Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

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,
	2019		2018		2017
	(percent of income)
Provision for federal income taxes at the statutory rate	21.0	%	21.0	%	35.0	%
State and local income taxes, net of federal benefit	1.7		2.0		0.4
Non-United States income taxed at different rates	(0.1)		(0.1)		(7.8)
Foreign tax credits	(0.1)		—		(0.1)
Adjustment to deferred taxes	(2.1)		—		(3.0)
Global Intangible Low-Taxed Income	—		0.4		—
Research credits	(0.5)		(0.6)		(0.7)
Withholding taxes	0.3		0.4		—
Excess tax benefits from stock plans	(1.6)		(1.4)		(2.3)
Other	(0.1)		0.7		0.5
Actual provision for income taxes, pre-provisional TCJA expense	18.5		22.4		22.0
Effects of the TCJA:
Reduction of United States federal corporate tax rate	—		(0.4)		5.6
Transition tax on foreign earnings	—		1.5		18.7
Deferred tax liability associated with future repatriations	—		0.5		8.9
Foreign tax credits	—		(0.2)		2.7
Provision for income taxes related to the TCJA	—		1.4		35.9
Actual provision for income taxes	18.5	%	23.8	%	57.9	%

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


	December 31,
(in thousands)	2019		2018
Deferred tax assets:
Accruals and allowances	$	38,532	$	39,276
Capitalized inventory costs	34,389		34,548
Stock compensation	5,013		4,318
Net operating loss carryforwards	23,660		18,800
Depreciation and amortization	32,293		39,511
Tax credits	2,329		1,353

Other	2,258		1,570
Gross deferred tax assets	138,474		139,376
Valuation allowance	(24,130)		(18,550)
Net deferred tax assets	114,344		120,826
Deferred tax liabilities:
Depreciation and amortization	(15,738)		(22,048)
Prepaid expenses	(2,661)		(2,301)
Deferred tax liability associated with future repatriations	(19,847)		(21,323)
Foreign currency loss	(3,610)		(6,520)
Gross deferred tax liabilities	(41,856)		(52,192)
Total net deferred taxes	$	72,488	$	68,634

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


	December 31,
(in thousands)	2019		2018		2017
Balance at beginning of year	$	11,064	$	10,512	$	9,998
Increases related to prior year tax positions	4,374		490		858
Decreases related to prior year tax positions	(5,423)		(1,093)		(2,895)
Increases related to current year tax positions	4,991		1,818		2,714
Settlements	(1,464)		319		—
Expiration of statute of limitations	(1,064)		(982)		(163)
Balance at end of year	$	12,478	$	11,064	$	10,512