Income Taxes (Tables)

12 Months Ended

Jan. 01, 2019

The components of the (benefit) provision for income taxes are as follows for 2018, 2017 and 2016 (in thousands):



	2018			2017			2016
Current tax provision:
Federal	$	—		$	—		$	—
State	35			21			134
Foreign	—			—			—
	35			21			134
Deferred tax (benefit) provision:
Federal	(202		)	(252		)	(1,979		)
State	(81		)	24			2,854
Foreign	—			—			224
	(283		)	(228		)	1,099
Total (benefit) provision for income taxes	$	(248	)	$	(207	)	$	1,233

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of income tax (benefit) provision 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 2018, 2017 and 2016 (in thousands):



	2018			2017			2016
Federal income tax benefit at federal rate	$	(1,825	)	$	(12,814	)	$	(23,740	)
State income tax benefit, net of federal tax	(623		)	(1,790		)	(2,975		)
Other permanent differences	70			674			996
Foreign rate differential	—			(463		)	214
Tax credits	(602		)	(808		)	(749		)
Change in valuation allowance	2,600			(159		)	27,353
Tax rate change	(248		)	13,632			—
Deferred tax asset write-off	212			2,618			—
Other items, net	168			(1,097		)	134
(Benefit) provision for income taxes	$	(248	)	$	(207	)	$	1,233
Effective income tax rate	2.9		%	0.5		%	(1.8		)%

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):



	2018			2017
Deferred tax assets (liabilities):
Loss carry forwards	$	32,896		$	26,991
Deferred rent and franchise revenue	10,433			10,486
Property, equipment and intangible assets	(10,472		)	(9,858		)
Stock-based compensation	1,242			1,086
Tax credit carry forwards	3,528			3,123
Interest expense	998			—
Inventory smallwares	(1,740		)	(1,774		)
Other accrued expenses	959			4,320
Other	795			1,021
Total net deferred tax assets	38,639			35,395
Valuation allowance	(38,772		)	(35,811		)
Net deferred tax liabilities	$	(133	)	$	(416	)