Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.19.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2018
INCOME TAXES  
Income (loss) before income taxes

 

 

 

 

 

 

 

 

 

Year Ended December 31,

(in thousands)

 

2018

  

2017

Domestic

 

$

(18,190)

 

$

(35,993)

Foreign

 

 

 —

 

 

(393)

Loss from continuing operations

 

 

(18,190)

 

 

(36,386)

Loss from discontinued operations

 

 

(15,002)

 

 

(25,318)

Loss before income tax expense (benefit)

 

$

(33,192)

 

$

(61,704)

 

Summary of income tax expense (benefit)

 

 

 

 

 

 

 

 

 

Year Ended December 31,

(in thousands)

 

2018

  

2017

Current:

 

 

 

 

 

 

State

 

$

(3)

 

$

(1)

Foreign

 

 

(522)

 

 

404

Total current

 

 

(525)

 

 

403

Deferred:

 

 

 

 

 

 

Federal

 

 

(7,044)

 

 

(7,369)

State

 

 

(194)

 

 

110

Foreign

 

 

 6

 

 

1,675

Total deferred

 

 

(7,232)

 

 

(5,584)

Income tax expense (benefit)

 

$

(7,757)

 

$

(5,181)

 

Income tax expense (benefit) allocated between continuing operations and discontinued operations

 

 

 

 

 

 

 

 

 

Year Ended December 31,

(in thousands)

 

2018

  

2017

Continuing operations

 

$

(4,400)

 

$

(6,367)

Discontinued operations

 

 

(3,357)

 

 

1,186

Income tax expense (benefit)

 

$

(7,757)

 

$

(5,181)

 

Schedule of effective income tax rate for continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

2018

 

2017

(in thousands)

 

Amount

  

Percent

 

Amount

  

Percent

Tax expense (benefit) computed at the maximum U.S. statutory rate

 

$

(3,820)

 

21.0

%

 

$

(12,735)

 

35.0

%

Difference resulting from state income taxes, net of federal income tax benefits

 

 

(483)

 

2.7

%

 

 

(772)

 

2.1

%

Foreign tax rate differences

 

 

 —

 

 —

%

 

 

138

 

(0.4)

%

Deferred tax impacts of the Tax Act

 

 

 —

 

 —

%

 

 

(5,430)

 

14.9

%

Non-deductible business disposition costs

 

 

 —

 

 —

%

 

 

4,266

 

(11.7)

%

Non-deductible expenses, other

 

 

136

 

(0.7)

%

 

 

236

 

(0.6)

%

Transition tax from Tax Act inclusion

 

 

 —

 

 —

%

 

 

2,587

 

(7.1)

%

Change in net operating loss carryforward

 

 

(581)

 

3.2

%

 

 

889

 

(2.4)

%

Change in valuation allowance

 

 

(2,136)

 

11.7

%

 

 

7,165

 

(19.7)

%

Change in accrual for uncertain tax positions

 

 

 —

 

 —

%

 

 

(31)

 

0.1

%

Change in foreign tax credits

 

 

1,811

 

(10.0)

%

 

 

(74)

 

0.2

%

Stock-based compensation (ASU 2016-09)

 

 

 —

 

 —

%

 

 

(2,588)

 

7.1

%

Other, net

 

 

673

 

(3.7)

%

 

 

(18)

 

 —

%

Total tax expense (benefit)

 

$

(4,400)

 

24.2

%

 

$

(6,367)

 

17.5

%

 

Components of deferred income tax assets and liabilities

 

 

 

 

 

 

 

 

 

December 31,

(in thousands)

 

2018

  

2017

Assets:

 

 

 

 

 

 

Cost in excess of identifiable net assets of business acquired

 

$

6,633

 

$

7,534

Reserves and other accruals

 

 

4,328

 

 

5,555

Tax credit carryforwards

 

 

7,819

 

 

12,564

Accrued compensation and benefits

 

 

1,946

 

 

2,509

State net operating loss carryforwards

 

 

10,843

 

 

8,937

Federal net operating loss carryforwards

 

 

47,382

 

 

38,990

Gain/loss on assets held for sale

 

 

1,393

 

 

1,393

Other

 

 

782

 

 

 —

 

 

 

81,126

 

 

77,482

Liabilities:

 

 

 

 

 

 

Indefinite life intangibles

 

 

(10,876)

 

 

(10,075)

Property and equipment

 

 

(248)

 

 

(262)

Other

 

 

 —

 

 

(720)

Net deferred tax assets

 

 

70,002

 

 

66,425

Valuation allowance for net deferred tax assets

 

 

(72,684)

 

 

(76,346)

Net deferred tax liability after valuation allowance

 

$

(2,682)

 

$

(9,921)

 

Reconciliation of unrecognized tax benefits

 

 

 

 

 

 

 

 

 

Year Ended December 31,

(in thousands)

  

2018

  

2017

Unrecognized tax benefits at January 1

 

$

3,328

 

$

4,150

Change in unrecognized tax benefits taken during a prior period

 

 

 —

 

 

(687)

Reductions to unrecognized tax benefits from lapse of statutes of limitations

 

 

(233)

 

 

(135)

Unrecognized tax benefits at December 31

 

$

3,095

 

$

3,328

 

 

 

 

 

 

 

Unrecognized tax benefits from discontinued operations at December 31

 

$

1,194

 

$

1,427

Unrecognized tax benefits from continuing operations at December 31

 

 

1,901

 

 

1,901

 

 

$

3,095

 

$

3,328

 

Presentation of open tax years by jurisdiction

 

 

 

 

 

Tax Jurisdiction

  

Examination in Progress

  

Open Tax Years for Examination

United States

 

None

 

2006 to Present

Mexico

 

None

 

2013 to Present

China

 

None

 

2010 to Present

The Netherlands

 

None

 

2015 to Present