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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income (loss) before income tax expense (benefit) was comprised of the following for the periods indicated (in thousands):
| Year Ended December 31,
| 2016 |  | 2015 |  | 2014
United States | $ | (128,396 | ) |  | $ | 30,795 |  |  | $ | 144,756 |
Foreign | (53,326 | ) |  | 112,634 |  |  | 159,968 |
Income (loss) before income tax expense (benefit) | $ | (181,722 | ) |  | $ | 143,429 |  |  | $ | 304,724 |
Income taxes have been provided for based upon the tax laws and rates in the countries in which operations are conducted and income is earned. Components of income tax expense (benefit) consist of the following for the periods indicated (in thousands):
| Year Ended December 31,
| 2016 |  | 2015 |  | 2014
Current |  |  |  |  |
U.S. federal | $ | (13,389 | ) |  | $ | 3,141 |  |  | $ | 19,152 |
U.S. state and local | 379 |  |  | (1,424 | ) |  | 2,663 |
Foreign | 14,903 |  |  | 30,734 |  |  | 25,602 |
Total current | 1,893 |  |  | 32,451 |  |  | 47,417 |
Deferred |  |  |  |  |
U.S. federal | (25,838 | ) |  | 8,138 |  |  | 20,521 |
U.S. state and local | (1,512 | ) |  | (3,042 | ) |  | 3,357 |
Foreign | (186 | ) |  | (228 | ) |  | 4,117 |
Total deferred | (27,536 | ) |  | 4,868 |  |  | 27,995 |
Total income tax expense (benefit) | $ | (25,643 | ) |  | $ | 37,319 |  |  | $ | 75,412 |
Foreign taxes were incurred in the following regions for the periods indicated (in thousands):
| Year Ended December 31,
| 2016 |  | 2015 |  | 2014
Latin America | $ | 1,159 |  |  | $ | 6,077 |  |  | $ | 2,301 |
West Africa | 3,687 |  |  | 8,413 |  |  | 11,247 |
Middle East | 1,880 |  |  | 5,474 |  |  | 8,630 |
Europe | 5,132 |  |  | 3,317 |  |  | 1,690 |
Asia Pacific | 1,364 |  |  | 1,454 |  |  | 2,032 |
Other | 1,495 |  |  | 5,771 |  |  | 3,819 |
Total foreign income tax expense | $ | 14,717 |  |  | $ | 30,506 |  |  | $ | 29,719 |
A reconciliation of the differences between the income tax provision computed at the U.S. statutory rate and the reported provision for income taxes for the periods indicated is as follows (in thousands):
| Year Ended December 31,
| 2016 |  | 2015 |  | 2014
Income tax expense (benefit) at statutory rate | $ | (63,603 | ) |  | $ | 50,200 |  |  | $ | 106,653 |
Branch profits tax | (3,805 | ) |  | 4,654 |  |  | 9,904 |
Taxes on foreign earnings at less than the U.S. statutory rate | 33,381 |  |  | (12,569 | ) |  | (31,468 | )
Noncontrolling interest | 7,367 |  |  | (2,991 | ) |  | (14,116 | )
Other | 1,017 |  |  | (1,975 | ) |  | 4,439 |
Total income tax expense (benefit) | $ | (25,643 | ) |  | $ | 37,319 |  |  | $ | 75,412 |
A reconciliation using the Netherlands statutory rate was not provided as there are no significant operations in the Netherlands. Deferred tax assets and liabilities are recorded for the anticipated future tax effects of temporary differences between the financial statement basis and tax basis of our assets and liabilities using the applicable tax rates in effect at year-end. A valuation allowance is recorded when it is not more likely than not that some or all of the benefit from the deferred tax asset will be realized. Significant components of deferred tax assets and liabilities are as follows (in thousands):
| December 31,
| 2016 |  | 2015
Deferred tax assets |  |  |
Foreign net operating loss | $ | 5,442 |  |  | $ | 2,798 |
U.S. net operating loss | 42,578 |  |  | — |
Research and development credit | 297 |  |  | — |
Tax receivable agreement | 49,775 |  |  | — |
Intangibles | 6,939 |  |  | — |
Inventory | 1,161 |  |  | — |
Property and equipment | — |  |  | 240 |
Other | 1,240 |  |  | 296 |
Valuation allowance | (5,442 | ) |  | (2,798 | )
Total deferred tax assets | 101,990 |  |  | 536 |
Deferred tax liabilities |  |  |
Investment in partnership | (28,309 | ) |  | (39,962 | )
Property and equipment | (7,898 | ) |  | — |
Goodwill | (7,147 | ) |  | — |
Other | (277 | ) |  | (295 | )
Total deferred liabilities | (43,631 | ) |  | (40,257 | )
Net deferred tax assets (liabilities) | $ | 58,359 |  |  | $ | (39,721 | )
The valuation allowance increased from $2.8 million to $5.4 million during 2016 as a result of tax losses in various foreign jurisdictions. We determined that it is more likely than not that these 2016 losses will not be realized. Undistributed earnings of certain of our foreign subsidiaries amounted to approximately $256.0 million at December 31, 2016. It is our intention to permanently reinvest undistributed earnings and profits from the subsidiaries of the consolidated companies’ operations that have been generated through December 31, 2016 and future plans do not demonstrate a need to repatriate the foreign amounts to fund parent company activity. As of December 31, 2016 and 2015, we have total gross unrecognized tax benefits of $0.2 million and $0.1 million, respectively. Substantially all of the uncertain tax positions, if recognized in the future, would impact our effective tax rate. We have elected to classify interest and penalties incurred on income taxes as income tax expense. We file income tax returns in various international tax jurisdictions. As of December 31, 2016, the tax years 2010 through 2015 remain open to examination in the major foreign taxing jurisdictions to which we are subject.

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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=65882285&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=65882285&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=65882285&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=65882285&loc=d3e32537-109319 + Details
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