Income Taxes (Tables)

12 Months Ended

Dec. 30, 2016

Income Tax Disclosure [Abstract]

Total Income Tax Expense

Total income tax expense for fiscal years 2016, 2015 and 2014 consisted of the following:

	Fiscal Years
(In thousands)	2016		2015		2014
Current
Federal	$	18,877	$	25,081	$	26,647
Foreign		1,085		1,385		896
State		4,282		4,895		5,798
		24,244		31,361		33,341
Deferred
Federal		(2,047)		(3,411)		(5,059)
State		(555)		(416)		(1,018)
		(2,602)		(3,827)		(6,077)
Total	$	21,642	$	27,534	$	27,264

Reconciliation of Effective Income Tax Rate

The Company’s effective tax rate differs from the statutory federal tax rate of 35% as shown in the following schedule:

	Fiscal Years
(In thousands)	2016			2015			2014
Tax at federal statutory rate	$	24,193		$	24,897		$	23,788
State taxes, net of federal benefit		2,423			2,910			3,226
Tax exempt interest income		(7)			(23)			(44)
Non-deductible expenses		274			261			289
Non-deductible stock-based compensation		11			(42)			-
Excess tax benefit from equity incentive plans		(4,321)			-			-
Difference between statutory rate and foreign effective tax rate		(889)			(897)			(174)
Other		(42)			428			179
Tax expense	$	21,642		$	27,534		$	27,264
Effective tax rate		31.3	%		38.7	%		40.1	%

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 December 30, 2016 and January 1, 2016 are presented in the following schedule:

	Fiscal Years
(In thousands)	2016		2015
Deferred tax assets:
Accrued liabilities and allowances	$	18,335	$	17,780
Deferred compensation		30,603		27,425
Other		97		43
Total deferred tax assets		49,035		45,248
Deferred tax liabilities:
State taxes		(1,958)		(1,850)
Deductible goodwill		(3,075)		(3,014)
Property, equipment and leasehold improvements		(195)		(205)
Unrealized gain of deferred compensation plan assets		(1,641)		(723)
Total deferred tax liabilities		(6,869)		(5,792)
Net deferred tax assets	$	42,166	$	39,456

Unrecognized Tax Benefits

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

Balance at January 2, 2015	$	1,546,000
Additions based on tax positions related to the current year		406,000
Additions for tax positions of prior years		80,000
Reductions due to lapse of statute of limitations		(154,000)
Reductions due to change in accounting method		-
Settlements		-
Balance at January 1, 2016	$	1,878,000
Additions based on tax positions related to the current year		502,000
Additions for tax positions of prior years		6,000
Reductions due to lapse of statute of limitations		(430,000)
Reductions due to change in accounting method		-
Settlements		-
Balance at December 30, 2016	$	1,956,000