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Income Taxes | 12 Months Ended
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Dec. 29, 2018
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes: The provision for income taxes consists of the following (in thousands):
| Fiscal Year
| 2018 |  | 2017 |  | 2016
Current tax expense: |  |  |  |  |
Federal | $ | 123,388 |  |  | $ | 207,986 |  |  | $ | 221,207 |
State | 15,597 |  |  | 14,516 |  |  | 20,858 |
Total current | 138,985 |  |  | 222,502 |  |  | 242,065 |
Deferred tax expense (benefit): |  |  |  |  |  |
Federal | 9,650 |  |  | 22,469 |  |  | 12,256 |
State | 2,393 |  |  | 4,953 |  |  | (3,171 | )
Total deferred | 12,043 |  |  | 27,422 |  |  | 9,085 |
Total provision | $ | 151,028 |  |  | $ | 249,924 |  |  | $ | 251,150 |
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):
| December 29, 2018 |  | December 30, 2017
Tax assets: |  |  |
Inventory valuation | $ | 14,417 |  |  | $ | 13,029 |
Accrued employee benefits costs | 15,333 |  |  | 7,092 |
Accrued sales tax audit reserve | 3,419 |  |  | 3,479 |
Rent expenses in excess of cash payments required | 25,628 |  |  | 24,728 |
Deferred compensation | 17,598 |  |  | 20,299 |
Workers’ compensation insurance | 9,900 |  |  | 9,153 |
General liability insurance | 5,410 |  |  | 4,265 |
Lease exit obligations | 2,010 |  |  | 1,829 |
Income tax credits | 5,773 |  |  | 4,206 |
Other | 9,160 |  |  | 6,997 |
| 108,648 |  |  | 95,077 |
Tax liabilities: |  |  |  |  |
Inventory basis difference | (4,590 | ) |  | (4,141 | )
Prepaid expenses | (1,912 | ) |  | (1,423 | )
Depreciation | (87,417 | ) |  | (65,650 | )
Amortization | (6,039 | ) |  | (3,818 | )
Other | (2,083 | ) |  | (1,551 | )
| (102,041 | ) |  | (76,583 | )
Net deferred tax asset | $ | 6,607 |  |  | $ | 18,494 |
On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the TCJA. The TCJA made broad and complex changes to the U.S. tax code including, but not limited to, a reduction of the federal income tax rate from 35% to 21% effective for tax years beginning after December 31, 2017. This change required the Company to remeasure our deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which generally is 21% for federal income tax purposes. As permitted by the SEC Staff Accounting Bulletin 118, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act”, we recorded a provisional estimate of the effects of the TCJA on our existing deferred tax balances as of December 30, 2017, and recognized a provisional amount of $4.9 million, which was included as a component of income tax expense from continuing operations in fiscal 2017. We have subsequently finalized our accounting analysis based on the guidance, interpretations, and data available as of December 29, 2018. Adjustments made in the fourth quarter of fiscal 2018 upon finalization of our accounting analysis were not material to our Consolidated Financial Statements. 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 $5.7 million and $5.1 million as of December 29, 2018 and December 30, 2017, respectively, with varying dates of expiration between 2018 and 2030. The Company provided no valuation allowance as of December 29, 2018 and December 30, 2017 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):
| Fiscal Year
| 2018 |  | 2017 |  | 2016
Tax provision at statutory rate | $ | 143,511 |  |  | $ | 235,383 |  |  | $ | 240,894 |
Tax effect of: |  |  |  |  |
State income taxes, net of federal tax benefits | 18,019 |  |  | 14,320 |  |  | 15,527 |
Section 162(m) limitation | 2,581 |  |  | 1,223 |  |  | 633 |
Tax credits, net of federal tax benefits | (7,140 | ) |  | (5,060 | ) |  | (7,227 | )
Share-based compensation programs | (4,522 | ) |  | (1,040 | ) |  | — |
Enactment of tax legislation | — |  |  | 4,856 |  |  | — |
Other | (1,421 | ) |  | 242 |  |  | 1,323 |
Total income tax expense | $ | 151,028 |  |  | $ | 249,924 |  |  | $ | 251,150 |
The Company and its affiliates file income tax returns in the U.S. 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 2014. Various states have completed an examination of our income tax returns for 2014 through 2016 with minimal adjustments. The total amount of unrecognized tax positions that, if recognized, would decrease the effective tax rate, is $2.1 million at December 29, 2018. 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 28, 2019. 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
| 2018 |  | 2017 |  | 2016
Balance at beginning of year | $ | 1,993 |  |  | $ | 1,579 |  |  | $ | 2,922 |
Additions based on tax positions related to the current year | 621 |  |  | 527 |  |  | 460 |
Additions for tax positions of prior years | 257 |  |  | 14 |  |  | 139 |
Reductions for tax positions of prior years | (420 | ) |  | (127 | ) |  | (1,829 | )
Reductions due to audit results | — |  |  | — |  |  | (113 | )
Balance at end of year | $ | 2,451 |  |  | $ | 1,993 |  |  | $ | 1,579 |

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- 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 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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