Income Taxes (Tables)

12 Months Ended

Jan. 03, 2023

Income Tax Disclosure [Abstract]

Income Tax Benefit

Income tax benefit for the last three fiscal years consists of the following (in thousands):

	Fiscal Year
	2022			2021			2020
Current:
Federal	$	647		$	2,776		$	(5,360	)
State		379			323			(314	)
		1,026			3,099			(5,674	)
Deferred:
Federal		(12,653	)		(16,872	)		(21,403	)
State		(757	)		(1,803	)		(4,988	)
		(13,410	)		(18,675	)		(26,391	)
Income tax benefit	$	(12,384	)	$	(15,576	)	$	(32,065	)

Income Tax Benefit Differs from Amount that would Result from Applying Federal Statutory Rate

Income tax benefit for the last three fiscal years differs from the amount that would result from applying the federal statutory rate as follows:

	Fiscal Year
	2022			2021			2020
Income tax at statutory rates		(21.0	)%		(21.0	)%		(21.0	)%
State income taxes, net of federal benefit		(10.4	)		(5.0	)		(5.2	)
Permanent differences		17.3			0.9			0.3
Income tax credits		(156.8	)		(58.9	)		(5.1	)
Return to provision		(4.3	)		2.1			—
Prior year tax credit true-up		14.1			—			(0.4	)
Benefit from net operating loss carryback		1.8			2.8			(5.2	)
Change in valuation allowance		6.8			(1.1	)		—
Other, net		3.4			(1.0	)		1.0
		(149.1	)%		(81.2	)%		(35.6	)%

Components of Deferred Income Tax Asset (Liability)

The components of the deferred income tax asset (liability) consist of the following (in thousands):

	January 3, 2023			December 28, 2021
Deferred income tax asset:
Accrued expenses	$	11,887		$	11,803
Other		3,192			5,305
Deferred revenues		28			28
Stock-based compensation		4,596			4,123
Operating lease liability		122,982			123,544
Income tax credits		56,780			41,826
Net operating losses		7,347			5,569
State tax		80			72
Gross deferred income tax asset		206,892			192,270
Valuation allowance		(1,151	)		(586	)
Deferred income tax asset, net of valuation allowance		205,741			191,684
Deferred income tax liability:
Property and equipment		(51,659	)		(52,371	)
Intangible assets		(2,895	)		(1,646	)
Operating lease assets		(108,307	)		(108,333	)
Smallwares		(4,568	)		(4,432	)
Deferred income tax liability		(167,429	)		(166,782	)
Net deferred income tax asset	$	38,312		$	24,902

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	Fiscal Year
	2022			2021			2020
Gross unrecognized tax benefits at beginning of year	$	1,198		$	1,333		$	1,345
Increases for tax positions taken in prior years		3			—			190
Decreases for tax positions taken in prior years		(29	)		(20	)		(291	)
Increases for tax positions taken in the current year		91			69			89
Lapse in statute of limitations		(14	)		(184	)		—
Gross unrecognized tax benefits at end of year	$	1,249		$	1,198		$	1,333