Income Taxes (Tables)

12 Months Ended

Jan. 01, 2023

Income Tax Disclosure [Abstract]

Summary of Income Tax Expense (Benefit)

Income tax expense (benefit) consists of the following:

	Current		Deferred			Total
	(In thousands)
Fiscal 2022:
Federal	$	2,958	$	1,905		$	4,863
State		1,745		201			1,946
	$	4,703	$	2,106		$	6,809
Fiscal 2021:
Federal	$	23,422	$	1,121		$	24,543
State		7,582		613			8,195
	$	31,004	$	1,734		$	32,738
Fiscal 2020:
Federal	$	13,786	$	86		$	13,872
State		4,871		(298	)		4,573
	$	18,657	$	(212	)	$	18,445

Schedule of Federal Statutory Tax Rate Reconciliation

The provision for income taxes differs from the amounts computed by applying the federal statutory tax rate of 21% to earnings before income taxes, as follows:

	Fiscal Year Ended
	January 1, 2023			January 2, 2022			January 3, 2021
	(In thousands)
Tax expense at statutory rate	$	6,918		$	28,376		$	15,621
State tax expense, net of federal tax effect		1,734			7,167			3,975
Additional deduction related to share-based compensation		(1,321	)		(2,623	)		—
Nondeductible expenses		259			729			86
Tax credits		(826	)		(603	)		(246	)
Change in valuation allowance		—			(318	)		(418	)
CARES Act net operating loss carryback		—			—			(822	)
Write-offs related to nonvested share awards		—			—			260
Other		45			10			(11	)
	$	6,809		$	32,738		$	18,445

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities consist of the following tax-effected temporary differences:

	January 1, 2023			January 2, 2022
	(In thousands)
Deferred tax assets:
Employee benefit-related liabilities	$	2,781		$	2,889
Insurance liabilities		2,654			2,421
Deferred rent		1,632			2,828
Gift card liability		1,594			1,420
Merchandise inventory		1,103			1,215
Property, plant and equipment		816			814
Share-based compensation		810			805
State taxes		379			1,545
California Enterprise Zone Tax Credits		325			381
Other deferred tax assets		606			686
Gross deferred tax assets		12,700			15,004
Less: Valuation allowance		(280	)		(280	)
Deferred tax assets, net of valuation allowance		12,420			14,724
Deferred tax liabilities:
Prepaid expense		(992	)		(1,147	)
Federal liability on state deferred tax assets		(954	)		(996	)
Accrual for software as a service		(483	)		(484	)
Deferred tax liabilities		(2,429	)		(2,627	)
Net deferred tax assets	$	9,991		$	12,097