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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
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

2019

 

 

2018

 

 

2017

 

U.S.

$

73,352

 

 

$

(24,141

)

 

$

(72,668

)

Foreign

 

124,894

 

 

 

174,103

 

 

 

135,259

 

Total

$

198,246

 

 

$

149,962

 

 

$

62,591

 

 

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

 

 

2019

 

 

2018

 

 

2017

 

Current tax provision

 

 

 

 

 

 

 

 

 

 

 

Federal

$

259

 

 

$

-

 

 

$

-

 

Foreign

 

28,829

 

 

 

42,726

 

 

 

31,820

 

State

 

92

 

 

 

24

 

 

 

7

 

 

 

29,180

 

 

 

42,750

 

 

 

31,827

 

Deferred tax provision (benefit)

 

 

 

 

 

 

 

 

 

 

 

Federal

 

886

 

 

 

2,400

 

 

 

30,186

 

Foreign

 

11,994

 

 

 

(3,107

)

 

 

(2,352

)

State

 

30

 

 

 

56

 

 

 

(8

)

 

 

12,910

 

 

 

(651

)

 

 

27,826

 

 

 

 

 

 

 

 

 

 

 

 

 

Liability for unrecognized tax benefits

 

2,041

 

 

 

2,457

 

 

 

2,672

 

Total income tax provision

$

44,131

 

 

$

44,556

 

 

$

62,325

 

 

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:

 

 

2019

 

 

2018

 

 

2017

 

 

 

 

 

 

Percent

 

 

 

 

 

 

Percent

 

 

 

 

 

 

Percent

 

 

 

 

 

 

of pretax

 

 

 

 

 

 

of pretax

 

 

 

 

 

 

of pretax

 

 

Amount

 

 

earnings*

 

 

Amount

 

 

earnings*

 

 

Amount

 

 

earnings*

 

Federal tax

$

41,632

 

 

 

21.0

 

 

$

31,488

 

 

 

21.0

 

 

$

21,907

 

 

 

35.0

 

State income taxes, net of federal tax

   provision

 

1,389

 

 

 

0.7

 

 

 

(375

)

 

 

(0.3

)

 

 

(15

)

 

 

-

 

Foreign income taxed at lower tax rates

 

(5,786

)

 

 

(2.9

)

 

 

(2,844

)

 

 

(1.9

)

 

 

(23,515

)

 

 

(37.6

)

U.S. tax impact of foreign operations

 

(3,340

)

 

 

(1.7

)

 

 

4,140

 

 

 

2.8

 

 

 

6,726

 

 

 

10.7

 

Foreign withholding taxes

 

22,685

 

 

 

11.4

 

 

 

10,962

 

 

 

7.3

 

 

 

4,343

 

 

 

6.9

 

Research and development

 

(3,686

)

 

 

(1.9

)

 

 

(3,541

)

 

 

(2.4

)

 

 

(2,643

)

 

 

(4.2

)

Liability for unrecognized tax benefits

 

2,041

 

 

 

1.0

 

 

 

2,457

 

 

 

1.6

 

 

 

2,672

 

 

 

4.3

 

Valuation allowance

 

(10,563

)

 

 

(5.3

)

 

 

(379

)

 

 

(0.3

)

 

 

2,077

 

 

 

3.3

 

Employee stock-based compensation

 

(52

)

 

 

(0.0

)

 

 

(2,154

)

 

 

(1.4

)

 

 

1,537

 

 

 

2.5

 

U.S. Tax Cuts and Jobs Act

 

-

 

 

 

-

 

 

 

2,762

 

 

 

1.8

 

 

 

45,908

 

 

 

73.4

 

Other

 

(189

)

 

 

(0.1

)

 

 

2,040

 

 

 

1.4

 

 

 

3,328

 

 

 

5.3

 

Income tax provision

$

44,131

 

 

 

22.3

 

 

$

44,556

 

 

 

29.7

 

 

$

62,325

 

 

 

99.6

 

 

*

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:

 

 

2019

 

 

2018

 

 

2017

 

Balance at January 1,

$

32,209

 

 

$

30,581

 

 

$

28,849

 

Additions based on tax positions related to the

   current year

 

9,274

 

 

 

4,667

 

 

 

3,492

 

Additions for prior year tax positions

 

39

 

 

 

-

 

 

 

863

 

Reductions for prior year tax positions

 

(5,870

)

 

 

(3,039

)

 

 

(2,623

)

Balance at December 31,

$

35,652

 

 

$

32,209

 

 

$

30,581

 

Schedule of Deferred Tax Assets and Liabilities

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

 

 

2019

 

 

2018

 

Deferred tax assets

 

 

 

 

 

 

 

Inventory cost

$

10,423

 

 

$

7,974

 

Accrued expenses and accounts receivable

 

4,420

 

 

 

1,866

 

Foreign tax credits

 

5,848

 

 

 

17,600

 

Research and development tax credits

 

16,263

 

 

 

15,456

 

Net operating loss carryforwards

 

24,139

 

 

 

9,635

 

Lease obligations

 

3,773

 

 

 

-

 

Accrued pension

 

4,629

 

 

 

4,294

 

Share based compensation and others

 

7,805

 

 

 

9,972

 

 

 

77,300

 

 

 

66,797

 

Valuation allowances

 

(29,414

)

 

 

(25,941

)

Total deferred tax assets, non-current

 

47,886

 

 

 

40,856

 

Deferred tax liabilities

 

 

 

 

 

 

 

Plant, equipment and intangible assets

 

(13,816

)

 

 

(16,661

)

Right of use assets

 

(4,008

)

 

 

-

 

Outside basis differences and others

 

(23,648

)

 

 

(7,267

)

Total deferred tax liabilities, non-current

 

(41,472

)

 

 

(23,928

)

Net deferred tax assets

$

6,414

 

 

$

16,928