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Income Taxes | 12 Months Ended
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Dec. 31, 2020
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 U.S. 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 payments and credits, $1.0 million of the liability remains outstanding as of December 31, 2020 and is due in 2024. Income from continuing operations before income taxes consisted of the following:
|  | Year Ended December 31, |
(in thousands) |  | 2020 |  |  | 2019 |  |  | 2018 |
Foreign |  | $ | (95,919 | ) |  | $ | 49,171 |  |  | $ | 54,753 |
United States |  |  | (264,940 | ) |  |  | (23,061 | ) |  |  | 10,256 |
Income (loss) from continuing operations before income taxes |  | $ | (360,859 | ) |  | $ | 26,110 |  |  | $ | 65,009 |
Significant components of the income tax provision from continuing operations are as follows:
|  | Year Ended December 31, |
(in thousands) |  | 2020 |  |  | 2019 |  |  | 2018 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
United States: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (128 | ) |  | $ | (2,260 | ) |  | $ | 41 |
State |  |  | 674 |  |  |  | 1,400 |  |  |  | (335 | )
Foreign |  |  | (1,397 | ) |  |  | 13,764 |  |  |  | 12,039 |
Total current |  |  | (851 | ) |  |  | 12,904 |  |  |  | 11,745 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
United States: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 17,171 |  |  |  | (3,355 | ) |  |  | 1,860 |
State |  |  | 2,896 |  |  |  | (1,619 | ) |  |  | 860 |
Foreign |  |  | (4,970 | ) |  |  | (5,424 | ) |  |  | 2,630 |
Total deferred |  |  | 15,097 |  |  |  | (10,398 | ) |  |  | 5,350 |
Income tax expense |  | $ | 14,246 |  |  | $ | 2,506 |  |  | $ | 17,095 |
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) |  | 2020 |  |  | 2019 |  |  | 2018 |
Computed income tax (benefit) expense at statutory federal income tax rate |  | $ | (75,780 | ) |  |  | 21.0 | % |  | $ | 5,483 |  |  |  | 21.0 | % |  | $ | 13,665 |  |  |  | 21.0 | %
State income tax (benefit), net of federal benefit |  |  | (4,138 | ) |  |  | 1.1 | % |  |  | (173 | ) |  |  | (0.2 | )% |  |  | 3,489 |  |  |  | 5.4 | %
Deemed mandatory repatriation state tax |  |  | — |  |  |  | 0.0 | % |  |  | — |  |  |  | 0.0 | % |  |  | (909 | ) |  |  | (1.4 | )%
Deemed mandatory repatriation federal tax, net of foreign tax credit |  |  | — |  |  |  | 0.0 | % |  |  | — |  |  |  | 0.0 | % |  |  | (1,690 | ) |  |  | (2.6 | )%
Remeasurement of deferred taxes due to change in tax rates |  |  | — |  |  |  | 0.0 | % |  |  | (4,517 | ) |  |  | (17.3 | )% |  |  | (510 | ) |  |  | (0.8 | )%
Foreign tax rate differential |  |  | (401 | ) |  |  | 0.1 | % |  |  | 3,122 |  |  |  | 12.0 | % |  |  | 4,138 |  |  |  | 6.4 | %
U.S. tax (benefit) on current year foreign earnings, net of foreign tax credits |  |  | — |  |  |  | 0.0 | % |  |  | (1,792 | ) |  |  | (6.9 | )% |  |  | (223 | ) |  |  | (0.3 | )%
Goodwill impairment |  |  | 16,471 |  |  |  | (4.6 | )% |  |  | — |  |  |  | 0.0 | % |  |  | — |  |  |  | 0.0 | %
Change in valuation allowance |  |  | 77,369 |  |  |  | (21.3 | )% |  |  | 920 |  |  |  | 1.8 | % |  |  | (653 | ) |  |  | (1.0 | )%
Other adjustments, net |  |  | 725 |  |  |  | (0.2 | )% |  |  | (537 | ) |  |  | (0.8 | )% |  |  | (212 | ) |  |  | (0.3 | )%
Income tax expense |  | $ | 14,246 |  |  |  | (3.9 | )% |  | $ | 2,506 |  |  |  | 9.6 | % |  | $ | 17,095 |  |  |  | 26.4 | %
The components of deferred income tax assets and liabilities included in the Consolidated Balance Sheets are as follows:
|  | December 31, |
(in thousands) |  | 2020 |  |  | 2019 |
Deferred tax assets: |  |  |  |  |  |  |  |
Tax credit carryforwards |  | $ | 5,326 |  |  | $ | 7,879 |
Pension, compensation, and other employee benefits |  |  | 11,991 |  |  |  | 17,231 |
Provisions for losses |  |  | 4,623 |  |  |  | 4,778 |
Net operating loss carryforwards |  |  | 44,358 |  |  |  | 5,371 |
State income taxes |  |  | — |  |  |  | 3,089 |
Leases |  |  | 660 |  |  |  | — |
Goodwill and other intangible assets |  |  | 18,055 |  |  |  | — |
Other deferred income tax assets |  |  | 14,175 |  |  |  | 2,177 |
Total deferred tax assets |  |  | 99,188 |  |  |  | 40,525 |
Valuation allowance |  |  | (81,795 | ) |  |  | (4,276 | )
Foreign deferred tax assets included above |  |  | (7,717 | ) |  |  | (2,351 | )
