Note 13: Income taxes

a. The provision for income taxes from continuing operations is comprised of:

Loss before income taxes:

	Year ended December 31,
	2016			2015			2014
United States (U.S.)	$	(80,972	)	$	(55,087	)	$	(22,015	)
Non-U.S.		(40,492	)		(52,060	)		(58,285	)
	$	(121,464	)	$	(107,147	)	$	(80,300	)

Income taxes expense:

	Year ended December 31,
	2016		2015			2014
Current:
U.S.	$	6,501	$	891		$	65
Non-U.S.		3,863		3,678			324
Total current		10,364		4,569			389
Deferred:
U.S.	$	1	$	-		$	-
Non-U.S.		16		(135	)		(7	)
Total deferred		17		(135	)		(7	)
Total income taxes provision	$	10,381	$	4,434		$	382

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

	Year ended December 31,
	2016			2015			2014
U.S Statutory Income Taxes Rate		35.0	%		35.0	%		35.0	%
Non-deductible expenses		(2.5	)		(2.4	)		(1.5	)
Foreign taxes rate differential		(14.2	)		(19.2	)		(26.5	)
Change in valuation allowance		(30.0	)		(18.2	)		(9.0	)
State income taxes		2.3			1.8			1.2
Change in excess taxes benefit		1.2			-			-
Unrecognized taxes expense (benefit)		(0.7	)		(1.2	)		0.3
Other		0.4			0.1			-
Effective taxes rate		(8.5	)%		(4.1	)%		(0.5	)%

The Company's tax rate is affected by the tax rates in the jurisdictions outside the U.S. in which the Company operates. The jurisdictional location of earnings is a significant component of our effective tax rate as the tax rates outside of the U.S. are generally lower 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,
	2016			2015
Deferred tax assets:
Allowance for doubtful accounts	$	18,770		$	11,504
Revenue recognition (timing differences)		46,953			21,972
Net operating loss carryforwards		577		347
Excess Tax Benefit		3,510			-
Deferred Revenue		879			-
Other temporary differences		1,481			952
Total gross deferred taxes assets	$	72,170		$	34,775
Less: valuation allowance		(70,061	)		(33,476	)
Total deferred taxes assets	$	2,109		$	1,299
Deferred tax liabilities:
Fixed assets		1,789			1,008
Total gross deferred taxes liabilities	$	1,789		$	1,008

Net deferred taxes assets	$	320		$	291

d. Carryforward loss:

As of December 31, 2016, the Company's Luxembourg subsidiary has $1.9 million of net operating loss carry forwards (NOLs) available for utilization in future years.

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

	December 31,
	2016			2015		2014
Balance at beginning of the year	$	1,565		$	308	$	549
Additions for taxes positions related current year		1,088			848		79
Additions for taxes positions related to prior years		58			409		-
Reduction related to lapse of applicable statute of limitations		(311	)		-		(320	)
Balance at the end of the year	$	2,400		$	1,565	$	308

The Company recognizes interest and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2016, 2015 and 2014, the Company accrued $31, $26 and $2, respectively, for interest and penalties expenses related to uncertain tax positions.

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