11.     Income Taxes

 

In fiscal 2016 a valuation allowance of $12.6 million was recorded against our net deferred tax asset upon determining it is more likely than not that the deferred tax assets will not be realized. In addition, the net deferred tax liability related to goodwill and other indefinite-lived assets was not used as a future source of income in the valuation allowance analysis. Accordingly, this deferred tax liability is recorded on our balance sheet.

 

The provision for income taxes consisted of the following for the fiscal years ended December 31, 2016, December 26, 2015 and December 27, 2014 (in thousands):

 

 

The income tax effects of temporary differences between financial and income tax reporting that give rise to the deferred income tax asset and liability are as follows as of December 31, 2016 and December 26, 2015 (in thousands):

 

 

 

We had U.S. net operating loss carry forwards in the amount of $28.7 million at December 31, 2016 that will expire in tax years ending 2035 and 2036 and state net operating loss carry forwards in the amount of $27.7 million at December 31, 2016 that will expire in the tax years ending 2020 through 2036. Our alternative minimum tax credits of $0.2 million have no expiration date.  Our other general business tax credits of $0.4 million at December 31, 2016 will expire in tax years ending 2025 through 2036.

 

The following table provides a reconciliation between the amount determined by applying the statutory federal income tax rate to our income tax provision for fiscal years ended December 31, 2016, December 26, 2015 and December 27, 2014 (in thousands):