Income Taxes (Tables)

12 Months Ended

Dec. 29, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of the Provision for Income Taxes

The components of the provision for income taxes are as follows:

	Fiscal Year Ended
in thousands	December 29, 2022		December 30, 2021		December 31, 2020
Current expense (benefit):
Federal	$	73,463	$	37,869	$	(1,781)
State	16,489		9,927		4,391
Total current expense	89,952		47,796		2,610
Deferred expense (benefit):
Federal	(78)		4,853		11,684
State	(2,447)		(1,811)		(2,070)
Total deferred (benefit) expense	(2,525)		3,042		9,614
Provision for income taxes	$	87,427	$	50,838	$	12,224

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 29, 2022, December 30, 2021, and December 31, 2020 to income before income taxes:

	Fiscal Year Ended
in thousands	December 29, 2022		December 30, 2021		December 31, 2020
Computed “expected” provision at statutory rate	$	80,984	$	70,154	$	43,513
State income taxes, net of federal income tax benefit (1)	11,744		6,186		1,493
Permanent differences:
Excess tax benefit related to stock-based compensation awards	(3,762)		(25,710)		(27,003)
Other	874		908		517
Total permanent differences	(2,888)		(24,802)		(26,486)
Provision to return	183		(34)		(150)
Federal tax credits	(1,535)		(1,471)		(920)
CARES Act benefit	—		—		(7,676)
Uncertain tax positions	(848)		308		2,724
Other, net	(213)		497		(274)
Provision for income taxes	$	87,427	$	50,838	$	12,224

(1)     Includes state excess tax benefits related to stock-based compensation awards for fiscal years 2022, 2021, and 2020 of $0.8 million, $4.6 million, and $5.3 million, respectively.

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:

	Fiscal Year Ended
in thousands	December 29, 2022		December 30, 2021
Deferred tax assets:
Lease liabilities	$	339,972	$	308,198
Accruals not currently deductible for tax purposes	16,014		11,622
Stock-based compensation	11,320		8,754
Inventories	10,337		10,711
Other intangibles	4,187		335
Gift card liability	3,206		1,254
Other (1)	2,608		5,514
Total deferred tax assets	387,644		346,388
Deferred tax liabilities:
Right-of-use assets	(302,008)		(274,151)
Fixed assets	(85,621)		(70,289)
Intangible assets	(27,430)		(27,198)
Other	(2,840)		(5,876)
Total deferred tax liabilities	(417,899)		(377,514)
Net deferred tax liabilities	$	(30,255)	$	(31,126)

(1)    To conform to the current period presentation, the litigation accrual for December 30, 2021 is presented within other deferred tax assets.

Schedule of Unrecognized Tax Benefits Roll Forward

Following is a reconciliation of the beginning and ending balance of unrecognized tax benefits for periods presented:

	Fiscal Year Ended
in thousands	December 29, 2022		December 30, 2021		December 31, 2020
Unrecognized tax benefits balance at beginning of fiscal year	$	1,073	$	6,107	$	402
Additions based on tax positions related to the current year	—		390		281
Additions for tax positions of prior years	—		—		5,424
Reductions due to settlements	—		(5,424)		—
Reductions for tax positions of prior years	(1,073)		—		—
Unrecognized tax benefits balance at end of fiscal year	$	—	$	1,073	$	6,107