Income Taxes

The components of the provision (benefit) for income taxes are as follows:



	Fiscal Year Ended
	2014			2013			2012
	(Dollars in thousands)
Current:
Federal	$	27,161		$	22,173		$	11,263
Foreign	416			406			568
State	5,087			2,702			3,478
	32,664			25,281			15,309
Deferred:
Federal	(5,706		)	(2,866		)	9,392
Foreign	—			6			49
State	(617		)	590			433
	(6,323		)	(2,270		)	9,874
Total Tax Provision	$	26,341		$	23,011		$	25,183

The Company is subject to federal income taxes in the United States, as well as income taxes of multiple state jurisdictions and in Canada. There were immaterial amounts of pre-tax income related to Canadian operations for fiscal 2014, 2013 and 2012. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or Canadian income tax examinations for fiscal years ended 2010 and prior. The Company believes its provision for income taxes is adequate; however, any assessment would affect the Company’s results of operations and cash flows. Income tax receivable of $2.2 million and $2.5 million is included in other current assets as of July 26, 2014 and July 27, 2013, respectively. Income taxes payable of $5.2 million and $2.3 million is included within other accrued liabilities as of July 26, 2014 and July 27, 2013, respectively.

The deferred tax provision represents the change in the deferred tax assets and the liabilities representing the tax consequences of changes in the amount of temporary differences and changes in tax rates during the year. The significant components of deferred tax assets and liabilities are comprised of the following:



	July 26, 2014			July 27, 2013
	(Dollars in thousands)
Deferred tax assets:
Insurance and other reserves	$	26,964		$	23,089
Allowance for doubtful accounts and reserves	742			427
Net operating loss carryforwards	994			1,183
Stock-based compensation	5,402			4,231
Other	1,062			1,800
Total deferred tax assets	35,164			30,730
Valuation allowance	(878		)	(1,788		)
Deferred tax assets, net of valuation allowance	$	34,286		$	28,942
Deferred tax liabilities:
Property and equipment	$	32,164		$	36,491
Goodwill and intangibles	26,998			23,498
Other	553			712
Deferred tax liabilities	$	59,715		$	60,701

Net deferred tax liabilities	$	25,429		$	31,759

The above valuation allowance reduces the deferred tax asset balances to the amount that the Company has determined is more likely than not to be realized. The fiscal 2014 reduction in valuation allowance is the result of a $0.8 million tax benefit which expired associated with an impaired investment. As a result, the net operating loss carryforwards, and associated valuation allowance, were removed with no impact on the Company's effective tax rate. As of July 26, 2014, the Company had immaterial state net operating loss carryforwards, which generally begin to expire in fiscal 2022. The valuation allowance primarily relates to these net operating loss carryforwards.

The difference between the total tax provision and the amount computed by applying the statutory federal income tax rates to pre-tax income is as follows:



	Fiscal Year Ended
	2014			2013			2012
	(Dollars in thousands)
Statutory rate applied to pre-tax income	$	23,212		$	20,370		$	22,600
State taxes, net of federal tax benefit	2,863			2,271			2,766
Non-deductible and non-taxable items	491			366			208
Change in accruals for uncertain tax positions	53			153			93
Valuation allowance of deferred tax asset	—			—			(313		)
Other items, net	(278		)	(149		)	(171		)
Total tax provision	$	26,341		$	23,011		$	25,183

As of July 26, 2014 and July 27, 2013, the Company had total unrecognized tax benefits of $2.4 million and $2.3 million, respectively, which would reduce the Company’s effective tax rate during future periods if it is subsequently determined that those liabilities were not required. The Company had approximately $0.8 million for the payment of interest and penalties accrued at both July 26, 2014 and July 27, 2013. Interest expense related to unrecognized tax benefits was immaterial for each of fiscal 2014, 2013 and 2012.

A summary of unrecognized tax benefits is as follows:



	Fiscal Year Ended
	2014			2013			2012
	(Dollars in thousands)
Balance at beginning of year	$	2,348		$	2,194		$	2,054
Additions based on tax positions related to the fiscal year	137			155			154
Additions based on tax positions related to prior years	10			19			6
Reductions related to the expiration of statutes of limitation	(94		)	(20		)	(20		)
Balance at end of year	$	2,401		$	2,348		$	2,194