Income Taxes (Tables)

12 Months Ended

Dec. 25, 2021

Components of Income Before Income Taxes

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


(In thousands)	2021		2020		2019

Domestic	$	518,080	$	144,770	$	112,812
Foreign	123,059		64,419		53,271

Income before income taxes	$	641,139	$	209,189	$	166,083

Components of Income Tax Expense

Income tax expense consists of the following:


(In thousands)	2021		2020		2019

Current tax expense:
Federal	$	107,804	$	37,964	$	19,066
Foreign	34,455		16,221		12,727
State and local	16,186		5,182		3,892

Current tax expense	158,445		59,367		35,685

Deferred tax expense (benefit):
Federal	(3,504)		(5,991)		1,725
Foreign	2,572		90		(2,311)
State and local	8,345		1,855		158

Deferred tax expense (benefit)	7,413		(4,046)		(428)

Income tax expense	$	165,858	$	55,321	$	35,257

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)	2021		2020		2019

Expected income tax expense	$	134,639	$	43,930	$	34,892
State and local income tax, net of federal benefit	21,132		5,949		3,234
Effect of foreign statutory rates different from U.S. and other foreign adjustments	11,185		2,783		(882)



Investment in unconsolidated affiliates	(679)		(387)		538




Other, net	(419)		3,046		(2,525)

Income tax expense	$	165,858	$	55,321	$	35,257

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)	2021		2020

Deferred tax assets:
Inventories	$	15,153	$	13,910
Other postretirement benefits and accrued items	8,382		11,477

Other reserves	9,962		7,782
Foreign tax attributes	6,410		6,250
State tax attributes, net of federal benefit	12,043		21,178
Stock-based compensation	3,608		3,751
Right of use liability	4,988		6,034
Basis difference in unconsolidated affiliates	7,690		8,478

Total deferred tax assets	68,236		78,860
Less valuation allowance	(26,624)		(27,199)

Deferred tax assets, net of valuation allowance	41,612		51,661

Deferred tax liabilities:
Property, plant, and equipment	45,804		48,990

Right of use asset	5,099		6,157
Other liabilities	1,765		638


Total deferred tax liabilities	52,668		55,785

Net deferred tax liabilities	$	(11,056)	$	(4,124)