Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Income before Income Tax, Domestic and Foreign

The components of income before income tax expense for the years ended December 31, 2018, 2017 and 2016 are as follows (in thousands):



	2018		2017		2016
United States	$	61,680	$	28,632	$	6,233
Other countries	43,614		70,602		69,646
Income before income tax expense	$	105,294	$	99,234	$	75,879

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense for the years ended December 31, 2018, 2017 and 2016 are as follows (in thousands):



	2018			2017			2016
Current:
United States	$	13,198		$	10,699		$	(2,469	)
Other countries	10,132			9,147			16,640
State and provincial	1,548			725			600
Total current	24,878			20,571			14,771
Deferred:
United States	(1,340		)	(2,948		)	1,844
Other countries	1,909			626			(5,845		)
State and provincial	—			—			85
Total deferred	569			(2,322		)	(3,916		)
Income tax expense	$	25,447		$	18,249		$	10,855

Schedule of Effective Income Tax Rate Reconciliation

The differences in income tax expense computed using the Netherlands statutory income tax rate of 25% in 2018, 2017 and 2016 and our income tax expense as reported in the accompanying Consolidated Statements of Operations for the years ended December 31, 2018, 2017 and 2016 are as follows (in thousands):



	2018			2017			2016
Tax at the Netherlands income tax rate	$	26,189		$	25,427		$	18,652
International earnings taxed at rates other than the Netherlands statutory rate	(14,997		)	(12,496		)	(16,840		)
Non-deductible expenses	4,452			6,645			3,043
Change in valuation allowance	1,513			(1,744		)	(899		)
State and provincial taxes	1,566			829			600
Adjustments of prior year taxes	2,350			(4,272		)	2,412
Adjustments of income tax reserves	(1,613		)	1,869			(604		)
Foreign exchange	5,936			(1,792		)	3,381
Accrued withholding taxes	2,911			3,067			246
Other	(2,860		)	716			864
Income tax expense	$	25,447		$	18,249		$	10,855

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities as of December 31, 2018 and 2017 are summarized as follows (in thousands):



	2018			2017
Deferred tax assets:
Net operating loss carry-forwards	$	6,300		$	7,976
Tax credit carry-forwards	1,154			1,002
Accruals for compensation	7,160			9,399
Accruals for inventory capitalization	1,813			1,909
Unrealized benefit plan loss	3,417			4,006
Unrealized foreign exchange	7,542			5,932
Unearned revenue	2,760			2,649
Other	822			580
Total deferred tax assets	30,968			33,453
Valuation allowance (1)	(9,732		)	(8,219		)
Net deferred tax assets	21,236			25,234
Deferred tax liabilities:
Intangibles	(6,025		)	(5,939		)
Property, plant and equipment	(2,835		)	(2,968		)
Accrued interest	(3,260		)	(4,885		)
Accruals for compensation	—			(1,501		)
Accrued withholding taxes	(886		)	(2,191		)
Unrealized foreign exchange	(4,043		)	(1,995		)
Other	(569		)	(359		)
Total deferred tax liabilities	(17,618		)	(19,838		)
Net deferred income taxes	$	3,618		$	5,396

	2018			2017
Long-term deferred tax assets	$	11,252		$	10,719
Long-term deferred tax liabilities	(7,634		)	(5,323		)
Total deferred tax assets (liabilities)	$	3,618		$	5,396

(1) Valuation allowance at 12/31/16 was $10.0 million.

Summary of Income Tax Contingencies

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):



	2018			2017			2016
Unrecognized tax benefits at January 1,	$	10,124		$	8,557		$	9,964
Tax positions, current period	543			3,472			983
Tax positions, prior period	(304		)	180			83
Settlements with taxing authorities	(2,207		)	(1,154		)	(1,657		)
Lapse of applicable statute of limitations	(685		)	(931		)	(816		)
Unrecognized tax benefits at December 31,	$	7,471		$	10,124		$	8,557