Note 13: Income taxes

a. The provision (benefit) for income taxes is comprised of:

Loss before income taxes:

	Year ended December 31,
	2015			2014			2013
United States (U.S.)	$	(55,087	)	$	(22,015	)	$	(15,698	)
Non-U.S.		(52,060	)		(58,285	)		(61,319	)
	$	(107,147	)	$	(80,300	)	$	(77,017	)

Income tax expense (benefit):

	Year ended December 31,
	2015			2014			2013
Current:
United States	$	891		$	65		$	(18	)
Non-U.S.		3,678			324			308
Total current		4,569			389			290
Deferred:
Non-U.S.		(135	)		(7	)		63
Total deferred	$	(135	)	$	(7	)	$	63
	$	4,434		$	382		$	353

b. The Company is a resident taxpayer in Jersey and as such is not generally subject to Jersey tax on remitted foreign earnings. Therefore, the Company has chosen to present the note below using the notional U.S. federal income tax rate of 35% when presenting the Company's reconciliation of the income tax provision. A reconciliation of the provision for income taxes compared with the amounts at the notional federal statutory rate was:

	Year ended December 31,
	2015			2014			2013
Loss before income taxes	$	(107,147	)	$	(80,300	)	$	(77,017	)
Statutory tax rate		35	%		35	%		35	%
Notional U.S. federal income taxes at statutory rate	$	(37,501	)	$	(28,105	)	$	(26,956	)
Non-deductible expenses		2,621			1,242			1,411
Foreign tax rate differential		18,573			20,261			20,965
Change in valuation allowance		19,550			7,226			4,727
Unrecognized tax expense (benefit)		1,257			(242	)		206
Other		(66	)		-			-
Income tax expenses	$	4,434		$	382		$	353
Effective tax rate		-4.14	%		-0.48	%		-0.46	%

The Company's tax rate is affected by the tax rates in the jurisdictions in which the Company operates, the relative amount of income earned by jurisdiction, jurisdictions with a statutory tax rate less than the U.S. tax rate of 35% and the relative amount of losses or income for which no tax benefit or expense was recognized due to a valuation allowance.

c. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows:

	December 31,
	2015			2014
Deferred tax assets:
Allowance for doubtful accounts	$	11,504		$	4,001
Revenue recognition (timing differences)		21,972			9,042
Net operating loss carryforwards	347			850
Other temporary differences	952			482
Total gross deferred tax assets	$	34,775		$	14,375
Less: valuation allowance		(33,476	)		(13,926	)
Total deferred tax assets	$	1,299		$	449
Deferred tax liabilities:
Fixed assets		1,008			442
Total gross deferred tax liabilities	$	1,008		$	442
Net deferred tax assets	$	291		$	7

d. Carryforward loss:

As of December 31, 2015, the Company's Luxembourg subsidiary has $1.2 million of net operating loss carry forwards (NOLs) available for utilization in future years.

e. Accounting for uncertainty in income taxes (“ASC 740”):

A reconciliation of the beginning and ending balances of uncertain tax benefits is as follows:

	December 31,
	2015		2014
Balance at beginning of the year	$	308	$	549
Additions for tax positions related current year		848		79
Additions for tax positions related to prior years		409		-
Reduction related to lapse of applicable statute of limitations		-		(320	)
Balance at the end of the year	$	1,565	$	308

The Company recognizes interest and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2015, 2014 and 2013, the Company accrued $26, $2 and $20, respectively, for interest and penalties expenses related to uncertain tax positions.

f. The Company's Israeli subsidiary is currently under an income tax audit for the tax years 2011 through 2013. There are no other ongoing income tax audits.