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Income Taxes | 12 Months Ended
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Dec. 31, 2014
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The provisions for income taxes were as follows:
| Fiscal Year Ended
| December 31, 2014 |  | December 25, 2013 |  | December 26, 2012
| (In thousands)
Current: |  |  |  |  |
Federal | $ | 377 |  |  | $ | 428 |  |  | $ | 875 |
State and local | 1,818 |  |  | 1,548 |  |  | 382 |
Foreign | 896 |  |  | 872 |  |  | 766 |
Deferred: |  |  |  |  |
Federal | 13,269 |  |  | 9,285 |  |  | 9,683 |
State and local | (54 | ) |  | (185 | ) |  | 1,740 |
Release of valuation allowance | (270 | ) |  | (420 | ) |  | (661 | )
Total provision for income taxes | $ | 16,036 |  |  | $ | 11,528 |  |  | $ | 12,785 |
The reconciliation of income taxes at the U.S. federal statutory tax rate to our effective tax rate was as follows:
| December 31, 2014 |  | December 25, 2013 |  | December 26, 2012
Statutory provision rate | 35 | % |  | 35 | % |  | 35 | %
State and local taxes, net of federal income tax benefit | 3 |  |  | 5 |  |  | 4 |
Foreign taxes, net of federal income tax benefit | 1 |  |  | 1 |  |  | 1 |
Wage addback on income tax credits earned | 2 |  |  | 3 |  |  | 2 |
General business credits generated | (6 | ) |  | (10 | ) |  | (7 | )
Other | (1 | ) |  | (1 | ) |  | 3 |
Release of valuation allowance | (1 | ) |  | (1 | ) |  | (2 | )
Effective tax rate | 33 | % |  | 32 | % |  | 36 | %
During 2014, we recorded a benefit of $0.3 million related to changes in the valuation allowance. For the 2014 period, the difference in the overall effective rate from the U.S. statutory rate was primarily due to state and foreign taxes, the generation of employment tax credits and two discrete tax items. State job tax credits of $0.7 million were claimed during 2014 for current year’s hiring activity. State job tax credits of $0.5 million were also claimed during the 2014 period resulting from the prior year's hiring activity. In addition, share-based compensation adjustments resulted in an out-of-period tax benefit of $0.5 million. We do not believe the out-of-period adjustment was material to any prior or current year financial statements or on earnings trends. During 2013, we recorded a benefit of $0.4 million related to changes in the valuation allowance. For the 2013 period, the difference in the overall effective rate from the U.S. statutory rate was due to state and foreign taxes, employment tax credits and discrete tax items. The passage of the American Tax Payer Relief Act of 2012 resulted in deferred tax benefits of $0.3 million related to work opportunity credits generated in 2012, which were allowed retroactively. In addition, state job tax credits of $0.8 million were claimed during the 2013 period resulting from the prior year's hiring activity. A valuation allowance of $0.2 million was recorded against certain state jobs tax credits during the 2013 period related to changes in California law enacted during the period. During 2012, we recorded a benefit of $0.7 million related to changes in the valuation allowance. For the 2012 period, the difference in the overall effective rate from the U.S. statutory rate was due to state and foreign taxes and discrete tax items, including a $1.7 million out-of-period adjustment related to the reversal of a portion of the income tax benefit recorded in fourth quarter of 2011. This out-of-period adjustment was not material to any prior or current year financial statements or on earnings trends. In addition, a $1.6 million tax benefit was recorded in 2012 relating to additional state credits generated during 2012 from prior years' activity. The following table represents the approximate tax effect of each significant type of temporary difference that resulted in deferred income tax assets or liabilities.
| December 31, 2014 |  | December 25, 2013
| (In thousands)
Deferred tax assets: |  |  |
Self-insurance accruals | $ | 9,063 |  |  | $ | 9,457 |
Capitalized leases | 2,103 |  |  | 2,365 |
Accrued exit cost | 1,031 |  |  | 1,485 |
Fixed assets | 5,426 |  |  | 10,430 |
Pension, other retirement and compensation plans | 16,527 |  |  | 11,237 |
Other accruals | 2,526 |  |  | 885 |
Alternative minimum tax credit carryforwards | 7,811 |  |  | 10,344 |
General business credit carryforwards - state and federal | 22,089 |  |  | 29,490 |
Net operating loss carryforwards - state | 12,368 |  |  | 12,976 |
Total deferred tax assets before valuation allowance | 78,944 |  |  | 88,669 |
Less: valuation allowance | (12,481 | ) |  | (12,751 | )
Total deferred tax assets | 66,463 |  |  | 75,918 |
Deferred tax liabilities: |  |  |
Intangible assets | (22,474 | ) |  | (22,950 | )
Deferred finance costs | (177 | ) |  | (230 | )
Interest rate swap | (250 | ) |  | (1,184 | )
Total deferred tax liabilities | (22,901 | ) |  | (24,364 | )
Net deferred tax asset | $ | 43,562 |  |  | $ | 51,554 |
Net deferred tax assets are classified as follows: |  |  |
Current | $ | 24,310 |  |  | $ | 23,264 |
Noncurrent | 19,252 |  |  | 28,290 |
Total | $ | 43,562 |  |  | $ | 51,554 |
At December 31, 2014, we had available, on a consolidated basis, federal general business credit carryforwards of approximately $24.7 million, most of which expire between 2027 and 2034, and alternative minimum tax ("AMT") credit carryforwards of approximately $7.8 million, which never expire. We also had available AMT net operating loss ("AMT NOL") carryforwards of approximately $28.0 million, which expire in 2024 and 2030. Approximately $5.3 million of general business credit carryforwards are unrecognized in the schedule above and on our Consolidated Balance Sheets as a result of the application of ASC Paragraph 718-740-25-10, which delays their recognition in paid-in capital until they reduce taxes payable. It is more likely than not that we will be able to utilize our credit carryforwards prior to expiration. In addition, it is more likely than not we will be able to utilize all of our existing temporary differences and a portion of our state tax net operating losses and state tax credit carryforwards prior to their expiration. Of the valuation allowance remaining, approximately $2.0 million, if released, will be credited directly to paid-in capital. The South Carolina net operating loss carryforwards represent 78% of the total state net operating loss carryforwards. Prior to 2005, Denny’s had ownership changes within the meaning of Section 382 of the Internal Revenue Code. In general, Section 382 places annual limitations on the use of certain tax attributes, such as AMT NOL and tax credit carryforwards, in existence at the ownership change date. It is our position that any pre-2005 AMT NOL and tax credits can be utilized as of December 31, 2014. The occurrence of an additional ownership change could limit our ability to utilize our current income tax credits generated after 2004. There were no unrecognized tax benefits associated with uncertain income tax positions as of December 31, 2014 and December 25, 2013. We do not expect the unrecognized tax benefits to increase over the next twelve months. As of and for the years ended December 31, 2014 and December 25, 2013, there were no related interest and penalties recognized in our Consolidated Balance Sheets and Consolidated Statements of Income. We file income tax returns in the U.S. federal jurisdictions and various state jurisdictions. With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2010. We remain subject to examination for U.S. federal taxes for 2011-2014 and in the following major state jurisdictions: California (2010-2014), Florida (2011-2014) and Texas (2012-2014).

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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 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: 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 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 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 Reference 6: 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 + Details
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