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 28, 2017, 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 28, 2017.

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



	Fiscal Year
	2016			2015			2014
Current:
Federal	$	40,053		$	30,976		$	28,480
State	4,900			4,626			3,218
	44,953			35,602			31,698
Deferred:
Federal	(1,772		)	349			(2,544		)
State	(760		)	(975		)	(519		)
	(2,532		)	(626		)	(3,063		)
Income tax expense	$	42,421		$	34,976		$	28,635

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



	Fiscal Year
	2016		2015		2014
Statutory federal tax rate	35.0	%	35.0	%	35.0	%
State taxes, net of federal benefit	2.4		2.6		2.2
Other	(0.3	)	0.1		0.2
	37.1	%	37.7	%	37.4	%

The effective tax rate for fiscal 2016 compared to fiscal 2015 was primarily impacted by discrete items. The effective tax rate for fiscal 2015 compared to fiscal 2014 was primarily impacted by discrete items and changes in the pre-tax income across state jurisdictions.

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



	January 28, 2017			January 30, 2016
	January 28, 2017			January 30, 2016
Deferred tax assets:
Inventories	$	10,223		$	9,082
Deferred revenue	416			297
Accrued bonus	2,465			1,820
Deferred rent	22,753			19,733
Other	6,999			5,522
Deferred tax assets	42,856			36,454
Deferred tax liabilities:
Property and equipment	(30,349		)	(26,780		)
Other	(1,468		)	(1,167		)
Deferred tax liabilities	(31,817		)	(27,947		)
	$	11,039		$	8,507

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 28, 2017 and January 30, 2016, 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 2016, fiscal 2015, or fiscal 2014.

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. 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 three to four years depending on the state.