INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

INCOME TAXES

Schedule of components of income before income taxes

The components of income before income taxes for the years ended December 31, 2019, 2018 and 2017 are as follows (in thousands):

	2019		2018		2017
Domestic	$	(15,661)	$	28,917	$	25,232
Foreign		21,733		24,825		22,321
Total	$	6,072	$	53,742	$	47,553

Schedule of reconciliation from the tax computed at statutory income tax rates to the Company's income tax expense

The following is a reconciliation from the tax computed at statutory income tax rates to the Company’s income tax expense for the years ended December 31, 2019, 2018, and 2017 (in thousands):

	2019		2018		2017
Tax computed at statutory US federal income tax rates	$	1,275	$	11,286	$	16,644
Non-controlling interest		(648)		(1,114)		(2,887)
Foreign tax rate differential		(1,820)		(2,716)		(6,621)
Over (under) provided in prior periods		(244)		(4,683)		(18)
Nondeductible expenses		3,781		1,610		929
Capitalized transactions costs		19		62		53
Change in tax reserves		3,883		10,657		4,433
State Taxes, net of federal benefit		(429)		1,674		1,075
Change in valuation allowance		(35)		1,539		6,137
Investment Tax Credit		(1,215)		—		—
Refund Claim for Domestic Production Deduction		—		235		(3,382)
Tax Cuts and Jobs Act of 2017		—		(148)		(10,639)
Capital loss		—		15		(6,990)
Deferred income tax revaluation		(513)		—		—
Other, net		51		453		(75)
Total Income Tax Expense	$	4,105	$	18,870	$	(1,341)

Schedule of components of income tax expense (benefit)

The components of income tax expense (benefit) for the years ended December 31, 2019, 2018 and 2017 are as follows (in thousands):

\
	2019		2018		2017
Current:
United States—Federal	$	(1,559)	$	24,546	$	375
United States—State		(336)		4,506		500
Foreign		8,192		13,060		11,289
Total current income tax expense	$	6,297	$	42,112	$	12,164
Deferred:
United States—Federal	$	(1,805)	$	(17,947)	$	(10,892)
United States—State		(93)		(2,832)		950
Foreign		(294)		(2,463)		(3,563)
Total deferred income tax expense (benefit)	$	(2,192)	$	(23,242)	$	(13,505)
Consolidated:
United States—Federal	$	(3,364)	$	6,599	$	(10,517)
United States—State		(429)		1,674		1,450
Foreign		7,898		10,597		7,726
Total income tax expense (benefit)	$	4,105	$	18,870	$	(1,341)

Schedule of significant components of deferred tax assets and liabilities

The significant components of deferred tax assets and liabilities are as follows as of December 31, 2019 and 2018 (in thousands):

	2019		2018
Deferred tax assets:
Receivables reserve	$	1,192	$	3,087
Temporary differences not currently deductible for tax		13,144		9,035
Deferred compensation		760		784
Operating lease liability		15,869		—
Pension		515		635
Net operating losses		40,492		29,496
Tax Credits		1,511		645
Total deferred tax asset		73,483		43,682
Deferred tax liabilities:
Property, plant and equipment, net		15,892		14,608
Right-of-use asset		15,869		—
Intangible assets, net		8,414		5,959
Total deferred tax liabilities		40,175		20,567
Valuation allowance		(39,406)		(31,442)
Net deferred tax liabilities	$	(6,098)	$	(8,327)

Schedule of deferred tax assets and liabilities

Deferred tax assets and liabilities are reflected in the accompanying consolidated balance sheets as follows (in thousands):

	2019		2018
Deferred tax assets:
Current	$	—	$	—
Long term		2,582		1,949
Total deferred tax asset	$	2,582	$	1,949
Deferred tax liabilities:
Current	$	—	$	—
Long term		(8,680)		(10,276)
Total deferred tax liabilities	$	(8,680)	$	(10,276)
Net deferred tax liabilities	$	(6,098)	$	(8,327)

Schedule of activity related to unrecognized tax benefits

The following shows the activity related to unrecognized tax benefits (not including interest and penalty) during the three years ended December 31, 2019 (in thousands):

Gross unrecognized tax benefits at December 31, 2016	$	17,904
Increase in unrecognized tax benefits taken during a prior period		—
Increase in unrecognized tax benefits taken during the current period		3,394
Lapse in statute of limitations		(2)
Settlements		(335)
Gross unrecognized uncertain tax benefits at December 31, 2017		20,961
Increase in unrecognized tax benefits taken during a prior period		7,293
Increase in unrecognized tax benefits taken during the current period		3,408
Lapse in statute of limitations		(1,430)
Settlements		—
Gross unrecognized uncertain tax benefits at December 31, 2018		30,232
Increase in unrecognized tax benefits taken during a prior period		—
Increase in unrecognized tax benefits taken during the current period		3,383
Lapse in statute of limitations		(933)
Settlements		—
Gross unrecognized uncertain tax benefits at December 31, 2019	$	32,682