Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Summary of Income (Loss) Before Income Taxes Income (loss) before income taxes is summarized below:
 
Year Ended December 31,
Dollars in thousands
2018
 
2017
 
2016
United States
$
(145,954
)
 
$
(89,233
)
 
$
(131,106
)
Foreign
(11,947
)
 
(20,428
)
 
(25,538
)
Income (loss) before income taxes

$
(157,901
)
 
$
(109,661
)
 
$
(156,644
)
Summary of Income Tax Expense (Benefit) Income tax expense (benefit) is summarized as follows:
 
Year Ended December 31,
Dollars in thousands
2018
 
2017
 
2016
Current tax expense
 
 
 
 
 
Federal
$
(14
)
 
$
80

 
$
(1,921
)
State
229

 
54

 
(9
)
Foreign
8,010

 
9,130

 
7,038

Total current tax expense
$
8,225

 
$
9,264

 
$
5,108

 
 
 
 
 
 
Deferred tax expense (benefit)
 
 
 
 
 
Federal
$

 
$
167

 
$
64,066

State

 

 
(47
)
Foreign
(429
)
 
(391
)
 
5,043

Total deferred tax expense (benefit)
$
(429
)
 
$
(224
)
 
$
69,062

 
 
 
 
 
 
Total income tax expense (benefit)
$
7,796

 
$
9,040

 
$
74,170

Schedule of Income Tax Reconciliation from Federal Income Tax Statutory Rate Total income tax expense differs from the amount computed by multiplying income before income taxes by the U.S. federal income tax statutory rate. The reasons for this difference are as follows:
 
Year Ended December 31,
 
2018
 
2017
 
2016
Dollars in thousands
Amount
 
% of Pre-Tax
Income
 
Amount
 
% of Pre-Tax
Income
 
Amount
 
% of Pre-Tax
Income
Computed expected tax expense
$
(33,160
)
 
21.0
 %
 
$
(38,381
)
 
35.0
 %
 
$
(54,825
)
 
35.0
 %
Foreign taxes
7,321

 
(4.6
)%
 
13,084

 
(11.9
)%
 
12,688

 
(8.1
)%
Tax effect different from statutory rates
(68
)
 
 %
 
(2,048
)
 
1.9
 %
 
(3,629
)
 
2.3
 %
State taxes, net of federal benefit
(2,552
)
 
1.6
 %
 
35

 
 %
 
(849
)
 
0.5
 %
Foreign tax credits

 
 %
 
3

 
 %
 
20

 
 %
Change in valuation allowance (excluding impact of Tax Act)
28,353

 
(18.0
)%
 
30,704

 
(28.0
)%
 
117,707

 
(75.1
)%
Uncertain tax positions
(221
)
 
0.1
 %
 
194

 
(0.2
)%
 
(726
)
 
0.5
 %
Permanent differences
8,008

 
(5.1
)%
 
2,970

 
(2.7
)%
 
1,442

 
(0.9
)%
Prior year return to provision adjustments
50

 
 %
 
2,442

 
(2.3
)%
 
2,078

 
(1.3
)%
Other
65

 
0.1
 %
 
37

 
 %
 
264

 
(0.2
)%
Impact of Tax Act
 
 
 
 
 
 
 
 
 
 
 
Effect of tax rate reduction on deferred tax

 
 %
 
45,329

 
(41.3
)%
 

 
 %
Effect of tax rate on deferred tax valuation

 
 %
 
(45,329
)
 
41.3
 %
 

 
 %
Income tax expense (benefit)
$
7,796

 
(4.9
)%
 
$
9,040

 
(8.2
)%
 
$
74,170

 
(47.3
)%
Components of Deferred Tax Assets and Liabilities The components of the Company’s deferred tax assets and liabilities as of December 31, 2018 and 2017 are shown below:
 
December 31,
Dollars in thousands
2018
 
2017
Deferred tax assets
 
 
 
Deferred tax assets:
 
 
 
Federal net operating loss carryforwards
$
109,002

 
$
95,867

State net operating loss carryforwards
13,168

 
11,089

Excess interest
6,230

 

Other state deferred tax asset, net
1,201

 
626

Foreign tax credits
46,913

 
46,913

FIN 48
887

 
953

Foreign tax
40,190

 
36,699

Accruals not currently deductible for tax purposes
3,119

 
2,926

Deferred compensation
816

 
1,204

Other
1,297

 
74

Total deferred tax assets
222,823

 
196,351

Valuation allowance
(186,267
)
 
(157,914
)
Net deferred tax assets, net of valuation allowance
$
36,556

 
$
38,437

 
 
 
 
Deferred tax liabilities:
 
 
 
Deferred tax liabilities:
 
 
 
Property, plant and equipment
$
(28,440
)
 
$
(30,648
)
Foreign tax local
(510
)
 
(78
)
Other state deferred tax liability, net
(5,096
)
 
(5,174
)
Intangibles
(877
)
 
(1,331
)
Total deferred tax liabilities
(34,923
)
 
(37,231
)
Net deferred tax asset
$
1,633

 
$
1,206

Reconciliation of Unrecognized Tax Benefits A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Dollars in thousands
 
Balance at January 1, 2018
$
(5,395
)
Reductions based on tax positions taken during a prior period
190

Additions based on tax positions taken during the current period
(523
)
Balance at December 31, 2018
$
(5,728
)
Open Tax Years by Major Tax Jurisdiction The following describes the open tax years, by major tax jurisdiction, as of December 31, 2018:
Kazakhstan
2008-present
Mexico
2014-present
Russia
2014-present
United States — Federal
2009-present
United Kingdom
2015-present