8. INCOME TAXES

The provision for income taxes is comprised of the following:



	For the Fiscal Years Ended
	August 29,		August 30,		August 31,
	2015		2014		2013
Current:
Federal	$	109,575	$	115,186	$	119,470
State and local		17,339		16,528		18,629
		126,914		131,714		138,099
Deferred:
Federal		13,987		10,369		7,403
State and local		932		1,375		(68)
		14,919		11,744		7,335
Total	$	141,833	$	143,458	$	145,434

Significant components of deferred tax assets and liabilities are as follows:



	August 29,		August 30,
	2015		2014
Deferred tax liabilities:
Depreciation	$	(51,204)	$	(46,722)
Deferred catalog costs		(1,155)		(1,937)
Goodwill		(73,996)		(59,387)
		(126,355)		(108,046)
Deferred tax assets:
Accounts receivable		3,807		2,933
Inventory		9,036		7,504
Deferred compensation		2,409		1,799
Stock based compensation		9,831		11,582
Intangible amortization		11,788		10,950
Other		7,772		6,485
		44,643		41,253
Net Deferred Tax Liabilities	$	(81,712)	$	(66,793)

Reconciliation of the statutory Federal income tax rate to the Company’s effective tax rate is as follows:



	For the Fiscal Years Ended
	August 29,		August 30,		August 31,
	2015		2014		2013
U.S. Federal statutory rate	35.0	%	35.0	%	35.0	%
State income taxes, net of Federal benefit	3.1		3.1		3.0
Other, net	(0.1)		(0.3)		(0.1)
Effective income tax rate	38.0	%	37.8	%	37.9	%

The aggregate changes in the balance of gross unrecognized tax benefits during fiscal 2015 and 2014 were as follows:



	August 29,		August 30,
	2015		2014
Beginning Balance	$	9,350	$	8,192
Additions for tax positions relating to current year		2,617		2,628
Additions for tax positions relating to prior years		104		—
Reductions for tax positions relating to prior years		—		(60)
Settlements		(41)		—
Lapse of statute of limitations		(1,697)		(1,410)
Ending Balance	$	10,333	$	9,350

Included in the balance of unrecognized tax benefits at August 29, 2015 is $1,383 related to tax positions for which it is reasonably possible that the total amounts could significantly change during the next twelve months. This amount represents a decrease in unrecognized tax benefits comprised primarily of items related to expiring statutes of limitations in state jurisdictions.

The Company recognizes interest expense and penalties in the provision for income taxes. The fiscal years 2015, 2014 and 2013 provisions include interest and penalties of $19, $0 and $92, respectively. The Company has accrued $163 and $166 for interest and penalties as of August 29, 2015 and August 30, 2014, respectively.

With limited exceptions, the Company is no longer subject to Federal income tax examinations through fiscal 2013 and state income tax examinations through fiscal 2011.