Income Taxes (Tables)

12 Months Ended

Dec. 26, 2019

Income Taxes

Schedule of Deferred Tax Assets and Liabilities

The components of the net deferred tax liability are as follows:

	December 26, 2019		December 27, 2018
	(in thousands)
Accrued employee benefits	$	15,145	$	13,381
Depreciation and amortization		(69,100)		(59,296)
Operating lease assets		(62,339)		—
Operating lease liabilities		62,750		—
Other		5,282		3,938
Net deferred tax liability	$	(48,262)	$	(41,977)

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense consists of the following:

	Year Ended
	December 26,		December 27,		December 28,
	2019		2018		2017
	(in thousands)
Current:
Federal	$	1,187	$	7,022	$	8,707
State		2,041		3,181		1,558
Deferred:
Federal		9,228		2,815		(7,155)
State		(136)		109		515
	$	12,320	$	13,127	$	3,625

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the statutory federal tax rate to the effective tax rate on earnings attributable to The Marcus Corporation follows:

	Year Ended
	December 26,		December 27,		December 28,
	2019		2018		2017
Statutory federal tax rate	21.0	%	21.0	%	35.0	%
Tax benefit from Tax Cuts and Jobs Act of 2017	—		(2.9)		(30.9)
State income taxes, net of federal income tax benefit	5.5		6.1		4.8
Tax credits, net of federal income tax benefit	(2.7)		(1.1)		(0.8)
Other	(1.1)		(3.4)		(2.8)
	22.7	%	19.7	%	5.3	%

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending gross amounts of unrecognized tax benefit are as follows:

	Year Ended
	December 26,		December 27,		December 28,
	2019		2018		2017
	(in thousands)
Balance at beginning of year	$	—	$	102	$	414
Increases due to:
Tax positions taken in prior years		—		—		—
Tax positions taken in current year		—		—		—
Decreases due to:
Tax positions taken in prior years		—		—		—
Settlements with taxing authorities		—		(102)		—
Lapse of applicable statute of limitations		—		—		(312)
Balance at end of year	$	—	$	—	$	102