Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

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Income Taxes
9 Months Ended
Sep. 26, 2020
Income Tax Disclosure [Abstract]  
Income Taxes

Note 13: Income Taxes

Our overall effective tax rate was 7.5% for the 39 weeks ended September 26, 2020, and we recorded a tax benefit of $448 against a pre-provision loss of $5,983. Our overall effective tax rate was 25.4% for the 39 weeks ended September 28, 2019, and we had a tax benefit of $1,825 against a pre-provision loss of $7,182. The effective tax rates and related provisional tax amounts vary from the U.S. federal statutory rate due to state taxes, foreign taxes, share-based compensation, valuation allowance, and certain non-deductible expenses.

We regularly evaluate both positive and negative evidence related to retaining a valuation allowance against certain deferred tax assets. The realization of deferred tax assets is dependent upon sufficient future taxable income during the periods when deductible temporary differences and carryforwards are expected to be available to reduce taxable income. We have concluded based on the weight of evidence that a valuation allowance should be maintained against certain deferred tax assets that we do not expect to utilize in the near future. The Company continues to have a full valuation allowance against its Canadian operations. The Company recorded a full valuation allowance against its U.S. deferred tax assets except for $203, the portion of NOL that will be carried back due to prior years under the Coronavirus Aid, Relief, and Economic Security (CARES) Act which was signed into law on March 27, 2020.