Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2017 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Consolidated Income from Continuing Operations Before Income Taxes |
Consolidated income from continuing operations before income taxes consisted of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2017 |
|
2016 |
|
2015 |
U.S. operations |
|
$ |
167,380 |
|
|
$ |
173,798 |
|
|
$ |
173,966 |
|
Foreign operations |
|
99,354 |
|
|
83,100 |
|
|
73,353 |
|
Income before income tax |
|
$ |
266,734 |
|
|
$ |
256,898 |
|
|
$ |
247,319 |
|
|
| Components of Provision (Benefit) for Income Taxes |
The components of the provision (benefit) for income taxes consisted of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
Year Ended December 31, |
|
|
2017 |
|
2016 |
|
2015 |
Current: |
|
|
|
|
|
|
Federal |
|
$ |
87,386 |
|
|
$ |
53,840 |
|
|
$ |
61,211 |
|
State and local |
|
443 |
|
|
6,370 |
|
|
6,520 |
|
Non-U.S. |
|
28,708 |
|
|
18,708 |
|
|
21,014 |
|
|
|
116,537 |
|
|
78,918 |
|
|
88,745 |
|
Deferred: |
|
|
|
|
|
|
Federal |
|
47,087 |
|
|
(12,921 |
) |
|
(8,883 |
) |
State and local |
|
4,990 |
|
|
(2,166 |
) |
|
(906 |
) |
Non-U.S. |
|
(14,195 |
) |
|
(5,372 |
) |
|
(11,488 |
) |
|
|
37,882 |
|
|
(20,459 |
) |
|
(21,277 |
) |
Income tax expense |
|
$ |
154,419 |
|
|
$ |
58,459 |
|
|
$ |
67,468 |
|
|
| Reconciliation of Statutory Federal Income Tax Rate to Effective Rate |
The following is a reconciliation of the statutory federal income tax rate to the effective rate reported in the financial statements:
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|
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|
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|
|
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|
Year Ended December 31, |
|
|
2017 |
|
2016 |
|
2015 |
|
|
(percent of income) |
Provision for federal income taxes at the statutory rate |
|
35.0 |
% |
|
35.0 |
% |
|
35.0 |
% |
State and local income taxes, net of federal benefit |
|
0.4 |
|
|
1.5 |
|
|
2.2 |
|
Non-U.S. income taxed at different rates |
|
(7.8 |
) |
|
(5.8 |
) |
|
(3.9 |
) |
Foreign tax credits |
|
(0.1 |
) |
|
(3.0 |
) |
|
(1.7 |
) |
Foreign deferred tax asset |
|
(3.0 |
) |
|
(2.5 |
) |
|
— |
|
Reduction of unrecognized tax benefits |
|
— |
|
|
— |
|
|
(0.8 |
) |
Research credits |
|
(0.7 |
) |
|
(0.8 |
) |
|
(0.9 |
) |
Reduction of valuation allowance |
|
— |
|
|
— |
|
|
(2.7 |
) |
Excess tax benefits from stock plans |
|
(2.3 |
) |
|
(2.1 |
) |
|
— |
|
Other |
|
0.5 |
|
|
0.5 |
|
|
0.1 |
|
Actual provision for income taxes, pre-TCJA |
|
22.0 |
|
|
22.8 |
|
|
27.3 |
|
|
|
|
|
|
|
|
Effects of the TCJA: |
|
|
|
|
|
|
Reduction of U.S. federal corporate tax rate |
|
5.6 |
|
|
— |
|
|
— |
|
Transition tax on foreign earnings |
|
18.7 |
|
|
— |
|
|
— |
|
Deferred tax liability associated with future repatriations |
|
8.9 |
|
|
— |
|
|
— |
|
Foreign tax credits |
|
2.7 |
|
|
— |
|
|
— |
|
Provision for income taxes related to the TCJA |
|
35.9 |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
Actual provision for income taxes |
|
57.9 |
% |
|
22.8 |
% |
|
27.3 |
% |
|
| Significant Components of Deferred Taxes |
Significant components of the Company's deferred taxes consisted of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
2017 |
|
2016 |
Deferred tax assets: |
|
|
|
|
Accruals and allowances |
|
$ |
37,971 |
|
|
$ |
51,724 |
|
Capitalized inventory costs |
|
21,625 |
|
|
39,661 |
|
Stock compensation |
|
3,867 |
|
|
6,476 |
|
Net operating loss carryforwards |
|
20,085 |
|
|
3,637 |
|
Depreciation and amortization |
|
25,020 |
|
|
19,313 |
|
Tax credits |
|
31 |
|
|
443 |
|
Foreign currency gain |
|
5,657 |
|
|
— |
|
Other |
|
276 |
|
|
263 |
|
Gross deferred tax assets |
|
114,532 |
|
|
121,517 |
|
Valuation allowance |
|
(16,428 |
) |
|
(1,323 |
) |
Net deferred tax assets |
|
98,104 |
|
|
120,194 |
|
Deferred tax liabilities: |
|
|
|
|
Depreciation and amortization |
|
(15,395 |
) |
|
(25,703 |
) |
Prepaid expenses |
|
(2,383 |
) |
|
— |
|
Deferred tax liability associated with future repatriations |
|
(23,690 |
) |
|
— |
|
Foreign currency loss |
|
— |
|
|
(667 |
) |
Other |
|
— |
|
|
(1,477 |
) |
Gross deferred tax liabilities |
|
(41,468 |
) |
|
(27,847 |
) |
Total net deferred taxes |
|
$ |
56,636 |
|
|
$ |
92,347 |
|
|
| Reconciliation of Unrecognized Tax Benefits |
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands):
|
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|
|
|
|
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|
|
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|
|
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|
December 31, |
|
|
2017 |
|
2016 |
|
2015 |
Balance at beginning of year |
|
$ |
9,998 |
|
|
$ |
11,187 |
|
|
$ |
6,630 |
|
Increases related to prior year tax positions |
|
858 |
|
|
2,514 |
|
|
365 |
|
Decreases related to prior year tax positions |
|
(2,895 |
) |
|
(5,119 |
) |
|
(2,019 |
) |
Increases related to current year tax positions |
|
2,714 |
|
|
1,599 |
|
|
6,564 |
|
Expiration of statute of limitations |
|
(163 |
) |
|
(183 |
) |
|
(353 |
) |
Balance at end of year |
|
$ |
10,512 |
|
|
$ |
9,998 |
|
|
$ |
11,187 |
|
|