Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Components of Income (Loss) Before Income Taxes

The components of income (loss) before income taxes are as follows:

	Year Ended December 31,
(in thousands)	2012		2011		2010
United States	$	34,653	$	26,699	$	17,073
International		316		56		(1,360	)
Total	$	34,969	$	26,755	$	15,713

Components of Provision for Income Taxes

Significant components of the provision for income taxes for the following periods are as follows:

	Year Ended December 31,
(in thousands)	2012			2011			2010
Current:
Federal	$	10,288		$	5,561		$	3,493
State		217			291			185
Foreign		761			700			528
Deferred
Federal		(398	)		2,211			627
State		65			9			8
Foreign		(1,060	)		(1,018	)		(1,227	)
Valuation Allowance		1,071			1,029			1,148
Total	$	10,944		$	8,783		$	4,762

Reconciliation of Federal Statutory Income Tax Rate to Effective Tax Rate

A reconciliation of the federal statutory income tax rate to the effective tax rate is as follows:

	Year Ended December 31,
	2012			2011			2010
Federal tax statutory rate		35.0	%		35.0	%		34.0	%
State tax (net of federal benefit)		0.8			0.7			1.0
Qualified subsidiary election		(3.5	)		(3.8	)		(11.0	)
Research and development credit		(0.4	)		(0.3	)		(0.9	)
Valuation allowance against deferred tax assets		3.5			3.8			7.3
Foreign rate differential		(1.1	)		(0.7	)		(1.7	)
Tax reserves		0.0			0.0			2.3
Domestic manufacturing deduction		(2.9	)		(1.7	)		(1.9	)
Provision to return		(0.1	)		(0.1	)		0.5
Miscellaneous		0.0			(0.1	)		0.7
Total		31.3	%		32.8	%		30.3	%

Significant Components of Deferred Tax Assets and Liabilities

Significant components of deferred tax assets and liabilities are as follows:

	December 31,
(in thousands)	2012			2011
Deferred tax assets:
Accrued expenses	$	251		$	151
Warrants and stock options		963			353
Intangibles		117			110
Inventories		114			127
Net operating loss		4,565			3,270
Less valuation allowance		(4,341	)		(3,270	)
Total deferred tax assets		1,669			741
Deferred tax liabilities:
Depreciation		(4,406	)		(4,061	)
Total deferred tax liabilities		(4,406	)		(4,061	)
Net deferred tax liability	$	(2,737	)	$	(3,320	)

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	December 31,
	2012		2011
Balance at beginning of period	$	402	$	392
Additions for tax positions of prior years		10		10
Balance at period end	$	412	$	402