11. INCOME TAXES

A summary of our income tax provision and related effective tax rates follows:


	1^st Quarter			1^st Quarter
	2017			2016
Income Tax provision:
Current	$	4,786		$	426
Deferred		13,758			1,013

Total	$	18,544		$	1,439

Effective tax rate		39.7	%		8.0	%

Income taxes are accounted for in accordance with authoritative guidance for accounting for income taxes under which deferred tax assets and liabilities are determined based on the difference between their financial statement basis and their tax basis, using enacted rates in effect for the year in which the differences are expected to reverse. We have favorable tax attributes, such as significant tax-deductible depreciation and amortization and U.S. federal and state net operating losses which result in minimal cash paid for income taxes.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities and projected future taxable income in making this assessment. At each reporting date, we consider both negative and positive evidence that impacts the assessment of the realization of deferred tax assets. During the periods through 1^st Quarter 2016, we maintained a full valuation allowance against our deferred tax assets because the negative evidence, at that time, outweighed the positive evidence, such that management concluded that it was not more likely than not that the deferred tax assets were realizable during those periods. Principal among the negative evidence were the sustained history of cumulative tax losses, in part related to fluctuations in commodity costs and our high degree of financial leverage at those times. Although we reported pre-tax income in fiscal 2015, we continued to provide for a full valuation allowance against our deferred tax assets through April 2, 2016 because we reported significant pre-tax losses in previous historical periods.

In the second quarter of Fiscal 2016, we continued the trend of realizing pre-tax income that began in the first quarter of fiscal 2015 and our cumulative income at that time became positive. In addition, our forecasts for the remainder of Fiscal 2016 and Fiscal 2017 indicated continued pre-tax income. Additionally, we were able to refinance our debt during Fiscal 2016 on more favorable terms, which resulted in significant annual savings. We also considered forecasts of future taxable income and evaluated the utilization of tax attributes prior to their expiration. After considering these factors, we determined that the positive evidence outweighed the negative evidence and concluded during the second quarter of Fiscal 2016, that it was more likely than not that our deferred tax assets were realizable. As a result, we made the determination to release the full valuation allowance of $109,690 in Fiscal 2016. Of the amount released in Fiscal 2016, $73,784 was released through the second quarter, $13,922 in the third quarter and the remainder in the fourth quarter.

Our effective tax rate for 1^st Quarter 2017 differs from the expected federal rate of 35% due primarily to the effect of state income taxes. Our effective tax rate for 1^st Quarter 2016 differs from the expected federal rate of 35% in part due to the utilization of deferred tax assets and the effect of valuation allowances.

We file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. As of April 1, 2017, our federal and state tax returns for fiscal 2011 through fiscal 2015 remain open under the relevant statutes.

We believe that substantially all tax positions taken and expected to be taken and reflected in the accompanying Condensed Consolidated Financial Statements are more likely than not to be sustained, based upon their technical merits, upon examination. As a result, no material amounts were recorded to reverse the impact of tax benefits as of April 1, 2017 or April, 2, 2016.