(4) Income Taxes

The provision for income taxes includes the following components (in thousands):

	Year ended December 31,
	2014			2013		2012
Current tax provision (benefit):
Federal	$	(176	)	$	1,767	$	—
State		838			343		441
Foreign		2,081			—		—

		2,743			2,110		441

Deferred tax provision (benefit):
Federal		4,697			34,728		31,791
State		371			2,738		2,507

		5,068			37,466		34,298

Provision (benefit) for income taxes	$	7,811		$	39,576	$	34,739

The following is a reconciliation between the statutory federal income tax rate of 35% and the effective rate which is derived by dividing the provision for income taxes by income (loss) before for income taxes (in thousands):

	Year ended December 31,
	2014			2013			2012
Computed provision (benefit) for income taxes at the statutory rate	$	(5,720	)	$	34,486		$	30,064
Increase (decrease) in income taxes resulting from:
State income tax provision (benefit), net of federal income tax benefit		(107	)		2,867			2,220
Non-deductible expenses		3,865			3,257			2,919
Valuation allowance changes affecting the provision for income taxes		5,981			1,430			1,614
Foreign income taxes, net of federal & state benefit		1,973			—			—
Other, net		1,819			(2,464	)		(2,078	)

Provision for income taxes	$	7,811		$	39,576		$	34,739

For the year ended December 31, 2014, the Company recorded a $6.0 million valuation allowance against certain deferred tax assets primarily associated with ExpressJet state net operating losses with a limited carry forward period. The valuation allowance was based on the Company's assessment of deferred tax assets that are anticipated to expire before the deferred tax assets may be utilized. The Company additionally recorded a $2.0 million foreign tax expense associated with Brazilian withholding tax on the sale of the Company's equity ownership in TRIP. Included in Other, net above is an unrecorded tax benefit of $3.4 million related to losses resulting from the disposition of a paint facility in Mexico.

For the year ended December 31, 2013, the Company recorded a $1.4 million valuation allowance against certain deferred tax assets primarily associated with ExpressJet state net operating losses with a limited carry forward period. The valuation allowance was based on the Company's assessment at December 31, 2013 of deferred tax assets that were anticipated to expire before the deferred tax assets may be utilized.

For the year ended December 31, 2012, the Company recorded a $1.6 million valuation allowance against certain deferred tax assets associated with capital losses with a limited carry forward period. The valuation allowance was based on the Company's assessment at December 31, 2012 of deferred tax assets that were anticipated to expire before the deferred tax assets may be utilized.

The significant components of the Company's net deferred tax assets and liabilities as of December 31, 2014 and 2013 are as follows (in thousands):

	As of December 31,
	2014			2013
Deferred tax assets:
Intangible Asset	$	34,819		$	36,164
Accrued benefits		43,853			40,850
Net operating loss carryforward		152,361			85,885
AMT credit carryforward		17,590			17,649
Deferred aircraft credits		53,797			44,350
Accrued reserves and other		27,008			30,987

Total deferred tax assets		329,428			255,885

Valuation allowance		(9,025	)		(3,044	)

Deferred tax liabilities:
Accelerated depreciation		(895,405	)		(824,149	)

Total deferred tax liabilities		(895,405	)		(824,149	)

Net deferred tax liability	$	(575,002	)	$	(571,308	)

The Company's deferred tax liabilities were primarily generated through accelerated depreciation, combined with shorter depreciable tax lives, allowed under the IRS tax code for purchased aircraft and support equipment compared to the Company's US GAAP depreciation policy for such assets using the straight-line method (see note 1 Nature of Operations and Summary of Significant Accounting Policies).

The Company's valuation allowance is related to certain deferred tax assets with a limited carry forward period. The Company does not anticipate utilizing these deferred tax assets prior to the lapse of the carry forward period.

At December 31, 2014 and 2013, the Company had federal net operating losses of approximately $379.3 million and $191.5 million and state net operating losses of approximately $452.2 million and $651.2 million, respectively. The estimated effective tax rate applicable to the state and federal net operating losses as of December 31, 2014 was 35.0% and 2.6%, respectively. The Company anticipates that the federal and state net operating losses will start to expire in 2026 and 2015, respectively. The Company has recorded a valuation allowance for state net operating losses the Company anticipates will expire before the benefit will be realized due to the limited carry forward periods. As of December 31, 2014 and 2013, the Company also had an alternative minimum tax credit of approximately $17.6 million which does not expire.