Income Taxes

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



	Fiscal Year Ended
	2016			2015		2014
Current:
Federal	$	42,096		$	42,516	$	27,161
Foreign	310			502		416
State	8,399			6,998		5,087
	50,805			50,016		32,664
Deferred:
Federal	26,467			305		(5,706		)
Foreign	(296		)	268		—
State	611			671		(617		)
	26,782			1,244		(6,323		)
Total Tax Provision	$	77,587		$	51,260	$	26,341

The Company is subject to federal income taxes in the United States and the income taxes of multiple state jurisdictions and in Canada. There were immaterial amounts of pre-tax earnings related to Canadian operations for fiscal 2016, 2015, and 2014. 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 2012 and prior. During fiscal 2016, the Company was notified by the Internal Revenue Service that its federal income tax return for fiscal 2014 was selected for examination. The Company believes its provision for income taxes is adequate; however, any assessment would affect the Company’s results of operations and cash flows. The increase in deferred tax expense and related increase in deferred tax liabilities, net non-current, during fiscal 2016 was primarily related to the extension of bonus depreciation pursuant to the Protecting Americans from Tax Hikes Act of December 2015. Income taxes payable totaled $15.3 million and $8.9 million as of July 30, 2016 and July 25, 2015, respectively. Income taxes receivable totaled $1.4 million and $2.1 million as of July 30, 2016 and July 25, 2015, respectively, and are included in current assets in the consolidated balance sheets.

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 (dollars in thousands):



	July 30, 2016			July 25, 2015
Deferred tax assets:
Insurance and other reserves	$	33,847		$	31,222
Allowance for doubtful accounts and reserves	1,013			1,047
Net operating loss carryforwards	1,151			1,443
Stock-based compensation	6,424			5,149
Other	1,363			1,303
Total deferred tax assets	43,798			40,164
Valuation allowance	(358		)	(870		)
Deferred tax assets, net of valuation allowance	$	43,440		$	39,294
Deferred tax liabilities:
Property and equipment	$	63,926		$	34,702
Goodwill and intangibles	32,632			29,930
Other	736			1,420
Deferred tax liabilities	$	97,294		$	66,052

Net deferred tax liabilities	$	53,854		$	26,758

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 (dollars in thousands):



	Fiscal Year Ended
	2016			2015			2014
Statutory rate applied to pre-tax income	$	72,214		$	47,454		$	23,212
State taxes, net of federal tax benefit	7,398			5,159			2,863
Non-taxable and non-deductible items, net	(2,013		)	(1,220		)	491
Change in accruals for uncertain tax positions	113			(74		)	53
Other items, net	(125		)	(59		)	(278		)
Total tax provision	$	77,587		$	51,260		$	26,341

Non-taxable and non-deductible items during fiscal 2016 and 2015 consisted of a production related tax deduction of $4.5 million and $4.0 million, respectively, offset by $2.5 million and $2.8 million of non-deductible items, respectively.

As of July 30, 2016 and July 25, 2015, the Company had total unrecognized tax benefits of $2.4 million and $2.3 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 $1.0 million and $0.9 million accrued for the payment of interest and penalties as of July 30, 2016 and July 25, 2015, respectively. Interest expense related to unrecognized tax benefits for the Company was immaterial.

A summary of unrecognized tax benefits is as follows (dollars in thousands):



	Fiscal Year Ended
	2016			2015			2014
Balance at beginning of year	$	2,327		$	2,401		$	2,348
Additions based on tax positions related to the fiscal year	161			44			137
Additions (reductions) based on tax positions related to prior years	86			(98		)	10
Reductions related to the expiration of statutes of limitation	(134		)	(20		)	(94		)
Balance at end of year	$	2,440		$	2,327		$	2,401