Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Constituents of Provision for Income Taxes

The provision for income taxes consisted of the following (in thousands):

	Year Ended December 31,
	2012		2011			2010
Current:
Federal	$	11,284	$	6,711		$	5,749
State		789		806			199
Foreign		5,790		10,519			7,740
		17,863		18,036			13,688
Deferred:
Federal		428		(812	)		901
State		36		34			217
Foreign		205		(10	)		(84	)
		669		(788	)		1,034
	$	18,532	$	17,248		$	14,722

Reconciliation of the United States Federal Statutory Corporate Tax Rate to the Company's Effective Tax Rate or Income Tax Provision

A reconciliation of the United States federal statutory corporate tax rate to the Company’s effective tax rate was as follows:

	Year Ended December 31,
	2012			2011			2010
Income tax provision at federal statutory rate		35	%		35	%		35	%
State income taxes, net of federal benefit		1			1			1
Foreign tax rate differential		(14	)		(15	)		(15	)
Tax credit		—			(1	)		(1	)
Discrete tax events		—			—			(1	)
Other		(1	)		—			—
Income tax provision		21	%		20	%		19	%

Changes in the Reserve for Income Taxes, Excluding Interest and Penalties

The changes in the reserve for income taxes, excluding interest and penalties, were as follows (in thousands):

Balance of reserve for income taxes as of December 31, 2010	$	4,181
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in prior periods		7
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period		937
Gross amounts of decreases in unrecognized tax benefits relating to settlements with taxing authorities		(192	)
Gross amounts of decreases in unrecognized tax benefits as a result of the expiration of the applicable statutes of limitations		(785	)
Balance of reserve for income taxes as of December 31, 2011		4,148
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in prior periods		43
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period		642
Gross amounts of decreases in unrecognized tax benefits relating to settlements with taxing authorities		(424	)
Gross amounts of decreases in unrecognized tax benefits as a result of the expiration of the applicable statutes of limitations		(385	)
Balance of reserve for income taxes as of December 31, 2012	$	4,024

Constituents of Deferred Tax Assets

Deferred tax assets consisted of the following (in thousands):

	December 31,
	2012			2011
Current deferred tax assets:
Inventory and revenue related	$	4,303		$	5,202
Bonuses, commissions, and other compensation		1,280			1,273
Other		1,093			1,283
Gross current deferred tax assets		6,676			7,758
Valuation allowance		(307	)		(878	)
Net current deferred tax assets	$	6,369		$	6,880
Noncurrent deferred tax assets:
Federal and state tax credit carryforwards	$	9,747		$	12,274
Stock-based compensation expense		7,242			6,160
Depreciation		1,819			1,798
Acquired completed technologies and other intangible assets		1,119			1,519
Unrealized investment gains and losses		1,075			891
Correlative tax relief and deferred interest related to reserves		520			609
Capital loss carryforward		373			373
Acquired in-process technology		90			178
Other		1,960			1,928
Gross noncurrent deferred tax assets		23,945			25,730
Noncurrent deferred tax liabilities:
Nondeductible intangible assets		(4,945	)		(6,244	)
Other		(2,171	)		(1,045	)
Gross noncurrent deferred tax liabilities		(7,116	)		(7,289	)
Valuation allowance		(1,182	)		(2,522	)
Net noncurrent deferred tax assets	$	15,647		$	15,919