Income Taxes (Tables)

12 Months Ended

Jan. 01, 2021

Income Tax Disclosure [Abstract]

Total Income Tax Expense

Total income tax expense for 2020, 2019 and 2018 consisted of the following:

	Fiscal Years
(In thousands)	2020			2019			2018
Current
Federal	$	11,553		$	16,498		$	16,487
Foreign		1,873			1,523			1,624
State		4,597			6,554			6,667
		18,023			24,575			24,778
Deferred
Federal		(2,766	)		(1,727	)		(2,604	)
State		(873	)		(1,118	)		(1,111	)
		(3,639	)		(2,845	)		(3,715	)
Total	$	14,384		$	21,730		$	21,063

Company's Effective Tax Rate Differs From Statutory Federal Tax Rate

The Company’s effective tax rate differs from the statutory federal tax rate of 21% as shown in the following schedule:

	Fiscal Years
(In thousands)	2020			2019			2018
Tax at federal statutory rate	$	20,357		$	21,880		$	19,597
State taxes, net of federal benefit		2,942			4,129			4,391
Divestiture of foreign subsidiary		46			956			—
Nondeductible officer compensation		907			759			—
Non-deductible expenses		118			345			335
Non-deductible stock-based compensation		(14	)		2			20
Excess tax benefit from equity incentive plans		(9,725	)		(6,394	)		(3,310	)
Difference between statutory rate and foreign effective tax rate		(486	)		(341	)		(217	)
Other		239			394			247
Tax expense	$	14,384		$	21,730		$	21,063
Effective tax rate		14.8	%		20.9	%		22.6	%

Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at January 1, 2021 and January 3, 2020 are presented in the following schedule:

	Fiscal Years
(In thousands)	2020			2019
Deferred tax assets:
Accrued liabilities and allowances	$	16,841		$	15,658
Deferred compensation plan		31,619			28,463
Operating leases		5,758			6,867
Total deferred tax assets	$	54,218		$	50,988
Deferred tax liabilities:
State taxes	$	(1,969	)	$	(1,624	)
Deductible goodwill		(2,091	)		(2,104	)
Operating leases		(5,758	)		(6,867	)
Property, equipment and leasehold improvements		(81	)		(84	)
Unrealized gain of deferred compensation plan assets		(3,545	)		(2,339	)
Divestiture of foreign subsidiary		—			(956	)
Other		(235	)		(193	)
Total deferred tax liabilities		(13,679	)		(14,167	)
Net deferred tax assets	$	40,539		$	36,821

Reconciliation of The Beginning and Ending Amount of Unrecognized Tax Benefits

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

Balance at December 28, 2018	$	1,748,000
Additions based on tax positions related to the current year		515,000
Reductions due to lapse of statute of limitations		(340,000	)
Balance at January 3, 2020	$	1,923,000
Additions based on tax positions related to the current year		275,000
Reductions due to lapse of statute of limitations		(325,000	)
Balance at January 1, 2021	$	1,873,000