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Income Taxes (Tables)

12 Months Ended

Dec. 29, 2023

Income (loss) before income taxes, excluding loss for noncontrolling interests, consists of the following:


	December 29, 2023		December 30, 2022		December 31, 2021
Domestic	$	(34,398)	$	(3,866)	$	(44,650)
Foreign	989		(6,219)		1,606
Total	$	(33,409)	$	(10,085)	$	(43,044)

Schedule of Components of Income Tax Benefit

The components of income tax benefit for the years ended December 29, 2023, December 30, 2022, and December 31, 2021, were as follows:


	December 29, 2023		December 30, 2022		December 31, 2021
Current
Federal	$	1,703	$	2,794	$	—
State	2,466		2,289		1,005
Foreign	492		1,110		330
Total	4,661		6,193		1,335
Deferred
Federal	(12,733)		(5,954)		(5,708)
State	(3,359)		(1,790)		(1,963)
Foreign	(610)		92		(306)
Total	(16,702)		(7,652)		(7,977)
Income tax benefit	$	(12,041)	$	(1,459)	$	(6,642)

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences and carryforwards that gave rise to deferred tax assets and liabilities as of December 29, 2023 and December 30, 2022, are as follows:


	December 29, 2023		December 30, 2022
Deferred Tax Assets
Net operating loss	$	2,727	$	3,845
Interest carryforward	12,029		7,793
Accrued liabilities and reserves	17,969		14,545
Uniform capitalization	449		593
Capital loss carryforward	9,080		8,719
R&D credits	6,144		17,296
Deferred revenue	3,716		3,422
Depreciable property	1,904		1,690
Stock compensation	10,291		8,020
Section 174 research and expenditures	31,239		18,046

Total deferred tax assets	95,548		83,969
Valuation allowance	(13,705)		(15,554)
Total deferred tax assets, net of valuation allowance	81,843		68,415
Deferred Tax Liabilities
Amortization of intangibles	(86,400)		(93,489)
Amortization of goodwill	(20,692)		(17,072)
Transaction Costs	(28)		(55)
Other	(550)		(321)
Total deferred tax liabilities	(107,670)		(110,937)
Net deferred tax liabilities	$	(25,827)	$	(42,522)

The components of the Company’s net deferred tax liabilities as of December 29, 2023 and December 30, 2022, are as follows:


	December 29, 2023		December 30, 2022
Domestic deferred tax liabilities	$	(24,416)	$	(40,505)
Foreign deferred tax liabilities	(2,559)		(3,010)
Foreign deferred tax assets	1,148		993
Net deferred tax liabilities	$	(25,827)	$	(42,522)

Summary of Operating Loss Carryforwards

Net operating loss and tax credit carryforwards as of December 29, 2023 are as follows (gross of valuation allowance and uncertain tax positions):


	Amount		Expiration Years
Net operating losses, state	$	7,400	2030-2041
Net operating losses, state	$	28,650	Indefinite
Net operating losses, foreign	$	4,477	2024-2033
Net operating losses, foreign	$	62	Indefinite
Tax credit carryforwards, federal	$	14,577	2024-2043
Tax credit carryforwards, state	$	1,574	2024-2028
Capital loss carryforwards, federal	$	35,039	2025
Capital loss carryforwards, state	$	22,640	2025

Schedule of Unrecognized Tax Benefits Roll Forward

Changes in the Company’s unrecognized tax benefits for the years ended December 31, 2021, December 30, 2022 and December 29, 2023, were as follows:


Balance - December 25, 2020	$	8,094
Additions for tax position of the current year	400
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
Additions for tax position of the current year	528
Reduction for tax positions of prior years for:
Changes in judgment	148
Lapses of applicable statutes of limitations	(85)
Balance - December 30, 2022	8,847
Additions for tax position of the current year	866
Reduction for tax positions of prior years for:
Changes in judgment	392
Lapses of applicable statutes of limitations	(82)
Balance - December 29, 2023	$	10,023

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of the Company’s effective income tax rate with the statutory rate is as follows:


	December 29, 2023		December 30, 2022		December 31, 2021
Federal income tax rate	21.00	%	21.00	%	21.00	%
State income taxes	2.17	%	(2.33)	%	1.04	%
Foreign income taxes	1.00	%	(0.10)	%	(0.07)	%
Deferred rate change	—	%	(3.78)	%	0.46	%
Foreign tax rate differences	(0.05)	%	(1.71)	%	0.42	%
Incentive stock compensation	(5.07)	%	(12.73)	%	(2.23)	%
Cash in lieu of TRA	—	%	—	%	(5.06)	%
TRA adjustments/amortization	(1.59)	%	(0.31)	%	—	%
Research and development tax credits	18.38	%	33.50	%	2.84	%
Valuation allowance	4.25	%	(25.52)	%	1.42	%
Changes in uncertain tax positions	(3.75)	%	(7.36)	%	(0.41)	%
Contingent value rights	0.12	%	9.25	%	(1.47)	%
Foreign-derived intangible income	1.42	%	9.35	%	—	%
Global intangible low-taxed income	(0.80)	%	(2.51)	%	(0.66)	%
Meals and entertainment	(0.44)	%	(1.93)	%	(0.22)	%
Other items, net (a)	(0.60)	%	(0.35)	%	(1.64)	%
Effective income tax rate	36.04	%	14.47	%	15.42	%

(a)Global intangible low-taxed income, contingent value rights, and meals and entertainment were grouped in other items, net for fiscal year 2021 as it was not material to require separate statement. The Company has updated the rate reconciliation for fiscal year 2021 to separately state these items for consistency purposes.