Income Taxes (Tables)

12 Months Ended

Dec. 29, 2012

Components of Income from Continuing Operations Before Income Taxes

The components of income from continuing operations before provision for income taxes are as follows:

(In thousands)	2012		2011		2010
Domestic	$	11,445	$	9,823	$	6,484
Foreign		24,485		28,320		17,364
	$	35,930	$	38,143	$	23,848

Components of the Provision for Income Taxes from Continuing Operations

The components of the provision for income taxes from continuing operations are as follows:

(In thousands)	2012		2011		2010
Current Provision (Benefit) :
Federal	$	1,798	$	123	$	(630)
Foreign		7,363		5,575		3,976
State		559		473		603
		9,720		6,171		3,949

Deferred (Benefit) Provision :
Federal		(3,980)		(317)		999
Foreign		(782)		(1,309)		107
State		(106)		(260)		143
		(4,868)		(1,886)		1,249
	$	4,852	$	4,285	$	5,198

Provision (Benefit) for Income Taxes by Continuing and Discontinued Operation

The provision (benefit) for income taxes included in the accompanying statement of income is as follows:

(In thousands)	2012		2011		2010
Continuing Operations	$	4,852	$	4,285	$	5,198
Discontinued Operation		451		(1,511)		(164)
	$	5,303	$	2,774	$	5,034

Income Tax Reconciliation

The provision for income taxes from continuing operations in the accompanying statement of income differs from the provision calculated by applying the statutory federal income tax rate of 35% to income from continuing operations before provision for income taxes due to the following:

(In thousands)	2012		2011		2010
Provision for Income Taxes at Statutory Rate	$	12,576	$	13,350	$	8,347
Increases (Decreases) Resulting From:
State income taxes, net of federal tax		295		(140)		485
U.S. tax cost (benefit) of foreign earnings		791		(53)		1,108
Foreign tax rate differential		(2,298)		(3,094)		(2,039)
Unrecognized tax (benefit) reserves, net		624		(1,596)		(386)
Change in valuation allowance		(7,051)		(4,183)		(2,051)
Nondeductible expenses		775		746		426
Research and development tax credits		(623)		(324)		(266)
Other		(237)		(421)		(426)
	$	4,852	$	4,285	$	5,198

Net Deferred Tax (Asset) Liability

Net deferred tax asset (liability) in the accompanying consolidated balance sheet consists of the following:

(In thousands)	2012		2011
Deferred Tax Liability:
Foreign and alternative minimum tax credit carryforwards	$	5,659	$	8,050
Reserves and accruals		6,493		6,651
Operating loss carryforwards		15,147		14,515
Inventory basis difference		2,468		2,443
Research and development		1,193		1,316
Employee compensation		2,229		1,847
Allowance for doubtful accounts		486		458
Other		88		176
Revenue recognition		286		328
Deferred Tax Asset, Gross		34,049		35,784
Less: Valuation Allowance		(14,315)		(21,014)
Deferred Tax Asset, Net		19,734		14,770
Goodwill and intangible assets		(15,393)		(15,244)
Fixed assets basis difference		(2,974)		(3,313)
Reserves and accruals		(342)		(398)
Other		(107)		(149)
Deferred Tax Liability		(18,816)		(19,104)
Net Deferred Tax Asset (Liability)	$	918	$	(4,334)

Unrecognized Tax Benefits

As of year-end 2012, the Company had $4,194,000 of unrecognized tax benefits which, if recognized, would reduce the effective tax rate. A tabular reconciliation of the beginning and ending amount of unrecognized tax benefits at year-end 2012 and 2011 is as follows:

(In thousands)	2012		2011
Unrecognized tax benefits, beginning of year	$	3,308	$	6,134
Gross increases—tax positions in prior periods		185		102
Gross decreases—tax positions in prior periods		(41)		(1,353)
Gross increases—current-period tax positions		1,231		1,469
Settlements		(182)		(940)
Lapses of statutes of limitation		(367)		(1,914)
Currency translation		60		(190)
Unrecognized tax benefits, end of year	$	4,194	$	3,308