Income Taxes

Income Tax Expense

The Company’s income tax expense (benefit) for the three months ended March 31, 2017 and 2016 consisted of the following:



	Three Months Ended March 31
	2017			2016
Federal current				$	1,115
Federal deferred	$	152		(761		)
Foreign current	88			134
Foreign deferred	(121		)	(210		)
State current	86			127
State deferred	3			(103		)
Total income tax expense	$	208		$	302

Deferred Taxes

Deferred tax assets and liabilities as of March 31, 2017 and December 31, 2016 were as follows:



	2017			2016
Deferred tax assets:
Federal	$	1,983		$	3,230
Foreign	1,946			1,673
State	851			935
Total deferred tax assets	$	4,780		$	5,838
Valuation allowances	(1,765		)	(1,812		)
Net deferred tax assets	$	3,015		$	4,026
Deferred tax liabilities:
Foreign	$	1,102		$	1,124
Total deferred tax liabilities	$	1,102		$	1,124

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.