Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.20.4
Income Taxes (Tables)
 12 Months Ended
Dec. 27, 2020
Income Tax Disclosure [Abstract]  
Schedule of income (loss) before income tax
Loss before income taxes includes the following components for the fiscal years ended December 27, 2020, December 29, 2019, and December 30, 2018 (in thousands):
2020 2019 2018
U.S. $ (262,728) $ (14,549) $ (16,045)
Foreign (20,824) (7,688) (5,365)
Loss before income taxes $ (283,552) $ (22,237) $ (21,410)
Schedule of provision (benefit) for income taxes
The benefit for income taxes for the fiscal years ended December 27, 2020, December 29, 2019, and December 30, 2018 consist of the following (in thousands):
2020 2019 2018
Current:
Federal $ (60,340) $ (3,054) $ 2,043 
State 1,354  (1,687) 1,579 
Foreign —  —  — 
Total current income tax (benefit) expense $ (58,986) $ (4,741) $ 3,622 
Deferred:    
Federal $ 44,353  $ (10,994) $ (16,688)
State 8,086  1,354  (2,068)
Foreign (937) 47  143 
Total deferred income tax expense (benefit) 51,502  (9,593) (18,613)
Income tax benefit $ (7,484) $ (14,334) $ (14,991)
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 benefit and the amount of income tax computed by applying the U.S. federal statutory rate to loss before income taxes as shown in the accompanying consolidated statements of operations and comprehensive loss for fiscal years ended December 27, 2020, December 29, 2019, and December 30, 2018 is as follows:
2020 2019 2018
Tax provision at U.S. federal statutory rate 21.0  % 21.0  % 21.0  %
State income taxes 3.9  2.2  2.9 
FICA tip tax credits —  46.0  49.9 
Foreign taxes versus U.S statutory rate 0.2  0.8  0.9 
Valuation allowance on deferred income tax assets (27.9) (9.1) (7.5)
Impact of CARES Act and related method changes 5.5  —  — 
Other tax credits —  6.1  7.1 
Meals and entertainment —  (0.7) (0.8)
Excess stock options (0.1) (2.9) (0.6)
Employee travel —  (0.1) (2.1)
Other —  1.2  (0.8)
Effective tax rate 2.6  % 64.5  % 70.0  %
Schedule of the Company's total deferred tax assets and liabilities
The Company's federal and state deferred taxes at December 27, 2020 and December 29, 2019 are as follows (in thousands):
2020 2019
Deferred tax assets:
Leasing transactions $ 134,471  $ 131,679 
General business and other tax credits 40,366  40,409 
Net operating loss carryover 23,567  5,346 
Accrued compensation and related costs 11,893  5,970 
Goodwill 9,536  — 
Stock-based compensation 5,561  4,920 
Advanced payments 4,702  3,597 
Other non-current deferred tax assets 3,073  2,238 
Subtotal 233,169  194,159 
Valuation allowance (86,677) (7,293)
Total $ 146,492  $ 186,866 
Deferred tax liabilities:
Leasing transactions $ (112,860) $ (112,766)
Property and equipment (21,549) (757)
Supplies inventory (4,267) (4,611)
Prepaid expenses (2,884) (3,387)
Goodwill —  (12,138)
Other non-current deferred tax liabilities (4,932) (1,680)
Total $ (146,492) $ (135,339)
Net deferred tax asset $ —  $ 51,527 
Schedule of the Company's unrecognized tax benefits The following table summarizes the Company's unrecognized tax benefits at December 27, 2020 and December 29, 2019 (in thousands):
2020 2019
Beginning of year $ 104  $ 304 
Increase due to current year tax positions —  52 
Due to decrease to a position taken in a prior year (24) (170)
Settlements —  (16)
Reductions related to lapses —  (66)
End of year $ 80  $ 104