15.	Income Taxes

Significant components of the Company's net deferred tax liability consisted of the following at:

	August 3, 2012		July 29, 2011
Deferred tax assets:
Financial accruals without economic performance	$	57,881	$	56,954
Other		13,282		15,068
Deferred tax assets	$	71,163	$	72,022

Deferred tax liabilities
Excess tax depreciation over book	$	91,149	$	90,361
Other		27,992		28,033
Deferred tax liabilities		119,141		118,394
Net deferred tax liability	$	47,978	$	46,372

The Company provided no valuation allowance against deferred tax assets recorded as of August 3, 2012 and July 29, 2011, as the "more-likely-than-not" valuation method determined all deferred assets to be fully realizable in future taxable periods.

The components of the provision for income taxes for each of the three years were as follows:

	2012		2011			2010
Current:
Federal	$	34,074	$	17,231		$	29,114
State		7,928		5,577			(88	)
Deferred:
Federal		886		9,019			336
State		319		(1,344	)		1,089
Total income tax provision	$	43,207	$	30,483		$	30,451

A reconciliation of the provision for income taxes and the amount computed by multiplying the income before the provision for income taxes by the U.S. federal statutory rate of 35% was as follows:

	2012			2011			2010
Provision computed at federal statutory income tax rate	$	51,201		$	40,492		$	40,498
State and local income taxes, net of federal benefit		6,424			3,050			495
Employer tax credits for FICA taxes paid on employee tip income		(9,114	)		(8,351	)		(8,062	)
Other employer tax credits		(4,938	)		(5,098	)		(3,769	)
Other-net		(366	)		390			1,289
Total income tax provision	$	43,207		$	30,483		$	30,451

As of August 3, 2012 and July 29, 2011, the Company's liability for uncertain tax positions was $24,703 ($16,607, net of related federal tax benefits of $8,096) and $19,547 ($13,223, net of related federal tax benefits of $6,324), respectively.

The following table highlights the amount of uncertain tax positions that, if recognized, would affect the effective tax rate for each of the three years:

		2012				2011				2010
Uncertain tax positions		$	16,607			$	13,223			$	11,791

Summarized below is a tabular reconciliation of the beginning and ending balance of the Company's total gross liability for uncertain tax positions exclusive of interest and penalties:

	August 3, 2012			July 29, 2011			July 30, 2010
Balance at beginning of year	$	14,167		$	12,965		$	21,956
Tax positions related to the current year:
Additions		3,326			2,616			2,195
Reductions		--			--			--
Tax positions related to the prior year:
Additions		2,556			987			44
Reductions		(1,043	)		(24	)		(4,458	)
Settlements		--			--			(4,980	)
Expiration of statute of limitations		(908	)		(2,377	)		(1,792	)
Balance at end of year	$	18,098		$	14,167		$	12,965

The following table highlights the amount of interest and penalties related to uncertain tax positions recognized in the provision for income taxes for each of the three years:

		2012				2011				2010
Interest and penalties related to uncertain tax positions		$	830			$	651			$	271

The following table highlights the amount of potential interest and penalties, net of tax, included in the Company's liability for uncertain tax positions at:

		August 3, 2012				July 29, 2011
Interest and penalties, net of tax		$	4,844			$	4,014

In many cases, the Company's uncertain tax positions are related to tax years that remain subject to examination by the relevant taxing authorities. Based on the outcome of these examinations or as a result of the expiration of the statutes of limitations for specific taxing jurisdictions, the related uncertain tax positions taken regarding previously filed tax returns could decrease from those recorded as liabilities for uncertain tax positions in the Company's financial statements at August 3, 2012 by approximately $5,000 to $7,000 within the next twelve months. At August 3, 2012, the Company was subject to income tax examinations for its U.S. federal income taxes after 2008 and for state and local income taxes generally after 2008.