Income Taxes

The components of the provision for income taxes are as follows for the fiscal periods ended (in thousands):



	2015		2014			2013
Current:
Federal	$	164,165	$	187,735		$	156,177
State	27,076		30,340			27,769
	191,241		218,075			183,946
Deferred:
Federal	8,198		(5,740		)	23,499
State	1,045		(519		)	1,064
	9,243		(6,259		)	24,563
Total provision	$	200,484	$	211,816		$	208,509

The provision for income taxes differs from the amounts computed by applying the federal statutory rate as follows for the following periods:



	2015		2014		2013
Federal statutory rate	35.0	%	35.0	%	35.0	%
State tax, net of federal benefit	3.5	%	3.1	%	3.5	%
Valuation allowance	(0.1	)%	—	%	(0.4	)%
Other permanent items	(0.6	)%	—	%	0.1	%
Effective income tax rate	37.8	%	38.1	%	38.2	%

Components of deferred tax assets (liabilities) consist of the following as of the fiscal periods ended (in thousands):



	2015			2014
Inventory	$	45,442		$	42,163
Employee benefits	37,295			34,167
Deferred rent	36,485			31,234
Stock-based compensation	26,843			25,913
Gift cards	15,884			13,691
Other accrued expenses not currently deductible for tax purposes	9,532			5,520
Capital loss carryforward	5,304			5,608
Non income-based tax reserves	5,274			8,174
Deferred revenue currently taxable	4,957			4,837
Store closing expense	4,569			4,984
Uncertain income tax positions	4,253			3,524
Insurance	2,280			2,432
Other	179			77
Valuation allowance	(5,304		)	(5,608		)
Total deferred tax assets	192,993			176,716
Property and equipment	(152,287		)	(134,057		)
Inventory	(35,095		)	(27,386		)
Intangibles	(5,900		)	(6,319		)
Total deferred tax liabilities	(193,282		)	(167,762		)
Net deferred tax (liability) asset	$	(289	)	$	8,954

In 2015, of the $0.3 million net deferred tax liability, $6.2 million is included within other long-term assets and $6.5 million is included within long-term liabilities on the Consolidated Balance Sheets. In 2014, the $9.0 million net deferred tax asset was included in its entirety within other long-term assets.

As of January 30, 2016, deferred income taxes have not been provided on accumulated, but undistributed earnings, of $31.6 million related to the Company's international subsidiaries. It is the Company's intention to permanently reinvest these earnings outside the United States. The amount of the unrecognized tax liability related to the undistributed earnings as of January 30, 2016 is estimated to be $10.9 million.

As of January 30, 2016, the total liability for uncertain tax positions, including related interest and penalties, was approximately $12.7 million.

The following table represents a reconciliation of the Company's total balance of unrecognized tax benefits, excluding interest and penalties (in thousands):



	2015			2014			2013
Beginning of fiscal year	$	8,376		$	7,507		$	10,670
Increases as a result of tax positions taken in a prior period	1,101			124			1,651
Decreases as a result of tax positions taken in a prior period	—			—			(2,240		)
Increases as a result of tax positions taken in the current period	1,193			1,057			985
Decreases as a result of settlements during the current period	(63		)	(312		)	(3,559		)
Reductions as a result of a lapse of statute of limitations during the current period	(823		)	—			—
End of fiscal year	$	9,784		$	8,376		$	7,507

The balance at January 30, 2016 includes $6.4 million of unrecognized tax benefits that would impact our effective tax rate if recognized. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense.

As of January 30, 2016, the liability for uncertain tax positions includes $2.9 million for the accrual of interest and penalties. During fiscal 2015, 2014 and 2013, the Company recorded $1.2 million, $0.3 million and $0.9 million, respectively, for the accrual of interest and penalties in the Consolidated Statements of Income. The Company has federal, state and local examinations currently ongoing. It is possible that these examinations may be resolved within 12 months. Due to the potential for resolution of these examinations, and the expiration of various statutes of limitation, it is reasonably possible that $5.7 million of the Company's gross unrecognized tax benefits and interest at January 30, 2016 could be recognized within the next 12 months. The Company does not anticipate that changes in its unrecognized tax benefits will have a material impact on the Consolidated Statements of Income during fiscal 2016.

The Company participates in the Internal Revenue Service ("IRS") Compliance Assurance Program ("CAP"). As part of the CAP, tax years are audited on a contemporaneous basis so that all or most issues are resolved prior to the filing of the tax return. The IRS has completed examinations of 2014 and all prior tax years. The Company is no longer subject to examination in any of its major state jurisdictions for years prior to 2008.