XML 30 R14.htm IDEA: XBRL DOCUMENT v3.8.0.1
Income Taxes
12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
8.
INCOME TAXES
Loss before income tax benefit and equity in earnings (losses) of 50% or less owned companies derived from U.S. and foreign companies for the years ended December 31 were as follows (in thousands):
 
2017
 
2016
 
2015
United States
$
(90,696
)
 
$
(169,523
)
 
$
(47,184
)
Foreign
(45,112
)
 
(28,095
)
 
(1,963
)
Eliminations
18,785

 
7,313

 
(3,429
)
 
$
(117,023
)
 
$
(190,305
)

$
(52,576
)

As of December 31, 2017, cumulative undistributed net earnings of foreign subsidiaries included in the Company’s retained earnings were $38.5 million.
The components of income tax benefit for the years ended December 31 were as follows (in thousands):
 
2017
 
2016
 
2015
Current:
 
 
 
 
 
Federal
$
(16,705
)
 
$
(20,718
)
 
$
(6,814
)
State
(42
)
 
(139
)
 
420

Foreign
3,347

 
5,436

 
5,907

 
(13,400
)
 
(15,421
)
 
(487
)
Deferred:
 
 
 
 
 
Federal
(60,750
)
 
(47,692
)
 
(15,956
)
State
(172
)
 
(446
)
 
(14
)
Foreign
(84
)
 
90

 
(516
)
 
(61,006
)
 
(48,048
)
 
(16,486
)
 
$
(74,406
)
 
$
(63,469
)
 
$
(16,973
)

The following table reconciles the difference between the statutory federal income tax rate for the Company and the effective income tax rate for the years ended December 31:
 
2017
 
2016
 
2015
Statutory rate
(35.0
)%
 
(35.0
)%
 
(35.0
)%
U.S. federal income tax law changes
(37.3
)%
 
 %
 
 %
SEACOR Holdings share awards to Company personnel
2.3
 %
 
0.4
 %
 
0.1
 %
Non-deductible expenses
1.8
 %
 
0.1
 %
 
1.8
 %
Exclusion of foreign subsidiaries with accumulated losses
2.7
 %
 
1.1
 %
 
0.5
 %
Noncontrolling interests
1.7
 %
 
0.2
 %
 
(0.5
)%
State taxes
(0.2
)%
 
(0.3
)%
 
0.5
 %
Other
0.4
 %
 
0.1
 %
 
0.3
 %
 
(63.6
)%
 
(33.4
)%
 
(32.3
)%

For the year ending December 31, 2017, the Company’s effective income tax rate of 63.6% was higher than the Company’s statutory tax rate of 35% primarily due to income tax benefits of $43.7 million recognized as a result of new U.S. tax legislation signed into law on December 22, 2017. The majority of the income tax benefits recognized were due to a reduction in U.S. tax rates from 35% to 21% applied to the Company’s domestic basis differences and the elimination of previously accrued deferred taxes on the unremitted earnings of the Company’s foreign subsidiaries.
The components of net deferred income tax liabilities as of December 31 were as follows (in thousands):
 
2017
 
2016
Deferred tax liabilities:
 
 
 
Property and equipment
$
55,262

 
$
98,654

Unremitted earnings of foreign subsidiaries

 
24,084

Investments in 50% or Less Owned Companies
4,258

 
15,203

Other
5,901

 
2,260

Total deferred tax liabilities
65,421

 
140,201

Deferred tax assets:
 
 
 
Federal Net Operating Loss Carryforwards
5,111

 

Other
5,373

 
15,256

 
10,484

 
15,256

Valuation Allowance
(569
)
 

Total deferred tax assets
9,915

 
15,256

Net deferred tax liabilities
$
55,506

 
$
124,945

As of December 31, 2017, the Company’s valuation allowance of $0.6 million related to various state net operating loss carryforwards.
The estimated impact of the new U.S. tax legislation signed into law on December 22, 2017 is based on management’s current knowledge and assumptions. As of December 31, 2017, the Company’s federal net operating loss carryforwards excluded unrecognized tax benefits of $3.9 million as a result of uncertainty regarding the interpretation of the new tax law. The recognition of these unrecognized tax benefits, as well as any other items identified upon the Company’s further analysis of the new tax law, will affect the Company’s effective tax rate in future periods, which could be materially different from the current estimates recorded.