XML 128 R26.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Note 17. Income Taxes We record current income tax expense for the amounts that we expect to report and pay on our income tax returns and deferred income tax expense for the change in the deferred tax assets and liabilities. On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (the “Tax Act”) that significantly changed U.S. tax law. One part of this Tax Act required the Company to pay a deemed repatriation tax of $5.2 million on its cumulative foreign E&P. After application of tax year 2017 estimated tax payments, $1.1 million of the liability remains outstanding and is due in 2024. Income from continuing operations before income taxes consisted of the following:
|  | Year Ended December 31, |
(in thousands) |  | 2019 |  |  | 2018 |  |  | 2017 |
Foreign |  | $ | 49,171 |  |  | $ | 54,753 |  |  | $ | 82,919 |
United States |  |  | (23,061 | ) |  |  | 10,256 |  |  |  | 21,431 |
Income from continuing operations before income taxes |  | $ | 26,110 |  |  | $ | 65,009 |  |  | $ | 104,350 |
Significant components of the income tax provision from continuing operations are as follows:
|  | Year Ended December 31, |
(in thousands) |  | 2019 |  |  | 2018 |  |  | 2017 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
United States: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (2,260 | ) |  | $ | 41 |  |  | $ | 1,693 |
State |  |  | 1,400 |  |  |  | (335 | ) |  |  | 2,573 |
Foreign |  |  | 13,764 |  |  |  | 12,039 |  |  |  | 15,583 |
Total current |  |  | 12,904 |  |  |  | 11,745 |  |  |  | 19,849 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
United States: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (3,355 | ) |  |  | 1,860 |  |  |  | 19,893 |
State |  |  | (1,619 | ) |  |  | 860 |  |  |  | 1,761 |
Foreign |  |  | (5,424 | ) |  |  | 2,630 |  |  |  | 4,395 |
Total deferred |  |  | (10,398 | ) |  |  | 5,350 |  |  |  | 26,049 |
Income tax expense |  | $ | 2,506 |  |  | $ | 17,095 |  |  | $ | 45,898 |
We are subject to income tax in jurisdictions in which we operate. A reconciliation of the statutory federal income tax rate to the effective tax rate is as follows:
|  | Year Ended December 31, |
(in thousands) |  | 2019 |  |  | 2018 |  |  | 2017 |
Computed income tax expense at statutory federal income tax rate |  | $ | 5,483 |  |  |  | 21.0 | % |  | $ | 13,665 |  |  |  | 21.0 | % |  | $ | 36,522 |  |  |  | 35.0 | %
State income taxes, net of federal benefit |  |  | (173 | ) |  |  | (0.2 | )% |  |  | 3,489 |  |  |  | 5.4 | % |  |  | 1,160 |  |  |  | 1.1 | %
Deemed mandatory repatriation state tax |  |  | — |  |  |  | 0.0 | % |  |  | (909 | ) |  |  | (1.4 | )% |  |  | 1,206 |  |  |  | 1.2 | %
Deemed mandatory repatriation federal tax, net of foreign tax credit |  |  | — |  |  |  | 0.0 | % |  |  | (1,690 | ) |  |  | (2.6 | )% |  |  | 6,936 |  |  |  | 6.6 | %
Remeasurement of deferred taxes due to change in tax rates * |  |  | (4,517 | ) |  |  | (17.3 | )% |  |  | (510 | ) |  |  | (0.8 | )% |  |  | 8,000 |  |  |  | 7.7 | %
Foreign tax rate differential |  |  | 3,122 |  |  |  | 12.0 | % |  |  | 4,138 |  |  |  | 6.4 | % |  |  | (5,031 | ) |  |  | (4.8 | )%
U.S. tax on current year foreign earnings, net of foreign tax credits |  |  | (1,792 | ) |  |  | (6.9 | )% |  |  | (223 | ) |  |  | (0.3 | )% |  |  | (2,726 | ) |  |  | (2.6 | )%
Change in valuation allowance |  |  | 920 |  |  |  | 1.8 | % |  |  | (653 | ) |  |  | (1.0 | )% |  |  | (796 | ) |  |  | (0.8 | )%
Other adjustments, net |  |  | (537 | ) |  |  | (0.8 | )% |  |  | (212 | ) |  |  | (0.3 | )% |  |  | 627 |  |  |  | 0.6 | %
Income tax expense |  | $ | 2,506 |  |  |  | 9.6 | % |  | $ | 17,095 |  |  |  | 26.4 | % |  | $ | 45,898 |  |  |  | 44.0 | %
* Included $0.6 million increase to the valuation allowance in 2017. The components of deferred income tax assets and liabilities included in the Consolidated Balance Sheets are as follows:
|  | December 31, |
(in thousands) |  | 2019 |  |  | 2018 |
Deferred tax assets: |  |  |  |  |  |  |  |
Tax credit carryforwards |  | $ | 7,879 |  |  | $ | 9,156 |
Pension, compensation, and other employee benefits |  |  | 17,231 |  |  |  | 13,022 |
Provisions for losses |  |  | 4,778 |  |  |  | 5,133 |
Net operating loss carryforward |  |  | 5,371 |  |  |  | 4,707 |
State income taxes |  |  | 3,089 |  |  |  | 1,546 |
Other deferred income tax assets |  |  | 2,177 |  |  |  | 2,920 |
Total deferred tax assets |  |  | 40,525 |  |  |  | 36,484 |
Valuation allowance |  |  | (4,276 | ) |  |  | (3,356 | )
Foreign deferred tax assets included above |  |  | (2,351 | ) |  |  | (2,468 | )
Net deferred tax assets |  |  | 33,898 |  |  |  | 30,660 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property and equipment |  |  | (20,681 | ) |  |  | (14,501 | )
Deferred tax related to life insurance |  |  | (3,945 | ) |  |  | (3,498 | )
Goodwill and other intangible assets |  |  | (16,172 | ) |  |  | (4,759 | )
Other deferred income tax liabilities |  |  | (1,858 | ) |  |  | (939 | )
Total deferred tax liabilities |  |  | (42,656 | ) |  |  | (23,697 | )
Foreign deferred tax liabilities included above |  |  | 31,192 |  |  |  | 9,808 |
United States net deferred tax assets |  | $ | 22,434 |  |  | $ | 16,771 |
