10. Income Taxes

Income tax expense is summarized as follows:

	Year Ended December 31,

(In thousands)	2013		2012		2011
Current
Federal	$	56,544	$	24,618	$	39,749
State		10,841		563		(1,714	)


Total		67,385		25,181		38,035


Deferred
Federal		111,147		57,704		46,599
State		27,233		23,225		28,145


Total		138,380		80,929		74,744


Total income tax expense	$	205,765	$	106,110	$	112,779

Total income taxes were different than the amounts computed by applying the statutory federal income tax rate as follows:

	Year Ended December 31,

(In thousands)	2013		2012			2011
Statutory federal income tax rate		35%		35%			35%
Computed "expected" federal income tax	$	169,938	$	83,244		$	82,316
State income tax, net of federal income tax benefit		17,513		9,609			8,989
Deferred tax adjustment related to change in overall state tax rate		15,220		13,596			19,068
Other, net		3,094		(339	)		2,406


Total income tax expense	$	205,765	$	106,110		$	112,779

The tax effects of temporary differences that resulted in significant portions of the deferred tax liabilities and deferred tax assets were as follows:

	December 31,

(In thousands)	2013		2012
Deferred Tax Assets
Net operating loss carryforward	$	78,182	$	137,422
Alternative minimum tax carryforward		182,212		125,862
Foreign tax credit		4,822		4,923
Derivatives and hedging		3,946		—
Incentive compensation		36,450		30,985
Deferred compensation		11,988		8,485
Post-retirement benefits		13,965		16,498
Other		3,619		7,078


Total		335,184		331,253


Deferred Tax Liabilities
Properties and equipment		1,321,241		1,199,213
Derivatives and hedging		—		19,915


Total		1,321,241		1,219,128


Net deferred tax liabilities	$	986,057	$	887,875

As of December 31, 2013, the Company had alternative minimum tax credit carryforwards of $182.2 million which do not expire and can be used to offset regular income taxes in future years to the extent that regular income taxes exceed the alternative minimum tax in any such year. The Company also had net operating loss carryforwards of $221.1 million and $378.6 million for federal and state reporting purposes, respectively, the majority of which will expire between 2019 and 2033. The Company believes it is more likely than not that these deferred tax benefits will be utilized prior to their expiration. Tax benefits related to employee stock-based compensation included in net operating loss carryforwards but not reflected in deferred tax assets as of December 31, 2013 are approximately $66.4 million.

Unrecognized Tax Positions

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:

	Year Ended December 31,

(In thousands)	2013		2012		2011
Unrecognized tax benefit balance at beginning of year	$	—	$	—	$	—
Additions based on tax provisions related to the current year		3,700		—		—
Additions for tax positions of prior years		—		—		—
Reductions for tax positions of prior years		—		—		—
Settlements		—		—		—


Unrecognized tax benefit balance at end of year	$	3,700	$	—	$	—

During 2013, the Company recorded unrecognized tax benefits of $3.7 million based on the allocation of certain income tax gains associated with its recent divestitures for purposes of computing state income taxes. If recognized, the net tax benefit of $2.4 million would not have a material effect on the Company's effective tax rate.

The Company files income tax returns in the U.S. federal jurisdiction, various states and other jurisdictions. The Company is no longer subject to examinations by state authorities before 2009 or by federal authorities before 2010. The Company is not currently under examination by the Internal Revenue Service.