INCOME TAXES (Tables)
|
12 Months Ended |
Dec. 31, 2018 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of income from continuing operations before provision (benefit) for income taxes |
Income (loss) from continuing operations before provision (benefit) for income taxes are taxed under the following jurisdictions (dollar amounts in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2018 |
|
2017 |
|
2016 |
Domestic |
|
$ |
(10,069 |
) |
|
$ |
(2,211 |
) |
|
$ |
6,420 |
|
Foreign |
|
13,269 |
|
|
5,433 |
|
|
2,846 |
|
Total |
|
$ |
3,200 |
|
|
$ |
3,222 |
|
|
$ |
9,266 |
|
|
| Schedule of components of the provision (benefit) for income taxes |
Components of the provision (benefit) for income taxes from continuing operations for each of the three years in the period ended December 31, 2018 are as follows (dollar amounts in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2018 |
|
2017 |
|
2016 |
Current: |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
(1,823 |
) |
|
$ |
(1,240 |
) |
|
$ |
1,987 |
|
State |
|
(70 |
) |
|
(23 |
) |
|
498 |
|
Foreign |
|
6,371 |
|
|
4,168 |
|
|
5,345 |
|
Subtotal |
|
4,478 |
|
|
2,905 |
|
|
7,830 |
|
Deferred: |
|
|
|
|
|
|
|
|
|
Federal |
|
605 |
|
|
13,654 |
|
|
496 |
|
State |
|
296 |
|
|
(248 |
) |
|
(14 |
) |
Foreign |
|
(977 |
) |
|
728 |
|
|
279 |
|
Subtotal |
|
(76 |
) |
|
14,134 |
|
|
761 |
|
Total provision for income taxes |
|
$ |
4,402 |
|
|
$ |
17,039 |
|
|
$ |
8,591 |
|
|
| Schedule of differences between the statutory U.S. federal income tax rate and the provision (benefit) for income taxes, as a percentage of income before provision for income taxes |
The provision (benefit) for income taxes, as a percentage of income from continuing operations before provision (benefit) for income taxes, differs from the statutory U.S. federal income tax rate due to the following:
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2018 |
|
2017 |
|
2016 |
Statutory U.S. federal income tax rate |
|
21.0 |
% |
|
35.0 |
% |
|
35.0 |
% |
State income taxes, net of U.S. federal income tax benefit |
|
5.5 |
|
|
(5.5 |
) |
|
3.4 |
|
U.S. tax impact of foreign operations |
|
102.5 |
|
|
1.0 |
|
|
(53.4 |
) |
Valuation allowance change |
|
(13.9 |
) |
|
405.3 |
|
|
77.6 |
|
Unrecognized tax benefits |
|
(58.7 |
) |
|
(91.1 |
) |
|
4.7 |
|
Domestic manufacturing deduction |
|
— |
|
|
— |
|
|
(2.8 |
) |
Permanent foreign items |
|
28.6 |
|
|
53.7 |
|
|
26.8 |
|
Withholding tax on royalties |
|
20.0 |
|
|
— |
|
|
— |
|
Re-measurement of deferred tax assets/liabilities |
|
— |
|
|
117.6 |
|
|
— |
|
Stock Compensation |
|
12.7 |
|
|
— |
|
|
— |
|
Tax Return to Provision Differences |
|
11.7 |
|
|
— |
|
|
— |
|
Elimination of provision on intercompany transactions |
|
4.4 |
|
|
4.6 |
|
|
0.1 |
|
Other |
|
3.8 |
|
|
8.2 |
|
|
1.3 |
|
Effective income tax rate |
|
137.6 |
% |
|
528.8 |
% |
|
92.7 |
% |
|
| Schedule of components of U.S. tax impact of foreign operations |
Adjustments relating to the U.S. impact of foreign operations increased the effective tax rate by 102.5 percentage points in 2018, increased the effective tax rate by 1.0 percentage points in 2017, and decreased the effective tax rate by 53.4 percentage points in 2016. The components of this calculation were:
|
|
|
|
|
|
|
|
|
|
|
Components of U.S. tax impact of foreign operations |
