
	December 27, 2020			December 29, 2019			December 30, 2018
(In thousands)	Amount		% of Pre-tax	Amount		% of Pre-tax	Amount		% of Pre-tax
Tax at federal statutory rate	$	24,241	21.0	$	34,537	21.0	$	36,979	21.0
State and local taxes, net	3,873		3.4	5,303		3.2	12,335		7.0
Effect of enacted changes in tax laws	—		—	—		—	(1,872)		(1.0)
(Decrease)/increase in uncertain tax positions	(2,509)		(2.2)	(2,427)		(1.5)	2,288		1.3
(Gain)/loss on company-owned life insurance	(635)		(0.6)	(1,662)		(1.0)	449		0.2
Nondeductible expense	800		0.7	1,938		1.2	1,808		1.0
Nondeductible executive compensation	1,271		1.1	(355)		(0.2)	2,135		1.2



Stock-based awards benefit	(7,251)		(6.3)	(6,184)		(3.8)	(1,795)		(1.0)
Deduction for foreign-derived intangible income	(686)		(0.6)	(2,625)		(1.6)	—		—
Research and experimentation credit	(3,892)		(3.4)	(5,672)		(3.4)	—		—
Other, net	(617)		(0.5)	1,641		1.0	(3,696)		(2.1)
Income tax expense	$	14,595	12.6	$	24,494	14.9	$	48,631	27.6


(In thousands)	December 27, 2020		December 29, 2019		December 30, 2018
Current tax expense/(benefit)
Federal	$	21,414	$	16,283	$	31,719
Foreign	905		823		705
State and local	7,453		3,146		10,172
Total current tax expense	29,772		20,252		42,596
Deferred tax expense/(benefit)
Federal	(9,249)		5,588		913

State and local	(5,928)		(1,346)		5,122
Total deferred tax expense	(15,177)		4,242		6,035
Income tax expense	$	14,595	$	24,494	$	48,631

State tax operating loss carryforwards totaled $1.3 million as of December 27, 2020, and $1.6 million as of December 29, 2019. Such loss carryforwards expire in accordance with provisions of applicable tax laws and have remaining lives up to 17 years.


(In thousands)	December 27, 2020		December 29, 2019
Deferred tax assets
Retirement, postemployment and deferred compensation plans	$	103,433	$	113,306
Accruals for other employee benefits, compensation, insurance and other	25,899		25,543

Net operating losses	1,510		1,289
Operating lease liabilities	16,648		16,746
Other	32,664		27,042
Gross deferred tax assets	$	180,154	$	183,926
Valuation allowance	(293)		—
Net deferred tax assets	$	179,861	$	183,926
Deferred tax liabilities
Property, plant and equipment	$	41,832	$	39,494
Intangible assets	7,652		7,596
Operating lease right-of-use assets	14,196		14,309
Other	16,663		7,298
Gross deferred tax liabilities	$	80,343	$	68,697
Net deferred tax asset	$	99,518	$	115,229

We assess whether a valuation allowance should be established against deferred tax assets based on the consideration of both positive and negative evidence using a “more likely than not” standard. In making such judgments, significant weight is given to evidence that can be objectively verified. We evaluated our deferred tax assets for recoverability using a consistent approach that considers our three-year historical cumulative income/(loss), including an assessment of the degree to which any such losses were due to items that are unusual in nature (i.e., impairments of nondeductible goodwill and intangible assets).

We had a valuation allowance totaling $0.3 million as of December 27, 2020, for deferred tax assets primarily associated with net operating losses of a U.S. subsidiary, as we determined these assets were not realizable on a more-likely-than-not basis. We had no valuation allowance as of December 29, 2019.

Income tax benefits related to the exercise or vesting of equity awards reduced current taxes payable by $13.1 million, $11.9 million and $4.8 million in 2020, 2019 and 2018, respectively.

As of December 27, 2020, and December 29, 2019, Accumulated other comprehensive loss, net of income taxes in our Consolidated Balance Sheets and for the years then ended in our Consolidated Statements of Changes in Stockholders’ Equity was net of deferred tax assets of approximately $160 million and $188 million, respectively.


(In thousands)	December 27, 2020		December 29, 2019		December 30, 2018
Balance at beginning of year	$	10,309	$	11,629	$	17,086
Gross additions to tax positions taken during the current year	1,130		1,184		680

Gross additions to tax positions taken during the prior year	133		711		3,019
Gross reductions to tax positions taken during the prior year	(93)		(76)		(8,607)
Reductions from settlements with taxing authorities	(3,814)		(2,637)		—
Reductions from lapse of applicable statutes of limitations	(928)		(502)		(549)
Balance at end of year	$	6,737	$	10,309	$	11,629

The total amount of unrecognized tax benefits that would, if recognized, affect the effective income tax rate was approximately $6 million and $9 million as of December 27, 2020, and December 29, 2019, respectively.

We also recognize accrued interest expense and penalties related to the unrecognized tax benefits within income tax expense or benefit. The total amount of accrued interest and penalties was approximately $1 million and $2 million as of December 27, 2020, and December 29, 2019, respectively. The total amount of accrued interest and penalties was a net benefit of $0.7 million in 2020, a net benefit of $0.6 million in 2019 and a net benefit of $0.7 million in 2018.

With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years prior to 2013. Management believes that our accrual for tax liabilities is adequate for all open audit years. This assessment relies on estimates and assumptions and may involve a series of complex judgments about future events.

It is reasonably possible that certain income tax examinations may be concluded, or statutes of limitation may lapse, during the next 12 months, which could result in a decrease in unrecognized tax benefits of $4.6 million that would, if recognized, impact the effective tax rate.