(8) Income Taxes

Components of our income tax (benefit) and provision for the years ended December 31, 2013, December 25, 2012 and December 27, 2011 are as follows:

	Fiscal Year Ended

	December 31, 2013			December 25, 2012			December 27, 2011
Current:
Federal	$	28,648		$	29,286		$	20,546
State		6,439			7,618			6,149


Total current		35,087			36,904			26,695
Deferred:
Federal		(919	)		(1,511	)		289
State		(28	)		(655	)		(219	)


Total deferred		(947	)		(2,166	)		70


Income tax provision	$	34,140		$	34,738		$	26,765

A reconciliation of the statutory federal income tax rate to our effective tax rate for December 31, 2013, December 25, 2012 and December 27, 2011 is as follows:



Tax at statutory federal rate	35.0	%	35.0	%	35.0	%
State and local tax, net of federal benefit	3.5		3.7		3.7
FICA tip tax credit	(6.5	)	(6.2	)	(6.0	)
HIRE retention credit	—		—		(2.1	)
Work opportunity tax credit	(1.7	)	(0.9	)	(1.2	)
Incentive stock options	(0.7	)	(0.2	)	(0.2	)
Nondeductible officer compensation	0.4		1.2		0.5
Net income attributable to noncontrolling interests	(1.1	)	—		—
Other	—		0.2		(0.2	)


Total	28.9	%	32.8	%	29.5	%

In prior years, we deducted net income attributable to noncontrolling interests from income before taxes as shown in our consolidated statements of income and comprehensive income to determine the effective tax rates shown in the table above. The impact of including the net income attributable to noncontrolling interests would have reduced our effective tax rate to 32.0% and 28.7% for the years ended December 25, 2012 and December 27, 2011, respectively.

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

	December 31, 2013			December 25, 2012

Deferred tax assets:
Insurance reserves	$	3,876		$	3,142
Other reserves		515			450
Deferred rent		8,563			7,185
Share-based compensation		5,246			5,231
Deferred revenue—gift cards		3,860			3,135
Deferred compensation		4,200			3,507
Other assets and liabilities		3,311			2,456


Total deferred tax asset		29,571			25,106


Deferred tax liabilities:
Property and equipment		(27,585	)		(24,449	)
Goodwill and intangibles		(3,304	)		(2,943	)
Other assets and liabilities		(1,603	)		(980	)


Total deferred tax liability		(32,492	)		(28,372	)


Net deferred tax liability	$	(2,921	)	$	(3,266	)




Current deferred tax asset	$	2,853		$	2,836
Noncurrent deferred tax liability		(5,774	)		(6,102	)


Net deferred tax liability	$	(2,921	)	$	(3,266	)

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 27, 2011	$	124		$	—	$	124
Additions to tax positions related to prior years		145			—		145
Reductions due to statute expiration		(87	)		—		(87	)


Balance at December 25, 2012		182			—		182
Additions to tax positions related to current year		102			—		102
Reductions due to exam settlement		(112	)		—		(112	)


Balance at December 31, 2013	$	172		$	—	$	172

We recognize both interest and penalties on unrecognized tax benefits as part of income tax expense. As of December 31, 2013 and December 25, 2012, the total amount of accrued penalties and interest related to uncertain tax provisions was immaterial.

All entities for which unrecognized tax benefits exist as of December 31, 2013 possess a December tax year-end. As a result, as of December 31, 2013, the tax years ended December 28, 2010, December 27, 2011 and December 25, 2012 remain subject to examination by all tax jurisdictions. As of December 31, 2013, 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 31, 2013, no event occurred that is likely to result in a significant increase or decrease in the unrecognized tax benefits through December 30, 2014.