(Gain) loss on Foreign Currency Exchange, net
Net gain on foreign currency exchange was $(4.9) million for the year ended December 31, 2016 versus a net loss of $35.7 million for the year ended December 31, 2015, a decrease of $40.6 million. This change is primarily due to the impact of movements in foreign exchange rates on intercompany loans and foreign currency contracts.
During the year ended December 31, 2016, we realized a net loss of $37.6 million on foreign currency forward contracts that matured during that year resulting from the devaluation of the Brazilian real, Chinese yuan renminbi, Indian rupee, Malaysian ringgit, South African rand and Thai baht as compared to the U.S. dollar. This $37.6 million net loss was attributed to: (i) a net gain of $3.8 million on forward contracts associated with cash generated by foreign subsidiaries; and (ii) a net loss of $41.4 million on forward contracts that hedge the purchase of foreign currencies for investments in acquisitions and debt extinguishments.
The foreign currency net loss relating to investments in power plants was partially offset by the lower cost associated with certain acquisitions and debt extinguishments. The fair value of our outstanding currency forward contracts was a net liability of $13.3 million as of December 31, 2016.
Other Income, net
Other income, net was $20.2 million for the year ended December 31, 2016 compared to $6.4 million for the year ended December 31, 2015. This increase was primarily due to the sale of certain development assets related to the NPS Star solar power plant in Thailand and to liquidated damages received by power plants in South Africa.
Income Tax Provision
The income tax expense was $8.7 million for the year ended December 31, 2016, compared to $5.3 million for the year ended December 31, 2015. For the year ended December 31, 2016, the overall effective tax rate was different than the statutory rate of 35.0% primarily due to valuation allowance provisions and releases, tax holiday benefits, projected minimum taxes in foreign jurisdictions, gross receipt taxes in Brazil, and taxes on non-operating activities. As of December 31, 2016, most jurisdictions were in a net deferred tax asset position. A valuation allowance is recorded against some of the power plants with deferred tax assets, primarily because of the historical losses in those jurisdictions.