Income Tax Provision

3 Months Ended

Mar. 31, 2017

Income Tax Disclosure [Abstract]

Income Tax Provision

NOTE 5 – Income Tax Provision

The table below sets forth information related to our income tax expense:

	Three Months Ended
	March 31,
	2017			2016
Domestic pre-tax income (loss)	$	(13,211	)	$	(10,000	)
Foreign pre-tax income	$	15,313		$	7,700
Income tax provision (benefit)	$	560		$	(552	)
Effective tax rate		26.6	%		27.1	%
Impact of tax holidays on tax expense	$	(963	)	$	(824	)
Earnings per share impact of tax holidays
Basic	$	0.02		$	0.02
Diluted	$	0.02		$	0.02

          The decrease in the effective tax rate over these comparable three month periods is primarily attributable to a significant change in the proportion of income generated in North America, Europe and Asia, and in both periods the effective tax rates were lower than theU.S. statutory rate of 35%, principally from the impact of income from lower-taxed jurisdictions.

  Funds repatriated from foreign subsidiaries to the U.S. may be subject to federal and state income taxes. The Company intends to permanently reinvest overseas all of its earnings from its foreign subsidiaries, except to the extent such undistributed earnings have previously been subject to US tax; accordingly, deferred U.S. taxes are not recorded on undistributed foreign earnings.

The Company files income tax returns in the U.S. federal jurisdiction and in various state and foreign jurisdictions. The Company is no longer subject to U.S. federal income tax examinations by tax authorities for tax years before 2007, or for the 2010 tax year.  The Company is no longer subject to China income tax examinations by tax authorities for tax years before 2005. With respect to state and local jurisdictions and countries outside of the U.S. (other than China), with limited exceptions, the Company is no longer subject to income tax audits for years before 2006. Although the outcome of tax audits is always uncertain, the Company believes that adequate amounts of tax, interest and penalties, if any, have been provided for in the Company’s reserve for any adjustments that may result from tax audits. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in interest expense. As of March 31, 2017, the gross amount of unrecognized tax benefits was approximately $29.7 million.

It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company’s unrecognized tax positions will significantly increase or decrease within the next 12 months. At this time, an estimate of the range of the reasonably possible outcomes cannot be made.