Income Taxes

Deferred income taxes reflect the net tax effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon generation of future taxable income during the periods in which temporary differences representing net future deductible amounts become deductible.

As of January 30, 2016, no valuation allowance has been provided for net deferred tax assets as management believes that it is more likely than not that the Company will realize all deferred tax assets as of January 30, 2016.

The components of the income tax expense are as follows (in thousands):



	Fiscal Year
	2015			2014			2013
Current:
Federal	$	30,976		$	28,480		$	21,718
State	4,626			3,218			3,172
	35,602			31,698			24,890
Deferred:
Federal	349			(2,544		)	(3,977		)
State	(975		)	(519		)	(1,097		)
	(626		)	(3,063		)	(5,074		)
Income tax expense	$	34,976		$	28,635		$	19,816

The reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate is as follows:



	Fiscal Year
	2015		2014		2013
Statutory federal tax rate	35.0	%	35.0	%	35.0	%
State taxes, net of federal benefit	2.6		2.2		2.6
Other	0.1		0.2		0.5
	37.7	%	37.4	%	38.1	%

The effective tax rate for fiscal 2015 compared to fiscal 2014 was primarily impacted by discrete items and changes in pre-tax income across state jurisdictions. The effective tax rate for fiscal 2014 compared to fiscal 2013 was primarily impacted by changes in the mix of pretax income across state jurisdictions and the Company's operating entities as a result of the Restructuring in fiscal 2013.

The tax effects of temporary differences that give rise to deferred tax assets and liabilities are (in thousands):



	January 30, 2016			January 31, 2015
	January 30, 2016			January 31, 2015
Deferred tax assets:
Inventories	$	9,082		$	6,858
Deferred revenue	297			189
Accrued bonus	1,820			915
Deferred rent	19,733			17,250
Other	5,522			2,512
Deferred tax assets	36,454			27,724
Deferred tax liabilities:
Property and equipment	(26,780		)	(18,912		)
Other	(1,167		)	(931		)
Deferred tax liabilities	(27,947		)	(19,843		)
	$	8,507		$	7,881

Total income taxes paid during fiscal 2015, fiscal 2014, and fiscal 2013 were $36.9 million, $21.6 million and $25.0 million, respectively.

The Company had no material accrual for uncertain tax positions or interest or penalties related to income taxes on the Company’s balance sheets as of January 30, 2016 and January 31, 2015, and has not recognized any material uncertain tax positions or interest and/or penalties related to income taxes in the consolidated statements of operations for fiscal 2015, fiscal 2014, or fiscal 2013.

The Company files a federal income tax return as well as state tax returns. The Company’s U.S. federal income tax returns for the fiscal years ended February 1, 2014 and thereafter remain subject to examination by the U.S. Internal Revenue Service (“IRS”). State returns are filed in various state jurisdictions, as appropriate, with varying statutes of limitation and remain subject to examination for varying periods up to 3 to 4 years depending on the state.