Income taxes (Tables)

12 Months Ended

Dec. 31, 2016

Reconciliation of Bermuda Income Tax Expense to Actual Income Tax Expense

The income tax provision differs from the amount that would be obtained by applying the Bermuda statutory income tax rate of 0% for 2016, 2015 and 2014 to income (loss) from continuing operations for the year as follows:

	2016			2015			2014
	(in thousands except rates)
Statutory rate		0.00	%		0.00	%		0.00	%

(Loss) income from continuing operations before income taxes	$	(16,399	)	$	(4,436	)	$	42,873
Increase (decrease) resulting from:
Foreign tax rate differentials	$	(1,018	)	$	1,676		$	9,262
Uncertain tax position		(958	)		10,066			1,260
Unremitted earnings		4,777			11,561			–
Derivative contracts		–			(5,038	)		–
Change in valuation allowance		(147	)		3,232			228
Expiration of non-capital tax loss carryovers		2,056			1,740			1,841
Other		1,336			(1,008	)		1,068
Total	$	6,046		$	22,229		$	13,659

Components of Net Deferred Income Tax Liability

The components of the net deferred income tax liability at December 31, 2016 and 2015 were as follows:

	2016			2015
	(in thousands)
Deferred tax assets
Property and equipment	$	3,003		$	3,749
Unrealized gains on derivative contracts		168			–
Timing of accruals		162			351
Non-capital loss carryovers		22,364			24,098
Valuation allowance		(25,452	)		(27,870	)
Total deferred tax assets	$	245		$	328
Deferred tax liabilities
Property and equipment	$	(9,986	)	$	(15,514	)
Unremitted earnings		(8,586	)		(6,981	)
Timing of accruals		(479	)		(436	)
Total deferred tax liabilities		(19,051	)		(22,931	)
Net deferred tax liabilities	$	(18,806	)	$	(22,603	)
Components of net deferred tax liabilities
Non-current assets	$	245		$	-
Non-current liabilities		(19,051	)		(22,603	)
Net deferred tax liabilities	$	(18,806	)	$	(22,603	)

Schedule of Unrecognized Tax Benefits

The unrecognized tax benefits at December 31, 2016 and 2015 were as follows:

	2016			2015
	(in thousands)
Unrecognized tax benefits at beginning of period	$	11,014		$	1,188
Gross increases - tax positions in prior period		910			–
Gross decreases - tax positions in prior period		(3,087	)		–
Gross increases - tax positions in current period		1,219			10,066
Gross decreases - tax positions in current period		–			–
Foreign exchange change effect		(1,914	)		(240	)
Unrecognized tax benefits at end of period		8,142			11,014
Less: TBNG liability held for sale		(63	)		(76	)
Unrecognized tax benefits at end of period	$	8,079		$	10,938