Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of components of the provision for income taxes

The components of the provision for income taxes are as follows (in thousands):


	Fiscal Year Ended December 31, 2020		Fiscal Year Ended December 26, 2019		Fiscal Year Ended December 27, 2018
Current (benefit) / expense:
Federal	$	(1,781)	$	7,975	$	5,496
State	4,391		2,358		1,669
Total current expense	2,610		10,333		7,165
Deferred expense / (benefit):
Federal	11,684		(6,522)		922
State	(2,070)		(4,062)		(1,890)
Total deferred expense / (benefit)	9,614		(10,584)		(968)
Provision (benefit) for income taxes	$	12,224	$	(251)	$	6,197

Schedule of effective income tax reconciliation

The following is a summary of the differences between the total provision for income taxes as shown on the financial statements and the provision for income taxes that would result from applying the federal statutory tax rate of 21% for the fiscal years ended December 31, 2020, December 26, 2019, and December 27, 2018 to income before income taxes (in thousands).


	Fiscal Year Ended December 31, 2020		Fiscal Year Ended December 26, 2019		Fiscal Year Ended December 27, 2018
Computed “expected” provision at statutory rate	$	43,513	$	31,580	$	25,700
State income taxes, net of federal income tax benefit	1,493		(1,364)		(627)
Permanent differences:
Excess tax benefit related to options exercised	(27,003)		(29,441)		(17,478)
Other	517		543		457
Total permanent differences	(26,486)		(28,898)		(17,021)
Change in U.S. tax rate	—		—		(573)
Provision to return	(150)		(282)		(739)
Federal tax credits	(920)		(1,306)		(685)
CARES Act benefit	(7,676)		—		—
Uncertain Tax Positions	2,724		—		—
Other, net	(274)		19		142
Provision (benefit) for income taxes	$	12,224	$	(251)	$	6,197

Schedule of deferred tax assets and liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and (liabilities) are presented below (in thousands):


	Fiscal Year Ended December 31, 2020		Fiscal Year Ended December 26, 2019
Deferred tax assets:
Accruals not currently deductible for tax purposes	$	8,293	$	2,820
Inventories	6,941		5,283
Stock-based compensation	5,979		3,984
Other intangibles	268		313
Gift card liability	557		453
Litigation accrual	120		139
Lease liabilities	259,273		233,106
Other	10,732		3,718
Total deferred tax assets	292,163		249,816
Deferred tax liabilities:
Intangible assets	(27,053)		(26,939)
Fixed assets	(62,374)		(35,576)
Right-of-use assets	(227,166)		(203,028)
Other	(3,560)		(2,651)
Total deferred tax liabilities	(320,153)		(268,194)
Net deferred tax liabilities	$	(27,990)	$	(18,378)

Schedule of Unrecognized Tax Benefits Roll Forward


	Fiscal Year Ended December 31, 2020		Fiscal Year Ended December 26, 2019		Fiscal Year Ended December 27, 2018
Unrecognized tax benefits balance at beginning of fiscal year	$	402	$	—	$	—
Additions based on tax positions related to the current year	281		282		—
Additions for tax positions of prior years	5,424		120		—
Unrecognized tax benefits balance at end of fiscal year	$	6,107	$	402	$	—