Income Taxes

Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The amount of the deferred tax assets considered realizable could be adjusted if estimates of future taxable income during the carryforward periods are reduced or increased, or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence, such as the Company’s projections for growth. Significant components of our deferred tax liabilities and assets as of April 24, 2015, and April 25, 2014, were as follows:



(in thousands)	April 24, 2015			April 25, 2014
Deferred tax assets:
Self-insurance	$	6,357		$	6,222
Stock and deferred compensation plans	16,857			15,405
Deferred proceeds on Mimi’s Café sale	4,263			4,874
State net operating loss carry forward	2,586			3,983
Credit carryforwards	13			3,620
Legal Reserve	2,791			248
Inventory	2,582			2,690
Other	6,772			5,994
Total deferred tax assets before valuation allowances	$	42,221		$	43,036
Valuation allowance	(241		)	(771		)
Net deferred tax assets	$	41,980		$	42,265

Deferred tax liabilities:
Property, plant and equipment	$	40,054		$	54,331
Other	1,307			2,107
Total deferred tax liabilities	$	41,361		$	56,438
Net deferred tax assets (liabilities)	$	619		$	(14,173	)

There are $2,586 of state net operating loss carry forwards that will expire at various times through 2034.

As of April 24, 2015, and April 25, 2014, the valuation allowance for net operating loss carryovers totaled $241 and $771, respectively. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon 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 taxable income in carryback years, and tax-planning strategies when making this assessment. No other valuation allowances have been provided for deferred tax assets because management believes that it is more-likely-than-not that the full amount of the net deferred tax assets will be realized in the future.

Significant components of the provision (benefit) for income taxes are as follows:



(in thousands)	2015			2014			2013
Current:
Federal	$	8,021		$	7,734		$	(2,602	)
State	(746		)	(1,236		)	3,772
Total current	$	7,275		$	6,498		$	1,170
Deferred:
Federal	$	(15,243	)	$	(6,769	)	$	583
State	452			414			(7,837		)
Total deferred	$	(14,791	)	$	(6,355	)	$	(7,254	)
Total tax provision (benefit)	$	(7,516	)	$	143		$	(6,084	)

Our provision (benefit) for income taxes differs from the amounts computed by applying the federal statutory rate due to the following:



	2015		2014		2013
Statutory Federal Tax Rate	35.0	%	35.0	%	35.0	%
State income tax (benefit) — net	0.5		1.5		(2.5	)
Federal tax credits	(72.4	)	(17.0	)	(6.0	)
Domestic Production Activity Deduction	(29.2	)	(8.7	)	—
Worthless stock	—		(1.9	)	(30.1	)
Officers life insurance	(6.9	)	(2.6	)	(1.4	)
Charitable Contributions	(4.5	)	(1.0	)	(0.4	)
Settlements with state taxing authorities	—		(4.0	)	—
State and Local Tax Reserves	(5.8	)	(0.3	)	(1.3	)
Other	0.1		(0.5	)	(1.3	)
Provision (benefit) for income taxes	(83.2	)%	0.5	%	(8.0	)%

Taxes paid during fiscal 2015, fiscal 2014 and fiscal 2013 were $10,543, $16,332, and $34,458, respectively.

Uncertain Tax Positions

The following table summarizes activity of the total amounts of unrecognized tax benefits:



(in thousands)	2015			2014			2013
Balance at beginning of fiscal year	$	5,952		$	9,554		$	11,045
Additions based on tax positions related to the current year	63			31			366
Additions for tax positions of prior years	551			1,004			123
Reductions for tax positions of prior years	(284		)	(25		)	(271		)
Reductions due to settlements with taxing authorities	(672		)	(1,423		)	(799		)
Reductions due to statute of limitations expiration	(408		)	(3,189		)	(910		)
Balance at end of fiscal year	$	5,202		$	5,952		$	9,554

The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of April 24, 2015, April 25, 2014, and April 26, 2013, was $4,939, $5,652 and $6,885, respectively. The remaining unrecognized tax benefits relate to tax positions for which ultimate deductibility is highly certain, but for which there is uncertainty as to the timing of such deductibility. Recognition of these tax benefits would not affect our effective tax rate.

The Company believes that it is reasonable that a decrease of approximately $447 to $2,041 in unrecognized tax benefits related to state exposures may be necessary in the coming year due to settlements with taxing authorities or lapses of statutes of limitations.

We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense in the Consolidated Statements of Net Income. During fiscal 2015, fiscal 2014 and fiscal 2013, we recognized approximately $(166), $204 and $394, respectively, of interest and penalties in tax expense (benefit). As of April 24, 2015, and April 25, 2014, we had accrued approximately $839 and $1,005, respectively, in interest and penalties related to unrecognized tax benefits.

We file United States federal and various state and local income tax returns. Tax returns are generally subject to examination for a period of three to five years after the filing of the respective return. The federal statute of limitations has been extended to April 30, 2016, for the fiscal years ended April 29, 2011, and April 27, 2012.