Income Taxes (Tables)

The components of the net deferred tax liability are as follows:

	May 28, 2015		May 29, 2014
	(in thousands)
Current deferred income tax assets:
Accrued employee benefits	$	948	$	832
Other		2,049		2,224
Net current deferred tax assets	$	2,997	$	3,056

Noncurrent deferred income tax (liabilities) assets:
Depreciation and amortization	$	(64,460)	$	(58,035)
Accrued employee benefits		15,612		14,206
Other		1,346		1,268
Net noncurrent deferred tax liabilities	$	(47,502)	$	(42,561)

Income tax expense consists of the following:

A reconciliation of the statutory federal tax rate to the effective tax rate on earnings attributable to The Marcus Corporation follows:

	Year Ended
	May 28, 2015			May 29, 2014			May 30, 2013
Statutory federal tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal income tax benefit		5.3			4.5			5.3
Tax credits, net of federal income tax benefit		(1.1)			(0.2)			(0.5)
Unrecognized tax benefits and related interest		–			–			(0.6)
Other		0.3			0.9			0.1
		39.5	%		40.2	%		39.3	%

A reconciliation of the beginning and ending gross amounts of unrecognized tax benefit are as follows:

	Year Ended
	May 28, 2015		May 29, 2014		May 30, 2013
	(in thousands)
Balance at beginning of year	$	102	$	102	$	1,614
Increases due to:
Tax positions taken in prior years		543		-		102
Tax positions taken in current year		-		-		-
Decreases due to:
Tax positions taken in prior years		-		-		-
Settlements with taxing authorities		(214)		-		(1,535)
Lapse of applicable statute of limitations		-		-		(79)
Balance at end of year	$	431	$	102	$	102