Income Taxes (Tables)

12 Months Ended

Dec. 28, 2019

Components of income before income taxes

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



(In thousands)	2019		2018		2017

Domestic	$	112,812	$	105,455	$	76,876
Foreign	53,271		44,962		50,096

Income before income taxes	$	166,083	$	150,417	$	126,972

Components of income tax expense

Income tax expense consists of the following:



(In thousands)	2019			2018			2017

Current tax expense:
Federal	$	19,066		$	17,974		$	28,584
Foreign	12,727			9,650			10,219
State and local	3,892			3,158			2,241

Current tax expense	35,685			30,782			41,044

Deferred tax (benefit) expense:
Federal	1,725			(1,381		)	(1,764		)
Foreign	(2,311		)	551			1,118
State and local	158			1,000			(2,514		)

Deferred tax (benefit) expense	(428		)	170			(3,160		)

Income tax expense	$	35,257		$	30,952		$	37,884

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)	2019			2018			2017

Expected income tax expense	$	34,892		$	31,588		$	44,440
State and local income tax, net of federal benefit	3,234			3,495			1,135
Effect of foreign statutory rates different from U.S. and other foreign adjustments	(771		)	759			(6,026		)
U.S. production activities deduction	—			—			(1,575		)
Investment in unconsolidated affiliates	538			(2,776		)	216
Benefit of stock-based compensation deductions	(36		)	(41		)	(2,160		)
Effect of tax on accumulated foreign earnings	(111		)	(4,415		)	12,893
Effect of tax rate change on net deferred tax liability balance	—			—			(12,067		)
Other, net	(2,489		)	2,342			1,028

Income tax expense	$	35,257		$	30,952		$	37,884

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)	2019			2018

Deferred tax assets:
Inventories	$	12,247		$	12,297
Other postretirement benefits and accrued items	9,271			9,213
Other reserves	6,834			7,847
Foreign tax attributes	5,909			6,252
State tax attributes, net of federal benefit	22,395			27,651
Stock-based compensation	3,378			2,949
Right of Use Liability	5,965			—
Basis difference in unconsolidated affiliates	6,547			1,067

Total deferred tax assets	72,546			67,276
Less valuation allowance	(23,130		)	(25,311		)

Deferred tax assets, net of valuation allowance	49,416			41,965

Deferred tax liabilities:
Property, plant, and equipment	47,791			44,910
Pension	949			250
Right of Use Asset	5,967			—
Other Liabilities	311			—

Total deferred tax liabilities	55,018			45,160

Net deferred tax liabilities	$	(5,602	)	$	(3,195	)