Income Taxes

Current period U.S. and foreign income (loss) before income taxes as well as income tax expense were as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015		2014
	(In thousands)
Income (loss) from continuing operations before income taxes:
U.S.	$	(1,200	)	$	(972	)	$	1,982	$	(2,061	)
Foreign	2,406			(19,348		)	6,934		(14,626		)
Total	$	1,206		$	(20,320	)	$	8,916	$	(16,687	)

Income tax expense:
U.S.	$	696		$	1,070		$	2,037	$	3,121
Foreign	642			(606		)	1,642		2,079
Total	$	1,338		$	464		$	3,679	$	5,200

Due to our history of domestic losses, we have a full valuation allowance for all U.S. net deferred tax assets, including our net operating loss and tax credit carryforwards. As a result, we cannot record any tax benefits for additional U.S. incurred losses, and any U.S. income is offset by a reduction in valuation allowance. Irrespective of our income or loss levels, we continue to record U.S. deferred tax expense related to tax-basis goodwill amortization.

The effective rate on our foreign tax expense varies with the mix of income and losses across multiple tax jurisdictions with most statutory tax rates varying from 21% to 35%. In the current quarter, Ciber settled an ongoing tax audit in one of the foreign jurisdictions where it operates. The outcome of this audit allowed Ciber to release $1.1 million of its uncertain tax position reserve, which is recognized as a tax benefit in the quarter. This tax benefit offset the ongoing accrual of unrelated uncertain tax positions and return to provision true-ups booked during the quarter. The net effect is that the current quarter tax expense is in line with the normal effective rate.