5. Income Taxes

Income tax expense is comprised of the following:

(In $000s)	Year Ended December 31,
		2011	2010			2009

Current taxes
Federal	$	11,095	$	8,810	$	835
State		2,109		2,719		754
Deferred taxes
Federal		1,744		16,952		7,638
State		438		1,964		910
Total	$	15,386	$	30,445	$	10,137

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table shows the significant components of our net deferred tax liability as of December 31, 2011 and 2010:

(In $000s)	December 31,			December 31,
	2011			2010

Deferred tax asset:
Accruals and reserves	$	10,068		$	12,174
Deferred compensation		9,754			12,129
Share-based payments		15,418			15,594
Net operating loss carryforwards		7,351			7,142
Other assets and liabilities		1,991			2,780
		44,582			49,819
Valuation allowance		(2,957	)		(1,985	)
	$	41,625		$	47,834
Deferred tax liability:
Property and equipment	$	(39,447	)	$	(34,976	)
Intangible assets		(17,998	)		(24,115	)
Other assets and liabilities		(830	)		(521	)
		(58,275	)		(59,612	)
Net deferred tax liability	$	(16,650	)	$	(11,778	)

Net current deferred tax asset	$	10,314		$	11,272
Net long-term deferred tax liability		(26,964	)		(23,050	)
	$	(16,650	)	$	(11,778	)

Based on the Company's historical and expected future taxable earnings, and a consideration of available tax planning strategies, we believe it is more likely than not that the Company will realize the benefit of the existing deferred tax assets, net of the valuation allowance, at December 31, 2011.

For fiscal 2011, 2010, and 2009, the tax benefit of share-based compensation, excluding the tax benefit related to the deferred tax asset for share-based payments, was recorded as additional paid-in capital. We recorded a tax effect of $1.1 million in fiscal 2011, an immaterial tax effect in fiscal 2010, and a tax effect of $1.8 million in fiscal 2009 related to our interest rate swap agreements (see Note 6) to stockholders' equity as a component of accumulated other comprehensive income (loss).

At December 31, 2011, the Company had international net operating loss carryforwards totaling approximately $10.8 million with an indefinite carryforward period, approximately $11.0 million of federal loss carryforwards originating from acquired entities, and approximately $3.7 million of state loss carryforwards. The federal loss carryforwards are subject to an annual limitation under Internal Revenue Code Section 382, and expire in various years through 2021 if not utilized. The state loss carryforwards are expected to be fully utilized during 2012.

The difference between income tax expense computed using the statutory federal income tax rate and the effective rate is as follows:

(In $000s)	Year Ended December 31,
		2011			2010		2009

Statutory federal income tax	$	(49,808	)	$	27,221		$	7,179
Non-deductible goodwill impairment expense		61,785			-			-
State income taxes, less federal income tax benefit		1,520			3,318			970
Other		1,889			(94	)		1,988
Income tax expense	$	15,386		$	30,445		$	10,137

Uncertain Tax Positions

As of December 31, 2011 and 2010, we had $1.4 and $1.1 million, respectively, of unrecognized tax benefits that, if recognized, would affect our effective tax rate. Our policy is to include interest and penalties related to unrecognized tax benefits in income tax expense. During fiscal 2011, fiscal 2010, and fiscal 2009, we included approximately $24,000, $20,000, and $0.2 million, respectively, of net interest related to uncertain tax positions as a component of income tax expense.

The aggregate changes in the balance of unrecognized tax benefits, exclusive of interest, were as follows:

(In $000s)

Unrecognized tax benefits at December 31, 2008	$	2,376
Change based upon settlements with taxing authorities		(2,376	)
Increases based upon tax positions related to fiscal 2009		1,072
Unrecognized tax benefits at December 31, 2009 and December 31, 2010	$	1,072
Increases based upon tax positions related to prior years		320
Unrecognized tax benefits at December 31, 2011	$	1,392

We file income tax returns in the U.S. Federal jurisdiction and in various state and foreign jurisdictions. Tax years remaining subject to examination in these jurisdictions include 2008 to present.