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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Tax Provision (Benefit) for Income Taxes

Tax provision (benefit) for income taxes consisted of the following:


	Years Ended December 31,
			2019			2018			2017
			(In thousands)
Current
Domestic ⁽¹⁾	$	16,250		$	9,166		$	12,775
Foreign	1,140			41,412			14,628
Total	17,390			50,578			27,403
Deferred
Domestic ⁽¹⁾	$	7,412		$	6,164		$	5,853
Foreign	8,414			(9,798)			(13,520)
Total	15,826			(3,634)			(7,667)
Provision for income taxes	$	33,216		$	46,944		$	19,736

⁽¹⁾Domestic refers to Germany.

Schedule of Income before Income Taxes

Income before income taxes for fiscal years 2019, 2018 and 2017 is as follows:


	Years Ended December 31,
			2019			2018			2017
			(In thousands)
Domestic ⁽¹⁾	$	112,427		$	115,594		$	121,061
Foreign	7,710			52,660			(36,465)
Income before income taxes	$	120,137		$	168,254		$	84,596

⁽¹⁾Domestic refers to Germany.

Schedule of Effective Tax Rate Reconciliation

The following tax reconciliation shows the difference between the expected income taxes using the German overall tax rate of 32.0% and the effective income taxes in the income statement, for the years ended December 31, 2019, 2018 and 2017, respectively. The German tax rate is applied due to the fact that the primary operating entity is located in Germany and this entity holds all non-German operations.


	Years Ended December 31,
				2019				2018				2017
				(In thousands)
Income before income taxes	$	120,137			$	168,254			$	84,596
Expected income tax thereon	$	38,444			$	53,841			$	27,071
Tax rate differential	(3,517)				(6,695)				(2,249)
Change in valuation allowance on deferred tax assets and for losses without recognition of deferred taxes	450				(204)				(3,689)
Change in the tax rate and tax laws	115				(802)				(9,543)
Income taxes for prior years	(3,247)				876				561
Tax on non-deductible interest expenses	1,232				1,096				1,522
Taxes on other non-deductible expenses, and non-deductible taxes	745				(893)				6,216
Effects of changes in permanent differences	(45)				96				(879)
Tax effect on tax-free income	(898)				(532)				(1,033)

Other tax effects	(63)				161				1,759
Effective income taxes as reported	$	33,216			$	46,944			$	19,736
Effective tax rate	27.65		%		27.90		%		23.33		%

Schedule of Significant Components of Deferred Income Taxes

Significant components of deferred income taxes were as follows:


Deferred tax assets	December 31
	2019		2018
	(In thousands)
Assets
Intangible assets	$	197	$	842
Property, plant and equipment	8,363		8,963
Financial assets	7,004		7,044
Inventories	2,817		4,131
Receivables, other assets	3,212		1,207
Liabilities
Provisions	20,662		18,825
Liabilities	41,434		31,093
Other
Loss carryforwards	39,595		43,753
Interest carryforwards	9,967		9,041
Tax credits	3,185		1,022
Other	2,028		2,750
Total deferred tax assets (gross)	138,463		128,671
Valuation allowance	(41,994)		(40,905)
Total deferred tax assets (net)	$	96,468	$	87,766


Deferred tax liabilities	December 31
	2019		2018
	(In thousands)
Assets
Intangible assets	$	3,673	$	12,973
Property, plant and equipment	33,040		30,628
Financial assets	7,649		6,719

Receivables, other assets	11,883		12,157
Liabilities
Provisions	8,203		6,441
Liabilities	12,568		3,953
Other	14,039		8,005
Total deferred tax liabilities	$	91,057	$	80,876

The following table illustrates the gross and net deferred tax positions after the application of jurisdictional netting.


Net deferred tax position	December 31
	2019		2018
	(In thousands)
Deferred tax assets
Gross deferred tax assets	$	96,468	$	87,766
Net deferred tax assets	48,720		52,395
Deferred tax liabilities
Gross deferred tax liabilities	91,057		80,876
Net deferred tax liabilities	43,308		45,504
Net deferred tax asset / (liability) positions	$	5,412	$	6,891

Summary of Tax Loss and Interest Carryforwards

The following tax loss and interest carryforwards were recognized as at December 31, 2019 and 2018 (gross amounts):


	December 31
			2019			2018
			(In thousands)
Corporate income tax loss carryforwards	$	41,334		$	71,904

Interest carryforwards for tax purposes	31,463			28,562
Total	$	72,797		$	100,466

The following table provides detail surrounding the expiration dates of the gross amount of tax loss carryforwards and tax credits:


	Net operating loss carryforwards		Tax Credits
	(In thousands)
2020 to 2026	$	—	$	—
2027 and thereafter	31,207		3,164
Indefinite carryforwards	75,903		21
Total	$	107,110	$	3,185

Disclosure of Deferred Tax Asset Not Recognized

No deferred tax assets were recognized for the following items (gross amounts):


	December 31
			2019			2018
			(In thousands)
Deductible temporary differences	$	41,994		$	40,905
Corporate income tax loss carryforwards	107,110			105,287

Interest carryforwards for tax purposes	31,463			28,562
Total	$	180,567		$	174,754

Summary of Tax Credit Carryforwards

The following table provides detail surrounding the expiration dates of the gross amount of tax loss carryforwards and tax credits:


	Net operating loss carryforwards		Tax Credits
	(In thousands)
2020 to 2026	$	—	$	—
2027 and thereafter	31,207		3,164
Indefinite carryforwards	75,903		21
Total	$	107,110	$	3,185

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal years 2019, 2018 and 2017 is as follows:


	2019		2018		2017
	(In thousands)
Balance at beginning of the year	$	14,771	$	13,155	$	10,660
Additions based on tax positions related to the current year	246		4		1,590
Additions for tax positions of prior year	—		2,982		1,663
Reductions of tax positions of prior year	(3,401)		(1,370)		(759)
Reductions related to settlements	—		—		—
Reductions from lapse of statute of limitations	—		—		—
Balance at end of the year	$	11,616	$	14,771	$	13,155