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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Income Tax Provision The following table summarizes the provision (benefit) for U.S. federal, state, and foreign taxes on income from continuing operations:
 
Year Ended December 31,
 
2018
 
2017
 
2016
 
 
 
 
 
 
 
(in thousands)
Current:
 
 
 
 
 
Federal
$
(7,695
)
 
$
7,679

 
$
20,490

State and local
(362
)
 
3,841

 
2,708

Foreign
14,618

 
12,139

 
12,586

Total current
6,561

 
23,659

 
35,784

 
 
 
 
 
 
Deferred:
 
 
 
 
 
Federal
(17,463
)
 
40,340

 
10,805

State and local
(4,492
)
 
(1,144
)
 
1,160

Foreign
(22,906
)
 
3,480

 
(24,815
)
Total deferred
(44,861
)
 
42,676

 
(12,850
)
 
 
 
 
 
 
Change in valuation allowance
25,730

 
7,991

 
26,640

Total provision (benefit) for income taxes
$
(12,570
)
 
$
74,326

 
$
49,574
Income Tax Rate Reconciliation A reconciliation of income taxes at the U.S. federal statutory rate of 21% for 2018 and 35% for 2017 and 2016 to the consolidated actual tax rate is as follows:
 
Year Ended December 31,
 
2018
 
2017
 
2016
 
 
 
 
 
 
 
(in thousands)
Income (loss) before income taxes
 
 
 
 
 
Domestic
$
(50,463
)
 
$
220,342

 
$
196,750

Foreign
(58,688
)
 
(85,767
)
 
(112,123
)
Total income before income taxes
$
(109,151
)
 
$
134,575

 
$
84,627

 
 
 
 
 
 
Expected federal income tax provision
$
(22,922
)
 
$
47,101

 
$
29,619

Change in valuation allowance
25,730

 
7,991

 
26,640

Stock-based compensation
(104
)
 
(1,225
)
 
2,762

Foreign earnings
(15,799
)
 
(22,045
)
 
(12,584
)
Tax credits
(10,502
)
 
(777
)
 
(7,471
)
Uncertain tax positions, including interest and penalties
7,727

 
(7,637
)
 
3,817

Change in tax rates
335

 
41,125

 
67

State income tax provision (benefit), net of federal effect
(4,524
)
 
4,986

 
2,806

U.S. tax provision on foreign earnings
25

 
33

 
997

Domestic production activities deduction
—

 
(2,534
)
 
(2,424
)
Local foreign taxes
2,540

 
2,324

 
2,914

Transaction costs
974

 
2,643

 
—

Other, net
3,950

 
2,341

 
2,431

Total provision (benefit) from income taxes
$
(12,570
)
 
$
74,326

 
$
49,574
Deferred Tax Assets and Liabilities Deferred tax assets and liabilities consist of the following:
 
At December 31,
 
2018
 
2017
 
 
 
 
 
(in thousands)
Deferred tax assets
 
 
 
Loss carryforwards(1)
$
370,120

 
$
218,420

Tax credits(2)
94,359

 
58,616

Accrued expenses
43,213

 
23,752

Pension plan benefits expense
18,086

 
18,262

Warranty reserves
13,470

 
11,170

Depreciation and amortization
5,709

 
5,736

Equity compensation
5,390

 
5,352

Inventory valuation
1,415

 
2,554

Deferred revenue
9,062

 
2,431

Other deferred tax assets, net
11,319

 
16,606

Total deferred tax assets
572,143

 
362,899

Valuation allowance
(323,822
)
 
(285,784
)
Total deferred tax assets, net of valuation allowance
248,321

 
77,115

 
 
 
 
Deferred tax liabilities
 
 
 
Depreciation and amortization
(178,358
)
 
(23,135
)
Tax effect of accumulated translation
—

 
(303
)
Other deferred tax liabilities, net
(6,676
)
 
(5,231
)
Total deferred tax liabilities
(185,034
)
 
(28,669
)
Net deferred tax assets
$
63,287

 
$
48,446


(1) 
For tax return purposes at December 31, 2018, we had U.S. federal loss carryforwards of $350.7 million which begin to expire in the year 2019. At December 31, 2018, we have net operating loss carryforwards in Luxembourg of $936.7 million, the majority of which can be carried forward indefinitely, offset by a full valuation allowance. The remaining portion of the loss carryforwards are composed primarily of losses in various other state and foreign jurisdictions. The majority of these losses can be carried forward indefinitely. At December 31, 2018, there was a valuation allowance of $323.8 million primarily associated with foreign loss carryforwards and foreign tax credit carryforwards (discussed below).

