INCOME TAXES (Tables)

6 Months Ended

Jun. 30, 2017

Schedule of Components of Income Tax Expense (Benefit)

We determined our 2017 income tax expense based upon our estimated annual effective income tax rate of approximately 27% on a consolidated basis for fiscal year 2017, which rate is attributable to the multiple domestic and foreign tax jurisdictions to which we are subject.



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(in thousands)
Current income tax expense (benefit):
U.S. federal income tax	$	275		$	—		$	373		$	—
Benefit of U.S. federal operating loss carryforward	(158		)	—			(256		)	—
State income tax expense (benefit)	(172		)	(7		)	(109		)	30
Canadian federal and provincial income taxes expense (benefit)	(2,628		)	1,974			(1,564		)	3,780
Total current income tax expense (benefit)	(2,683		)	1,967			(1,556		)	3,810
Deferred income tax expense (benefit):
U.S. federal income tax	53			—			174			—
Canadian federal and provincial income taxes expense (benefit)	196			(50		)	133			(96		)
Total change in deferred income tax expense (benefit)	249			(50		)	307			(96		)
Provision for (benefit from) income taxes	$	(2,434	)	$	1,917		$	(1,249	)	$	3,714

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation between income tax expense based on the U.S. federal statutory income tax rate and our effective income tax expense is presented below:



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(in thousands)
Income tax expense at the U.S. federal statutory rate	$	2,022		$	2,432		$	4,192		$	3,774
Amount attributable to partnership not subject to income tax	(4,873		)	215			(5,714		)	1,159
Foreign income tax rate differential	570			(515		)	365			(959		)
Other	12			(94		)	11			(62		)
State income tax expense (benefit) ⁽¹⁾	(177		)	(7		)	(118		)	30
Change in valuation allowance	12			(114		)	15			(228		)
Provision for (benefit from) income taxes	$	(2,434	)	$	1,917		$	(1,249	)	$	3,714


⁽¹⁾	Net of the federal income tax expense or benefit for the deduction associated with state income taxes.

Schedule of Deferred Tax Assets and Liabilities

Major components of deferred income tax assets and liabilities associated with our operations were as follows as of the dates indicated:



	June 30, 2017
	U.S.			Foreign			Total
	(in thousands)
Deferred income tax assets
Deferred revenues	$	—		$	—		$	—
Capital loss carryforwards	—			453			453
Operating loss carryforwards	—			—			—
Deferred income tax liabilities
Unbilled revenue	—			(270		)	(270		)
Prepaid expenses	(419		)	—			(419		)
Property and equipment	—			(464		)	(464		)
Valuation allowance	—			(453		)	(453		)
Deferred income tax liability, net	$	(419	)	$	(734	)	$	(1,153	)



	December 31, 2016
	U.S.			Foreign			Total
	(in thousands)
Deferred income tax assets
Deferred revenues	$	89		$	—		$	89
Capital loss carryforwards	—			438			438
Operating loss carryforwards	257			—			257
Deferred income tax liabilities
Prepaid expenses	(592		)	—			(592		)
Property and equipment	—			(577		)	(577		)
Valuation allowance	—			(438		)	(438		)
Deferred income tax liability, net	$	(246	)	$	(577	)	$	(823	)