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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES The income tax provision attributable to continuing operations for the years ended December 31, 2021, 2020, and 2019, consists of the following:
|  | Year Ended December 31,
|  | 2021 |  | 2020 |  | 2019
|  | (In Thousands)
Current |  |  |  |  |  |
State |  | $ | 124 |  |  | $ | 191 |  |  | $ | 400 |
Foreign |  | 2,031 |  |  | 1,598 |  |  | 2,837 |
|  | 2,155 |  |  | 1,789 |  |  | 3,237 |
Deferred |  |  |  |  |  |
Federal |  | — |  |  | (175) |  |  | (161) |
State |  | (4) |  |  | (125) |  |  | (395) |
Foreign |  | (67) |  |  | 269 |  |  | 130 |
|  | (71) |  |  | (31) |  |  | (426) |
Total tax provision |  | $ | 2,084 |  |  | $ | 1,758 |  |  | $ | 2,811 |
A reconciliation of the provision (benefit) for income taxes attributable to continuing operations, computed by applying the federal statutory rate to income (loss) before income taxes and the reported income taxes, is as follows:
|  | Year Ended December 31,
|  | 2021 |  | 2020 |  | 2019
|  | (In Thousands)
Income tax benefit computed at statutory federal income tax rates |  | $ | (3,091) |  |  | $ | (5,268) |  |  | $ | (26,903) |
State income taxes (net of federal benefit) |  | (386) |  |  | (2,124) |  |  | (2,388) |
Impact of international operations |  | (4,083) |  |  | 4,036 |  |  | 672 |
Valuation allowance |  | 9,055 |  |  | 4,598 |  |  | 30,640 |
Other |  | 589 |  |  | 516 |  |  | 790 |
Total tax provision |  | $ | 2,084 |  |  | $ | 1,758 |  |  | $ | 2,811 |
Income (loss) before taxes and discontinued operations includes the following components:
|  | Year Ended December 31,
|  | 2021 |  | 2020 |  | 2019
|  | (In Thousands)
Domestic |  | $ | (25,198) |  |  | $ | (25,929) |  |  | $ | (135,668) |
International |  | 10,477 |  |  | 843 |  |  | 7,559 |
Total |  | $ | (14,721) |  |  | $ | (25,086) |  |  | $ | (128,109) |
A reconciliation of the beginning and ending amount of our gross unrecognized tax benefit is as follows:
|  | Year Ended December 31,
|  | 2021 |  | 2020 |  | 2019
|  | (In Thousands)
Gross unrecognized tax benefits at beginning of period |  | $ | 17 |  |  | $ | 137 |  |  | $ | 328 |
Lapse in statute of limitations |  | (17) |  |  | (120) |  |  | (191) |
Gross unrecognized tax benefits at end of period |  | $ | — |  |  | $ | 17 |  |  | $ | 137 |
We recognize interest and penalties related to uncertain tax positions in income tax expense. During the years ended December 31, 2021, 2020, and 2019, we recognized less than $(0.1) million, $(0.2) million, and $(0.3) million, respectively, of interest and penalties. As of December 31, 2021 and 2020, we had zero and less than $0.1 million, respectively, of accrued potential interest and penalties associated with uncertain tax positions. The total amount of unrecognized tax benefits that would affect our effective tax rate if recognized was zero and less than $0.1 million as of December 31, 2021 and 2020, respectively. We do not expect a significant change to the unrecognized tax benefits during the next twelve months. We file tax returns in the U.S. and in various state, local, and non-U.S. jurisdictions. The following table summarizes the earliest tax years that remain subject to examination by taxing authorities in any major jurisdiction in which we operate:
Jurisdiction | Earliest Open Tax Period
United States – Federal | 2012
United States – State and Local | 2004
Non-U.S. jurisdictions | 2011
We use the liability method for reporting income taxes, under which current and deferred tax assets and liabilities are recorded in accordance with enacted tax laws and rates. Under this method, at the end of each period, the amounts of deferred tax assets and liabilities are determined using the tax rate expected to be in effect when the taxes are actually paid or recovered. We establish a valuation allowance to reduce the deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. We considered all available evidence, both positive and negative, in determining whether, based on the weight of that evidence, a valuation allowance is needed for some portion or all of our deferred tax assets. In determining the need for a valuation allowance on our deferred tax assets we placed greater weight on recent and objectively verifiable current information, as compared to more forward-looking information that is used in valuating other assets on the balance sheet. While we have considered taxable income in prior carryback years, future reversals of existing taxable temporary differences, future taxable income, and tax planning strategies in assessing the need for the valuation allowance, there can be no guarantee that we will be able to realize our net deferred tax assets. Significant components of our deferred tax assets and liabilities as of December 31, 2021 and 2020 are as follows:
|  | December 31,
|  | 2021 |  | 2020
|  | (In Thousands)
Net operating losses |  | $ | 114,597 |  |  | $ | 104,478 |
Accruals |  | 16,500 |  |  | 16,515 |
Depreciation and amortization for book in excess of tax expense |  | 10,965 |  |  | 12,608 |
Investment in Partnership |  | — |  |  | 23,344 |
All other |  | 11,913 |  |  | 12,743 |
Total deferred tax assets |  | 153,975 |  |  | 169,688 |
Valuation allowance |  | (127,058) |  |  | (146,678) |
Net deferred tax assets |  | $ | 26,917 |  |  | $ | 23,010 |
|  | December 31,
|  | 2021 |  | 2020
|  | (In Thousands)
Right of use asset |  | $ | 7,071 |  |  | $ | 7,808 |
Depreciation and amortization for tax in excess of book expense |  | 14,037 |  |  | 15,402 |
Investment in Partnership |  | 5,471 |  |  | — |
All other |  | 2,007 |  |  | 1,690 |
Total deferred tax liabilities |  | 28,586 |  |  | 24,900 |
Net deferred tax liabilities |  | $ | 1,669 |  |  | $ | 1,890 |
We believe that it is more likely than not we will not realize all the tax benefits of the deferred tax assets within the allowable carryforward period. Therefore, an appropriate valuation allowance has been provided. The valuation allowance as of December 31, 2021 and 2020 primarily relates to federal deferred tax assets. The $19.6 million decrease in the valuation allowance during the year ended December 31, 2021 was primarily due to the decrease in Federal deferred tax assets, the majority of which is related to the sale of our partnership interest in CSI Compressco in January 2021. Entering into the GP Sale in January 2021 resulted in the recognition of temporary deferred assets associated with the outside basis difference of some of our subsidiaries at December 31, 2020, which were then reversed at the time of the sale in January 2021. These temporary differences were fully offset by a valuation allowance. At December 31, 2021, we had federal, state, and foreign net operating loss carryforwards/carrybacks equal to approximately $92.5 million, $12.3 million, and $9.9 million, respectively. In those countries and states in which net operating losses are subject to an expiration period, our loss carryforwards, if not utilized, will expire at various dates from 2022 through 2041. Utilization of the net operating loss and credit carryforwards may be subject to a significant annual limitation due to ownership changes that have occurred previously or could occur in the future provided by Section 382 of the Internal Revenue Code.

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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=121826272&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=122134291&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=121826272&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=122134291&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=121826272&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 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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