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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes:
The provision for income taxes consists of the following (in thousands):
Fiscal Year
 202220212020
Current tax expense:   
Federal$225,565 $221,152 $211,228 
State41,748 34,238 38,511 
Total current267,313 255,390 249,739 
Deferred tax expense/(benefit):
Federal50,833 24,303 (21,997)
State(2,548)3,281 (8,553)
Total deferred48,285 27,584 (30,550)
Total provision$315,598 $282,974 $219,189 


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 31, 2022December 25, 2021
Tax assets:  
Inventory valuation$30,599 $23,365 
Accrued employee benefits costs24,544 36,810 
Nondeductible reserves8,259 7,099 
Finance lease liabilities9,531 8,958 
Operating lease liabilities763,729 740,478 
Deferred compensation13,459 12,201 
Workers' compensation insurance14,667 14,271 
General liability insurance11,142 9,402 
Income tax credits13,131 7,986 
Amortization23,496 7,803 
Depreciation19,322 — 
Other12,452 12,799 
 944,331 881,172 
Tax liabilities: 
Finance lease assets(8,113)(7,797)
Operating lease right-of-use assets(723,688)(702,197)
Depreciation(231,191)(161,137)
Other(12,114)(7,604)
 (975,106)(878,735)
Net deferred tax (liability) / asset$(30,775)$2,437 
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 $14.0 million and $6.6 million as of December 31, 2022 and December 25, 2021, respectively, with varying dates of expiration through 2037.  The Company provided no valuation allowance as of December 31, 2022 and December 25, 2021 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
 202220212020
Tax provision at statutory rate$294,905 $268,819 $203,311 
Tax effect of:
State income taxes, net of federal tax benefits41,235 36,116 27,642 
Tax credits, net of federal tax benefits(15,616)(13,157)(8,828)
Share-based compensation programs(9,025)(13,368)(9,303)
Other4,099 4,564 6,367 
Total income tax expense$315,598 $282,974 $219,189 

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 2018.  Various states have completed an examination of our income tax returns for 2018 through 2020 with minimal adjustments.

The total amount of unrecognized tax positions that, if recognized, would decrease the effective tax rate, is $4.5 million at December 31, 2022. 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 31, 2022.

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
 202220212020
Balance at beginning of year$3,749 $3,236 $2,760 
Additions based on tax positions related to the current year1,359 927 816 
Additions for tax positions of prior years760 51 32 
Reductions for tax positions of prior years(506)(465)(372)
Balance at end of year$5,362 $3,749 $3,236 

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 2022. 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. The remaining balance of deferred social security tax deposits was paid during 2022.