Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

The components of income before income tax are as follows:


Year ended December 31,	2011			2012			2013
PRC, excluding Hong Kong	$	22,169		$	55,211		$	53,556
Hong Kong and other jurisdictions		(6,365	)		(2,590	)		(1,197	)

	$	15,804		$	52,621		$	52,359

Current and Deferred Components of Income Tax Expense

The current and deferred components of the income tax expense appearing in the consolidated statements of income are as follows:


Year ended December 31,	2011			2012			2013
Current tax	$	(3,672	)	$	(13,123	)	$	(10,370	)
Deferred tax		1,476			(2,065	)		(773	)

	$	(2,196	)	$	(15,188	)	$	(11,143	)

Deferred Tax Assets and Liabilities

The Company’s deferred tax assets and liabilities as of December 31, 2012 and 2013 are attributable to the following:


December 31,	2012			2013
Net operating losses	$	5,316		$	5,960
Obsolete inventories		343			—
Allowance for doubtful accounts		—			539
Provision for goods return		101			—
Property, plant and equipment		1,690			2,123

Total deferred tax assets		7,450			8,622
Less: valuation allowance		(5,316	)		(8,622	)

Deferred tax assets		2,134			—

Deferred tax liability arising from withholding tax on undistributed earnings of PRC subsidiaries		(1,379	)		—

Net deferred tax assets	$	755		$	—

Movement of Deferred Tax Assets Valuation Allowance

Movement of valuation allowance:


December 31,	2011		2012		2013
At beginning of the year	$	916	$	1,344	$	5,316
Current year addition		428		3,972		3,306

At end of the year	$	1,344	$	5,316	$	8,622

Reconciliation of Income Tax Expense to Amount Computed by applying Current Tax Rate to Income Before Income Taxes

A reconciliation of the income tax expense to the amount computed by applying the current tax rate to the income before income taxes in the consolidated statements of comprehensive income is as follows:


Year ended December 31,	2011			2012			2013
Income before income taxes	$	15,804		$	52,621		$	52,359
PRC tax rate		24	%		25	%		25	%
Income tax expense at PRC tax rate on income before income tax	$	(3,793	)	$	(13,155	)	$	(13,090	)
Effect of difference between Hong Kong and PRC tax rates applied to Hong Kong income		(221	)		(258	)		(487	)
Effect of change in tax law		142			—			—
Change in valuation allowance		(428	)		(3,972	)		(3,306	)
Reversal of deferred tax liability on withholding tax on undistributed profits of PRC subsidiaries		—			—			1,378
Tax benefit (expense) arising from items which are not assessable (deductible) for tax purposes:
Non-deductible impairment loss on goodwill		(708	)		—			—
Non-deductible and non-taxable items		1,574			49			2,292
Over provision of income tax expense in prior years		1,369			185			—
Withholding tax		—			1,510			1,192
Others		(131	)		453			878

Income tax expense	$	(2,196	)	$	(15,188	)	$	(11,143	)