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Income Taxes | 12 Months Ended
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Dec. 29, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The provisions for (benefits from) income taxes were as follows:
| Fiscal Year Ended
| December 29, 2021 |  | December 30, 2020 |  | December 25, 2019
| (In thousands)
Current: |  |  |  |  |
Federal | $ | 12,997 |  |  | $ | (3,497) |  |  | $ | 12,421 |
State and local | 3,105 |  |  | (109) |  |  | 5,156 |
Foreign | 862 |  |  | 667 |  |  | 1,142 |
Deferred: |  |  |  |  |
Federal | 6,826 |  |  | 393 |  |  | 9,944 |
State and local | 7,271 |  |  | 3,588 |  |  | 6,061 |
Decrease of valuation allowance | (5,031) |  |  | (3,041) |  |  | (2,935) |
Total provision for (benefit from) income taxes | $ | 26,030 |  |  | $ | (1,999) |  |  | $ | 31,789 |
The reconciliation of income taxes at the U.S. federal statutory tax rate to our effective tax rate was as follows:
| December 29, 2021 |  | December 30, 2020 |  | December 25, 2019
Statutory provision rate | 21 | % |  | 21 | % |  | 21 | %
State, foreign and local taxes, net of federal income tax benefit | 5 |  |  | (11) |  |  | 8 |
Change in state valuation allowance | (1) |  |  | (1) |  |  | (2) |
General business credits generated | (2) |  |  | 9 |  |  | (2) |
Foreign tax credits generated | 1 |  |  | 2 |  |  | (1) |
Carryback of net operating loss rate differential | — |  |  | 12 |  |  | — |
Section 162(m) and share-based compensation | 1 |  |  | (11) |  |  | (3) |
Insurance premiums | — |  |  | 5 |  |  | — |
Other | — |  |  | 2 |  |  | — |
Effective tax rate | 25 | % |  | 28 | % |  | 21 | %
For 2021, the difference in the overall effective rate from the U.S. statutory rate was primarily due to state and foreign taxes and the generation of employment credits. The 2021 rate was also impacted by an expense of $1.3 million from disallowed compensation deductions. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law as a response to the economic impacts of the COVID-19 pandemic. As a result of the CARES Act, during 2021 the Company carried back 2020’s net operating loss to years 2015 and forward, to obtain $1.5 million in federal income tax refunds. See Note 15 for a discussion of other items related to the CARES Act. For 2020, the difference in the overall effective rate from the U.S. statutory rate was primarily due to state and foreign taxes and the generation of employment credits. The 2020 rate was also impacted by a $0.9 million benefit from the statutory rate differential due to a net operating loss carryback to a prior year and an expense of $1.0 million from disallowed compensation deductions. For 2019, there was no significant difference between our effective tax rate and the statutory tax rate of 21%. The impact of state taxes on the statutory rate was partially offset by the generation of employment and foreign tax credits. In addition, the 2019 rate benefited $2.0 million related to share-based compensation and $2.0 million related to the completion of an Internal Revenue Service federal income audit of the 2016 tax year. The following table represents the approximate tax effect of each significant type of temporary difference that resulted in deferred income tax assets or liabilities.
| December 29, 2021 |  | December 30, 2020
| (In thousands)
Deferred tax assets: |  |  |
Self-insurance accruals | $ | 2,594 |  |  | $ | 3,315 |
Finance lease liabilities | 1,281 |  |  | 1,369 |
Operating lease liabilities | 35,545 |  |  | 39,555 |
Accrued exit cost | 19 |  |  | 25 |
Interest rate swaps | 13,221 |  |  | 19,806 |
Pension, other retirement and compensation plans | 11,259 |  |  | 10,638 |
Deferred income | 4,675 |  |  | 5,337 |
General business and foreign tax credit carryforwards - state and federal | 2,218 |  |  | 2,782 |
Net operating loss carryforwards - state | 1,429 |  |  | 5,888 |
Charitable contribution carryforwards - federal and state | — |  |  | 161 |
Total deferred tax assets before valuation allowance | 72,241 |  |  | 88,876 |
Less: valuation allowance | (2,192) |  |  | (7,223) |
Total deferred tax assets | 70,049 |  |  | 81,653 |
Deferred tax liabilities: |  |  |
Intangible assets | (14,874) |  |  | (14,579) |
Deferred finance costs | (313) |  |  | (86) |
Operating lease right-of-use assets | (32,198) |  |  | (35,732) |
Fixed assets | (10,134) |  |  | (7,679) |
Other accruals | (1,028) |  |  | (367) |
Total deferred tax liabilities | (58,547) |  |  | (58,443) |
Net deferred tax asset | $ | 11,502 |  |  | $ | 23,210 |
The Company’s state net operating loss tax asset of approximately $1.4 million includes $1.0 million related to Pennsylvania and South Carolina. The $5.0 million change in the valuation allowance primarily relates to the expiration of South Carolina net operating loss carryforwards that may never be utilized. Of the $2.2 million valuation allowance, $0.7 million relates to Pennsylvania and South Carolina net operating loss carryforwards, $0.9 million relates to California enterprise zone credits and $0.5 million relates to foreign tax credit carryforwards, all of which may never be utilized, prior to their expiration. The state net operating loss carryforwards and income tax credits are available to offset future state taxable income through 2026. The federal foreign tax credits are available to offset future federal taxable income through 2031. It is more likely than not that we will be able to utilize all of our existing temporary differences and our remaining state tax net operating losses and state credit tax carryforwards, net of existing valuation allowance, prior to their expiration. The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits:
| December 29, 2021 |  | December 30, 2020
| (In thousands)
Balance, beginning of year | $ | 1,047 |  |  | $ | 1,047 |
Changes related to tax positions | — |  |  | — |
Balance, end of year | $ | 1,047 |  |  | $ | 1,047 |
There was no interest expense associated with unrecognized tax benefits for the years ended December 29, 2021 and December 30, 2020. We file income tax returns in the U.S. federal jurisdictions and various state jurisdictions. With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2017. We completed our federal audit by the Internal Revenue Service for tax year 2016 during 2019. We remain subject to examination for U.S. federal taxes for 2018, 2019 and 2020 and in the following major state jurisdictions: California (2017-2021), Florida (2018-2021) and Texas (2017-2021).

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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