Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Income Tax Benefit (Provision)

The following summarizes our income tax benefit (provision) (in thousands):


	Year Ended December 31,
	2018		2017
Current:
U.S. federal	$	47,761	$	(13,783)
State and local		867		21,114
Foreign		(250)		(250)
Total current		48,378		7,081
Deferred:
U.S. federal		(9,036)		(80,136)
State and local		6		(53)
Total deferred		(9,030)		(80,189)
Total income tax benefit (provision)	$	39,348	$	(73,108)

Summary of Uncertain Tax Positions Included in Income Tax Provision

Our current tax benefit includes a decrease to our liability for UTPs for (in thousands):


	Year Ended December 31,
	2018		2017
Unrecognized tax benefits	$	41,115	$	1,062
Interest expense		6,752		429
Penalties		—		5,985
Total	$	47,867	$	7,476

Summary of Additional Income Tax Disclosures

In addition to the income tax benefit (provision) presented above, we also recorded the following items (in thousands):


	Year Ended December 31,
	2018		2017
Tax benefit on loss from discontinued operations	$	16	$	3
Cumulative effect adjustment attributable to previously unrecognized
excess tax benefits on stock-based compensation		—		4,697
Deferred tax (provision) benefit for adjustments in
other comprehensive loss (see Note 3)		(481)		10,226

Schedule of Effective Income Tax Rate Reconciliation

The benefit (provision) for income taxes differs from the amount computed by applying the statutory U.S. federal income tax rate on the loss from continuing operations before income taxes and equity in net (loss) income of affiliates because of the effect of the following items (in thousands):


	Year Ended December 31,
	2018		2017
U.S. Statutory Federal Corporate Income Tax Rate		21%		35%
Tax benefit	$	1,104	$	3,069
Permanent adjustments which change statutory amounts:
State and local income taxes, net of federal income tax		666		15,413
Equity in net (loss) income of affiliates		(6,241)		(73,997)
Federal benefit (provision) for unrecognized tax benefits		46,534		(1,234)
Nondeductible expenses		(957)		(1,235)
Change in valuation allowance		(4,329)		(120,389)
Income tax credits		4,554		138,780
Foreign income taxes		(250)		(250)
Effect of U.S. tax law changes		(1,542)		(33,248)
Other, net		(191)		(17)
Total income tax benefit (provision)	$	39,348	$	(73,108)

Unrecognized Tax Benefits

The following table summarizes the activity related to our unrecognized tax benefits (in thousands):


	Year Ended December 31,
	2018		2017
Balance at January 1	$	70,410	$	68,149
Decreases as a result of statute expirations		(27,355)		(14,172)
Increases related to current year tax positions		—		16,433
Balance at December 31	$	43,055	$	70,410

Schedule of Net Deferred Tax Assets

The significant components of the net deferred income tax assets are (in thousands):


	December 31,
	2018		2017
Deferred tax assets:
Net operating loss carryforwards	$	36,875	$	43,557
Foreign tax credit carryforwards		126,007		121,360
Compensation and benefits		953		943
Indemnification liabilities		216		216
Other, net		219		454
Federal benefit of uncertain tax positions		98		1,518
Pension costs		3,157		3,458
Investments in and advances to affiliates		1,360		2,546
Total deferred tax assets before valuation allowance		168,885		174,052
Less valuation allowance		(128,365)		(124,036)
Deferred tax assets	$	40,520	$	50,016