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.