Income Taxes (Tables)

12 Months Ended

Dec. 29, 2018

Income Tax Disclosure [Abstract]

Income Tax (Benefit) Provision

The income tax provision (benefit) for the fiscal years 2018, 2017 and 2016 consisted of the following:

	2018		2017			2016
Current:
Federal	$	32	$	74		$	1
State	12		9			—
Current income tax provision	44		83			1
Deferred:
Federal	31		(133		)	(15		)
State	14		10			(65		)
Deferred income tax provision (benefit)	45		(123		)	(80		)
Total income tax provision (benefit)	$	89	$	(40	)	$	(79	)

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

The reconciliation of the provision (benefit) for income taxes from continuing operations at the U.S. federal statutory income tax rate (21% in 2018, and 35% in 2017 and 2016, respectively) to the Company’s income tax provision (benefit) for the fiscal years 2018, 2017 and 2016 is shown below.

	2018			2017			2016
Federal income taxes computed at statutory rate	$	104		$	141		$	46
State income taxes, net of federal income tax benefit	20			16			2
Stock-based compensation	(6		)	(26		)	(3		)
Non-deductible expenses	3			5			5
Change in the valuation allowance for deferred tax assets	1			(1		)	(128		)
Net operating loss expirations	3			1			2
Tax credits	(6		)	(3		)	(3		)
Change in unrecognized tax benefits	(21		)	(1		)	1
Change in U.S. federal statutory tax rate	(8		)	(173		)	—
Other	(1		)	1			(1		)
Total income tax provision (benefit)	$	89		$	(40	)	$	(79	)

Significant Deferred Tax Assets and Liabilities

Temporary differences and carryforwards that created significant deferred tax assets and liabilities were as follows:

	December 29, 2018			December 30, 2017
Deferred tax assets:
Allowance for doubtful accounts	$	8		$	7
Accrued employee benefits	13			7
Restructuring reserves	3			5
Workers’ compensation, general and fleet liabilities	40			43
Deferred financing costs	2			2
Postretirement benefit obligations	9			23
Net operating loss carryforwards	73			86
Other accrued expenses	13			10
Total gross deferred tax assets	161			183
Less valuation allowance	(30		)	(29		)
Total net deferred tax assets	131			154
Deferred tax liabilities:
Property and equipment	(121		)	(92		)
Inventories	(39		)	(30		)
Intangibles	(262		)	(274		)
Total deferred tax liabilities	(422		)	(396		)
Net deferred tax liability	$	(291	)	$	(242	)

Net Deferred Tax Liabilities in Balance Sheet

The net deferred tax liabilities presented in the Company's Consolidated Balance Sheets were as follows.  

	December 29, 2018			December 30, 2017
Noncurrent deferred tax assets	$	7		$	21
Noncurrent deferred tax liability	(298		)	(263		)
Net deferred tax liability	$	(291	)	$	(242	)

Net Operating Loss Carryforwards Expire

As of December 29, 2018, the Company had tax affected state net operating loss carryforwards of $73 million, which will expire at various dates from 2019 to 2038. The Company’s net operating loss carryforwards expire as follows:

	State
2019-2023	$	33
2024-2028	26
2029-2033	9
2034-2038	5
	$	73

Summary of Activity in Valuation Allowance

A summary of the activity in the valuation allowance for the fiscal years 2018, 2017 and 2016 is as follows:

	2018		2017		2016
Balance at beginning of year	$	29	$	24	152
Expense (benefit) recognized	1		5		(128		)
Balance at end of year	$	30	$	29	$	24

Reconciliation of Unrecognized Tax Benefits

Reconciliation of the beginning and ending amount of unrecognized tax benefits as of fiscal years 2018, 2017, and 2016 was as follows:

Balance at January 2, 2016	$	45
Gross increases due to positions taken in prior years	5
Decreases due to lapses of statute of limitations	(1		)
Balance at December 31, 2016	49
Gross increases due to positions taken in prior years	72
Gross decreases due to positions taken in prior years	(4		)
Gross decreases due to positions taken in current year	(5		)
Decreases due to changes in tax rates	(4		)
Balance at December 30, 2017	108
Gross increases due to positions taken in prior years	2
Gross decreases due to positions taken in prior years	(64		)
Decreases due to lapses of statute of limitations	(1		)
Decreases due to changes in tax rates	(5		)
Balance at December 29, 2018	$	40