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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The current income tax provision represents the estimated amount of income taxes paid or payable for the year, as well as changes in estimates from prior years. The deferred income tax provision represents the change in deferred tax liabilities and assets. The following table presents the significant components of the provision for income taxes:

 Fiscal Year
(in thousands)202120202019
Current:
Federal$59,308 $38,665 $7,505 
State15,444 11,541 4,173 
Total current provision$74,752 $50,206 $11,678 
Deferred:   
Federal$(4,966)$8,052 $4,514 
State(4,217)685 (527)
Total deferred provision (benefit)$(9,183)$8,737 $3,987 
Income tax expense$65,569 $58,943 $15,665 

The Company’s effective income tax rate, calculated by dividing income tax expense by income before taxes, was 25.7% for 2021, 24.5% for 2020 and 45.8% for 2019. The following table provides a reconciliation of income tax expense at the statutory federal rate to actual income tax expense:

 Fiscal Year
 202120202019
(in thousands)Income
tax expense		% pre-tax
income		Income
tax expense		% pre-tax
income		Income
tax expense		% pre-tax
income
Statutory expense$53,581 21.0 %$50,618 21.0 %$7,187 21.0 %
State income taxes, net of federal benefit9,522 3.7 9,258 3.8 1,352 4.0 
Nondeductible compensation3,545 1.4 3,007 1.3 4,313 12.6 
Meals, entertainment and travel expense2,028 0.8 1,476 0.6 2,440 7.1 
Adjustment for uncertain tax positions(984)(0.4)114 — (805)(2.4)
Valuation allowance change(902)(0.4)(1,900)(0.8)1,290 3.8 
Nondeductible fees and expenses47 — 311 0.1 887 2.6 
Noncontrolling interest – Piedmont— — (2,447)(1.0)(1,826)(5.3)
Other, net(1,268)(0.4)(1,494)(0.5)827 2.4 
Income tax expense$65,569 25.7 %$58,943 24.5 %$15,665 45.8 %

The Company’s effective income tax rate, calculated by dividing income tax expense by income before taxes minus net income attributable to noncontrolling interest, was 25.5% for 2020 and 57.9% for 2019. The Company had no net income attributable to noncontrolling interest during 2021.

The Company records liabilities for uncertain tax positions related to income tax positions. These liabilities reflect the Company’s best estimate of the ultimate income tax liability based on known facts and information. Material changes in facts or information, as well as the expiration of statutes of limitations and/or settlements with individual tax jurisdictions, may result in material adjustments to these estimates in the future.

The Company recognizes potential interest and penalties related to uncertain tax positions in income tax expense. During 2021, 2020 and 2019, the interest and penalties related to uncertain tax positions recognized in income tax expense were not material. In addition, the amount of interest and penalties accrued at December 31, 2021 and December 31, 2020 were not material.

The Company had uncertain tax positions, including accrued interest, of $1.7 million on December 31, 2021 and $2.6 million on December 31, 2020, all of which would affect the Company’s effective income tax rate if recognized. While it is expected the amount of uncertain tax positions may change in the next 12 months, the Company does not expect such change would have a significant impact on the consolidated financial statements.
A reconciliation of uncertain tax positions, excluding accrued interest, is as follows:

 Fiscal Year
(in thousands)202120202019
Beginning balance - gross uncertain tax positions$2,161 $2,283 $2,857 
Increase as a result of tax positions taken in the current year59 61 60 
Increase as a result of tax positions taken in a prior year— 504 — 
Reduction as a result of the expiration of the applicable statute of limitations(966)(687)(634)
Ending balance - gross uncertain tax positions$1,254 $2,161 $2,283 

Deferred income taxes are recorded based upon temporary differences between the financial statement and tax bases of assets and liabilities and available net operating loss and tax credit carryforwards. Temporary differences and carryforwards that comprised deferred income tax assets and liabilities were as follows:

(in thousands)December 31, 2021December 31, 2020
Acquisition related contingent consideration$133,114 $107,769 
Operating lease liabilities35,382 34,632 
Deferred revenue26,852 27,882 
Accrued liabilities26,253 22,341 
Deferred compensation24,018 26,269 
Postretirement benefits13,969 14,726 
Pension4,617 11,055 
Transactional costs3,976 4,451 
Financing lease agreements1,820 1,618 
Net operating loss carryforwards1,418 1,628 
Charitable contribution carryover631 3,236 
Other3,199 10,138 
Deferred income tax assets$275,249 $265,745 
Less: Valuation allowance for deferred tax assets4,372 5,325 
Net deferred income tax asset$270,877 $260,420 
Intangible assets$(177,214)$(182,585)
Depreciation(173,124)(159,359)
Right-of-use assets - operating leases(34,347)(33,316)
Inventory(13,481)(13,709)
Prepaid expenses(6,774)(6,319)
Patronage dividend(2,369)(4,555)
Deferred income tax liabilities$(407,309)$(399,843)
Net deferred income tax liability$(136,432)$(139,423)

The Company’s deferred income tax assets and liabilities are subject to adjustment in future periods based on the Company’s ongoing evaluations of such deferred assets and liabilities and new information available to the Company.

Valuation allowances are recognized on deferred tax assets if the Company believes it is more likely than not that some or all of the deferred tax assets will not be realized. The Company believes the majority of the deferred tax assets will be realized due to the reversal of certain significant temporary differences and anticipated future taxable income from operations.

The valuation allowance of $4.4 million on December 31, 2021 and $5.3 million on December 31, 2020 was established primarily for certain loss carryforwards and deferred compensation.

As of December 31, 2021, the Company had no federal net operating losses and $29.8 million of state net operating losses available to reduce future income taxes, which expire in varying amounts through 2041.

Prior tax years beginning in year 2018 remain open to examination by the Internal Revenue Service, and various tax years beginning in year 1999 remain open to examination by certain state tax jurisdictions due to loss carryforwards.