Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2019 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Summary of Income (Loss) Before Income Taxes |
Income (loss) before income taxes is summarized below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor |
|
|
Predecessor |
|
Nine Months Ended December 31, |
|
|
Three Months Ended March 31, |
|
Year Ended December 31, |
Dollars in thousands |
2019 |
|
|
2019 |
|
2018 |
United States |
$ |
(3,342 |
) |
|
|
$ |
16,785 |
|
|
$ |
(145,954 |
) |
Foreign |
20,946 |
|
|
|
(106,377 |
) |
|
(11,947 |
) |
Income (loss) before income taxes |
$ |
17,604 |
|
|
|
$ |
(89,592 |
) |
|
$ |
(157,901 |
) |
|
| Summary of Income Tax Expense (Benefit) |
Income tax expense (benefit) is summarized as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor |
|
|
Predecessor |
|
Nine Months Ended December 31, |
|
|
Three Months Ended March 31, |
|
Year Ended December 31, |
Dollars in thousands |
2019 |
|
|
2019 |
|
2018 |
Federal |
$ |
(2,503 |
) |
|
|
$ |
(364 |
) |
|
$ |
(14 |
) |
State |
136 |
|
|
|
50 |
|
|
229 |
|
Foreign |
7,557 |
|
|
|
2,655 |
|
|
8,010 |
|
Total current tax expense |
5,190 |
|
|
|
2,341 |
|
|
8,225 |
|
Federal |
5,163 |
|
|
|
— |
|
|
— |
|
State |
635 |
|
|
|
— |
|
|
— |
|
Foreign |
107 |
|
|
|
(1,685 |
) |
|
(429 |
) |
Total deferred tax expense (benefit) |
5,905 |
|
|
|
(1,685 |
) |
|
(429 |
) |
Total income tax expense |
$ |
11,095 |
|
|
|
$ |
656 |
|
|
$ |
7,796 |
|
|
|
|
|
|
|
|
Effective tax rate |
63.0 |
% |
|
|
(0.7 |
)% |
|
(4.9 |
)% |
|
| Schedule of Income Tax Reconciliation from Federal Income Tax Statutory Rate |
The Company’s effective tax rate differs from the amount that would be computed by applying the U.S federal income tax rate of 21% to pre-tax income as a result of the following:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor |
|
|
Predecessor |
|
Nine Months Ended December 31, |
|
|
Three Months Ended March 31, |
|
Year Ended
December 31, |
|
2019 |
|
|
2019 |
|
2018 |
Dollars in thousands |
Amount |
|
% of Pre-Tax
Income
|
|
|
Amount |
|
% of Pre-Tax
Income |
|
Amount |
|
% of Pre-Tax
Income
|
Income tax expense (benefit) at U.S. statutory rate |
$ |
3,696 |
|
|
21.0 |
% |
|
|
$ |
(18,814 |
) |
|
21.0 |
% |
|
$ |
(33,160 |
) |
|
21.0 |
% |
Foreign taxes |
565 |
|
|
3.2 |
% |
|
|
1,809 |
|
|
(2.0 |
)% |
|
7,321 |
|
|
(4.6 |
)% |
Tax effect different from statutory rates |
472 |
|
|
2.7 |
% |
|
|
11,125 |
|
|
(12.4 |
)% |
|
(68 |
) |
|
— |
% |
State taxes, net of federal benefit |
305 |
|
|
1.7 |
% |
|
|
5,036 |
|
|
(5.6 |
)% |
|
(2,552 |
) |
|
1.6 |
% |
Change in valuation allowance |
3,706 |
|
|
21.1 |
% |
|
|
(98,856 |
) |
|
110.3 |
% |
|
28,353 |
|
|
(18.0 |
)% |
Uncertain tax positions |
(2,056 |
) |
|
(11.7 |
)% |
|
|
(940 |
) |
|
1.1 |
% |
|
(221 |
) |
|
0.1 |
% |
Permanent differences |
421 |
|
|
2.4 |
% |
|
|
20,543 |
|
|
(22.9 |
)% |
|
8,008 |
|
|
(5.1 |
)% |
Prior year adjustments |
(331 |
) |
|
(1.9 |
)% |
|
|
4,535 |
|
|
(5.1 |
)% |
|
50 |
|
|
— |
% |
Expiration/write-off of deferred tax assets |
4,217 |
|
|
23.9 |
% |
|
|
76,034 |
|
|
(84.9 |
)% |
|
— |
|
|
— |
% |
Other |
100 |
|
|
0.6 |
% |
|
|
184 |
|
|
(0.2 |
)% |
|
65 |
|
|
0.1 |
% |
Income tax expense |
$ |
11,095 |
|
|
63.0 |
% |
|
|
$ |
656 |
|
|
(0.7 |
)% |
|
$ |
7,796 |
|
|
(4.9 |
)% |
|
| Schedule of Income Taxes Paid (Net of any Refunds) |
Supplemental cash flow information related to income taxes paid (net of refunds) are as follow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor |
|
|
