INCOME TAXES (Tables)

12 Months Ended

Dec. 30, 2023

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)	December 30, 2023		December 31, 2022		January 1, 2022
Current tax provision:
Federal	$	47,643	$	43,569	$	75,408
State	8,943		8,307		16,905
Foreign	13,756		15,562		19,761
Total current provision	$	70,342	$	67,438	$	112,074
Deferred tax (benefit) provision:
Federal	$	(148)	$	(1,484)	$	(10,541)
State	(512)		425		(2,428)
Foreign	60		319		(563)
Total deferred (benefit) provision	(600)		(740)		(13,532)
Total provision	$	69,742	$	66,698	$	98,542

The components of income before income taxes were as follows:

	For the fiscal year ended
(dollars in thousands)	December 30, 2023		December 31, 2022		January 1, 2022
Domestic	$	240,627	$	227,929	$	333,900
Foreign	61,615		88,807		104,390
Total	$	302,242	$	316,736	$	438,290

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
	December 30, 2023		December 31, 2022		January 1, 2022
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal income tax benefit	3.0	%	2.8	%	3.0	%
Impact of foreign operations	(0.8)	%	(2.0)	%	(1.8)	%
Settlement of uncertain tax positions	(0.6)	%	(0.7)	%	(0.3)	%
Benefit from stock-based compensation	—	%	(0.1)	%	(0.3)	%
Goodwill impairments and other	0.5	%	0.1	%	0.9	%
Total	23.1	%	21.1	%	22.5	%

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 December 30, 2023 and December 31, 2022.

(dollars in thousands)	December 30, 2023		December 31, 2022
Deferred tax assets:	Assets (Liabilities)
Accounts receivable allowance	$	5,263	$	6,715
Inventory	14,271		16,902
Accrued liabilities	11,208		8,230
Equity-based compensation	3,511		4,397
Deferred employee benefits	3,397		3,247
Leasing liabilities	105,756		83,886
Other	4,771		3,724
Total deferred tax assets	148,177		127,101
Deferred tax liabilities:
Depreciation	(19,654)		(18,560)
Leasing assets	(93,943)		(72,162)
Tradename and licensing agreements	(71,361)		(73,534)
Other	(2,516)		(1,614)
Total deferred tax liabilities	(187,474)		(165,870)
Net deferred tax liability	$	(39,297)	$	(38,769)

Net deferred tax liability

(dollars in thousands)	December 30, 2023		December 31, 2022
	Assets (Liabilities)
Deferred tax assets	$	2,173	$	2,466
Deferred tax liabilities	(41,470)		(41,235)
Net deferred tax liability	$	(39,297)	$	(38,769)

Unrecognized tax benefits

The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits:

(dollars in thousands)
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
Additions based on tax positions related to fiscal 2022	1,040
Reductions for prior year tax positions	—
Reductions for lapse of statute of limitations	(2,803)
Balance at December 31, 2022	$	7,093
Additions based on tax positions related to fiscal 2023	1,545
Reductions for prior year tax positions	—
Reductions for lapse of statute of limitations	(2,373)
Balance at December 30, 2023	$	6,265