Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

The income tax provisions were calculated based upon the following components of earnings before income tax for the years ended December 31, 2021, 2020 and 2019:

	Year Ended December 31,
	2021			2020			2019
Earnings before income tax:
Domestic	$	(4,547	)	$	(11,374	)	$	74,531
Foreign		118,399			92,930			(15,380	)
Earnings before income tax	$	113,852		$	81,556		$	59,151

Provision for Income Taxes

The components of the provision for income taxes for the years ended December 31, 2021, 2020 and 2019 are summarized as follows:

	Year Ended December 31,
	2021			2020			2019
Current income tax expense:
Federal	$	1,944		$	784		$	262
State and local		234			83			94
Foreign		18,390			20,150			17,672
Total current income tax expense	$	20,568			21,017			18,028
Deferred income tax (benefit) expense:
Federal		(4,400	)		(2,302	)		(2,490	)
State and local		(91	)		32			(1	)
Foreign		4,341			3,119			(5,252	)
Total deferred (benefit) income tax expense		(150	)		849			(7,743	)
Total income tax expense	$	20,418		$	21,866		$	10,285

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, 2021 and 2020:

	December 31,
	2021			2020
Deferred tax assets:
Net operating losses	$	25,610		$	22,658
Intangible assets		21,179			29,145
Research and development credits		9,736			10,773
Property and equipment		7,071			7,426
Valuation reserves and accrued liabilities		7,333			7,131
Capitalized Research and Development Costs		9,018
Stock compensation		3,832			4,200
Defined benefit obligation		1,466			1,974
Inventory		1,914			1,571
Other credits		10,158			12,068
Unrealized foreign currency exchange loss		—			1,431
Other		146			64
Total deferred tax asset		97,463			98,441
Valuation allowance		(16,090	)		(17,197	)
Deferred tax liabilities:
Unrealized foreign currency exchange gains	$	(2,488	)	$	—
Undistributed profits of subsidiary		(6,676	)		(5,727	)
Property and equipment		(2,420	)		(2,758	)
Other		(1,428	)		(572	)
Total deferred tax liability		(13,012	)		(9,057	)
Net deferred tax asset	$	68,361		$	72,187

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, 2021, 2020 and 2019 are as follows:

	Year Ended December 31,
	2021			2020			2019
Statutory Federal income tax rate		21.0	%		21.0	%		21.0	%
Increase (decrease) resulting from:
Change in valuation allowance		(1.2	)%		(0.4	)%		11.5	%
Effect of different tax rates of foreign jurisdictions		(5.2	)%		(4.7	)%		(24.8	)%
US taxes on foreign income, net of taxes paid credit		2.0	%		2.5	%		4.3	%
Tax credits & deductions related to R&D		(2.3	)%		(3.8	)%		(3.6	)%
Non-deductible expenses		1.7	%		2.1	%		3.4	%
Other foreign, state and local taxes		1.6	%		1.4	%		1.7	%
Tax effects of intercompany transfers		0.6	%		1.4	%		1.5	%
Undistributed profit of subsidiaries		1.0	%		0.9	%		1.2	%
Stock Option Compensation		(2.0	)%		(0.4	)%		1.0	%
Audit Settlements and Statute Expirations		0.0	%		3.9	%		0.6	%
Other		0.7	%		2.9	%		(0.4	)%
Effective rate		17.9	%		26.8	%		17.4	%

Net Operating Loss Carryforwards

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

Jurisdiction

Amount as of

December 31, 2021

Years of Expiration

U.S. state income tax

67,795

2022-2041

Foreign

199,153

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,
	2021			2020			2019
Balance at beginning of year	$	4,967		$	3,795		$	2,819
Additions based on tax position related to current year		1,105			1,489			661
Additions based on tax position related to prior year		160			179			352
Reductions from settlements and statute of limitation expiration		(312	)		(650	)		—
Effect of foreign currency translation		(255	)		154			(37	)
Balance at end of year	$	5,665		$	4,967		$	3,795