Income Taxes (Tables)

12 Months Ended

Dec. 30, 2017

Components of Income Tax Expense (Benefit)

The company’s provision for income tax expense (benefit) consists of the following for fiscal years 2017, 2016 and 2015 (amounts in thousands):

	Fiscal 2017			Fiscal 2016			Fiscal 2015
Current Taxes:
Federal	$	53,076		$	86,235		$	75,128
State		7,403			13,983			10,419
		60,479			100,218			85,547
Deferred Taxes:
Federal		(59,385	)		(11,656	)		16,236
State		(1,921	)		(2,801	)		2,057
		(61,306	)		(14,457	)		18,293
Income tax expense (benefit)	$	(827	)	$	85,761		$	103,840

Reconciliation of Effective Tax Amount

Income tax expense (benefit) differs from the amount computed by applying the applicable U.S. federal income tax rate (35%) because of the effect of the following items for fiscal years 2017, 2016, and 2015 (amounts in thousands):

	Fiscal 2017			Fiscal 2016			Fiscal 2015
Tax at U.S. federal income tax rate	$	52,253		$	87,338		$	102,560
State income taxes, net of federal income tax benefit		3,564			7,266			8,556
Tax reform impact		(48,160	)		—			—
Section 199 qualifying production activities benefit		(5,422	)		(8,007	)		(6,725	)
Net share-based payments windfalls*		(1,001	)		—			—
Other		(2,061	)		(836	)		(551	)
Income tax expense (benefit)	$	(827	)	$	85,761		$	103,840

*	Applied beginning in fiscal 2017 upon adoption of new guidance.

Components of Deferred Tax Assets and (Liabilities)

Deferred tax assets (liabilities) are comprised of the following (amounts in thousands):

	December 30, 2017			December 31, 2016
Self-insurance	$	4,972		$	7,051
Compensation and employee benefits		8,836			13,512
Deferred income		8,705			10,893
Loss and credit carryforwards		13,453			19,556
Equity-based compensation		6,831			11,890
Hedging		2,754			676
Pension and postretirement benefits		13,344			27,537
Intangible assets		2,707			4,548
Other		9,657			16,801
Deferred tax assets valuation allowance		(111	)		(18	)
Deferred tax assets		71,148			112,446
Depreciation		(47,552	)		(75,569	)
Intangible assets		(104,597	)		(179,491	)
Other		(1,975	)		(3,240	)
Deferred tax liabilities		(154,124	)		(258,300	)
Net deferred tax liability	$	(82,976	)	$	(145,854	)

Reconciliation of Total Amounts of Unrecognized Tax Benefits

The following is a reconciliation of the total amounts of unrecognized tax benefits for fiscal years 2017, 2016 and 2015 (amounts in thousands):

	Fiscal 2017			Fiscal 2016			Fiscal 2015
Unrecognized tax benefit at beginning of fiscal year	$	1,754		$	727		$	2,107
Gross increases		—			1,488			—
Lapses of statutes of limitations		(495	)		(461	)		(1,380	)
Unrecognized tax benefit at end of fiscal year	$	1,259		$	1,754		$	727