Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Components of Income (Loss) from Continuing Operations

Components of our income (loss) from continuing operations are as follows (in thousands):

	2012			2011			2010
Income (loss) from continuing operations before income taxes:
Canadian	$	(5,199	)	$	(871	)	$	1,302
U.S.		12,132			7,455			(29,646	)
Other		4,601			17,636			20,371
Total	$	11,534		$	24,220		$	(7,973	)

Components of Income Tax Provision (Benefit)

Components of the Company’s income tax provision (benefit) are as follows (in thousands):

	2012			2011			2010
Current
Canadian	$	—		$	—		$	629
U.S.		3,625			388			1,589
Other		2,277			1,664			4,194
		5,902			2,052			6,412
Deferred
Canadian		—			—			(40	)
U.S.		(13,882	)		(150	)		4,929
Other		(2,960	)		642			651
		(16,842	)		492			5,540
Total	$	(10,940	)	$	2,544		$	11,952

Reconciliation of Statutory Canadian Income Tax rate to Effective Rate

The reconciliation of the statutory Canadian income tax rate related to income from continuing operations before income taxes to the effective rate is as follows (in thousands, except percentage data):

	2012			2011			2010
Statutory Canadian tax rate		25.00	%		27.00	%		28.00	%
Expected income tax provision (benefit)	$	2,884		$	6,539		$	(2,232	)
Permanent differences		241			5			9,581
International tax rate differences		1,419			641			(1,962	)
Change in valuation allowance		(15,086	)		(5,598	)		3,862
Prior year provision to return differences		37			69			136
NOL expirations		—			—			877
Statutory tax rate change		316			357			371
Uncertain tax positions		(4,093	)		423			972
Tax credits		—			(144	)		(68	)
State income tax, net		375			577			519
IRS audit		1,846			(268	)		(318	)
Withholding and other taxes		488			—			—
Other		633			(57	)		214
Reported income tax provision (benefit)	$	(10,940	)	$	2,544		$	11,952
Effective tax rate		(94.9	%)		10.5	%		149.9	%

Significant Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2012 and 2011 are as follows (in thousands):

	2012			2011
Deferred tax assets
Losses & IRC Section 163(j) carryforwards	$	24,372		$	26,164
Compensation related deductions		4,737			3,507
Tax credits		5,101			6,395
Restructuring related liabilities		510			581
Inventory		6,493			6,613
Depreciation		194			—
Warranty		680			761
Unrealized gain/loss		—			727
Other		598			679
Total deferred tax assets		42,685			45,427
Valuation allowance for deferred tax assets		(15,481	)		(28,507	)
Net deferred income tax assets	$	27,204		$	16,920
Deferred tax liabilities
Equity investment	$	(807	)	$	(699	)
Depreciation		—			(2,633	)
Amortization		(14,254	)		(15,510	)
Unrealized gain/loss		(1,132	)		—
Other		(201	)		(760	)
Total deferred tax liabilities	$	(16,394	)	$	(19,602	)
Net deferred income tax asset (liability)	$	10,810		$	(2,682	)

Reconciliation of Total Amounts of Unrecognized Tax Benefits

The reconciliation of the total amounts of unrecognized tax benefits is as follows (in thousands):

Balance at December 31, 2009	$	5,333
Additions based on tax positions related to the current year		241
Reductions for tax positions of prior years		(486	)
Balance at December 31, 2010		5,088
Additions based on tax positions related to the current year		2,318
Additions for tax positions of prior years		55
Reductions to tax positions resulting from a lapse of the applicable statute of limitations		(177	)
Balance at December 31, 2011		7,284
Additions based on tax positions related to the current year		2,618
Additions for tax positions of prior years		1,422
Reductions for tax positions of prior years		(481	)
Reductions to tax positions resulting from a lapse of the applicable statute of limitations		(254	)
Settlements with taxation authorities		(3,035	)
Balance at December 31, 2012	$	7,554

Income Tax Returns to be Reviewed

The Company’s income tax returns may be reviewed in the following countries for the following periods under the appropriate statute of limitations:

United States	2000 - Present
Canada	2006 - Present
United Kingdom	2009 - Present
China	2009 - Present
Japan	2007 - Present
Germany	2006 - Present