Income Taxes (Tables)

12 Months Ended

Dec. 28, 2013

Significant Components of Provision (Benefit) for Income Taxes

Significant components of the provision (benefit) for income taxes are as follows:


(in thousands)	2013			2012			2011
Current:
U.S. Federal	$	(1,538	)	$	(1,898	)	$	(90	)
U.S. State		42			(388	)		(250	)
Foreign		825			831			4,075

Total current		(671	)		(1,455	)		3,735
Deferred:
U.S. Federal		761			1,890			(977	)
U.S. State		26			186			(4	)
Foreign		(2,444	)		(1,495	)		(695	)

Total deferred		(1,657	)		581			(1,676	)

	$	(2,328	)	$	(874	)	$	2,059

Income (Loss) Before Income Taxes

Income (loss) before income taxes consisted of the following:


(in thousands)	2013			2012			2011
U.S.	$	(27,902	)	$	(10,189	)	$	8,154
Foreign		(7,844	)		(2,928	)		9,624

Total	$	(35,746	)	$	(13,117	)	$	17,778

Significant Components of Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting and tax purposes. Significant components of our deferred tax assets and liabilities were as follows:


(in thousands)	2013			2012
Deferred tax assets:
Inventory, receivable and warranty reserves	$	13,290		$	11,434
Net operating loss carryforwards		9,070			2,299
Tax credit carryforwards		11,258			7,764
Accrued employee benefits		3,709			2,167
Deferred profit		839			502
Stock-based compensation		3,972			3,409
Acquisition basis differences		2,105			2,226
Depreciation and fixed asset related		831			318
Other		121			243

Gross deferred tax assets		45,195			30,362
Less valuation allowance		(36,064	)		(24,948	)

Total deferred tax assets		9,131			5,414
Deferred tax liabilities:
Depreciation and fixed asset related		2,909			2,792
Acquisition basis differences		13,193			9,340
Other		461			283

Total deferred tax liabilities		16,563			12,415

Net deferred tax liabilities	$	(7,432	)	$	(7,001	)

Reconciliation of Income Tax Computed at U.S. Federal Statutory Tax Rate to Provision (Benefit) for Income Taxes

The reconciliation of income tax computed at the U.S. federal statutory tax rate to the provision (benefit) for income taxes is as follows:


(in thousands)	2013			2012			2011
Tax provision (benefit) at U.S. 35% statutory rate	$	(12,511	)	$	(4,591	)	$	6,223
State income taxes, net of federal tax benefit		(1,098	)		(645	)		(941	)
Settlements, adjustments and releases from statute expirations		(846	)		367			(791	)
Change in effective tax rate for deferred balances		—			346			—
Federal tax credits		(1,340	)		—			(707	)
Stock-based compensation on which no tax benefit provided		168			177			202
Change in valuation allowance		11,283			2,614			(483	)
Foreign income taxed at different rates		1,526			(227	)		(726	)
Non-deductible transaction costs		—			700			—
Other, net		490			385			(718	)

	$	(2,328	)	$	(874	)	$	2,059

Reconciliation of Gross Unrecognized Tax Benefits

A reconciliation of our gross unrecognized tax benefits, excluding accrued interest and penalties, is as follows:


(in thousands)	2013		2012			2011
Balance at beginning of year	$	6,080	$	5,381		$	5,069
Gross additions for tax positions of current year		933		776			1,455
Gross additions for tax positions of prior years		3,470		195			126
Reductions due to lapse of the statute of limitations		—		(272	)		(1,269	)

Balance at end of year	$	10,483	$	6,080		$	5,381