XML 37 R19.htm IDEA: XBRL DOCUMENT v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 28, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The provision for income taxes consists of the following (in thousands):
Fiscal Year
 202420232022
Current tax expense:   
Federal$292,895 $270,024 $225,565 
State39,133 45,093 41,748 
Total current332,028 315,117 267,313 
Deferred tax expense/(benefit):
Federal(14,264)12,000 50,833 
State(6,064)(1,941)(2,548)
Total deferred(20,328)10,059 48,285 
Total provision$311,700 $325,176 $315,598 
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 28, 2024December 30, 2023
Tax assets:  
Inventory valuation$36,312 $35,076 
Accrued employee benefits costs19,409 17,461 
Operating lease liabilities875,226 812,357 
Deferred compensation14,218 15,308 
Workers' compensation insurance16,715 15,632 
Income tax credits20,230 14,075 
Amortization22,424 16,551 
Depreciation21,774 23,477 
Other50,133 51,816 
 1,076,441 1,001,753 
Tax liabilities: 
Operating lease right-of-use assets(836,610)(773,433)
Depreciation(219,856)(229,751)
Other(25,467)(26,664)
 (1,081,933)(1,029,848)
Net deferred tax liability$(5,492)$(28,095)
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 $23.3 million and $15.7 million as of December 28, 2024 and December 30, 2023, respectively, with varying dates of expiration through 2049.  The Company provided no valuation allowance as of December 28, 2024 and December 30, 2023 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
 202420232022
Tax provision at statutory rate$296,717 $300,804 $294,905 
Tax effect of:
State income taxes, net of federal tax benefits31,656 41,757 41,235 
Tax credits, net of federal tax benefits(12,677)(10,709)(15,616)
Share-based compensation programs(8,648)(10,442)(9,025)
Other4,652 3,766 4,099 
Total income tax expense$311,700 $325,176 $315,598 

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 2020.  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 $7.7 million at December 28, 2024. 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 27, 2025.

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
 202420232022
Balance at beginning of year$9,265 $5,362 $3,749 
Additions based on tax positions related to the current year1,698 2,211 1,359 
Additions for tax positions of prior years116 2,038 760 
Reductions for tax positions of prior years(1,771)(346)(506)
Balance at end of year$9,308 $9,265 $5,362