14. Income Taxes

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Act. The Tax Act makes broad and complex changes to the U.S. tax code that affect the Company and include, but are not limited to: (1) reducing the U.S. federal corporate tax rate, (2) allowing bonus depreciation for full expensing of qualified property and (3) eliminating the manufacturing deduction. The Tax Act reduces the federal corporate tax rate to 21% for our fiscal year ending March 30, 2019. As a result of these changes, our fiscal year ended March 31, 2018, had a blended corporate tax rate of 31.54%, which is based on the tax rate before and after the Tax Act and the number of days in the fiscal year.

In addition, on December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 ("SAB 118") that allows us to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. The Company is currently analyzing the impact of the various provisions of the Tax Act. The ultimate impact may differ from the provisional amounts recorded. The Company expects to complete our analysis within the measurement period in accordance with SAB 118.

The provision for income taxes for fiscal years 2018, 2017 and 2016 were as follows (in thousands):



	Fiscal Year
	2018			2017			2016
Current
Federal	$	19,008		$	15,924		$	15,070
State	2,323			1,131			1,350
Total current	21,331			17,055			16,420
Deferred
Federal	(4,315		)	(13		)	(987		)
State	5			284			54
Total deferred	(4,310		)	271			(933		)
Total income tax provision	$	17,021		$	17,326		$	15,487

A reconciliation of income taxes computed by applying the expected federal statutory income tax rates of 31.54% for fiscal year 2018 and 35% for fiscal years 2017 and 2016 to income before income taxes reported in the Consolidated Statements of Comprehensive Income is as follows (in thousands):



	Fiscal Year
	2018			2017			2016
Federal income tax at statutory rate	$	24,766		$	19,348		$	15,410
Impact of Tax Act	(4,824		)	—			—
State income taxes, net of federal benefit	2,330			1,428			1,427
Stock-based compensation	(2,121		)	—			—
Domestic production activities deduction	(2,001		)	(1,422		)	(889		)
Tax credits	(1,776		)	(1,826		)	(941		)
Other	647			(202		)	480
Total income tax provision	$	17,021		$	17,326		$	15,487

Net long-term deferred tax assets and liabilities were as follows (in thousands):



	March 31, 2018			April 1, 2017
Net long-term deferred tax (liabilities) assets
Goodwill	$	(15,637	)	$	(24,847	)
Warranty reserves	4,033			5,784
Loan discount	3,662			6,419
Property, plant, equipment and depreciation	(3,575		)	(4,569		)
Stock-based compensation	2,177			3,054
Salaries and wages	1,741			2,375
Prepaid expenses	(1,585		)	(2,494		)
Other intangibles	(1,581		)	(2,382		)
Inventory	1,196			1,466
Deferred revenue	829			1,374
Policy acquisition costs	(571		)	(1,001		)
Deferred margin	474			1,627
Other	1,260			1,280
	$	(7,577	)	$	(11,914	)

The effective income tax rate for the current year was positively impacted by the timing of certain tax credits and deductions, a $4.8 million revaluation of the net deferred income tax balance in connection with the lower federal income tax liability related to the Tax Act and a $2.1 million benefit from the current year adoption of accounting standards that required excess tax benefits on stock option exercises to be recorded as a reduction of income tax expense instead of equity, as was previously required. We have realized benefit from tax deductions established to favor domestic manufacturing operations and tax credits, including research and development, fuel, energy efficient home and work opportunity tax credits.

The Company recorded an insignificant amount of unrecognized tax benefits during fiscal years 2018, 2017 and 2016, and there would be an insignificant effect on the effective tax rate if all unrecognized tax benefits were recognized. The Company classifies interest and penalties related to unrecognized tax benefits in income tax expense. The total amount of unrecognized tax benefit related to any particular tax position is not anticipated to change significantly within the next 12 months. At March 31, 2018, the Company has state net operating loss carryforwards that total $400,000, that began to expire in 2015.

The Company periodically evaluates the deferred tax assets based on the requirements established in ASC 740, which requires the recording of a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The determination of the need for or amount of any valuation allowance involves significant management judgment and is based upon the evaluation of both positive and negative evidence, including management projections of anticipated taxable income. At March 31, 2018, the Company evaluated its historical profits earned and forecasted taxable income and determined that, except as described above, all of the deferred tax assets would be utilized in future periods. Ultimate realization of the deferred tax assets depends on our ability to continue to earn profits as we have historically and to meet these forecasts in future periods.

Income tax returns are filed in the U.S. federal jurisdiction and in several state jurisdictions. In August 2017, the Company received a notice of examination from the Internal Revenue Service ("IRS") for the Company's federal income tax return for the fiscal year ended April 2, 2016. In general, the Company is no longer subject to examination by the IRS for years before fiscal year 2015 or state and local income tax examinations by tax authorities for years before fiscal year 2014. The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material change to the Company's financial position.