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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Schedule of income before income tax, domestic and foreign | The following table presents the domestic and foreign components of Income before provision for income taxes for the periods indicated:
| FISCAL YEAR
(dollars in thousands) | 2023 |  | 2022 |  | 2021
Domestic | $ | 235,357 |  |  | $ | 134,465 |  |  | $ | 258,202 |
Foreign | 37,618 |  |  | 17,442 |  |  | (8,905) |
Income before provision for income taxes | $ | 272,975 |  |  | $ | 151,907 |  |  | $ | 249,297 |
Schedule of components of income tax expense | Provision for income taxes consisted of the following for the periods indicated:
| FISCAL YEAR
(dollars in thousands) | 2023 |  | 2022 |  | 2021
Current provision (benefit): |  |  |  |  |
Federal | $ | 17,514 |  |  | $ | 13,026 |  |  | $ | 16,951 |
State | 10,788 |  |  | 10,576 |  |  | 10,917 |
Foreign | (1,918) |  |  | 5,354 |  |  | 1,862 |
| 26,384 |  |  | 28,956 |  |  | 29,730 |
Deferred (benefit) provision: |  |  |  |  |
Federal | (2,787) |  |  | 5,172 |  |  | (2,057) |
State | 944 |  |  | 3,470 |  |  | 1,194 |
Foreign | (5,980) |  |  | 5,106 |  |  | (2,483) |
| (7,823) |  |  | 13,748 |  |  | (3,346) |
Provision for income taxes | $ | 18,561 |  |  | $ | 42,704 |  |  | $ | 26,384 |
Schedule of effective income tax rate reconciliation | The reconciliation of income taxes calculated at the United States federal tax statutory rate to the Company’s effective income tax rate is as follows for the periods indicated:
| FISCAL YEAR |
| 2023 |  | 2022 |  | 2021 |
Income taxes at federal statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | % |
State and local income taxes, net of federal benefit | 3.4 |  |  | 7.3 |  |  | 3.8 |  |
Employment-related credits, net | (13.5) |  |  | (22.4) |  |  | (13.2) |  |
Brazil tax legislation | (7.7) |  |  | 0.2 |  |  | — |  |
Income tax exemption on certain Brazil state value added tax benefits | (1.8) |  |  | — |  |  | — |  |
Net changes in deferred tax valuation allowances | (0.8) |  |  | (2.8) |  |  | (0.7) |  |
Non-deductible loss on 2025 Notes Partial Repurchase | — |  |  | 18.0 |  |  | — |  |
Non-deductible expenses | 2.7 |  |  | 2.8 |  |  | 2.3 |  |
Foreign tax rate differential | 2.1 |  |  | 2.3 |  |  | (0.2) |  |
U.S. tax on foreign earnings - GILTI | 1.8 |  |  | 1.6 |  |  | — |  |
Tax settlements and related adjustments | 0.1 |  |  | (0.1) |  |  | (1.7) |  |
Other, net | (0.5) |  |  | 0.2 |  |  | (0.7) |  |
Total | 6.8 | % |  | 28.1 | % |  | 10.6 | % |
Schedule of deferred tax assets and liabilities | The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and liabilities are as follows as of the periods indicated:
(dollars in thousands) | DECEMBER 31, 2023 |  | DECEMBER 25, 2022
Deferred income tax assets: |  |  |
Operating lease liabilities | $ | 339,783 |  |  | $ | 346,482 |
Insurance reserves | 14,184 |  |  | 15,695 |
Unearned revenue | 55,746 |  |  | 52,366 |
Deferred compensation | 12,210 |  |  | 14,726 |
Net operating loss carryforwards | 12,729 |  |  | 14,277 |
Federal tax credit carryforwards | 177,775 |  |  | 165,411 |
Other, net (1) | 14,334 |  |  | 12,248 |
Gross deferred income tax assets | 626,761 |  |  | 621,205 |
Less: valuation allowance | (10,583) |  |  | (12,664) |
Deferred income tax assets, net of valuation allowance | 616,178 |  |  | 608,541 |
Deferred income tax liabilities: |  |  |
Less: operating lease right-of-use asset basis differences | (277,376) |  |  | (284,701) |
Less: property, fixtures and equipment basis differences | (66,370) |  |  | (63,344) |
Less: intangible asset basis differences | (113,027) |  |  | (109,162) |
Deferred income tax assets, net | $ | 159,405 |  |  | $ | 151,334 |
Reported as: |  |  |
Deferred income tax assets | $ | 159,405 |  |  | $ | 153,118 |
Deferred income tax liabilities (included in Other long-term liabilities, net) | — |  |  | (1,784) |
Net deferred tax assets | $ | 159,405 |  |  | $ | 151,334 |
________________ (1)As of December 31, 2023 and December 25, 2022, the Company maintained deferred tax liabilities for state income taxes on historical foreign earnings o f $0.5 million and $0.3 million, respectively.
Summary of operating loss | The amount and expiration dates of tax loss carryforwards and credit carryforwards as of December 31, 2023 are as follows:
(dollars in thousands) | EXPIRATION DATE |  | AMOUNT
Federal tax credit carryforwards | 2026 | - | 2043 |  | $ | 190,169 |
Foreign loss carryforwards | 2024 | - | Indefinite |  | $ | 55,794 |
Foreign credit carryforwards | Indefinite |  | $ | 864 |
Summary of credit carryforwards | The amount and expiration dates of tax loss carryforwards and credit carryforwards as of December 31, 2023 are as follows:
(dollars in thousands) | EXPIRATION DATE |  | AMOUNT
Federal tax credit carryforwards | 2026 | - | 2043 |  | $ | 190,169 |
Foreign loss carryforwards | 2024 | - | Indefinite |  | $ | 55,794 |
Foreign credit carryforwards | Indefinite |  | $ | 864 |
Schedule of unrecognized tax benefits roll forward | The following table summarizes the activity related to the Company’s unrecognized tax benefits for the periods indicated:
| FISCAL YEAR
(dollars in thousands) | 2023 |  | 2022 |  | 2021
Balance, beginning of the period | $ | 18,258 |  |  | $ | 19,238 |  |  | $ | 25,524 |
Additions for tax positions taken during a prior period | 42 |  |  | 114 |  |  | 166 |
Reductions for tax positions taken during a prior period | (601) |  |  | (401) |  |  | (4,209) |
Additions for tax positions taken during the current period | 1,507 |  |  | 1,100 |  |  | 1,292 |
Settlements with taxing authorities | — |  |  | (375) |  |  | (2,674) |
Lapses in the applicable statutes of limitations | (2,037) |  |  | (1,424) |  |  | (854) |
Translation adjustments | 3 |  |  | 6 |  |  | (7) |
Balance, end of the period | $ | 17,172 |  |  | $ | 18,258 |  |  | $ | 19,238 |
Summary of open audit years by jurisdiction | Following is a summary of the open audit years by jurisdiction as of December 31, 2023:
| OPEN AUDIT YEARS
United States - federal | 2007 | - | 2022
United States - state | 2009 | - | 2022
Foreign | 2015 | - | 2022

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