Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

In 2019, 2018 and 2017, pre-tax income (loss) was attributed to the following jurisdictions:



	Year Ended December 31,
(In thousands)	2019			2018			2017
Domestic operations	$	(28,929	)	$	(28,482	)	$	(12,852	)
Foreign operations	39,331			54,648			20,140
Total	$	10,402		$	26,166		$	7,288

Provision for Income Taxes

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



	Year Ended December 31,
(In thousands)	2019			2018			2017
Current tax expense:
U.S. federal	$	(188	)	$	(1,074	)	$	3,406
State and local	82			83			72
Foreign	8,217			10,829			8,304
Total current	8,111			9,838			11,782
Deferred tax (benefit) expense:
U.S. federal	—			3,961			9,495
State and local	—			1,930			(369		)
Foreign	(1,339		)	(1,487		)	(3,297		)
Total deferred	(1,339		)	4,404			5,829
Total provision for income taxes	$	6,772		$	14,242		$	17,611

Net Deferred Tax Assets

Net deferred tax assets were comprised of the following:



	December 31,
(In thousands)	2019			2018
Deferred tax assets:
Inventory reserves	$	2,887		$	1,428
Capitalized research costs	—			22
Capitalized inventory costs	3,156			1,541
Net operating losses	2,644			2,810
Acquired tangible assets	71			1,204
Accrued liabilities	4,070			1,090
Income tax credits	11,800			10,020
Operating lease obligations	7,878			—
Stock-based compensation	4,018			3,181
Amortization of intangible assets	2,169			1,135
Total deferred tax assets	38,693			22,431
Deferred tax liabilities:
Depreciation	426			661
Allowance for doubtful accounts	(270		)	(739		)
Right of use assets	(7,480		)	—
Other	(3,866		)	(4,189		)
Total deferred tax liabilities	(11,190		)	(4,267		)
Net deferred tax assets before valuation allowance	27,503			18,164
Less: Valuation allowance	(24,797		)	(17,261		)
Net deferred tax assets	$	2,706		$	903

Reconciliation of Tax Provision at Statutory U.S. Rate to Provision for Income Taxes

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)	2019			2018			2017
Tax provision at statutory U.S. rate	$	2,185		$	5,495		$	2,551
Increase (decrease) in tax provision resulting from:
State and local taxes, net	(1,903		)	(1,792		)	(733		)
Foreign tax rate differential	(1,810		)	(2,079		)	(296		)
Foreign undistributed earnings, net of credits	1,181			5,329			14,211
Nondeductible items	1,236			1,197			891
Federal research and development credits	(884		)	(713		)	(620		)
Non-territorial income	(1,806		)	(1,079		)	(1,517		)
Withholding tax	1,082			5,454			1,078
Uncertain tax positions	(294		)	(159		)	1,344
Stock-based compensation	262			213			479
Federal tax rate change	(412		)	466			686
Valuation allowance	7,524			8,057			149
Foreign permanent benefit	(856		)	(7,077		)	(451		)
Provision to return	584			—			—
Other	683			930			(161		)
Tax provision	$	6,772		$	14,242		$	17,611

Changes to Gross Unrecognized Tax Benefits

Changes to our gross unrecognized tax benefits were as follows:



	Year Ended December 31,
(In thousands)	2019			2018			2017
Balance at beginning of period	$	4,040		$	5,081		$	3,622
Additions as a result of tax provisions taken during the current year	473			702			1,489
Foreign currency translation	(100		)	(51		)	90
Lapse in statute of limitations	(92		)	(80		)	(141		)
Settlements	(227		)	(1,612		)	—
Other	—			—			21
Balance at end of period	$	4,094		$	4,040		$	5,081