18. INCOME TAXES

As our investments are predominantly owned by Dutch holding companies, the components of the (provision) / credit for income taxes and of the income / (loss) before tax have been analyzed between their Netherlands and non-Netherlands components. Similarly the Dutch corporate income tax rates have been used in the reconciliation of income taxes.

Income / (loss) from continuing operations before income taxes

The Netherlands and non-Netherlands components of income / (loss) from continuing operations before income taxes are:



	For The Year Ended December 31,
	2017			2016			2015
Domestic	$	(50,344	)	$	(66,540	)	$	(73,736	)
Foreign	125,880			(91,549		)	(13,593		)
Total	$	75,536		$	(158,089	)	$	(87,329	)

Total tax (provision) / credit for the years ended December 31, 2017, 2016 and 2015 was allocated as follows:



	For The Year Ended December 31,
	2017			2016			2015
Income tax (provision) / credit from continuing operations	$	(21,483	)	$	(6,336	)	$	1,153
Income tax provision from discontinued operations	(2,247		)	(981		)	(547		)
Total tax (provision) / credit	$	(23,730	)	$	(7,317	)	$	606

(Provision) / Credit for Income Taxes

The Netherlands and non-Netherlands components of the (provision) / credit for income taxes from continuing operations consist of:



	For The Year Ended December 31,
	2017			2016			2015
Current income tax provision:
Domestic	$	—		$	—		$	—
Foreign	(21,252		)	(4,542		)	(10		)
	(21,252		)	(4,542		)	(10		)
Deferred tax (provision) / credit:
Domestic	—			—			—
Foreign	(231		)	(1,794		)	1,163
	(231		)	(1,794		)	1,163
(Provision) / credit for income taxes	$	(21,483	)	$	(6,336	)	$	1,153

In 2017, the net (provision) / credit for income taxes was more than the (provision) / credit computed at statutory rates primarily due to the expiration of tax loss carry-forwards and changes to the valuation allowance for prior period losses where a future benefit is no longer expected. In 2016 and 2015, the net (provision) / credit for income taxes is less than the (provision) / credit computed at statutory tax rates primarily due to losses on which no tax benefit has been received.

Reconciliation of Effective Income Tax Rate

The following is a reconciliation of income taxes, calculated at statutory Netherlands rates, to the (provision) / credit for income taxes included in the accompanying consolidated statements of operations and comprehensive income / loss for the years ended December 31, 2017, 2016 and 2015:



	For The Year Ended December 31,
	2017			2016			2015
Income taxes at Netherlands rates (25%)	$	(18,871	)	$	39,515		$	21,821
Jurisdictional differences in tax rates	10,018			(38,176		)	(12,440		)
Losses expired	(7,583		)	(1,813		)	(2,890		)
Change in valuation allowance	(5,384		)	(5,249		)	2,496
Non-deductible expenses	(73		)	288			(1,731		)
Other	410			(901		)	(6,103		)
(Provision) / credit for income taxes	$	(21,483	)	$	(6,336	)	$	1,153

Components of Deferred Tax Assets and Liabilities

The following table shows the significant components included in deferred income taxes as at December 31, 2017 and 2016:



	December 31, 2017			December 31, 2016
Assets:
Tax benefit of loss carry-forwards and other tax credits	$	127,599		$	108,424
Programming rights	3,189			2,935
Property, plant and equipment	2,713			2,691
Accrued expenses	4,087			4,556
Other	2,445			1,587
Gross deferred tax assets	140,033			120,193
Valuation allowance	(127,794		)	(106,601		)
Net deferred tax assets	$	12,239		$	13,592

Liabilities:
Broadcast licenses, trademarks and customer relationships	$	(24,078	)	$	(22,017	)
Property, plant and equipment	(166		)	(142		)
Programming rights	(5,431		)	(6,508		)
Other	(169		)	(85		)
Total deferred tax liabilities	(29,844		)	(28,752		)
Net deferred income tax liability	$	(17,605	)	$	(15,160	)

Deferred tax is recognized on the consolidated balance sheet as follows:



	December 31, 2017			December 31, 2016
Net non-current deferred tax assets	$	2,964		$	4,550

Net non-current deferred tax liabilities	(20,569		)	(19,710		)

Net deferred income tax liability	$	(17,605	)	$	(15,160	)

We provided a valuation allowance against potential deferred tax assets of US$ 127.8 million and US$ 106.6 million as at December 31, 2017 and 2016, respectively, since it has been determined by management, based on the weight of all available evidence, that it is more likely than not that the benefits associated with these assets will not be realized.

During 2017, we had the following movements on valuation allowances:



Balance at December 31, 2016	$	106,601
Created during the period	6,343
Utilized	(959		)
Foreign exchange	15,260
Other	549
Balance at December 31, 2017	$	127,794

As of December 31, 2017 we had operating loss carry-forwards that will expire in the following periods:



	2018		2019		2020		2021		2022-26		Indefinite
Bulgaria	$	—	$	—	$	2,586	$	—	$	—	$	—
Czech Republic	627		3		—		—		—		—
The Netherlands	29,158		64,290		50,911		53,392		309,861		—
United Kingdom	—		—		—		—		—		1,726
Total	$	29,785	$	64,293	$	53,497	$	53,392	$	309,861	$	1,726

The losses are subject to examination by the tax authorities and to restriction on their utilization. In particular, the losses can only be utilized against profits arising in the legal entity in which they arose.

We have provided valuation allowances against most of the above loss carry-forwards. However, a valuation allowance has not been provided against the loss carry-forwards in our main operating company in Bulgaria on the basis of future reversals of existing taxable temporary differences and taxable income from future trading. The tax benefits associated with the tax losses in the United Kingdom were recognized following the adoption of the FASB guidance simplifying accounting for share-based payment transactions. However, a valuation allowance was also recognized due to a lack of foreseeable future UK income.

As at December 31, 2017 and 2016, we had no undistributed earnings in subsidiaries giving rise to a temporary difference.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



Balance at December 31, 2014	$	53
Decreases resulting from the expiry of the statute of limitations	(53		)
Balance at December 31, 2015	—
Balance at December 31, 2016	—
Balance at December 31, 2017	$	—

We do not anticipate a material increase or decrease in unrecognized tax benefits within the next 12 months.

Our subsidiaries file income tax returns in the Netherlands and various other tax jurisdictions. As at December 31, 2017, our subsidiaries are generally no longer subject to income tax examinations for years before:



Tax Jurisdiction	Year
Bulgaria	2013
Czech Republic	2012
The Netherlands	2015
Romania	2014
Slovak Republic	2010
United Kingdom	2016

We recognize, when applicable, both accrued interest and penalties related to unrecognized tax benefits in income tax expense in the accompanying consolidated statements of operations and comprehensive income / loss. There were no significant interest or penalties accrued in the years ended December 31, 2017, 2016 and 2015.