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Income Taxes | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Note 18 — Income Taxes 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 |
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 |
As of December 31, 2020, deferred income taxes have not been provided on the undistributed earnings of the Company’s foreign subsidiaries since these earnings will not be taxable upon repatriation to the United States. These earnings will be primarily treated as previously taxed income from either the one-time transition tax or global intangible low-taxed income (“GILTI”) provision, or they will be offset with a 100% dividend received deduction. However, the Company continues to provide a deferred tax liability for foreign withholding tax that will be incurred with respect to the undistributed foreign earnings that are not permanently reinvested. 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 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 | %
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
We have incurred NOLs in various states associated with the benefits of the state dividends received reduction along with the foreign royalty exclusion. The state NOL carryforwards expire at various dates from 2021 to 2040. Management has concluded that it is more likely than not that a majority of these NOLs will not be utilized, and thus has not recognized the benefit of these NOLs. At December 31, 2020, certain non-U.S. subsidiaries had net operating loss carryforwards totaling $169,293. This amount included $7,441 in NOLs that expire at various dates from 2021 through 2025 and the remaining $161,851 have no expiration date. The Company had a valuation allowance recorded against $5,787 of the total non-U.S. subsidiaries’ net operating loss carryforwards as of December 31, 2020. The Company is subject to taxation in the United States and various state and foreign jurisdictions. As of December 31, 2020, the Company was no longer subject to U.S. Federal examinations by tax authorities for tax years before 2016 and was no longer subject to foreign examinations by tax authorities for tax years before 2014. During 2015, to entice the Company to construct a new facility in North Macedonia, the government of North Macedonia granted the Company a tax holiday, in combination with state aid, which released the Company from the obligation to pay corporate income taxes for a ten year period, subject to certain limitations. The amount of corporate income tax savings realized by the Company as a result of this tax holiday during 2020, 2019 and 2018, respectively, was zero as a result of operating losses generated during previous periods. The aggregate dollar effect and per share effect of the corporate income tax holiday during 2020, 2019 and 2018 was, therefore, immaterial. At December 31, 2020, 2019 and 2018, the Company had total unrecognized tax benefits of $4,967, $3,795 and $2,819, respectively, all of which, if recognized, would affect the effective income tax rates. 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 |
The Company classifies income tax-related penalties and net interest as income tax expense. In the years ended December 31, 2020, 2019 and 2018, income tax related interest and penalties were not material. It is reasonably possible that audit settlements, the conclusions of current examinations or the expiration of the statute of limitations in several jurisdictions could impact the Company’s unrecognized tax benefits. If recognized, all the Company’s gross unrecognized tax benefits would affect the Company’s effective tax rate.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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