Income Taxes

The provision for federal and state income taxes is summarized as follows:



(in thousands of dollars)	Fiscal 2015			Fiscal 2014			Fiscal 2013
Current:
Federal	$	173,786		$	206,387		$	176,291
State	2,959			4,020			4,438
	176,745			210,407			180,729
Deferred:
Federal	(33,708		)	(32,051		)	(8,990		)
State	(2,267		)	1,124			1,661
	(35,975		)	(30,927		)	(7,329		)
	$	140,770		$	179,480		$	173,400

A reconciliation between the Company's income tax provision and income taxes using the federal statutory income tax rate is presented below:



(in thousands of dollars)	Fiscal 2015			Fiscal 2014			Fiscal 2013
Income tax at the statutory federal rate (inclusive of income on and equity in losses of joint ventures)	$	143,549		$	178,967		$	173,975
State income taxes, net of federal benefit (inclusive of income on and equity in losses of joint ventures)	2,488			4,426			8,013
Net changes in unrecognized tax benefits, interest and penalties /reserves	(367		)	(1,386		)	(481		)
Tax benefit of federal credits	(2,018		)	(2,810		)	(3,037		)
Changes in cash surrender value of life insurance policies	(705		)	(731		)	(986		)
Changes in valuation allowance	(1,473		)	1,485			(5,501		)
Tax benefit of dividends paid to ESOP	(763		)	(802		)	(581		)
Other	59			331			1,998
	$	140,770		$	179,480		$	173,400

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets and liabilities as of January 30, 2016 and January 31, 2015 are as follows:



(in thousands of dollars)	January 30, 2016			January 31, 2015
Property and equipment bases and depreciation differences	$	245,404		$	265,764
Prepaid expenses	57,672			58,998
Joint venture bases differences	12,985			14,351
Differences between book and tax bases of inventory	43,116			52,486
Other	6,551			3,599
Total deferred tax liabilities	365,728			395,198
Accruals not currently deductible	(88,277		)	(90,192		)
Net operating loss carryforwards	(74,094		)	(77,774		)
State income taxes	(1,123		)	(1,320		)
Other	(3,361		)	(1,573		)
Total deferred tax assets	(166,855		)	(170,859		)
Net operating loss valuation allowance	52,724			54,659
Net deferred tax assets	(114,131		)	(116,200		)
Net deferred income taxes	$	251,597		$	278,998

At January 30, 2016, the Company had a deferred tax asset related to state net operating loss carryforwards of approximately $74.1 million that could be utilized to reduce the tax liabilities of future years. These carryforwards will expire between fiscal 2016 and 2036. A portion of the deferred tax asset attributable to state net operating loss carryforwards was reduced by a valuation allowance of approximately $52.7 million for the losses of various members of the affiliated group in states for which the Company determined that it is "more likely than not" that the benefit of the net operating losses will not be realized.

In the beginning of the fourth quarter of fiscal 2015, the Company elected to adopt ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, to simplify the presentation of deferred taxes in the consolidated balance sheets (refer to Note 1). The Company's retrospective application resulted in the reclassification of $84.7 million net deferred tax liabilities from current deferred taxes to noncurrent deferred taxes in the consolidated balance sheet at January 31, 2015.

Deferred tax assets and liabilities are presented as follows in the accompanying consolidated balance sheets:



(in thousands of dollars)	January 30, 2016			January 31, 2015
Net deferred tax assets—other assets	$	(6,473	)	$	—
Net deferred tax liabilities—deferred income taxes	258,070			278,998
Net deferred income taxes	$	251,597		$	278,998

The total amount of unrecognized tax benefits as of January 30, 2016 and January 31, 2015 was $4.3 million and $4.8 million, respectively, of which $2.5 million and $2.6 million, respectively, would, if recognized, affect the effective tax rate. The Company does not expect a significant change in unrecognized tax benefits in the next twelve months. Where applicable, associated interest and penalties are also recorded. The total amounts of interest and penalties were not material.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



(in thousands of dollars)	Fiscal 2015			Fiscal 2014			Fiscal 2013
Unrecognized tax benefits at beginning of period	$	4,806		$	6,538		$	5,432
Gross increases—tax positions in prior period	—			55			967
Gross decreases—tax positions in prior period	(734		)	(1,689		)	(733		)
Gross increases—current period tax positions	317			665			1,207
Settlements	—			(545		)	(335		)
Lapse of statutes of limitation	(124		)	(218		)	—
Unrecognized tax benefits at end of period	$	4,265		$	4,806		$	6,538

The fiscal tax years that remain subject to examination for the federal tax jurisdiction are 2013 and forward and for major state tax jurisdictions are 2012 and forward. At this time, the Company does not expect the results from any income tax audit to have a material impact on the Company's consolidated financial statements.

Income taxes paid, net of income tax refunds received, during fiscal 2015, 2014 and 2013 were approximately $183.6 million, $189.7 million and $173.8 million, respectively.