Income Taxes (Tables)

12 Months Ended

Dec. 27, 2017

The provision for income taxes is based on the following components (in thousands):



For the Years Ended	December 27, 2017			December 28, 2016		December 30, 2015
Current income taxes:
Federal	$	—		$	—	$	—
State	250			224		188
Total current	250			224		188
Deferred income taxes:
Federal	1,495			9,660		8,871
State	192			2,730		6,378
Total deferred	1,687			12,390		15,249
Charge in lieu of tax (attributable to stock options)	—			169		5,420
Adjustment to deferred taxes for tax rate change	(1,440		)	—		—
Tax provision for income taxes	$	497		$	12,783	$	20,857

Schedule of Effective Income Tax rate

The provision for income taxes differs from the amount computed by applying the federal income tax rate as follows:



For the Years Ended	December 27, 2017		December 28, 2016		December 30, 2015
Statutory federal income tax rate of 35% applied to earnings before income taxes and extraordinary items	35.0	%	35.0	%	35.0	%
TRA expense	(21.4	)	0.4		0.1
Revaluation of deferred taxes	(15.8	)	—		—
Change in valuation allowance	10.9		1.3		6.5
WOTC Credit	(2.5	)	(0.8	)	—
State tax benefit (net of federal benefit)	0.6		5.0		5.1
State tax credits	—		—		(0.6	)
Other	(1.3	)	0.2		0.3
Total	5.5	%	41.1	%	46.4	%

Schedule of Deferred Tax Assets and Liabilities

The Company’s deferred tax assets and liabilities as of December 27, 2017 and December 28, 2016 are summarized below. The 2017 balances reflect the revaluation for the reduction in the Federal corporate rate to 21%. The 2016 balances are presented at the pre-new tax law rate of 35%.



	December 27, 2017			December 28, 2016
Deferred assets:
Capital leases	$	90		$	197
Accrued vacation	428			658
Accrued legal	—			308
Deferred rent	3,516			4,351
Accrued workers’ compensation	1,450			1,932
Enterprise zone and other credits	12,722			11,982
Net operating losses	13,488			30,452
Fixed assets	4,176			—
Other	2,261			2,737
Total deferred tax assets	38,131			52,617
Valuation allowance	(4,306		)	(3,311		)
Net deferred tax assets	33,825			49,306
Deferred liabilities:
Goodwill	(6,037		)	(8,809		)
Trademark	(17,613		)	(26,463		)
Prepaid expense	(380		)	(523		)
Fixed asset	—			(1,771		)
Other	(2,628		)	(4,323		)
Deferred tax liabilities	(26,658		)	(41,889		)
Net deferred tax asset	$	7,167		$	7,417