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Income Taxes
 12 Months Ended
Dec. 29, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
 
The provisions for (benefits from) income taxes were as follows:
 Fiscal Year Ended
 December 29, 2021December 30, 2020December 25, 2019
 (In thousands)
Current:   
Federal$12,997 $(3,497)$12,421 
State and local3,105 (109)5,156 
Foreign862 667 1,142 
Deferred:   
Federal6,826 393 9,944 
State and local7,271 3,588 6,061 
Decrease of valuation allowance(5,031)(3,041)(2,935)
Total provision for (benefit from) income taxes$26,030 $(1,999)$31,789 
 
The reconciliation of income taxes at the U.S. federal statutory tax rate to our effective tax rate was as follows: 
 
 December 29, 2021December 30, 2020December 25, 2019
Statutory provision rate21 %21 %21 %
State, foreign and local taxes, net of federal income tax benefit5 (11)8 
Change in state valuation allowance(1)(1)(2)
General business credits generated(2)9 (2)
Foreign tax credits generated1 2 (1)
Carryback of net operating loss rate differential — 12 — 
Section 162(m) and share-based compensation1 (11)(3)
Insurance premiums— 5 — 
Other— 2 — 
Effective tax rate25 %28 %21 %

For 2021, 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 2021 rate was also impacted by an expense of $1.3 million from disallowed compensation deductions. 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, during 2021 the Company carried back 2020’s net operating loss to years 2015 and forward, to obtain $1.5 million in federal income tax refunds. See Note 15 for a discussion of other items related to the CARES Act.

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 following table represents the approximate tax effect of each significant type of temporary difference that resulted in deferred income tax assets or liabilities.  
 December 29, 2021December 30, 2020
 (In thousands)
Deferred tax assets:  
Self-insurance accruals$2,594 $3,315 
Finance lease liabilities1,281 1,369 
Operating lease liabilities35,545 39,555 
Accrued exit cost 19 25 
Interest rate swaps13,221 19,806 
Pension, other retirement and compensation plans11,259 10,638 
Deferred income4,675 5,337 
General business and foreign tax credit carryforwards - state and federal2,218 2,782 
Net operating loss carryforwards - state1,429 5,888 
Charitable contribution carryforwards - federal and state— 161 
Total deferred tax assets before valuation allowance72,241 88,876 
Less: valuation allowance(2,192)(7,223)
Total deferred tax assets70,049 81,653 
Deferred tax liabilities:  
Intangible assets(14,874)(14,579)
Deferred finance costs(313)(86)
Operating lease right-of-use assets(32,198)(35,732)
Fixed assets(10,134)(7,679)
Other accruals(1,028)(367)
Total deferred tax liabilities(58,547)(58,443)
Net deferred tax asset$11,502 $23,210 
 
The Company’s state net operating loss tax asset of approximately $1.4 million includes $1.0 million related to Pennsylvania and South Carolina.
The $5.0 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 $2.2 million valuation allowance, $0.7 million relates to Pennsylvania and South Carolina net operating loss carryforwards, $0.9 million relates to California enterprise zone credits and $0.5 million relates to foreign tax credit carryforwards, all of which may never be utilized, prior to their expiration. The state net operating loss carryforwards and income tax credits are available to offset future state taxable income through 2026. The federal foreign tax credits are available to offset future federal taxable income through 2031.

It is more likely than not that we will be able to utilize all of our existing temporary differences and 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 29, 2021December 30, 2020
 (In thousands)
Balance, beginning of year$1,047 $1,047 
Changes related to tax positions— — 
Balance, end of year$1,047 $1,047 

There was no interest expense associated with unrecognized tax benefits for the years ended December 29, 2021 and December 30, 2020.
 
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 2017. 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 2018, 2019 and 2020 and in the following major state jurisdictions: California (2017-2021), Florida (2018-2021) and Texas (2017-2021).