(

) Income Taxes

The components of the provision for income taxes are as follows:

	Year Ended
	September 30,			October 1,			October 3,
(Dollars in thousands)	2017			2016			2015
Current:
Federal	$	8,269		$	17,075		$	10,149
State		848			1,434			772
		9,117			18,509			10,921
Deferred:
Federal		2,455			396			222
State		48			140			111
		2,503			536			333

Income taxes	$	11,620		$	19,045		$	11,254

Effective income tax rate		34.0	%		33.8	%		34.1	%

The

reconciliation between income taxes computed at the federal statutory rate and the provision for income taxes is as follows:

	Year Ended
(Dollars in thousands)	September 30, 2017					October 1, 2016					October 3, 2015
Provision for income taxes at federal statutory rate	$	11,959		35.0	%	$	19,701		35.0	%	$	11,537		35.0	%
Qualified production activities deduction		(768	)	(2.2	)		(1,596	)	(2.8	)		(1,005	)	(3.0	)
Valuation allowance		(29	)	(0.1	)		(213	)	(0.4	)		(55	)	(0.2	)
State income taxes, net of federal tax benefit		598		1.8			1,093		1.9			612		1.9
Other, net		(140	)	(0.5	)		60		0.1			165		0.4
Provision for income taxes	$	11,620		34.0	%	$	19,045		33.8	%	$	11,254		34.1	%

The components of deferred tax assets and liabilities are as follows:

	September 30,			October 1,
(In thousands)	2017			2016
Deferred tax assets:
Defined benefit plans	$	3,556		$	3,497
Accrued expenses and asset reserves		3,069			2,942
Stock-based compensation		1,907			1,652
State net operating loss carryforwards and tax credits		284			354
Goodwill, amortizable for tax purposes		-			277
Valuation allowance		(251	)		(280	)
Deferred tax assets		8,565			8,442

Deferred tax liabilities:
Plant and equipment		(15,093	)		(12,915	)
Prepaid insurance and other reserves		(1,575	)		(999	)
Deferred tax liabilities		(16,668	)		(13,914	)
Net deferred tax liability	$	(8,103	)	$	(5,472	)

As of

September 30, 2017,

we recorded a non-current deferred tax liability (net of valuation allowance) of

$8.1

million in other liabilities on our consolidated balance sheet. As of

October 1, 2016,

we recorded a non-current deferred tax liability (net of valuation allowance) of

$5.5

million in other liabilities on our consolidated balance sheet. We have

$7.4

million of state net operating loss carryforwards (“NOLs”) that begin to expire in

2018,

but principally expire between

2018

and

2031.

We have also recorded deferred tax assets for various state tax credits of

$46,000,

which will begin to expire in

2019

and principally expire between

2019

and

2020.

The realization of our deferred tax assets is entirely dependent upon our ability to generate future taxable income in applicable jurisdictions. GAAP requires that we periodically assess the need to establish a valuation allowance against our deferred tax assets to the extent we

longer believe it is more likely than

not

that they will be fully utilized. As of

September 30, 2017,

we had recorded a valuation allowance of

$251,000

pertaining to various state NOLs and tax credits that were

not

expected to be utilized. The valuation allowance is subject to periodic review and adjustment based on changes in facts and circumstances and would be reduced should we utilize the state net operating loss carryforwards against which an allowance had previously been provided or determine that such utilization is more likely than

not.

The

$29,000

decrease in the valuation allowance during

2017

is primarily due to the reduction in enacted state tax rates and the expiration of state NOLs for which an allowance had been previously recorded.

As of

September 30, 2017,

we had

material, known tax exposures that required the establishment of contingency reserves for uncertain tax positions.

We classify

interest and penalties related to unrecognized tax benefits as part of income tax expense. There were

interest and penalties related to unrecognized tax benefits incurred during

2017,

2016

and

2015.

file U.S. federal income tax returns as well as state and local income tax returns in various jurisdictions. Federal and various state tax returns filed subsequent to

2012

remain subject to examination.