Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Note 9—Income Taxes
Income tax expense (benefit) based on income before income taxes consisted of the following:
		Year Ended December 31,
(in thousands)			2014		2013		2012
Current:
	U.S. Federal	$	(87)	$	(358)	$	776
	State and local		822		152		640
	Foreign		4,646		11,010		8,352
			5,381		10,804		9,768
Deferred:
	U.S. Federal		8,999		(11,069)		9,914
	State and local		1,663		1,437		1,560
	Foreign		1,365		3,846		(2,410)
			12,027		(5,786)		9,064
		$	17,408	$	5,018	$	18,832

Schedule Of Income Before Income Taxes

Worldwide income before income taxes consisted of the following:
		Year Ended December 31,
(in thousands)		2014		2013		2012
United States	$	24,260	$	19,093	$	27,538
Foreign		75,590		97,084		47,901
	$	99,850	$	116,177	$	75,439

Schedule Of Federal Statutory Income Tax Rate To Income Before Income Tax

			Year Ended December 31,
(in thousands)			2014		2013		2012
Tax at statutory rate		$	34,947	$	40,662	$	26,404
State taxes, net of federal tax effect			1,615		1,033		2,012
Effect of foreign operations and tax incentives			(24,737)		(19,138)		(11,710)
Change in valuation allowance			(118)		(17,880)		(44)
Chinese retroactive tax incentive			(1,227)		—		—
Losses in foreign jurisdictions for which no
	benefit has been provided		5,812		1,013		927
American Taxpayer Relief Act of 2012			—		(844)		—
Other			1,116		172		1,243
Total income tax expense		$	17,408	$	5,018	$	18,832

Schedule Of Deferred Tax Assets And Liabilities

			December 31,
(in thousands)			2014		2013
Deferred tax assets:
Carrying value of inventories		$	4,772	$	6,241
Accrued liabilities and allowances deductible for tax purposes
	on a cash basis		5,620		5,383
Goodwill			8,433		13,346
Stock-based compensation			6,583		7,169
Net operating loss carryforwards			40,217		40,915
Tax credit carryforwards			7,148		5,970
Other			8,977		7,394
			81,750		86,418
Less: valuation allowance			(36,682)		(30,312)
Net deferred tax assets			45,068		56,106

Deferred tax liabilities:
Plant and equipment, due to differences in depreciation			(5,402)		(5,063)
Intangible assets, due to differences in amortization			(6,102)		(6,117)
Other			(2,151)		(1,839)
Gross deferred tax liability			(13,655)		(13,019)
Net deferred tax asset		$	31,413	$	43,087

Recorded as:
Current deferred tax assets		$	8,502	$	11,302
Non-current deferred tax assets			25,017		33,856
Non-current deferred tax liabilities			(2,106)		(2,071)
Net deferred tax asset		$	31,413	$	43,087

Schedule Of Tax Incentives

The net impact of these tax incentives was to lower income tax expense for 2014, 2013, and 2012 by approximately $12.7 million (approximately $0.23 per diluted share), $8.8 million (approximately $0.16 per diluted share) and $8.0 million (approximately $0.14 per diluted share), respectively, as follows:

		Year Ended December 31,
(in thousands)		2014		2013		2012
China	$	2,800	$	—	$	2,449
Malaysia		2,299		1,559		992
Thailand		7,622		7,283		4,594
	$	12,721	$	8,842	$	8,035

Schedule Of Reconciliation Of Beginning And Ending Amount Of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows:

		December 31,
(in thousands)		2014		2013		2012
Balance as of January 1	$	18,174	$	18,070	$	18,091
Additions related to current year tax positions		968		—		—
Additions related to prior year tax positions		—		104		141
Decreases related to prior year tax positions		(4,386)		—		(162)
Balance as of December 31	$	14,756	$	18,174	$	18,070