

8.	INCOME TAXES

Income from continuing operations before income tax expense (benefit) and equity in earnings (losses) of 50% or less owned companies derived from U.S. and foreign companies for the years ended December 31 were as follows (in thousands):



	2013			2012			2011
United States	$	71,669		$	82,383		$	14,556
Foreign	(7,596		)	(176		)	(5,886		)
Eliminations and other	3,559			(27,635		)	(4,901		)
	$	67,632		$	54,572		$	3,769

As of December 31, 2013, cumulative undistributed net earnings of foreign subsidiaries included in the Company’s consolidated retained earnings were $120.4 million.

The Company files a consolidated U.S. federal tax return. The components of income tax expense (benefit) for the years ended December 31 were as follows (in thousands):



	2013			2012			2011
Current:
State	$	1,723		$	3,604		$	2,814
Federal	6,311			36,057			18,715
Foreign	8,142			7,921			9,040
	16,176			47,582			30,569
Deferred:
State	(985		)	(40		)	(615		)
Federal	11,532			(23,572		)	(26,569		)
Foreign	24			211			(75		)
	10,571			(23,401		)	(27,259		)
	$	26,747		$	24,181		$	3,310

The following table reconciles the difference between the statutory federal income tax rate for the Company and the effective income tax rate on continuing operations for the years ended December 31:



	2013		2012		2011
Statutory rate	35.0	%	35.0	%	35.0	%
Non-deductible expenses	0.4	%	6.1	%	4.9	%
Reversal of valuation allowance on foreign tax credit carryforwards	—	%	(5.5	)%	—	%
Losses of foreign subsidiaries not benefited	5.1	%	4.2	%	17.2	%
State taxes	0.2	%	4.2	%	32.2	%
Other	(1.1	)%	0.3	%	(1.5	)%
	39.6	%	44.3	%	87.8	%

During the year ended December 31, 2012, the effective rate increase associated with non-deductible expenses was primarily attributable to the Company's acceleration into 2012 of restricted stock originally scheduled to vest in 2013 and 2014.

During the year ended December 31, 2012, the Company utilized all available foreign tax credit carryforwards and reversed a previously established valuation allowance of $3.1 million. As of December 31, 2012, the Company had no remaining foreign tax credit carryforwards.

The components of the net deferred income tax liabilities for the years ended December 31 were as follows (in thousands):



	2013			2012
Deferred tax liabilities:
Property and Equipment	$	343,411		$	328,355
Long-term Debt	56,587			36,864
Unremitted earnings of foreign subsidiaries	40,321			41,382
Investments in 50% or Less Owned Companies	23,573			24,392
Other	9,050			7,235
Total deferred tax liabilities	472,942			438,228
Deferred tax assets:
Share award plans	8,347			6,920
Other	13,662			14,801
Total deferred tax assets	22,009			21,721
Valuation allowance	(6,778		)	(5,990		)
Net deferred tax assets	15,231			15,731
Net deferred tax liabilities	$	457,711		$	422,497

During the year ended December 31, 2013, the Company increased its valuation allowance for state net operating loss carryforwards from $6.0 million to $6.8 million.

The Company records an additional income tax benefit or expense based on the difference between the fair market value of share awards at the time of grant and the fair market value at the time of vesting or exercise. For the years ended December 31, 2013, 2012 and 2011, an additional net income tax benefit was recorded in stockholders’ equity of $1.4 million, $2.0 million and $1.8 million, respectively.