Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Taxes

Schedule of Deferred Tax Assets and Liabilities

The components of the net deferred tax liability are as follows:

	December 31, 2020		December 26, 2019
	(in thousands)
Accrued employee benefits	$	16,685	$	15,145
Depreciation and amortization		(82,964)		(69,100)
Operating lease assets		(58,704)		(62,339)
Operating lease liabilities		64,055		62,750
Net operating loss and tax credit carryforwards		21,526		—
Other		5,973		5,282
Net deferred tax liability	$	(33,429)	$	(48,262)

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense consists of the following:

	Year Ended
	December 31,		December 26,		December 27,
	2020		2019		2018
	(in thousands)
Current:
Federal	$	(32,626)	$	1,187	$	7,022
State		526		2,041		3,181
Deferred:
Federal		(24,751)		9,228		2,815
State		(14,085)		(136)		109
	$	(70,936)	$	12,320	$	13,127

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the statutory federal tax rate to the effective tax rate on earnings attributable to The Marcus Corporation follows:

	Year Ended
	December 31,		December 26,		December 27,
	2020		2019		2018
Statutory federal tax rate	21.0	%	21.0	%	21.0	%
Tax benefit from Tax Cuts and Jobs Act of 2017	—		—		(2.9)
Tax benefit from CARES Act and accounting method changes	10.3		—		—
State income taxes, net of federal income tax benefit	5.0		5.5		6.1
Tax credits, net of federal income tax benefit	0.2		(2.7)		(1.1)
Other	(0.3)		(1.1)		(3.4)
	36.2	%	22.7	%	19.7	%

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending gross amounts of unrecognized tax benefit are as follows:

	Year Ended
	December 31,		December 26,		December 27,
	2020		2019		2018
	(in thousands)
Balance at beginning of year	$	—	$	—	$	102
Increases due to:
Tax positions taken in prior years		—		—		—
Tax positions taken in current year		—		—		—
Decreases due to:
Tax positions taken in prior years		—		—		—
Settlements with taxing authorities		—		—		(102)
Lapse of applicable statute of limitations		—		—		—
Balance at end of year	$	—	$	—	$	—