Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 |
Accounting Policies [Abstract] | ' |
Principles of Consolidation | ' |
Principles of Consolidation |
The consolidated financial statements include the accounts of all wholly-owned and majority-owned subsidiaries. All intercompany profits, transactions and balances have been eliminated. Third-party interests in our majority-owned subsidiaries are presented as noncontrolling interests. |
Presentation of Comprehensive Income (Loss) | ' |
Presentation of Comprehensive Income (Loss) |
We adopted ASU No. 2011-05 (ASU 2011-05), which is included in ASC 220, “Comprehensive Income”, effective January 1, 2012 and have elected to utilize the “single continuous statement” for presentation of all nonowner changes in stockholders’ equity. |
Use of Estimates | ' |
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Use of Estimates |
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The preparation of financial statements in conformity with generally accepted accounting principles in the United States (“USGAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Reporting and Functional Currency | ' |
Reporting and Functional Currency |
The United States Dollar (“U.S. Dollar”) is the reporting and functional currency for all of our controlled subsidiaries and Petrodelta. Amounts denominated in non-U.S. Dollar currencies are re-measured into U.S. Dollars, and all currency gains or losses are recorded in the consolidated statements of operations and comprehensive income (loss). There are many factors that affect foreign exchange rates and the resulting exchange gains and losses, many of which are beyond our influence. |
See Note 6 – Investment in Equity Affiliates and Note 7 – Venezuela for a discussion of currency exchange rates and currency exchange risk on Petrodelta’s and Harvest Vinccler’s businesses. |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents |
Cash equivalents include money market funds and short term certificates of deposit with original maturity dates of less than three months. |
Restricted Cash | ' |
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Restricted Cash |
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Restricted cash is classified as current or non-current based on the terms of the agreement. Restricted cash at December 31, 2013 represents cash held in a U.S. bank used as collateral for a customs bond for the Dussafu PSC. Restricted cash at December 31, 2012 represents cash held in a U.S. bank used as collateral for a standby letter of credit issued in support of a performance bond for a joint study. |
Financial Instruments | ' |
Financial Instruments |
Financial instruments, which potentially subject us to concentrations of credit risk, are primarily cash and cash equivalents, accounts receivable, dividend receivable, notes payable and derivative financial instruments. We maintain cash and cash equivalents in bank deposit accounts with commercial banks with high credit ratings, which, at times may exceed the federally insured limits. We have not experienced any losses from such investments. Concentrations of credit risk with respect to accounts receivable are limited due the nature of our receivables, which include primarily income tax receivables. In the normal course of business, collateral is not required for financial instruments with credit risk. |
Investment in Equity Affiliates | ' |
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Investment in Equity Affiliates |
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We evaluate our investments in unconsolidated companies under ASC 323, “Investments – Equity Method and Joint Ventures.” Investments in which we have significant influence are accounted for under the equity method of accounting. Under the equity method, Investment in Equity Affiliates is increased by additional investments and earnings and decreased by dividends and losses. |
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We review our Investment in Equity Affiliates for impairment whenever events and circumstances indicate a loss in investment value is other than a temporary decline. There are many factors to consider when evaluating an equity investment for possible impairment. Currency devaluations, inflationary economies, and cash flow analysis are some of the factors we consider in our evaluation for possible impairment. At December 31, 2013, we reviewed our investment in Petrodelta taking into consideration the terms of the Share Purchase Agreement (see Note 5 – Dispositions, Share Purchase Agreement). The purchase price under the Share Purchase Agreement indicates a valuation that approximates the carrying value of our equity investment in Petrodelta, the dividend receivable and the advances to this equity affiliate. As such, we concluded that there was no impairment to our equity investment as of December 31, 2013. If the sale of the remaining 51 percent interest in Harvest Holding is completed, we expect to recognize a gain on the transaction. |
