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Income Taxes
 12 Months Ended
Dec. 27, 2011
Income Taxes  
Income Taxes

(7) Income Taxes

        Components of our income tax (benefit) and provision for the years ended December 27, 2011, December 28, 2010 and December 29, 2009 are as follows:

 
   Year Ended
December 27, 2011 		  Year Ended
December 28, 2010 		  Year Ended
December 29, 2009 		 

Current:

                    

Federal

   $ 20,546   $ 20,561   $ 18,680  

State

     6,149     5,323     4,937  
               

Total current

     26,695     25,884     23,617  

Deferred:

                    

Federal

     289     1,788     231  

State

     (219 )   11     (357 )
               

Total deferred

     70     1,799     (126 )
               

Income tax provision

   $ 26,765   $ 27,683   $ 23,491  
               

        A reconciliation of the statutory federal income tax rate to our effective tax rate for December 27, 2011, December 28, 2010 and December 29, 2009 is as follows:

 
   December 27,
2011 		  December 28,
2010 		  December 29,
2009 		 

Tax at statutory federal rate

     35.0 %   35.0 %   35.0 %

State and local tax, net of federal benefit

     3.7     3.7     3.7  

FICA tip tax credit

     (6.0 )   (5.4 )   (6.2 )

HIRE retention credit

     (2.1 )   —     —  

Work opportunity tax credit

     (1.2 )   (2.1 )   (1.4 )

Incentive stock options

     (0.2 )   (0.1 )   0.4  

Nondeductible officer compensation

     0.5     0.9     1.1  

Other

     (0.2 )   0.2     0.5  
               

Total

     29.5 %   32.2 %   33.1 %
               

        Components of deferred tax assets (liabilities) are as follows:

 
   December 27,
2011 		  December 28,
2010 		 

Deferred tax assets:

              

Insurance reserves

   $ 3,252   $ 2,641  

Other reserves

     473     343  

Deferred rent

     5,831     4,757  

Share-based compensation

     5,460     3,632  

Unredeemed gift cards

     2,812     2,627  

Other assets and liabilities

     4,791     4,537  
           

Total deferred tax asset

     22,619     18,537  
           

Deferred tax liabilities:

              

Depreciation and amortization

     (27,422 )   (24,373 )

Other assets and liabilities

     (545 )   (240 )
           

Total deferred tax liability

     (27,967 )   (24,613 )
           

Net deferred tax liability

   $ (5,348 ) $ (6,076 )
           

Current deferred tax asset

   $ 3,367   $ 2,368  

Noncurrent deferred tax liability

     (8,715 )   (8,444 )
           

Net deferred tax liability

   $ (5,348 ) $ (6,076 )
           

        We have not provided any valuation allowance as we believe the realization of our deferred tax assets is more likely than not.

        A reconciliation of the beginning and ending liability for unrecognized tax benefits is as follows:

 
   Uncertain tax
positions impacting
tax rate 		  Uncertain tax
positions not
impacting tax rate 		  Total uncertain
tax positions 		 

Balance at December 29, 2009

   $ 206   $ 198   $ 404  

Additions to tax positions related to prior years

     —     —     —  

Reductions due to statute expiration

     (82 )   (198 )   (280 )
               

Balance at December 28, 2010

     124     —     124  

Additions to tax positions related to prior years

     91     —     91  

Reductions due to statute expiration

     (91 )   —     (91 )
               

Balance at December 27, 2011

   $ 124   $ —   $ 124  
               

        We, consistent with our existing policy, recognize both interest and penalties on unrecognized tax benefits as part of income tax expense. As of December 27, 2011, the total amount of accrued penalties and interest related to uncertain tax provisions was immaterial. As of December 28, 2010, the total amount of accrued penalties and interest related to uncertain tax provisions was $0.1 million. Included in the balance of total unrecognized tax benefits at December 27, 2011 are no potential benefits, which, if recognized, would affect the effective tax rate.

        All entities for which unrecognized tax benefits exist as of December 27, 2011 possess a December tax year-end. As a result, as of December 27, 2011, the tax years ended December 30, 2008, December 29, 2009 and December 28, 2010 remain subject to examination by all tax jurisdictions. As of December 27, 2011, no audits were in process by a tax jurisdiction that, if completed during the next twelve months, would be expected to result in a material change to our unrecognized tax benefits. Additionally, as of December 27, 2011, no event occurred that is likely to result in a significant increase or decrease in the unrecognized tax benefits through December 26, 2012.