Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

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

	Year Ended December 31,
	2019			2018			2017
	(In thousands)
Domestic	$	(51,041	)	$	(120,784	)	$	(84,278	)
Foreign		61,470			5,795			18,634
Total	$	10,429		$	(114,989	)	$	(65,644	)

Schedule of Income Tax Provision (Benefit)

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

	Year Ended December 31,
	2019			2018			2017
	(In thousands)
Current:
Federal	$	(569	)	$	(24,366	)	$	20,435
Foreign		8,513			9,163			(2,671	)
Total current		7,944			(15,203	)		17,764
Deferred:
Federal		-			-			20,592
Foreign		765			(4,091	)		(3,361	)
Total deferred		765			(4,091	)		17,231
Total	$	8,709		$	(19,294	)	$	34,995

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,
	2019			2018			2017
Federal income tax statutory rate		21.00	%		21.00	%		35.00	%
Foreign income tax rate differential		16.20			(0.94	)		2.41
Foreign development tax incentive		(0.91	)		0.24			1.78
Nondeductible goodwill impairment		-			(5.21	)		-
Exempt income		(24.02	)		2.32			-
Foreign taxes and inclusions (net of FTC)		21.00			(1.83	)		-
Transition tax (net of FTC)		-			5.80			(28.62	)
Nondeductible expenses		15.51			(1.03	)		(1.75	)
Foreign intellectual property tax benefit		-			-			16.06
Manufacturing benefit		-			(1.18	)		-
Change in valuation allowance		24.96			(1.99	)		(35.61	)
Changes to PY Accruals		6.28			(1.17	)		(4.01	)
Deferred tax rate change		(0.36	)		0.66			(20.66	)
Change in Uncertain tax positions		4.31			(0.78	)		(25.59	)
Interest on net equity		-			1.02			3.15
General business credits		(11.14	)		0.59			1.39
Branch income		9.64			(0.66	)		-
Other		1.03			(0.06	)		3.14
Effective tax rate		83.50	%		16.78	%		(53.31	)%

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,
	2019			2018
	(In thousands)
Deferred tax assets:
Foreign tax credit carryforward	$	4,817		$	2,918
Inventory		17,777			28,181
Net operating losses		18,991			4,899
Allowance for doubtful accounts		358			1,729
Reserve for accrued liabilities		2,732			3,357
Stock options		2,782			3,908
Unrealized gain/loss		1,862			-
Other		867			1,003
Total deferred tax assets		50,186			45,995
Valuation allowance		(34,464	)		(31,833	)
Deferred tax liabilities:
Property, plant and equipment		(5,757	)		(6,601	)
Goodwill & Intangibles		(2,092	)		(881	)
Deferred revenue		(1,830	)		-
Other		(1,257	)		(1,151	)
Total deferred tax liability		(10,936	)		(8,633	)
Net deferred tax asset	$	4,786		$	5,529

Summary of Operating Loss Carryforwards

Tax operating loss carryforwards totaled $88.9 million at December 31, 2019. These operating losses will expire as shown in the table below.

Tax operating losses		Expiration
(in thousands)
$	3,633	2020-2025
	1,658	2026-2032
	1,985	2033-2038
	81,591	Indefinite
$	88,867

Schedule of Uncertain Tax Positions

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

	2019		2018		2017
	(In thousands)
Balance at beginning of year	$	18,648	$	18,323	$	5,151
Additions for tax positions related to the current year		-		-		16,800
Additions for tax positions related to the prior year		17		325		-
Settlements with tax authorities		-		-		(3,628	)
Balance at end of year	$	18,665	$	18,648	$	18,323