Income Taxes

3 Months Ended

Mar. 24, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective income tax rates were 5.5% and 28.0% for the twelve weeks ended March 24, 2020 and March 26, 2019, respectively. The benefit for income taxes was $6.0 million for the twelve weeks ended March 24, 2020. The provision for income taxes was $0.6 million for the twelve weeks ended March 26, 2019.

The income tax benefit for the twelve weeks ended March 24, 2020 is driven by the estimated effective income tax rate of 5.5%. The benefit for income taxes of $6.0 million is primarily impacted by impairment of non-tax deductible goodwill of $87.3 million and reclassification of $3.5 million of goodwill from held for sale, as well as statutory federal and state tax rates based on apportioned income and the impact of non-tax deductible compensation to executives, partially offset by federal targeted job credits. The income tax expense for the twelve weeks ended March 26, 2019 is driven by the estimated effective income tax rate of 28.0%. The provision for income taxes of $0.6 million is primarily impacted by statutory federal and state tax rates based on apportioned income and the impact of non-tax deductible compensation to executives, partially offset by federal targeted job credits.

Management believes it is more likely than not that all deferred tax assets will be realized and therefore no valuation allowance as of March 24, 2020 and December 31, 2019 is required.