15. Income Taxes

A summary of the provision for income taxes follows (in thousands):


	2016		2015		2014
Current:
Federal	$	32,477	$	36,077	$	26,919
Foreign		2,669		4,183		2,368
State and local		2,947		3,169		2,849
Deferred		11,624		(6,246)		4,422
Total	$	49,717	$	37,183	$	36,558

Significant deferred tax assets (liabilities) follow (in thousands):


	December 25,		December 27,
	2016		2015
Accrued liabilities	$	14,479	$	19,277
Accrued bonuses		5,399		4,621
Other assets and liabilities		12,434		11,488
Equity awards		7,704		6,866
Other		3,716		3,662
Foreign net operating losses		3,418		4,769
Foreign tax credit carryforwards		2,347		—
Total deferred tax assets		49,497		50,683
Valuation allowance on foreign net operating and capital losses, foreign deferred tax assets, and foreign tax credit carryforwards		(5,462)		(2,866)
Total deferred tax assets, net of valuation allowances		44,035		47,817

Deferred expenses		(9,544)		(6,861)
Accelerated depreciation		(25,072)		(21,434)
Goodwill		(18,480)		(16,752)
Other		(217)		(4,965)
Total deferred tax liabilities		(53,313)		(50,012)
Net deferred liability	$	(9,278)	$	(2,195)

The Company had approximately $14.5 million and $21.9 million of foreign tax net operating loss carryovers as of December 25, 2016 and December 27, 2015, respectively. The Company had approximately $3.1 million and $2.9 million of a valuation allowance primarily related to these foreign net operating losses as of December 25, 2016 and December 27, 2015, respectively. A substantial majority of our foreign tax net operating losses do not have an expiration date.

In addition, the Company had approximately $2.3 million in foreign tax credit carryforwards as of December 25, 2016 that expire 10 years from inception, or 2025. Our ability to utilize these foreign tax credit carryforwards is dependent on our ability to generate foreign earnings in future years sufficient to claim foreign tax credits in excess of foreign taxes paid in those years. The Company provided a full valuation allowance of $2.3 million for these foreign tax credit carryforwards as we believe realization based on the more-likely-than-not criteria has not been met as of December 25, 2016.

The reconciliation of income tax computed at the U.S. federal statutory rate to income tax expense for the years ended December 25, 2016, December 27, 2015 and December 28, 2014 is as follows in both dollars and as a percentage of income before income taxes ($ in thousands):


	2016				2015				2014
	Income Tax		Income		Income Tax		Income		Income Tax		Income
	Expense		Tax Rate		Expense		Tax Rate		Expense		Tax Rate

Tax at U.S. federal statutory rate	$	55,583	35.0	%	$	41,702	35.0	%	$	39,989	35.0	%
State and local income taxes		2,972	1.9	%		2,106	1.8	%		1,896	1.7	%
Foreign income taxes		3,143	2.0	%		2,432	2.0	%		2,368	2.1	%
Income of consolidated partnerships attributable to noncontrolling interests		(2,312)	(1.4)	%		(2,311)	(1.9)	%		(1,608)	(1.4)	%
Non-qualified deferred compensation plan (income) loss		(428)	(0.3)	%		218	0.2	%		(171)	(0.2)	%
Tax credits		(6,771)	(4.3)	%		(4,846)	(4.1)	%		(3,906)	(3.4)	%
Other		(2,470)	(1.6)	%		(2,118)	(1.8)	%		(2,010)	(1.8)	%
Total	$	49,717	31.3	%	$	37,183	31.2	%	$	36,558	32.0	%

Income taxes paid were $35.1 million in 2016, $23.3 million in 2015 and $27.0 million in 2014.

The Company files income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. The Company, with few exceptions, is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2012. The Company is currently undergoing examinations by various tax authorities. The Company anticipates that the finalization of these current examinations and other issues could result in a decrease in the liability for unrecognized tax benefits (and a decrease of income tax expense) of approximately $267,000 during the next 12 months.

The Company had $4.8 million of unrecognized tax benefits at December 25, 2016 of which, if recognized, would affect the effective tax rate. A reconciliation of the beginning and ending liability for unrecognized tax benefits excluding interest and penalties is as follows, which is recorded as an other long-term liability (in thousands):


Balance at December 28, 2014	$	4,328
Additions for tax positions of current year		529
Additions for tax positions of prior years		2,005
Reductions for lapse of statute of limitations		(1,192)
Balance at December 27, 2015		5,670
Additions for tax positions of current year		126
Additions for tax positions of prior years		183
Reductions for lapse of statute of limitations		(1,152)
Balance at December 25, 2016	$	4,827

The Company’s 2016 and 2015 income tax expense includes a benefit of $278,000 and $217,000, respectively. The Company has accrued approximately $544,000 and $825,000 for the payment of interest and penalties as of December 25, 2016 and December 27, 2015, respectively.