Income Taxes

Income tax expense (benefit) consisted of the following:



	Fiscal year ended
	June 2, 2018			June 3, 2017			May 28, 2016
Current:
Federal	$	18,560		$	(48,030	)	$	132,250
State	6,390			(6,670		)	17,560
	24,950			(54,700		)	149,810
Deferred:
Federal	11,038			13,076			17,096
Enacted rate change	(42,973		)	—			—
State	(1,874		)	1,757			2,296
	(33,809		)	14,833			19,392
	$	(8,859	)	$	(39,867	)	$	169,202

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



	June 2, 2018		June 3, 2017
Deferred tax liabilities:
Property, plant and equipment	$	47,899	$	68,830
Inventories	25,494		38,270
Investment in affiliates	7,996		8,563
Other comprehensive income	—		290
Other	1,616		4,656
Total deferred tax liabilities	83,005		120,609

Deferred tax assets:
Accrued expenses	3,013		4,308
State operating loss carryforwards	566		—
Other comprehensive loss	95		—
Other	3,276		6,019
Total deferred tax assets	6,950		10,327
Net deferred tax liabilities	$	76,055	$	110,282

The differences between income tax expense (benefit) at the Company’s effective income tax rate and income tax expense at the statutory federal income tax rate were as follows:

໿



	Fiscal year end
	June 2, 2018			June 3, 2017			May 28, 2016

Statutory federal income tax (benefit)	$	34,105		$	(39,950	)	$	169,835
State income tax (benefit)	3,200			(3,193		)	12,906
Domestic manufacturers deduction	(2,545		)	4,095			(13,332		)
Enacted rate change	(42,973		)	—			—
Tax exempt interest income	(101		)	(206		)	(233		)
Other, net	(545		)	(613		)	26
	$	(8,859	)	$	(39,867	)	$	169,202

On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act of 2017 (the “Act”). The new tax legislation reduces the United States corporate tax rate from 35% to 21% effective January 1, 2018.

Following the enactment of the Act, the United States Securities and Exchange Commission issued guidance in Staff Accounting Bulletin 118 which provides the Company up to a one-year measurement period, beginning on the Act’s enactment date, in which to complete the required analysis and accounting for the effects of the Act. The guidance allows the Company to record provisional adjustments related to the impacts of the Act when the accounting for the effects of the Act is incomplete, but when reasonable estimates can be made regarding the effects of the Act.

In the fiscal 2018 third quarter our accounting for the Act was not complete, because it required the Company to estimate the timing of settlement of the temporary differences from which our deferred taxes arose; however, we were able to make reasonable estimates, and we recorded those estimates as provisional adjustments. The Company completed additional analysis during its fourth quarter and further adjustments to the provisional amounts were required. As a result, the Company has recorded a $43.0 million tax benefit in connection with the Act for fiscal year 2018.

Federal and state income taxes of $2.1 million, $3.7 million, and $167.2 million were paid in fiscal years 2018, 2017, and 2016, respectively. Federal and state income taxes of $47.2 million, $17.6 million, and $320,000 were refunded in fiscal years 2018, 2017, and 2016, respectively.

We had no significant unrecognized tax benefits at June 2, 2018 or June 3, 2017. Accordingly, we do not have any accrued interest or penalties related to uncertain tax positions. However, if interest or penalties were to be incurred related to uncertain tax positions, such amounts would be recognized in income tax expense.

We are under audit by the IRS for the fiscal years 2013 through 2015. We are subject to income tax in many jurisdictions within the U.S., and certain jurisdictions are under audit by state and local tax authorities. The resolutions of these audits are not expected to be material to our consolidated financial statements. Tax periods for all years beginning with fiscal year 2013 remain open to examination by federal and state taxing jurisdictions to which we are subject.