6. Income Taxes

Income tax expense (benefit) consisted of the following:


	Years Ended October 31,
	2013			2012			2011
	(In thousands)
Current:
Federal	$	63,923		$	23,641		$	(84,207	)
State		5,589			992			(4,420	)

		69,512			24,633			(88,627	)
Deferred:
Federal		(1,389	)		6,435			23,656
State		(5,450	)		(40	)		(11,869	)
Change in valuation allowance		6,823			1,600			9,675

		(16	)		7,995			21,462

	$	69,496		$	32,628		$	(67,165	)

Significant components of the Company’s deferred tax assets and liabilities were as follows:


	October 31,
	2013			2012
	(In thousands)
Deferred tax liabilities:
Property, plant and equipment	$	69,942		$	66,957
Prepaid and other assets		1,765			1,374

Total deferred tax liabilities		71,707			68,331
Deferred tax assets:
Accrued expenses and accounts receivable		9,187			7,742
Inventory		85			670
Compensation on restricted stock		7,514			6,523
State income tax credits		18,098			11,275
Other		2,310			769
Valuation allowance		(18,098	)		(11,275	)

Total deferred tax assets		19,096			15,704

Net deferred tax liabilities	$	52,611		$	52,627


Current deferred tax assets	$	(478	)	$	(3,945	)
Long-term deferred tax liabilities		53,089			56,572

Net deferred tax liabilities	$	52,611		$	52,627

The differences between the consolidated effective income tax rate and the federal statutory rate of 35.0% are as follows:


	Years Ended October 31,
	2013			2012			2011
	(In thousands)
Income taxes at statutory rate	$	70,040		$	30,300		$	(67,985	)
State income taxes		4,525			1,659			(4,299	)
State income tax credits		(6,823	)		(1,600	)		(9,675	)
Federal income tax credits		(715	)		(130	)		(748	)
Federal manufacturers (deduction) recapture		(6,469	)		(2,191	)		5,281
Nondeductible expenses		2,353			3,008			678
Other, net		(238	)		(18	)		(92	)
Change in valuation allowance		6,823			1,600			9,675

Income tax expense (benefit)	$	69,496		$	32,628		$	(67,165	)

Included in the deferred tax assets at October 31, 2013, are North Carolina Investing in Business Property Credit and North Carolina Jobs Credits totaling $13,676,000, as well as Georgia Job Tax Credits totaling $4,422,000. The North Carolina Investing in Business Property Credit provides a 7% investment tax credit for property located in a North Carolina development area, the North Carolina Creating Jobs Credit provides a tax credit for increased employment in North Carolina, and the Georgia Job Tax Credit provides a tax credit for creation and retention of qualifying jobs in Georgia. It is management’s opinion that the North Carolina and Georgia income tax credits will not be utilized before they expire, and an $18,098,000 gross valuation allowance has been recorded. These credits expire between fiscal years 2017 and 2023.