INCOME TAXES (Tables)

12 Months Ended

Jan. 03, 2015

The components of income before income taxes were as follows:

The provision for income taxes consisted of the following:



	For the fiscal years ended
(dollars in thousands)	January 3, 2015			December 28, 2013			December 29, 2012
Current tax provision:
Federal	$	88,635		$	71,696		$	87,070
State	9,049			8,486			8,905
Foreign	6,641			8,280			7,917
Total current provision	$	104,325		$	88,462		$	103,892

Deferred tax provision (benefit):
Federal	$	5,519		$	1,412		$	(7,815	)
State	41			(942		)	(846		)
Foreign	(1,649		)	126			(990		)
Total deferred provision	3,911			596			(9,651		)
Total provision	$	108,236		$	89,058		$	94,241

The difference between the Company's effective income tax rate and the federal statutory tax rate is reconciled below:



	For the fiscal years ended
	January 3, 2015		December 28, 2013		December 29, 2012

Statutory federal income tax rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal income tax benefit	2.5	%	2.5	%	2.5	%
Impact of foreign operations	(1.2	)%	(1.4	)%	(0.7	)%
Settlement of uncertain tax positions	(0.6	)%	(0.4	)%	(0.5	)%
Acquisition expenses	—	%	—	%	0.6	%
Total	35.7	%	35.7	%	36.9	%

Components of deferred tax assets and liabilities were as follows:



(dollars in thousands)	January 3, 2015			December 28, 2013
Deferred tax assets:	Assets (Liabilities)
Accounts receivable allowance	$	4,990		$	4,783
Inventory	11,253			12,378
Accrued liabilities	13,947			14,829
Equity-based compensation	10,596			9,001
Deferred employee benefits	8,070			5,111
Deferred rent	37,381			31,855
Other	6,127			5,050
Total deferred tax assets	$	92,364		$	83,007
Deferred tax liabilities:
Depreciation	$	(70,510	)	$	(54,809	)
Tradename and licensing agreements	(102,298		)	(108,155		)
Other	(4,467		)	(4,164		)
Total deferred tax liabilities	$	(177,275	)	$	(167,128	)

The net deferred tax liability was classified on the Company's consolidated balance sheets as follows:



(dollars in thousands)	January 3, 2015			December 28, 2013
	Assets (Liabilities)
Current net deferred tax asset	$	36,625		$	37,313
Non-current net deferred tax liability	(121,536		)	(121,434		)
Total deferred tax liability	$	(84,911	)	$	(84,121	)

The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits:



(dollars in thousands)
Balance at December 31, 2011	$	8,345
Additions based on tax positions related to fiscal 2012	2,384
Additions for prior year tax positions	1,020
Reductions for lapse of statute of limitations	(1,831		)
Reductions for prior year tax settlements	(155		)
Balance at December 29, 2012	$	9,763
Additions based on tax positions related to fiscal 2013	3,200
Reductions for prior year tax positions	(375		)
Reductions for lapse of statute of limitations	(1,029		)
Reductions for prior year tax settlements	(377		)
Balance at December 28, 2013	$	11,182
Additions based on tax positions related to fiscal 2014	2,572
Reductions for prior year tax positions	(471		)
Reductions for lapse of statute of limitations	(1,536		)
Reductions for prior year tax settlements	(436		)
Balance at January 3, 2015	$	11,311