Texas Roadhouse, Inc. and SubsidiariesNotes to Consolidated Financial Statements(Tabular amounts in thousands, except share and per share data)F-21
(9) Income Taxes
Components of our income tax provision for the years ended December 31, 2019, December 25, 2018 and
December 26, 2017 are as follows:
Fiscal Year Ended
December 31, 2019 December 25, 2018 December 26, 2017
Current:
Federal ......................... $ 15,643 $ 2,934 $ 43,108
State ............................ 10,050 8,794 10,233
Foreign ......................... 369 210 309
Total current .................... 26,062 11,938 53,650
Deferred:
Federal ......................... 4,396 11,909 (4,830)
State ............................ 1,939 410 (239)
Total deferred ................... 6,335 12,319 (5,069)
Income tax provision ................ $ 32,397 $ 24,257 $ 48,581Our pre-tax income is substantially derived from domestic restaurants.A reconciliation of the statutory federal income tax rate to our effective tax rate for December 31, 2019,
December 25, 2018 and December 26, 2017 is as follows:
Fiscal Year Ended
December 31, 2019 December 25, 2018 December 26, 2017
Tax at statutory federal rate ....... 21.0 % 21.0 % 35.0 %
State and local tax, net of federal
benefit ........................ 3.8 3.6 3.3
FICA tip tax credit .............. (9.4) (9.6) (7.0)
Work opportunity tax credit....... (1.5) (1.5) (0.9)
Stock compensation ............. (0.1) (1.4) (1.8)
Net income attributable to
noncontrolling interests .......... (0.6) (0.8) (1.1)
Officers compensation ........... 1.2 1.7 0.1
Tax reform ..................... — — (1.7)
Other ......................... 0.7 (0.1) 0.2
Total .......................... 15.1 % 12.9 % 26.1 %Our effective tax rate increased to 15.1% in 2019 compared to 12.9% in 2018 primarily due to lower excess tax
benefits related to our share-based compensation program partially offset by lower non-deductible officer compensation.
In addition, the prior year tax rate benefitted from an adjustment related to tax reform that we recorded in conjunction
with the filing of our 2017 tax return.
Our effective tax rate decreased to 12.9% in 2018 compared to 26.1% in 2017 primarily due to new tax legislation
enacted in late 2017. As a result of the new tax legislation, significant tax changes were enacted including a reduction of
the federal corporate tax rate from 35.0% to 21.0% and changes in the federal taxes paid on foreign sourced earnings.