Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income before income taxes for the years ended December 31, 2013, 2012 and 2011 was derived from the following sources:



(In thousands)	2013		2012		2011
Domestic	$	29,066	$	49,056	$	68,839
Foreign	67,129		50,647		59,125
Income before income taxes	$	96,195	$	99,703	$	127,964

Components of Income Tax (Benefit) Expense

Income tax (benefit) expense for the years ended December 31, 2013, 2012, and 2011 is summarized as follows:



(In thousands)	2013			2012		2011
Current:
Federal	$	854		$	5,797	$	2,382
State	772			654		1,335
Foreign	12,937			11,183		17,784
	14,563			17,634		21,501
Deferred (net of valuation allowance):
Federal	6,003			11,165		(19,853		)
State	(650		)	168		(647		)
Foreign	1,753			1,914		3,216
	7,106			13,247		(17,284		)
Income tax expense	$	21,669		$	30,881	$	4,217

Reconciliation of Income Tax Expense With Expected Amounts Based Upon Statutory Federal Tax Rates

Income tax expense differs from the expected amounts based upon the statutory federal tax rates for the years ended December 31, 2013, 2012, and 2011 as follows:



(In thousands)	2013			2012			2011
Expected federal income tax at statutory rate	$	33,668		$	34,896		$	44,788
State income taxes before valuation allowance, net of federal tax effect	(357		)	440			1,013
Income (losses) without tax expense (benefit)	22			(40		)	(1,357		)
Effect of foreign source income	(10,583		)	(5,314		)	1,959
Valuation allowance	445			358			(41,038		)
U.S. federal research credit	(3,233		)	(790		)	(1,412		)
Other items, net	1,707			1,331			264
Income tax expense	$	21,669		$	30,881		$	4,217

Deferred Tax Assets And Deferred Tax Liabilities

The significant components of the Company’s deferred tax assets and deferred tax liabilities at December 31, 2013 and 2012 are as follows:



(In thousands)	2013			2012
Deferred tax assets attributable to:
Accounts receivable	$	269		$	389
Inventory	2,853			2,643
Accruals not currently deductible for tax purposes	8,844			10,054
Net operating loss and credit carryforwards	3,972			2,669
Capital loss carryforward	2,779			3,105
Depreciation	1,070			2,870
Equity compensation	3,157			3,155
Asset impairments	732			1,021
Purchased intangible assets	1,439			1,396
Other, net	2,976			3,604
Gross deferred tax assets	28,091			30,906
Valuation allowance	(5,435		)	(4,990		)
Total deferred tax assets	22,656			25,916
Deferred tax liabilities attributable to:
Depreciation	(3,245		)	(1,252		)
Purchased intangible assets	(601		)	(692		)
Total deferred tax liabilities	(3,846		)	(1,944		)
Net deferred tax assets	$	18,810		$	23,972

Reconciliations of Total Amount of Gross Unrecognized Tax Benefits

Reconciliations of the beginning and ending balances of the total amounts of gross unrecognized tax benefits for the years ended December 31, 2013 and 2012 are as follows:



(In thousands)	2013			2012
Gross unrecognized tax benefits at beginning of year	$	5,419		$	2,467
Increases in tax positions for prior years	28			—
Decreases in tax positions for prior years	—			(19		)
Increases in tax positions for current year	1,879			4,608
Settlements	(2,298		)	(1,044		)
Lapse in statute of limitations	(751		)	(593		)
Gross unrecognized tax benefits at end of year	$	4,277		$	5,419

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

+ References+ Details