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Income Taxes | 12 Months Ended
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Dec. 31, 2014
Income Taxes [Abstract] |
Income Taxes | 3. Income Taxes The components of the provision for income taxes are as follows:
| Years ended December 31
| 2014 |  | 2013 |  | 2012
Current tax: |  |  |  |  |  |  |  |
U.S. Federal | $ | 248,219 |  | $ | 165,731 |  | $ | 166,386
U.S. State |  | 41,225 |  |  | 39,136 |  |  | 31,231
Foreign |  | 156 |  |  | 63 |  |  | 125
|  | 289,600 |  |  | 204,930 |  |  | 197,742
Deferred tax: |  |  |  |  |  |  |  |
U.S. Federal |  | (13,890) |  |  | 5,238 |  |  | (16,024)
U.S. State |  | (6,740) |  |  | (3,105) |  |  | (2,013)
Foreign |  | (3,075) |  |  | (1,330) |  |  | (1,578)
|  | (23,705) |  |  | 803 |  |  | (19,615)
Valuation allowance |  | 3,034 |  |  | 1,300 |  |  | 1,558
Provision for income taxes | $ | 268,929 |  | $ | 207,033 |  | $ | 179,685
Actual taxes paid for each tax period were less than the current tax expense due to the excess tax benefit on stock-based compensation of $21,667, $38,379, and $73,210 during the years ended December 31, 201 4, 201 3, and 201 2, respectively. The effective tax rate differs from the statutory tax rates as follows:
| Years ended December 31
| 2014 |  | 2013 |  | 2012
Statutory U.S. federal income tax rate | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State income tax, net of related federal income tax benefit | 3.7 |  |  | 4.2 |  |  | 4.1 |
Other | (1.1) |  |  | (0.5) |  |  | 0.2 |
Effective income tax rates | 37.6 | % |  | 38.7 | % |  | 39.3 | %
The 2014 tax rate decreased due to a decrease in the state tax rate and filing the 2013 tax returns, which included a change in the estimate of usable employer credits. In January 2013, the United States Congress authorized, and the President signed into law, certain federal tax credits that were reflected in the Company’s U.S. tax return for 2012; however, since this law was enacted in 2013, the financial statement benefit of such credits were reflected in 2013. The lack of availability of such credits caused the 2012 effective tax rate to be approximately 0.7% higher than it would have been had the credits been approved in 2012. Recognizing the 2012 credits during 2013 benefited the 2013 rate by 0.6%. Deferred income tax liabilities are taxes the Company expects to pay in future periods. Similarly, deferred income tax assets are recorded for expected reductions in taxes payable in future periods. Deferred income taxes arise because of the differences in the book and tax bases of certain assets and liabilities. Deferred income tax liabilities and assets consist of the following:
| December 31
| 2014 |  | 2013
Long-term deferred income tax liability: |  |  |  |  |
Leasehold improvements, property and equipment | $ | 175,808 |  | $ | 156,746
Goodwill and other assets |  | 1,519 |  |  | 1,346
Other |  | 2,689 |  |  | 1,591
Total long-term deferred income tax liability |  | 180,016 |  |  | 159,683
Long-term deferred income tax asset: |  |  |  |  |
Deferred rent |  | 52,147 |  |  | 47,127
Gift card liability |  | 1,451 |  |  | 876
Capitalized transaction costs |  | 503 |  |  | 506
Stock-based compensation and other employee benefits |  | 79,810 |  |  | 53,622
Foreign net operating loss carry-forwards |  | 8,618 |  |  | 5,598
State credits |  | 4,281 |  |  | 1,300
Other |  | 145 |  |  | -
Valuation allowance |  | (7,468) |  |  | (4,780)
Total long-term deferred income tax asset |  | 139,487 |  |  | 104,249
Net long-term deferred income tax liability |  | 40,529 |  |  | 55,434
Current deferred income tax liability: |  |  |  |  |
Prepaid assets and other |  | 3,402 |  |  | 2,970
Total current deferred income tax liability |  | 3,402 |  |  | 2,970
Current deferred income tax asset: |  |  |  |  |
Allowances, reserves and other |  | 14,511 |  |  | 11,973
Other employee benefits |  | 7,903 |  |  | 4,267
Valuation allowance |  | (44) |  |  | (58)
Total current deferred income tax asset |  | 22,370 |  |  | 16,182
Net current deferred income tax asset |  | 18,968 |  |  | 13,212
Total deferred income tax liability | $ | 21,561 |  | $ | 42,222
The Company recorded a gross increase in unrecognized tax benefits of $1,342 as the result of tax positions taken during the year ended December 31, 2014. The Company had no unrecognized tax benefits as of December 31, 2013 and 2012. The Company is open to federal and state tax audits until the applicable statutes of limitations expire. Tax audits by their very nature are often complex and can require several years to complete. The Company is no longer subject to U.S. federal tax examinations by tax authorities for tax years before 2011. For the majority of states where the Company has a significant presence, it is no longer subject to tax examinations by tax authorities for tax years before 2011. Some of the Company’s foreign net operating losses begin expiring in 2015. Deferred U.S. income taxes have not been recorded for temporary differences related to investments in certain foreign subsidiaries. These temporary differences consisted primarily of undistributed earnings considered permanently invested in operations outside the U.S. Determination of the deferred income tax liability on these unremitted earnings is not practicable because such liability, if any, is dependent on circumstances existing if and when remittance occurs.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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