Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

In 2017, 2016 and 2015, pre-tax income (loss) was attributed to the following jurisdictions:



	Year Ended December 31,
(In thousands)	2017			2016		2015
Domestic operations	$	(12,852	)	$	165	$	(6,857	)
Foreign operations	20,140			25,023		42,832
Total	$	7,288		$	25,188	$	35,975

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes charged to operations was as follows:



	Year Ended December 31,
(In thousands)	2017			2016			2015
Current tax expense:
U.S. federal	$	3,406		$	1,748		$	2,726
State and local	72			374			189
Foreign	8,304			4,150			9,028
Total current	11,782			6,272			11,943
Deferred tax (benefit) expense:
U.S. federal	9,495			(1,416		)	(4,588		)
State and local	(369		)	(356		)	(87		)
Foreign	(3,297		)	304			(466		)
Total deferred	5,829			(1,468		)	(5,141		)
Total provision for income taxes	$	17,611		$	4,804		$	6,802

Schedule of Deferred Tax Assets and Liabilities

Net deferred tax assets were comprised of the following:



	December 31,
(In thousands)	2017			2016
Deferred tax assets:
Inventory reserves	$	1,104		$	1,396
Capitalized research costs	23			44
Capitalized inventory costs	609			704
Net operating losses	999			485
Acquired intangible assets	287			136
Accrued liabilities	1,239			4,739
Income tax credits	8,861			12,509
Stock-based compensation	2,712			3,376
Amortization of intangible assets	526			—
Total deferred tax assets	16,360			23,389
Deferred tax liabilities:
Depreciation	(944		)	(2,924		)
Allowance for doubtful accounts	(444		)	(241		)
Amortization of intangible assets	—			(780		)
Other	(2,680		)	(1,479		)
Total deferred tax liabilities	(4,068		)	(5,424		)
Net deferred tax assets before valuation allowance	12,292			17,965
Less: Valuation allowance	(8,802		)	(8,635		)
Net deferred tax assets	$	3,490		$	9,330

Schedule of Effective Income Tax Rate Reconciliation

The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pre-tax income from operations as a result of the following:



	Year Ended December 31,
(In thousands)	2017			2016			2015
Tax provision at statutory U.S. rate	$	2,551		$	8,554		$	12,232
Increase (decrease) in tax provision resulting from:
State and local taxes, net	(733		)	(553		)	(554		)
Foreign tax rate differential	(296		)	(3,244		)	(5,762		)
Foreign undistributed earnings, net of credits	14,211			—			—
Nondeductible items	891			839			874
Federal research and development credits	(620		)	(710		)	(678		)
Non-territorial income	(1,517		)	(1,458		)	(1,906		)
Withholding tax	1,078			1,762			1,985
Change in deductibility of social insurance	5			8			649
Uncertain tax positions	1,344			165			10
Stock-based compensation	479			—			—
Federal tax rate change	686			—			—
Valuation allowance	149			1,598			621
Foreign permanent benefit	(451		)	(2,110		)	(675		)
Other	(166		)	(47		)	6
Tax provision	$	17,611		$	4,804		$	6,802

Schedule of Unrecognized Tax Benefits Roll Forward

Changes to our gross unrecognized tax benefits were as follows:



	Year ended December 31,
(In thousands)	2017			2016			2015
Balance at beginning of period	$	3,622		$	3,469		$	3,486
Additions as a result of tax provisions taken during the current year	1,489			305			463
Subtractions as a result of tax provisions taken during the prior year	—			—			(161		)
Foreign currency translation	90			(93		)	(79		)
Lapse in statute of limitations	(141		)	(67		)	(241		)
Settlements	—			—			—
Other	21			8			1
Balance at end of period	$	5,081		$	3,622		$	3,469