Income Taxes (Tables)

12 Months Ended

Dec. 30, 2017

Components of income before income taxes

The components of income before income taxes were taxed under the following jurisdictions:



(In thousands)	2017		2016		2015

Domestic	$	76,876	$	103,576	$	121,614
Foreign	50,096		42,454		10,175

Income before income taxes	$	126,972	$	146,030	$	131,789

Components of income tax expense

Income tax expense consists of the following:



(In thousands)	2017			2016			2015

Current tax expense:
Federal	$	28,584		$	32,262		$	50,272
Foreign	10,219			5,667			4,042
State and local	2,241			3,210			4,886

Current tax expense	41,044			41,139			59,200

Deferred tax (benefit) expense:
Federal	(1,764		)	2,004			(13,739		)
Foreign	1,118			5,099			(1,180		)
State and local	(2,514		)	(105		)	(899		)

Deferred tax (benefit) expense	(3,160		)	6,998			(15,818		)

Income tax expense	$	37,884		$	48,137		$	43,382

Income tax reconciliation

The difference between the reported income tax expense and a tax determined by applying the applicable U.S. federal statutory income tax rate to income before income taxes is reconciled as follows:



(In thousands)	2017			2016			2015

Expected income tax expense	$	44,440		$	51,110		$	46,126
State and local income tax, net of federal benefit	1,135			1,982			2,673
Effect of foreign statutory rate different from U.S. and other foreign adjustments	(6,026		)	(4,092		)	(654		)
U.S. production activities deduction	(1,575		)	(3,063		)	(3,500		)
Goodwill disposition	—			—			646
Investment in unconsolidated affiliates	216			1,030			—
Permanent adjustment to deferred tax liabilities	—			—			(4,218		)
Benefit of stock-based compensation deductions	(2,160		)	(656		)	—
Effect of tax on accumulated foreign earnings	12,893			—			—
Effect of tax rate change on net deferred tax liability balance	(12,067		)	—			—
Other, net	1,028			1,826			2,309

Income tax expense	$	37,884		$	48,137		$	43,382

Components of deferred tax assets and liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:



(In thousands)	2017			2016

Deferred tax assets:
Inventories	$	10,598		$	15,483
Other postretirement benefits and accrued items	9,239			13,180
Other reserves	9,029			9,821
Federal and foreign tax attributes	11,936			5,813
State tax attributes, net of federal benefit	29,720			22,572
Stock-based compensation	2,102			2,416
Basis difference in unconsolidated affiliates	—			211

Total deferred tax assets	72,624			69,496
Less valuation allowance	(30,316		)	(18,681		)

Deferred tax assets, net of valuation allowance	42,308			50,815

Deferred tax liabilities:
Property, plant, and equipment	43,972			52,319
Pension	3,841			4,633
Basis difference in unconsolidated affiliates	203			—

Total deferred tax liabilities	48,016			56,952

Net deferred tax liabilities	$	(5,708	)	$	(6,137	)