Income Taxes (Tables)

12 Months Ended

Jan. 02, 2022

Income Tax Disclosure [Abstract]

Income Before Provision for Income Taxes

Income before provision for income taxes in 2021, 2020 and 2019 consisted of the following:

	2021		2020		2019
U.S.	$	611,267	$	541,646	$	468,467
Foreign		14,438		13,484		14,170
Income before provision for income taxes	$	625,705	$	555,130	$	482,637

Differences Between Statutory Income Tax Provision and Consolidated Provision for Income Taxes

The differences between the U.S. Federal statutory income tax provision (using the statutory rate of 21%) and the Company’s consolidated provision for income taxes for 2021, 2020 and 2019 are summarized as follows:

	2021			2020			2019
Federal income tax provision based on the statutory rate	$	131,398		$	116,577		$	101,354
State and local income taxes, net of related Federal income taxes		15,108			16,660			15,141
Non-resident withholding and foreign income taxes		21,833			18,741			20,351
Foreign tax and other tax credits		(23,509	)		(19,506	)		(20,090	)
Foreign derived intangible income		(16,800	)		(12,390	)		(12,810	)
Excess tax benefits from equity-based compensation		(18,911	)		(60,364	)		(25,735	)
Non-deductible expenses, net		4,501			4,359			3,090
Unrecognized tax provision, net of related Federal income taxes		4,372			516			694
Other		(2,754	)		(759	)		(67	)
Provision for income taxes	$	115,238		$	63,834		$	81,928

Components of Consolidated Provision for Income Taxes

The components of the 2021, 2020 and 2019 consolidated provision for income taxes were as follows:

	2021			2020		2019
Provision for Federal income taxes
Current provision	$	74,910		$	19,894	$	49,539
Deferred (benefit) provision		(2,051	)		14,301		(2,862	)
Total provision for Federal income taxes		72,859			34,195		46,677
Provision for state and local income taxes
Current provision		16,507			10,775		15,335
Deferred (benefit) provision		(461	)		123		(435	)
Total provision for state and local income taxes		16,046			10,898		14,900
Provision for non-resident withholding and foreign income taxes
Current provision		21,833			18,741		20,351
Deferred provision		4,500			—		—
Total provision for non-resident withholding and foreign income taxes		26,333			18,741		20,351
Provision for income taxes	$	115,238		$	63,834	$	81,928

Significant Components of Net Deferred Income Taxes

As of January 2, 2022 and January 3, 2021, the significant components of net deferred income taxes were as follows:

	January 2, 2022			January 3, 2021
Deferred income tax assets
Operating lease liabilities	$	54,478		$	58,885
Accruals and reserves		15,207			14,148
Insurance reserves		12,867			12,447
Non-cash equity-based compensation expense		7,861			8,331
Foreign tax credit		10,206			6,603
Other		8,158			7,720
Deferred income tax assets before valuation allowance		108,777			108,134
Less: Valuation allowance		(11,364	)		(7,600	)
Total deferred income tax assets		97,413			100,534
Deferred income tax liabilities
Operating lease right-of-use assets		51,793			56,446
Capitalized software		19,828			29,596
Depreciation, amortization and asset basis differences		18,570			18,687
Unrealized gain on investments		9,035			—
Total deferred income tax liabilities		99,226			104,729
Net deferred income taxes	$	(1,813	)	$	(4,195	)

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits as of January 2, 2022, January 3, 2021 and December 29, 2019 is as follows:

	January 2, 2022			January 3, 2021			December 29, 2019
Unrecognized tax benefits at beginning of period	$	3,318		$	2,802		$	1,964
Additions for tax positions of current year		2,611			494			468
Additions for tax positions of prior years		2,624			506			789
Reductions for changes in prior year tax positions		(379	)		(178	)		(284	)
Reductions for lapses of applicable statute of limitations		(484	)		(306	)		(135	)
Unrecognized tax benefits at end of period	$	7,690		$	3,318		$	2,802