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Income Taxes | 12 Months Ended
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Dec. 31, 2017
Income Taxes |
Income Taxes | 12. Income Taxes The Company’s components of loss before income taxes (in thousands) are as follows:
|  | Year Ended December 31, |
|  | 2017 |  | 2016 |  | 2015 |
Domestic |  | $ | (31,714) |  | $ | (41,162) |  | $ | (36,230) |
Foreign |  |  | (4,866) |  |  | (5,079) |  |  | (3,804) |
Loss before income taxes |  | $ | (36,580) |  | $ | (46,241) |  | $ | (40,034) |
The Company’s components of income tax benefit (in thousands) are as follows:
|  | Year Ended December 31, |
|  | 2017 |  | 2016 |  | 2015 |
Current federal benefit |  | $ | 40 |  | $ | 215 |  | $ | 280 |
Current state benefit (expense) |  |  | 3,545 |  |  | 181 |  |  | (571) |
Current foreign benefit |  |  | 2,492 |  |  | — |  |  | — |
Deferred federal (expense) benefit |  |  | (51) |  |  | 5,795 |  |  | 12,499 |
Deferred state benefit (expense) |  |  | 697 |  |  | (847) |  |  | 860 |
Deferred foreign (expense) benefit |  |  | (1,409) |  |  | 1,105 |  |  | 687 |
Income tax benefit |  | $ | 5,314 |  | $ | 6,449 |  | $ | 13,755 |
The 2017 Tax Cuts and Jobs Act was enacted on December 22, 2017 resulting in significant changes to the Internal Revenue Code. This reform changed the U.S. Statutory tax rate from 35% to 21% for tax years beginning after December 31, 2017. The Company is required to recognize the effect of the tax law changes in the period of enactment, such as remeasuring the domestic deferred tax assets and liabilities as well as reassessing the net realizability of deferred tax assets and liabilities. Due to the Company’s current loss position and domestic valuation allowances, this tax reform will not have a material impact on the consolidated financials. In December 2017, the Securities and Exchange Commission staff issued Accounting Bulleting No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), which allows companies to record provisional amounts during a measurement period not to extend beyond one year from the enactment date. Due to the Tax Cuts and Jobs act being enacted in late fourth quarter of 2017 and subsequent guidance expected throughout the next 12 months, the accounting of deferred tax re-measurement is considered incomplete due to forthcoming guidance and the ongoing analysis of final year-end data and tax positions. Analysis is expected to be completed within the measurement period in accordance with SAB 118. Subsequent adjustments are not expected to have a material impact on the consolidated financials due to the domestic loss position and the associated valuation allowances on the domestic deferred tax assets. The income tax provision differs from the amount computed by applying the statutory federal income tax rate to losses before income taxes as follows (in thousands):
|  | Year Ended December 31, |
|  | 2017 |  | 2016 |  | 2015 |
Tax benefit computed at statutory rate of 35% |  | $ | 12,803 |  | $ | 16,184 |  | $ | 14,012 |
Change in valuation allowance |  |  | (4,564) |  |  | (10,200) |  |  | (502) |
State income tax benefit (expense), net of federal tax |  |  | 2,757 |  |  | (433) |  |  | 423 |
Foreign losses |  |  | 1,593 |  |  | 985 |  |  | 954 |
Transaction costs |  |  | — |  |  | — |  |  | (445) |
Tax reform impact to deferred tax balances (1) |  |  | (7,590) |  |  | — |  |  | — |
Other |  |  | 315 |  |  | (87) |  |  | (687) |
Income tax benefit |  | $ | 5,314 |  | $ | 6,449 |  | $ | 13,755 |
| (1) |  | Due to the Tax Cuts and Jobs Act enacted on December 22, 2017, the Company’s domestic deferred tax assets and liabilities were remeasured from 35% to 21% as of December 31, 2017. The change in tax rate resulted in a decrease to the gross domestic deferred tax asset which is offset by a corresponding decrease to the valuation allowance.
The principal components of the Company’s net deferred tax (liabilities) assets are as follows (in thousands):
|  | December 31, |
|  | 2017 |  | 2016 |
Deferred tax assets: |  |  |  |  |  |  |
Federal tax net operating loss ("NOL") carryforward |  | $ | 21,014 |  | $ | 32,746 |
Foreign tax NOL carryforward |  |  | 4,410 |  |  | 4,486 |
Deferred revenue |  |  | 626 |  |  | 462 |
Restricted stock and restricted stock unit awards |  |  | 192 |  |  | 318 |
Workers’ compensation |  |  | 64 |  |  | 74 |
State tax NOL carryforward |  |  | 1,529 |  |  | 1,223 |
Self-insurance |  |  | 128 |  |  | 219 |
Canadian start-up costs |  |  | 156 |  |  | 275 |
Alternative Minimum Tax ("AMT") credit carryforward |  |  | 315 |  |  | 315 |
Foreign tax credit |  |  | — |  |  | 1,874 |
Foreign deferred taxes |  |  | 874 |  |  | (535) |
Other comprehensive income |  |  | 242 |  |  | 786 |
Uncertain tax positions |  |  | — |  |  | 512 |
Other |  |  | 80 |  |  | 271 |
Gross deferred tax assets |  |  | 29,630 |  |  | 43,026 |
Less valuation allowances |  |  | (17,366) |  |  | (13,602) |
Net deferred tax assets |  |  | 12,264 |  |  | 29,424 |
Deferred tax liabilities: |  |  |  |  |  |  |
Property and equipment |  |  | (12,914) |  |  | (29,035) |
Net deferred tax (liabilities) assets |  | $ | (650) |  | $ | 389 |
Foreign deferred tax (liabilities) assets |  | $ | (874) |  | $ | 535 |
Domestic deferred tax assets (liabilities) |  |  | 224 |  |  | (146) |
Net deferred tax (liabilities) assets |  | $ | (650) |  | $ | 389 |
At December 31, 2017, the Company had a NOL for U.S. federal income tax purposes of approximately $100,065,000. This NOL will begin to expire in 2027. The Company will carry forward the tax benefits related to federal NOL of approximately $21,014,000. The Company also had state NOL’s that will affect state taxes of approximately $1,935,000 at December 31, 2017. State NOL’s began to expire in 2015. The Company also had a Canadian NOL of $16,963,000 that will begin to expire in 2037. In evaluating the possible sources of taxable income during 2017, the Company determined it is more likely than not that the remaining deferred tax assets will not be realizable. As a result, the Company recorded full valuation allowances against its federal and state deferred tax assets with the exception of its trademark intangible and the AMT credit which will be refundable within the next five years. A partial valuation allowance was recorded against foreign deferred tax assets excluding losses which are expected to be absorbed by future temporary differences. A summary of the Company’s gross uncertain tax positions at December 31, 2017 and 2016 as well as activity for the years then ended are as follows (in thousands):
|  | December 31, |
|  | 2017 |  | 2016 |
Balance at beginning of year |  | $ | 1,489 |  | $ | 1,684 |
Decrease in prior year tax positions |  |  | — |  |  | (14) |
Increase in current year tax positions |  |  | — |  |  | 157 |
Liability statute expiration |  |  | (1,489) |  |  | (338) |
Balance at end of year |  | $ | — |  | $ | 1,489 |
The Company’s policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. Due to the resolution of amended federal, state and foreign tax returns and the expiration of various statutes of limitations, the full uncertain tax positions balance at December 31, 2016 reversed in the twelve months ended December 31, 2017.

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