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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Income Before Income Taxes
Income before income taxes for the years ended December 31, 2016, 2015 and 2014 consisted of:
(in thousands)
2016
 
2015
 
2014
Pretax income in The Netherlands
$
20,695

 
$
1,310

 
$
(4,931
)
Pretax income from foreign operations
36,213

 
134,993

 
124,320

 
$
56,908

 
$
136,303

 
$
119,389
Provision for Income Taxes
Income taxes for the years ended December 31, 2016, 2015 and 2014 are as follows:
(in thousands)
2016
 
2015
 
2014
Current—The Netherlands
$
6,043

 
$
973

 
$
936

—Foreign
36,536

 
41,862

 
41,667

 
42,579

 
42,835

 
42,603

Deferred—The Netherlands
188

 
250

 
317

—Foreign
(66,162
)
 
(36,684
)
 
(40,464
)
 
(65,974
)
 
(36,434
)
 
(40,147
)
Total income tax expense (benefit)
$
(23,395
)
 
$
6,401

 
$
2,456
Schedule of Statutory Rate and Effective Tax Rate
The principal items comprising the differences between income taxes computed at The Netherlands statutory rate and our reported income taxes and effective tax rate for the years ended December 31, 2016, 2015 and 2014 are as follows:
 
2016
 
2015
 
2014
(in thousands)
Amount
 
Percent
 
Amount
 
Percent
 
Amount
 
Percent
Income taxes at The Netherlands statutory rate
$
14,227

 
25.0
 %
 
$
34,076

 
25.0
 %
 
$
29,847

 
25.0
 %
Taxation of foreign operations, net(1)
(43,265
)
 
(76.0
)
 
(36,407
)
 
(26.7
)
 
(29,958
)
 
(25.1
)
Tax impact from non-deductible items
5,938

 
10.4

 
14,219

 
10.4

 
10,263

 
8.6

Tax impact from tax-exempt income(2)
(3,331
)
 
(5.9
)
 
(5,810
)
 
(4.3
)
 
(2,589
)
 
(2.2
)
Tax contingencies, net
1,761

 
3.1

 
1,163

 
0.9

 
4,409

 
3.7

Taxes due to changes in tax rates
399

 
0.7

 
(836
)
 
(0.6
)
 
330

 
0.3

Government incentives and other deductions(3)
(2,543
)
 
(4.5
)
 
(2,754
)
 
(2.0
)
 
(8,617
)
 
(7.2
)
Prior year taxes
1,411

 
2.5

 
(1,201
)
 
(0.9
)
 
(1,950
)
 
(1.6
)
Valuation allowance
1,521

 
2.7

 
3,450

 
2.5

 
—

 
—

Other items, net
487

 
0.9

 
501

 
0.4

 
721

 
0.6

Total income tax expense (benefit)
$
(23,395
)
 
(41.1
)%
 
$
6,401

 
4.7
 %
 
$
2,456

 
2.1
 %

  ____________________
(1) Our effective tax rate reflects the benefit of our global operations where certain income or loss is taxed at rates higher or lower than The Netherlands’ statutory rate of 25% as well as the benefit of some income being partially exempt from income taxes due to various intercompany operating and financing activities. The most significant tax benefits from these foreign operations and financing activities are attributable to subsidiaries in Germany, Singapore, Switzerland, Ireland and Luxembourg. These foreign tax benefits are due to a combination of favorable tax laws, regulations, rulings, and exemptions in these jurisdictions. Additionally, in 2016 and 2014, in certain foreign jurisdictions (primarily Germany and the United States), we recorded acquisition related and impairment charges which reduced pretax income in these higher tax jurisdictions.
(2) The impact from tax-exempt income primarily reflects The Netherlands’ benefit of the 2006 and 2004 Notes discussed in Note 15 “Lines of Credit and Debt.” These notes were redeemed in 2014 and 2015, respectively, and accordingly the related income tax benefit of $2.6 million in 2014, did not and will not impact our effective tax rate in 2015 and beyond. In 2016, tax-exempt income includes nontaxable income in the U.S. from the release of contingent consideration accruals and nontaxable dividend income in Switzerland.
(3) Government incentives include favorable tax regulations primarily in France in 2014 and the United States relating to research and development expense as well as the United States Internal Revenue Code Section 199 domestic production activities deduction.
Changes in Gross Amounts of Unrecognized Tax Benefits
Changes in the amount of unrecognized tax benefits are as follows:
 
(in thousands)
Unrecognized Tax Benefits
BALANCE AT DECEMBER 31, 2014
$
16,002

Additions based on tax positions related to the current year
2,018

Additions for tax positions of prior years
2,640

Settlements with taxing authorities
(2,988
)
Reductions due to lapse of statute of limitations
(747
)
Decrease from currency translation
(190
)
BALANCE AT DECEMBER 31, 2015
$
16,735

Additions based on tax positions related to the current year
4,218

Additions for tax positions of prior years
5,162

Decrease for tax position of prior years
(6,796
)
Settlements with taxing authorities
—

Reductions due to lapse of statute of limitations
(288
)
Decrease from currency translation
(737
)
BALANCE AT DECEMBER 31, 2016
$
18,294
Components of Net Deferred Tax Liabilities
The components of the net deferred tax asset and liability at December 31, 2016 and 2015 are as follows:
 
2016
 
2015
(in thousands)
Deferred
Tax Assets
 
Deferred
Tax Liability
 
Deferred
Tax Assets
 
Deferred
Tax Liability
Net operating loss carryforwards
$
46,627

 
$
—

 
$
25,771

 
$
—

Accrued and other current liabilities
24,663

 
—

 
22,648

 
—

Inventories
2,919

 
(1,567
)
 
2,394

 
(1,060
)
Allowance for bad debts
1,060

 
(451
)
 
1,121

 
(465
)
Currency revaluation
3,474

 
(73
)
 
934

 
(132
)
Property, plant and equipment
2,096

 
(19,733
)
 
1,859

 
(27,854
)
Capital lease
830

 
—

 
1,793

 
—

Tax credit carryforwards
915

 
—

 
1,110

 
—

Unremitted profits and earnings
—

 
(923
)
 
—

 
(902
)
Intangible assets
586

 
(137,682
)
 
272

 
(150,594
)
Share-based compensation
20,282

 
—

 
20,841

 
—

Deferred interest deductions
76,793

 
—

 
54,307

 
—

Convertible debt
12,313

 
—

 
13,765

 
—

Other
2,652

 
(1,507
)
 
2,080

 
(1,154
)
 
195,210

 
(161,936
)
 
148,895

 
(182,161
)
Valuation allowance
(5,511
)
 
—

 
(3,703
)
 
—

 
$
189,699

 
$
(161,936
)
 
$
145,192

 
$
(182,161
)
Net deferred tax assets (liabilities)
 
 
$
27,763

 
 
 
$
(36,969
)