Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2020 |
Income Tax Disclosure [Abstract] |
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Significant Components of the Provision for Income Taxes |
The following table presents the significant components of the provision for income taxes: | | | | | | | | | | | | | | | | | | | | | | | Fiscal Year | (in thousands) | | 2020 | | 2019 | | 2018 | Current: | | | | | | | Federal | | $ | 38,665 | | | $ | 7,505 | | | $ | (4,228) | | State | | 11,541 | | | 4,173 | | | (3,269) | | Total current provision (benefit) | | $ | 50,206 | | | $ | 11,678 | | | $ | (7,497) | | | | | | | | | Deferred: | | | | | | | Federal | | $ | 8,052 | | | $ | 4,514 | | | $ | 5,701 | | State | | 685 | | | (527) | | | 3,665 | | Total deferred provision (benefit) | | $ | 8,737 | | | $ | 3,987 | | | $ | 9,366 | | | | | | | | | Income tax expense | | $ | 58,943 | | | $ | 15,665 | | | $ | 1,869 | |
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Reconciliation of Income Tax Expense at Statutory Federal Rate to Actual Income Tax Expense |
The following table provides a reconciliation of income tax expense at the statutory federal rate to actual income tax expense: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fiscal Year | | | 2020 | | 2019 | | 2018 | (in thousands) | | Income tax expense | | % pre-tax income | | Income tax expense | | % pre-tax income | | Income tax expense | | % pre-tax loss | Statutory (income) / expense | | $ | 50,618 | | | 21.0 | % | | $ | 7,187 | | | 21.0 | % | | $ | (2,790) | | | 21.0 | % | State income taxes, net of federal benefit | | 9,258 | | | 3.8 | | | 1,352 | | | 4.0 | | | (376) | | | 2.8 | | Nondeductible compensation | | 3,007 | | | 1.3 | | | 4,313 | | | 12.6 | | | 2,851 | | | (21.5) | | Noncontrolling interest – Piedmont | | (2,447) | | | (1.0) | | | (1,826) | | | (5.3) | | | (1,238) | | | 9.3 | | Valuation allowance change | | (1,900) | | | (0.8) | | | 1,290 | | | 3.8 | | | 1,566 | | | (11.8) | | Meals, entertainment and travel expense | | 1,476 | | | 0.6 | | | 2,440 | | | 7.1 | | | 2,734 | | | (20.6) | | Nondeductible fees and expenses | | 311 | | | 0.1 | | | 887 | | | 2.6 | | | 568 | | | (4.3) | | Adjustment for uncertain tax positions | | 114 | | | — | | | (805) | | | (2.4) | | | 694 | | | (5.2) | | Adjustment for federal tax legislation | | — | | | — | | | — | | | — | | | (1,989) | | | 15.0 | | Other, net | | (1,494) | | | (0.5) | | | 827 | | | 2.4 | | | (151) | | | 1.2 | | Income tax expense | | $ | 58,943 | | | 24.5 | % | | $ | 15,665 | | | 45.8 | % | | $ | 1,869 | | | (14.1) | % |
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Reconciliation of Uncertain Tax Positions Excluding Accrued Interest |
A reconciliation of uncertain tax positions, excluding accrued interest, is as follows:
| | | | | | | | | | | | | | | | | | | | | | | Fiscal Year | (in thousands) | | 2020 | | 2019 | | 2018 | Beginning balance - gross uncertain tax positions | | $ | 2,283 | | | $ | 2,857 | | | $ | 2,286 | | Increase as a result of tax positions taken in the current year | | 61 | | | 60 | | | 571 | | Increase as a result of tax positions taken in a prior year | | 504 | | | — | | | — | | Reduction as a result of the expiration of the applicable statute of limitations | | (687) | | | (634) | | | — | | Ending balance - gross uncertain tax positions | | $ | 2,161 | | | $ | 2,283 | | | $ | 2,857 | |
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Temporary Differences and Carryforwards that Comprised Deferred Income Tax Assets and Liabilities |
Temporary differences and carryforwards that comprised deferred income tax assets and liabilities were as follows: | | | | | | | | | | | | | | | (in thousands) | | December 31, 2020 | | December 29, 2019 | Acquisition related contingent consideration | | $ | 107,769 | | | $ | 110,036 | | Operating lease liabilities | | 34,632 | | | 27,346 | | Deferred revenue | | 27,882 | | | 24,936 | | Deferred compensation | | 26,269 | | | 26,788 | | Accrued liabilities | | 22,341 | | | 19,266 | | Postretirement benefits | | 14,726 | | | 13,250 | | Pension | | 11,055 | | | 14,124 | | Transactional costs | | 4,451 | | | 4,857 | | Charitable contribution carryover | | 3,236 | | | 6,622 | | Net operating loss carryforwards | | 1,628 | | | 2,012 | | Financing lease agreements | | 1,618 | | | 2,432 | | Other | | 10,138 | | | 3,022 | | Deferred income tax assets | | $ | 265,745 | | | $ | 254,691 | | Less: Valuation allowance for deferred tax assets | | 5,325 | | | 7,190 | | Net deferred income tax asset | | $ | 260,420 | | | $ | 247,501 | | | | | | | Intangible assets | | $ | (182,585) | | | $ | (151,940) | | Depreciation | | (159,359) | | | (147,140) | | Right-of-use assets - operating leases | | (33,316) | | | (26,997) | | Inventory | | (13,709) | | | (12,631) | | Prepaid expenses | | (6,319) | | | (7,627) | | Patronage dividend | | (4,555) | | | (3,009) | | Investment in Piedmont | | — | | | (23,287) | | Deferred income tax liabilities | | $ | (399,843) | | | $ | (372,631) | | | | | | | Net deferred income tax liability | | $ | (139,423) | | | $ | (125,130) | |
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