Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes

Schedule of components of income before provision for income taxes

For the years ended December 31, 2019 and 2018, Income before provision for income taxes, includes the following components (amounts in thousands):

	2019		2018
Domestic income	$	21,695	$	9,797
Foreign loss		(13,080)		(10,323)
Income before provision for income taxes	$	8,615	$	(526)

Schedule of composition of income tax expense

For the years ended December 31, 2019 and 2018, income tax expense is comprised of the following (amounts in thousands):

	2019		2018
Current income tax expense	$	8,493	$	9,231
Deferred income tax		3,593		1,040
Income tax expense	$	12,086	$	10,271

Schedule of reconciliation of income tax (benefit) expense

For the years ended December 31, 2019 and 2018, the reconciliation of income tax (benefit) expense computed at the U.S. federal statutory rates to income tax expense is (amounts in thousands):

	2019		2018
Income tax (benefit) expense at federal statutory rate-US Only	$	1,810	$	(108)
Income tax expense at federal statutory rate-Foreign Only		3,637		3,832
Permanent items		184		836
Return to provision true-ups -Current/ Deferred		301		(51)
Foreign rate differential		(2,284)		(141)
Foreign tax credits		(5,501)		(7,890)
Foreign valuation allowance		10,007		9,429
Change in FTC valuation allowance		3,785		4,141
Revaluation of  Puerto Rico deferred taxes		(1,361)		—
Foreign withholding taxes		1,449		1,499
Deferred foreign tax credit offset		(421)		(873)
State taxes and state rate change		480		374
Puerto Rico tax rate change		—		(722)
UTP adjustment		—		(55)
Income tax expense	$	12,086	$	10,271

Schedule of components of net deferred tax liabilities

Net deferred tax liabilities consist of the following components as of December 31, 2019 and 2018 (amounts in thousands):

	2019		2018
Deferred tax assets:
Allowances for doubtful accounts	$	776	$	820
Deferred branch tax benefit		11,813		11,801
Deferred revenue		109		84
NOL credit and other carryovers		274		204
Fixed assets		94		51
Accrued expenses		1,455		1,123
Foreign tax credit		18,497		14,729
Stock compensation		3,634		3,613
Pension		360		196
Interest rate swap		178		—
Intangibles		1,354		1,447
Equity method gains and losses		21,976		12,900
Other DTA		38		17
Less: Foreign income valuation allowance		(22,570)		(12,546)
Less: Foreign tax credit valuation allowance		(18,497)		(14,729)
Total deferred tax assets		19,491		19,710
Deferred tax liabilities:
Prepaid expenses		(504)		(404)
Intangibles		(15,496)		(15,788)
Interest rate swap		—		(365)
Property and equipment		(8,225)		(6,678)
Amortization expense		(13,389)		(11,705)
Total deferred tax liabilities		(37,614)		(34,940)
	$	(18,123)	$	(15,230)

Schedule of classification of deferred tax amounts

The deferred tax amounts mentioned above have been classified on the accompanying consolidated balance sheets at December 31, 2019 and 2018 as follows (amounts in thousands):

	2019		2018
Non-current assets	$	1,208	$	4,290
Non-current liabilities	$	19,331	$	19,520