Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.20.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2019
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,
 
2019
 
2018
United States
$
(166,326
)
 
$
(239,989
)
Foreign
22,409

 
6,458

Loss before income taxes
$
(143,917
)
 
$
(233,531
)
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,
 
2019
 
2018
Current provision (benefit):
 
 
 
Federal
$
(2,046
)
 
$
289

State
(174
)
 
211

Foreign
15,679

 
10,473

Total current provision
13,459

 
10,973

Deferred benefit:
 
 
 
Federal
9

 
(6,924
)
State
10

 
(331
)
Foreign
(3,952
)
 
(650
)
Total deferred benefit
(3,933
)
 
(7,905
)
Total income tax provision (benefit)
$
9,526

 
$
3,068

Schedule of Effective Income Tax Rate Reconciliation
Income taxes differ from the amounts computed by applying the federal income tax rate of 21% for 2019 and 2018. A reconciliation of this difference is as follows (in thousands):
 
Year Ended December 31,
 
2019
 
2018
Income tax benefit at federal statutory rate
$
(30,223
)
 
$
(49,042
)
State income tax, net of federal benefit
(164
)
 
(185
)
Permanent items
766

 
633

Change in fair value of financial instruments
(224
)
 
(4
)
Forfeited foreign net operating losses
42,541

 
—

Stock-based compensation
1,551

 
2,700

Tax credits
(124
)
 
(106
)
Other
535

 
(12,636
)
Uncertain tax positions
396

 
107

Withholding taxes
6,456

 
9,137

Rate differential
(350
)
 
6,657

Change in enacted tax rate
(132
)
 
54

Change in valuation allowance
(11,502
)
 
69,508

Income tax provision (benefit)
$
9,526

 
$
3,068

Schedule of Deferred Tax Assets and Liabilities
Significant components of the deferred income taxes are as follows (in thousands):
 
 December 31,
 
2019
 
2018
Deferred tax assets:
 
 
 
Goodwill
$
5,134

 
$
6,734

Allowances and reserves
2,016

 
1,469

Accrued liabilities
2,063

 
3,908

Inventories
2,120

 
1,839

Stock-based compensation
3,596

 
4,363

Interest expense carryover
38,615

 
23,877

Tax credits
2,860

 
2,225

Net operating losses
116,290

 
144,010

Right of use liability
13,519

 
—

Other
1,074

 
448

Total deferred tax assets
187,287

 
188,873

Less: valuation allowance
(152,987
)
 
(161,511
)
Net deferred tax assets
$
34,300

 
$
27,362

 
 
 
 
Deferred tax liabilities:
 
 
 
Property, plant and equipment
$
(9,387
)
 
$
(8,737
)
Right of use assets
(10,733
)
 
—

Intangible assets
(1,315
)
 
(7,149
)
Investments in affiliates
(15,675
)
 
(17,253
)
Debt costs
(1,589
)
 
(2,550
)
Total deferred tax liabilities
(38,699
)
 
(35,689
)
Net deferred tax liabilities
$
(4,399
)
 
$
(8,327
)
Schedule of Unrecognized Tax Benefits Roll Forward
The following table summarizes the changes to unrecognized tax benefits for the years ended December 31, 2019 and 2018 (in thousands):
 
2019
 
2018
Balance at beginning of year
$
7,942

 
$
8,728

Reversal of prior tax positions
(86
)
 
(786
)
Settlements
(196
)
 
—

Balance at end of year
$
7,660

 
$
7,942

Summary of Valuation Allowance
The following table summarizes the changes in the valuation allowance balance for the years ended December 31, 2019 and 2018 (in thousands):
 
Amount
Balance at December 31, 2017
$
85,393

Increase in valuation allowance
76,118

Balance at December 31, 2018
161,511

Decrease in valuation allowance
(8,524
)
Balance at December 31, 2019
$
152,987