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,
	2016			2015			2016			2015
	(In thousands)
Income (loss) from continuing operations before income taxes:
U.S.	$	(4,749	)	$	(1,200	)	$	(23,818	)	$	1,982
Foreign	(11,420		)	2,406			(136,050		)	6,934
Total	$	(16,169	)	$	1,206		$	(159,868	)	$	8,916

Income tax expense:
U.S.	$	732		$	696		$	1,885		$	2,037
Foreign	1,897			642			5,731			1,642
Total	$	2,629		$	1,338		$	7,616		$	3,679

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 19% to 34%. The foreign losses did not create the expected tax benefit as a result of the current mix of income and losses across jurisdictions, with income being earned in jurisdictions where taxes are paid, and losses being generated in jurisdictions that have a full valuation allowance recorded against them. Additionally, we have recorded significant goodwill impairment charges that do not result in a tax benefit at the local country level. Due to the Netherlands Sale during the second quarter of 2016, the Company recognized $3.0 million in tax expense. A subsequent event in the third quarter of 2016 adjusted the Netherlands Sale gain, resulting in a tax benefit of $0.1 million, and reducing the tax related to the Netherlands Sale to $2.9 million. During the third quarter of 2016, the Company recorded the sale of an entity in Norway and substantially all of the assets of the operations in Sweden. The Norway Sale was structured to allow for tax free treatment of the gain on sale. The gain on the Sweden Sale is offset by existing tax losses that were previously reserved, resulting in no tax expense recognized.