5. Income Taxes

Income tax expense is comprised of the following:

(In thousands)	Year Ended December 31,
	2013			2012			2011
Current taxes
Federal	$	(1,311	)	$	(1,271	)	$	9,388
State		741			774			2,109
Foreign		1,693			1,754			1,707
Deferred taxes
Federal		(5,842	)		4,803			2,169
State		(1,018	)		413			438
Foreign		101			249			(425	)
Total	$	(5,636	)	$	6,722		$	15,386

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, 2013 and 2012:

(In thousands)	December 31, 2013			December 31, 2012

Deferred tax asset:
Accruals and reserves	$	14,159		$	10,910
Deferred compensation		3,933			6,597
Share-based payments		10,703			12,213
Net operating loss carryforwards		8,303			7,914
Cash conversion derivative		3,553			—
Other assets and liabilities		1,486			1,533
		42,137			39,167
Valuation allowance		(3,630	)		(3,242	)
	$	38,507		$	35,925
Deferred tax liability:
Property and equipment	$	(44,740	)	$	(47,317	)
Intangible assets		(13,418	)		(15,700	)
Cash convertible notes hedges		(3,553	)		—
Other assets and liabilities		(449	)		(122	)
		(62,160	)		(63,139	)
Net deferred tax liability	$	(23,653	)	$	(27,214	)

Net current deferred tax asset	$	9,667		$	8,839
Net long-term deferred tax liability		(33,320	)		(36,053	)
	$	(23,653	)	$	(27,214	)

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, 2013.

For 2013, 2012 and 2011, 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 $1.0 million, $0.5 million, and $1.1 million in 2013, 2012, and 2011, respectively, related to our interest rate swap agreements (see Note 7) to stockholders' equity as a component of accumulated other comprehensive income (loss).

At December 31, 2013, we had international net operating loss carryforwards totaling approximately $13.9 million with an indefinite carryforward period, approximately $11.0 million of federal loss carryforwards originating from acquired entities, and approximately $17.7 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 future periods.

Undistributed earnings of the Company's foreign subsidiaries amounted to approximately $10.7 million as of December 31, 2013. Those earnings are considered to be indefinitely reinvested and, accordingly, no U.S. federal or state income taxes have been recorded thereon. Upon distribution of those earnings in the form of dividends or otherwise, the Company would be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and potential withholding taxes payable to the various foreign countries. Determination of the amount of unrecognized deferred U.S. income tax liability is not practical because of the complexities associated with its hypothetical calculation; however, unrecognized foreign tax credits would be available to reduce a portion of the U.S. tax liability.

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

	Year Ended December 31,
(In thousands)	2013			2012		2011

Statutory federal income tax	$	(4,962	)	$	5,161	$	(49,808	)
Non-deductible goodwill impairment expense		—			—		61,785
State income taxes, less federal income tax benefit		(669	)		453		1,520
Permanent items		634			389		434
Change in valuation allowance		388			285		972
Prior year tax adjustments		140			263		150
Uncertain tax position reversal		(1,137	)		—		—
Other		(30	)		171		333
Income tax expense (benefit)	$	(5,636	)	$	6,722	$	15,386

Uncertain Tax Positions

During 2013, we recorded a $1.1 million reduction to an unrecognized tax benefit due to the expiration of the applicable statutes of limitations for the 2009 tax year. As of December 31, 2013 and 2012, we had $0.3 and $1.3 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 2012, and 2011, 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, 2011	$	1,392
Decreases based upon tax positions related to prior years		(44	)
Unrecognized tax benefits at December 31, 2012	$	1,348
Decreases based upon a lapse of the applicable statute of limitations		(1,060	)
Unrecognized tax benefits at December 31, 2013	$	288

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 2010 to present.