The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2016.

Year ended December 31,		2019					2018					2017
		Current		Deferred			Current		Deferred			Current		Deferred
Federal	$	10,705	$	(1,911	)	$	17,574	$	(3,265	)	$	20,232	$	1,865
State		2,455		(513	)		3,859		(387	)		3,987		(580	)
	$	13,160	$	(2,424	)	$	21,433	$	(3,652	)	$	24,219	$	1,285

Changes in deferred tax assets relating to the adoption of ASC 606 are not charged to expense and are therefore not included in the deferred tax provision; instead they are charged to retained earnings.

The effective income tax rate varied from the statutory federal income tax rate as follows:

Year ended December 31,	2019		2018		2017
Statutory federal income tax rate	21.0	%	21.0	%	35.0	%
State income taxes, net of federal tax benefit	3.6		4.0		2.9
Domestic production activities deduction	—		—		(2.6	)
Impact of Accounting Standard Update 2016-09	—		—		(0.9	)
Impact of Tax Cuts and Jobs Act on deferred taxes	—		—		(0.7	)
Other items	0.4		0.9		(0.9	)
Effective income tax rate	25.0	%	25.9	%	32.8	%

The Tax Cuts and Jobs Act of 2017 lowered the statutory corporate tax rate from 35% to 21 % for years beginning after December 31, 2017. The Company estimates that its effective tax rate in 2020 will approximate 24.8 %.

As discussed in the Recent Accounting Pronouncements section of Note 1 to the Consolidated Financial Statements, the Company adopted ASU 2016-09 in the first quarter of 2017. The impact of adopting this change in accounting principle reduced the Company’s effective tax rate by 0.9% for the period ending December 31, 2017 and did not impact the effective tax rate for the periods ended December 31, 2018 and December 31, 2019. The adoption of this pronouncement did not have a material impact on the Company’s results of operations or financial position in any year.

Table of Contents

Significant components of the Company’s deferred tax assets and liabilities are as follows:

December 31,

2019

2018

Deferred tax assets

Product Liability

$

203

$

294

Employee compensation and benefits

2,263

2,356

Allowances for doubtful accounts and discounts

3,761

2,750

Inventories

978

729

Stock-based compensation

3,064

2,292

Other

1,637

1,113

Total deferred tax assets

11,906

9,534

Deferred tax liabilities:

Depreciation

5,631

6,256

Other

882

309

Total deferred tax liabilities

6,513

6,565

Net deferred tax assets

$

5,393

$

2,969

The Company made income tax payments of approximately $16.0 million, $18.1 million, and $23.4 million, during 2019, 2018, and 2017, respectively. The Company expects to realize its deferred tax assets through tax deductions against future taxable income.

The Company does not believe it has included any “uncertain tax positions” in its federal income tax return or any of the state income tax returns it is currently filing. The Company has made an evaluation of the potential impact of additional state taxes being assessed by jurisdictions in which the Company does not currently consider itself liable. The Company does not anticipate that such additional taxes, if any, would result in a material change to its financial position.