|
2018 |
|
2017 |
|
2016 |
Dividends received from foreign subsidiaries |
|
— |
% |
|
65.7 |
% |
|
65.9 |
% |
Foreign tax credits |
|
(17.6 |
) |
|
(4.1 |
) |
|
(91.8 |
) |
Foreign tax rate differentials |
|
37.3 |
|
|
(60.6 |
) |
|
(27.1 |
) |
Foreign withholding taxes |
|
27.7 |
|
|
— |
|
|
— |
|
Transfer pricing adjustment |
|
12.1 |
|
|
— |
|
|
— |
|
Impact of GILTI |
|
43.0 |
|
|
— |
|
|
— |
|
Unremitted earnings |
|
— |
|
|
— |
|
|
0.2 |
|
Other adjustments |
|
— |
|
|
— |
|
|
(0.6 |
) |
Total |
|
102.5 |
% |
|
1.0 |
% |
|
(53.4 |
)% |
|
| Schedule of significant components of the deferred tax assets (liabilities) |
The significant components of the deferred tax assets (liabilities) are as follows (dollar amounts in thousands):
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
2018 |
|
2017 |
Inventory |
|
$ |
1,252 |
|
|
$ |
2,268 |
|
Accrued liabilities |
|
4,130 |
|
|
2,190 |
|
Deferred compensation |
|
307 |
|
|
481 |
|
Equity-based compensation |
|
2,359 |
|
|
3,091 |
|
Intangibles assets |
|
151 |
|
|
142 |
|
Bad debts |
|
114 |
|
|
95 |
|
Net operating losses |
|
7,730 |
|
|
13,755 |
|
Foreign tax and withholding credits |
|
13,300 |
|
|
14,572 |
|
Non-income tax accruals |
|
— |
|
|
41 |
|
Health insurance accruals |
|
145 |
|
|
125 |
|
Other deferred tax assets |
|
2,438 |
|
|
1,869 |
|
Capital loss carryforward |
|
— |
|
|
82 |
|
Valuation allowance |
|
(20,256 |
) |
|
(24,024 |
) |
Total deferred tax assets |
|
11,670 |
|
|
14,687 |
|
Other deferred tax liabilities |
|
(2,009 |
) |
|
(1,255 |
) |
Accelerated depreciation |
|
(2,161 |
) |
|
(5,919 |
) |
Total deferred tax liabilities |
|
(4,170 |
) |
|
(7,174 |
) |
Total deferred taxes, net |
|
$ |
7,500 |
|
|
$ |
7,513 |
|
|
| Schedule of components of deferred tax assets (liabilities), net |
The components of deferred tax assets (liabilities), net are as follows (dollar amounts in thousands):
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
2018 |
|
2017 |
Net deferred tax assets |
|
$ |
9,056 |
|
|
$ |
8,283 |
|
Net deferred tax liabilities |
|
(1,556 |
) |
|
(770 |
) |
Total deferred taxes, net |
|
$ |
7,500 |
|
|
$ |
7,513 |
|
|
| Schedule of reconciliation of the beginning and ending amount of liabilities associated with uncertain tax benefits, excluding interest and penalties |
A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax benefits, excluding interest and penalties, is as follows for the years (dollar amounts in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2018 |
|
2017 |
|
2016 |
Unrecognized tax benefits, opening balance |
|
$ |
2,956 |
|
|
$ |
4,908 |
|
|
$ |
5,825 |
|
Settlement of liability reclassified as income tax payable |
|
— |
|
|
— |
|
|
— |
|
Payments on liability |
|
— |
|
|
— |
|
|
— |
|
Tax positions taken in a prior period |
|
|
|
|
|
|
|
|
|
Gross increases |
|
— |
|
|
— |
|
|
— |
|
Gross decreases |
|
(467 |
) |
|
(705 |
) |
|
— |
|
Tax positions taken in the current period |
|
|
|
|
|
|
|
|
|
Gross increases |
|
92 |
|
|
716 |
|
|
1,182 |
|
Gross decreases |
|
— |
|
|
— |
|
|
— |
|
Lapse of applicable statute of limitations |
|
(591 |
) |
|
(1,970 |
) |
|
(2,121 |
) |
Currency translation adjustments |
|
(24 |
) |
|
7 |
|
|
22 |
|
Unrecognized tax benefits, ending balance |
|
$ |
1,966 |
|
|
$ |
2,956 |
|
|
$ |
4,908 |
|
|