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Income Taxes | 12 Months Ended
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Dec. 29, 2015
Income Taxes |
Income Taxes | 13.Income Taxes The provision for income taxes consisted of the following (in thousands):
|  | Fiscal Year |
|  | 2015 |  | 2014 |  | 2013 |
Income before income taxes |  | $ | 159,352 |  | $ | 138,544 |  | $ | 156,450 |
Income tax provision/(benefit): |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |
Federal |  | $ | 32,765 |  | $ | 28,687 |  | $ | 28,754 |
State |  | 8,880 |  | 8,377 |  | 8,707 |
Total current |  | 41,645 |  | 37,064 |  | 37,461 |
Deferred: |  |  |  |  |  |  |
Federal |  | 2,659 |  | 480 |  | 5,342 |
State |  | (1,475 | ) | (276 | ) | (709 | )
Total deferred |  | 1,184 |  | 204 |  | 4,633 |
Total provision |  | $ | 42,829 |  | $ | 37,268 |  | $ | 42,094 |
The following reconciles the U.S. federal statutory rate to the effective tax rate:
|  | Fiscal Year |
|  | 2015 |  | 2014 |  | 2013 |
U.S. federal statutory rate |  | 35.0 | % | 35.0 | % | 35.0 | %
State and district income taxes, net of federal benefit |  | 3.0 |  | 3.8 |  | 3.3 |
FICA tip credit |  | (8.0 | ) | (8.4 | ) | (7.0 | )
Other credits and incentives |  | (1.0 | ) | (0.7 | ) | (0.9 | )
Manufacturing deduction |  | (2.8 | ) | (2.9 | ) | (2.4 | )
Deferred compensation |  | 0.3 |  | (0.4 | ) | (1.0 | )
Other |  | 0.4 |  | 0.5 |  | (0.1 | )
Effective tax rate |  | 26.9 | % | 26.9 | % | 26.9 | %
Following are the temporary differences that created our deferred tax assets and liabilities (in thousands):
|  | December 29, 2015 |  | December 30, 2014 |
Deferred tax assets: |  |  |  |  |
Employee benefits |  | $ | 28,856 |  | $ | 24,476 |
Insurance reserves |  | 19,399 |  | 18,012 |
Accrued rent |  | 21,504 |  | 22,291 |
Stock-based compensation |  | 16,100 |  | 15,350 |
Deferred income |  | 11,406 |  | 9,273 |
Tax credit carryforwards |  | 2,694 |  | 1,954 |
Other |  | 794 |  | 1,259 |
Subtotal |  | 100,753 |  | 92,615 |
Less: Valuation allowance |  | (618 | ) | (574 | )
Total |  | $ | 100,135 |  | $ | 92,041 |
Deferred tax liabilities: |  |  |  |  |
Property and equipment |  | $ | (160,764 | ) | $ | (153,362 | )
Inventory |  | (10,154 | ) | (9,749 | )
Prepaid expenses |  | (11,741 | ) | (10,363 | )
Total |  | $ | (182,659 | ) | $ | (173,474 | )
Net deferred tax liability |  | $ | (82,524 | ) | $ | (81,433 | )
At December 29, 2015 and December 30, 2014, we had $4.1 million and $3.0 million, respectively, of state tax credit carryforwards. These credits began to expire in 2013. Management assesses the available evidence to estimate if sufficient future taxable income will be generated to use these carryforwards. Based on this evaluation, we recorded a valuation allowance relating to hiring and investment tax credits in North Carolina and California to reflect the amount that more likely than not will not be realized. The valuation allowance amounted to $0.6 million at both December 29, 2015 and December 30, 2014. We believe it is more likely than not that all other state tax credit carryforwards will be realized. However, this assessment could change if estimates of future taxable income during the carryforward period are revised. The earliest tax year still subject to examination by a significant taxing jurisdiction is 2010. At December 29, 2015, we had $1.1 million of unrecognized tax benefits. If recognized, this amount would affect our effective income tax rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
|  | Fiscal Year |
|  | 2015 |  | 2014 |  | 2013 |
Balance at beginning of year |  | $ | 875 |  | $ | 802 |  | $ | 695 |
Additions related to current period tax positions |  | 192 |  | 233 |  | 254 |
Reductions related to settlements with taxing authorities and lapses of statutes of limitations |  | (0 | ) | (160 | ) | (147 | )
Balance at end of year |  | $ | 1,067 |  | $ | 875 |  | $ | 802 |
At both December 29, 2015 and December 30, 2014, we had approximately $0.1 million of accrued interest and penalties related to uncertain tax positions. None of the balance of unrecognized tax benefits at December 29, 2015 relates to tax positions for which it is reasonably possible that the total amount could decrease during the next twelve months based on the lapses of statutes of limitations.

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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=6907707&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=6907707&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=6907707&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=6907707&loc=d3e32537-109319 + Details
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