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Income Taxes | 12 Months Ended
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Dec. 25, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | M. Income Taxes Significant components of the income tax (benefit) provision are as follows:
|  | 2021 |  |  | 2020 |  |  | 2019 |
|  | (in thousands) |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | (4,473 | ) |  | $ | 25,115 |  |  | $ | 18,510 |
State |  |  | 2,078 |  |  |  | 9,455 |  |  |  | 8,084 |
Total current |  |  | (2,395 | ) |  |  | 34,570 |  |  |  | 26,594 |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  |  | (2,762 | ) |  |  | 16,363 |  |  |  | 8,081 |
State |  |  | (2,487 | ) |  |  | 1,337 |  |  |  | (346 | )
Total deferred |  |  | (5,249 | ) |  |  | 17,700 |  |  |  | 7,735 |
Total income tax (benefit) provision |  | $ | (7,644 | ) |  | $ | 52,270 |  |  | $ | 34,329 |
The reconciliations to statutory rates are as follows:
|  | 2021 |  |  | 2020 |  |  | 2019 |
Statutory rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
State income taxes, net of federal benefit |  |  | 11.0 |  |  |  | 4.4 |  |  |  | 4.6 |
Deduction relating to excess stock based compensation |  |  | (153.8 | ) |  |  | (4.3 | ) |  |  | (3.2 | )
Non-deductible meals & entertainment |  |  | 5.6 |  |  |  | 0.2 |  |  |  | 0.7 |
Change in unrecognized tax benefits (including interest and penalty) |  |  | (8.7 | ) |  |  | — |  |  |  | — |
Federal and state provision to return |  |  | (7.1 | ) |  |  | (0.1 | ) |  |  | (0.3 | )
Change in valuation allowance |  |  | 21.9 |  |  |  | 0.1 |  |  |  | 0.4 |
Other |  |  | (0.6 | ) |  |  | 0.1 |  |  |  | 0.6 |
|  |  | (110.7 | )% |  |  | 21.4 | % |  |  | 23.8 | %
Significant components of the Company’s deferred tax assets and liabilities are as follows at:
|  | December 25, 2021 |  |  | December 26, 2020 |
|  | (in thousands) |
Deferred tax assets: |  |  |  |  |  |
Lease Liabilities |  | $ | 16,236 |  |  | $ | 17,951 |
Inventory |  |  | 14,343 |  |  |  | 4,114 |
Stock-based compensation expense |  |  | 6,713 |  |  |  | 5,568 |
Loss carryforwards |  |  | 3,859 |  |  |  | — |
Accrued expenses |  |  | 3,449 |  |  |  | 1,581 |
Accrued commitments for inventory at vendor locations |  |  | 2,607 |  |  |  | — |
Tax credit carryforwards |  |  | 1,874 |  |  |  | 774 |
Accrued destruction costs |  |  | 1,538 |  |  |  | — |
Accrued noncancellable purchase orders for cancelled projects |  |  | 1,134 |  |  |  | — |
Other |  |  | 1,569 |  |  |  | 1,439 |
Total deferred tax assets |  |  | 53,322 |  |  |  | 31,427 |
Valuation allowance |  |  | (3,341 | ) |  |  | (2,022 | )
Total deferred tax assets net of valuation allowance |  |  | 49,981 |  |  |  | 29,405 |
Deferred tax liabilities: |  |  |  |  |  |
Property, plant and equipment |  |  | (102,696 | ) |  |  | (88,947 | )
Right-of-use assets |  |  | (14,035 | ) |  |  | (15,695 | )
Amortization |  |  | (15,024 | ) |  |  | (12,900 | )
Prepaid expenses |  |  | (5,721 | ) |  |  | (4,528 | )
Total deferred tax liabilities |  |  | (137,476 | ) |  |  | (122,070 | )
Net deferred tax liabilities |  | $ | (87,495 | ) |  | $ | (92,665 | )
The Company’s policy is to classify interest and penalties related to income tax matters in income tax expense. Interest and penalties included in the provision for income taxes amounted t o $0 in each of the fiscal years 2021, 2020, and 2019. Accrued interest and penalties amounted to $0.2 million and $0.2 million at December 25, 2021 and December 26, 2020, respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|  | 2021 |  |  | 2020 |
|  | (in thousands) |
Balance at beginning of year |  | $ | 812 |  |  | $ | 811 |
Increases related to current year tax positions |  |  | 59 |  |  |  | — |
Increases related to prior year tax positions |  |  | 36 |  |  |  | 13 |
Decreases related to lapse of statute of limitations |  |  | (675 | ) |  |  | (12 | )
Balance at end of year |  | $ | 232 |  |  | $ | 812 |
Included in the balance of unrecognized tax benefits at December 25, 2021 and December 26, 2020 are potential net benefits of $0.2 million and $0.8 million, respectively, that would favorably impact the effective tax rate if recognized. Unrecognized tax benefits are included in accrued expenses in the accompanying consolidated balance sheets and adjusted in the period in which new information about a tax position becomes available or the final outcome differs from the amount recorded. As of December 25, 2021, the Company’s 2018, 2019, and 2020 federal income tax returns remain subject to examination by IRS. The Company’s state income tax returns remain subject to examination for three or four years depending on the state’s statute of limitations. In addition, the Company is generally obligated to report changes in taxable income arising from federal income tax audits. The Company is not currently under any income tax audits as of December 25, 2021. It is reasonably possible that the Company’s unrecognized tax benefits may increase or decrease in 2021 if there are changes as a result of potential income tax audits; however, the Company cannot estimate the range of such possible changes. The Company does not expect that any potential changes would have a material impact on the Company’s financial position, results of operations or cash flows. As of December 25, 2021, the Company’s deferred tax assets included a capital loss carryforward totaling $0.9 million, which is expected to expire before being utilized. The Company has included a valuation allowance against this loss carryforward.

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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 http://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 http://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 http://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 http://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 http://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 http://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 http://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 http://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 http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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