Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Summary of Components of Provision for Income Taxes

A summary of the components of the provision for income taxes as of December 31, 2012, 2011 and 2010 is as follows:

(In thousands)	2012			2011		2010
Current
Federal	$	26,225		$	59,382	$	48,870
State		3,766			7,177		6,380
International		(504	)		431		274
Total Current		29,487			66,990		55,524
Deferred tax expense (benefit)		(3,785	)		575		(1,324	)
Total Provision for Income Taxes	$	25,702		$	67,565	$	54,200

Effective Income Tax Rate Differs from Federal Statutory Rate

The effective income tax rate differs from the federal statutory rate due to the following:

	2012			2011			2010
Tax provision computed at the federal statutory rate		35.00	%		35.00	%		35.00	%
State income tax provision, net of federal benefit		3.78			3.19			3.33
Federal research credits		—			(2.50	)		(2.90	)
Valuation allowance on losses of foreign subsidiaries		3.80			—			—
Tax-exempt income		(1.01	)		(0.27	)		(0.46	)
State tax incentives		(4.46	)		(0.90	)		(0.86	)
Stock-based compensation		2.36			0.03			0.34
Domestic production activity deduction		(3.21	)		(1.84	)		(2.37	)
Other, net		(1.03	)		0.07			0.15
Effective Tax Rate		35.23	%		32.78	%		32.23	%

Income Before Provision for Income Taxes

Income before provision for income taxes for the years ended December 31, 2012, 2011 and 2010 is as follows:

(In thousands)	2012			2011		2010
U.S. entities	$	80,926		$	204,652	$	167,118
International entities		(7,961	)		1,490		1,071
Total	$	72,965		$	206,142	$	168,189

Principal Components of Current and Non-current Deferred Taxes

Deferred income taxes on the balance sheet result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The principal components of our current and non-current deferred taxes are as follows:

(In thousands)	2012			2011
Current deferred tax assets
Accounts receivable	$	2		$	4
Inventory		7,507			6,709
Accrued expenses		5,546			5,412
Total Current Deferred Tax Assets		13,055			12,125
Non-current deferred tax assets
Accrued expenses		116			113
Deferred compensation		4,456			3,177
Stock-based compensation		4,569			3,808
Uncertain tax positions related to state taxes and related interest		1,005			947
Pensions		605			—
Foreign and state losses and state credit carry-forwards		11,327			7,891
Federal loss and research carry-forwards		12,210			14,778
Valuation allowance		(10,939	)		(7,585	)
Total Non-current Deferred Tax Assets		23,349			23,129
Total Deferred Tax Assets	$	36,404		$	35,254
Non-current deferred tax liabilities
Accumulated depreciation	$	(6,405	)	$	(7,081	)
Intellectual property		(1,839	)		(2,594	)
Investments		(4,844	)		(5,109	)
Total Non-current Deferred Tax Liabilities	$	(13,088	)	$	(14,784	)
Net Deferred Tax Assets	$	23,316		$	20,470

Change in Unrecognized Income Tax Benefits

The change in the unrecognized income tax benefits for 2012, 2011 and 2010 is reconciled below:

(In thousands)	2012			2011			2010
Balance at beginning of period	$	2,970		$	2,593		$	2,919
Increases for tax position related to:
Prior years		965			—			197
Current year		302			840			818
Decreases for tax positions related to:
Prior years		(49	)		(92	)		(16	)
Settlements with taxing authorities		(507	)		(354	)		(630	)
Expiration of applicable statute of limitations		(755	)		(17	)		(695	)
Balance at end of period	$	2,926		$	2,970		$	2,593