Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Income before Income Tax, Domestic and Foreign

For financial reporting purposes, income (loss) before income taxes includes the following components:



		Fiscal Year
		2017			2016			2015
	(in thousands)
United States		$	(25,667	)	$	(11,002	)	$	(18,787	)
Foreign (including U.S. Possessions)		4,442			4,709			3,336
Income (loss) before income taxes		$	(21,225	)	$	(6,293	)	$	(15,451	)

Schedule of Components of Income Tax Expense (Benefit)

Our income tax expense (benefit) consists of the following for the periods presented:



		Fiscal Year
		2017			2016			2015
	(in thousands)
Current tax expense (benefit):
Federal		$	(2,668	)	$	8,008		$	10,726
State		(708		)	3,879			1,825
Foreign		960			1,008			1,256
		(2,416		)	12,895			13,807
Deferred tax expense (benefit):
Federal		(72,829		)	(11,848		)	(14,022		)
State		(137		)	(3,274		)	(2,203		)
Foreign		1,091			(399		)	(523		)
		(71,875		)	(15,521		)	(16,748		)
Income tax expense (benefit)		$	(74,291	)	$	(2,626	)	$	(2,941	)

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the federal statutory income tax rate to our effective tax rate is as follows:



	Fiscal Year
	2017		2016		2015
Federal statutory rate	(35.0	)%	(35.0	)%	(35.0	)%
State income taxes, net of federal benefit	(4.5	)%	2.5	%	0.2	%
Federal income tax credits, net	(1.2	)%	(21.8	)%	(7.6	)%
Merger and litigation related costs	1.6	%	5.8	%	25.0	%
Canadian tax rate difference	0.4	%	2.4	%	1.0	%
Canadian nondeductible interest	0.7	%	1.8	%	0.6	%
Canadian deferred tax valuation adjustment	5.7	%	—	%	—	%
Canadian tax reorganization	(7.6	)%	—	%	—	%
State tax credit, valuation adjustment	2.0	%	2.8	%	(1.3	)%
Other	1.9	%	(0.2	)%	(1.9	)%
Effective tax rate (before impact of Tax Cuts and Jobs Act of 2017 ⁽¹⁾)	(36.0	)%	(41.7	)%	(19.0	)%
Adjustment related to the Tax Cuts and Jobs Act of 2017 ⁽¹⁾	(314.0	)%	—	%	—	%
Adjusted effective tax rate	(350.0	)%	(41.7	)%	(19.0	)%

_________________

(1) The Tax Cuts and Jobs Act of 2017 (enacted on December 22, 2017) resulted in a decrease of our net deferred tax liability of $66.6 million and a corresponding benefit to our deferred federal income taxes for Fiscal 2017.

Schedule of Deferred Tax Assets and Liabilities

Deferred income tax assets and liabilities consisted of the following at the dates presented:



	December 31, 2017			January 1, 2017
	(in thousands)
Deferred tax assets:
Accrued compensation	$	1,231		$	3,580
Unearned revenue	979			1,723
Deferred rent	6,914			8,148
Stock-based compensation	639			746
Accrued insurance and employee benefit plans	3,516			5,542
Unrecognized tax benefits ⁽¹⁾	452			1,072
NOL and other carryforwards	3,211			3,358
Loan costs	577			1,170
Other	552			914
Gross deferred tax assets	18,071			26,253
Deferred tax liabilities:
Depreciation and amortization	(9,492		)	(24,717		)
Prepaid assets	(672		)	(655		)
Intangibles	(117,717		)	(180,623		)
Favorable/Unfavorable Leases	(65		)	(26		)
Internal use software and other	(4,311		)	(6,522		)
Gross deferred tax liabilities	(132,257		)	(212,543		)
Net deferred tax liability	$	(114,186	)	$	(186,290	)

_________________


(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.

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



	Fiscal Year
	2017			2016			2015
	(in thousands)
Balance at beginning of period	$	3,119		$	3,288		$	1,882
Additions for tax positions taken in the current year	1,677			74			214
Increases for tax positions taken in prior years	16			1,479			1,581
Decreases for tax positions taken in prior years	(390		)	(964		)	(184		)
Settlement with tax authorities	(32		)	(558		)	79
Expiration of statute of limitations	(537		)	(200		)	(284		)
Balance at end of period	$	3,853		$	3,119		$	3,288