The current income tax provision represents the estimated amount of income taxes paid or payable for the year, as well as changes in estimates from prior years. The deferred income tax provision represents the change in deferred tax liabilities and assets. The following table presents the significant components of the provision for income taxes:

	Fiscal Year
(in thousands)	2018			2017			2016
Current:
Federal	$	(4,228	)	$	12,978		$	(6,920	)
State		(3,269	)		5,292			27
Total current provision (benefit)	$	(7,497	)	$	18,270		$	(6,893	)

Deferred:
Federal	$	5,701		$	(54,232	)	$	39,644
State		3,665			(3,879	)		3,298
Total deferred provision (benefit)	$	9,366		$	(58,111	)	$	42,942

Income tax expense (benefit)	$	1,869		$	(39,841	)	$	36,049

The Company’s effective income tax rate, as calculated by dividing income tax expense (benefit) by income (loss) before income taxes, was (14.1)% for 2018, (63.2)% for 2017 and 38.9% for 2016. The following table provides a reconciliation of income tax expense (benefit) at the statutory federal rate to actual income tax expense (benefit).

	Fiscal Year
	2018						2017						2016
(in thousands)	Income tax expense			% pre-tax income			Income tax expense			% pre-tax income			Income tax expense			% pre-tax income
Statutory (income) / expense	$	(2,790	)		21.0	%	$	22,052			35.0	%	$	32,449			35.0	%
Nondeductible compensation		2,851			(21.5	)		230			0.4			191			0.2
Meals, entertainment and travel expense		2,734			(20.6	)		3,684			5.8			2,886			3.0
Adjustment for federal tax legislation		(1,989	)		15.0			(69,014	)		(109.5	)		-			-
Valuation allowance change		1,566			(11.8	)		2,718			4.3			(689	)		(0.7	)
Noncontrolling interest – Piedmont		(1,238	)		9.3			(1,692	)		(2.7	)		(2,406	)		(2.6	)
Adjustment for uncertain tax positions		694			(5.2	)		(521	)		(0.8	)		(43	)		-
State income taxes, net of federal benefit		(376	)		2.8			2,029			3.2			3,243			3.5
Other, net		417			(3.1	)		673			1.1			418			0.5
Income tax expense (benefit)	$	1,869		(14.1)%			$	(39,841	)	(63.2)%			$	36,049			38.9	%

The Company’s effective tax rate, as calculated by dividing income tax expense (benefit) by income (loss) before income taxes minus net income attributable to noncontrolling interest, was (10.3)% for 2018, (70.3)% for 2017 and 41.8% for 2016.

On December 22, 2017, the Tax Act was signed into law and significantly reformed the Internal Revenue Code of 1986, as amended.

As of December 31, 2017, the Company completed its estimate for the tax effects of the enactment of the Tax Act, and as a result, the Company revalued and reduced its net deferred tax liability to the newly enacted corporate tax rate of 21%. The Company recognized an estimated benefit of $69.0 million, primarily as a result of revaluing its net deferred tax liability. This benefit was partially offset by a $2.4 million increase to the valuation allowance as a result of the deductibility of certain deferred compensation based on the current interpretation of the Tax Act. The net benefit of $66.6 million was recorded to income tax expense (benefit) in the 2017 consolidated financial statements. During the third quarter of 2018, the Company recorded an additional tax benefit of $1.9 million attributable to the re-measurement of its net deferred tax liability in connection with the filing of its 2017 federal income tax return.

The amounts recorded to gain (loss) on exchange transactions on the consolidated statements of operations did not have a significant impact on the effective income tax rate for any periods presented.

The Company records liabilities for uncertain tax positions related to certain income tax positions. These liabilities reflect the Company’s best estimate of the ultimate income tax liability based on currently known facts and information. Material changes in facts or information, as well as the expiration of statute and/or settlements with individual tax jurisdictions, may result in material adjustments to these estimates in the future.

The Company recognizes potential interest and penalties related to uncertain tax positions in income tax expense (benefit). During 2018, 2017 and 2016, the interest and penalties related to uncertain tax positions recognized in income tax expense (benefit) were not material. In addition, the amount of interest and penalties accrued at December 30, 2018 and December 31, 2017 were not material.

The Company had uncertain tax positions, including accrued interest of $3.1 million on December 30, 2018 and $2.4 million on December 31, 2017, all of which would affect the Company’s effective tax rate if recognized. While it is expected the amount of uncertain tax positions may change in the next 12 months, the Company does not expect such change would have a significant impact on the consolidated financial statements.

A reconciliation of uncertain tax positions, excluding accrued interest, is as follows:

	Fiscal Year
(in thousands)	2018		2017			2016
Gross uncertain tax positions at the beginning of the year	$	2,286	$	2,679		$	2,633
Increase as a result of tax positions taken in the current period		571		966			687
Reduction as a result of the expiration of the applicable statute of limitations		-		(1,359	)		(641	)
Gross uncertain tax positions at the end of the year	$	2,857	$	2,286		$	2,679

Deferred income taxes are recorded based upon temporary differences between the financial statement and tax bases of assets and liabilities and available net operating loss and tax credit carryforwards. Temporary differences and carryforwards that comprised deferred income tax assets and liabilities were as follows:

(in thousands)	December 30, 2018			December 31, 2017
Acquisition related contingent consideration	$	94,323		$	94,055
Deferred compensation		26,154			27,097
Deferred revenue		25,027			18,704
Accrued liabilities		18,485			15,523
Postretirement benefits		13,843			16,443
Net operating loss carryforwards		7,628			1,923
Charitable contribution carryover		5,723			3,770
Pension (nonunion)		5,307			8,303
Transactional costs		5,291			5,733
Capital lease agreements		2,871			3,377
Pension (union)		1,724			1,922
Other		4,198			1,669
Deferred income tax assets	$	210,574		$	198,519
Less: Valuation allowance for deferred tax assets		5,899			4,337
Net deferred income tax asset	$	204,675		$	194,182

Intangible assets	$	(154,974	)	$	(154,425	)
Depreciation		(131,856	)		(105,685	)
Investment in Piedmont		(24,540	)		(25,895	)
Inventory		(10,553	)		(9,781	)
Prepaid expenses		(8,680	)		(8,399	)
Patronage dividend		(1,246	)		(2,361	)
Deferred income tax liabilities	$	(331,849	)	$	(306,546	)

Net deferred income tax liability	$	(127,174	)	$	(112,364	)

The Company’s deferred income tax assets and liabilities are subject to adjustment in future periods based on the Company’s ongoing evaluations of such deferred assets and liabilities and new information available to the Company.

Valuation allowances are recognized on deferred tax assets if the Company believes it is more likely than not that some or all of the deferred tax assets will not be realized. The Company believes the majority of the deferred tax assets will be realized due to the reversal of certain significant temporary differences and anticipated future taxable income from operations.

The valuation allowance of $5.9 million on December 30, 2018 and $4.3 million on December 31, 2017 was established primarily for certain loss carryforwards and deferred compensation. The increase in the valuation allowance as of December 30, 2018 was primarily a result of the deductibility of certain deferred tax assets following the Company’s adoption of the Tax Act.

As of December 30, 2018, the Company had $16.2 million of federal net operating losses, which do not expire, and $93.5 million of state net operating losses available to reduce future income taxes, which expire in varying amounts through 2038.

Prior tax years beginning in year 2002 remain open to examination by the IRS, and various tax years beginning in year 1998 remain open to examination by certain state tax jurisdictions due to loss carryforwards.