Income Taxes (Tables)

12 Months Ended

Dec. 30, 2017

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



	2017		2016			2015
Current tax expense:
Federal	$	207,986	$	221,207		$	225,253
State	14,516		20,858			17,419
Total current	222,502		242,065			242,672

Deferred tax expense (benefit):
Federal	22,469		12,256			(7,017		)
State	4,953		(3,171		)	1,567
Total deferred	27,422		9,085			(5,450		)
Total provision	$	249,924	$	251,150		$	237,222

Deferred tax assets and liabilities

Significant components of the deferred tax assets and liabilities are as follows (in thousands):



	2017			2016
Tax assets:
Inventory valuation	$	13,029		$	19,713
Accrued employee benefits costs	7,092			14,120
Accrued sales tax audit reserve	3,479			4,317
Rent expenses in excess of cash payments required	24,728			35,391
Deferred compensation	20,299			23,978
Workers’ compensation insurance	9,153			13,565
General liability insurance	4,265			5,332
Lease exit obligations	1,829			2,617
Income tax credits	4,206			4,265
Other	6,997			7,311
	95,077			130,609
Tax liabilities:
Inventory basis difference	(4,141		)	(4,600		)
Prepaid expenses	(1,423		)	(2,912		)
Depreciation	(65,650		)	(73,336		)
Amortization	(3,818		)	(2,419		)
Other	(1,551		)	(2,124		)
	(76,583		)	(85,391		)

Net deferred tax asset	$	18,494		$	45,218

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):



	2017			2016			2015
Tax provision at statutory rate	$	235,383		$	240,894		$	226,666
Tax effect of:
State income taxes, net of federal tax benefits	14,320			15,527			13,976
Tax credits, net of federal tax benefits	(5,060		)	(7,227		)	(3,763		)
Stock-based compensation programs	(1,040		)	—			—
Enactment of tax legislation	4,856			—			—
Other	1,465			1,956			343
Total income tax expense	$	249,924		$	251,150		$	237,222

Reconciliation of gross unrecognized tax benefits

A reconciliation of the beginning and ending gross amount of unrecognized tax benefits (exclusive of interest and penalties) is as follows (in thousands):



	2017			2016			2015
Balance at beginning of year	$	1,579		$	2,922		$	3,500
Additions based on tax positions related to the current year	527			460			869
Additions for tax positions of prior years	14			139			—
Reductions for tax positions of prior years	(127		)	(1,829		)	(1,447		)
Reductions due to audit results	—			(113		)	—
Balance at end of year	$	1,993		$	1,579		$	2,922