The components of income tax provision (benefit) are as follows (in thousands):
| Fiscal year ended |
| January 28,
2017 | January 30,
2016 | January 31,
2015 |
Current: | | | | | | | | | |
Federal | $ | 29,280 | | $ | 19,625 | | $ | 16,760 | |
State | | 5,348 | | | 3,713 | | | 3,422 | |
| | 34,628 | | | 23,338 | | | 20,182 | |
Deferred: | | | | | | | | | |
Federal | | 1,829 | | | (849 | ) | | (2,114 | ) |
State | | 38 | | | (882 | ) | | (1,305 | ) |
| | 1,867 | | | (1,731 | ) | | (3,419 | ) |
Income tax expense | $ | 36,495 | | $ | 21,607 | | $ | 16,763 | |
A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate is as follows:
| Fiscal year ended |
| January 28,
2017 | January 30,
2016 | January 31,
2015 |
Statutory federal rate | | 35.0 | % | | 35.0 | % | | 35.0 | % |
State taxes, net of federal benefit | | 3.6 | | | 3.2 | | | 3.2 | |
Other | | (0.7 | ) | | (0.6 | ) | | 0.2 | |
| | 37.9 | % | | 37.6 | % | | 38.4 | % |
Deferred income taxes reflect the effect of temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the carrying amounts used for income tax reporting purposes. Significant components of deferred tax assets and liabilities are as follows (in thousands):
| January 28,
2017 | January 30,
2016 |
Deferred tax assets: | | | | | | |
Inventory reserves | $ | 1,378 | | $ | 1,236 | |
Deferred rent | | 2,343 | | | 1,815 | |
Stock-based compensation | | 4,783 | | | 4,753 | |
Other | | 2,048 | | | 3,918 | |
Total deferred tax assets | | 10,552 | | | 11,722 | |
Deferred tax liabilities: | | | | | | |
Tradename | | (89,520 | ) | | (89,669 | ) |
Depreciation | | (9,345 | ) | | (8,217 | ) |
Leases | | (911 | ) | | (1,007 | ) |
Total deferred tax liabilities | | (99,776 | ) | | (98,893 | ) |
Net deferred tax liabilities | $ | (89,224 | ) | $ | (87,171 | ) |
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income, and tax-planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income and the scheduled reversal of deferred liabilities over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these deductible differences as of January 28, 2017 and January 30, 2016.
Ollie’s has no material accrual for uncertain tax positions or interest or penalties related to income taxes on the Company’s consolidated balance sheets as of January 28, 2017 or January 30, 2016, and has not recognized any material uncertain tax positions or interest or penalties related to income taxes in the consolidated statements of income for fiscal years 2016, 2015, or 2014.