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Income Taxes (Tables)

12 Months Ended

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 of $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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