Income Taxes (Tables)

12 Months Ended

Dec. 27, 2020

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations between the effective tax rate on income from continuing operations before income taxes and the federal statutory rate are presented below.


	December 27, 2020			December 29, 2019			December 30, 2018
(In thousands)	Amount		% of Pre-tax	Amount		% of Pre-tax	Amount		% of Pre-tax
Tax at federal statutory rate	$	24,241	21.0	$	34,537	21.0	$	36,979	21.0
State and local taxes, net	3,873		3.4	5,303		3.2	12,335		7.0
Effect of enacted changes in tax laws	—		—	—		—	(1,872)		(1.0)
(Decrease)/increase in uncertain tax positions	(2,509)		(2.2)	(2,427)		(1.5)	2,288		1.3
(Gain)/loss on company-owned life insurance	(635)		(0.6)	(1,662)		(1.0)	449		0.2
Nondeductible expense	800		0.7	1,938		1.2	1,808		1.0
Nondeductible executive compensation	1,271		1.1	(355)		(0.2)	2,135		1.2



Stock-based awards benefit	(7,251)		(6.3)	(6,184)		(3.8)	(1,795)		(1.0)
Deduction for foreign-derived intangible income	(686)		(0.6)	(2,625)		(1.6)	—		—
Research and experimentation credit	(3,892)		(3.4)	(5,672)		(3.4)	—		—
Other, net	(617)		(0.5)	1,641		1.0	(3,696)		(2.1)
Income tax expense	$	14,595	12.6	$	24,494	14.9	$	48,631	27.6

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense as shown in our Consolidated Statements of Operations were as follows:


(In thousands)	December 27, 2020		December 29, 2019		December 30, 2018
Current tax expense/(benefit)
Federal	$	21,414	$	16,283	$	31,719
Foreign	905		823		705
State and local	7,453		3,146		10,172
Total current tax expense	29,772		20,252		42,596
Deferred tax expense/(benefit)
Federal	(9,249)		5,588		913

State and local	(5,928)		(1,346)		5,122
Total deferred tax expense	(15,177)		4,242		6,035
Income tax expense	$	14,595	$	24,494	$	48,631

Schedule of Deferred Tax Assets and Liabilities

The components of the net deferred tax assets and liabilities recognized in our Consolidated Balance Sheets were as follows:


(In thousands)	December 27, 2020		December 29, 2019
Deferred tax assets
Retirement, postemployment and deferred compensation plans	$	103,433	$	113,306
Accruals for other employee benefits, compensation, insurance and other	25,899		25,543

Net operating losses	1,510		1,289
Operating lease liabilities	16,648		16,746
Other	32,664		27,042
Gross deferred tax assets	$	180,154	$	183,926
Valuation allowance	(293)		—
Net deferred tax assets	$	179,861	$	183,926
Deferred tax liabilities
Property, plant and equipment	$	41,832	$	39,494
Intangible assets	7,652		7,596
Operating lease right-of-use assets	14,196		14,309
Other	16,663		7,298
Gross deferred tax liabilities	$	80,343	$	68,697
Net deferred tax asset	$	99,518	$	115,229

Summary of Income Tax Contingencies

A reconciliation of unrecognized tax benefits is as follows:


(In thousands)	December 27, 2020		December 29, 2019		December 30, 2018
Balance at beginning of year	$	10,309	$	11,629	$	17,086
Gross additions to tax positions taken during the current year	1,130		1,184		680

Gross additions to tax positions taken during the prior year	133		711		3,019
Gross reductions to tax positions taken during the prior year	(93)		(76)		(8,607)
Reductions from settlements with taxing authorities	(3,814)		(2,637)		—
Reductions from lapse of applicable statutes of limitations	(928)		(502)		(549)
Balance at end of year	$	6,737	$	10,309	$	11,629