Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.20.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Schedule of components of the provision for income taxes
The components of the provision for income taxes are as follows (in thousands):
Fiscal Year Ended December 31,
2020
Fiscal Year Ended December 26,
2019
Fiscal Year Ended December 27,
2018
Current (benefit) / expense:
Federal
$ (1,781) $ 7,975  $ 5,496 
State
4,391  2,358  1,669 
Total current expense 2,610  10,333  7,165 
Deferred expense / (benefit):
Federal
11,684  (6,522) 922 
State
(2,070) (4,062) (1,890)
Total deferred expense / (benefit) 9,614  (10,584) (968)
Provision (benefit) for income taxes $ 12,224  $ (251) $ 6,197 
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 31, 2020, December 26, 2019, and December 27, 2018 to income before income taxes (in thousands).
Fiscal Year Ended December 31,
2020
Fiscal Year Ended December 26,
2019
Fiscal Year Ended December 27,
2018
Computed “expected” provision at statutory rate $ 43,513  $ 31,580  $ 25,700 
State income taxes, net of federal income tax benefit 1,493  (1,364) (627)
Permanent differences:
Excess tax benefit related to options exercised (27,003) (29,441) (17,478)
Other 517  543  457 
Total permanent differences (26,486) (28,898) (17,021)
Change in U.S. tax rate —  (573)
Provision to return (150) (282) (739)
Federal tax credits (920) (1,306) (685)
CARES Act benefit (7,676) —  — 
Uncertain Tax Positions 2,724  —  — 
Other, net (274) 19  142 
Provision (benefit) for income taxes $ 12,224  $ (251) $ 6,197 
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 (in thousands):
Fiscal Year Ended December 31,
2020
Fiscal Year Ended December 26,
2019
Deferred tax assets:
Accruals not currently deductible for tax purposes $ 8,293  $ 2,820 
Inventories 6,941  5,283 
Stock-based compensation 5,979  3,984 
Other intangibles 268  313 
Gift card liability 557  453 
Litigation accrual 120  139 
Lease liabilities 259,273  233,106 
Other 10,732  3,718 
Total deferred tax assets 292,163  249,816 
Deferred tax liabilities:
Intangible assets (27,053) (26,939)
Fixed assets (62,374) (35,576)
Right-of-use assets (227,166) (203,028)
Other (3,560) (2,651)
Total deferred tax liabilities (320,153) (268,194)
Net deferred tax liabilities $ (27,990) $ (18,378)
Schedule of Unrecognized Tax Benefits Roll Forward :
Fiscal Year Ended December 31,
2020
Fiscal Year Ended December 26,
2019
Fiscal Year Ended December 27,
2018
Unrecognized tax benefits balance at beginning of fiscal year $ 402  $ —  $ — 
Additions based on tax positions related to the current year 281  282  — 
Additions for tax positions of prior years 5,424  120  — 
Unrecognized tax benefits balance at end of fiscal year $ 6,107  $ 402  $ —