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Income Taxes (Tables)

12 Months Ended

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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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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