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INCOME TAXES | 9 Months Ended
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Sep. 30, 2019
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Income Tax Expense The Company’s income tax expense for the three months ended September 30, 2019 (Successor), the three months ended September 30, 2018 (Predecessor), the period from May 2, 2019 through September 30, 2019 (Successor), the period from January 1, 2019 through May 1, 2019 (Predecessor) and the nine months ended September 30, 2018 (Predecessor), respectively, consisted of the following components:
(In thousands) | Successor Company |  |  | Predecessor Company
| Three Months Ended September 30, |  |  | Three Months Ended September 30,
| 2019 |  |  | 2018
Current tax expense | $ | (4,336 | ) |  |  | $ | (2,471 | )
Deferred tax expense | (12,422 | ) |  |  | (8,402 | )
Income tax expense | $ | (16,758 | ) |  |  | $ | (10,873 | )
(In thousands) | Successor Company |  |  | Predecessor Company
| Period from May 2, 2019 through September 30, |  |  | Period from January 1, 2019 through May 1, |  | Nine Months Ended September 30,
| 2019 |  |  | 2019 |  | 2018
Current tax benefit (expense) | $ | (7,283 | ) |  |  | $ | 76,744 |  |  | $ | (9,041 | )
Deferred tax benefit (expense) | (25,478 | ) |  |  | (115,839 | ) |  | 18,869 |
Income tax benefit (expense) | $ | (32,761 | ) |  |  | $ | (39,095 | ) |  | $ | 9,828 |
The effective tax rate for the Successor Company for the three months ended September 30, 2019 and the period from May 2, 2019 through September 30, 2019 was 57.5% and 39.0%, respectively. The effective tax rates for both periods were primarily impacted by tax expense from non-deductible expenses and the provision for state income taxes. The effective tax rate for continuing operations of the Predecessor Company for the period from January 1, 2019 through May 1, 2019 (Predecessor) was 0.4%. The income tax expense for the period from January 1, 2019 through May 1, 2019 (Predecessor) primarily consists of the income tax impacts from reorganization and fresh start adjustments, including adjustments to our valuation allowance. The Company recorded income tax benefits of $102.9 million for reorganization adjustments in the Predecessor period, primarily consisting of: (1) tax expense for the reduction in federal and state net operating loss (“NOL”) carryforwards from the cancellation of debt income ("CODI") realized upon emergence; (2) tax benefit for the reduction in deferred tax liabilities attributed primarily to long-term debt that was discharged upon emergence; (3) tax benefit for the effective settlement of liabilities for unrecognized tax benefits that were discharged upon emergence; and (4) tax benefit for the reduction in valuation allowance resulting from the adjustments described above. The Company recorded income tax expense of $185.4 million for fresh start adjustments in the Predecessor period, consisting of $529.1 million tax expense for the increase in deferred tax liabilities resulting from fresh start accounting adjustments, which was partially offset by $343.7 million tax benefit for the reduction in the valuation allowance on our deferred tax assets. The effective tax rate for the three and nine months ended September 30, 2018 (Predecessor) was 8.2% and 4.3%, respectively. The 2018 effective tax rates were primarily impacted by the valuation allowance recorded against deferred tax assets resulting from current period interest expense limitation carryforward in U.S. federal and certain state jurisdictions due to uncertainty regarding our ability to realize those assets in future periods. As a result of the Plan of Reorganization, the Company expects the majority of its federal NOL carryforwards and certain state NOL carryforwards to be reduced or eliminated as a result of the CODI realized from the bankruptcy emergence. Pursuant to the attribute reduction and ordering rules set forth in the Internal Revenue Code of 1986, as amended (the “Code”), the reduction in the Company’s tax attributes for excludible CODI does not occur until the last day of the Company’s tax year, December 31, 2019. Accordingly, the tax adjustments recorded in the Predecessor period represent our best estimate using all available information at September 30, 2019. Additionally, the Company recognized a capital loss for tax purposes as a result of the series of transactions to effect the Plan of Reorganization. This capital loss may be carried forward to offset capital gains recognized by the Company in the next five years, subject to annual limitations under Section 382 of the Code. The deferred tax asset associated with the capital loss carryforward is offset by a valuation allowance due to significant uncertainty regarding the Company’s ability to utilize the carryforward prior to its expiration. The final tax impacts of the bankruptcy emergence, as well as the Plan of Reorganization’s overall effect on the Company’s tax attributes and tax basis in assets will be refined based on the Company’s final December 31, 2019 financial position as required under the Code. The final tax impacts on the Company's tax attributes could change significantly from the current estimates.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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