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Income Taxes
 12 Months Ended
Aug. 29, 2020
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income tax expense consisted of the following:
(in thousands)202020192018
Current
Federal$14,318 $16,433 $28,874 
State2,806 3,138 5,215 
Total17,124 19,571 34,089 
Deferred
Federal(790)6,395 5,123 
State(500)1,145 1,071 
Total(1,290)7,540 6,194 
Provision for income taxes$15,834 $27,111 $40,283 

The following table provides a reconciliation of the U.S. statutory income tax rate to the Company's effective income tax rate:
202020192018
U.S. federal statutory rate(1)
21.0 %21.0 %25.9 %
State taxes, net of federal benefit1.9 %2.9 %3.0 %
Impact from Tax Act— %— %2.6 %
Domestic production activities deduction— %— %(2.2)%
Income tax credits(2.5)%(4.5)%(0.5)%
Nondeductible compensation0.9 %— %— %
Tax-free and dividend income(0.6)%(0.5)%(0.4)%
Uncertain tax position settlements and adjustments0.1 %0.9 %0.1 %
Other items(0.3)%(0.3)%(0.3)%
Effective tax provision rate20.5 %19.5 %28.2 %
(1)    The U.S. federal statutory rate for Fiscal 2018 is a blended rate, which includes the impact of the Tax Cuts and Jobs Act (the "Tax Act") enactment.

The Company's effective tax rate increased to 20.5% for Fiscal 2020 from 19.5% for Fiscal 2019 due primarily to the favorable impact in the prior year of research and development credits partially offset by the reduction in annual pre-tax income in Fiscal 2020.
The tax effects of temporary differences that give rise to deferred income taxes were as follows:
(in thousands)August 29, 2020August 31, 2019
Warranty reserves$13,969 $10,949 
Deferred compensation5,406 3,989 
Self-insurance reserve3,426 2,617 
Stock-based compensation2,865 2,558 
Accrued vacation1,681 1,227 
Unrecognized tax benefit498 444 
Inventory717 — 
Leases8,638 — 
Other(1)
3,295 3,337 
Total deferred tax assets40,495 25,121 
Convertible notes3,125 — 
Intangibles32,933 28,055 
Depreciation11,715 8,192 
Inventory— 906 
Leases8,330 — 
Total deferred tax liabilities56,103 37,153 
Total deferred income tax liabilities, net$15,608 $12,032 
(1)    At August 29, 2020, other includes $0.5 million related to state net operating losses. At August 31, 2019, other includes $0.6 million and $0.4 million related to federal and state net operating losses, respectively. These net operating losses are subject to various expiration periods from 5 years to no expiration. We have evaluated all the positive and negative evidence and consider it more likely than not that these carryforwards can be realized before expiration.
Changes in the unrecognized tax benefits are as follows:

(in thousands)202020192018
Balance at beginning of year$2,822 $1,220 $1,195 
Gross increases-tax positions in a prior year2,486 1,173 25 
Gross increases-current year tax positions522 429 — 
Balance at end of year5,830 2,822 1,220 
Accrued interest and penalties681 769 525 
Total unrecognized tax benefits$6,511 $3,591 $1,745 

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, $2.9 million of unrecognized tax benefits would have a favorable impact on the Company's effective tax rate. It is the Company's policy to recognize interest and penalties accrued relative to unrecognized tax benefits in income tax expense.
The Company files a U.S. Federal tax return, as well as returns in various international and state jurisdictions. Although certain years are no longer subject to examination by the Internal Revenue Service ("IRS") and various state taxing authorities, net operating loss carryforwards generated in those years may still be adjusted upon examination by the IRS or state taxing authorities. As of August 29, 2020, the Company's federal returns from Fiscal 2017 to present are subject to review by the IRS. With limited exception, state returns from Fiscal 2016 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.