Income Taxes (Tables)

12 Months Ended

Dec. 29, 2015

Income Taxes

Schedule of provision for income taxes

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

	Fiscal Year
	2015			2014			2013
Income before income taxes	$	159,352		$	138,544		$	156,450
Income tax provision/(benefit):
Current:
Federal	$	32,765		$	28,687		$	28,754
State	8,880			8,377			8,707
Total current	41,645			37,064			37,461
Deferred:
Federal	2,659			480			5,342
State	(1,475		)	(276		)	(709		)
Total deferred	1,184			204			4,633
Total provision	$	42,829		$	37,268		$	42,094

Schedule of reconciliation between U.S. federal statutory rate and effective tax rate

	Fiscal Year
	2015		2014		2013
U.S. federal statutory rate	35.0	%	35.0	%	35.0	%
State and district income taxes, net of federal benefit	3.0		3.8		3.3
FICA tip credit	(8.0	)	(8.4	)	(7.0	)
Other credits and incentives	(1.0	)	(0.7	)	(0.9	)
Manufacturing deduction	(2.8	)	(2.9	)	(2.4	)
Deferred compensation	0.3		(0.4	)	(1.0	)
Other	0.4		0.5		(0.1	)
Effective tax rate	26.9	%	26.9	%	26.9	%

Schedule of deferred tax assets and liabilities

Following are the temporary differences that created our deferred tax assets and liabilities (in thousands):

	December 29, 2015			December 30, 2014
Deferred tax assets:
Employee benefits	$	28,856		$	24,476
Insurance reserves	19,399			18,012
Accrued rent	21,504			22,291
Stock-based compensation	16,100			15,350
Deferred income	11,406			9,273
Tax credit carryforwards	2,694			1,954
Other	794			1,259
Subtotal	100,753			92,615
Less: Valuation allowance	(618		)	(574		)
Total	$	100,135		$	92,041
Deferred tax liabilities:
Property and equipment	$	(160,764	)	$	(153,362	)
Inventory	(10,154		)	(9,749		)
Prepaid expenses	(11,741		)	(10,363		)
Total	$	(182,659	)	$	(173,474	)
Net deferred tax liability	$	(82,524	)	$	(81,433	)

Schedule of reconciliation of unrecognized tax benefits

At December 29, 2015, we had $1.1 million of unrecognized tax benefits.  If recognized, this amount would affect our effective income tax rate.  A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	Fiscal Year
	2015			2014			2013
Balance at beginning of year	$	875		$	802		$	695
Additions related to current period tax positions	192			233			254
Reductions related to settlements with taxing authorities and lapses of statutes of limitations	(0		)	(160		)	(147		)
Balance at end of year	$	1,067		$	875		$	802