Income Taxes (Tables)
|
12 Months Ended |
Dec. 28, 2023 |
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| Income Tax Disclosure [Abstract] |
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| Schedule of Components of the Provision for Income Taxes |
The components of income tax expense are as follows:
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Fiscal Year Ended |
in thousands
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December 28,
2023 |
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December 29,
2022 |
|
December 30,
2021 |
Current expense: |
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|
|
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Federal |
$ |
29,737 |
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|
$ |
73,463 |
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|
$ |
37,869 |
|
State |
12,092 |
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|
16,489 |
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|
9,927 |
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| Total current expense |
41,829 |
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|
89,952 |
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|
47,796 |
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| Deferred expense (benefit): |
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|
|
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Federal |
24,792 |
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|
(78) |
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|
4,853 |
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State |
(1,070) |
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|
(2,447) |
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|
(1,811) |
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Total deferred expense (benefit) |
23,722 |
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|
(2,525) |
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|
3,042 |
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Income tax expense |
$ |
65,551 |
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|
$ |
87,427 |
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|
$ |
50,838 |
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| Schedule of Effective Income Tax Reconciliation |
The following is a summary of the differences between the total income tax expense as shown on the financial statements and the income tax expense that would result from applying the federal statutory tax rate of 21% for the fiscal years ended December 28, 2023, December 29, 2022, and December 30, 2021 to income before income taxes:
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Fiscal Year Ended |
in thousands
|
December 28,
2023 |
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December 29,
2022 |
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December 30,
2021 |
Computed “expected” income tax expense at statutory rate |
$ |
65,421 |
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|
$ |
80,984 |
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|
$ |
70,154 |
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State income taxes, net of federal income tax benefit (1)
|
8,824 |
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|
11,744 |
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|
6,186 |
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| Permanent differences: |
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| Excess tax benefit related to stock-based compensation awards |
(8,748) |
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|
(3,762) |
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(25,710) |
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| Other |
1,714 |
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|
874 |
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|
908 |
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| Total permanent differences |
(7,034) |
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|
(2,888) |
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(24,802) |
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| Provision to return |
578 |
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|
183 |
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|
(34) |
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| Federal tax credits |
(2,019) |
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|
(1,535) |
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(1,471) |
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| Uncertain tax positions |
— |
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|
(848) |
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|
308 |
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| Other, net |
(219) |
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|
(213) |
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|
497 |
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Income tax expense |
$ |
65,551 |
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|
$ |
87,427 |
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|
$ |
50,838 |
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(1) Includes state excess tax benefits related to stock-based compensation awards for fiscal years 2023, 2022, and 2021 of $1.8 million, $0.8 million, and $4.6 million, respectively.
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| Schedule of Deferred Tax Assets and Liabilities |
The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and (liabilities) are presented below:
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Fiscal Year Ended |
| in thousands |
December 28,
2023 |
|
December 29,
2022 |
| Deferred tax assets: |
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| Lease liabilities |
$ |
362,958 |
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$ |
339,972 |
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| Accruals not currently deductible for tax purposes |
20,072 |
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|
16,014 |
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| Inventories |
10,596 |
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|
10,337 |
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| Stock-based compensation |
10,039 |
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|
11,320 |
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| Other intangibles |
6,289 |
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|
4,187 |
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| Gift card liability |
3,109 |
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|
3,206 |
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Other |
2,918 |
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|
2,608 |
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| Total deferred tax assets |
415,981 |
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|
387,644 |
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| Deferred tax liabilities: |
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| Right-of-use assets |
(322,033) |
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|
(302,008) |
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| Fixed assets |
(113,130) |
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|
(85,621) |
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| Intangible assets |
(27,493) |
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|
(27,430) |
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| Other |
(6,286) |
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|
(2,840) |
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| Total deferred tax liabilities |
(468,942) |
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|
(417,899) |
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| Net deferred tax liabilities |
$ |
(52,961) |
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$ |
(30,255) |
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| Schedule of Unrecognized Tax Benefits Roll Forward |
The following is a reconciliation of the beginning and ending balance of unrecognized tax benefits for fiscal years 2022 and 2021:
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Fiscal Year Ended |
| in thousands |
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|
December 29,
2022 |
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December 30,
2021 |
| Unrecognized tax benefits balance at beginning of fiscal year |
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$ |
1,073 |
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$ |
6,107 |
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| Additions based on tax positions related to the current year |
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— |
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|
390 |
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| Reductions due to settlements |
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— |
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(5,424) |
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| Reductions for tax positions of prior years |
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|
(1,073) |
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— |
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| Unrecognized tax benefits balance at end of fiscal year |
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$ |
— |
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$ |
1,073 |
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