Income Taxes (Tables)

12 Months Ended

Dec. 30, 2017

Income Tax Disclosure [Abstract]

Income Tax (Benefit) Provision

The income tax (benefit) provision for the last three fiscal years consisted of the following (in thousands):

	2017			2016			2015
Current:
Federal	$	73,792		$	1,110		$	5,307
State		9,084			639			1,722
Current income tax provision		82,876			1,749			7,029
Deferred:
Federal		(133,182	)		(15,095	)		15,117
State		10,254			(65,339	)		2,489
Deferred income tax (benefit) provision		(122,928	)		(80,434	)		17,606
Total income tax (benefit) provision	$	(40,052	)	$	(78,685	)	$	24,635

Reconciliation of (Benefit) Provision for Income Taxes from Continuing Operations

The reconciliation of the (benefit) provision for income taxes from continuing operations at the U.S. federal statutory income tax rate of 35% to the Company’s income taxes for the last three fiscal years is shown below (in thousands).

	2017			2016			2015
Federal income taxes computed at statutory rate	$	141,485		$	45,888		$	67,254
State income taxes, net of federal income tax benefit		16,023			1,886			2,776
Stock-based compensation		(26,150	)		(2,873	)		438
Non-deductible expenses		5,349			4,700			2,911
Change in the valuation allowance for deferred tax assets		(806	)		(127,518	)		(47,531	)
Net operating loss expirations		927			1,563			1,860
Tax credits		(3,675	)		(3,217	)		—
Change in unrecognized tax benefits		(1,147	)		647			(1,946	)
Change in U.S. federal statutory tax rate		(173,057	)		—			—
Other		999			239			(1,127	)
Total income tax (benefit) provision	$	(40,052	)	$	(78,685	)	$	24,635

Significant Deferred Tax Assets and Liabilities

Temporary differences and carryforwards that created significant deferred tax assets and liabilities were as follows (in thousands):

	December 30, 2017			December 31, 2016
Deferred tax assets:
Allowance for doubtful accounts	$	7,416		$	10,552
Accrued employee benefits		6,472			35,020
Restructuring reserves		4,646			14,885
Workers’ compensation, general and fleet liabilities		42,958			61,118
Deferred income	162				470
Deferred financing costs		1,744			5,379
Postretirement benefit obligations		23,350			51,618
Net operating loss carryforwards		86,246			162,511
Other accrued expenses		9,819			30,429
Total gross deferred tax assets		182,813			371,982
Less valuation allowance		(28,962	)		(24,274	)
Total net deferred tax assets		153,851			347,708
Deferred tax liabilities:
Property and equipment		(92,092	)		(216,556	)
Inventories		(29,802	)		(41,765	)
Intangibles		(273,774	)		(435,817	)
Total deferred tax liabilities		(395,668	)		(694,138	)
Net deferred tax liability	$	(241,817	)	$	(346,430	)

Net Deferred Tax Liabilities in Balance Sheet

The net deferred tax liabilities presented in the Consolidated Balance Sheets were as follows (in thousands).  

	December 30, 2017			December 31, 2016
Noncurrent deferred tax assets	$	21,505		$	34,405
Noncurrent deferred tax liability		(263,322	)		(380,835	)
Net deferred tax liability	$	(241,817	)	$	(346,430	)

Net Operating Loss Carryforwards Expire

As of December 30, 2017, the Company had tax affected state net operating loss carryforwards of $86 million, which will expire at various dates from 2018 to 2037.  The Company’s net operating loss carryforwards expire as follows (in millions):

	State
2018-2022	$	25
2023-2027		42
2028-2032		14
2033-2037		5
	$	86

Summary of Activity in Valuation Allowance

A summary of the activity in the valuation allowance for the last three fiscal years is as follows (in thousands):

	2017		2016			2015
Balance at beginning of period	$	24,274	$	151,792		$	232,163
Expense (benefit) recognized		4,688		(127,518	)		(47,531	)
Other comprehensive income		—		—			(32,484	)
Other		—		—			(356	)
Balance at end of period	$	28,962	$	24,274		$	151,792

Reconciliation of Unrecognized Tax Benefits

Reconciliation of the beginning and ending amount of unrecognized tax benefits as of fiscal years 2017, 2016, and 2015 was as follows (in thousands):

Balance at December 27, 2014	$	46,584
Gross decreases due to positions taken in prior years		(4,856	)
Gross increases due to positions taken in current year		—
Decreases due to lapses of statute of limitations		(15	)
Increases due to changes in tax rates		92
Positions assumed in business acquisition		3,279
Balance at January 2, 2016		45,084
Gross increases due to positions taken in prior years		4,743
Gross increases due to positions taken in current year		—
Decreases due to lapses of statute of limitations		(767	)
Increases due to changes in tax rates		180
Balance at December 31, 2016		49,240
Gross increases due to positions taken in prior years		71,801
Gross decreases due to positions taken in prior years		(3,602	)
Gross decreases due to positions taken in current year		(5,098	)
Decreases due to lapses of statute of limitations		(319	)
Decreases due to changes in tax rates		(3,837	)
Balance at December 30, 2017	$	108,185