Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Pre-tax earnings by significant geographical locations

Pre-tax earnings by significant geographical locations from continuing operations are as follows (in thousands):

	Year Ended December 31,
	2013		2012		2011
United States	$	118,269	$	180,022	$	192,219
Foreign	110,717		111,890		118,860
	$	228,986	$	291,912	$	311,079

Provisions for income taxes

The provisions for income taxes from continuing operations are as follows (in thousands):

	Year Ended December 31,
	2013			2012			2011
Current tax expense (benefit):
Federal	$	38,249		$	53,187		$	62,858
State	4,413			(3,075		)	9,262
Foreign	13,483			21,138			24,452
	56,145			71,250			96,572
Deferred tax expense (benefit):
Federal	(252		)	3,194			(5,185		)
State	(335		)	1,887			(993		)
Foreign	(3,587		)	(9,775		)	(1,967		)
	(4,174		)	(4,694		)	(8,145		)
Total provision	$	51,971		$	66,556		$	88,427

Deferred tax assets (liabilities)

Deferred tax assets (liabilities) are composed of the following components (in thousands):

	December 31,
	2013			2012 (as adjusted)
Allowance for doubtful accounts	$	1,295		$	1,123
Accrued product warranties	3,069			3,099
Inventory basis differences	11,421			9,225
Accrued liabilities	8,987			7,206
Deferred revenue	1,775			2,205
Current net operating loss	7,449			8,085
Other	(1,024		)	(1,025		)
Foreign accrued liabilities	4,504			—
Foreign other	913			1,042
Net current deferred tax assets	$	38,389		$	30,960
Net operating loss carry-forwards	$	6,143		$	11,588
Credit carry-forwards	6,391			7,034
Domestic depreciation	(5,455		)	(7,222		)
Supplemental Executive Retirement Plan	3,198			7,491
Stock-based compensation	17,239			13,745
Intangibles	(14,450		)	(15,999		)
Accrued Liabilities	7,624			6,033
Domestic other	1,416			4,018
Foreign credit carry-forwards	—			3,590
Foreign intangibles	—			(1,259		)
Foreign net operating loss carry-forwards	760			8,119
Foreign other	16			(78		)
Valuation allowance	(4,999		)	(4,837		)
Net long-term deferred tax assets	$	17,883		$	32,223
Foreign credit carry-forwards	$	2,922		$	—
Foreign depreciation	2,418			3,196
Foreign intangibles	(18,528		)	(23,597		)
Foreign net operating loss carry-forwards	8,930			5,336
Foreign other	461			504
Valuation allowance	(8,457		)	(4,510		)
Net long-term deferred tax liabilities	$	(12,254	)	$	(19,071	)

Effective income tax rate reconciliation

The provision for income taxes differs from the amount of tax determined by applying the applicable United States statutory federal income tax rate to pretax income as a result of the following differences:

	Year Ended December 31,
	2013		2012		2011
Statutory federal tax rate	35.0	%	35.0	%	35.0	%
Increase (decrease) in rates resulting from:
Foreign rate differential	(11.6	)	(10.4	)	(3.8	)
Foreign, federal and state income tax credits	(2.2	)	(2.7	)	(2.9	)
State taxes	1.0		0.3		2.2
Non-deductible expenses	0.5		0.7		(1.2	)
Other	—		(0.1	)	(0.9	)
Effective tax rate	22.7	%	22.8	%	28.4	%

Activity related to unrecognized tax benefits, including amounts accrued for potential interest and penalties

The following table summarizes the activity related to unrecognized tax benefits, including amounts accrued for potential interest and penalties (in thousands):

	Year Ended December 31,
	2013			2012			2011
Balance, beginning of year	$	35,143		$	29,200		$	30,949
Increases related to current year tax positions	979			7,220			1,225
Increases related to prior year tax positions	714			1,559			4,192
Decreases related to prior year tax positions	(2,736		)	(343		)	(4,608		)
Lapse of statute of limitations	(2,012		)	(1,887		)	(2,558		)
Settlements	(2,555		)	(606		)	—
Balance, end of year	$	29,533		$	35,143		$	29,200

Tax years open to examination by major taxing jurisdictions

The Company currently has the following tax years open to examination by major taxing jurisdictions:

	Tax Years:
United States Federal	2012
State of California	2008 – 2012
State of Massachusetts	2011 – 2012
State of Oregon	2012
Sweden	2008 – 2012
United Kingdom	2007 – 2012
Belgium	2011 - 2012