Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income tax (benefit) provision

The income tax provision (benefit) for the fiscal years 2022, 2021 and 2020 consisted of the following:

	2022		2021		2020
Current:
Federal	$	69	$	11	$	(20)
State	10		1		3
Current income tax provision (benefit)	79		12		(17)
Deferred:
Federal	3		31		(39)
State	14		7		(12)
Deferred income tax provision (benefit)	17		38		(51)
Total income tax provision (benefit)	$	96	$	50	$	(68)

Reconciliation of (benefit) provision for income taxes

The reconciliation of the provision (benefit) for income taxes at the U.S. federal statutory income tax rate of 21% to the Company’s income tax provision (benefit) for the fiscal years 2022, 2021, and 2020 is shown below: 

	2022		2021		2020
Federal income taxes computed at statutory rate	$	76	$	45	$	(62)
State income taxes, net of federal income tax benefit	21		10		(10)
Share-based compensation	(3)		(5)		1
Non-deductible expenses	7		5		7
Change in the valuation allowance for deferred tax assets	(12)		(7)		(1)
Net operating loss expirations	9		5		3
Tax credits	(1)		(1)		(3)
Change in unrecognized tax benefits	(1)		(2)		(3)
Total income tax provision (benefit)	$	96	$	50	$	(68)

Significant deferred tax assets and liabilities

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

	December 31, 2022		January 1, 2022
Deferred tax assets:
Operating lease liabilities	$	70	$	70
Workers’ compensation, general and fleet liabilities	43		45
Financing lease and other long term liabilities	80		71
Net operating loss carryforwards	48		68
Other deferred tax assets	114		97
Total gross deferred tax assets	355		351
Less valuation allowance	(16)		(28)
Total net deferred tax assets	339		323
Deferred tax liabilities:
Property and equipment	(166)		(195)
Operating lease assets	(66)		(68)
Inventories	(40)		(40)
Intangibles	(304)		(290)
Financing lease and other long term liabilities	(45)		—
Other deferred tax liabilities	(16)		(29)
Total deferred tax liabilities	(637)		(622)
Net deferred tax liability	$	(298)	$	(299)

Net deferred tax liabilities in balance sheet

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

	December 31, 2022		January 1, 2022
Noncurrent deferred tax assets	$	—	$	8
Noncurrent deferred tax liability	(298)		(307)
Net deferred tax liability	$	(298)	$	(299)

Net operating loss carryforwards expiration periods

The Company had tax affected state net operating loss carryforwards of $48 million as of December 31, 2022. The Company’s net operating loss carryforwards expire as follows:

	State
2023-2027	$	17
2028-2032	10
2033-2037	7
2038-2042	11
Indefinite	3
	$	48

Summary of activity in valuation allowance

A summary of the activity in the valuation allowance for the fiscal years 2022, 2021 and 2020 is as follows:

	2022		2021		2020
Balance as of beginning of year	$	28	$	35	36
(Benefit) expense recognized	(12)		(7)		(1)
Balance as of end of year	$	16	$	28	$	35

Reconciliation of unrecognized tax benefits

Reconciliation of the beginning and ending amount of unrecognized tax benefits as of fiscal years 2022, 2021, and 2020 was as follows:

Balance at December 28, 2019	$	39
Gross increases due to positions taken in prior years	3
Decreases due to lapses of statute of limitations	(1)
Decreases due to changes in tax rates	(5)
Positions assumed in business acquisition	3
Balance at January 2, 2021	39
Gross increases due to positions taken in prior years	5
Gross decreases due to positions taken in prior years	(2)
Decreases due to lapses of statute of limitations	(5)
Decreases due to settlements with taxing authorities	(5)
Balance at January 1, 2022	32
Decreases due to lapses of statute of limitations	(2)
Balance at December 31, 2022	$	30