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We measure and disclose our noncontrolling interests in accordance with the provisions of ASC 810 “Consolidation”. Our noncontrolling interests relate to interests in Harvest Holding held by Petroandina (29 percent) and Vinccler (20 percent) (see Note 1 – Organization). |
Oil and Gas Proper | ' |
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Oil and Gas Properties |
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The major components of property and equipment are as follows (in thousands): |
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| | As of December 31, | | | | | | | | | | | | | |
| | 2013 | | | 2012 | | | | | | | | | | | | | |
Unproved property costs | | $ | 103,917 | | | $ | 78,453 | | | | | | | | | | | | | |
Oilfield inventories | | | 4,096 | | | | 3,339 | | | | | | | | | | | | | |
Other administrative property | | | 2,710 | | | | 2,954 | | | | | | | | | | | | | |
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Total property and equipment | | | 110,723 | | | | 84,746 | | | | | | | | | | | | | |
Accumulated depreciation | | | (2,332 | ) | | | (2,210 | ) | | | | | | | | | | | | |
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Total property and equipment, net | | $ | 108,391 | | | $ | 82,536 | | | | | | | | | | | | | |
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Property and equipment are stated at cost less accumulated depletion, depreciation and amortization (“DD&A”). Costs of improvements that appreciably improve the efficiency or productive capacity of existing properties or extend their lives are capitalized. Maintenance and repairs are expensed as incurred. Upon retirement or sale, the cost of property and equipment, net of the related accumulated DD&A, is removed and, if appropriate, gains or losses are recognized in investment earnings and other. We did not record any depletion expense in the years ended December 31, 2013 and 2012 or 2011 as there was no production related to proved oil and gas properties other than properties classified as held for sale. |
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We follow the successful efforts method of accounting for our oil and gas properties. Under this method, exploration costs such as exploratory geological and geophysical costs, delay rentals and exploration overhead are charged against earnings as incurred. Costs of drilling exploratory wells are capitalized pending determination of whether proved reserves can be attributed to the area as a result of drilling the well. If management determines that proved reserves, as that term is defined in Securities and Exchange Commission (“SEC”) regulations, have not been discovered, capitalized costs associated with the drilling of the exploratory well are charged to expense. Costs of drilling successful exploratory wells, all development wells, and related production equipment and facilities are capitalized and depleted or depreciated using the unit-of-production method as oil and gas is produced. During the year ended December 31, 2013, we expensed no dry hole costs. During the year ended December 31, 2012, we expensed to dry hole costs $0.7 million related to the drilling of Karama-1 (“KD-1”) and first sidetrack, KD-1ST, on the Budong PSC. See Note 9 – Indonesia. |
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Leasehold acquisition costs are initially capitalized. Acquisition costs of unproved leaseholds are assessed for impairment during the holding period. Costs of maintaining and retaining unproved leaseholds, as well as impairment of unsuccessful leases, are included in exploration expense. Impairment is based on specific identification of the lease. Costs of expired or abandoned leases are charged to exploration expense, while costs of productive leases are transferred to proved oil and gas properties. |
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Proved oil and gas properties are reviewed for impairment at a level for which identifiable cash flows are independent of cash flows of other assets when facts and circumstances indicate that their carrying amounts may not be recoverable. In performing this review, future net cash flows are determined based on estimated future oil and gas sales revenues less future expenditures necessary to develop and produce the reserves. If the sum of these undiscounted estimated future net cash flows is less than the carrying amount of the property, an impairment loss is recognized for the excess of the property’s carrying amount over its estimated fair value, which is generally based on discounted future net cash flows. We did not have any proved oil and gas properties in 2013, 2012 or 2011. |
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Costs of drilling and equipping successful exploratory wells, development wells, asset retirement liabilities and costs to construct or acquire offshore platforms and other facilities, are depleted using the unit-of-production method based on total estimated proved developed reserves. Costs of acquiring proved properties, including leasehold acquisition costs transferred from unproved leaseholds, are depleted using the unit-of-production method based on total estimated proved reserves. All other properties are stated at historical acquisition cost, net of allowance for impairment, and depreciated using the straight-line method over the useful lives of the assets. |
