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Income Taxes | 12 Months Ended
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Dec. 25, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The provisions for income taxes were as follows:
| Fiscal Year Ended
| December 25, 2019 |  | December 26, 2018 |  | December 27, 2017
| (In thousands)
Current: |  |  |  |  |
Federal | $ | 12,421 |  |  | $ | (632 | ) |  | $ | 3,688 |
State and local | 5,156 |  |  | 1,833 |  |  | 2,071 |
Foreign | 1,142 |  |  | 1,042 |  |  | 961 |
Deferred: |  |  |  |  |
Federal | 9,944 |  |  | 5,432 |  |  | 10,075 |
State and local | 6,061 |  |  | 761 |  |  | 196 |
(Decrease) increase of valuation allowance | (2,935 | ) |  | 121 |  |  | 216 |
Total provision for income taxes | $ | 31,789 |  |  | $ | 8,557 |  |  | $ | 17,207 |
The reconciliation of income taxes at the U.S. federal statutory tax rate to our effective tax rate was as follows:
| December 25, 2019 |  | December 26, 2018 |  | December 27, 2017
Statutory provision rate | 21 | % |  | 21 | % |  | 35 | %
State and local taxes, net of federal income tax benefit | 8 |  |  | 6 |  |  | 5 |
Reduction in state valuation allowance | (2 | ) |  | — |  |  | — |
Wage addback on income tax credits earned | — |  |  | — |  |  | 2 |
General business credits generated | (2 | ) |  | (5 | ) |  | (5 | )
Foreign tax credits generated | (1 | ) |  | (2 | ) |  | (2 | )
Share-based compensation | (3 | ) |  | (3 | ) |  | (3 | )
Impact of tax reform | — |  |  | — |  |  | (3 | )
Other | — |  |  | (1 | ) |  | 1 |
Effective tax rate | 21 | % |  | 16 | % |  | 30 | %
On December 22, 2017, The Tax Cut and Jobs Act of 2017 (the “Tax Act”) was signed into law. The Tax Act reduces the U.S. statutory tax rate from 35% to 21% for years after 2017. Accordingly, we revalued our deferred taxes as of December 27, 2017 to reflect the reduced rate that will apply in future periods when these deferred taxes are realized. The net tax benefit recognized in 2017 related to the Tax Act was $1.6 million. For 2019, there was no significant difference between our effective tax rate and the statutory tax rate of 21%. The impact of state taxes on the statutory rate was partially offset by the generation of employment and foreign tax credits. In addition, the 2019 rate benefited $2.0 million related to share-based compensation and $2.0 million related to the completion of an Internal Revenue Service federal income audit of the 2016 tax year. The 2018 rate was primarily impacted by the Tax Act statutory tax rate reduction, state taxes and the generation of employment and foreign tax credits. In addition, the 2018 rate benefited $1.4 million from items related to share-based compensation. For the 2017 period, the difference in the overall effective rate from the U.S. statutory rate was primarily due to state taxes and the generation of employment and foreign tax credits. The 2017 rate also benefited $1.7 million from share-based compensation and $1.6 million from the revaluing of deferred tax assets and liabilities required under the Tax Act. 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 25, 2019 |  | December 26, 2018
| (In thousands)
Deferred tax assets: |  |  |
Self-insurance accruals | $ | 4,202 |  |  | $ | 4,647 |
Finance lease liabilities | 1,263 |  |  | 2,045 |
Operating lease liabilities | 43,497 |  |  | — |
Accrued exit cost | 48 |  |  | 445 |
Interest rate swaps | 11,491 |  |  | 1,157 |
Pension, other retirement and compensation plans | 10,549 |  |  | 10,568 |
Deferred income | 4,688 |  |  | 5,099 |
Other accruals | — |  |  | 633 |
Alternative minimum tax credit carryforwards | — |  |  | 928 |
General business and foreign tax credit carryforwards - state and federal | 2,945 |  |  | 11,061 |
Net operating loss carryforwards - state | 9,621 |  |  | 13,899 |
Total deferred tax assets before valuation allowance | 88,304 |  |  | 50,482 |
Less: valuation allowance | (10,264 | ) |  | (13,199 | )
Total deferred tax assets | 78,040 |  |  | 37,283 |
Deferred tax liabilities: |  |  |
Intangible assets | (14,858 | ) |  | (14,631 | )
Deferred finance costs | (211 | ) |  | (286 | )
Operating lease right-of-use assets | (40,751 | ) |  | — |
Fixed assets | (6,711 | ) |  | (5,033 | )
Other accruals | (791 | ) |  | — |
Total deferred tax liabilities | (63,322 | ) |  | (19,950 | )
Net deferred tax asset | $ | 14,718 |  |  | $ | 17,333 |
The Company’s state net operating loss tax asset of approximately $9.6 million includes $8.3 million related to South Carolina. The $2.9 million change in the valuation allowance primarily relates to the expiration of $3.6 million of South Carolina net operating loss carryforwards, partially offset by additional valuation allowances of $0.7 million on state enterprise zone credits and foreign tax credits that will never be utilized. Of the $10.3 million of the valuation allowance, $8.1 million related to South Carolina net operating loss carryforwards, $1.1 million related to state enterprise zone credits and $0.7 million related to foreign tax credit carryforwards, all of which will never be utilized. It is more likely than not that we will be able to utilize all of our existing temporary differences and most of our remaining state tax net operating losses and state credit tax carryforwards prior to their expiration. The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits:
| December 25, 2019 |  | December 26, 2018
| (In thousands)
Balance, beginning of year | $ | 2,940 |  |  | $ | 1,469 |
Increase related to current-year tax positions | — |  |  | 941 |
(Decrease) increase related to prior-year tax positions | (1,893 | ) |  | 530 |
Balance, end of year | $ | 1,047 |  |  | $ | 2,940 |
There was no interest expense associated with unrecognized tax benefits for the years ended December 25, 2019 and December 26, 2018, respectively. 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 2016. We completed our federal audit by the Internal Revenue Service for tax year 2016 during 2019. We remain subject to examination for U.S. federal taxes for 2017, 2018 and 2019 and in the following major state jurisdictions: California (2015-2019), Florida (2016-2019) and Texas (2015-2019).

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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