Note 3 - Income Taxes

3 Months Ended

Mar. 31, 2016

Note 3. Income Taxes

Major components of our income tax provision for the three months ended March 31, 2016 and 2015 are as follows (in thousands):

	Three Months Ended
	March 31,
	2016			2015
Current:
Domestic	$	(2,506	)	$	97
Foreign		1,015			708
Total current income tax (benefit) provision		(1,491	)		805

Deferred:
Domestic		588			2,422
Foreign		2,557			(1,788	)
Total deferred income tax provision (benefit)		3,145			634
Total income tax provision	$	1,654		$	1,439

As of March 31, 2016

, we have a net deferred tax asset in the U.S. of $42.3 million, a net deferred tax liability in Canada of $127.1 million, and a net deferred tax asset in Mexico of $7.9 million, for a consolidated worldwide net deferred tax liability of $76.9 million. Our ability to utilize our deferred tax assets depends on future taxable income generated from operations. For the three months ended March 31, 2016

, 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 deferred tax assets. At March 31, 2016

and December 31, 2015

, the balances of the valuation allowances on our deferred tax assets were $113 million and $116 million, respectively, primarily for net operating losses and tax credit 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 months ended March 31, 2016

and 2015 vary from the amounts that would have resulted from applying the statutory income tax rate to pre-tax income due primarily to the effects of percentage depletion for all periods presented and the impact of taxation in foreign jurisdictions.