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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income (Loss) from Continuing Operations before Income Taxes Attributable to Geographic Locations

Income (loss) before income taxes is attributable to the following geographic locations for the years ended December 31, (in thousands):



	2015		2014			2013
Domestic	$	123,153	$	(46,876	)	$	(28,362	)
Foreign	87,845		131,609			140,641
Income before income taxes and income (loss) attributable to redeemable non-controlling interests	$	210,998	$	84,733		$	112,279

Components of Tax Benefit (Expenses) for Income Taxes from Continuing Operations

The tax benefit (expenses) for income taxes consisted of the following components for the years ended December 31, (in thousands):



	2015			2014			2013
Current:
Federal	$	(85,352	)	$	(98,445	)	$	(100,035	)
State and local	(3,984		)	(16,243		)	(15,260		)
Foreign	(27,090		)	(31,844		)	(29,377		)
Subtotal	(116,426		)	(146,532		)	(144,672		)
Deferred:
Federal	87,801			(177,877		)	111,721
State and local	4,600			(21,539		)	17,044
Foreign	801			489			(249		)
Subtotal	93,202			(198,927		)	128,516
Provision for income taxes	$	(23,224	)	$	(345,459	)	$	(16,156	)

Income Tax Reconciliation

The fiscal 2015, 2014 and 2013 income tax expense differed from the amounts computed by applying the U.S. federal income tax rate of 35% to pre-tax income as a result of the following for the years ended December 31 (in thousands):



	2015			2014			2013
Federal tax at statutory rate	$	(73,849	)	$	(29,657	)	$	(39,298	)
State and local taxes	945			1,370			7,435
Deferred tax assets generated in current year not benefited	(4,916		)	(3,311		)	(4,777		)
Foreign income tax rate differential	30,387			20,002			21,392
Non-deductible expenses	(14,252		)	(1,274		)	(2,525		)
Stock-based compensation expense	(3,922		)	(4,496		)	(3,273		)
Change in valuation allowance	710			1,655			1,362
Foreign financing benefits	2,592			2,981			4,303
Uncertain tax positions reserve	(3,191		)	(463		)	2,952
Statutory rate change due to REIT conversion	45,823			(324,142		)	—
Other, net	(3,551		)	(8,124		)	(3,727		)
Total income tax expense	$	(23,224	)	$	(345,459	)	$	(16,156	)

Schedule of Deferred Tax Assets and Liabilities

The types of temporary differences that give rise to significant portions of the Company’s deferred tax assets and liabilities are set out below as of December 31 (in thousands):



	2015			2014
Deferred tax assets:
Reserves and accruals	$	13,013		$	11,952
Stock-based compensation expense	1,459			1,185
Unrealized currency gains/losses	10,656			—
Others, net	18			—
Operating loss carryforwards	34,457			27,687
Gross deferred tax assets	59,603			40,824
Valuation allowance	(29,894		)	(27,181		)
Total deferred tax assets, net	29,709			13,643
Deferred tax liabilities:
Property, plant and equipment	(3,365		)	(78,261		)
Unrealized currency gains/losses	—			(502		)
Fixed assets fair value step-up	(5,683		)	(7,210		)
Intangible assets	(60,133		)	(28,433		)
Total deferred tax liabilities	(69,181		)	(114,406		)
Net deferred tax liabilities	$	(39,472	)	$	(100,763	)

Changes in Valuation Allowance for Deferred Tax Assets

Changes in the valuation allowance for deferred tax assets for the years ended December 31, 2015, 2014 and 2013 are as follows (in thousands):



	2015			2014			2013
Beginning balance	$	27,181		$	31,058		$	44,868
Recognized into income	(710		)	(1,655		)	(1,362		)
Current Increase (Decrease)	4,513			721			(10,156		)
NOL and tax credit expiration	—			238			11
Translation adjustment	(1,090		)	(3,181		)	(2,303		)
Ending balance	$	29,894		$	27,181		$	31,058

Schedule of Net Operating Loss Carryforwards

The Company’s net operating loss carryforwards for federal, state and foreign tax purposes which expire, if not utilized, at various intervals from 2015, are outlined below (in thousands):



Expiration Date	Federal ⁽¹⁾		State ⁽¹⁾		Foreign		Total
2016	$	—	$	12,793	$	1,464	$	14,257
2017 to 2019	—		190		32,464		32,654
2020 to 2022	213,390		—		11,798		225,188
2023 to 2025	26,838		4,005		9,611		40,454
2026 to 2028	12,186		—		—		12,186
2029 to 2031	—		3,330		—		3,330
Thereafter	—		—		152,073		152,073
	$	252,414	$	20,318	$	207,410	$	480,142


(1)	The total amount of net operating loss carryforwards that will not be available to offset the Company’s future taxable income after dividend paid deduction due to Section 382 limitations was $258,339, comprising $241,766 of federal and $16,573 of state.

Reconciliation of Unrecognized Tax Benefits

The beginning and ending balances of the Company's unrecognized tax benefits are reconciled below for the years ended December 31 (in thousands):



	2015			2014			2013
Beginning balance	$	36,138		$	36,552		$	25,050
Gross increases related to prior year tax positions	—			1,200			14,596
Gross decreases related to prior year tax positions	(8,645		)	(984		)	(3,028		)
Gross increases related to current year tax positions	4,802			1,538			1,498
Decreases resulting from expiration of statute of limitation	(1,450		)	(1,112		)	(1,564		)
Decreases resulting from settlements	—			(1,056		)	—
Ending balance	$	30,845		$	36,138		$	36,552