Income Taxes (Tables)

12 Months Ended

Dec. 28, 2019

Income Tax Disclosure [Abstract]

Provision for income taxes

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

	Fiscal Year
	2019		2018		2017
Current tax expense:
Federal	$	128,490	$	123,388	$	207,986
State	25,091		15,597		14,516
Total current	153,581		138,985		222,502
Deferred tax expense (benefit):
Federal	11,770		9,650		22,469
State	(4,328)		2,393		4,953
Total deferred	7,442		12,043		27,422
Total provision	$	161,023	$	151,028	$	249,924

Deferred tax assets and liabilities

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

	December 28, 2019		December 29, 2018
Tax assets:
Inventory valuation	$	16,676	$	14,417
Accrued employee benefits costs	12,002		15,333
Accrued sales tax audit reserve	4,173		3,419
Rent expenses in excess of cash payments required	30,975		25,628
Deferred compensation	14,836		17,598
Workers’ compensation insurance	10,154		9,900
General liability insurance	6,025		5,410
Lease exit obligations	2,087		2,010
Income tax credits	6,377		5,773
Other	5,768		9,160
	109,073		108,648
Tax liabilities:
Inventory basis difference	(4,667)		(4,590)
Prepaid expenses	(2,024)		(1,912)
Depreciation	(93,919)		(87,417)
Amortization	(8,230)		(6,039)
Other	(386)		(2,083)
	(109,226)		(102,041)
Net deferred tax (liability)/asset	$	(153)	$	6,607

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):

	Fiscal Year
	2019		2018		2017
Tax provision at statutory rate	$	151,909	$	143,511	$	235,383
Tax effect of:
State income taxes, net of federal tax benefits	19,722		18,019		14,320
Section 162(m) limitation	2,572		2,581		1,223
Tax credits, net of federal tax benefits	(7,768)		(7,140)		(5,060)
Share-based compensation programs	(4,484)		(4,522)		(1,040)
Enactment of tax legislation	—		—		4,856
Other	(928)		(1,421)		242
Total income tax expense	$	161,023	$	151,028	$	249,924

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):

	Fiscal Year
	2019		2018		2017
Balance at beginning of year	$	2,451	$	1,993	$	1,579
Additions based on tax positions related to the current year	650		621		527
Additions for tax positions of prior years	59		257		14
Reductions for tax positions of prior years	(400)		(420)		(127)
Balance at end of year	$	2,760	$	2,451	$	1,993