Entity information:
Income Taxes
As discussed in Note 1, the Partnership was converted into a limited liability company on October 12, 2016 and the membership interests in the limited liability company were contributed to the Company. As a result, the Company filed a consolidated return for the period October 12, 2016 through December 31, 2016. Prior to the conversion, the Partnership, other than Sand Tiger, was not subject to corporate income taxes.
The components of income tax expense (benefit) attributable to the Company for the year ended December 31, 2017, 2016 and 2015, respectively, are as follows (in thousands):
 
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
U.S. current income tax expense
 
$
804

 
$
2,307

 
$
13

U.S. deferred income tax (benefit) expense
 
(27,764
)
 
47,957

 
(5,626
)
Foreign current income tax expense
 
36,565

 
3,594

 
3,879

Foreign deferred income tax (benefit) expense
 
(6,773
)
 
27

 
145

Total
 
$
2,832

 
$
53,885

 
$
(1,589
)


A reconciliation of the statutory federal income tax amount to the recorded expense is as follows (in thousands):
 
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
Income (loss) before income taxes, as reported
 
$
61,796

 
$
(38,568
)
 
$
(23,409
)
Bargain purchase gain, net of tax
 
(4,012
)
 
—

 
—

Income (loss) before income taxes, as taxed
 
57,784

 
(38,568
)
 
(23,409
)
Statutory income tax rate
 
35
%
 
35
%
 
35
%
Expected income tax expense (benefit)
 
20,224

 
(13,499
)
 
(8,193
)
Income earned as non-taxable entity (See Note 2)
 
—

 
15,167

 
—

Effect due to change to C corporation (See Note 2)
 
—

 
53,089

 
—

Change in entity status
 
—

 
—

 
(4,792
)
Non taxable entity
 
—

 
—

 
13,562

Change in tax rate
 
(21,309
)
 
(25
)
 
—

Tax reform - unrepatriated foreign earnings
 
(9,727
)
 
—

 
—

Foreign income tax rate differential
 
6,286

 
(1,078
)
 
(1,370
)
Foreign earnings not in reported income
 
22,054

 
—

 
—

Foreign tax credits
 
(29,551
)
 
—

 
—

Other permanent differences
 
503

 
210

 
—

State tax expenses
 
39

 
21

 
—

Other
 
(1,192
)
 
—

 
(796
)
Change in valuation allowance
 
15,505

 
—

 
—

Total
 
$
2,832

 
$
53,885

 
$
(1,589
)


On December 22, 2017, the United States enacted the Tax Act. The Tax Act significantly changes US corporate income tax laws by, among other things, reducing the US corporate income tax rate from 35% to 21% starting in 2018 and creating a territorial tax system with a one-time mandatory tax on previously deferred foreign earnings of US subsidiaries. Under the accounting rules, companies are required to recognize the effects of changes in tax laws and tax rates on deferred tax assets and liabilities in the period in which the new legislation is enacted. The effects of the Tax Act on the Company include (i) remeasurement of deferred taxes and (ii) recognition of liabilities for taxes on mandatory deemed repatriation. As a result of the Tax Act, the Company recorded a credit of $31.0 million during the fourth quarter of 2017. This amount, which is included in Provision (benefit) for income taxes in the Consolidated Statements of Comprehensive Income (Loss), consists of two components: (i) a $21.3 million credit resulting from the remeasurement of the Company's net deferred tax liabilities in the US based on the new lower corporate income tax rate, and (ii) a $9.7 million credit related to a reversal of deferred liabilities for unrepatriated foreign earnings.

The SEC staff issued Staff Accounting Bulletin No. 118 in December 2017, which allows registrants to record provisional amounts for effects of the Tax Act during a one-year measurement period. The Company has completed its accounting for the re-measurement of deferred taxes from the previous rate of 35% to the new rate of 21%. As not all of the necessary information to analyze all income tax effects of the Tax Act related to the recognition of liabilities for taxes on mandatory repatriation is currently available, the amounts recorded related to deemed repatriation of Sand Tiger's earnings in Canada are provisional amounts, which are believed represents a reasonable estimate of the accounting implications of this tax reform. The Company will continue to evaluate the Tax Act and adjust the provisional amounts as additional information is obtained. The ultimate impact of tax reform may differ from the provisional amounts due to changes in interpretations and assumptions, as well as additional regulatory guidance that may be issued. The Company expects to complete its detailed analysis no later than the fourth quarter of 2018.

Deferred tax liabilities attributable to the Company consisted of the following (in thousands):
 
 
Year Ended December 31,
 
 
2017
 
2016
Deferred tax assets:
 
 
 
 
Allowance for doubtful accounts
 
$
11,973

 
$
1,893

Deferred compensation
 
1,032

 
1,687

Accrued liabilities
 
1,442

 
601

Foreign tax credits
 
15,505

 
145

Other
 
1,448

 
1,786

Valuation allowance
 
(15,505
)
 
—

Deferred tax assets
 
15,895

 
6,112

 
 
 
 
 
Deferred tax liabilities:
 
 
 
 
Property and equipment
 
$
(40,390
)
 
$
(42,526
)
Intangible assets
 
(2,839
)
 
(7,663
)
Unrepatriated foreign earnings
 
—

 
(3,451
)
Other
 
(74
)
 
(143
)
Deferred tax liabilities
 
(43,303
)
 
(53,783
)
Net deferred tax liability
 
$
(27,408
)
 
$
(47,671
)
 
 
 
 
 
Reflected in accompanying balance sheet as:
 
 
 
 
Deferred income tax asset
 
$
6,739

 
$
—

Deferred income tax liability
 
(34,147
)
 
(47,671
)
Total
 
$
(27,408
)

$
(47,671
)

During the year ended December 31, 2017, the Company recorded a valuation allowance of $15.5 million related to foreign tax credits that are not expected to be utilized.