Entity information:
(
9
) Income Taxes
 
The components of the provision for income taxes are as follows:
 
   
Year Ended
  
   
September 30,
    
October 1,
    
October 3,
  
(Dollars in thousands)
  
2017
    
2016
    
2015
  
Current:
                        
Federal
   $
8,269
     $
17,075
     $
10,149
  
State
    
848
      
1,434
      
772
  
     
9,117
      
18,509
      
10,921
  
Deferred:
                        
Federal
    
2,455
      
396
      
222
  
State
    
48
      
140
      
111
  
     
2,503
      
536
      
333
  
                         
Income taxes
   $
11,620
     $
19,045
     $
11,254
  
                         
Effective income tax rate
    
34.0
 %    
33.8
 %    
34.1
 %
 
The
reconciliation between income taxes computed at the federal statutory rate and the provision for income taxes is as follows:
 
   
Year Ended
  
(Dollars in thousands)
  
September 30, 2017
    
October 1, 2016
    
October 3, 2015
  
Provision for income taxes at federal statutory rate
   $
11,959
      
35.0
 %   $
19,701
      
35.0
 %   $
11,537
      
35.0
 %
Qualified production activities deduction
    
(768
 )    
(2.2
 )    
(1,596
 )    
(2.8
 )    
(1,005
 )    
(3.0
 )
Valuation allowance
    
(29
 )    
(0.1
 )    
(213
 )    
(0.4
 )    
(55
 )    
(0.2
 )
State income taxes, net of federal tax benefit
    
598
      
1.8
      
1,093
      
1.9
      
612
      
1.9
  
Other, net
    
(140
 )    
(0.5
 )    
60
      
0.1
      
165
      
0.4
  
Provision for income taxes
   $
11,620
      
34.0
 %   $
19,045
      
33.8
 %   $
11,254
      
34.1
 %
 
The components of deferred tax assets and liabilities are as follows:
 
   
September 30,
    
October 1,
  
(In thousands)
  
2017
    
2016
  
Deferred tax assets:
  
 
 
 
  
 
 
 
Defined benefit plans
   $
3,556
     $
3,497
  
Accrued expenses and asset reserves
    
3,069
      
2,942
  
Stock-based compensation
    
1,907
      
1,652
  
State net operating loss carryforwards and tax credits
    
284
      
354
  
Goodwill, amortizable for tax purposes
    
-
      
277
  
Valuation allowance
    
(251
 )    
(280
 )
Deferred tax assets
    
8,565
      
8,442
  
                 
Deferred tax liabilities:
  
 
 
 
  
 
 
 
Plant and equipment
    
(15,093
 )    
(12,915
 )
Prepaid insurance and other reserves
    
(1,575
 )    
(999
 )
Deferred tax liabilities
    
(16,668
 )    
(13,914
 )
Net deferred tax liability
   $
(8,103
 )   $
(5,472
 )
 
As of
September 30, 2017,
we recorded a non-current deferred tax liability (net of valuation allowance) of
$8.1
million in other liabilities on our consolidated balance sheet. As of
October 1, 2016,
we recorded a non-current deferred tax liability (net of valuation allowance) of
$5.5
million in other liabilities on our consolidated balance sheet. We have
$7.4
million of state net operating loss carryforwards  (“NOLs”) that begin to expire in
2018,
but principally expire between
2018
and
2031.
We have also recorded deferred tax assets for various state tax credits of
$46,000,
which will begin to expire in
2019
and principally expire between
2019
and
2020.
 
The realization of our deferred tax assets is entirely dependent upon our ability to generate future taxable income in applicable jurisdictions. GAAP requires that we periodically assess the need to establish a valuation allowance against our deferred tax assets to the extent we
no
longer believe it is more likely than
not
that they will be fully utilized. As of
September 30, 2017,
we had recorded a valuation allowance of
$251,000
pertaining to various state NOLs and tax credits that were
not
expected to be utilized. The valuation allowance is subject to periodic review and adjustment based on changes in facts and circumstances and would be reduced should we utilize the state net operating loss carryforwards against which an allowance had previously been provided or determine that such utilization is more likely than
not.
The
$29,000
decrease in the valuation allowance during
2017
is primarily due to the reduction in enacted state tax rates and the expiration of state NOLs for which an allowance had been previously recorded.
 
As of
September 30, 2017,
we had
no
material, known tax exposures that required the establishment of contingency reserves for uncertain tax positions.
 
We classify
interest and penalties related to unrecognized tax benefits as part of income tax expense. There were
no
interest and penalties related to unrecognized tax benefits incurred during
2017,
2016
and
2015.
    
 
We
file U.S. federal income tax returns as well as state and local income tax returns in various jurisdictions. Federal and various state tax returns filed subsequent to
2012
remain subject to examination.