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Income Taxes
6 Months Ended
Jun. 27, 2017
Income Taxes  
Income Taxes

(4)     Income Taxes

 

A reconciliation of the statutory federal income tax rate to our effective tax rate for the 13 and 26 weeks ended June 27, 2017 and June 28, 2016 is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13 Weeks Ended

   

 

26 Weeks Ended

 

 

 

   

June 27, 2017

   

June 28, 2016

   

 

June 27, 2017

   

June 28, 2016

 

 

Tax at statutory federal rate

 

35.0

%  

35.0

%  

 

35.0

%  

35.0

%

 

State and local tax, net of federal benefit

 

3.4

 

3.5

 

 

3.4

 

3.5

 

 

FICA tip tax credit

 

(7.2)

 

(6.5)

 

 

(7.1)

 

(6.8)

 

 

Work opportunity tax credit

 

(0.8)

 

(0.9)

 

 

(0.8)

 

(0.8)

 

 

Stock compensation

 

(1.8)

 

 

 

(2.5)

 

 

 

Net income attributable to noncontrolling interests

 

(1.1)

 

(0.9)

 

 

(1.1)

 

(0.9)

 

 

Other

 

0.4

 

 

 

0.3

 

0.1

 

 

Total

 

27.9

%  

30.2

%  

 

27.2

%  

30.1

%

 

 

As a result of the adoption of ASU 2016-09, excess tax benefits and tax deficiencies from share-based compensation are recognized within the income tax provision in the period in which the restricted shares vest or options are exercised.  During the 13 weeks ended June 27, 2017, we recognized $1.0 million as an income tax benefit, which resulted in a 1.8% impact on the tax rate.  During the 26 weeks ended June 27, 2017, we recognized $2.6 million as an income tax benefit, which resulted in a 2.5% impact on the tax rate.  Prior to the adoption of ASU 2016-09, excess tax benefits and deficiencies were recognized in additional paid-in capital in the unaudited condensed consolidated balance sheets. 

 

During the first quarter of 2017, we adopted ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which required deferred tax assets and liabilities to be classified as noncurrent on our condensed consolidated balance sheet.  We adopted ASU 2015-17 on a prospective basis.