Predecessor |
|
Nine Months Ended December 31, |
|
|
Three Months Ended March 31, |
|
Year Ended December 31, |
Dollars in thousands |
2019 |
|
|
2019 |
|
2018 |
Income taxes paid (net of refunds) |
$ |
8,161 |
|
|
|
$ |
1,421 |
|
|
$ |
7,373 |
|
|
| Components of Deferred Tax Assets and Liabilities |
Deferred tax assets and deferred tax liabilities consisted of:
|
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|
|
|
|
|
|
|
|
|
Successor |
|
|
Predecessor |
|
Year Ended December 31, |
|
|
Year Ended December 31, |
Dollars in thousands |
2019 |
|
|
2018 |
Federal net operating loss (“NOL”) carryforwards |
$ |
39,636 |
|
|
|
$ |
109,002 |
|
State NOL carryforwards |
5,165 |
|
|
|
13,168 |
|
Property, plant, and equipment |
8,458 |
|
|
|
— |
|
Excess interest |
— |
|
|
|
6,230 |
|
Other state deferred tax asset, net |
1,149 |
|
|
|
1,201 |
|
Foreign tax credits |
— |
|
|
|
46,913 |
|
FIN 48 |
126 |
|
|
|
887 |
|
Foreign tax |
45,026 |
|
|
|
40,190 |
|
Accruals not currently deductible for tax purposes |
1,990 |
|
|
|
3,119 |
|
Deferred compensation |
1,107 |
|
|
|
816 |
|
Other |
377 |
|
|
|
1,297 |
|
Total deferred tax assets |
103,034 |
|
|
|
222,823 |
|
Valuation allowance |
(91,117 |
) |
|
|
(186,267 |
) |
Total deferred tax assets, net of valuation allowance |
11,917 |
|
|
|
36,556 |
|
Property, plant, and equipment |
(9,353 |
) |
|
|
(28,440 |
) |
Foreign taxes |
(942 |
) |
|
|
(510 |
) |
Other state deferred tax liability, net |
(2,236 |
) |
|
|
(5,096 |
) |
Intangibles |
(1,972 |
) |
|
|
(877 |
) |
Total deferred tax liabilities |
(14,503 |
) |
|
|
(34,923 |
) |
Net deferred tax asset (liability) |
$ |
(2,586 |
) |
|
|
$ |
1,633 |
|
|
| 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, 2019 (Predecessor) |
$ |
(5,728 |
) |
Additions based on tax position taken during a prior period |
(148 |
) |
Additions based on tax positions taken during the current period |
(158 |
) |
Reductions related to a lapse of applicable statute of limitations |
1,141 |
|
Balance at March 31, 2019 (Predecessor) |
(4,893 |
) |
|
|
|
|
Additions based on tax positions taken during a prior period |
(252 |
) |
Additions based on tax positions taken during the current period |
(492 |
) |
Reductions based on tax positions taken during a prior period |
9 |
|
Reductions related to settlement of tax matters |
310 |
|
Reductions related to a lapse of applicable statute of limitations |
1,668 |
|
Balance at December 31, 2019 (Successor) |
$ |
(3,650 |
) |
|
| Open Tax Years by Major Tax Jurisdiction |
The following describes the open tax years, by major tax jurisdiction, as of December 31, 2019:
|
|
|
Canada |
2016-present |
Kazakhstan |
2008-present |
Mexico |
2015-present |
Russia |
2015-present |
United States — Federal |
2008-present |
United Kingdom |
2017-present |
|
| Schedule of Liability for Unrecognized Tax Benefits and Accrued Interest and Penalties |
Unrecognized tax benefits and accrued interest and penalties related to uncertain tax positions was as follows:
|
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|
|
|
|
|
|
|
|
|
Successor |
|
|
Predecessor |
Dollars in thousands |
December 31,
2019 |
|
|
December 31,
2018 |
Liability for unrecognized tax benefits (1)
|
$ |
3,650 |
|
|
|
$ |
5,728 |
|
Accrued interest related to uncertain tax positions |
$ |
600 |
|
|
|
$ |
833 |
|
Penalties related to uncertain tax positions |
$ |
791 |
|
|
|
$ |
1,273 |
|
(1)
Our effective tax rate would be favorably impacted if the liability for unrecognized tax benefits is recognized.
|