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Unproved property costs, excluding oilfield inventories, consist of (in thousands): |
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| | As of December 31, | | | | | | | | | | | | | |
| | 2013 | | | 2012 | | | | | | | | | | | | | |
Budong PSC | | $ | 4,470 | | | $ | 5,219 | | | | | | | | | | | | | |
Dussafu PSC | | | 99,447 | | | | 73,234 | | | | | | | | | | | | | |
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Total unproved property costs | | $ | 103,917 | | | $ | 78,453 | | | | | | | | | | | | | |
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During the year ended December 31, 2013, we recorded impairment expense related to our Budong project in Indonesia ($0.6 million) and our project in Colombia ($3.2 million, which is reflected in discontinued operations). During the year ended December 31, 2012, we impaired the carrying value of Block 64 EPSA in Oman (which is reflected in discontinued operations) ($6.4 million) and WAB -21 in China ($2.9 million). During the year ended December 31, 2011, we impaired the carrying value of West Bay ($3.3 million). |
Other Administrative Property | ' |
Other Administrative Property |
Furniture, fixtures and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives, which range from three to five years. Leasehold improvements are recorded at cost and amortized using the straight-line method over the life of the applicable lease. For the year ended December 31, 2013, depreciation expense was $0.3 million ($0.4 million and $0.4 million for the years ended December 31, 2012 and 2011, respectively). |
Other Assets | ' |
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Other Assets |
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Other assets consist of deferred financing costs, a long-term receivable for value added tax (“VAT”) credits related to the Budong PSC, and prepaid expenses which are expected to be realized in the next 12 to 24 months. Deferred financing costs relate to specific financing and are amortized over the life of the financing to which the costs relate using the interest rate method. At December 31, 2013 the deferred financing costs were reclassified to prepaid expenses in current assets (see Note 11 – Debt). The VAT receivable is reimbursed through the sale of hydrocarbons. During the year ended December 31, 2013, a valuation allowance of $2.8 million was charged to general and administrative expenses on this VAT receivable which we do not expect to recover (see Note 9 – Indonesia). Other Assets at December 31, 2013 and 2012 also includes a blocked payment of $0.7 million net to our 66.667 percent interest related to our drilling operations in Gabon in accordance with the U.S. sanctions against Libya as set forth in Executive Order 13566 of February 25, 2011, and administered by the United States Treasury Department’s Office of Foreign Assets Control (“OFAC”). See Note 13 – Commitments and Contingencies. |
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| | As of December 31, | | | | | | | | | | | | | |
| | 2013 | | | 2012 | | | | | | | | | | | | | |
| | (in thousands) | | | | | | | | | | | | | |
Deferred financing costs | | $ | 0 | | | $ | 3,111 | | | | | | | | | | | | | |
Long-term VAT receivable | | | 0 | | | | 3,440 | | | | | | | | | | | | | |
Long-term prepaid expenses | | | 139 | | | | 328 | | | | | | | | | | | | | |
Gabon PSC – blocked payment (net to our 66.667% interest) | | | 734 | | | | 734 | | | | | | | | | | | | | |
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| | $ | 873 | | | $ | 7,613 | | | | | | | | | | | | | |
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Reserves | ' |
Reserves |
We measure and disclose our oil and gas reserves in accordance with the provisions of the SEC’s Modernization of Oil and Gas Reporting and ASC 932, “Extractive Activities – Oil and Gas” (“ASC 932”). All of our reserves are owned through our equity investment in Petrodelta. We do not have any wholly owned reserves at December 31, 2013 or 2012. |
Capitalized Interest | ' |
Capitalized Interest |
We capitalize interest costs for qualifying oil and gas properties. The capitalization period begins when expenditures are incurred on qualified properties, activities begin which are necessary to prepare the property for production and interest costs have been incurred. The capitalization period continues as long as these events occur. The average additions for the period are used in the interest capitalization calculation. During the year ended December 31, 2013, we capitalized interest costs for qualifying oil and gas property additions of $8.3 million ($3.0 million and $2.3 million during the years ended December 31, 2012 and 2011, respectively). |
Derivative Financial Instruments | ' |
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Derivative Financial Instruments |
