Income Taxes

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



	January 30, 2016			January 31, 2015			February 1, 2014
Current:
Federal	$	19,823		$	20,715		$	34,578
Foreign	18			54			77
State	2,400			1,631			3,643
	22,241			22,400			38,298
Deferred:
Federal	(2,813		)	(19		)	(2,540		)
State	(527		)	447			(701		)
	(3,340		)	428			(3,241		)
Total income tax expense	$	18,901		$	22,828		$	35,057

A breakdown of the Company’s income from continuing operations before income taxes is as follows (in thousands):



	January 30, 2016		January 31, 2015		February 1, 2014
Domestic	$	46,386	$	63,445	$	94,877
Foreign	73		218		309
Total income from continuing operations before income taxes	$	46,459	$	63,663	$	95,186

A reconciliation of income tax expense to the amount computed at the federal statutory rate is as follows for the fiscal years ended January 30, 2016, January 31, 2015, and February 1, 2014 (in thousands):



	January 30, 2016				January 31, 2015					February 1, 2014
Federal taxes at statutory rate	$	16,261	35.0	%	$	22,282		35.0	%	$	33,315		35.0	%
State and local income taxes, net of federal benefit	1,217		2.6		1,350			2.2		1,912			3.0
Other	1,423		3.1		(804		)	(1.3	)	(170		)	(1.2	)
Total income tax expense	$	18,901	40.7	%	$	22,828		35.9	%	$	35,057		36.8	%

During the third quarter of fiscal 2015, the Company discontinued retail operations in Japan. The above information consists of continuing operations only. At the beginning of fiscal 2015, the Company made an election for tax purposes to treat the Japan operations as a branch thereby causing the Japan activity to be taxed in the United States. The final tax accounting regarding Japan was recognized upon the sale of all Japan inventory in fiscal 2016.

Deferred income taxes reflect the net tax effects of temporary differences between the book and tax bases of assets and liabilities. Significant components of deferred tax assets and liabilities were as follows (in thousands):



	January 30, 2016			January 31, 2015
Deferred tax assets:
Compensation and benefits	$	5,761		$	5,070
Inventories	4,855			5,174
Deferred credits from landlords	11,056			9,095
Other	5,162			3,120
Subtotal deferred tax assets	26,834			22,459
Less: valuation allowances	(194		)	(194		)
Total deferred tax assets	26,640			22,265
Deferred tax liabilities:
Property, plant, and equipment	(12,970		)	(12,085		)
Other	(2,307		)	(2,157		)
Total deferred tax liabilities	(15,277		)	(14,242		)
Net deferred tax assets	$	11,363		$	8,023

Uncertain Tax Positions

A reconciliation of the beginning and ending gross amount of unrecognized tax benefits (excluding interest and penalties) for the fiscal years ended January 30, 2016, and January 31, 2015, is as follows (in thousands):



	January 30, 2016		January 31, 2015
Beginning balance	$	3,018	$	3,115
Net (decreases) increases in unrecognized tax benefits as a result of current year activity	81		(97		)
Ending balance	$	3,099	$	3,018

As of January 30, 2016, of the $3.1 million of total unrecognized tax benefits, $2.6 million, which is net of federal benefit, would, if recognized, favorably affect the effective tax rate in future periods. Total unrecognized tax benefits are currently not expected to decrease by a significant amount in the next twelve months. The Company recognized an immaterial amount of interest only, no penalties, related to unrecognized tax benefits in the fiscal years ended January 30, 2016, and January 31, 2015.

The Company files income tax returns in the U.S. federal jurisdiction and in various state and foreign jurisdictions. Income tax returns for calendar year 2012 to present are open for examination in the federal jurisdiction and in significant state jurisdictions. Taxable income/loss in foreign jurisdictions are not material.