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Income Taxes
 9 Months Ended
Sep. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes

I. Income Taxes

 

The following table provides a summary of the income tax provision for the thirteen and thirty-nine weeks ended September 30, 2023 and September 24, 2022:

 

 

 

Thirteen weeks ended

 

Thirty-nine weeks ended

 

 

September 30,
2023

 

September 24,
2022

 

September 30,
2023

 

September 24,
2022

Effective tax rate

 

29.3%

 

28.6%

 

28.4%

 

26.3%

 

 

The increase in the tax rate for the thirteen weeks ended September 30, 2023 as compared to the thirteen weeks ended September 24, 2022 is primarily due to a reduction in estimated annual pre-tax income due to non-cash impairment charges, with no corresponding decrease in permanent non-deductible items. The increase in the tax rate for the thirty-nine weeks ended September 30, 2023 as compared to the thirty-nine weeks ended September 24, 2022 is primarily due to an increase to permanent, non-deductible items as well as a decrease in the tax benefit related to stock-based compensation awards.

 

As of both September 30, 2023 and December 31, 2022, the Company had approximately $0.2 million of unrecognized income tax benefits.

 

The Company’s practice is to classify interest and penalties related to income tax matters in income tax expense. As of September 30, 2023 and December 31, 2022, the Company had approximately $0.2 million accrued for interest and penalties recorded in other liabilities.

 

The Internal Revenue Service completed an examination of the 2015 consolidated corporate income tax return and issued a no change report in 2018. The Company’s state income tax returns remain subject to examination for three or four years depending on the state’s statute of limitations. The Company is not currently under any income tax audits as of September 30, 2023.