Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

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



	Year Ended December 31,
	2018			2017			2016
	(In thousands)
Domestic	$	(120,784	)	$	(84,278	)	$	33,543
Foreign	5,795			18,634			82,325
Total	$	(114,989	)	$	(65,644	)	$	115,868

Schedule of Income Tax Provision (Benefit)

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



	Year Ended December 31,
	2018			2017			2016
	(In thousands)
Current:
Federal	$	(24,366	)	$	20,435		$	8,461
Foreign	9,163			(2,671		)	15,246
Total current	(15,203		)	17,764			23,707
Deferred:
Federal	—			20,592			1,121
Foreign	(4,091		)	(3,361		)	(2,181		)
Total deferred	(4,091		)	17,231			(1,060		)
Total	$	(19,294	)	$	34,995		$	22,647

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,
	2018		2017		2016
Federal income tax statutory rate	21.00	%	35.00	%	35.00	%
Foreign income tax rate differential	(0.94	)	2.41		(11.66	)
Foreign development tax incentive	0.24		1.78		(0.93	)
Nondeductible goodwill impairment	(5.21	)	—		—
Exempt income	2.32		—		—
Foreign inclusions (SubF / GILTI net of FTC)	(2.40	)	—		—
Transition tax (net of FTC)	5.80		(28.62	)	—
Nondeductible expenses	(1.03	)	(1.75	)	0.54
Foreign intellectual property tax benefit	—		16.06		(1.08	)
Manufacturing benefit	(1.18	)	—		(0.99	)
Change in valuation allowance	(1.99	)	(35.61	)	—
Changes to PY Accruals	(1.17	)	(4.01	)	0.48
Deferred tax rate change	0.66		(20.66	)	—
Change in Uncertain tax positions	(0.78	)	(25.59	)	—
Interest on net equity	1.02		3.15		—
Other	0.44		4.53		(1.81	)
Effective tax rate	16.78	%	(53.31	)%	19.55	%

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,
	2018		2017
	(In thousands)
Deferred tax assets:
Foreign tax credit carryforward	2,918		3,094
Inventory	28,181		20,816
Net operating losses	4,899		5,380
Allowance for doubtful accounts	1,729		1,200
Reserve for accrued liabilities	3,357		3,177
Stock options	3,908		3,553
Other	1,003		1,811
Total deferred tax assets	45,995		39,031
Valuation allowance	(31,833	)	(29,539	)
Deferred tax liabilities:
Property, plant and equipment	(6,601	)	(2,618	)
Goodwill & Intangibles	(881	)	(4,161	)
Other	(1,151	)	(781	)
Total deferred tax	(8,633	)	(7,560	)
Net deferred tax asset (liability)	5,529		1,932

Summary of Operating Loss Carryforwards



Tax operating losses		Expiration
(in thousands)
$	2,258	2019-2024
10,990		2025-2031
2,431		2032-2037
2,409		Indefinite
$	18,088

Schedule of Uncertain Tax Positions

A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions is as follows:



	2018		2017			2016
	(In thousands)
Balance at beginning of year	$	18,323	$	5,151		$	—
Additions for tax positions related to the current year	—		16,800			—
Additions for tax positions related to the prior year	325		—			3,628
Additions related to acquisitions	—		—			1,523
Settlements with tax authorities	—		(3,628		)	—
Balance at end of year	$	18,648	$	18,323		$	5,151