | $ | 66,606 |  |  | $ | 66,008 |
Deferred income | (4,907 | ) |  | (4,836 | )
Goodwill | (79,471 | ) |  | (80,366 | )
Prepaids | (7,876 | ) |  | (7,724 | )
Tax over book depreciation | (59,308 | ) |  | (41,770 | )
Total deferred tax liabilities | $ | (151,562 | ) |  | $ | (134,696 | )
Valuation allowance | (3,978 | ) |  | (3,413 | )
Total net deferred tax liabilities | $ | (88,934 | ) |  | $ | (72,101 | )
Current net deferred tax assets | — |  |  | 17,310 |
Long term net deferred tax liabilities | (88,934 | ) |  | (89,411 | )
Total net deferred tax liabilities | $ | (88,934 | ) |  | $ | (72,101 | )
The valuation allowance for deferred tax assets is as follows:
Valuation allowance for deferred tax asset (in thousands) | Balance at beginning of period |  | Charged to expenses |  | Adjustments to balance sheet |  | Balance at end of period
Year ended January 2, 2016 | 3,413 |  |  | — |  |  | 565 |  |  | 3,978 |
Year ended January 3, 2015 | 1,579 |  |  | 2,474 |  |  | (640 | ) |  | 3,413 |
Year ended December 28, 2013 | 1,580 |  |  | — |  |  | (1 | ) |  | 1,579 |
At January 2, 2016, the Corporation has approximately $6.4 million of U.S. state tax net operating losses and $2.2 million of U.S. state tax credits which expire over the next twenty years. The Corporation has adopted ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes on a prospective basis for the fiscal year ended January 2, 2016. The new guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
(in thousands) | 2015 |  |  | 2014 |
Unrecognized tax benefits, beginning of period | $ | 4,250 |  |  | $ | 2,809 |
Increases in positions due to purchase accounting | — |  |  | 400 |
Increases in positions taken in a prior period | 82 |  |  | 406 |
Decreases in positions taken in a prior period | (1,611 | ) |  | (124 | )
New positions taken in a current period | 793 |  |  | 1,422 |
Decrease due to settlements | — |  |  | — |
Decrease due to lapse of statute of limitations | (656 | ) |  | (663 | )
Unrecognized tax benefits, end of period | $ | 2,858 |  |  | $ | 4,250 |
The amount of unrecognized tax benefits which would impact the Corporation’s effective tax rate, if recognized, was $2.8 million at January 2, 2016 and $4.2 million at January 3, 2015. As of January 2, 2016, it is reasonably possible the amount of unrecognized tax benefits may increase or decrease within the twelve months following the reporting date. These increases or decreases in the unrecognized tax benefits would be due to new positions that may be taken on income tax returns, settlement of tax positions and the closing of statutes of limitation. It is not expected any of the changes will be material individually or in total to the results or financial position of the Corporation. The Corporation recognized interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses consistent with the recognition of these items in prior reporting. Interest and penalties recognized in the Consolidated Statements of Income amounted to a benefit of $0.1 million, $0.0 million and $0.1 million in January 2, 2016, January 3, 2015 and December 28, 2013, respectively. The Corporation had recorded a liability for interest and penalties related to unrecognized tax benefits of $0.1 million and $0.2 million as of January 2, 2016 and January 3, 2015, respectively. Tax years 2012 through 2015 remain open for examination by the Internal Revenue Service ("IRS"). The Corporation is currently under examination in various state jurisdictions, of which years 2009 through 2014 remain open to examination. Deferred income taxes are provided to reflect differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The Corporation provides for taxes that may be payable if undistributed earnings of overseas subsidiaries were to be remitted to the United States, except for those earnings it considers to be permanently reinvested. There were approximately $33.9 million of accumulated earnings considered permanently reinvested in Canada, China, and Hong Kong as of January 2, 2016. The Corporation believes the U.S tax cost on unremitted foreign earnings would be approximately $10.3 million if the amounts were not considered permanently reinvested.

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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