Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.10.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Consolidated Income from Continuing Operations Before Income Taxes

Components of Provision (Benefit) for Income Taxes

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:
 
 
Year Ended December 31,
 
 
2018
 
2017
 
2016
 
 
(percent of income)
Provision for federal income taxes at the statutory rate
 
21.0
 %
 
35.0
 %
 
35.0
 %
State and local income taxes, net of federal benefit
 
2.0

 
0.4

 
1.5

Non-U.S. income taxed at different rates
 
(0.1
)
 
(7.8
)
 
(5.8
)
Foreign tax credits
 
—

 
(0.1
)
 
(3.0
)
Foreign deferred tax asset
 
—

 
(3.0
)
 
(2.5
)
Global Intangible Low-Taxed Income
 
0.4

 
—

 
—

Research credits
 
(0.6
)
 
(0.7
)
 
(0.8
)
Withholding taxes
 
0.4

 
—

 
—

Excess tax benefits from stock plans
 
(1.4
)
 
(2.3
)
 
(2.1
)
Other
 
0.7

 
0.5

 
0.5

Actual provision for income taxes, pre-provisional TCJA expense
 
22.4
 %
 
22.0
 %
 
22.8
 %
Effects of the TCJA:
 
 
 
 
 
 
Reduction of U.S. federal corporate tax rate
 
(0.4
)%
 
5.6
 %
 
—
 %
Transition tax on foreign earnings
 
1.5

 
18.7

 
—

Deferred tax liability associated with future repatriations
 
0.5

 
8.9

 
—

Foreign tax credits
 
(0.2
)
 
2.7

 
—

Provision for income taxes related to the TCJA
 
1.4
 %
 
35.9
 %
 
—
 %
Actual provision for income taxes
 
23.8
 %
 
57.9
 %
 
22.8
 %
Significant Components of Deferred Taxes
Significant components of the Company's deferred taxes consisted of the following (in thousands):
 
 
December 31,
(in thousands)
 
2018
 
2017
Deferred tax assets:
 
 
 
 
Accruals and allowances
 
$
39,276

 
$
37,971

Capitalized inventory costs
 
34,548

 
21,625

Stock compensation
 
4,318

 
3,867

Net operating loss carryforwards
 
18,800

 
20,085

Depreciation and amortization
 
39,511

 
25,020

Tax credits
 
1,353

 
31

Foreign currency gain
 
—

 
5,657

Other
 
1,570

 
276

Gross deferred tax assets
 
139,376

 
114,532

Valuation allowance
 
(18,550
)
 
(16,428
)
Net deferred tax assets
 
120,826

 
98,104

Deferred tax liabilities:
 
 
 
 
Depreciation and amortization
 
(22,048
)
 
(15,395
)
Prepaid expenses
 
(2,301
)
 
(2,383
)
Deferred tax liability associated with future repatriations
 
(21,323
)
 
(23,690
)
Foreign currency loss
 
(6,520
)
 
0

Gross deferred tax liabilities
 
(52,192
)
 
(41,468
)
Total net deferred taxes
 
$
68,634

 
$
56,636

Reconciliation of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
 
 
December 31,
(in thousands)
 
2018
 
2017
 
2016
Balance at beginning of year
 
$
10,512

 
$
9,998

 
$
11,187

Increases related to prior year tax positions
 
490

 
858

 
2,514

Decreases related to prior year tax positions
 
(1,093
)
 
(2,895
)
 
(5,119
)
Increases related to current year tax positions
 
1,818

 
2,714

 
1,599

Settlements
 
319

 
—

 
—

Expiration of statute of limitations
 
(982
)
 
(163
)
 
(183
)
Balance at end of year
 
$
11,064

 
$
10,512

 
$
9,998