Income Taxes

12 Months Ended

Mar. 29, 2020

The U.S. Tax Cuts and Jobs Act of 2017 (the “Tax Act”) included a number of provisions, including lowering of the U.S. corporate tax rate from 35% to 21% effective January 1, 2018. Under GAAP, deferred tax assets and liabilities are required to be revalued during the period in which the new tax legislation is enacted. As such, during fiscal 2018 we revalued our net deferred tax liabilities to reflect the impact of the Tax Act and recorded a one-time benefit of $13.9 million. The accounting for the impact of the Tax Act was finalized during fiscal 2019 and there were no material adjustments to the estimates used under provisional accounting. Our effective tax rate for fiscal 2018 was also impacted by the $39.1 million goodwill impairment charge which was recorded for book purposes but was not deductible for tax purposes.

In March 2020, the United States government approved the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"), providing tax relief to certain individuals and corporations. Other than allowing bonus depreciation on certain qualified improvement property not previously permitted under the Tax Act, the CARES Act is not expected to have an impact on our federal income tax provision.

The provisions for income taxes for fiscal 2020, 2019 and 2018 were as follows:


	2020		2019		2018
(In thousands)
Federal — current	$	8,447	$	6,956	$	7,024
State — current	3,563		2,748		1,834
Total current	12,010		9,704		8,858

Federal — deferred	(976)		(334)		(14,393)
State — deferred	(445)		(273)		(364)
Total deferred	(1,421)		(607)		(14,757)
Total provision	$	10,589	$	9,097	$	(5,899)

Reconciliations of the provisions for income taxes to the applicable federal statutory income tax rate for fiscal 2020, 2019 and 2018 are listed below.


	2020		2019		2018
Statutory federal income tax	21.0	%	21.0	%	31.5	%
State income taxes, net of federal deduction	5.7	%	5.8	%	(8.3)	%
ESOP dividend deduction on allocated shares	(0.3)	%	(0.3)	%	1.4	%
Domestic production deduction	—	%	—	%	2.7	%
Goodwill impairment	—	%	—	%	(81.7)	%
Revaluation of net deferred tax liabilities	—	%	—	%	92.5	%


Other — net	0.8	%	0.6	%	1.0	%
Total	27.2	%	27.1	%	39.1	%

The tax effects of items comprising our net deferred tax liability as of March 29, 2020 and March 31, 2019 are as follows:


(In thousands)	2020		2019
Deferred tax assets:
Trade receivables	$	212	$	167
Stock compensation accruals	728		654
Pension withdrawal liability	1,435		1,525
Lease liability	2,476		—
Unrealized loss on interest rate swap	29		—
Other	1,982		1,853
Total deferred tax assets	$	6,862	$	4,199
Deferred tax liabilities:
Inventories	$	(2,231)	$	(3,272)
Prepaid expenses	(843)		(764)
Excess of tax over book depreciation	(10,504)		(10,000)
Intangible assets	(15,936)		(16,718)
Unrealized gain on interest rate swap	—		(118)
ROU asset	(2,454)		—
Total deferred tax liabilities	$	(31,968)	$	(30,872)
Net deferred tax liabilities	$	(25,106)	$	(26,673)

As of March 29, 2020, the Company has determined that it is more likely than not that the deferred tax assets at March 29, 2020 will be realized either through future taxable income or reversals of taxable temporary differences.

We are subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. The tax years prior to our fiscal year ended April 2, 2017 are closed to examination by the Internal Revenue Service, and with few exceptions, state and local

income tax jurisdictions.