Income Taxes (Tables)

12 Months Ended

Jan. 01, 2022

Income Tax Disclosure [Abstract]

Components of Income Tax Expense (Benefit)

The company’s provision for income tax expense (benefit) consists of the following for Fiscal 2021, 2020, and 2019 (amounts in thousands):

	Fiscal 2021			Fiscal 2020			Fiscal 2019
Current Taxes:
Federal	$	46,018		$	64,113		$	23,397
State		11,790			15,434			5,539
		57,808			79,547			28,936
Deferred Taxes:
Federal		6,946			(26,112	)		17,335
State		(169	)		(5,042	)		1,274
		6,777			(31,154	)		18,609
Income tax expense	$	64,585		$	48,393		$	47,545

Reconciliation of Effective Tax Amount

Income tax expense (benefit) differs from the amount computed by applying the applicable U.S. federal income tax rate of 21% because of the effect of the following items for Fiscal 2021, 2020 and 2019 (amounts in thousands):

	Fiscal 2021			Fiscal 2020			Fiscal 2019
Tax at U.S. federal income tax rate	$	56,862		$	42,149		$	44,538
State income taxes, net of federal income tax benefit		9,181			8,209			5,384
Net share-based payments (windfalls)		(104	)		(80	)		(828	)
Other		(1,354	)		(1,885	)		(1,549	)
Income tax expense	$	64,585		$	48,393		$	47,545

Components of Deferred Tax Assets and (Liabilities)

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

	January 1, 2022			January 2, 2021
Self-insurance	$	5,502		$	4,806
Compensation and employee benefits		8,816			7,698
Deferred income		4,948			5,988
Loss and credit carryforwards		12,990			13,026
Equity-based compensation		6,797			3,977
Legal accrual		6,514			2,867
Deferred payroll tax under CARES act		4,100			7,525
Pension and postretirement benefits		1,722			2,390
Financing and operating lease right-of-use liabilities		77,422			88,816
Other		6,642			7,028
Valuation allowance		(1,030	)		(1,030	)
Deferred tax assets		134,423			143,091
Depreciation		(71,041	)		(69,056	)
Intangibles		(114,882	)		(109,824	)
Financing and operating lease right-of-use assets		(75,233	)		(85,720	)
Hedging		(2,015	)		(4,357	)
Other		(5,009	)		(2,393	)
Deferred tax liabilities		(268,180	)		(271,350	)
Net deferred tax liability	$	(133,757	)	$	(128,259	)

Reconciliation of Total Amounts of Unrecognized Tax Benefits

The following is a reconciliation of the total amounts of unrecognized tax benefits for Fiscal 2021, 2020, and 2019 (amounts in thousands):

	Fiscal 2021		Fiscal 2020			Fiscal 2019
Unrecognized tax benefit at beginning of fiscal year	$	—	$	306		$	750
Lapses of statutes of limitations		—		(306	)		(444	)
Unrecognized tax benefit at end of fiscal year	$	—	$	—		$	306