Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Components Of Income Before Income Taxes



(In thousands)		Years Ended December 31,
		2013		2012		2011
Domestic	$	41,315	$	24,100	$	6,488
Foreign		55,853		90,737		104,646
	$	97,168	$	114,837	$	111,134

Provision for Income Taxes Charged To Operations



(In thousands)		Years Ended December 31,
		2013		2012		2011
Current tax expense:
U.S. federal	$	27,161	$	24,538	$	19,381
State		813		1,217		1,180
Foreign		4,917		10,544		8,568
Total current	$	32,891	$	36,299	$	29,129
Deferred tax expense (benefit):
U.S. federal	$	(15,401)	$	(10,305)	$	(12,790)
State		(473)		53		(234)
Foreign		(362)		(1,347)		957
Total deferred	$	(16,236)	$	(11,599)	$	(12,067)
Change in valuation allowance		-		-		-
Total provision	$	16,655	$	24,700	$	17,062

Deferred Tax Liabilities (Assets)



(In thousands)		December 31,
		2013		2012
Capitalized software	$	7,748	$	7,432
Depreciation and amortization		15,550		15,404
Intangible assets		18,843		9,920
Unrealized gain on derivative instruments		898		709
Undistributed earnings of foreign subsidiaries		8,565		8,437
Gross deferred tax liabilties		51,604		41,902
Operating loss carryforwards		(108,297)		(86,285)
Vacation and other accruals		(5,147)		(5,895)
Inventory valuation and warranty provisions		(12,813)		(11,773)
Doubtful accounts and sales provisions		(1,101)		(1,229)
Unrealized exchange loss		(2,192)		(1,664)
Deferred revenue		(7,809)		(3,987)
Accrued rent expenses		(453)		(219)
10% minority stock investment		(908)		(932)
Stock-based compensation		(6,069)		(5,471)
Research and development tax credit carryforward		(2,758)		(2,421)
Foreign tax credit carryforward		(4)		-
Other		(444)		(561)
Gross deferred tax assets		(147,995)		(120,437)
Valuation allowance		103,778		91,649
Net deferred tax liability	$	7,387	$	13,114

Reconciliation Of Income Taxes At The U.S. Federal Statutory Income Tax Rate To Effective Tax Rate



	Years Ended December 31,
	2013		2012		2011
U.S. federal statutory rate	35	%	35	%	35	%
Foreign taxes greater (less) than federal statutory rate	2		(5)		(7)
Research and development tax credits	(7)		-		(3)
Enhanced deduction for certain research and development expenses	(13)		(15)		(16)
State income taxes, net of federal tax benefit	1		1		1
Employee share-based compensation	-		2		1
Intercompany profit	(2)		2		3
Nondeductible acquisition costs	-		2		-
Domestic production activities deduction	(1)		-		-
Other	2		-		1
Effective tax rate	17	%	22	%	15	%

Reconciliation Of Beginning And Ending Amount Of Unreecognized Tax Benefit



(In thousands)		2013		2012
Balance at beginning of period	$	20,920	$	19,494
Additions based on tax positions related to the current year		3,290		3,150
Additions for tax positions of prior years		337		1,764
Reductions as a result of settlement with taxing authorities		(975)		(285)
Reductions as a result the lapse of the applicable statute of limitations		-		(2,256)
Reduction for tax positions of prior years		-		(947)
Balance at end of period	$	23,572	$	20,920

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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