Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2019
Income Taxes [Abstract]  
Consolidated Income Before Provision for Income Taxes Consolidated income before provision for income taxes consists of the following for the years ended December 31, 2019, 2018 and 2017 (U.S. dollars in thousands):


 
2019
    
2018
    
2017
  
U.S.
  
$
24,211
    
$
(67,087
)
  
$
1,135
  
Foreign
    
230,961
      
286,753
      
264,432
  
Total
  
$
255,172
    
$
219,666
    
$
265,567
  
Current and Deferred Taxes The provision for current and deferred taxes for the years ended December 31, 2019, 2018 and 2017 consists of the following (U.S. dollars in thousands):


 
2019
    
2018
    
2017
  
Current
                  
Federal
  
$
—
    
$
—
    
$
(14,358
)
State
    
2,213
      
652
      
1,814
  
Foreign
    
79,694
      
116,303
      
104,688
  
     
81,907
      
116,955
      
92,144
  
Deferred
                        
Federal
    
(8,878
)
    
(17,836
)
    
45,593
  
State
    
(473
)
    
(1,974
)
    
(2,273
)
Foreign
    
9,063
      
634
      
666
  
     
(288
)
    
(19,176
)
    
43,986
  
Provision for income taxes
  
$
81,619
    
$
97,779
    
$
136,130
  
Deferred Tax Assets and Liabilities The principal components of deferred taxes are as follows (U.S. dollars in thousands):


 
Year Ended December 31,
  
   
2019
    
2018
  
Deferred tax assets:
            
Inventory differences
  
$
5,040
    
$
4,257
  
Foreign tax credit and other foreign benefits
    
69,820
      
62,521
  
Stock-based compensation
    
7,441
      
7,893
  
Accrued expenses not deductible until paid
    
35,374
      
40,509
  
Foreign currency exchange
    
163
      
1,023
  
Net operating losses
    
6,341
      
4,522
  
Capitalized research and development
    
18,716
      
11,988
  
Interest expense limitation – 163(j)
    
—
      
847
  
R&D credit carryforward
    
881
      
807
  
Other
    
37
      
339
  
Gross deferred tax assets
    
143,813
      
134,706
  
Deferred tax liabilities:
                
Foreign currency exchange
    
721
      
124
  
Foreign withholding taxes
    
20,986
      
21,524
  
Intangibles step-up
    
4,958
      
5,763
  
Overhead allocation to inventory
    
3,611
      
2,857
  
Amortization of intangibles
    
15,393
      
15,812
  
Other
    
1,063
      
833
  
Gross deferred tax liabilities
    
46,732
      
46,913
  
Valuation allowance
    
(77,042
)
    
(68,697
)
Deferred taxes, net
  
$
20,039
    
$
19,096
  
Deferred Tax Asset Valuation Adjustments
The deferred tax asset valuation adjustments for the years ended December 31, 2019, 2018 and 2017 are as follows (U.S. dollars in thousands):


  
Year Ended December 31,
  
   
2019
    
2018
    
2017
  
Balance at the beginning of period
  
$
68,697
    
$
56,906
    
$
9,137
  
Additions charged to cost and expenses
    
10,913
(1) 
    
27,902
(4) 
    
53,983
(6) 
Decreases
    
(3,343
)(2)
    
(16,215
)(5)
    
(6,400
)(7)
Adjustments
    
775
(3) 
    
104
(3) 
    
186
(3) 
Balance at the end of the period
  
$
77,042
    
$
68,697
    
$
56,906
  

(1)
Increase in valuation is due primarily to $9.8 million that was recorded on the foreign tax credit carryforward. The additional amount is due to net operating losses in foreign markets.
(2)
The decrease was due primarily to the utilization of foreign tax credits, and expiration of foreign net operating losses.
(3)
Represents the net currency effects of translating valuation allowances at current rates of exchange.
(4)
Increase in valuation is due primarily to the $27.2 million that was recorded on the foreign tax credit carryforward. The additional amount is due to net operating losses in foreign markets
(5)
The decrease was due primarily to the utilization of foreign tax credits. Decrease is due primarily to the write-off of Brazil deferred tax assets, which had no impact to the income statement, as a valuation allowance had been previously recorded against the asset.
(6)
Increase in valuation allowance is due primarily to the $52.0 million that was recorded on the foreign tax credit carryforward. The additional amount is due to net operating losses in foreign markets.
(7)
Decrease is due primarily to the write-off of Brazil deferred tax assets, which had no impact to the income statement, as a valuation allowance had been previously recorded against the asset.
Deferred Taxes, Net on a Jurisdiction Basis The components of deferred taxes, net on a jurisdiction basis are as follows (U.S. dollars in thousands):


 
Year Ended December 31,
  
   
2019
    
2018
  
Net noncurrent deferred tax assets
  
$
30,780
    
$
37,332
  
Net noncurrent deferred tax liabilities
    
10,741
      
18,236
  
Deferred taxes, net
  
$
20,039
    
$
19,096
  
Reconciliation of Statutory to Effective Tax Rate The actual tax rate for the years ended December 31, 2019, 2018 and 2017 compared to the statutory U.S. Federal tax rate is as follows:


 
Year Ended December 31,
  
   
2019
    
2018
    
2017
  
Income taxes at statutory rate
    
21.00
%
    
21.00
%
    
35.00
%
Indefinite reinvestment
    
—
      
(2.73
)%
    
2.75
%
Excess tax benefit from equity award
    
0.02
%
    
(1.41
)%
    
(2.38
)%
Non-U.S. income taxed at different rates
    
3.09
%
    
7.37
%
    
—
  
Foreign withholding taxes
    
4.10
%
    
7.68
%
    
—
  
Change in reserve for uncertain tax positions
    
1.07
%
    
3.68
%
    
—
  
Non-deductible expenses
    
—
      
—
      
0.17
%
Controlled foreign corporation losses
    
—
      
—
      
(0.13
)%
Valuation allowance recognized foreign tax credit & others
    
2.56
%
    
5.54
%
    
19.59
%
Write-off outside basis DTL
    
—
      
—
      
(2.89
)%
Revaluation of deferred taxes
    
—
      
1.61
%
    
(1.28
)%
Foreign-Derived Intangible Income (FDII)
    
(0.70
)%
    
—
      
—
  
Other
    
0.85
%
    
1.77
%
    
0.43
%
     
31.99
%
    
44.51
%
    
51.26
%