Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Pre-tax income was attributed to the following jurisdictions:



	Year Ended December 31,
(In thousands)	2014			2013		2012
Domestic operations	$	(2,793	)	$	2,425	$	(2,203	)
Foreign operations	43,244			26,611		26,841
Total	$	40,451		$	29,036	$	24,638

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)	2014			2013			2012
Current tax expense:
U.S. federal	$	47		$	971		$	(891	)
State and local	49			254			(75		)
Foreign	8,127			6,426			6,464
Total current	8,223			7,651			5,498
Deferred tax (benefit) expense:
U.S. federal	(687		)	(101		)	(882		)
State and local	74			(67		)	3,630
Foreign	307			(1,410		)	(161		)
Total deferred	(306		)	(1,578		)	2,587
Total provision for income taxes	$	7,917		$	6,073		$	8,085

Schedule of Deferred Tax Assets and Liabilities

Net deferred tax assets were comprised of the following:



	December 31,
(In thousands)	2014			2013
Deferred tax assets:
Inventory reserves	$	904		$	1,582
Capitalized research costs	79			97
Capitalized inventory costs	684			920
Net operating losses	1,151			1,101
Acquired intangible assets	143			49
Accrued liabilities	4,168			4,215
Income tax credits	8,568			5,982
Stock-based compensation	1,749			2,260
Total deferred tax assets	17,446			16,206
Deferred tax liabilities:
Depreciation	(4,402		)	(4,679		)
Allowance for doubtful accounts	(180		)	(80		)
Amortization of intangible assets	(2,154		)	(2,583		)
Other	(2,256		)	(1,600		)
Total deferred tax liabilities	(8,992		)	(8,942		)
Net deferred tax assets before valuation allowance	8,454			7,264
Less: Valuation allowance	(5,716		)	(4,832		)
Net deferred tax assets	$	2,738		$	2,432

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)	2014			2013			2012
Tax provision at statutory U.S. rate	$	13,753		$	9,872		$	8,377
Increase (decrease) in tax provision resulting from:
State and local taxes, net	(580		)	(397		)	(246		)
Foreign tax rate differential	(7,150		)	(3,804		)	(3,488		)
Nondeductible items	1,093			989			388
Federal research and development credits	(842		)	(1,149		)	(369		)
Change in deductibility of social insurance	688			214			617
Valuation allowance	661			520			2,592
Other	294			(172		)	214
Tax provision	$	7,917		$	6,073		$	8,085

Schedule of Unrecognized Tax Benefits Roll Forward

Our gross unrecognized tax benefits at December 31, 2014, 2013 and 2012, and the changes during those years then ended, were as follows:



(In thousands)	2014			2013			2012
Beginning balance	$	3,490		$	5,006		$	5,387
Additions as a result of tax provisions taken during the current year	213			357			261
Subtractions as a result of tax provisions taken during the prior year	(150		)	(126		)	(346		)
Foreign currency translation	(8		)	45			—
Lapse in statute of limitations	(59		)	(63		)	(296		)
Settlements	—			(1,729		)	—
Ending balance	$	3,486		$	3,490		$	5,006