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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income (loss) before income taxes, excluding loss for noncontrolling interests, consists of the following:
December 31, 2021December 25, 2020December 27, 2019
Domestic$(44,650)$(26,998)$(43,760)
Foreign1,606 (2,237)(3,961)
Total$(43,044)$(29,235)$(47,721)
The components of income tax benefit for the years ended December 31, 2021, December 25, 2020 and December 27, 2019, were as follows:
December 31, 2021December 25, 2020December 27, 2019
Current
Federal$— $— $— 
State1,005 96 202 
Foreign330 976 213 
Total
1,335 1,072 415 
Deferred
Federal(5,708)(8,778)(12,852)
State(1,963)3,756 (822)
Foreign(306)(401)(98)
Total(7,977)(5,423)(13,772)
Income tax benefit$(6,642)$(4,351)$(13,357)

The tax effects of temporary differences and carryforwards that gave rise to deferred tax assets and liabilities as of December 31, 2021 and December 25, 2020, are as follows:

20212020
Deferred Tax Assets
Net operating loss$17,815 $24,766 
Interest carryforward8,442 6,549 
Accrued liabilities and reserves14,864 11,380 
Uniform capitalization352 1,231 
Capital loss carryforward8,719 8,719 
R&D credits17,923 17,072 
Deferred revenue3,724 3,022 
Depreciable property1,661 1,917 
Stock compensation4,294 — 
Other746 522 
Total deferred tax assets78,540 75,178 
Valuation allowance(15,044)(15,658)
Total deferred tax assets, net of valuation allowance63,496 59,520 
Deferred Tax Liabilities
Amortization of intangibles(96,952)(103,381)
Amortization of goodwill(13,401)(10,035)
Transaction Costs(219)(449)
Total deferred tax liabilities(110,572)(113,865)
Net deferred tax liabilities$(47,076)$(54,345)

The components of the Company’s net deferred tax liabilities as of December 31, 2021 and December 25, 2020, are as follows:
December 31, 2021December 25, 2020
Domestic deferred tax liabilities$(48,555)$(55,518)
Foreign deferred tax assets1,479 1,173 
Net deferred tax liabilities$(47,076)$(54,345)
The Company’s deferred tax assets related to net operating losses and credits are shown net of their related unrecognized tax benefit.

Significant judgment is required in determining the Company’s provision for income taxes and recording valuation allowances against deferred tax assets. In evaluating the ability to recover its deferred tax assets, in full or in part, the Company considers all available positive and negative evidence, including past operating results, forecast of future market growth, forecasted earnings, future taxable income, and prudent and feasible tax planning strategies.

The Company determined, based on the available evidence, that it is uncertain whether certain of its jurisdictions will generate sufficient future taxable income and of the correct character to recognize certain of these deferred tax assets. As a result, the Company’s deferred tax asset for net operating losses, capital loss carryforwards and credits reflect a valuation allowance of $15,044 and $15,658 as of December 31, 2021 and December 25, 2020, respectively.

Given its overall deferred tax liability position, the Company expects to fully utilize its U.S. federal and state net operating loss carryforward balances with an exception of a portion of the Utah state net operating loss. However, the Company expects a small portion of their U.S. federal research and development credits to expire unused in the next few years along with the majority of their remaining state research and equipment credits. A partial valuation allowance has been established for the portion of credits expected to expire unused. The Company will continue to maintain a full valuation allowance against the foreign tax credit carryovers. In 2020, the Company sold the stock of their fully owned subsidiary, Autonomic Controls, Inc., for $1,104, incurring a capital loss of $35,039 for tax purposes. The Company has determined the capital loss will not be utilized due to insufficient capital gains. A full valuation allowance has been recorded against this asset for both federal and state.

Net operating loss and tax credit carryforwards as of December 31, 2021 are as follows:

AmountExpiration Years
Net operating losses, federal$39,930 2027-2038
Net operating losses, federal18,194 Indefinite
Net operating losses, state74,163 2022-2042
Net operating losses, state628 Indefinite
Tax credit carryforwards, federal23,474 2023-2041
Tax credit carryforwards, state2,102 2022-2030
Net operating losses, foreign17,857 2022-2026
Capital loss carryforwards, federal35,039 2025
Capital loss carryforwards, state22,640 2025

The Company has performed Section 382 analyses to determine whether it experienced one or more ownership changes, as defined by Section 382, during the analysis period (the acquisition date in 2017 through the IPO effective date in July 2021) as well as other ownership changes. While an annual limitation does exist related to the net operating losses and credits carried forward, the Company does not anticipate that this limitation will cause any net operating losses and credits to expire before their utilization. U.S. Federal net operating losses incurred after 2017 are subject to an 80% limitation on taxable income.

