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Income Taxes | 12 Months Ended
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Jan. 27, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of the provision for income taxes were as follows (dollars in thousands):
| Fiscal Year Ended |
| January 27, 2024 |  | January 28, 2023 |  | January 29, 2022 |
Current: |  |  |  |  |  |
Federal | $ | 65,540 |  |  | $ | 24,917 |  |  | $ | (3,323) |  |
Foreign | 13 |  |  | — |  |  | (4) |  |
State | 18,166 |  |  | 8,460 |  |  | (495) |  |
| 83,719 |  |  | 33,377 |  |  | (3,822) |  |
Deferred: |  |  |  |  |  |
Federal | (10,000) |  |  | 6,094 |  |  | 7,506 |  |
Foreign | — |  |  | — |  |  | — |  |
State | (643) |  |  | (1,562) |  |  | 518 |  |
| (10,643) |  |  | 4,532 |  |  | 8,024 |  |
Provision for income taxes | $ | 73,076 |  |  | $ | 37,909 |  |  | $ | 4,202 |  |
Our effective income tax rate differs from the statutory rate primarily due to the difference in income tax rates from state to state where work was performed, non-deductible and non-taxable items, tax credits recognized, the tax effects of the vesting and exercise of share-based awards, impacts of tax filings for prior years, and changes in unrecognized tax benefits. We are currently under IRS audit for fiscal year 2020. We believe our provision for income taxes is adequate; however, any assessment may affect our results of operations and cash flows.
| Fiscal Year Ended |
| January 27, 2024 |  | January 28, 2023 |  | January 29, 2022 |
Statutory rate applied to pre-tax income | $ | 61,320 |  |  | $ | 37,826 |  |  | $ | 11,083 |  |
State taxes, net of federal tax benefit | 13,466 |  |  | 5,325 |  |  | 1,422 |  |
Change in accruals for uncertain tax positions | 2,331 |  |  | 3,833 |  |  | 4,493 |  |
Compensation limitation | 2,788 |  |  | 3,959 |  |  | 1,468 |  |
Tax filings for prior periods | — |  |  | (2,505) |  |  | (4,609) |  |
Tax credits | (4,453) |  |  | (5,056) |  |  | (3,756) |  |
Federal benefit of vesting and exercise of share-based awards | (2,413) |  |  | (3,515) |  |  | (2,425) |  |
Deferred tax remeasurements | — |  |  | 371 |  |  | (1,355) |  |
Effect of rates other than statutory | 241 |  |  | (203) |  |  | 71 |  |
Non-deductible and non-taxable items, net | 1,090 |  |  | 215 |  |  | 70 |  |
Change in valuation allowance | (546) |  |  | (376) |  |  | (12) |  |
Other items, net | (748) |  |  | (1,965) |  |  | (2,248) |  |
Provision for income taxes | $ | 73,076 |  |  | $ | 37,909 |  |  | $ | 4,202 |  |
Deferred Income Taxes The deferred tax provision represents the change in the deferred tax assets and the liabilities representing the tax consequences of changes in the amount of temporary differences and changes in tax rates during the year. The significant components of deferred tax assets and liabilities consisted of the following (dollars in thousands):
| January 27, 2024 |  | January 28, 2023
Deferred tax assets: |  |  |
Capitalized research expenditures (IRC Section 174) | $ | 38,689 |  |  | $ | 19,498 |
Insurance and other reserves | 25,865 |  |  | 22,866 |
Leases | 19,380 |  |  | 17,096 |
Stock-based compensation | 4,722 |  |  | 3,577 |
Allowance for doubtful accounts and reserves | 3,203 |  |  | 2,984 |
Net operating loss carryforwards | 238 |  |  | 591 |
Other | 3,686 |  |  | 5,080 |
Total deferred tax assets | 95,783 |  |  | 71,692 |
Valuation allowance | (79) |  |  | (634) |
Deferred tax assets, net of valuation allowance | $ | 95,704 |  |  | $ | 71,058 |
Deferred tax liabilities: |  |  |
Property and equipment | $ | 86,105 |  |  | $ | 77,024 |
Goodwill and intangibles | 38,381 |  |  | 36,132 |
Leases | 19,439 |  |  | 17,178 |
Other | 1,341 |  |  | 929 |
Deferred tax liabilities | $ | 145,266 |  |  | $ | 131,263 |
Net deferred tax liabilities | $ | 49,562 |  |  | $ | 60,205 |
The valuation allowance above reduces the deferred tax asset balances to the amount that we have determined is more likely than not to be realized. The valuation allowance primarily relates to immaterial state net operating loss carryforwards, which generally begin to expire in fiscal 2025. Uncertain Tax Positions As of January 27, 2024 and January 28, 2023, we had total unrecognized tax benefits of $17.6 million and $15.8 million, respectively, resulting from uncertain tax positions. Our effective tax rate will be reduced by $17.1 million during future periods if it is determined these unrecognized tax benefits are realizable. We had approximately $3.7 million and $2.6 million accrued for the payment of interest and penalties as of January 27, 2024 and January 28, 2023, respectively. Interest expense related to unrecognized tax benefits for the Company was not material during fiscal 2024, fiscal 2023 and fiscal 2022. A summary of unrecognized tax benefits is as follows (dollars in thousands):
| Fiscal Year Ended |
| January 27, 2024 |  | January 28, 2023 |  | January 29, 2022 |
Balance at beginning of year | $ | 15,771 |  |  | $ | 11,929 |  |  | $ | 5,940 |  |
Additions based on tax positions related to the fiscal year | 1,884 |  |  | 2,042 |  |  | 1,377 |  |
Additions based on tax positions related to prior years | 587 |  |  | 2,957 |  |  | 4,612 |  |
Reductions based on tax positions related to prior years | (636) |  |  | — |  |  | — |  |
Reductions related to the expiration of statutes of limitation | — |  |  | (1,157) |  |  | — |  |
Balance at end of year | $ | 17,606 |  |  | $ | 15,771 |  |  | $ | 11,929 |  |

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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/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 2: 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 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: 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 5: 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 6: 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//1943274/2147482526/740-270-50-1 Reference 7: 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 8: 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 9: 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 10: 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
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