Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Tax Effects of Significant Items of Deferred Income Taxes

The tax effects of significant items comprising our net deferred income taxes are as follows:


	As of December 31,
	2013						2012
	Foreign			United States And Other			Foreign			United States And Other
	(in thousands)
Deferred tax assets:
Operating loss carryforwards	$	58,051		$	2,928		$	54,231		$	4,498
Stock-based compensation		—			8,056			—			8,091
Accrued compensation		—			598			—			739
Oil and gas properties		1,606			1,015			—			—
Alternative minimum tax credit		—			4,501			—			2,261
Other		—			145			—			861

Total deferred tax assets		59,657			17,243			54,231			16,450

Deferred tax liabilities:
Tax on unremitted earnings of foreign subsidiaries		—			(89,900	)		—			—
Accrued income		—			—			(1,005	)		—
Prepaids		—			(198	)		—			(373	)
Other liabilities		—			(82	)		—			(35	)
Fixed assets		—			(12	)		—			(28	)

Total deferred tax liabilities		—			(90,192	)		(1,005	)		(436	)

Net deferred tax asset (liability)		59,657			(72,949	)		53,226			16,014
Valuation allowance		(59,576	)		—			(52,427	)		(15,992	)

Net deferred tax asset (liability) after valuation allowance	$	81		$	(72,949	)	$	799		$	22

Components of Loss from Continuing Operations Before Income Taxes

The components of loss from continuing operations before income taxes are as follows:


	Year Ended December 31,
	2013			2012			2011
	(in thousands)
Loss before income taxes
United States	$	(31,072	)	$	(33,841	)	$	(30,309	)
Foreign		(40,725	)		(18,915	)		(58,193	)

Total	$	(71,797	)	$	(52,756	)	$	(88,502	)

Provision (Benefit) for Income Taxes on Continuing Operations

The provision (benefit) for income taxes on continuing operations consisted of the following at December 31:


	Year Ended December 31,
	2013			2012			2011
	(in thousands)
Current:
United States	$	2,279		$	(717	)	$	—
Foreign		44			929			3,693

		2,323			212			3,693

Deferred:
United States		72,971			(22	)		—
Foreign		(2,207	)		(799	)		(2,636	)

		70,764			(821	)		(2,636	)

	$	73,087		$	(609	)	$	1,057

Income Tax Expense (Benefit) on Continuing Operations at Federal Statutory Rate

A comparison of the income tax expense (benefit) on continuing operations at the federal statutory rate to our provision for income taxes is as follows:


	Year Ended December 31,
	2013			2012			2011
	(in thousands)
Income tax expense (benefit) from continuing operations:
Tax expense (benefit) at U.S. statutory rate	$	(25,129	)	$	(17,938	)	$	(30,805	)
Effect of foreign source income and rate differentials on foreign income		204			239			4,887
Tax gain associated with sale of interest in Harvest Holding		7,474			—			—
Subpart F income		16,615			—			—
Tax on unremitted earnings of foreign subsidiaries		89,900			—			—
Expired losses		1,356			—			—
Other changes in valuation allowance		(10,643	)		10,331			28,169
Change in applicable statutory rate		(404	)		—			—
Other permanent differences		(2,546	)		1,431			—
Return to accrual and other true-ups		2,919			1,257			—
Debt exchange		—			2,758			—
Warrant derivatives		(1,180	)		—			(1,445	)
Liability for uncertain tax positions		(5,553	)		799			237
Other		74			514			14

Total income tax expense – continuing operations		73,087			(609	)		1,057
Income tax expense (benefit) from discontinued operations:
Total income tax expense (benefit) – discontinued operations		—			—			5,748

Total income tax expense (benefit)	$	73,087		$	(609	)	$	6,805

Net Operating Losses Available for Carryforward

At December 31, 2013, we have the following net operating losses available for carryforward (in thousands):


United States	$	8,364	Available for up to 20 years from 2012
Indonesia		54,435	Available for up to 5 years from 2011
Gabon		23,268	Available for up to 3 years from 2010
Oman		25,174	Available for up to 5 years from 2009
The Netherlands		109,634	Available for up to 9 years from 2007
Venezuela		3,043	Available for up to 3 years from 2010
Colombia		1,214	Available indefinitely

Primary Income Tax Jurisdictions and their Respective Audit Years

Our primary income tax jurisdictions and their respective open audit years are:


Tax Jurisdiction		Open Audit Years
United States		2010 – 2013
The Netherlands		2010 – 2013
Singapore		2009 – 2013
United Kingdom		2012 – 2013
Venezuela		2009 – 2013
Colombia		2013

Unrecognized Tax Benefits

A reconciliation of the beginning amount, and current year additions, of unrecognized tax benefits follows:


	Year Ended December 31,
	2013			2012
	(in thousands)
Balance at beginning of year	$	5,871		$	5,072
Additions for tax positions of prior years		—			799
Reductions for tax positions of prior years		(5,553	)		—

Balance at end of year	$	318		$	5,871

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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