Note 11. Income Taxes

Our provision for income taxes consists of the following:

	Year Ended December 31,

	2013			2012		2011
Current:
State	$	519		$	765	$	542
Foreign		2,572			199		465


		3,091			964		1,007


Deferred:
State		—			—		—
Foreign		(457	)		2,243		340


		(457	)		2,243		340


Income tax provision	$	2,634		$	3,207	$	1,347

A reconciliation of our effective tax rate and the U.S. Federal statutory income tax rate is as follows:

	Year Ended December 31,

	2013			2012			2011
Taxes at statutory U.S. federal income tax rate		35.00	%		35.00	%		35.00	%
Dividends paid deduction		(35.00	)%		(35.00	)%		(35.00	)%
State, local, and foreign income taxes, net of federal tax benefit		(1.71	)%		(4.20	)%		1.22	%


Effective tax rate		(1.71	)%		(4.20	)%		1.22	%

Deferred income tax assets and liabilities represent the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes, and are determined using tax rates expected to be in effect when the deferred income tax assets and liabilities are anticipated to be paid or recovered. At December 31, 2013 and 2012, we had deferred tax assets of $2,601 and $2,329, respectively, and deferred tax liabilities of $3,287 and $3,643, respectively, which primarily relate to different carrying amounts for financial reporting and for Australian income tax purposes related to our properties and operations in Australia. Because we are uncertain of our ability to realize the future benefit of certain Australian loss carry forwards, we have reduced our net deferred income tax assets by a valuation allowance of $511 and $598 as of December 31, 2013 and 2012, respectively.