XML 32 R18.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes: The provision for income taxes consists of the following (in thousands):
| 2016 |  | 2015 |  | 2014
Current tax expense: |  |  |  |  |
Federal | $ | 221,207 |  |  | $ | 225,253 |  |  | $ | 211,383 |
State | 20,858 |  |  | 17,419 |  |  | 25,133 |
Total current | 242,065 |  |  | 242,672 |  |  | 236,516 |
Deferred tax expense (benefit): |  |  |  |  |  |
Federal | 12,256 |  |  | (7,017 | ) |  | (14,493 | )
State | (3,171 | ) |  | 1,567 |  |  | (5,321 | )
Total deferred | 9,085 |  |  | (5,450 | ) |  | (19,814 | )
Total provision | $ | 251,150 |  |  | $ | 237,222 |  |  | $ | 216,702 |
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. In the first quarter of fiscal 2016, the Company adopted accounting guidance which affected the presentation of deferred tax liabilities and assets. This guidance was applied retrospectively for all periods presented and therefore the presentation of previously reported deferred tax assets has been changed to conform to the presentation used in the current period. Significant components of the deferred tax assets and liabilities are as follows (in thousands):
| 2016 |  | 2015
Tax assets: |  |  |
Inventory valuation | $ | 19,713 |  |  | $ | 18,147 |
Accrued employee benefit costs | 14,120 |  |  | 16,485 |
Accrued sales tax audit reserve | 4,317 |  |  | 4,821 |
Rent expenses in excess of cash payments required | 35,391 |  |  | 30,788 |
Deferred compensation | 23,978 |  |  | 20,125 |
Workers’ compensation insurance | 13,565 |  |  | 12,116 |
General liability insurance | 5,332 |  |  | 4,853 |
Lease exit obligations | 2,617 |  |  | 2,378 |
Income tax credits | 4,265 |  |  | 2,316 |
Other | 7,311 |  |  | 8,831 |
| 130,609 |  |  | 120,860 |
Tax liabilities: |  |  |  |  |
Inventory basis difference | (4,600 | ) |  | (3,497 | )
Prepaid expenses | (2,912 | ) |  | (2,108 | )
Depreciation | (73,336 | ) |  | (55,805 | )
Amortization | (2,419 | ) |  | (2,435 | )
Other | (2,124 | ) |  | (1,821 | )
| (85,391 | ) |  | (65,666 | )
Net deferred tax asset | $ | 45,218 |  |  | $ | 55,194 |
The Company has evaluated the need for a valuation allowance for all or a portion of the deferred tax assets. The Company believes that all of the deferred tax assets will more likely than not be realized through future earnings. The Company had state tax credit carryforwards of $7.5 million and $4.4 million as of December 31, 2016 and December 26, 2015, respectively, with varying dates of expiration between 2017 and 2030. The Company provided no valuation allowance as of December 31, 2016 and December 26, 2015 for state tax credit carryforwards, as the Company believes it is more likely than not that all of these credits will be utilized before their expiration dates. A reconciliation of the provision for income taxes to the amounts computed at the federal statutory rate is as follows (in thousands):
| 2016 |  | 2015 |  | 2014
Tax provision at statutory rate | $ | 240,894 |  |  | $ | 226,666 |  |  | $ | 205,656 |
Tax effect of: |  |  |  |  |
State income taxes, net of federal tax benefits | 11,496 |  |  | 12,341 |  |  | 12,878 |
Permanent differences | (1,240 | ) |  | (1,785 | ) |  | (1,832 | )
| $ | 251,150 |  |  | $ | 237,222 |  |  | $ | 216,702 |
The Company and its affiliates file income tax returns in the United States and various state and local jurisdictions. With few exceptions, the Company is no longer subject to federal, state and local income tax examinations by tax authorities for years before 2012. Various states have completed an examination of our income tax returns for 2011 through 2014 with minimal adjustments. The total amount of unrecognized tax positions that, if recognized, would decrease the effective tax rate, is $1.1 million at December 31, 2016. In addition, the Company recognizes 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 has considered the reasonably possible expected net change in uncertain tax positions during the next 12 months, and does not expect any material changes to our liability for uncertain tax positions through December 30, 2017. A reconciliation of the beginning and ending gross amount of unrecognized tax benefits (exclusive of interest and penalties) is as follows (in thousands):
| 2016 |  | 2015 |  | 2014
Balance at beginning of year | $ | 2,922 |  |  | $ | 3,500 |  |  | $ | 2,482 |
Additions based on tax positions related to the current year | 460 |  |  | 869 |  |  | 1,104 |
Additions for tax positions of prior years | 139 |  |  | — |  |  | 280 |
Reductions for tax positions of prior years | (1,829 | ) |  | (1,447 | ) |  | (366 | )
Reductions due to audit results | (113 | ) |  | — |  |  | — |
Balance at end of year | $ | 1,579 |  |  | $ | 2,922 |  |  | $ | 3,500 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration