Entity information:
Income Taxes
Income (loss) before income taxes by country consists of the following amounts:
 
For fiscal years
 
2017
 
2016
 
2015
United States
$
2,377

 
$
(56,184
)
 
$
14,533

Vietnam
1,124

 
364

 
38

Canada
(257
)
 
321

 
384

 
$
3,244

 
$
(55,499
)
 
$
14,955


Income taxes consists of the following components:
 
For fiscal years
 
2017
 
2016
 
2015
Current:
 
 
 
 
 
United States
$
1,050

 
$
544

 
$
4,317

Vietnam
112

 
130

 
6

Canada
—

 
—

 
15

State and local
135

 
672

 
501

 
1,297

 
1,346

 
4,839

Deferred:
 
 
 
 
 
United States
60

 
(16,133
)
 
465

Vietnam
—

 
(8
)
 
—

Canada
(32
)
 
141

 
(1,055
)
State and local
602

 
(2,562
)
 
(283
)
 
630

 
(18,562
)
 
(873
)
 
$
1,927

 
$
(17,216
)
 
$
3,966


The consolidated effective income tax rate differs from the statutory U.S. federal tax rate for the following reasons and by the following percentages: 
 
For fiscal years
 
2017
 
2016
 
2015
Statutory U.S. federal income tax rate
35.0
 %
 
35.0
 %
 
35.0
 %
Significant increases (reductions) resulting from:
 
 
 
 
 
Changes in valuation allowance
(8.1
)
 
—

 
(7.5
)
Expiration of capital loss
8.1

 
—

 
—

Domestic production activities deduction
(2.9
)
 
0.3

 
(2.7
)
Goodwill impairment
—

 
(8.3
)
 
—

Foreign tax rate differences
(4.9
)
 
0.2

 
(0.2
)
State and local income taxes, net of federal benefit
14.5

 
2.7

 
2.7

Research and development tax credit
(2.4
)
 
1.4

 
—

Audits
(2.2
)
 
(0.3
)
 
—

Provision to return true-up
18.2

 
—

 
—

Other
4.1

 
—

 
(0.8
)
Effective income tax rate
59.4
 %
 
31.0
 %
 
26.5
 %

Significant components of deferred income tax assets and liabilities are as follows:
 
July 2,
2017
 
July 3,
2016
Deferred tax assets:
 
 
 
Goodwill
$
15,118

 
$
17,258

Environmental remediation
1,677

 
1,953

Inventories
3,788

 
4,553

Employment and compensation accruals
1,287

 
1,595

Capital loss carryover
—

 
263

State tax carryovers
212

 
213

Canadian tax carryovers
898

 
933

Pension asset
313

 
450

Intangible assets
3,881

 
2,042

Other
2,539

 
1,866

Deferred tax assets
29,713

 
31,126

Less valuation allowance
—

 
(263
)
Deferred tax assets, net
29,713

 
30,863

Deferred tax liabilities:
 
 
 
Property, plant and equipment
(3,091
)
 
(2,935
)
Other
(1,729
)
 
(2,144
)
Deferred tax liabilities
(4,820
)
 
(5,079
)
Net deferred tax assets
$
24,893

 
$
25,784


In preparing the Company's consolidated financial statements, management has assessed the likelihood that its deferred income tax assets will be realized from future taxable income. In evaluating the ability to recover its deferred income tax assets, management considers all available evidence, positive and negative, including the Company's operating results, ongoing tax planning and forecasts of future taxable income on a jurisdiction by jurisdiction basis. A valuation allowance is established if it is determined that it is more likely than not that some portion or all of the net deferred income tax assets will not be realized. Management exercises significant judgment in determining the Company's income tax expense, its deferred income tax assets and liabilities and its future taxable income for purposes of assessing its ability to utilize any future tax benefit from its deferred income tax assets.
Although management believes that its tax estimates are reasonable, the ultimate tax determination involves significant judgments that could become subject to audit by tax authorities in the ordinary course of business. As of each reporting date management considers new evidence, both positive and negative, that could impact management's view with regards to future realization of deferred tax assets.
The Company has deferred tax assets of $212 and $898 related to state net operating losses and Canadian net operating losses which will both expire beginning in 2029. For financial reporting purposes, valuation allowances related to capital loss carryovers and state income tax carryovers were $0 and $263 as of July 2, 2017 and July 3, 2016, respectively. The capital loss carryover expired in fiscal year 2017, and therefore, the balance and associated valuation allowance was removed from the total deferred tax assets as of July 2, 2017.
The Company's income tax returns are subject to audit by federal, state and local governments. These returns could be subject to material adjustments or differing interpretations of the tax laws. Fiscal years 2013 through 2017 remain open to examination by various tax authorities. The Company is currently undergoing an examination by the Internal Revenue Service, with any proposed adjustments not being anticipated to be material at this time.
A portion of our operating income is earned outside of the United States. Earnings in Vietnam are deemed to be indefinitely reinvested in foreign jurisdictions while earnings in Canada are not deemed to be indefinitely reinvested. The Company currently does not intend or foresee a need to repatriate these funds from jurisdictions for which it asserts indefinite reinvestment. We expect existing domestic cash and short-term investments and cash flows of operations to continue to be sufficient to fund our domestic operating activities and cash commitments for investing and financing activities, such as dividends, debt repayment, capital expenditures, for at least the next 12 months and thereafter for the foreseeable future.