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Income Taxes
 12 Months Ended
Dec. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The provision for income taxes consists of the following (in thousands):
Fiscal Year
 202320222021
Current tax expense:   
Federal$270,024 $225,565 $221,152 
State45,093 41,748 34,238 
Total current315,117 267,313 255,390 
Deferred tax expense/(benefit):
Federal12,000 50,833 24,303 
State(1,941)(2,548)3,281 
Total deferred10,059 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, 2023December 31, 2022
Tax assets:  
Inventory valuation$35,076 $30,599 
Accrued employee benefits costs17,461 24,544 
Operating lease liabilities812,357 763,729 
Deferred compensation15,308 13,459 
Workers' compensation insurance15,632 14,667 
Income tax credits14,075 13,131 
Amortization16,551 23,496 
Depreciation23,477 19,322 
Other51,816 41,384 
 1,001,753 944,331 
Tax liabilities: 
Finance lease assets
Operating lease right-of-use assets(773,433)(723,688)
Depreciation(229,751)(231,191)
Other(26,664)(20,227)
 (1,029,848)(975,106)
Net deferred tax liability$(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
 202320222021
Tax provision at statutory rate$300,804 $294,905 $268,819 
Tax effect of:
State income taxes, net of federal tax benefits41,757 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)
Other3,766 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
 202320222021
Balance at beginning of year$5,362 $3,749 $3,236 
Additions based on tax positions related to the current year2,211 1,359 927 
Additions for tax positions of prior years2,038 760 51 
Reductions for tax positions of prior years(346)(506)(465)
Balance at end of year$9,265 $5,362 $3,749