5.Income Taxes

The income tax provision as shown in the consolidated statements of income includes the following:


	Year Ended		Year Ended		Year Ended
	January 30,		January 31,		February 1,
(amounts in thousands)	2016		2015		2014
Current:
Federal	$	2,585	$	2,979	$	2,380
State		(13)		(363)		305
Foreign		1,183		1,253		1,174
		3,755		3,869		3,859
Deferred:
Federal	$	644	$	630	$	(154)
State		33		17		(22)
		677		647		(176)
Tax Expense (benefit) recorded as an increase (decrease) of paid-in capital:
Federal		(68)		182		(267)
State		(6)		16		(19)
		(74)		198		(286)
	$	4,358	$	4,714	$	3,397

A reconciliation of the actual income tax rates to the federal statutory rate follows:


	Year Ended		Year Ended		Year Ended
	January 30,		January 31,		February 1,
	2016		2015		2014
Tax expense at U.S. statutory rate	34.0	%	34.0	%	34.0	%
State income taxes, net of federal income tax benefit	1.5		1.1		1.8
Adjustments to unrecognized tax benefits	(1.5)		(2.8)		—
Nondeductible expenses	0.1		0.1		0.1
Other	—		—		—
Tax provision	34.1	%	32.4	%	35.9	%

A summary of deferred income tax assets is as follows:


	January 30, 2016		January 31, 2015
(amounts in thousands)	Non-Current		Non-Current
Deferred tax assets:
Deferred revenue	$	492	$	6
State income taxes		103		245
Compensation		1,789		1,687
Other		218		188
Total deferred tax assets		2,602		2,126
Deferred tax liabilities:
Amortization		(1,281)		(658)
Depreciation		(185)		(198)
Total deferred tax liabilities		(1,466)		(856)
Net deferred tax assets	$	1,136	$	1,270

Foreign taxes include withholding required on royalty payments from foreign jurisdictions. Deferred tax assets primarily relate to state tax benefits and stock-based compensation. The Company believes that it is more likely than not that the deferred tax assets will be realized based upon expected future income.

The difference in the effective tax rate for Fiscal 2016 in comparison to Fiscal 2015 and Fiscal 2014 was primarily due to the recognition of previously unrecognized tax benefits upon the conclusion of income tax examinations during Fiscal 2016.

The amount of unrecognized tax benefits was approximately $0 and $450, respectively, at January 30, 2016 and January 31, 2015. At January 30, 2016, approximately $0 of unrecognized tax benefits would, if recognized, affect the effective tax rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


	Year Ended		Year Ended		Year Ended
	January 30,		January 31,		February 1,
(amounts in thousands)	2016		2015		2014
Gross unrecognized tax benefits at beginning of year	$	449	$	1,045	$	1,027
Additions:
Tax positions taken in prior years		—		105		10
Tax positions taken in the current year		—		57		22
Reductions:
Tax positions taken in prior years		(96)		(566)		(13)
Tax positions taken in the current year		—		—		—
Settlement with taxing authorities		(170)		(192)		—
Lapse in statute of limitations		(183)		—		(1)
Gross unrecognized tax benefits at year end	$	—	$	449	$	1,045

In accordance with authoritative guidance, interest and penalties related to unrecognized tax benefits are included within the provision for taxes on the consolidated statements of income. The total amount of interest and penalties recognized in the consolidated statements of income for Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively, was $(84), $(260) and $60. As of January 30, 2016 and January 31, 2015, the total amount of accrued interest and penalties included in the Company’s liability for unrecognized tax benefits was $0 and $80, respectively.

The Company files income tax returns in the U.S. federal and California and certain other state jurisdictions. For federal income tax purposes, the Fiscal 2013 and later tax years remain open for examination by the tax authorities under the normal three-year statute of limitations. For state tax purposes, the Fiscal 2012 and later tax years remain open for examination by the tax authorities under a four-year statute of limitations.