Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Before Income Taxes From Domestic and International Jurisdictions

Income before income taxes from domestic and international jurisdictions is comprised of the following:

Year Ended December 31,	2017			2016		2015
(Dollars in thousands)
Income before income taxes:
Domestic	$	(63,716	)	$	18,499	$	25,069
Foreign		64,582			36,222		10,214
	$	866		$	54,721	$	35,283

Provision for Income Taxes

The provision for income taxes is comprised of the following:

Year Ended December 31,	2017			2016			2015
(Dollars in thousands)
Current taxes
Federal	$	6,121		$	(5,017	)	$	(10,900	)
State		(390	)		450			481
Foreign		(12,564	)		(10,639	)		(2,099	)
Total current taxes		(6,833	)		(15,206	)		(12,518	)
Deferred taxes
Federal		(4,387	)		(1,199	)		(961	)
State		1,492			(332	)		(576	)
Foreign		2,853			3,397			2,716
Total deferred taxes		(42	)		1,866			1,179
Income tax provision	$	(6,875	)	$	(13,340	)	$	(11,339	)

Reconciliation of the U.S. Federal Tax Rate

The following is a reconciliation of the U.S. federal tax rate to our effective income tax rate:

Year Ended December 31,	2017			2016			2015
Statutory rate		(35.0	)%		(35.0	)%		(35.0	)%
State tax provisions, net of federal income tax benefit		263.4			(6.3	)		3.8
Tax credits		88.9			0.6			0.9
Foreign income taxes at rates other than the statutory rate		1,206.6			11.7			2.3
Valuation allowance and other		(138.0	)		5.1			(5.6	)
Changes in tax liabilities, net		(11.3	)		0.5			6.4
Share based compensation		(61.5	)		(1.2	)		(4.4	)
Transaction costs		(372.2	)		—			—
Tax Reform		(1,918.7	)		—			—
Non taxable income		152.6			—			—
Other		31.3			0.2			(0.5	)
Effective income tax rate		(793.9	)%		(24.4	)%		(32.1	)%

Summary of Deferred Income Tax Assets and Liabilities

Tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred liabilities are as follows:

December 31,	2017			2016
(Dollars in thousands)
Deferred income tax assets:
Accrued liabilities	$	2,445		$	6,120
Hedging and foreign currency losses		2,034			9,475
Deferred compensation		8,628			11,723
Inventory reserves		2,954			3,563
Net loss carryforwards and credits		69,018			3,123
Competent authority deferred tax assets and other foreign timing differences		6,939			5,135
Other		(830	)		462
Total before valuation allowance		91,188			39,601
Valuation allowance		(7,634	)		(3,123	)
Net deferred income tax assets		83,554			36,478
Deferred income tax liabilities:
Intangibles, property, plant and equipment and other		(57,791	)		(11,268	)
Deferred income tax liabilities		(57,791	)		(11,268	)
Net deferred income tax assets	$	25,763		$	25,210

The classification of our net deferred tax asset is shown below:

December 31,	2017			2016
(Dollars in thousands)
Long-term deferred income tax assets	$	54,302		$	28,838
Long-term deferred income tax liabilities		(28,539	)		(3,628	)
Net deferred tax asset	$	25,763		$	25,210

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amounts of these tax benefits is as follows:

Year Ended December 31,	2017			2016			2015
(Dollars in thousands)
Beginning balance	$	3,446		$	7,318		$	7,193
Increases (decreases) due to foreign currency translations		—			—			—
Increases (decreases) as a result of positions taken during:		—			—			—
Prior periods		—			(3,872	)		1,238
Current period		29,773			—			1,798
Settlements with taxing authorities		—			—			—
Expiration of applicable statutes of limitation		(165	)		—			(2,911	)
Ending balance (1)	$	33,054		$	3,446		$	7,318

⁽¹⁾ Increases in uncertain tax positions are primarily due to acquisition of UNIWHEELS AG. These uncertain tax positions offset certain deferred tax assets of UNIWHEELS AG.