We use significant judgment in forming conclusions regarding the recoverability of our deferred tax assets and evaluate all available positive and negative evidence to determine if it is more-likely-than-not that the deferred tax assets will be realized. To the extent recovery does not appear likely, a valuation allowance must be recorded. We had gross deferred tax assets of $40.5 million as of December 31, 2019 and $36.5 million as of December 31, 2018. These deferred tax assets reflect the expected future tax benefits to be realized upon reversal of deductible temporary differences and the utilization of tax attributes, including tax credit carryforwards. As of December 31, 2019, foreign tax credit carryforwards were $5.4 million, of which $4.7 million are foreign tax credits against U.S. income tax which will begin to expire in 2021 and $0.7 million are creditable against United Kingdom taxes, which can be carried forward indefinitely. As of December 31, 2019, we had alternative minimum tax credit carryforwards of $1.9 million, and $0.6 million of U.S. research and development credit carryforwards. We had gross state and foreign net operating loss carryforwards of $55.2 million as of December 31, 2019 and $49.1 million as of December 31, 2018, for which we had deferred tax assets of $5.4 million as of December 31, 2019 and $4.7 million as of December 31, 2018. The state net operating loss carryforwards of $1.9 million expire from 2020 through 2038 and are subject to a full valuation allowance since it is unlikely that we will utilize these tax benefits prior to expiration. The foreign net operating loss carryforwards of $3.2 million do not expire. The valuation allowance was $4.3 million at December 31, 2019 and $3.4 million at December 31, 2018. The increase was primarily due to an increase for certain foreign net operating loss and credit carryforwards that do not meet the more likely-than-not threshold for recognition. While we believe that the deferred tax assets, net of existing valuation allowances, will be utilized in future periods, there are inherent uncertainties regarding the ultimate realization of these tax assets. It is possible that the relative weight of positive and negative evidence regarding the realization of deferred tax assets may change, which could result in a material increase or decrease in our valuation allowance. Such a change could result in a material increase or decrease to income tax expense in the period the assessment was made. We have not recorded deferred taxes for withholding taxes on current unremitted earnings of our subsidiaries located in Canada, the United Kingdom, and the Netherlands as we expect to reinvest those earnings in operations outside of the United States. We exercise judgment in determining the income tax provision for positions taken on prior returns when the ultimate tax determination is uncertain. We classify liabilities associated with uncertain tax positions as “Other deferred items and liabilities” in the Consolidated Balance Sheets unless expected to be paid or released within one year. We had liabilities associated with uncertain tax positions, including interest and penalties, of $0.4 million as of December 31, 201 9 and $0.4 million as of December 31, 201 8. Uncertain tax positions, including interest and penalties, are classified as a component of income tax expense. During 2019, we decreased the liability for continuing operations uncertain tax positions, including interest and penalties, by $0.4 million due to the lapse of statute. We expect $0.1 million of the continuing operations uncertain tax positions to be resolved or settled within the next twelve months and have classified this amount as a current liability. A reconciliation of the liabilities associated with uncertain tax positions (excluding interest and penalties) is as follows:
(in thousands) |  | Continuing Operations |  |  | Discontinued Operations |  |  | Total |
Balance at December 31, 2016 |  | $ | 1,559 |  |  | $ | 636 |  |  | $ | 2,195 |
Additions for tax positions taken in prior years |  |  | 43 |  |  |  | — |  |  |  | 43 |
Reductions for lapse of applicable statutes |  |  | (177 | ) |  |  | (636 | ) |  |  | (813 | )
Balance at December 31, 2017 |  |  | 1,425 |  |  |  | — |  |  |  | 1,425 |
Additions for tax positions taken in prior years |  |  | 31 |  |  |  | — |  |  |  | 31 |
Reductions for lapse of applicable statutes |  |  | (1,086 | ) |  |  | — |  |  |  | (1,086 | )
Balance at December 31, 2018 |  |  | 370 |  |  |  | — |  |  |  | 370 |
Additions for tax positions taken in prior years |  |  | 151 |  |  |  | — |  |  |  | 151 |
Reductions for lapse of applicable statutes |  |  | (296 | ) |  |  | — |  |  |  | (296 | )
Balance at December 31, 2019 |  | $ | 225 |  |  | $ | — |  |  | $ | 225 |
We are subject to taxation in various jurisdictions and file federal, state and local income tax returns in the United States, Canada, the United Kingdom and other foreign countries. During the year, we concluded the IRS audit of the 2016 tax year and various other state tax audits, which resulted in a $0.1 million reduction of U.S. foreign tax credits and $0.3 million of additional tax expense. We are also currently in the process of resolving the audit by the Canada Revenue Agency for the 2016 and 2017 tax years, which we estimate will result in a $0.6 million reduction in existing depreciable assets and a $0.1 million of additional liability. Our 2017 through 2018 U.S. federal tax years and various state tax years from 2014 through 2018 remain subject to income tax examinations by tax authorities. The tax years 2015 through 2018 remain subject to examination by various foreign taxing jurisdictions. Cash paid for income taxes was $17.2 million during 2019, $27.3 million during 2018, and $14.6 million during 2017.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration