Income Taxes (Tables)

12 Months Ended

Dec. 30, 2017

Earnings before taxes is summarized as follows (in thousands):



	2017		2016		2015
Domestic	$	290,866	$	336,625	$	266,831
Foreign	92,663		84,680		14,336
Total	$	383,529	$	421,305	$	281,167

Schedule of Provision of Taxes

The provision for income taxes is summarized as follows (in thousands):



	2017			2016		2015
Federal	$	48,688		$	94,621	$	78,617
State and local	9,076			13,107		9,515
Foreign	27,637			29,361		1,425
Total	$	85,401		$	137,089	$	89,557

Current	$	99,893		$	115,726	$	87,638
Deferred	(14,492		)	21,363		1,919
Total	$	85,401		$	137,089	$	89,557

Schedule of Effective Income Tax Reconciliation

Reconciliation of the differences between income taxes computed at the federal statutory rate to the effective rate are as follows:



	2017		2016		2015
U.S. federal statutory tax rate	35.0	%	35.0	%	35.0	%

State taxes, net of federal benefit	1.5		2.3		2.1
U.S. domestic manufacturers deduction	(2.1	)	(2.4	)	(2.6	)
Permanent differences	(0.7	)	(1.6	)	(1.1	)
Foreign income tax rate at rates other than 35%	(1.6	)	(1.1	)	(2.1	)
Tax Cuts and Jobs Act of 2017 deferred tax changes	(10.0	)	—		—
Tax Cuts and Jobs Act of 2017 transition tax	2.0		—		—
Change in valuation allowances	(2.0	)	—		—
Tax on unremitted earnings	1.5		—		—
Other	(1.3	)	0.3		0.6
Consolidated effective tax	22.3	%	32.5	%	31.9	%

Schedule of Deferred Assets and Liabilities

At December 30, 2017 and December 31, 2016, the company had recorded the following deferred tax assets and liabilities:



	2017			2016
	(dollars in thousands)
Deferred tax assets:
Compensation related	3,129			25,650
Pension and post-retirement benefits	56,502			60,986
Inventory reserves	11,342			14,379
Accrued liabilities and reserves	9,813			4,550
Warranty reserves	7,232			10,141
Net operating loss carryforwards	37,911			35,591
Other	19,826			41,198
Gross deferred tax assets	145,755			192,495
Valuation allowance	(23,190		)	(29,893		)
Deferred tax assets	$	122,565		$	162,602

Deferred tax liabilities:
Intangible assets	$	(137,871	)	$	(173,673	)
Depreciable assets	(10,426		)	(2,957		)
Other	(17,518		)	(12,033		)

Deferred tax liabilities	$	(165,815	)	$	(188,663	)

Net deferred tax assets (liabilities)	$	(43,250	)	$	(26,061	)

Long-term deferred asset	44,565			51,699
Long-term deferred liability	(87,815		)	(77,760		)
Net deferred tax assets (liabilities)	$	(43,250	)	$	(26,061	)

Schedule of Unrecognized Tax Benefits

The following table summarizes the activity related to the unrecognized tax benefits for the fiscal years ended January 2, 2016, December 31, 2016 and December 30, 2017 (in thousands):



Balance at January 2, 2016	$	14,419

Increases to current year tax positions	6,367
Increase to prior year tax positions	601
Decrease to prior year tax positions	(233		)
Settlements	—
Lapse of statute of limitations	(865		)

Balance at December 31, 2016	$	20,289

Increases to current year tax positions	11,843
Increase to prior year tax positions	201
Decrease to prior year tax positions	(9		)
Settlements	(439		)
Lapse of statute of limitations	(1,955		)

Balance at December 30, 2017	$	29,930