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Income Taxes
 12 Months Ended
Dec. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Provision for Income Taxes

Provision for income taxes consisted of the following:
CurrentDeferredTotal
2023
Federal$20,363 $(36,935)$(16,572)
State6,137 (11,321)(5,184)
Foreign23,394 474 23,868 
$49,894 $(47,782)$2,112 
2022
Federal$81,564 $12,609 $94,173 
State15,902 5,546 21,448 
Foreign25,966 (1,627)24,339 
$123,432 $16,528 $139,960 
2021
Federal$83,979 $47,558 $131,537 
State22,927 10,240 33,167 
Foreign20,186 988 21,174 
$127,092 $58,786 $185,878 
The provision for income taxes differed from the amount computed by applying the federal statutory income tax rate due to:
Year Ended
December 30, 2023December 31, 2022January 1, 2022
Income before provision for income taxes at statutory U.S. federal income tax rate (21% for 2023, 2022 and 2021)
$6,689 $126,730 $163,965 
State income taxes, net of federal income tax
(4,962)16,222 27,517 
Other, net385 (2,992)(5,604)
Provision for income taxes$2,112 $139,960 $185,878 

Deferred Income Tax Assets (Liabilities)

Temporary differences that give rise to significant deferred income tax assets (liabilities) were as follows:
December 30, 2023December 31, 2022
Deferred income tax assets:
Accrued expenses not currently deductible for tax$22,377 $19,589 
Share-based compensation10,698 12,642 
Accrued medical and workers compensation9,704 13,666 
Net operating loss carryforwards3,273 3,577 
Operating lease liabilities670,030 678,432 
Other, net13,602 9,291 
Total deferred income tax assets before valuation allowances729,684 737,197 
Less: Valuation allowance(5,179)(5,036)
Total deferred income tax assets724,505 732,161 
Deferred income tax liabilities:
Property and equipment(91,084)(125,651)
Inventories(219,446)(226,499)
Intangible assets(136,366)(137,464)
Operating lease right-of-use assets(640,151)(653,296)
Total deferred income tax liabilities(1,087,047)(1,142,910)
Net deferred income tax liabilities$(362,542)$(410,749)

As of December 30, 2023 and December 31, 2022, our net operating loss (“NOL”) carryforwards comprised state NOLs of $102.2 million and $108.9 million. These NOLs may be used to reduce future taxable income and expire periodically through 2039. Due to uncertainties related to the realization of these NOLs in certain jurisdictions, as well as other credits available to us, we have recorded a valuation allowance of $2.9 million as of December 30, 2023 and $3.0 million as of December 31, 2022. In addition, we recorded a $2.2 million valuation allowance on foreign tax credit carryforwards as of December 30, 2023. The amount of deferred income tax assets realizable could change in the future if projections of future taxable income change.

We have not recorded deferred taxes when earnings from foreign operations are considered to be indefinitely invested outside of the U.S. As of December 30, 2023 and December 31, 2022, these accumulated net earnings generated by our foreign operations were $118.3 million and $98.7 million, which did not include earnings deemed to be repatriated as part of the U.S. Tax Cuts and Jobs Act. It is not practicable to determine the income tax liability that would be payable if such earnings were repatriated.
Unrecognized Tax Benefits

The following table summarizes the activity of our gross unrecognized tax benefits:
December 30, 2023December 31, 2022January 1, 2022
Unrecognized tax benefits, beginning of period$15,211 $20,979 $26,967 
Increases related to prior period tax positions245 75 484 
Decreases related to prior period tax positions— (261)(849)
Increases related to current period tax positions563 928 2,240 
Settlements— (256)(2,993)
Expiration of statute of limitations(4,829)(6,254)(4,870)
Unrecognized tax benefits, end of period$11,190 $15,211 $20,979 

As of December 30, 2023, December 31, 2022 and January 1, 2022, the entire amount of unrecognized tax benefits, if recognized, would reduce our annual effective tax rate of 6.6%, 23.2% and 23.8%. During 2023, 2022 and 2021, we recorded income tax-related interest and penalties of $0.2 million, $0.6 million and $0.7 million due to uncertain tax positions included in the Provision for income taxes in the accompanying Consolidated Statements of Operations. As of December 30, 2023 and December 31, 2022, we recorded a liability for potential interest of $2.5 million and $2.7 million and for potential penalties of $0.1 million for each year. We do not provide for any penalties associated with tax contingencies unless considered probable of assessment. We do not expect our unrecognized tax benefits to change significantly over the next 12 months. With few exceptions, we are no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years before 2020.