Income Taxes

The (benefit) provision for income taxes for the fiscal years ended December 29, 2015, December 30, 2014 and December 31, 2013 consisted of the following (in thousands):



	December 29, 2015			December 30, 2014			December 31, 2013
Current:
Federal	$	1,401		$	(3,068	)	$	3,626
State	752			498			1,826
Deferred:
Federal	(7,051		)	(6,503		)	2,408
State	(870		)	627			307
Income tax (benefit) expense	$	(5,768	)	$	(8,446	)	$	8,167

Items of reconciliation to the statutory rate (in thousands):



	December 29, 2015			December 30, 2014			December 31, 2013
Tax computed at U.S. federal statutory rate	$	330		$	(2,371	)	$	13,268
State and local income taxes (net of federal benefit)	82			(179		)	1,483
Tax credits	(5,219		)	(5,772		)	(5,465		)
Charitable contributions	(560		)	(475		)	(569		)
Change in deferred rate	(464		)	1,130			—
Uncertain tax positions released	(71		)	(755		)	(404		)
Other	134			(24		)	(146		)
Income tax (benefit) expense	$	(5,768	)	$	(8,446	)	$	8,167

Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):



	December 29, 2015			December 30, 2014
Assets:
General business credit carryforwards	$	18,915		$	16,236
Insurance reserves	11,843			10,511
Profit sharing and vacation	8,906			8,423
Unfavorable leasehold interests	2,815			3,520
Deferred rent	3,671			3,035
Other	2,193			1,894
Total deferred tax assets	48,343			43,619
Liabilities:
Depreciation and amortization	(231,500		)	(233,147		)
Debt refinancing	(1,136		)	(2,879		)
Favorable leasehold interests	(2,915		)	(3,331		)
Other	(2,555		)	(1,946		)
Total deferred tax liabilities	(238,106		)	(241,303		)
Net deferred tax liability	$	(189,763	)	$	(197,684	)

In assessing the realizability of deferred tax assets including general business credit carryforwards, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Although realization is not assured, management believes that it is more likely than not that all of the deferred tax assets will be realized and thus, no valuation allowance was provided as of December 29, 2015 and December 30, 2014.

The Company files a consolidated US federal tax return with the parent company, NPC Holdings. The Company allocates taxes between it and the parent company utilizing the separate return method.

At December 29, 2015, the liability for uncertain tax positions was $2.6 million and includes $0.1 million for interest and penalties. Interest and penalties related to unrecognized tax benefits are included in the provision for income taxes in the Consolidated Statements of Income.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows, (in thousands):



	December 29, 2015			December 30, 2014			December 31, 2013
Beginning balance	$	2,795		$	3,977		$	4,607
Lapse of applicable statute of limitations	(108		)	—			(743		)
Additional interest / penalties accrued	(2		)	143			113
Adjustments to prior year positions	—			(1,325		)	—
Ending balance	$	2,685		$	2,795		$	3,977

The net impact on the effective tax rate from the release of the unrecognized tax benefits would be $0.1 million including consideration of the indirect tax benefits established with regard to such reserves. The Company has a liability established with regard to uncertain areas of tax law that could be released in the next 12 months, to the extent the statute of limitations with regard to this item expires.

The Company files income tax returns in the U.S. and various state jurisdictions. As of December 29, 2015, the Company is subject to examination in the U.S. federal tax jurisdiction for the 2012-2014 tax years. The Company is also subject to examination in various state jurisdictions for the 2011-2014 tax years.

At December 29, 2015, the Company had U.S. general business credit carryforwards of $18.9 million which if not used, begin to expire in 2032.