Income Taxes

The following table summarizes our distribution between domestic and foreign earnings (loss) before income taxes and the provision (benefit) for income taxes (in thousands):



	Fiscal 2015			Fiscal 2014			Fiscal 2013
Earnings from continuing operations before income taxes:
Domestic	$	96,512		$	94,607		$	101,986
Foreign	(1,456		)	(5,024		)	(9,614		)
Earnings from continuing operations before income taxes	$	95,056		$	89,583		$	92,372

Income taxes:
Current:
Federal	$	33,205		$	33,552		$	31,322
State	4,789			4,865			4,111
Foreign	138			516			161
	38,132			38,933			35,594
Deferred—primarily Federal	(1,508		)	(3,071		)	1,382
Deferred—Foreign	(105		)	(76		)	(32		)
Income taxes	$	36,519		$	35,786		$	36,944

Reconciliations of the United States federal statutory income tax rates and our effective tax rates are summarized as follows:



	Fiscal 2015		Fiscal 2014		Fiscal 2013
Statutory tax rate	35.0	%	35.0	%	35.0	%
State income taxes—net of federal income tax benefit	3.3	%	3.0	%	2.8	%
Impact of foreign operations (1)	0.6	%	1.1	%	1.3	%
Valuation allowance against foreign losses and other carryforwards (2)	0.3	%	0.8	%	1.5	%
Other, net	(0.8	)%	—	%	(0.6	)%
Effective tax rate for continuing operations	38.4	%	39.9	%	40.0	%

(1) Impact of foreign operations primarily reflects the rate differential between the United States and the respective foreign jurisdictions on foreign losses, and the impact of any permanent differences.

(2) Valuation allowance against foreign losses primarily reflects the valuation allowance recognized due to our inability to recognize an income tax benefit related to certain operating loss carry-forwards and deferred tax assets during the period.

Deferred tax assets and liabilities included in our consolidated balance sheets are comprised of the following (in thousands):



	January 30, 2016			January 31, 2015
Deferred Tax Assets:
Inventories	$	16,610		$	15,385
Accrued compensation and benefits	14,287			11,725
Receivable allowances and reserves	2,601			2,419
Depreciation and amortization	—			480
Deferred rent and lease obligations	5,981			3,444
Operating loss and other carry-forwards	3,455			3,987
Other, net	2,559			1,408
Deferred tax assets	45,493			38,848
Deferred Tax Liabilities:
Depreciation and amortization	(2,689		)	—
Acquired intangible assets	(41,683		)	(39,574		)
Deferred tax liabilities	(44,372		)	(39,574		)
Valuation allowance	(4,553		)	(4,317		)
Net deferred tax liability	$	(3,432	)	$	(5,043	)

As of January 30, 2016 and January 31, 2015 our operating loss and other carry-forwards primarily relate to our operations in Hong Kong, Japan and Canada, and the majority of these operating loss carry-forwards allow for carry-forward of at least 20 years. Substantially all of our valuation allowance of $4.6 million and $4.3 million as of January 30, 2016 and January 31, 2015, respectively, relates to the foreign operating loss carry-forwards and deferred tax assets in those jurisdictions. The recent history of operating losses in these jurisdictions is considered significant negative evidence against the realizability of these tax benefits. The amount of the valuation allowance considered necessary, however, could decrease in the future if our historical operating results or estimates of future taxable operating results increase, particularly if, in future years, objective negative evidence in the form of cumulative losses is no longer present.

No deferred tax liabilities related to our original investments in our foreign subsidiaries and foreign earnings, if any, were recorded at either balance sheet date, as substantially all our original investments and earnings related to our foreign subsidiaries are considered permanently reinvested outside of the United States. Further, because the financial basis in each foreign entity does not exceed the tax basis by an amount exceeding undistributed earnings, no additional United States tax would be due if the original investment were to be repatriated in the future. As of January 30, 2016 and January 31, 2015, we had undistributed earnings of foreign subsidiaries of $4.7 million and $5.4 million, respectively, which were considered permanently reinvested. These undistributed earnings could become subject to United States taxes if they are remitted as dividends or as a result of certain other types of intercompany transactions, but the amount of taxes payable upon remittance would not be significant after considering any foreign tax credit.

Accounting for income taxes requires that we offset all deferred tax liabilities and assets within each particular tax jurisdiction and present them as a single amount in our consolidated balance sheets, with all net deferred tax assets or deferred tax liabilities by jurisdiction recognized as non-current deferred tax assets or deferred tax liabilities in our consolidated balance sheets. Amounts disclosed in the prior year as current deferred tax assets or liabilities have been reclassified to non-current deferred tax assets or deferred tax liabilities to conform to the current year presentation. The amounts of deferred income taxes included in the following line items in our consolidated balance sheets are as follows (in thousands):



	January 30, 2016			January 31, 2015
Assets:
Deferred tax assets	$	225		$	118
Liabilities:
Deferred tax liabilities	(3,657		)	(5,161		)
Net deferred tax liability	$	(3,432	)	$	(5,043	)