Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.19.3.a.u2
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2019
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, 2019, 2018 and 2017 were as follows (in thousands):
 
 
2019
 
2018
 
2017
U.S.
 
$
(13,317
)
 
$
12,633

 
$
(148,248
)
Foreign
 
(1,430
)
 
1,559

 
(4,457
)
Total
 
$
(14,747
)
 
$
14,192

 
$
(152,705
)
Schedule of Components of Income Tax Expense (Benefit)
The components of income tax expense (benefit) for the years ended December 31, 2019, 2018 and 2017 were as follows (in thousands):
 
 
2019
 
2018
 
2017
Current:
 
 
 
 
 
 
Federal
 
$
2,935

 
$
924

 
$
—

State
 
(69
)
 
219

 
7

Foreign
 
937

 
38

 
(3,530
)
Total current
 
3,803

 
1,181

 
(3,523
)
Deferred:
 
 
 
 
 
 
Federal
 
(4,266
)
 
2,154

 
(121,359
)
State
 
70

 
(390
)
 
1,923

Foreign
 
(338
)
 
(5
)
 
294

Total deferred
 
(4,534
)
 
1,759

 
(119,142
)
Income tax (benefit) expense
 
$
(731
)
 
$
2,940

 
$
(122,665
)
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, 2019, 2018 and 2017:
Provision (benefit):
 
2019
 
2018
 
2017
Statutory rate
 
21.0
 %
 
21.0
 %
 
35.0
 %
State taxes, net of federal tax benefit
 
10.9
 %
 
(1.9
)%
 
5.3
 %
State valuation allowance
 
(11.0
)%
 
0.4
 %
 
(6.6
)%
Sale of investment in JV
 
(8.7
)%
 
—
 %
 
—
 %
Foreign tax credit valuation allowance
 
(4.2
)%
 
—
 %
 
—
 %
Foreign valuation allowance
 
0.3
 %
 
(2.3
)%
 
(1.0
)%
Brazilian PERT Program
 
—
 %
 
—
 %
 
2.2
 %
Other
 
(3.3
)%
 
3.5
 %
 
(0.6
)%
Tax Act
 
—
 %
 
—
 %
 
46.0
 %
 
 
5.0
 %

20.7
 %

80.3
 %
Schedule of Net Deferred Tax Liabilities
The components of net deferred income tax liabilities as of December 31, 2019 and 2018 were as follows (in thousands):
 
 
2019
 
2018
Deferred tax liabilities:
 
 
 
 
Property and equipment
 
$
111,411

 
$
116,178

Buy-in on maintenance contracts
 
223

 
423

Total deferred tax liabilities
 
111,634

 
116,601

Deferred tax assets:
 
 
 
 
Tax loss carryforwards
 
47,243

 
44,919

Stock compensation
 
690

 
691

Reserves
 
742

 
788

Other
 
658

 
(285
)
Valuation allowance
 
(41,492
)
 
(37,869
)
Total deferred tax assets
 
7,841

 
8,244

Net deferred tax liabilities
 
$
103,793

 
$
108,357

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):
 
2019
 
2018
2017
Unrecognized tax benefits at the beginning of the year
$
11

 
$
11

$
261

Reductions due to settlements with taxing authorities
—

 
—

(250
)
Unrecognized tax benefits at the end of the year
$
11

 
$
11

$
11

Summary of Valuation Allowance
A reconciliation of the beginning and ending amount of the valuation allowance is as follows (in thousands):
 
2019
 
2018
2017
Valuation allowance at the beginning of the year
$
37,869

 
$
34,967

$
21,575

Increases to state valuation allowance
1,616

 
50

10,010

Increases due to foreign valuation allowances
2,007

 
2,852

7,578

Decrease due to Brazilian PERT Program
—

 
—

(4,196
)
Valuation allowance at the end of the period
$
41,492

 
$
37,869

$
34,967