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INCOME TAXES (Tables) | 12 Months Ended
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Jan. 01, 2022
Income Tax Disclosure [Abstract] |
Provision for income taxes | The provision for income taxes consisted of the following:
| For the fiscal year ended
(dollars in thousands) | January 1, 2022 |  | January 2, 2021 |  | December 28, 2019
Current tax provision: |  |  |  |  |
Federal | $ | 75,408 |  |  | $ | 31,085 |  |  | $ | 50,162 |
State | 16,905 |  |  | 6,331 |  |  | 10,548 |
Foreign | 19,761 |  |  | 11,105 |  |  | 16,740 |
Total current provision | $ | 112,074 |  |  | $ | 48,521 |  |  | $ | 77,450 |
Deferred tax provision (benefit): |  |  |  |  |
Federal | $ | (10,541) |  |  | $ | (18,449) |  |  | $ | (10,775) |
State | (2,428) |  |  | (3,741) |  |  | (1,882) |
Foreign | (563) |  |  | (1,064) |  |  | (643) |
Total deferred provision | (13,532) |  |  | (23,254) |  |  | (13,300) |
Total provision | $ | 98,542 |  |  | $ | 25,267 |  |  | $ | 64,150 |
The components of income before income taxes were as follows:
| For the fiscal year ended
(dollars in thousands) | January 1, 2022 |  | January 2, 2021 |  | December 28, 2019
Domestic | $ | 333,900 |  |  | $ | 73,525 |  |  | $ | 225,488 |
Foreign | 104,390 |  |  | 61,459 |  |  | 102,464 |
Total | $ | 438,290 |  |  | $ | 134,984 |  |  | $ | 327,952 |
Federal statutory tax rate reconciliation | The difference between the Company’s effective income tax rate and the federal statutory tax rate is reconciled below:
| For the fiscal year ended
| January 1, 2022 |  | January 2, 2021 |  | December 28, 2019
Statutory federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal income tax benefit | 3.0 | % |  | 2.7 | % |  | 2.5 | %
Impact of foreign operations | (1.8) | % |  | (4.8) | % |  | (2.4) | %
Settlement of uncertain tax positions | (0.3) | % |  | (1.3) | % |  | (0.7) | %
Benefit from stock-based compensation | (0.3) | % |  | (1.1) | % |  | (0.8) | %
Goodwill impairments and other | 0.9 | % |  | 2.2 | % |  | — | %
Total | 22.5 | % |  | 18.7 | % |  | 19.6 | %
Components of deferred tax assets and liabilities | The following table reflects the Company’s calculation of the components of deferred tax assets and liabilities as of January 1, 2022 and January 2, 2021.
(dollars in thousands) | January 1, 2022 |  | January 2, 2021
Deferred tax assets: | Assets (Liabilities)
Accounts receivable allowance | $ | 7,026 |  |  | $ | 4,072 |
Inventory | 11,923 |  |  | 11,775 |
Accrued liabilities | 22,226 |  |  | 13,807 |
Equity-based compensation | 3,410 |  |  | 5,039 |
Deferred employee benefits | 5,144 |  |  | 7,928 |
Leasing liabilities | 97,269 |  |  | 130,776 |
Other | 3,845 |  |  | 4,961 |
Total deferred tax assets | 150,843 |  |  | 178,358 |
Deferred tax liabilities: |  |  |
Depreciation | (26,472) |  |  | (38,777) |
Leasing assets | (80,818) |  |  | (107,269) |
Tradename and licensing agreements | (76,275) |  |  | (76,409) |
Other | (5,388) |  |  | (5,593) |
Total deferred tax liabilities | (188,953) |  |  | (228,048) |
Net deferred tax liability | $ | (38,110) |  |  | $ | (49,690) |
Net deferred tax liability |
(dollars in thousands) | January 1, 2022 |  | January 2, 2021
| Assets (Liabilities)
Deferred tax assets | $ | 2,800 |  |  | $ | 3,080 |
Deferred tax liabilities | (40,910) |  |  | (52,770) |
Net deferred tax liability | $ | (38,110) |  |  | $ | (49,690) |
Unrecognized tax benefits | The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits:
(dollars in thousands) |
Balance at December 29, 2018 | $ | 13,917 |
Additions based on tax positions related to fiscal 2019 | 2,197 |
Reductions for lapse of statute of limitations | (2,191) |
Balance at December 28, 2019 | $ | 13,923 |
Additions based on tax positions related to fiscal 2020 | 760 |
Reductions for prior year tax positions | (104) |
Reductions for lapse of statute of limitations | (2,056) |
Balance at January 2, 2021 | $ | 12,523 |
Additions based on tax positions related to fiscal 2021 | 810 |
Reductions for prior year tax positions | (2,207) |
Reductions for lapse of statute of limitations | (2,270) |
Balance at January 1, 2022 | $ | 8,856 |

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