Income Taxes (Tables)

12 Months Ended

Mar. 26, 2022

Income Taxes

Schedule of income tax expense (benefit)

Income tax expense consisted of the following:

	Fiscal Year Ended
	March 26,		March 27,		March 28,
(in thousands)	2022		2021		2020
Current:
Federal	$	43,883	$	12,761	$	7,619
State		11,358		2,912		2,150
Foreign		—		—		—
Total current		55,241		15,673		9,769
Deferred:
Federal		3,942		1,614		3,149
State		960		577		(554)
Foreign		—		—		—
Total deferred		4,902		2,191		2,595
Total income tax expense	$	60,143	$	17,864	$	12,364

Schedule of reconciliation between the Company's effective tax rate on income from operations and the statutory tax rate

The reconciliation between the Company’s effective tax rate on income from operations and the statutory tax rate is as follows:

	Fiscal Year Ended
	March 26,		March 27,		March 28,
	2022		2021		2020
Expected provision at statutory U.S. federal tax rate	21.0	%	21.0	%	21.0	%
State and local income taxes, net of federal tax benefit	4.0		4.1		3.6
Permanent items	—		0.1		0.2
Excess tax benefit of stock-based compensation	(2.9)		(3.5)		(3.5)
IRC Section 162(M)	1.7		1.9		0.9
Valuation allowance	—		—		(0.7)
Other	—		(0.4)		(1.0)
Effective tax rate	23.8	%	23.2	%	20.5	%

Schedule of significant components of the Company's net deferred tax assets (liabilities)

Deferred taxes reflect the net tax effects of the temporary differences between the carrying amount of assets and liabilities for financial reporting and the amount used for income tax purposes. Significant components of the Company’s net deferred tax liabilities as of March 26, 2022 and March 27, 2021 consisted of the following (in thousands):

	March 26		March 27,
	2022		2021
Deferred tax assets:
State taxes	$	1,189	$	327
Accrued liabilities		1,660		2,393
Award program liabilities		377		265
Deferred revenue		1,608		1,548
Inventory		6,053		4,319
Stock options		1,831		1,711
Net operating loss carryforward		—		748
Long-term lease liabilities		58,775		45,499
Other, net		2,747		1,516
Total deferred tax assets		74,240		58,326
Deferred tax liabilities:
Depreciation and amortization		(41,393)		(34,752)
Prepaid expenses		(709)		(401)
Right-of-use assets		(59,033)		(45,166)
Total deferred tax liabilities		(101,135)		(80,319)
Valuation allowance		—		—
Net deferred tax liabilities	$	(26,895)	$	(21,993)