Income Taxes (Tables)

12 Months Ended

Dec. 29, 2018

Components of income before income taxes

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



(In thousands)	2018		2017		2016

Domestic	$	105,455	$	76,876	$	103,576
Foreign	44,962		50,096		42,454

Income before income taxes	$	150,417	$	126,972	$	146,030

Components of income tax expense

Income tax expense consists of the following:



(In thousands)	2018			2017			2016

Current tax expense:
Federal	$	17,974		$	28,584		$	32,262
Foreign	9,650			10,219			5,667
State and local	3,158			2,241			3,210

Current tax expense	30,782			41,044			41,139

Deferred tax expense (benefit):
Federal	(1,381		)	(1,764		)	2,004
Foreign	551			1,118			5,099
State and local	1,000			(2,514		)	(105		)

Deferred tax expense (benefit)	170			(3,160		)	6,998

Income tax expense	$	30,952		$	37,884		$	48,137

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)	2018			2017			2016

Expected income tax expense	$	31,588		$	44,440		$	51,110
State and local income tax, net of federal benefit	3,495			1,135			1,982
Effect of foreign statutory rates different from U.S. and other foreign adjustments	759			(6,026		)	(4,092		)
Changes in valuation allowances	1,133			—			—
U.S. production activities deduction	—			(1,575		)	(3,063		)
Investment in unconsolidated affiliates	(3,909		)	216			1,030
Benefit of stock-based compensation deductions	(41		)	(2,160		)	(656		)
Effect of tax on accumulated foreign earnings	(4,415		)	12,893			—
Effect of tax rate change on net deferred tax liability balance	—			(12,067		)	—
Other, net	2,342			1,028			1,826

Income tax expense	$	30,952		$	37,884		$	48,137

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)	2018			2017

Deferred tax assets:
Inventories	$	12,297		$	10,598
Other postretirement benefits and accrued items	9,213			9,239
Other reserves	7,847			9,029
Federal and foreign tax attributes	6,252			11,936
State tax attributes, net of federal benefit	27,651			29,720
Stock-based compensation	2,949			2,102
Basis difference in unconsolidated affiliates	1,067			—

Total deferred tax assets	67,276			72,624
Less valuation allowance	(25,311		)	(30,316		)

Deferred tax assets, net of valuation allowance	41,965			42,308

Deferred tax liabilities:
Property, plant, and equipment	44,910			43,972
Pension	250			3,841
Basis difference in unconsolidated affiliates	—			203

Total deferred tax liabilities	45,160			48,016

Net deferred tax liabilities	$	(3,195	)	$	(5,708	)