	Current			Deferred			Total
Fiscal Year Ended June 30, 2020
Federal	$	(286	)	$	306		$	20
State and local		196			5			201
Total	$	(90	)	$	311		$	221
Fiscal Year Ended June 30, 2019
Federal	$	(286	)	$	303		$	17
State and local		225			4			229
Total	$	(61	)	$	307		$	246
Fiscal Year Ended June 30, 2018
Federal	$	—		$	(568	)	$	(568	)
State and local		426			3			429
Total	$	426		$	(565	)	$	(139	)

A reconciliation between income taxes computed at the statutory federal income tax rate of 21% in fiscal 2020 and 2019, the blended statutory federal income tax rate of 27.2% in fiscal 2018 and income taxes recognized in the Consolidated Statements of Operations was as follows (in thousands):

	Fiscal Year Ended
	June 30,
	2020			2019			2018
Federal income tax benefit computed at statutory rate		(34,883	)	$	(2,561	)	$	(6,005	)
State income taxes, net of related federal tax benefit		159			181			314
Increase in federal valuation allowance		34,586			2,291			5,182
Federal tax credits		(91	)		(294	)		(200	)
Stock option expiration/deficiencies		620			548			586
Federal tax rate change		—			—			(19	)
Other, net		(170	)		81			3
Provision/(benefit) for income taxes	$	221		$	246		$	(139	)

Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities for the fiscal years ended June 30, 2020 and 2019, all of which are classified as non-current in our Consolidated Balance Sheets, were comprised of the following (in thousands):

	June 30,
	2020			2019
Deferred tax assets:
Other payroll and benefits	$	189		$	2,093
Inventory reserves		1,516			172
Self-insurance reserves		2,620			2,526
Share-based compensation		1,648			1,968
Other current assets		1,288			2,424
Deferred rent		—			5,895
Operating lease liabilities		87,073			—
Property and equipment		3,208			—
Disallowed interest expense		942			—
Net operating loss and tax credits		38,096			27,358
Other noncurrent assets		191			10
Total gross deferred tax assets	$	136,771		$	42,446
Deferred tax liabilities:
Inventory costs	$	4,371		$	5,609
Prepaid supplies		1,174			1,329
Operating lease - right of use		63,694			—
Property and equipment		—			7,761
Total gross deferred tax liabilities		69,239			14,699
Valuation allowance		(67,626	)		(27,531	)
Net deferred tax asset/(liability)	$	(94	)	$	216

During fiscal 2013, we established a valuation allowance related to deferred tax assets. In assessing whether a deferred tax asset would be realized, we considered whether it is more likely than not that some portion or all of the deferred tax assets would not be realized. We considered the reversal of existing taxable temporary differences, projected future taxable income, tax planning strategies and loss carry back potential in making this assessment. In evaluating the likelihood that sufficient future earnings would be available in the near future to realize the deferred tax assets, we considered our cumulative losses over three years including the then-current year. Based on the foregoing, we concluded that a valuation allowance was necessary, and based on our results since fiscal 2013, we have continued to conclude that a full tax valuation allowance is necessary. In fiscal 2018, as a result of the TCJA enactment, the federal component of deferred taxes was remeasured at 21%, the tax rate at which they are expected to turn in future years. The valuation allowance offsetting these deferred taxes was reduced accordingly. The valuation allowance previously recorded against our AMT credits of $571,000 was removed to reflect that they will be refunded pursuant to the TCJA beginning on our fiscal year 2019 tax return. Further, federal deferred tax liabilities related to the amortization of trademarks for tax purposes, which are not considered for purposes of the valuation allowance computation, were reduced by $21,000 during fiscal 2019, resulting in a tax benefit of that amount. In fiscal 2020, the deferred tax asset valuation allowance increased $40.1 million, due to our operating loss for fiscal 2020. In March 2020, Congress passed the CARES Act. Pursuant to this legislation, the remaining AMT credits of $286,000 were reclassified from deferred tax assets to a current tax receivable in fiscal 2020.

We have federal net operating loss carryforwards of $139.6 million. These losses can only be carried forward and utilized to offset future taxable income. Of this carryforward amount, $73.7 million will expire in fiscal years 2033 through 2037 if not utilized before then. The remaining $65.9 million can be carried forward indefinitely, due to provisions of the TCJA. Additionally, we have tax effected state net operating loss carryforwards of $5.4 million, which will expire throughout fiscal years 2020 through 2040 filings, if not utilized before then.

Accounting for Uncertainty in Income Taxes. The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years before fiscal 2014. The Internal Revenue Service has concluded an examination of the Company for years ending on or before June 30, 2010.

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

Balance at June 30, 2017	$	147
Additions for tax positions of prior years		—
Reductions for lapse of statute of limitations		—
Balance at June 30, 2018	$	147
Additions for tax positions of prior years		—
Reductions for lapse of statute of limitations		—
Balance at June 30, 2019	$	147
Additions for tax positions of prior years		—
Reductions for lapse of statute of limitations		—
Balance at June 30, 2020	$	147

The balance of taxes, interest, and penalties at June 30, 2020, that if recognized, would affect the effective tax rate is $311,000. We classify and recognize interest and penalties accrued related to unrecognized tax benefits in income tax expense. During the fiscal years ended June 30, 2020, 2019 and 2018, we recognized $11,000, $9,000, and $7,000 in interest, respectively. No interest or penalties were paid in the tax years ended June 30, 2020, 2019, and 2018.

We do not anticipate that the total amount of unrecognized tax benefits will significantly increase or decrease the effective tax rate within 12 months of June 30, 2020.