The reconciliations of income taxes at the statutory federal income tax rate to income tax expense reported in the Consolidated Statements of Comprehensive Income for the last three fiscal years are as follows:


	June 25, 2020			June 27, 2019			June 28, 2018
Federal statutory income tax rate		21.0	%		21.0	%		28.1	%
State income taxes, net of federal benefit		4.2			3.1			3.1
Impact of Tax Reform		—			—			6.3
Section 162(m) Limitation		1.2			1.1			—
Research and development tax credit		(0.3	)		(0.3	)		(0.2	)
Domestic manufacturing deduction		—			—			(2.2	)
Windfall tax benefits		(0.4	)		(0.2	)		(1.0	)
Uncertain tax positions		—			0.1			0.1
Other		(0.1	)		(0.1	)		(0.1	)

Effective tax rate		25.6	%		24.7	%		34.1	%

Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement basis and the tax basis of assets and liabilities using enacted statutory tax rates applicable to future years. Deferred tax assets and liabilities are comprised of the following:


	June 25, 2020			June 27, 2019
Deferred tax assets (liabilities):
Accounts receivable	$	355		$	332
Employee compensation		1,534			1,673
Inventory		189			309
Depreciation and amortization		(11,260	)		(10,847	)
Capitalized leases		1,145			1,117
Goodwill and intangible assets		2,885			3,182
Retirement plan		8,373			6,599
Workers’ compensation		1,932			1,862
Share based compensation		1,344			1,305
Other		291			191

Net deferred tax asset — long term		6,788			5,723

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not

that

some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income of the character necessary during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income and

tax-planning

strategies in making this assessment. If or when recognized, the tax benefits relating to any reversal of the valuation allowance will be recognized as a reduction of income tax expense.

For the years ending June 25, 2020 and June 27, 2019, unrecognized tax benefits and accrued interest and penalties were $204 and $259. Accrued interest and penalties related to uncertain tax positions are not material for any periods presented. Interest and penalties within income tax expense were not material for any period presented. The total gross amounts of unrecognized tax benefits were $203 and $240 at June 25, 2020 and June 27, 2019, respectively.

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:


	June 25, 2020			June 27, 2019			June 28, 2018
Beginning balance	$	240		$	207		$	174
Gross increases — tax positions in prior year		16			—			6
Gross decreases — tax positions in prior year		(24	)		(6	)		—
Settlements		—			—			—
Gross increases — tax positions in current year		60			39			27
Lapse of statute of limitations		(89	)		—			—

Ending balance	$	203		$	240		$	207

Unrecognized tax benefits, that if recognized, would affect the annual effective tax rate on income from continuing operations, are as follows:


	June 25, 2020		June 27, 2019		June 28, 2018
Unrecognized tax benefits that would affect annual effective tax rate	$	196	$	217	$	177

During fiscal 2020, the change in unrecognized tax benefits due to statute expiration was not material. We do not anticipate that total unrecognized tax benefits will significantly change in the next twelve months.

There were certain changes in state tax laws during the period, for which the impact was insignificant. We file income tax returns with federal and state tax authorities within the United States of America. Our federal and Illinois tax returns are open for audit for fiscal 2017 through 2019. Our California tax returns for fiscal 2016 through 2019 are open for audit. No other tax jurisdictions are material to us.