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INCOME TAXES (Tables)

12 Months Ended

Dec. 25, 2022

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Tax

The provision for income taxes is comprised of the following:

(in thousands)			2022			2021			2020
Current taxes:
Federal			$	1,360		$	4,925		$	(7,318)
State			1,397			4,067			(382)
Foreign			4,635			2,393			3,045
Total current taxes			7,392			11,385			(4,655)
Deferred taxes:
Federal			3,434			617			(22,416)
State			345			88			(3,369)
Foreign			(28)			126			(981)
Total deferred taxes			3,751			831			(26,766)
Provision for income taxes			$	11,143		$	12,216		$	(31,421)

Schedule of Effective Income Tax Rate Reconciliation

The items accounting for the difference between income taxes computed at the statutory federal income tax rate and income taxes reported on the Consolidated Statements of Operations and Comprehensive Income (Loss) are as follows:

(in thousands, except percentages)			2022			%			2021			%			2020			%
Income tax expense (benefit) based on statutory rate			$	15,417		21.0		%	$	15,508		21.0		%	$	(36,385)		21.0		%
Increase (decrease) resulting from:
State income taxes, net of federal benefit			3,008			4.1			3,548			4.8			(6,631)			3.8
Hiring tax credits, net			(7,911)			(10.8)			(7,582)			(10.3)			(7,719)			4.5
CARES Act			—			—			(468)			(0.6)			(2,939)			1.7
Uncertain tax positions			(1,336)			(1.8)			(391)			(0.5)			(51)			—
Non-deductible goodwill impairment charge			—			—			—			—			21,849			(12.6)
Non-deductible and non-taxable items			1,377			1.9			589			0.8			124			(0.1)
Foreign taxes			654			0.9			211			0.3			(977)			0.5
Other, net			(66)			(0.1)			801			1.0			1,308			(0.7)
Total tax expense (benefit)			$	11,143		15.2		%	$	12,216		16.5		%	$	(31,421)		18.1		%

Schedule of Components of Income Before Income Tax

U.S. and foreign components of income (loss) before tax expense (benefit) was as follows:

(in thousands)			2022			2021			2020
U.S.			$	56,964		$	61,433		$	(148,492)
Foreign			16,452			12,417			(24,770)
Income (loss) before tax expense (benefit)			$	73,416		$	73,850		$	(173,262)

Schedule of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities were as follows:

(in thousands)			December 25, 2022			December 26, 2021
Deferred tax assets:
Allowance for credit losses			$	869		$	1,750
Workers’ compensation			—			1,653
Accounts payable and other accrued expenses			9,641			8,970
Net operating loss carryforwards			1,243			2,002
Tax credit carryforwards			9,801			11,920
Accrued wages and benefits			8,877			9,227
Deferred compensation			8,641			9,083
Lease liabilities			16,025			16,762
Other			368			137
Total			55,465			61,504
Valuation allowance			(2,152)			(2,368)
Total deferred tax asset, net of valuation allowance			53,313			59,136
Deferred tax liabilities:
Prepaid expenses, deposits and other current assets			(583)			(515)
Lease right-of-use assets			(12,909)			(13,638)
Depreciation and amortization			(14,100)			(15,653)
Workers’ compensation			(347)			—
Total deferred tax liabilities			(27,939)			(29,806)
Deferred income taxes, net			$	25,374		$	29,330

Summary of Tax Credit Carryforwards

The following table summarizes our credit carryforwards and NOLs along with their respective valuation allowance as of December 25, 2022:

(in thousands)			Carryover tax benefit			Valuation allowance			Expected benefit			Year expiration begins
Year-end tax attributes:
Federal WOTCs			$	8,542		$	—		$	8,542		2039
State NOLs			1,243			(893)			350			Various
California Enterprise Zone credits			1,259			(1,259)			—			2023
Foreign alternative minimum tax credits			311			—			311			2032
Total			$	11,355		$	(2,152)		$	9,203

Income Tax Valuation Allowance

The activity related to the income tax valuation allowance was as follows:

(in thousands)			2022			2021			2020
Beginning balance			$	2,368		$	3,072		$	1,780
Charged to expense			(216)			26			1,292
Release of allowance			—			(730)			—
Ending balance			$	2,152		$	2,368		$	3,072

Schedule of Unrecognized Tax Benefits

The following table summarizes the activity related to our unrecognized tax benefits:

(in thousands)			2022			2021			2020
Beginning balance			$	1,881		$	1,930		$	2,078
Increases for tax positions related to the current year			53			188			218
Decreases for tax positions related to prior years			—			(52)			—
Reductions due to lapsed statute of limitations			(1,104)			(185)			(366)
Ending balance			$	830		$	1,881		$	1,930

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