Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income before income tax

For financial reporting purposes, net income before income taxes includes the following components (in thousands):

	Years Ended December 31,
	2013			2012			2011
United States	$	(5,270	)	$	(5,994	)	$	(9,348	)
Foreign	13,762			15,517			9,766
Total	$	8,492		$	9,523		$	418

Income tax expense (benefit)

The provision for income taxes based on income before income taxes is as follows (in thousands):

	Years Ended December 31,
	2013			2012			2011
Federal:
Current	$	(258	)	$	(190	)	$	—
Deferred	222			6,873			(2,430		)
	(36		)	6,683			(2,430		)
State:
Current	6			7			6
Deferred	88			1,653			206
	94			1,660			212
Foreign:
Current	2,022			2,135			3,089
Deferred	311			(95		)	(1,216		)
	2,333			2,040			1,873
(Decrease) increase in valuation allowance	(239		)	(8,034		)	2,201
Tax provision	$	2,152		$	2,349		$	1,856

Tax rate reconciliation

	Years Ended December 31,
	2013			2012			2011
Taxes at federal statutory rate	$	2,888		$	3,054		$	143
State taxes, net of federal benefit	(29		)	(23		)	(323		)
Effect of tax rate differential for foreign subsidiary	(2,531		)	(2,695		)	(1,576		)
Valuation allowance, including tax benefits of stock activity	(239		)	(8,034		)	2,201
Nondeductible interest	—			—			462
Stock-based compensation	460			242			73
Prior year true-up Subpart F income	—			2,484			—
Return to provision adjustments	(920		)	3,568			576
Subpart F income inclusion	2,446			3,110			—
Other	77			643			300
Tax provision	$	2,152		$	2,349		$	1,856

Deferred tax assets and liabilities

Items that give rise to significant portions of the deferred tax accounts are as follows (in thousands):

	December 31,
	2013			2012
Deferred tax assets:
Tax loss carryforwards	$	55,109		$	55,288
Tax credit carryforwards	19			19
Uniform capitalization, contract and inventory related reserves	1,493			895
Accrued vacation	632			642
Stock-based compensation	1,235			813
Intangible assets	1,032			1,104
Deferred revenue	179			152
Other	1,721			1,185
Total	61,420			60,098
Deferred tax liabilities:
Inventory deduction	(290		)	(209		)
Pension assets	(2,125		)	(1,385		)
Allowance for doubtful accounts	(405		)	(433		)
Tax basis depreciation less book depreciation	(1,989		)	(224		)
Other	(1		)	—
Total	(4,810		)	(2,251		)
Net deferred tax assets before valuation allowance	56,610			57,847
Valuation allowance	(59,501		)	(59,740		)
Net deferred tax liabilities	$	(2,891	)	$	(1,893	)

Reconciliation of the beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

Balance at December 31, 2012	$	10,277
Increase in current period positions	1,945
Increase in prior period positions	412
Balance at December 31, 2013	$	12,634