Income Taxes

The components of income (loss) before income taxes, by tax jurisdiction, were as follows for the periods indicated (in thousands):



	For the fiscal year ended
	December 29, 2015			December 30, 2014			December 31, 2013
United States	$	242,860		$	285,564		$	317,479
Canada	(6,288		)	(8,270		)	(4,759		)
Income before income taxes	$	236,572		$	277,294		$	312,720

The provision for income taxes consisted of the following for the periods indicated (in thousands):



	For the fiscal year ended
	December 29, 2015			December 30, 2014			December 31, 2013
Current taxes:
U.S. federal	$	83,005		$	73,234		$	87,548
U.S. state and local	16,242			14,306			18,638
Total current taxes	99,247			87,540			106,186
Deferred taxes:
U.S. federal	(9,737		)	9,609			8,547
U.S. state and local	(2,263		)	950			1,804
Foreign	—			(98		)	14
Total deferred taxes	$	(12,000	)	$	10,461		$	10,365
Total provision for income taxes	$	87,247		$	98,001		$	116,551

A reconciliation of the statutory U.S. federal income tax rate to the Company's effective tax rate is as follows for the periods indicated:



	For the fiscal year ended
	December 29, 2015		December 30, 2014		December 31, 2013
Statutory U.S. federal rate	35.0	%	35.0	%	35.0	%
U.S. state and local income taxes, net of federal tax benefit	4.1		4.1		4.5
U.S. federal tax credits	(1.8	)	(1.4	)	(0.8	)
Other, including discrete tax items	(0.4	)	(2.4	)	(1.4	)
Effective tax rate	36.9	%	35.3	%	37.3	%

The Company’s higher effective tax rate for fiscal 2015 as compared to fiscal 2014 was primarily due to the discrete income tax benefits reported during fiscal 2014 related to additional federal and state tax credits and an increased deduction for domestic production activities.

The tax effects of the significant temporary differences which comprise the deferred tax assets and liabilities were as follows for the periods indicated (in thousands):



	December 29, 2015			December 30, 2014
Deferred tax assets:
Accrued expenses	$	75,360		$	72,891
Foreign net operating loss carryforward	4,938			4,178
Stock-based compensation	4,705			3,125
Other	2,160			1,701
Less: valuation allowance	(5,299		)	(4,625		)
Total deferred tax assets	$	81,864		$	77,270
Deferred tax liabilities:
Property and equipment	$	(92,580	)	$	(101,533	)
Goodwill and other intangibles	(25,252		)	(23,705		)
Total deferred tax liabilities	$	(117,832	)	$	(125,238	)
Net deferred tax liability	$	(35,968	)	$	(47,968	)
Current deferred income tax assets	$	34,479		$	28,621
Long-term deferred income tax liabilities	$	(70,447	)	$	(76,589	)

In assessing the realization of deferred tax assets, the Company considers the generation of future taxable income and utilizes a more likely than not standard to determine if deferred tax assets will be realized. Based on this assessment, the Company has recorded a valuation allowance of $5.3 million and $4.6 million as of December 29, 2015 and December 30, 2014, respectively, as a full valuation allowance against all Canadian deferred tax assets, including the net operating loss carryforwards of the Company's Canadian operations. The Company’s Canadian net operating loss carryforwards begin expiring in 2027.

As of both December 29, 2015 and December 30, 2014, the amount of unrecognized tax benefits that, if recognized in full, would be recorded as a reduction of income tax expense was $6.1 million, inclusive of applicable interest and penalties and net of federal tax benefits, respectively. Estimated interest and penalties related to the underpayment of income taxes are classified as a component of income tax expense in the Consolidated Statements of Income. These amounts were income of $0.2 million, expense of $0.3 million, and income of $0.1 million during fiscal 2015, fiscal 2014, and fiscal 2013, respectively. Accrued interest and penalties were $0.9 million and $1.4 million as of December 29, 2015 and December 30, 2014, respectively.

The following is a rollforward of the Company’s liability for unrecognized tax benefits for the periods indicated (in thousands):



	December 29, 2015			December 30, 2014			December 31, 2013
Beginning balance	$	6,455		$	2,999		$	3,051
Tax positions related to the current year:
Additions	1,339			1,536			653
Tax positions related to prior years:
Additions	—			2,671			256
Reductions	(483		)	—			(49		)
Settlements	(200		)	(131		)	(425		)
Expiration of statutes of limitations	(443		)	(620		)	(487		)
Ending balance	$	6,668		$	6,455		$	2,999

The U.S. Internal Revenue Service has completed exams of the Company’s U.S. federal tax returns for fiscal years 2012 and prior. While certain state returns in fiscal years 2002 through 2011 may be subject to future assessment by taxing authorities, the Company is no longer subject to examination in Canada and most states in fiscal years prior to 2012.

It is reasonably possible that the Company’s liability for unrecognized tax benefits with respect to the Company’s uncertain tax positions will increase or decrease during the next twelve months; however, an estimate of the amount or range of the change cannot be made at this time.