Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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	2020		2019		2018
U.S.	$	45,526	$	73,352	$	(24,141	)
Foreign		74,815		124,894		174,103
Total	$	120,341	$	198,246	$	149,962

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

	2020			2019		2018
Current tax provision
Federal	$	631		$	259	$	-
Foreign		17,115			28,829		42,726
State		56			92		24
		17,802			29,180		42,750
Deferred tax provision (benefit)
Federal		6,411			886		2,400
Foreign		(6,210	)		11,994		(3,107	)
State		65			30		56
		266			12,910		(651	)

Liability for unrecognized tax benefits		3,044			2,041		2,457
Total income tax provision	$	21,112		$	44,131	$	44,556

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:

	2020						2019						2018
				Percent						Percent						Percent
				of pretax						of pretax						of pretax
	Amount			earnings*			Amount			earnings*			Amount			earnings*
Federal tax	$	25,272			21.0		$	41,632			21.0		$	31,488			21.0
State income taxes, net of federal tax provision		(378	)		(0.3	)		1,389			0.7			(375	)		(0.3	)
Foreign income taxed at different tax rates		81			0.1			(5,786	)		(2.9	)		(2,844	)		(1.9	)
U.S. tax impact of foreign operations		(3,031	)		(2.5	)		(3,340	)		(1.7	)		4,140			2.8
Foreign withholding taxes		(1,798	)		(1.5	)		22,685			11.4			10,962			7.3
Research and development		(4,210	)		(3.5	)		(3,686	)		(1.9	)		(3,541	)		(2.4	)
Liability for unrecognized tax benefits		3,044			2.5			2,041			1.0			2,457			1.6
Valuation allowance		2,199			1.8			(10,563	)		(5.3	)		(379	)		(0.3	)
Employee stock-based compensation		(660	)		(0.5	)		(52	)		-			(2,154	)		(1.4	)
U.S. Tax Cuts and Jobs Act		-			-			-			-			2,762			1.8
Other		593			0.5			(189	)		(0.1	)		2,040			1.4
Income tax provision	$	21,112			17.5		$	44,131			22.3		$	44,556			29.7

*	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:

	2020			2019			2018
Balance at January 1,	$	35,652		$	32,209		$	30,581
Additions based on tax positions related to the current year		7,495			9,274			4,667
Additions for prior year tax positions		4,952			39			-
Reductions for prior year tax positions		(5,633	)		(5,870	)		(3,039	)
Balance at December 31,	$	42,466		$	35,652		$	32,209

Schedule of Deferred Tax Assets and Liabilities

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

	2020			2019
Deferred tax assets
Inventory cost	$	15,154		$	10,423
Accrued expenses and accounts receivable		5,294			4,420
Foreign tax credits		-			5,848
Research and development tax credits		15,807			16,263
Net operating loss carryforwards		42,734			24,139
Lease obligations		2,982			3,773
Plant, equipment and intangible assets		162			-
Accrued pension		6,386			4,629
Share based compensation and others		8,810			7,805
		97,329			77,300
Valuation allowances		(45,591	)		(29,414	)
Total deferred tax assets, non-current		51,738			47,886
Deferred tax liabilities
Plant, equipment and intangible assets		-			(13,816	)
Right of use assets		(2,936	)		(4,008	)
Outside basis differences and others		(13,467	)		(23,648	)
Total deferred tax liabilities, non-current		(16,403	)		(41,472	)
Net deferred tax assets	$	35,335		$	6,414