Income Taxes

The components of income tax expense for fiscal years 2019, 2018 and 2017 were as follows (in thousands):



	Fiscal Year Ended
	February 1, 2020			February 2, 2019		February 3, 2018
Current:
Federal	$	11,211		$	5,818	$	6,236
State	3,238			2,153		1,304
	14,449			7,971		7,540
Deferred:
Federal	(4,704		)	760		2,436
State	(1,011		)	119		533
	(5,715		)	879		2,969
Total income tax expense	$	8,734		$	8,850	$	10,509

A reconciliation of income tax expense to the amount computed at the federal statutory rate for fiscal years 2019, 2018 and 2017 is as follows (in thousands):



	Fiscal Year Ended
	February 1, 2020			February 2, 2019			February 3, 2018
Federal taxes at statutory rate	$	6,585		$	7,097		$	8,529
State and local income taxes, net of federal benefit	1,759			1,795			1,216
Tax reform impact	—			—			491
Stock compensation discrete items (1)	527			(39		)	231
Return to provision adjustments	(8		)	(108		)	124
Other	(129		)	105			(82		)
Total income tax expense	$	8,734		$	8,850		$	10,509

(1)

This amount includes the impact of discrete items related to the expiration of stock options, exercises of stock options and the settlement of restricted stock that are recorded to income tax expense which represents share-based compensation cost previously recognized by us that was greater than the deduction allowed for income tax purposes based on the price of our common stock on the date of expiration, exercise or vesting.

Deferred income taxes reflect the net tax effects of: (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes; and (b) operating loss and tax credit carry-forwards. We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. Significant components of deferred tax assets and liabilities as of February 1, 2020 and February 2, 2019 were as follows (in thousands):



	February 1, 2020			February 2, 2019
Deferred tax assets:
Lease Liability	$	81,144		$	—
Deferred rent	—			3,446
Share-based compensation	1,487			1,841
Inventories	1,974			1,628
Accrued expenses	1,344			985
Compensation and benefits	472			426
Deferred revenue	128			417
Other	143			—
Total deferred tax assets	86,692			8,743
Deferred tax liabilities:
Lease Asset	(70,569		)	—
Property and equipment	(8,113		)	(6,133		)
Prepaid expenses	(932		)	(878		)
Marketable securities	(79		)	(84		)
Other	—			(369		)
Total deferred tax liabilities	(79,693		)	(7,464		)
Net deferred tax asset	$	6,999		$	1,279

Deferred tax assets are included in “Other assets" in the accompanying Consolidated Balance Sheets.

As of February 1, 2020 and February 2, 2019, we had approximately $0.1 million and $0.1 million, respectively of California Enterprise Zone credit carryovers. These credits will begin to expire during fiscal year 2022 if not utilized.

Uncertain Tax Positions

As of February 1, 2020 and February 2, 2019, there were no material unrecognized tax positions. We do not anticipate that there will be a material change in the balance of the unrecognized tax positions in the next 12 months. Any interest and penalties related to uncertain tax positions are recorded in income tax expense. We did not recognize any interest or penalties related to unrecognized tax positions during fiscal years 2019, 2018 and 2017.

We file income tax returns in the United States federal jurisdiction and in various state and local jurisdictions. In the normal course of business, we are subject to examination by taxing authorities. Fiscal years 2017 and 2018 remain subject to examination for federal tax purposes and fiscal years 2015 through 2018 remain subject to examination in significant state tax jurisdictions.