Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Consolidated income from continuing operations before income taxes consisted of the following (in thousands):

The components of the provision (benefit) for income taxes consisted of the following (in thousands):

The following is a reconciliation of the statutory federal income tax rate to the effective rate reported in the financial statements:



	Year Ended December 31,
	2017		2016		2015
	(percent of income)
Provision for federal income taxes at the statutory rate	35.0	%	35.0	%	35.0	%
State and local income taxes, net of federal benefit	0.4		1.5		2.2
Non-U.S. income taxed at different rates	(7.8	)	(5.8	)	(3.9	)
Foreign tax credits	(0.1	)	(3.0	)	(1.7	)
Foreign deferred tax asset	(3.0	)	(2.5	)	—
Reduction of unrecognized tax benefits	—		—		(0.8	)
Research credits	(0.7	)	(0.8	)	(0.9	)
Reduction of valuation allowance	—		—		(2.7	)
Excess tax benefits from stock plans	(2.3	)	(2.1	)	—
Other	0.5		0.5		0.1
Actual provision for income taxes, pre-TCJA	22.0		22.8		27.3

Effects of the TCJA:
Reduction of U.S. federal corporate tax rate	5.6		—		—
Transition tax on foreign earnings	18.7		—		—
Deferred tax liability associated with future repatriations	8.9		—		—
Foreign tax credits	2.7		—		—
Provision for income taxes related to the TCJA	35.9		—		—

Actual provision for income taxes	57.9	%	22.8	%	27.3	%

Significant components of the Company's deferred taxes consisted of the following (in thousands):



	December 31,
	2017			2016
Deferred tax assets:
Accruals and allowances	$	37,971		$	51,724
Capitalized inventory costs	21,625			39,661
Stock compensation	3,867			6,476
Net operating loss carryforwards	20,085			3,637
Depreciation and amortization	25,020			19,313
Tax credits	31			443
Foreign currency gain	5,657			—
Other	276			263
Gross deferred tax assets	114,532			121,517
Valuation allowance	(16,428		)	(1,323		)
Net deferred tax assets	98,104			120,194
Deferred tax liabilities:
Depreciation and amortization	(15,395		)	(25,703		)
Prepaid expenses	(2,383		)	—
Deferred tax liability associated with future repatriations	(23,690		)	—
Foreign currency loss	—			(667		)
Other	—			(1,477		)
Gross deferred tax liabilities	(41,468		)	(27,847		)
Total net deferred taxes	$	56,636		$	92,347

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands):



	December 31,
	2017			2016			2015
Balance at beginning of year	$	9,998		$	11,187		$	6,630
Increases related to prior year tax positions	858			2,514			365
Decreases related to prior year tax positions	(2,895		)	(5,119		)	(2,019		)
Increases related to current year tax positions	2,714			1,599			6,564
Expiration of statute of limitations	(163		)	(183		)	(353		)
Balance at end of year	$	10,512		$	9,998		$	11,187