Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income (loss) before income taxes consisted of the following:



	Year Ended December 31,
	2017			2016		2015
	(In thousands)
Domestic	$	(84,278	)	$	33,543	$	107,158
Foreign	18,634			82,325		142,613
Total	$	(65,644	)	$	115,868	$	249,771

Schedule of Income Tax Provision (Benefit)

The income tax provision (benefit) consists of the following:



	Year Ended December 31,
	2017			2016			2015
	(In thousands)
Current:
Federal	$	20,435		$	8,461		$	33,017
Foreign	(2,671		)	15,246			28,229
Total current	17,764			23,707			61,246
Deferred:
Federal	20,592			1,121			(1,611		)
Foreign	(3,361		)	(2,181		)	(1,872		)
Total deferred	17,231			(1,060		)	(3,483		)
Total	$	34,995		$	22,647		$	57,763

Schedule of Effective Income Tax Rate Reflected in Provision for Income Taxes and U.S. Federal Statutory Rate

The difference between the effective income tax rate reflected in the provision for income taxes and the U.S. federal statutory rate was as follows:



	Year Ended December 31,
	2017		2016		2015
Federal income tax statutory rate	35.0	%	35.0	%	35.0	%
Foreign income tax rate differential	2.4		(11.7	)	(7.3	)
Foreign development tax incentive	1.8		(0.9	)	(1.3	)
Manufacturing benefit	—		(1.1	)	(1.4	)
Foreign intellectual property tax benefit	16.1		(1.0	)	(0.8	)
Tax Cuts and Jobs Act (TCJA) Transition Tax	(49.7	)	—		—
Deferred tax rate change	(20.7	)	—		—
Change in valuation allowance	(35.6	)	—		—
Other	(2.6	)	(0.8	)	(1.1	)
Effective income tax rate	(53.3	)%	19.5	%	23.1	%

Components of Net Deferred Tax Assets (Liabilities)

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s net deferred tax assets (liabilities) are as follows:



	As of December 31,
	2017			2016
	(In thousands)
Net current deferred tax assets:
Inventory	$	20,816		$	21,531
Net operating losses	5,380			3,019
Allowance for doubtful accounts	1,200			1,311
Reserve for accrued liabilities	3,177			840
Stock options	3,553			6,052
Other	1,811			867
Net current deferred tax assets	35,937			33,620
Valuation allowance	$	(26,445	)	$	(3,071	)
Net non-current deferred tax liability:
Property, plant and equipment	(2,618		)	(7,899		)
Goodwill & Intangibles	(4,161		)	(1,653		)
Other	(781		)	1,699
Net non-current deferred tax liabilities	(7,560		)	(7,853		)
Net deferred tax asset	$	1,932		$	22,696

Schedule of Uncertain Tax Positions

A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions for the year ended December 31, 2017 is as follows:



	2017
	(In thousands)
Balance at beginning of year	$	5,717
Additions for tax positions related to the current year	16,800
Settlements with tax authorities	(3,628		)
Balance at end of year	$	18,889

Summary of Operating Loss Carryforwards

These operating losses will expire as shown in the table below.



Net operating losses		Expiration
(In thousands)
$	5,132	2019-2024
6,993		2025-2031
2,200		2032-2037
8,995		Indefinite
$	23,319