Income Taxes (Tables)

12 Months Ended

Jan. 03, 2017

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes

The components of the provision (benefit) for income taxes are as follows for 2016, 2015 and 2014 (in thousands):

	2016			2015			2014
Current tax provision:
Federal	$	—		$	—		$	—
State	134			144			792
Foreign	—			—			—
	134			144			792
Deferred tax provision (benefit):
Federal	(1,979		)	(7,169		)	5,662
State	2,854			(1,495		)	668
Foreign	224			(214		)	—
	1,099			(8,878		)	6,330
Total provision (benefit) for income taxes	$	1,233		$	(8,734	)	$	7,122

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of income tax provision (benefit) that would result from applying the federal statutory rate to pre-tax income as shown in the accompanying Consolidated Statements of Operations is as follows for 2016, 2015 and 2014 (in thousands):

	2016			2015			2014
Federal income tax (benefit) expense at federal rate	$	(23,740	)	$	(7,650	)	$	6,299
State income tax expense (benefit), net of federal tax	(2,975		)	(960		)	972
Other permanent differences	996			378			170
Foreign rate differential	214			66			6
Tax credits	(749		)	(423		)	(241		)
Change in valuation allowance	27,353			—			—
Other items, net	134			(145		)	(84		)
Provision (benefit) for income taxes	$	1,233		$	(8,734	)	$	7,122
Effective income tax rate	(1.8		)%	38.8		%	38.4		%

Schedule of Deferred Tax Assets and Liabilities

eferred income taxes arise because of the differences in the book and tax bases of certain assets and liabilities. Deferred income tax liabilities and assets consist of the following (in thousands):

	2016			2015
Deferred tax assets (liabilities):
Loss carry forwards	$	14,046		$	4,234
Deferred rent and franchise revenue	17,753			15,802
Property, equipment and intangible assets	(14,130		)	(24,950		)
Stock-based compensation	2,802			2,833
Tax credit carry forwards	2,636			1,609
Inventory smallwares	(2,805		)	(2,589		)
Other accrued expenses	5,022			2,124
Other	1,594			1,601
Total net deferred tax assets	26,918			664
Valuation allowance	(27,353		)	—
Net deferred tax (liabilities) assets	$	(435	)	$	664