Radian Group Inc. Notes to Consolidated Financial Statements - (Continued) 15. Income Taxes The components of our consolidated income tax provision are as follows:  Year Ended December 31, 2010 (In thousands) Before Tax Tax Effect Net of Tax Other comprehensive income: Foreign currency translation adjustments: Unrealized foreign currency translation adjustment . . . . . . . . . $ 5,065 $ 1,737 $ 3,328 Less: Reclassification adjustment for liquidation of foreign  subsidiary and other adjustments included in net (loss)  income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 799 280 519 Net foreign currency translation adjustments . . . . . . . . . . . . . . 4,266 1,457 2,809 Unrealized gains (losses) on investments: Unrealized holding gains arising during the period . . . . . . . . . 63,329 22,165 41,164 Less: Reclassification adjustment for net losses included in  net (loss) income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,817) (2,036) (3,781) Net unrealized gains on investments . . . . . . . . . . . . . . . . . . . . 69,146 24,201 44,945 Other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 73,412 $ 25,658 $ 47,754 Year Ended December 31, (In thousands) 2012 2011 2010 Current. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,271 $ 59,604 $ (155,219) Deferred. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000 6,758 381,408 Total income tax provision . . . . . . . . . . . . . . . $ 7,271 $ 66,362 $ 226,189 The reconciliation of taxes computed at the statutory tax rate of  35% for 2012, 2011 and 2010 to the provision for income  taxes is as follows:  Year Ended December 31, (In thousands) 2012 2011 2010 (Benefit) provision for income taxes computed at the statutory tax rate .... $ (155,469) $ 128,979 $ (552,887) Change in tax resulting from: Tax-exempt municipal bond interest and dividends received deduction (net of proration). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,101) (5,237) (15,592) Foreign tax expense (benefit). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146 (13,496) (10,397) State tax expense (benefit). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,003 (6,224) (15,692) Unrecognized tax (benefit) expense. . . . . . . . . . . . . . . . . . . . . . . . . . . (2,906) 17,860 (25,915) Deferred inventory adjustment related to fair value of derivatives  and other financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (23,217) — — Valuation allowance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188,290 (50,582) 844,975 Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (475) (4,938) 1,697 Provision for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,271 $ 66,362 $ 226,189 241