INCOME TAXES (Tables)

12 Months Ended

Dec. 29, 2018

INCOME TAXES

Components of Income Tax Expense (Benefit)

Income tax provisions for the years ended December 29, 2018, December 30, 2017, and December 31, 2016 are summarized as follows (in thousands):

	2018		2017		2016
Currently Payable:
Federal	$	31,492	$	44,413	$	42,397
State and local		7,544		8,579		6,341
Foreign		5,527		6,240		6,143
		44,563		59,232		54,881
Net Deferred:
Federal		2,965		(7,681)		(455)
State and local		(522)		(864)		438
Foreign		(1,565)		1,280		310
		878		(7,265)		293
	$	45,441	$	51,967	$	55,174

Components of Earnings Before Income Taxes

	2018		2017		2016
U.S.	$	180,261	$	151,395	$	140,106
Foreign		17,592		24,612		20,565
Total	$	197,853	$	176,007	$	160,671

Effective Income Tax Rate Reconciliation

	2018		2017		2016
Statutory federal income tax rate	21.0	%	35.0	%	35.0	%
State and local taxes (net of  federal benefits)	3.8		3.0		3.1
Effect of noncontrolling owned interest in earnings of partnerships	(0.1)		(0.2)		(0.2)
Manufacturing deduction	n/a		(2.5)		(2.4)
Tax credits, including foreign tax credit	(1.6)		(2.0)		(1.4)
Change in uncertain tax positions reserve	0.1		0.4		0.4
Other permanent differences	0.6		(0.1)		0.1
Other, net	(0.7)		(0.6)		(0.3)
Impact of Tax Act and reduction of corporate tax rate	(0.1)		(3.5)		—
Effective income tax rate	23.0	%	29.5	%	34.3	%

Components of Deferred Tax Assets and Liabilities

Temporary differences which give rise to deferred income tax assets and (liabilities) on December 29, 2018 and December 30, 2017 are as follows (in thousands):

	2018		2017
Employee benefits	$	20,914	$	17,048
Net operating loss carryforwards		6,520		8,592
Foreign subsidiary capital loss carryforward		504		546
Other tax credits		586		709
Inventory		1,090		358
Reserves on receivables		802		714
Accrued expenses		1,593		2,060
Other, net		2,785		1,879
Gross deferred income tax assets		34,794		31,906
Valuation allowance		(2,707)		(4,706)
Deferred income tax assets		32,087		27,200
Depreciation		(24,881)		(19,992)
Intangibles		(20,225)		(19,422)
Other, net		—		—
Deferred income tax liabilities		(45,106)		(39,414)
Net deferred income tax liability	$	(13,019)	$	(12,214)

Schedule of NOL and credit carryforwards

	Net Operating Losses						Tax Credits
	U.S.		State		Foreign		U.S.		State
2018 – 2022	$	—	$	165	$	347	$	—	$	381
2023 - 2027		—		526		635		—		—
2028 - 2032		2,859		672		114		—		—
2033 - 2037		41		812		—		—		—
Thereafter		—		293		56		—		—
Total	$	2,900	$	2,468	$	1,152	$	—	$	381