Income Taxes (Tables)

12 Months Ended

Dec. 30, 2018

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)	2018			2017			2016
Current:
Federal	$	(4,228	)	$	12,978		$	(6,920	)
State		(3,269	)		5,292			27
Total current provision (benefit)	$	(7,497	)	$	18,270		$	(6,893	)
Deferred:
Federal	$	5,701		$	(54,232	)	$	39,644
State		3,665			(3,879	)		3,298
Total deferred provision (benefit)	$	9,366		$	(58,111	)	$	42,942
Income tax expense (benefit)	$	1,869		$	(39,841	)	$	36,049

Reconciliation of Income Tax Expense (benefit) at Statutory Federal Rate to Actual Income Tax Expense (benefit)

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

	Fiscal Year
	2018						2017						2016
(in thousands)	Income tax expense			% pre-tax income			Income tax expense			% pre-tax income			Income tax expense			% pre-tax income
Statutory (income) / expense	$	(2,790	)		21.0	%	$	22,052			35.0	%	$	32,449			35.0	%
Nondeductible compensation		2,851			(21.5	)		230			0.4			191			0.2
Meals, entertainment and travel expense		2,734			(20.6	)		3,684			5.8			2,886			3.0
Adjustment for federal tax legislation		(1,989	)		15.0			(69,014	)		(109.5	)		-			-
Valuation allowance change		1,566			(11.8	)		2,718			4.3			(689	)		(0.7	)
Noncontrolling interest – Piedmont		(1,238	)		9.3			(1,692	)		(2.7	)		(2,406	)		(2.6	)
Adjustment for uncertain tax positions		694			(5.2	)		(521	)		(0.8	)		(43	)		-
State income taxes, net of federal benefit		(376	)		2.8			2,029			3.2			3,243			3.5
Other, net		417			(3.1	)		673			1.1			418			0.5
Income tax expense (benefit)	$	1,869		(14.1)%			$	(39,841	)	(63.2)%			$	36,049			38.9	%

Reconciliation of Uncertain Tax Positions Excluding Accrued Interest

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

	Fiscal Year
(in thousands)	2018		2017			2016
Gross uncertain tax positions at the beginning of the year	$	2,286	$	2,679		$	2,633
Increase as a result of tax positions taken in the current period		571		966			687
Reduction as a result of the expiration of the applicable statute of limitations		-		(1,359	)		(641	)
Gross uncertain tax positions at the end of the year	$	2,857	$	2,286		$	2,679

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 30, 2018			December 31, 2017
Acquisition related contingent consideration	$	94,323		$	94,055
Deferred compensation		26,154			27,097
Deferred revenue		25,027			18,704
Accrued liabilities		18,485			15,523
Postretirement benefits		13,843			16,443
Net operating loss carryforwards		7,628			1,923
Charitable contribution carryover		5,723			3,770
Pension (nonunion)		5,307			8,303
Transactional costs		5,291			5,733
Capital lease agreements		2,871			3,377
Pension (union)		1,724			1,922
Other		4,198			1,669
Deferred income tax assets	$	210,574		$	198,519
Less: Valuation allowance for deferred tax assets		5,899			4,337
Net deferred income tax asset	$	204,675		$	194,182
Intangible assets	$	(154,974	)	$	(154,425	)
Depreciation		(131,856	)		(105,685	)
Investment in Piedmont		(24,540	)		(25,895	)
Inventory		(10,553	)		(9,781	)
Prepaid expenses		(8,680	)		(8,399	)
Patronage dividend		(1,246	)		(2,361	)
Deferred income tax liabilities	$	(331,849	)	$	(306,546	)
Net deferred income tax liability	$	(127,174	)	$	(112,364	)