H. Income Taxes

As of March 31, 2018 and December 30, 2017, the Company had approximately $0.3 million and $0.3 million, respectively, of unrecognized income tax benefits.

The Company’s practice is to classify interest and penalties related to income tax matters in income tax expense. As of March 31, 2018 and December 30, 2017, the Company had $0.0 million and $0.0 million, respectively, accrued for interest and penalties.

In September 2017, the Internal Revenue Service commenced an examination of the Company’s 2015 consolidated corporate income tax return. The examination was still in process as of March 31, 2018. The Company’s state income tax returns remain subject to examination for three or four years depending on the state’s statute of limitations. The Company is being audited by two states as of March 31, 2018. In addition, the Company is generally obligated to report changes in taxable income arising from federal income tax audits.

The following table provides a summary of the income tax benefit for the thirteen weeks ended March 31, 2018 and April 1, 2017:


	Thirteen weeks ended
	March 31, 2018			April 1, 2017
	(in thousands)
Summary of income tax benefit
Tax provision based on net income	$	2,571		$	1,891
Benefit of ASU 2016-09		(2,723	)		(3,562	)

Total income tax benefit	$	(152	)	$	(1,671	)

The Company’s effective tax rate for the thirteen weeks ended March 31, 2018, excluding the impact of ASU 2016-09, decreased to 28.0% from 46.8% for the thirteen weeks ended April 1, 2017 primarily due to the favorable impact of the Tax Cuts and Jobs Act of 2017 and increased income before income tax benefit.