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Income Taxes | 12 Months Ended
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Dec. 26, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes: The provision for income taxes consists of the following (in thousands):
| Fiscal Year
| 2020 |  | 2019 |  | 2018
Current tax expense: |  |  |  |  |
Federal | $ | 211,228 |  |  | $ | 128,490 |  |  | $ | 123,388 |
State | 38,511 |  |  | 25,091 |  |  | 15,597 |
Total current | 249,739 |  |  | 153,581 |  |  | 138,985 |
Deferred tax (benefit)/expense: |  |  |  |  |
Federal | (21,997) |  |  | 11,770 |  |  | 9,650 |
State | (8,553) |  |  | (4,328) |  |  | 2,393 |
Total deferred | (30,550) |  |  | 7,442 |  |  | 12,043 |
Total provision | $ | 219,189 |  |  | $ | 161,023 |  |  | $ | 151,028 |
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 26, 2020 |  | December 28, 2019
Tax assets: |  |  |
Inventory valuation | $ | 20,539 |  |  | $ | 16,676 |
Accrued employee benefits costs | 44,625 |  |  | 12,002 |
Accrued sales tax audit reserve | 5,967 |  |  | 4,173 |
Finance lease liabilities | 8,595 |  |  | 6,817 |
Operating lease liabilities | 645,719 |  |  | 581,593 |
Deferred compensation | 12,289 |  |  | 14,836 |
Workers’ compensation insurance | 11,804 |  |  | 10,154 |
General liability insurance | 7,346 |  |  | 6,025 |
Lease exit obligations | 2,315 |  |  | 2,087 |
Income tax credits | 8,744 |  |  | 6,377 |
Amortization | 7,269 |  |  | — |
Other | 8,431 |  |  | 5,768 |
| 783,643 |  |  | 666,508 |
Tax liabilities: |  |  |
Finance lease assets | (7,584) |  |  | (5,684) |
Operating lease right-of-use assets | (612,658) |  |  | (551,751) |
Inventory basis difference | (4,768) |  |  | (4,667) |
Prepaid expenses | (2,491) |  |  | (2,024) |
Depreciation | (124,280) |  |  | (93,919) |
Amortization | — |  |  | (8,230) |
Other | (276) |  |  | (386) |
| (752,057) |  |  | (666,661) |
Net deferred tax asset/(liability) | $ | 31,586 |  |  | $ | (153) |
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 $8.6 million and $6.2 million as of December 26, 2020 and December 28, 2019, respectively, with varying dates of expiration through 2035. The Company provided no valuation allowance as of December 26, 2020 and December 28, 2019 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
| 2020 |  | 2019 |  | 2018
Tax provision at statutory rate | $ | 203,311 |  |  | $ | 151,909 |  |  | $ | 143,511 |
Tax effect of: |  |  |  |  |
State income taxes, net of federal tax benefits | 27,642 |  |  | 19,722 |  |  | 18,019 |
Section 162(m) limitation | 5,080 |  |  | 2,572 |  |  | 2,581 |
Tax credits, net of federal tax benefits | (8,828) |  |  | (7,768) |  |  | (7,140) |
Share-based compensation programs | (9,303) |  |  | (4,484) |  |  | (4,522) |
Other | 1,287 |  |  | (928) |  |  | (1,421) |
Total income tax expense | $ | 219,189 |  |  | $ | 161,023 |  |  | $ | 151,028 |
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 2016. Various states have completed an examination of our income tax returns for 2016 through 2018 with minimal adjustments. The total amount of unrecognized tax positions that, if recognized, would decrease the effective tax rate, is $2.7 million at December 26, 2020. 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 25, 2021. 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
| 2020 |  | 2019 |  | 2018
Balance at beginning of year | $ | 2,760 |  |  | $ | 2,451 |  |  | $ | 1,993 |
Additions based on tax positions related to the current year | 816 |  |  | 650 |  |  | 621 |
Additions for tax positions of prior years | 32 |  |  | 59 |  |  | 257 |
Reductions for tax positions of prior years | (372) |  |  | (400) |  |  | (420) |
Balance at end of year | $ | 3,236 |  |  | $ | 2,760 |  |  | $ | 2,451 |
The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted in the U.S. on March 27, 2020. The enactment of this legislation did not have a material impact on income tax expense in fiscal 2020. However, the Company did elect to participate in the deferral of the employer’s share of social security tax deposits, with $47.0 million included within other long-term liabilities in the Consolidated Balance Sheet as of December 26, 2020. The first half of this deferral will become due on December 31, 2021 and the second half will become due on December 31, 2022.

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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