Income Taxes (Tables)

12 Months Ended

Dec. 30, 2023

Income Tax Disclosure [Abstract]

Components of Income Taxes

Income taxes consisted of the following for the fiscal years ended December 30, 2023 and December 31, 2022 (amounts in thousands):

	For the fiscal years ended
	December 30, 2023			December 31, 2022
Current income tax benefit:
Federal	$	(7,821	)	$	(2,323	)
State and local		2,334			658
Total Current	$	(5,487	)	$	(1,665	)
Deferred income tax expense (benefit):
Federal	$	523		$	(1,561	)
State and local		492			1,446
Total Deferred	$	1,015		$	(115	)
Total income tax benefit	$	(4,472	)	$	(1,780	)

Reconciliation of Difference Between Federal Statutory Tax Rate and Company's Effective Tax Rate

A reconciliation of the difference between the federal statutory tax rate and the Company’s effective tax rate for income taxes for the fiscal years ended December 30, 2023 and December 31, 2022 is as follows (amounts expressed as a percentage):

	For the fiscal years ended
	December 30, 2023			December 31, 2022
U.S. Federal statutory income tax rate		(21.0	)		(21.0	)
State income taxes, net of federal tax benefits		1.4			0.3
Goodwill impairment		1.4			9.4
Other nondeductible expenses		0.4			0.2
Uncertain tax positions		(5.8	)		(0.4	)
Valuation allowance		20.8			11.6
Tax credits		(1.0	)		(0.1	)
Other		0.6			(0.3	)
Effective tax rate		(3.2	)		(0.3	)

Significant Components of Deferred Tax Assets and Liabilities

Significant components of deferred tax assets and liabilities are as follows as of December 30, 2023 and December 31, 2022 (amounts in thousands):

	As of
	December 30, 2023			December 31, 2022
Deferred tax assets:
Estimated contractual adjustments	$	16,282		$	13,589
NOL, federal and state		24,952			30,175
Tax credits		2,134			2,688
Payroll related accruals		21,755			18,742
Intangible assets and goodwill		90,945			80,629
Interest expense limitation		80,644			59,871
Transaction costs		3,257			3,608
Accrued expenses		995			3,642
Lease liabilities		15,189			15,589
Stock compensation		10,164			8,481
Section 174 costs		2,706			1,079
Other		18			310
Gross deferred tax assets		269,041			238,403
Less: valuation allowance		(244,865	)		(203,370	)
Net deferred tax assets		24,176			35,033
Deferred tax (liabilities):
Property and equipment		(990	)		(1,363	)
Interest rate derivatives		(11,120	)		(18,456	)
Lease right of use assets		(12,998	)		(14,254	)
Other		(3,927	)		(4,804	)
Gross deferred tax (liabilities)		(29,035	)		(38,877	)
Net deferred tax assets (liabilities)	$	(4,859	)	$	(3,844	)

Summary of Changes in Valuation Allowance

The following table summarizes changes in the valuation allowance as of December 30, 2023 and December 31, 2022 (amounts in thousands):

	As of
	December 30, 2023		December 31, 2022
Beginning of year balance	$	203,370	$	105,000
Increases in valuation allowance		41,495		98,370
End of year balance	$	244,865	$	203,370

Summary of Changes in Uncertain Tax Positions

The following table, which excludes penalties and interest, summarizes changes in uncertain tax positions as of December 30, 2023 and December 31, 2022 (amounts in thousands):

	For the fiscal years ended
	December 30, 2023			December 31, 2022
Beginning of year balance	$	8,135		$	10,240
Settlements		(5,381	)		-
Lapse of limitations		(1,063	)		(2,105	)
End of year balance	$	1,691		$	8,135