Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2017 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Significant Components of Provisional Amount of Tax Expense |
The table below reflects the significant components of the provisional amount of tax expense recorded in the fourth quarter of 2017 and included as a component of income tax expense from continuing operations:
|
Component |
|
Provisional Amount |
|
|
Remeasurement of U.S. deferred tax assets and liabilities |
|
$ |
2,913 |
|
|
Transition tax on foreign earnings |
|
|
104,327 |
|
|
Foreign tax credits used to offset transition tax |
|
|
(58,975 |
) |
|
Other adjustments |
|
|
(2,357 |
) |
|
Total net tax expense related to the Tax Act |
|
$ |
45,908 |
|
|
| Schedule of Components of Income Tax Expense (Benefit) |
|
Income (loss) before income taxes |
2017 |
|
|
2016 |
|
|
2015 |
|
|
U.S. |
$ |
(72,668 |
) |
|
$ |
(40,861 |
) |
|
$ |
(21,091 |
) |
|
Foreign |
|
135,259 |
|
|
|
65,896 |
|
|
|
61,686 |
|
|
Total |
$ |
62,591 |
|
|
$ |
25,035 |
|
|
$ |
40,595 |
|
The components of the income tax provision (benefit) are as follows for the years ended December 31:
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
Current tax provision (benefit) |
|
|
|
|
|
|
|
|
|
|
|
|
Federal |
$ |
- |
|
|
$ |
- |
|
|
$ |
12 |
|
|
Foreign |
|
31,820 |
|
|
|
28,993 |
|
|
|
17,983 |
|
|
State |
|
7 |
|
|
|
13 |
|
|
|
29 |
|
|
|
|
31,827 |
|
|
|
29,006 |
|
|
|
18,024 |
|
|
Deferred tax provision (benefit) |
|
|
|
|
|
|
|
|
|
|
|
|
Federal |
|
30,186 |
|
|
|
(10,517 |
) |
|
|
(2,739 |
) |
|
Foreign |
|
(2,352 |
) |
|
|
(13,847 |
) |
|
|
(1,063 |
) |
|
State |
|
(8 |
) |
|
|
101 |
|
|
|
(228 |
) |
|
|
|
27,826 |
|
|
|
(24,263 |
) |
|
|
(4,030 |
) |
|
Liability for unrecognized tax benefits |
|
2,672 |
|
|
|
1,815 |
|
|
|
88 |
|
|
Total income tax provision |
$ |
62,325 |
|
|
$ |
6,558 |
|
|
$ |
14,082 |
|
|
| Schedule of Effective Income Tax Rate Reconciliation |
Reconciliation between the effective tax rate and the statutory tax rates for the years ended December 31, 2017, 2016, and 2015 is as follows:
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
Percent |
|
|
|
|
|
|
Percent |
|
|
|
|
|
|
Percent |
|
|
|
|
|
|
|
of pretax |
|
|
|
|
|
|
of pretax |
|
|
|
|
|
|
of pretax |
|
|
|
Amount |
|
|
earnings |
|
|
Amount |
|
|
earnings |
|
|
Amount |
|
|
earnings |
|
|
Federal tax |
$ |
21,907 |
|
|
|
35.0 |
|
|
$ |
8,762 |
|
|
|
35.0 |
|
|
$ |
14,214 |
|
|
|
35.0 |
|
|
State income taxes, net of federal tax
provision |
|
(15 |
) |
|
|
- |
|
|
|
(65 |
) |
|
|
(0.3 |
) |
|
|
(152 |
) |
|
|
(0.4 |
) |
|
Foreign income taxed at lower tax rates |
|
(23,515 |
) |
|
|
(37.6 |
) |
|
|
(6,955 |
) |
|
|
(27.8 |
) |
|
|
(10,126 |
) |
|
|
(24.9 |
) |
|
U.S. tax impact of foreign operations |
|
6,726 |
|
|
|
10.7 |
|
|
|
324 |
|
|
|
1.3 |
|
|
|
