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 February 1, 2014, 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 at February 1, 2014.

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



	Fiscal Year
	2013			2012		2011
Current:
Federal	$	21,718		$	8,127	$	6,979
State	3,172			2,130		3,124
	24,890			10,257		10,103
Deferred:
Federal	(3,977		)	3,043		1,434
State	(1,097		)	769		(1,378		)
	(5,074		)	3,812		56
Income tax expense	$	19,816		$	14,069	$	10,159

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



	Fiscal Year
	2013		2012		2011
Statutory federal tax rate	35.0	%	35.0	%	35.0	%
State taxes, net of federal benefit	2.6		5.5		5.6
Other	0.5		0.8		(1.9	)
	38.1	%	41.3	%	38.7	%

The effective tax rate for fiscal year 2013 compared to fiscal 2012 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. The effective tax rate for fiscal 2012 compared to fiscal 2011 was primarily impacted by permanent book to tax differences related to fees paid for the secondary public offering in fiscal 2012.

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



	February 1, 2014			February 2, 2013

Deferred tax assets:
Inventories	$	5,430		$	2,990
Deferred revenue	142			95
Accrued bonus	194			1,067
Deferred rent	15,192			12,076
Other	1,665			750
Deferred tax assets	22,623			16,978
Deferred tax liabilities:
Property and equipment	(16,623		)	(13,874		)
Other	(1,182		)	(3,359		)
Deferred tax liabilities	(17,805		)	(17,233		)
	$	4,818		$	(255	)

Total income taxes paid during fiscal 2013, fiscal 2012, and fiscal 2011 were $25.0 million, $10.8 million and $1.2 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 at February 1, 2014 and February 2, 2013, 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 2013, fiscal 2012, and fiscal 2011.

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 January 30, 2011 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.