Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Components of Income Tax Expense (Benefit)

The following table sets forth income before taxes and the expense for income taxes:


	Year Ended December 31,
	2019		2018		2017
	(in thousands)
Income (loss) before taxes:
U.S.	$	58,822	$	10,088	$	(34,406)
Foreign	60,500		55,069		52,586
Total income (loss) before taxes	$	119,322	$	65,157	$	18,180
Income tax expense (benefit):
Current income taxes:
U.S. federal	$	1,284	$	1,156	$	1,383
U.S. state	1,427		246		127
Foreign	13,373		12,359		9,525
Total current income taxes	16,084		13,761		11,035
Deferred income taxes:
U.S. federal	(10,249)		276		1,300
U.S. state	(3,579)		—		—
Foreign	(2,431)		683		(4,393)
Total deferred income taxes	(16,259)		959		(3,093)
Total income tax expense (benefit)	$	(175)	$	14,720	$	7,942

Summary of Tax Expense and Effective Tax Rates

The following table sets forth income reconciliations of the statutory federal income tax rate to actual rates based on income or loss before income taxes:


	Year Ended December 31,
	2019						2018						2017
	(in thousands)
Income tax expense and rate attributable to:
Federal income tax rate	$	25,058	21.0	%	$	13,683	21.0	%	$	6,363	35.0	%
State income tax rate, net of federal benefit	5,983		5.0	%	1,271		2.0	%	53		0.3	%
Foreign income tax rate differential	1,994		1.7	%	7,630		11.6	%	(11,768)		(64.7)	%
Enacted changes in tax law	634		0.5	%	495		0.8	%	17,645		97.1	%
GILTI, net	7,585		6.4	%	3,443		5.3	%	—		—	%
Non-deductible / non-taxable items	6,727		5.7	%	3,602		5.5	%	6,006		33.0	%
Change in valuation allowance	(33,691)		(28.2)	%	(5,304)		(8.1)	%	24,400		134.2	%
U.S. tax on foreign earnings	—		—	%	—		—	%	(32,427)		(178.4)	%
Foreign tax credits	(12,541)		(10.5)	%	(7,709)		(11.9)	%	(7,980)		(43.9)	%
Uncertain tax positions	278		0.2	%	(1,696)		(2.6)	%	1,054		5.8	%
Audit settlements	391		0.3	%	183		0.3	%	354		1.9	%
Share-based compensation	(2,715)		(2.3)	%	764		1.2	%	882		4.9	%
Deferred income tax account adjustments	—		—	%	(25)		—	%	2,679		14.7	%
Other	122		0.1	%	(1,617)		(2.5)	%	681		3.8	%
Effective income tax expense and rate	$	(175)	(0.1)	%	$	14,720	22.6	%	$	7,942	43.7	%

Schedule of Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table sets forth deferred income tax assets and liabilities as of the date shown:


	December 31,
	2019		2018
	(in thousands)
Non-current deferred tax assets:
Share-based compensation expense	$	2,218	$	2,051
Accruals, reserves, and other expenses	13,726		18,734
Net operating loss	29,997		37,727
Intangible assets	990		1,363


Foreign tax credit	64,355		66,321
Operating lease liabilities ⁽¹⁾	36,996		—
Other	4,467		3,611
Valuation allowance	(79,023)		(113,237)
Total non-current deferred tax assets	$	73,726	$	16,570
Non-current deferred tax liabilities:
Unrealized gain on foreign currency	$	(529)	$	(164)
Property and equipment	(13,713)		(7,332)
Right-of-use assets ⁽¹⁾	(34,470)		—
Other	(267)		(411)
Total non-current deferred tax liabilities	$	(48,979)	$	(7,907)

⁽¹⁾ Adoption of new lease accounting guidance as of January 1, 2019, as described in Note 2 — Recent Accounting Pronouncements, resulted in the recognition of a right-of-use asset deferred tax liability and an operating lease liability deferred tax asset. These temporary differences will reverse over the life of the leases.

Schedule of Unrecognized Tax Benefits Roll Forward

The following table sets forth a reconciliation of the beginning and ending amount of unrecognized tax benefits:


	Year Ended December 31,
	2019		2018		2017
	(in thousands)
Unrecognized tax benefit as of January 1	$	4,511	$	6,204	$	4,750
Additions in tax positions taken in prior period	631		250		683
Reductions in tax positions taken in prior period	(1,532)		(690)		—
Additions in tax positions taken in current period	1,786		461		966
Settlements	(391)		(621)		(123)
Lapse of statute of limitations	(368)		(1,045)		(414)
Cumulative foreign currency translation adjustment	(24)		(48)		342
Unrecognized tax benefit as of December 31	$	4,613	$	4,511	$	6,204

Summary of Income Tax Examinations

The following table sets forth the tax years subject to examination for the major jurisdictions where we conduct business as of December 31, 2019:


The Netherlands			2005 to 2019
Canada			2011 to 2019
Japan			2012 to 2019
China			2009 to 2019
Singapore			2014 to 2019
United States			2010 to 2019