Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Components of Income Tax Provision

The income tax provision consists of the following:

	Year Ended
	December 31, 2023			January 1, 2023		January 2, 2022
U.S. Federal—current	$	67,898		$	66,398	$	60,329
U.S. Federal—deferred		(5,927	)		1,028		(1,663	)
U.S. Federal—total		61,971			67,426		58,666
State—current		21,902			19,823		19,715
State—deferred		1,011			900		(146	)
State—total		22,913			20,723		19,569
Total provision	$	84,884		$	88,149	$	78,235

Tax Rate Reconciliation

Income tax provision differed from the amounts computed by applying the U.S. federal income tax rate to pre-tax income as a result of the following:

	Year Ended
	December 31, 2023			January 1, 2023			January 2, 2022
Federal statutory rate		21.0	%		21.0	%		21.0	%
Increase (decrease) in income taxes resulting from:
State income taxes, net of federal benefit		5.4			4.7			4.8
Enhanced charitable contribution impact		(1.0	)		(0.9	)		(1.5	)
Non-deductible Executive Compensation		1.4			0.9			0.3
Benefit of federal tax credit		(0.7	)		(0.5	)		(0.4	)
Excess tax benefits from share based payments		(1.2	)		(0.4	)		(0.1	)
Other, net		(0.2	)		0.4			0.2
Effective income tax rate		24.7	%		25.2	%		24.3	%

Components of Deferred Tax Assets and Deferred Tax Liabilities

Significant components of the Company’s deferred tax assets and deferred tax liabilities are as follows:

	As Of
	December 31, 2023			January 1, 2023
Deferred tax assets
Employee benefits	$	18,329		$	16,052
Tax credits		105			166
Operating leases		392,168			329,154
Other lease related		6,137			5,740
Other accrued liabilities		4,320			4,004
Charitable contribution carryforward		3,343			2,819
Inventories and other		2,905			2,605
Total gross deferred tax assets		427,307			360,540
Less: Valuation Allowance		(3,343	)		(917	)
Total deferred tax assets, net of valuation allowance		423,964			359,623
Deferred tax liabilities
Depreciation and amortization		(80,765	)		(83,091	)
Intangible assets		(64,668	)		(52,413	)
Operating leases		(339,973	)		(284,377	)
Asset retirement obligations		(939	)		(865	)
Total gross deferred tax liabilities		(486,345	)		(420,746	)
Net deferred tax liability	$	(62,381	)	$	(61,123	)

Reconciliation of Unrecognized Tax Benefits

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

	As Of
	December 31, 2023			January 1, 2023			January 2, 2022
Beginning balance	$	1,119		$	1,770		$	1,803
Additions based on tax positions related to the    current year		58			43			16
Additions based on tax positions related to prior years		—			—			31
Reductions for settlements with taxing authorities		—			(694	)		—
Reduction due to lapse of applicable statute of limitations		(700	)		—			—
Reductions for tax positions for prior years		—			—			(80	)
Ending balance	$	477		$	1,119		$	1,770