6.	Income Taxes

Income tax expense is comprised of the following:

(In thousands)	Year Ended December 31,
	2016		2015			2014
Current taxes
Federal	$	(426)	$	457	$		483
State		311		670			263

Deferred taxes
Federal		18,910		23,342			22,936
State		3,178		4,816			3,876

Total	$	21,973	$	29,285	$		27,558

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 asset and liability as of December 31, 2016 and 2015:

(In thousands)	December 31, 2016			December 31, 2015

Deferred tax asset:
Accruals and reserves	$	4,085		$	9,809
Deferred compensation		4,344			6,010
Share-based payments		5,818			8,344
Net operating loss carryforwards		68,271			30,545
Capital loss carryforwards		11,861			—
Cash conversion derivative and cash convertible notes hedge, respectively		4,592			9,539
Basis difference on joint ventures		1,621			6,466
Other assets		4,297			3,933
		104,889			74,646
Valuation allowance		(15,176	)		(13,594	)
	$	89,713		$	61,052
Deferred tax liability:
Property and equipment	$	(2,386	)	$	(49,645	)
Intangible assets		(21,520	)		(17,666	)
Cash convertible notes hedge and cash conversion derivative, respectively		(4,592	)		(9,539	)
Other liabilities		(1,653	)		(102	)

		(30,151	)		(76,952	)
Net deferred tax asset (liability)	$	59,562		$	(15,900	)

Net current deferred tax asset	$	—		$	7,717
Net long-term deferred tax asset (liability)		59,562			(23,617	)
	$	59,562		$	(15,900	)

At December 31, 2016, we provided valuation allowances for $3.3 million of deferred tax assets associated with our international net operating loss carryforwards and $11.9 million for deferred tax assets related to capital loss carryforwards incurred in the sale of the TPHS business. As a result, we recorded a total increase in our valuation allowance of $1.6 million for the year ended December 31, 2016. Of the change in valuation allowance for 2016, $9.6 million of income tax benefit was allocated to continuing operations that related to the reversal of a valuation allowance on domestic deferred tax assets initially recorded at December 31, 2015. We believe that the projected core earnings of the remaining business will be sufficient to utilize the net operating losses within the expiration period. The $11.2 million offsetting increase in valuation allowance for 2016 related to international net operating loss and capital loss carryforwards and was allocated to discontinued operations. Our valuation allowance as of December 31, 2016 is $15.2 million.

At December 31, 2016, we had international net operating loss carryforwards totaling approximately $12.8 million with an indefinite carryforward period, approximately $177.6 million of federal net operating loss carryforwards, approximately $207.2 million of state net operating loss carryforwards expiring between 2017 and 2036, and approximately $30.0 million of capital loss carryforwards expiring in 2021. Of the federal loss carryforwards, $6.9 million originating from acquired entities is subject to an annual limitation under Internal Revenue Code Section 382 and expire in 2021, if not utilized. The remainder of the federal net operating loss carryforwards will expire between 2035 and 2036.

Pursuant to ASC Topic 718-740, "Stock Compensation", we are tracking in a separate memo account the portion of our cumulative net operating losses attributable to excess tax deductions from share-based payment awards, which totaled $16.5 million and $4.0 million at December 31, 2016 and December 31, 2015, respectively. The tax benefits related to these amounts were not included in our gross or net deferred tax assets and were not recorded to additional paid-in capital since the related tax deduction would not have reduced cash taxes payable. Upon the adoption of ASU 2016-09 on January 1, 2017, these previously unrecognized excess tax benefits will be recorded as a cumulative-effect adjustment to retained earnings as of January 1, 2017. For 2014, 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 $157,000, $1,000, and $44,000 in 2016, 2015 and 2014, respectively, related to our interest rate swap agreements to stockholders' equity as a component of accumulated other comprehensive income (loss).

After the sale of the TPHS business, we determined that the undistributed earnings of the Company's remaining foreign subsidiaries were not permanently reinvested. As a result, we recorded a $1.6 million deferred tax liability on $13.9 million of undistributed earnings at December 31, 2016. At December 31, 2015, the undistributed earnings were considered to be indefinitely reinvested, and no U.S. federal or state income taxes were recorded thereon.

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,
	2016		2015		2014

Statutory federal income tax	$	27,321	$	25,522	$	24,638
State income taxes, less federal income tax benefit		3,801		3,488		3,334
Permanent items		954		167		230
Change in valuation allowance		(9,615)		—		—
Prior year tax adjustments		(444)		108		6
State income tax credits		(44)		—		(650)
Income tax expense	$	21,973	$	29,285	$	27,558

Uncertain Tax Positions

As of December 31, 2016, we had no unrecognized tax benefits that would affect our effective tax rate. Our policy is to include interest and penalties related to unrecognized tax benefits in income tax expense. During 2015, we included an immaterial amount of net interest related to uncertain tax positions as a component of income tax expense. During 2016 and 2014, there were no interest and penalties related to unrecognized tax benefits recorded as 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, 2014	$	253
Decreases based upon settlements with taxing authorities		(253	)
Unrecognized tax benefits at December 31, 2015	$	—
Increases (decreases) in 2016		—
Unrecognized tax benefits at December 31, 2016	$	—

We file income tax returns in the U.S. Federal jurisdiction and in various state and foreign jurisdictions. Our 2014 federal income tax return is currently under IRS examination. Tax years remaining subject to examination in the U.S. Federal jurisdiction include 2013 to present.