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Income Taxes (Tables) | 12 Months Ended
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Jan. 01, 2017
Income Tax Disclosure [Abstract] |
Significant Components of the Provision for Income Taxes | The following table presents the significant components of the provision for income taxes:
|  | Fiscal Year |
(in thousands) |  | 2016 |  |  | 2015 |  |  | 2014 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (6,920 | ) |  | $ | 20,107 |  |  | $ | 13,153 |
State |  |  | 27 |  |  |  | 3,563 |  |  |  | 2,163 |
Total current provision (benefit) |  | $ | (6,893 | ) |  | $ | 23,670 |  |  | $ | 15,316 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 39,644 |  |  | $ | 10,638 |  |  | $ | 3,638 |
State |  |  | 3,298 |  |  |  | (230 | ) |  |  | 582 |
Total deferred provision (benefit) |  | $ | 42,942 |  |  | $ | 10,408 |  |  | $ | 4,220 |
Income tax expense |  | $ | 36,049 |  |  | $ | 34,078 |  |  | $ | 19,536 |
Reconciliation of Income Tax Expense at Statutory Federal Rate to Actual Income Tax Expense | The following table provides a reconciliation of income tax expense at the statutory federal rate to actual income tax expense.
|  | Fiscal Year |
|  | 2016 |  |  | 2015 |  |  | 2014 |
(in thousands) |  | Income tax expense |  |  | % pre-tax income |  |  | Income tax expense |  |  | % pre-tax income |  |  | Income tax expense |  |  | % pre-tax income |
Statutory expense |  | $ | 32,449 |  |  |  | 35.0 | % |  | $ | 34,692 |  |  |  | 35.0 | % |  | $ | 19,474 |  |  |  | 35.0 | %
State income taxes, net of federal benefit |  |  | 3,243 |  |  |  | 3.5 |  |  |  | 3,496 |  |  |  | 3.5 |  |  |  | 2,133 |  |  |  | 3.8 |
Noncontrolling interest – Piedmont |  |  | (2,406 | ) |  |  | (2.6 | ) |  |  | (2,261 | ) |  |  | (2.3 | ) |  |  | (1,835 | ) |  |  | (3.3 | )
Adjustment for uncertain tax positions |  |  | (43 | ) |  |  | - |  |  |  | 51 |  |  |  | 0.1 |  |  |  | 30 |  |  |  | 0.1 |
Adjustment for state tax legislation |  |  | (625 | ) |  |  | (0.7 | ) |  |  | (1,145 | ) |  |  | (1.2 | ) |  |  | - |  |  |  | - |
Valuation allowance change |  |  | (689 | ) |  |  | (0.7 | ) |  |  | (1,332 | ) |  |  | (1.3 | ) |  |  | 1,203 |  |  |  | 2.2 |
Bargain purchase gain |  |  | - |  |  |  | - |  |  |  | (704 | ) |  |  | (0.7 | ) |  |  | - |  |  |  | - |
Capital loss carryover |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (854 | ) |  |  | (1.5 | )
Manufacturing deduction benefit |  |  | (56 | ) |  |  | (0.1 | ) |  |  | (1,330 | ) |  |  | (1.3 | ) |  |  | (1,470 | ) |  |  | (2.6 | )
Meals and entertainment |  |  | 1,879 |  |  |  | 2.0 |  |  |  | 1,666 |  |  |  | 1.7 |  |  |  | 1,204 |  |  |  | 2.2 |
Other, net |  |  | 2,297 |  |  |  | 2.5 |  |  |  | 945 |  |  |  | 0.9 |  |  |  | (349 | ) |  |  | (0.8 | )
Income tax expense |  | $ | 36,049 |  |  |  | 38.9 | % |  | $ | 34,078 |  |  |  | 34.4 | % |  | $ | 19,536 |  |  |  | 35.1 | %
Reconciliation of Uncertain Tax Positions Excluding Accrued Interest | A reconciliation of uncertain tax positions, excluding accrued interest, is as follows:
|  | Fiscal Year |
(in thousands) |  | 2016 |  |  | 2015 |  |  | 2014 |
Gross uncertain tax positions at the beginning of the year |  | $ | 2,633 |  |  | $ | 2,620 |  |  | $ | 2,630 |
Increase as a result of tax positions taken during a prior period |  |  | - |  |  |  | - |  |  |  | - |
Decrease as a result of tax positions taken during a prior period |  |  | - |  |  |  | - |  |  |  | - |
Increase as a result of tax positions taken in the current period |  |  | 687 |  |  |  | 547 |  |  |  | 498 |
Reduction as a result of the expiration of the applicable statute of limitations |  |  | (641 | ) |  |  | (534 | ) |  |  | (508 | )
Gross uncertain tax positions at the end of the year |  | $ | 2,679 |  |  | $ | 2,633 |  |  | $ | 2,620 |
Temporary Differences and Carryforwards that Comprised Deferred Income Tax Assets and Liabilities | Temporary differences and carryforwards that comprised deferred income tax assets and liabilities were as follows:
(in thousands) |  | January 1, 2017 |  |  | January 3, 2016 |
Acquisition related contingent consideration |  | $ | 97,573 |  |  | $ | 52,306 |
Deferred compensation |  |  | 44,185 |  |  |  | 44,402 |
Postretirement benefits |  |  | 32,656 |  |  |  | 27,086 |
Accrued liabilities |  |  | 21,666 |  |  |  | 21,853 |
Pension (nonunion) |  |  | 17,381 |  |  |  | 18,257 |
Transactional costs |  |  | 7,155 |  |  |  | 5,879 |
Capital lease agreements |  |  | 5,817 |  |  |  | 6,105 |
Charitable contribution carryover |  |  | 4,409 |  |  |  | - |
Pension (union) |  |  | 3,162 |  |  |  | 3,290 |
Net operating loss carryforwards |  |  | 2,148 |  |  |  | 3,121 |
Other |  |  | 111 |  |  |  | - |
Deferred income tax assets |  | $ | 236,263 |  |  |  | 182,299 |
Less: Valuation allowance for deferred tax assets |  |  | 1,618 |  |  |  | 2,307 |
Net deferred income tax asset |  | $ | 234,645 |  |  | $ | 179,992 |
Intangible assets |  | $ | (204,661 | ) |  | $ | (169,338 | )
Depreciation |  |  | (134,872 | ) |  |  | (95,262 | )
Investment in Piedmont |  |  | (45,128 | ) |  |  | (43,109 | )
Inventory |  |  | (13,814 | ) |  |  | (9,928 | )
Prepaid expenses |  |  | (6,300 | ) |  |  | (4,615 | )
Patronage dividend |  |  | (4,724 | ) |  |  | (4,046 | )
Debt exchange premium |  |  | - |  |  |  | (204 | )
Other |  |  | - |  |  |  | (434 | )
Deferred income tax liabilities |  | $ | (409,499 | ) |  | $ | (326,936 | )
Net deferred income tax liability |  | $ | (174,854 | ) |  | $ | (146,944 | )

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