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Income Taxes | 12 Months Ended
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Dec. 30, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of the Company’s operating income (loss) before income taxes consist of the following:
|  | Fiscal Year Ended
|  | December 30, 2022 |  | December 24, 2021 |  | December 25, 2020
Domestic |  | $ | 40,428 |  |  | $ | (4,356) |  |  | $ | (119,375) |
Foreign |  | 1,461 |  |  | (2,420) |  |  | (4,231) |
Total |  | $ | 41,889 |  |  | $ | (6,776) |  |  | $ | (123,606) |
The provision for income taxes consists of the following:
|  | Fiscal Year Ended
|  | December 30, 2022 |  | December 24, 2021 |  | December 25, 2020
Current income tax expense (benefit): |  |  |  |  |  |
Federal |  | $ | 1,665 |  |  | $ | (285) |  |  | $ | (21,877) |
Foreign |  | 208 |  |  | — |  |  | — |
State |  | 2,665 |  |  | 277 |  |  | (408) |
Total current income tax expense (benefit) |  | 4,538 |  |  | (8) |  |  | (22,285) |
Deferred income tax expense (benefit): |  |  |  |  |  |
Federal |  | 9,571 |  |  | (2,002) |  |  | (10,740) |
Foreign |  | (4) |  |  | (22) |  |  | 50 |
State |  | 34 |  |  | 179 |  |  | (7,728) |
Total deferred income tax expense (benefit) |  | 9,601 |  |  | (1,845) |  |  | (18,418) |
Total income tax expense (benefit) |  | $ | 14,139 |  |  | $ | (1,853) |  |  | $ | (40,703) |
In response to the Pandemic, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law on March 27, 2020. Among other provisions it allows for the carryback of federal net operating losses generated in 2020 to five preceding years and a refundable Employee Retention Tax Credit (“ERTC”) to eligible employers. The Company’s fiscal 2020 income tax provision reflects the impact of an expected income tax refund receivable of $21,250 which is reflected in prepaid expenses and other current assets on the Company’s consolidated balance sheets as of December 30, 2022 and December 24, 2021, as a result of the five year carryback allowed under the CARES Act. During the second quarter of fiscal 2021, the Company recognized a receivable of $1,418 related to the ERTC which is presented within prepaid expenses and other current assets on the consolidated balance sheet and the related expense reduction is presented within selling, general and administrative expenses on the consolidated statements of operations. The IRS is experiencing significant processing delays driven by an increase in net operating loss carryback requests as a result of the CARES Act, along with other factors. As a result, the processing and expected receipt of the federal income tax refund receivable and ERTC receivable have been significantly delayed. The Company is currently working with IRS Taxpayer’s Advocate Services and consultants to resolve the processing issue. While progress has been made with the IRS and the Company expects to receive the refunds within one year, the exact timing of receipt is difficult to predict. Income tax expense (benefit) differed from amounts computed using the statutory federal income tax rate due to the following reasons:
|  | Fiscal Year Ended
|  | December 30, 2022 |  | December 24, 2021 |  | December 25, 2020
Statutory U.S. Federal tax |  | $ | 8,797 |  |  | $ | (1,423) |  |  | $ | (25,957) |
Differences due to: |  |  |  |  |  |
State and local taxes, net of federal benefit |  | 3,251 |  |  | (396) |  |  | (6,414) |
Change in valuation allowance |  | (405) |  |  | (215) |  |  | 1,354 |
Foreign rate differential |  | (560) |  |  | — |  |  | — |
Loss on debt extinguishment |  | 2,982 |  |  | — |  |  | — |
Acquisition costs |  | 472 |  |  | — |  |  | — |
Federal NOL rate differential |  | — |  |  | — |  |  | (5,212) |
Stock compensation |  | (170) |  |  | (361) |  |  | (102) |
Other |  | (228) |  |  | 542 |  |  | (4,372) |
Income tax expense (benefit) |  | $ | 14,139 |  |  | $ | (1,853) |  |  | $ | (40,703) |
Deferred tax assets and liabilities at December 30, 2022 and December 24, 2021 consist of the following:
|  | December 30, 2022 |  | December 24, 2021
Deferred tax assets: |  |  |  |
Receivables and inventory |  | $ | 10,574 |  |  | $ | 9,425 |
Self-insurance reserves |  | 2,846 |  |  | 2,211 |
Net operating loss carryforwards |  | 5,374 |  |  | 15,177 |
Interest expense carryforward |  | 7,671 |  |  | — |
Stock compensation |  | 4,629 |  |  | 3,246 |
Intangible assets |  | 2,796 |  |  | 5,210 |
Charitable contribution carryforward |  | 2,569 |  |  | 3,865 |
Operating lease liabilities |  | 44,495 |  |  | 39,335 |
Other |  | 527 |  |  | 3,072 |
Total deferred tax assets |  | 81,481 |  |  | 81,541 |
Deferred tax liabilities: |  |  |  |
Property & equipment |  | (15,602) |  |  | (7,808) |
Goodwill |  | (25,539) |  |  | (24,529) |
Intangible assets |  | (3,439) |  |  | — |
Prepaid expenses and other |  | (907) |  |  | (1,916) |
Operating lease right-of-use assets |  | (40,451) |  |  | (35,862) |
Total deferred tax liabilities |  | (85,938) |  |  | (70,115) |
Valuation allowance |  | (1,641) |  |  | (2,046) |
Total net deferred tax (liability) asset |  | $ | (6,098) |  |  | $ | 9,380 |
The deferred tax provision results from the effects of net changes during the year in deferred tax assets and liabilities arising from temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company files income tax returns in the U.S. Federal and various state and local jurisdictions as well as the Canadian Federal and provincial districts. For Federal income tax purposes, the 2019 through 2022 tax years remain open for examination by the tax authorities under the normal three-year statute of limitations and the fact that we have not yet filed our tax return for 2022. For state tax purposes, the 2018 through 2022 tax years remain open for examination by the tax authorities under a four-year statute of limitations. The Company records interest and penalties, if any, in income tax expense. The Company considered all available positive and negative evidence to determine if based on the weight of such evidence, a valuation allowance is needed. At December 30, 2022, the Company had a valuation allowance of $1,641, which consisted of foreign net operating loss carryforwards as it is not expected to be fully realizable in the future. The Company’s Canada net operating loss carryforward of $1,770 expires at various dates between fiscal 2038 and 2040. The Company’s state net operating loss carryforwards of $3,604 expire at various dates, the earliest of which expire in fiscal 2026 while others are indefinite-lived. The Company’s charitable contributions carry forward of $2,569 expire between fiscal 2025 and 2027. The Company is permanently reinvesting the earnings of it’s foreign operations. The accumulated undistributed earnings of its foreign subsidiaries are immaterial, as a majority of such earnings have been taxed in the U.S. As of December 30, 2022 and December 24, 2021, the Company did not have any material uncertain tax positions.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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