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INCOME TAXES | 12 Months Ended
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Jun. 29, 2016
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES The provision for income taxes consists of the following (in thousands):
| 2016 |  | 2015 |  | 2014
Current income tax expense: |  |  |  |  |
Federal | $ | 48,049 |  |  | $ | 59,726 |  |  | $ | 66,170 |
State | 12,203 |  |  | 11,862 |  |  | 15,219 |
Foreign | 3,497 |  |  | 3,319 |  |  | 3,550 |
Total current income tax expense | 63,749 |  |  | 74,907 |  |  | 84,939 |
Deferred income tax (benefit) expense: |  |  |  |  |
Federal | 21,023 |  |  | 10,754 |  |  | (18,715 | )
State | 885 |  |  | 2,018 |  |  | (4,087 | )
Foreign | (15 | ) |  | (96 | ) |  | 112 |
Total deferred income tax (benefit) expense | 21,893 |  |  | 12,676 |  |  | (22,690 | )
| $ | 85,642 |  |  | $ | 87,583 |  |  | $ | 62,249 |
A reconciliation between the reported provision for income taxes and the amount computed by applying the statutory Federal income tax rate of 35% to income before provision for income taxes is as follows (in thousands):
| 2016 |  | 2015 |  | 2014
Income tax expense at statutory rate | $ | 100,236 |  |  | $ | 99,497 |  |  | $ | 75,701 |
FICA tax credit | (20,497 | ) |  | (18,633 | ) |  | (18,116 | )
State income taxes, net of Federal benefit | 11,102 |  |  | 8,646 |  |  | 7,636 |
Other | (5,199 | ) |  | (1,927 | ) |  | (2,972 | )
| $ | 85,642 |  |  | $ | 87,583 |  |  | $ | 62,249 |
The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and liabilities as of June 29, 2016 and June 24, 2015 are as follows (in thousands):
| 2016 |  | 2015
Deferred income tax assets: |  |  |
Leasing transactions | $ | 32,132 |  |  | $ | 30,928 |
Stock-based compensation | 12,817 |  |  | 13,105 |
Restructure charges and impairments | 2,439 |  |  | 2,303 |
Insurance reserves | 18,015 |  |  | 18,567 |
Employee benefit plans | 501 |  |  | 470 |
Gift cards | 19,948 |  |  | 18,499 |
State net operating losses | 16,120 |  |  | 16,521 |
Federal credit carryover | 14,722 |  |  | 0 |
State credit carryover | 4,981 |  |  | 4,538 |
Other, net | 6,987 |  |  | 9,804 |
Less: Valuation allowance | (18,407 | ) |  | (21,059 | )
Total deferred income tax assets | 110,255 |  |  | 93,676 |
Deferred income tax liabilities: |  |  |
Prepaid expenses | 17,360 |  |  | 16,803 |
Goodwill and other amortization | 29,884 |  |  | 27,713 |
Depreciation and capitalized interest on property and equipment | 31,626 |  |  | 12,060 |
Other, net | 4,382 |  |  | 3,963 |
Total deferred income tax liabilities | 83,252 |  |  | 60,539 |
Net deferred income tax asset | $ | 27,003 |  |  | $ | 33,137 |
The valuation allowance decreased by $2.7 million in fiscal 2016 to recognize certain state net operating loss benefits management believes are more-likely-than-not to be realized. No provision was made for income taxes which may become payable upon distribution of our foreign subsidiaries’ earnings. The cumulative earnings were approximately $5.2 million as of June 29, 2016. It is not practicable to estimate the amount of tax that might be payable because our intent is to permanently reinvest these earnings or to repatriate earnings when it is tax effective to do so. A reconciliation of unrecognized tax benefits for the fiscal years ended June 29, 2016 and June 24, 2015 are as follows (in thousands):
| 2016 |  | 2015
Balance at beginning of year | $ | 6,088 |  |  | $ | 7,375 |
Additions based on tax positions related to the current year | 1,761 |  |  | 760 |
Additions based on tax positions related to prior years | 1,062 |  |  | 18 |
Settlements with tax authorities | (2,290 | ) |  | (371 | )
Expiration of statute of limitations | (810 | ) |  | (1,694 | )
Balance at end of year | $ | 5,811 |  |  | $ | 6,088 |
The total amount of unrecognized tax benefits that would favorably affect the effective tax rate if resolved in our favor due to the effect of deferred tax benefits was $3.9 million and $4.1 million as of June 29, 2016 and June 24, 2015, respectively. During the next twelve months, we anticipate that it is reasonably possible that the amount of unrecognized tax benefits could be reduced by approximately $0.8 million ($0.5 million of which would affect the effective tax rate due to the effect of deferred tax benefits) either because our tax position will be sustained upon audit or as a result of the expiration of the statute of limitations for specific jurisdictions. We recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense. During fiscal 2016, we recognized approximately $1.3 million in interest expense. During fiscal 2015 and 2014, we recognized expenses of approximately $0.2 million and $0.3 million, respectively, in interest due to the reduction of accrued interest from statute expirations and settlements, net of accrued interest for remaining positions. As of June 29, 2016, we had $0.8 million ($0.6 million net of a $0.2 million Federal deferred tax benefit) of interest and penalties accrued, compared to $2.2 million ($1.5 million net of a $0.7 million Federal deferred tax benefit) at June 24, 2015.

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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 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 2: 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=65882285&loc=d3e32559-109319 Reference 3: 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=65882285&loc=d3e32718-109319 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=65882285&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=65882285&loc=d3e32537-109319 + Details
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