(9) Income Taxes

The following is an analysis of the consolidated income tax benefit from continuing operations:

	2012			2013			2014
	(In thousands)
Current	$	(162	)	$	134		$	(12	)
Deferred		(50,472	)		(56,291	)		(24,677	)
	$	(50,634	)	$	(56,157	)	$	(24,689	)

Deferred income taxes are provided to reflect the future tax consequences or benefits of differences between the tax basis of assets and liabilities and their reported amounts in the financial statements using enacted tax rates. The difference between the Company's customary rate of 35% and the effective tax rate on income from continuing operations is due to the following:

	2012			2013			2014
	(In thousands)
Tax benefit at statutory rate	$	(53,799	)	$	(57,008	)	$	(28,630	)
Tax effect of:
Nondeductible compensation		2,545			1,545			756
State taxes, net of federal tax benefit and valuation allowance		410			(799	)		2,979
Other		210			105			206
Total	$	(50,634	)	$	(56,157	)	$	(24,689	)

	2012			2013			2014
Statutory rate		35.0	%		35.0	%		35.0	%
Tax effect of:
Nondeductible compensation		(1.7	)		(0.9	)		(0.9	)
State taxes, net of federal tax benefit and valuation allowance		(0.3	)		0.5			(3.6	)
Other		(0.1	)		(0.1	)		(0.3	)
Effective tax rate		32.9	%		34.5	%		30.2	%

The tax effects of significant temporary differences representing the net deferred tax asset and liability at December 31, 2013 and 2014 were as follows:

	2013			2014
	(In thousands)
Current deferred tax liabilities:
Derivative financial instruments	$	(339	)	$	—
Net current deferred tax liability		(339	)		—
Noncurrent deferred tax assets (liabilities):
Property and equipment		(238,361	)		(259,222	)
Other assets		8,221			7,854
Net operating loss carryforwards		70,207			126,026
Alternative minimum tax carryforward		21,178			20,435
Valuation allowance on net operating loss carryforwards		(35,507	)		(46,639	)
Other		(2,764	)		(3,001	)
Net noncurrent deferred tax liability		(177,026	)		(154,547	)
Net deferred tax liability	$	(177,365	)	$	(154,547	)

At December 31, 2014, Comstock had the following carryforwards available to reduce future income taxes:

Types of Carryforward	Years of Expiration Carryforward	Amount
		(In thousands)
Net operating loss - U.S. federal	2017 – 2033	$	212,769
Net operating loss - Louisiana	2015 – 2028	$	991,483
Alternative minimum tax credits	Unlimited	$	20,435

The utilization of $34.7 million of the U.S. federal net operating loss carryforwards is limited to approximately $1.1 million per year pursuant to a prior change of control of an acquired company. Accordingly, a valuation allowance of $23.0 million, with a tax effect of $8.0 million, has been established for the estimated U.S. federal net operating loss carryforwards that will not be utilized. Realization of the remaining U.S. federal net operating loss carryforwards requires Comstock to generate taxable income within the carryforward period. A valuation allowance of $528.1 million, with a tax effect of $27.5 million as of December 31, 2013, and a valuation allowance of $742.2 million, with a tax effect of $38.6 million as of December 31, 2014, has been established against the Louisiana state net operating loss carryforwards due to the uncertainty of generating taxable income in the state of Louisiana prior to the expiration of the carry-over period.

The Company's federal income tax returns for the years subsequent to December 31, 2010 remain subject to examination. The Company's income tax returns in major state income tax jurisdictions remain subject to examination for various periods subsequent to December 31, 2009. State tax returns in two state jurisdictions are currently under review. The Company currently believes that resolution of these matters will not have a material impact on its financial statements. The Company currently believes that its significant filing positions are highly certain and that all of its other significant income tax filing positions and deductions would be sustained upon audit or the final resolution would not have a material effect on the consolidated financial statements. Therefore, the Company has not established any significant reserves for uncertain tax positions. Interest and penalties resulting from audits by tax authorities have been immaterial and are included in the provision for income taxes in the consolidated statements of operations.