Income Taxes (Tables)

12 Months Ended

Jan. 02, 2022

Income Tax Disclosure [Abstract]

Components of Income Tax Provision

The income tax provision consists of the following:

	Year Ended
	January 2, 2022			January 3, 2021		December 29, 2019
U.S. Federal—current	$	60,329		$	63,957	$	36,091
U.S. Federal—deferred		(1,663	)		3,725		186
U.S. Federal—total		58,666			67,682		36,277
State—current		19,715			20,442		8,649
State—deferred		(146	)		1,304		1,613
State—total		19,569			21,746		10,262
Total provision	$	78,235		$	89,428	$	46,539

Tax Rate Reconciliation

Income tax provision differed from the amounts computed by applying the U.S. federal income tax rate to pre-tax income as a result of the following:

	Year Ended
	January 2, 2022			January 3, 2021			December 29, 2019
Federal statutory rate		21.0	%		21.0	%		21.0	%
Increase (decrease) in income taxes resulting from:
State income taxes, net of federal benefit		4.8			4.6			4.4
Enhanced charitable contribution impact		(1.5	)		(1.0	)		(0.7	)
Change in uncertain tax position reserves		—			0.1			(1.1	)
Amended returns		(0.2	)		(1.0	)		—
Benefit of federal tax credit		(0.4	)		(0.9	)		(1.6	)
Other, net		0.6			0.9			1.7
Effective tax rate		24.3	%		23.7	%		23.7	%

Components of Deferred Tax Assets and Deferred Tax Liabilities

Significant components of the Company’s deferred tax assets and deferred tax liabilities are as follows:

	As Of
	January 2, 2022			January 3, 2021
Deferred tax assets
Employee benefits	$	17,543		$	19,498
Tax credits		228			270
Operating leases		320,650			309,756
Other lease related(1)		5,881			5,962
Other accrued liabilities		4,283			3,926
Charitable contribution carryforward		1,781			1,028
Inventories and other		3,206			4,504
Total gross deferred tax assets		353,572			344,944
Deferred tax liabilities
Depreciation and amortization		(88,970	)		(93,738	)
Intangible assets		(45,978	)		(39,602	)
Operating leases		(275,509	)		(268,670	)
Asset retirement obligations(1)		(1,010	)		(1,007	)
Total gross deferred tax liabilities		(411,467	)		(403,017	)
Net deferred tax (liability) / asset	$	(57,895	)	$	(58,073	)

(1)The deferred tax assets and liabilities disclosure at January 3, 2021 has been adjusted to reflect the gross deferred asset retirement asset and related gross deferred asset retirement obligation.

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:

	As Of
	January 2, 2022			January 3, 2021			December 29, 2019
Beginning balance	$	1,803		$	1,343		$	3,658
Additions based on tax positions related to the    current year		16			16			289
Additions based on tax positions related to prior years		31			647			—
Reductions for tax positions for prior years		(80	)		(203	)		(2,604	)
Ending balance	$	1,770		$	1,803		$	1,343