Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.10.0.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Income (Loss) Before Income Taxes and Equity Earnings
For financial reporting purposes, income (loss) before income taxes and equity earnings for the years ended December 31, 2018, 2017 and 2016 were as follows (in thousands):
 
 
2018
 
2017
 
2016
U.S.
 
$
12,633

 
$
(148,248
)
 
$
(12,913
)
Foreign
 
1,559

 
(4,457
)
 
(6,446
)
Total
 
$
14,192

 
$
(152,705
)
 
$
(19,359
)
Schedule of Components of Income Tax Expense (Benefit)
The components of income tax expense (benefit) for the years ended December 31, 2018, 2017 and 2016 were as follows (in thousands):
 
 
2018
 
2017
 
2016
Current:
 
 
 
 
 
 
Federal
 
$
924

 
$
—

 
$
17

State
 
219

 
7

 
5

Foreign
 
38

 
(3,530
)
 
1,213

Total current
 
1,181

 
(3,523
)
 
1,235

Deferred:
 
 
 
 
 
 
Federal
 
2,154

 
(121,359
)
 
(5,060
)
State
 
(390
)
 
1,923

 
479

Foreign
 
(5
)
 
294

 
(11
)
Total deferred
 
1,759

 
(119,142
)
 
(4,592
)
Income tax expense
 
$
2,940

 
$
(122,665
)
 
$
(3,357
)
Schedule of Effective Income Tax Rate Reconciliation
The following table reconciles the difference between the statutory federal income tax rate for the Company and the effective income tax rate for the years ended December 31, 2018, 2017 and 2016:
Provision (benefit):
 
2018
 
2017
 
2016
Statutory rate
 
21.0
 %
 
35.0
 %
 
35.0
 %
State taxes, net of federal tax benefit
 
(1.9
)%
 
5.3
 %
 
18.5
 %
State valuation allowance
 
0.4
 %
 
(6.6
)%
 
(21.0
)%
Foreign valuation allowance
 
(2.3
)%
 
(1.0
)%
 
(14.1
)%
Brazilian PERT Program
 
—
 %
 
2.2
 %
 
—
 %
Other
 
3.5
 %
 
(0.6
)%
 
(1.1
)%
Tax Act
 
—
 %
 
46.0
 %
 
—
 %
 
 
20.7
 %
 
80.3
 %
 
17.3
 %
Schedule of Net Deferred Tax Liabilities
The components of net deferred income tax liabilities as of December 31, 2018 and 2017 were as follows (in thousands):
 
 
2018
 
2017
Deferred tax liabilities:
 
 
 
 
Property and equipment
 
$
116,178

 
$
126,595

Buy-in on maintenance contracts
 
423

 
655

Total deferred tax liabilities
 
116,601

 
127,250

Deferred tax assets:
 
 
 
 
Equipment leases
 
—

 
47

Tax loss carryforwards
 
44,919

 
52,293

Stock compensation
 
691

 
843

Reserves
 
788

 
897

Other
 
(285
)
 
1,539

Valuation allowance
 
(37,869
)
 
(34,967
)
Total deferred tax assets
 
8,244

 
20,652

Net deferred tax liabilities
 
$
108,357

 
$
106,598

Summary of Income Tax Contingencies
A reconciliation of the beginning and ending amount of the gross unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands):
 
2018
 
2017
2016
Unrecognized tax benefits at the beginning of the year
$
11

 
$
261

$
648

Reductions due to settlements with taxing authorities
—

 
(250
)
(570
)
Increases due to tax positions taken during the current year
—

 
—

183

Unrecognized tax benefits at the end of the year
$
11

 
$
11

$
261

Summary of Valuation Allowance
A reconciliation of the beginning and ending amount of the valuation allowance is as follows (in thousands):
 
2018
 
2017
2016
Valuation allowance at the beginning of the year
$
34,967

 
$
21,575

$
12,650

Increases to state valuation allowance
50

 
10,010

6,768

Increases due to foreign valuation allowances
2,852

 
7,578

2,157

Decrease due to Brazilian PERT Program
—

 
(4,196
)
—

Valuation allowance at the end of the period
$
37,869

 
$
34,967

$
21,575