Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Income (loss) before taxes, equity earnings was comprised of the following for the years ended December 31:

(amounts in thousands)	2019			2018		2017
Domestic (loss) income	$	(784	)	$	192	$	(7,346	)
Foreign income	120,829			130,919		149,647
Total income before taxes, equity earnings	$	120,045		$	131,111	$	142,301

Significant Components of the Provision for Income Taxes

Significant components of the provision for income taxes are as follows for the years ended December 31:

(amounts in thousands)	2019		2018			2017
Federal	$	5,037	$	(9,760	)	$	11,699
State	935		764			667
Foreign	29,264		34,742			29,228
Current taxes	35,236		25,746			41,594
Federal	11,771		(24,445		)	60,618
State	6,620		(12,760		)	27,241
Foreign	3,447		1,401			8,365
Deferred taxes	21,838		(35,804		)	96,224
Total provision (benefit) for income taxes	$	57,074	$	(10,058	)	$	137,818

Schedule of Effective Income Tax Rate Reconciliation

Reconciliation of the U.S. federal statutory income tax rate to our effective tax rate is as follows for the years ended December 31:

	2019				2018				2017
(amounts in thousands)	Amount			%	Amount			%	Amount			%
Statutory rate	$	25,209		21.0	$	27,515		21.0	$	49,805		35.0
State income tax, net of federal benefit	3,180			2.6	(1,207		)	(0.9)	(4,784		)	(3.4)
Foreign source dividends and deemed inclusions	10,797			9.0	16,295			12.4	86,119			60.5
Valuation allowance	10,144			8.4	(85,876		)	(65.5)	98,156			69.0
Nondeductible expenses	1,276			1.1	1,097			0.8	1,950			1.4
Acquisition of ABS	—			—	(10,189		)	(7.8)	—			—
Equity based compensation	2,526			2.1	54			—	(12,718		)	(8.9)
Deferred benefit on acquisitions	—			—	—			—	(6,201		)	(4.4)
Foreign tax rate differential	1,964			1.6	3,557			2.7	(17,536		)	(12.3)
Tax rate differences and credits	(1,867		)	(1.5)	96,231			73.4	(91,109		)	(64.0)
Uncertain tax positions	1,604			1.3	5,443			4.2	736			0.5
IRS audit adjustments	—			—	—			—	(699		)	(0.5)
Termination of hedge accounting	4,533			3.8	—			—	—			—
U.S. Tax Reform	—			—	(62,836		)	(47.9)	32,414			22.8
Disposition of subsidiary	(2,384		)	(2.0)	—			—	—			—
Other	92			0.1	(142		)	(0.1)	1,685			1.1
Effective rate for continuing operations	$	57,074		47.5%	$	(10,058	)	(7.7)%	$	137,818		96.8%

Schedule of Deferred Tax Assets and Liabilities

Significant deferred tax assets and liabilities are as follows as of December 31:

(amounts in thousands)	2019			2018
Net operating loss and tax credit carryforwards	$	199,889		$	216,563
Operating lease liabilities	54,448			—
Employee benefits and compensation	47,760			50,665
Accrued liabilities and other	38,300			38,764
Inventory	5,842			5,923
Investments and marketable securities	2,768			473
Allowance for doubtful accounts and notes receivable	1,641			1,573
Deferred credits	194			635
Gross deferred tax assets	350,842			314,596
Valuation allowance	(67,664		)	(57,571		)
Deferred tax assets	283,178			257,025
Depreciation and amortization	(55,994		)	(58,441		)
Operating lease assets	(52,635		)	—
Deferred tax liabilities	(108,629		)	(58,441		)
Net deferred tax assets	$	174,549		$	198,584
Balance sheet presentation:
Long-term assets	$	183,837		$	209,062
Long-term liabilities	(9,288		)	(10,478		)
Net deferred tax assets	$	174,549		$	198,584

Summary of Valuation Allowance

The following is the activity in our valuation allowance:

(amounts in thousands)	2019			2018			2017
Balance as of January 1,	$	(57,571	)	$	(144,701	)	$	(40,118	)
Valuation allowances established	(2,001		)	(260		)	—
Changes to existing valuation allowances	(8,043		)	85,828			(105,453		)
Release of valuation allowances	—			—			2,006
Currency translation	(49		)	1,562			(1,136		)
Balance as of December 31,	$	(67,664	)	$	(57,571	)	$	(144,701	)

Summary of Operating Loss Carryforwards

We reduced our income tax payments by utilizing NOL carryforwards of $208.0 million in 2019, $163.7 million in 2018 and $18.6 million in 2017. At December 31, 2019, our federal, state and foreign NOL carryforwards totaled $1,300.8 million, of which $87.0 million does not expire and the remainder expires as follows:

(amounts in thousands)
2020	$	3,517
2021	14,079
2022	16,074
2023	26,845
Thereafter	1,153,300
Total loss carryforwards	$	1,213,815

Summary of Tax Credit Carryforwards

Our tax credit carryforwards expire as follows:

(amounts in thousands)	EZ Credit		R & E credit		Foreign Tax Credit		Work Opportunity & Welfare to Work Credit		State Investment Tax Credits		Tip Credit		TOTAL
2020	$	—	$	—	$	12,975	$	—	$	2	$	—	$	12,977
2021	—		—		14,990		—		26		—		15,016
2022	—		—		1,061		—		11		—		1,072
2023	—		—		5,735		—		1,656		—		7,391
2024	—		—		3,514		—		84		—		3,598
Thereafter	68		9,047		8,801		6,696		86		102		24,800
	$	68	$	9,047	$	47,076	$	6,696	$	1,865	$	102	$	64,854

Summary of Income Tax Contingencies

A reconciliation of the beginning and ending amounts of unrecognized tax benefits excluding interest and penalties is as follows:

(amounts in thousands)	2019			2018			2017
Balance as of January 1,	$	18,951		$	14,519		$	12,054
Increase for tax positions taken during the prior period	197			2,620			252
Decrease for settlements with taxing authorities	(126		)	(157		)	(788		)
(Decrease) increase for tax positions taken during the current period	(96		)	300			107
Currency translation	(318		)	(707		)	1,626
Balance at period end - unrecognized tax benefit	18,607			16,575			13,251
Accrued interest and penalties	1,627			2,376			1,268
	$	20,234		$	18,951		$	14,519