Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2022 |
Income Tax Disclosure [Abstract] |
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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:
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Year Ended |
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December 31, 2022 |
January 01, 2022 |
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December 26, 2020 |
US operations |
$ |
140,702 |
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$ |
54,066 |
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|
$ |
56,019 |
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Foreign operations |
4,509 |
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(3,784) |
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|
2,932 |
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Total |
$ |
145,211
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$ |
50,282
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$ |
58,951
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Schedule of Components of Income Tax Expense (Benefit) |
Income tax expense (benefit) attributable to income from continuing operations consists of (in thousands):
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Current |
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Deferred |
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Total |
Year ended December 31, 2022: |
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U.S. federal |
$ |
19,419 |
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$ |
9,811 |
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$ |
29,230 |
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State and local |
3,388 |
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3,592 |
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6,980 |
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Foreign jurisdiction |
1,225 |
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123 |
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1,348 |
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Total |
$ |
24,032
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$ |
13,526
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$ |
37,558
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Current |
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Deferred |
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Total |
Year ended January 1, 2022: |
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U.S. federal |
$ |
629 |
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$ |
4,376 |
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$ |
5,005 |
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State and local |
1,529 |
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10 |
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1,539 |
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Foreign jurisdiction |
(526) |
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|
463 |
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(63) |
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Total |
$ |
1,632
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$ |
4,849
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$ |
6,481
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Current |
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Deferred |
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Total |
Year ended December 26, 2020: |
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U.S. federal |
$ |
(2) |
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$ |
823 |
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$ |
821 |
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State and local |
612 |
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(473) |
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|
139 |
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Foreign jurisdiction |
1,155 |
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(1) |
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1,154 |
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Total |
$ |
1,765
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$ |
349
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$ |
2,114
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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):
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Year Ended |
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December 31, 2022 |
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January 01, 2022 |
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December 26, 2020 |
Income before taxes |
$ |
145,211 |
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$ |
50,282 |
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$ |
58,951 |
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Computed “expected” tax expense |
30,494 |
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|
10,559 |
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— |
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Increase (reduction) in income taxes resulting from: |
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Statutory rate differential |
401 |
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(5,606) |
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1,281 |
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Permanent difference |
30 |
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1,776 |
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|
697 |
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State income taxes, net of federal benefit |
5,958 |
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|
1,284 |
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|
519 |
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Change in tax rates |
1,156 |
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(1,342) |
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(421) |
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Change in estimate |
848 |
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|
175 |
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(146) |
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Change in valuation allowance |
(256) |
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(938) |
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— |
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Other, net |
(1,073) |
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573 |
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|
184 |
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Total |
$ |
37,558
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$ |
6,481
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$ |
2,114
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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):
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December 31, |
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January 1, |
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2022 |
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2022 |
Deferred tax assets |
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Allowance for doubtful accounts |
$ |
103 |
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$ |
101 |
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Other accrued expenses |
625 |
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|
863 |
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Inventories |
263 |
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|
210 |
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Leases |
566 |
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3 |
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Tax credits carryforward |
508 |
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113 |
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Intangibles |
48,138 |
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61,465 |
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Net operating loss carryforward |
20 |
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1,095 |
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Stock compensation |
810 |
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— |
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Interest expense carryforward |
234 |
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— |
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Other |
97 |
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|
17 |
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Total gross deferred tax assets |
51,364 |
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|
63,867 |
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Less: valuation allowance |
— |
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(256) |
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Net deferred tax assets |
51,364 |
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63,611 |
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Deferred tax liabilities |
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Property and equipment |
(5,694) |
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(4,360) |
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Prepaids |
(715) |
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(816) |
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Other |
(281) |
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(270) |
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Total gross deferred liabilities |
(6,690) |
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(5,446) |
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Net deferred tax asset (liability) |
$ |
44,674
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$ |
58,165
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