(12) Income Taxes

The components of loss before income taxes for the years ended December 31, 2011, 2012, and 2013 are as follows:

	2011			2012			2013

U.S.	$	(30,002	)	$	(91,608	)	$	(40,195	)
Foreign		(18,156	)		(7,960	)		(23,009	)


	$	(48,158	)	$	(99,568	)	$	(63,204	)

The provision (benefit) for income taxes consists of the following:

	2011			2012			2013

Current:
Federal	$	206		$	269		$	87
State		296			302			310
Foreign		396			(61	)		2,910


Total current		898			510			3,307
Deferred:
Federal		(8,012	)		(20,646	)		(42,206	)
State		(1,724	)		(3,445	)		(7,403	)
Foreign		(4,075	)		(3,053	)		(5,694	)
Change in valuation allowance		12,210			27,928			55,711


Total deferred		(1,601	)		784			408


Total	$	(703	)	$	1,294		$	3,715

Income tax expense (benefit) for the years ended December 31, 2011, 2012 and 2013 differs from the "expected" amount computed using the federal income tax rate of 35% as a result of the following:

	2011			2012			2013

Computed expected tax expense (benefit)	$	(16,855	)	$	(34,849	)	$	(22,121	)
State and local taxes, net of federal benefit		202			121			204
Nondeductible expenses		3,073			5,194			7,216
Tax rate differential on foreign earnings		5,273			(717	)		2,993
Basis difference on sale		—			—			(6,457	)
Tax credits		(834	)		—			(35,604	)
Other		(148	)		(1,563	)		(122	)
Change in valuation allowance		8,586			33,108			57,606


Total tax expense (benefit)	$	(703	)	$	1,294		$	3,715

During the first quarter of 2013, federal tax legislation extended the alternative fuel credit ("VETC") with retroactive effect until the beginning of 2012. In addition, federal tax guidance was issued in 2013 that clarified that the VETC in excess of the Company's fuel tax obligation, which is collected from customers, can be excluded from taxable income. The Company recorded a federal tax benefit of $7,068 related to the exclusion of VETC associated with 2013 fuel sales in excess of its fuel tax obligation and a federal tax benefit $27,497 related to the exclusion of similar VETC amounts associated with fuel sales from 2006 through 2012. These amounts increased the Company's deferred tax asset attributed to its federal net operating loss carryforwards and the Company's deferred tax asset valuation allowance.

Deferred tax assets and liabilities result from differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax effect of temporary differences that give rise to deferred tax assets and liabilities as of December 31, 2012 and 2013 are as follows:

	2012			2013

Deferred tax assets:
Accrued expenses	$	2,303		$	3,367
Sales-type leases		500			997
Alternative minimum tax and general business credits		3,297			4,903
Derivative loss		1,831			1,161
Stock option expense		15,259			20,832
Other		644			4,693
Loss carryforwards		79,819			126,563


Total deferred tax assets		103,653			162,516
Less valuation allowance		(81,257	)		(136,969	)


Net deferred tax assets		22,396			25,547


Deferred tax liabilities:
Depreciation and amortization—domestic		(20,291	)		(21,800	)
Depreciation and amortization—foreign		(1,045	)		(1,626	)
Partnership income		(2,071	)		(3,540	)


Total deferred tax liabilities		(23,407	)		(26,966	)


Net deferred tax liabilities	$	(1,011	)	$	(1,419	)

At December 31, 2013, the Company had federal, state and foreign net operating loss carryforwards of approximately $319,959, $318,012 and $36,892, respectively. The Company's federal, state and foreign net operating loss carryforwards will, if not utilized, expire beginning in 2026, 2014 and 2028, respectively. The Company also has federal tax credit carryforwards of $4,640, that will expire beginning in 2026, and federal capital loss carryforwards of $5,027, which if not utilized, will expire in 2018. Due to the change of ownership provisions of Internal Revenue Code Section 382, utilization of a portion of the Company's net operating loss and tax credit carryforwards may be limited in future periods.

In assessing the realizability of the net deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers projected future taxable income and tax planning strategies in making this assessment. As of December 31, 2012 and 2013, the Company provided a valuation allowance of $81,257, and $136,969, respectively, to reduce the net deferred tax assets due to uncertainty surrounding the realizability of these assets. The net change in the valuation allowance for the years ended December 31, 2011, 2012, and 2013 was $12,210, $27,928, and $55,711, respectfully.

As of December 31, 2013, the Company has not provided deferred U.S. income taxes or foreign withholding taxes on temporary differences of approximately $2,193 resulting from earnings of certain non-U.S. subsidiaries which are permanently reinvested outside the U.S. Unrecognized deferred taxes on remittance of these funds are not expected to be material.

On January 1, 2007, the Company adopted certain accounting guidance that clarifies the accounting for uncertain tax positions. This guidance requires that the Company recognize the impact of a tax position in its financial statements if the position is more likely than not of being sustained upon examination, based on the technical merits of the position. The total amount of unrecognized tax benefits as of December 31, 2011, 2012, and 2013 were $305, $515, and $17,398, respectively, of which, if recognized, $305, $515, and $838, respectively, would affect the effective tax rate, and $16,560, related to 2013, would increase the federal and state net operating loss carryforwards with a corresponding increase to the Company's valuation allowance.

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for the years ended December 31, 2012 and 2013:


Unrecognized tax benefit—December 31, 2011	$	305
Gross increases—tax positions in prior years		260
Gross (decreases)—tax positions in prior years		(50	)


Unrecognized tax benefit—December 31, 2012		515
Gross increases—tax positions in current year		16,685
Gross increases—tax positions in prior years		198


Unrecognized tax benefit—December 31, 2013	$	17,398

The Company has included the portion of VETC offset by the fuel tax the Company collects from its customers as an unrecognized tax benefit as of December 31, 2013. The Company believes the portion of VETC that is offset by the fuel tax the Company collects from its customers can be excluded from taxable income, although the ultimate outcome of this tax position is uncertain.

FASB authoritative guidance requires the Company to accrue interest and penalties where there is an underpayment of taxes based on the Company's best estimate of the amount ultimately to be paid. The Company's policy is to recognize interest accrued related to unrecognized tax benefits and penalties as income tax expense. During each of the years ended December 31, 2011, 2012 and 2013, the Company accrued interest of $6, $21, and $75, respectively.

The Company is subject to taxation in the United States and various states and foreign jurisdictions. The Company's tax years for 2009 through 2013 are subject to examination by various tax authorities. The Company is no longer subject to U.S. examination for years before 2010, and state examinations for years before 2009.

A number of years may elapse before an uncertain tax position is finally resolved. It is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, but the Company believes that its reserves for income taxes reflect the most probable outcomes. The Company adjusts the reserve, as well as the related interest and penalties, in light of changing facts and circumstances. The amount of penalties accrued is immaterial. Settlement of any particular position would usually require the use of cash and result in the reduction of the related reserve, or there could be a change in the amount of the Company's net operating loss. The resolution of a matter would be recognized as an adjustment to the provision for income taxes at the effective tax rate in the period of resolution. The Company does not expect that any of its uncertain tax positions will reverse within the next twelve months.