Parker Wellbore Registration of securities issued in business combination transactions

Registration of securities issued in business combination transactions

Income Tax Benefit/Expense (Tables)

Income Tax Benefit/Expense (Tables)

12 Months Ended

Dec. 31, 2013

Summary of Income (Loss) Before Income Taxes

Income (loss) before income taxes is summarized below:


	Year Ended December 31,
	2013		2012		2011
	(Dollars in Thousands)
United States	$	32,136	$	52,422	$	(61,434	)
Foreign		20,651		18,555		(3,978	)

	$	52,787	$	70,977	$	(65,412	)

Summary of Income Tax Expense (Benefit)

Income tax expense (benefit) is summarized as follows:


	Year Ended December 31,
	2013			2012			2011
	(Dollars in Thousands)
Current:
United States:
Federal	$	(3,658	)	$	7,791		$	17,168
State		1,968			733			1,264
Foreign		14,599			9,518			15,176
Deferred:
United States:
Federal		10,720			15,612			(46,694	)
State		2,820			4,296			1,864
Foreign		(841	)		(4,071	)		(3,545	)

	$	25,608		$	33,879		$	(14,767	)

Schedule of Income Tax Reconciliation from Federal Income Tax Statutory Rate

Total income tax expense differs from the amount computed by multiplying income before income taxes by the U.S. federal income tax statutory rate. The reasons for this difference are as follows:


	Year Ended December 31,
	2013						2012						2011
	(Dollars in thousands)
	Amount			% of Pre-Tax Income			Amount			% of Pre-Tax Income			Amount			% of Pre-Tax Income
Computed Expected Tax Expense	$	18,476			35	%	$	24,842			35	%	$	(22,894	)		35	%
Foreign Taxes		12,470			24	%		13,171			19	%		11,752			(17	)%
Tax Effect Different From Statutory Rates		(8,920	)		(17	)%		(8,080	)		(11	)%		(1,571	)		2	%
State Taxes, net of federal benefit		4,099			8	%		4,757			7	%		2,689			(4	)%
Foreign Tax Credits		(1,484	)		(3	)%		(1,867	)		(3	)%		(14,595	)		22	%
Kazakhstan Tax Settlement		—			—	%		—			—	%		(536	)		1	%
Change in Valuation Allowance		1,975			4	%		(1,662	)		(2	)%		2,542			(4	)%
Uncertain Tax Positions		2,472			5	%		(6,642	)		(9	)%		3,647			(6	)%
Permanent Differences		4,005			7	%		5,477			8	%		6,356			(10	)%
Prior Year Return to Provision Adjustments		(6,268	)		(12	)%		4,057			5	%		4,156			(6	)%
Other		(1,217	)		(2	)%		(174	)		(1	)%		(829	)		1	%
Unremitted Foreign Earnings-Current Year Adjustment		—			—	%		—			—	%		(5,484	)		8	%

Actual Tax Expense	$	25,608			49	%	$	33,879			48	%	$	(14,767	)		22	%

Components of Deferred Tax Assets and Liabilities

The components of the Company’s deferred tax assets and liabilities as of December 31, 2013 and 2012 are shown below:


	December 31,
	2013			2012
	(Dollars in Thousands)
Deferred tax assets
Current deferred tax assets:
Reserves established against realization of certain assets	$	1,504		$	1,634
Accruals not currently deductible for tax purposes		7,223			6,747
Other state deferred tax asset, net		990			361
Foreign Local Office		223			—

Gross current deferred tax assets		9,940			8,742
Current deferred tax valuation allowance		—			—

Net current deferred tax assets		9,940			8,742

Non-current deferred tax assets:
Federal net operating loss carryforwards		—			—
State net operating loss carryforwards		864			3,095
Other state deferred tax asset, net		1,909			914
Foreign Tax Credits		27,462			25,977
FIN 48		8,317			8,015
Foreign tax		18,499			5,838
Asset Impairment		48,743			56,190
Accruals not currently deductible for tax purposes		1,017			—
Deferred compensation		2,436			—
Other		—			71

Gross long-term deferred tax assets		109,247			100,100

Valuation Allowance		(6,827	)		(4,805	)

Net non-current deferred tax assets, net of valuation allowance		102,420			95,295

Net deferred tax assets		112,360			104,037

Deferred tax liabilities:
Non-current deferred tax liabilities:
Property, Plant and equipment		(32,505	)		(19,139	)
Accruals		—			(1,066	)
Foreign tax local		(1,440	)		—
Deferred Compensation		—			2,001
Other state deferred tax liability, net		(4,819	)		(2,643	)
Other		(3	)		—

Gross non-current deferred tax liabilities		(38,767	)		(20,847	)

Net deferred tax asset	$	73,593		$	83,190

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


	In Thousands
Balance at January 1, 2013	$	(10,030	)
Additions based on tax positions taken during a prior period		(3,245	)
Reductions related to settlement of tax matters		1,066
Reductions related to a lapse of applicable statute of limitations		—

Balance at December 31, 2013	$	(12,209	)

Open Tax Years by Major Tax Jurisdiction

The following describes the open tax years, by major tax jurisdiction, as of December 31, 2013:


Colombia			2008-present
Kazakhstan			2007-present
Mexico			2008-present
Papua New Guinea			2010-present
Russia			2010-present
United States — Federal			2011-present
United Kingdom			2010-present