Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.3.a.u2
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