Income Taxes (Tables)

12 Months Ended

Jan. 01, 2023

Income Tax Disclosure [Abstract]

Income Before Provision for Income Taxes

Income before provision for income taxes in 2022, 2021 and 2020 consisted of the following:

	2022		2021		2020
U.S.	$	560,115	$	611,267	$	541,646
Foreign		12,718		14,438		13,484
Income before provision for income taxes	$	572,833	$	625,705	$	555,130

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 2022, 2021 and 2020 are summarized as follows:

	2022			2021			2020
Federal income tax provision based on the statutory rate	$	120,295		$	131,398		$	116,577
State and local income taxes, net of related Federal income taxes		15,978			15,108			16,660
Non-resident withholding and foreign income taxes		23,276			21,833			18,741
Foreign tax and other tax credits		(19,849	)		(23,509	)		(19,506	)
Foreign derived intangible income		(15,068	)		(16,800	)		(12,390	)
Excess tax benefits from equity-based compensation		(2,169	)		(18,911	)		(60,364	)
Non-deductible expenses, net		3,322			4,501			4,359
Unrecognized tax (benefit) provision, net of related Federal income taxes		(3,788	)		4,372			516
Other		(1,427	)		(2,754	)		(759	)
Provision for income taxes	$	120,570		$	115,238		$	63,834

Components of Consolidated Provision for Income Taxes

The components of the 2022, 2021 and 2020 consolidated provision for income taxes were as follows:

	2022			2021			2020
Provision for Federal income taxes
Current provision	$	76,552		$	74,910		$	19,894
Deferred provision (benefit)		4,125			(2,051	)		14,301
Total provision for Federal income taxes		80,677			72,859			34,195
Provision for state and local income taxes
Current provision		20,489			16,507			10,775
Deferred provision (benefit)		577			(461	)		123
Total provision for state and local income taxes		21,066			16,046			10,898
Provision for non-resident withholding and foreign income taxes
Current provision		23,276			21,833			18,741
Deferred (benefit) provision		(4,449	)		4,500			—
Total provision for non-resident withholding and foreign income taxes		18,827			26,333			18,741
Provision for income taxes	$	120,570		$	115,238		$	63,834

Significant Components of Net Deferred Income Taxes

As of January 1, 2023 and January 2, 2022, the significant components of net deferred income taxes were as follows:

	January 1, 2023			January 2, 2022
Deferred income tax assets
Operating lease liabilities	$	56,750		$	54,478
Accruals and reserves		11,330			15,207
Insurance reserves		13,039			12,867
Non-cash equity-based compensation expense		8,849			7,861
Foreign tax credit		13,464			10,206
Other		12,150			8,158
Deferred income tax assets before valuation allowance		115,582			108,777
Less, valuation allowance		(15,001	)		(11,364	)
Deferred income tax assets, net		100,581			97,413
Deferred income tax liabilities
Operating lease right-of-use assets		54,057			51,793
Capitalized software		27,443			19,828
Depreciation, amortization and asset basis differences		15,851			18,570
Unrealized gain on investments		9,065			9,035
Deferred income tax liabilities		106,416			99,226
Net deferred income taxes	$	(5,835	)	$	(1,813	)

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits as of January 1, 2023, January 2, 2022 and January 3, 2021 is as follows:

	January 1, 2023			January 2, 2022			January 3, 2021
Unrecognized tax benefits at beginning of period	$	7,690		$	3,318		$	2,802
Additions for tax positions of current year		887			2,611			494
Additions for tax positions of prior years		958			2624			506
Reductions for changes in prior year tax positions		(4,521	)		(379	)		(178	)
Reductions for lapses of applicable statute of limitations		(1,112	)		(484	)		(306	)
Unrecognized tax benefits at end of period	$	3,902		$	7,690		$	3,318