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Under ASC 480 “Distinguishing Liabilities From Equity”, certain of our financial instruments with anti-dilution protection features do not meet the conditions to obtain equity classification, as there are conditions which may require settlement by transferring assets, and are required to be carried as derivative liabilities, at fair value, with changes in fair value reflected in our consolidated statements of operations and comprehensive income (loss). See Note 12 – Warrant Derivative Liabilities for additional disclosures related to the warrant derivative financial instruments issued under the warrant agreements dated November 2010 in connection with a $60 million term loan facility (the “Warrants”). In the occurrence of a fundamental change, we are required to repurchase the Warrants at the higher of (1) the fair market value of the warrant and (2) a valuation based on a computation of the option value of the Warrant using the Black-Scholes calculation method using the assumptions described in the Warrant Agreement. A fundamental change is defined as “the occurrence of one of the following events: a) a person or group becomes the direct or indirect owner of more than 50% of the voting power of the outstanding common stock, b) a merger event or similar transaction in which the majority owners before the transaction fail to own a majority of the voting power of the Company after the transaction, and c) approval of a plan of liquidation or dissolution of the Company or sale of all or substantially all of the Company’s assets.” |
Fair Value Measurements | ' |
Fair Value Measurements |
We measure and disclose our fair values in accordance with the provisions of ASC 820 “Fair Value Measurements and Disclosures” (“ASC 820”). ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price) and establishes a three-level hierarchy, which encourages an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the hierarchy are defined as follows: |
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| • | | Level 1 – Inputs to the valuation techniques that are quoted prices in active markets for identical assets or liabilities. | | | | | | | | | | | | | | | | | |
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| • | | Level 2 – Inputs to the valuation techniques that are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly. | | | | | | | | | | | | | | | | | |
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| • | | Level 3 – Inputs to the valuation techniques that are unobservable for the assets or liabilities. | | | | | | | | | | | | | | | | | |
Financial instruments, which potentially subject us to concentrations of credit risk, are primarily cash and cash equivalents, accounts receivable, advances to equity affiliate, dividend receivable, long-term debt and warrant derivative liability. We maintain cash and cash equivalents in bank deposit accounts with commercial banks with high credit ratings, which, at times may exceed the federally insured limits. We have not experienced any losses from such investments. Concentrations of credit risk with respect to accounts receivable are limited due to the nature of our receivables. In the normal course of business, collateral is not required for financial instruments with credit risk. |
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The estimated fair value of cash, accounts receivable and accounts payable approximates their carrying value due to their short-term nature (Level 1). The estimated fair value of advances to equity affiliate and dividend receivable approximates their carrying value as it is the estimated amount we would receive from a third party to assume the receivables (Level 2). The following disclosure of the estimated fair value of financial instruments is made in accordance with the requirements of ASC 825, Financial Instruments. The estimated fair value amounts have been determined at discrete points in time based on relevant market information. These estimates involve uncertainties and cannot be determined with precision. The following table presents the estimated fair values of our fixed interest rate, long-term debt instrument (Level 3), excluding the embedded derivative. |
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| | As of December 31, 2013 | | | | | | | | | | | | | |
| | Carying | | | Fair | | | | | | | | | | | | | |
Value | Value | | | | | | | | | | | | |
| | (in thousands) | | | | | | | | | | | | | |
11% senior unsecured notes (Level 2) | | $ | 77,480 | | | $ | 79,750 | | | | | | | | | | | | | |
As discussed in Note 11 – Debt, the 11% senior notes were redeemed at face value on January 11, 2014 following a notice of redemption issued in December 2013. Therefore, the fair value of our fixed interest debt instruments is stated at the redemption amount. |
Derivative Financial Instruments |
