Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Significant Components of the Provision for Income Taxes

The following table presents the significant components of the provision for income taxes:

	Fiscal Year
(in thousands)	2017			2016			2015
Current:
Federal	$	12,978		$	(6,920	)	$	20,107
State		5,292			27			3,563
Total current provision (benefit)	$	18,270		$	(6,893	)	$	23,670
Deferred:
Federal	$	(54,232	)	$	39,644		$	10,638
State		(3,879	)		3,298			(230	)
Total deferred provision (benefit)	$	(58,111	)	$	42,942		$	10,408
Income tax expense (benefit)	$	(39,841	)	$	36,049		$	34,078

Reconciliation of Income Tax Expense at Statutory Federal Rate to Actual Income Tax Expense

The following table provides a reconciliation of income tax expense (benefit) at the statutory federal rate to actual income tax expense (benefit).

	Fiscal Year
	2017						2016						2015
(in thousands)	Income tax expense			% pre-tax income			Income tax expense			% pre-tax income			Income tax expense			% pre-tax income
Statutory expense	$	22,052			35.0	%	$	32,449			35.0	%	$	34,692			35.0	%
Adjustment for federal tax legislation		(69,014	)		(109.5	)		-			-			-			-
Meals and entertainment		2,771			4.4			1,879			2.0			1,666			1.7
Valuation allowance change		2,718			4.3			(689	)		(0.7	)		(1,332	)		(1.3	)
State income taxes, net of federal benefit		2,029			3.2			3,243			3.5			3,496			3.5
Noncontrolling interest – Piedmont		(1,692	)		(2.7	)		(2,406	)		(2.6	)		(2,261	)		(2.3	)
Adjustment for uncertain tax positions		(521	)		(0.8	)		(43	)		-			51			0.1
Adjustment for state tax legislation		-			-			(625	)		(0.7	)		(1,145	)		(1.2	)
Manufacturing deduction benefit		-			-			(56	)		(0.1	)		(1,330	)		(1.3	)
Bargain purchase gain		-			-			-			-			(704	)		(0.7	)
Other, net		1,816			2.9			2,297			2.5			945			0.9
Income tax expense (benefit)	$	(39,841	)	(63.2)%			$	36,049			38.9	%	$	34,078			34.4	%

Reconciliation of Uncertain Tax Positions Excluding Accrued Interest

A reconciliation of uncertain tax positions, excluding accrued interest, is as follows:

	Fiscal Year
(in thousands)	2017			2016			2015
Gross uncertain tax positions at the beginning of the year	$	2,679		$	2,633		$	2,620
Increase as a result of tax positions taken in the current period		966			687			547
Reduction as a result of the expiration of the applicable statute of limitations		(1,359	)		(641	)		(534	)
Gross uncertain tax positions at the end of the year	$	2,286		$	2,679		$	2,633

Temporary Differences and Carryforwards that Comprised Deferred Income Tax Assets and Liabilities

Temporary differences and carryforwards that comprised deferred income tax assets and liabilities were as follows:

(in thousands)	December 31, 2017			January 1, 2017
Acquisition related contingent consideration	$	94,055		$	97,573
Deferred compensation		27,097			44,185
Deferred revenue		18,704			-
Postretirement benefits		16,443			32,656
Accrued liabilities		15,523			21,666
Pension (nonunion)		8,303			17,381
Transactional costs		5,733			7,155
Capital lease agreements		3,377			5,817
Charitable contribution carryover		3,770			4,409
Pension (union)		1,922			3,162
Net operating loss carryforwards		1,923			2,148
Other		1,669			111
Deferred income tax assets	$	198,519		$	236,263
Less: Valuation allowance for deferred tax assets		4,337			1,618
Net deferred income tax asset	$	194,182		$	234,645
Intangible assets	$	(154,425	)	$	(204,661	)
Depreciation		(105,685	)		(134,872	)
Investment in Piedmont		(25,895	)		(45,128	)
Inventory		(9,781	)		(13,814	)
Prepaid expenses		(8,399	)		(6,300	)
Patronage dividend		(2,361	)		(4,724	)
Deferred income tax liabilities	$	(306,546	)	$	(409,499	)
Net deferred income tax liability	$	(112,364	)	$	(174,854	)