INCOME TAXES (Tables)

6 Months Ended

Jun. 30, 2020

Schedule of effective income tax rate reconciliation

The following table presents a reconciliation of our income tax based on the U.S. federal statutory income tax rate and our effective income tax rate:


	Three Months Ended June 30,														Six Months Ended June 30,
	2020						2019						2020				2019
	(in thousands)
Income tax expense (benefit) at the U.S. federal statutory rate	$	289	21	%	$	226	21	%	$	(6,912)	21	%	$	518	21	%
Amount attributable to partnership not subject to income tax	(119)		(9)	%	(107)		(10)	%	7,034		(21)	%	(372)		(15)	%
Foreign income tax rate differential	16		1	%	40		4	%	26		—	%	63		3	%
Other - CARES Act	(8)		(1)	%	(53)		(5)	%	(212)		—	%	(53)		(2)	%
State income tax expense	10		1	%	5		1	%	19		—	%	8		—	%
Change in valuation allowance	—		—	%	17		2	%	(274)		1	%	34		1	%
Provision for (benefit from) income taxes	$	188	13	%	$	128	13	%	$	(319)	1	%	$	198	8	%

Schedule of components of income tax expense (benefit)

We determined our year-to-date 2020 provision for income taxes using an estimated annual effective income tax rate of 1% on a consolidated basis for fiscal year 2020. This rate incorporates the applicable income tax rates of the various domestic and foreign tax jurisdictions to which we are subject.


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
	(in thousands)
Current income tax expense:
U.S. federal income tax benefit	$	(13)	$	—	$	(530)	$	—

State income tax expense	10		5		19		8
Canadian federal and provincial income tax expense	380		277		733		593

Total current income tax expense	377		282		222		601
Deferred income tax expense (benefit):
U.S. federal income tax expense (benefit)	(16)		—		31		—
Canadian federal and provincial income tax benefit	(173)		(154)		(572)		(403)
Total change in deferred income tax benefit	(189)		(154)		(541)		(403)
Provision for (benefit from) income taxes	$	188	$	128	$	(319)	$	198

Schedule of deferred tax assets and liabilities

The major components of our deferred income tax assets and liabilities associated with our operations were as follows as of the dates indicated:


	June 30, 2020
	U.S.		Foreign		Total
	(in thousands)
Deferred income tax assets



Property and equipment	$	—	$	571	$	571
Capital loss carryforwards	—		387		387
Operating loss carryforwards	—		—		—
Deferred income tax liabilities
Unbilled revenue	—		(435)		(435)

Prepaid expenses	(31)		—		(31)

Valuation allowance	—		(387)		(387)
Deferred income tax asset (liability), net	$	(31)	$	136	$	105


	December 31, 2019
	U.S.		Foreign		Total
	(in thousands)
Deferred income tax assets



Property and equipment	$	—	$	272	$	272
Capital loss carryforwards	—		387		387
Operating loss carryforwards	320		—		320
Deferred income tax liabilities
Unbilled revenue	—		(730)		(730)

Prepaid expenses	(46)		—		(46)
Property and equipment	—		—		—
Valuation allowance	(274)		(387)		(661)
Deferred income tax liability, net	$	—	$	(458)	$	(458)