7.	INCOME TAXES

The provision (benefit) for income taxes consisted of the following:

	(In thousands)
	Fiscal		Fiscal			Fiscal
	2017		2016			2015
Current	$	54,422	$	32,806		$	24,326
Deferred		1,358		(1,299	)		1,076
Total	$	55,780	$	31,507		$	25,402

Deferred taxes are recorded to give recognition to temporary differences between the tax bases of assets or liabilities and their reported amounts in the financial statements. Valuation allowances are established to reduce the carrying amounts of deferred tax assets when it is deemed more likely than

not

that the benefit of deferred tax assets will

not

be realized. Deferred tax assets and liabilities as of

April 29, 2017

and

April 30, 2016

consisted of the following:

	(In thousands)
	2017		2016
Deferred tax assets:
Accrued expenses and other	$	4,740	$	5,655
Inventory and amortizable assets		538		538
Total deferred tax assets		5,278		6,193
Deferred tax liabilities:
Property		15,157		14,049
Intangibles and other		2,208		2,164
Total deferred tax liabilities		17,365		16,213
Net deferred tax liabilities	$	12,087	$	10,020
Current deferred tax assets – net	$	3,906	$	4,454
Noncurrent deferred tax liabilities – net	$	15,993	$	14,474

The reconciliation of the statutory federal income tax rate to our effective tax rate is as follows:

	Fiscal			Fiscal			Fiscal
	2017			2016			2015
Statutory federal income tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal benefit		2.2			2.2			2.3
Domestic manufacturing deduction benefit		(3.0	)		(3.0	)		(3.0	)
Other differences		.1			(.2	)		(.3	)
Effective income tax rate		34.3	%		34.0	%		34.0	%

As of

April 29, 2017,

the gross amount of unrecognized tax benefits was

$1.7

million and

$66,000

was recognized as a tax benefit in Fiscal

2017.

If we were to prevail on all uncertain tax positions, the net effect would be to reduce our tax expense by approximately

$1.2

million. A reconciliation of the changes in the gross amount of unrecognized tax benefits, which amounts are included in other liabilities in the accompanying consolidated balance sheets, is as follows:

	(In thousands)
	Fiscal			Fiscal			Fiscal
	2017			2016			2015
Beginning balance	$	1,678		$	1,801		$	2,123
Increases due to current period tax positions		150			145			122
Decreases due to lapse of statute of limitations and audit resolutions		(85	)		(268	)		(444	)
Ending balance	$	1,743		$	1,678		$	1,801

We recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense. As of

April 29, 2017,

unrecognized tax benefits included accrued interest of

$239,000,

of which approximately

$12,000

was recognized as a tax benefit in Fiscal

2017.

We file annual income tax returns in the United States and in various state and local jurisdictions. A number of years

may

elapse before an uncertain tax position, for which we have unrecognized tax benefits, is resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, we believe that our unrecognized tax benefits reflect the most probable outcome. We adjust these unrecognized tax benefits, as well as the related interest, in light of changing facts and circumstances. The resolution of any particular uncertain tax position could require the use of cash and an adjustment to our provision for income taxes in the period of resolution. Federal income tax returns for fiscal years subsequent to

2013

are subject to examination. Generally, the income tax returns for the various state jurisdictions are subject to examination for fiscal years ending after fiscal

2010.