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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Consolidated loss before income taxes for the years ended December 31, 2021, 2020 and 2019 consisted of the following (in thousands):
| 2021 |  | 2020 |  | 2019
United States | $ | (56,665) |  |  | $ | (534,452) |  |  | $ | (254,291) |
Foreign | (16,669) |  |  | 123 |  |  | 13,564 |
Total | $ | (73,334) |  |  | $ | (534,329) |  |  | $ | (240,727) |
The 2021 foreign losses before income taxes included the reclassification of $9.3 million in historical currency translation adjustments upon the liquidation of an international operation, which were not deductible for income tax purposes. Additionally, the 2020 and 2019 U.S. losses before income taxes included non-cash goodwill impairment charges of $406.1 million and $165.0 million, respectively. Approximately $313.1 million and $165.0 million of the goodwill impairment charges were not deductible for income tax purposes in 2020 and 2019, respectively. Components of income tax benefit for the years ended December 31, 2021, 2020 and 2019 consisted of the following (in thousands):
| 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |
United States | $ | 370 |  |  | $ | (44,399) |  |  | $ | 300 |
U.S. state | 250 |  |  | 235 |  |  | 292 |
Foreign | (1,322) |  |  | 2,622 |  |  | 5,958 |
| (702) |  |  | (41,542) |  |  | 6,550 |
Deferred: |  |  |  |  |
United States | (7,662) |  |  | (20,913) |  |  | (13,972) |
U.S. state | (177) |  |  | (1,798) |  |  | (473) |
Foreign | (800) |  |  | (1,693) |  |  | (1,024) |
| (8,639) |  |  | (24,404) |  |  | (15,469) |
Total income tax benefit | $ | (9,341) |  |  | $ | (65,946) |  |  | $ | (8,919) |
A reconciliation of the U.S. statutory tax benefit rate to the effective tax benefit rate for the years ended December 31, 2021, 2020 and 2019 is as follows:
| 2021 |  | 2020 |  | 2019
U.S. statutory tax benefit rate | (21.0) | % |  | (21.0) | % |  | (21.0) | %
Release of foreign currency translation adjustments on liquidation of an international operation | 2.7 |  |  | — |  |  | — |
Impairments of goodwill | — |  |  | 12.3 |  |  | 14.4 |
Effect of CARES Act | — |  |  | (3.1) |  |  | — |
State income taxes, net of federal benefits | (1.6) |  |  | (1.1) |  |  | (0.4) |
Effect of foreign income taxed at different rates | (0.4) |  |  | 0.1 |  |  | 0.7 |
Valuation allowances against tax assets | 3.3 |  |  | 0.3 |  |  | 0.8 |
Non-deductible compensation | 1.1 |  |  | 0.1 |  |  | 0.3 |
Other non-deductible expenses, net | 3.2 |  |  | 0.1 |  |  | 1.5 |
Effective tax benefit rate | (12.7) | % |  | (12.3) | % |  | (3.7) | %
The significant items giving rise to the deferred tax assets and liabilities as of December 31, 2021 and 2020 are as follows (in thousands):
| 2021 |  | 2020
Deferred tax assets: |  |  |
Foreign tax credit carryforwards | $ | 20,360 |  |  | $ | 20,870 |
Net operating loss carryforwards | 46,304 |  |  | 37,838 |
Employee benefits | 5,456 |  |  | 7,353 |
Inventories | 10,192 |  |  | 9,696 |
Operating lease liabilities | 5,355 |  |  | 6,697 |
Other | 6,899 |  |  | 7,649 |
Gross deferred tax asset | 94,566 |  |  | 90,103 |
Valuation allowance | (37,643) |  |  | (35,497) |
Net deferred tax asset | 56,923 |  |  | 54,606 |
Deferred tax liabilities: |  |  |
Tax over book depreciation | (23,938) |  |  | (27,613) |
Intangible assets | (29,671) |  |  | (30,392) |
Convertible senior notes discount | — |  |  | (2,790) |
Operating lease assets | (4,355) |  |  | (5,884) |
Other | (718) |  |  | (910) |
Deferred tax liability | (58,682) |  |  | (67,589) |
Net deferred tax liability | $ | (1,759) |  |  | $ | (12,983) |
| 2021 |  | 2020
Balance sheet classification: |  |  |
Other non-current assets | $ | 1,878 |  |  | $ | 1,280 |
Deferred tax liability | (3,637) |  |  | (14,263) |
Net deferred tax liability | $ | (1,759) |  |  | $ | (12,983) |
On March 27, 2020, the CARES Act was signed into law. In accordance with the rules and provisions under the CARES Act, the Company has filed carryback claims regarding U.S. net operating losses generated in 2018 and 2019. Prior to the enactment of the CARES Act, such tax losses could only be carried forward. The Company recognized a discrete tax benefit of $16.4 million and received cash of $41.3 million related to these CARES Act carryback claims in 2020. The Company had $98.7 million of U.S. federal NOL carryforwards as of December 31, 2021, which can be carried forward indefinitely. Approximately $37.6 million of the U.S. federal NOL carryforwards are attributable to the acquired GEODynamics operations and are subject to certain limitation provisions. The Company's U.S. state NOL carryforwards as of December 31, 2021 totaled $194.2 million, of which $13.6 million are attributable to the acquired GEODynamics operations and are subject to certain limitation provisions. As of December 31, 2021, the Company had NOL carryforwards related to certain of its international operations totaling $44.6 million, of which $15.0 million can be carried forward indefinitely. As of December 31, 2021 and 2020, the Company had recorded valuation allowances of $20.6 million and $18.4 million, respectively, primarily with respect to foreign and U.S. state NOL carryforwards. As of December 31, 2021 and 2020, the Company's foreign tax credit carryforwards totaled $20.4 million and $20.9 million, respectively. These foreign tax credits will expire in varying amounts from 2022 to 2029. As of December 31, 2021 and 2020, the Company had recorded valuation allowances of $17.1 million and $17.1 million, respectively, with respect to foreign tax credit carryforwards. The Company files tax returns in the jurisdictions in which they are required. These returns are subject to examination or audit and possible adjustment as a result of assessments by taxing authorities. The Company believes that it has recorded sufficient tax liabilities and does not expect that the resolution of any examination or audit of its tax returns will have a material adverse effect on its consolidated operating results, financial condition or liquidity. Tax years subsequent to 2013 remain open to U.S. federal tax audit. Foreign subsidiary federal tax returns subsequent to 2012 are subject to audit by various foreign tax authorities. The total amount of unrecognized tax benefits as of December 31, 2021 and 2020 was nil. The Company accrues interest and penalties related to unrecognized tax benefits as a component of the Company's provision for income taxes. As of December 31, 2021 and 2020, the Company had no accrued interest expense or penalties.

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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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