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Income Taxes | 12 Months Ended
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Dec. 28, 2014
Income Tax Disclosure [Abstract] |
Income Taxes | 15. Income Taxes The current income tax provision represents the estimated amount of income taxes paid or payable for the year, as well as changes in estimates from prior years. The deferred income tax provision represents the change in deferred tax liabilities and assets. The following table presents the significant components of the provision for income taxes for 2014, 2013 and 2012.
|  | Fiscal Year |
In Thousands |  | 2014 |  |  | 2013 |  |  | 2012 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 13,153 |  |  | $ | 18,938 |  |  | $ | 12,871 |
State |  |  | 2,163 |  |  |  | 3,221 |  |  |  | 1,880 |
Total current provision |  | $ | 15,316 |  |  | $ | 22,159 |  |  | $ | 14,751 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 3,638 |  |  | $ | (7,701 | ) |  | $ | 5,667 |
State |  |  | 582 |  |  |  | (2,316 | ) |  |  | 1,471 |
Total deferred provision (benefit) |  | $ | 4,220 |  |  | $ | (10,017 | ) |  | $ | 7,138 |
Income tax expense |  | $ | 19,536 |  |  | $ | 12,142 |  |  | $ | 21,889 |
The Company’s effective income tax rate, as calculated by dividing income tax expense by income before income taxes, for 2014, 2013 and 2012 was 35.1%, 27.4% and 41.0%, respectively. The Company’s effective tax rate, as calculated by dividing income tax expense by income before income taxes less net income attributable to noncontrolling interest, for 2014, 2013 and 2012 was 38.4%, 30.5% and 44.6%, respectively. The following table provides a reconciliation of income tax expense at the statutory federal rate to actual income tax expense.
|  | Fiscal Year |
In Thousands |  | 2014 |  |  | 2013 |  |  | 2012 |
Statutory expense |  | $ | 19,474 |  |  | $ | 15,485 |  |  | $ | 18,672 |
State income taxes, net of federal benefit |  |  | 2,133 |  |  |  | 1,811 |  |  |  | 2,191 |
Noncontrolling interest — Piedmont |  |  | (1,835 | ) |  |  | (1,674 | ) |  |  | (1,694 | )
Adjustment for uncertain tax positions |  |  | 30 |  |  |  | (167 | ) |  |  | 761 |
Adjustment for state tax legislation |  |  | 0 |  |  |  | (2,261 | ) |  |  | 0 |
Valuation allowance change |  |  | 1,203 |  |  |  | 321 |  |  |  | 1,767 |
Capital loss carryover |  |  | (854 | ) |  |  | 0 |  |  |  | 0 |
Manufacturing deduction benefit |  |  | (1,470 | ) |  |  | (1,995 | ) |  |  | (1,330 | )
Meals and entertainment |  |  | 1,204 |  |  |  | 1,127 |  |  |  | 1,184 |
Other, net |  |  | (349 | ) |  |  | (505 | ) |  |  | 338 |
Income tax expense |  | $ | 19,536 |  |  | $ | 12,142 |  |  | $ | 21,889 |
As of December 28, 2014, the Company had $2.9 million of uncertain tax positions, including accrued interest, all of which would affect the Company’s effective tax rate if recognized. As of December 29, 2013, the Company had $2.8 million of uncertain tax positions, including accrued interest, all of which would affect the Company’s effective rate if recognized. While it is expected that the amount of uncertain tax positions may change in the next 12 months, the Company does not expect such change would have a significant impact on the consolidated financial statements. A reconciliation of the beginning and ending balances of the total amounts of uncertain tax positions (excluding accrued interest) is as follows:
|  | Fiscal Year |
In Thousands |  | 2014 |  |  | 2013 |  |  | 2012 |
Gross uncertain tax positions at the beginning of the year |  | $ | 2,630 |  |  | $ | 4,950 |  |  | $ | 4,281 |
Increase as a result of tax positions taken during a prior period |  |  | 0 |  |  |  | 55 |  |  |  | 315 |
Decrease as a result of tax positions taken during a prior period |  |  | 0 |  |  |  | (33 | ) |  |  | 0 |
Increase as a result of tax positions taken in the current period |  |  | 498 |  |  |  | 578 |  |  |  | 538 |
Reduction as a result of the expiration of the applicable statute of limitations |  |  | (508 | ) |  |  | (2,920 | ) |  |  | (184 | )
Gross uncertain tax positions at the end of the year |  | $ | 2,620 |  |  | $ | 2,630 |  |  | $ | 4,950 |
The Company records liabilities for uncertain tax positions related to certain income tax positions. These liabilities reflect the Company’s best estimate of the ultimate income tax liability based on currently known facts and information. Material changes in facts or information as well as the expiration of statute and/or settlements with individual tax jurisdictions may result in material adjustments to these estimates in the future. The Company recognizes potential interest and penalties related to uncertain tax positions in income tax expense. During 2014, 2013 and 2012, the interest and penalties related to uncertain tax positions recognized in income tax expense were not material. In addition, the amount of interest and penalties accrued at December 28, 2014 and December 29, 2013 were not material. In the