Income Taxes

The components of income (loss) before income taxes, by tax jurisdiction, were as follows for the periods indicated (in thousands):



	For the fiscal year ended
	December 31, 2013			December 25, 2012			December 27, 2011
United States	$	317,479		$	286,702		$	221,906
Canada	(4,759		)	(3,706		)	(2,003		)
Income before income taxes	$	312,720		$	282,996		$	219,903

The provision for income taxes consisted of the following for the periods indicated (in thousands):



	For the fiscal year ended
	December 31, 2013		December 25, 2012		December 27, 2011
Current:
U.S. federal	$	87,548	$	72,434	$	67,466
U.S. state and local	18,638		15,955		15,705
Foreign	—		—		(571		)
	106,186		88,389		82,600
Deferred:
U.S. federal	8,547		16,640		1,084
U.S. state and local	1,804		3,603		267
Foreign	14		916		—
	10,365		21,159		1,351
Total provision for income taxes	$	116,551	$	109,548	$	83,951

A reconciliation of the statutory U.S. federal income tax rate to the effective tax rate is as follows for the periods indicated:



	For the fiscal year ended
	December 31, 2013		December 25, 2012		December 27, 2011
Statutory U.S. federal rate	35.0	%	35.0	%	35.0	%
U.S. state and local income taxes, net of federal tax benefit	4.5		4.5		4.5
Federal tax credits	(0.8	)	(0.4	)	(0.4	)
Other	(1.4	)	(0.4	)	(0.9	)
Effective tax rate	37.3	%	38.7	%	38.2	%

The tax effects of the significant temporary differences which comprise the deferred tax assets and liabilities were as follows for the periods indicated (in thousands):



	December 31, 2013			December 25, 2012
Deferred tax assets:
Accrued expenses	$	71,245		$	78,198
Stock-based compensation	3,534			3,002
Net operating losses	3,124			1,761
Other	1,008			139
Less: valuation allowance	(3,173		)	(1,761		)
Total deferred tax assets	$	75,738		$	81,339
Deferred tax liabilities:
Property and equipment	$	(90,940	)	$	(88,590	)
Goodwill and other intangibles	(22,307		)	(19,902		)
Total deferred tax liabilities	$	(113,247	)	$	(108,492	)
Net deferred tax liability	$	(37,509	)	$	(27,153	)
Net deferred current tax asset	$	27,889		$	33,502
Net deferred non-current tax liability	$	(65,398	)	$	(60,655	)

In assessing the realization of deferred tax assets, the Company considers the generation of future taxable income and utilizes a more likely than not standard to determine if deferred tax assets will be realized. Based on this assessment, the Company has recorded a deferred tax valuation allowance of $3.2 million as of December 31, 2013 as a full valuation allowance against all Canadian deferred tax assets, including the net operating loss carryforwards of the Company's Canadian operations.

The following is a rollforward of the Company’s total gross unrecognized tax benefit liabilities for the periods indicated (in thousands):



	December 31, 2013			December 25, 2012			December 27, 2011
Beginning balance	$	3,051		$	3,544		$	2,896
Tax positions related to the current year:
Additions	653			530			526
Tax positions related to prior years:
Additions	256			217			264
Reductions	(49		)	(341		)	(142		)
Settlements	(425		)	(58		)	—
Expiration of statutes of limitations	(487		)	(841		)	—
Ending balance	$	2,999		$	3,051		$	3,544

As of December 31, 2013 and December 25, 2012, the amount of unrecognized tax benefits that, if recognized in full, would be recorded as a reduction of income tax expense was $2.7 million and $2.9 million, with applicable interest and penalties and net of federal tax benefits, respectively. In certain cases, the Company’s uncertain tax positions are related to tax years that remain subject to examination by the relevant tax authorities. The Company has completed a U.S. federal tax examination of fiscal 2010 and 2011, and is no longer subject to examination for years prior to 2010. While certain state returns in years 2002 through 2009 may be subject to future assessment by taxing authorities, the Company is no longer subject to examination in Canada and most states in years prior to 2010. Estimated interest and penalties related to the underpayment of income taxes are classified as a component of income tax expense in the Consolidated Statements of Comprehensive Income and these amounts were income of $0.1 million during fiscal 2013 and expense of $0.2 million and $0.3 million during fiscal 2012 and fiscal 2011, respectively. Accrued interest and penalties were $0.9 million and $1.1 million as of December 31, 2013 and December 25, 2012, respectively.