Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Expense Reported Reconciliation To Computed Statutory Rate

The income tax expense reported differs from the amount computed by applying the U.S. statutory rate to income or loss from continuing operations before income taxes for the following reasons:



	Year Ended December 31,
(Thousands of U.S. Dollars)	2015			2014			2013
(Loss) income from continuing operations before income taxes
United States	$	(14,061	)	$	(19,744	)	$	(13,566	)
Foreign	(354,027		)	2,610			322,850
	(368,088		)	(17,134		)	309,284
	35		%	35		%	35		%
Income tax (recovery) expense from continuing operations expected	(128,831		)	(5,997		)	108,249
Foreign currency translation adjustments	(187		)	(6,520		)	(7,185		)
Impact of foreign taxes (1)	(13,087		)	27,910			(3,596		)
Other local taxes	2,354			4,433			3,673
Stock-based compensation	919			2,232			2,724
Increase in valuation allowance	37,691			94,922			21,423
Non-deductible third party royalty in Colombia	3,416			9,116			11,073
Other permanent differences (2)	(2,334		)	1,119			(8,100		)
Total income tax (recovery) expense from continuing operations	$	(100,059	)	$	127,215		$	128,261

Current income tax expense from continuing operations
United States	$	1,070		$	1,260		$	1,250
Foreign	14,313			91,605			155,876
	15,383			92,865			157,126
Deferred income tax (recovery) expense from continuing operations
Foreign (3)	(115,442		)	34,350			(28,865		)
Total income tax (recovery) expense from continuing operations	$	(100,059	)	$	127,215		$	128,261

(1) Impact of foreign taxes in the rate reconciliation are tax effected at the 35% statutory rate and for the years ended December 31, 2015 and 2014, included $11.8 million and $28.1 million, respectively, in Colombia.

(2) Other permanent differences in the rate reconciliation are tax effected at the 35% statutory rate. For the year ended December 31, 2013, these differences included $7.4 million of tax basis and loss adjustments, $5.0 million of which were offset by changes in the valuation allowance.

(3) The deferred tax recovery for the year ended December 31, 2015, included $91.7 million associated with the ceiling test impairment loss in Colombia.

Deferred Tax Assets and Liabilities



	As at December 31,
(Thousands of U.S. Dollars)	2015			2014
Deferred Tax Assets
Tax benefit of operating loss carryforwards	$	56,015		$	51,248
Tax basis in excess of book basis	139,012			108,120
Foreign tax credits and other accruals	22,674			20,369
Tax benefit of capital loss carryforwards	30,799			29,984
Deferred tax assets before valuation allowance	248,500			209,721
Valuation allowance	(245,259		)	(207,568		)
	3,241			2,153
Deferred Tax Liabilities	34,592			176,364
Net Deferred Tax Liabilities	$	(31,351	)	$	(174,211	)

Changes in Unrecognized Tax Benefit

Changes in the Company's unrecognized tax benefit relating to loss or income from continuing operations are as follows:



	Year Ended December 31,
	2015			2014			2013
(Thousands of U.S. Dollars)
Unrecognized tax benefit relating to loss or income from continuing operations, beginning of year	$	3,300		$	2,900		$	5,900
Increases for positions relating to prior year	—			500			—
Decreases for positions relating to prior year	(800		)	(100		)	(3,000		)
Decreases due to lapse of statute of limitations	(300		)	—			—
Unrecognized tax benefit relating to loss or income from continuing operations, end of year	$	2,200		$	3,300		$	2,900