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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Significant components of the provision for income taxes, including those related to non-controlling interest, are as follows:
| 2022 |  | 2021 |  | 2020
Current: |  |  |  |  |
Federal | $ | 29.8 |  |  | $ | 14.1 |  |  | $ | 18.4 |
State | 8.3 |  |  | 4.0 |  |  | 6.0 |
Foreign | 0.3 |  |  | 0.8 |  |  | 0.1 |
Current provision | 38.5 |  |  | 18.8 |  |  | 24.5 |
Deferred: |  |  |  |  |
Federal | (13.1) |  |  | (0.7) |  |  | (9.1) |
State | (2.8) |  |  | 0.4 |  |  | (2.4) |
Foreign | 0.0 |  |  | (0.1) |  |  | (0.6) |
Deferred provision | (15.9) |  |  | (0.4) |  |  | (12.1) |
Total income tax expense | $ | 22.5 |  |  | $ | 18.5 |  |  | $ | 12.5 |
The differences between the actual tax expense and tax expense computed at the statutory United States federal tax rate are explained as follows:
| 2022 |  | 2021 |  | 2020
Federal statutory tax expense | $ | 30.7 |  |  | $ | 16.4 |  |  | $ | 11.4 |
State taxes, net of federal tax effect | 5.6 |  |  | 3.7 |  |  | 2.4 |
Credit for research activities | (4.2) |  |  | (4.0) |  |  | (3.9) |
Valuation allowance | (7.1) |  |  | (0.2) |  |  | 1.3 |
Goodwill impairment | — |  |  | 0.1 |  |  | 1.5 |
Executive compensation limitation | 1.4 |  |  | 1.2 |  |  | 0.5 |
Sale of foreign subsidiary | (4.2) |  |  | — |  |  | — |
Other – net | 0.3 |  |  | 1.2 |  |  | (0.7) |
Total income tax expense | $ | 22.5 |  |  | $ | 18.5 |  |  | $ | 12.5 |
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:
| December 31, 2022 |  | January 1, 2022
Deferred Taxes |  |  |
Allowance for doubtful accounts | $ | 0.7 |  |  | $ | 0.5 |
Compensation | 7.2 |  |  | 7.3 |
Inventory differences | 1.2 |  |  | 3.1 |
Stock-based compensation | 7.9 |  |  | 7.9 |
Accrued post-retirement benefit obligations | 4.4 |  |  | 5.7 |
Vacation accrual | 3.9 |  |  | 3.2 |
Warranty accrual | 4.2 |  |  | 4.4 |
Tax loss and tax credit carryforwards | 5.8 |  |  | 10.2 |
Capital loss carryforward | 0.1 |  |  | 2.1 |
Lease liability | 27.3 |  |  | 23.4 |
Payroll deferral | — |  |  | 2.1 |
Research and development capitalization | 16.3 |  |  | — |
Other | 2.6 |  |  | 8.0 |
Total deferred tax assets | $ | 81.7 |  |  | $ | 77.9 |
Deferred income | (5.6) |  |  | (5.0) |
Goodwill and other intangible assets | (48.1) |  |  | (49.7) |
Prepaid expenses | (6.6) |  |  | (6.5) |
Right of use asset | (24.7) |  |  | (23.1) |
Tax over book depreciation | (53.0) |  |  | (56.6) |
Total deferred tax liabilities | $ | (137.9) |  |  | $ | (141.0) |
Valuation allowance | (4.2) |  |  | (11.3) |
Total net deferred tax liabilities | $ | (60.4) |  |  | $ | (74.3) |
Long-term net deferred tax assets | 0.7 |  |  | 0.7 |
Long-term net deferred tax liabilities | (61.0) |  |  | (75.0) |
Total net deferred tax liabilities | $ | (60.4) |  |  | $ | (74.3) |
The valuation allowance, which primarily relates to foreign deferred tax assets, is as follows:
|  | Balance at beginning of period |  | Charged to expenses |  |  |  | Balance at end of period
Year ended December 31, 2022 |  | $ | 11.3 |  |  | $ | (7.1) |  |  |  |  | $ | 4.2 |
Year ended January 1, 2022 |  | $ | 11.5 |  |  | $ | (0.2) |  |  |  |  | $ | 11.3 |
Year ended January 2, 2021 |  | $ | 10.3 |  |  | $ | 1.3 |  |  |  |  | $ | 11.5 |
The current year net decrease in the valuation allowance of $7.1 million primarily relates to the sale of Lamex in July 2022. This transaction created tax benefits for valuation adjustments related to existing deferred tax assets, as well as basis differences. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| 2022 |  | 2021 |  |
Balance at beginning of period | $ | 2.2 |  |  | $ | 2.2 |  |  |
Increases in positions taken in a prior period | — |  |  | 0.1 |  |  |
New positions taken in a current period | 0.5 |  |  | 0.6 |  |  |
Decrease due to lapse of statute of limitations | (0.5) |  |  | (0.7) |  |  |
Balance at end of period | $ | 2.2 |  |  | $ | 2.2 |  |  |
As of December 31, 2022, 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 recognizes interest related to unrecognized tax benefits in interest expense, and penalties in operating expenses, consistent with the recognition of these items in prior reporting periods. The expenses and liabilities recorded for interest and penalties as of and for the years ended December 31, 2022 and January 1, 2022 are immaterial. Tax years 2019 through 2021 remain open for examination by the Internal Revenue Service ("IRS"). Tax years 2018 through 2021 remain open for examination in various state and foreign jurisdictions. The Corporation is not currently under federal examination. The Corporation is currently under examination in certain states in which the outcome is expected to be immaterial.

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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