Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Summary of Income (Loss) Before Income Taxes By Region

Total income (loss) before income taxes summarized by region for the years ended December 31 is as follows (in thousands):

	Year Ended December 31,
	2016			2015			2014
United States	$	77,538		$	128,489		$	11,462
Foreign		(12,830	)		(16,470	)		(22,672	)
Total income (loss) before income taxes	$	64,708		$	112,019		$	(11,210	)

Components of Income Tax Provision (Benefit)

The income tax provision (benefit) for the years ended December 31 consists of the following (in thousands):

	Year Ended December 31,
	2016			2015			2014
Current:
Federal	$	(14,837	)	$	1,480		$	32,387
State		1,283			178			3,359
Foreign		2,350			2,090			2,259
Total current provision		(11,204	)		3,748			38,005
Deferred:
Federal		40,338			42,719			(28,604	)
State		1,453			4,433			(2,296	)
Foreign		(2,583	)		(698	)		(1,528	)
Total deferred provision		39,208			46,454			(32,428	)
Changes in tax rate		(216	)		266			(84	)
Changes in valuation allowance		1,494			(3,739	)		793
Total provision	$	29,282		$	46,729		$	6,286

Reconciliation of Income Tax from Statutory Tax Rate to Effective Income Tax Rate

The differences between the income tax provision at the United States federal statutory tax rate and the Company’s effective tax rate for the years ended December 31 are the following (in thousands):

	Year Ended December 31,
	2016			2015			2014
Tax provision at federal statutory rate	$	22,648		$	39,207		$	(3,923	)
Globalization initiative		6,290			9,039			9,244
Acquisition related charges		5,167			—			—
State income tax		3,243			4,264			827
Valuation allowance		1,494			(3,739	)		793
Income tax reserves		759			2,301			657
Compensation expense		(8,013	)		(2,115	)		1,428
Income tax credits and incentives		(3,426	)		(1,754	)		(2,198	)
Non-deductible meals and entertainment		1,013			638			521
Foreign earnings taxed as non-United States rates		605			(494	)		(199	)
Other		(498	)		(618	)		(864	)
Total provision	$	29,282		$	46,729		$	6,286

Significant Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities at December 31 are composed of the following (in thousands):

	December 31,
	2016			2015
Deferred tax assets:
Litigation and related accrual	$	—		$	34,054
Share-based compensation		18,227			23,641
Inventory		16,324			13,344
Net operating loss carryforwards		9,976			3,484
General business and other credit carryforwards		21,215			5,425
Deferred rent		4,347			5,154
Original issue discount		8,817			—
Other		20,589			14,739
Gross deferred tax assets		99,495			99,841
Less valuation allowance		(10,544	)		(7,290	)
Net deferred tax assets		88,951			92,551
Deferred tax liabilities:
Depreciation		(29,888	)		(24,361	)
Original issue discount		—			(1,090	)
Acquired intangibles		(69,428	)		(295	)
Other		(1,687	)		(1,278	)
Total deferred tax liabilities		(101,003	)		(27,024	)
Consolidated net deferred tax (liabilities) assets	$	(12,052	)	$	65,527
Add deferred tax liability, net, attributable to non-controlling interests		528			897
Net deferred tax (liabilities) assets	$	(11,524	)	$	66,424

Summary of Unrecognized Tax Benefits

The following table summarizes the activity related to the Company’s unrecognized tax benefits (in thousands):

	Year Ended December 31,
	2016			2015			2014
Gross unrecognized tax benefits at January 1	$	12,448		$	12,372		$	4,504
Increases in tax positions for prior years		1,716			2,614			5,294
Decreases in tax positions for prior years		(270	)		(3,156	)		—
Increases in tax positions for current year relating to ongoing operations		6,205			618			2,574
Increases in tax positions for current year relating to acquisitions		3,223			—			—
Gross unrecognized tax benefits at December 31	$	23,322		$	12,448		$	12,372