XML 68 R22.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Note 14 - Income Taxes | 12 Months Ended
--- | ---
Dec. 30, 2012
Income Tax Disclosure [Text Block] | 14. Income Taxes Earnings from continuing operations before taxes for the years 2012, 2011 and 2010 were taxed under the following jurisdictions:
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (in million of dollars) |
Domestic |  | $ | 56.3 |  |  | $ | 36.7 |  |  | $ | 27.3 |
Foreign |  |  | 12.5 |  |  |  | 20.9 |  |  |  | 5.4 |
Total |  | $ | 68.8 |  |  | $ | 57.6 |  |  | $ | 32.7 |
The provision for income taxes from continuing operations was as follows:
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (in millions of dollars) |
Current tax expense: |  |  |  |  |  |  |  |  |
U.S. federal |  | $ | 1.4 |  |  | $ | 5.2 |  |  | $ | 6.2 |
U.S. state and local |  |  | 3.0 |  |  |  | 1.8 |  |  |  | 0.6 |
Foreign |  |  | 10.0 |  |  |  | 13.0 |  |  |  | 9.1 |
Total current |  |  | 14.4 |  |  |  | 20.0 |  |  |  | 15.9 |
Deferred tax expense: |  |  |  |  |  |  |  |  |  |  |  |
U.S. federal |  |  | 4.7 |  |  |  | (33.3 | ) |  |  | (11.3 | )
U.S. state and local |  |  | 0.9 |  |  |  | 1.1 |  |  |  | (0.3 | )
Foreign |  |  | (0.9 | ) |  |  | 4.9 |  |  |  | 2.3 |
Total deferred |  |  | 4.7 |  |  |  | (27.3 | ) |  |  | (9.3 | )
Total provision |  | $ | 19.1 |  |  | $ | (7.3 | ) |  | $ | 6.6 |
Deferred taxes are comprised of the following:
|  | 2012 |  |  | 2011 |
|  | (in millions of dollars) |
Depreciation and amortization |  | $ | (8.9 | ) |  | $ | (10.4 | )
Employee compensation and benefit plans |  |  | 57.5 |  |  |  | 48.4 |
Workers' compensation |  |  | 23.7 |  |  |  | 26.7 |
Unrealized loss on securities |  |  | 2.3 |  |  |  | 8.3 |
Loss carryforwards |  |  | 50.2 |  |  |  | 53.5 |
Credit carryforwards |  |  | 60.5 |  |  |  | 68.6 |
Other, net |  |  | (3.6 | ) |  |  | (1.4 | )
Valuation allowance |  |  | (58.4 | ) |  |  | (65.4 | )
Net deferred tax assets |  | $ | 123.3 |  |  | $ | 128.3 |
The deferred tax balance is classified in the consolidated balance sheet as:
|  | 2012 |  |  | 2011 |
|  | (in millions of dollars) |
Current assets, deferred tax |  | $ | 44.9 |  |  | $ | 38.2 |
Noncurrent deferred tax asset |  |  | 82.8 |  |  |  | 94.1 |
Current liabilities, income and other taxes |  |  | (3.3 | ) |  |  | (1.8 | )
Noncurrent liabilities, other long-term liabilities |  |  | (1.1 | ) |  |  | (2.2 | )
|  | $ | 123.3 |  |  | $ | 128.3 |
The differences between income taxes from continuing operations for financial reporting purposes and the U.S. statutory rate of 35% are as follows:
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (in millions of dollars) |
Income tax based on statutory rate |  | $ | 24.1 |  |  | $ | 20.2 |  |  | $ | 11.4 |
State income taxes, net of federal benefit |  |  | 2.6 |  |  |  | 1.9 |  |  |  | 0.2 |
General business credits |  |  | (7.9 | ) |  |  | (28.5 | ) |  |  | (11.7 | )
Life insurance cash surrender value |  |  | (3.4 | ) |  |  | 0.9 |  |  |  | (3.3 | )
Foreign items |  |  | 1.6 |  |  |  | (0.5 | ) |  |  | 1.7 |
Foreign business taxes |  |  | 4.5 |  |  |  | 4.7 |  |  |  | 4.5 |
Worthless stock |  |  | - |  |  |  | (7.7 | ) |  |  | (0.9 | )
Non-deductible compensation |  |  | 1.2 |  |  |  | 1.5 |  |  |  | 1.1 |
Change in deferred tax realizability |  |  | (0.7 | ) |  |  | (0.6 | ) |  |  | 3.0 |
Uncertain tax positions |  |  | (4.8 | ) |  |  | (0.7 | ) |  |  | 0.2 |
Other, net |  |  | 1.9 |  |  |  | 1.5 |  |  |  | 0.4 |
Total |  | $ | 19.1 |  |  | $ | (7.3 | ) |  | $ | 6.6 |
General business credits primarily represent U.S. work opportunity credits and, in 2011 only, HIRE Act retention credits of $11.3 million. In 2012 the work opportunity credit was available only for veterans and pre-2012 hires. The full credit was retroactively reinstated on January 2, 2013, resulting in a first quarter 2013 tax benefit of $9.3 million that would have been recognized in 2012 if the law had been in effect during that time. Foreign business taxes include the French business tax and other taxes based on revenue less certain expenses and are classified as income taxes under ASC Topic 740 (“ASC 740”), Income Taxes. The Company closed income tax examinations in 2012, resulting in a $5.1 million benefit. The Company has U.S. general business credit carryforwards of $59.3 million which will expire from 2030 to 2032 and foreign tax credit carryforwards of $1.2 million which will expire from 2019 to 2022. The net tax effect of state and foreign loss carryforwards at year-end 2012 totaled $50.2 million, which expire as follows (in millions of dollars):
