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Income Taxes (Tables)
 12 Months Ended
Jan. 03, 2016
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
Our income tax expense (benefit) consists of the following for the periods presented:
 
 
Successor
 
 
Predecessor
 
 
Fiscal Year
 
For the 317 Day Period Ended
 
 
For the 47 Day Period Ended
 
Fiscal Year
 
 
2015
 
December 28, 2014
 
 
February 14, 2014
 
2013
 
(in thousands)
Current tax expense (benefit):
 
 
 
 
 
 
 
 
 
     Federal
 
10,726

 
26,702

 
 
2,505

 
26,950

     State
 
1,825

 
4,984

 
 
390

 
4,191

     Foreign
 
1,256

 
(255
)
 
 
(92
)
 
78

 
 
13,807

 
31,431

 
 
2,803

 
31,219

Deferred tax expense (benefit):
 

 
 
 
 
 
 
 
     Federal
 
(14,022
)
 
(52,251
)
 
 
(2,282
)
 
(2,099
)
     State
 
(2,203
)
 
(9,909
)
 
 
302

 
(732
)
     Foreign
 
(523
)
 
(394
)
 
 
195

 
(194
)
 
 
(16,748
)
 
(62,554
)
 
 
(1,785
)
 
(3,025
)
Income tax expense (benefit)
 
$
(2,941
)
 
$
(31,123
)
 
 
$
1,018

 
$
28,194
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the federal statutory income tax rate to our effective tax rate is as follows:
 
Successor
 
 
Predecessor
 
Fiscal Year
 
For the 317 Day Period Ended
 
 
For the 47 Day Period Ended
 
Fiscal Year
 
2015
 
December 28, 2014
 
 
February 14, 2014
 
2013
Federal statutory rate
(35.0
)%
 
(35.0
)%
 
 
35.0
 %
 
35.0
 %
State income taxes, net of federal benefit
0.2
 %
 
(3.8
)%
 
 
20.5
 %
 
3.0
 %
Federal income tax credits, net
(7.6
)%
 
(0.4
)%
 
 
(2.0
)%
 
(1.2
)%
Merger and litigation related costs
25.0
 %
 
4.8
 %
 
 
3.1
 %
 
—
 %
State tax credit, valuation adjustment
(1.3
)%
 
0.4
 %
 
 
5.6
 %
 
—
 %
Other
(0.3
)%
 
0.6
 %
 
 
(3.1
)%
 
0.3
 %
     Effective tax rate
(19.0
)%
 
(33.4
)%
 
 
59.1
 %
 
37.1
 %
Schedule of Deferred Tax Assets and Liabilities
 
Successor
 
January 3, 2016
 
December 28, 2014
 
(in thousands)
Deferred tax assets:
 
 
 
Accrued compensation
$
3,059

 
$
2,548

Unearned revenue
1,493

 
2,105

Deferred rent
5,520

 
2,497

Stock-based compensation
501

 
270

Accrued insurance and employee benefit plans
5,162

 
8,462

       Unrecognized tax benefits (1)
1,378

 
1,471

NOL and Other Carryforwards
5,660

 
8,483

Loan Costs
1,461

 
1,758

Other
514

 
527

Gross deferred tax assets
24,748

 
28,121

Deferred tax liabilities:

 

Depreciation and amortization
(40,976
)
 
(59,871
)
Prepaid assets
(895
)
 
(1,238
)
Intangibles
(181,546
)
 
(183,102
)
Favorable/Unfavorable Leases
(1
)
 
(795
)
Other
(3,064
)
 
(2,087
)
Gross deferred tax liabilities
(226,482
)
 
(247,093
)
Net deferred tax liability
$
(201,734
)
 
$
(218,972
)
_________________
(1)
Amount represents the value of future tax benefits that would result if the liabilities for uncertain state tax positions and accrued interest related to uncertain tax positions are settled.
As of January 3, 2016, we have $12.8 million of federal net operating loss carryforwards (which expire at the end of tax years 2029 and 2030), $5.0 million of state net operating loss carryforwards (expiring at the end of tax years 2019 through 2035), and $0.3 million of Alternative Minimum Tax credit carryforwards (with an indefinite carryforward period). The federal net operating loss and Alternative Minimum Tax credit carryforward relate to Peter Piper Pizza, which are limited by Section 382 of the Internal Revenue Code. However, we do not believe the Section 382 limitation will prevent us from fully utilizing the carryforwards. As of January 3, 2016, we also have state income tax credit carryforwards $0.8 million net of their related valuation allowance and federal tax effect (which expire at the end of 2022) and $0.5 million of Canadian net operating loss carryforwards (expiring at the end of tax years 2034 and 2035).
We file numerous federal, state, and local income tax returns in the U.S. and some foreign jurisdictions. As a matter of ordinary course, we are subject to regular examination by various tax authorities. Certain of our federal and state income tax returns are currently under examination and are in various stages of the audit/appeals process. In general, the U.S. federal statute of limitations has expired for our federal income tax returns filed for tax years ended before 2012 with the exception of adjustments included in certain amended returns filed in 2011, 2012 and 2013 for tax years 2006 through 2009 and Peter Piper Pizza federal income tax returns with net operating losses which have been carried forward (whereas, adjustments can be made to these returns until the respective statute of limitations expire for the particular tax years the net operating losses are utilized). In general, our state income tax statutes of limitations have expired for tax years ended before 2011 with similar exceptions as noted above regarding our federal tax returns (amended state tax returns filed in 2011 through 2015 for tax years 2006 through 2009 and Peter Piper Pizza state income tax returns generating net operating loss carryforwards). In general, the statute of limitations for our Canada income tax returns has expired for tax years ended before 2011.
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
 
Fiscal Year
 
2015
 
2014
 
2013
 
(in thousands)
Balance at beginning of period
$
1,882

 
$
2,598

 
$
2,923

   Additions for tax positions taken in the current year
214

 
168

 
223

   Increases for tax positions taken in prior years
1,581

 
613

 
463

   Decreases for tax positions taken in prior years
(184
)
 
(421
)
 
(422
)
   Settlement with tax authorities
79

 
(114
)
 
(283
)
   Expiration of statute of limitations
(284
)
 
(962
)
 
(306
)
Balance at end of period
$
3,288

 
$
1,882

 
$
2,598