INCOME TAXES

Components of income tax (expense) benefit were as follows:



	Year Ended December 31,
	2013			2012			2011
	(Thousands of Dollars)
Current:
U.S. federal	$	—		$	465		$	129
U.S. state	(368		)	(42		)	8
Total current	(368		)	423			137
Deferred:
U.S. federal	(599		)	433			251
U.S. state	175			10			13
Total deferred	(424		)	443			264
Total income tax (expense) benefit	$	(792	)	$	866		$	401

The difference between income tax expense recorded in our consolidated statements of income and income taxes computed by applying the statutory federal income tax rate (35% for all years presented) to income before income tax expense is due to the fact that the majority of our income is not subject to federal income tax based on our status as a limited liability company.

The tax effects of significant temporary differences representing deferred income tax assets and liabilities were as follows:



	December 31,
	2013			2012
	(Thousands of Dollars)
Deferred income tax assets:
Share/option compensation	$	2,976		$	4,444
Pension	4,318			15,815
Capital loss	474			270
Other state	—			1,263
Net operating loss	3,519			1,104
Foreign tax credits	44			20
Deferred income tax assets	11,331			22,916
Deferred income tax liabilities:
Investment in Riverwalk Logistics, L.P. and NuStar Energy	(233		)	(213		)
Other state	(191		)	—
Other employee benefits	(13,531		)	(1,351		)
Total net deferred income tax (liabilities) assets	$	(2,624	)	$	21,352

At December 31, 2013, our U.S. corporate operations had capital loss carryforwards for tax purposes, which were subject to a five-year carryforward limitation and were set to expire in 2017. The realization of deferred income tax assets recorded as of December 31, 2013 is dependent upon our ability to generate future taxable income in the United States. We believe that it is more-likely-than-not that the deferred tax assets as of December 31, 2013 will be realized, based upon expected future taxable income and potential tax planning strategies.