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Income Tax | 12 Months Ended
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Dec. 29, 2018
Income Tax Disclosure [Abstract] |
Income Tax | Note 13 – Income Tax The income tax provision for continuing operations is made up of the following components:
(In thousands) | 2018 |  |  | 2017 |  |  | 2016 |
Current income tax (benefit) expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal | $ |  | (1,607 | ) |  | $ |  | 366 |  |  | $ |  | 22,936 |
State |  |  | 1,107 |  |  |  |  | 528 |  |  |  |  | 3,210 |
Total current income tax (benefit) expense |  |  | (500 | ) |  |  |  | 894 |  |  |  |  | 26,146 |
Deferred income tax expense (benefit): |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 8,370 |  |  |  |  | (72,842 | ) |  |  |  | 6,509 |
State |  |  | (963 | ) |  |  |  | (7,079 | ) |  |  |  | 252 |
Total deferred income tax expense (benefit) |  |  | 7,407 |  |  |  |  | (79,921 | ) |  |  |  | 6,761 |
Total income tax expense (benefit) | $ |  | 6,907 |  |  | $ |  | (79,027 | ) |  | $ |  | 32,907 |
A reconciliation of the statutory federal rate to the effective rate is as follows:
| 2018 |  | 2017 |  | 2016
Federal statutory income tax rate |  | 21.0 |  | % |  |  | 35.0 |  | % |  |  | 35.0 |  | %
State taxes, net of federal income tax benefit |  | 1.7 |  |  |  |  | 3.1 |  |  |  |  | 2.5 |  |
Stock compensation |  | 0.7 |  |  |  |  | 1.0 |  |  |  |  | — |  |
Non-deductible expenses |  | 0.6 |  |  |  |  | (0.3 | ) |  |  |  | 0.5 |  |
Domestic production activities deduction |  | — |  |  |  |  | 0.1 |  |  |  |  | (0.3 | ) |
Charitable product donations |  | (0.6 | ) |  |  |  | 0.4 |  |  |  |  | (0.5 | ) |
Other, net |  | (0.9 | ) |  |  |  | 0.8 |  |  |  |  | (0.6 | ) |
Federal rate change effect on deferred taxes |  | (1.2 | ) |  |  |  | 19.7 |  |  |  |  | — |  |
Tax credits |  | (1.8 | ) |  |  |  | 0.2 |  |  |  |  | — |  |
Change in tax contingencies |  | (2.5 | ) |  |  |  | — |  |  |  |  | — |  |
Effective income tax rate |  | 17.0 |  | % |  |  | 60.0 |  | % |  |  | 36.6 |  | %
On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to reducing the U.S. federal corporate tax rate from 35 percent to 21 percent, effective January 1, 2018. Shortly after the Tax Act was enacted, the SEC issued accounting guidance, which provides a one-year measurement period during which a company may complete its accounting for the impacts of the Tax Act. In connection with initial analysis of the impact of the Tax Act, the Company recorded a provisional discrete income tax benefit of $26.0 million in the period ended December 30, 2017 associated with the re-measurement of deferred tax assets and liabilities as a result of the reduction in the U.S. federal corporate tax rate. In the third quarter of 2018, the Company completed its accounting for the income tax effects of certain elements of the Tax Act, resulting in an income tax benefit of $0.5 million. Deferred tax assets and liabilities resulting from temporary differences as of December 29, 2018 and December 30, 2017 are as follows:
|  |  |  | December 29, |  |  | December 30, |
(In thousands) |  |  |  | 2018 |  |  | 2017 |
Deferred tax assets: |  |  |  |  |  |  |  |  |  |  |  |
Employee benefits |  |  |  | $ |  | 17,330 |  |  | $ |  | 19,311 |
Accrued workers' compensation |  |  |  |  |  | 1,402 |  |  |  |  | 1,620 |
Allowance for doubtful accounts |  |  |  |  |  | 10,171 |  |  |  |  | 1,974 |
Intangible assets |  |  |  |  |  | — |  |  |  |  | 56 |
Restructuring |  |  |  |  |  | 1,806 |  |  |  |  | 2,322 |
Deferred revenue |  |  |  |  |  | 1,269 |  |  |  |  | 1,552 |
Accrued rent |  |  |  |  |  | 3,196 |  |  |  |  | 3,853 |
Accrued insurance |  |  |  |  |  | 1,150 |  |  |  |  | 921 |
State net operating loss carryforwards (a) |  |  |  |  |  | 2,656 |  |  |  |  | 37 |
All other |  |  |  |  |  | 3,917 |  |  |  |  | 2,688 |
Total deferred tax assets |  |  |  |  |  | 42,897 |  |  |  |  | 34,334 |
Deferred tax liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Property and equipment |  |  |  |  |  | 41,315 |  |  |  |  | 34,199 |
Inventory |  |  |  |  |  | 32,401 |  |  |  |  | 31,454 |
Goodwill |  |  |  |  |  | 15,763 |  |  |  |  | 10,083 |
Intangible assets |  |  |  |  |  | 1,011 |  |  |  |  | — |
All other |  |  |  |  |  | 1,661 |  |  |  |  | 648 |
Total deferred tax liabilities |  |  |  |  |  | 92,151 |  |  |  |  | 76,384 |
Net deferred tax liability |  |  |  | $ |  | 49,254 |  |  | $ |  | 42,050 |
(a) | At December 29, 2018, the Company had gross state net operating losses in various taxing jurisdictions totaling $3.4 million, which expire in tax years 2021 through 2038 if not utilized.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|  |  |  | December 29, |  |  | December 30, |
(In thousands) |  |  |  | 2018 |  |  | 2017 |
Balance at beginning of year |  |  |  | $ |  | 2,408 |  |  | $ |  | 2,369 |
Gross increases - tax positions taken in prior years |  |  |  |  |  | 163 |  |  |  |  | 213 |
Gross decreases - tax positions taken in prior years |  |  |  |  |  | (171 | ) |  |  |  | (123 | )
Gross increases - tax positions taken in current year |  |  |  |  |  | 894 |  |  |  |  | 872 |
Lapse of statute of limitations |  |  |  |  |  | (1,817 | ) |  |  |  | (923 | )
Balance at end of year |  |  |  | $ |  | 1,477 |  |  | $ |  | 2,408 |
Unrecognized tax benefits of $0.9 million are set to expire prior to December 28, 2019. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. The amount recognized due to a lapse in the statute of limitations that reduced the Company’s effective income tax rate in 2018 was $1.0 million. The amount of unrecognized tax benefits, including interest and penalties, that would reduce the Company’s effective income tax rate if recognized in future periods was $0.3 million as of December 29, 2018. SpartanNash or its subsidiaries file income tax returns with federal, state and local tax authorities within the United States. With few exceptions, SpartanNash is no longer subject to U.S. federal, state or local examinations by tax authorities for fiscal years before the year ended January 3, 2015. Income tax returns related to the former Nash-Finch Company are no longer subject to U.S. federal, state or local examinations by tax authorities.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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