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Income Taxes (Tables) | 12 Months Ended
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Jan. 01, 2023
Income Tax Disclosure [Abstract] |
Income Before Provision for Income Taxes | Income before provision for income taxes in 2022, 2021 and 2020 consisted of the following:
|  | 2022 |  |  | 2021 |  |  | 2020 |
U.S. |  | $ | 560,115 |  |  | $ | 611,267 |  |  | $ | 541,646 |
Foreign |  |  | 12,718 |  |  |  | 14,438 |  |  |  | 13,484 |
Income before provision for income taxes |  | $ | 572,833 |  |  | $ | 625,705 |  |  | $ | 555,130 |
Differences Between Statutory Income Tax Provision and Consolidated Provision for Income Taxes | The differences between the U.S. Federal statutory income tax provision (using the statutory rate of 21%) and the Company’s consolidated provision for income taxes for 2022, 2021 and 2020 are summarized as follows:
|  | 2022 |  |  | 2021 |  |  | 2020 |
Federal income tax provision based on the statutory rate |  | $ | 120,295 |  |  | $ | 131,398 |  |  | $ | 116,577 |
State and local income taxes, net of related Federal income taxes |  |  | 15,978 |  |  |  | 15,108 |  |  |  | 16,660 |
Non-resident withholding and foreign income taxes |  |  | 23,276 |  |  |  | 21,833 |  |  |  | 18,741 |
Foreign tax and other tax credits |  |  | (19,849 | ) |  |  | (23,509 | ) |  |  | (19,506 | )
Foreign derived intangible income |  |  | (15,068 | ) |  |  | (16,800 | ) |  |  | (12,390 | )
Excess tax benefits from equity-based compensation |  |  | (2,169 | ) |  |  | (18,911 | ) |  |  | (60,364 | )
Non-deductible expenses, net |  |  | 3,322 |  |  |  | 4,501 |  |  |  | 4,359 |
Unrecognized tax (benefit) provision, net of related Federal income taxes |  |  | (3,788 | ) |  |  | 4,372 |  |  |  | 516 |
Other |  |  | (1,427 | ) |  |  | (2,754 | ) |  |  | (759 | )
Provision for income taxes |  | $ | 120,570 |  |  | $ | 115,238 |  |  | $ | 63,834 |
Components of Consolidated Provision for Income Taxes | The components of the 2022, 2021 and 2020 consolidated provision for income taxes were as follows:
|  | 2022 |  |  | 2021 |  |  | 2020 |
Provision for Federal income taxes |  |  |  |  |  |  |  |  |
Current provision |  | $ | 76,552 |  |  | $ | 74,910 |  |  | $ | 19,894 |
Deferred provision (benefit) |  |  | 4,125 |  |  |  | (2,051 | ) |  |  | 14,301 |
Total provision for Federal income taxes |  |  | 80,677 |  |  |  | 72,859 |  |  |  | 34,195 |
Provision for state and local income taxes |  |  |  |  |  |  |  |  |
Current provision |  |  | 20,489 |  |  |  | 16,507 |  |  |  | 10,775 |
Deferred provision (benefit) |  |  | 577 |  |  |  | (461 | ) |  |  | 123 |
Total provision for state and local income taxes |  |  | 21,066 |  |  |  | 16,046 |  |  |  | 10,898 |
Provision for non-resident withholding and foreign income taxes |  |  |  |  |  |  |  |  |
Current provision |  |  | 23,276 |  |  |  | 21,833 |  |  |  | 18,741 |
Deferred (benefit) provision |  |  | (4,449 | ) |  |  | 4,500 |  |  |  | — |
Total provision for non-resident withholding and foreign income taxes |  |  | 18,827 |  |  |  | 26,333 |  |  |  | 18,741 |
Provision for income taxes |  | $ | 120,570 |  |  | $ | 115,238 |  |  | $ | 63,834 |
Significant Components of Net Deferred Income Taxes | As of January 1, 2023 and January 2, 2022, the significant components of net deferred income taxes were as follows:
|  | January 1, 2023 |  |  | January 2, 2022 |
Deferred income tax assets |  |  |  |  |  |
Operating lease liabilities |  | $ | 56,750 |  |  | $ | 54,478 |
Accruals and reserves |  |  | 11,330 |  |  |  | 15,207 |
Insurance reserves |  |  | 13,039 |  |  |  | 12,867 |
Non-cash equity-based compensation expense |  |  | 8,849 |  |  |  | 7,861 |
Foreign tax credit |  |  | 13,464 |  |  |  | 10,206 |
Other |  |  | 12,150 |  |  |  | 8,158 |
Deferred income tax assets before valuation allowance |  |  | 115,582 |  |  |  | 108,777 |
Less, valuation allowance |  |  | (15,001 | ) |  |  | (11,364 | )
Deferred income tax assets, net |  |  | 100,581 |  |  |  | 97,413 |
Deferred income tax liabilities |  |  |  |  |  |
Operating lease right-of-use assets |  |  | 54,057 |  |  |  | 51,793 |
Capitalized software |  |  | 27,443 |  |  |  | 19,828 |
Depreciation, amortization and asset basis differences |  |  | 15,851 |  |  |  | 18,570 |
Unrealized gain on investments |  |  | 9,065 |  |  |  | 9,035 |
Deferred income tax liabilities |  |  | 106,416 |  |  |  | 99,226 |
Net deferred income taxes |  | $ | (5,835 | ) |  | $ | (1,813 | )
Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits as of January 1, 2023, January 2, 2022 and January 3, 2021 is as follows:
|  | January 1, 2023 |  |  | January 2, 2022 |  |  | January 3, 2021 |
Unrecognized tax benefits at beginning of period |  | $ | 7,690 |  |  | $ | 3,318 |  |  | $ | 2,802 |
Additions for tax positions of current year |  |  | 887 |  |  |  | 2,611 |  |  |  | 494 |
Additions for tax positions of prior years |  |  | 958 |  |  |  | 2624 |  |  |  | 506 |
Reductions for changes in prior year tax positions |  |  | (4,521 | ) |  |  | (379 | ) |  |  | (178 | )
Reductions for lapses of applicable statute of limitations |  |  | (1,112 | ) |  |  | (484 | ) |  |  | (306 | )
Unrecognized tax benefits at end of period |  | $ | 3,902 |  |  | $ | 7,690 |  |  | $ | 3,318 |

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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI https://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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