Income Taxes (Tables)

12 Months Ended

Jan. 03, 2020

Income Tax Disclosure [Abstract]

Total Income Tax Expense

Total income tax expense for 2019, 2018 and 2017 consisted of the following:

	Fiscal Years
(In thousands)	2019			2018			2017
Current
Federal	$	16,498		$	16,487		$	22,821
Foreign		1,523			1,624			1,514
State		6,554			6,667			5,083
		24,575			24,778			29,418
Deferred
Federal		(1,727	)		(2,604	)		12,570
State		(1,118	)		(1,111	)		(784	)
		(2,845	)		(3,715	)		11,786
Total	$	21,730		$	21,063		$	41,204

Company's Effective Tax Rate Differs From Statutory Federal Tax Rate

The Company’s effective tax rate differs from the statutory federal tax rate of 21% for 2019 and 2018 and 35% for 2017 as shown in the following schedule:

	Fiscal Years
(In thousands)	2019			2018			2017
Tax at federal statutory rate	$	21,880		$	19,597		$	28,878
Re-measurement of deferred tax assets to lower enacted domestic    tax rate		—			—			15,137
Mandatory repatriation of foreign earnings		—			—			1,370
State taxes, net of federal benefit		4,129			4,391			2,806
Divestiture of foreign subsidiary		956			—			—
Nondeductible officer compensation		759			—			—
Non-deductible expenses		345			335			417
Non-deductible stock-based compensation		2			20			18
Excess tax benefit from equity incentive plans		(6,394	)		(3,310	)		(5,831	)
Difference between statutory rate and foreign effective tax rate		(341	)		(217	)		(1,339	)
Other		394			247			(252	)
Tax expense	$	21,730		$	21,063		$	41,204
Effective tax rate		20.9	%		22.6	%		49.9	%

Significant Portions of 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 3, 2020 and December 28, 2018 are presented in the following schedule:

	Fiscal Years
(In thousands)	2019			2018
Deferred tax assets:
Accrued liabilities and allowances	$	15,658		$	13,964
Deferred compensation plan		28,463			22,944
Operating leases		6,867			—
Property, equipment and leasehold improvements		—			192
Unrealized loss on deferred compensation plan assets		—			320
Other		—			34
Total deferred tax assets	$	50,988		$	37,454
Deferred tax liabilities:
State taxes	$	(1,624	)	$	(1,184	)
Deductible goodwill		(2,104	)		(2,086	)
Operating leases		(6,867	)		—
Property, equipment and leasehold improvements		(84	)		—
Unrealized gain of deferred compensation plan assets		(2,339	)		—
Divestiture of foreign subsidiary		(956	)
Other		(193	)		(94	)
Total deferred tax liabilities		(14,167	)		(3,364	)
Net deferred tax assets	$	36,821		$	34,090

Reconciliation of The Beginning and Ending Amount of Unrecognized Tax Benefits

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

Balance at December 29, 2017	$	1,789,000
Additions based on tax positions related to the current year		599,000
Reductions due to lapse of statute of limitations		(257,000	)
Reductions for tax positions of prior years		(383,000	)
Balance at December 28, 2018	$	1,748,000
Additions based on tax positions related to the current year		515,000
Reductions due to lapse of statute of limitations		(340,000	)
Balance at January 3, 2020	$	1,923,000