Income Taxes (Tables)

12 Months Ended

Dec. 29, 2024

Schedule of domestic and foreign components of income before income taxes

The following table presents the domestic and foreign components of income before income taxes for 2024, 2023 and 2022 (in thousands):


	2024		2023		2022
Domestic income	$	126,681	$	91,218	$	65,434
Foreign income	(12,555)		12,455		18,335
Total income	$	114,126	$	103,673	$	83,769

Schedule of the provision for income taxes

A summary of the expense (benefit) for income tax follows (in thousands):


	2024		2023		2022
Current:
Federal	$	22,443	$	20,742	$	3,496
Foreign	6,844		3,916		5,335
State and local	3,679		2,207		2,791
Deferred:
Federal	(3,848)		(4,115)		4,243
Foreign	2,181		(558)		(1,152)
State and local	(1,370)		(1,318)		(293)
Total income tax expense	$	29,929	$	20,874	$	14,420

Schedule of reconciliation of income tax computed at the U.S. federal statutory rate to income tax expense

The reconciliation of income tax computed at the U.S. federal statutory rate to income tax expense for the years ended December 29, 2024, December 31, 2023 and December 25, 2022 is as follows in both dollars and as a percentage of income before income taxes (dollars in thousands):


	2024				2023				2022
	Income Tax Expense (Benefit)		Income Tax Rate		Income Tax Expense (Benefit)		Income Tax Rate		Income Tax Expense (Benefit)		Income Tax Rate
Tax at U.S. federal statutory rate	$	23,965	21.0	%	$	21,771	21.0	%	$	17,591	21.0	%
State and local income taxes	2,176		1.9	%	1,866		1.8	%	1,422		1.7	%
Foreign income taxes	7,242		6.4	%	3,755		3.6	%	4,605		5.5	%
Income of consolidated partnerships attributable to noncontrolling interests	(161)		(0.1)	%	(159)		(0.2)	%	(355)		(0.4)	%
Non-qualified deferred compensation plan expense (income)	(750)		(0.7)	%	(752)		(0.7)	%	1,278		1.5	%
Excess tax (benefits) on equity awards	1,027		0.9	%	(539)		(0.5)	%	(3,902)		(4.7)	%

Tax credits	(4,413)		(3.9)	%	(7,003)		(6.8)	%	(8,981)		(10.7)	%
Non-deductible executive compensation	(216)		(0.2)	%	1,341		1.3	%	2,450		2.9	%
Foreign-derived intangible income	(842)		(0.7)	%	(1,263)		(1.2)	%	(1,452)		(1.7)	%
US deferred offset on foreign deferreds	(1,883)		(1.7)	%	270		0.3	%	1,183		1.4	%
Foreign tax deduction	(1,657)		(1.5)	%	—		—	%	—		—	%
Foreign valuation allowance	6,597		5.8	%	1,386		1.3	%	67		0.1	%
Other	(1,156)		(1.0)	%	201		0.2	%	514		0.6	%
Total	$	29,929	26.2	%	$	20,874	20.1	%	$	14,420	17.2	%

Schedule of significant deferred tax assets (liabilities)

Significant deferred tax assets (liabilities) follow (in thousands):


	December 29, 2024		December 31, 2023
Accrued liabilities	$	12,660	$	12,735
Accrued bonuses	3,148		2,284
Other liabilities and asset reserves	15,536		15,315
Equity awards	7,542		7,988
Lease liabilities	50,500		45,550
Other	5,616		2,825
Net operating losses	18,028		13,759
Foreign tax credit carryforwards	23,071		23,888
Total deferred tax assets	136,101		124,344
Valuation allowances	(44,463)		(37,609)
Total deferred tax assets, net of valuation allowances	91,638		86,735

Deferred expenses	(6,470)		(5,719)
Accelerated depreciation	(19,144)		(23,012)
Goodwill	(8,090)		(7,881)
Right-of-use assets	(45,803)		(41,513)
Other	(1,384)		(1,071)
Total deferred tax liabilities	(80,891)		(79,196)
Net deferred tax assets	$	10,747	$	7,539

Schedule of changes in valuation allowance on deferred tax

The following table summarizes changes in the Company’s valuation allowances on deferred tax (in thousands):


Balance at December 25, 2022	$	32,052
Charged to costs and expenses	5,470
Other	87
Balance at December 31, 2023	$	37,609
Charged to costs and expenses	6,642
Other	212
Balance at December 29, 2024	$	44,463

Schedule of reconciliation of the liability for unrecognized tax benefits

A reconciliation of the beginning and ending liability for unrecognized tax benefits excluding interest and penalties is as follows, which is recorded in Other long-term liabilities in the Consolidated Balance Sheets (in thousands):


Balance at December 25, 2022	$	1,162
Additions for tax positions of prior years	217
Reductions for tax positions of prior years	(321)
Balance at December 31, 2023	$	1,058
Additions for tax positions of prior years	276
Reductions for tax positions of prior years	(45)
Balance at December 29, 2024	$	1,289