Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes

Schedule of geographic distribution of pretax income from continuing operations

The geographic distribution of pretax income from continuing operations is as follows:

	Years Ended December 31,
	2019		2018		2017
Domestic	$	(20,597)	$	22,325	$	29,088
Foreign		87,791		150,051		169,103
	$	67,194	$	172,376	$	198,191

Schedule of tax expense and the effective tax rate for our income from continuing operations

The provision for income taxes from continuing operations is summarized as follows:

	Years Ended December 31,
	2019		2018		2017
Current:
Federal	$	(9,627)	$	1,423	$	26,550
State		882		12		601
Foreign		18,429		13,772		9,621
Total current provision	$	9,684	$	15,207	$	36,772
Deferred:
Federal	$	3,822	$	4,021	$	28,297
State		(178)		2,363		(1,000)
Foreign		(2,629)		3,636		(1,979)
Total deferred provision		1,015		10,020		25,318
Total provision for income taxes	$	10,699	$	25,227	$	62,090

Schedule of effective income tax rate reconciliation

	Years Ended December 31,
	2019		2018		2017
Income taxes per federal statutory rate	$	14,111	$	36,199	$	69,348
State income taxes, net of federal deduction		10		2,372		1,794
Transition tax - U.S. Tax Reform		—		1,174		61,690
Corporate tax rate changes - U.S. Tax Reform		—		(652)		11,177
Tax benefit associated with inverter business wind down		—		—		(33,837)
Stock based compensation		(97)		(974)		(5,263)
GILTI Tax		8,796		13,064		—
Tax effect of foreign operations		(13,086)		(19,162)		(47,482)
Uncertain tax position		(4,487)		(3,088)		4,948
Unremitted earnings		1,624		2,564		—
Tax credits		(6,280)		(9,844)		(658)
Change in valuation allowance		7,222		(1,306)		841
Withholding taxes		6,500		1,371		—
Other permanent items, net		(3,614)		3,509		(468)
Total provision for income taxes	$	10,699	$	25,227	$	62,090

Schedule of deferred tax assets and liabilities

	Years Ended December 31,
	2019		2018
Deferred tax assets
Stock based compensation	$	1,757	$	1,337
Net operating loss and tax credit carryforwards		86,879		38,622
Interest expense limitation		7,620		—
Pension obligation		13,473		3,302
Excess and obsolete inventory		3,217		2,161
Deferred revenue		3,305		6,903
Employee bonuses and commissions		2,537		1,874
Depreciation and amortization		29,015		29,525
Operating lease liabilities		23,451		—
Other		9,685		9,961
Deferred tax assets		180,939		93,685
Less: Valuation allowance		(76,206)		(30,924)
Net deferred tax assets		104,733		62,761
Deferred tax liabilities
Depreciation and amortization		41,549		17,723
Unremitted earnings		4,740		3,529
Operating lease right-of-use assets		22,774		—
Other		2,966		1,267
Deferred tax liabilities		72,029		22,519
Net deferred tax assets	$	32,704	$	40,242

Summary of income tax contingencies

	Years Ended December 31,
	2019		2018		2017
Balance at beginning of period	$	13,162	$	15,990	$	11,401
Additions based on tax positions taken during a prior period		484		94		1,258
Additions based on tax positions taken during a prior period - acquisitions		4,479		757		—
Additions based on tax positions taken during the current period		—		—		4,433
Reductions based on tax positions taken during a prior period		(4,295)		(153)		—
Reductions related to a lapse of applicable statute of limitations		(821)		(3,144)		(1,102)
Reductions related to a settlement with taxing authorities		—		(382)		—
Balance at end of period	$	13,009	$	13,162	$	15,990