14.	Income Taxes

The components of the income tax provision are as follows:

	2018			2017			2016
Current:
Federal	$	(1,137	)	$	7,887		$	3,728
State		462			2,035			896

Deferred:
Federal		4,747			(200	)		4,559
State		(84	)		(102	)		765
Total	$	3,988		$	9,620		$	9,948

December 22, 2017,

The Tax Cuts and Jobs Act (the “Act”) was signed into law. The Act reduced the federal statutory corporate income tax rate from

35%

21%

effective

January 1, 2018

for all corporate taxpayers, while most other provisions of the Act take effect for fiscal years beginning on or after

January 1, 2018.

Therefore, we computed our income tax expense for fiscal

2018

using a blended federal statutory rate of

22.2%.

The

21%

federal statutory rate, as well as certain other provisions of the Act including the elimination of the domestic manufacturing deduction and new limitations on certain business deductions, will apply to our

2019

fiscal year and thereafter. The federal rate reduction had a significant impact on our provision for income taxes for fiscal

2018

due to a discrete charge of

$1,331

arising from the re-measurement of our deferred tax assets. We believe that our accounting for the income tax effects of the Act is complete as of

November 24, 2018.

A reconciliation of the statutory federal income tax rate and the effective income tax rate, as a percentage of income before income taxes, is as follows:

	2018			2017			2016
Statutory federal income tax rate		22.2	%		35.0	%		35.0	%
Revaluation of deferred tax assets resulting from new enacted rates		10.9			-			-
State income tax, net of federal benefit		4.6			3.9			4.2
Excess tax benefits from stock-based compensation		(1.5	)		(1.8	)		(0.3	)
Other		(3.5	)		(2.6	)		(0.3	)
Effective income tax rate		32.7	%		34.5	%		38.6	%

Excess tax benefits in the amount of

$223,

$554

and

$87

were recognized as a component of income tax expense during fiscal

2018,

2017

and

2016,

respectively, resulting from the exercise of stock options and the release of restricted shares.

The income tax effects of temporary differences and carryforwards, which give rise to significant portions of the deferred income tax assets and deferred income tax liabilities, are as follows:

	November 24, 2018		November 25, 2017
Deferred income tax assets:
Trade accounts receivable	$	192	$	239
Inventories		1,755		2,606
Notes receivable		109		550
Post employment benefit obligations		3,619		5,555
State net operating loss carryforwards		218		583
Unrealized loss from affiliates		15		69
Net deferred rents		3,199		3,906
Other		1,290		1,878
Gross deferred income tax assets		10,397		15,386
Valuation allowance		-		-
Total deferred income tax assets		10,397		15,386

Deferred income tax liabilities:
Property and equipment		5,353		5,426
Intangible assets		1,060		1,185
Prepaid expenses and other		718		382

Total deferred income tax liabilities		7,131		6,993

Net deferred income tax assets	$	3,266	$	8,393

We have state net operating loss carryforwards available to offset future taxable state income of

$4,647,

which expire in varying amounts between

2021

and

2027.

Realization is dependent on generating sufficient taxable income prior to expiration of the loss carryforwards.

Income taxes paid, net of refunds received, during

2018,

2017

and

2016

were

$1,431,

$7,516,

and

$9,949,

respectively.

We regularly evaluate, assess and adjust our accrued liabilities for unrecognized tax benefits in light of changing facts and circumstances, which could cause the effective tax rate to fluctuate from period to period. Our accrued liabilities for uncertain tax benefits at

November 24, 2018

and

November 25, 2017

were

not

material.

Significant judgment is required in evaluating the Company's federal and state tax positions and in the determination of its tax provision. Despite our belief that the liability for unrecognized tax benefits is adequate, it is often difficult to predict the final outcome or the timing of the resolution of any particular tax matter. We

may

adjust these liabilities as relevant circumstances evolve, such as guidance from the relevant tax authority, or resolution of issues in the courts. These adjustments are recognized as a component of income tax expense in the period in which they are identified. The Company also cannot predict when or if any other future tax payments related to these tax positions

may

occur.

We remain subject to examination for tax years

2015

through

2018

for all of our major tax jurisdictions.