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Income Tax | 9 Months Ended
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Sep. 30, 2018
Income Tax Disclosure [Abstract] |
Income Tax | Income Tax The components of income tax expense for the three and nine months ended September 30, 2018 and 2017, respectively, consisted of the following:
|  | Three months ended September 30, |  | Nine months ended September 30,
(In thousands) |  | 2018 |  | 2017 |  | 2018 |  | 2017
Current tax provision (benefit) |  | $ | 4,923 |  |  | $ | (301 | ) |  | $ | 13,083 |  |  | $ | 7,586 |
Deferred tax benefit |  | (1,621 | ) |  | (4,539 | ) |  | (2,734 | ) |  | (6,338 | )
Income tax expense (benefit) |  | $ | 3,302 |  |  | $ | (4,840 | ) |  | $ | 10,349 |  |  | $ | 1,248 |
The Company conducts operations in Puerto Rico and certain countries in Latin America. As a result, the income tax expense includes the effect of taxes paid to the Puerto Rico government as well as foreign jurisdictions. The following table presents the components of income tax expense for the three and nine months ended September 30, 2018 and 2017, respectively, and its segregation based on location of operations:
|  | Three months ended September 30, |  | Nine months ended September 30,
(In thousands) |  | 2018 |  | 2017 |  | 2018 |  | 2017
Current tax provision (benefit) |  |  |  |  |  |  |  |
Puerto Rico |  | $ | 2,208 |  |  | $ | (1,440 | ) |  | $ | 6,063 |  |  | $ | 3,420 |
United States |  | (31 | ) |  | (10 | ) |  | 142 |  |  | 190 |
Foreign countries |  | 2,746 |  |  | 1,149 |  |  | 6,878 |  |  | 3,976 |
Total current tax provision (benefit) |  | $ | 4,923 |  |  | $ | (301 | ) |  | $ | 13,083 |  |  | $ | 7,586 |
Deferred tax benefit |  |  |  |  |  |  |  |
Puerto Rico |  | $ | (1,026 | ) |  | $ | (4,098 | ) |  | $ | (2,059 | ) |  | $ | (5,150 | )
United States |  | (11 | ) |  | (107 | ) |  | (109 | ) |  | (190 | )
Foreign countries |  | (584 | ) |  | (334 | ) |  | (566 | ) |  | (998 | )
Total deferred tax benefit |  | $ | (1,621 | ) |  | $ | (4,539 | ) |  | $ | (2,734 | ) |  | $ | (6,338 | )
Taxes payable to foreign countries by EVERTEC’s subsidiaries will be paid by such subsidiary and the corresponding liability and expense will be presented in EVERTEC’s consolidated financial statements. As of September 30, 2018, the Company has $38.5 million of unremitted earnings from foreign subsidiaries. The Company has not recognized a deferred tax liability on undistributed earnings for the Company’s foreign subsidiaries because these earnings are intended to be indefinitely reinvested. As of September 30, 2018, the gross deferred tax asset amounted to $8.8 million and the gross deferred tax liability amounted to $19.2 million, compared to $8.3 million and $21.1 million, respectively, as of December 31, 2017. Income tax expense differs from the amount computed by applying the Puerto Rico statutory income tax rate to the income before income taxes as a result of the following:
|  | Nine months ended September 30,
(In thousands) |  | 2018 |  | 2017
Computed income tax at statutory rates |  | $ | 29,902 |  |  | $ | 19,790 |
Differences in tax rates due to multiple jurisdictions |  | (356 | ) |  | 2,237 |
Tax benefit due to a change in estimate |  | — |  |  | (334 | )
Effect of income subject to tax-exemption grant |  | (19,542 | ) |  | (16,421 | )
Unrecognized tax expense (benefit) |  | 754 |  |  | (4,271 | )
Other (benefit) expense |  | (409 | ) |  | 247 |
Income tax expense |  | $ | 10,349 |  |  | $ | 1,248 |

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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