Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income (Loss) before Income Taxes for Domestic and Foreign Operations

Income (loss) before income taxes for domestic and foreign operations is as follows:

	Years Ended December 31,
	2019		2018			2017
	(in thousands)
Domestic	$	34,161	$	31,379		$	(8,386	)
Foreign	94		(118		)	(1,175		)
Total income (loss) before income taxes	$	34,255	$	31,261		$	(9,561	)

Components of Income Tax Expense (Benefit)

Components of income tax expense (benefit) consist of the following:

	Years Ended December 31,
	2019		2018		2017
	(in thousands)
Current
Federal	$	—	$	—	$	—
State and local	—		—		—
Total current income tax expense (benefit)	$	—	$	—	$	—
Deferred
Federal	$	2,693	$	1,939	$	(978	)
State and local	20		4		(3		)
Total deferred income tax expense (benefit)	$	2,713	$	1,943	$	(981	)
Total income tax expense (benefit)	$	2,713	$	1,943	$	(981	)

Reconciliation of the U.S. Statutory Tax Rate to the Effective Income Tax Rate

A reconciliation of the U.S. statutory tax rate to the effective income tax rate is presented below:

	Years Ended December 31,
	2019		2018		2017
U.S. statutory tax rate	21.0	%	21.0	%	35.0	%
Rate effect from pass-through entity	(13.9	)	(17.0	)	(34.8	)
Partnership outside basis difference	—		—		26.2
Rate change impact due to tax reform	—		—		(7.0	)
Other	0.8		2.2		(9.2	)
Effective income tax rate	7.9	%	6.2	%	10.2	%

Significant Components of Deferred Tax Assets and Liabilities

Significant components of Switch, Inc.’s deferred tax assets and liabilities were as follows as of:

	December 31,
	2019		2018
	(in thousands)
Deferred tax assets:
Investment in partnership	$	93,089	$	22,601
Net operating loss carryforwards	21,283		5,949
	114,372		28,550
Less: valuation allowance	—		—
	$	114,372	$	28,550
Deferred tax liabilities:
Other	$	—	$	—
	$	—	$	—
Net deferred tax assets	$	114,372	$	28,550