The provision / (benefit) for income taxes consists of the following (in thousands):

Fiscal year	2020			2019			2018
Current:
Federal	$	40,084		$	38,545		$	23,815
Foreign		1,589			(200	)		527
State		12,865			11,733			8,012
Total current	$	54,538		$	50,078		$	32,354
Deferred:
Federal	$	(8,522	)	$	7,289		$	(11,517	)
Foreign		(599	)		645			363
State		(3,299	)		778			2,151
Total deferred	$	(12,420	)	$	8,712		$	(9,003	)
Total	$	42,118		$	58,790		$	23,351

The following table reconciles the provision for income taxes using the statutory federal income tax rate to the actual provision for income taxes:

Fiscal year	2020			2019			2018
Income taxes at the statutory federal income tax rate		21.0	%		21.0	%		25.9	%
State income taxes		4.4			4.3			4.1
Other		(1.7	)		(0.6	)		(2.8	)
Deemed Repatriation of Non—U.S. Earnings, net foreign tax credits and other (collectively, Transition Tax)		—			—			1.4
Impact of U.S. tax reform federal tax rate reduction		—			—			(16.1	)
Total		23.7	%		24.7	%		12.5	%

The components of deferred income taxes included on the consolidated balance sheets are as follows (in thousands):

	August 29, 2020		August 31, 2019
Deferred Tax Assets
Payroll and benefit related	$	17,451	$	15,929
Insurance related		13,790		11,948
Environmental		7,856		7,093
Accrued expenses		6,270		2,164
Operating lease liabilities		8,720		—
Other		7,536		7,301
Total deferred tax assets	$	61,623	$	44,435
Deferred Tax Liabilities
Payroll and benefit related	$	17,722	$	16,056
Tax in excess of book depreciation		41,713		42,691
Purchased intangible assets		32,892		29,633
Rental merchandise in service		38,846		46,649
Operating lease right-of-use assets		8,952		—
Other		191		290
Total deferred tax liabilities		140,316		135,319
Net deferred tax liability	$	78,693	$	90,884

The Company regularly reviews deferred tax assets for recoverability based upon projected future taxable income and the expected timing of the reversals of existing temporary differences. Although realization is not assured, management believes it is more likely than not that the recorded deferred tax assets will be realized.

The TCJA enacted on December 22, 2017, among other matters, reduced the U.S. federal corporate income tax rate from 35.0% to 21.0%, required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and created new taxes on certain foreign sourced earnings.

On December 22, 2017, the Securities and Exchange Commission (the “SEC”) issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”) directing SEC registrants to consider the impact of the U.S. legislation as “provisional” when a registrant does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the change in tax law. In accordance with SAB 118, during fiscal 2018 the Company recorded its best estimates based on its interpretation of the U.S. legislation while it continued to accumulate data to finalize the underlying calculations. This resulted in the Company recording a provisional net income tax benefit of $20.1 million for the fiscal year ended August 25, 2018 related to remeasuring its U.S. net deferred tax liabilities at the lower tax rate and the one-time transition tax.

As a result of the TCJA, U.S. corporations are subject to lower income tax rates. For fiscal 2020 and 2019, the statutory tax rate was 21.0% compared to the applicable blended statutory tax rate of 25.9% for fiscal 2018.

During the second quarter of fiscal 2019, the Company completed its accounting for the tax effects of enactment of the TCJA as required by SAB 118. There were no changes from the provisional calculation as recorded through August 25, 2018 to the final calculation.

The Company’s effective tax rate for the fiscal year ended August 29, 2020 was 23.7% as compared to 24.7% for the corresponding period in the prior year. The decrease in the effective tax rate was primarily due to higher benefits of $2.1 million resulting from the release of certain tax reserves and the tax benefit related to the exercise of stock appreciation rights in fiscal 2020 compared to fiscal 2019.

As of August 29, 2020, unremitted foreign earnings, have been retained by the Company’s foreign subsidiaries for indefinite reinvestment. Upon repatriation of those earnings, in the form of dividends or otherwise, the Company could be subject to immaterial withholding taxes payable to the various foreign countries.

As of August 29, 2020 and August 31, 2019, there was $6.3 million and $7.7 million, respectively, of unrecognized tax benefits, of which $5.6 million and $7.0 million, respectively, would favorably impact the Company’s effective tax rate, if recognized. The Company recognized interest and penalties related to uncertain tax positions as a component of income tax expense which is consistent with the recognition of these items in prior reporting periods. As of August 29, 2020 and August 31, 2019, the Company had accrued a total of $0.2 million and $0.2 million, respectively, in interest and penalties, in its long-term accrued liabilities. For the years ended August 29, 2020, August 31, 2019 and August 25, 2018 the Company recognized a nominal expense in its Consolidated Statement of Income related to interest and penalties.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

Balance at August 25, 2018	$	2,198
Additions based on tax positions related to the current year		329
Additions for tax positions of prior years		5,535
Statute expirations		(394	)
Balance at August 31, 2019		7,668
Additions based on tax positions related to the current year		475
Reduction for tax positions of prior years		(1,389	)
Statute expirations		(424	)
Balance at August 29, 2020	$	6,330

The Company has a significant portion of its operations in the United States and Canada. It is required to file federal income tax returns as well as state income tax returns in a majority of the U.S. states and also in a number of Canadian provinces. At times, the Company is subject to audits in these jurisdictions, which typically are complex and can require several years to resolve. The final resolution of any such tax audits could result in either a reduction in the Company’s accruals or an increase in its income tax provision, both of which could have a material impact on the consolidated results of operations in any given period.

All U.S. and Canadian federal income tax statutes have lapsed for filings up to and including fiscal years 2015 and 2012, respectively. With a few exceptions, the Company is no longer subject to state and local income tax examinations for periods prior to fiscal 2016. The Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change significantly in the next 12 months.