Income Taxes |
6 Months Ended |
|---|---|
Jul. 12, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 20. INCOME TAXES The company’s effective tax rate for the twelve weeks ended July 12, 2025 was 25.6% compared to 25.9% for the twelve weeks ended July 13, 2024. The decrease in the rate was primarily due to year-over-year differences in state income taxes recorded discretely. During the twelve weeks ended July 12, 2025 and July 13, 2024, the primary differences in the effective rate and the statutory rate were state income taxes. The company’s effective tax rate for the twenty-eight weeks ended July 12, 2025 was 25.6% compared to 24.9% for the twenty-eight weeks ended July 13, 2024. The increase in the rate was primarily due to a larger net discrete tax expense in the current year when compared to the discrete tax expense for the prior year. For the periods presented, the discrete items in the effective rate relate to state income taxes, shortfalls in the current year period and windfalls in the prior year period on the vesting of stock-based compensation awards, and benefits recognized from tax credits. During the twenty-eight weeks ended July 12, 2025 and July 13, 2024, the primary differences in the effective rate and the statutory rate were state income taxes. During the twelve weeks ended July 12, 2025, new tax legislation was enacted under the One Big Beautiful Bill Act (the “Act”). The Act includes a wide range of tax provisions that could impact the company’s financial results in 2025 and future periods. Significant impacts stemming from the Act include 2025 and future expensing of U.S. based research and development expenditures under Internal Revenue Code Section 174, coupled with the option to deduct previously capitalized research and development expenditures. The Act also reestablished elective 100% initial-year bonus depreciation. Due to the timing of enactment within our current period end, the company has undergone efforts to reasonably estimate the impact of the Act to our financial statements. As such, the company has recorded an estimate of $25 million of deferred tax activity through the twenty-eight weeks ended July 12, 2025 related to the Act. This estimate will continue to be assessed and will be adjusted to reflect additional year-to-date activity as the year progresses. The company is awaiting guidance from the U.S. Department of the Treasury and will continue to evaluate the full impact of the Act. During the twenty-eight weeks ended July 12, 2025, the company’s activity with respect to its uncertain tax positions and related interest expense accrual was not significant to the Condensed Consolidated Financial Statements. As of July 12, 2025, we do not anticipate significant changes to the amount of gross unrecognized tax benefits over the next twelve months. |