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