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Income Taxes | 12 Months Ended
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Dec. 27, 2014
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes: The provision for income taxes consists of the following (in thousands):
| 2014 |  | 2013 |  | 2012
Current tax expense: |  |  |  |  |
Federal | $ | 211,383 |  |  | $ | 175,039 |  |  | $ | 165,519 |
State | 25,133 |  |  | 19,129 |  |  | 20,342 |
Total current | 236,516 |  |  | 194,168 |  |  | 185,861 |
Deferred tax (benefit) expense: |  |  |  |  |  |  |  |
Federal | (14,493 | ) |  | (5,341 | ) |  | (20,857 | )
State | (5,321 | ) |  | (2,968 | ) |  | (5,724 | )
Total deferred | (19,814 | ) |  | (8,309 | ) |  | (26,581 | )
Total provision | $ | 216,702 |  |  | $ | 185,859 |  |  | $ | 159,280 |
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the deferred tax assets and liabilities are as follows (in thousands):
| 2014 |  | 2013
Current tax assets: |  |  |
Inventory valuation | $ | 16,602 |  |  | $ | 12,133 |
Accrued employee benefit costs | 18,770 |  |  | 23,184 |
Accrued sales tax audit reserve | 2,053 |  |  | 1,905 |
Other | 11,585 |  |  | 10,388 |
| 49,010 |  |  | 47,610 |
Current tax liabilities: |  |  |  |  |
Inventory basis difference | (4,657 | ) |  | (14,470 | )
Prepaid expenses | (2,109 | ) |  | (2,100 | )
Other | (1,282 | ) |  | (1,202 | )
| (8,048 | ) |  | (17,772 | )
Net current tax asset | $ | 40,962 |  |  | $ | 29,838 |
Non-current tax assets: |  |  |  |  |
Rent expenses in excess of cash payments required | 27,166 |  |  | 25,229 |
Deferred compensation | 17,956 |  |  | 16,394 |
Workers compensation insurance | 6,989 |  |  | 5,734 |
General liability insurance | 2,741 |  |  | 557 |
Lease exit obligations | 2,437 |  |  | 2,354 |
Income tax credits | 2,205 |  |  | — |
Accrued sales tax audit reserve | 2,085 |  |  | 1,547 |
Other | 3,745 |  |  | 3,452 |
| 65,324 |  |  | 55,267 |
Non-current tax liabilities: |  |  |  |  |
Depreciation | (52,626 | ) |  | (51,547 | )
Other | (3,916 | ) |  | (3,628 | )
| (56,542 | ) |  | (55,175 | )
Net non-current tax asset | $ | 8,782 |  |  | $ | 92 |
Net deferred tax asset | $ | 49,744 |  |  | $ | 29,930 |
The Company has evaluated the need for a valuation allowance for all or a portion of the deferred tax assets. The Company believes that all of the deferred tax assets will more likely than not be realized through future earnings. The Company had state tax credit carryforwards of $5.0 million and $2.3 million as of December 27, 2014 and December 28, 2013, respectively, with varying dates of expiration between 2015 and 2024. The Company provided no valuation allowance as of December 27, 2014 and December 28, 2013 for state tax credit carryforwards, as the Company believes it is more likely than not that all of these credits will be utilized before their expiration dates. A reconciliation of the provision for income taxes to the amounts computed at the federal statutory rate is as follows (in thousands):
| 2014 |  | 2013 |  | 2012
Tax provision at statutory rate | $ | 205,656 |  |  | $ | 179,933 |  |  | $ | 152,508 |
Tax effect of: |  |  |  |  |  |  |
State income taxes, net of federal tax benefits | 12,878 |  |  | 10,505 |  |  | 9,502 |
Permanent differences | (1,832 | ) |  | (4,579 | ) |  | (2,730 | )
| $ | 216,702 |  |  | $ | 185,859 |  |  | $ | 159,280 |
The Company and its affiliates file income tax returns in the U.S. and various state and local jurisdictions. With few exceptions, the Company is no longer subject to federal, state and local income tax examinations by tax authorities for years before 2010. In 2012, the IRS commenced an audit of the 2010 federal tax return. In 2014, the 2010 IRS audit was finalized with minimal adjustments. Various states have completed an examination of our income tax returns for 2010 through 2012 with minimal adjustments. The total amount of unrecognized tax benefits that, if recognized, would decrease the effective tax rate, is $2.3 million at December 27, 2014. In addition, the Company recognizes current interest and penalties accrued related to these uncertain tax positions as interest expense, and the amount is not material to the Consolidated Statements of Income. The Company estimates the overall decrease in unrecognized tax benefits in the next twelve months will range between $0.1 million and $0.5 million. A reconciliation of the beginning and ending gross amount of unrecognized tax benefits (exclusive of interest and penalties) is as follows (in thousands):
| 2014 |  | 2013 |  | 2012
Balance at beginning of year | $ | 2,482 |  |  | $ | 5,898 |  |  | $ | 5,774 |
Additions based on tax positions related to the current year | 1,104 |  |  | 741 |  |  | 1,358 |
Additions for tax positions of prior years | 280 |  |  | — |  |  | — |
Reductions for tax positions of prior years | (366 | ) |  | (3,937 | ) |  | (1,234 | )
Reductions due to audit results | — |  |  | (220 | ) |  | — |
Balance at end of year | $ | 3,500 |  |  | $ | 2,482 |  |  | $ | 5,898 |

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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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