Current and deferred income tax expense (benefit) is summarized as follows (in thousands):

		Year Ended				Year Ended
		December 31,				December 31,
		2009				2008
Current
Domestic		$	13			$	70
State			203				195
Foreign			178				833
Total current			394				1,098
Deferred
Domestic			—				—
State			(41	)			—
Foreign			(24	)			(293	)
Total deferred			(65	)			(293	)
Total		$	329			$	805

     The components of the deferred tax asset (liability) are as follows (in thousands):

		December 31,				December 31,
		2009				2008
Deferred tax assets:
Allowance for doubtful accounts		$	797			$	390
Inventory reserve			713				762
Property and equipment			1,071				1,067
Net operating loss carryforwards			20,066				19,034
Other			1,326				1,458
			23,973				22,711
Less — Valuation allowance			23,326				22,041
Total deferred tax asset			647				670
Deferred tax liabilities:
Intangible assets			(143	)			(179	)
Other			(107	)			(138	)
Total deferred tax liabilities			(250	)			(317	)
Deferred tax assets, net		$	397			$	353

     Management believes that PFSweb has not established a sufficient history of earnings, on a stand-alone basis, to support the more likely than not realization of certain deferred tax assets in excess of existing taxable temporary differences. A valuation allowance has been provided for the majority of these net deferred income tax assets as of December 31, 2009 and 2008. At December 31, 2009, net operating loss carryforwards relate to taxable losses of PFSweb’s European subsidiary totaling approximately $7.2 million, PFSweb’s Canadian subsidiary totaling approximately $5.6 million and PFSweb’s U.S. subsidiaries totaling approximately $46.4 million that expire at various dates from 2010 through 2029. The U.S. NOL carryforward includes $4.6 million relating to tax benefits of stock option exercises and, if utilized, will be recorded against additional paid-in-capital upon utilization rather than as an adjustment to income tax expense from continuing operations. The U.S. NOL also includes approximately $21.0 million of NOL acquired through the acquisition of eCOST in 2006, which is subject to annual limits of $1.2 million under IRS Section 382.

     The Company evaluates its tax positions for potential liabilities associated with unrecognized tax benefits. As of December 31, 2009 and 2008, no unrecognized tax benefits, penalties or interest were identified or recorded. The Company does not expect to record unrecognized tax benefits in the next twelve months.

9. Commitments and Contingencies

     The Company leases facilities, warehouse, office, transportation and other equipment under operating leases expiring in various years through December 31, 2014. In most cases, management expects that, in the normal course of business, leases will be renewed or replaced by other leases. The Company’s facility leases generally contain one or more renewal options.