
	Fiscal Year Ended
	January 30, 2021		January 25, 2020		January 26, 2019
Current:
Federal	$	42,794	$	8,389	$	9,507
Foreign	(2)		(56)		2,204
State	10,273		3,727		4,897
	53,065		12,060		16,608
Deferred:
Federal	(24,380)		7,257		8,706
Foreign	—		568		(446)
State	(3,805)		1,436		263
	(28,185)		9,261		8,523
Provision for income taxes	$	24,880	$	21,321	$	25,131

In response to the COVID-19 pandemic, the Families First Coronavirus Response Act (“FFCR Act”) and the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) were signed into law on March 17, 2020 and on March 27, 2020, collectively the “Stimulus Bills.” The Stimulus Bills include tax provisions relating to refundable payroll tax credits, the deferral of employer’s social security payments, and modifications to net operating loss (“NOL”) carryback provisions. During fiscal 2021, we recognized an income tax benefit of $2.6 million from a tax loss carryback technical correction under the CARES Act.

Our effective income tax rate differs from the statutory rate primarily due to the difference in income tax rates from state to state where work was performed, non-deductible and non-taxable items, and tax credits recognized. Additionally, during fiscal 2021, our effective tax rate was impacted by the $53.3 million goodwill impairment charge which was mostly non-deductible for income tax purposes, and the benefit from the $2.6 million tax loss carryback technical correction under the

CARES Act. A reconciliation of the amount computed by applying our statutory income tax rate to pre-tax income to the total tax provision is as follows (dollars in thousands):


	Fiscal Year Ended
	January 30, 2021		January 25, 2020		January 26, 2019
Statutory rate applied to pre-tax income	$	12,436	$	16,495	$	18,488
State taxes, net of federal tax benefit	4,344		4,282		4,004
Tax Reform and related effects	(2,631)		1,093		—
Non-deductible goodwill impairment	10,411		—		—
Compensation limitation	2,632		82		884
Non-deductible and non-taxable items, net	808		1,351		1,549
Federal deficiency (benefit) of vesting and exercise of share-based awards	(436)		875		(200)
Tax credits	(3,145)		(2,801)		(1,835)
Change in accruals for uncertain tax positions	1,189		891		464
Change in valuation allowance	1		722		291
Effect of rates other than statutory	(4)		(197)		1,537
Other items, net	(725)		(1,472)		(51)
Provision for income taxes	$	24,880	$	21,321	$	25,131

During fiscal 2020 and 2019, our effective income tax rate differed from the statutory rate primarily as the result of the impact of non-deductible and non-taxable items, tax credits recognized, certain tax effects from the vesting and exercise of share-based awards, and impacts from Tax Reform.

The deferred tax provision represents the change in the deferred tax assets and the liabilities representing the tax consequences of changes in the amount of temporary differences and changes in tax rates during the year. The significant components of deferred tax assets and liabilities consisted of the following (dollars in thousands):


	January 30, 2021		January 25, 2020
Deferred tax assets:
Insurance and other reserves	$	23,513	$	22,489
Leases	16,119		18,002
CARES Act tax deferral	9,588		—
Stock-based compensation	3,198		2,961
Allowance for doubtful accounts and reserves	1,615		2,342
Net operating loss carryforwards	1,401		1,487
Other	3,238		3,098
Total deferred tax assets	58,672		50,379
Valuation allowance	(1,139)		(1,126)
Deferred tax assets, net of valuation allowance	$	57,533	$	49,253
Deferred tax liabilities:
Property and equipment	$	57,287	$	76,385
Goodwill and intangibles	30,395		29,563
Leases	16,310		17,856
Other	1,191		976
Deferred tax liabilities	$	105,183	$	124,780

Net deferred tax liabilities	$	47,650	$	75,527

The valuation allowance above reduces the deferred tax asset balances to the amount that we have determined is more likely than not to be realized. The valuation allowance primarily relates to immaterial foreign net operating loss carryforwards and immaterial state net operating loss carryforwards, which generally begin to expire in fiscal 2022 and fiscal 2023, respectively.

As of January 30, 2021 and January 25, 2020, we had total unrecognized tax benefits of $5.9 million and $4.7 million, respectively, resulting from uncertain tax positions. Our effective tax rate will be reduced during future periods if it is determined these unrecognized tax benefits are realizable. We had approximately $1.9 million and $1.7 million accrued for the payment of interest and penalties as of January 30, 2021 and January 25, 2020, respectively. Interest expense related to unrecognized tax benefits for the Company was not material during fiscal 2021, fiscal 2020, and fiscal 2019.


	Fiscal Year Ended
	January 30, 2021		January 25, 2020		January 26, 2019
Balance at beginning of year	$	4,742	$	3,786	$	3,322
Additions based on tax positions related to the fiscal year	1,075		696		444
Additions based on tax positions related to prior years	530		358		77
Reductions related to the expiration of statutes of limitation	(407)		(98)		(57)
Balance at end of year	$	5,940	$	4,742	$	3,786