INCOME TAXES (Tables)

12 Months Ended

Dec. 29, 2019

INCOME TAXES

Schedule of income tax provision (benefit) related to continuing operations

	Years Ended
	December 29,		December 30,
(in thousands)	2019		2018
Current:
Federal	$	(24)	$	5,546
State		(507)		(429)
Deferred:
Federal		(4,729)		(961)
State		(1,019)		(6,326)
Income tax provision (benefit)	$	(6,279)	$	(2,170)

Schedule of reconciliation of effective tax rate expense (benefit) for continuing operations and the statutory federal income tax rate

	Years Ended
	December 29,		December 30,
	2019		2018
Statutory rate	(21.0)	%	(21.0)	%
State taxes, net of federal benefit	0.1		(4.3)
Changes in estimates	—		0.8
Changes in unrecognized tax benefits	(0.3)		(4.3)
Other	0.5		2.8
Impact of valuation allowance	6.5		23.0
Impact of tax rate changes	—		—
Goodwill impairment	12.6		—
Stock compensation	0.1		0.3
Effective tax rate	(1.5)	%	(2.7)	%

Schedule of components of deferred tax assets and liabilities

	December 29,		December 30,
(in thousands)	2019		2018
Deferred tax assets:
Compensation benefits	$	150,893	$	157,715
State taxes		1,533		1,909
State loss carryovers		9,398		4,006
Federal loss carryovers		4,899		—
Investments in unconsolidated subsidiaries		4,478		4,242
Deferred interest expense		33,069		15,342
Leases		15,564		—
Other		3,353		3,407
Total deferred tax assets		223,187		186,621
Valuation allowance		(176,069)		(143,764)
Net deferred tax assets		47,118		42,857
Deferred tax liabilities:
Depreciation and amortization		28,386		45,239
Debt discount		17,874		17,876
Leases ROU Asset		15,419		—
Other		466		517
Total deferred tax liabilities		62,145		63,632
Net deferred tax liabilities	$	(15,027)	$	(20,775)

Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits

	Years Ended
	December 29,		December 30,
(in thousands)	2019		2018
Balance at beginning of fiscal year	$	13,822	$	20,764
Increases based on tax positions in prior year		231		84
Decreases based on tax positions in prior year		(2,296)		(4,261)
Increases based on tax positions in current year		801		1,124
Settlements		—		(511)
Lapse of statute of limitations		(1,277)		(3,378)
Balance at end of fiscal year	$	11,281	$	13,822

Schedule of tax years and related taxing jurisdictions that were open for audit

	Open	Years Under
Taxing Jurisdiction	Tax Year	Exam
Federal	2016-2019	—
California	2015-2019	—
Other States	2006-2019	2015-2017