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Income Taxes (Tables) | 12 Months Ended
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Jan. 02, 2022
Income Tax Disclosure [Abstract] |
Schedule of Income before Income Tax, Domestic and Foreign | Income before income taxes is set forth below:
| Year Ended
| 2021 |  | 2020 |  | 2019
Domestic | $ | 228,756 |  |  | $ | 149,046 |  |  | $ | 160,474 |
Foreign (a) | 11,822 |  |  | 3,749 |  |  | 11,007 |
| $ | 240,578 |  |  | $ | 152,795 |  |  | $ | 171,481 |
_______________ (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
| 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |
U.S. federal | $ | (38,416) |  |  | $ | (16,176) |  |  | $ | (18,421) |
State | (7,039) |  |  | (3,723) |  |  | (6,093) |
Foreign | (8,512) |  |  | (4,798) |  |  | (9,190) |
Current tax provision | (53,967) |  |  | (24,697) |  |  | (33,704) |
Deferred: |  |  |  |  |
U.S. federal | (52) |  |  | (6,707) |  |  | 1,585 |
State | 15,993 |  |  | (3,185) |  |  | (2,449) |
Foreign | (2,160) |  |  | (374) |  |  | 27 |
Deferred tax (provision) benefit | 13,781 |  |  | (10,266) |  |  | (837) |
Income tax provision | $ | (40,186) |  |  | $ | (34,963) |  |  | $ | (34,541) |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets (liabilities) are set forth below:
| Year End
| January 2, 2022 |  | January 3, 2021
Deferred tax assets: |  |  |
Operating and finance lease liabilities | $ | 368,932 |  |  | $ | 365,005 |
Net operating loss and credit carryforwards | 60,620 |  |  | 62,210 |
Deferred revenue | 23,636 |  |  | 24,303 |
Unfavorable leases | 19,060 |  |  | 23,511 |
Accrued compensation and related benefits | 18,487 |  |  | 16,443 |
Accrued expenses and reserves | 6,763 |  |  | 7,673 |
Other | 7,586 |  |  | 5,869 |
Valuation allowances | (38,277) |  |  | (49,968) |
Total deferred tax assets | 466,807 |  |  | 455,046 |
Deferred tax liabilities: |  |  |
Operating and finance lease assets | (341,681) |  |  | (332,515) |
Intangible assets | (290,088) |  |  | (301,969) |
Fixed assets | (63,936) |  |  | (63,826) |
Other | (38,812) |  |  | (37,491) |
Total deferred tax liabilities | (734,517) |  |  | (735,801) |
| $ | (267,710) |  |  | $ | (280,755) |
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 | $ | 15,309 |  |  | 2022-2032
State tax credits | 593 |  |  | 2022-2023
Foreign tax credits of non-U.S. subsidiaries | 4,159 |  |  | Indefinite
Total | $ | 20,061 |  |  |
Net operating loss carryforwards (pre-tax): |  |  |
State and local net operating loss carryforwards | $ | 1,131,604 |  |  | 2022-Indefinite
Foreign net operating loss carryforwards | 6,962 |  |  | Indefinite
Total | $ | 1,138,566 |  |  |
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
| 2021 |  | 2020 |  | 2019
Income tax provision at the U.S. federal statutory rate | $ | (50,521) |  |  | $ | (32,087) |  |  | $ | (36,011) |
State income tax provision, net of U.S. federal income tax effect | (6,256) |  |  | (4,664) |  |  | (6,470) |
Prior years’ tax matters (a) | 1,820 |  |  | 1,761 |  |  | 6,135 |
Excess federal tax benefits from share-based compensation | 7,160 |  |  | 5,338 |  |  | 5,841 |
Foreign and U.S. tax effects of foreign operations | (5) |  |  | (397) |  |  | 250 |
Valuation allowances (b) | 11,807 |  |  | (4,593) |  |  | (2,833) |
Non-deductible goodwill (c) | (947) |  |  | — |  |  | — |
Tax credits | 1,028 |  |  | 1,901 |  |  | 879 |
Non-deductible executive compensation | (3,810) |  |  | (1,973) |  |  | (1,925) |
Unrepatriated earnings | (282) |  |  | (283) |  |  | (402) |
Non-deductible expenses and other | (180) |  |  | 34 |  |  | (5) |
| $ | (40,186) |  |  | $ | (34,963) |  |  | $ | (34,541) |
_______________ (a)2019 primarily relates to a reduction in unrecognized tax benefits due to a lapse of statute of limitations. (b)2021 primarily relates to the $12,606 benefit resulting from the state tax law change described above. The effect of the tax law change also included $840 of additional deferred tax expense included in the State income tax provision line item, for a total of $11,766. (c)Related to the sale of the New York Company-operated restaurants (including Manhattan). See Note 4 for further information.
Schedule of Unrecognized Tax Benefits Roll Forward | As of January 2, 2022, the Company had unrecognized tax benefits of $18,849, which, if resolved favorably would reduce income tax expense by $14,890. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:
| Year Ended
| 2021 |  | 2020 |  | 2019
Beginning balance | $ | 20,973 |  |  | $ | 22,323 |  |  | $ | 27,632 |
Additions: |  |  |  |  |
Tax positions of current year | 157 |  |  | 322 |  |  | 1,356 |
Tax positions of prior years | — |  |  | — |  |  | — |
Reductions: |  |  |  |  |
Tax positions of prior years | (2,015) |  |  | (1,183) |  |  | (227) |
Settlements | (46) |  |  | (119) |  |  | — |
Lapse of statute of limitations | (220) |  |  | (370) |  |  | (6,438) |
Ending balance | $ | 18,849 |  |  | $ | 20,973 |  |  | $ | 22,323 |

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