6. INCOME TAXES

Income tax provision (benefit) consisted of:


	Years Ended
	December 27,		December 28,		December 29,
(in thousands)	2015		2014		2013
Current:
Federal	$	13,317	$	233,247	$	16,100
State		(2,027)		30,216		5,108
Deferred:
Federal		(17,642)		(29,182)		(7,262)
State		(5,445)		(3,051)		(2,287)
Income tax provision (benefit)	$	(11,797)	$	231,230	$	11,659

The effective tax rate expense (benefit) and the statutory federal income tax rate are reconciled as follows:


	Years Ended
	December 27,		December 28,		December 29,
(in thousands)	2015		2014		2013
Statutory rate	(35.0)	%	35.0	%	35.0	%
State taxes, net of federal benefit	(2.1)		3.0		12.3
Changes in estimates	0.1		—		—
Changes in unrecognized tax benefits	0.3		—		(6.0)
Settlements	—		(0.1)		(1.5)
Other	—		0.1		3.1
Goodwill impairment	32.5		—		—
Stock compensation	0.4		0.1		(1.4)
Effective tax rate	(3.8)	%	38.1	%	41.5	%

The components of deferred tax assets and liabilities consisted of the following:


	December 27,		December 28,
(in thousands)	2015		2014
Deferred tax assets:
Compensation benefits	$	233,101	$	248,585
State taxes		3,586		6,061
State loss carryovers		2,877		2,266
Other		3,765		4,508
Total deferred tax assets		243,329		261,420
Valuation allowance		(2,877)		(2,265)
Net deferred tax assets		240,452		259,155
Deferred tax liabilities:
Depreciation and amortization		160,752		195,616
Investments in unconsolidated subsidiaries		50,434		52,711
Debt discount		8,301		9,618
Deferred gain on debt		19,653		26,318
Total deferred tax liabilities		239,140		284,263
Net deferred tax (assets) liabilities	$	(1,312)	$	25,108

The valuation allowance relates to state net operating loss and capital loss carryovers, and increased by $0.6 million in 2015 and decreased by $1.5 million in 2014.

As of December 27, 2015, we have net operating loss carryforwards in various states totaling approximately $196.5 million. The net operating losses carryforwards expire in various years between 2024 and 2035 if not used.

As of December 27, 2015, we had approximately $18.1 million of long‑term liabilities relating to uncertain tax positions consisting of approximately $15.6 million in gross unrecognized tax benefits (primarily state tax positions before the offsetting effect of federal income tax) and $2.5 million in gross accrued interest and penalties. If recognized, approximately $8.1 million of the net unrecognized tax benefits would impact the effective tax rate, with the remainder impacting other accounts, primarily deferred taxes. It is reasonably possible that a reduction of up to $1.1 million of unrecognized tax benefits and related interest may occur within the next 12 months as a result of the expiration of statutes of limitations.

We record interest on unrecognized tax benefits as a component of interest expense, while penalties are recorded as part of income tax expense. Related to the unrecognized tax benefits noted below, we recorded interest expense (benefit), of ($0.3) million, $0.1 million and ($0.7) million for 2015, 2014 and 2013, respectively. We also recorded penalty expense (benefit) of $0.1 million and ($0.1) million during 2015 and 2014, respectively. During 2013, our recorded penalty expense was immaterial. Accrued interest and penalties at December 27, 2015, December 28, 2014, and December 29, 2013, were approximately $2.5 million, $2.7 million and $2.7 million, respectively.

A reconciliation of the beginning and ending amount of unrecognized tax benefits consists of the following:


	Years Ended
	December 27,		December 28,		December 29,
(in thousands)	2015		2014		2013
Balance at beginning of fiscal year	$	13,046	$	12,889	$	8,649
Increases based on tax positions in prior year		4,433		1		7,631
Decreases based on tax positions in prior year		—		(363)		(935)
Increases based on tax positions in current year		1,435		1,357		1,386
Settlements		—		(49)		(259)
Lapse of statute of limitations		(3,293)		(789)		(3,583)
Balance at end of fiscal year	$	15,621	$	13,046	$	12,889

As of December 27, 2015, the following tax years and related taxing jurisdictions were open:


	Open	Years Under
Taxing Jurisdiction	Tax Year	Exam
Federal	2012-2015	2013
California	2011-2015	—
Other States	2006-2015	2011-2014