Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes

Schedule of provision for income taxes

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

	Fiscal Year
	2013			2012			2011
Income before income taxes	$	156,450		$	133,974		$	129,143
Income tax provision:
Current:
Federal	$	28,754		$	39,792		$	17,093
State	8,707			8,517			8,423
Total current	37,461			48,309			25,516
Deferred:
Federal	5,342			(11,055		)	9,284
State	(709		)	(1,703		)	(1,377		)
Total deferred	4,633			(12,758		)	7,907
Total provision	$	42,094		$	35,551		$	33,423

Schedule of reconciliation between U.S. federal statutory rate and effective tax rate

	Fiscal Year
	2013		2012		2011
Tax at U.S. federal statutory rate	35.0	%	35.0	%	35.0	%
State and district income taxes, net of federal income tax benefit	3.3		3.3		3.6
FICA tip credit	(7.0	)	(7.7	)	(6.9	)
HIRE Act retention tax credit	—		—		(1.4	)
Other credits and incentives	(1.2	)	(0.6	)	(0.8	)
Change in uncertain tax positions	—		—		(1.3	)
Manufacturing deduction	(2.4	)	(2.8	)	(2.7	)
Deferred compensation	(1.0	)	(0.7	)	0.2
Other	0.2		—		0.2
Effective tax rate	26.9	%	26.5	%	25.9	%

Schedule of deferred tax assets and liabilities

Following are the temporary differences that created our deferred tax assets and liabilities (in thousands):

	December 31, 2013			January 1, 2013
Deferred tax assets:
Employee benefits	$	23,707		$	20,135
Insurance reserves	15,622			15,284
Accrued rent	22,954			23,945
Stock-based compensation	13,822			18,908
Deferred income	7,922			7,060
Tax credit carryforwards	1,977			1,751
Other	1,320			853
Subtotal	87,324			87,936
Less: Valuation allowance	(185		)	(258		)
Total	$	87,139		$	87,678
Deferred tax liabilities:
Property and equipment	$	(150,226	)	$	(146,763	)
Inventory	(9,299		)	(9,160		)
Prepaid expenses	(8,843		)	(8,350		)
Total	$	(168,368	)	$	(164,273	)
Net deferred tax liability	$	(81,229	)	$	(76,595	)
Reported in consolidated balance sheets as:
Deferred income taxes — current asset	$	16,008		$	15,257
Deferred income taxes — noncurrent liability	(97,237		)	(91,852		)
Total	$	(81,229	)	$	(76,595	)

Schedule of reconciliation of unrecognized tax benefits

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

	Fiscal Year
	2013			2012			2011
Balance at beginning of year	$	695		$	590		$	2,135
Additions based on tax positions taken during a prior period	—			—			—
Reductions based on tax positions taken during a prior period	—			—			—
Additions based on tax positions taken during the current period	254			230			199
Reductions related to settlements with taxing authorities and lapses of statutes of limitations	(147		)	(125		)	(1,744		)
Balance at end of year	$	802		$	695		$	590