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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | M. Income Taxes Significant components of the income tax provision (benefit) are as follows:
|  | 2022 |  |  | 2021 |  |  | 2020 |
|  | (in thousands) |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 10,453 |  |  | $ | (4,473 | ) |  | $ | 25,115 |
State |  |  | 4,683 |  |  |  | 2,078 |  |  |  | 9,455 |
Total current |  |  | 15,136 |  |  |  | (2,395 | ) |  |  | 34,570 |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  |  | 8,196 |  |  |  | (2,762 | ) |  |  | 16,363 |
State |  |  | 841 |  |  |  | (2,487 | ) |  |  | 1,337 |
Total deferred |  |  | 9,037 |  |  |  | (5,249 | ) |  |  | 17,700 |
Total income tax provision (benefit) |  | $ | 24,173 |  |  | $ | (7,644 | ) |  | $ | 52,270 |
The reconciliations to statutory rates are as follows:
|  | 2022 |  |  | 2021 |  |  | 2020 |
Statutory rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
State income taxes, net of federal benefit |  |  | 4.1 |  |  |  | 11.0 |  |  |  | 4.4 |
Deduction relating to excess stock-based compensation |  |  | (0.9 | ) |  |  | (153.8 | ) |  |  | (4.3 | )
Non-deductible meals & entertainment |  |  | 0.6 |  |  |  | 5.6 |  |  |  | 0.2 |
Change in unrecognized tax benefits (including interest and penalty) |  |  | — |  |  |  | (8.7 | ) |  |  | — |
Federal and state provision to return |  |  | (0.2 | ) |  |  | (7.1 | ) |  |  | (0.1 | )
Change in valuation allowance |  |  | 1.2 |  |  |  | 21.9 |  |  |  | 0.1 |
Other |  |  | 0.6 |  |  |  | (0.6 | ) |  |  | 0.1 |
|  |  | 26.4 | % |  |  | (110.7 | )% |  |  | 21.4 | %
Significant components of the Company’s deferred tax assets and liabilities are as follows at:
|  | December 31, 2022 |  |  | December 25, 2021 |
|  | (in thousands) |
Deferred tax assets: |  |  |  |  |  |
Lease liabilities |  | $ | 13,994 |  |  | $ | 16,236 |
Inventory reserves |  |  | 8,595 |  |  |  | 14,343 |
Stock-based compensation expense |  |  | 7,441 |  |  |  | 6,713 |
Loss carryforwards |  |  | 968 |  |  |  | 3,859 |
Accrued expenses |  |  | 4,609 |  |  |  | 3,449 |
Accrued commitments for inventory at vendor locations |  |  | 1,799 |  |  |  | 2,607 |
Tax credit carryforwards |  |  | 813 |  |  |  | 1,874 |
Accrued destruction costs |  |  | — |  |  |  | 1,538 |
Other |  |  | 1,833 |  |  |  | 2,703 |
Total deferred tax assets |  |  | 40,052 |  |  |  | 53,322 |
Valuation allowance |  |  | (4,600 | ) |  |  | (3,341 | )
Total deferred tax assets, net of valuation allowance |  |  | 35,452 |  |  |  | 49,981 |
Deferred tax liabilities: |  |  |  |  |  |
Property, plant, and equipment |  |  | (103,561 | ) |  |  | (102,696 | )
Right-of-use assets |  |  | (11,375 | ) |  |  | (14,035 | )
Intangible assets amortization |  |  | (10,373 | ) |  |  | (15,024 | )
Prepaid expenses |  |  | (6,735 | ) |  |  | (5,721 | )
Total deferred tax liabilities |  |  | (132,044 | ) |  |  | (137,476 | )
Net deferred tax liabilities |  | $ | (96,592 | ) |  | $ | (87,495 | )
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 to $0 in each of the fiscal years 2022, 2021, and 2020. Accrued interest and penalties amounted to $0.2 million at December 31, 2022 and December 25, 2021. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|  | 2022 |  |  | 2021 |
|  | (in thousands) |
Balance at beginning of period |  | $ | 232 |  |  | $ | 812 |
Increases related to current period tax positions |  |  | 41 |  |  |  | 59 |
(Decreases) increases related to prior period tax positions |  |  | (30 | ) |  |  | 36 |
Decreases related to lapse of statute of limitations |  |  | — |  |  |  | (675 | )
Balance at end of period |  | $ | 243 |  |  | $ | 232 |
Included in the balance of unrecognized tax benefits at December 31, 2022 and December 25, 2021 are potential net benefits of $0.2 million and $0.2 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 31, 2022, the Company’s 2019, 2020, and 2021 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 31, 2022. As of December 31, 2022, the Company’s deferred tax assets include a valuation allowance of $4.6 million, compared to $3.3 million at December 25, 2021. The valuation allowance as of December 31, 2022 and December 25, 2021 were primarily related to stock-based compensation expected by management to be non-deductible under Internal Revenue Code, Section 162(m). The net increase in total valuation allowance was $1.3 million from December 25, 2021 to December 31, 2022, compared to a net increase of $1.3 million from December 26, 2020 to December 25, 2021.

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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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