(2) 
For tax return purposes at December 31, 2018, we had: (1) U.S. general business credits of $31.2 million, which begin to expire in 2022; (2) U.S. alternative minimum tax credits of $1.6 million that can be carried forward indefinitely; (3) U.S. foreign tax credits of $50.4 million, which begin to expire in 2024; and (4) state tax credits of $35.1 million, which begin to expire in 2019.
Summary of Valuation Allowance Changes in the valuation allowance for deferred tax assets are summarized as follows:
Description
 
Balance at Beginning of Period
 
Other Adjustments
 
Additions Charged to Costs and Expenses
 
Balance at End of Period, Noncurrent
 
 
 
 
 
 
 
 
 
 
 
(in thousands)
 Year ended December 31, 2018:
 
 
 
 
 
 
 
 
Deferred tax assets valuation allowance
 
$
285,784

 
$
12,308

 
$
25,730

 
$
323,822

 Year ended December 31, 2017:
 
 
 
 
 
 
 
 
Deferred tax assets valuation allowance
 
$
249,560

 
$
28,233

 
$
7,991

 
$
285,784

 Year ended December 31, 2016:
 
 
 
 
 
 
 
 
Deferred tax assets valuation allowance
 
$
235,339

 
$
(12,419
)
 
$
26,640

 
$
249,560
Unrecognized Tax Benefits Related To Uncertain Tax Positions A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
 
Total
 
(in thousands)
Unrecognized tax benefits at January 1, 2016
$
54,880

Gross increase to positions in prior years
1,164

Gross decrease to positions in prior years
(612
)
Gross increases to current period tax positions
5,071

Audit settlements
(1,116
)
Decrease related to lapsing of statute of limitations
(860
)
Effect of change in exchange rates
(901
)
Unrecognized tax benefits at December 31, 2016
$
57,626

 
 
Gross increase to positions in prior years
3,367

Gross decrease to positions in prior years
(5,559
)
Gross increases to current period tax positions
6,453

Audit settlements
(5,169
)
Decrease related to lapsing of statute of limitations
(3,445
)
Effect of change in exchange rates
3,429

Unrecognized tax benefits at December 31, 2017
$
56,702

 
 
Gross increase to positions in prior years
22,943

Gross decrease to positions in prior years
(24,949
)
Gross increases to current period tax positions
63,869

Audit settlements
(2,977
)
Decrease related to lapsing of statute of limitations
(1,368
)
Effect of change in exchange rates
(1,662
)
Unrecognized tax benefits at December 31, 2018
$
112,558


 
At December 31,
 
2018
 
2017
 
2016
 
 
 
 
 
 
 
(in thousands)
The amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate
$
111,224

 
$
55,312

 
$
56,411


If certain unrecognized tax benefits are recognized they would create additional deferred tax assets. These assets would require a full valuation allowance in certain locations based upon present circumstances.

We classify interest expense and penalties related to unrecognized tax benefits and interest income on tax overpayments as components of income tax expense. The net interest and penalties expense recognized is as follows:
 
Year Ended December 31,
 
2018
 
2017
 
2016
 
 
 
 
 
 
 
(in thousands)
Net interest and penalties expense (benefit)
$
(990
)
 
$
(543
)
 
$
193


 
At December 31,
 
2018
 
2017
 
 
 
 
 
(in thousands)
Accrued interest
$
2,127

 
$
2,706

Accrued penalties
1,758

 
2,426


At December 31, 2018, we are under examination by certain tax authorities for the 2010 to 2017 tax years. The material jurisdictions where we are subject to examination for the 2010 to 2017 tax years include, among others, the U.S., France, Germany, Italy, Brazil and the United Kingdom. During December 2018 we settled our tax audit with the Internal Revenue Service for the 2014-2015 years and we settled our tax audit with Germany for the 2011-2013 years. We believe we have appropriately accrued for the expected outcome of all tax matters and do not currently anticipate that the ultimate resolution of these examinations will have a material adverse effect on our financial condition, future results of operations, or cash flows.

Based upon the timing and outcome of examinations, litigation, the impact of legislative, regulatory, and judicial developments, and the impact of these items on the statute of limitations, it is reasonably possible that the related unrecognized tax benefits could change from those recognized within the next twelve months. However, at this time, an estimate of the range of reasonably possible adjustments to the balance of unrecognized tax benefits cannot be made.

We file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. We are subject to income tax examination by tax authorities in our major tax jurisdictions as follows:
Tax Jurisdiction
 
Years Subject to Audit
U.S. federal
 
Subsequent to 2001
France
 
Subsequent to 2012
Germany
 
Subsequent to 2013
Brazil
 
Subsequent to 2012
United Kingdom
 
Subsequent to 2013
Italy
 
Subsequent to 2013