Income Taxes (Tables)

12 Months Ended

Jan. 02, 2022

Income Tax Disclosure [Abstract]

Components of Income Tax Provision (Benefit)

Income tax provision/(benefit) - (in millions):	2021		2020		2019
Current
Federal	$	43.0	$	25.3	$	66.0
State	10.8		7.0		10.6
Foreign	57.5		39.1		28.4
Total current	111.3		71.4		105.0
Deferred
Federal	(39.7)		(0.5)		(37.0)
State	(0.1)		2.3		(2.3)
Foreign	17.0		(5.4)		5.7
Total deferred	(22.8)		(3.6)		(33.6)
Provision for income taxes	$	88.5	$	67.8	$	71.4

Reconciliation of the Statutory Federal Income Tax Rate to the Actual Effective Income Tax Rate

The following is a reconciliation of the statutory federal income tax rate to the actual effective income tax rate:

Tax rate reconciliation:	2021		2020		2019
U.S. federal statutory income tax rate	21.0	%	21.0	%	21.0	%
State and local taxes, net of federal benefit	1.8		2.0		2.2
Research and development tax credits	(3.4)		(3.4)		(2.2)
Investment tax credits	(1.1)		(1.0)		(1.1)
Foreign rate differential	1.4		0.6		0.7
Net reversals for unrecognized tax benefits	(2.4)		0.7		(0.6)
Stock-based compensation	(2.5)		(4.5)		(3.3)
U.S. export sales	(1.3)		(2.5)		(3.0)
Acquisition-related costs	1.7		—		—
Other	1.4		1.5		1.4
Effective income tax rate	16.6%		14.4	%	15.1	%

Schedule of Deferred Income Tax Assets and Liabilities

The categories of assets and liabilities that have resulted in differences in the timing of the recognition of income and expense were as follows (in millions):

Deferred income tax assets:	2021		2020
Long-term:
Accrued liabilities	$	52.6	$	22.2
Inventory valuation	41.5		15.4
Accrued vacation	9.6		7.6
Deferred compensation and other benefit plans	39.1		39.0
Postretirement benefits other than pensions	1.7		1.8
Operating lease liabilities	38.7		29.9
Capitalization of research and development	34.1		37.1
Tax credit and net operating loss carryforward	47.4		44.2
Valuation allowance	(12.7)		(12.9)
Total deferred income tax assets	252.0		184.3
Deferred income tax liabilities:
Long-term:
Intangible amortization	751.5		139.4
Property, plant and equipment differences	37.8		16.5
Operating lease right-of-use assets	35.0		27.7
Unremitted earnings of foreign subsidiaries	15.9		—
Other	7.9		3.7
Total deferred income tax liabilities	848.1		187.3
Net deferred income tax liabilities	$	596.1	$	3.0

Rollforward of Unrecognized Tax Benefits

Unrecognized tax benefits (in millions):	2021		2020		2019
Beginning of year	$	32.3	$	24.5	$	25.0
Increase due to FLIR acquisition	413.8		—		—
Increase for tax positions taken during the current period	6.3		9.4		4.3
Increase in prior year tax positions	2.5		5.1		4.2
Reduction related to settlements with taxing authorities	(1.6)		(1.9)		(4.6)
Reduction related to lapse of the statute of limitations	(20.7)		(4.9)		(4.3)
Impact of exchange rate changes	(30.6)		0.1		(0.1)
End of year	$	402.0	$	32.3	$	24.5