Income Taxes (Tables)

12 Months Ended

Dec. 29, 2012

Income Tax Disclosure [Abstract]

Provision for income taxes

The provision for income taxes consists of the following (in thousands):

	2012			2011			2010
Current tax expense:
Federal	$	165,519		$	112,142		$	85,854
State	20,342			13,878			7,444
Total current	185,861			126,020			93,298
Deferred tax expense (benefit):
Federal	(20,857		)	3,220			2,116
State	(5,724		)	(1,364		)	1,554
Total deferred	(26,581		)	1,856			3,670
Total provision	$	159,280		$	127,876		$	96,968

Deferred tax assets and liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.  Significant components of the deferred tax assets and liabilities are as follows (in thousands):

	2012			2011
Current tax assets:
Inventory valuation	$	11,981		$	10,171
Accrued employee benefit costs	27,636			24,807
Accrued sales taxes	3,564			4,221
Other	8,439			9,251
	51,620			48,450
Current tax liabilities:
Inventory basis difference	(26,182		)	(37,730		)
Prepaid expenses	(1,541		)	(1,055		)
Other	(799		)	(798		)
	(28,522		)	(39,583		)
Net current tax asset	$	23,098		$	8,867
Non-current tax assets:
Capital lease obligation basis difference	$	1,001		$	1,010
Rent expenses in excess of cash payments required	25,263			23,584
Deferred compensation	17,970			15,555
Other	4,574			3,620
Valuation allowance	(862		)	(1,637		)
	47,946			42,132
Non-current tax liabilities:
Depreciation	(47,219		)	(54,047		)
Capital lease assets basis difference	(511		)	(531		)
Other	(1,693		)	(1,381		)
	(49,423		)	(55,959		)
Net non-current tax liability	$	(1,477	)	$	(13,827	)
Net deferred tax asset (liability)	$	21,621		$	(4,960	)

Reconciliation of the provision for income taxes to the amounts computed at the federal statutory rate

A reconciliation of the provision for income taxes to the amounts computed at the federal statutory rate is as follows (in thousands):

	2012			2011			2010
Tax provision at statutory rate	$	152,508		$	122,715		$	92,729
Tax effect of:
State income taxes, net of federal tax benefits	9,502			8,134			5,848
Permanent differences	(2,730		)	(2,973		)	(1,609		)
	$	159,280		$	127,876		$	96,968

Reconciliation of gross unrecognized tax benefits

The total amount of unrecognized tax benefits that, if recognized, would decrease the effective tax rate, is $4.7 million at December 29, 2012. In addition, we recognize current interest and penalties accrued related to these uncertain tax positions as interest expense, and the amount is not material to the Consolidated Statements of Income.  The Company estimates the overall decrease in unrecognized tax benefits in the next twelve months will range between $0.6 million and $1.1 million.  A reconciliation of the beginning and ending gross amount of unrecognized tax benefits (exclusive of interest and penalties) is as follows (in thousands):

	2012			2011			2010
Balance at beginning of year	$	5,774		$	4,801		$	4,084
Additions based on tax positions related to the current year	1,358			1,611			1,453
Additions for tax positions of prior years	—			—			—
Reductions for tax positions of prior years	(1,234		)	(638		)	(736		)
Reductions due to audit results	—			—			—
Balance at end of year	$	5,898		$	5,774		$	4,801