Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Income before Income Tax, Domestic and Foreign

Income before income taxes consisted of:



	Year Ended December 31, 2012		Year Ended December 31, 2011		Year Ended December 31, 2010
	(In thousands)
Domestic	$	6,604	$	12,043	$	13,694
Foreign	71,425		61,452		45,960
Total	$	78,029	$	73,495	$	59,654

Schedule of Components of Income Tax Expense (Benefit)

The income tax provision consisted of:



	Year Ended December 31, 2012			Year Ended December 31, 2011			Year Ended December 31, 2010
	(In thousands)
Current:
Federal	$	342		$	1,237		$	527
State	320			822			362
Foreign	4,497			2,990			1,409
	$	5,159		$	5,049		$	2,298
Deferred:
Federal	3,827			3,699			1,215
State	31			44			(148		)
Foreign	(1,557		)	(1,755		)	(430		)
	2,301			1,988			637

Provision for income taxes from ongoing operations at effective tax rate	$	7,460		$	7,037		$	2,935
Discrete Items:
Release of valuation allowance	—			(6,625		)	(2,300		)
Windfall expense related to stock compensation	—			1,938			—
Enhanced R&D deduction - foreign operations	—			(233		)	—
Provision for income taxes from discrete items	—			(4,920		)	(2,300		)

Total provision for income taxes	$	7,460		$	2,117		$	635

Schedule of Effective Income Tax Rate Reconciliation

The income tax provision at the Federal statutory rate differs from the effective rate because of the following items:



	Year Ended December 31, 2012		Year Ended December 31, 2011		Year Ended December 31, 2010
Statutory tax rate	35.0	%	35.0	%	35.0	%
Tax impact of foreign subsidiaries (primarily in Singapore)	(8.1	)%	(5.6	)%	(2.5	)%
State income taxes, net of federal benefit	0.4	%	0.8	%	0.6	%
Uncertain tax matters	3.5	%	0.2	%	—	%
Tax holiday - India (Permanent Difference)	(15.6	)%	(15.1	)%	(19.9	)%
Passive income exemption - Sweden (Permanent Difference)	(3.1	)%	(3.0	)%	(3.7	)%
Other permanent differences	(0.5	)%	(1.0	)%	(5.0	)%
Other	(2.0	)%	(1.8	)%	0.3	%
Effective tax rate from ongoing operations	9.6	%	9.5	%	4.8	%
Discrete Items:
Release of valuation allowance	—	%	(9.0	)%	(3.7	)%
Windfall expense related to stock compensation	—	%	2.6	%	—	%
Enhanced R&D deduction - foreign operations	—	%	(0.2	)%	—	%
Effective tax rate after discrete items	9.6	%	2.9	%	1.1	%

Schedule of Deferred Tax Assets and Liabilities

The individual balances in current and long-term deferred tax assets and liabilities are as follows:



	2012			2011
	(In thousands)
Current deferred income tax assets	$	2,074		$	3,277
Long-term deferred income tax assets	35,140			28,865
Total deferred income tax assets	37,214			32,142
Current deferred income tax liabilities	(239		)	(297		)
Long-term deferred income tax liabilities	(23,895		)	(19,452		)
Net deferred income tax asset	$	13,080		$	12,393

Deferred Income Tax, Temporary Differences Between Amounts of Assets and Liabilities

Temporary differences and carry forwards which comprise the deferred tax assets and liabilities as of December 31, 2012 and 2011 were as follows:



	December 31, 2012				December 31, 2011
	Deferred				Deferred
	Assets		Liabilities		Assets		Liabilities
	(In thousands)
Depreciation and amortization	$	102	$	—	$	331	$	277
Share-based compensation	721		—		549		—
Accruals and prepaids	1,627		239		2,009		297
Bad debts	446		—		720		—
Acquired intangible assets	—		23,895		933		19,175
Net operating loss carryforwards	20,573		—		22,237		—
Tax credit carryforwards	13,745		—		5,363		—
	37,214		24,134		32,142		19,749
Valuation allowance	—		—		—		—
Total deferred taxes	$	37,214	$	24,134	$	32,142	$	19,749

Schedule of Income Before Income Tax and Applicable Tax Rates, Domestic and Foreign

The pre-tax income from and the applicable statutory tax rates in each jurisdiction in which the Company had operations for the year ending December 31, 2012 were as follows:



(dollar amounts in thousands)	United States			Canada			Latin America			Australia			Singapore			New Zealand			India			Europe(United Kingdom)			Sweden			Total
Pre-tax income	$	6,604		$	1,289		$	420		$	1,465		$	25,188		$	292		$	35,708		$	67		$	6,996		$	78,029
Statutory tax rate	35.0		%	30.5		%	34.0		%	30.0		%	10.0		%	28.0		%	—		%	24.0		%	—		%

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



	(in thousands)
Balance at January 1, 2012	$	3,180
Additions for tax positions related to current year	2,482
Additions for tax positions of prior years	263
Reductions for tax position of prior years	—
Balance at December 31, 2012	$	5,925