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Income taxes (Tables)
 12 Months Ended
Dec. 31, 2012
Income taxes [Abstract]  
Components of the provision for income taxes attributable to operations
Significant components of the provision for income taxes attributable to operations consist of the following:

 
 
Year ended December 31,
 
(in thousands)
 
2012
 
 
2011
 
 
2010
 
Current
 
 
 
 
 
 
Federal
 
$
11,481
 
 
$
(3,795
)
 
$
16,664
 
State
 
 
(1,045
)
 
 
(1,110
)
 
 
187
 
International
 
 
103
 
 
 
74
 
 
 
102
 
Total current
 
 
10,539
 
 
 
(4,831
)
 
 
16,953
 
Deferred
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 
 
3,758
 
 
 
19,055
 
 
 
10,003
 
State
 
 
(375
)
 
 
1,606
 
 
 
(774
)
Total deferred
 
 
3,383
 
 
 
20,661
 
 
 
9,229
 
Total provision for income taxes
 
$
13,922
 
 
$
15,830
 
 
$
26,182
 
Net deferred tax asset
The Company's net deferred tax asset consists of the following:

 
 
December 31,
 
(in thousands)
 
2012
 
 
2011
 
Net operating loss carryforward
 
$
26,102
 
 
$
28,621
 
Research and development carryforward
 
 
3,556
 
 
 
3,556
 
Stock compensation
 
 
5,289
 
 
 
3,666
 
Foreign deferrals
 
 
64,009
 
 
 
61,255
 
Deferred revenue
 
 
-
 
 
 
485
 
Other
 
 
9,005
 
 
 
9,596
 
Deferred tax asset
 
 
107,961
 
 
 
107,179
 
Fixed assets
 
 
(22,040
)
 
 
(21,760
)
Other
 
 
(6,158
)
 
 
(6,902
)
Deferred tax liability
 
 
(28,198
)
 
 
(28,662
)
Valuation allowance
 
 
(67,412
)
 
 
(62,783
)
Net deferred tax asset
 
$
12,351
 
 
$
15,734
 
Reconciliation of taxes determined by applying U.S. federal statutory rate to loss before provision for income taxes
   The provision for income taxes differs from the amount of taxes determined by applying the U.S. federal statutory rate to loss before provision for income taxes as a result of the following:

 
 
Year ended December 31,
 
(in thousands)
 
2012
 
 
2011
 
 
2010
 
US
 
$
52,391
 
 
$
66,756
 
 
$
111,775
 
International
 
 
(14,945
)
 
 
(27,907
)
 
 
(33,895
)
Earnings before taxes on income
 
 
37,446
 
 
 
38,849
 
 
 
77,880
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal tax at statutory rates
 
$
13,106
 
 
$
13,597
 
 
$
27,258
 
State taxes, net of federal benefit
 
 
(2,079
)
 
 
46
 
 
 
666
 
Impact of foreign operations
 
 
(3,604
)
 
 
(2,371
)
 
 
(7,713
)
Change in valuation allowance
 
 
4,629
 
 
 
3,193
 
 
 
6,394
 
Effect of foreign rates
 
 
(22
)
 
 
(12
)
 
 
(30
)
Tax credits
 
 
(2,904
)
 
 
(1,405
)
 
 
(1,754
)
Other differences
 
 
139
 
 
 
556
 
 
 
398
 
Permanent differences
 
 
4,657
 
 
 
2,226
 
 
 
963
 
Provision for income taxes
 
$
13,922
 
 
$
15,830
 
 
$
26,182
 
Gross unrecognized tax benefits activity
The table below presents the gross unrecognized tax benefits activity for 2012, 2011 and 2010:

(in thousands)
 
 
Gross unrecognized tax benefits at January 1, 2010
 
$
260
 
Increases for tax positions for prior years
 
 
16
 
Decreases for tax positions for prior years
 
 
(175
)
Increases for tax positions for current year
 
 
849
 
Settlements
 
 
-
 
Lapse of statute of limitations
 
 
-
 
Gross unrecognized tax benefits at December 31, 2010
 
 
950
 
Increases for tax positions for prior years
 
 
167
 
Decreases for tax positions for prior years
 
 
(61
)
Increases for tax positions for current year
 
 
-
 
Settlements
 
 
-
 
Lapse of statute of limitations
 
 
-
 
Gross unrecognized tax benefits at December 31, 2011
 
 
1,056
 
Increases for tax positions for prior years
 
 
25
 
Decreases for tax positions for prior years
 
 
(65
)
Increases for tax positions for current year
 
 
-
 
Settlements
 
 
-
 
Lapse of statute of limitations
 
 
-
 
Gross unrecognized tax benefits at December 31, 2012
 
$
1,016