Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2018 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Income before Income Tax, Domestic and Foreign |
United States and foreign income (loss) from operations before income taxes was as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2018 |
|
2017 |
|
2016 |
United States |
$ |
(239,989 |
) |
|
$ |
(336,278 |
) |
|
$ |
(119,549 |
) |
Foreign |
6,458 |
|
|
(25,723 |
) |
|
(38,294 |
) |
Loss before income taxes |
$ |
(233,531 |
) |
|
$ |
(362,001 |
) |
|
$ |
(157,843 |
) |
|
| Schedule of Components of Income Tax Expense (Benefit) |
The income tax provision based on the income (loss) from operations was as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2018 |
|
2017 |
|
2016 |
Current provision (benefit): |
|
|
|
|
|
Federal |
$ |
289 |
|
|
$ |
(323 |
) |
|
$ |
47 |
|
State |
211 |
|
|
(136 |
) |
|
227 |
|
Foreign |
10,473 |
|
|
12,485 |
|
|
15,184 |
|
Total current provision |
$ |
10,973 |
|
|
$ |
12,026 |
|
|
$ |
15,458 |
|
Deferred benefit: |
|
|
|
|
|
Federal |
$ |
(6,924 |
) |
|
$ |
(9,173 |
) |
|
$ |
(53,395 |
) |
State |
(331 |
) |
|
(60 |
) |
|
(2,070 |
) |
Foreign |
(650 |
) |
|
(7,680 |
) |
|
(4,904 |
) |
Total deferred benefit |
(7,905 |
) |
|
(16,913 |
) |
|
(60,369 |
) |
Total income tax provision (benefit) |
$ |
3,068 |
|
|
$ |
(4,887 |
) |
|
$ |
(44,911 |
) |
|
| Schedule of Effective Income Tax Rate Reconciliation |
Income taxes differ from the amounts computed by applying the federal income tax rate of 21% for 2018 and 35% for 2017 and 2016. A reconciliation of this difference is as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2018 |
|
2017 |
|
2016 |
Income tax benefit at federal statutory rate |
$ |
(49,042 |
) |
|
$ |
(126,700 |
) |
|
$ |
(55,245 |
) |
State income tax, net of federal benefit |
(185 |
) |
|
(272 |
) |
|
(1,898 |
) |
Permanent items |
633 |
|
|
3,623 |
|
|
1,781 |
|
Loss on distribution in kind |
(23,755 |
) |
|
— |
|
|
— |
|
Change in fair value of financial instruments |
(4 |
) |
|
(1,102 |
) |
|
(8,836 |
) |
Goodwill impairment |
— |
|
|
55,016 |
|
|
12,321 |
|
Sound-recording settlements |
— |
|
|
— |
|
|
8,556 |
|
Stock-based compensation |
2,700 |
|
|
2,660 |
|
|
229 |
|
Tax credits |
(106 |
) |
|
(116 |
) |
|
(590 |
) |
Other |
(12,636 |
) |
|
1,608 |
|
|
2,977 |
|
Uncertain tax positions |
107 |
|
|
(420 |
) |
|
3,858 |
|
Withholding taxes |
9,137 |
|
|
5,090 |
|
|
4,732 |
|
Rate differential |
6,657 |
|
|
(12,187 |
) |
|
(2,158 |
) |
Change in enacted tax rate |
54 |
|
|
28,431 |
|
|
173 |
|
Change in valuation allowance |
69,508 |
|
|
39,482 |
|
|
(10,811 |
) |
Income tax provision (benefit) |
$ |
3,068 |
|
|
$ |
(4,887 |
) |
|
$ |
(44,911 |
) |
|
| Schedule of Deferred Tax Assets and Liabilities |
Significant components of the deferred income taxes are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
December 31, |
|
2018 |
|
2017 |
Deferred tax assets: |
|
|
|
Goodwill |
$ |
6,734 |
|
|
$ |
15,272 |
|
Allowances and reserves |
1,469 |
|
|
3,973 |
|
Accrued liabilities |
3,908 |
|
|
5,135 |
|
Inventories |
1,839 |
|
|
1,307 |
|
Stock-based compensation |
4,363 |
|
|
5,043 |
|
Interest expense carryover |
23,877 |
|
|
— |
|
Tax credits |
2,225 |
|
|
3,393 |
|
Net operating losses |
144,010 |
|
|
98,249 |
|
Other |
448 |
|
|
1,893 |
|
Total deferred tax assets |
188,873 |
|
|
134,265 |
|
Less: valuation allowance |
(161,511 |
) |
|
(85,393 |
) |
Net deferred tax assets |
$ |
27,362 |
|
|
$ |
48,872 |
|
|
|
|
|
Deferred tax liabilities: |
|
|
|
Property, plant and equipment |
$ |
(8,737 |
) |
|
$ |
(11,345 |
) |
Intangible assets |
(7,149 |
) |
|
(21,170 |
) |
Investments in affiliates |
(17,253 |
) |
|
(28,530 |
) |
Debt costs |
(2,550 |
) |
|
(2,696 |
) |
Other |
— |
|
|
(1,378 |
) |
Total deferred tax liabilities |
(35,689 |
) |
|
(65,119 |
) |
Net deferred tax liabilities |
$ |
(8,327 |
) |
|
$ |
(16,247 |
) |
|
| Schedule of Unrecognized Tax Benefits Roll Forward |
The following table summarizes the changes to unrecognized tax benefits for the years ended December 31, 2018, 2017 and 2016 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
|
2017 |
|
2016 |
Balance at beginning of year |
$ |
8,728 |
|
|
$ |
11,048 |
|
|
$ |
4,637 |
|
Additions from business combinations |
— |
|
|
— |
|
|
3,492 |
|
Increase to prior year positions |
— |
|
|
— |
|
|
(34 |
) |
Reversal of prior tax positions |
(786 |
) |
|
(3,045 |
) |
|
(147 |
) |
Additions based on tax positions related to current year |
— |
|
|
725 |
|
|
3,100 |
|
Balance at end of year |
$ |
7,942 |
|
|
$ |
8,728 |
|
|
$ |
11,048 |
|
|
| Summary of Valuation Allowance |
The following table summarizes the changes in the valuation allowance balance for the years ended December 31, 2018, 2017 and 2016 (in thousands):
|
|
|
|
|
|
Amount |
Balance at December 31, 2015 |
$ |
53,199 |
|
Decrease in valuation allowance |
(9,930 |
) |
Balance at December 31, 2016 |
43,269 |
|
Increase in valuation allowance |
42,124 |
|
Balance at December 31, 2017 |
85,393 |
|
Increase in valuation allowance |
$ |
76,118 |
|
Balance at December 31, 2018 |
$ |
161,511 |
|
|