Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Deferred Tax Assets and Deferred Tax Liabilities

The deferred tax assets and deferred tax liabilities and related valuation allowance were comprised of the following:

	December 31,
	2012			2011
Deferred tax assets:
Derivative financial instruments	$	5,765		$	6,350
Net operating losses		2,929			7,786
Research and development credits		2,916			6,346
Depreciation		2,251			1,951
Valuation reserves and accrued liabilities		3,062			2,305
Foreign tax credit		1,775			—
Stock compensation		1,316			1,021
Inventory		723			438
Patents		654			715
Defined benefit obligation		585			410
Other credits		429			890
Capital lease obligations		370			993
Other		288			926
		23,063			30,131
Valuation allowance		(2,199	)		(3,702	)
Deferred tax liabilities:
Intangible assets		(18,948	)		(23,680	)
Unrealized foreign currency exchange gains		(2,069	)		(2,165	)
Undistributed profits of subsidiary		(359	)		(518	)
Accounts receivable		(4	)		(335	)
Property and equipment		(220	)		(202	)
Other		(725	)		(547	)
		(22,325	)		(27,447	)
Net deferred tax asset (liability)	$	(1,461	)	$	(1,018	)

Reconciliations Between Statutory Federal Income Tax Rate and Effective Rate

Reconciliations between the statutory Federal income tax rate of 34% and the effective rate of income tax expense for each of the three years in the period ended December 31, 2012 are as follows:

	Year Ended December 31,
	2012			2011			2010
Statutory Federal income tax rate		34.0	%		34.0	%		34.0	%
Increase (Decrease) resulting from:
U.S. Taxes on foreign income, net of taxes paid credit		4.5	%		—			—
NOL’s recognized upon change in tax law		(2.9	%)		—			—
Domestic and foreign state and local tax, net of federal benefit		3.7	%		7.2	%		2.7	%
Nondeductible expenses		1.6	%		2.8	%		0.7	%
Nondeductible acquisition transaction expenses		—			5.0	%		—
Withholding taxes		—			1.7	%		—
Nondeductible stock option compensation		—			0.5	%		2.5	%
Research and development credits		(5.3	%)		(6.9	%)		(3.6	%)
Effect of different tax rates of foreign jurisdictions		(10.5	%)		(3.2	%)		—
Nontaxable derivative gains		—			(5.2	%)		—
Other tax exempt income		(0.5	%)		(8.5	%)		—
Reverse valuation allowance on Federal NOLs		—			—			(13.5	%)
Other		1.0	%		2.0	%		—
Effective rate		25.6	%		29.4	%		22.8	%

Net Operating Loss Carryforwards

The Company has Net Operating Loss (“NOL”) carryforwards as follows:

Jurisdiction	Amount as of     December 31, 2012		Years of Expiration
U.S. Federal income tax	$	10,165		2012 - 2023
State income taxes	$	4,002		2014 - 2016

Earning Before For Income Taxes

The earning before for income taxes and our tax provision are comprised of the following:

	Year Ended December 31,
	2012		2011		2010
Income before income taxes:
Domestic	$	3,735	$	12,223	$	10,823
Foreign		28,937		3,646		585
Total income before income taxes	$	32,672	$	15,869	$	11,408

Provision for Income Taxes

	Year Ended December 31,
	2012			2011			2010
Current income tax expense:
Federal	$	511		$	213		$	298
State and local		(311	)		(242	)		638
Foreign		7,362			5,294			110
Total current income tax expense	$	7,562		$	5,265		$	1,046
Deferred income tax expense (benefit):
Federal	$	1,834		$	2,378		$	1,847
State and local		348			182			(284	)
Foreign		(1,393	)		(3,159	)		—
Total deferred income tax expense	$	789		$	(599	)	$	1,563
Total tax expense	$	8,351		$	4,666		$	2,609

Reconciliation of Unrecognized Tax Benefits

The reconciliation of the beginning and ending amount of unrecognized tax benefits that would favorably affect the effective income tax rate in the future periods is as follows:

	Year Ended December 31,
	2012		2011
Balance at beginning of year	$	1,678	$	500
Additions based on tax position related to current year		67		63
Additions based on tax positions related to prior year		413		—
Amount acquired with W.E.T Acquisition		—		1,216
Effect of foreign currency translation		33		(101	)
Balance at end of year	$	2,191	$	1,678