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Income Taxes (Tables) | 12 Months Ended
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Jan. 03, 2021
Income Tax Disclosure [Abstract] |
Earnings (Loss) From Continuing Operations Before Taxes Per Jurisdiction | Earnings (loss) before taxes and equity in net earnings (loss) of affiliate for the years 2020, 2019 and 2018 were taxed under the following jurisdictions:
| 2020 |  | 2019 |  | 2018
| (In millions of dollars)
Domestic | $ | (84.7) |  |  | $ | 46.6 |  |  | $ | 53.1 |
Foreign | (22.1) |  |  | 69.8 |  |  | (62.5) |
Total | $ | (106.8) |  |  | $ | 116.4 |  |  | $ | (9.4) |
Provision for Income Taxes From Continuing Operations | The provision for income taxes was as follows:
| 2020 |  | 2019 |  | 2018
| (In millions of dollars)
Current tax expense: |  |  |  |  |
U.S. federal | $ | 8.2 |  |  | $ | 4.7 |  |  | $ | 6.1 |
U.S. state and local | 5.9 |  |  | 3.0 |  |  | 3.1 |
Foreign | 9.0 |  |  | 11.0 |  |  | 11.2 |
Total current | 23.1 |  |  | 18.7 |  |  | 20.4 |
Deferred tax (benefit) expense: |  |  |  |  |
U.S. federal | (36.0) |  |  | (19.4) |  |  | (15.6) |
U.S. state and local | (12.3) |  |  | (1.6) |  |  | 1.0 |
Foreign | (8.8) |  |  | 2.7 |  |  | (32.9) |
Total deferred | (57.1) |  |  | (18.3) |  |  | (47.5) |
Total provision | $ | (34.0) |  |  | $ | 0.4 |  |  | $ | (27.1) |
Deferred Taxes | The deferred tax assets and liabilities are comprised of the following:
| 2020 |  | 2019
| (In millions of dollars)
Depreciation and amortization | $ | (10.5) |  |  | $ | (28.6) |
Employee compensation and benefit plans | 61.4 |  |  | 58.4 |
Accrued payroll and related taxes | 29.6 |  |  | — |
Accrued workers’ compensation | 13.4 |  |  | 14.8 |
Investment in Persol Holdings | (39.1) |  |  | (42.5) |
Investment in equity affiliate | (13.1) |  |  | (13.8) |
Operating lease liabilities | 21.7 |  |  | 15.7 |
Loss carryforwards | 33.6 |  |  | 30.4 |
Credit carryforwards | 161.2 |  |  | 167.1 |
Other, net | 4.3 |  |  | 3.5 |
Valuation allowance | (20.2) |  |  | (19.0) |
Net deferred tax assets | $ | 242.3 |  |  | $ | 186.0 |
The deferred tax balance is classified in the consolidated balance sheet as:
| 2020 |  | 2019
| (In millions of dollars)
Deferred tax asset | $ | 282.0 |  |  | $ | 229.1 |
Other long-term liabilities | (39.7) |  |  | (43.1) |
| $ | 242.3 |  |  | $ | 186.0 |
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 21% in 2020, 2019, and 2018 as follows:
| 2020 |  | 2019 |  | 2018
| (In millions of dollars)
Income tax based on statutory rate | $ | (22.4) |  |  | $ | 24.4 |  |  | $ | (2.0) |
State income taxes, net of federal benefit | (5.1) |  |  | 1.1 |  |  | 3.2 |
Foreign tax rate differential | 2.8 |  |  | 4.6 |  |  | (8.3) |
General business credits | (9.9) |  |  | (16.7) |  |  | (22.6) |
Life insurance cash surrender value | (4.6) |  |  | (6.5) |  |  | 2.1 |
Foreign items | (1.8) |  |  | 0.8 |  |  | 1.9 |
Sale of Brazil operations | (6.6) |  |  | — |  |  | — |
GILTI, net of foreign tax credit | (0.1) |  |  | 0.5 |  |  | 0.5 |
Foreign-derived intangible income | (0.7) |  |  | (0.9) |  |  | (0.9) |
Foreign business taxes | 3.0 |  |  | 3.8 |  |  | 4.2 |
Non-deductible expenses | 0.2 |  |  | 0.7 |  |  | 2.6 |
Tax law change | (1.7) |  |  | (0.2) |  |  | (0.5) |
Change in deferred tax realizability | 0.4 |  |  | (10.6) |  |  | (4.3) |
Stock compensation | 0.6 |  |  | (0.6) |  |  | (3.0) |
Non-deductible goodwill impairment | 11.9 |  |  | — |  |  | — |
Total | $ | (34.0) |  |  | $ | 0.4 |  |  | $ | (27.1) |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| 2020 |  | 2019 |  | 2018
| (In millions of dollars)
Balance at beginning of the year | $ | 0.9 |  |  | $ | 1.1 |  |  | $ | 1.2 |
Additions for prior years’ tax positions | — |  |  | — |  |  | — |
Reductions for prior years’ tax positions | — |  |  | — |  |  | — |
Additions for settlements | — |  |  | — |  |  | — |
Reductions for settlements | — |  |  | — |  |  | — |
Reductions for expiration of statutes | (0.4) |  |  | (0.2) |  |  | (0.1) |
Balance at end of the year | $ | 0.5 |  |  | $ | 0.9 |  |  | $ | 1.1 |

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