Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income (Loss) Before Income Taxes

Income before income taxes for the years ended December 31, 2012, 2011 and 2010 was derived from the following sources:

(In thousands)	2012		2011		2010
Domestic	$	49,056	$	68,839	$	50,644
Foreign		50,647		59,125		50,837
Income before income taxes	$	99,703	$	127,964	$	101,481

Components of Income Tax (Benefit) Expense

Income tax (benefit) expense for the years ended December 31, 2012, 2011, and 2010 is summarized as follows:

(In thousands)	2012		2011			2010
Current:
Federal	$	5,797	$	2,382		$	2,587
State		654		1,335			662
Foreign		11,183		17,784			15,292
		17,634		21,501			18,541
Deferred (net of valuation allowance):
Federal		11,165		(19,853	)		—
State		168		(647	)		—
Foreign		1,914		3,216			(3,535	)
		13,247		(17,284	)		(3,535	)
Income tax expense	$	30,881	$	4,217		$	15,006

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, 2012, 2011, and 2010 as follows:

(In thousands)	2012			2011			2010
Expected federal income tax at statutory rate	$	34,896		$	44,788		$	35,519
State income taxes before valuation allowance, net of federal tax effect		440			1,013			605
Income (losses) without tax expense (benefit)		(40	)		(1,357	)		215
Effect of foreign source income		(5,314	)		1,959			(6,891	)
Valuation allowance		358			(41,038	)		(13,600	)
Other items, net		541			(1,148	)		(842	)
Income tax expense	$	30,881		$	4,217		$	15,006

Deferred Tax Assets And Deferred Tax Liabilities

The significant components of the Company’s deferred tax assets and deferred tax liabilities at December 31, 2012 and 2011 are as follows:

(In thousands)	2012			2011
Deferred tax assets attributable to:
Accounts receivable	$	389		$	300
Inventory		2,643			2,789
Accruals not currently deductible for tax purposes		10,054			10,831
Net operating loss and credit carryforwards		2,669			11,403
Capital loss carryforward		3,105			3,105
Depreciation		2,870			4,553
Equity compensation		3,155			2,280
Asset impairments		1,021			1,021
Purchased intangibles		1,396			339
Other, net		3,604			3,090
Gross deferred tax assets		30,906			39,711
Valuation allowance		(4,990	)		(4,632	)
Total deferred tax assets		25,916			35,079
Deferred tax liabilities attributable to:
Depreciation		(1,252	)		(918	)
Purchased intangible assets		(692	)		(674	)
Total deferred tax liabilities		(1,944	)		(1,592	)
Net deferred tax assets	$	23,972		$	33,487

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, 2012 and 2011 are as follows:

(In thousands)	2012			2011
Gross unrecognized tax benefits at beginning of year	$	2,467		$	2,527
Increases in tax positions for prior years		—			11
Decreases in tax positions for prior years		(19	)		—
Increases in tax positions for current year		4,608			992
Settlements		(1,044	)		(291	)
Lapse in statute of limitations		(593	)		(772	)
Gross unrecognized tax benefits at end of year	$	5,419		$	2,467