Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Taxes

Schedule of components of income (loss) from continuing operation before income taxes

	Years ended December 31,
	2017		2016		2015
	(in thousands)
United States	$	35,050	$	21,634	$	11,319
Foreign		961		2,312		1,456
Income before income taxes	$	36,011	$	23,946	$	12,775

Schedule of components of income tax expense

	Federal		State		Foreign		Total
	(in thousands)
2017
Current	$	(58)	$	284	$	20	$	246
Deferred		(31,198)		4,805		—		(26,393)
Total	$	(31,256)	$	5,089	$	20	$	(26,147)
2016
Current	$	324	$	14	$	440	$	778
Deferred		8,807		292		—		9,099
Total	$	9,131	$	306	$	440	$	9,877
2015
Current	$	(208)	$	13	$	476	$	281
Deferred		4,871		1,163		—		6,034
Total	$	4,663	$	1,176	$	476	$	6,315

Schedule of reconciliation of the federal income tax expense at the statutory rate to the effective income tax expense

	Years Ended December 31,
	2017		2016		2015
	(in thousands)
Statutory federal income tax expense	$	12,244	$	8,142	$	4,343
State taxes, net of federal benefit		3,360		202		776
Foreign tax paid		20		440		476
Change in federal tax rate		(43,643)		—		—
Tax consequences of the sale of engines to WMES		164		—		(306)
Uncertain tax positions		—		(40)		(195)
Permanent differences-nondeductible executive compensation		1,238		1,201		1,117
Permanent differences and other		470		(68)		104
Effective income tax (benefit) expense	$	(26,147)	$	9,877	$	6,315

Summary of activity related to the Company's unrecognized tax benefits

	(in thousands)
Balance as of December 31, 2014	$	464
Increases related to current year tax positions		5
Decreases due to tax positions released		(195)
Balance as of December 31, 2015		274
Increases related to current year tax positions		4
Decreases due to tax positions released		(72)
Balance as of December 31, 2016		206
Increases related to current year tax positions		4
Decreases due to tax positions expired		(19)
Balance as of December 31, 2017	$	191

Schedule of tax effects of temporary differences of the deferred tax assets and liabilities

	As of December 31,
	2017		2016
	(in thousands)
Deferred tax assets:
Unearned lease revenue	$	1,754	$	1,839
State taxes		1,653		1,035
Reserves and allowances		2,531		1,659
Other accruals		643		2,501
Alternative minimum tax credit		—		335
Foreign tax credit		42		42
Net operating loss carry forward		29,874		35,693
Charitable contributions		22		52
Total deferred tax assets		36,519		43,156
Less: valuation allowance		(806)		(1,280)
Net deferred tax assets		35,713		41,876
Deferred tax liabilities:
Depreciation and impairment on aircraft engines and equipment		(114,347)		(147,827)
Other deferred tax assets (liabilities)		437		422
Net deferred tax liabilities		(113,910)		(147,405)
Other comprehensive loss deferred tax asset		(83)		551
Net deferred tax liabilities	$	(78,280)	$	(104,978)