Income Taxes (Tables)

12 Months Ended

Dec. 29, 2019

Income Tax Disclosure [Abstract]

Income Before Provision for Income Taxes

Income before provision for income taxes in 2019, 2018 and 2017 consists of the following (in thousands):

	2019		2018		2017
U.S.	$	468,467	$	414,804	$	386,989
Foreign		14,170		13,874		13,164
Income before provision for income taxes	$	482,637	$	428,678	$	400,153

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% in 2019 and 2018 and the statutory rate of 35% in 2017) and the Company’s consolidated provision for income taxes for 2019, 2018 and 2017 are summarized as follows (in thousands):

	2019			2018			2017
Federal income tax provision based on the statutory rate	$	101,354		$	90,022		$	140,054
State and local income taxes, net of related Federal income taxes		15,141			14,233			11,520
Non-resident withholding and foreign income taxes		20,351			21,369			20,210
Foreign tax and other tax credits		(20,090	)		(25,301	)		(23,324	)
Foreign derived intangible income		(12,810	)		(11,760	)		—
Excess tax benefits from equity-based compensation		(25,735	)		(23,786	)		(27,227	)
Non-deductible expenses, net		3,090			1,999			1,794
Unrecognized tax provision (benefit), net of related Federal income taxes		694			301			(173	)
Other		(67	)		(371	)		(606	)
Provision for income taxes	$	81,928		$	66,706		$	122,248

Components of Consolidated Provision for Income Taxes

The components of the 2019, 2018 and 2017 consolidated provision for income taxes are as follows (in thousands):

	2019			2018			2017
Provision for Federal income taxes
Current provision	$	49,539		$	33,558		$	81,747
Deferred (benefit) provision		(2,862	)		(1,543	)		6,732
Total provision for Federal income taxes		46,677			32,015			88,479
Provision for state and local income taxes
Current provision		15,335			12,651			14,131
Deferred (benefit) provision		(435	)		671			(572	)
Total provision for state and local income taxes		14,900			13,322			13,559
Provision for non-resident withholding and foreign income taxes		20,351			21,369			20,210
Provision for income taxes	$	81,928		$	66,706		$	122,248

Significant Components of Net Deferred Income Taxes

As of December 29, 2019 and December 30, 2018, the significant components of net deferred income taxes are as follows (in thousands):

	2019			2018
Deferred income tax assets
Other accruals and reserves	$	11,874		$	10,636
Insurance reserves		11,256			10,253
Equity compensation		10,357			9,705
Foreign tax credit		9,333			4,600
Other		6,980			6,029
Deferred income tax assets before valuation allowance		49,800			41,223
Less: Valuation allowance		(4,280	)		—
Total deferred income tax assets		45,520			41,223
Deferred income tax liabilities
Depreciation, amortization and asset basis differences		8,117			10,505
Capitalized software		27,330			25,192
Total deferred income tax liabilities		35,447			35,697
Net deferred income tax assets	$	10,073		$	5,526

Unrecognized Tax Benefits

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

	2019			2018			2017
Unrecognized tax benefits at beginning of period	$	1,964		$	1,837		$	1,954
Additions for tax positions of current year		468			425			224
Additions for tax positions of prior years		789			115			42
Reductions for changes in prior year tax positions		(284	)		(64	)		(10	)
Reductions for lapses of applicable statute of limitations		(135	)		(349	)		(373	)
Unrecognized tax benefits at end of period	$	2,802		$	1,964		$	1,837