Income Taxes

Income tax expense consisted of the following:



	Year Ended
(In thousands)	August 26, 2017		August 27, 2016		August 29, 2015
Current
Federal	$	33,125	$	14,293	$	15,406
State	2,937		1,685		1,124
Total	36,062		15,978		16,530
Deferred
Federal	926		4,280		1,486
State	281		444		308
Total	1,207		4,724		1,794
Income Tax Expense	$	37,269	$	20,702	$	18,324

The following table provides a reconciliation of the US statutory income tax rate to our effective income tax rate:



	Year Ended
(A percentage)	August 26, 2017		August 27, 2016		August 29, 2015
US federal statutory rate	35.0	%	35.0	%	35.0	%
State taxes, net of federal benefit	2.8	%	2.5	%	2.4	%
Tax-free and dividend income	(0.7	)%	(1.3	)%	(1.3	)%
Income tax credits	(0.6	)%	(1.1	)%	(0.3	)%
Domestic production activities deduction	(2.4	)%	(2.5	)%	(3.7	)%
Other items	0.8	%	(1.3	)%	(0.8	)%
Uncertain tax positions settlements and adjustments	(0.6	)%	—	%	(0.5	)%
Effective tax provision rate	34.3	%	31.3	%	30.8	%

The tax effects of temporary differences that give rise to deferred income taxes were as follows:



(In thousands)	August 26, 2017			August 27, 2016
Deferred income tax asset (liability)
Deferred compensation	$	9,135		$	9,609
Warranty reserves	11,675			4,729
Postretirement health care benefits	—			2,262
Self-insurance reserve	1,967			2,214
Accrued vacation	2,142			2,006
Stock based compensation	943			1,030
Unrecognized tax benefit	437			698
Other ⁽¹⁾	2,072			1,785
Total deferred tax assets	28,371			24,333
Inventory	(1,919		)	(1,930		)
Intangibles	(7,455		)	—
Depreciation	(6,261		)	(3,650		)
Total deferred tax liabilities	(15,635		)	(5,580		)
Total deferred income tax assets, net of deferred tax liabilities	$	12,736		$	18,753


⁽¹⁾	At August 26, 2017, Other includes $46,000 related to state NOLs that will begin to expire in Fiscal 2021. We have evaluated all the positive and negative evidence and consider it more likely than not that these carryforwards can be realized.

Unrecognized Tax Benefits

Changes in the unrecognized tax benefits are as follows:



(In thousands)	August 26, 2017			August 27, 2016			August 29, 2015
Unrecognized tax benefits - beginning balance	$	1,710		$	1,589		$	1,709
Gross decreases - tax positions in a prior period	(536		)	(355		)	(568		)
Gross increases - current period tax positions	21			476			448
Unrecognized tax benefits - ending balance	1,195			1,710			1,589
Accrued interest and penalties	411			751			922
Total unrecognized tax benefits	$	1,606		$	2,461		$	2,511

The amount of unrecognized tax benefits is not expected to change materially within the next 12 months.

If the remaining uncertain tax positions are ultimately resolved favorably, $1.5 million of unrecognized tax benefits would have a favorable impact on our effective tax rate. It is our policy to recognize interest and penalties accrued relative to unrecognized tax benefits into tax expense.

We file a US federal tax return and various state tax returns. Although certain years are no longer subject to examinations by the various taxing authorities, NOL carryforwards generated in those years may be adjusted upon examination by the taxing authorities if the NOL carryforwards are utilized in a future period. As of August 26, 2017, our federal returns from Fiscal 2014 to present are subject to review by the IRS. With limited exception, state returns from Fiscal 2013 to present continue to be subject to review by state taxing jurisdictions. Several years may lapse before an uncertain tax position is audited and finally resolved and it is difficult to predict the outcome of such audits.