Income Taxes (Tables)

12 Months Ended

Dec. 28, 2019

Income Tax Disclosure [Abstract]

Income tax (benefit) provision

The income tax provision (benefit) for the fiscal years 2019, 2018 and 2017 consisted of the following:

	2019			2018		2017
Current:
Federal	$	102		$	32	$	74
State	17			12		9
Current income tax provision	119			44		83
Deferred:
Federal	(6		)	31		(133		)
State	13			14		10
Deferred income tax provision (benefit)	7			45		(123		)
Total income tax provision (benefit)	$	126		$	89	$	(40	)

Reconciliation of (benefit) provision for income taxes

The reconciliation of the provision (benefit) for income taxes from continuing operations at the U.S. federal statutory income tax rate (21% in both 2019 and 2018, and 35% in 2017) to the Company’s income tax provision (benefit) for the fiscal years 2019, 2018 and 2017 is shown below: 

	2019			2018			2017
Federal income taxes computed at statutory rate	$	107		$	104		$	141
State income taxes, net of federal income tax benefit	24			20			16
Stock-based compensation	(4		)	(6		)	(26		)
Non-deductible expenses	4			3			5
Change in the valuation allowance for deferred tax assets	6			1			(1		)
Net operating loss expirations	—			3			1
Tax credits	(10		)	(6		)	(3		)
Change in unrecognized tax benefits	(1		)	(21		)	(1		)
Change in U.S. federal statutory tax rate	—			(8		)	(173		)
Other	—			(1		)	1
Total income tax provision (benefit)	$	126		$	89		$	(40	)

Significant deferred tax assets and liabilities

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

	December 28, 2019			December 29, 2018
Deferred tax assets:
Operating lease liabilities	$	38		$	—
Workers’ compensation, general and fleet liabilities	36			40
Financing lease and other long term liabilities	90			—
Net operating loss carryforwards	64			73
Other deferred tax assets	63			48
Total gross deferred tax assets	291			161
Less valuation allowance	(36		)	(30		)
Total net deferred tax assets	255			131
Deferred tax liabilities:
Property and equipment	(221		)	(121		)
Operating lease assets	(37		)	—
Inventories	(35		)	(39		)
Intangibles	(259		)	(262		)
Other deferred tax liabilities	(11		)	—
Total deferred tax liabilities	(563		)	(422		)
Net deferred tax liability	$	(308	)	$	(291	)

Net deferred tax liabilities in balance sheet

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

	December 28, 2019			December 29, 2018
Noncurrent deferred tax assets	$	—		$	7
Noncurrent deferred tax liability	(308		)	(298		)
Net deferred tax liability	$	(308	)	$	(291	)

Net operating loss carryforwards expiration periods

he Company had tax affected state net operating loss carryforwards of $64 million as of December 28, 2019, which will expire at various dates from 2020 to 2039. The Company’s net operating loss carryforwards expire as follows:

	State
2020-2024	$	32
2025-2029	20
2030-2034	8
2035-2039	4
	$	64

Summary of activity in valuation allowance

A summary of the activity in the valuation allowance for the fiscal years 2019, 2018 and 2017 is as follows:

	2019		2018		2017
Balance as of beginning of year	$	30	$	29	24
Expense recognized	6		1		5
Balance as of end of year	$	36	$	30	$	29

Reconciliation of unrecognized tax benefits

Reconciliation of the beginning and ending amount of unrecognized tax benefits as of fiscal years 2019, 2018, and 2017 was as follows:

Balance as of 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 as of 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 as of December 29, 2018	40
Decreases due to lapses of statute of limitations	(1		)
Balance as of December 28, 2019	$	39