Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

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,
	2014			2013
Deferred tax assets:
Derivative financial instruments	$	2,461		$	5,467
Net operating losses		7,075			3,599
Research and development credits		26,204			1,130
Depreciation		3,456			2,682
Valuation reserves and accrued liabilities		4,788			3,090
Foreign tax credit		823			222
Stock compensation		2,006			1,887
Inventory		1,443			739
Patents		138			722
Defined benefit obligation		1,479			662
Other credits		593			365
Capital lease obligations		—			273
Other		144			219
		50,610			21,057
Valuation allowance		(18,037	)		(2,199	)
Deferred tax liabilities:
Intangible assets		(14,593	)		(15,836	)
Unrealized foreign currency exchange gains		(2,855	)		(1,637	)
Undistributed profits of subsidiary		(293	)		(1,367	)
Property and equipment		(162	)		(193	)
Other		(384	)		(791	)
		(18,287	)		(19,824	)
Net deferred tax asset (liability)	$	14,286		$	(966	)

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, 2014 are as follows:

	Year Ended December 31,
	2014			2013			2012
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		(0.5	%)		(1.7	%)		4.5	%
NOLs recognized upon change in tax law		—			—			(2.9	%)
Foreign, state and local tax, net of Federal benefit		1.9	%		3.6	%		3.7	%
Nondeductible expenses		1.8	%		1.4	%		1.6	%
Stock option compensation		(0.1	%)		(0.5	%)		—
Research and development credits		(0.5	%)		(2.3	%)		(5.3	%)
Effect of different tax rates of foreign jurisdictions		(10.0	%)		(10.8	%)		(10.5	%)
Other tax exempt income		(0.9	%)		—			(0.5	%)
Other		(0.1	%)		0.3	%		1.0	%
Effective rate		25.6	%		24.0	%		25.6	%

Net Operating Loss Carryforwards

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

Jurisdiction	Amount as of December 31, 2014		Years of Expiration
U.S. Federal and state income tax	$	49,978		2018 -2034
Foreign		4,090		2018 -2019
Foreign	$	9,074		Indefinite

Earnings Before for Income Taxes

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

	Year Ended December 31,
	2014		2013		2012
Income before income taxes:
Domestic	$	11,170	$	6,891	$	3,735
Foreign		83,051		39,339		28,937
Total income before income taxes	$	94,221	$	46,230	$	32,672

Provision for Income Taxes

	Year Ended December 31,
	2014			2013			2012
Current income tax expense:
Federal	$	4,005		$	690		$	511
State and local		(15	)		495			(311	)
Foreign		24,737			9,959			7,362
Total current income tax expense	$	28,727		$	11,144		$	7,562
Deferred income tax expense (benefit):
Federal	$	(576	)	$	12		$	1,834
State and local		9			(95	)		348
Foreign		(4,058	)		36			(1,393	)
Total deferred income tax expense	$	(4,625	)	$	(47	)	$	789
Total tax expense	$	24,102		$	11,097		$	8,351

Reconciliation of Unrecognized Tax Benefits

The reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


	Year Ended December 31,
	2014			2013			2012
Balance at beginning of year	$	2,241		$	2,191			1,678
Additions based on tax position related to current year		43			2			67
Additions based on tax positions related to prior year		2,991			580			413
Reductions from settlements and statute of limitation expiration		(432	)		(599	)		—
Effect of foreign currency translation		(192	)		67			33
Balance at end of year	$	4,651		$	2,241		$	2,191