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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Schedule of Components of Loss Before Income Taxes | Below are the components of loss before income taxes for the fiscal years ended December 31, 2023, January 1, 2023, and January 2, 2022 under the following tax jurisdictions:
| For the Fiscal Year Ended |
(in thousands) | December 31, 2023 |  |  | January 1, 2023 |  |  | January 2, 2022 |
Domestic | $ | (70,787 | ) |  | $ | 1,734 |  |  | $ | (45,312 | )
Foreign |  | (35,490 | ) |  |  | (216,383 | ) |  |  | (222,508 | )
| $ | (106,277 | ) |  | $ | (214,649 | ) |  | $ | (267,820 | )
Schedule of Provision For Income Taxes | The provision for income taxes is as follows:
| For the Fiscal Year Ended |
(in thousands) | December 31, 2023 |  |  | January 1, 2023 |  |  | January 2, 2022 |
Current tax expense |  |  |  |  |  |  |  |
Domestic | $ | (59 | ) |  | $ | 2,240 |  |  | $ | - |
Foreign |  | 11,477 |  |  |  | 2,654 |  |  |  | 1,167 |
Total current |  | 11,418 |  |  |  | 4,894 |  |  |  | 1,167 |
Deferred tax expense (benefit) |  |  |  |  |  |  |  |
Domestic |  | (690 | ) |  |  | 690 |  |  |  | (891 | )
Foreign |  | 83 |  |  |  | (453 | ) |  |  | 618 |
Total deferred |  | (607 | ) |  |  | 237 |  |  |  | (273 | )
Total income tax expense (benefit) | $ | 10,811 |  |  | $ | 5,131 |  |  | $ | 894 |
Effective income tax rate |  | (10 | %) |  |  | (2 | %) |  |  | (0 | %)
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the US statutory income tax rate to the consolidated effective income tax rate is as follows:
| For the Fiscal Year Ended |
| December 31, 2023 |  |  | January 1, 2023 |  |  | January 2, 2022 |
Benefit at US statutory income tax rate |  | 21 | % |  |  | 21 | % |  |  | 21 | %
Permanent differences |  | (3 | %) |  |  | (2 | %) |  |  | (3 | %)
Non deductible expenses |  | (4 | %) |  |  | 0 | % |  |  | (3 | %)
Change in unrecognized tax benefits |  | (25 | %) |  |  | 0 | % |  |  | 0 | %
Movement in valuation allowances |  | (3 | %) |  |  | (9 | %) |  |  | (15 | %)
Change in valuation allowance due to remeasurement of deferred taxes |  | 0 | % |  |  | 0 | % |  |  | (7 | %)
Differences in tax rates in other jurisdictions |  | 3 | % |  |  | 0 | % |  |  | 0 | %
Change in tax rates |  | 0 | % |  |  | 0 | % |  |  | 7 | %
Loss of tax attributes |  | 0 | % |  |  | (13 | %) |  |  | 0 | %
State and local |  | (1 | %) |  |  | 0 | % |  |  | 0 | %
True up |  | 1 | % |  |  | 0 | % |  |  | 0 | %
Other |  | (0 | %) |  |  | 1 | % |  |  | 0 | %
Effective income tax rate |  | (10 | %) |  |  | (2 | %) |  |  | (0 | %)
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consist of the following:
| As of |
(in thousands) | December 31, 2023 |  |  | January 1, 2023 |
Deferred tax assets |  |  |  |  |
Property and equipment, net | $ | 35,077 |  |  | $ | 26,858 |
Other short term differences |  | 31,059 |  |  |  | 54,497 |
Lease liability |  | 329,162 |  |  |  | 304,717 |
Interest limitation carryforward |  | 55,223 |  |  |  | 66,866 |
Tax losses |  | 104,214 |  |  |  | 110,201 |
Total gross deferred tax assets |  | 554,735 |  |  |  | 563,139 |
Valuation allowance |  | (187,743 | ) |  |  | (216,114 | )
Total deferred tax assets | $ | 366,992 |  |  | $ | 347,025 |
Deferred tax liabilities |  |  |  |  |
Property and equipment, net | $ | (29,136 | ) |  | $ | (23,357 | )
Intangible assets |  | (13,735 | ) |  |  | (13,093 | )
Right of use asset |  | (323,744 | ) |  |  | (310,956 | )
Other |  | (1,147 | ) |  |  | (990 | )
Total gross deferred tax liabilities |  | (367,762 | ) |  |  | (348,396 | )
Total net deferred tax liabilities | $ | (770 | ) |  | $ | (1,371 | )
Total net deferred taxes are classified as follows:
| As of |
(in thousands) | December 31, 2023 |  |  | January 1, 2023 |
Non-current deferred tax assets | $ | 740 |  |  | $ | 295 |
Non-current deferred tax liabilities |  | (1,510 | ) |  |  | (1,666 | )
| $ | (770 | ) |  | $ | (1,371 | )
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
(in thousands) | December 31, 2023 |  |  | January 1, 2023 |  |  | January 2, 2022 |
Balance at beginning of year | $ | 15,841 |  |  | $ | 15,129 |  |  | $ | 11,293 |
Additions related to the current year |  | 11,917 |  |  |  | 5,359 |  |  |  | 3,948 |
Additions related to the prior years |  | 17,899 |  |  |  | - |  |  |  | - |
Reductions related to prior year positions |  | (95 | ) |  |  | - |  |  |  | - |
Reductions due to expiry of state of limitations |  | (176 | ) |  |  | (3,014 | ) |  |  | (3,822 | )
Change in tax rate |  | - |  |  |  | - |  |  |  | 3,566 |
Foreign exchange |  | 1,503 |  |  |  | (1,633 | ) |  |  | 144 |
Balance at end of year | $ | 46,889 |  |  | $ | 15,841 |  |  | $ | 15,129 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 9 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-9 + Details
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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15A -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15A Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 19 -SubTopic 10 -Topic 740 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-19 + Details
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