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Income Taxes | 12 Months Ended
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Dec. 28, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Note 23. Income Taxes The company’s provision for income tax expense (benefit) consists of the following for Fiscal 2024, 2023, and 2022 (amounts in thousands):
|  | Fiscal 2024 |  |  | Fiscal 2023 |  |  | Fiscal 2022 |
Current Taxes: |  |  |  |  |  |  |  |  |
Federal |  | $ | 41,406 |  |  | $ | 63,351 |  |  | $ | 54,462 |
State |  |  | 8,466 |  |  |  | 13,680 |  |  |  | 14,409 |
|  |  | 49,872 |  |  |  | 77,031 |  |  |  | 68,871 |
Deferred Taxes: |  |  |  |  |  |  |  |  |
Federal |  |  | 24,029 |  |  |  | (36,474 | ) |  |  | 3,508 |
State |  |  | 6,925 |  |  |  | (6,866 | ) |  |  | (2,062 | )
|  |  | 30,954 |  |  |  | (43,340 | ) |  |  | 1,446 |
Income tax expense |  | $ | 80,826 |  |  | $ | 33,691 |  |  | $ | 70,317 |
Income tax expense differs from the amount computed by applying the applicable U.S. federal income tax rate of 21% because of the effect of the following items for Fiscal 2024, 2023 and 2022 (amounts in thousands):
|  | Fiscal 2024 |  |  | Fiscal 2023 |  |  | Fiscal 2022 |
Tax at U.S. federal income tax rate |  | $ | 69,078 |  |  | $ | 32,992 |  |  | $ | 62,729 |
State income taxes, net of federal income tax benefit |  |  | 12,158 |  |  |  | 5,383 |  |  |  | 9,754 |
Net share-based windfalls |  |  | 97 |  |  |  | (1,960 | ) |  |  | (2,219 | )
Excess executive compensation |  |  | 3,175 |  |  |  | 1,950 |  |  |  | 2,218 |
Tax credits |  |  | (2,692 | ) |  |  | (2,655 | ) |  |  | (2,263 | )
Other |  |  | (990 | ) |  |  | (2,019 | ) |  |  | 98 |
Income tax expense |  | $ | 80,826 |  |  | $ | 33,691 |  |  | $ | 70,317 |
In Fiscal 2024, 2023 and 2022, the most significant difference in the effective rate and the statutory rate was state income taxes. Deferred tax assets (liabilities) are comprised of the following (amounts in thousands):
|  | December 28, 2024 |  |  | December 30, 2023 |
Self-insurance |  | $ | 7,593 |  |  | $ | 8,478 |
Compensation and employee benefits |  |  | 10,844 |  |  |  | 10,292 |
Deferred income |  |  | 1,976 |  |  |  | 2,643 |
Loss and credit carryforwards |  |  | 13,065 |  |  |  | 13,111 |
Equity-based compensation |  |  | 7,554 |  |  |  | 8,636 |
Legal accrual |  |  | 5,855 |  |  |  | 33,407 |
Financing and operating lease right-of-use liabilities |  |  | 79,868 |  |  |  | 72,011 |
Capitalized software and research and development costs |  |  | 32,484 |  |  |  | 32,519 |
Other |  |  | 12,579 |  |  |  | 9,975 |
Valuation allowance |  |  | (3,387 | ) |  |  | (1,586 | )
Deferred tax assets |  |  | 168,431 |  |  |  | 189,486 |
Depreciation |  |  | (72,503 | ) |  |  | (77,931 | )
Intangibles |  |  | (132,506 | ) |  |  | (125,555 | )
Financing and operating lease right-of-use assets |  |  | (78,723 | ) |  |  | (69,987 | )
Hedging |  |  | (2,371 | ) |  |  | (322 | )
Pension and postretirement benefits |  |  | (137 | ) |  |  | (143 | )
Other |  |  | (6,424 | ) |  |  | (6,793 | )
Deferred tax liabilities |  |  | (292,664 | ) |  |  | (280,731 | )
Net deferred tax liability |  | $ | (124,233 | ) |  | $ | (91,245 | )
In Fiscal 2023, the company recorded a deferred tax asset, in the amount of $33.4 million, related to an accrued legal settlement related to the repurchase of distribution rights. During Fiscal 2024, a significant portion of this deferred tax asset has been reversed, and the remaining balance is expected to reverse during Fiscal 2025. See Note 24, Commitments and Contingencies, for details of this settlement. The company has a deferred tax asset of $1.9 million related to a federal net operating loss carryforward which we expect to fully utilize before expiration. Additionally, the company and various subsidiaries have a deferred tax asset of $3.8 million related to state net operating loss carryforwards with expiration dates from Fiscal 2025 through Fiscal 2044, and $7.4 million for credit carryforwards with expiration dates from Fiscal 2028 through Fiscal 2034. The utilization of a portion of these state carryforwards could be limited in the future; therefore, a valuation allowance of $3.4 million has been recorded. Should the company determine at a later date that certain of these losses which have been reserved for may be utilized, a benefit may be recognized in the Consolidated Statements of Income. Likewise, should the company determine at a later date that certain of these net operating losses for which a deferred tax asset has been recorded may not be utilized, a charge to the Consolidated Statements of Income may be necessary. See Note 2, Summary of Significant Accounting Policies, for the deferred tax asset valuation allowance analysis. The company did no t have any unrecognized tax benefits for fiscal years 2024, 2023 and 2022. At this time, we do not anticipate significant changes to the amount of gross unrecognized tax benefits over the next twelve months. The company accrues interest expense and penalties related to income tax liabilities as a component of income before taxes. No accrual of penalties is reflected on the company’s balance sheet as the company believes the accrual of penalties is not necessary based upon the merits of its income tax positions. The company had no accrued interest balance at December 28, 2024 and December 30, 2023. The company defines the federal jurisdiction as well as various state jurisdictions as “major” jurisdictions. The company is no longer subject to federal examinations for years prior to 2021, and with limited exceptions, for years prior to 2020 in state jurisdictions.

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