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Income Taxes (Tables) | 12 Months Ended
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Jan. 01, 2023
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 2022, 2021 and 2020 were taxed under the following jurisdictions:
| 2022 |  | 2021 |  | 2020
| (In millions of dollars)
Domestic | $ | (39.4) |  |  | $ | 27.5 |  |  | $ | (86.7) |
Foreign | (31.8) |  |  | 158.3 |  |  | (20.1) |
Total | $ | (71.2) |  |  | $ | 185.8 |  |  | $ | (106.8) |
Provision for Income Taxes From Continuing Operations | The provision for income taxes was as follows:
| 2022 |  | 2021 |  | 2020
| (In millions of dollars)
Current tax expense: |  |  |  |  |
U.S. federal | $ | 1.3 |  |  | $ | 1.0 |  |  | $ | 6.6 |
U.S. state and local | 1.4 |  |  | 2.1 |  |  | 5.9 |
Foreign | 61.5 |  |  | 10.4 |  |  | 10.6 |
Total current | 64.2 |  |  | 13.5 |  |  | 23.1 |
Deferred tax (benefit) expense: |  |  |  |  |
U.S. federal | (2.5) |  |  | (11.9) |  |  | (35.8) |
U.S. state and local | 0.7 |  |  | (0.7) |  |  | (12.3) |
Foreign | (70.3) |  |  | 34.2 |  |  | (9.0) |
Total deferred | (72.1) |  |  | 21.6 |  |  | (57.1) |
Total provision | $ | (7.9) |  |  | $ | 35.1 |  |  | $ | (34.0) |
Deferred Taxes | The deferred tax assets and liabilities are comprised of the following:
| 2022 |  | 2021
| (In millions of dollars)
Fixed assets and right-of-use assets | $ | (21.8) |  |  | $ | (25.8) |
Intangible assets and goodwill | 20.7 |  |  | 16.3 |
Employee compensation and benefit plans | 62.0 |  |  | 70.4 |
Accrued payroll and related taxes | — |  |  | 22.1 |
Accrued workers’ compensation | 10.2 |  |  | 11.7 |
Investment in Persol Holdings | — |  |  | (70.9) |
Investment in equity affiliate | (0.7) |  |  | (13.3) |
Operating lease liabilities | 19.3 |  |  | 21.8 |
Loss carryforwards | 33.4 |  |  | 36.4 |
Credit carryforwards | 200.7 |  |  | 175.0 |
Other, net | 9.4 |  |  | 6.5 |
Valuation allowance | (34.0) |  |  | (19.0) |
Net deferred tax assets | $ | 299.2 |  |  | $ | 231.2 |
The deferred tax balance is classified in the consolidated balance sheet as:
| 2022 |  | 2021
| (In millions of dollars)
Deferred tax asset | $ | 299.7 |  |  | $ | 302.8 |
Other long-term liabilities | (0.5) |  |  | (71.6) |
| $ | 299.2 |  |  | $ | 231.2 |
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 21% in 2022, 2021, and 2020 are as follows:
| 2022 |  | 2021 |  | 2020
| (In millions of dollars)
Income tax based on statutory rate | $ | (14.9) |  |  | $ | 39.0 |  |  | $ | (22.4) |
State income taxes, net of federal benefit | 1.6 |  |  | 1.1 |  |  | (5.1) |
Foreign tax rate differential | 1.6 |  |  | 12.2 |  |  | 2.8 |
General business credits | (10.7) |  |  | (9.7) |  |  | (9.9) |
Life insurance cash surrender value | 7.8 |  |  | (5.2) |  |  | (4.6) |
Foreign items | 0.2 |  |  | 1.7 |  |  | (1.8) |
Sale of foreign subsidiaries | 3.9 |  |  | — |  |  | (6.6) |
Foreign business taxes | 1.8 |  |  | 2.1 |  |  | 3.0 |
Tax law change | — |  |  | (5.2) |  |  | (1.7) |
Non-deductible goodwill impairment | 2.7 |  |  | — |  |  | 11.9 |
Other | (1.9) |  |  | (0.9) |  |  | 0.4 |
Total | $ | (7.9) |  |  | $ | 35.1 |  |  | $ | (34.0) |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| 2022 |  | 2021 |  | 2020
| (In millions of dollars)
Balance at beginning of the year | $ | 0.6 |  |  | $ | 0.5 |  |  | $ | 0.9 |
Additions for prior years’ tax positions | — |  |  | 0.2 |  |  | — |
Reductions for prior years’ tax positions | — |  |  | — |  |  | — |
Additions for settlements | — |  |  | — |  |  | — |
Reductions for settlements | — |  |  | — |  |  | — |
Reductions for expiration of statutes | (0.1) |  |  | (0.1) |  |  | (0.4) |
Balance at end of the year | $ | 0.5 |  |  | $ | 0.6 |  |  | $ | 0.5 |

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