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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Schedule of Provision for Income Tax | The provision for income taxes is comprised of the following:
(in thousands) | 2023 | 2022 | 2021
Current taxes: |  |  |
Federal | $ | 329 |  | $ | 1,360 |  | $ | 4,925 |
State | 582 |  | 1,397 |  | 4,067 |
Foreign | 2,817 |  | 4,635 |  | 2,393 |
Total current taxes | 3,728 |  | 7,392 |  | 11,385 |
Deferred taxes: |  |  |
Federal | (8,109) |  | 3,434 |  | 617 |
State | (1,383) |  | 345 |  | 88 |
Foreign | (708) |  | (28) |  | 126 |
Total deferred taxes | (10,200) |  | 3,751 |  | 831 |
Provision for income taxes | $ | (6,472) |  | $ | 11,143 |  | $ | 12,216 |
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) | 2023 | % | 2022 | % | 2021 | %
Income tax expense (benefit) based on statutory rate | $ | (4,335) |  | 21.0 | % | $ | 15,417 |  | 21.0 | % | $ | 15,508 |  | 21.0 | %
Increase (decrease) resulting from: |  |  |  |  |  |
State income taxes, net of federal benefit | (1,384) |  | 6.7 |  | 3,008 |  | 4.1 |  | 3,548 |  | 4.8 |
Hiring tax credits, net | (4,997) |  | 24.2 |  | (7,911) |  | (10.8) |  | (7,582) |  | (10.3) |
CARES Act | — |  | — |  | — |  | — |  | (468) |  | (0.6) |
Uncertain tax positions | (206) |  | 1.0 |  | (1,336) |  | (1.8) |  | (391) |  | (0.5) |
Non-deductible goodwill impairment charge | 2,287 |  | (11.1) |  | — |  | — |  | — |  | — |
Non-deductible and non-taxable items | 1,178 |  | (5.7) |  | 1,377 |  | 1.9 |  | 589 |  | 0.8 |
Foreign taxes | 587 |  | (2.9) |  | 654 |  | 0.9 |  | 211 |  | 0.3 |
Other, net | 398 |  | (1.9) |  | (66) |  | (0.1) |  | 801 |  | 1.0 |
Total income tax expense (benefit) | $ | (6,472) |  | 31.3 | % | $ | 11,143 |  | 15.2 | % | $ | 12,216 |  | 16.5 | %
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) | 2023 | 2022 | 2021
U.S. | $ | (27,773) |  | $ | 56,964 |  | $ | 61,433 |
Foreign | 7,128 |  | 16,452 |  | 12,417 |
Income (loss) before tax expense (benefit) | $ | (20,645) |  | $ | 73,416 |  | $ | 73,850 |
Schedule of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities were as follows:
(in thousands) | December 31, 2023 | December 25, 2022
Deferred tax assets: |  |
Allowance for credit losses | $ | 590 |  | $ | 869 |
Accounts payable and other accrued expenses | 11,242 |  | 9,641 |
Net operating loss carryforwards | 7,535 |  | 1,243 |
Tax credit carryforwards | 16,030 |  | 9,801 |
Accrued wages and benefits | 7,311 |  | 8,877 |
Deferred compensation | 12,356 |  | 8,641 |
Lease liabilities | 17,378 |  | 16,025 |
Other | 371 |  | 368 |
Total | 72,813 |  | 55,465 |
Valuation allowance | (834) |  | (2,152) |
Total deferred tax asset, net of valuation allowance | 71,979 |  | 53,313 |
Deferred tax liabilities: |  |
Prepaid expenses, deposits and other current assets | (655) |  | (583) |
Lease right-of-use assets | (14,052) |  | (12,909) |
Depreciation and amortization | (21,958) |  | (14,100) |
Workers’ compensation | (192) |  | (347) |
Total deferred tax liabilities | (36,857) |  | (27,939) |
Deferred income taxes, net | $ | 35,122 |  | $ | 25,374 |
Summary of Tax Credit Carryforwards | The following table summarizes our credit carryforwards and NOLs along with their respective valuation allowance as of December 31, 2023:
(in thousands) | Carryover tax benefit | Valuation allowance | Expected benefit | Year expiration begins
Year-end tax attributes: |  |  |  |
Federal WOTCs | $ | 16,030 |  | $ | — |  | $ | 16,030 |  | 2039
State NOLs | 2,808 |  | (834) |  | 1,974 |  | Various
Federal NOLs | 4,727 |  | — |  | 4,727 |  | Indefinite
Foreign alternative minimum tax credits | 287 |  | — |  | 287 |  | 2033
Total | $ | 23,852 |  | $ | (834) |  | $ | 23,018 |  |
Income Tax Valuation Allowance | The activity related to the income tax valuation allowance was as follows:
(in thousands) | 2023 | 2022 | 2021
Beginning balance | $ | 2,152 |  | $ | 2,368 |  | $ | 3,072 |
Charged to expense | (58) |  | (216) |  | 26 |
Release of allowance | (1,260) |  | — |  | (730) |
Ending balance | $ | 834 |  | $ | 2,152 |  | $ | 2,368 |
Schedule of Unrecognized Tax Benefits | The following table summarizes the activity related to our unrecognized tax benefits:
(in thousands) | 2023 | 2022 | 2021
Beginning balance | $ | 830 |  | $ | 1,881 |  | $ | 1,930 |
Increases for tax positions related to the current year | 124 |  | 53 |  | 188 |
Decreases for tax positions related to prior years | — |  | — |  | (52) |
Reductions due to lapsed statute of limitations | (362) |  | (1,104) |  | (185) |
Ending balance | $ | 592 |  | $ | 830 |  | $ | 1,881 |

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