XML 50 R16.htm IDEA: XBRL DOCUMENT
v3.19.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2018
Income Taxes [Abstract] |
Income Taxes | NOTE 9 - INCOME TAXES ﻿ On December 22, 2017, the U.S. Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law. The Tax Act significantly changed the U.S. corporate income tax law by lowering the statutory corporate tax rate from 35% to 21%, imposed a one-time mandatory repatriation tax on deferred earnings of foreign subsidiaries, and changed how foreign earnings are subject to U.S. tax. As the result of the Tax Act and under the guidance of the U.S. Securities and Exchange Commission Staff Accounting Bulletin No. 118, we recorded a provisional tax expense of approximately $13.0 million for the impact of the Tax Act in the fourth quarter of 2017. During the fourth quarter of 2018, upon finalizing the analysis of the impact from the Tax Act, w e recorded a tax benefit of $2.3 million as an adjustment to the provisional estimate, for a net tax impact of $10.7 million. The $2.3 million is comprised of an adjustment of $1.2 million to the impact of the one-time mandatory repatriation tax on previously undistributed earnings of our foreign subsidiaries and $1.1 million from the re-measurement of federal net deferred tax liabilities resulting from the reduction in the U.S. statutory corporate tax rate. ﻿ Income before income taxes includes the following: ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |
﻿(Dollars in thousands) |  | 2018 |  | 2017 |  | 2016
﻿United States |  | $ | (3,039) |  | $ | (5,143) |  | $ | (1,886)
﻿Foreign |  |  | 19,983 |  |  | 38,820 |  |  | 14,717
﻿Income before income taxes and equity earnings of unconsolidated joint ventures |  | $ | 16,944 |  | $ | 33,677 |  | $ | 12,831
﻿Equity earnings of unconsolidated joint ventures: |  |  |  |  |  |  |  |  |
﻿United States |  |  | — |  |  | — |  |  | —
﻿Foreign |  |  | 974 |  |  | 815 |  |  | 999
﻿Income before income taxes |  | $ | 17,918 |  | $ | 34,492 |  | $ | 13,830
﻿ Significant components of the provision for income taxes are as follows: ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |
﻿(Dollars in thousands) |  | 2018 |  | 2017 |  | 2016
﻿Current income tax expense (benefit) |  |  |  |  |  |  |  |  |
﻿Federal (1) |  | $ | 297 |  | $ | (7,846) |  | $ | 2,982
﻿State |  |  | 382 |  |  | 775 |  |  | 675
﻿Foreign |  |  | 6,158 |  |  | 7,079 |  |  | 4,685
﻿Total |  |  | 6,837 |  |  | 8 |  |  | 8,342
﻿Deferred income tax expense (benefit) |  |  |  |  |  |  |  |  |
﻿Federal |  |  | (3,869) |  |  | 3,654 |  |  | (4,197)
﻿State |  |  | 22 |  |  | (2,351) |  |  | (422)
﻿Foreign |  |  | 430 |  |  | 2,069 |  |  | 415
﻿Total |  |  | (3,417) |  |  | 3,372 |  |  | (4,204)
﻿Total income tax expense |  | $ | 3,420 |  | $ | 3,380 |  | $ | 4,138
﻿
| (1) |  | The 2017 amount includes a federal tax benefit of $7,785 related to changes in unrecognized tax benefits and related interest.
﻿ Deferred income taxes reflect the “temporary differences” between the financial statement carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, adjusted by the relevant tax rate. The components of the deferred tax assets and liabilities are as follows: ﻿
﻿ |  |  |  |  |  |
﻿ |  |  |  |  |  |
﻿ |  | December 31,
﻿(Dollars in thousands) |  | 2018 |  | 2017
﻿Deferred Tax Assets: |  |  |  |  |  |
﻿Net operating loss carry-forwards |  | $ | 8,199 |  | $ | 8,579
﻿Alternative minimum tax credit carry-forwards |  |  | 1,117 |  |  | 939
﻿Foreign Tax Credit |  |  | 2,715 |  |  | —
﻿Compensation and employee benefits |  |  | 3,906 |  |  | 4,146
﻿Deferred revenue |  |  | 2,266 |  |  | 2,500
﻿Accrued expenses |  |  | 6,916 |  |  | 6,017
﻿Accrued taxes |  |  | 2,086 |  |  | 2,440
﻿Land and property |  |  | 7,373 |  |  | 8,457
﻿Other |  |  | — |  |  | 106
﻿Total Deferred Tax Assets |  |  | 34,578 |  |  | 33,184
﻿Deferred Tax Liabilities: |  |  |  |  |  |
﻿Intangibles |  |  | (1,256) |  |  | (1,087)
﻿Cancellation of indebtedness |  |  | — |  |  | (481)
﻿Other |  |  | (367) |  |  | —
﻿Total Deferred Tax Liabilities |  |  | (1,623) |  |  | (1,568)
﻿Net deferred tax assets before valuation allowance |  |  | 32,955 |  |  | 31,616
﻿Valuation allowance |  |  | (6,720) |  |  | (6,870)
﻿Net deferred tax asset |  | $ | 26,235 |  | $ | 24,746
﻿ We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we considered all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial performance. We believe the evidence connected with New Zealand loss carryforwards and certain US state loss carryforwards do not support a conclusion of being more-likely-than-not to be realized. Accordingly as of December 31, 2018, we recorded a valuation allowance of $6.7 million. ﻿ As of December 31, 2018, we had the following carry-forwards:
| · |  | approximately $2.2 million in U.S. alternative minimum tax credit carry-forwards with no expiration date and $1.1 million is refundable beginning tax year 2018;
| · |  | approximately $11.7 million in Federal loss carryforwards expiring in 2037;
| · |  | approximately $4.9 million in California loss carryforwards expiring in 2037;
| · |  | approximately $1.8 million in Hawaii loss carryforwards expiring in 2037;
| · |  | approximately $43.3 million in New York state loss carryforwards expiring in 2034;
| · |  | approximately $43.3 million in New York city loss carryforwards expiring in 2034; and,
| · |  | approximately $8.1 million in available New Zealand loss carry-forwards with no expiration date.