third quarter of 2014, 2013 and 2012, the Company reduced its liability for uncertain tax positions by $0.6 million, $3.4 million and $0.2 million, respectively. The net effect of the adjustments was a decrease to income tax expense in 2014, 2013 and 2012 of $0.6 million, $0.9 million and $0.2 million, respectively. The reduction of the liability for uncertain tax positions during these years was primarily due to the expiration of the applicable statute of limitations. The American Taxpayer Relief Act (“Act”) was signed into law on January 2, 2013. The Act approved a retroactive extension of certain favorable business and energy tax provisions that had expired at the end of 2011 that are applicable to the Company. The Company recorded a reduction to income tax expense totaling $0.4 million related to the Act in 2013, which is included in the other, net line of the reconciliation of income tax expense at the statutory federal rate to actual income tax expense table. During 2013, state tax legislation was enacted that reduced the corporate tax rate in that state from 6.9% to 6.0% effective January 1, 2014. A further reduction to the corporate tax rate from 6.0% to 5.0% will become effective January 1, 2015. This reduction in the corporate tax rate decreased the Company’s income tax expense by approximately $2.3 million in 2013 due to the impact on the Company’s net deferred tax liabilities. Prior tax years beginning in 2011 remain open to examination by the Internal Revenue Service, and various tax years beginning in year 1997 remain open to examination by certain state tax jurisdictions to which the Company is subject due to loss carryforwards. As of December 28, 2014, the Company had $3.3 million and $71.3 million of federal net operating losses and state net operating losses, respectively, available to reduce future income taxes. The federal net operating losses would expire in varying amounts through 2032. The state net operating losses would expire in varying amounts through 2033. The Company’s income tax assets and liabilities are subject to adjustment in future periods based on the Company’s ongoing evaluations of such assets and liabilities and new information that becomes available to the Company. Deferred income taxes are recorded based upon temporary differences between the financial statement and tax bases of assets and liabilities and available net operating loss and tax credit carryforwards. Temporary differences and carryforwards that comprised deferred income tax assets and liabilities were as follows:
In Thousands |  | Dec. 28, 2014 |  |  | Dec. 29, 2013 |
Intangible assets |  | $ | 139,744 |  |  | $ | 122,608 |
Depreciation |  |  | 77,311 |  |  |  | 69,905 |
Investment in Piedmont |  |  | 42,271 |  |  |  | 42,071 |
Inventory |  |  | 10,777 |  |  |  | 10,082 |
Prepaid expenses |  |  | 4,237 |  |  |  | 4,357 |
Patronage dividend |  |  | 4,361 |  |  |  | 4,046 |
Debt exchange premium |  |  | 634 |  |  |  | 1,085 |
Other |  |  | 161 |  |  |  | 446 |
Deferred income tax liabilities |  |  | 279,496 |  |  |  | 254,600 |
Deferred compensation |  |  | (42,990 | ) |  |  | (40,152 | )
Postretirement benefits |  |  | (26,783 | ) |  |  | (25,892 | )
Pension (nonunion) |  |  | (25,951 | ) |  |  | (9,919 | )
Sub-bottling liability |  |  | (18,084 | ) |  |  | 0 |
Accrued liabilities |  |  | (16,049 | ) |  |  | (13,451 | )
Capital lease agreements |  |  | (6,265 | ) |  |  | (6,201 | )
Net operating loss carryforwards |  |  | (4,075 | ) |  |  | (5,372 | )
Transactional costs |  |  | (3,584 | ) |  |  | (1,157 | )
Pension (union) |  |  | (3,472 | ) |  |  | (3,606 | )
Other |  |  | (54 | ) |  |  | (2 | )
Deferred income tax assets |  |  | (147,307 | ) |  |  | (105,752 | )
Valuation allowance for deferred tax assets |  |  | 3,640 |  |  |  | 3,553 |
Net current deferred income tax asset |  |  | (4,171 | ) |  |  | (1,007 | )
Net noncurrent deferred income tax liability |  | $ | 140,000 |  |  | $ | 153,408 |
Note: | Net current income tax asset from the table is included in prepaid expenses and other current assets on the consolidated balance sheets.
Valuation allowances are recognized on deferred tax assets if the Company believes that it is more likely than not that some or all of the deferred tax assets will not be realized. The Company believes the majority of the deferred tax assets will be realized due to the reversal of certain significant temporary differences and anticipated future taxable income from operations. The valuation allowance of $3.6 million, of which $0.2 million was included with the net current deferred income tax asset, as of December 28, 2014 and $3.5 million, of which $0.2 million was included with the net current income tax asset, as of December 29, 2013, respectively, was established primarily for certain loss carryforwards which expire in varying amounts through 2033.

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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