Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes

Schedule of income (loss) from continuing operations before income taxes

Our income from continuing operations before income taxes in the accompanying Consolidated Statements of Income consists of (in thousands):

	Year ended December 31,
	2012		2011		2010
Domestic	$	5,811	$	230,204	$	260,268
Foreign		32,375		41,882		36,413
	$	38,186	$	272,086	$	296,681

Schedule of components of the provision for income taxes from continuing operations

Significant components of the provision for income taxes from continuing operations are presented below (in thousands):

	Year ended December 31,
	2012			2011			2010
Current:
Federal	$	2,515		$	59,921		$	42,324
Foreign		7,576			10,714			7,720
State and local		(317	)		805			5,215
Total current provision for income taxes		9,774			71,440			55,259
Deferred:
Federal		(482	)		10,454			(32,033	)
Foreign		727			(1,073	)		239
State and local		1,638			763			(3,960	)
Total deferred provision (benefit) for income taxes		1,883			10,144			(35,754	)
Total provision for income taxes	$	11,657		$	81,584		$	19,505

Schedule of reconciliation of the income tax provision (benefit) computed using the Federal statutory rate to actual income tax provision

The following is a reconciliation of the income tax provision computed using the Federal statutory rate to our actual income tax provision (in thousands):

	Year ended December 31,
	2012			2011			2010
Income tax provision at U.S. statutory rates	$	13,366		$	95,231		$	103,838
State income tax (benefit) expense (net of federal impact)		(89	)		1,616			6,379
Nondeductible expenses		622			(749	)		333
Domestic production activities deduction		(489	)		(4,581	)		(6,365	)
Nondeductible compensation		205			841			2,840
Research and development tax credit		(3,013	)		(4,675	)		(1,823	)
Net change in valuation allowance		2,943			121			(83,079	)
Change in accrual for unrecognized tax benefits		533			824			(1,076	)
Foreign tax rate differential		(2,387	)		(5,225	)		(5,280	)
Other		(34	)		(1,819	)		3,738
Total provision for income taxes	$	11,657		$	81,584		$	19,505

Schedule of deferred tax assets and liabilities

Significant components of our deferred tax assets and liabilities are as follows (in thousands):

	December 31,
	2012			2011
Deferred tax assets:
Inventory valuation	$	6,386		$	5,468
Domestic net operating loss carry forwards		1,144			1,082
Tax credit carry forwards		4,145			3,015
Foreign net operating loss carry forwards		—			89
Warranty and installation accruals		2,174			3,044
Equity compensation		9,114			5,821
Other accruals		3,270			2,373
Other		760			1,636
Total deferred tax assets		26,993			22,528
Valuation allowance		(4,708	)		(1,765	)
Net deferred tax assets		22,285			20,763
Deferred tax liabilities:
Purchased intangible assets		9,973			9,818
Undistributed earnings		1,095			974
Depreciation		7,014			4,115
Total deferred tax liabilities		18,082			14,907
Net deferred taxes	$	4,203		$	5,856

Schedule of reconciliation of beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	December 31,
	2012			2011
Beginning balance as of December 31	$	4,748		$	3,660
Additions for tax positions related to current year		435			1,069
Reductions for tax positions related to current year		—			—
Additions for tax positions related to prior years		742			1,209
Reductions for tax positions related to prior years		(59	)		(422	)
Reductions due to the lapse of the applicable statute of limitations		(48	)		(586	)
Settlements		—			(182	)
Ending balance as of December 31	$	5,818		$	4,748