Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2017 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of income (loss) before income tax |
Income before income taxes includes the following components for the fiscal years ended December 31, 2017, December 25, 2016, and December 27, 2015 (in thousands):
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|
|
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2017 |
|
2016 |
|
2015 |
|
|
|
|
|
|
|
U.S. |
|
$ |
32,208 |
|
|
$ |
7,806 |
|
|
$ |
64,668 |
|
Foreign |
|
(3,188 |
) |
|
(3,018 |
) |
|
(1,432 |
) |
|
|
$ |
29,020 |
|
|
$ |
4,788 |
|
|
$ |
63,236 |
|
|
| Schedule of provision (benefit) for income taxes |
The (benefit) provision for income taxes for the fiscal years ended December 31, 2017, December 25, 2016, and December 27, 2015 consist of the following (in thousands):
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2017 |
|
2016 |
|
2015 |
Current: |
|
|
|
|
|
|
Federal |
|
$ |
2,304 |
|
|
$ |
2,503 |
|
|
$ |
6,427 |
|
State |
|
3,175 |
|
|
2,078 |
|
|
4,455 |
|
Foreign |
|
— |
|
|
— |
|
|
— |
|
Deferred: |
|
|
|
|
|
|
Federal |
|
(6,045 |
) |
|
(9,407 |
) |
|
4,013 |
|
State |
|
(680 |
) |
|
(2,300 |
) |
|
(1 |
) |
Foreign |
|
247 |
|
|
189 |
|
|
638 |
|
|
|
$ |
(999 |
) |
|
$ |
(6,937 |
) |
|
$ |
15,532 |
|
|
| 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 before the provision for income taxes as shown in the accompanying consolidated statements of operations for fiscal years ended December 31, 2017, December 25, 2016, and December 27, 2015 is as follows:
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|
2017 |
|
2016 |
|
2015 |
Tax provision at U.S. federal statutory rate |
|
35.0 |
% |
|
35.0 |
% |
|
35.0 |
% |
State income taxes |
|
5.0 |
|
|
(3.0 |
) |
|
4.3 |
|
FICA tip tax credits |
|
(32.4 |
) |
|
(183.8 |
) |
|
(12.8 |
) |
Foreign taxes versus U.S statutory rate |
|
0.7 |
|
|
6.7 |
|
|
0.3 |
|
Valuation allowance on deferred income tax assets |
|
4.5 |
|
|
19.3 |
|
|
1.5 |
|
Deferred tax remeasurement due to the Tax Act |
|
(9.7 |
) |
|
— |
|
|
— |
|
Other tax credits |
|
(6.5 |
) |
|
(27.7 |
) |
|
(3.6 |
) |
Meals and entertainment |
|
0.9 |
|
|
6.6 |
|
|
0.6 |
|
Other |
|
(1.0 |
) |
|
2.0 |
|
|
(0.7 |
) |
Effective tax rate |
|
(3.5 |
)% |
|
(144.9 |
)% |
|
24.6 |
% |
|
| Schedule of the Company's total deferred tax assets and liabilities |
The Company’s federal and state deferred taxes at December 31, 2017 and December 25, 2016 are as follows (in thousands):
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|
|
|
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|
|
|
|
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|
2017 |
|
2016 |
Deferred tax assets and (liabilities), net: |
|
|
|
|
Deferred rent |
|
$ |
14,024 |
|
|
$ |
20,039 |
|
Stock-based compensation |
|
5,267 |
|
|
7,500 |
|
General business and other tax credits |
|
18,269 |
|
|
13,982 |
|
Alternative minimum tax credits |
|
— |
|
|
1,241 |
|
Accrued compensation and related costs |
|
6,496 |
|
|
9,431 |
|
Advanced payments |
|
2,846 |
|
|
3,809 |
|
Other non-current deferred tax assets |
|
5,250 |
|
|
4,696 |
|
Other non-current deferred tax liabilities |
|
(2,013 |
) |
|
(2,790 |
) |
Goodwill |
|
(9,850 |
) |
|
(12,004 |
) |
Property and equipment |
|
(8,027 |
) |
|
(16,459 |
) |
Franchise rights |
|
(23 |
) |
|
(840 |
) |
Prepaid expenses |
|
(4,157 |
) |
|
(6,046 |
) |
Supplies inventory |
|
(5,150 |
) |
|
(7,495 |
) |
Subtotal |
|
22,932 |
|
|
15,064 |
|
Valuation Allowance |
|
(3,742 |
) |
|
(2,323 |
) |
Net deferred tax asset |
|
19,190 |
|
|
12,741 |
|
Non-current deferred tax asset |
|
19,932 |
|
|
13,206 |
|
Non-current deferred tax liability |
|
(742 |
) |
|
(465 |
) |
Total |
|
$ |
19,190 |
|
|
$ |
12,741 |
|
|
| Schedule of the Company's unrecognized tax benefits |
The following table summarizes the Company’s unrecognized tax benefits at December 31, 2017 and December 25, 2016 (in thousands):
|
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|
|
|
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|
|
|
|
|
|
2017 |
|
2016 |
Beginning of year |
|
$ |
170 |
|
|
$ |
228 |
|
Increase due to current year tax positions |
|
172 |
|
|
— |
|
Due to decrease to a position taken in a prior year |
|
(2 |
) |
|
— |
|
Settlements |
|
(11 |
) |
|
(12 |
) |
Reductions related to lapses |
|
(42 |
) |
|
(46 |
) |
End of year |
|
$ |
287 |
|
|
$ |
170 |
|
|