Income Taxes (Tables)

12 Months Ended

Dec. 30, 2023

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


	2023		2022		2021
Domestic	$	346,815	$	383,813	$	453,357
Foreign	172,563		180,602		166,147
Total	$	519,378	$	564,415	$	619,504

Schedule of Provision of Taxes

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


	2023		2022		2021
Federal	$	67,023	$	62,416	$	84,689
State and local	15,934		23,892		24,363
Foreign	35,539		41,538		21,960
Total	$	118,496	$	127,846	$	131,012

Current	$	120,901	$	134,488	$	124,149
Deferred	(2,405)		(6,642)		6,863
Total	$	118,496	$	127,846	$	131,012

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:


	2023		2022		2021
U.S. federal statutory tax rate	21.0	%	21.0	%	21.0	%

State taxes, net of federal benefit	3.1		3.3		3.1
Permanent differences	0.6		0.9		0.5
Foreign income tax rate at rates other than U.S. statutory	0.2		0.2		0.2
Deferred tax changes	—		—		(2.2)
Change in valuation allowances	—		—		0.4
Tax on unremitted earnings	0.4		0.3		0.4
Federal Refund	—		—		(0.7)
Internal restructuring	—		(2.3)		—
Other	(2.5)		(0.7)		(1.6)
Consolidated effective tax	22.8	%	22.7	%	21.1	%

Schedule of Deferred Assets and Liabilities

At December 30, 2023 and December 31, 2022, the company had recorded the following deferred tax assets and liabilities (in thousands):


	2023		2022
Deferred tax assets:
Compensation related	$	29,135	$	26,273
Pension and post-retirement benefits	1,435		1,640
Inventory reserves	27,311		26,134
Accrued liabilities and reserves	22,017		21,743
Warranty reserves	20,956		17,593
Operating lease liability	22,096		19,890
Basis difference on affiliates	12,099		14,473
Capitalized R&D costs	39,585		19,381
Convertible debt	15,860		25,637
Net operating loss carryforwards	12,989		12,964
Other	22,871		14,879
Gross deferred tax assets	226,354		200,607
Valuation allowance	(15,749)		(11,599)
Deferred tax assets	$	210,605	$	189,008

Deferred tax liabilities:
Intangible assets	$	(310,847)	$	(306,814)
Depreciable assets	(40,036)		(32,267)

Operating lease right-of-use assets	(21,139)		(19,240)
Interest rate swaps	(10,927)		(16,836)
Pension and post-retirement benefits	(9,719)		—
Other	(26,135)		(27,317)

Deferred tax liabilities	$	(418,803)	$	(402,474)

Net deferred tax assets (liabilities)	$	(208,198)	$	(213,466)

Long-term deferred asset	7,945		6,738
Long-term deferred liability	(216,143)		(220,204)
Net deferred tax assets (liabilities)	$	(208,198)	$	(213,466)

Schedule of Unrecognized Tax Benefits

The following table summarizes the activity related to the unrecognized tax benefits for the fiscal years ended January 1, 2022, December 31, 2022 and December 30, 2023 (in thousands):


Balance at January 1, 2022	$	36,209

Increases to current year tax positions	2,195
Increase to prior year tax positions	534
Decrease to prior year tax positions	(1,709)
Settlements	(1,974)
Lapse of statute of limitations	(1,607)

Balance at December 31, 2022	$	33,648

Increases to current year tax positions	2,126



Lapse of statute of limitations	(1,852)

Balance as of December 30, 2023	$	33,922