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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Taxes [Abstract] |
Income Taxes | 13. INCOME TAXES VAALCO and its domestic subsidiaries file a consolidated United States income tax return. Certain subsidiaries’ operations are also subject to foreign income taxes. Provision for income taxes related to income (loss) from continuing operations consists of the following: ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |
﻿ |  | Year Ended December 31,
﻿(in thousands) |  | 2016 |  | 2015 |  | 2014
﻿U.S. Federal: |  |  |  |  |  |  |  |  |
﻿Current |  | $ | - |  | $ | - |  | $ | -
﻿Deferred |  |  | - |  |  | 1,349 |  |  | -
﻿Foreign: |  |  |  |  |  |  |  |  |
﻿Current |  |  | 9,248 |  |  | 13,238 |  |  | 22,486
﻿Deferred |  |  | - |  |  | - |  |  | -
﻿Total |  | $ | 9,248 |  | $ | 14,587 |  | $ | 22,486
﻿ ﻿ The primary differences between the financial statement and tax bases of assets and liabilities resulted in deferred tax assets associated with continuing operations at December 31, 201 6 and 201 5 are as follows: ﻿
﻿ |  |  |  |  |  |
﻿ |  |  |  |  |  |
﻿(in thousands) |  | 2016 |  | 2015
﻿Deferred tax assets: |  |  |  |  |  |
﻿Basis difference in fixed assets |  | $ | 89,016 |  | $ | 98,890
﻿Foreign tax credit carryforward |  |  | 50,339 |  |  | 58,290
﻿Alternative minimum tax credit carryover |  |  | 1,349 |  |  | 1,349
﻿U.S. federal net operating losses |  |  | 30,230 |  |  | 13,878
﻿Foreign net operating losses |  |  | 25,543 |  |  | 29,182
﻿Asset retirement obligations |  |  | 6,514 |  |  | 5,658
﻿Basis difference in receivables |  |  | 1,824 |  |  | 4,148
﻿Other |  |  | 6,952 |  |  | (648)
﻿Total deferred tax assets |  |  | 211,767 |  |  | 210,747
﻿Valuation allowance |  |  | (211,767) |  |  | (210,747)
﻿Net deferred tax assets |  | $ | - |  | $ | -
Foreign tax credits will start to expire between the years 2017 and 2024. The alternative minimum tax credits do not expire, and foreign net operating losses (“NOLs”) are not subject to expiry dates. The NOL for our United Kingdom subsidiary can be carried forward indefinitely, while the NOLs for our Gabon subsidiaries are included in the respective subsidiaries’ cost oil accounts, which will be offset against future taxable revenues. The U.S federal NOL can be carried forward until 203 6. Management assesses the available positive and negative evidence to estimate if existing deferred tax assets will be utilized. We do not anticipate utilization of the foreign tax credits prior to expiration nor do we expect to generate sufficient taxable income to utilize other deferred tax assets. On the basis of this evaluation, valuation allowances of $211.8 million, $2 10.7 million and $14 7.7 million have been recorded as of December 31, 201 6, 201 5 and 201 4. Valuation allowances reduce the deferred tax asset to the amount that is more likely than not to be realized. As a result of activity in the U.S. in 2015, a full valuation allowance was recorded related to AMT credits and our expectation is that these credits will not be utilized in the foreseeable future. The Company recognizes the financial statement benefit of a tax position only after determining that they are more likely than not to sustain the position following an audit. The Company believes that its income tax positions and deductions will be sustained on audit and therefore no reserves for uncertain tax positions have been established. Accordingly, no interest or penalties have been accrued as of December 31, 2016 and 2015. The Company’s policy is to include interest and penalty related to unrecognized tax benefits as a component of income tax expense. Income (loss) from continuing operations before income taxes is attributable as follows: ﻿
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﻿ |  |  |  |  |  |  |  |  |
﻿ |  | Year Ended December 31,
﻿(in thousands) |  | 2016 |  | 2015 |  | 2014
﻿United States |  | $ | (9,893) |  | $ | (15,177) |  | $ | (6,349)
﻿Foreign |  |  | 874 |  |  | (90,790) |  |  | (44,918)
﻿ |  | $ | (9,019) |  | $ | (105,967) |  | $ | (51,267)
The reconciliation of income tax expense attributable to income (loss) from continuing operations to income tax on income (loss) from continuing operations at the U.S. statutory rate is as follows: ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |
﻿ |  | Year Ended December 31,
﻿(in thousands) |  | 2016 |  | 2015 |  | 2014
﻿Tax provision computed at U.S. statutory rate |  | $ | (3,156) |  | $ | (37,089) |  | $ | (17,944)
﻿Foreign taxes not offset in U.S. by foreign tax credits |  |  | 6,319 |  |  | (394) |  |  | 6,331
﻿Effect of change in foreign statutory rates |  |  | 2,394 |  |  | 3,014 |  |  | 12
﻿Permanent differences |  |  | 4,505 |  |  | 1,803 |  |  | 135
﻿Foreign tax credit adjustments |  |  | - |  |  | - |  |  | 8,417
﻿Increase/(decrease) in valuation allowance |  |  | (802) |  |  | 47,253 |  |  | 25,535
﻿Other |  |  | (12) |  |  | - |  |  | -
﻿Total income tax expense |  | $ | 9,248 |  | $ | 14,587 |  | $ | 22,486
At December 31, 201 6, 201 5 and 201 4, we were subject to foreign and U.S. federal taxes only, with no allocations made to state and local taxes. The following table summarizes the tax years that remain subject to examination by major tax jurisdictions: ﻿ ﻿ ﻿
﻿ |  |
﻿ |  |
﻿Jurisdiction |  | Years
﻿United States |  | 2009-2016
﻿Gabon |  | 2007-2016
﻿

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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