Income Taxes (Tables)

12 Months Ended

Jan. 02, 2016

Income tax expense from continuing operations for the years ended January 2, 2016, January 3, 2015 and December 28, 2013 consists of the following:



(in thousands)	2015			2014		2013
Current:
Federal	$	22,479		$	23,659	$	19,855
State and other	3,842			2,693		3,963
Foreign	131			301		—
	$	26,452		$	26,653	$	23,818
Deferred:
Federal	$	3,109		$	28	$	6,562
State and other	(676		)	5,610		1,917
	$	2,433		$	5,638	$	8,479
Income tax expense	$	28,885		$	32,291	$	32,297

Reconciliations Of The Federal Income Tax Rate

Reconciliations of the federal income tax rate to our effective income tax rate for the years ended January 2, 2016, January 3, 2015 and December 28, 2013 are as follows:



	2015		2014		2013
Statutory income tax rate	35.0	%	35.0	%	35.0	%
State and local income taxes, net of federal income tax benefit	2.6	%	5.9	%	4.2	%
Non-deductible goodwill on sale of route businesses	0.4	%	0.1	%	0.2	%
Deduction for inventory contributions	(0.3	)%	(0.3	)%	(0.1	)%
Meals and entertainment	0.5	%	0.4	%	0.5	%
IRC 199 deduction	(2.6	)%	(2.6	)%	(1.4	)%
Change in uncertain tax positions	(1.5	)%	(2.8	)%	(0.1	)%
Non-deductible transaction costs	2.0	%	—	%	—	%
Miscellaneous items, net	0.2	%	(0.4	)%	(1.6	)%
Effective income tax rate	36.3	%	35.3	%	36.7	%

Significant Portions Of The Deferred Tax Assets And Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at January 2, 2016 and January 3, 2015, are presented below:



(in thousands)	2015			2014
Deferred tax assets:
Reserves for employee compensation, deductible when paid for income tax purposes, accrued for financial reporting purposes	$	17,033		$	20,803
Reserves for insurance claims, deductible when paid for income tax purposes, accrued for financial reporting purposes	4,235			4,834
Other reserves, deductible when paid for income tax purposes, accrued for financial reporting purposes	7,355			3,614
Unrealized losses, deductible when realized for income tax purposes, included in other comprehensive income	425			194
Basis difference in fixed rate debt	616			1,056
Inventories, principally due to additional costs capitalized for income tax purposes	2,435			3,948
Net state operating loss and tax credit carryforwards	2,459			2,345
Total gross deferred tax assets	$	34,558		$	36,794
Less valuation allowance	(637		)	(626		)
Net deferred tax assets	$	33,921		$	36,168
Deferred tax liabilities:
Fixed assets, principally due to differences in depreciation, net of impairment reserves	$	(53,939	)	$	(59,485	)
Intangible assets, principally due to differences in amortization and acquisition basis differences	(122,846		)	(117,141		)
Employee compensation, principally due to change in method of accounting	(2,582		)	(3,900		)
Basis difference in noncurrent investments	(7,377		)	(5,734		)
Prepaid expenses and other costs deductible for tax, amortized for financial reporting purposes	(4,768		)	(5,312		)
Total gross deferred tax liabilities	$	(191,512	)	$	(191,572	)

Deferred income taxes, net	$	(157,591	)	$	(155,404	)

Open Years For Income Tax Audit Purposes In Major Taxing Jurisdictions

We have open years for income tax audit purposes in our major taxing jurisdictions according to statutes as follows:



Jurisdiction		Open Years
U.S. federal		2012 and forward
Canada federal		2012 and forward
Ontario provincial		2010 and forward
North Carolina		2010 and forward
New York		2009 and forward
Illinois		2009 and forward

Schedule Of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of the gross unrecognized tax benefits is as follows:



(in thousands)	Amount
Balance at December 28, 2013	$	10,916
Additions for tax positions taken during the current period	386
Reductions resulting from settlements	(6,962		)
Reductions resulting from a lapse of the statute of limitations	(614		)
Balance at January 3, 2015	$	3,726
Additions for tax positions taken during the current period	278
Additions for tax positions taken during a prior period	338
Reductions resulting from a lapse of the statute of limitations	(1,607		)
Balance at January 2, 2016	$	2,735