Note 3 - Income Taxes

9 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 3.   Income Taxes

Major components of our income tax provision (benefit) for the three and nine months ended September 30, 2014 and 2013 are as follows (in thousands):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
Current:
Domestic	$	(778	)	$	(5,641	)	$	4,529		$	(1,476	)
Foreign		3			114			386			344
Total current income tax provision (benefit)		(775	)		(5,527	)		4,915			(1,132	)
Deferred:
Domestic		2,043			3,390			(4,973	)		4,166
Foreign		(1,088	)		(405	)		(1,004	)		(4,956	)
Total deferred income tax provision (benefit)		955			2,985			(5,977	)		(790	)
Total income tax provision (benefit)	$	180		$	(2,542	)	$	(1,062	)	$	(1,922	)

As of September 30, 2014, we have a net deferred tax asset in the U.S. of $113.5 million and a net deferred tax liability in Canada of $157.5 million for a consolidated worldwide net deferred tax liability of $44.0 million. Our ability to utilize our deferred tax assets depends on future taxable income generated from operations. For the nine months ended September 30, 2014, there were no circumstances that caused us to change our assessment of the ability to generate sufficient future taxable income to realize the currently recognized U.S. deferred tax assets.  At September 30, 2014 and December 31, 2013, the balances of the valuation allowances on our deferred tax assets were $29 million and $27 million, respectively, primarily for foreign net operating loss carryforwards. The amount of the deferred tax asset considered recoverable, however, could be reduced in the near term if estimates of future taxable income are reduced.

The current income tax provisions for the three and nine months ended September 30, 2014 and 2013 vary from the amounts that would have resulted from applying the statutory income tax rate to pre-tax income primarily due to the effects of percentage depletion for all periods presented and the impact of taxation in foreign jurisdictions.