INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of loss from continuing operations before income taxes and equity in (earnings) of equity-method investment

The loss before income taxes and equity in earnings of equity-method investment is as follows (in thousands):



	Year Ended December 31,
	2019			2018			2017
United States	$	(107,905	)	$	(63,450	)	$	(45,541	)
Foreign	(31,912		)	3,032			421
Loss before income taxes and equity in earnings of equity-method investment	$	(139,817	)	$	(60,418	)	$	(45,120	)

Schedule of current and deferred income tax (benefit) provision

Income tax (benefit) expense consisted of the following (in thousands):



	Year Ended December 31,
	2019			2018		2017
Current:
Federal	$	—		$	—	$	(730	)
State	128			118		123
Foreign	559			277		507
	687			395		(100		)
Deferred:
Federal	—			—		—
State	—			—		—
Foreign	(2,335		)	262		353
	(2,335		)	262		353
Income tax (benefit) expense	$	(1,648	)	$	657	$	253

Schedule of effective income tax rate reconciliation

A reconciliation of the U.S. statutory rate of 21% for 2019 and 2018, and 34% for 2017 and the effective income tax rate is as follows:



	Year Ended December 31,
	2019		2018		2017
Federal income tax at statutory rates	(21.0	)%	(21.0	)%	(34.0	)%
State income tax	(4.6	)	(5.5	)	(5.0	)
Other permanent differences	(0.3	)	1.2		0.4
Tax rates different than statutory	(0.5	)	1.2		0.5
Statutory tax rate change - Deferred - Tax Reform Act	—		—		(128.4	)
Statutory tax rate change - Valuation Allowance - Tax Reform Act	—		—		128.4
Goodwill impairment	3.4		—		—
Refundable AMT credit	—		—		(1.5	)
Change in valuation allowance	21.8		25.2		40.1
Effective tax rate	(1.2	)%	1.1	%	0.5	%

Schedule of deferred tax assets and liabilities

Deferred income taxes reflect the net tax effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of net deferred tax assets (liabilities) were as follows (in thousands):



	December 31,
	2019			2018
Deferred income tax assets:
Net operating loss carryforwards	$	99,481		$	93,704
Property and equipment	35,535			38,556
Goodwill and intangible assets	9,253			—
Deferred revenue	1,439			971
Non-deductible interest	23,181			10,028
Leases - ASC 842	20,811			—
Stock-based compensation	2,073			1,486
Provision for doubtful accounts	682			956
Accrued compensation	308			1,008
Tax credits carried forward	1,832			2,735
Other	1,919			1,785
Total deferred income tax assets	196,514			151,229

Deferred income tax liabilities:
Leases - ASC 842	(15,889		)	—
Contracts assets	(6,244		)	(6,186		)
Goodwill and intangible assets	—			(375		)
Refinancing costs	(416		)	(4,130		)
Total deferred income tax liabilities	(22,549		)	(10,691		)

Net deferred income tax assets	173,965			140,538
Valuation allowance	(173,841		)	(142,749		)
Net deferred income tax assets (liabilities)	$	124		$	(2,211	)

Schedule of summary of changes in deferred tax asset valuation allowance

Changes in our valuation allowance are summarized as follows (in thousands):



	Year Ended December 31,
	2019		2018		2017
Balance, January 1,	$	142,749	$	132,712	$	164,865
Increase in deferred tax assets	31,092		10,037		27,183
Remeasurement in deferred tax assets	—		—		(59,336		)
Balance, December 31,	$	173,841	$	142,749	$	132,712

Schedule of changes in unrecognized tax benefits

Changes in our unrecognized tax benefits are summarized as follows (in thousands):



	Year Ended December 31,
	2019			2018		2017
Unrecognized tax benefits balance, January 1,	$	462		$	162	$	187
Additions for tax positions - current year	11			—		—
Additions for tax positions - prior year	1			300		162
Reductions for tax positions - prior year	(93		)	—		(187		)
Unrecognized tax benefits balance, December 31,	$	381		$	462	$	162