Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Income before Income Tax, Domestic and Foreign

Income tax benefit. Pre-tax loss for the years ended December 31, 2019, 2018 and 2017 consisted of the following (in thousands):



	2019			2018			2017
Canada operations	$	(60,372	)	$	(100,874	)	$	(87,143	)
Foreign operations	(8,703		)	(12,338		)	(31,601		)
Total	$	(69,075	)	$	(113,212	)	$	(118,744	)

Schedule of Components of Income Tax Expense (Benefit)

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



	2019			2018			2017
Current:
Canada	$	706		$	(1,151	)	$	(5,986	)
Foreign	266			1,189			1,472
Total	$	972		$	38		$	(4,514	)

Deferred:
Canada	$	(9,399	)	$	(31,403	)	$	(9,194	)
Foreign	(2,314		)	—			218
Total	$	(11,713	)	$	(31,403	)	$	(8,976	)

Net income tax benefit	$	(10,741	)	$	(31,365	)	$	(13,490	)

Schedule of Effective Income Tax Rate Reconciliation

The net income tax benefit differs from an amount computed at Canadian statutory rates as follows for the years ended December 31, 2019, 2018 and 2017 (in thousands):



	2019					2018					2017
Canadian federal tax benefit at statutory rates	$	(10,361	)	15.0	%	$	(16,982	)	15.0	%	$	(17,812	)	15.0	%
Canadian provincial income tax	(5,158		)	7.5	%	(12,105		)	10.7	%	(10,457		)	8.8	%
Effect of foreign income tax, net	55			(0.1	)%	(1,756		)	1.6	%	(6,797		)	5.7	%
Valuation allowance – Other	2,257			(3.3	)%	(622		)	0.5	%	19,131			(16.1	)%
Enacted tax rate change - Canada	(2,452		)	3.5	%	—			—	%	598			(0.5	)%
U.S tax reform rate change	—			—	%	—			—	%	9,047			(7.6	)%
Valuation allowance - U.S. tax reform	—			—	%	—			—	%	(9,047		)	7.6	%
Goodwill impairment	4,689			(6.8	)%	—			—	%	—			—	%
Nondeductible compensation	1,203			(1.7	)%	181			(0.2	)%	—			—	%
Unrealized intercompany foreign currency translation gain	(1,451		)	2.1	%	—			—	%	—			—	%
Other, net	477			(0.7	)%	(81		)	0.1	%	1,847			(1.5	)%
Net income tax benefit	$	(10,741	)	15.5	%	$	(31,365	)	27.7	%	$	(13,490	)	11.4	%

Schedule of Deferred Tax Assets and Liabilities

Deferred Tax Liabilities and Assets. The significant items giving rise to the deferred tax assets and liabilities as of December 31, 2019 and 2018 are as follows (in thousands):



	2019			2018
Deferred tax assets:
Net operating loss	$	97,920		$	92,600
Employee benefits	3,082			2,972
Deductible goodwill and other intangibles	26,030			20,142
Other reserves	6,150			6,903
Unearned revenue	441			868
Operating lease liabilities	6,499			—
Other	3,242			2,000
Deferred tax assets	143,364			125,485
Valuation allowance	(84,503		)	(82,833		)
Deferred tax assets, net	$	58,861		$	42,652
Deferred tax liabilities:
Depreciation and amortization	$	(62,296	)	$	(61,094	)
Operating lease right-of-use assets	(6,017		)	—
Deferred tax liabilities	(68,313		)	(61,094		)
Net deferred tax liability	$	(9,452	)	$	(18,442	)

Summary Of Operating Loss and Tax Credit Carry forwards

NOL Carryforwards. The following table summarizes net operating loss (NOL) carryforwards at December 31, 2019 (in thousands):



	Amount		Expiration Period
Net operating loss carryforwards:
Canada – Federal and provincial	$	207,606	Begins to expire in 2035
Australia	109,355		Does not expire
U.S. – Federal	36,030		Begins to expire in 2036
U.S. – Federal	14,416		Does not expire
U.S. – State, tax effected	5,608		Begins to expire in 2020

Summary of Valuation Allowance

Changes in our valuation allowance for the years ended December 31, 2019 and 2018 are as follows (in thousands):



	Federal / State NOLs			Net Deferred Tax Assets			Other			Total
Balance as of December 31, 2017	$	(31,399	)	$	(58,518	)	$	(746	)	$	(90,663	)
Change in income tax provision	(1,464		)	2,086			—			622
Other change	(348		)	1,495			(28		)	1,119
Foreign currency translation	3,907			2,122			60			6,089
Balance as of December 31, 2018	(29,304		)	(52,815		)	(714		)	(82,833		)
Change in income tax provision	(456		)	(1,946		)	145			(2,257		)
Other change	1,095			(690		)	94			499
Foreign currency translation	52			68			(32		)	88
Balance as of December 31, 2019	$	(28,613	)	$	(55,383	)	$	(507	)	$	(84,503	)