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Income Taxes | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Loss before income taxes was comprised of the following for the periods indicated (in thousands):
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
United States | $ | (154,144) |  |  | $ | (225,653) |  |  | $ | (85,342) |
Foreign | (6,157) |  |  | 14,118 |  |  | (8,341) |
Loss before income taxes | $ | (160,301) |  |  | $ | (211,535) |  |  | $ | (93,683) |
Income taxes have been provided for based upon the tax laws and rates in the countries in which operations are conducted and income is earned. Components of income tax expense (benefit) consist of the following for the periods indicated (in thousands):
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
Current |  |  |  |  |
U.S. federal | $ | (17,582) |  |  | $ | — |  |  | $ | — |
U.S. state and local | — |  |  | 209 |  |  | 7 |
Foreign | 12,876 |  |  | 21,975 |  |  | 11,677 |
Total current | (4,706) |  |  | 22,184 |  |  | 11,684 |
Deferred |  |  |  |  |
U.S. federal | (2,515) |  |  | 444 |  |  | — |
Foreign | 3,140 |  |  | 1,166 |  |  | (14,634) |
Total deferred | 625 |  |  | 1,610 |  |  | (14,634) |
Total income tax expense (benefit) | $ | (4,081) |  |  | $ | 23,794 |  |  | $ | (2,950) |
The variance in effective tax rates compared to prior periods is due primarily to the beneficial impact in the current year of provisions from the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which allows corporations with net operating losses (“NOLs”) incurred in 2018, 2019 and 2020 to carry back such NOLs to each of the five years preceding the year of the NOL, beginning with the earliest year in which there is taxable income, and claim an income tax refund in the applicable carryback year. As a result of the NOL carryback provision in the CARES Act, we were able to recognize an income tax refund of $17.5 million which was received in the third quarter of 2020. A reconciliation of the differences between the income tax provision computed at the 21% U.S. statutory rate in effect at December 31, 2020 and the reported provision for income taxes for the periods indicated is as follows (in thousands):
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
Income tax benefit at statutory rate | $ | (33,663) |  |  | $ | (44,422) |  |  | $ | (19,673) |
Branch profits tax | (8,015) |  |  | (12,129) |  |  | (4,267) |
State taxes, net of federal benefit | (3,206) |  |  | 154 |  |  | (27) |
Restricted stock units tax shortfall | 1,695 |  |  | 405 |  |  | 1,025 |
Taxes on foreign earnings at higher rates | 11,399 |  |  | 14,427 |  |  | 13,095 |
Effect of tax rate change | — |  |  | — |  |  | (2,929) |
Effect of moving activity to higher tax rate jurisdiction | — |  |  | — |  |  | (14,620) |
Management fee charged to international operations | 4,848 |  |  | 3,455 |  |  | 1,515 |
Increase in valuation allowances | 34,005 |  |  | 37,802 |  |  | 22,892 |
Goodwill impairment | (1,406) |  |  | 25,677 |  |  | — |
Return-to-provision adjustments | (2,299) |  |  | (524) |  |  | (521) |
Foreign tax credit | (6,574) |  |  | (5,707) |  |  | — |
Other | (865) |  |  | 4,656 |  |  | 560 |
Total income tax expense (benefit) | $ | (4,081) |  |  | $ | 23,794 |  |  | $ | (2,950) |
A reconciliation using the Netherlands statutory rate was not provided as there are no significant operations in the Netherlands. Deferred tax assets and liabilities are recorded for the anticipated future tax effects of temporary differences between the financial statement basis and tax basis of our assets and liabilities and are measured using the tax rates and laws expected to be in effect when the differences are projected to reverse. A valuation allowance is recorded when it is not more likely than not that some or all the benefit from the deferred tax asset will be realized. Significant components of deferred tax assets and liabilities are as follows (in thousands):
| December 31,
| 2020 |  | 2019
Deferred tax assets |  |  |
Foreign net operating loss | $ | 23,744 |  |  | $ | 17,121 |
U.S. net operating loss | 105,802 |  |  | 104,105 |
Research and development credit | 1,156 |  |  | 1,016 |
Foreign tax credit carryover | 2,322 |  |  | 422 |
Intangibles | 17,536 |  |  | 9,365 |
Inventory | 2,615 |  |  | 2,280 |
Property and equipment | 22,565 |  |  | 16,161 |
Investment in partnership | 48,973 |  |  | 24,372 |
Other | 913 |  |  | 1,442 |
Valuation allowance | (168,174) |  |  | (130,010) |
Total deferred tax assets | 57,452 |  |  | 46,274 |
Deferred tax liabilities |  |  |
Investment in partnership | (40,970) |  |  | (23,728) |
Property and equipment | — |  |  | (1,253) |
Goodwill | — |  |  | (7,297) |
Other | — |  |  | (329) |
Total deferred liabilities | (40,970) |  |  | (32,607) |
Net deferred tax assets | $ | 16,482 |  |  | $ | 13,667 |
As of December 31, 2020, we have income tax NOL carryforwards related to both our U.S. and non-U.S. operations of approximately $476 million. In addition, we have research and development tax credit carryforwards of approximately $1.2 million. The ultimate utilization of the NOLs and research and development credits depend on the ability to generate sufficient taxable income in the appropriate tax jurisdiction. These tax attributes expire as follows (in thousands):
Year of Expiration |  | U.S. NOLs |  | Foreign NOLs |  | R&D Credits
2021 - 2025 |  | $ | — |  |  | $ | 21,230 |  |  | $ | — |
2026 - 2030 |  | — |  |  | 5,648 |  |  | — |
2031 - 2039 |  | 168,163 |  |  | 335 |  |  | 1,156 |
Does not expire |  | 209,702 |  |  | 70,668 |  |  | — |
|  | $ | 377,865 |  |  | $ | 97,881 |  |  | $ | 1,156 |
The valuation allowance on our deferred tax asset positions increased from $130.0 million to $168.2 million during 2020 as a result of accumulated tax losses in both the U.S. and various foreign tax jurisdictions. We evaluated all available evidence and determined that it is more likely than not that these losses will not be utilized. It is our intention that all cash and earnings of our subsidiaries as of December 31, 2020, are permanently reinvested and will be used to meet operating cash flow needs. Existing plans do not demonstrate a need to repatriate foreign cash to fund parent company activity, however, should we determine that parent company funding is required, we estimate that any such cash needs may be met without adverse tax consequences. A reconciliation of unrecognized tax benefits as of December 31, 2020 is as follows (in thousands):
| 2020
Balance at December 31, 2019 | $ | 342 |
Increase from positions taken in prior periods | 20,327 |
Increase from positions taken in current period | 7,012 |
Settlements | (527) |
Balance at December 31, 2020 | $ | 27,154 |
Approximately $3 million of the uncertain tax positions, if recognized in the future, would impact our effective tax rate. Approximately $24.1 million of our reserve relates to certain deductions and would only impact our rate if we were subsequently able to utilize operating loss carry-forwards. We have elected to classify interest and penalties incurred on income taxes as income tax expense. We do not foresee resolution of these positions in the coming twelve months. We file income tax returns in the U.S. and various international tax jurisdictions. As of December 31, 2020, our U.S. tax returns remain open to examination for the tax years 2016 through 2019, and the major foreign taxing jurisdictions to which we are subject to tax are open to examination for the tax years 2010 through 2019.

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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