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7. Income Taxes
The provision for income taxes consists of the following:
2014 2013 2012
(in thousands)
Current:
U.S. federal ............................. $29,884 $64,071 $74,306
U.S. state and local ....................... 6,491 12,815 14,296
Foreign ................................. 565 548 165
Total ................................... 36,940 77,434 88,767
Deferred:
U.S. federal ............................. 6,884 757 3,346
U.S. state and local ....................... (558) (1,541) 615
Foreign ................................. (35) (23) (24)
Total ................................... 6,291 (807) 3,937
Provision for income taxes ..................... $43,231 $76,627 $92,704
The following table provides a reconciliation between the statutory federal income tax rate and the effective tax
rate:
2014 2013 2012
Federal income tax rate .................................... 35.0% 35.0% 35.0%
State income taxes, net of federal income tax effect .............. 4.1% 3.8% 4.3%
Other items, net .......................................... (0.3)% 0.9% 0.7%
Effective tax rate ......................................... 38.8% 39.7% 40.0%
The following table provides the effect of temporary differences that created deferred income taxes as of
January 31, 2015 and February 1, 2014. Deferred tax assets and liabilities represent the future effects on income
taxes resulting from temporary differences and carry-forwards at the end of the respective periods.
January 31, 2015 February 1, 2014
(in thousands)
Deferred tax assets:
Accrued expenses and deferred
compensation .................... $30,667 $27,554
Rent .............................. 25,605 21,854
Lease financing obligations ........... 29,072 5,972
Other ............................. 2,104 1,515
Tax credits/carryforwards ............. — 214
Valuation allowance ................. (1,668) (1,366)
Total deferred tax assets .................. 85,780 55,743
Deferred tax liabilities:
Inventory .......................... 5,915 2,532
Prepaid expenses ................... 3,762 4,827
Intangible assets .................... 13,844 9,530
Property and equipment .............. 51,732 22,036
Total deferred tax liabilities ............... 75,253 38,925
Net deferred tax asset .................... $10,527 $16,818
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