Entity information:
INCOME TAXES
Income taxes consist of the following in each fiscal year (in thousands):
 
 
2017
 
2016
 
2015
Current:
 
 
 
 
 
 
Federal
 
$
80,787

 
$
32,276

 
$
59,362

State
 
12,736

 
5,315

 
9,598

 
 
93,523

 
37,591

 
68,960

Deferred:
 
 
 
 
 
 
Federal
 
(9,816
)
 
29,975

 
(2,018
)
State
 
(2,392
)
 
4,998

 
(1,173
)
 
 
(12,208
)
 
34,973

 
(3,191
)
Income tax expense from continuing operations
 
$
81,315

 
$
72,564

 
$
65,769

 
 
 
 
 
 
 
Income tax benefit from discontinued operations
 
$
(1,868
)
 
$
(1,365
)
 
$
(2,410
)

A reconciliation of the federal statutory income tax rate to our effective tax rate for continuing operations is as follows:
 
 
2017
 
2016
 
2015
Computed at federal statutory rate
 
35.0
%
 
35.0
%
 
35.0
%
State income taxes, net of federal tax benefit
 
3.8

 
3.7

 
3.7

Benefit of jobs tax credits, net of valuation allowance
 
(0.4
)
 
(1.0
)
 
(1.1
)
(Benefit) expense related to COLIs
 
(1.0
)
 
(1.3
)
 
0.3

Other, net
 
(0.4
)
 
0.1

 
(1.0
)
 
 
37.0
%
 
36.5
%
 
36.9
%


The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at each fiscal year-end are presented below (in thousands):
 
 
2017
 
2016
Deferred tax assets:
 
 
 
 
Accrued defined benefit pension and postretirement benefits
 
$
67,471

 
$
89,253

Impairment
 
23,986

 
21,904

Accrued insurance
 
14,708

 
14,378

Tax loss and tax credit carryforwards
 
11,860

 
13,624

Lease commitments related to closed or refranchised locations
 
10,337

 
7,440

Share-based compensation
 
9,715

 
9,091

Interest rate swaps
 
8,855

 
18,483

Leasing transactions
 
7,532

 
11,144

Other reserves and allowances
 
2,843

 
1,935

Deferred income
 
1,898

 
1,887

Accrued vacation pay expense
 
1,835

 
2,137

Accrued incentive compensation
 
1,021

 
5,536

Other, net
 
5,185

 
3,876

Total gross deferred tax assets
 
167,246

 
200,688

Valuation allowance
 
(8,507
)
 
(11,365
)
Total net deferred tax assets
 
158,739

 
189,323

Deferred tax liabilities:
 
 
 
 
Intangible assets
 
(33,448
)
 
(31,827
)
Property and equipment, principally due to differences in depreciation
 
(25,077
)
 
(38,859
)
Other
 
(1,519
)
 
(1,050
)
Total gross deferred tax liabilities
 
(60,044
)
 
(71,736
)
Net deferred tax assets
 
$
98,695

 
$
117,587



Deferred tax assets as of October 1, 2017 include state net operating loss carry-forwards of approximately $66.5 million expiring at various times between 2018 and 2037. At October 1, 2017 we recorded a valuation allowance of $8.5 million related to losses and state tax credits, which decreased from the $11.4 million at October 2, 2016 primarily due to the release of the valuation allowance on state tax credits. We believe that it is more likely than not that these net operating loss and credit carry-forwards will not be realized and that the remaining deferred tax assets will be realized through future taxable income or alternative tax strategies.
 
The major jurisdictions in which the Company files income tax returns include the United States and states in which we operate that impose an income tax. The federal statutes of limitations have not expired for fiscal years 2014 and forward. The statutes of limitations for California and Texas, which constitute the Company’s major state tax jurisdictions, have not expired for fiscal years 2013 and forward and 2012 and forward, respectively.