22. Income Tax

The components of the provision for income tax expense (benefit) are as follows (in thousands):

	Year ended December 31,

	2013			2012			2011
Current income tax (benefit) expense:
Federal	$	(11,078	)	$	(2,964	)	$	15,039
State		(130	)		598			2,539


Total current		(11,208	)		(2,366	)		17,578


Deferred income tax expense (benefit):
Federal		24,382			38,531			(4,732	)
State		(505	)		2,163			803


Total deferred		23,877			40,694			(3,929	)


Provision for income tax	$	12,669		$	38,328		$	13,649

A reconciliation of the provision for income tax and the amount computed by applying the federal statutory rate of 35% to the income before income taxes for each of the years ended December 31, 2013, 2012 and 2011 is as follows (in thousands):

Year ended December 31, 2013:

	Corporation			Partnership			Eliminations			Consolidated

Income before provision for income tax	$	31,145		$	42,131		$	(20,162	)	$	53,114




Federal statutory rate		35	%		0	%		0	%


Federal income tax at statutory rate		10,901			—			—		$	10,901
Permanent items		40			—			—			40
State income taxes net of federal benefit		(729	)		39			—			(690	)
Prior period adjustments and tax rate changes		(147	)		—			—			(147	)
Provision on income from Class A units(1)		2,617			—			—			2,617
Other		(52	)		—			—			(52	)


Provision for income tax	$	12,630		$	39		$	—		$	12,669

Year ended December 31, 2012:

	Corporation			Partnership			Eliminations			Consolidated

Income before provision for income tax	$	74,192		$	178,817		$	2,284		$	255,293




Federal statutory rate		35	%		0	%		0	%


Federal income tax at statutory rate		25,967			—			—		$	25,967
Permanent items		28			—			—			28
State income taxes net of federal benefit		688			1,689			—			2,377
Current year change in valuation allowance		(5	)		—			—			(5	)
Prior period adjustments and tax rate changes		(2,517	)		—			—			(2,517	)
Provision on income from Class A units(1)		12,412			—			—			12,412
Other		66			—			—			66


Provision for income tax	$	36,639		$	1,689		$	—		$	38,328

Year ended December 31, 2011:

	Corporation			Partnership			Eliminations			Consolidated

Income before provision for income tax	$	3,813		$	122,642		$	(8,006	)	$	118,449




Federal statutory rate		35	%		0	%		0	%


Federal income tax at statutory rate		1,335			—			—		$	1,335
Permanent items		36			—			—			36
State income taxes net of federal benefit		102			2,742			—			2,844
Current year change in valuation allowance		(64	)		—			—			(64	)
Prior period adjustments and tax rate changes		163			—			—			163
Provision on income from Class A units(1)		9,323			—			—			9,323
Other		12			—			—			12


Provision for income tax	$	10,907		$	2,742		$	—		$	13,649

(1): The Corporation and the General Partner own Class A units of the Partnership that were received in the merger of the Corporation and the Partnership completed in February 2008. The Class A units share, on a pro-rata basis, in income or loss of the Partnership, except for items attributable to the Partnership's ownership or sale of shares of the Corporation's common stock (as discussed in Note 2). The provision for income tax on income from Class A units includes intra period allocations to continued operations and excludes allocations to equity.

The deferred tax assets and liabilities resulting from temporary book-tax differences are comprised of the following (in thousands):

	December 31,

	2013			2012
Current deferred tax assets:
Accruals and reserves	$	221		$	98
Derivative instruments		4,845			5,183
Net operating loss carryforward		18,134			—
Capital loss carryforward		904			—
State tax credit		74			—


Current deferred tax assets		24,178			5,281
Valuation allowance		(978	)		—


Deferred income taxes		23,200			5,281


Long-term deferred tax assets:
Accruals and reserves		329			113
Derivative instruments		10,102			9,915
Phantom unit compensation		3,328			2,624
Capital loss carryforward		—			904
Net operating loss carryforward		9,283			1


Long-term deferred tax assets		23,042			13,557
Valuation allowance		—			(904	)


Net long-term deferred tax assets		23,042			12,653


Long-term deferred tax liabilities:
Property, plant and equipment and intangibles		(4,755	)		(3,861	)
Investment in affiliated groups		(305,853	)		(198,220	)


Long-term deferred tax liabilities		(310,608	)		(202,081	)


Long-term subtotal		(287,566	)		(189,428	)


Net deferred tax liability	$	(264,366	)	$	(184,147	)

Significant judgment is required in evaluating tax positions and determining the Corporation's provision for income taxes. During the ordinary course of business, there may be transactions and calculations for which the ultimate tax determination is uncertain. However, the Corporation did not have any material uncertain tax positions for the years ended December 31, 2013, 2012 or 2011. As of December 31, 2013, the Corporation had NOL carryforwards for federal and state income tax purposes of approximately $26.5 million and $1.5 million, respectively. The federal NOL carryforwards expire in 20 years and the state NOL carryforwards expire from 5 to 20 years. Included in the NOL carryforwards is approximately $0.6 million attributable to tax deductions related to equity compensation in excess of compensation recognized for financial reporting. As of December 31, 2013, the Corporation had a capital loss carryforward of approximately $0.9 million and a state tax credit of $0.1 million, respectively, that expire in 2014. The Corporation does not anticipate utilizing this capital loss carryforward or state tax credit and has provided a 100% valuation allowance against this deferred tax asset. While the Corporation's consolidated federal tax return and any significant state tax returns are not currently under examination, the tax years 2009 through 2012 remain open to examination by the major taxing jurisdictions to which the Corporation is subject.