Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.23.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign For the years ended December 31, 2022, January 1, 2022 and December 26, 2020, income (loss) from continuing operations before taxes consist of the following:
Year Ended
December 31, 2022 January 01, 2022 December 26, 2020
US operations $ 140,702  $ 54,066  $ 56,019 
Foreign operations 4,509  (3,784) 2,932 
Total $ 145,211  $ 50,282  $ 58,951 
Schedule of Components of Income Tax Expense (Benefit)
Income tax expense (benefit) attributable to income from continuing operations consists of (in thousands):

Current Deferred Total
Year ended December 31, 2022:
U.S. federal $ 19,419  $ 9,811  $ 29,230 
State and local 3,388  3,592  6,980 
Foreign jurisdiction 1,225  123  1,348 
Total $ 24,032  $ 13,526  $ 37,558 
Current Deferred Total
Year ended January 1, 2022:
U.S. federal $ 629  $ 4,376  $ 5,005 
State and local 1,529  10  1,539 
Foreign jurisdiction (526) 463  (63)
Total $ 1,632  $ 4,849  $ 6,481 
Current Deferred Total
Year ended December 26, 2020:
U.S. federal $ (2) $ 823  $ 821 
State and local 612  (473) 139 
Foreign jurisdiction 1,155  (1) 1,154 
Total $ 1,765  $ 349  $ 2,114 
Schedule of Effective Income Tax Rate Reconciliation
Income tax expense (benefit) attributable to income from continuing operations was approximately $37,558, $6,481 and $2,114 for the years ended December 31, 2022, January 1, 2022 and December 26, 2020, respectively, and differed from the amounts computed by applying the partnership’s U.S. federal income tax rate of zero for the year ended December 26, 2020 and for the partial period up to the Business Combination date of June 7, 2021, presented to pretax income from continuing operations as a result of the following (in thousands):
Year Ended
December 31, 2022 January 01, 2022 December 26, 2020
Income before taxes $ 145,211  $ 50,282  $ 58,951 
Computed “expected” tax expense 30,494  10,559  — 
Increase (reduction) in income taxes resulting from:
Statutory rate differential 401  (5,606) 1,281 
Permanent difference 30  1,776  697 
State income taxes, net of federal benefit 5,958  1,284  519 
Change in tax rates 1,156  (1,342) (421)
Change in estimate 848  175  (146)
Change in valuation allowance (256) (938) — 
Other, net (1,073) 573  184 
Total $ 37,558  $ 6,481  $ 2,114 
Schedule of Deferred Tax Assets and Liabilities
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2022 and January 1, 2022 are presented below (in thousands):
December 31, January 1,
2022 2022
Deferred tax assets
Allowance for doubtful accounts $ 103  $ 101 
Other accrued expenses 625  863 
Inventories 263  210 
Leases 566 
Tax credits carryforward 508  113 
Intangibles 48,138  61,465 
Net operating loss carryforward 20  1,095 
Stock compensation 810  — 
Interest expense carryforward 234  — 
Other 97  17 
Total gross deferred tax assets 51,364  63,867 
Less: valuation allowance —  (256)
Net deferred tax assets 51,364  63,611 
Deferred tax liabilities
Property and equipment (5,694) (4,360)
Prepaids (715) (816)
Other (281) (270)
Total gross deferred liabilities (6,690) (5,446)
Net deferred tax asset (liability) $ 44,674  $ 58,165