Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

The provision (benefit) for income taxes comprised the following for each of the years ended December 31 (in thousands):

	2011			2010			2009
Current, domestic	$	17,060		$	(15,663	)	$	(5,995	)
Current, foreign		10,799			4,985			(531	)
Current, total		27,859			(10,678	)		(6,526	)
Deferred, domestic		17,620			5,895			1,904
Deferred, foreign		(1,411	)		3,878			(3,476	)
Deferred, total		16,209			9,773			(1,572	)
Provision (benefit) for income taxes	$	44,068		$	(905	)	$	(8,098	)

Components of deferred tax asset (liability)

The components of the Company's deferred tax asset (liability) as of December 31, 2011 and 2010 are as follows (in thousands):

	December 31,
	2011			2010
Deferred tax asset:
Inventory	$	4,452		$	7,094
Vacation accrual		1,119			1,009
Bad debt allowance		366			235
Employee compensation		2,624			1,878
Foreign taxes		422			425
Other		415			638
Total current deferred tax asset, before valuation allowance		9,398			11,279
Valuation allowance		(441	)		(717	)
Current deferred tax asset, net of valuation allowance	$	8,957		$	10,562

Current deferred tax (liability):
State taxes		(2,442	)		(3,093	)
Prepaid expenses		(733	)		(661	)
Total current deferred tax (liability):		(3,175	)		(3,754	)
Net current deferred tax asset	$	5,782		$	6,808
Non current deferred tax assets:
Deferred compensation	$	5,026		$	4,000
Employee compensation		1,456			1,793
Acquisition related compensation		159			2,819
State taxes		674			808
Net operating loss carryforwards		12,202			18,155
Research credits		3,139			2,965
Unrealized investment loss		5,005			4,723
Pension liability		3,137			2,308
Capital loss carryforwards		3,344			1,908

	December 31,
	2011			2010
Foreign tax credit carryforwards		693			2,806
Asset writedowns and other		1,918			1,798
Total non current deferred tax assets		36,753			44,083
Valuation allowance		(4,372	)		(4,301	)
Non current deferred tax assets, net of valuation allowance		32,381			39,782

Non current deferred tax (liabilities):
Depreciation and amortization		(16,444	)		(13,581	)
Intangible asset step up		(21,394	)		(19,971	)
Convertible debt		(17,950	)		(16,701	)
Other		(54	)		(653	)
Total non current deferred tax (liabilities)		(55,842	)		(50,906	)
Net non current deferred tax (liability)	$	(23,461	)	$	(11,124	)

Effective income tax rate reconciliation

The effective income tax rate for the years ended December 31, 2011, 2010 and 2009 differs from the Federal statutory income tax rate due to the following items (in thousands):

	December 31,
	2011			2010			2009
Income (loss) before taxes, domestic	$	84,760		$	(8,914	)	$	24,178
Income (loss) before taxes, foreign		43,196			37,285			(23,761	)
Income before taxes, total	$	127,956		$	28,371		$	417
Provision for income taxes at federal statutory rate (35%)		44,785			9,930			146
State income taxes, net of federal benefit		3,302			(8,148	)		(3,572	)
Non deductible items		752			146			242
Worthless stock deduction		-			-			(410	)
Foreign tax provision (credits)		1,517			2,385			(1,059	)
Manufacturing deduction		(2,022	)		-			-
State apportionment refund claim		(37	)		2,900			-
Foreign earnings not taxed at federal rate		(4,549	)		(6,872	)		(2,031	)
Contingency reserve		816			(484	)		(3,697	)
SemEquip NOL adjustment		-			-			(392	)
Valuation allowance		(205	)		(346	)		2,675
Other		(291	)		(416	)		-
Provision (benefit) for income taxes		44,068			(905	)	$	(8,098	)

Reconciliation of unrecognized tax benefit

The Company recorded a liability for unrecognized tax benefits ("UTBs") at December 31, 2011, 2010 and 2009. A reconciliation of the beginning and ending amount of UTBs is as follows (in thousands):

	2011			2010			2009
Balance at January 1,	$	806		$	1,817		$	7,227
Additions based on tax positions related to the current year		793			603			777
Additions for tax positions of prior years		129			-			-
Reclassification of deferred tax assets		132			-			-
Reductions for settlements with taxing authorities		-			(416	)		(1,675	)
Reductions of tax positions of prior years		(69	)		(1,198	)		(4,512	)
Balance at December 31,	$	1,791		$	806		$	1,817