Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes

Schedule of components of income from continuing operations before income taxes

The components of income from continuing operations before income taxes were as follows (in thousands):

	Fiscal Years
	2012			2011		2010
US	$	48,552		$	40,122	$	33,188
Foreign		(993	)		1,200		2,222
Total	$	47,559		$	41,322	$	35,410

Schedule of components of the provision for income taxes

The components of the provision for income taxes included (in thousands):

	Fiscal Years
	2012			2011			2010
Current:
Federal	$	12,845		$	8,857		$	4,776
State		1,653			1,005			939
Foreign		774			1,241			821
Deferred:
Federal		3,502			2,633			4,959
State		(576	)		(276	)		(320	)
Foreign		(870	)		(469	)		(84	)
Total	$	17,328		$	12,991		$	11,091

Reconciliation of effective income tax rate on earnings to statutory federal tax rate

	Fiscal Years
	2012			2011			2010
Statutory federal rate		35.0	%		35.0	%		35.0	%
State taxes		4.3			3.8			5.4
Stock compensation relating to incentive stock options and employee stock purchase plans		0.6			0.1			(1.5	)
Research and other state tax credits		(2.8	)		(8.0	)		(9.1	)
Change in valuation allowance		(0.1	)		0.5			(1.7	)
Change in state contingency reserve		(0.2	)		(0.4	)		1.0
Foreign taxes		0.8			0.6			(0.1	)
Impact of state tax rate changes on net deferred tax assets		(0.2	)		—			1.3
Other, net		(1.0	)		(0.2	)		1.0
Effective income tax rate		36.4	%		31.4	%		31.3	%

Schedule of deferred tax assets and liabilities

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities were as follows (in thousands):

	December 31
	2012			2011
Deferred tax assets, current:
Deferred revenue	$	3,509		$	3,151
Other accrued liabilities and reserves		5,304			3,879
Stock compensation		10,206			9,074
Other		(85	)		190
Total deferred tax assets, current		18,934			16,294
Non-current deferred tax assets:
Depreciation and amortization		(2,176	)		(4,293	)
Net operating losses, capital losses and credit carryforwards		22,585			31,324
Other		4,977			4,612
Valuation allowance		(862	)		(892	)
Total deferred tax assets, non-current		24,524			30,751
Deferred tax assets		43,458			47,045
Deferred tax liabilities		(2,141	)		(2,930	)
Net deferred tax assets	$	41,317		$	44,115

Schedule of activity relating to the company's unrecognized tax benefits

The following table summarizes the activity relating to the Company's unrecognized tax benefits during 2012, 2011 and 2010 (in thousands):

	Total
Balance at January 1, 2010	$	7,467
Gross increases related to tax positions in prior period		431
Gross increases related to current period tax positions		1,603
Balance at December 31, 2010	$	9,501
Gross decreases related to tax positions in prior period		(185	)
Gross increases related to current period tax positions		1,828
Balance at December 31, 2011	$	11,144
Gross increases related to tax positions in prior period		12
Gross increases related to current period tax positions		992
Balance at December 31, 2012	$	12,148