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Income Taxes
 12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
The components of income (loss) before income taxes are as follows: 
 Year Ended December 31,
(in thousands)202120202019
Domestic$(125,010)$(306,354)$(271,515)
Foreign119,301 (192,543)(59,306)
Income (loss) before income taxes
$(5,709)$(498,897)$(330,821)
The components of the income tax provision (benefit) applicable for domestic and foreign taxes and cash taxes paid are as follows: 
 Year Ended December 31,
(in thousands)202120202019
Current income tax expense (benefit):
Domestic$974 $(32,743)$(7,571)
Foreign44,422 34,755 37,462 
Total current income tax expense (benefit)45,396 2,012 29,891 
Deferred income tax expense (benefit):
Domestic(328)(9,192)(10,860)
Foreign(1,470)5,034 (1,408)
Total deferred income tax expense (benefit)(1,798)(4,158)(12,268)
Total income tax expense (benefit)$43,598 $(2,146)$17,623 
Cash taxes paid, net$29,204 $26,264 $29,806 
The reconciliation between the actual income tax provision and income tax computed using the U.S. statutory federal income tax rate is summarized as follows:
Year Ended December 31,
(in thousands)202120202019
Income tax provision (benefit) at the U.S. statutory rate$(1,199)$(104,769)$(69,472)
Tax Act - net mandatory repatriation tax— — (8,220)
CARES Act — (4,681)— 
Permanent differences for goodwill impairments— 50,435 — 
Valuation allowances33,068 46,650 74,553 
Foreign tax rate differential8,619 6,088 18,439 
Stock compensation542 1,032 989 
Uncertain tax positions158 (5,939)3,046 
Other items, net2,410 9,038 (1,712)
Total provision (benefit) for income taxes$43,598 $(2,146)$17,623 
Significant components of net deferred tax assets and liabilities were as follows: 
 December 31,
(in thousands)20212020
Deferred tax assets:
Deferred compensation$17,169 $16,761 
Deferred income7,604 1,958 
Accrued expenses23,555 27,864 
Net operating loss and other carryforwards551,724 521,757 
Long-term operating lease liabilities34,728 40,417 
Goodwill and intangibles19,623 19,357 
Interest31,898 27,359 
Other27,667 14,045 
Gross deferred tax assets713,968 669,518 
Valuation allowances(679,242)(592,516)
Total deferred tax assets$34,726 $77,002 
Deferred tax liabilities:
Property and equipment$7,185 $1,343 
Basis difference in equity investments1,948 2,348 
Right-of-use operating lease assets26,968 28,519 
Interest— 47,785 
Total deferred tax liabilities$36,101 $79,995 
Net deferred income tax liability$1,375 $2,993 
Our net deferred tax liability is reflected within our balance sheet as follows: 
 December 31,
(in thousands)20212020
Deferred tax liabilities included in other long-term liabilities$1,375 $2,993 
Net deferred income tax liability$1,375 $2,993 
As of December 31, 2021, we had approximately $508 million of deferred tax assets related to net operating and other loss carryforwards that were generated in various worldwide jurisdictions. The carryforwards include $197 million that do not expire and $311 million that will expire from 2022 through 2040. We have recorded a total valuation allowance of $679 million on net operating loss and tax credit carryforwards, as well as other deferred tax assets, as our management believes that it is more likely than not that these deferred tax assets will not be realized.
The following is a reconciliation of the beginning and ending amounts of our valuation allowances:
Year Ended December 31,
(in thousands)202120202019
Balance at beginning of year$(592,516)$(277,258)$(203,040)
Increase due principally to net operating losses(83,908)(300,748)(59,596)
(Increase) decrease due to foreign tax and business credit carryforwards(5,761)(14,510)(14,622)
Reduction due to utilization of foreign tax credits generated in prior years2,943 — — 
Balance at end of year$(679,242)$(592,516)$(277,258)
On March 27, 2020, the U.S. Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") was signed into law in the United States. In accordance with the rules and procedures under the CARES Act, we filed a certain refund claim to carry back a portion of our U.S. net operating loss. Prior to enactment of the CARES Act, such net operating losses could only be carried forward. As a result, we expect to receive combined refunds of approximately $33 million, of which we have received $10 million as of December 31, 2021. The remaining refunds are classified as accounts receivable, net, in the consolidated balance sheet as of December 31, 2021. In 2020, we also realized a non-cash tax benefit of $8.4 million due to the carryback provision of the CARES Act recognized as a reduction in long-term liabilities.
We continue to make an assertion to indefinitely reinvest the unrepatriated earnings of any foreign subsidiary that would incur material tax consequences upon the distribution of such earnings. As of December 31, 2021, we did not provide for deferred taxes on earnings of our foreign subsidiaries that are indefinitely reinvested. If we were to make a distribution from the unremitted earnings of these subsidiaries, we could be subject to taxes in various jurisdictions. However, it is not practical to estimate the amount of tax that could ultimately be due if such earnings were remitted. If our expectations were to change regarding future tax consequences, we may be required to record additional deferred taxes that could have a material effect on our consolidated financial statements.
We recognize the expense or benefit for an uncertain tax position if it is more likely than not to be sustainable upon audit by the applicable taxing authority. If this threshold is met, the uncertain tax position is then measured and recognized at the largest amount that we believe is greater than 50% likely of being realized upon ultimate settlement. We account for any applicable interest and penalties on these positions as a component of our provision for income taxes in our consolidated financial statements.
A reconciliation of the beginning and ending amount of gross uncertain tax positions, excluding penalties and interest, is as follows: 
 Year Ended December 31,
(in thousands)202120202019
Balance at beginning of year$20,086 $16,911 $14,971 
Additions based on tax positions related to the current year1,934 2,229 3,662 
Reductions for expiration of statutes of limitations(784)(628)(2,835)
Additions based on tax positions related to prior years2,011 1,830 2,060 
Reductions based on tax positions related to prior years(2,818)(68)(563)
Settlements(3,062)(188)(384)
Balance at end of year$17,367 $20,086 $16,911 
We increased (decreased) income tax expense by $(1.1) million, $(1.2) million and $1.4 million in 2021, 2020 and 2019, respectively, for penalties and interest on uncertain tax positions, which brought our total liabilities for penalties and interest on uncertain tax positions to $3.4 million and $4.5 million in other long-term liabilities on our balance sheets as of December 31, 2021 and 2020, respectively. All additions or reductions to those liabilities would affect our effective income tax rate in the periods of change.
We believe approximately $7.0 million to $8.0 million of gross uncertain tax positions will be resolved within the next 12 months. A portion of our uncertain tax position liability is reflected as a reduction in our gross deferred tax asset before valuation allowance and the remaining balance is reflected in other long-term liabilities on our consolidated balance sheet.  The balance of gross uncertain tax position liability included in other long-term liabilities on our consolidated balance sheet was $11 million and $10 million as of December 31, 2021 and December 31, 2020, respectively.  The balance of gross uncertain tax position liability netted against our gross deferred tax asset before valuation allowance was $6.0 million and $9.6 million as of December 31, 2021 and December 31, 2020, respectively. 
Our tax returns are subject to audit by taxing authorities in multiple jurisdictions. These audits often take years to complete and settle. The following table lists the earliest tax years open to examination by tax authorities where we have significant operations: 
JurisdictionPeriods
United States2014
United Kingdom2019
Norway2016
Angola2013
Brazil2017
Australia2017