Income Taxes (Tables)

6 Months Ended

Jun. 30, 2020

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Our income tax expense (benefit) for the three and six months ended June 30, 2020 and 2019 consisted of the following:



	Three Months Ended June 30							Six Months Ended June 30
	2020				2019			2020				2019
Federal current	$	(57	)		116			$	—			$	116
Federal deferred	(827		)		428			(1,926		)		621
Foreign current	414				476			1,102				596
Foreign deferred	199			⁽¹⁾	1,320		⁽¹⁾	1,236			⁽¹⁾	1,435		⁽¹⁾
State current	7				22			16				41
State deferred	16				2			80				94
Total income tax expense (benefit)	$	(248	)		$	2,364		$	508			$	2,903

(1)

Due to the sale of 50% of our interests to funds managed by Blackstone (Note 2), we are no longer able to assert indefinite reinvestment in CityOn.Xi'an and CityOn.Zhengzhou. The foreign deferred tax expense (10% tax rate) is related to an excess of the Investment in the UJVs under GAAP accounting over the tax basis of our investments. During the three and six months ended June 30, 2020, we recognized $0.2 million and $1.3 million of foreign deferred tax expense, respectively, and recognized $1.7 million of foreign deferred tax expense for both the three and six months ended June 30, 2019.

Deferred tax assets and liabilities

Deferred tax assets and liabilities as of June 30, 2020 and December 31, 2019 were as follows:



	2020				2019
Deferred tax assets:
Federal	$	1,845		⁽¹⁾	$	4,385		⁽²⁾
Foreign	2,147				2,020
State	1,657				1,388
Total deferred tax assets	$	5,649			$	7,793
Valuation allowances	(3,167		)	⁽³⁾	(2,761		)	⁽⁴⁾
Net deferred tax assets	$	2,482			$	5,032
Deferred tax liabilities:
Foreign ⁽⁵⁾	$	5,405			$	4,449
Total deferred tax liabilities	$	5,405			$	4,449


(1)	The Federal deferred tax asset is net of Federal deferred tax liabilities and includes a $2.8 million Federal investment tax credit carryforward.


(2)	Includes a $4.4 million Federal investment tax credit carryforward.


(3)	Includes a $1.8 million valuation allowance against Foreign deferred tax assets, and a $1.4 million valuation allowance against State deferred tax assets.


(4)	Includes a $1.7 million valuation allowance against Foreign deferred tax assets, and a $1.1 million valuation allowance against State deferred tax assets.


(5)	The foreign deferred tax liability relates to shareholder level withholding taxes from Korea and China on undistributed profits and an excess of the Investments in the UJVs under GAAP accounting over the tax basis of our investments.