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Income Taxes
 12 Months Ended
Dec. 27, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
 
The provisions for (benefits from) income taxes were as follows:
 Fiscal Year Ended
 December 27, 2023December 28, 2022December 29, 2021
 (In thousands)
Current:   
Federal$4,649 $6,128 $12,997 
State and local2,409 2,160 3,105 
Foreign1,433 1,152 862 
Deferred:   
Federal(1,876)11,043 6,826 
State and local173 3,689 7,271 
 Increase (decrease) of valuation allowance205 546 (5,031)
Total provision for income taxes$6,993 $24,718 $26,030 
 
The reconciliation of income taxes at the U.S. federal statutory tax rate to our effective tax rate was as follows: 
 
 December 27, 2023December 28, 2022December 29, 2021
Statutory provision rate21 %21 %21 %
State and local taxes, net of federal income tax benefit6 5 5 
Foreign taxes5 1 — 
Change in state valuation allowance1 — (1)
General business credits generated(5)(1)(2)
Foreign tax credits generated(5)(1)1 
Section 162(m) and share-based compensation7 — 1 
Insurance premiums(2)— — 
Other(2)— — 
Effective tax rate26 %25 %25 %

For 2023, the difference in the overall effective rate from the U.S. statutory rate was primarily due to state and foreign taxes, partially offset by the generation of employment and foreign tax credits. The 2023 rate was also impacted by $1.9 million of disallowed compensation deductions.

For 2022, the difference in the overall effective rate from the U.S. statutory rate was primarily due to state and foreign taxes, partially offset by the generation of employment and foreign tax credits.
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 $1.3 million of 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 16 for a discussion of other items related to the CARES Act.


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 27, 2023December 28, 2022
 (In thousands)
Deferred tax assets:  
Self-insurance accruals$2,536 $2,094 
Finance lease liabilities1,119 1,230 
Operating lease liabilities30,445 33,028 
Accrued exit costs 5 21 
Pension, other retirement and compensation plans7,127 11,239 
Deferred income4,617 4,396 
Other accruals478 918 
General business and foreign tax credit carryforwards - state and federal3,472 2,387 
Net operating loss carryforwards - state848 1,157 
Total deferred tax assets before valuation allowance50,647 56,470 
Less: valuation allowance(2,943)(2,738)
Total deferred tax assets47,704 53,732 
Deferred tax liabilities:  
Intangible assets(15,044)(15,706)
Contract assets(1,460)(1,360)
Deferred finance costs(181)(250)
Operating lease right-of-use assets(27,307)(29,822)
Fixed assets(8,074)(9,291)
Interest rate swaps(2,220)(4,722)
Total deferred tax liabilities(54,286)(61,151)
Net deferred tax liabilities$(6,582)$(7,419)
 
The Company’s state net operating loss tax asset of $0.8 million includes $0.6 million related to Pennsylvania and South Carolina.
Of the $2.9 million valuation allowance, $0.4 million relates to Pennsylvania and South Carolina net operating loss carryforwards, $1.0 million relates to California enterprise zone credits and $1.5 million relates to foreign tax credit carryforwards, all of which may never be utilized, prior to their expiration.
It is more likely than not that we will be able to utilize all of our existing temporary differences and most of 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 27, 2023December 28, 2022
 (In thousands)
Balance, beginning of year$869 $1,047 
Decreases related to prior year tax positions(424)(178)
Balance, end of year$445 $869 

There was no interest expense associated with unrecognized tax benefits for the years ended December 27, 2023 and December 28, 2022.
 
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 2020. We remain subject to examination for U.S. federal taxes from 2020 onward, and in the following major state jurisdictions: California (2018 onward), Florida (2020 onward) and Texas (2019 onward).