United States net deferred tax assets |  |  | 9,676 |  |  |  | 33,898 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property and equipment |  |  | (24,017 | ) |  |  | (20,681 | )
Goodwill and other intangible assets |  |  | (8,846 | ) |  |  | (16,172 | )
Leases |  |  | (857 | ) |  |  | — |
Life insurance |  |  | — |  |  |  | (3,945 | )
Other deferred income tax liabilities |  |  | (4,485 | ) |  |  | (1,858 | )
Total deferred tax liabilities |  |  | (38,205 | ) |  |  | (42,656 | )
Foreign deferred tax liabilities included above |  |  | 28,490 |  |  |  | 31,192 |
United States net deferred tax assets (liabilities) |  | $ | (39 | ) |  | $ | 22,434 |
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. In determining the recoverability of our deferred assets, we considered our cumulative loss incurred over the four-year period ended December 31, 2020 in each tax jurisdiction. Given the weight of objectively verifiable historical losses from our operations, we recorded a valuation allowance on all deferred tax assets in the U.S., United Kingdom, Germany, and Switzerland. We had gross deferred tax assets of $99.2 million as of December 31, 2020 and $40.5 million as of December 31, 2019. The valuation allowance was $81.8 million at December 31, 2020 and $4.3 million at December 31, 2019. The increase was primarily due to an increase for net operating losses, credit carryforwards, and deferred tax assets that do not meet the more likely-than-not threshold for recognition. As of December 31, 2020, foreign tax credit carryforwards were $4.5 million, of which $3.8 million are foreign tax credits against U.S. income tax, which will begin to expire in 2022 and $0.7 million are creditable against United Kingdom taxes, which can be carried forward indefinitely. As of December 31, 2020, we had $0.7 million of U.S. research and development credit carryforwards. We had gross federal, state, and foreign net operating loss carryforwards of $371.2 million as of December 31, 2020 and $55.2 million as of December 31, 2019, for which we had deferred tax assets of $44.4 million as of December 31, 2020 and $5.4 million as of December 31, 2019. Certain state net operating loss carryforwards of $181.5 million expire from 2020 through 2039, although many states now have unlimited carryforwards. We recorded a valuation allowance on all net operating losses except losses generated in Canada, the Netherlands, Iceland, and Poland. The Canadian net operating loss carryforwards of $28.4 million may be carried back three years and carried forward 20 years. The net operating losses of Iceland and Poland of $8.8 million will expire between five and ten years. The remaining amount of foreign net operating losses of $25.6 million may be carried forward indefinitely. 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 U.S. 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 of $0.3 million as of December 31, 2020 and $0.2 million as of December 31, 2019. As of December 31, 2020, these amounts do not include any accrual of interest nor penalties as none would be owed on these amounts. We elected that all uncertain tax positions, including interest and penalties, are classified as a component of income tax expense. A reconciliation of the liabilities associated with uncertain tax positions (excluding interest and penalties) is as follows:
(in thousands) |  |  |  |
Balance at December 31, 2017 |  | $ | 1,425 |
Additions for tax positions taken in prior years |  |  | 31 |
Reductions for lapse of applicable statutes |  |  | (1,086 | )
Balance at December 31, 2018 |  |  | 370 |
Additions for tax positions taken in prior years |  |  | 151 |
Reductions for lapse of applicable statutes |  |  | (296 | )
Balance at December 31, 2019 |  |  | 225 |
Additions for tax positions taken in prior years |  |  | 25 |
Reductions for lapse of applicable statutes |  |  | — |
Balance at December 31, 2020 |  | $ | 250 |
Our 2017 through 2019 U.S. federal tax years and various state tax years from 2015 through 2019 remain subject to income tax examinations by tax authorities. The tax years 2016 through 2019 remain subject to examination by various foreign taxing jurisdictions. We received cash refunds from income taxes of $14.9 million during 2020 and paid cash for income taxes of $17.2 million during 2019 and $27.3 million during 2018.

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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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