7. Income Taxes

The components of (loss) income from continuing operations before foreign income taxes consisted of:

	December 31,
	2012			2011			2010
United States	$	(11,923	)	$	(4,559	)	$	(15,930	)
Foreign	6,618			12,718			8,153
Total	$	(5,305	)	$	8,159		$	(7,777	)

As a limited liability company, we are treated as a partnership for U.S. federal and state income tax reporting purposes and therefore, are not subject to U.S. federal or state income taxes. Our taxable income (loss) is reported to our members for inclusion in their individual tax returns. Our Canadian operation files separate income tax returns in Canada. We also incur withholding tax on royalty and interest income as well as other distributions received from our Canadian subsidiary. Our limited liability agreement requires that in any year in which U.S. taxable income is allocated to the members, we make distributions to members equal to 45% of the highest taxable income allocated to any common unit, to the extent our Governing Board determines that sufficient funds are available. Based on our results, we have not recorded a gross member tax distribution liability for the year ended December 31, 2012.

The provision (benefit) for foreign income taxes consists of the following:

	December 31,
	2012		2011			2010
Current	$	1,711	$	3,442		$	2,660
Deferred	39		(271		)	(161		)
Total	$	1,750	$	3,171		$	2,499

The difference between our consolidated effective tax rate and the U.S. Federal statutory tax rate, results primarily from U.S. income taxable to our members, the difference between the U.S. and Canadian statutory rates, Canadian non-deductible expenses, Canadian research and development tax credits, and withholding taxes on Canadian and Malaysian royalty expenses.

The components of our deferred income taxes consisted of:

	December 31,
	2012			2011
Deferred tax assets
Reserves	$	255		$	340
Deferred tax liabilities
Intangible assets	(1,127		)	(1,226		)
Fixed assets	(388		)	(275		)
Other	(70		)	(98		)
Total	$	(1,330	)	$	(1,259	)

The net long-term deferred tax liability, which is included in other long-term liabilities in the Consolidated Balance Sheets, was $1,515 and $1,501 at December 31, 2012 and 2011, respectively. The net current deferred tax asset, which is included in other current assets in the Consolidated Balance Sheets, was $185 and $242 at December 31, 2012 and 2011, respectively.

In accordance with the provisions of ASC Topic 740, an uncertain income tax position will not be recognized in the financial statements unless it is more-likely-than-not to be sustained. As of December 31, 2012 and 2011, we had no reserves for any uncertain tax positions.