
	INCOME TAXES

Our tax rate for the quarter ended January 20, 2019 was impacted by the Tax Cuts and Jobs Act (the “Tax Act”), which was enacted into law on December 22, 2017. As a fiscal year taxpayer, the corporate federal tax rate reduction from 35% to 21% was phased in, resulting in a statutory federal tax rate of 24.5% for our fiscal year ending September 30, 2018, and 21.0% for our fiscal year ending September 29, 2019 and subsequent fiscal years.

In 2019 and 2018 income tax provisions reflect tax rates of 23.1% and 78.5%, respectively. The major components of the year over year change in tax rates were the one-time, non-cash impact of the enactment of the Tax Act in fiscal year 2018, a decrease in the statutory tax rate, and an adjustment related to state taxes recorded in the first quarter of fiscal year 2019, partially offset by a decrease in the excess tax benefit on stock compensation. The final annual tax rate cannot be determined until the end of the fiscal year; therefore, the actual annual 2019 rate could differ from our current estimates.

The following is a summary of the components of each tax rate (dollars in thousands):



	Sixteen Weeks Ended
	January 20, 2019					January 21, 2018
Income tax expense at statutory rate	$	10,434		25.8	%	$	17,192		28.6	%
One-time, non-cash impact of the Tax Act	—			—	%	30,627			51.0	%
Stock compensation excess tax benefit	(50		)	(0.1	)%	(802		)	(1.3	)%
Adjustment to state tax provision	(1,027		)	(2.6	)%	—			—	%
Other	16			—	%	121			0.2	%
(1)	$	9,373		23.1	%	$	47,138		78.5	%

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(1)	Percentages may not add due to rounding.