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Income Tax | 12 Months Ended
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Jan. 01, 2022
Income Tax Disclosure [Abstract] |
Income Tax | Note 12 – Income Tax The income tax provision for continuing operations is made up of the following components:
| 2021 |  |  | 2020 |  |  | 2019 |
(In thousands) | (52 Weeks) |  |  | (53 Weeks) |  |  | (52 Weeks) |
Current income tax expense (benefit): |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal | $ |  | 5,436 |  |  | $ |  | 1,844 |  |  | $ |  | (899 | )
State |  |  | 1,867 |  |  |  |  | 5,149 |  |  |  |  | 817 |
Total current income tax expense (benefit) |  |  | 7,303 |  |  |  |  | 6,993 |  |  |  |  | (82 | )
Deferred income tax expense (benefit): |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 14,877 |  |  |  |  | 5,637 |  |  |  |  | 126 |
State |  |  | 2,726 |  |  |  |  | (3,180 | ) |  |  |  | (2,386 | )
Total deferred income tax expense (benefit) |  |  | 17,603 |  |  |  |  | 2,457 |  |  |  |  | (2,260 | )
Total income tax expense (benefit) | $ |  | 24,906 |  |  | $ |  | 9,450 |  |  | $ |  | (2,342 | )
A reconciliation of the statutory federal rate to the effective rate is as follows:
| 2021 |  | 2020 |  | 2019
| (52 Weeks) |  | (53 Weeks) |  | (52 Weeks)
Federal statutory income tax rate |  | 21.0 |  | % |  |  | 21.0 |  | % |  |  | 21.0 |  | %
Stock compensation |  | 0.0 |  |  |  |  | 0.7 |  |  |  |  | 7.2 |  |
Non-deductible expenses |  | 1.7 |  |  |  |  | 1.9 |  |  |  |  | 0.8 |  |
Change in tax contingencies |  | 0.0 |  |  |  |  | 0.9 |  |  |  |  | — |  |
Charitable product donations |  | (0.1 | ) |  |  |  | (0.2 | ) |  |  |  | (5.6 | ) |
Other, net |  | (0.3 | ) |  |  |  | (1.0 | ) |  |  |  | (2.4 | ) |
Federal loss carryback (a) |  | — |  |  |  |  | (11.9 | ) |  |  |  | — |  |
State taxes, net of federal income tax benefit |  | 3.8 |  |  |  |  | 1.7 |  |  |  |  | (36.1 | ) |
Tax credits |  | (0.9 | ) |  |  |  | (2.0 | ) |  |  |  | (50.4 | ) |
Effective income tax rate |  | 25.2 |  | % |  |  | 11.1 |  | % |  |  | (65.5 | ) | %
| (a) | On March 27, 2020, the U.S. government enacted tax legislation to provide economic stimulus and support businesses and individuals during the COVID-19 pandemic, referred to as the Coronavirus Aid, Relief and Economic Security (“CARES”) Act. In connection with the CARES Act, the Company recorded net discrete income tax benefits of $10.1 million in 2020 associated with the additional deductibility of certain expenses combined with provisions which enable companies to carry back tax losses to years prior to the enactment of the Tax Cuts and Jobs Act (“Tax Reform”), where the federal statutory income tax rate was 35%. As a result of carrying back losses to previous tax years, the Company recorded $0.8 million in expense to reinstate tax contingencies which had previously expired, included in the “Change in tax contingencies” line in the table above.
Deferred tax assets and liabilities resulting from temporary differences as of January 1, 2022 and January 2, 2021 are as follows:
| January 1, |  |  | January 2, |
(In thousands) | 2022 |  |  | 2021 |
Deferred tax assets: |  |  |  |  |  |  |  |  |
Employee benefits | $ |  | 25,358 |  |  | $ |  | 33,115 |
Accrued workers' compensation |  |  | 1,943 |  |  |  |  | 1,834 |
Allowance for doubtful accounts |  |  | 1,317 |  |  |  |  | 1,688 |
Intangible assets |  |  | — |  |  |  |  | 2,203 |
Restructuring |  |  | 333 |  |  |  |  | 377 |
Deferred revenue |  |  | 2,083 |  |  |  |  | 1,679 |
Stock warrant |  |  | 1,258 |  |  |  |  | 1,896 |
Lease liabilities |  |  | 85,781 |  |  |  |  | 87,606 |
Accrued insurance |  |  | 893 |  |  |  |  | 964 |
State net operating loss carryforwards (a) |  |  | 6,576 |  |  |  |  | 6,175 |
All other |  |  | 2,338 |  |  |  |  | 2,481 |
Total deferred tax assets |  |  | 127,880 |  |  |  |  | 140,018 |
Deferred tax liabilities: |  |  |  |  |  |  |  |  |
Property and equipment |  |  | 47,240 |  |  |  |  | 47,472 |
Lease assets |  |  | 76,589 |  |  |  |  | 77,673 |
Inventory |  |  | 35,382 |  |  |  |  | 33,531 |
Goodwill |  |  | 30,044 |  |  |  |  | 26,025 |
Intangible assets |  |  | 187 |  |  |  |  | — |
All other |  |  | 2,130 |  |  |  |  | 1,045 |
Total deferred tax liabilities |  |  | 191,572 |  |  |  |  | 185,746 |
Net deferred tax liability | $ |  | 63,692 |  |  | $ |  | 45,728 |
| (a) | As of January 1, 2022, the Company’s state net operating loss carryforwards in various taxing jurisdictions expire in tax years 2022 through 2041 if not utilized.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
(In thousands) | 2021 |  |  | 2020 |
Balance at beginning of year | $ |  | 1,317 |  |  | $ |  | 1,425 |
Gross increases - tax positions taken in prior years |  |  | 84 |  |  |  |  | 910 |
Gross decreases - tax positions taken in prior years |  |  | (11 | ) |  |  |  | (1,000 | )
Lapsed statutes of limitations |  |  | (170 | ) |  |  |  | (18 | )
Balance at end of year | $ |  | 1,220 |  |  | $ |  | 1,317 |
Unrecognized tax benefits of $0.1 million are set to expire prior to December 31, 2022. 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 2021 and 2020 was immaterial in both years. 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 $1.0 million as of January 1, 2022. 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 examinations by U.S. federal tax authorities for fiscal years before the year ended January 3, 2015, and state or local tax authorities for fiscal years before the year ended December 31, 2017.

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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