The following tables set forth by level within the fair value hierarchy our financial liabilities that were accounted for at fair value as of December 31, 2013 and 2012. As required by ASC 820, a financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value liabilities and their placement within the fair value hierarchy levels. See Note 12 – Warrant Derivative Liability for a description and discussion of our warrant derivative liability and Note 11 – Debt for a description of our long-term debt embedded derivative liability as well as a description of the valuation models and inputs used to calculate the fair value of these derivative liabilities. |
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| | As of December 31, 2013 | | | | | |
| | Level 1 | | | Level 2 | | | Level 3 | | | Total | | | | | |
| | (in thousands) | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | |
Warrant derivative liability | | $ | 0 | | | $ | 0 | | | $ | 1,953 | | | $ | 1,953 | | | | | |
Embedded derivative-debt | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | | |
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Total derivative liabilities | | $ | 0 | | | $ | 0 | | | $ | 1,953 | | | $ | 1,953 | | | | | |
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| | As of December 31, 2012 | | | | | |
| | Level 1 | | | Level 2 | | | Level 3 | | | Total | | | | | |
| | (in thousands) | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | |
Warrant derivative liability | | $ | 0 | | | $ | 0 | | | $ | 5,470 | | | $ | 5,470 | | | | | |
Embedded derivative-debt | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | | |
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Total derivative liabilities | | $ | 0 | | | $ | 0 | | | $ | 5,470 | | | $ | 5,470 | | | | | |
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We record the net change in the fair value of the derivative positions listed above in unrealized gain (loss) on warrant derivative liabilities in our consolidated statements of operations and comprehensive income (loss). During the year ended December 31, 2013, an unrealized gain of $3.5 million was recorded to reflect the change in fair value of the warrants ($0.6 million unrealized loss and $9.8 million unrealized gain during the years ended December 31, 2012 and 2011, respectively). |
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Changes in Level 3 Instruments Measured at Fair Value on a Recurring Basis |
The following table provides a reconciliation of financial liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). |
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| | December 31, | | | December 31, | | | | | | | | | | | | | |
2013 | 2012 | | | | | | | | | | | | |
| | (in thousands) | | | | | | | | | | | | | |
Financial liabilities: | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 5,470 | | | $ | 4,870 | | | | | | | | | | | | | |
Unrealized change in fair value | | | (3,517 | ) | | | 600 | | | | | | | | | | | | | |
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Ending balance | | $ | 1,953 | | | $ | 5,470 | | | | | | | | | | | | | |
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During the year ended December 31, 2013, there were no transfers between Level 1, Level 2 and Level 3 liabilities. |
Share-Based Compensation | ' |
Share-Based Compensation |
We use a fair value based method of accounting for stock-based compensation. We utilize the Black-Scholes option pricing model to measure the fair value of stock options and stock appreciation rights (“SARs”). Restricted stock and restricted stock units (“RSUs”) are measured at their intrinsic values. See Note 15 – Stock-Based Compensations and Stock Purchase Plans. |
Income Taxes | ' |
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Income Taxes |
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Deferred income taxes reflect the net tax effects, calculated at currently enacted rates, of (a) future deductible/taxable amounts attributable to events that have been recognized on a cumulative basis in the financial statements or income tax returns, and (b) operating loss and tax credit carryforwards. A valuation allowance for deferred tax assets is recorded when it is more likely than not that the benefit from the deferred tax asset will not be realized. |
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We classify interest related to income tax liabilities and penalties as applicable, as interest expense. |
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We do not provide deferred income taxes on undistributed earnings of our foreign subsidiaries for possible future remittances where we are able to assert that such earnings are permanently reinvested, or otherwise can be negotiated in a tax free manner, as part of our ongoing business. |
Valuation and Qualifying Accounts | ' |
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Valuation and Qualifying Accounts |
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Our valuation and qualifying accounts are comprised of the deferred tax valuation allowance, investment valuation allowance and VAT receivable valuation allowance. Balances and changes in these accounts are, in thousands: |
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| | | | | Additions | | | | | | | |
