XML 158 R19.htm IDEA: XBRL DOCUMENT
v3.25.4

Income Taxes | 12 Months Ended
--- | ---
Dec. 27, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The provision for income taxes consists of the following (in thousands):
| Fiscal Year
| 2025 |  | 2024 |  | 2023
Current tax expense: |  |  |  |  |
Federal | $ | 212,791 |  |  | $ | 292,895 |  |  | $ | 270,024 |
State | 28,100 |  |  | 39,133 |  |  | 45,093 |
Total current tax expense | 240,891 |  |  | 332,028 |  |  | 315,117 |
Deferred tax expense (benefit): |  |  |  |  |
Federal | 45,000 |  |  | (14,264) |  |  | 12,000 |
State | 16,267 |  |  | (6,064) |  |  | (1,941) |
Total deferred tax expense (benefit) | 61,267 |  |  | (20,328) |  |  | 10,059 |
Total provision for income taxes | $ | 302,158 |  |  | $ | 311,700 |  |  | $ | 325,176 |
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 27, 2025 |  | December 28, 2024
Tax assets: |  |  |
Inventory valuation | $ | 39,048 |  |  | $ | 36,312 |
Accrued employee benefits costs | 23,107 |  |  | 19,409 |
Operating lease liabilities | 1,006,509 |  |  | 875,226 |
Deferred compensation | 15,657 |  |  | 14,218 |
Workers' compensation insurance | 17,608 |  |  | 16,715 |
Income tax credits | 16,179 |  |  | 20,230 |
Amortization | — |  |  | 22,424 |
Depreciation | 22,319 |  |  | 21,774 |
Other | 49,706 |  |  | 50,133 |
Total deferred tax asset | 1,190,133 |  |  | 1,076,441 |
Tax liabilities: |  |  |
Operating lease right-of-use assets | (956,793) |  |  | (836,610) |
Depreciation | (237,666) |  |  | (219,856) |
Amortization | (36,924) |  |  | — |
Other | (31,584) |  |  | (25,467) |
Total deferred tax liability | (1,262,967) |  |  | (1,081,933) |
Net deferred tax liability | $ | (72,834) |  |  | $ | (5,492) |
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 $18.2 million and $23.3 million as of December 27, 2025 and December 28, 2024, respectively, with varying dates of expiration through 2050. The Company provided no valuation allowance as of December 27, 2025 and December 28, 2024 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
| 2025 |  | 2024 |  | 2023
U.S. federal statutory tax rate | $ | 293,631 |  |  | 21.0 | % |  | $ | 296,717 |  |  | 21.0 | % |  | $ | 300,804 |  |  | 21.0 | %
State and local income taxes, net of federal income tax effects (a) | 32,807 |  |  | 2.4 |  |  | 25,327 |  |  | 1.8 |  |  | 32,931 |  |  | 2.3 |
Tax credits | (19,775) |  |  | (1.4) |  |  | (7,268) |  |  | (0.5) |  |  | (6,743) |  |  | (0.5) |
Nontaxable or nondeductible items | 1,432 |  |  | 0.1 |  |  | (4,040) |  |  | (0.3) |  |  | (4,956) |  |  | (0.3) |
Changes in unrecognized tax benefits | 3,343 |  |  | 0.2 |  |  | 964 |  |  | 0.1 |  |  | 3,140 |  |  | 0.2 |
Other adjustments | (9,280) |  |  | (0.7) |  |  | — |  |  | — |  |  | — |  |  | — |
Total income tax expense | $ | 302,158 |  |  | 21.6 | % |  | $ | 311,700 |  |  | 22.1 | % |  | $ | 325,176 |  |  | 22.7 | %
(a) For each respective fiscal year, state taxes in the following states contributed to the majority of the tax effect in this category: 2025: Tennessee, California, New York, Michigan, New Jersey, and Texas 2024: California, New York, Michigan, New Jersey, Texas, Maine, and Arizona 2023: California, New York, Michigan, New Jersey, Pennsylvania, Tennessee, Texas, and Kansas 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 2022. 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 increase the effective tax rate, is $10.6 million at December 27, 2025. 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. 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
| 2025 |  | 2024 |  | 2023
Balance at beginning of year | $ | 9,308 |  |  | $ | 9,265 |  |  | $ | 5,362 |
Additions based on tax positions related to the current year | 1,516 |  |  | 1,698 |  |  | 2,211 |
Additions for tax positions of prior years | 3,016 |  |  | 116 |  |  | 2,038 |
Reductions for tax positions of prior years | (1,028) |  |  | (1,771) |  |  | (346) |
Balance at end of year | $ | 12,812 |  |  | $ | 9,308 |  |  | $ | 9,265 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477617/942-740-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478822/944-740-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 5: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 8: 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/1943274/2147477891/740-270-50-1 Reference 9: 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 10: 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 11: 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 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 13: 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 14: 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 15: 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 16: 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 17: 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration