Income Taxes

The components of the provision (benefit) for income taxes were as follows:



	Fiscal Year Ended
	2015		2014			2013
	(Dollars in thousands)
Current:
Federal	$	42,516	$	27,161		$	22,173
Foreign	502		416			406
State	6,998		5,087			2,702
	50,016		32,664			25,281
Deferred:
Federal	305		(5,706		)	(2,866		)
Foreign	268		—			6
State	671		(617		)	590
	1,244		(6,323		)	(2,270		)
Total Tax Provision	$	51,260	$	26,341		$	23,011

The Company is subject to federal income taxes in the United States, the income taxes of multiple state jurisdictions and in Canada. There were immaterial amounts of pre-tax income related to Canadian operations for fiscal 2015, 2014, and 2013. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or Canadian income tax examinations for fiscal years ended 2011 and prior. The Company believes its provision for income taxes is adequate; however, any assessment would affect the Company’s results of operations and cash flows. Income tax receivables totaling $2.1 million and $2.2 million are included in other current assets as of July 25, 2015 and July 26, 2014, respectively. Income tax payables totaling $8.9 million and $5.2 million are included in other accrued liabilities as of July 25, 2015 and July 26, 2014, respectively.

The deferred tax provision represents the change in the deferred tax assets and the liabilities representing the tax consequences of changes in the amount of temporary differences and changes in tax rates during the year. The significant components of deferred tax assets and liabilities consisted of the following:



	July 25, 2015			July 26, 2014
	(Dollars in thousands)
Deferred tax assets:
Insurance and other reserves	$	31,222		$	26,964
Allowance for doubtful accounts and reserves	1,047			742
Net operating loss carryforwards	1,443			994
Stock-based compensation	5,149			5,402
Other	1,303			1,062
Total deferred tax assets	40,164			35,164
Valuation allowance	(870		)	(878		)
Deferred tax assets, net of valuation allowance	$	39,294		$	34,286
Deferred tax liabilities:
Property and equipment	$	34,702		$	32,164
Goodwill and intangibles	29,930			26,998
Other	1,420			553
Deferred tax liabilities	$	66,052		$	59,715

Net deferred tax liabilities	$	26,758		$	25,429

The valuation allowance above reduces the deferred tax asset balances to the amount that the Company has determined is more likely than not to be realized. The valuation allowance primarily relates to immaterial state net operating loss carryforwards, which generally begin to expire in fiscal 2022.

The difference between the total tax provision and the amount computed by applying the statutory federal income tax rates to pre-tax income is as follows:



	Fiscal Year Ended
	2015			2014			2013
	(Dollars in thousands)
Statutory rate applied to pre-tax income	$	47,454		$	23,212		$	20,370
State taxes, net of federal tax benefit	5,159			2,863			2,271
Non-taxable and non-deductible items, net	(1,220		)	491			366
Change in accruals for uncertain tax positions	(74		)	53			153
Other items, net	(59		)	(278		)	(149		)
Total tax provision	$	51,260		$	26,341		$	23,011

Non-taxable and non-deductible items during fiscal 2015 consisted of a production related tax deduction of $4.0 million, offset by $2.8 million of non-deductible items.

As of July 25, 2015 and July 26, 2014, the Company had total unrecognized tax benefits of $2.3 million and $2.4 million, respectively, resulting from uncertain tax positions. The Company’s effective tax rate will be reduced during future periods if it is determined these tax benefits are realizable. The Company had approximately $0.9 million and $0.8 million for the payment of interest and penalties accrued as of July 25, 2015 and July 26, 2014, respectively. Interest expense related to unrecognized tax benefits for the Company was immaterial.

A summary of unrecognized tax benefits is as follows:



	Fiscal Year Ended
	2015			2014			2013
	(Dollars in thousands)
Balance at beginning of year	$	2,401		$	2,348		$	2,194
Additions based on tax positions related to the fiscal year	44			137			155
Additions (reductions) based on tax positions related to prior years	(98		)	10			19
Reductions related to the expiration of statutes of limitation	(20		)	(94		)	(20		)
Balance at end of year	$	2,327		$	2,401		$	2,348