Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Sources of income (loss) before income taxes

The sources of income (loss) before income taxes are as follows (in thousands):



	Years Ended December 31,
	2015			2014			2013
Domestic	$	21,065		$	(162,151	)	$	(221,185	)
Foreign	(42,175		)	55,215			387
Total	$	(21,110	)	$	(106,936	)	$	(220,798	)

Components of income taxes

Components of income taxes are as follows (in thousands):



	Years Ended December 31,
	2015			2014			2013
Current:
Federal	$	(4,715	)	$	(678	)	$	4,113
State and local	41			(42		)	485
Foreign	1,274			21,722			16,278
Deferred:
Federal	2,726			1,004			4,012
Foreign	4,718			(1,424		)	832
Total income tax expense	$	4,044		$	20,582		$	25,720

Reconciliation of the expected income tax expense on income (loss) before income taxes using the statutory federal income tax

A reconciliation of the expected income tax expense on income (loss) before income taxes using the statutory federal income tax rate of 35% for 2015, 2014 and 2013 to income tax expense follows (in thousands):



	Years Ended December 31,
	2015			2014			2013
Expected income tax expense at 35%	$	(7,389	)	$	(37,428	)	$	(77,279	)
Foreign tax rate differential	1,769			(10,481		)	(2,348		)
Foreign tax differences	4,104			6,444			16,808
State and local taxes	41			(42		)	485
Nondeductible expenses	578			(1,584		)	(58		)
Goodwill impairment	—			9,444			—
Expired Capital Loss	15,950
Valuation allowance:
Valuation allowance on equity in losses of INOVA Geophysical	—			17,644			7,871
Valuation allowance on expiring capital losses	(15,950		)	—			—
Valuation allowance on operations	4,941			36,585			80,241
Total income tax expense	$	4,044		$	20,582		$	25,720

Tax effects of the cumulative temporary differences resulting in the net deferred income tax asset (liability)

The tax effects of the cumulative temporary differences resulting in the net deferred income tax asset (liability) are as follows (in thousands):



	December 31,
	2015			2014
Current deferred:
Deferred income tax assets:
Accrued expenses	$	—		$	6,495
Allowance accounts	—			7,076
Total current deferred income tax asset	—			13,571
Valuation allowance	—			(12,612		)
Net current deferred income tax asset	—			959
Deferred income tax liabilities:
Unbilled receivables	—			(6,865		)
Total net current deferred income tax liability	$	—		$	(5,906	)
Non-current deferred:
Deferred income tax assets:
Accrued expenses	$	2,976		$	—
Allowance Accounts	6,739			—
Net operating loss carryforward	95,640			61,227
Capital loss carryforward	2,434			18,385
Equity method investment	58,820			58,820
Basis in identified intangibles	5,978			9,263
Basis in research and development	7,051			3,819
Contingency accrual	7,700			43,319
Tax credit carryforwards and other	12,138			11,515
Total non-current deferred income tax asset	199,476			206,348
Valuation allowance	(194,255		)	(192,652		)
Net non-current deferred income tax asset	5,221			13,696
Deferred income tax liabilities:
Unbilled receivables	(6,516		)	—
Basis in property, plant and equipment	(3,439		)	(5,082		)
Total net non-current deferred income tax liability	$	(4,734	)	$	8,614

Aggregate changes in gross amount of unrecognized tax benefits

During 2015, 2014 and 2013, the aggregate changes in the Company’s total gross amount of unrecognized tax benefits are summarized as follows (in thousands):



	Years Ended December 31,
	2015			2014			2013
Beginning balance	$	1,957		$	2,219		$	1,834
Increases in unrecognized tax benefits – prior year positions	—			—			—
Increases in unrecognized tax benefits – current year positions	75			263			385
Decreases in unrecognized tax benefits – prior year position	(782		)	(525		)	—
Ending balance	$	1,250		$	1,957		$	2,219