Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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

	Year Ended December 31,
	2020			2019			2018
	(In thousands)
Domestic	$	(76,056	)	$	(51,041	)	$	(120,784	)
Foreign		14,007			61,470			5,795
Total	$	(62,049	)	$	10,429		$	(114,989	)

Schedule of Income Tax Provision (Benefit)

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

	Year Ended December 31,
	2020			2019			2018
	(In thousands)
Current:
Federal	$	(44,752	)	$	(569	)	$	(24,366	)
Foreign		8,454			8,513			9,163
Total current		(36,298	)		7,944			(15,203	)
Deferred:
Federal		-			-			-
Foreign		5,017			765			(4,091	)
Total deferred		5,017			765			(4,091	)
Total	$	(31,281	)	$	8,709		$	(19,294	)

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,
	2020			2019			2018
Federal income tax statutory rate		21.00	%		21.00	%		21.00	%
CARES ACT NOL rate differential (2019 and 2020)		32.60			-			-
Accrual for undistributed earnings		(5.15	)		-			-
Foreign income tax rate differential		(1.03	)		16.20			(0.94	)
Foreign development tax incentive		(0.38	)		(0.91	)		0.24
Nondeductible goodwill impairment		(2.42	)		-			(5.21	)
Exempt income		1.25			(24.02	)		2.32
Foreign taxes and inclusions (net of FTC)		(9.26	)		21.00			(1.83	)
Transition tax (net of FTC)		-			-			5.80
Nondeductible expenses		(5.35	)		15.51			(1.03	)
Manufacturing benefit		(7.32	)		-			(1.18	)
Change in valuation allowance		28.26			24.96			(1.99	)
Changes to PY Accruals		(3.15	)		6.28			(1.17	)
Deferred tax rate change		(0.10	)		(0.36	)		0.66
Change in Uncertain tax positions		(0.83	)		4.31			(0.78	)
Interest on net equity		-			-			1.02
General business credits		2.32			(11.14	)		0.59
Branch income		(0.31	)		9.64			(0.66	)
Other		0.28			1.03			(0.06	)
Effective tax rate		50.41	%		83.50	%		16.78	%

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,
	2020			2019
	(In thousands)
Deferred tax assets:
Foreign tax credit carryforward	$	6,549		$	4,817
Inventory		13,536			17,777
Net operating losses		1,250			18,991
Allowance for doubtful accounts		490			358
Reserve for accrued liabilities		4,029			2,732
Stock options		1,670			2,782
Unrealized gain/loss		1,554			1,862
Disallowed interest carryforward		1,912			-
Other		1,939			867
Total deferred tax assets		32,929			50,186
Valuation allowance		(17,049	)		(34,464	)
Deferred tax liabilities:
Property, plant and equipment		(6,048	)		(5,757	)
Goodwill & Intangibles		(1,903	)		(2,092	)
Deferred revenue		(3,415	)		(1,830	)
Reserve for unremitted earnings		(3,608	)		-
Other		(1,917	)		(1,257	)
Total deferred tax liability		(16,891	)		(10,936	)
Net deferred tax asset	$	(1,011	)	$	4,786

Summary of Operating Loss Carryforwards

Tax operating loss carryforwards totaled $5.2 million (gross) at December 31, 2020. These operating losses will expire as shown in the table below.

Tax operating losses		Expiration
(in thousands)
$	1,466	2021-2026
	29	2027-2033
	1,899	2034-2039
	1,827	Indefinite
$	5,221

Schedule of Uncertain Tax Positions

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

	2020			2019		2018
	(In thousands)
Balance at beginning of year	$	18,665		$	18,648	$	18,323
Additions for tax positions related to the current year		3			-		-
Reductions for tax positions related to the prior year		(3	)		17		325
Balance at end of year	$	18,665		$	18,665	$	18,648