Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

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