Income Taxes (Tables)

12 Months Ended

Dec. 28, 2024

Income Tax Disclosure [Abstract]

Income tax (benefit) provision

The income tax provision for the fiscal years 2024, 2023 and 2022 consisted of the following:

	2024		2023		2022
Current:
Federal	$	139	$	140	$	69
State	21		23		10
Current income tax provision	160		163		79
Deferred:
Federal	(24)		(4)		3
State	14		13		14
Deferred income tax provision	(10)		9		17
Total income tax provision	$	150	$	172	$	96

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 2024, 2023 and 2022 is shown below: 

	2024		2023		2022
Federal income taxes computed at statutory rate	$	135	$	142	$	76
State income taxes, net of federal income tax benefit	31		35		21
Stock-based compensation	(9)		(5)		(3)
Non-deductible expenses	12		10		7
Change in the valuation allowance for deferred tax assets	(3)		(6)		(12)
Net operating loss expirations	1		1		9
Tax credits	—		(2)		(1)
Change in unrecognized tax benefits	(17)		(3)		(1)
Total income tax provision	$	150	$	172	$	96

Significant deferred tax assets and liabilities

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

	December 28, 2024		December 30, 2023
Deferred tax assets:
Operating lease liabilities	$	73	$	77
Workers’ compensation, general and fleet liabilities	55		47
Financing lease and other long term liabilities	118		109
Net operating loss carryforwards	30		37
Other deferred tax assets	89		108
Total gross deferred tax assets	365		378
Less valuation allowance	(7)		(10)
Total net deferred tax assets	358		368
Deferred tax liabilities:
Property and equipment	(227)		(220)
Operating lease assets	(68)		(73)
Inventories	(17)		(16)
Intangibles	(311)		(296)
Financing lease and other long term liabilities	(46)		(46)
Other deferred tax liabilities	(24)		(10)
Total deferred tax liabilities	(693)		(661)
Net deferred tax liability	$	(335)	$	(293)

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, 2024		December 30, 2023
Noncurrent deferred tax assets	$	—	$	—
Noncurrent deferred tax liability	(335)		(293)
Net deferred tax liability	$	(335)	$	(293)

Net operating loss carryforwards expiration periods

The Company had tax affected state net operating loss carryforwards of $30 million as of December 28, 2024. The Company’s net operating loss carryforwards expire as follows:

	State
2025-2029	$	8
2030-2034	5
2035-2039	13
2040-2044	1
Indefinite	3
	$	30

Summary of activity in valuation allowance

A summary of the activity in the valuation allowance for the fiscal years 2024, 2023 and 2022 is as follows:

	2024		2023		2022
Balance at beginning of year	$	10	$	16	28
Benefit recognized	(3)		(6)		(12)
Balance at end of year	$	7	$	10	$	16

Schedule of Unrecognized Tax Benefits Roll Forward

Reconciliation of the beginning and ending amount of unrecognized tax benefits as of fiscal years 2024, 2023 and 2022 was as follows:

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
Decreases due to lapses of statute of limitations	(18)
Positions assumed in a business combination	2
Balance at December 28, 2024	$	10