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Income Taxes (Tables)
 12 Months Ended
Dec. 30, 2018
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
Income before income taxes is set forth below:
 
Year Ended
 
2018
 
2017
 
2016
Domestic
$
560,776

 
$
86,892

 
$
192,082

Foreign (a)
14,140

 
14,127

 
9,608

 
$
574,916

 
$
101,019

 
$
201,690


_______________

(a)
Excludes foreign income of domestic subsidiaries.
Schedule of Components of Income Tax (Expense) Benefit
The (provision for) benefit from income taxes is set forth below:
 
Year Ended
 
2018
 
2017
 
2016
Current:
 
 
 
 
 
U.S. federal
$
(109,078
)
 
$
(13,092
)
 
$
(75,167
)
State
(2,661
)
 
(4,055
)
 
(5,805
)
Foreign
(9,630
)
 
(9,173
)
 
(5,307
)
Current tax provision
(121,369
)
 
(26,320
)
 
(86,279
)
Deferred:
 
 
 
 
 
U.S. federal
5,071

 
127,592

 
7,975

State
441

 
(7,729
)
 
6,733

Foreign
1,056

 
(533
)
 
(495
)
Deferred tax benefit
6,568

 
119,330

 
14,213

Income tax (provision) benefit
$
(114,801
)
 
$
93,010

 
$
(72,066
)
Schedule of Deferred Tax Assets and Liabilities
Deferred tax assets (liabilities) are set forth below:
 
Year End
 
December 30, 2018
 
December 31, 2017
Deferred tax assets:
 
 
 
Net operating loss and credit carryforwards
$
59,690

 
$
66,770

Unfavorable leases
35,801

 
40,544

Deferred revenue
23,904

 
328

Deferred rent
16,807

 
14,862

Accrued expenses and reserves
14,840

 
9,673

Accrued compensation and related benefits
14,804

 
17,904

Other
5,016

 
3,977

Valuation allowances
(42,175
)
 
(47,295
)
Total deferred tax assets
128,687

 
106,763

Deferred tax liabilities:
 
 
 
Intangible assets
(324,394
)
 
(333,708
)
Owned and leased fixed assets, net of related obligations
(47,021
)
 
(47,702
)
Other
(26,432
)
 
(24,406
)
Total deferred tax liabilities
(397,847
)
 
(405,816
)
 
$
(269,160
)
 
$
(299,053
)
Summary of Net Operating Loss and Tax Credit Carryforwards
The amounts and expiration dates of net operating loss and tax credit carryforwards are as follows:
 
Amount
 
Expiration
Tax credit carryforwards:
 
 
 
U.S. federal foreign tax credits
$
9,267

 
2022-2029
State tax credits
559

 
2020-2023
Foreign tax credits of non-U.S. subsidiaries
2,674

 
Not applicable
Total
$
12,500

 
 
 
 
 
 
Net operating loss carryforwards:
 
 
 
State and local net operating loss carryforwards
$
1,204,260

 
2019-2035
Foreign net operating loss carryforwards
216

 
2023-2026
Total
$
1,204,476

 
 
Schedule of Effective Income Tax Rate Reconciliation
The reconciliation of income tax computed at the U.S. federal statutory rate of 21% for 2018 and 35% for 2017 and 2016 to reported income tax is set forth below:
 
Year Ended
 
2018 (a)
 
2017 (a)
 
2016
Income tax provision at the U.S. federal statutory rate
$
(120,732
)
 
$
(35,357
)
 
$
(70,592
)
State income tax provision, net of U.S. federal income tax effect
(221
)
 
(6,451
)
 
(3,767
)
Federal rate change
—

 
164,893

 
—

Prior years’ tax matters (b)
(9,970
)
 
15,964

 
—

Excess tax benefits from share-based compensation
10,250

 
5,196

 
—

Domestic tax planning initiatives
—

 
4,282

 
—

Foreign and U.S. tax effects of foreign operations
(856
)
 
2,408

 
2,278

Valuation allowances (b) (c)
5,120

 
(35,895
)
 
4,915

Non-deductible goodwill (d)
(41
)
 
(15,458
)
 
(6,409
)
Transition tax
—

 
(4,446
)
 
—

Unrepatriated earnings
(326
)
 
(1,801
)
 
—

Non-deductible expenses and other
1,975

 
(325
)
 
1,509

 
$
(114,801
)
 
$
93,010

 
$
(72,066
)
_______________

(a)
2018 includes the following impacts associated with the Tax Act: (1) a net expense of $2,426 related to the impact of the corporate rate reduction on our net deferred tax liabilities, (2) a net expense of $991 related to the limitations on the deductibility of certain executive compensation, (3) a net expense of $28 of state income tax and (4) a net benefit of $1,286 related to foreign tax credits. 2017 includes the following impacts associated with the Tax Act: (1) the revaluation of our U.S. net deferred tax liability at 21% resulting in a benefit of $164,893, (2) a full valuation allowance of $15,962 on our U.S. foreign tax credit carryforwards due to the decrease in the U.S. federal tax rate, resulting in the Company concluding it is more likely than not that we will not be able to utilize our carryforwards before they expire, (3) a one-time transition tax of $4,446, (4) deferred tax on unrepatriated earnings of $1,801 and (5) other net expenses of $2,305.

(b)
In 2018, includes expense of $9,542 related to the Tax Act, which was partially offset by a $7,535 reduction in valuation allowances. In 2017, primarily related to certain state net operating loss carryforwards, previously considered worthless, that existed at the beginning of the year. The Company changed its judgment during 2017 regarding the likelihood of the utilization of these carryforwards. Because of this change, the Company recognized a deferred tax asset of $16,643, net of federal benefit, which was partially offset by an increase in valuation allowance of $13,667, net of federal benefit.

(c)
2016 includes a $2,878 benefit related to the correction to a prior year identified and recorded in the first quarter of 2016.

(d)
Substantially all of the goodwill included in the net gain (loss) on sales of restaurants in 2018, 2017 and 2016 under our system optimization initiative was non-deductible for tax purposes. See Note 3 for further information. 2016 includes a $3,837 federal benefit related to the correction to a prior year identified and recorded in the second quarter of 2016. The corresponding state benefit correction of $398 is included in the state income tax provision amount above.

Schedule of Unrecognized Tax Benefits Roll Forward
As of December 30, 2018, the Company had unrecognized tax benefits of $27,632, which, if resolved favorably would reduce income tax expense by $23,497. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:
 
Year End
 
December 30,
2018
 
December 31,
2017
 
January 3,
2016
Beginning balance
$
28,848

 
$
19,545

 
$
21,224

Additions:
 
 
 
 
 
Tax positions of current year
3,874

 
8,251

 
306

Tax positions of prior years
2,598

 
1,704

 
440

Reductions:
 
 
 
 
 
Tax positions of prior years
(7,553
)
 
(295
)
 
(2,126
)
Settlements
(21
)
 
(34
)
 
(42
)
Lapse of statute of limitations
(114
)
 
(323
)
 
(257
)
Ending balance
$
27,632

 
$
28,848

 
$
19,545