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Income Taxes | 12 Months Ended
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Dec. 28, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | 10. Income Taxes The components of the net deferred tax liability are as follows:
| December 28, 2023 |  | December 29, 2022
Deferred tax assets |  |  |
Accrued employee benefits | $ | 13,653 |  |  | $ | 14,133 |
Operating lease liabilities | 50,601 |  |  | 54,767 |
Gift card liabilities | 6,490 |  |  | 6,575 |
Net operating loss, disallowed interest & tax credit carryforwards | 21,069 |  |  | 28,273 |
Other | 2,378 |  |  | 3,791 |
Total | 94,191 |  |  | 107,539 |
Less valuation allowance | (11,338) |  |  | (12,371) |
Deferred tax assets | 82,853 |  |  | 95,168 |
Deferred tax liabilities |  |  |
Depreciation and amortization | (68,164) |  |  | (70,849) |
Operating lease assets | (46,924) |  |  | (50,886) |
Deferred tax liabilities | (115,088) |  |  | (121,735) |
Net deferred tax liability | $ | (32,235) |  |  | $ | (26,567) |
Amounts recognized in the consolidated balance sheets consist of: |  |  |
Deferred income taxes - other assets | $ | — |  |  | $ | — |
Deferred income taxes - liabilities | (32,235) |  |  | (26,567) |
Net amount recognized | $ | (32,235) |  |  | $ | (26,567) |
As of December 29, 2022, the Company had a federal net operating loss carryforward of $19,656, which was fully utilized during fiscal 2023. As of December 28, 2023 and December 29, 2022 the Company had federal tax credit carryforwards of $4,150 and $4,538, respectively. As of December 28, 2023 and December 29, 2022, the Company has state net operating loss carryforwards of $209,866 and $238,682, respectively, which will expire primarily in the next 12 to 20 years. As of December 29, 2022, the valuation allowance for a portion of the Company’s state net operating loss carryforwards that are not more likely than not to be realized was $12,371. In fiscal 2023, the Company decreased the valuation allowance by $1,033 to $11,338. The amount of the state net operating loss carryforwards considered realizable could be adjusted if, among other factors, estimates of future taxable income during the carryforward periods are reduced or increased. Income tax expense (benefit) consists of the following:
| Year Ended
| December 28, 2023 |  | December 29, 2022 |  | December 30, 2021
Current: |  |  |  |  |
Federal | $ | 603 |  |  | $ | (452) |  |  | $ | 13 |
State | 692 |  |  | 556 |  |  | 129 |
Deferred: |  |  |  |  |
Federal | 3,900 |  |  | (3,222) |  |  | (12,629) |
State | 1,661 |  |  | 10,255 |  |  | (3,214) |
| $ | 6,856 |  |  | $ | 7,137 |  |  | $ | (15,701) |
The Company’s effective income tax rate, adjusted for earnings from noncontrolling interests, was 31.7%, (147.6)% and 26.6% for fiscal 2023, fiscal 2022 and fiscal 2021, respectively. The Company's effective income tax rate during fiscal 2022 was negatively impacted by a $9,956 increase in the valuation allowance for state net operating loss carryforwards, partially offset by a corresponding increase in the federal benefit on the valuation allowance of $2,598. Excluding the negative impact of the valuation allowance adjustment, the Company’s effect income tax rate during fiscal 2022 was 4.6%. The Company has not included the income tax expense related to the net earnings attributable to noncontrolling interests in its income tax expense as the entity is considered a pass-through entity and, as such, the income tax expense is attributable to its owners. A reconciliation of the statutory federal tax rate to the effective tax rate on earnings attributable to The Marcus Corporation follows:
| Year Ended
| December 28, 2023 |  | December 29, 2022 |  | December 30, 2021
Statutory federal tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal income tax benefit | 11.4 |  |  | 4.3 |  |  | 6.7 |
Tax credits, net of federal income tax benefit | (5.6) |  |  | 22.9 |  |  | 1.6 |
Valuation allowance | (4.8) |  |  | (205.9) |  |  | (4.1) |
Federal income tax benefit on state valuation allowance | 1.0 |  |  | 53.7 |  |  | — |
Excess tax benefits on share-based compensation | 2.8 |  |  | (22.1) |  |  | (0.6) |
Other compensation and benefits | 5.4 |  |  | (15.6) |  |  | (0.7) |
Meals and entertainment | 1.1 |  |  | (4.1) |  |  | (0.4) |
Other | (0.6) |  |  | (1.8) |  |  | 3.1 |
| 31.7 | % |  | (147.6) | % |  | 26.6 | %
Net income taxes paid in fiscal 2023 were $1,776. Net income taxes refunded in fiscal 2022 and fiscal 2021 were $21,935 and $8,316, respectively. Net income taxes refunded in fiscal 2022 and fiscal 2021 included $22,300 and $7,800, respectively, related to federal net operating loss carrybacks to prior years, as allowed under the provisions of the CARES Act. The Company had no unrecognized tax benefits as of December 28, 2023, December 29, 2022 and December 30, 2021. The Company had no accrued interest or penalties at December 28, 2023 or December 29, 2022. The Company classifies interest and penalties relating to income taxes as income tax expense. For the year ended December 28, 2023, $1 of interest expense was recognized in the consolidated statement of earnings (loss), compared to $683 of interest income for the year ended December 29, 2022 and $60 of interest income for the year ended December 30, 2021. In the fourth quarter of 2021, the Company settled, with no significant change, an examination by the Internal Revenue Service of its fiscal 2019 and 2020 income tax returns. The examination included the previous five fiscal years, to the extent that net operating losses were carried back to those fiscal years under the CARES Act. With certain exceptions, the Company's state income tax returns are no longer subject to examination prior to fiscal 2019. At this time, the Company does not expect the results from any income tax audit or appeal to have a significant impact on the Company's financial statements.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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