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INCOME TAXES (Tables)

12 Months Ended

Jan. 03, 2015

Schedule of Income before Income Tax, Domestic and Foreign

Income before income taxes consisted of the following:



(In millions)	2014		2013		2012
Domestic	$	42.2	$	53.5	$	53.2
Foreign	47.5		58.0		62.8
	$	89.7	$	111.5	$	116.0

Schedule of Components of Income Tax Expense (Benefit)

The income tax provision/(benefit) from continuing operations consisted of the following:



(In millions)	2014			2013			2012
Current:
Federal	$	7.4		$	10.8		$	13.9
Foreign	12.2			14.3			7.9
State	1.7			2.1			1.9
Total current	21.3			27.2			23.7
Deferred:
Federal	3.3			4.3			4.6
Foreign	(3.8		)	(1.3		)	3.3
State	(1.9		)	(1.3		)	0.7
Total deferred	$	(2.4	)	$	1.7		$	8.6
	$	18.9		$	28.9		$	32.3

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the tax provision for continuing operations at the U.S. statutory rate to the effective income tax expense rate as reported is as follows:



	2014		2013		2012
U.S. Federal statutory rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	1.0		1.2		0.9
Foreign operations	(9.2	)	(6.2	)	(7.6	)
R&D tax credits	(0.6	)	(1.1	)	—
Uncertain tax position adjustments	(1.6	)	(1.9	)	2.8
Deferred tax adjustments, rate and other	(3.9	)	—		(4.7	)
Valuation allowance on state deferred tax	(0.3	)	(0.8	)	0.8
Other items	0.6		(0.3	)	0.6
Effective tax rate	21.0	%	25.9	%	27.8	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company's deferred tax assets and liabilities were as follows:



(In millions)	2014			2013
Deferred tax assets:
Accrued expenses and reserves	$	12.2		$	11.0
Compensation and employee benefits	32.6			25.1
Other items	7.3			5.1
Valuation allowance on state deferred tax	(3.9		)	(3.5		)
Total deferred tax assets	48.2			37.7
Deferred tax liabilities:
Accelerated depreciation on fixed assets	14.0			10.3
Amortization of intangibles	62.1			61.0
Other items	6.0			9.2
Total deferred tax liabilities	82.1			80.5
Net deferred tax liabilities	$	(33.9	)	$	(42.8	)

Summary of Operating Loss Carryforwards

The Company has foreign income tax net operating loss ("NOL") carryforwards of $3.1 million and state income tax NOL and credit carryforwards of $3.2 million, which will expire on various dates as follows:



(In millions)
2015-2019	$	0.3
2020-2024	1.0
2025-2029	0.2
2030-2034	1.9
Unlimited	2.9
	$	6.3

Schedule of Unrecognized Tax Benefits Rollforward

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for 2014, 2013, and 2012 (excluding interest and penalties) is as follows:



(In millions)	2014			2013				2012
Beginning balance	$	5.1		$	6.9			$	5.6
Additions for tax positions of the current year	0.1			—				—
Additions for tax positions of prior years	1.7			1.7				3.6
Reductions for tax positions of prior years	(1.1		)	(3.5		)		(1.7		)
Statute expirations	(1.4		)	—			—	—
Settlements	—			—				(0.6		)
Ending balance	$	4.4		$	5.1			$	6.9