Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

The income tax provisions were calculated based upon the following components of (loss) earnings before income tax for the years ended December 31, 2020, 2019 and 2018:

	Year Ended December 31,
	2020			2019			2018
(Loss) earnings before income tax:
Domestic	$	(11,374	)	$	74,531		$	10,092
Foreign		92,930			(15,380	)		48,027
Earnings before income tax	$	81,556		$	59,151		$	58,119

Provision for Income Taxes

The components of the provision for income taxes for the years ended December 31, 2020, 2019 and 2018 are summarized as follows:

	Year Ended December 31,
	2020			2019			2018
Current income tax expense (benefit):
Federal	$	784		$	262		$	340
State and local		83			94			(71	)
Foreign		20,150			17,672			9,224
Total current income tax expense		21,017			18,028			9,493
Deferred income tax expense (benefit):
Federal		(2,302	)		(2,490	)		(1,422	)
State and local		32			(1	)		20
Foreign		3,119			(5,252	)		8,129
Total deferred income tax expense		849			(7,743	)		6,727
Total income tax expense	$	21,866		$	10,285		$	16,220

Deferred Tax Assets and Deferred Tax Liabilities

The deferred tax assets and deferred tax liabilities and related valuation allowance were comprised of the following as of December 31, 2020 and 2019:

	December 31,
	2020			2019
Deferred tax assets:
Net operating losses	$	22,658		$	17,881
Intangible assets		29,145			33,743
Research and development credits		10,773			9,752
Depreciation		7,426			7,223
Valuation reserves and accrued liabilities		7,131			7,196
Stock compensation		4,200			3,485
Defined benefit obligation		1,974			2,027
Inventory		1,571			1,284
Other credits		12,068			11,753
Unrealized foreign currency exchange loss		1,431			—
Other		64			113
Total deferred tax asset		98,441			94,457
Valuation allowance		(17,197	)		(17,316	)
Deferred tax liabilities:
Unrealized foreign currency exchange gains		—			(674	)
Undistributed profits of subsidiary		(5,727	)		(4,629	)
Property and equipment		(2,758	)		(3,366	)
Other		(572	)		(733	)
Total deferred tax liability		(9,057	)		(9,402	)
Net deferred tax asset	$	72,187		$	67,739

Reconciliations Between Statutory Federal Income Tax Rate and Effective Rate

Reconciliations between the statutory Federal income tax rate and the effective rate of income tax expense for the years ended December 31, 2020, 2019 and 2018 are as follows:

	Year Ended December 31,
	2020			2019			2018
Statutory Federal income tax rate		21.0	%		21.0	%		21.0	%
Increase (decrease) resulting from:
Change in valuation allowance		(0.4	)%		11.5	%		(6.6	)%
Effect of different tax rates of foreign jurisdictions		(4.7	)%		(24.8	)%		(6.6	)%
Audit settlements and statute expirations		3.9	%		0.6	%		(1.1	)%
US tax reform items		2.5	%		4.3	%		10.8	%
Research and development credits		(1.4	)%		(2.3	)%		(2.5	)%
Non-deductible expenses		2.1	%		2.1	%		3.4	%
Foreign, state and local tax, net of Federal benefit		1.4	%		1.7	%		1.8	%
Tax effects of intercompany transfers		1.4	%		1.5	%		0.8	%
Undistributed profit of subsidiaries		0.9	%		1.2	%		1.2	%
Other		0.1	%		0.6	%		5.7	%
Effective rate		26.8	%		17.4	%		27.9	%

Net Operating Loss Carryforwards

The Company has Net Operating Loss (“NOL”) carryforwards as follows:

Jurisdiction	Amount as of December 31, 2020		Years of Expiration
U.S. state income tax	$	106,987	2021-2040
Foreign	$	7,441	2021-2025
Foreign	$	161,851	Never

Reconciliation of Unrecognized Tax Benefits

The reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Year Ended December 31,
	2020			2019			2018
Balance at beginning of year	$	3,795		$	2,819		$	3,812
Additions based on tax position related to current year		1,489			661			221
Additions based on tax position related to prior year		179			352			423
Reductions from settlements and statute of limitation expiration		(650	)		—			(1,469	)
Effect of foreign currency translation		154			(37	)		(168	)
Balance at end of year	$	4,967		$	3,795		$	2,819