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Income Taxes
 12 Months Ended
Dec. 25, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes:
The provision for income taxes consists of the following (in thousands):
Fiscal Year
 202120202019
Current tax expense:   
Federal$221,152 $211,228 $128,490 
State34,238 38,511 25,091 
Total current255,390 249,739 153,581 
Deferred tax expense/(benefit):
Federal24,303 (21,997)11,770 
State3,281 (8,553)(4,328)
Total deferred27,584 (30,550)7,442 
Total provision$282,974 $219,189 $161,023 


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 25, 2021December 26, 2020
Tax assets:  
Inventory valuation$23,365 $20,539 
Accrued employee benefits costs36,810 44,625 
Nondeductible reserves7,099 5,967 
Finance lease liabilities8,958 8,595 
Operating lease liabilities740,478 645,719 
Deferred compensation12,201 12,289 
Workers' compensation insurance14,271 11,804 
General liability insurance9,402 7,346 
Income tax credits7,986 8,744 
Amortization7,803 7,269 
Other12,799 10,746 
 881,172 783,643 
Tax liabilities: 
Finance lease assets(7,797)(7,584)
Operating lease right-of-use assets(702,197)(612,658)
Depreciation(161,137)(124,280)
Other(7,604)(7,535)
 (878,735)(752,057)
Net deferred tax asset$2,437 $31,586 
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 $6.6 million and $8.6 million as of December 25, 2021 and December 26, 2020, respectively, with varying dates of expiration through 2036.  The Company provided no valuation allowance as of December 25, 2021 and December 26, 2020 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
 202120202019
Tax provision at statutory rate$268,819 $203,311 $151,909 
Tax effect of:
State income taxes, net of federal tax benefits36,116 27,642 19,722 
Tax credits, net of federal tax benefits(13,157)(8,828)(7,768)
Share-based compensation programs(13,368)(9,303)(4,484)
Other4,564 6,367 1,644 
Total income tax expense$282,974 $219,189 $161,023 

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 2017.  Various states have completed an examination of our income tax returns for 2017 through 2019 with minimal adjustments.

The total amount of unrecognized tax positions that, if recognized, would decrease the effective tax rate, is $3.2 million at December 25, 2021. 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
 202120202019
Balance at beginning of year$3,236 $2,760 $2,451 
Additions based on tax positions related to the current year927 816 650 
Additions for tax positions of prior years51 32 59 
Reductions for tax positions of prior years(465)(372)(400)
Balance at end of year$3,749 $3,236 $2,760 

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 $24.5 million included within other accrued expenses in the Consolidated Balance Sheet as of December 25, 2021. This amount will become due on December 31, 2022.