Income Taxes (Tables)

12 Months Ended

Jan. 01, 2023

Income Tax Disclosure [Abstract]

Schedule of Income (Loss) Before Income Taxes

Income (loss) before income taxes consisted of:

	Fiscal Years Ended
	January 1, 2023		January 2, 2022		January 3, 2021
Domestic	$	(49,910)	$	(49,348)	$	(47,080)
Foreign	41,747		45,250		(4,748)
Loss before income taxes	$	(8,163)	$	(4,098)	$	(51,828)

Schedule of Components of Income Tax Expense (Benefit)

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

	Fiscal Years Ended
	January 1, 2023		January 2, 2022		January 3, 2021
Current:
Federal	$	—	$	—	$	—
State	1,033		347		156
International	13,816		13,894		8,992
Total current	$	14,849	$	14,241	$	9,148
Deferred and other:
Federal	$	(13,960)	$	4,310	$	(8,844)
State	4,280		(5,739)		13,472
International	(4,557)		(2,067)		(4,664)
Total deferred and other	$	(14,237)	$	(3,496)	$	(36)
Income tax expense	$	612	$	10,745	$	9,112

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the statutory U.S. federal income tax rate and the Company’s effective tax rate is as follows:

	Fiscal Years Ended
	January 1, 2023		January 2, 2022		January 3, 2021
Statutory federal rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	12.6		(2.8)		4.1
Foreign operations	(66.8)		(12.9)		(10.7)
Change in valuation allowance	24.9		14.3		(34.9)
Noncontrolling interest	17.2		46.8		2.6
Impact of uncertain tax positions	62.2		9.1		(1.3)
Other permanent differences	(1.5)		(14.2)		1.3
Transaction costs	(0.1)		(5.1)		(0.8)
Deferred adjustments	(48.7)		(96.1)		(0.9)
Share-based compensation	(30.3)		(217.4)		—
Other	2.0		(4.9)		2.0
Effective tax rate	(7.5)	%	(262.2)	%	(17.6)	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences are as follows:

	As of
	January 1, 2023		January 2, 2022
Deferred income tax assets:
Intangible assets	$	1,499	$	1,665
Accrued compensation	3,019		4,330
Insurance accruals	2,296		1,934
Share-based compensation	2,483		2,786
Deferred revenue	2,016		1,735
Transaction costs	1,481		1,397
Disallowed interest expense	20,685		10,527
Lease liabilities	107,850		101,629
Foreign net operating loss carryforward	2,147		2,565
Federal net operating loss carryforward	27,086		22,493
Federal tax credits	15,121		13,913
State net operating loss and credit carryforwards	11,888		11,169
Unrealized loss on foreign currency translation	—		3,667
Other	11,333		9,567
Gross deferred income tax assets	208,904		189,377
Valuation allowance	(27,940)		(29,972)
Deferred income tax assets, net of valuation allowance	$	180,964	$	159,405
Deferred income tax liabilities:
Intangible assets	$	(149,928)	$	(147,621)
Subsidiary investments	(12,181)		(8,038)
Property and equipment	(23,912)		(14,254)
Foreign reacquired franchise rights	(31,677)		(37,600)
Lease right of use assets	(97,076)		(93,250)
Unrealized income on foreign currency translation	(4,750)		—
Other	(1,831)		(3,683)
Gross deferred income tax liabilities	(321,355)		(304,446)
Net deferred income tax liabilities	$	(140,391)	$	(145,041)

The presentation of deferred income taxes on the Consolidated Balance Sheets is as follows:

	As of
	January 1, 2023		January 2, 2022
Included in:
Other assets	$	2,733	$	377
Deferred income taxes, net	(143,124)		(145,418)
Net deferred income tax liabilities	$	(140,391)	$	(145,041)

Schedule of Unrecognized Tax Benefits

The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits:

	As of
	January 1, 2023		January 2, 2022
Unrecognized tax benefits at beginning of year	$	18,478	$	17,341
Increases related to positions taken in the current year	—		1,383
Increases (decreases) related to positions taken in prior years	(221)		(246)
Decreases related to positions taken in prior years due to lapse of statute	(4,744)		—
Unrecognized tax benefits at end of year	$	13,513	$	18,478