Income Taxes (Tables)

12 Months Ended

Jan. 03, 2016

Income Tax Disclosure [Abstract]

Earnings (Loss) From Continuing Operations Before Taxes Per Jurisdiction

Earnings before taxes for the years 2015, 2014 and 2013 were taxed under the following jurisdictions: 

	2015		2014		2013
	(In millions of dollars)
Domestic	$	28.9	$	5.9	$	35.1
Foreign	33.6		10.7		13.7
Total	$	62.5	$	16.6	$	48.8

Provision for Income Taxes From Continuing Operations

The provision for income taxes was as follows:

	2015			2014			2013
	(In millions of dollars)
Current tax expense:
U.S. federal	$	8.3		$	5.6		$	7.3
U.S. state and local	1.4			1.4			3.5
Foreign	10.8			12.7			10.4
Total current	20.5			19.7			21.2
Deferred tax expense:
U.S. federal	(10.6		)	(22.0		)	(26.9		)
U.S. state and local	0.8			(0.4		)	(1.6		)
Foreign	(2.0		)	(4.4		)	(2.8		)
Total deferred	(11.8		)	(26.8		)	(31.3		)
Total provision	$	8.7		$	(7.1	)	$	(10.1	)

Deferred Taxes

Deferred taxes are comprised of the following:

	2015			2014
	(In millions of dollars)
Depreciation and amortization	$	(14.3	)	$	(14.4	)
Employee compensation and benefit plans	70.6			70.4
Workers’ compensation	21.4			21.6
Unrealized gain on securities	(36.7		)	(23.7		)
Loss carryforwards	40.6			47.2
Credit carryforwards	113.4			103.0
Other, net	8.1			11.0
Valuation allowance	(50.9		)	(58.5		)
Net deferred tax assets	$	152.2		$	156.6

The deferred tax balance is classified in the consolidated balance sheet as:

	2015			2014
	(In millions of dollars)
Current assets, deferred tax	$	—		$	34.4
Noncurrent deferred tax asset	189.3			146.3
Current liabilities, income and other taxes	—			(0.4		)
Noncurrent liabilities, other long-term liabilities	(37.1		)	(23.7		)
	$	152.2		$	156.6

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 35% are as follows:

	2015			2014			2013
	(In millions of dollars)
Income tax based on statutory rate	$	21.9		$	5.8		$	17.1
State income taxes, net of federal benefit	1.3			0.7			1.2
General business credits	(17.9		)	(17.5		)	(26.2		)
Life insurance cash surrender value	0.3			(2.2		)	(5.8		)
Foreign items	(2.3		)	(0.2		)	0.3
Foreign business taxes	3.7			4.2			3.9
Foreign tax law change	(0.7		)	(2.2		)	(4.6		)
Non-deductible expenses	2.3			2.1			1.6
Change in deferred tax realizability	—			2.2			2.8
Other, net	0.1			—			(0.4		)
Total	$	8.7		$	(7.1	)	$	(10.1	)

Net Tax Effect of State and Foreign Loss Carryforwards

The net tax effect of state and foreign loss carryforwards at year-end 2015 totaled $40.6 million, which expire as follows (in millions of dollars): 

Year	Amount
2016-2018	$	2.3
2019-2021	1.9
2022-2025	0.4
2026-2029	0.1
No expiration	35.9
Total	$	40.6

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 

	2015			2014			2013
	(In millions of dollars)
Balance at beginning of the year	$	2.4		$	2.8		$	2.9
Additions for prior years’ tax positions	0.1			—			—
Reductions for prior years’ tax positions	(0.7		)	(0.4		)	(0.1		)
Additions for settlements	—			—			—
Reductions for settlements	—			—			—
Reductions for expiration of statutes	(0.1		)	—			—
Balance at end of the year	$	1.7		$	2.4		$	2.8