Income Taxes (Tables)

12 Months Ended

Dec. 30, 2023

Schedule of Income before Income Tax Expense (Benefit)

Income before income taxes consisted of the following:


	Fiscal Year
(in thousands)	2023		2022		2021
U.S. operations	$	(2,940)	$	103,902	$	86,828
Foreign operations	50,019		20,396		(8,963)
Income before income taxes	$	47,079	$	124,298	$	77,865

Schedule of Components of Income Tax Expense (Benefit)

Components of income tax (benefit) expense are summarized as follows:


	Fiscal Year
(in thousands)	2023		2022		2021
Current:
U.S. - federal	$	8,280	$	354	$	(21)
U.S. - state	6,232		3,279		4,661
Foreign	14,838		15,401		11,701
Deferred:
U.S. - federal	(19,480)		16,934		(7,257)
U.S. - state	(13,156)		4,074		(7,223)
Foreign	(2,750)		(464)		(7,390)
Income tax (benefit) expense	$	(6,036)	$	39,578	$	(5,529)

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows for the consolidated taxable entities at December 30, 2023 and December 31, 2022:


(in thousands)	December 30, 2023		December 31, 2022
Deferred tax assets:
Net operating loss carryforwards	$	1,142	$	2,197

Lease liability	129,486		106,270

Insurance reserves	4,935		4,235
Employment tax credits	—		3,208
Deferred interest	16,116		17,392
Deferred payroll	13,062		6,572
Sec. 267 Deferred Basis	8,493		8,776
Unrealized foreign exchange loss	4,033		6,957
Other	6,547		7,143
Deferred tax assets, exclusive of valuation allowance	183,814		162,750
Less: valuation allowance	5,927		8,923
Deferred tax assets, net	177,887		153,827
Deferred tax liabilities:
Property and equipment depreciation and amortization	19,407		16,636
Leasehold interests	3,856		3,930
Charity licensing agreements	12,418		11,695
Trade names and trademarks	28,753		23,902
Partnership tax deferral	2,037		5,075
ROU asset	125,937		103,297
Unrealized foreign exchange gain	4,405		4,909
Partnership basis	—		41,985
Inventory	3,116		—
Other	5,867		5,539
Deferred tax liabilities	205,796		216,968
Deferred tax liabilities, net	$	27,909	$	63,141

Schedule of Effective Income Tax Reconciliation

The differences between income taxes expected by applying the 21% U.S. federal statutory tax rate and the amount of income taxes provided for are as follows:


	Fiscal Year
(in thousands)	2023		2022		2021

Tax expense at statutory rate	$	9,887	$	26,103	$	16,352
Increase (decrease) in income taxes resulting from:
State taxes net of federal benefit	4,519		5,844		8,828
Tax impact of restructuring(1)	(31,340)		—		24,779
GILTI/FDII	(1,603)		(1,114)		2,438
Foreign rate differential	2,623		—		—
Change in valuation allowance	(2,996)		4,068		(59,527)
Canada Revenue Agency Settlement	—		—		973
Other	5,386		7,248		4,868
Section 162(m) limitation	11,229		—		—
Tax Credits	(3,741)		(2,571)		(4,240)
Income tax (benefit) expense	$	(6,036)	$	39,578	$	(5,529)

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(1)In October 2023 the Company underwent an internal legal entity restructuring and in April 2021 the Company restructured its debt.

Schedule of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns Roll Forward

The following table summarizes the activity related to the Company’s unrecognized tax benefits:


	Fiscal Year
(in thousands)	2023		2022		2021
Beginning gross unrecognized tax benefits	$	1,912	$	1,912	$	1,545
Increase related to prior year tax position	—		—		367
Ending gross unrecognized tax benefits	$	1,912	$	1,912	$	1,912