Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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


	Year Ended December 31,
	2020		2019		2018
	(In thousands)
U.S.	$	5,881	$	38,254	$	(20,066)
Non-U.S.	13,708		26,533		34,179
Total pre-tax book income	$	19,589	$	64,787	$	14,113

Components of Income Tax (benefit) Expense

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


	Year Ended December 31,
	2020		2019		2018
	(In thousands)
Current
U.S. federal	$	(20,305)	$	289	$	(1,462)
U.S. state and local	930		1,527		1,365
Non-U.S.	8,059		7,965		12,292
Total current	$	(11,316)	$	9,781	$	12,195

Deferred
U.S. federal	$	13,350	$	7,636	$	1,349
U.S. state and local	886		2,715		1,816
Non-U.S.	(2,468)		(3,610)		(4,903)
Total deferred	11,768		6,741		(1,738)
Total income tax expense	$	452	$	16,522	$	10,457

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

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


	Year Ended December 31,
	2020		2019		2018
	(In thousands)
Income tax expense at the U.K. statutory tax rate of 19% for the years ended December 31, 2020, 2019, and 2018	$	4,057	$	12,309	$	2,681
Provision to return and deferred tax adjustments	(2,857)		157		1,017
U.S. state tax, net of federal benefit	1,615		3,095		637
Permanent adjustments	107		606		738
Tax rates (less than) in excess of statutory tax rates	(1,164)		1,143		2,247
Impact of finance structure	(1,070)		(4,434)		354
Non-deductible/(non-taxable) transaction costs	1,636		(3,816)		(425)
Goodwill impairment (non-deductible)	—		1,941		—
U.S. Tax Reform (net impact)	—		764		(435)
Tax law changes	(9,665)		—		—
Share-based compensation	1,702		2,223		2,107
Capital gains	—		—		851
Other	(128)		499		48
Subtotal	(5,767)		14,487		9,820
Change in valuation allowance	6,219		2,035		637
Total income tax expense	452		16,522		10,457

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, 2020
	North America		Europe & Africa		Australia & New Zealand		Corporate		Total
	(In thousands)
Noncurrent deferred tax asset	$	39,685	$	22,813	$	10,980	$	1,537	$	75,015
Valuation allowance	(11,902)		(3,547)		(3,173)		—		(18,622)
Noncurrent deferred tax liability	(78,865)		(3,823)		(7,807)		—		(90,495)
Net noncurrent deferred tax (liability) asset	$	(51,082)	$	15,443	$	—	$	1,537	$	(34,102)


	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)

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, 2020		December 31, 2019
	(In thousands)
Noncurrent deferred tax assets
Reserve for receivables	$	1,221	$	625
Accrued liabilities and inventory reserves	2,703		3,231
Net operating loss carryforward	25,615		31,555
Unrealized losses on interest rate swap contracts	12,016		1,338
Share-based compensation expense	3,808		3,044
Asset retirement obligations	819		1,101
Tangible and intangible assets	21,561		18,491
Deferred revenue	4,280		4,294
Other	2,992		4,057
Subtotal	75,015		67,736
Valuation allowance	(18,622)		(11,443)
Noncurrent deferred tax assets	$	56,393	$	56,293

Noncurrent deferred tax liabilities
Tangible and intangible assets	$	(87,539)	$	(88,017)
Asset retirement obligations	(30)		(29)
Unrealized gain on interest rate swap contracts	—		—
Other	(2,926)		(1,966)
Noncurrent deferred tax liabilities	$	(90,495)	$	(90,012)

Net deferred tax liability	$	(34,102)	$	(33,719)