Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income (loss) before income tax, domestic and foreign

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

	Years Ended December 31,
	2015			2014			2013
United States	$	(35,074	)	$	(19,301	)	$	(5,270	)
Foreign	17,344			17,375			13,762
Total	$	(17,730	)	$	(1,926	)	$	8,492

Components of income tax expense (benefit)

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

	Years Ended December 31,
	2015			2014			2013
Federal:
Current	$	—		$	—		$	(258	)
Deferred	(4,297		)	(5,608		)	222
	(4,297		)	(5,608		)	(36		)
State:
Current	6			6			6
Deferred	62			853			88
	68			859			94
Foreign:
Current	4,930			2,453			2,022
Deferred	8			1,944			311
	4,938			4,397			2,333
Increase (decrease) in valuation allowance	3,894			4,698			(239		)
Tax provision	$	4,603		$	4,346		$	2,152

Tax rate reconciliation

The primary components of such difference are as follows (in thousands):

	Years Ended December 31,
	2015			2014			2013
Taxes at federal statutory rate	$	(6,028	)	$	(655	)	$	2,888
State taxes, net of federal benefit	(236		)	(90		)	(29		)
Effect of tax rate differential for foreign subsidiary	(2,641		)	(3,570		)	(2,531		)
Valuation allowance, including tax benefits of stock activity	3,894			4,698			(239		)
Foreign taxes on unremitted earnings	2,085			1,590			—
Stock-based compensation	134			621			460
Foreign withholding taxes	180			—			—
Return to provision adjustments	1,131			536			(920		)
Subpart F income inclusion	5,914			1,167			2,446
Other	170			49			77
Tax provision	$	4,603		$	4,346		$	2,152

Deferred tax assets and liabilities

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

	December 31,
	2015			2014
Deferred tax assets:
Tax loss carryforwards	$	52,504		$	54,551
Tax credit carryforwards	19			19
Uniform capitalization, contract and inventory related reserves	1,558			1,728
Accrued vacation	592			669
Stock-based compensation	1,466			1,428
Capitalized research and development	6,212			—
Tax basis depreciation less book depreciation	1,019			—
Intangible assets	1,533			1,364
Deferred revenue	254			149
Accrued foreign taxes	1,271			—
Unrealized gains and losses	—			1,780
Other	2,527			2,668
Total	68,955			64,356
Deferred tax liabilities:
Inventory deduction	(235		)	(206		)
Pension assets	(1,173		)	(1,476		)
Allowance for doubtful accounts	(378		)	(407		)
Tax basis depreciation less book depreciation	—			(192		)
Withholding tax on undistributed earnings of foreign subsidiary	(3,675		)	(1,590		)
Unrealized gains and losses	(984		)	—
Other	(1		)	(241		)
Total	(6,446		)	(4,112		)
Net deferred tax assets before valuation allowance	62,509			60,244
Valuation allowance	(68,093		)	(64,199		)
Net deferred tax liabilities	$	(5,584	)	$	(3,955	)

Unrecognized tax benefits rollforward

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

Balance at December 31, 2013	$	12,634
Increase in current period positions	890
Decrease in prior period positions	(1,585		)
Balance at December 31, 2014	11,939
Increase in current period positions	1,466
Increase in prior period positions	609
Balance at December 31, 2015	$	14,014