Income Taxes: (Tables)
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12 Months Ended |
Dec. 31, 2020 |
Dec. 26, 2020 |
Schedule of components of provision for loss before income taxes |
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For the period
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from March 13,
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2018 (inception)
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Year ended December 31,
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through
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2020
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2019
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December 31, 2018
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Current income taxes
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$
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—
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$
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—
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$
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—
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Deferred income taxes
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32,400
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—
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—
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Total expense (benefit)
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$
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32,400
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$
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—
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$
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—
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Change in valuation allowance
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(32,400)
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—
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—
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Income tax expense (benefit)
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$
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—
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$
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—
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$
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—
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Schedule of significant components of the our deferred income tax assets and liabilities |
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Year ended December 31,
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2020
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2019
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Deferred tax asset:
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Net operating loss carryforward
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$
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32,400
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$
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—
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Total deferred tax asset
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$
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32,400
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$
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—
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Valuation allowance
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(32,400)
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—
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Deferred tax asset, net of current allowance
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$
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—
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$
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—
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Schedule of reconciliation of the federal statutory tax rate to our effective tax rate applicable to continuing operations |
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For the period from
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March 13, 2018
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Year ended December 31,
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(inception) through
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2020
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2019
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December 31, 2018
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Statutory rate
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21.0
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%
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21.0
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%
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21.0
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%
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Other
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0.0
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%
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0.0
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%
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0.0
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%
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Valuation allowance on deferred tax asset
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-21.0
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%
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0.0
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%
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0.0
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%
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Total
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0.0
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%
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21.0
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%
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21.0
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%
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Hman Group holdings Inc and subsidiaries |
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Schedule of components of provision for loss before income taxes |
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Income tax expense (benefit), deferred taxes and effective tax rates for the years ended December 29, 2018 and December 28, 2019 have been restated due to the correction of errors in the accounting for income taxes related to the valuation allowance against deferred tax assets, which impacted our net deferred tax liabilities. See Note 1 - Basis of Presentation for additional details.
Loss before income taxes are comprised of the following components for the periods indicated:
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Year Ended
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Year Ended
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Year Ended
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December 26,
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December 28,
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December 29,
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2020
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2019
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2018
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United States based operations
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$
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(30,083)
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$
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(101,197)
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$
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(53,254)
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Non-United States based operations
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(3,855)
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(7,559)
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(14,317)
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Loss before income taxes
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$
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(33,938)
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$
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(108,756)
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$
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(67,571)
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Schedule of components of income tax (benefit) provision |
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Below are the components of the Company’s income tax (benefit) provision for the periods indicated:
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Year Ended
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Year Ended
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Year Ended
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December 28,
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December 29,
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December 26,
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2019
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2018
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2020
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As Restated
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As Restated
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Current:
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Federal & State
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$
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629
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$
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1,235
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$
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263
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Foreign
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(49)
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611
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67
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Total current
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580
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1,846
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330
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Deferred:
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Federal & State
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(7,625)
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(23,333)
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(11,679)
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Foreign
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(1,356)
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(2,625)
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(4,741)
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Total deferred
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(8,981)
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(25,958)
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(16,420)
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Valuation allowance
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(1,038)
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835
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7,200
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Income tax expense/(benefit)
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$
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(9,439)
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$
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(23,277)
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$
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(8,890)
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Schedule of significant components of the our deferred income tax assets and liabilities |
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The table below reflects the significant components of the Company’s net deferred tax assets and liabilities at December 26, 2020 and December 28, 2019:
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December 28,
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December 26,
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2019
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2020
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As Restated
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Non-current
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Non-current
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Deferred Tax Asset:
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Inventory
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$
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11,423
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$
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10,043
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Bad debt reserve
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1,497
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868
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Casualty loss reserve
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279
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498
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Accrued bonus / deferred compensation
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7,411
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5,174
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Deferred rent
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54
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80
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Derivative security value
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817
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845
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Deferred social security (CARES Act)
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1,798
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—
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Interest limitation
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21,011
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30,335
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Lease liabilities
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21,241
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22,134
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Deferred revenue – shipping terms
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315
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315
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Original issue discount amortization
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3,078
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3,372
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Transaction costs
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3,061
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2,302
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Federal / foreign net operating loss
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36,217
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38,478
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State net operating loss
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3,806
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5,426
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Tax credit carryforwards
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2,150
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2,636
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All other
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610
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401
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Gross deferred tax assets
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114,768
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122,907
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Valuation allowance for deferred tax assets
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(1,471)
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(2,586)
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Net deferred tax assets
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$
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113,297
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$
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120,321
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Deferred Tax Liability:
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Intangible asset amortization
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$
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216,354
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$
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227,007
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Property and equipment
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29,901
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34,218
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Lease assets
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20,598
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22,119
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All other items
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487
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618
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Deferred tax liabilities
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$
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267,340
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$
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283,962
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Net deferred tax liability
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$
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154,043
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$
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163,641
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Schedule of reconciliation of the federal statutory tax rate to our effective tax rate applicable to continuing operations |
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Below is a reconciliation of statutory income tax rates to the effective income tax rates for the periods indicated:
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Year Ended
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Year Ended
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Year Ended
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December 28,
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December 29,
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December 26,
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2019
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2018
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2020
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As Restated
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As Restated
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Statutory federal income tax rate
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21.0
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%
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21.0
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%
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21.0
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%
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Non-U.S. taxes and the impact of non-U.S. losses for which a current tax benefit is not available
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0.6
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%
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0.4
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%
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0.9
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%
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State and local income taxes, net of U.S. federal income tax benefit
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5.7
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%
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3.0
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%
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1.4
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%
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Change in valuation allowance
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1.6
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%
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(1.2)
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%
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(7.5)
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%
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Adjustment for change in tax law
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0.5
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%
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—
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%
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(0.9)
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%
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Permanent differences:
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Acquisition and related transaction costs
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—
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%
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—
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%
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(2.7)
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%
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Meals and entertainment expense
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(0.4)
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%
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(0.2)
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%
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(0.3)
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%
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Reconciliation of tax provision to return
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0.6
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%
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(0.5)
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%
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—
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%
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Reconciliation of other adjustments
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(1.6)
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%
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(1.0)
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%
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1.2
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%
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Effective income tax rate
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27.8
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%
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21.4
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%
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13.2
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%
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Summary of reconciliation of liability for unrecognized tax benefits |
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The following is a summary of the changes for the periods indicated below:
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Year Ended
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Year Ended
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Year Ended
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December 26,
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December 28,
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December 29,
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2020
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2019
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2018
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Unrecognized tax benefits – beginning balance
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$
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1,101
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$
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1,101
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$
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1,101
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Gross increases – tax positions in current period
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—
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—
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—
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Gross increases – tax positions in prior period
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—
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—
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—
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Gross decreases – tax positions in prior period
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—
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—
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—
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Unrecognized tax benefits – ending balance
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$
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1,101
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$
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1,101
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$
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1,101
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Amount of unrecognized tax benefit that, if recognized would affect the Company’s effective tax rate
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$
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1,101
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$
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1,101
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$
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1,101
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