INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Income (Loss) Before Income Taxes

Income (Loss) before income taxes consisted of the following:


	Years Ended December 31,
	2020		2019		2018
	(In thousands)
United States operations	$	15,082	$	(38,359)	$	(21,218)
Foreign operations	78,438		98,463		78,621
Total	$	93,520	$	60,104	$	57,403

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the U.S. Federal statutory rate to the Company’s effective tax rate is as follows:


	Years Ended December 31,
	2020		2019		2018
Federal statutory rate	21.0	%	21.0	%	21.0	%
Increase (decrease) in income taxes resulting from:
State income taxes, net of federal tax benefit	1.2	%	1.0	%	(0.4)	%
Foreign operations	(7.9)	%	(20.0)	%	(21.8)	%

Excess tax benefits from stock compensation	(1.0)	%	(5.6)	%	(7.8)	%
Charitable contributions	(0.3)	%	(0.6)	%	(1.2)	%
Nondeductible meals and entertainment	0.4	%	1.5	%	1.6	%

Intercompany profit in inventory	1.2	%	1.2	%	6.2	%
Nondeductible facilitative costs	1.4	%	0.8	%	—	%
Changes in valuation allowances	0.1	%	0.2	%	0.2	%
Uncertain tax positions	0.5	%	0.2	%	0.4	%
Research and development credit	(1.6)	%	(2.9)	%	(2.6)	%
Return to provision	(2.3)	%	1.7	%	(2.9)	%
Global intangible low-taxed income ("GILTI")	2.5	%	7.6	%	3.5	%
Nondeductible executive compensation	2.4	%	3.0	%	1.6	%
Carryback of Federal net operating loss ("NOL")	—	%	0.1	%	(3.7)	%
Other	0.5	%	0.4	%	—	%
Swiss tax holiday	—	%	(15.7)	%	—	%
IPR&D expense	—	%	22.7	%	—	%
Foreign-Derived Intangible Income	(0.8)	%	—	%	—	%
Transfer of Intra-entity of certain intellectual property - Rate Differential on FMV Step-Up	(63.3)	%	—	%	—	%
Assets held for sale - Outside Basis Difference	2.8	%	—	%	—	%
Effective tax rate	(43.2)	%	16.5	%	(5.9)	%

Schedule of Provision for Income Taxes

The provision for income taxes consisted of the following:


	Years Ended December 31,
	2020		2019		2018
	(In thousands)
Current:
Federal	$	6,184	$	14,597	$	(3,880)
State	5,029		3,447		1,609
Foreign	12,553		10,905		7,057
Total current	$	23,766	$	28,949	$	4,786
Deferred:
Federal	(5,079)		(10,889)		(7,202)
State	(1,760)		(666)		(3,048)
Foreign	(57,299)		(7,491)		2,066
Total deferred	$	(64,138)	$	(19,046)	$	(8,184)
Provision for income taxes	$	(40,372)	$	9,903	$	(3,398)

Schedule of Deferred Tax Assets and Liabilities

The income tax effects of significant temporary differences that give rise to deferred tax assets and liabilities, shown before jurisdictional netting, are presented below:


	December 31,
	2020		2019
	(In thousands)
Assets:
Doubtful accounts	$	2,207	$	2,426
Inventory related items	47,034		39,548
Tax credits	18,319		19,134
Accrued vacation	3,403		3,206
Accrued bonus	4,883		6,017
Stock compensation	6,160		8,347
Deferred revenue	1,665		1,805
Net operating loss carryforwards	29,335		37,418
Capitalization of research and development expenses	13,044		9,781
Unrealized foreign exchange loss	23,798		8,105
Charitable contributions carryforward	203		235

Leases and Other	23,205		12,496
Total deferred tax assets	173,256		148,518
Less valuation allowance	(9,897)		(9,865)
Deferred tax assets after valuation allowance	$	163,359	$	138,653
Liabilities:
Intangible and fixed assets	(90,274)		(150,879)
Leases and Other	(15,585)		(11,704)
Total deferred tax liabilities	$	(105,859)	$	(162,583)

Total net deferred tax assets (liabilities)	$	57,500	$	(23,930)

Schedule of Uncertain Tax Benefits Reconciliation

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


	Years Ended December 31,
	2020		2019		2018
	(In thousands)
Balance, beginning of year	$	676	$	676	$	424
Gross increases:
Current year tax positions	—		53		273
Prior years' tax positions	26		—		—
Gross decreases:


Statute of limitations lapses	—		—		(21)
Other	—		(53)		—
Balance, end of year	$	702	$	676	$	676