Income Taxes (Tables)

12 Months Ended

Jan. 01, 2017

Income Tax Disclosure [Abstract]

Earnings (Loss) From Continuing Operations Before Taxes Per Jurisdiction

Earnings before taxes and equity in net earnings (loss) of affiliate for the years 2016, 2015 and 2014 were taxed under the following jurisdictions: 

	2016		2015		2014
	(In millions of dollars)
Domestic	$	112.4	$	28.9	$	5.9
Foreign	37.3		34.3		13.2
Total	$	149.7	$	63.2	$	19.1

Provision for Income Taxes From Continuing Operations

The provision for income taxes was as follows:

	2016			2015			2014
	(In millions of dollars)
Current tax expense:
U.S. federal	$	10.2		$	8.3		$	5.6
U.S. state and local	2.4			1.4			1.4
Foreign	10.0			10.8			12.7
Total current	22.6			20.5			19.7
Deferred tax expense:
U.S. federal	11.8			(10.6		)	(22.0		)
U.S. state and local	2.0			0.8			(0.4		)
Foreign	(6.4		)	(2.0		)	(4.4		)
Total deferred	7.4			(11.8		)	(26.8		)
Total provision	$	30.0		$	8.7		$	(7.1	)

Deferred Taxes

Deferred taxes are comprised of the following:

	2016			2015
	(In millions of dollars)
Depreciation and amortization	$	(14.6	)	$	(14.3	)
Employee compensation and benefit plans	75.5			70.6
Workers’ compensation	22.4			21.4
Unrealized gain on securities	(33.6		)	(36.7		)
Investment in equity affiliate	(22.7		)	4.0
Loss carryforwards	36.4			40.6
Credit carryforwards	121.2			113.4
Other, net	3.5			4.1
Valuation allowance	(42.1		)	(50.9		)
Net deferred tax assets	$	146.0		$	152.2

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

	2016			2015
	(In millions of dollars)
Deferred tax asset	$	180.1		$	189.3
Other long-term liabilities	(34.1		)	(37.1		)
	$	146.0		$	152.2

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 35% are as follows:

	2016			2015			2014
	(In millions of dollars)
Income tax based on statutory rate	$	52.4		$	22.1		$	6.7
State income taxes, net of federal benefit	2.9			1.3			0.7
General business credits	(17.0		)	(17.9		)	(17.5		)
Life insurance cash surrender value	(3.0		)	0.3			(2.2		)
Foreign items	0.4			(2.5		)	(1.1		)
Foreign business taxes	3.6			3.7			4.2
Foreign tax law change	—			(0.7		)	(2.2		)
TS Kelly Asia Pacific transaction gain	(4.8		)	—			—
Non-deductible expenses	1.6			2.3			2.1
Change in deferred tax realizability	(5.9		)	—			2.2
Other, net	(0.2		)	0.1			—
Total	$	30.0		$	8.7		$	(7.1	)

Net Tax Effect of State and Foreign Loss Carryforwards

The net tax effect of state and foreign loss carryforwards at year-end 2016 totaled $36.4 million, which expire as follows (in millions of dollars): 

Year	Amount
2017-2019	$	1.9
2020-2022	0.7
2023-2026	0.2
2027-2029	0.1
No expiration	33.5
Total	$	36.4

Reconciliation of Unrecognized Tax Benefits

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

	2016			2015			2014
	(In millions of dollars)
Balance at beginning of the year	$	1.7		$	2.4		$	2.8
Additions for prior years’ tax positions	0.1			0.1			—
Reductions for prior years’ tax positions	—			(0.7		)	(0.4		)
Additions for settlements	—			—			—
Reductions for settlements	—			—			—
Reductions for expiration of statutes	(0.4		)	(0.1		)	—
Balance at end of the year	$	1.4		$	1.7		$	2.4