Income Taxes (Tables)

12 Months Ended

Dec. 28, 2021

Income Taxes

Schedule of provision for income taxes

The provision for income taxes consisted of the following (in thousands):

	Fiscal Year
	2021		2020		2019
Income/(Loss) before income taxes	$	71,620	$	(356,036)	$	140,334
Income tax (benefit)/provision:
Current:
Federal	$	15,746	$	(38,414)	$	8,211
State		4,350		2,971		7,027
Total current		20,096		(35,443)		15,238
Deferred:
Federal		(20,434)		(52,607)		(3,695)
State		(415)		(14,621)		1,498
Total deferred		(20,849)		(67,228)		(2,197)
Total (benefit)/provision	$	(753)	$	(102,671)	$	13,041

Schedule of reconciles the U.S. federal statutory rate to the effective tax rate

	Fiscal Year
	2021		2020		2019
U.S. federal statutory rate	21.0	%	21.0	%	21.0	%
State and district income taxes, net of federal benefit	4.2		2.6		4.9
Credit for FICA taxes paid on tips	(24.2)		2.1		(12.8)
Other credits and incentives	(4.2)		0.3		(1.4)
Impact of net operating loss carryback	(6.3)		3.4		—
Deferred compensation	(2.9)		0.6		(1.7)
Equity compensation	0.0		(0.4)		(0.2)
Uncertain tax positions	10.3		0.0		0.0
Other	1.0		(0.8)		(0.5)
Effective tax rate	(1.1)	%	28.8	%	9.3	%

Schedule of deferred tax assets and liabilities

Following are the temporary differences that created our deferred tax assets and liabilities (in thousands):

	December 28, 2021		December 29, 2020
Deferred tax assets:
Staff member benefits	$	36,295	$	33,419
Insurance reserves		12,897		11,460
Operating lease liability		315,403		319,274
Deferred income		33,075		31,119
Tax credit carryforwards		34,871		37,107
Goodwill		19,103		15,632
Stock-based compensation		10,122		9,937
State and foreign net operating loss carryforwards		3,005		3,536
Derivative asset		—		1,409
Other		1,063		1,466
Subtotal		465,834		464,359
Less: Valuation allowance		(1,036)		(1,041)
Total	$	464,798	$	463,318
Deferred tax liabilities:
Property and equipment	$	(109,019)	$	(124,634)
Prepaid expenses		(7,312)		(7,027)
Inventory		(7,802)		(7,766)
Accrued rent		(5,087)		(4,947)
Operating lease asset		(277,220)		(280,845)
Other		(724)		(214)
Total	$	(407,164)	$	(425,433)
Net deferred tax asset/(liability)	$	57,634	$	37,885

Schedule of reconciliation of our uncertain tax positions

	Fiscal Year
	2021		2020		2019
Balance at beginning of year	$	655	$	704	$	830
Additions related to prior year tax positions		4,157		—		—
Additions related to current period tax positions		(13)		(49)		13
Reductions related to settlements with taxing authorities and lapses of statutes of limitations		—		—		(139)
Balance at end of year	$	4,799	$	655	$	704