Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Income Tax Benefit (Provision)

The following summarizes our income tax (provision) benefit (in thousands):


	Year Ended December 31,
	2019		2018
Current:
U.S. federal	$	(2,918)	$	47,761
State and local		2		867
Foreign		(250)		(250)
Total current		(3,166)		48,378
Deferred:
U.S. federal		(2,990)		(9,036)
State and local		3		6
Total deferred		(2,987)		(9,030)
Total income tax (provision) benefit	$	(6,153)	$	39,348

Summary of Uncertain Tax Positions Included in Income Tax Provision

Our current income tax (provision) benefit includes an (increase) decrease to our liability for UTPs for (in thousands):


	Year Ended December 31,
	2019		2018
Unrecognized tax benefits	$	(2,467)	$	41,115
Interest expense		(1,570)		6,752
Total	$	(4,037)	$	47,867

Summary of Additional Income Tax Disclosures

In addition to the income tax (provision) benefit presented above, we also recorded the following items (in thousands):

Schedule of Effective Income Tax Rate Reconciliation

The (provision) benefit for income taxes differs from the amount computed by applying the statutory U.S. federal income tax rate on the loss from continuing operations before income taxes and equity in net income (loss) of affiliates because of the effect of the following items (dollars in thousands):


	Year Ended December 31,
	2019		2018
U.S. Statutory Federal Corporate Income Tax Rate		21%		21%
Tax benefit	$	1,154	$	1,104
Permanent adjustments which change statutory amounts:
State and local income taxes, net of federal income tax		107		666
Equity in net income (loss) of affiliates		(5,055)		(6,241)
Federal (provision) benefit for unrecognized tax benefits		(1,226)		46,534
Nondeductible expenses		(695)		(957)
Change in valuation allowance		(118)		(4,329)
Income tax credits		—		4,554
Foreign income taxes		(250)		(250)
Effect of U.S. tax law changes		—		(1,542)
Other, net		(70)		(191)
Total income tax (provision) benefit	$	(6,153)	$	39,348

Unrecognized Tax Benefits

The following table summarizes the activity related to our unrecognized tax benefits (in thousands):


	Year Ended December 31,
	2019		2018
Balance at January 1	$	43,055	$	70,410
Decreases as a result of statute expirations		(18)		(27,355)
Balance at December 31	$	43,037	$	43,055

Schedule of Net Deferred Tax Assets

The significant components of the net deferred income tax assets are (in thousands):


	December 31,
	2019		2018
Deferred tax assets:
Net operating loss carryforwards	$	34,294	$	36,875
Foreign tax credit carryforwards		126,007		126,007
Compensation and benefits		961		953
Indemnification liabilities		66		216
Other, net		305		219
Federal benefit of uncertain tax positions		428		98
Pension costs		3,375		3,157
Investments in and advances to affiliates		992		1,360
Total deferred tax assets before valuation allowance		166,428		168,885
Less valuation allowance		(128,483)		(128,365)
Deferred tax assets	$	37,945	$	40,520

Year Ended December 31,

Tax benefit on loss from discontinued operations

Deferred tax benefit (provision) for adjustments in

other comprehensive loss (see Note 3)