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Income Taxes | 12 Months Ended
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Dec. 30, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The provision for income taxes consists of the following (in thousands):
| Fiscal Year
| 2023 |  | 2022 |  | 2021
Current tax expense: |  |  |  |  |
Federal | $ | 270,024 |  |  | $ | 225,565 |  |  | $ | 221,152 |
State | 45,093 |  |  | 41,748 |  |  | 34,238 |
Total current | 315,117 |  |  | 267,313 |  |  | 255,390 |
Deferred tax expense/(benefit): |  |  |  |  |
Federal | 12,000 |  |  | 50,833 |  |  | 24,303 |
State | (1,941) |  |  | (2,548) |  |  | 3,281 |
Total deferred | 10,059 |  |  | 48,285 |  |  | 27,584 |
Total provision | $ | 325,176 |  |  | $ | 315,598 |  |  | $ | 282,974 |
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 30, 2023 |  | December 31, 2022
Tax assets: |  |  |
Inventory valuation | $ | 35,076 |  |  | $ | 30,599 |
Accrued employee benefits costs | 17,461 |  |  | 24,544 |
Operating lease liabilities | 812,357 |  |  | 763,729 |
Deferred compensation | 15,308 |  |  | 13,459 |
Workers' compensation insurance | 15,632 |  |  | 14,667 |
Income tax credits | 14,075 |  |  | 13,131 |
Amortization | 16,551 |  |  | 23,496 |
Depreciation | 23,477 |  |  | 19,322 |
Other | 51,816 |  |  | 41,384 |
| 1,001,753 |  |  | 944,331 |
Tax liabilities: |  |  |
Finance lease assets |  |  |
Operating lease right-of-use assets | (773,433) |  |  | (723,688) |
Depreciation | (229,751) |  |  | (231,191) |
Other | (26,664) |  |  | (20,227) |
| (1,029,848) |  |  | (975,106) |
Net deferred tax liability | $ | (28,095) |  |  | $ | (30,775) |
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 $15.7 million and $14.0 million as of December 30, 2023 and December 31, 2022, respectively, with varying dates of expiration through 2038. The Company provided no valuation allowance as of December 30, 2023 and December 31, 2022 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
| 2023 |  | 2022 |  | 2021
Tax provision at statutory rate | $ | 300,804 |  |  | $ | 294,905 |  |  | $ | 268,819 |
Tax effect of: |  |  |  |  |
State income taxes, net of federal tax benefits | 41,757 |  |  | 41,235 |  |  | 36,116 |
Tax credits, net of federal tax benefits | (10,709) |  |  | (15,616) |  |  | (13,157) |
Share-based compensation programs | (10,442) |  |  | (9,025) |  |  | (13,368) |
Other | 3,766 |  |  | 4,099 |  |  | 4,564 |
Total income tax expense | $ | 325,176 |  |  | $ | 315,598 |  |  | $ | 282,974 |
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 2019. Various states have completed an examination of our income tax returns for 2017 through 2021 with minimal adjustments. The total amount of unrecognized tax positions that, if recognized, would decrease the effective tax rate, is $7.6 million at December 30, 2023. 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, 2024. 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
| 2023 |  | 2022 |  | 2021
Balance at beginning of year | $ | 5,362 |  |  | $ | 3,749 |  |  | $ | 3,236 |
Additions based on tax positions related to the current year | 2,211 |  |  | 1,359 |  |  | 927 |
Additions for tax positions of prior years | 2,038 |  |  | 760 |  |  | 51 |
Reductions for tax positions of prior years | (346) |  |  | (506) |  |  | (465) |
Balance at end of year | $ | 9,265 |  |  | $ | 5,362 |  |  | $ | 3,749 |

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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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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