Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

The Company’s income (loss) before income taxes consisted of the following:



	Year Ended December 31,
	2019		2018			2017
	(In thousands)
U.S.	$	38,254	$	(20,066	)	$	24,919
Non-U.S.	26,533		34,179			(179,562		)
Total pre-tax book income (loss)	$	64,787	$	14,113		$	(154,643	)

Components of Income Tax (benefit) Expense

The Company’s income tax expense (benefit) based on income (loss) before income taxes consisted of the following:



	Year Ended December 31,
	2019			2018			2017
	(In thousands)
Current
U.S. federal	$	289		$	(1,462	)	$	(493	)
U.S. state and local	1,527			1,365			1,657
Non-U.S.	7,965			12,292			5,842
Total current	$	9,781		$	12,195		$	7,006

Deferred
U.S. federal	$	7,636		$	1,349		$	732
U.S. state and local	2,715			1,816			874
Non-U.S.	(3,610		)	(4,903		)	(17,904		)
Total deferred	6,741			(1,738		)	(16,298		)
Total income tax expense (benefit)	$	16,522		$	10,457		$	(9,292	)

Computation of Income Tax (Benefit) Expense by Applying U.S. Federal Statutory Tax Rate To Income (Loss) Before Taxes

Income tax expense (benefit) differs from amounts computed by applying the statutory tax rate to income before income taxes as follows:



	Year Ended December 31,
	2019			2018			2017
	(In thousands)
Income tax expense (benefit), at the U.K. statutory tax rate of 19%, 19%, and 19.25% for the years ended December 31, 2019, 2018, and 2017, respectively.	$	12,309		$	2,681		$	(29,769	)
Provision to return and deferred tax adjustments	157			1,017			(264		)
U.S. state tax, net of federal benefit	3,095			637			2,181
Permanent adjustments	606			738			1,411
Tax rates in excess of (less than) statutory tax rates	1,143			2,247			(18,398		)
Impact of Finance Structure	(4,434		)	354			(5,734		)
Nondeductible/(nontaxable) transaction costs	(3,816		)	(425		)	6,743
Goodwill impairment (non-deductible)	1,941			—			41,510
US Tax Reform (net impact)	764			(435		)	(11,569		)
Share-based Compensation	2,223			2,107			(2,464		)
Capital Gains	—			851			—
Other	499			48			(206		)
Subtotal	14,487			9,820			(16,559		)
Change in valuation allowance	2,035			637			7,267
Total income tax expense (benefit)	$	16,522		$	10,457		$	(9,292	)

Net Current and Non-Current Deferred Tax Assets and Liabilities (by Segment)

The Company’s net deferred tax assets and liabilities, by segment, consisted of the following:



	Year Ended December 31, 2019
	North America			Europe & Africa			Australia & New Zealand			Corporate		Total
	(In thousands)
Noncurrent deferred tax asset	$	38,140		$	16,466		$	11,400		$	1,730	$	67,736
Valuation allowance	(5,970		)	(1,427		)	(4,046		)	—		(11,443		)
Noncurrent deferred tax liability	(78,211		)	(4,447		)	(7,354		)	—		(90,012		)
Net noncurrent deferred tax (liability) asset	$	(46,041	)	$	10,592		$	—		$	1,730	$	(33,719	)



	Year Ended December 31, 2018
	North America			Europe & Africa			Australia & New Zealand			Corporate		Total
	(In thousands)
Noncurrent deferred tax asset	$	31,248		$	14,546		$	14,389		$	1,829	$	62,012
Valuation allowance	(2,546		)	(1,442		)	(5,078		)	—		(9,066		)
Noncurrent deferred tax liability	(68,430		)	(7,745		)	(9,311		)	—		(85,486		)
Net noncurrent deferred tax (liability) asset	$	(39,728	)	$	5,359		$	—		$	1,829	$	(32,540	)

Deferred Tax Assets and Deferred Tax Liabilities Components Arising from Temporary Difference

The Company’s tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities consisted of the following:



	December 31, 2019			December 31, 2018
	(In thousands)
Noncurrent deferred tax assets
Reserve for receivables	$	625		$	699
Accrued liabilities and inventory reserves	3,231			5,887
Net operating loss carryforward	31,555			21,733
Unrealized losses on interest rate swap contracts	1,338			25
Share-based compensation expense	3,044			2,609
Asset retirement obligations	1,101			2,481
Tangible and intangible assets	18,491			19,729
Deferred revenue	4,294			2,262
Other	4,057			6,587
Subtotal	67,736			62,012
Valuation allowance	(11,443		)	(9,066		)
Noncurrent deferred tax assets	$	56,293		$	52,946

Noncurrent deferred tax liabilities
Tangible and intangible assets	$	(88,017	)	$	(79,978	)
Asset retirement obligations	(29		)	(30		)
Unrealized gain on interest rate swap contracts	—			(5,048		)
Other	(1,966		)	(430		)
Noncurrent deferred tax liabilities	$	(90,012	)	$	(85,486	)

Net deferred tax liability	$	(33,719	)	$	(32,540	)