

12.	Income Taxes

The provision for income taxes is comprised of the following (in thousands):



	For the Years Ended December 31,
	2013			2012			2011
Federal:
Current	$	54,915		$	51,342		$	45,765
Deferred	16,150			(27,103		)	17,330
	71,065			24,239			63,095
State:
Current	11,156			9,896			10,710
Deferred	3,017			(5,081		)	2,222
	14,173			4,815			12,932
Foreign:
Current	3,318			4,035			—
Deferred	(1,103		)	(1,214		)	—
	2,215			2,821			—
	$	87,453		$	31,875		$	76,027



12.	Income Taxes, continued

The net deferred income tax assets (liabilities) at December 31, 2013 and 2012 are comprised of the following (in thousands):



	December 31,
	2013			2012
Current deferred income tax assets:
Accounts receivable	$	6,598		$	6,085
State taxes	4,333			2,471
Other liabilities and reserves	14,298			9,716
Other assets	7,042			7,119
Inventory	1,547			1,275
Valuation allowance	(4,911		)	(4,087		)
Total current deferred income tax assets	$	28,907		$	22,579
Non-current deferred income tax (liabilities) assets:
Net operating loss carryforwards	$	28,111		$	29,805
Write-down of assets	—			1,222
Start-up costs	—			335
Other assets	27,287			24,955
Intangible assets	(126,451		)	(107,112		)
Property and equipment	(26,393		)	(22,649		)
Share-based compensation	6,226			7,377
Valuation allowance	(8,879		)	(9,779		)
Total non-current deferred income tax (liabilities), net	$	(100,099	)	$	(75,846	)

At December 31, 2013, we had Federal net operating loss (“NOL”) carryforwards of approximately $68.5 million, comprised mainly of acquired NOL carryforwards. These NOLs expire at various dates through 2032. The utilization of NOL carryforwards to reduce taxable income is subject to certain statutory limitations. Events that cause such a limitation include, but are not limited to, a cumulative ownership change of more than 50% over a three-year period. We believe that some of our acquisitions caused such a change of ownership and, accordingly, utilization of the NOL carryforwards may be limited in future years. Accordingly, the valuation allowance is principally related to subsidiaries’ NOL carryforwards. The change in valuation allowance in 2012 is related to investment-related loss carryforwards which expired in 2012. We believe that it is more likely than not that the benefit from the remaining net deferred tax assets will be realizable.

Our effective tax rate was 38.9%, 41.2% and 44.3% in 2013, 2012 and 2011, respectively.

A reconciliation of the provision for income taxes to the amount computed at the Federal statutory rate is as follows:



	For Years Ended December 31,
	2013		2012		2011
Federal income tax at statutory rate	35.0	%	35.0	%	35.0	%
State taxes, net of Federal benefit	4.2		4.1		4.9
Goodwill impairment	—		4.6		4.3
AVC gain	—		(2.6	)	—
Foreign rate differential	(0.4	)	(1.1	)	—
Miscellaneous	0.1		1.2		0.1
	38.9	%	41.2	%	44.3	%

We are regularly audited by federal and state tax authorities. The statute is generally open for four years for state audits. We are currently under IRS audit for the 2011 taxable year.