9. Income Taxes

Income (loss) before income taxes from continuing operations consisted of the following (in thousands):


	2015		2014		2013
Domestic	$	(43,518)	$	(267,758)	$	(11,555)
Foreign		72		(3,104)		193
Loss from continuing operation before income taxes	$	(43,446)	$	(270,862)	$	(11,362)

The income tax benefit (expense) from continuing operations consisted of the following (in thousands):


	2015		2014		2013
Current (expense) benefit:
Federal	$	—	$	—	$	—
State		(32)		(58)		(276)
International		(23)		(99)		(69)
Deferred (expense) benefit:
Federal		—		14,028		(2,136)
State		—		831		(398)
International		—		11		23
Total income tax benefit (expense) from continuing operations	$	(55)	$	14,713	$	(2,856)

The reconciliation of the federal statutory income tax rate of 35% to our effective income tax rate from continuing operations is as follows (in thousands):


	2015		2014		2013
Expected income tax benefit (expense) at U.S. statutory rate	$	15,198	$	94,801	$	3,977
Difference between U.S. and foreign taxes		6		21		12
State tax (expense) benefit, net of federal taxes		983		4,828		(131)
Non-deductible stock-based compensation		(982)		(3,845)		(2,832)
Meals and entertainment		(135)		(129)		(266)
Goodwill impairment		—		(25,841)		—
Non-deductible officer compensation		—		(43)		—
Change in statutory state tax rate		(1,604)		(865)		(253)
Federal impact of state deferred taxes		—		—		110
Valuation allowance		(13,509)		(53,463)		(3,648)
Other		(12)		(751)		175
Total income tax expense from continuing operations	$	(55)	$	14,713	$	(2,856)

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below (in thousands):


	December 31,		December 31,
	2015		2014
Deferred tax assets:
Accrued liabilities not currently deductible	$	3,454	$	2,305
Intangible assets—excess of tax basis over financial statement basis		45,138		54,647
Federal impact of deferred state taxes		(4,518)		(3,198)
Deferred revenue		—		165
Net operating losses		50,038		35,814
Stock-based compensation		2,565		5,783
Other		203		(56)
		96,880		95,460
Deferred tax liabilities:
Intangible assets—excess of financial statement basis over tax basis		(1,751)		(1,245)
Property and equipment		(2,251)		(5,739)
		(4,002)		(6,984)
Valuation allowance		(92,878)		(88,476)
Net deferred tax liabilities	$	—	$	—

Current	$	551	$	334
Non-current		(551)		(334)
	$	—	$	—

We had federal net operating loss (“NOL”) carryforwards of approximately $143.4 million and $110.7 million as of December 31, 2015 and 2014, respectively, which expire between 2021 and 2035. In addition, as of December 31, 2015 and 2014 we had state NOL carryforwards of approximately $73.0 million and $44.5 million, which expire between 2016 and 2035.

Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, provide for annual limitations on the utilization of net operating loss and credit carryforwards if we were to undergo an ownership change, as defined in Section 382. Changes in our equity structure and the acquisitions made by us in prior years, including Trails.com, Maps a La Carte, Pagewise, Indieclick and Saatchi Art, resulted in such an ownership change. Currently, we do not expect the utilization of our net operating loss and tax credit carryforwards in the near term to be materially affected as no significant limitations are expected to be placed on these carryforwards as a result of our previous ownership changes.

We reduce the deferred tax asset resulting from future tax benefits by a valuation allowance if, based on the weight of the available evidence, it is more likely than not that some portion or all of these deferred taxes will not be realized. We have determined it is more likely than not that we will not realize the benefit of all our deferred tax assets and accordingly a valuation allowance of $92.9 million and $88.5 million against our deferred taxes was required at December 31, 2015 and 2014, respectively. The change in the valuation allowance for the year ended December 31, 2015 was an increase of $4.4 million, all of which was recorded in income tax benefit (expense) from continuing operations. As we have no sustained history of generating book income, the ultimate future realization of these excess deferred tax assets is not more likely than not and thus subject to a valuation allowance.

Accounting standards related to stock-based compensation prohibit the tax attributes related to the exercise of employee stock options from being realized in the financial statements until they result in a decrease to taxes payable. Therefore, we have not included unrealized stock option tax attributes in our deferred tax assets. Cumulative tax attributes excluded through 2015 were $18.2 million. The benefit of these deferred tax assets will be recorded to equity when they reduce taxes payable.

We are subject to the accounting guidance for uncertain income tax positions. We believe that our income tax positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material adverse effect on our financial condition, results of operations, or cash flow.

Our policy for recording interest and penalties associated with audits and uncertain tax positions is to record such items as a component of income tax expense, and amounts recognized to date are not material. There are no material uncertain income tax positions and there were no material changes recorded during 2015, 2014 or 2013 and we do not expect our uncertain tax position to change during the next twelve months. The total gross amount of unrecognized tax benefits was not material for the years ended December 31, 2015 and 2014.

We file a U.S. federal and various state tax returns. The tax years 2008 to 2015 remain subject to examination by the Internal Revenue Service and most tax years since our incorporation are subject to examination by various state authorities.