INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

The components of our tax benefit on continuing operations were as follows (in thousands):



	Current			Deferred			Total
Twelve months ended December 31, 2019:
U.S. Federal	$	(105	)	$	(4,349	)	$	(4,454	)
State & local	519			(1,230		)	(711		)
Foreign jurisdictions	2,340			2,389			4,729
	$	2,754		$	(3,190	)	$	(436	)
Twelve months ended December 31, 2018:
U.S. Federal	$	(3,295	)	$	(27,670	)	$	(30,965	)
State & local	509			(2,360		)	(1,851		)
Foreign jurisdictions	3,457			(1,704		)	1,753
	$	671		$	(31,734	)	$	(31,063	)
Twelve months ended December 31, 2017:
U.S. Federal	$	6,177		$	(62,222	)	$	(56,045	)
State & local	170			(4,819		)	(4,649		)
Foreign jurisdictions	6,821			795			7,616
	$	13,168		$	(66,246	)	$	(53,078	)

Components of Pre-Tax Income (Loss)

The components of pre-tax income (loss) from continuing operations for the years ended December 31, 2019, 2018 and 2017 were as follows (in thousands):



	Twelve Months Ended December 31,
	2019			2018			2017
Domestic	$	(34,720	)	$	(90,822	)	$	(149,045	)
Foreign	1,867			(3,387		)	11,512
	$	(32,853	)	$	(94,209	)	$	(137,533	)

Income Tax Expense (Benefit) Attributable to Income (Loss) from Continuing Operations Differed from Amounts Computed by Federal Income Tax Rate

The income tax benefit attributable to the loss from continuing operations differed from the amounts computed by applying the U.S. Federal income tax rate (21% in 2019 and 2018, and 35% in 2017) to pre-tax loss from continuing operations as a result of the following (in thousands):



	Twelve Months Ended December 31,
	2019			2018			2017
Pre-tax loss from continuing operations	$	(32,853	)	$	(94,209	)	$	(137,533	)
Computed income taxes at statutory rate	(6,899		)	(19,784		)	(48,136		)
State income taxes, net of federal benefit¹	(820		)	(974		)	(4,709		)
Foreign tax rate differential	(300		)	(52		)	(642		)
Deferred taxes on investment in foreign subsidiaries	18			(7,284		)	(17,079		)
Non-deductible expenses	658			686			1,030
Non-deductible compensation¹	559			829			—
Foreign withholding ¹	670			1,615			1,407
Foreign tax credits	—			—			(17,445		)
Other tax credits	—			(1,995		)	(631		)
Deemed repatriation tax	—			(1,751		)	24,374
Goodwill impairment	—			—			19,442
Valuation allowance	3,682			2,923			1,249
Rate change	684			81			(17,360		)
Other¹	1,312			(5,357		)	5,422
Total benefit for income tax on continuing operations	$	(436	)	$	(31,063	)	$	(53,078	)

_____________


1	Compared to our previously filed 2018 Annual Report on Form 10-K, $1.4 million was reclassified from “Other” to “State income taxes, net of federal benefit” for the twelve months ended December 31, 2018. Additionally, “Non-deductible compensation” and “Foreign withholding tax” were moved from “Other” to separate line disclosures.

Tax Effects of Temporary Differences that Give Rise to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below (in thousands):



	December 31,
	2019			2018
Deferred tax assets:
Accrued compensation and benefits	$	8,909		$	10,463
Receivables	1,644			3,096
Inventory	397			422
Stock options	768			1,101
Other accrued liabilities	1,247			2,058
Tax credit carry forward	312			1,920
Net operating loss carry forwards	50,447			48,732
Other	9,517			5,925
Deferred tax assets	73,241			73,717
Less: Valuation allowance	(14,912		)	(10,549		)
Deferred tax assets, net	58,329			63,168
Deferred tax liabilities:
Property, plant and equipment	(17,921		)	(22,429		)
Goodwill and intangible costs	(28,655		)	(23,210		)
Unremitted earnings of foreign subsidiaries	(5,393		)	(5,375		)
Convertible debt	(5,767		)	(7,055		)
Other	(2,400		)	(3,553		)
Deferred tax liabilities	(60,136		)	(61,622		)
Net deferred tax asset (liability)	$	(1,807	)	$	1,546

Reconciliation of Changes in Unrecognized Tax Benefits Associated with Uncertain Tax Positions

The following table summarizes the Company’s reconciliation of gross unrecognized tax benefits, excluding penalties and interest, for the year ended December 31, 2019, 2018 and 2017 (in thousands):



	Twelve Months Ended December 31,
	2019			2018¹			2017¹
Unrecognized tax benefits - January 1	$	1,749		$	991		$	716
Additions based on tax positions related to prior years	227			1,004			275
Reductions based on tax positions related to prior years	(415		)	—			—
Settlements	—			—			—
Reductions resulting from a lapse of the applicable statute of limitations	(14		)	(246		)	—
Unrecognized tax benefits - December 31	$	1,547		$	1,749		$	991

_____________


1	2018 and 2017 revised figures were not considered material. Penalties and interest were excluded in 2019, therefore 2018 and 2017 amounts were revised for consistency.