Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of components of income tax provision (benefit) on continuing operations

Components of income tax provision (benefit) reflected in the consolidated statements of operations consist of the following (in thousands):



	Year Ended December 31,
	2017			2016			2015

Current	$	4,161		$	(27,319	)	$	1,832
Deferred	(54,585		)	14,849			(103,022		)
	$	(50,424	)	$	(12,470	)	$	(101,190	)



Domestic	$	(53,044	)	$	(9,631	)	$	(102,978	)
Foreign	2,620			(2,839		)	1,788
	$	(50,424	)	$	(12,470	)	$	(101,190	)

Schedule of components of income (loss) before income taxes

Components of income (loss) before income taxes are as follows (in thousands):



	Year Ended December 31,
	2017			2016			2015

Domestic	$	(221	)	$	(61,484	)	$	(485,760	)
Foreign	(20,151		)	(32,431		)	7,590
	$	(20,372	)	$	(93,915	)	$	(478,170	)

Schedule of differences between the U.S. statutory rate and effective rate from continuing operations

The primary differences between the U.S. statutory rate and our effective rate are as follows:



	Year Ended December 31,
	2017		2016		2015

Statutory rate	35.0	%	35.0	%	35.0	%
Foreign provision	(6.2	)	(5.1	)	(13.7	)
Change in U.S. statutory rate ⁽¹⁾	293.1		—		—
Mandatory U.S. repatriation ⁽¹⁾	(39.7	)	—		—
Change in tax position ⁽²⁾	(31.1	)	—		—
Goodwill impairment	—		(16.8	)	—
Other	(3.6	)	0.2		(0.1	)
Effective rate	247.5	%	13.3	%	21.2	%

(1)

As a result of the U.S. tax law changes, we recorded a net deferred tax benefit of $51.6 million during the fourth quarter of 2017. This amount consists of two components: (i) a $59.7 million deferred tax benefit resulting from the remeasurement of our net deferred tax liabilities in the U.S. based on the new lower corporate income tax rate, and (ii) an $8.1 million deferred tax charge relating to the one-time mandatory tax on previously deferred earnings of certain non-U.S. subsidiaries that are owned either wholly or partially by one of our U.S. subsidiaries.

(2)

We consider all available evidence, both positive and negative, when determining whether a valuation allowance is required against deferred tax assets. Due to weaker near term outlook and financial results primarily associated with our Robotics segment, we currently do not anticipate generating sufficient foreign source income to fully utilize our foreign tax credits prior to their expiration. We have concluded that it is more likely than not previously recorded deferred tax assets attributable to foreign tax credits will not be realized. As a result of this change in tax position, we recorded a tax charge of $6.3 million in June 2017, which is comprised of a $2.8 million valuation allowance attributable to a foreign tax credit carryforward from 2015 and a $3.5 million charge attributable to the decision to deduct foreign taxes related to 2016 and 2017.

Schedule of deferred income taxes

Deferred income taxes result from the effect of transactions that are recognized in different periods for financial and tax reporting purposes. The nature of these differences and the income tax effect of each are as follows (in thousands):



	December 31,
	2017			2016
Deferred tax liabilities:
Depreciation	$	135,824		$	192,777
Original issuance discount on 2022 Notes and 2032 Notes	7,727			11,802
Prepaid and other	437			1,448
Total deferred tax liabilities	$	143,988		$	206,027
Deferred tax assets:
Net operating losses	$	(33,480	)	$	(20,910	)
Reserves, accrued liabilities and other	(19,496		)	(38,131		)
Total deferred tax assets	(52,976		)	(59,041		)
Valuation allowance	12,337			3,771
Net deferred tax liabilities	$	103,349		$	150,757
Deferred income tax is presented as:
Current deferred tax assets	$	—		$	(16,594	)
Non-current deferred tax liabilities	103,349			167,351
Net deferred tax liabilities	$	103,349		$	150,757

Reconciliation of beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2017 and 2016 is as follows (in thousands):



	2017			2016		2015

Balance at January 1,	$	343		$	—	$	—
Additions for tax positions of prior years	—			343		—
Reductions for tax positions of prior years	(25		)	—		—
Balance at December 31,	$	318		$	343	$	—