Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Significant Components of Adjustment to Tax Expense

The table below reflects the significant components of the net $2.8 million adjustment to tax expense recorded in the fourth quarter of 2018 and included as a component of income tax expense from continuing operations:

Component	Provisional Amount			Final Amount			Adjustment
Remeasurement of U.S. deferred tax assets and liabilities	$	2,913		$	3,112		$	199
Transition tax on foreign earnings		104,327			101,512			(2,815	)
Foreign tax credits used to offset transition tax		(58,975	)		(54,350	)		4,625
Other adjustments		(2,357	)		(1,604	)		753
Total net tax expense related to the Tax Act	$	45,908		$	48,670		$	2,762

Schedule of Components of Income Tax Expense (Benefit)

The table below sets forth our (loss) income before taxes for the years ended December 31:

Income (loss) before income taxes	2018			2017			2016
U.S.	$	(24,141	)	$	(72,668	)	$	(40,861	)
Foreign		174,103			135,259			65,896
Total	$	149,962		$	62,591		$	25,035

The table below sets forth the components of our income tax provision (benefit) for the years ended December 31:

	2018			2017			2016
Current tax provision
Federal	$	-		$	-		$	-
Foreign		42,726			31,820			28,993
State		24			7			13
		42,750			31,827			29,006
Deferred tax provision (benefit)
Federal		2,400			30,186			(10,517	)
Foreign		(3,107	)		(2,352	)		(13,847	)
State		56			(8	)		101
		(651	)		27,826			(24,263	)
Liability for unrecognized tax benefits		2,457			2,672			1,815
Total income tax provision	$	44,556		$	62,325		$	6,558

Schedule of Effective Income Tax Rate Reconciliation

The table below sets forth a reconciliation between the effective tax rate and the statutory tax rates for the years ended December 31:

	2018						2017						2016
				Percent						Percent						Percent
				of pretax						of pretax						of pretax
	Amount			earnings*			Amount			earnings*			Amount			earnings*
Federal tax	$	31,488			21.0		$	21,907			35.0		$	8,762			35.0
State income taxes, net of federal tax provision		(375	)		(0.3	)		(15	)		-			(65	)		(0.3	)
Foreign income taxed at lower tax rates		(2,844	)		(1.9	)		(23,515	)		(37.6	)		(6,955	)		(27.8	)
U.S. tax impact of foreign operations		4,140			2.8			6,726			10.7			324			1.3
Foreign withholding taxes		10,962			7.3			4,343			6.9			4,834			19.3
Research and development		(3,541	)		(2.4	)		(2,643	)		(4.2	)		(2,241	)		(9.0	)
Liability for unrecognized tax benefits		2,457			1.6			2,672			4.3			1,815			7.3
Valuation allowance		(379	)		(0.3	)		2,077			3.3			(2,600	)		(10.4	)
Employee stock-based compensation		(2,154	)		(1.4	)		1,537			2.5			-			-
U.S. Tax Cuts and Jobs Act		2,762			1.8			45,908			73.4			-			-
Other		2,040			1.4			3,328			5.3			2,684			10.7
Income tax provision	$	44,556			29.7		$	62,325			99.6		$	6,558			26.2

*	The sum of the amounts in the table may not equal to the effective tax rate due to rounding.

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. The table below sets forth a reconciliation of the beginning and ending amount of unrecognized tax benefits:

	2018			2017			2016
Balance at January 1,	$	30,581		$	28,849		$	26,503
Additions based on tax positions related to the current year		4,667			3,492			6,746
Additions for prior year tax positions		-			863			960
Reductions for prior year tax positions		(3,039	)		(2,623	)		(5,360	)
Balance at December 31,	$	32,209		$	30,581		$	28,849

Schedule of Deferred Tax Assets and Liabilities

The table below sets forth our deferred tax assets and liabilities as of December 31:

	2018			2017
Deferred tax assets
Inventory cost	$	7,974		$	8,000
Accrued expenses and accounts receivable		1,866			690
Foreign tax credits		17,600			10,626
Research and development tax credits		15,456			15,828
Net operating loss carryforwards		9,635			5,392
Accrued pension		4,294			5,428
Share based compensation and others		9,972			12,443
		66,797			58,407
Valuation allowances		(25,941	)		(22,560	)
Total deferred tax assets, non-current		40,856			35,847
Deferred tax liabilities
Plant, equipment and intangible assets		(16,661	)		(17,278	)
Outside basis differences and others		(7,267	)		-
Total deferred tax liabilities, non-current		(23,928	)		(17,278	)
Net deferred tax assets	$	16,928		$	18,569