Income Taxes (Tables)

12 Months Ended

Dec. 29, 2019

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)	2019			2018			2017
Current:
Federal	$	7,505		$	(4,228	)	$	12,978
State		4,173			(3,269	)		5,292
Total current provision (benefit)	$	11,678		$	(7,497	)	$	18,270
Deferred:
Federal	$	4,514		$	5,701		$	(54,232	)
State		(527	)		3,665			(3,879	)
Total deferred provision (benefit)	$	3,987		$	9,366		$	(58,111	)
Income tax expense (benefit)	$	15,665		$	1,869		$	(39,841	)

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
	2019						2018						2017
(in thousands)	Income tax expense			% pre-tax income			Income tax expense			% pre-tax income			Income tax expense			% pre-tax income
Statutory (income) / expense	$	7,187			21.0	%	$	(2,790	)		21.0	%	$	22,052			35.0	%
Nondeductible compensation		4,313			12.6			2,851			(21.5	)		230			0.4
Meals, entertainment and travel expense		2,440			7.1			2,734			(20.6	)		3,684			5.8
Noncontrolling interest – Piedmont		(1,826	)		(5.3	)		(1,238	)		9.3			(1,692	)		(2.7	)
State income taxes, net of federal benefit		1,352			4.0			(376	)		2.8			2,029			3.2
Valuation allowance change		1,290			3.8			1,566			(11.8	)		2,718			4.3
Nondeductible fees and expenses		887			2.6			568			(4.3	)		1,151			1.8
Adjustment for uncertain tax positions		(805	)		(2.4	)		694			(5.2	)		(521	)		(0.8	)
Adjustment for federal tax legislation		-			-			(1,989	)		15.0			(69,014	)		(109.5	)
Other, net		827			2.4			(151	)		1.2			(478	)		(0.7	)
Income tax expense (benefit)	$	15,665			45.8	%	$	1,869		(14.1)%			$	(39,841	)	(63.2)%

Reconciliation of Uncertain Tax Positions Excluding Accrued Interest

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

	Fiscal Year
(in thousands)	2019			2018		2017
Gross uncertain tax positions at the beginning of the year	$	2,857		$	2,286	$	2,679
Increase as a result of tax positions taken in the current period		60			571		966
Reduction as a result of the expiration of the applicable statute of limitations		(634	)		-		(1,359	)
Gross uncertain tax positions at the end of the year	$	2,283		$	2,857	$	2,286

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 29, 2019			December 30, 2018
Acquisition related contingent consideration	$	110,036		$	94,323
Operating lease liabilities		27,346			-
Deferred compensation		26,788			26,154
Deferred revenue		24,936			25,027
Accrued liabilities		19,266			18,485
Pension		14,124			7,031
Postretirement benefits		13,250			13,843
Charitable contribution carryover		6,622			5,723
Transactional costs		4,857			5,291
Financing or capital lease agreements		2,432			2,871
Net operating loss carryforwards		2,012			7,628
Other		3,022			4,198
Deferred income tax assets	$	254,691		$	210,574
Less: Valuation allowance for deferred tax assets		7,190			5,899
Net deferred income tax asset	$	247,501		$	204,675
Intangible assets	$	(151,940	)	$	(154,974	)
Depreciation		(147,140	)		(131,856	)
Right of use assets - operating leases		(26,997	)		-
Investment in Piedmont		(23,287	)		(24,540	)
Inventory		(12,631	)		(10,553	)
Prepaid expenses		(7,627	)		(8,680	)
Patronage dividend		(3,009	)		(1,246	)
Deferred income tax liabilities	$	(372,631	)	$	(331,849	)
Net deferred income tax liability	$	(125,130	)	$	(127,174	)