Income Taxes (Tables)

12 Months Ended

Jan. 01, 2017

Income Tax Disclosure [Abstract]

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)	2016			2015			2014
Current:
Federal	$	(6,920	)	$	20,107		$	13,153
State		27			3,563			2,163
Total current provision (benefit)	$	(6,893	)	$	23,670		$	15,316
Deferred:
Federal	$	39,644		$	10,638		$	3,638
State		3,298			(230	)		582
Total deferred provision (benefit)	$	42,942		$	10,408		$	4,220
Income tax expense	$	36,049		$	34,078		$	19,536

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
	2016						2015						2014
(in thousands)	Income tax expense			% pre-tax income			Income tax expense			% pre-tax income			Income tax expense			% pre-tax income
Statutory expense	$	32,449			35.0	%	$	34,692			35.0	%	$	19,474			35.0	%
State income taxes, net of federal benefit		3,243			3.5			3,496			3.5			2,133			3.8
Noncontrolling interest – Piedmont		(2,406	)		(2.6	)		(2,261	)		(2.3	)		(1,835	)		(3.3	)
Adjustment for uncertain tax positions		(43	)		-			51			0.1			30			0.1
Adjustment for state tax legislation		(625	)		(0.7	)		(1,145	)		(1.2	)		-			-
Valuation allowance change		(689	)		(0.7	)		(1,332	)		(1.3	)		1,203			2.2
Bargain purchase gain		-			-			(704	)		(0.7	)		-			-
Capital loss carryover		-			-			-			-			(854	)		(1.5	)
Manufacturing deduction benefit		(56	)		(0.1	)		(1,330	)		(1.3	)		(1,470	)		(2.6	)
Meals and entertainment		1,879			2.0			1,666			1.7			1,204			2.2
Other, net		2,297			2.5			945			0.9			(349	)		(0.8	)
Income tax expense	$	36,049			38.9	%	$	34,078			34.4	%	$	19,536			35.1	%

Reconciliation of Uncertain Tax Positions Excluding Accrued Interest

A reconciliation of uncertain tax positions, excluding accrued interest, is as follows:

	Fiscal Year
(in thousands)	2016			2015			2014
Gross uncertain tax positions at the beginning of the year	$	2,633		$	2,620		$	2,630
Increase as a result of tax positions taken during a prior period		-			-			-
Decrease as a result of tax positions taken during a prior period		-			-			-
Increase as a result of tax positions taken in the current period		687			547			498
Reduction as a result of the expiration of the applicable statute of limitations		(641	)		(534	)		(508	)
Gross uncertain tax positions at the end of the year	$	2,679		$	2,633		$	2,620

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)	January 1, 2017			January 3, 2016
Acquisition related contingent consideration	$	97,573		$	52,306
Deferred compensation		44,185			44,402
Postretirement benefits		32,656			27,086
Accrued liabilities		21,666			21,853
Pension (nonunion)		17,381			18,257
Transactional costs		7,155			5,879
Capital lease agreements		5,817			6,105
Charitable contribution carryover		4,409			-
Pension (union)		3,162			3,290
Net operating loss carryforwards		2,148			3,121
Other		111			-
Deferred income tax assets	$	236,263			182,299
Less: Valuation allowance for deferred tax assets		1,618			2,307
Net deferred income tax asset	$	234,645		$	179,992
Intangible assets	$	(204,661	)	$	(169,338	)
Depreciation		(134,872	)		(95,262	)
Investment in Piedmont		(45,128	)		(43,109	)
Inventory		(13,814	)		(9,928	)
Prepaid expenses		(6,300	)		(4,615	)
Patronage dividend		(4,724	)		(4,046	)
Debt exchange premium		-			(204	)
Other		-			(434	)
Deferred income tax liabilities	$	(409,499	)	$	(326,936	)
Net deferred income tax liability	$	(174,854	)	$	(146,944	)