Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Sources of income (loss) before income taxes

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



	Years Ended December 31,
	2016			2015			2014
Domestic	$	(41,246	)	$	21,065		$	(162,151	)
Foreign	(19,060		)	(42,175		)	55,215
Total	$	(60,306	)	$	(21,110	)	$	(106,936	)

Components of income taxes

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



	Years Ended December 31,
	2016			2015			2014
Current:
Federal	$	—		$	(4,715	)	$	(678	)
State and local	28			41			(42		)
Foreign	5,574			1,274			21,722
Deferred:
Federal	—			2,726			1,004
Foreign	(1,181		)	4,718			(1,424		)
Total income tax expense	$	4,421		$	4,044		$	20,582

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 2016, 2015 and 2014 to income tax expense follows (in thousands):



	Years Ended December 31,
	2016			2015			2014
Expected income tax expense at 35%	$	(21,107	)	$	(7,389	)	$	(37,428	)
Foreign tax rate differential	5,932			1,769			(10,481		)
Foreign tax differences	(4,828		)	4,104			6,444
State and local taxes	28			41			(42		)
Nondeductible expenses	(259		)	578			(1,584		)
Goodwill impairment	—			—			9,444
Expired Capital Loss	1,321			15,950			—
Valuation allowance:
Valuation allowance on equity in losses of INOVA Geophysical	—			—			17,644
Valuation allowance on expiring capital losses	(1,321		)	(15,950		)	—
Valuation allowance on operations	24,655			4,941			36,585
Total income tax expense	$	4,421		$	4,044		$	20,582

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,
	2016			2015
Non-current deferred:
Deferred income tax assets:
Accrued expenses	$	2,994		$	2,976
Allowance Accounts	4,861			6,739
Net operating loss carryforward	98,896			95,640
Capital loss carryforward	1,114			2,434
Equity method investment	58,820			58,820
Original issue discount	17,924			—
Basis in identified intangibles	15,286			5,978
Tax credit carryforwards	7,051			7,051
Contingency accrual	—			7,700
Other	10,755			12,138
Total non-current deferred income tax asset	217,701			199,476
Valuation allowance	(217,589		)	(194,255		)
Net non-current deferred income tax asset	112			5,221
Deferred income tax liabilities:
Other	(1,240		)	—
Unbilled receivables	(1,908		)	(6,516		)
Basis in property, plant and equipment	(531		)	(3,439		)
Total net non-current deferred income tax liability	$	(3,567	)	$	(4,734	)

Aggregate changes in gross amount of unrecognized tax benefits

During 2016, 2015 and 2014, the aggregate changes in the Company’s total gross amount of unrecognized tax benefits are summarized as follows (in thousands):



	Years Ended December 31,
	2016		2015			2014
Beginning balance	$	1,250	$	1,957		$	2,219
Increases in unrecognized tax benefits – prior year positions	—		—			—
Increases in unrecognized tax benefits – current year positions	49		75			263
Decreases in unrecognized tax benefits – prior year position	—		(782		)	(525		)
Ending balance	$	1,299	$	1,250		$	1,957