Income Taxes

Income tax expense was comprised of the following:



	FISCAL YEARS ENDED APRIL 30
(in thousands)	2017		2016			2015

CURRENT EXPENSE
Federal	$	23,638	$	18,239		$	12,663
State	4,189		3,195			1,890
Total current expense	27,827		21,434			14,553

DEFERRED EXPENSE
Federal	8,607		10,179			3,024
State	1,292		1,450			1,311
Total deferred expense	9,899		11,629			4,335
Total expense	37,726		33,063			18,888
Other comprehensive income (loss)	4,391		(4,110		)	(9,510		)
Total comprehensive income tax expense	$	42,117	$	28,953		$	9,378

The Company's effective income tax rate varied from the federal statutory rate as follows:



	FISCAL YEARS ENDED APRIL 30
	2017		2016		2015
Federal statutory rate	35.0	%	35.0	%	35.0	%
Effect of:
Research and experimentation tax credit	(0.2	)%	—	%	(2.3	)%
Stock Compensation	(1.3	)	—		—
Meals and entertainment	0.3		0.3		0.5
Domestic production deduction	(2.2	)	(2.5	)	(2.4	)
Other	(0.3	)	(0.1	)	0.1
Total	(3.7	)%	(2.3	)%	(4.1	)%

Effective federal income tax rate	31.3	%	32.7	%	30.9	%
State income taxes, net of federal tax effect	3.3		3.3		3.8
Effective income tax rate	34.6	%	36.0	%	34.7	%

Included in the fiscal year 2015 effective income tax rate are research and experimentation tax credits for fiscal years 2011 through 2014. The research and experimentation tax credits for fiscal years 2017 and 2016 are not estimated to be significant.

Due to the adoption of ASU 2016-09 in fiscal year 2017, excess tax benefits of stock compensation were recorded in tax expense while in previous years excess benefits were recorded in additional paid-in-capital and therefore, did not impact the effective tax rate.

Income taxes paid were $27.3 million, $24.5 million and $13.3 million for fiscal years 2017, 2016 and 2015, respectively.

The significant components of deferred tax assets and liabilities were as follows:



	APRIL 30
(in thousands)	2017			2016
Deferred tax assets:
Pension benefits	$	8,852		$	24,930
Accounts receivable	6,938			5,981
Product liability	1,272			1,141
Employee benefits	7,914			7,101
State tax credit carryforwards	4,083			4,867
Other	862			353
Gross deferred tax assets, before valuation allowance	29,921			44,373
Valuation allowance	(2,446		)	(3,061		)
Gross deferred tax assets, after valuation allowance	27,475			41,312

Deferred tax liabilities:
Inventory	297			440
Depreciation	9,131			8,298
	9,428			8,738

Net deferred tax asset	$	18,047		$	32,574

The Company has recorded a valuation allowance related to deferred tax assets for certain state investment tax credit (ITC) carryforwards. Deferred tax assets are reduced by a valuation allowance when, after considering all positive and negative evidence, it is determined that it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. In fiscal 2017, the Company reassessed the valuation allowance related to ITCs and released $0.6 million of the valuation allowance recorded in the prior year.

The gross amount of state tax credit carryforwards related to state ITCs as of April 30, 2017 and 2016 was $6.1 million and $5.8 million, respectively. These credits expire in various years beginning in fiscal 2020. Net of the federal impact and related valuation allowance, the Company recorded $1.6 million and $1.8 million of deferred tax assets related to these credits, as of April 30, 2017 and 2016, respectively. The Company accounts for ITCs under the deferral method, under which the tax benefit from the ITC is deferred and amortized into income tax expense over the book life of the related property. As of April 30, 2017 and 2016, a deferred credit balance of $1.5 million and $1.8 million, respectively, is included in other liabilities on the balance sheet.