Income taxes (Tables)

12 Months Ended

Dec. 31, 2014

Components of the provision for income taxes attributable to operations

Significant components of the provisions for income taxes attributable to operations consist of the following:

	Year ended December 31,
(in thousands)	2014			2013			2012
Current
Federal	$	10,412		$	(878	)	$	11,481
State		479			(173	)		(1,045	)
International		112			300			103
Total current		11,003			(751	)		10,539
Deferred
Federal		7,693			12,679			3,758
State		128			1,028			(375	)
International		(2,503	)		152			-
Total deferred		5,318			13,859			3,383
Total provision for income taxes	$	16,321		$	13,108		$	13,922

Net deferred tax asset

The Company's net deferred tax asset (liability) consists of the following:

	December 31,
(in thousands)	2014			2013
Net operating loss carryforward	$	20,530		$	23,256
Research and development carryforward		8,049			7,395
Scientific research and experimental development credit carryforward		29,556			-
Intangible assets		5,689			3,300
Stock compensation		8,196			6,378
Foreign deferrals		75,511			64,090
Inventory reserves		4,122			-
Deferred revenue		244			-
Other		7,219			1,222
Deferred tax asset		159,116			105,641
Fixed assets		(34,839	)		(32,588	)
Intangible assets		(6,538	)		-
Other		(10,891	)		(5,714	)
Deferred tax liability		(52,268	)		(38,302	)
Valuation allowance		(92,374	)		(68,846	)
Net deferred tax (liabilities)/ asset	$	14,474		$	(1,507	)

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)	2014			2013			2012
US	$	59,764		$	52,749		$	52,391
International		(6,702	)		(8,506	)		(14,945	)
Earnings before taxes on income		53,062			44,243			37,446

Federal tax at statutory rates	$	18,572		$	15,485		$	13,106
State taxes, net of federal benefit		257			538			(2,079	)
Impact of foreign operations		186			(1,116	)		(3,604	)
Change in valuation allowance		1,808			1,434			4,629
Effect of foreign rates		-			-			(22	)
Tax credits		(7,137	)		(5,918	)		(2,904	)
Other differences		124			(227	)		139
Permanent differences		2,511			2,912			4,657
Provision for income taxes	$	16,321		$	13,108		$	13,922

Gross unrecognized tax benefits activity

The table below presents the gross unrecognized tax benefits activity for 2014, 2013 and 2012:

(in thousands)
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
Increases for tax positions for prior years		165
Decreases for tax positions for prior years		-
Increases for tax positions for current year		15
Settlements		-
Lapse of statute of limitations		(75	)
Gross unrecognized tax benefits at December 31, 2013		1,121
Increases for tax positions for prior years		150
Decreases for tax positions for prior years		-
Increases for tax positions for current year		102
Settlements		-
Lapse of statute of limitations		(125	)
Gross unrecognized tax benefits at December 31, 2014	$	1,248