Notes to Consolidated Financial Statements  (continued) Temporary differences that gave rise to deferred tax assets and  liabilities are as follows (in thousands): We evaluate the realizability of our deferred tax assets on a quarterly  basis. The Company performed an analysis of all available evidence,  both positive and negative, consistent with the provisions under  the Income Taxes topic of the ASC. Some of the evidence evaluated  includes our historical operating performance, the macroeconomic  factors contributing to the recent fiscal loss and our forecast of future  taxable income, including the availability of prudent and feasible tax  planning strategies. In fiscal 2013, the Company remained in a three- year cumulative loss position, which represents negative evidence. The three-year cumulative loss is a significant piece of negative  evidence and while management believes that it is primarily a result  of losses that were primarily attributable to the recent significant  economic conditions and not an indication of continuing operations,  ASC 740 requires that objective historical evidence be given more  weight than subjective evidence, such as forecasts of future income. Accordingly, in fiscal 2013, the Company continues to maintain a  valuation allowance on most of its deferred tax assets. The valuation  allowance on deferred tax assets will continue to fluctuate as a  result of temporary differences between the financial reporting and  tax basis of the assets and liabilities as well as the generation of net  operating loss and tax credit carryforwards. Included in the deferred tax asset is $6.5 million related to federal,  state and foreign net operating loss carryforwards for which a  valuation allowance of $6.5 million has been recorded. US federal net  operating loss carryforwards total $14.0 million as of December 28,  2013, and expire in 2032 and 2033. As of December 28, 2013, foreign  net operating loss carry forwards total $2.0 million, of which $1.2  million expire in 2034 and $0.8 million do not expire. Also included in  the deferred tax asset is $5.5 million related to tax credits for which a  valuation allowance of $5.5 million has been recorded. Income taxes and remittance taxes have not been recorded on  approximately $8.0 million of undistributed earnings of foreign  operations of the Company, because the Company intends to reinvest  those earnings indefinitely. It is not practicable to estimate the  income tax liability that might be incurred if such earnings were  remitted to the United States. The Company had total unrecognized tax benefits of $0.2 million as  of December 28, 2013 and December 29, 2012. The Company reviews  its uncertain tax positions periodically and accrues interest and  penalties accordingly in income tax expense.  A reconciliation of the beginning and ending amount of  unrecognized tax benefits is as follows (in thousands):  As of December 28, 2013, approximately $0.2 million of the  unrecognized tax benefits would impact the Company’s provision  for income taxes and effective tax rate if recognized. Management  estimates that it is reasonably possible that the total amount of  uncertain tax benefits could decrease by as much as $0.1 million  within the next 12 months, primarily as a result of the resolution  of audits currently in progress and the lapsing of the statute of  limitations in certain jurisdictions.  The Company’s income before income taxes from domestic and  foreign operations (which include the United Kingdom, Canada,  France and Ireland), are as follows (in thousands):  2013 FORM 10-K 43 BUILD-A-BEAR WORKSHOP, INC.  Tax Reserve Balance as of December 31, 2011  $ 213  Lapse of statute (28 ) Addition to reserve -  Balance as of December 29, 2012 185  Lapse of statute (139) Audit settlement release (4) Addition to reserve 7  Balance as of December 28, 2013 $ 49  2013 2012 Deferred tax assets: Deferred revenue $ 4,516  $ 4,676  Accrued rents 1,682  1,884  Net operating loss carryforwards 6,462 4,336  Intangible assets 1,639  1,799  Deferred compensation 2,040  2,089  Carryforward of tax credits 5,453  4,585  Receivable and investment write-offs 624  641  Stock compensation 179  179  Depreciation -  1,871  Other 2,555  2,054  25,150 24,114  Less: Valuation allowance 20,987 20,865  Total deferred tax assets 4,163  3,249  Deferred tax liabilities: Depreciation (184 ) -  Other (3,106 ) (2,321) Total deferred tax liabilities (3,290 ) (2,321) Net deferred tax asset $ 873  $ 928 