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)	2019			2018			2017
Current:
Federal	$	7,505		$	(4,228	)	$	12,978
State		4,173			(3,269	)		5,292
Total current provision (benefit)	$	11,678		$	(7,497	)	$	18,270

Deferred:
Federal	$	4,514		$	5,701		$	(54,232	)
State		(527	)		3,665			(3,879	)
Total deferred provision (benefit)	$	3,987		$	9,366		$	(58,111	)

Income tax expense (benefit)	$	15,665		$	1,869		$	(39,841	)

The Company’s effective income tax rate, as calculated by dividing income tax expense (benefit) by income (loss) before income taxes, was 45.8% for 2019, (14.1)% for 2018 and (63.2)% for 2017. The following table provides a reconciliation of income tax expense (benefit) at the statutory federal rate to actual income tax expense (benefit):

	Fiscal Year
	2019						2018						2017
(in thousands)	Income tax expense			% pre-tax income			Income tax expense			% pre-tax income			Income tax expense			% pre-tax income
Statutory (income) / expense	$	7,187			21.0	%	$	(2,790	)		21.0	%	$	22,052			35.0	%
Nondeductible compensation		4,313			12.6			2,851			(21.5	)		230			0.4
Meals, entertainment and travel expense		2,440			7.1			2,734			(20.6	)		3,684			5.8
Noncontrolling interest – Piedmont		(1,826	)		(5.3	)		(1,238	)		9.3			(1,692	)		(2.7	)
State income taxes, net of federal benefit		1,352			4.0			(376	)		2.8			2,029			3.2
Valuation allowance change		1,290			3.8			1,566			(11.8	)		2,718			4.3
Nondeductible fees and expenses		887			2.6			568			(4.3	)		1,151			1.8
Adjustment for uncertain tax positions		(805	)		(2.4	)		694			(5.2	)		(521	)		(0.8	)
Adjustment for federal tax legislation		-			-			(1,989	)		15.0			(69,014	)		(109.5	)
Other, net		827			2.4			(151	)		1.2			(478	)		(0.7	)
Income tax expense (benefit)	$	15,665			45.8	%	$	1,869		(14.1)%			$	(39,841	)	(63.2)%

The Company’s effective income tax rate, as calculated by dividing income tax expense (benefit) by income (loss) before income taxes minus net income attributable to noncontrolling interest, was 57.9% for 2019, (10.3)% for 2018 and (70.3)% for 2017.

The Tax Act was signed into law in 2017 and significantly reformed the Internal Revenue Code of 1986, as amended, which included reducing the corporate tax rate to 21% and changing the deductibility of certain expenses. In 2017, the Company recorded an estimated net benefit resulting from its adoption of the Tax Act of $66.6 million to income tax expense (benefit) in its consolidated financial statements and, in 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 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 2019, 2018 and 2017, 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 29, 2019 and December 30, 2018 were not material.

The Company had uncertain tax positions, including accrued interest of $2.5 million on December 29, 2019 and $3.1 million on December 30, 2018, all of which would affect the Company’s effective income 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)	2019			2018		2017
Gross uncertain tax positions at the beginning of the year	$	2,857		$	2,286	$	2,679
Increase as a result of tax positions taken in the current period		60			571		966
Reduction as a result of the expiration of the applicable statute of limitations		(634	)		-		(1,359	)
Gross uncertain tax positions at the end of the year	$	2,283		$	2,857	$	2,286

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 29, 2019			December 30, 2018
Acquisition related contingent consideration	$	110,036		$	94,323
Operating lease liabilities		27,346			-
Deferred compensation		26,788			26,154
Deferred revenue		24,936			25,027
Accrued liabilities		19,266			18,485
Pension		14,124			7,031
Postretirement benefits		13,250			13,843
Charitable contribution carryover		6,622			5,723
Transactional costs		4,857			5,291
Financing or capital lease agreements		2,432			2,871
Net operating loss carryforwards		2,012			7,628
Other		3,022			4,198
Deferred income tax assets	$	254,691		$	210,574
Less: Valuation allowance for deferred tax assets		7,190			5,899
Net deferred income tax asset	$	247,501		$	204,675

Intangible assets	$	(151,940	)	$	(154,974	)
Depreciation		(147,140	)		(131,856	)
Right of use assets - operating leases		(26,997	)		-
Investment in Piedmont		(23,287	)		(24,540	)
Inventory		(12,631	)		(10,553	)
Prepaid expenses		(7,627	)		(8,680	)
Patronage dividend		(3,009	)		(1,246	)
Deferred income tax liabilities	$	(372,631	)	$	(331,849	)

Net deferred income tax liability	$	(125,130	)	$	(127,174	)

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 $7.2 million on December 29, 2019 and $5.9 million on December 30, 2018 was established primarily for certain loss carryforwards and deferred compensation. The increase in the valuation allowance as of December 29, 2019 was primarily a result of the deductibility of certain deferred compensation.

As of December 29, 2019, the Company had no federal net operating losses and $40.1 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 Internal Revenue Service, and various tax years beginning in year 1998 remain open to examination by certain state tax jurisdictions due to loss carryforwards.