Income Taxes Income Tax Expense (Tables)

12 Months Ended

Dec. 31, 2017

The following table summarizes unrecognized tax benefit amounts as follows (in thousands):



	December 31, 2017			December 31, 2016
Beginning balance at January 1	$	7,777		$	7,345
Increase related to current year’s tax position	1,315			1,233
Lapse of statute of limitations	(898		)	(791		)
Foreign exchange adjustment	56			(10		)
Ending balance at December 31	$	8,250		$	7,777

Summary of Income Tax Interest and Penalties

The following table summarizes interest and penalty expense as follows (in thousands):



	December 31, 2017			December 31, 2016			December 31, 2015
Interest expense (benefit)	$	144		$	121		$	15
Penalty expense	$	(64	)	$	(29	)	$	(98	)

Schedule of Components of Income Tax Expense (Benefit)

The following table summarizes the Company's income tax (benefit) expense as follows (in thousands):



	December 31, 2017			December 31, 2016			December 31, 2015
Current taxes:
Bermuda	$	—		$	—		$	—
U.S.	36			(80		)	487
Foreign	839			841			208
	$	875		$	761		$	695
Deferred taxes:
Bermuda	$	—		$	—		$	—
U.S.	(94,079		)	(709		)	3,327
Foreign	(70		)	(100		)	26
	(94,149		)	(809		)	3,353
Total income tax (benefit) expense	$	(93,274	)	$	(48	)	$	4,048

The following table summarizes the components of income taxes payable included in accounts payable and other accrued expenses on the consolidated balance sheets were as follows (in thousands):



	December 31, 2017		December 31, 2016
Corporate income taxes payable	$	56	$	32
Unrecognized tax benefits	8,250		7,777
Interest accrued	824		680
Penalties	561		625
Income taxes payable	$	9,691	$	9,114

Schedule of Income before Income Tax, Domestic and Foreign

The following table summarizes the components of income (loss) before income taxes as follows (in thousands):



	December 31, 2017			December 31, 2016			December 31, 2015
Bermuda sources	$	(4,011	)	$	—		$	—
U.S. sources	125,799			(7,451		)	10,985
Foreign sources	138,464			1,618			120,732
Income (loss) before income taxes	$	260,252		$	(5,833	)	$	131,717

Schedule of Effective Income Tax Rate Reconciliation

The following table summarizes the difference between the Bermuda statutory income tax rate and the effective tax rate on the consolidated statements of operations as follows:



	December 31, 2017		December 31, 2016		December 31, 2015
Bermuda tax rate	—	%	—	%	—	%
Change in enacted tax rate	(53.55	)%	—	%	—	%
U.S. income taxed at other than the statutory rate	17.10	%	41.68	%	3.01	%
Effect of uncertain tax positions	0.21	%	(10.16	)%	—	%
Foreign income taxed at other than the statutory rate	0.10	%	(4.15	)%	0.23	%
Effect of permanent differences	0.04	%	(1.58	)%	0.05	%
Other discrete items	0.26	%	(24.97	)%	(0.22	)%
Effective income tax rate	(35.84	)%	0.82	%	3.07	%

Schedule of Deferred Tax Assets and Liabilities

The following table summarizes the deferred income tax assets and liabilities as follows (in thousands):



	December 31, 2017		December 31, 2016
Deferred income tax assets:
Net operating loss carryforwards	$	197,089	$	273,055
Passive activity loss carryforwards	7		12
Allowance for losses	622		4,250
Derivative instruments	1,529		5,514
Deferred income	261		35
Accrued liabilities and other payables	631		2,233
Total gross deferred tax assets	200,139		285,099
Less: Valuation allowance	—		(286		)
Net deferred tax assets	$	200,139	$	284,813

Deferred income tax liabilities:
Accelerated depreciation	$	382,961	$	516,472
Goodwill and other intangible amortization	2,141		2,639
Derivative instruments	790		287
Deferred income	27,347		71,359
Deferred partnership income (TCI)	1,134		1,765
Other	1,205		9,607
Total gross deferred tax liability	415,578		602,129
Net deferred income tax liability	$	215,439	$	317,316