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Income Taxes
 12 Months Ended
Dec. 30, 2020
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
 
The provisions for (benefits from) income taxes were as follows:
 Fiscal Year Ended
 December 30, 2020December 25, 2019December 26, 2018
 (In thousands)
Current:   
Federal$(3,497)$12,421 $(632)
State and local(109)5,156 1,833 
Foreign667 1,142 1,042 
Deferred:   
Federal393 9,944 5,432 
State and local3,588 6,061 761 
(Decrease) increase of valuation allowance(3,041)(2,935)121 
Total provision for (benefit from) income taxes$(1,999)$31,789 $8,557 
 
The reconciliation of income taxes at the U.S. federal statutory tax rate to our effective tax rate was as follows: 
 
 December 30, 2020December 25, 2019December 26, 2018
Statutory provision rate21 %21 %21 %
State, foreign and local taxes, net of federal income tax benefit(11)8 6 
Change in state valuation allowance(1)(2)— 
General business credits generated9 (2)(5)
Foreign tax credits generated2 (1)(2)
Carryback of net operating loss rate differential 12 — — 
Section 162(m) and share-based compensation(11)(3)(3)
Insurance premiums5 — — 
Other2 — (1)
Effective tax rate28 %21 %16 %

For 2020, the difference in the overall effective rate from the U.S. statutory rate was primarily due to state and foreign taxes and the generation of employment credits. The 2020 rate was also impacted by a $0.9 million benefit from the statutory rate differential due to a net operating loss carryback to a prior year and an expense of $1.0 million from disallowed compensation deductions.

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 statutory tax rate reduction under the Tax Cuts and Jobs Act of 2017. For 2018, 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. In addition, the 2018 rate benefited $1.4 million from items related to share-based compensation.

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law as a response to the economic impacts of the COVID-19 pandemic. As a result of the CARES Act, the Company is allowed to carryback a current year net operating loss to years 2015 and forward, to obtain approximately $2.1 million in federal income tax refunds. See Note 16 for a discussion of other items related to the CARES 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 30, 2020December 25, 2019
 (In thousands)
Deferred tax assets:  
Self-insurance accruals$3,315 $4,202 
Finance lease liabilities1,369 1,263 
Operating lease liabilities39,555 43,497 
Accrued exit cost 25 48 
Interest rate swaps19,806 11,491 
Pension, other retirement and compensation plans10,638 10,549 
Deferred income5,337 4,688 
General business and foreign tax credit carryforwards - state and federal2,782 2,945 
Net operating loss carryforwards - state5,888 9,621 
Charitable contribution carryforwards - federal and state161 — 
Total deferred tax assets before valuation allowance88,876 88,304 
Less: valuation allowance(7,223)(10,264)
Total deferred tax assets81,653 78,040 
Deferred tax liabilities:  
Intangible assets(14,579)(14,858)
Deferred finance costs(86)(211)
Operating lease right-of-use assets(35,732)(40,751)
Fixed assets(7,679)(6,711)
Other accruals(367)(791)
Total deferred tax liabilities(58,443)(63,322)
Net deferred tax asset$23,210 $14,718 
 
The Company’s state net operating loss tax asset of approximately $5.9 million includes $4.6 million related to South Carolina.
The $3.0 million change in the valuation allowance primarily relates to the expiration of South Carolina net operating loss carryforwards that may never be utilized.
Of the $7.2 million valuation allowance, $4.4 million related to South Carolina net operating loss carryforwards, $1.5 million relates to California enterprise zone credits and $0.3 million relates to foreign tax credit carryforwards, all of which may 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, net of existing valuation allowance, prior to their expiration.
The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits:
 December 30, 2020December 25, 2019
 (In thousands)
Balance, beginning of year$1,047 $2,940 
Decrease related to prior-year tax positions— (1,893)
Balance, end of year$1,047 $1,047 

There was no interest expense associated with unrecognized tax benefits for the years ended December 30, 2020 and December 25, 2019.
 
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 (2016-2020), Florida (2017-2020) and Texas (2016-2020).