Income Taxes (Tables)

12 Months Ended

Dec. 28, 2021

Schedule of the Components of the Provision for Income Taxes

The components of the provision for income taxes are as follows for 2021, 2020 and 2019 (in thousands):


	2021		2020		2019
Current tax provision:
Federal	$	—	$	—	$	—
State	41		44		36
	41		44		36
Deferred tax provision:
Federal	23		30		52
State	6		10		16
	29		40		68
Total provision for income taxes	$	70	$	84	$	104

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 2021, 2020 and 2019 (in thousands):


	2021			2020			2019
Federal income tax provision (benefit) at federal rate	$	784		$	(4,867)		$	368
State income tax provision (benefit), net of federal tax	162			(1,191)			168
Other permanent differences	(17)			288			327
Tax credits	(1,297)			(390)			(408)
Change in valuation allowance	244			6,104			(913)
Tax rate change	6			(25)			23
Deferred tax asset write-off	207			157			566
Other items, net	(19)			8			(27)
Provision for income taxes	$	70		$	84		$	104
Effective income tax rate	1.9		%	(0.4)		%	5.9		%

Schedule of Deferred Tax Assets and Liabilities

The Company’s total deferred tax assets and liabilities are as follows (in thousands):


	2021		2020
Deferred tax assets	$	110,098	$	111,831
Deferred tax liabilities	(64,603)		(66,551)
Total deferred tax assets	45,495		45,280
Valuation allowance	(45,764)		(45,520)
Net deferred tax liabilities	$	(269)	$	(240)

Deferred 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):


	2021		2020
Deferred tax assets (liabilities):
Loss carry forwards	$	37,534	$	37,852
Deferred franchise revenue	1,128		1,506
Property, equipment and intangible assets	(11,821)		(11,063)
Stock-based compensation	1,676		1,384
Tax credit carry forwards	5,624		4,326
Inventory smallwares	(1,646)		(1,740)
Other accrued expenses	1,154		1,861
Operating lease assets	(51,136)		(53,748)
Operating lease liabilities	61,844		63,799
Other	1,138		1,103
Total net deferred tax assets	45,495		45,280
Valuation allowance	(45,764)		(45,520)
Net deferred tax liabilities	$	(269)	$	(240)