INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

The components of our tax provision (benefit) on continuing operations were as follows (in thousands):



	Current			Deferred			Total
Twelve months ended December 31, 2017:
U.S. Federal	$	6,177		$	(42,516	)	$	(36,339	)
State & local	170			(4,819		)	(4,649		)
Foreign jurisdictions	6,821			795			7,616
	$	13,168		$	(46,540	)	$	(33,372	)
Twelve months ended December 31, 2016:
U.S. Federal	$	(2,048	)	$	(5,262	)	$	(7,310	)
State & local	(1,338		)	206			(1,132		)
Foreign jurisdictions	4,529			820			5,349
	$	1,143		$	(4,236	)	$	(3,093	)
Seven months ended December 31, 2015:
U.S. Federal	$	(4	)	$	1,667		$	1,663
State & local	90			187			277
Foreign jurisdictions	2,128			505			2,633
	$	2,214		$	2,359		$	4,573
Twelve months ended May 31, 2015:
U.S. Federal	$	17,183		$	606		$	17,789
State & local	2,634			(141		)	2,493
Foreign jurisdictions	3,598			(1,087		)	2,511
	$	23,415		$	(622	)	$	22,793

Components of Pre-Tax Income (Loss)

The components of pre-tax income (loss) from continuing operations for the years ended December 31, 2017 and 2016, the seven months ended December 31, 2015 and the year ended May 31, 2015 were as follows (in thousands):



	Twelve Months Ended December 31,						Seven Months Ended December 31,		Twelve Months Ended May 31,
	2017			2016			2015		2015
Domestic	$	(149,045	)	$	(25,488	)	$	6,627	$	51,784
Foreign	11,512			9,830			6,824		11,506
	$	(137,533	)	$	(15,658	)	$	13,451	$	63,290

Income Tax Expense (Benefit) Attributable to Income (Loss) from Continuing Operations Differed from Amounts Computed by Federal Income Tax Rate

Income tax expense (benefit) attributable to income (loss) from continuing operations differed from the amounts computed by applying the U.S. Federal income tax rate of 35% to pre-tax income (loss) from continuing operations as a result of the following (in thousands):



	Twelve Months Ended December 31,						Seven Months Ended December 31,			Twelve Months Ended May 31,
	2017			2016			2015			2015
Pre-tax income (loss) from continuing operations	$	(137,533	)	$	(15,658	)	$	13,451		$	63,290
Computed income taxes at statutory rate	(48,136		)	(5,481		)	4,710			22,153
State income taxes, net of federal benefit	(4,709		)	(713		)	258			1,670
Foreign tax rate differential	(642		)	(707		)	(648		)	(1,318		)
Production activity deduction	—			—			(10		)	(136		)
Deferred taxes on investment in foreign subsidiaries	(17,079		)	1,777			(335		)	819
Non-deductible expenses	1,030			871			335			513
Foreign tax credits	(17,445		)	(2,302		)	(19		)	(11		)
Other tax credits	(631		)	(1,033		)	(446		)	(223		)
Deemed repatriation tax	24,374			—			—			—
Goodwill impairment	19,442			—			—			—
Dividend from foreign subsidiaries	—			2,021			—			—
Valuation allowance	20,955			1,986			771			(394		)
Rate change	(17,360		)	—			—			—
Other	6,829			488			(43		)	(280		)
Total provision (benefit) for income tax on continuing operations	$	(33,372	)	$	(3,093	)	$	4,573		$	22,793

Tax Effects of Temporary Differences that Give Rise to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below (in thousands):



	December 31,
	2017			2016
Deferred tax assets:
Accrued compensation and benefits	$	9,810		$	12,559
Receivables	2,381			3,856
Inventory	873			3,539
Stock options	738			1,526
Foreign currency translation and other equity adjustments	2,945			6,359
Other accrued liabilities	3,066			5,811
Tax credit carry forward	2,588			4,769
Net operating loss carry forwards	35,185			25,061
Other	2,066			4,227
Deferred tax assets	59,652			67,707
Less: Valuation allowance	(26,185		)	(13,168		)
Deferred tax assets, net	33,467			54,539
Deferred tax liabilities:
Property, plant and equipment	(20,918		)	(28,700		)
Goodwill and intangible costs	(27,762		)	(43,737		)
Unremitted earnings of foreign subsidiaries	(13,795		)	(51,087		)
Convertible debt	(3,622		)	—
Other	(679		)	(1,602		)
Deferred tax liabilities	(66,776		)	(125,126		)
Net deferred tax liability	$	(33,309	)	$	(70,587	)

Reconciliation of Changes in Unrecognized Tax Benefits Associated with Uncertain Tax Positions

Set forth below is a reconciliation of the changes in our unrecognized tax benefits associated with uncertain tax positions (in thousands):



	Twelve Months Ended December 31,					Seven Months Ended December 31,		Twelve Months Ended May 31,
	2017		2016			2015		2015
Balance at beginning of year	$	858	$	539		$	477	$	715
Acquisition of Furmanite uncertain tax positions	—		660			—		—
Additions based on current year tax positions	—		464			62		—
Additions based on tax positions related to prior years	301		96			—		68
Reductions based on tax positions related to prior years	—		(564		)	—		(306		)
Settlements	—		(337		)	—		—
Reductions resulting from a lapse of the applicable statute of limitations	—		—			—		—
Balance at end of year	$	1,159	$	858		$	539	$	477