Income Tax Expense (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Income before Income Tax, Domestic and Foreign

The components of income before income tax expense for the years ended December 31, 2019, 2018 and 2017 are as follows (in thousands):

	2019		2018		2017
United States	$	61,374	$	61,680	$	28,632
Other countries		20,620		43,614		70,602
Income before income tax expense	$	81,994	$	105,294	$	99,234

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense for the years ended December 31, 2019, 2018 and 2017 are as follows (in thousands):

	2019			2018			2017
Current:
United States	$	8,786		$	13,198		$	10,699
Other countries		13,267			10,132			9,147
State and provincial		(28	)		1,548			725
Total current		22,025			24,878			20,571
Deferred:
United States	$	(57,250	)	$	(1,340	)	$	(2,948	)
Other countries		23,558			1,909			626
State and provincial		(623	)		—			—
Total deferred		(34,315	)		569			(2,322	)
Income tax expense (benefit)	$	(12,290	)	$	25,447		$	18,249

Schedule of Effective Income Tax Rate Reconciliation

The differences in income tax expense computed using the Netherlands statutory income tax rate of 25% and our income tax expense (benefit) as reported in the accompanying Consolidated Statements of Operations for the years ended December 31, 2019, 2018 and 2017 are as follows (in thousands):

	2019			2018			2017
Tax at the Netherlands income tax rate	$	22,895		$	26,189		$	25,427
International earnings taxed at rates other than the Netherlands statutory rate		(1,343	)		(14,997	)		(12,496	)
Non-deductible expenses		3,516			4,452			6,645
Change in valuation allowance		(3,491	)		1,513			(1,744	)
State and provincial taxes		(825	)		1,566			829
Tax credits		(3,893	)		(3,939	)		218
Benefit from corporate restructuring		(59,336	)		—			—
Unremitted earnings of subsidiaries		26,126			—			—
Adjustments of prior year taxes		(1,684	)		2,350			(4,272	)
Adjustments of income tax reserves		1,084			(1,613	)		1,869
Foreign exchange		2,014			5,936			(1,792	)
Accrued withholding taxes		2,603			2,911			3,067
Other		44			1,079			498
Income tax expense (benefit)	$	(12,290	)	$	25,447		$	18,249

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities result from various temporary differences between the financial statement carrying amount and their tax basis. Deferred tax assets and liabilities as of December 31, 2019 and 2018 are summarized as follows (in thousands):

	2019			2018
Deferred tax assets:
Net operating loss carry-forwards	$	7,209		$	6,300
Tax credit carry-forwards		1,888			1,154
Accruals for compensation		8,240			7,160
Accruals for inventory capitalization		1,788			1,813
Unrealized benefit from corporate restructuring		56,985			—
Unrealized benefit plan loss		3,740			3,417
Unrealized foreign exchange		3,842			7,542
Unearned revenue		1,849			2,760
Other		1,839			822
Total deferred tax assets		87,380			30,968
Valuation allowance ⁽¹⁾		(6,241	)		(9,732	)
Net deferred tax assets		81,139			21,236
Deferred tax liabilities:
Intangibles		(6,263	)		(6,025	)
Property, plant and equipment		(3,546	)		(2,835	)
Accrued interest		(1,679	)		(3,260	)
Accrued withholding taxes		(26,718	)		(886	)
Unrealized foreign exchange		(2,653	)		(4,043	)
Other		(306	)		(569	)
Total deferred tax liabilities		(41,165	)		(17,618	)
Net deferred income taxes	$	39,974		$	3,618
(1) Valuation allowance at 12/31/17 was 8.2 million.

	2019			2018
Long-term deferred tax assets	$	67,312		$	11,252
Long-term deferred tax liabilities		(27,338	)		(7,634	)
Total deferred tax assets (liabilities)	$	39,974		$	3,618

Summary of Income Tax Contingencies

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

	2019			2018			2017
Unrecognized tax benefits at January 1,	$	7,471		$	10,124		$	8,557
Tax positions, current period		495			543			3,472
Tax positions, prior period		(361	)		(304	)		180
Settlements with taxing authorities		(18	)		(2,207	)		(1,154	)
Lapse of applicable statute of limitations		(286	)		(685	)		(931	)
Unrecognized tax benefits at December 31,	$	7,301		$	7,471		$	10,124