Income Taxes (Tables)
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12 Months Ended |
Dec. 29, 2022 |
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| Income Tax Disclosure [Abstract] |
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| Schedule of Components of the Provision for Income Taxes |
The components of the provision for income taxes are as follows:
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Fiscal Year Ended |
in thousands
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December 29,
2022 |
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December 30,
2021 |
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December 31,
2020 |
| Current expense (benefit): |
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Federal |
$ |
73,463 |
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$ |
37,869 |
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$ |
(1,781) |
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State |
16,489 |
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|
9,927 |
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|
4,391 |
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| Total current expense |
89,952 |
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|
47,796 |
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|
2,610 |
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| Deferred expense (benefit): |
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Federal |
(78) |
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|
4,853 |
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|
11,684 |
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State |
(2,447) |
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|
(1,811) |
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|
(2,070) |
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| Total deferred (benefit) expense |
(2,525) |
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|
3,042 |
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|
9,614 |
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| Provision for income taxes |
$ |
87,427 |
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$ |
50,838 |
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$ |
12,224 |
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| Schedule of Effective Income Tax Reconciliation |
The following is a summary of the differences between the total provision for income taxes as shown on the financial statements and the provision for income taxes that would result from applying the federal statutory tax rate of 21% for the fiscal years ended December 29, 2022, December 30, 2021, and December 31, 2020 to income before income taxes:
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Fiscal Year Ended |
in thousands
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December 29,
2022 |
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December 30,
2021 |
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December 31,
2020 |
| Computed “expected” provision at statutory rate |
$ |
80,984 |
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$ |
70,154 |
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$ |
43,513 |
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State income taxes, net of federal income tax benefit (1)
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11,744 |
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|
6,186 |
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|
1,493 |
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| Permanent differences: |
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| Excess tax benefit related to stock-based compensation awards |
(3,762) |
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(25,710) |
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(27,003) |
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| Other |
874 |
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|
908 |
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|
517 |
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| Total permanent differences |
(2,888) |
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(24,802) |
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(26,486) |
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| Provision to return |
183 |
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(34) |
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(150) |
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| Federal tax credits |
(1,535) |
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(1,471) |
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(920) |
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| CARES Act benefit |
— |
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— |
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(7,676) |
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| Uncertain tax positions |
(848) |
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|
308 |
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|
2,724 |
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| Other, net |
(213) |
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|
497 |
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|
(274) |
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| Provision for income taxes |
$ |
87,427 |
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$ |
50,838 |
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$ |
12,224 |
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(1) Includes state excess tax benefits related to stock-based compensation awards for fiscal years 2022, 2021, and 2020 of $0.8 million, $4.6 million, and $5.3 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 29,
2022 |
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December 30,
2021 |
| Deferred tax assets: |
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| Lease liabilities |
$ |
339,972 |
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$ |
308,198 |
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| Accruals not currently deductible for tax purposes |
16,014 |
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|
11,622 |
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| Stock-based compensation |
11,320 |
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|
8,754 |
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| Inventories |
10,337 |
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|
10,711 |
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| Other intangibles |
4,187 |
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|
335 |
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| Gift card liability |
3,206 |
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|
1,254 |
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Other (1)
|
2,608 |
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|
5,514 |
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| Total deferred tax assets |
387,644 |
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|
346,388 |
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| Deferred tax liabilities: |
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| Right-of-use assets |
(302,008) |
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|
(274,151) |
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| Fixed assets |
(85,621) |
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(70,289) |
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| Intangible assets |
(27,430) |
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(27,198) |
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| Other |
(2,840) |
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(5,876) |
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| Total deferred tax liabilities |
(417,899) |
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(377,514) |
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| Net deferred tax liabilities |
$ |
(30,255) |
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$ |
(31,126) |
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(1) To conform to the current period presentation, the litigation accrual for December 30, 2021 is presented within other deferred tax assets.
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| Schedule of Unrecognized Tax Benefits Roll Forward |
Following is a reconciliation of the beginning and ending balance of unrecognized tax benefits for periods presented:
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Fiscal Year Ended |
| in thousands |
December 29,
2022 |
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December 30,
2021 |
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December 31,
2020 |
| Unrecognized tax benefits balance at beginning of fiscal year |
$ |
1,073 |
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$ |
6,107 |
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$ |
402 |
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| Additions based on tax positions related to the current year |
— |
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|
390 |
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|
281 |
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| Additions for tax positions of prior years |
— |
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— |
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|
5,424 |
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| Reductions due to settlements |
— |
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(5,424) |
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— |
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| Reductions for tax positions of prior years |
(1,073) |
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— |
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— |
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| Unrecognized tax benefits balance at end of fiscal year |
$ |
— |
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$ |
1,073 |
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$ |
6,107 |
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