INCOME TAXES (Tables)

12 Months Ended

Jan. 03, 2016

Income Tax Disclosure [Abstract]

Income Before Provision for Income Taxes

Income before provision for income taxes in 2015, 2014 and 2013 consists of the following (in thousands):

	2015		2014		2013
Domestic	$	298,055	$	250,730	$	217,468
Foreign		8,160		7,893		7,631
	$	306,215	$	258,623	$	225,099

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

The differences between the United States Federal statutory income tax provision (using the statutory rate of 35%) and the Company’s consolidated provision for income taxes for 2015, 2014 and 2013 are summarized as follows (in thousands):

	2015			2014			2013
Federal income tax provision based on the statutory rate	$	107,175		$	90,518		$	78,785
State and local income taxes, net of related Federal income taxes		8,589			7,320			5,880
Non-resident withholding and foreign income taxes		15,750			15,032			13,923
Foreign tax and other tax credits		(18,345	)		(17,397	)		(16,423	)
Non-deductible expenses, net		1,180			1,284			1,161
Valuation allowance		(301	)		(369	)		29
Unrecognized tax benefits, net of related Federal income taxes		110			(48	)		232
Other		(732	)		(304	)		(1,473	)
	$	113,426		$	96,036		$	82,114

Components of Consolidated Provision for Income Taxes

The components of the 2015, 2014 and 2013 consolidated provision for income taxes are as follows (in thousands):

	2015		2014			2013
Provision for Federal income taxes –
Current provision	$	84,071	$	70,958		$	54,115
Deferred provision (benefit)		862		(873	)		5,280
Total provision for Federal income taxes		84,933		70,085			59,395
Provision for state and local income taxes –
Current provision		11,892		10,178			8,021
Deferred provision		851		741			775
Total provision for state and local income taxes		12,743		10,919			8,796
Provision for non-resident withholding and foreign income taxes		15,750		15,032			13,923
	$	113,426	$	96,036		$	82,114

Significant Components of Net Deferred Income Taxes

As of January 3, 2016 and December 28, 2014, the significant components of net deferred income taxes are as follows (in thousands):

	2015			2014
Deferred Federal income tax assets –
Insurance reserves	$	10,202		$	10,359
Equity compensation		12,040			11,697
Other accruals and reserves		14,411			12,161
Bad debt reserves		1,232			1,675
Valuation allowance		(155	)		(456	)
Other		5,409			5,082
Total deferred Federal income tax assets		43,139			40,518
Deferred Federal income tax liabilities –
Depreciation, amortization and asset basis differences		3,667			899
Capitalized software		21,398			16,628
Gain on debt extinguishments		13,609			18,146
Other		288			576
Total deferred Federal income tax liabilities		38,962			36,249
Net deferred Federal income tax asset		4,177			4,269
Net deferred state and local income tax asset		1,688			2,475
Net deferred income taxes	$	5,865		$	6,744

Classification of Net Deferred Income Taxes

As of January 3, 2016, the classification of net deferred income taxes is summarized as follows (in thousands):

	Long-term		Total
Deferred tax assets	$	5,865	$	5,865
Net deferred income tax assets	$	5,865	$	5,865

As of December 28, 2014, the classification of net deferred income taxes is summarized as follows (in thousands):

	Current			Long-term			Total
Deferred tax assets	$	14,681		$	28,312		$	42,993
Deferred tax liabilities		(4,824	)		(31,425	)		(36,249	)
Net deferred income taxes	$	9,857		$	(3,113	)	$	6,744

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

Balance as of December 30, 2012	$	3,472
Additions for tax positions of current year		337
Additions for tax positions of prior years		398
Reductions in tax positions from prior years for:
Changes in prior year tax positions		(157	)
Settlements during the period		(133	)
Lapses of applicable statute of limitations		(344	)
Balance as of December 29, 2013		3,573
Additions for tax positions of current year		211
Additions for tax positions of prior years		173
Reductions in tax positions from prior years for:
Changes in prior year tax positions		(605	)
Settlements during the period		(55	)
Lapses of applicable statute of limitations		(358	)
Balance as of December 28, 2014		2,939
Additions for tax positions of current year		233
Additions for tax positions of prior years		171
Reductions in tax positions from prior years for:
Changes in prior year tax positions		(100	)
Settlements during the period		(27	)
Lapses of applicable statute of limitations		(1,101	)
Balance as of January 3, 2016	$	2,115