The Company recorded gross unrecognized tax benefit (expense) of $161, $(187) and $7,234 during the years ended December 31, 2021, December 25, 2020 and December 27, 2019, respectively. During the next 12 months, a federal statute of limitation related to uncertain tax positions will lapse, resulting in a reduction in unrecognized tax benefit and an expense of $85.

The Company’s treatment of interest and penalties related to the resolution of uncertain tax positions is to report them as a component of income tax expense. However, the Company’s current unrecognized tax benefits are presented net with
their related deferred tax assets, therefore, no interest and penalties have been included in the Company’s income tax expense for years ended December 31, 2021, December 25, 2020 and December 27, 2019.

Balance - December 28, 2018$1,047 
Additions for tax position of the current year7,234 
Reduction for tax positions of prior years for:
Changes in judgment— 
Lapses of applicable statutes of limitations— 
Balance - December 27, 2019$8,281 
Additions for tax position of the current year538 
Reduction for tax positions of prior years for:
Changes in judgment(670)
Lapses of applicable statutes of limitations(55)
Balance - December 25, 2020$8,094 
Additions for tax position of the current year400 
Reduction for tax positions of prior years for:
Changes in judgment(162)
Lapses of applicable statutes of limitations(76)
Balance - December 31, 2021$8,256 

The Company files income tax returns in the United States, including various state and local jurisdictions. The Company’s subsidiaries file income tax returns in the United Kingdom, Australia, China, Germany, India, New Zealand, Switzerland, and Serbia. The Company is subject to federal income tax as well as income tax of multiple state and foreign jurisdictions. The Company is no longer subject to income tax examinations for the following jurisdictions and years: federal, for years before 2017; state and local, for years before 2016; or foreign, for years before 2015. However, federal net operating loss and credit carryforwards from all years are subject to examination and adjustments for at least three years following the year in which the attributes are used.

Starting December 27, 2019, and forward, the Company’s position is that its overseas subsidiaries will not invest undistributed earnings indefinitely. Future unremitted earnings when distributed are expected to be either distributions of GILTI or Sub F — previously taxed income or eligible for 100% dividends received deduction. The withholding on any unremitted earnings and related state income taxes on such earnings are not considered material. Therefore, the Company has not provided deferred U.S. income taxes from non-U.S. subsidiaries.
The reconciliation of the Company’s effective income tax rate with the statutory rate is as follows:

December 31, 2021December 25, 2020December 27, 2019
Federal income tax rate21.00 %21.00 %21.00 %
State income taxes1.04 %1.57 %1.60 %
Foreign income taxes(0.07)%1.03 %0.23 %
Deferred rate change0.46 %(6.00)%(0.25)%
Foreign tax rate differences0.42 %(1.31)%(0.03)%
Autonomic sale (tax)— %29.82 %— %
Incentive stock compensation(2.23)%(3.08)%(1.64)%
Cash in lieu of Tax Receivable Agreement(5.06)%— %— %
Research and development tax credits2.84 %14.37 %26.21 %
Valuation allowance1.42 %(41.61)%(2.03)%
Changes in uncertain tax positions(0.41)%0.64 %(15.80)%
Other items, net(3.99)%(1.55)%(0.94)%
Effective income tax rate15.42 %14.88 %28.35 %

Due to pretax losses in the years ended December 31, 2021, December 25, 2020 and December 27, 2019, the effective rate items listed above with negative signs represent increases to income tax expense and positive amounts represent decreases to income tax expense.

In March 2021, the U.S. Internal Revenue Service (“IRS”) began an examination of the Company’s 2018 U.S. federal income tax return. In July 2021, the state of California began an examination of the Company’s 2018 California income tax return. Although these examinations are part of a routine and recurring cycle, the Company cannot predict the final outcome or expected conclusion dates of the audits.