Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2017 |
|---|
| 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 |
2017 |
|
2016 |
|
2015 |
United States |
$ |
(89,233 |
) |
|
$ |
(131,106 |
) |
|
$ |
(77,368 |
) |
Foreign |
(20,428 |
) |
|
(25,538 |
) |
|
5,397 |
|
|
$ |
(109,661 |
) |
|
$ |
(156,644 |
) |
|
$ |
(71,971 |
) |
|
| Summary of Income Tax Expense (Benefit) |
Income tax expense (benefit) is summarized as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
Dollars in thousands |
2017 |
|
2016 |
|
2015 |
Current: |
|
|
|
|
|
United States: |
|
|
|
|
|
Federal |
$ |
80 |
|
|
$ |
(1,921 |
) |
|
$ |
2,485 |
|
State |
54 |
|
|
(9 |
) |
|
365 |
|
Foreign |
9,130 |
|
|
7,038 |
|
|
16,754 |
|
|
|
|
|
|
|
Deferred: |
|
|
|
|
|
United States: |
|
|
|
|
|
Federal |
167 |
|
|
64,066 |
|
|
(141 |
) |
State |
— |
|
|
(47 |
) |
|
(4,769 |
) |
Foreign |
(391 |
) |
|
5,043 |
|
|
7,619 |
|
|
$ |
9,040 |
|
|
$ |
74,170 |
|
|
$ |
22,313 |
|
|
| 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:
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|
|
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|
Year Ended December 31, |
|
2017 |
|
2016 |
|
2015 |
Dollars in thousands |
Amount |
|
% of Pre-Tax
Income
|
|
Amount |
|
% of Pre-Tax
Income
|
|
Amount |
|
% of Pre-Tax
Income
|
Computed expected tax expense |
$ |
(38,381 |
) |
|
35.0 |
% |
|
$ |
(54,825 |
) |
|
35.0 |
% |
|
$ |
(25,190 |
) |
|
35.0 |
% |
Foreign taxes |
13,084 |
|
|
(11.9 |
)% |
|
12,688 |
|
|
(8.1 |
)% |
|
16,043 |
|
|
(22.3 |
)% |
Tax effect different from statutory rates |
(2,048 |
) |
|
1.9 |
% |
|
(3,629 |
) |
|
2.3 |
% |
|
(2,729 |
) |
|
3.8 |
% |
State taxes, net of federal benefit |
35 |
|
|
— |
% |
|
(849 |
) |
|
0.5 |
% |
|
(4,544 |
) |
|
6.3 |
% |
Foreign tax credits |
3 |
|
|
— |
% |
|
20 |
|
|
— |
% |
|
(5,566 |
) |
|
7.7 |
% |
Change in valuation allowance (excluding impact of Tax Act) |
30,704 |
|
|
(28.0 |
)% |
|
117,707 |
|
|
(75.1 |
)% |
|
40,676 |
|
|
(56.5 |
)% |
Uncertain tax positions |
194 |
|
|
(0.2 |
)% |
|
(726 |
) |
|
0.5 |
% |
|
(81 |
) |
|
0.1 |
% |
Permanent differences |
2,970 |
|
|
(2.7 |
)% |
|
1,442 |
|
|
(0.9 |
)% |
|
1,696 |
|
|
(2.4 |
)% |
Prior year return to provision adjustments |
2,442 |
|
|
(2.3 |
)% |
|
2,078 |
|
|
(1.3 |
)% |
|
1,555 |
|
|
(2.1 |
)% |
Other |
37 |
|
|
— |
% |
|
264 |
|
|
(0.2 |
)% |
|
453 |
|
|
(0.6 |
)% |
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 |
% |
|
— |
|
|
— |
% |
|
— |
|
|
— |
% |
Actual Tax Expense |
$ |
9,040 |
|
|
(8.2 |
)% |
|
$ |
74,170 |
|
|
(47.3 |
)% |
|
$ |
22,313 |
|
|
(31.0 |
)% |
|
| Components of Deferred Tax Assets and Liabilities |
The components of the Company’s deferred tax assets and liabilities as of December 31, 2017 and 2016 are shown below:
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|
|
|
|
|
|
|
|
December 31, |
Dollars in thousands |
2017 |
|
2016 |
Deferred tax assets |
|
|
|
Deferred tax assets: |
|
|
|
Federal net operating loss carryforwards |
95,867 |
|
|
120,986 |
|
State net operating loss carryforwards |
11,089 |
|
|
7,168 |
|
Other state deferred tax asset, net |
1,592 |
|
|
2,646 |
|
Foreign Tax Credits |
46,913 |
|
|
46,859 |
|
FIN 48 |
953 |
|
|
883 |
|
Foreign tax |
36,699 |
|
|
29,791 |
|
Asset Impairment |
8,161 |
|
|
27,165 |
|
Accruals not currently deductible for tax purposes |
2,926 |
|
|
1,657 |
|
Deferred compensation |
1,204 |
|
|
3,424 |
|
Other |
74 |
|
|
863 |
|
Gross long-term deferred tax assets |
205,478 |
|
|
241,442 |
|
Valuation Allowance |
(157,914 |
) |
|
(171,133 |
) |
Net deferred tax assets, net of valuation allowance |
47,564 |
|
|
70,309 |
|
Deferred tax liabilities: |
|
|
|
Deferred tax liabilities: |
|
|
|
Property, Plant and equipment |
(38,809 |
) |
|
(64,256 |
) |
Foreign tax local |
(78 |
) |
|
490 |
|
Other state deferred tax liability, net |
(6,140 |
) |
|
(5,567 |
) |
Intangibles |
(1,331 |
) |
|
— |
|
Gross deferred tax liabilities |
(46,358 |
) |
|
(69,333 |
) |
Net deferred tax asset |
$ |
1,206 |
|
|
$ |
976 |
|
|
| 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, 2016 |
$ |
(4,628 |
) |
Reductions based on tax positions taken during a prior period |
3 |
|
Additions based on tax positions taken during the current period |
(770 |
) |
Balance at December 31, 2017 |
$ |
(5,395 |
) |
|
| Open Tax Years by Major Tax Jurisdiction |
The following describes the open tax years, by major tax jurisdiction, as of December 31, 2017:
|
|
|
Kazakhstan |
2008-present |
Mexico |
2012-present |
Russia |
2014-present |
United States — Federal |
2009-present |
United Kingdom |
2014-present |
|