Income Taxes (Tables)
|
12 Months Ended |
Dec. 29, 2019 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of income (loss) before income tax |
Income (loss) before income taxes includes the following components for the fiscal years ended December 29, 2019, December 30, 2018, and December 31, 2017 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
2017 |
U.S. |
|
$ |
(14,549 |
) |
|
$ |
(16,045 |
) |
|
$ |
32,208 |
|
Foreign |
|
(7,688 |
) |
|
(5,365 |
) |
|
(3,188 |
) |
|
|
$ |
(22,237 |
) |
|
$ |
(21,410 |
) |
|
$ |
29,020 |
|
|
| Schedule of provision (benefit) for income taxes |
The benefit for income taxes for the fiscal years ended December 29, 2019, December 30, 2018, and December 31, 2017 consist of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
2017 |
Current: |
|
|
|
|
|
|
Federal |
|
$ |
(3,054 |
) |
|
$ |
2,043 |
|
|
$ |
2,304 |
|
State |
|
(1,687 |
) |
|
1,579 |
|
|
3,175 |
|
Foreign |
|
— |
|
|
— |
|
|
— |
|
Total current income tax (benefit) expense |
|
$ |
(4,741 |
) |
|
$ |
3,622 |
|
|
$ |
5,479 |
|
Deferred: |
|
|
|
|
|
|
Federal |
|
$ |
(10,994 |
) |
|
$ |
(16,688 |
) |
|
$ |
(6,045 |
) |
State |
|
1,354 |
|
|
(2,068 |
) |
|
(680 |
) |
Foreign |
|
47 |
|
|
143 |
|
|
247 |
|
Total deferred income tax benefit |
|
(9,593 |
) |
|
(18,613 |
) |
|
(6,478 |
) |
Income tax benefit |
|
$ |
(14,334 |
) |
|
$ |
(14,991 |
) |
|
$ |
(999 |
) |
|
| Schedule of reconciliation of income tax provision that would result from applying the federal statutory rate to income tax provision |
The reconciliation between the income tax provision and the amount of income tax computed by applying the U.S. federal statutory rate to income (loss) before the provision for income taxes as shown in the accompanying consolidated statements of operations and comprehensive (loss) income, for fiscal years ended December 29, 2019, December 30, 2018, and December 31, 2017 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
2017 |
Tax provision at U.S. federal statutory rate |
|
21.0 |
% |
|
21.0 |
% |
|
35.0 |
% |
State income taxes |
|
2.2 |
|
|
2.9 |
|
|
5.0 |
|
FICA tip tax credits |
|
46.0 |
|
|
49.9 |
|
|
(32.4 |
) |
Foreign taxes versus U.S statutory rate |
|
0.8 |
|
|
0.9 |
|
|
0.7 |
|
Valuation allowance on deferred income tax assets |
|
(9.1 |
) |
|
(7.5 |
) |
|
4.5 |
|
Deferred tax remeasurement due to the Tax Act |
|
— |
|
|
— |
|
|
(9.7 |
) |
Other tax credits |
|
6.1 |
|
|
7.1 |
|
|
(6.5 |
) |
Meals and entertainment |
|
(0.7 |
) |
|
(0.8 |
) |
|
0.9 |
|
Excess stock options |
|
(2.9 |
) |
|
(0.6 |
) |
|
(1.0 |
) |
Employee travel |
|
(0.1 |
) |
|
(2.1 |
) |
|
— |
|
Other |
|
1.2 |
|
|
(0.8 |
) |
|
— |
|
Effective tax rate |
|
64.5 |
% |
|
70.0 |
% |
|
(3.5 |
)% |
|
| Schedule of the Company's total deferred tax assets and liabilities |
The Company’s federal and state deferred taxes at December 29, 2019 and December 30, 2018 are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
Deferred tax assets and (liabilities), net: |
|
|
|
|
Leasing transactions |
|
$ |
18,913 |
|
|
$ |
14,603 |
|
Stock-based compensation |
|
4,920 |
|
|
5,434 |
|
General business and other tax credits |
|
40,409 |
|
|
25,872 |
|
Accrued compensation and related costs |
|
5,970 |
|
|
5,938 |
|
Advanced payments |
|
3,597 |
|
|
3,783 |
|
Other non-current deferred tax assets |
|
7,584 |
|
|
5,412 |
|
Other non-current deferred tax liabilities |
|
(1,680 |
) |
|
(2,605 |
) |
Goodwill and other amortization, net |
|
(12,138 |
) |
|
(11,003 |
) |
Property and equipment |
|
(757 |
) |
|
3,698 |
|
Prepaid expenses |
|
(3,387 |
) |
|
(3,600 |
) |
Supplies inventory |
|
(4,611 |
) |
|
(4,514 |
) |
Subtotal |
|
58,820 |
|
|
43,018 |
|
Valuation allowance |
|
(7,293 |
) |
|
(5,177 |
) |
Net deferred tax asset |
|
51,527 |
|
|
37,841 |
|
Non-current deferred tax asset |
|
52,438 |
|
|
38,688 |
|
Non-current deferred tax liability |
|
(911 |
) |
|
(847 |
) |
Total |
|
$ |
51,527 |
|
|
$ |
37,841 |
|
|
| Schedule of the Company's unrecognized tax benefits |
The following table summarizes the Company’s unrecognized tax benefits at December 29, 2019 and December 30, 2018 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
Beginning of year |
|
$ |
304 |
|
|
$ |
287 |
|
Increase due to current year tax positions |
|
52 |
|
|
82 |
|
Due to decrease to a position taken in a prior year |
|
(170 |
) |
|
(7 |
) |
Settlements |
|
(16 |
) |
|
(21 |
) |
Reductions related to lapses |
|
(66 |
) |
|
(37 |
) |
End of year |
|
$ |
104 |
|
|
$ |
304 |
|
|