Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Income before Income Tax, Domestic and Foreign

Income before provision for income taxes consisted of the following (in thousands):



	Years ended December 31,
	2012		2011		2010
Domestic	$	32,341	$	52,184	$	57,145
Foreign	51,955		37,757		44,858
Total	$	84,296	$	89,941	$	102,003

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes consisted of the following (in thousands):



	Years Ended December 31,
	2012		2011			2010
Federal
Current	$	—	$	65		$	—
Deferred	22,382		21,026			23,193
	22,382		21,091			23,193
State
Current	438		224			386
Deferred	1,486		1,394			2,914
	1,924		1,618			3,300
Foreign
Current	1,173		1,263			1,197
Deferred	126		(747		)	60
	1,299		516			1,257
Provision for income taxes	$	25,605	$	23,225		$	27,750

Schedule of Effective Income Tax Rate Reconciliation

The differences between income taxes using the federal statutory income tax rate of 35% and our effective tax rate were as follows:



	Years Ended December 31,
	2012		2011		2010
U.S. federal statutory income tax rate	35.00	%	35.00	%	35.00	%
State income taxes, net of federal tax benefit	2.36		1.58		2.97
Impact of differences in foreign tax rates	(20.00	)	(14.99	)	(11.18	)
Goodwill Impairment	15.19		—		—
Stock-based compensation	(1.15	)	1.67		1.55
Non-deductible transaction fees	—		1.29		—
Valuation allowance release	—		(0.14	)	—
Other items not individually material	(1.02	)	1.41		(1.14	)
	30.38	%	25.82	%	27.20	%

Schedule of Deferred Tax Assets and Liabilities

As of December 31, 2012 and December 31, 2011, the significant components of our deferred tax assets and liabilities were (in thousands):



	Years Ended December 31,
	2012			2011
Deferred tax assets:
Net operating loss and capital loss carryforwards	$	37,183		$	36,661
Credit carryforwards	8,806			8,075
Reserves and accruals	19,703			18,236
Translation gains	43			33
Stock-based compensation	9,908			9,490
	75,643			72,495
Deferred tax liabilities:
Prepaid expenses	345			560
Depreciation and amortization	9,903			12,776
	10,248			13,336
Net deferred tax assets before valuation allowance	65,395			59,159
Valuation allowance	(27,056		)	(20,224		)
Net deferred tax assets	$	38,339		$	38,935

Schedule of Unrecognized Tax Benefits Rollforward

The changes in the balance of gross unrecognized tax benefits, which excludes interest and penalties, for fiscal years 2012, 2011, and 2010, is as follows (in thousands):



Unrecognized tax benefit as of December 31, 2009	$	5,929
Tax positions related to current year:
Additions for uncertain tax positions	2,742
Tax positions related to prior year:
Additions for uncertain tax positions	2,290
Unrecognized tax benefit as of December 31, 2010	10,961
Tax positions related to current year:
Additions for uncertain tax positions	4,133
Tax positions related to prior year:
Additions for uncertain tax positions	378
Unrecognized tax benefit as of December 31, 2011	15,472
Tax positions related to current year:
Additions for uncertain tax positions	5,087
Tax positions related to prior year:
Additions for uncertain tax positions	80
Unrecognized tax benefit as of December 31, 2012	$	20,639