Income Taxes (Tables)

12 Months Ended

Dec. 27, 2020

Income Taxes

Schedule of Domestic and Foreign Components of Income (Loss) Before Income Taxes

The following table presents the domestic and foreign components of income (loss) before income taxes for 2020, 2019 and 2018 (in thousands):

	2020		2019		2018
Domestic income (loss)	$	48,616	$	(16,065)	$	(9,665)
Foreign income		26,746		21,111		16,362
Total income	$	75,362	$	5,046	$	6,697

Summary of the Provision for Income Taxes

A summary of the expense (benefit) for income tax follows (in thousands):

	2020		2019		2018
Current:
Federal	$	16,400	$	(2,734)	$	(5,262)
Foreign		6,047		5,077		4,736
State and local		1,569		810		1,530
Deferred:
Federal		(7,375)		(1,989)		2,256
Foreign		357		(662)		(153)
State and local		(2,250)		(1,113)		(483)
Total income tax expense (benefit)	$	14,748	$	(611)	$	2,624

Schedule of Significant Deferred Tax Assets (Liabilities)

Significant deferred tax assets (liabilities) follow (in thousands):

	December 27,		December 29,
	2020		2019
Accrued liabilities	$	17,740	$	16,686
Accrued bonuses		6,155		2,308
Other liabilities and asset reserves		18,763		16,244
Equity awards		6,760		7,196
Lease liabilities		32,374		30,756
Other		2,563		2,418
Net operating losses		8,139		8,205
Foreign tax credit carryforwards		14,405		10,049
Total deferred tax assets		106,899		93,862
Valuation allowances		(22,972)		(17,303)
Total deferred tax assets, net of valuation allowances		83,927		76,559
Deferred expenses		(9,623)		(9,521)
Accelerated depreciation		(21,337)		(27,299)
Goodwill		(9,801)		(9,510)
Right-of-use assets		(32,065)		(30,257)
Other		(1,249)		(782)
Total deferred tax liabilities		(74,075)		(77,369)
Net deferred tax assets (liabilities)	$	9,852	$	(810)

Schedule of Reconciliation of Income Tax Computed at the U.S. Federal Statutory Rate to Income Tax Expense

The reconciliation of income tax computed at the U.S. federal statutory rate to income tax expense (benefit) for the years ended December 27, 2020, December 29, 2019 and December 30, 2018 is as follows in both dollars and as a percentage of income before income taxes ($ in thousands):

	2020				2019				2018
	Income Tax		Income		Income Tax		Income		Income Tax		Income
	Expense		Tax Rate		(Benefit)		Tax Rate		Expense		Tax Rate
Tax at U.S. federal statutory rate	$	15,826	21.0	%	$	1,060	21.0	%	$	1,406	21.0	%
State and local income taxes		1,149	1.5	%		79	1.6	%		150	2.2	%
Foreign income taxes		6,463	8.6	%		5,058	100.2	%		4,879	72.9	%
Income of consolidated partnerships
attributable to noncontrolling interests		(603)	(0.8)	%		(177)	(3.5)	%		(371)	(5.6)	%
Non-qualified deferred compensation plan
(income) loss		(898)	(1.2)	%		(1,260)	(25.0)	%		483	7.2	%
Excess tax (benefits) expense on equity awards		(2,029)	(2.7)	%		(212)	(4.2)	%		447	6.7	%
Preferred stock option mark-to-market adjustment		—	—	%		1,338	26.5	%		—	—	%
Tax credits		(6,002)	(8.0)	%		(6,128)	(121.4)	%		(6,945)	(103.7)	%
Disposition of China		—	—	%		—	—	%		4,118	61.5	%
Other		842	1.1	%		(369)	(7.3)	%		(1,543)	(23.0)	%
Total	$	14,748	19.6	%	$	(611)	(12.1)	%	$	2,624	39.2	%

Schedule of Reconciliation of the Beginning and Ending Liability for Unrecognized Tax Benefits

The Company had $1.0 million of unrecognized tax benefits at December 27, 2020 which, if recognized, would affect the effective tax rate. A reconciliation of the beginning and ending liability for unrecognized tax benefits excluding interest and penalties is as follows, which is recorded as an other long-term liability (in thousands):

Balance at December 30, 2018	$	2,023
Additions for tax positions of prior years		179
Reductions for tax positions of prior years		(623)
Reductions for lapse of statute of limitations		—
Balance at December 29, 2019		1,579
Additions for tax positions of prior years		60
Reductions for tax positions of prior years		(426)
Reductions for lapse of statute of limitations		(183)
Balance at December 27, 2020	$	1,030