Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

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,
	2014		2013		2012
United States	$	113,967	$	118,269	$	180,022
Foreign	135,562		110,717		111,890
	$	249,529	$	228,986	$	291,912

Provisions for income taxes

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

	Year Ended December 31,
	2014			2013			2012
Current tax expense (benefit):
Federal	$	30,224		$	38,249		$	53,187
State	5,511			4,413			(3,075		)
Foreign	11,389			13,483			21,138
	47,124			56,145			71,250
Deferred tax expense (benefit):
Federal	1,207			(252		)	3,194
State	(1,115		)	(335		)	1,887
Foreign	2,052			(3,587		)	(9,775		)
	2,144			(4,174		)	(4,694		)
Total income tax provision	$	49,268		$	51,971		$	66,556

Deferred tax assets (liabilities)

Net deferred tax assets (liabilities) were classified on the balance sheet as follows (in thousands):

	December 31,
	2014			2013
Deferred tax assets - current	$	38,873		$	38,389
Deferred tax assets - non-current	19,941			17,883
Deferred tax liabilities - non-current	(13,905		)	(12,255		)
Net deferred tax assets	$	44,909		$	44,017
Valuation allowance	$	13,277		$	13,456

The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and deferred tax liabilities were as follows (in thousands):

	December 31,
	2014			2013
Deferred tax assets:
Accrued liabilities and allowances	$	34,389		$	28,677
Tax credit and loss carryforwards	25,858			32,637
Stock-based compensation	19,530			17,239
Inventory basis differences	10,565			11,421
Deferred revenue	4,608			1,775
Other assets	4,334			5,181
Gross deferred tax assets	99,284			96,930
Valuation allowance	(13,277		)	(13,456		)
Total deferred tax assets, net	86,007			83,474
Deferred tax liabilities:
Intangible assets	(34,737		)	(32,978		)
Property and equipment	(4,553		)	(5,455		)
Other liabilities	(1,808		)	(1,024		)
Total deferred tax liabilities	(41,098		)	(39,457		)
Net deferred tax assets	$	44,909		$	44,017

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,
	2014		2013		2012
Statutory federal tax rate	35.0	%	35.0	%	35.0	%
Increase (decrease) in rates resulting from:
Foreign rate differential	(12.7	)	(11.6	)	(10.4	)
Foreign, federal and state income tax credits	(1.7	)	(2.2	)	(2.7	)
State taxes	2.1		1.0		0.3
Non-deductible expenses	—		1.1		0.7
Other	(3.0	)	(0.6	)	(0.1	)
Effective tax rate	19.7	%	22.7	%	22.8	%

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,
	2014			2013			2012
Balance, beginning of year	$	29,533		$	35,143		$	29,200
Increases related to current year tax positions	1,457			979			7,220
Increases related to prior year tax positions	569			714			1,559
Decreases related to prior year tax positions	(781		)	(2,736		)	(343		)
Lapse of statute of limitations	(5,165		)	(2,012		)	(1,887		)
Settlements	(9,655		)	(2,555		)	(606		)
Balance, end of year	$	15,401		$	29,533		$	35,143

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 - 2013
State of California	2012 - 2013
State of Massachusetts	2011 - 2013
State of Oregon	2012 - 2013
Sweden	2011 - 2013
United Kingdom	2011 - 2013
Belgium	2011 - 2013