(15)	Income Taxes

The Company or its subsidiaries file income tax returns in the U.S. federal, and various states and foreign jurisdictions.

The Company assessed its uncertain tax positions and determined that it has no uncertain tax position at December 31, 2015.

The components of income before income taxes consist of the following:

	Year ended December 31,
	2015		2014		2013
U.S. operations	$	11,564	$	12,712	$	11,340
Foreign operations		48,932		44,003		69,306

	$	60,496	$	56,715	$	80,646

The provision for current and deferred income tax expense (benefit) consists of the following:

	Year ended December 31,
	2015		2014		2013
Current:
Federal	$	3,660	$	4,374	$	3,638
State and local		220		323		454
Foreign		16,806		15,229		20,744
		20,686		19,926		24,836
Deferred:
Federal		30		(84)		370
State and local		1		30		59
Foreign		810		(502)		4,415
		841		(556)		4,844
Total income tax expense	$	21,527	$	19,370	$	29,680

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows:

	December 31,
	2015		2014
Net deferred tax assets:
Foreign net operating loss carry-forwards	$	296	$	419
Inventory and accounts receivable		2,321		2,655
Profit sharing		2,442		2,570
Stock option compensation		717		545
Effect of inventory profit elimination		2,170		1,757
Other		(468)		(679)
Total gross deferred tax assets, net		7,478		7,267
Valuation allowance		(296)		(419)
Net deferred tax assets		7,182		6,848
Deferred tax liabilities (long-term):
Trademarks and licenses		(3,746)		(2,154)
Other		—		—
Total deferred tax liabilities		(3,746)		(2,154)
Net deferred tax assets	$	3,436	$	4,694

Valuation allowances are provided for foreign net operating loss carry-forwards, as future profitable operations from certain foreign subsidiaries might not be sufficient to realize the full amount of net operating loss carry-forwards.

No other valuation allowances have been provided as management believes that it is more likely than not that the asset will be realized in the reduction of future taxable income.

The French Tax Authorities have examined the 2012 tax return of Interparfums, SA and issued a $6.9 million tax adjustment. It is the Company’s position that the French Tax Authorities are incorrect in their assessments. The Company believes that it has strong arguments to support its tax positions and that more likely than not, its tax positions will be sustained. The Company will vigorously contest the assessments.

The Company is no longer subject to U.S. federal, state, and local or non-U.S. income tax examinations by tax authorities for years before 2012.

The Company has not provided for U.S. deferred income taxes on $352 million of undistributed earnings of its non-U.S. subsidiaries as of December 31, 2015 since the Company intends to reinvest most of these earnings in its foreign operations indefinitely and the Company believes it has sufficient foreign tax credits available to offset any potential tax on amounts that have been and are planned to be repatriated.

Differences between the United States Federal statutory income tax rate and the effective income tax rate were as follows:

	Year ended December 31,
	2015			2014			2013
Statutory rates		34.0	%		34.0	%		34.0	%
State and local taxes, net of Federal benefit		0.2			0.1			0.4
Effect of foreign taxes greater than
U.S. statutory rates		1.6			0.4			2.0
Other		(0.2)			(0.3)			0.4
Effective rates		35.6	%		34.2	%		36.8	%