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Income Taxes (Tables) | 12 Months Ended
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Dec. 29, 2024
Income Tax Disclosure [Abstract] |
Schedule of income before income tax, domestic and foreign | The following table presents the domestic and foreign components of (Loss) income before (benefit) provision for income taxes for the periods indicated:
| FISCAL YEAR
(dollars in thousands) | 2024 |  | 2023 |  | 2022
Domestic | $ | (53,921) |  |  | $ | 235,357 |  |  | $ | 134,465 |
Foreign | (4,886) |  |  | (4,170) |  |  | (7,062) |
(Loss) income before (benefit) provision for income taxes | $ | (58,807) |  |  | $ | 231,187 |  |  | $ | 127,403 |
Schedule of components of income tax expense | (Benefit) provision for income taxes consisted of the following for the periods indicated:
| FISCAL YEAR
(dollars in thousands) | 2024 |  | 2023 |  | 2022
Current provision (benefit): |  |  |  |  |
Federal | $ | 12,192 |  |  | $ | 16,260 |  |  | $ | 12,368 |
State | 6,011 |  |  | 10,593 |  |  | 10,428 |
Foreign | — |  |  | (40) |  |  | — |
| 18,203 |  |  | 26,813 |  |  | 22,796 |
Deferred (benefit) provision: |  |  |  |  |
Federal | (31,185) |  |  | (6,506) |  |  | 3,227 |
State | (348) |  |  | 726 |  |  | 3,327 |
Foreign | 1,196 |  |  | (2,631) |  |  | 4,903 |
| (30,337) |  |  | (8,411) |  |  | 11,457 |
(Benefit) provision for income taxes | $ | (12,134) |  |  | $ | 18,402 |  |  | $ | 34,253 |
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. Due to the pre-tax book loss for 2024, a positive percentage change for such year in the effective tax rate table reflects a favorable income tax benefit, whereas a negative percentage change in the effective tax rate table reflects an unfavorable income tax expense:
| FISCAL YEAR
| 2024 |  | 2023 |  | 2022
Income taxes at federal statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State and local income taxes, net of federal benefit | (7.8) |  |  | 3.8 |  |  | 8.5 |
Non-deductible loss on 2025 Notes Partial Repurchases | (49.5) |  |  | — |  |  | 21.4 |
Net changes in deferred tax valuation allowances | (5.3) |  |  | (0.9) |  |  | (2.0) |
Foreign tax rate differential | (2.7) |  |  | 0.1 |  |  | 0.2 |
Non-deductible compensation | (2.2) |  |  | 1.0 |  |  | 1.1 |
Other non-deductible expenses | (2.2) |  |  | 0.3 |  |  | (0.1) |
Change in foreign tax law | (2.0) |  |  | (1.1) |  |  | 3.8 |
Statute expiration on foreign net operating losses | (0.3) |  |  | 1.1 |  |  | 0.9 |
Tax settlements and related adjustments | (0.1) |  |  | 0.1 |  |  | 0.2 |
Employment-related credits, net | 58.9 |  |  | (15.9) |  |  | (26.7) |
Non-taxable gains on foreign currency forward contracts | 6.9 |  |  | — |  |  | — |
Non-controlling interests | 1.9 |  |  | (0.6) |  |  | (1.2) |
Net life insurance expense | 1.4 |  |  | (0.3) |  |  | 0.7 |
U.S. tax impact on foreign income | 1.2 |  |  | (0.9) |  |  | (0.9) |
Other, net | 1.4 |  |  | 0.3 |  |  | — |
Total | 20.6 | % |  | 8.0 | % |  | 26.9 | %
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 29, 2024 |  | DECEMBER 31, 2023
Deferred income tax assets: |  |  |
Operating lease liabilities | $ | 320,169 |  |  | $ | 319,039 |
Insurance reserves | 13,874 |  |  | 14,184 |
Unearned revenue | 57,567 |  |  | 55,746 |
Deferred compensation | 11,392 |  |  | 12,210 |
Net operating loss carryforwards | 9,002 |  |  | 7,046 |
Federal tax credit carryforwards | 202,319 |  |  | 177,775 |
Other, net (1) | 6,905 |  |  | 5,667 |
Gross deferred income tax assets | 621,228 |  |  | 591,667 |
Less: valuation allowance | (13,707) |  |  | (10,483) |
Deferred income tax assets, net of valuation allowance | 607,521 |  |  | 581,184 |
Deferred income tax liabilities: |  |  |
Less: operating lease right-of-use asset basis differences | (252,958) |  |  | (257,422) |
Less: property, fixtures and equipment basis differences | (68,814) |  |  | (70,934) |
Less: intangible asset basis differences | (100,227) |  |  | (97,656) |
Less: foreign outside basis differences | (33,822) |  |  | — |
Deferred income tax assets, net | $ | 151,700 |  |  | $ | 155,172 |
________________ (1)As of December 29, 2024 and December 31, 2023, the Company maintained deferred tax liabilities for state income taxes on historical foreign earnings o f $0.3 million and $0.5 million, respectively.
Summary of operating loss | The amount and expiration dates of tax loss carryforwards and credit carryforwards as of December 29, 2024 are as follows:
(dollars in thousands) | EXPIRATION DATE |  | AMOUNT
Federal tax credit carryforwards | 2026 | - | 2044 |  | $ | 214,846 |
Foreign loss carryforwards | 2025 | - | Indefinite |  | $ | 50,187 |
Foreign credit carryforwards | Indefinite |  | $ | 864 |
Summary of credit carryforwards | The amount and expiration dates of tax loss carryforwards and credit carryforwards as of December 29, 2024 are as follows:
(dollars in thousands) | EXPIRATION DATE |  | AMOUNT
Federal tax credit carryforwards | 2026 | - | 2044 |  | $ | 214,846 |
Foreign loss carryforwards | 2025 | - | Indefinite |  | $ | 50,187 |
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 period indicated:
| FISCAL YEAR |  |  |  |
(dollars in thousands) | 2024 |  |  |  |
Balance, beginning of the period | $ | 17,121 |  |  |  |  |
Additions for tax positions taken during a prior period | 19 |  |  |  |  |
Reductions for tax positions taken during a prior period | (6) |  |  |  |  |
Additions for tax positions taken during the current period | 941 |  |  |  |  |
Lapses in the applicable statutes of limitations | (596) |  |  |  |  |
Balance, end of the period | $ | 17,479 |  |  |  |  |
Summary of open tax years by jurisdiction | Following is a summary of the open audit years by jurisdiction as of December 29, 2024:
| OPEN AUDIT YEARS
United States - federal | 2007 | - | 2023
United States - state | 2020 | - | 2023
Foreign | 2015 | - | 2023

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- Definition Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-15 + Details
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