Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Pre-tax income was attributed to the following jurisdictions:



	Year Ended December 31,
(In thousands)	2013		2012			2011
Domestic operations	$	2,425	$	(2,203	)	$	3,279
Foreign operations	26,611		26,841			21,952
Total	$	29,036	$	24,638		$	25,231

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes charged to operations were as follows:



	Year Ended December 31,
(In thousands)	2013			2012			2011
Current tax expense:
U.S. federal	$	971		$	(891	)	$	1,319
State and local	254			(75		)	12
Foreign	6,426			6,464			5,122
Total current	7,651			5,498			6,453
Deferred tax (benefit) expense:
U.S. federal	(101		)	(882		)	153
State and local	(67		)	3,630			(409		)
Foreign	(1,410		)	(161		)	(912		)
Total deferred	(1,578		)	2,587			(1,168		)
Total provision for income taxes	$	6,073		$	8,085		$	5,285

Schedule of Deferred Tax Assets and Liabilities

Net deferred tax assets were comprised of the following:



	December 31,
(In thousands)	2013			2012
Deferred tax assets:
Inventory reserves	$	1,582		$	1,017
Capitalized research costs	97			106
Capitalized inventory costs	920			760
Net operating losses	1,101			1,339
Acquired intangible assets	49			10
Accrued liabilities	4,215			3,785
Income tax credits	5,982			4,321
Stock-based compensation	2,260			3,525
Total deferred tax assets	16,206			14,863
Deferred tax liability:
Depreciation	(4,679		)	(5,132		)
Allowance for doubtful accounts	(80		)	(41		)
Amortization of intangible assets	(2,583		)	(2,858		)
Other	(1,600		)	(1,922		)
Total deferred tax liabilities	(8,942		)	(9,953		)
Net deferred tax assets before valuation allowance	7,264			4,910
Less: Valuation allowance	(4,832		)	(4,059		)
Net deferred tax assets	$	2,432		$	851

Schedule of Effective Income Tax Rate Reconciliation

The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pre-tax income from operations as a result of the following:



	Year Ended December 31,
(In thousands)	2013			2012			2011
Tax provision at statutory U.S. rate	$	9,872		$	8,377		$	8,578
Increase (decrease) in tax provision resulting from:
State and local taxes, net	(397		)	(246		)	(262		)
Foreign tax rate differential	(3,804		)	(3,488		)	(3,528		)
Nondeductible items	989			388			407
Federal research and development credits	(1,149		)	(369		)	(503		)
Change in deductibility of social insurance	214			617			—
Valuation allowance	520			2,592			—
Other	(172		)	214			593
Tax provision	$	6,073		$	8,085		$	5,285

Schedule of Unrecognized Tax Benefits Roll Forward

Our gross unrecognized tax benefits at December 31, 2013, 2012 and 2011, and the changes during those years then ended, were the following:



(In thousands)	2013			2012			2011
Beginning balance	$	5,006		$	5,387		$	5,411
Additions as a result of tax provisions taken during the current year	357			261			138
Subtractions as a result of tax provisions taken during the prior year	(126		)	(346		)	(67		)
Foreign currency translation	45			—			133
Lapse in statute of limitations	(63		)	(296		)	(224		)
Settlements	(1,729		)	—			(15		)
Acquisition	—			—			11
Ending balance	$	3,490		$	5,006		$	5,387