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Income Taxes (Tables) | 12 Months Ended
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Jan. 03, 2021
Income Tax Disclosure [Abstract] |
Schedule of Income before Income Tax, Domestic and Foreign | Income before income taxes is set forth below:
| Year Ended
| 2020 |  | 2019 |  | 2018
Domestic | $ | 149,046 |  |  | $ | 160,474 |  |  | $ | 560,776 |
Foreign (a) | 3,749 |  |  | 11,007 |  |  | 14,140 |
| $ | 152,795 |  |  | $ | 171,481 |  |  | $ | 574,916 |
_______________ (a)Excludes foreign income of domestic subsidiaries.
Schedule of Components of Income Tax (Expense) Benefit | The (provision for) benefit from income taxes is set forth below:
| Year Ended
| 2020 |  | 2019 |  | 2018
Current: |  |  |  |  |
U.S. federal | $ | (16,176) |  |  | $ | (18,421) |  |  | $ | (109,078) |
State | (3,723) |  |  | (6,093) |  |  | (2,661) |
Foreign | (4,798) |  |  | (9,190) |  |  | (9,630) |
Current tax provision | (24,697) |  |  | (33,704) |  |  | (121,369) |
Deferred: |  |  |  |  |
U.S. federal | (6,707) |  |  | 1,585 |  |  | 5,071 |
State | (3,185) |  |  | (2,449) |  |  | 441 |
Foreign | (374) |  |  | 27 |  |  | 1,056 |
Deferred tax (provision) benefit | (10,266) |  |  | (837) |  |  | 6,568 |
Income tax provision | $ | (34,963) |  |  | $ | (34,541) |  |  | $ | (114,801) |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets (liabilities) are set forth below:
| Year End
| January 3, 2021 |  | December 29, 2019
Deferred tax assets: |  |  |
Operating and finance lease liabilities | $ | 365,005 |  |  | $ | 345,173 |
Net operating loss and credit carryforwards | 62,210 |  |  | 59,597 |
Unfavorable leases | 23,511 |  |  | 26,020 |
Deferred revenue | 24,303 |  |  | 23,907 |
Accrued compensation and related benefits | 16,443 |  |  | 18,477 |
Accrued expenses and reserves | 7,673 |  |  | 13,786 |
Deferred rent | — |  |  | 492 |
Other | 5,869 |  |  | 3,757 |
Valuation allowances | (49,968) |  |  | (45,183) |
Total deferred tax assets | 455,046 |  |  | 446,026 |
Deferred tax liabilities: |  |  |
Operating and finance lease assets | (332,515) |  |  | (313,803) |
Intangible assets | (301,969) |  |  | (311,596) |
Fixed assets | (63,826) |  |  | (60,788) |
Other | (37,491) |  |  | (30,598) |
Total deferred tax liabilities | (735,801) |  |  | (716,785) |
| $ | (280,755) |  |  | $ | (270,759) |
Summary of Net Operating Loss and Tax Credit Carryforwards | The amounts and expiration dates of net operating loss and tax credit carryforwards are as follows:
| Amount |  | Expiration
Tax credit carryforwards: |  |  |
U.S. federal foreign tax credits | $ | 13,681 |  |  | 2022-2030
State tax credits | 708 |  |  | 2021-2023
Foreign tax credits of non-U.S. subsidiaries | 4,125 |  |  | Not applicable
Total | $ | 18,514 |  |  |
Net operating loss carryforwards: |  |  |
State and local net operating loss carryforwards | $ | 1,182,774 |  |  | 2021-2035
Foreign net operating loss carryforwards | 1,044 |  |  | Not applicable
Total | $ | 1,183,818 |  |  |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of income tax computed at the U.S. federal statutory rate of 21% to reported income tax is set forth below:
| Year Ended
| 2020 |  | 2019 |  | 2018 (a)
Income tax provision at the U.S. federal statutory rate | $ | (32,087) |  |  | $ | (36,011) |  |  | $ | (120,732) |
State income tax provision, net of U.S. federal income tax effect | (4,664) |  |  | (6,470) |  |  | (221) |
Prior years’ tax matters (b) | 1,761 |  |  | 6,135 |  |  | (9,970) |
Excess federal tax benefits from share-based compensation | 5,338 |  |  | 5,841 |  |  | 10,250 |
Foreign and U.S. tax effects of foreign operations | (397) |  |  | 250 |  |  | (856) |
Valuation allowances | (4,593) |  |  | (2,833) |  |  | 5,120 |
Non-deductible goodwill (c) | — |  |  | — |  |  | (41) |
Tax credits | 1,901 |  |  | 879 |  |  | 1,089 |
Non-deductible executive compensation | (1,973) |  |  | (1,925) |  |  | (1,098) |
Unrepatriated earnings | (283) |  |  | (402) |  |  | (326) |
Non-deductible expenses and other | 34 |  |  | (5) |  |  | 1,984 |
| $ | (34,963) |  |  | $ | (34,541) |  |  | $ | (114,801) |
_______________ (a)2018 includes the following impacts associated with the Tax Act: (1) a net expense of $2,426 related to the impact of the corporate rate reduction on our net deferred tax liabilities, (2) a net expense of $991 related to the limitations on the deductibility of certain executive compensation, (3) a net expense of $28 of state income tax and (4) a net benefit of $1,286 related to foreign tax credits. (b)2019 primarily relates to a reduction in unrecognized tax benefits due to a lapse of statute of limitations. 2018 includes expense of $9,542 related to the Tax Act, which was partially offset by a $7,535 benefit reported in “Valuation allowances.” (c)Substantially all of the goodwill included in the net gain (loss) on sales of restaurants in 2018 under our system optimization initiative was non-deductible for tax purposes. See Note 3 for further information.
Schedule of Unrecognized Tax Benefits Roll Forward | As of January 3, 2021, the Company had unrecognized tax benefits of $20,973, which, if resolved favorably would reduce income tax expense by $16,601. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:
| Year End
| January 3, 2021 |  | December 29, 2019 |  | December 30, 2018
Beginning balance | $ | 22,323 |  |  | $ | 27,632 |  |  | $ | 28,848 |
Additions: |  |  |  |  |
Tax positions of current year | 322 |  |  | 1,356 |  |  | 3,874 |
Tax positions of prior years | — |  |  | — |  |  | 2,598 |
Reductions: |  |  |  |  |
Tax positions of prior years | (1,183) |  |  | (227) |  |  | (7,553) |
Settlements | (119) |  |  | — |  |  | (21) |
Lapse of statute of limitations | (370) |  |  | (6,438) |  |  | (114) |
Ending balance | $ | 20,973 |  |  | $ | 22,323 |  |  | $ | 27,632 |

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