Income Taxes

Income Tax Expense

The Company’s income tax expense (benefit) for the three and six months ended June 30, 2016 and 2015 consisted of the following:



	Three Months Ended June 30						Six Months Ended June 30
	2016			2015			2016			2015
Federal current	$	682		$	260		$	1,797		$	756
Federal deferred	(425		)	(20		)	(1,186		)	(105		)
Foreign current	16			492			150			766
Foreign deferred	141			(185		)	(69		)	(156		)
State current	80			135			207			255
State deferred	(52		)	6			(155		)	10
Total income tax expense	$	442		$	688		$	744		$	1,526

Deferred Taxes

Deferred tax assets and liabilities as of June 30, 2016 and December 31, 2015 were as follows:



	2016			2015
Deferred tax assets:
Federal	$	2,012		$	1,427
Foreign	1,746			1,676
State	980			944
Total deferred tax assets	$	4,738		$	4,047
Valuation allowances	(1,792		)	(1,913		)
Net deferred tax assets	$	2,946		$	2,134
Deferred tax liabilities:
Federal				$	602
Foreign	$	567		501
State				70
Total deferred tax liabilities	$	567		$	1,173

The Company believes that it is more likely than not that the results of future operations will generate sufficient taxable income to recognize the net deferred tax assets. These future operations are primarily dependent upon the Manager’s profitability, the timing and amounts of gains on peripheral land sales, the profitability of Taubman Asia's operations, and other factors affecting the results of operations of the taxable REIT subsidiaries. The valuation allowances relate to net operating loss carryforwards and tax basis differences where there is uncertainty regarding their realizability.