Income Taxes

The pretax loss attributable to Textura Corporation is summarized as follows:



	Years Ended September 30,
	2013			2012			2011
	(in thousands)
Domestic	$	(36,172	)	$	(15,858	)	$	(18,853	)
Foreign	(418		)	(70		)	(75		)
Loss before taxes	$	(36,590	)	$	(15,928	)	$	(18,928	)

The (provision) benefit for income taxes consists of the following components:



	Years Ended September 30,
	2013			2012			2011
Current	(in thousands)
Federal	$	(9,615	)	$	(1,661	)	$	(4,922	)
State	(533		)	(59		)	(259		)
Foreign	—			—			—
Total current	(10,148		)	(1,720		)	(5,181		)
Deferred
Federal	(2,673		)	(3,903		)	(1,680		)
State	(756		)	(85		)	119
Foreign	(108		)	(9		)	(10		)
Total deferred	(3,537		)	(3,997		)	(1,571		)
Change in valuation allowance	13,979			5,717			6,752
Total	$	294		$	—		$	—

The Company’s deferred tax assets and liabilities consisted of the following:



	As of September 30,
	2013			2012
	(in thousands)
Property and equipment	$	314		$	150
Intangible assets	—			177
Goodwill	668			—
Deferred revenue	712			101
Accrued compensation	1,748			1,640
Share‑based compensation	8,134			4,136
Accrued interest	—			657
Net domestic operating loss carryforwards	37,260			28,022
Net foreign operating loss carryforwards	128			19
Other	614			428
Deferred tax assets	49,578			35,330
Valuation allowance	(49,221		)	(35,170		)
Total deferred tax assets	357			160
Software	(241		)	—
Convertible debt-beneficial conversion feature	—			(160		)
Intangible assets	(570		)	—
Goodwill	—			(160		)
Total deferred tax liabilities	(811		)	(320		)
Net deferred tax liabilities	$	(454	)	$	(160	)

The reconciliation of the statutory federal rate of 35.0% to the effective income tax rate for the years ended September 30, 2013, 2012 and 2011 is as follows:



	Years Ended September 30,
	2013		2012		2011
Tax benefit at the statutory rate	(35.0	)%	(35.0	)%	(35.0	)%
State taxes, net of federal benefit	(1.9	)	(1.2	)	(1.8	)
Other	(0.5	)	0.3		1.1
Valuation allowance	38.2		35.9		35.7
Effective tax rate	0.8	%	0.0	%	0.0	%

As of September 30, 2013, the Company had federal and state net operating loss carry‑forwards (after tax) of $35,139 and $2,983, respectively. Federal and state net operating loss carry‑forwards expire beginning the year 2014 through the year 2033, the majority of which expire in excess of ten years.

The Company has unrealized tax benefits of $862 arising from tax deductions for share based compensation in excess of the compensation recognized for financial reporting purposes. Realization of this excess tax benefit will occur when current taxes payable are reduced with a corresponding credit to additional paid in capital.

In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company considered the scheduled reversal of deferred tax liabilities, projected future taxable income, and certain distinct tax planning strategies in making this assessment. If changes occur in the assumption underlying the Company’s tax planning strategies or in the scheduling of the reversal of the Company’s deferred tax liabilities, the valuation allowance may need to be adjusted in the future. The Company has recorded a full valuation allowance against its deferred tax assets.

The Company endeavors to comply with tax laws and regulations where it does business, but cannot guarantee that, if challenged, the Company’s interpretation of all relevant tax laws and regulations will prevail and that all tax benefits recorded in the financial statements will ultimately be recognized in full. The Company has taken reasonable efforts to address uncertain tax positions, and has determined that there are no material transactions or material tax positions taken by the Company that would fail to meet the more-likely-than-not threshold for recognizing transactions or tax positions in the financial statements. Accordingly, the Company has not recorded a reserve for uncertain tax positions in the financial statements, and the Company does not expect any significant tax increase or decrease to occur within the next 12 months with respect to any transactions or tax positions taken and reflected in the financial statements. In making these determinations, the Company presumes that taxing authorities pursuing examinations of the Company’s compliance with tax law filing requirements will have full knowledge of all relevant information, and, if necessary, the Company will pursue resolution of disputed tax positions by appeals or litigation.

As of September 30, 2013, the Company's U.S. income tax returns for fiscal 2010 and subsequent years remain subject to examination by the Internal Revenue Service ("IRS"). The Company is not currently under audit by the IRS. State income tax returns generally have statute of limitations for periods between three and four years from the filing date. The Company is not currently undergoing any state income tax audits. The Company is not currently under audit in any foreign jurisdictions. The Company's foreign operations have statute of limitations on the examination of tax returns for periods of four years.