INCOME TAXES (Tables)

12 Months Ended

Jan. 01, 2017

Income Tax Disclosure [Abstract]

Income Before Provision for Income Taxes

Income before provision for income taxes in 2016, 2015 and 2014 consists of the following (in thousands):

	2016		2015		2014
Domestic	$	334,892	$	298,055	$	250,730
Foreign		9,766		8,160		7,893
	$	344,658	$	306,215	$	258,623

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 2016, 2015 and 2014 are summarized as follows (in thousands):

	2016			2015			2014
Federal income tax provision based on the statutory rate	$	120,630		$	107,175		$	90,518
State and local income taxes, net of related Federal income taxes		9,787			8,589			7,320
Non-resident withholding and foreign income taxes		17,275			15,750			15,032
Foreign tax and other tax credits		(20,049	)		(18,345	)		(17,397	)
Non-deductible expenses, net		1,579			1,180			1,284
Valuation allowance		(120	)		(301	)		(369	)
Unrecognized tax benefits, net of related Federal income taxes		(98	)		110			(48	)
Other		976			(732	)		(304	)
	$	129,980		$	113,426		$	96,036

Components of Consolidated Provision for Income Taxes

The components of the 2016, 2015 and 2014 consolidated provision for income taxes are as follows (in thousands):

	2016			2015		2014
Provision for Federal income taxes
Current provision	$	100,673		$	84,071	$	70,958
Deferred provision (benefit)		(3,096	)		862		(873	)
Total provision for Federal income taxes		97,577			84,933		70,085
Provision for state and local income taxes
Current provision		15,091			11,892		10,178
Deferred provision		37			851		741
Total provision for state and local income taxes		15,128			12,743		10,919
Provision for non-resident withholding and foreign income taxes		17,275			15,750		15,032
	$	129,980		$	113,426	$	96,036

Significant Components of Net Deferred Income Taxes

As of January 1, 2017 and January 3, 2016, the significant components of net deferred income taxes are as follows (in thousands):

	2016			2015
Deferred Federal income tax assets
Insurance reserves	$	11,202		$	10,202
Equity compensation		11,978			12,040
Other accruals and reserves		18,741			14,411
Bad debt reserves		1,005			1,232
Valuation allowance		(35	)		(155	)
Other		5,767			5,409
Total deferred Federal income tax assets		48,658			43,139
Deferred Federal income tax liabilities
Depreciation, amortization and asset basis differences		6,352			3,667
Capitalized software		25,869			21,398
Gain on debt extinguishments		9,073			13,609
Other		—			288
Total deferred Federal income tax liabilities		41,294			38,962
Net deferred Federal income tax asset		7,364			4,177
Net deferred state and local income tax asset		1,571			1,688
Net deferred income taxes	$	8,935		$	5,865

Unrecognized Tax Benefits

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

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
Additions for tax positions of current year		209
Reductions in tax positions from prior years for:
Changes in prior year tax positions		(33	)
Lapses of applicable statute of limitations		(337	)
Balance as of January 1, 2017	$	1,954