The significant components of the Company’s deferred tax assets and liabilities are as follows:


	Fiscal Years Ending
	February 3,			January 28,
(in thousands)	2024			2023
Deferred tax assets:
Operating lease ROU assets	$	305,043		$	353,277
Employee compensation and benefits		25,576			2,896
Net Operating Loss		25,071			27,604
Capitalized research and development expenses		22,014			4,120
Accruals not currently deductible		10,041			11,442
Deferred compensation		9,737			9,498
Inventories		8,828			7,082
Other long-term assets		8,169			8,201
State tax credits		7,741			7,968
Gift card liability		5,723			4,871
Capital loss		4,673			4,210
Allowance for Doubtful Accounts		3,114			911
Foreign tax credits		955			2,761
Other		690			744
General Business Credits		116			1,586
Disallowed business interest expense		—			8,353
Gross deferred tax assets		437,491			455,524
Valuation allowance		(27,466	)		(25,902	)
Total deferred tax assets		410,025			429,622
Deferred tax liabilities:
Operating lease liabilities	$	(253,229	)	$	(287,061	)
Property and equipment		(69,030	)		(100,958	)
Prepaid expenses		(3,572	)		(2,988	)
Goodwill		(1,981	)		(1,996	)
Other		(149	)		(136	)
2025 Notes		—			—
Total deferred tax liabilities	$	(327,961	)	$	(393,139	)
Total deferred tax assets, net	$	82,064		$	36,483

The following table summarizes the activity related to our unrecognized tax benefits:


	Fiscal Years Ending
	February 3,			January 28,			January 29,
(In thousands)	2024			2023			2022
Unrecognized tax benefits, beginning of the year balance	$	2,478		$	3,259		$	2,563
Increases in current period tax positions		2,371			681			251
Increases in tax positions of prior periods		10			—			688
Settlements		(275	)		(454	)		—
Lapse of statute of limitations		(75	)		(277	)		(93	)
Decreases in tax positions of prior periods		(535	)		(731	)		(150	)
Unrecognized tax benefits, end of the year balance	$	3,974		$	2,478		$	3,259