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Income Taxes (Tables) | 12 Months Ended
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Jan. 01, 2017
Income Tax Disclosure [Abstract] |
Earnings (Loss) From Continuing Operations Before Taxes Per Jurisdiction | Earnings before taxes and equity in net earnings (loss) of affiliate for the years 2016, 2015 and 2014 were taxed under the following jurisdictions:
| 2016 |  | 2015 |  | 2014
| (In millions of dollars)
Domestic | $ | 112.4 |  |  | $ | 28.9 |  |  | $ | 5.9 |
Foreign | 37.3 |  |  | 34.3 |  |  | 13.2 |
Total | $ | 149.7 |  |  | $ | 63.2 |  |  | $ | 19.1 |
Provision for Income Taxes From Continuing Operations | The provision for income taxes was as follows:
| 2016 |  | 2015 |  | 2014
| (In millions of dollars)
Current tax expense: |  |  |  |  |
U.S. federal | $ | 10.2 |  |  | $ | 8.3 |  |  | $ | 5.6 |
U.S. state and local | 2.4 |  |  | 1.4 |  |  | 1.4 |
Foreign | 10.0 |  |  | 10.8 |  |  | 12.7 |
Total current | 22.6 |  |  | 20.5 |  |  | 19.7 |
Deferred tax expense: |  |  |  |  |
U.S. federal | 11.8 |  |  | (10.6 | ) |  | (22.0 | )
U.S. state and local | 2.0 |  |  | 0.8 |  |  | (0.4 | )
Foreign | (6.4 | ) |  | (2.0 | ) |  | (4.4 | )
Total deferred | 7.4 |  |  | (11.8 | ) |  | (26.8 | )
Total provision | $ | 30.0 |  |  | $ | 8.7 |  |  | $ | (7.1 | )
Deferred Taxes | Deferred taxes are comprised of the following:
| 2016 |  | 2015
| (In millions of dollars)
Depreciation and amortization | $ | (14.6 | ) |  | $ | (14.3 | )
Employee compensation and benefit plans | 75.5 |  |  | 70.6 |
Workers’ compensation | 22.4 |  |  | 21.4 |
Unrealized gain on securities | (33.6 | ) |  | (36.7 | )
Investment in equity affiliate | (22.7 | ) |  | 4.0 |
Loss carryforwards | 36.4 |  |  | 40.6 |
Credit carryforwards | 121.2 |  |  | 113.4 |
Other, net | 3.5 |  |  | 4.1 |
Valuation allowance | (42.1 | ) |  | (50.9 | )
Net deferred tax assets | $ | 146.0 |  |  | $ | 152.2 |
The deferred tax balance is classified in the consolidated balance sheet as:
| 2016 |  | 2015
| (In millions of dollars)
Deferred tax asset | $ | 180.1 |  |  | $ | 189.3 |
Other long-term liabilities | (34.1 | ) |  | (37.1 | )
| $ | 146.0 |  |  | $ | 152.2 |
Differences Between Income Taxes From Continuing Operations and U.S. Statutory Rate | The differences between income taxes from continuing operations for financial reporting purposes and the U.S. statutory rate of 35% are as follows:
| 2016 |  | 2015 |  | 2014
| (In millions of dollars)
Income tax based on statutory rate | $ | 52.4 |  |  | $ | 22.1 |  |  | $ | 6.7 |
State income taxes, net of federal benefit | 2.9 |  |  | 1.3 |  |  | 0.7 |
General business credits | (17.0 | ) |  | (17.9 | ) |  | (17.5 | )
Life insurance cash surrender value | (3.0 | ) |  | 0.3 |  |  | (2.2 | )
Foreign items | 0.4 |  |  | (2.5 | ) |  | (1.1 | )
Foreign business taxes | 3.6 |  |  | 3.7 |  |  | 4.2 |
Foreign tax law change | — |  |  | (0.7 | ) |  | (2.2 | )
TS Kelly Asia Pacific transaction gain | (4.8 | ) |  | — |  |  | — |
Non-deductible expenses | 1.6 |  |  | 2.3 |  |  | 2.1 |
Change in deferred tax realizability | (5.9 | ) |  | — |  |  | 2.2 |
Other, net | (0.2 | ) |  | 0.1 |  |  | — |
Total | $ | 30.0 |  |  | $ | 8.7 |  |  | $ | (7.1 | )
Net Tax Effect of State and Foreign Loss Carryforwards | The net tax effect of state and foreign loss carryforwards at year-end 2016 totaled $36.4 million, which expire as follows (in millions of dollars):
Year |  | Amount
2017-2019 |  | $ | 1.9 |
2020-2022 |  | 0.7 |
2023-2026 |  | 0.2 |
2027-2029 |  | 0.1 |
No expiration |  | 33.5 |
Total |  | $ | 36.4 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| 2016 |  | 2015 |  | 2014
| (In millions of dollars)
Balance at beginning of the year | $ | 1.7 |  |  | $ | 2.4 |  |  | $ | 2.8 |
Additions for prior years’ tax positions | 0.1 |  |  | 0.1 |  |  | — |
Reductions for prior years’ tax positions | — |  |  | (0.7 | ) |  | (0.4 | )
Additions for settlements | — |  |  | — |  |  | — |
Reductions for settlements | — |  |  | — |  |  | — |
Reductions for expiration of statutes | (0.4 | ) |  | (0.1 | ) |  | — |
Balance at end of the year | $ | 1.4 |  |  | $ | 1.7 |  |  | $ | 2.4 |

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