Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Deferred Tax Assets and Deferred Tax Liabilities

The deferred tax assets and deferred tax liabilities and related valuation allowance were comprised of the following:

	December 31,
	2019			2018
Deferred tax assets:
Net operating losses	$	17,881		$	7,666
Intangible assets		33,609			42,853
Research and development credits		9,752			8,211
Depreciation		7,223			6,321
Valuation reserves and accrued liabilities		7,196			4,849
Foreign tax credit		262			376
Stock compensation		3,485			4,128
Inventory		1,284			1,069
Patents		134			150
Defined benefit obligation		2,027			1,796
Other credits		11,491			3,701
Other	$	114			89
Total deferred tax asset		94,458			81,209
Valuation allowance		(28,763	)		(9,977	)
Deferred tax liabilities:
Unrealized foreign currency exchange gains		(674	)		(554	)
Undistributed profits of subsidiary		(4,629	)		(4,352	)
Property and equipment		(3,366	)		(2,896	)
Other		(733	)		(583	)
Total deferred tax liability		(9,402	)		(8,385	)
Net deferred tax asset	$	56,293		$	62,847

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 each of the three years in the period ended December 31, 2019 are as follows:

	Year Ended December 31,
	2019			2018			2017
Statutory Federal income tax rate		21.0	%		21.0	%		34.0	%
Increase (decrease) resulting from:
Change in Valuation Allowance		30.7	%		(6.6	)%		10.6	%
Effect of different tax rates of foreign jurisdictions		(24.8	)%		(6.6	)%		(20.8	)%
US Tax Reform Items		4.3	%		10.8	%		29.1	%
Research and Development Credits		(2.3	)%		(2.5	)%		(4.6	)%
Non-deductible expenses		2.1	%		3.4	%		2.4	%
Foreign, state and local tax, net of Federal benefit		1.7	%		1.8	%		0.8	%
Tax effects of intercompany transfers		1.5	%		0.8	%		(5.0	)%
Undistributed profit of subsidiaries		1.2	%		1.2	%		5.8	%
Other		1.2	%		4.6	%		(1.0	)%
Stock Compensation Expense		0.0	%		0.0	%		(2.2	)%
Effective Rate		36.6	%		27.9	%		49.1	%

Net Operating Loss Carryforwards

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

Jurisdiction	Amount as of December 31, 2019		Years of Expiration
U.S. Federal and state income tax	$	85,828	2020-2039
Foreign	$	13,153	2020-2024
Foreign	$	109,665	Never

Earnings Before Income Taxes

The earnings before income taxes and our tax provision are comprised of the following:

	Year Ended December 31,
	2019			2018		2017
Income (loss) before income taxes:
Domestic	$	74,531		$	10,092	$	1,258
Foreign		(15,380	)		48,027		67,997
Total income before income taxes	$	59,151		$	58,119	$	69,255

Provision for Income Taxes

	Year Ended December 31,
	2019			2018			2017
Current income tax expense (benefit):
Federal	$	262		$	340		$	4,140
State and local		94			(71	)		150
Foreign		17,672			9,224			24,672
Total current income tax expense		18,028			9,493			28,962
Deferred income tax expense (benefit):
Federal		(2,490	)		(1,422	)		15,207
State and local		(1	)		20			2,308
Foreign		6,108			8,129			(12,449	)
Total deferred income tax expense		3,617			6,727			5,066
Total tax expense	$	21,645		$	16,220		$	34,028

Reconciliation of Unrecognized Tax Benefits

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

	Year Ended December 31,
	2019			2018			2017
Balance at beginning of year	$	2,819		$	3,812		$	3,877
Additions based on tax position related to current year		661			221			1,758
Additions based on tax position related to prior year		352			423			(105	)
Reductions from settlements and statute of limitation expiration		—			(1,469	)		(2,247	)
Effect of foreign currency translation		(37	)		(168	)		529
Balance at end of year	$	3,795		$	2,819		$	3,812