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Income Tax (Tables)

12 Months Ended

Dec. 28, 2019

Income Tax Disclosure [Abstract]

Summary of Income Tax Provision for Continuing Operations

The income tax provision for continuing operations is made up of the following components:

(In thousands)	2019					2018					2017
Current income tax expense (benefit):
Federal	$		(899	)		$		(1,607	)		$		366
State			817					1,107					528
Total current income tax expense (benefit)			(82	)				(500	)				894
Deferred income tax (benefit) expense:
Federal			126					8,370					(72,842	)
State			(2,386	)				(963	)				(7,079	)
Total deferred income tax (benefit) expense			(2,260	)				7,407					(79,921	)
Total income tax (benefit) expense	$		(2,342	)		$		6,907			$		(79,027	)

Reconciliation of Statutory Federal Rate to Effective Rate

A reconciliation of the statutory federal rate to the effective rate is as follows:

	2019					2018					2017
Federal statutory income tax rate		21.0		%			21.0		%			35.0		%
Stock compensation		7.2					0.7					1.0
Non-deductible expenses		0.8					0.6					(0.3	)
Domestic production activities deduction		—					—					0.1
Federal rate change effect on deferred taxes (a)		—					(1.2	)				19.7
Change in tax contingencies		—					(2.5	)				—
Charitable product donations		(5.6	)				(0.6	)				0.4
Other, net		(2.4	)				(0.9	)				0.8
State taxes, net of federal income tax benefit		(36.1	)				1.7					3.1
Tax credits		(50.4	)				(1.8	)				0.2
Effective income tax rate		(65.5	)	%			17.0		%			60.0		%

  (a) 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 provided a one-year measurement period during which a company may complete its accounting for the impacts of the Tax Act.

Summary of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities resulting from temporary differences as of December 28, 2019 and December 29, 2018 are as follows:

				December 28,					December 29,
(In thousands)				2019					2018
Deferred tax assets:
Employee benefits				$		17,087			$		17,330
Accrued workers' compensation						1,632					1,402
Allowance for doubtful accounts						10,870					10,171
Intangible assets						1,319					—
Restructuring						472					1,806
Deferred revenue						1,678					1,269
Accrued rent						399					3,196
Lease liabilities						85,005					7,843
Accrued insurance						1,007					1,150
Federal net operating loss carryforwards (a)						2,332					—
Federal credits (b)						851					—
State net operating loss carryforwards (a)						4,498					2,656
All other						4,073					3,917
Total deferred tax assets						131,223					50,740
Deferred tax liabilities:
Property and equipment						45,136					43,844
Lease assets						73,191					5,314
Inventory						33,739					32,401
Goodwill						21,404					15,763
Intangible assets						—					1,011
All other						864					1,661
Total deferred tax liabilities						174,334					99,994
Net deferred tax liability				$		43,111			$		49,254

  (a)  As of December 28, 2019, the Company’s federal net operating loss carryforwards do not expire, and state net operating loss carryforwards in various taxing jurisdictions expire in tax years 2021 through 2039 if not utilized.

  (b)  As of December 28, 2019, the Company’s federal credit carryforwards expire in tax year 2039.

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

				December 28,					December 29,
(In thousands)				2019					2018
Balance at beginning of year				$		1,477			$		2,408
Gross increases - tax positions taken in prior years						71					163
Gross decreases - tax positions taken in prior years						(125	)				(171	)
Gross increases - tax positions taken in current year						850					894
Lapsed statutes of limitations						(848	)				(1,817	)
Balance at end of year				$		1,425			$		1,477

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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