﻿ We expect no substantial limitations on the future use of U.S. or foreign loss carry-forwards. ﻿ The provision for income taxes is different from amounts computed by applying U.S. statutory rates to consolidated losses before taxes. The significant reason for these differences is as follows: ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |
﻿(Dollars in thousands) |  | 2018 |  | 2017 |  | 2016
﻿Expected tax provision |  | $ | 3,763 |  | $ | 12,073 |  | $ | 4,704
﻿Increase (decrease) in tax expense resulting from: |  |  |  |  |  |  |  |  |
﻿Foreign tax rate differential |  |  | 1,874 |  |  | (2,160) |  |  | (668)
﻿Change in valuation allowance |  |  | (451) |  |  | (905) |  |  | 129
﻿State and local tax provision |  |  | 405 |  |  | (541) |  |  | 307
﻿Prior year adjustments |  |  | 41 |  |  | (79) |  |  | (954)
﻿Unrecognized tax benefits |  |  | 438 |  |  | (8,498) |  |  | 262
﻿Advance to Overseas Subsidiary |  |  | — |  |  | (7,620) |  |  | —
﻿Impact of Tax Act |  |  | (2,265) |  |  | 13,018 |  |  | —
﻿Non-taxable insurance proceeds |  |  | — |  |  | (1,871) |  |  | —
﻿GILTI |  |  | 193 |  |  | — |  |  | —
﻿Foreign Tax Credit |  |  | (846) |  |  | — |  |  | —
﻿Other |  |  | 268 |  |  | (37) |  |  | 358
﻿Total income tax expense |  | $ | 3,420 |  | $ | 3,380 |  | $ | 4,138
﻿ The undistributed earnings of the Company's Australian subsidiaries are considered to be indefinitely reinvested. Accordingly, no provision for state income taxes has been provided on such undistributed earnings. Due to the 2017 enactment of the Tax Act, future repatriations of foreign earnings will generally not be subject to U.S. federal taxation but may incur minimal state taxes. ﻿ The following table is a summary of the activity related to unrecognized tax benefits, excluding interest and penalties, for the years ended December 31, 2018, 2017, and 2016: ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |
﻿(Dollars in thousands) |  | 2018 |  | 2017 |  | 2016
﻿Unrecognized tax benefits – gross beginning balance |  | $ | 3,123 |  | $ | 11,480 |  | $ | 11,022
﻿Gross increase (decrease) - prior year tax positions |  |  | 2,304 |  |  | (7,905) |  |  | 133
﻿Gross increase (decrease) - current period tax positions |  |  | — |  |  | — |  |  | 325
﻿Settlements |  |  | (718) |  |  | (452) |  |  | —
﻿Unrecognized tax benefits – gross ending balance |  | $ | 4,709 |  | $ | 3,123 |  | $ | 11,480
﻿ As of December 31, 2018 and 2017, if recognized, $4.7 million and $3.1 million respectively, of the unrecognized tax benefits would impact the Company’s effective tax rate. ﻿ We record interest and penalties related to income tax matters as part of income tax expense. During the year ended December 31, 2017, we recorded an increase to tax interest of $203,000, resulting in a total $9.1 million in interest. During the year ended December 31, 2018, we recorded an increase to tax interest of $430,000, resulting in a total $9.5 million in interest. ﻿ It is difficult to predict the timing and resolution of uncertain tax positions. Based upon the Company’s assessment of many factors, including past experience and judgments about future events, it is probable that within the next 12 months the reserve for uncertain tax positions will increase within a range of $500,000 to $1.5 million. The reasons for such change include but are not limited to tax positions expected to be taken during 2018, revaluation of current uncertain tax positions, and expiring statutes of limitations. ﻿ Generally, changes to our federal and most state income tax returns for the calendar year 2014 and earlier are barred by statutes of limitations. Certain U.S. subsidiaries filed federal and state tax returns for periods before these entities became consolidated with us. These subsidiaries were examined by IRS for the years 1996 to 1999 and significant tax deficiencies were assessed for those years. Those deficiencies have been settled, as discussed in “Tax Audit/Litigation,” Note 12 – Commitments and Contingencies. ﻿ As of December 31, 2018, federal income tax returns for 2015 and after are open for examination, with the 2015 return being currently under examination. California worldwide unitary income tax returns for 2014 and after are open for examination, but an examination of 2013 through 2015 has been completed. Income tax returns filed in Puerto Rico for 2014 and after are open for examination. Australia income tax returns for calendar years 2013 and after are open for examination. A review of returns for 2014 and 2015 has been completed with final terms under negotiation. Generally, New Zealand returns for 2015 and after remain open for examination. An examination of New Zealand income tax returns for calendar year 2009 and after have been completed with one issue remaining unsettled, for which a litigation claim has been filed.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration