15. Income Taxes

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

	2014		2013		2012
Current:
Federal	$	17,193	$	19,731	$	26,065
Foreign	2,368		1,974		1,669
State and local	2,293		822		2,624
Deferred (federal and state)	14,704		10,603		2,035
Total	$	36,558	$	33,130	$	32,393

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

	2014			2013

Accrued liabilities	$	12,319		$	10,584
Accrued bonuses	3,624			4,153
Other assets and liabilities	11,109			10,209
Equity awards	6,494			5,974
Other	3,730			3,992
Foreign net operating losses	6,322			7,233
Valuation allowance on foreign net operating losses and foreign deferred tax assets	(2,932		)	(7,682		)
Total deferred tax assets	40,666			34,463

Deferred expenses	(6,141		)	(5,655		)
Accelerated depreciation	(21,425		)	(16,838		)
Goodwill	(15,725		)	(13,953		)
Other	(7,401		)	(4,673		)
Total deferred tax liabilities	(50,692		)	(41,119		)
Net deferred (liability) asset	$	(10,026	)	$	(6,656	)

The Company had approximately $29.7 million and $34.0 million of foreign tax net operating loss carryovers as of December 28, 2014 and December 29, 2013, respectively. The Company had approximately $2.9 million and $7.7 million of a valuation allowance primarily related to these foreign net operating losses as of December 28, 2014 and December 29, 2013, respectively. The net change in the total valuation allowance was a decrease of $4.8 million in 2014. 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 28, 2014, December 29, 2013 and December 30, 2012 is as follows in both dollars and as a percentage of income before income taxes ($ in thousands):

	2014					2013					2012
	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	$	39,989		35.0	%	$	37,138		35.0	%	$	34,438		35.0	%
State and local income taxes	1,896			1.7	%	1,820			1.7	%	1,936			2.0	%
Foreign income taxes	2,368			2.1	%	1,974			1.9	%	1,669			1.7	%
Settlement of certain tax issues	117			0.1	%	(909		)	(0.9	)%	305			0.3	%
Income of consolidated partnerships attributable to noncontrolling interests	(1,608		)	(1.4	)%	(1,263		)	(1.2	)%	(1,604		)	(1.6	)%
Non-qualified deferred compensation plan (income) loss	(171		)	(0.2	)%	(599		)	(0.6	)%	(355		)	(0.4	)%
Tax credits and other	(6,033		)	(5.3	)%	(5,031		)	(4.7	)%	(3,996		)	(4.1	)%
Total	$	36,558		32.0	%	$	33,130		31.2	%	$	32,393		32.9	%

Income taxes paid were $27.0 million in 2014, $29.3 million in 2013 and $25.3 million in 2012.

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 2010. 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 $546,000 during the next 12 months.

The Company had $2.8 million of unrecognized tax benefits at December 28, 2014 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 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
Additions for tax positions of prior years	1,167
Reductions for lapse of statute of limitations	(1,015		)
Balance at December 28, 2014	$	2,813

The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a part of income tax expense. The Company’s 2014 and 2013 income tax expense includes interest benefits of $35,000 and $140,000, respectively. The Company has accrued approximately $674,000 and $707,000 for the payment of interest and penalties as of December 28, 2014 and December 29, 2013, respectively.