15. Income Taxes

A summary of the provision for income taxes follows (in thousands):

	2013		2012		2011
Current:
Federal	$	19,731	$	26,065	$	14,383
Foreign	1,974		1,669		1,273
State and local	822		2,624		850
Deferred (federal and state)	10,603		2,035		9,818
Total	$	33,130	$	32,393	$	26,324

Significant deferred tax assets (liabilities) follow (in thousands):

	2013			2012

Accrued liabilities	$	10,584		$	10,412
Accrued bonuses	4,153			5,365
Other assets and liabilities	10,209			11,492
Equity awards	5,974			5,377
Other	3,992			4,643
Foreign net operating losses	7,233			7,896
Valuation allowance on foreign net operating losses and foreign deferred tax assets	(7,682		)	(8,240		)
Total deferred tax assets	34,463			36,945

Deferred expenses	(5,655		)	(4,581		)
Accelerated depreciation	(16,838		)	(15,966		)
Goodwill	(13,953		)	(12,269		)
Other	(4,673		)	(4,522		)
Total deferred tax liabilities	(41,119		)	(37,338		)
Net deferred (liability) asset	$	(6,656	)	$	(393	)

The Company had approximately $34.0 million and $32.5 million of foreign tax net operating loss carryovers as of December 29, 2013 and December 30, 2012, respectively, for which a full valuation allowance has been provided. A substantial majority of our foreign tax net operating losses do not have an expiration date.

The reconciliation of income tax computed at the U.S. federal statutory rate to income tax expense for the years ended December 29, 2013, December 30, 2012 and December 25, 2011 is as follows in both dollars and as a percentage of income before income taxes ($ in thousands):

	2013					2012					2011
	Income Tax Expense			Income Tax Rate		Income Tax Expense			Income Tax Rate		Income Tax Expense			Income Tax Rate

Tax at U.S. federal statutory rate	$	37,138		35.0	%	$	34,438		35.0	%	$	29,677		35.0	%
State and local income taxes	1,820			1.7	%	1,936			2.0	%	1,702			2.0	%
Foreign income taxes	1,974			1.9	%	1,669			1.7	%	1,273			1.5	%
Settlement of certain tax issues	(909		)	(0.9	)%	305			0.3	%	(711		)	(0.9	)%
Income of consolidated partnerships attributable to noncontrolling interests	(1,263		)	(1.2	)%	(1,604		)	(1.6	)%	(1,379		)	(1.6	)%
Non-qualified deferred compensation plan (income) loss	(599		)	(0.6	)%	(355		)	(0.4	)%	153			0.2	%
Tax credits and other	(5,031		)	(4.7	)%	(3,996		)	(4.1	)%	(4,391		)	(5.2	)%
Total	$	33,130		31.2	%	$	32,393		32.9	%	$	26,324		31.0	%

Income taxes paid were $29.3 million in 2013, $25.3 million in 2012 and $15.6 million in 2011.

The Company files income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. The Company, with few exceptions, is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2009. The Company is currently undergoing examinations by various tax authorities. The Company anticipates that the finalization of these current examinations and other issues could result in a decrease in the liability for unrecognized tax benefits (and a decrease of income tax expense) of approximately $287,000 during the next 12 months.

The Company had $2.7 million of unrecognized tax benefits at December 29, 2013 of which, if recognized, would affect the effective tax rate. A reconciliation of the beginning and ending liability for unrecognized tax benefits is as follows (in thousands):

Balance at December 25, 2011	$	2,988
Additions for tax positions of prior years	664
Reductions for lapse of statute of limitations	(222		)
Balance at December 30, 2012	3,430
Additions for tax positions of prior years	170
Reductions for lapse of statute of limitations	(241		)
Settlements	(698		)
Balance at December 29, 2013	$	2,661

The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a part of income tax expense. The Company’s 2013 and 2012 income tax expense includes interest benefits of $140,000 and $137,000, respectively. The Company has accrued approximately $707,000 and $846,000 for the payment of interest and penalties as of December 29, 2013 and December 30, 2012, respectively.