(8) Income Taxes

Components of our income tax (benefit) and provision for the years ended December 25, 2012, December 27, 2011 and December 28, 2010 are as follows:

	Year Ended December 25, 2012			Year Ended December 27, 2011			Year Ended December 28, 2010

Current:
Federal	$	29,286		$	20,546		$	20,561
State		7,618			6,149			5,323

Total current		36,904			26,695			25,884
Deferred:
Federal		(1,511	)		289			1,788
State		(655	)		(219	)		11

Total deferred		(2,166	)		70			1,799

Income tax provision	$	34,738		$	26,765		$	27,683

A reconciliation of the statutory federal income tax rate to our effective tax rate for December 25, 2012, December 27, 2011 and December 28, 2010 is as follows:



Tax at statutory federal rate	35.0	%	35.0	%	35.0	%
State and local tax, net of federal benefit	3.7		3.7		3.7
FICA tip tax credit	(6.2	)	(6.0	)	(5.4	)
HIRE retention credit	—		(2.1	)	—
Work opportunity tax credit	(0.9	)	(1.2	)	(2.1	)
Incentive stock options	(0.2	)	(0.2	)	(0.1	)
Nondeductible officer compensation	1.2		0.5		0.9
Other	0.2		(0.2	)	0.2

Total	32.8	%	29.5	%	32.2	%

Components of deferred tax assets (liabilities) are as follows:

	December 25, 2012			December 27, 2011

Deferred tax assets:
Insurance reserves	$	3,142		$	3,252
Other reserves		450			473
Deferred rent		7,185			5,831
Share-based compensation		5,231			5,460
Unredeemed gift cards		3,135			2,812
Deferred compensation		3,507			2,503
Other assets and liabilities		2,456			2,288

Total deferred tax asset		25,106			22,619

Deferred tax liabilities:
Property and equipment		(24,449	)		(25,418	)
Intangibles		(2,943	)		(2,004	)
Other assets and liabilities		(980	)		(545	)

Total deferred tax liability		(28,372	)		(27,967	)

Net deferred tax liability	$	(3,266	)	$	(5,348	)

Current deferred tax asset	$	2,836		$	3,367
Noncurrent deferred tax liability		(6,102	)		(8,715	)

Net deferred tax liability	$	(3,266	)	$	(5,348	)

We have not provided any valuation allowance as we believe the realization of our deferred tax assets is more likely than not.

A reconciliation of the beginning and ending liability for unrecognized tax benefits is as follows:

	Uncertain tax positions impacting tax rate			Uncertain tax positions not impacting tax rate		Total uncertain tax positions

Balance at December 28, 2010	$	124		$	—	$	124
Additions to tax positions related to prior years		91			—		91
Reductions due to statute expiration		(91	)		—		(91	)

Balance at December 27, 2011		124			—		124
Additions to tax positions related to prior years		145			—		145
Reductions due to exam settlement		(87	)		—		(87	)

Balance at December 25, 2012	$	182		$	—	$	182

We, consistent with our existing policy, recognize both interest and penalties on unrecognized tax benefits as part of income tax expense. As of December 25, 2012 and December 27, 2011, the total amount of accrued penalties and interest related to uncertain tax provisions was immaterial.

All entities for which unrecognized tax benefits exist as of December 25, 2012 possess a December tax year-end. As a result, as of December 25, 2012, the tax years ended December 29, 2009, December 28, 2010 and December 27, 2011 remain subject to examination by all tax jurisdictions. As of December 25, 2012, no audits were in process by a tax jurisdiction that, if completed during the next twelve months, would be expected to result in a material change to our unrecognized tax benefits. Additionally, as of December 25, 2012, no event occurred that is likely to result in a significant increase or decrease in the unrecognized tax benefits through December 31, 2013.