4. Income Taxes

The following table presents the components of our income tax expense for the following periods (dollars in thousands):


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Current:
Federal	$	50		$	6		$	55		$	13
State and local		22			18			52			35

Total Current		72			24			107			48

Deferred:
Federal	$	—		$	—		$	—		$	—
State and local		—			—			—			—

Total Deferred		—			—			—			—

Income tax expense	$	72		$	24		$	107		$	48

Effective income tax rate		13.5	%		0.8	%		6.0	%		6.7	%

Our effective tax rate for the three and six months ended June 30, 2013 was impacted by a full valuation allowance against all of our deferred tax assets, net of deferred tax liabilities.

As of June 30, 2013 and December 31, 2012, the net deferred tax assets are offset by full valuation allowances because it is not more-likely-than-not that we will realize our deferred tax assets. We did not record the related tax benefits in the United States and state jurisdictions during the three and six months ended June 30, 2013. Income tax expense for the three and six months ended June 30, 2013 and 2012 includes primarily interest on unrecognized tax benefits and state taxes in certain jurisdictions.

During the three and six month periods ended June 30, 2013, there were no changes to the liability for unrecognized tax benefits. All interest and penalties related to unrecognized tax benefits are recorded as a component of income tax expense. The total amount of unrecognized tax benefits at both June 30, 2013 and December 31, 2012 was $508,000. It is reasonably possible that the amount of the total unrecognized tax benefits may change in the next 12 months. However, we do not believe that any anticipated change will be material to the Condensed Consolidated Financial Statements.