Year |  | Amount |
2013 - 2015 |  | $ | 0.9 |
2016 - 2018 |  |  | 3.3 |
2019 - 2022 |  |  | 2.5 |
2023 - 2027 |  |  | 0.2 |
2028 - 2032 |  |  | 0.9 |
No expiration |  |  | 42.4 |
Total |  | $ | 50.2 |
The Company has established a valuation allowance for loss carryforwards and future deductible items in certain foreign jurisdictions. The valuation allowance is determined in accordance with the provisions of ASC 740, which requires an assessment of both negative and positive evidence when measuring the need for a valuation allowance. The Company’s foreign losses in recent periods in these jurisdictions represented sufficient negative evidence to require a valuation allowance under ASC 740. The Company intends to maintain a valuation allowance until sufficient positive evidence exists to support realization of the foreign deferred tax assets. Provision has not been made for U.S. or additional foreign income taxes on an estimated $70.7 million of undistributed earnings of foreign subsidiaries, which are permanently reinvested. If these earnings were to be repatriated, the Company would be subject to additional U.S. income taxes, adjusted for foreign credits. It is not practicable to determine the income tax liability that might be incurred if these earnings were repatriated. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (in millions of dollars) |
Balance at beginning of the year |  | $ | 7.8 |  |  | $ | 8.5 |  |  | $ | 8.9 |
Additions for prior years' tax positions |  |  | 0.4 |  |  |  | 0.2 |  |  |  | 0.1 |
Reductions for prior years' tax positions |  |  | (5.3 | ) |  |  | (0.8 | ) |  |  | (0.3 | )
Additions for settlements |  |  | - |  |  |  | 0.2 |  |  |  | - |
Reductions for settlements |  |  | - |  |  |  | (0.2 | ) |  |  | - |
Reductions for expiration of statutes |  |  | - |  |  |  | (0.1 | ) |  |  | (0.2 | )
Balance at end of the year |  | $ | 2.9 |  |  | $ | 7.8 |  |  | $ | 8.5 |
If the $2.9 million in 2012, $7.8 million in 2011 and $8.5 million in 2010 of unrecognized tax benefits were recognized, they would have a favorable effect of $1.9 million in 2012, $6.7 million in 2011 and $7.3 million in 2010 on income tax expense. The Company recognizes both interest and penalties as part of the income tax provision. The Company recognized a benefit of $0.3 million in 2012 and expense of $0.1 million in 2011 and 2010 for interest and penalties. Accrued interest and penalties were $0.2 million at year-end 2012 and $0.5 million at year-end 2011. The Company files income tax returns in the U.S. and in various states and foreign countries. The tax periods open to examination by the major taxing jurisdictions to which the Company is subject include the U.S. for fiscal years 2007 through 2012, Canada for fiscal years 2007 through 2012 and France for fiscal years 2010 through 2012. The Company and its subsidiaries have various income tax returns in the process of examination or administrative appeals. The unrecognized tax benefit and related interest and penalty balances include approximately $0.6 million for 2012 related to tax positions which are reasonably possible to change within the next twelve months due to income tax audits, settlements and statute expirations.

X
- 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 Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: 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=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: 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 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: 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 Reference 7: 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 8: 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 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration