Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Summary of income before income taxes attributable to domestic and foreign operations

Income (loss) before income taxes attributable to U.S. and foreign operations is as follows (in thousands):



	Year Ended December 31,
	2012			2011			2010
U.S.	$	(62,259	)	$	(138,839	)	$	(72,773	)
Foreign	(5,784		)	$	(81,174	)	$	(61,101	)
Total	$	(68,043	)	$	(220,013	)	$	(133,874	)

Schedule of components of income tax provision

The provision for income taxes shown in the consolidated statements of operations consists of current and deferred expense (benefit) as follows:



	Year Ended December 31,
	2012			2011			2010
Current:
U.S.—federal and state	$	(4	)	$	32		$	(150	)
Foreign	10,299			10,115			14,136
Total current	10,295			10,147			13,986
Deferred:
U.S.—federal and state	2,952			(2,973		)	(6,494		)
Foreign	1,671			(5,134		)	(2,682		)
Total deferred	4,623			(8,107		)	(9,176		)
Total provision for income taxes	$	14,918		$	2,040		$	4,810

Schedule of income tax reconciliation

The provision for income taxes differs from the amount of income tax determined by applying the U.S. statutory rate to the loss before income taxes for the years ended December 31, 2012, 2011 and 2010 as follows:



	Year Ended December 31,
	2012			2011			2010
U.S. statutory rate	$	(23,815	)	$	(77,004	)	$	(46,856	)
Non-deductible expenses	4,992			50,160			1,312
State taxes, net of benefit	(2		)	21			—
Effect of foreign tax rate differential	5,638			11,014			9,581
Foreign withholding taxes	4,260			4,746			4,184
Foreign tax credit	(4,408		)	(13,245		)	—
Non-taxable/non-deductible derivative (gains) losses	(2,006		)	(11,655		)	2,245
Unrecognized tax benefits	639			1,773			764
Return to accrual items	(6,165		)	(4,287		)	4,760
Change in valuation allowance	35,785			40,517			28,820
Total provision for income taxes	$	14,918		$	2,040		$	4,810

Schedule of deferred tax assets and liabilities



	December 31
	2012			2011
Current deferred tax assets:
Allowance for doubtful accounts	$	857		$	832
Accrued expenses	3,228			631
Other	294			291
Total current deferred tax assets	4,379			1,754
Noncurrent deferred tax assets:
Stock-based compensation	2,546			1,856
Loss carryforwards—U.S	115,486			97,232
Loss carryforwards—foreign	45,153			41,639
Multi-client seismic data library	1,916			12,906
Foreign tax credit	17,652			13,244
Total noncurrent deferred tax assets	182,753			166,877
Total deferred tax assets	187,132			168,631
Valuation allowance	(180,323		)	(144,538		)
Net deferred tax assets	6,809			24,093
Current deferred tax liabilities
Deferred revenue	1,725			2,639
Other	124			178
Total current deferred tax liabilities	1,849			2,817
Noncurrent deferred tax liabilities:
Property and equipment	17,008			25,055
Other	638			4,283
Total noncurrent deferred tax liabilities	17,646			29,338
Total deferred tax liabilities	19,495			32,155
Net deferred income tax liability	$	12,686		$	8,062

Summary of changes in uncertain tax positions

A reconciliation of the change in the unrecognized tax benefits is as follows (in thousands):



	Year Ended December 31,
	2012		2011		2010
Balance at beginning of year	$	9,770	$	7,997	$	7,233
Increase for tax positions related to current year	639		1,773		764
Lapses in statues of limitations	—		—		—
Balance at the end of the year	$	10,409	$	9,770	$	7,997