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Income Taxes

12 Months Ended

Mar. 30, 2024

Income Taxes

Income Taxes

12. Income Taxes

Income tax expense consisted of the following:

​	​	​	​	​	​	​	​	​	​	​
​		Fiscal Year Ended								​
​	​	March 30,		​	April 1,		​	March 26,		​
(in thousands)		2024			2023			2022
Current:	​	​	​	​	​	​	​	​	​	​
Federal	​	$	32,160	​	$	37,404	​	$	43,883	​
State	​		9,442	​		11,556	​		11,358	​
Foreign	​	​	—	​	​	—	​	​	—	​
Total current	​		41,602	​		48,960	​		55,241	​
Deferred:	​	​	​	​	​	​	​	​	​	​
Federal	​		5,774	​		6,927	​		3,942	​
State	​		3,000	​		(562)	​		960	​
Foreign	​	​	—	​	​	—	​	​	—	​
Total deferred	​		8,774	​		6,365	​		4,902	​
Total income tax expense	​	$	50,376	​	$	55,325	​	$	60,143	​

​

The reconciliation between the Company’s effective tax rate on income from operations and the statutory tax rate is as follows:

​	​	​	​	​	​	​	​
​		Fiscal Year Ended					​
​	​	March 30,	​	April 1,	​	March 26,	​
​		2024		2023		2022
Expected provision at statutory U.S. federal tax rate		21.0	%	21.0	%	21.0	%
State and local income taxes, net of federal tax benefit		4.2	​	4.0	​	4.0	​
Permanent items	​	0.1	​	0.1	​	—	​
Excess tax benefit of stock-based compensation	​	(3.2)	​	(1.5)	​	(2.9)	​
IRC Section 162(M)	​	3.1	​	1.3	​	1.7	​
Other		0.2	​	(0.4)	​	—	​
Effective tax rate		25.4	%	24.5	%	23.8	%

​

​

Differences between the effective tax rate and the statutory rate relate primarily to excess tax benefits due to income tax accounting for share-based compensation, IRC Section 162(M) and state taxes.

Deferred taxes reflect the net tax effects of the temporary differences between the carrying amount of assets and liabilities for financial reporting and the amount used for income tax purposes. Significant components of the Company’s net deferred tax liabilities as of March 30, 2024 and April 1, 2023 consisted of the following (in thousands):

​	​	​	​	​	​	​	​
​		March 30			April 1,
​		2024			2023
Deferred tax assets:	​	​	​	​	​	​	​
State taxes	​	$	937	​	$	1,324	​
Accrued liabilities	​		2,980	​		2,037	​
Award program liabilities	​		632	​		466	​
Deferred revenue	​		2,902	​		2,131	​
Inventories	​		6,382	​		5,950	​
Stock options	​		2,811	​		2,165	​
Lease liabilities	​	​	111,813	​	​	84,731	​
Other, net	​		1,964	​		2,896	​
Total deferred tax assets	​		130,421	​		101,700	​
Deferred tax liabilities:	​	​	​	​	​	​	​
Depreciation and amortization	​		(75,295)	​		(53,917)	​
Prepaid expenses	​		(934)	​		(782)	​
Right-of-use assets	​	​	(96,225)	​	​	(80,261)	​
Total deferred tax liabilities	​		(172,454)	​		(134,960)	​
Valuation allowance	​	​	—	​	​	—	​
Net deferred tax liabilities	​	$	(42,033)	​	$	(33,260)	​

​

​

As of March 30, 2024, the Company had no net operating loss carryforwards for federal and state tax purposes.

Valuation allowances are established, when necessary, to reduce deferred income tax assets to the amounts expected to be realized. To this end, the Company has considered and evaluated its sources of taxable income, including forecasted future taxable income, and the Company has concluded that a valuation allowance is not necessary as of March 30, 2024.

The Company applies ASC 740, which contains a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments. At March 30, 2024 and April 1, 2023, no material amounts were recorded for any uncertain tax positions.

The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. To the extent that accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision in the period that such determination is made. The Company does not have any accrued interest or penalties associated with any unrecognized tax benefits as of March 30, 2024 and April 1, 2023.

The Company does not anticipate a significant change in its uncertain tax benefits over the next 12 months.

The major jurisdictions in which the Company files income tax returns include the U.S. federal jurisdiction, as well as various state jurisdictions within the U.S. The Company’s fiscal years 2019 through 2023 returns are subject to examination by the U.S. federal and various state tax authorities.

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- References

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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

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-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
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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
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 740
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