2,046 |
|
|
|
5.0 |
|
|
Foreign withholding taxes |
|
4,343 |
|
|
|
6.9 |
|
|
|
4,834 |
|
|
|
19.3 |
|
|
|
2,268 |
|
|
|
5.6 |
|
|
Research and development |
|
(2,643 |
) |
|
|
(4.2 |
) |
|
|
(2,241 |
) |
|
|
(9.0 |
) |
|
|
(2,068 |
) |
|
|
(5.1 |
) |
|
Liability for unrecognized tax benefits |
|
2,672 |
|
|
|
4.3 |
|
|
|
1,815 |
|
|
|
7.3 |
|
|
|
88 |
|
|
|
0.2 |
|
|
Valuation allowance |
|
2,077 |
|
|
|
3.3 |
|
|
|
(2,600 |
) |
|
|
(10.4 |
) |
|
|
3,580 |
|
|
|
8.8 |
|
|
Provision-to-return adjustments |
|
131 |
|
|
|
0.2 |
|
|
|
(61 |
) |
|
|
(0.2 |
) |
|
|
994 |
|
|
|
2.4 |
|
|
Employee stock-based compensation |
|
1,537 |
|
|
|
2.5 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
U.S. Tax Cuts and Jobs Act |
|
45,908 |
|
|
|
73.4 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Other |
|
3,197 |
|
|
|
5.1 |
|
|
|
2,745 |
|
|
|
11.0 |
|
|
|
3,238 |
|
|
|
8.1 |
|
|
Income tax provision |
$ |
62,325 |
|
|
|
99.6 |
|
|
$ |
6,558 |
|
|
|
26.2 |
|
|
$ |
14,082 |
|
|
|
34.7 |
|
|
| Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible |
In accordance with the provisions related to accounting for uncertainty in income taxes, we recognize the benefit of a tax position if the position is “more likely than not” to prevail upon examination by the relevant tax authority. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
Balance at January 1, |
$ |
28,849 |
|
|
$ |
26,503 |
|
|
$ |
19,488 |
|
|
Additions based on tax positions related to the
current year |
|
3,492 |
|
|
|
6,746 |
|
|
|
3,450 |
|
|
Additions for prior year tax positions |
|
863 |
|
|
|
960 |
|
|
|
6,963 |
|
|
Reductions for prior year tax positions |
|
(2,623 |
) |
|
|
(5,360 |
) |
|
|
(3,398 |
) |
|
Balance at December 31, |
$ |
30,581 |
|
|
$ |
28,849 |
|
|
$ |
26,503 |
|
|
| Schedule of Deferred Tax Assets and Liabilities |
The table below sets forth our deferred tax assets and liabilities as of December 31, 2017 and 2016:
|
|
2017 |
|
|
2016 |
|
|
Deferred tax assets |
|
|
|
|
|
|
|
|
Inventory cost |
$ |
8,000 |
|
|
$ |
6,923 |
|
|
Accrued expenses and accounts receivable |
|
690 |
|
|
|
2,112 |
|
|
Foreign tax credits |
|
10,626 |
|
|
|
19,610 |
|
|
Research and development tax credits |
|
15,828 |
|
|
|
13,633 |
|
|
Net operating loss carryforwards |
|
5,392 |
|
|
|
37,379 |
|
|
Accrued pension |
|
5,428 |
|
|
|
5,494 |
|
|
Share based compensation and others |
|
12,443 |
|
|
|
16,992 |
|
|
|
|
58,407 |
|
|
|
102,143 |
|
|
Valuation allowances |
|
(22,560 |
) |
|
|
(32,082 |
) |
|
Total deferred tax assets, non-current |
|
35,847 |
|
|
|
70,061 |
|
|
Deferred tax liabilities |
|
|
|
|
|
|
|
|
Plant, equipment and intangible assets |
|
(17,278 |
) |
|
|
(28,639 |
) |
|
Total deferred tax liabilities, non-current |
|
(17,278 |
) |
|
|
(28,639 |
) |
|
Net deferred tax assets |
$ |
18,569 |
|
|
$ |
41,422 |
|
|