Income Taxes (Tables)

12 Months Ended

Dec. 29, 2017

Income Tax Disclosure [Abstract]

Provision for (Benefit from) Income Taxes

The provision for income taxes consisted of the following (U.S. dollars in millions):

	Year ended
	December 29, 2017			December 30, 2016			January 1, 2016
Current:
U.S. federal income tax	$	8.4		$	7.6		$	4.7
State	1.5			1.4			0.5
Non-U.S.	13.4			11.0			7.6
	23.3			20.0			12.8
Deferred:
U.S. federal income tax	2.1			(3.3		)	1.6
State	0.5			(0.6		)	0.3
Non-U.S.	(1.0		)	(4.3		)	(1.0		)
	1.6			(8.2		)	0.9
	$	24.9		$	11.8		$	13.7

Schedule of Income Before Income Tax, Domestic and Foreign

Income (loss) before income taxes consisted of the following (U.S. dollars in millions):

	Year ended
	December 29, 2017		December 30, 2016		January 1, 2016
U.S.	$	31.1	$	16.0	$	(49.4	)
Non-U.S.	113.0		221.4		129.5
	$	144.1	$	237.4	$	80.1

Differences Between Reported Provision for (Benefit from) Income Taxes and Income Taxes Computed at U.S. Statutory Federal Income Tax Rate

The differences between the reported provision for income taxes and income taxes computed at the U.S. statutory federal income tax rate are explained in the following reconciliation (U.S. dollars in millions):

	Year ended
	December 29, 2017			December 30, 2016			January 1, 2016
Income tax provision (benefit) computed at the U.S. statutory federal rate	$	50.4		$	83.1		$	28.0
Effect of tax rates on non-U.S. operations	(67.4		)	(98.8		)	(112.9		)
Provision for uncertain tax positions	0.7			(0.5		)	0.6
Non-deductible interest	2.4			2.0			—
Foreign exchange	2.3			15.1			(17.2		)
Non-deductible intercompany charges	—			1.2			(0.3		)
Non-deductible differences	6.0			1.7			0.6
Non-taxable income/loss	0.3			11.8			(2.2		)
Non-deductible goodwill impairment	—			0.4			23.1
Adjustment to deferred balances	0.1			—			(1.2		)
Other	(0.9		)	0.9			(0.4		)
Other taxes in lieu of income	1.8			1.9			1.3
Change in deferred rate	11.7			(3.4		)	1.4
Increase (decrease) in valuation allowance (1)	17.5			(3.6		)	92.9
Provision for income taxes	$	24.9		$	11.8		$	13.7

_____________

⁽¹⁾ The increase in valuation allowance includes effects of foreign exchange and adjustments to deferred tax balances which were fully offset by valuation allowance.

Deferred Income Tax Assets and Liabilities

Deferred income tax assets and liabilities consisted of the following (U.S. dollars in millions):

		December 29,			December 30,
Deferred tax liabilities:		2017			2016
	Allowances and other accrued liabilities	$	—		$	(2.1	)
	Inventories	(15.3		)	(14.8		)
	Property, plant and equipment	(63.2		)	(63.9		)
	Equity in earnings of unconsolidated companies	(0.1		)	(0.2		)
	Pension obligations	(2.1		)	(2.6		)
	Other noncurrent deferred tax liabilities	(5.6		)	(8.1		)
Total noncurrent deferred tax liabilities		$	(86.3	)	$	(91.7	)
Deferred tax assets:
	Allowances and other accrued assets	$	10.6		$	12.8
	Inventories	5.3			7.1
	Pension obligations	24.9			22.9
	Property, plant and equipment	1.5			1.6
	Post-retirement benefits other than pension	1.1			1.1
	Net operating loss carryforwards	249.7			225.5
	Capital loss carryover	2.6			2.4
	Other noncurrent assets	20.5			24.9
	Total noncurrent deferred tax assets	316.2			298.3
	Valuation allowance	(257.1		)	(232.1		)
Total deferred tax assets, net		$	59.1		$	66.2
Net deferred tax liabilities		$	(27.2	)	$	(25.5	)

Federal and Foreign Tax Operating Loss Carry-Forwards Expiring

At December 29, 2017, we had approximately $918.8 million of federal and foreign tax operating loss carryforwards expiring as follows (U.S. dollars in millions):

Expires:
2018	$	3.4
2019	4.4
2020	16.5
2021	12.8
2022 and beyond	13.9
No expiration	867.8
	$	918.8

Reconciliation of Beginning and Ending Amount of Uncertain Tax Positions Excluding Interest and Penalties

A reconciliation of the beginning and ending amount of uncertain tax positions excluding interest and penalties is as follows (U.S. dollars in millions):

	December 29, 2017			December 30, 2016			January 1, 2016
Beginning balance	$	3.2		$	3.9		$	3.5
Gross decreases - tax position in prior period	—			—			—
Gross increases - current-period tax positions	0.1			0.1			0.8
Settlements	—			—			—
Lapse of statute of limitations	(0.1		)	(0.8		)	(0.4		)
Ending balance	$	3.2		$	3.2		$	3.9