The components of the (benefit) provision for income taxes are as follows for 2015, 2014 and 2013 (in thousands):



	2015			2014		2013
Current tax provision:
Federal	$	—		$	—	$	—
State	144			792		561
Foreign	—			—		—
	144			792		561
Deferred tax (benefit) provision:
Federal	(7,169		)	5,662		3,923
State	(1,495		)	668		283
Foreign	(214		)	—		—
	(8,878		)	6,330		4,206
Total (benefit) provision for income taxes	$	(8,734	)	$	7,122	$	4,767

8. Income Taxes (continued)

The reconciliation of income tax provision (benefit) that would result from applying the federal statutory rate to pre-tax income as shown in the accompanying consolidated statements of income is as follows for 2015, 2014 and 2013 (in thousands):



	2015			2014			2013
Federal income tax (benefit) expense at federal rate	$	(7,650	)	$	6,299		$	3,887
State income tax (benefit) expense, net of federal tax	(960		)	972			653
Other permanent differences	378			170			374
Foreign rate differential	66			6			26
Tax credits	(423		)	(241		)	(149		)
Other items, net	(145		)	(84		)	(24		)
(Benefit) provision for income taxes	$	(8,734	)	$	7,122		$	4,767
Effective income tax rate	38.8		%	38.4		%	41.7		%

In 2015, 2014 and 2013 the Company recognized tax benefits on option exercises at fair value in excess of those utilized to record stock-based compensation for book purposes, totaling $0, $253,000 and $201,000, respectively, as a credit to additional paid-in capital.

The company's total deferred tax assets and liabilities are as follows (in thousands):



	2015		2014
Deferred tax assets	30,748		23,001
Deferred tax liabilities	(30,084	)	(31,216	)
Total deferred tax assets (liabilities), net	664		(8,215	)

Deferred income taxes arise because of the differences in the book and tax bases of certain assets and liabilities. Deferred income tax liabilities and assets consist of the following (in thousands):



	2015			2014
Noncurrent deferred tax assets (liabilities):
Loss carry forwards	$	4,234		$	743
Deferred rent and franchise revenue	15,802			14,454
Property, equipment and intangible assets	(24,950		)	(26,514		)
Stock-based compensation	2,833			2,847
Tax credit carry forwards	1,609			897
Inventory smallwares	(2,589		)	—
Other accrued expenses	2,124			440
Other	1,601			621
Total noncurrent net deferred tax assets (liabilities)	664			(6,512		)
Current deferred tax assets (liabilities):
Inventory smallwares	—			(2,405		)
Other	—			702
Total current deferred tax assets (liabilities)	—			(1,703		)
Net deferred tax assets (liability)	$	664		$	(8,215	)

8. Income Taxes (continued)

At December 29, 2015 and December 30, 2014, net operating loss carry forwards for federal income tax purposes of approximately $34.4 million and $22.5 million, respectively, were available to offset future taxable income through the year 2035 and 2034, respectively. The net operating loss carry forwards are primarily composed of excess tax deductions for equity compensation. Although Internal Revenue Code Section 382 generally limits the utilization of net operating losses when there is an ownership change, the net operating losses as of December 29, 2015 related to prior ownership changes are generally no longer subject to limitation because the cumulative annual loss limitation plus annual realized built-in-gain now exceeds the original net operating loss that was subject to limitation. However, before any net operating losses are used in the future, a Section 382 study will be completed to ensure that no other ownership changes have occurred that cause any limitations in addition to the limitations that we are aware of as of December 29, 2015. As a result of certain realization requirements of ASC 718, the deferred tax assets shown above include only realized tax deductions related to equity compensation equal to the equity compensation recognized for financial reporting during the years ended December 29, 2015 and December 30, 2014. Equity will be increased by up to $7.9 million if and when the net operating loss is ultimately realized.

Uncertain tax positions are recognized if it is more likely than not that the Company will be able to sustain the tax position taken, and the measurement of the benefit is calculated as the largest amount that is more than 50% likely to be realized upon resolution of the benefit. The Company has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. There were no uncertain tax positions for the years ended December 29, 2015 or December 30, 2014. The only periods subject to examination for the Company's federal and state returns are 2011 through 2014.