5. Income taxes:

The components of income (loss) before income taxes consist of the following (in thousands):

	Years Ended December 31,
	2016			2015			2014
Domestic	$	41,759		$	21,972		$	31,645
Foreign		(17,499	)		(9,260	)		(27,154	)

Total income before income taxes	$	24,260		$	12,712		$	4,491

The income tax expense is comprised of the following (in thousands):

	Years Ended December 31,
	2016			2015			2014
Current:
Federal	$	135		$	(9	)	$	(126	)
State		(188	)		4			(243	)
Foreign		(202	)		(96	)		(169	)
Deferred:
Federal		(8,175	)		(5,867	)		(2,352	)
State		(1,047	)		(1,959	)		(824	)
Foreign		146			111			20

Total income tax expense	$	(9,331	)	$	(7,816	)	$	(3,694	)

The adoption of ASU 2016-09 resulted in an increase to net operating loss carry-forwards of $6.2 million. Our consolidated temporary differences comprising our net deferred tax assets are as follows (in thousands):

	December 31,
	2016			2015
Deferred Tax Assets:
Net operating loss carry-forwards	$	373,655		$	370,344
Tax credits		2,237			2,317
Equity-based compensation		2,279			1,474

Total gross deferred tax assets		378,171			374,135

Deferred Tax Liabilities:
Depreciation and amortization		29,984			18,038
Accrued liabilities and other		95,606			97,417

Total gross deferred tax liabilities		125,590			115,455

Net deferred tax assets before valuation allowance		252,581			258,680
Valuation allowance		(210,340	)		(213,538	)

Net deferred tax assets	$	42,241		$	45,142

At each balance sheet date, the Company assesses the likelihood that it will be able to realize its deferred tax assets. The Company considers all available positive and negative evidence in assessing the need for a valuation allowance. The Company maintains a full valuation allowance against certain of its deferred tax assets consisting primarily of net operating loss carryforwards related to its foreign operations in Europe and Asia and net operating losses in the United States that are limited for use under Section 382 of the Internal Revenue Code.

As of December 31, 2016, the Company has combined net operating loss carry-forwards of $1.2 billion. This amount includes federal net operating loss carry-forwards in the United States of $465.3 million, net operating loss carry-forwards related to its European, Mexican and Asian operations of $732.7 million, $1.1 million and $1.1 million, respectively. Section 382 of the Internal Revenue Code in the United States limits the utilization of net operating losses when ownership changes, as defined by that section, occur. The Company has performed an analysis of its Section 382 ownership changes and has determined that the utilization of certain of its net operating loss carryforwards in the United States is limited based on the annual Section 382 limitation and remaining carryforward period, resulting in the Company being unable to utilize these net operating losses. For those carryforwards with limitations the Company continues to maintain a valuation allowance. Of the $465.3 million of net operating losses available at December 31, 2016 in the United States $286.1 million are unavailable for use and $87.5 million are limited for use under Section 382. Net operating loss carryforwards outside of the United States totaling $734.9 million are not subject to limitations similar to Section 382. The net operating loss carryforwards in the United States will expire, if unused, between 2024 and 2036. The net operating loss carry-forwards related to the Company's Mexican and Asian operations will expire if unused, between 2020 and 2025. The net operating loss carry-forwards related to the Company's European operations include $606.5 million that do not expire and $126.2 million that expire between 2017 and 2031.

The Company has not provided for United States deferred income taxes or foreign withholding taxes on its undistributed earnings for certain non-US subsidiaries earnings or cumulative translation adjustments because these earnings and adjustments are intended to be permanently reinvested in operations outside the United States. It is not practical to determine the amount of the unrecognized deferred tax liability on such undistributed earnings or cumulative translation adjustments.

In the normal course of business the Company takes positions on its tax returns that may be challenged by taxing authorities. The Company evaluates all uncertain tax positions to assess whether the position will more likely than not be sustained upon examination. If the Company determines that the tax position is not more likely than not to be sustained, the Company records a liability for the amount of the benefit that is not more likely than not to be realized when the tax position is settled. The Company does not expect that its liability for uncertain tax positions will increase during the twelve months ended December 31, 2017, however, actual changes in the liability for uncertain tax positions could be different than currently expected. If recognized, changes in the Company's total unrecognized tax benefits would impact the Company's effective income tax rate. The roll-forward of the liability for uncertain tax positions is below and excludes interest and penalties.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	Years Ended December 31,
	2016			2015			2014
Beginning balance of unrecognized tax benefits	$	776		$	866		$	1,000
Change attributable to tax positions taken during a prior period		—			—			82
Decrease attributable to settlements with taxing authorities		(776	)		—			(160	)
Decrease attributable to lapses of statutes of limitation		—			(90	)		(56	)

Ending balance of unrecognized tax benefits	$	—		$	776		$	866

The Company or one of its subsidiaries files income tax returns in the US federal jurisdiction and various state and foreign jurisdictions. The Company is subject to US federal tax and state tax examinations for years 2004 to 2016. The Company is subject to tax examinations in its foreign jurisdictions generally for years 2005 to 2016.

The following is a reconciliation of the Federal statutory income taxes to the amounts reported in the financial statements (in thousands).

	Years Ended December 31,
	2016			2015			2014
Federal income tax (expense) benefit at statutory rates	$	(8,492	)	$	(4,450	)	$	(1,572	)
Effect of:
State income taxes, net of federal benefit		(1,080	)		(1,710	)		(590	)
Impact of foreign operations		138			(179	)		(267	)
Non-deductible expenses		(590	)		(1,253	)		(659	)
Changes in tax reserves		175			128			165
Other		98			(16	)		(191	)
Changes in valuation allowance		420			(336	)		(580	)

Income tax expense	$	(9,331	)	$	(7,816	)	$	(3,694	)