Semiconductor Equipment & Materials Intl

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“Semi is a not-for-profit trade association recognized by the irs and ftb as exempt from federal and state income taxes in the united states. However, certain activities in other countries, such as trade shows, are subject to foreign income taxes on income generated in their respective jurisdictions. Accordingly, foreign income taxes are included in general and administrative expenses for regional offices in the accompanying consolidated statements of activities and changes in net assets. Net income tax expense was as follows for the years ended december 31 (in thousands): 2018 2017 current $520 $230 deferred (40) 30 -------------------------------- $480 $260 net deferred tax assets included in deferred events, standards and information revenues on the consolidated statements of financial position approximated $150,000 and $110,000 at december 31, 2018 and 2017, respectively. The amounts consist principally of deferred revenues and deferred expenses related to exhibitions, accruals, and depreciation. No valuation allowance was recorded at december 31, 2018 and 2017, as the group concluded that all of the deferred tax assets will be realized in future years. Net deferred assets are recorded as deferred expenses and other current assets on the consolidated statements of financial position and any change is recorded as general and administrative expenses for international offices on the statement of activities and changes in net assets. Additionally, semi generates unrelated business income, primarily from its advertising activities. These activities have historically generated losses and semi has accumulated net operating loss carryforwards ("nols"). As of december 31, 2018 and 2017, semi had nols of approximately $5,475,000 and $5,450,000. There is no limitation on the use of these nols and they will begin to expire in 2022. Semi's ability to utilize the nols or realize any benefits is uncertain, and therefore a full valuation allowance has been applied against them. On december 22, 2017, the tax cuts and jobs act (the "2017 tax act") was enacted. The 2017 tax act includes a number of changes to existing u.s. Tax laws that impact the company, most notably a reduction of the u.s. Corporate income tax rate from 35 percent to 21 percent for tax years beginning after december 31, 2017. The company measures deferred tax assets and liabilities using enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. Accordingly, the companys deferred tax assets and liabilities were re-measured to reflect the reduction in the u.s. Corporate income tax rate from 35 percent to 21 percent. The 2017 tax act also changed the rules relative to utilization of net operating losses (nols). For tax years ending before 2018, nols incurred in one year could be carried back against an entitys income in each of the immediately prior two taxable years. Any nol not absorbed in the carryback period could then be carried forward to be applied against the income of subsequent tax years, subject to a 20-year expiration period. For years ending after 2017, the ability to carry nols back has been eliminated. Additionally, the nols carried forward can only be applied against the net taxable income from the same activity which generated those nols, and such application is limited to 80% of such net taxable income. Nol carryforwards from years ending prior to 2018 can still be utilized against 100% of the taxable income in subsequent tax years, until such carryforwards are fully utilized or expire. The group's total gross unrecognized tax benefits are classified as non-current liabilities in the consolidated statements of financial position. As of december 31, 2018 and 2017, the total amount of gross unrecognized tax benefits was approximately $646,000 and $788,000, respectively, which results entirely from foreign taxes and is included in other long-term liabilities in the consolidated statement of financial”