Note 14 - Income Taxes	3 Months Ended
Mar. 31, 2019
Notes to Financial Statements
Income Tax Disclosure [Text Block]	14 . INCOME TAXES The income tax provision for interim periods is generally determined using an estimate of the Company’s annual effective tax rate and adjusted for discrete items, if any, in the relevant period. Each quarter the estimate of the annual effective tax rate is updated, and if the Company’s estimated tax rate changes, a cumulative adjustment is made. The income tax benefit for the three months ended March 31, 2019 was $1.1 million, or 4.5% of pre-tax income. The effective tax rate differed from the federal statutory rate primarily due to foreign income from the Company’s subsidiaries in Bermuda and China being taxed at lower statutory tax rates, and the benefit obtained from certain discrete items recognized in the period, including excess tax benefits from stock-based compensation. The decrease in effective tax rate relative to the federal statutory rate was partially offset by the inclusion of the global intangible low-taxed income ("GILTI") tax. The income tax expense for the three months ended March 31, 2018 was $0.6 million, or 2.8% of pre-tax income. The effective tax rate differed from the federal statutory rate primarily due to foreign income from the Company’s subsidiaries in Bermuda and China being taxed at lower statutory tax rates, and the benefit obtained from certain discrete items recognized in the period, including excess tax benefits from stock-based compensation. The decrease in effective tax rate relative to the federal statutory rate was partially offset by the inclusion of the GILTI tax. For the three months ended March 31, 2019 and 2018, the Company’s effective tax rate included the estimated impact of $15.5 million and $12.4 million, respectively, related to the GILTI provisions that was included as additional subpart F income, which was accounted for as a period cost. The Company’s uncertain tax positions relate to the allocation of income and deductions between the Company’s global entities and to the determination of the research and development tax credit. It is reasonably possible that over the next twelve -month period, the Company may experience increases or decreases in its unrecognized tax benefits. However, it is not possible to determine either the magnitude or the range of increases or decreases at this time. In July 2018, the U.S. Ninth Circuit Court of Appeals overturned the U.S. Tax Court’s unanimous 2015 decision in Altera v. Commissioner , holding that the Internal Revenue Service ("IRS") did not violate the rule-making procedures required by the Administrative Procedures Act. In the case , the taxpayer challenged IRS regulations that required participants in qualified cost sharing arrangements to share stock based compensation costs. The Tax Court had invalidated those regulations, in part because the Treasury Department failed to adequately consider significant taxpayer comments when adopting them. In August 2018, the U.S. Ninth Circuit Court of Appeals withdrew its July 2018 opinion. At this time, the Treasury Department has not withdrawn the requirement from its regulations to include stock-based compensation in the cost pool to be shared under a cost-sharing arrangement. Due to the uncertainty surrounding the status of the current regulations, questions related to the scope of potential benefits, and the risk of the Tax Court’s decision being overturned upon appeal, the Company has not recorded any adjustments as of March 31, 2019. The Company will continue to monitor developments related to this case and the potential impact on its financial statements.

. INCOME TAXES

The income tax provision for interim periods is generally determined using an estimate of the Company’s annual effective tax rate and adjusted for discrete items, if any, in the relevant period. Each quarter the estimate of the annual effective tax rate is updated, and if the Company’s estimated tax rate changes, a cumulative adjustment is made.

The income tax benefit for the

three

months ended

March 31, 2019

was

$1.1

million, or

4.5%

of pre-tax income. The effective tax rate differed from the federal statutory rate primarily due to foreign income from the Company’s subsidiaries in Bermuda and China being taxed at lower statutory tax rates, and the benefit obtained from certain discrete items recognized in the period, including excess tax benefits from stock-based compensation. The decrease in effective tax rate relative to the federal statutory rate was partially offset by the inclusion of the global intangible low-taxed income ("GILTI") tax.

The income tax expense for the

three

months ended

March 31, 2018

was

$0.6

million, or

2.8%

For the

three

months ended

March 31, 2019

and

2018,

the Company’s effective tax rate included the estimated impact of

$15.5

million and

$12.4

million, respectively, related to the GILTI provisions that was included as additional subpart F income, which was accounted for as a period cost.

The Company’s uncertain tax positions relate to the allocation of income and deductions between the Company’s global entities and to the determination of the research and development tax credit. It is reasonably possible that over the next

twelve

-month period, the Company

may

experience increases or decreases in its unrecognized tax benefits. However, it is

not

possible to determine either the magnitude or the range of increases or decreases at this time.

July 2018,

the U.S. Ninth Circuit Court of Appeals overturned the U.S. Tax Court’s unanimous

2015

decision in

Altera v. Commissioner

, holding that the Internal Revenue Service ("IRS") did

not

violate the rule-making procedures required by the Administrative Procedures Act. In the case

the taxpayer challenged IRS regulations that required participants in qualified cost sharing arrangements to share stock based compensation costs. The Tax Court had invalidated those regulations, in part because the Treasury Department failed to adequately consider significant taxpayer comments when adopting them. In

August 2018,

the U.S. Ninth Circuit Court of Appeals withdrew its

July 2018

opinion. At this time, the Treasury Department has

not

withdrawn the requirement from its regulations to include stock-based compensation in the cost pool to be shared under a cost-sharing arrangement. Due to the uncertainty surrounding the status of the current regulations, questions related to the scope of potential benefits, and the risk of the Tax Court’s decision being overturned upon appeal, the Company has

not

recorded any adjustments as of

March 31, 2019.

The Company will continue to monitor developments related to this case and the potential impact on its financial statements.