Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.4
Income Taxes (Tables)
12 Months Ended
Dec. 25, 2022
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 25, 2022, December 26, 2021, and December 27, 2020 (in thousands):
2022 2021 2020
U.S. $ (76,893) $ (49,978) $ (262,728)
Foreign (160) (176) (20,824)
Loss before income taxes $ (77,053) $ (50,154) $ (283,552)
Schedule of provision (benefit) for income taxes
The benefit for income taxes for the fiscal years ended December 25, 2022, December 26, 2021, and December 27, 2020 consist of the following (in thousands):
2022 2021 2020
Current:
Federal $ 374  $ —  $ (60,340)
State 373  (152) 1,354 
Foreign —  —  — 
Total current income tax (benefit) $ 747  $ (152) $ (58,986)
Deferred:    
Federal $ —  $ —  $ 44,353 
State —  —  8,086 
Foreign —  —  (937)
Total deferred income tax expense (benefit) —  —  51,502 
Income tax benefit $ 747  $ (152) $ (7,484)
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 25, 2022, December 26, 2021, and December 27, 2020 is as follows:
2022 2021 2020
Tax provision at U.S. federal statutory rate 21.0  % 21.0  % 21.0  %
State income taxes 4.0  3.8  3.9 
Foreign taxes versus U.S statutory rate —  —  0.2 
Valuation allowance on deferred income tax assets (24.2) (25.2) (27.9)
Impact of CARES Act and related method changes —  —  5.5 
Excess stock options (1.1) 1.1  (0.1)
Other (0.7) (0.4) — 
Effective tax rate (1.0) % 0.3  % 2.6  %
Schedule of the Company's total deferred tax assets and liabilities
The Company's federal and state deferred taxes at December 25, 2022 and December 26, 2021 are as follows (in thousands):
2022 2021
Deferred tax assets:
Leasing transactions $ 115,832  $ 126,981 
General business and other tax credits 40,802  40,472 
Net operating loss carryover 48,341  36,069 
Accrued compensation and related costs 8,651  9,738 
Goodwill 7,851  8,296 
Stock-based compensation 7,309  6,461 
Advanced payments 1,371  3,912 
Other non-current deferred tax assets 8,726  5,782 
Subtotal 238,883  237,711 
Valuation allowance (116,284) (99,093)
Total $ 122,599  $ 138,618 
Deferred tax liabilities:
Leasing transactions $ (97,871) $ (108,067)
Property and equipment (11,550) (17,600)
Supplies inventory (4,047) (4,128)
Prepaid expenses (1,906) (2,517)
Other non-current deferred tax liabilities (7,225) (6,306)
Total $ (122,599) $ (138,618)
Net deferred tax asset $ —  $ — 
Schedule of the Company's unrecognized tax benefits The following table summarizes the Company's unrecognized tax benefits at December 25, 2022, December 26, 2021, and December 27, 2020 (in thousands):
2022 2021 2020
Beginning of year $ 32  $ 80  $ 104 
Increase due to current year tax positions 177  — 
Due to decrease to a position taken in a prior year —  —  (24)
Settlements —  —  — 
Reductions related to lapses in the statute of limitations (24) (51) — 
End of year $ 185  32  $ 80