INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Losses Before Income Taxes Derived from United States and Non-U.S. Operations

Losses before income taxes derived from United States and non-U.S. operations are as follows:

		Successor									Predecessor
								Period from			Period from
		Year			Year			August 1, 2017			April 1, 2017
		Ended			Ended			through			through
		December 31,			December 31,			December 31,			July 31,
(In thousands)		2019			2018			2017			2017
Non-U.S.	$		(44,205	)		(99,607	)		(5,137	)		(1,603,788	)
United States			(69,290	)		(53,912	)		(31,550	)		(44,355	)
	$		(113,495	)		(153,519	)		(36,687	)		(1,648,143	)

Income Tax Expense (Benefit)

Income tax expense (benefit) consists of the following:

	U.S.
(In thousands)	Federal			State		Non-U.S.			Total
Period from April 1, 2017 through July 31, 2017 (Predecessor)
Current	$	(822	)		3		5,128			4,309
Deferred		(5,543	)		—		—			(5,543	)
	$	(6,365	)		3		5,128			(1,234	)
Period from August 1, 2017 through December 31, 2017 (Successor)
Current	$	11			—		2,028			2,039
Deferred		—			—		—			—
	$	11			—		2,028			2,039
Year Ended December 31, 2018 (Successor)
Current	$	962			—		16,718			17,680
Deferred		531			250		(209	)		572
	$	1,493			250		16,509			18,252
Year Ended December 31, 2019 (Successor)
Current	$	649			—		26,403			27,052
Deferred		672			—		—			672
	$	1,321			—		26,403			27,724

Tax Rate Applicable to Pre-Tax Earnings

The actual income tax expense above differs from the amounts computed by applying the U.S. federal statutory tax rate of 21% for periods beginning January 1, 2018 and 35% for periods ending prior to January 1, 2018 to pre-tax earnings as a result of the following:

	Successor									Predecessor
							Period from			Period from
	Year Ended			Year Ended			August 1, 2017			April 1, 2017
	Ended			Ended			through			through
(In thousands)	December 31, 2019			December 31, 2018			December 31, 2017			July 31, 2017
Computed “expected” tax benefit	$	(23,834	)		(32,239	)		(12,840	)		(576,850	)
Increase (reduction) resulting from:
Foreign income taxed at different rates		9,283			20,917			1,767			448,805
Uncertain tax positions		5,145			2,264			(3,219	)		4,674
Chapter 11 reorganization		—			—			—			50,428
Nondeductible transaction costs		—			1,091			—			2,628
Transition tax		—			—			15,120			—
Valuation allowance – deferred tax assets		15,707			38,778			(28,387	)		69,278
Amortization of deferrals associated with intercompany sales to foreign tax jurisdictions		—			—			11			(822	)
Foreign taxes		20,778			13,012			845			(1,342	)
State taxes		—			246			—			3
Return to accrual		(2,247	)		(28,176	)		835			668
162(m) - Executive compensation		28			2,818			—			—
Subpart F income		1,227			—			—			—
Other, net		1,637			(459	)		646			1,296
Remeasurement of deferred taxes		—			—			27,261			—
	$	27,724			18,252			2,039			(1,234	)

Schedule of 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 as follows:

	Successor
	December 31,			December 31,
(In thousands)	2019			2018
Deferred tax assets:
Accrued employee benefit plan costs	$	7,422			7,607
Stock based compensation		972			786
Net operating loss and tax credit carryforwards		99,281			102,190
Restructuring fees not currently deductible for tax purposes		2,264			3,113
Disallowed business interest expense carryforward		5,105			2,936
Other		3,380			5,890
Gross deferred tax assets		118,424			122,522
Less valuation allowance		(103,496	)		(106,447	)
Net deferred tax assets		14,928			16,075
Deferred tax liabilities:
Depreciation and amortization		(11,246	)		(11,149	)
Outside basis difference deferred tax liability		(2,892	)		(2,891	)
Other		(2,981	)		(3,553	)
Gross deferred tax liabilities		(17,119	)		(17,593	)
Net deferred tax assets (liabilities)	$	(2,191	)		(1,518	)

Schedule of Uncertain Tax Positions and Income Tax Payable

Our balance sheet reflects the following in accordance with ASC 740:

	Successor
	December 31,			December 31,
(In thousands)	2019			2018
Tax liabilities for uncertain tax positions	$	48,578			43,790
Income tax payable		13,760			9,387
Income tax (receivable)		(3,798	)		(9,245	)

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of all unrecognized tax benefits, and the liability for uncertain tax positions (but excluding related penalties and interest) are as follows:

(In thousands)
Balance at March 31, 2017 (Predecessor)	$	400,818
Additions based on tax positions related to the current year		2,050
Settlement and lapse of statute of limitations		—
Balance at July 31, 2017 (Predecessor)	$	402,868

(In thousands)
Balance at August 1, 2017 (Successor)	$	402,868
Additions based on tax positions related to the current year		170
Additions based on tax positions related to a prior year		2,578
Settlement and lapse of statute of limitations		(1,045	)
Reductions based on tax positions related to a prior year		—
Balance at December 31, 2017 (Successor)	$	404,571
Additions from GulfMark business combination		8,857
Additions based on tax positions related to the current year		—
Additions based on tax positions related to a prior year		6,903
Settlement and lapse of statute of limitations		(2,953	)
Reductions based on tax positions related to a prior year		(18,086	)
Balance at December 31, 2018 (Successor) (A)	$	399,292
Additions based on tax positions related to the current year		14,741
Additions based on tax positions related to a prior year		1,964
Settlement and lapse of statute of limitations		(1,897	)
Reductions based on tax positions related to a prior year		(58	)
Balance at December 31, 2019 (Successor) (A)	$	414,042

(A)

The gross balance reported as uncertain tax positions is largely offset by $387 million of foreign tax credits and other tax attributes.