Note 12. Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Note 12. Income Taxes

The components of the provision for income taxes consist of the following.

				Transition Period						Fiscal Year
	2015			2014			2013			2014			2013
							(Unaudited)
Current:
Federal	$	2,866		$	752		$	2,352		$	571		$	506
State		2,022			889			475			477			1,748
Deferred		(26,476	)		52,909			6,623			9,164			72,035
Total income taxes	$	(21,588	)	$	54,550		$	9,450		$	10,212		$	74,289
Reconciliation of effective income tax:
Tax at U.S. statutory rates (35%)	$	(13,100	)	$	50,960		$	9,940		$	13,656		$	75,762
State income taxes, net of federal benefit		(1,973	)		4,186			840			1,369			5,043
Federal income tax credits		(4,837	)		(995	)		(960	)		(4,298	)		(4,249	)
Tax attributed to noncontrolling interests		—			—			—			—			(666	)
Dividends received deduction		(6,142	)		(341	)		(880	)		(3,650	)		(2,647	)
Valuation allowance		919			499			180			985			—
Foreign tax rate differences		3,180			606			371			1,993			—
Other		365			(365	)		(41	)		157			1,046
Total income taxes	$	(21,588	)	$	54,550		$	9,450		$	10,212		$	74,289

Income taxes paid during 2015 was $2,063. Income taxes paid for the 2014 transition period was $22. Income taxes paid totaled $4,829 in fiscal year 2014 and $1,518 in fiscal year 2013. Income tax refunds totaled $16 in 2015, $17 in fiscal year 2014 and $52 in fiscal year 2013.

As of December 31, 2015, we had approximately $413 of unrecognized tax benefits, including approximately $35 of interest and penalties, which are included in other long-term liabilities in the consolidated balance sheet. As of December 31, 2014, we had approximately $453 of unrecognized tax benefits, including approximately $66 of interest and penalties, which are included in other long-term liabilities in the consolidated balance sheet. We recognized approximately $20 and $6 in potential interest and penalties associated with uncertain tax positions during 2015 and the 2014 transition period, respectively. Our continuing practice is to recognize interest expense and penalties related to income tax matters in income tax expense. The unrecognized tax benefits of $413 would impact the effective income tax rate if recognized.

The following table summarizes the Company’s unrecognized tax benefits, excluding interest and penalties.

September 26, 2012		$	746
Gross increases – current period tax positions			25
Gross decreases – prior period tax positions			(6)
Lapse of statute of limitations			(62)
September 25, 2013			703
Gross increases – current period tax positions			37
Gross decreases – prior period tax positions			(1)
Lapse of statute of limitations			(356)
September 24, 2014			383
Gross increases – current period tax positions			4
Gross decreases – prior period tax positions			-
Lapse of statute of limitations	-
December 31, 2014			387
Gross increases – current period tax positions			179
Gross increases – prior period tax positions			15
Gross decreases – prior period tax positions			(6)
Lapse of statute of limitations			(197)
December 31, 2015		$	378

We file income tax returns which are periodically audited by various foreign, federal, state, and local jurisdictions. With few exceptions, we are no longer subject to federal, state, and local tax examinations for fiscal years prior to 2012. We believe we have certain state income tax exposures related to fiscal years 2011 through 2014. Because of the expiration of the various state statutes of limitations for these fiscal years, it is possible that the total amount of unrecognized tax benefits will decrease by approximately $148 within 12 months.

Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. Our deferred tax assets and liabilities consist of the following.

	December 31,
	2015			2014
Deferred tax assets:
Insurance reserves	$	2,878		$	3,394
Compensation accruals		1,610			1,321
Gift card accruals		2,981			790
Net operating loss credit carryforward		3,444			2,525
Valuation allowance on net operating losses		(3,384	)		(2,465	)
Income tax credit carryforward		4,344			3,914
Other		1,642			3,085
Total deferred tax assets		13,515			12,564
Deferred tax liabilities:
Investments		115,545			141,713
Fixed asset basis difference		6,311			4,621
Goodwill and intangibles		3,526			4,943
Total deferred tax liabilities		125,382			151,277
Net deferred tax liability		(111,867	)		(138,713	)
Less current portion		13,263			12,019
Long-term liability	$	(125,130	)	$	(150,732	)

Receivables on the consolidated balance sheet include income tax receivables of $559 and $3,439 as of December 31, 2015, December 31, 2014, respectively.

In September 2013, the IRS issued final and proposed regulations under IRC Sections 162, 263(a), and 168. These regulations provide guidance regarding the deduction and capitalization of expenditures related to tangible property and the disposition of tangible depreciable property. The regulations are generally effective for tax years beginning on or after January 1, 2014 and taxpayers will be allowed to rely on, and early adopt, both the final regulations and the proposed disposition rules to facilitate implementation efforts. The application of the new regulations did not have a material effect on the Company’s consolidated financial statements.