| | Balance at | | | Charged to | | | Charged to | | | Deductions | | | Balance at | |
Beginning | Income | Other | From | End of |
of Year | | Accounts* | Reserves | Year |
At December 31, 2013 | | | | | | | | | | | | | | | | | | | | |
Amounts deducted from applicable assets | | | | | | | | | | | | | | | | | | | | |
Deferred tax valuation allowance | | $ | 68,419 | | | $ | 8,072 | | | $ | 0 | | | $ | 0 | | | $ | 76,491 | |
Investment valuation allowance | | | 1,350 | | | | | | | | | | | | | | | | 1,350 | |
VAT receivable valuation allowance | | | 0 | | | | 2,792 | | | | 0 | | | | 0 | | | | 2,792 | |
At December 31, 2012 | | | | | | | | | | | | | | | | | | | | |
Amounts deducted from applicable assets | | | | | | | | | | | | | | | | | | | | |
Deferred tax valuation allowance | | $ | 53,116 | | | $ | 15,303 | | | $ | 0 | | | $ | 0 | | | $ | 68,419 | |
Investment valuation allowance | | | 1,350 | | | | 0 | | | | 0 | | | | 0 | | | | 1,350 | |
At December 31, 2011 | | | | | | | | | | | | | | | | | | | | |
Amounts deducted from applicable assets | | | | | | | | | | | | | | | | | | | | |
Deferred tax valuation allowance | | $ | 46,905 | | | $ | 6,211 | | | $ | 0 | | | $ | 0 | | | $ | 53,116 | |
Investment valuation allowance | | | 1,350 | | | | 0 | | | | 0 | | | | 0 | | | | 1,350 | |
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* | Amounts charged to other accounts include net operating losses and income tax credits. | | | | | | | | | | | | | | | | | | | |
New Accounting Pronouncements | ' |
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New Accounting Pronouncements |
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In January 2013, Financial Accounting Standards Board (“FASB”) issued ASU No. 2013-01, which is included in ASC 210, “Balance Sheet”, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” (“ASU No. 2013-01”). This update clarifies that the scope of ASU 2011-11: “Disclosures about Offsetting Assets and Liabilities” applies only to derivatives accounted for under ASC 815 “Derivatives and Hedging”, included bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities lending transactions that are either offset in accordance with ASC 210-20-45 or ASC 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. ASU No. 2013-01 is effective for fiscal years and interim periods within those years, beginning on or after January 1, 2013. Entities should provide the required disclosures retrospectively for all comparative periods presented. The adoption of this guidance impacted presentation disclosures only and did not have an impact on our consolidated financial position, results of operation or cash flows. |
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In February 2013, FASB issued ASU No. 2013-04, which is included in ASC 405, “Liabilities”, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date”. This update provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation with the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing guidance in USGAAP. Examples of obligations within the scope to ASU No. 2013-04 include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. ASU No. 2013-04 is effective for fiscal years and interim periods within those years beginning after December 5, 2013. Entities should provide the required disclosures retrospectively for all comparative periods presented. We are currently evaluating the impact of this guidance, but we expect that the adoption of this guidance will impact presentation disclosures only and will not have an impact on our consolidated financial position, results of operation or cash flows. |
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In July 2013, FASB issued ASU No. 2013-11 which is included in ASC 740 “Income Taxes”, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” This update provides guidance regarding the presentation of unrecognized tax benefits when net operating loss carryforward, a similar tax loss, or a tax credit carryforward are not available at the reporting date to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose. In such instances, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The amendment should be applied prospectively to all unrecognized tax benefits that exist at the effective date; however, retrospective application is permitted. The amendment is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. We are currently evaluating the impact of this guidance, but we expect that the adoption of this guidance will impact presentation disclosures only and will not have an impact on our consolidated financial position, results of operation or cash flows. |
Accounting for Uncertainty in Income Taxes | ' |
Accounting for Uncertainty in Income Taxes |
The FASB issued ASC 740-10 (prior authoritative literature: Financial Interpretation No. [“FIN”] 48, “Accounting for Uncertainty in Income Taxes – An Interpretation of FASB Statement No. 109 [“FIN 48”]) to create a single model to address accounting for uncertainty in tax positions. FIN 48 clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. FIN 48 also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. |