Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

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,
	2013			2012
Deferred tax assets:
Derivative financial instruments	$	5,467		$	5,765
Net operating losses		3,599			2,929
Research and development credits		1,130			2,916
Depreciation		2,682			2,251
Valuation reserves and accrued liabilities		3,090			3,062
Foreign tax credit		222			1,775
Stock compensation		1,887			1,316
Inventory		739			723
Patents		722			654
Defined benefit obligation		662			585
Other credits		365			429
Capital lease obligations		273			370
Other		219			288
		21,057			23,063
Valuation allowance		(2,199	)		(2,199	)
Deferred tax liabilities:
Intangible assets		(15,836	)		(18,948	)
Unrealized foreign currency exchange gains		(1,637	)		(2,069	)
Undistributed profits of subsidiary		(1,367	)		(359	)
Accounts receivable		—			(4	)
Property and equipment		(193	)		(220	)
Other		(791	)		(725	)
		(19,824	)		(22,325	)
Net deferred tax asset (liability)	$	(966	)	$	(1,461	)

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, 2013 are as follows:

	Year Ended December 31,
	2013			2012			2011
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		(1.7	%)		4.5	%		—
NOL’s recognized upon change in tax law		—			(2.9	%)		—
Domestic and foreign state and local tax, net of federal benefit		3.6	%		3.7	%		7.2	%
Nondeductible expenses		1.4	%		1.6	%		2.8	%
Nondeductible acquisition transaction expenses		—			—			5.0	%
Withholding taxes		—			—			1.7	%
Nondeductible stock option compensation		(0.5	%)		—			0.5	%
Research and development credits		(2.3	%)		(5.3	%)		(6.9	%)
Effect of different tax rates of foreign jurisdictions		(10.8	%)		(10.5	%)		(3.2	%)
Nontaxable derivative gains		—			—			(5.2	%)
Other tax exempt income		—			(0.5	%)		(8.5	%)
Other		0.3	%		1.0	%		2.0	%
Effective rate		24.0	%		25.6	%		29.4	%

Net Operating Loss Carryforwards

Note 4 — Income Taxes (Continued)

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

Jurisdiction	Amount as of December 31, 2013		Years of Expiration
U.S. Federal income tax	$	9,574		2018 -2019
Foreign	$	4,096		2018

Earning Before For Income Taxes

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

	Year Ended December 31,
	2013		2012		2011
Income before income taxes:
Domestic	$	6,891	$	3,735	$	12,223
Foreign		39,339		28,937		3,646
Total income before income taxes	$	46,230	$	32,672	$	15,869

Provision for Income Taxes

	Year Ended December 31,
	2013			2012			2011
Current income tax expense:
Federal	$	690		$	511		$	213
State and local		495			(311	)		(242	)
Foreign		9,959			7,362			5,294
Total current income tax expense	$	11,144		$	7,562		$	5,265
Deferred income tax expense (benefit):
Federal	$	12		$	1,834		$	2,378
State and local		(95	)		348			182
Foreign		36			(1,393	)		(3,159	)
Total deferred income tax expense	$	(47	)	$	789		$	(599	)
Total tax expense	$	11,097		$	8,351		$	4,666

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,
	2013			2012
Balance at beginning of year	$	2,191		$	1,678
Additions based on tax position related to current year		2			67
Additions based on tax positions related to prior year		580			413
Reductions from settlements and statute of limitation expiration		(599	)		—
Effect of foreign currency translation		67			33
Balance at end of year	$	2,241		$	2,191