Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.3.a.u2
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
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,
2019 2018 2017
(percent of income)
Provision for federal income taxes at the statutory rate 21.0  % 21.0  % 35.0  %
State and local income taxes, net of federal benefit 1.7    2.0    0.4   
Non-United States income taxed at different rates (0.1)   (0.1)   (7.8)  
Foreign tax credits (0.1)   —    (0.1)  
Adjustment to deferred taxes (2.1)   —    (3.0)  
Global Intangible Low-Taxed Income —    0.4    —   
Research credits (0.5)   (0.6)   (0.7)  
Withholding taxes 0.3    0.4    —   
Excess tax benefits from stock plans (1.6)   (1.4)   (2.3)  
Other (0.1)   0.7    0.5   
Actual provision for income taxes, pre-provisional TCJA expense 18.5    22.4    22.0   
Effects of the TCJA:
Reduction of United States 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 18.5  % 23.8  % 57.9  %
Significant Components of Deferred Taxes
Significant components of the Company's deferred taxes consisted of the following (in thousands):
December 31,
(in thousands)
2019 2018
Deferred tax assets:
Accruals and allowances $ 38,532    $ 39,276   
Capitalized inventory costs 34,389    34,548   
Stock compensation 5,013    4,318   
Net operating loss carryforwards 23,660    18,800   
Depreciation and amortization 32,293    39,511   
Tax credits 2,329    1,353   
Other 2,258    1,570   
Gross deferred tax assets 138,474    139,376   
Valuation allowance (24,130)   (18,550)  
Net deferred tax assets 114,344    120,826   
Deferred tax liabilities:
Depreciation and amortization (15,738)   (22,048)  
Prepaid expenses (2,661)   (2,301)  
Deferred tax liability associated with future repatriations (19,847)   (21,323)  
Foreign currency loss (3,610)   (6,520)  
Gross deferred tax liabilities (41,856)   (52,192)  
Total net deferred taxes $ 72,488    $ 68,634   
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)
2019 2018 2017
Balance at beginning of year $ 11,064    $ 10,512    $ 9,998   
Increases related to prior year tax positions 4,374    490    858   
Decreases related to prior year tax positions (5,423)   (1,093)   (2,895)  
Increases related to current year tax positions 4,991    1,818    2,714   
Settlements (1,464)   319    —   
Expiration of statute of limitations (1,064)   (982)   (163)  
Balance at end of year $ 12,478    $ 11,064    $ 10,512