5. Income Taxes

Income tax expense is comprised of the following:

(In thousands)	Year Ended December 31,
	2012			2011			2010

Current taxes
Federal	$	(1,271	)	$	9,388		$	8,614
State		774			2,109			2,719
Foreign		1,754			1,707			196
Deferred taxes
Federal		4,803			2,169			16,148
State		413			438			1,964
Foreign		249			(425	)		804
Total	$	6,722		$	15,386		$	30,445

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 sets forth the significant components of our net deferred tax liability as of December 31, 2012 and 2011:

(In thousands)	December 31,			December 31,
	2012			2011

Deferred tax asset:
Accruals and reserves	$	10,910		$	10,068
Deferred compensation		6,597			9,754
Share-based payments		12,213			15,418
Net operating loss carryforwards		7,914			7,351
Other assets and liabilities		1,533			1,991
		39,167			44,582
Valuation allowance		(3,242	)		(2,957	)
	$	35,925		$	41,625
Deferred tax liability:
Property and equipment	$	(47,317	)	$	(39,447	)
Intangible assets		(15,700	)		(17,998	)
Other assets and liabilities		(122	)		(830	)
		(63,139	)		(58,275	)
Net deferred tax liability	$	(27,214	)	$	(16,650	)

Net current deferred tax asset	$	8,839		$	10,314
Net long-term deferred tax liability		(36,053	)		(26,964	)
	$	(27,214	)	$	(16,650	)

Based on the Company's historical and expected future taxable earnings, 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, 2012.

For 2012, 2011, and 2010, 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 $0.5 million in 2012, a tax effect of $1.1 million in 2011, and an immaterial tax effect in 2010 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, 2012, we had international net operating loss carryforwards totaling approximately $12.4 million with an indefinite carryforward period, approximately $11.0 million of federal loss carryforwards originating from acquired entities, and approximately $16.0 million of state loss carryforwards.

We have provided a valuation allowance on certain deferred tax assets associated with our international net operating loss carryforwards. The federal loss carryforwards are subject to an annual limitation under Internal Revenue Code Section 382, and expire in 2021 if not utilized. The state loss carryforwards are expected to be fully utilized during 2013.

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

(In thousands)	Year Ended December 31,
	2012		2011			2010

Statutory federal income tax	$	5,161	$	(49,808	)	$	27,221
Non-deductible goodwill impairment expense		—		61,785			—
State income taxes, less federal income tax benefit		453		1,520			3,318
Permanent items		389		434			(477	)
Change in valuation allowance		285		972			337
Prior year tax adjustments		263		150			(55	)
Other		171		333			101
Income tax expense	$	6,722	$	15,386		$	30,445

Uncertain Tax Positions

As of December 31, 2012 and 2011, we had $1.3 and $1.4 million, respectively, of unrecognized tax benefits that, if recognized, would affect our effective tax rate. Due to a scheduled lapse of statute in 2013, it is reasonably possible that unrecognized tax benefits will be reduced by $1.1 million during the next 12 months. Our policy is to include interest and penalties related to unrecognized tax benefits in income tax expense. During 2012, 2011, and 2010, we included an immaterial amount 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 thousands)

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
Decreases based upon tax positions related to prior years		(44	)
Unrecognized tax benefits at December 31, 2012	$	1,348

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 2009 to present.