Income Taxes (Tables)

12 Months Ended

Dec. 30, 2023

Income Tax Disclosure [Abstract]

Income tax (benefit) provision

The income tax provision for the fiscal years 2023, 2022 and 2021 consisted of the following:

	2023		2022		2021
Current:
Federal	$	140	$	69	$	11
State	23		10		1
Current income tax provision	163		79		12
Deferred:
Federal	(4)		3		31
State	13		14		7
Deferred income tax provision	9		17		38
Total income tax provision	$	172	$	96	$	50

Reconciliation of (benefit) provision for income taxes

The reconciliation of the provision for income taxes at the U.S. federal statutory income tax rate of 21% to the Company’s income tax provision for the fiscal years 2023, 2022 and 2021 is shown below: 

	2023		2022		2021
Federal income taxes computed at statutory rate	$	142	$	76	$	45
State income taxes, net of federal income tax benefit	35		21		10
Share-based compensation	(5)		(3)		(5)
Non-deductible expenses	10		7		5
Change in the valuation allowance for deferred tax assets	(6)		(12)		(7)
Net operating loss expirations	1		9		5
Tax credits	(2)		(1)		(1)
Change in unrecognized tax benefits	(3)		(1)		(2)
Total income tax provision	$	172	$	96	$	50

Significant deferred tax assets and liabilities

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

	December 30, 2023		December 31, 2022
Deferred tax assets:
Operating lease liabilities	$	77	$	70
Workers’ compensation, general and fleet liabilities	47		43
Financing lease and other long term liabilities	109		80
Net operating loss carryforwards	37		48
Other deferred tax assets	108		114
Total gross deferred tax assets	378		355
Less valuation allowance	(10)		(16)
Total net deferred tax assets	368		339
Deferred tax liabilities:
Property and equipment	(220)		(166)
Operating lease assets	(73)		(66)
Inventories	(16)		(40)
Intangibles	(296)		(304)
Financing lease and other long term liabilities	(46)		(45)
Other deferred tax liabilities	(10)		(16)
Total deferred tax liabilities	(661)		(637)
Net deferred tax liability	$	(293)	$	(298)

Net deferred tax liabilities in balance sheet

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

	December 30, 2023		December 31, 2022
Noncurrent deferred tax assets	$	—	$	—
Noncurrent deferred tax liability	(293)		(298)
Net deferred tax liability	$	(293)	$	(298)

Net operating loss carryforwards expiration periods

The Company had tax affected state net operating loss carryforwards of $37 million as of December 30, 2023. The Company’s net operating loss carryforwards expire as follows:

	State
2024-2028	$	12
2029-2033	7
2034-2038	5
2039-2043	11
Indefinite	2
	$	37

Summary of activity in valuation allowance

A summary of the activity in the valuation allowance for the fiscal years 2023, 2022 and 2021 is as follows:

	2023		2022		2021
Balance as of beginning of year	$	16	$	28	35
Benefit recognized	(6)		(12)		(7)
Balance as of end of year	$	10	$	16	$	28

Reconciliation of unrecognized tax benefits

Reconciliation of the beginning and ending amount of unrecognized tax benefits as of fiscal years 2023, 2022 and 2021 was as follows:

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 January 1, 2023	30
Decreases due to lapses of statute of limitations	$	(4)
Balance at December 30, 2023	$	26