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Income Taxes (Tables) | 12 Months Ended
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Jan. 01, 2023
Income Tax Disclosure [Abstract] |
Schedule of Income before Income Tax, Domestic and Foreign | Income before income taxes is set forth below:
| Year Ended
| 2022 |  | 2021 |  | 2020
Domestic | $ | 231,862 |  |  | $ | 228,756 |  |  | $ | 149,046 |
Foreign (a) | 11,643 |  |  | 11,822 |  |  | 3,749 |
| $ | 243,505 |  |  | $ | 240,578 |  |  | $ | 152,795 |
_______________ (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
| 2022 |  | 2021 |  | 2020
Current: |  |  |  |  |
U.S. federal | $ | (43,141) |  |  | $ | (38,416) |  |  | $ | (16,176) |
State | (9,152) |  |  | (7,039) |  |  | (3,723) |
Foreign | (9,537) |  |  | (8,512) |  |  | (4,798) |
Current tax provision | (61,830) |  |  | (53,967) |  |  | (24,697) |
Deferred: |  |  |  |  |
U.S. federal | (3,868) |  |  | (52) |  |  | (6,707) |
State | (2,629) |  |  | 15,993 |  |  | (3,185) |
Foreign | 2,192 |  |  | (2,160) |  |  | (374) |
Deferred tax (provision) benefit | (4,305) |  |  | 13,781 |  |  | (10,266) |
Income tax provision | $ | (66,135) |  |  | $ | (40,186) |  |  | $ | (34,963) |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets (liabilities) are set forth below:
| Year End
| January 1, 2023 |  | January 2, 2022
Deferred tax assets: |  |  |
Operating and finance lease liabilities | $ | 355,653 |  |  | $ | 368,932 |
Net operating loss and credit carryforwards | 58,030 |  |  | 60,620 |
Deferred revenue | 23,617 |  |  | 23,636 |
Unfavorable leases | 19,085 |  |  | 19,060 |
Accrued compensation and related benefits | 14,577 |  |  | 18,487 |
Accrued expenses and reserves | 7,012 |  |  | 6,763 |
Other | 8,275 |  |  | 7,586 |
Valuation allowances | (35,680) |  |  | (38,277) |
Total deferred tax assets | 450,569 |  |  | 466,807 |
Deferred tax liabilities: |  |  |
Operating and finance lease assets | (326,646) |  |  | (341,681) |
Intangible assets | (285,688) |  |  | (290,088) |
Fixed assets | (66,830) |  |  | (63,936) |
Other | (41,826) |  |  | (38,812) |
Total deferred tax liabilities | (720,990) |  |  | (734,517) |
| $ | (270,421) |  |  | $ | (267,710) |
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 | $ | 14,350 |  |  | 2027-2032
State tax credits | 423 |  |  | 2023-2024
Foreign tax credits of non-U.S. subsidiaries | 3,881 |  |  | Indefinite
Total | $ | 18,654 |  |  |
Net operating loss carryforwards (pre-tax): |  |  |
State and local net operating loss carryforwards | $ | 1,059,037 |  |  | 2023-Indefinite
Foreign net operating loss carryforwards | 13,880 |  |  | Indefinite
Total | $ | 1,072,917 |  |  |
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
| 2022 |  | 2021 |  | 2020
Income tax provision at the U.S. federal statutory rate | $ | (51,136) |  |  | $ | (50,521) |  |  | $ | (32,087) |
State income tax provision, net of U.S. federal income tax effect | (11,616) |  |  | (6,256) |  |  | (4,664) |
Prior years’ tax matters | 2,290 |  |  | 1,820 |  |  | 1,761 |
Excess federal tax benefits from share-based compensation | 402 |  |  | 7,160 |  |  | 5,338 |
Foreign and U.S. tax effects of foreign operations | (3,744) |  |  | (5) |  |  | (397) |
Valuation allowances (a) | 2,127 |  |  | 11,807 |  |  | (4,593) |
Non-deductible goodwill (b) | — |  |  | (947) |  |  | — |
Tax credits | 1,385 |  |  | 1,028 |  |  | 1,901 |
Non-deductible executive compensation | (3,154) |  |  | (3,810) |  |  | (1,973) |
Unrepatriated earnings | (294) |  |  | (282) |  |  | (283) |
Non-deductible expenses and other | (2,395) |  |  | (180) |  |  | 34 |
| $ | (66,135) |  |  | $ | (40,186) |  |  | $ | (34,963) |
_______________ (a)2021 primarily relates to a $12,606 benefit resulting from a change in state tax law. (b)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 1, 2023, the Company had unrecognized tax benefits of $17,404, which, if resolved favorably, would reduce income tax expense by $13,749. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:
| Year Ended
| 2022 |  | 2021 |  | 2020
Beginning balance | $ | 18,849 |  |  | $ | 20,973 |  |  | $ | 22,323 |
Additions: |  |  |  |  |
Tax positions of current year | 178 |  |  | 157 |  |  | 322 |
Reductions: |  |  |  |  |
Tax positions of prior years | (662) |  |  | (2,015) |  |  | (1,183) |
Settlements | (8) |  |  | (46) |  |  | (119) |
Lapse of statute of limitations | (953) |  |  | (220) |  |  | (370) |
Ending balance | $ | 17,404 |  |  | $ | 18,849 |  |  | $ | 20,973 |

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