v2.4.0.8

Income Taxes | 12 Months Ended
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Dec. 31, 2013
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Income before income taxes consisted of the following ($ amounts in 000’s):
| Fiscal Year
| 2013 |  | 2012 |  | 2011
Domestic | 83,076 |  |  | 95,730 |  |  | 85,411 |
Foreign | (7,135 | ) |  | 9,266 |  |  | 6,662 |
Total income before income taxes | 75,941 |  |  | 104,996 |  |  | 92,073 |
The provision for income taxes consisted of the following ($ amounts in 000’s):
| Fiscal Year
| 2013 |  | 2012 |  | 2011
Current: |  |  |  |  |
Federal | 43,384 |  |  | 43,765 |  |  | 34,856 |
State | 2,490 |  |  | 1,992 |  |  | 2,785 |
Foreign | 4,175 |  |  | 2,266 |  |  | 1,402 |
Total current | 50,049 |  |  | 48,023 |  |  | 39,043 |
Deferred: |  |  |  |  |
Federal | (17,149 | ) |  | (9,677 | ) |  | (9,326 | )
State | (1,232 | ) |  | (186 | ) |  | (136 | )
Foreign | — |  |  | — |  |  | — |
Total deferred | (18,381 | ) |  | (9,863 | ) |  | (9,462 | )
Provision for income taxes | 31,668 |  |  | 38,160 |  |  | 29,581 |
The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate as follows ($ amounts in 000’s):
| Fiscal Year
| 2013 |  | 2012 |  | 2011
Tax at federal statutory tax rate | 26,579 |  |  | 36,749 |  |  | 32,225 |
Stock-based compensation expense | 4,571 |  |  | 1,570 |  |  | 2,222 |
State taxes—net of federal benefit | 419 |  |  | 1,186 |  |  | (2,457 | )
Domestic production activities deduction | (3,256 | ) |  | (1,813 | ) |  | (547 | )
Research and development credit | (1,650 | ) |  | (144 | ) |  | (887 | )
Foreign income taxed at different rates | 6,672 |  |  | (1,845 | ) |  | (929 | )
Other | (1,667 | ) |  | 2,457 |  |  | (46 | )
Total provision for income taxes | 31,668 |  |  | 38,160 |  |  | 29,581 |
Significant permanent differences arise from the portion of stock-based compensation expense that is not expected to generate a tax deduction, such as stock-based compensation expense on stock option grants to certain foreign employees, offset by the actual tax benefits in the current periods from disqualifying dispositions of shares held by our U.S. employees. For stock options exercised by our U.S. employees, we receive an income tax benefit calculated as the difference between the fair market value of the stock issued at the time of the exercise and the option price, tax effected. Due to this, our income taxes payable have been reduced by the tax benefits from employee stock plan awards. The income tax benefits for fiscal 2013, 2012, and 2011 associated with dispositions from employee stock transactions of $3.5 million, $14.3 million, and $26.2 million, respectively, were recognized as additional paid-in capital. As of December 31, 2013, we did not recognize California tax credits relating to excess tax benefits for stock-based compensation expense of $3.5 million. Unrecognized excess tax benefits will be accounted for as a credit to additional paid-in capital when realized through a reduction in income taxes payable. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets as of the years ended are presented below ($ amount in 000’s):
| December 31, 2013 |  | December 31, 2012
Deferred tax assets: |  |  |
Net operating loss carryforward | 2,183 |  |  | 587 |
Deferred revenue | 47,341 |  |  | 36,438 |
Nondeductible reserves and accruals | 16,055 |  |  | 13,437 |
Depreciation and amortization | (465 | ) |  | 920 |
General business credit carryforward | 439 |  |  | 1,381 |
Stock-based compensation expense | 15,468 |  |  | 9,413 |
Other | 17 |  |  | 12 |
Total deferred tax assets | 81,038 |  |  | 62,188 |
In assessing the realizability of deferred tax assets, we considered whether it is more likely than not that some portion or all of our deferred tax assets will be realized. This realization is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We concluded that it is more likely than not that we would be able to realize the benefits of our deferred tax assets in the future. As of December 31, 2013, we had foreign net operating loss carryforwards of $21.7 million. The foreign net operating losses carry forward indefinitely. As of December 31, 2013, we had state tax credit carryforwards of $4.2 million available to offset our future state taxes. The state credits carry forward indefinitely. Our policy with respect to undistributed foreign subsidiaries’ earnings is to consider those earnings to be indefinitely reinvested and, accordingly, no related provision of U.S. federal and state income taxes has been provided on such earnings. Upon distribution of those earnings in the form of dividends or otherwise, we would be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes in the various foreign countries. As of December 31, 2013, we have not recorded U.S. income tax on $27.5 million of foreign earnings that are deemed to be permanently reinvested overseas. We operate under a tax incentive agreement in Singapore, which is effective through December 31, 2023, and may be extended if certain additional requirements are satisfied. The tax incentive agreement is conditional upon our meeting certain employment and investment thresholds. We did not realize any tax savings from the Singapore tax incentives in fiscal 2013 because of net tax losses in that jurisdiction. As of December 31, 2013, we had $29.6 million of unrecognized tax benefits, of which, if recognized, $29.2 million would favorably affect our effective tax rate. Our policy is to include accrued interest and penalties related to uncertain tax benefits in income tax expense. As of December 31, 2013, 2012 and 2011, accrued interest and penalties were $1.0 million, $1.5 million, and $0.6 million, respectively. The aggregate changes in the balance of unrecognized tax benefits are as follows ($ amounts in 000’s):
| Fiscal Year
| 2013 |  | 2012 |  | 2011
Unrecognized tax benefits, beginning of year | 27,808 |  |  | 19,269 |  |  | 12,083 |
Gross increases for tax positions related to the current year | 4,713 |  |  | 7,550 |  |  | 9,049 |
Gross increases for tax positions related to the prior year | 405 |  |  | 1,479 |  |  | — |
Gross decreases for tax positions related to the prior year | (3,322 | ) |  | (490 | ) |  | (1,863 | )
Unrecognized tax benefits, end of year | 29,604 |  |  | 27,808 |  |  | 19,269 |
As of December 31, 2013, 2012 and 2011, $30.2 million, $28.8 million, and $19.1 million, respectively, of the amounts reflected above were recorded as Income taxes payable—non-current in our consolidated balance sheet. As of December 31, 2013, there was no unrecognized tax benefits that we expect would change significantly over the next 12 months. We file income tax returns in the U.S. federal jurisdiction, and various U.S. state and foreign jurisdictions. As we have net operating loss carryforwards for the state jurisdictions, the statute of limitations is open for all tax years. Additionally, we have foreign net operating losses that have an indefinite life. Generally, we are no longer subject to non-U.S. income tax examinations by tax authorities for tax years prior to 2007. During January 2013, the U.S. Federal Research and Development Tax Credit was reinstated retroactively to fiscal 2012. The U.S. Federal Research and Development Tax Credit benefit was recorded in the first quarter of fiscal 2013, the period of enactment. The State of California has been conducting an audit of our state income tax returns for fiscal 2010 and fiscal 2011. We do not expect this audit to have a significant detrimental effect on our income tax liability nor have a material impact on our results of operations. On September 13, 2013, the U.S. Treasury Department released final income tax regulations on the deduction and capitalization of expenditures related to tangible property. These final regulations apply to tax years beginning on or after January 1, 2014. Several of the provisions within the regulations will require a tax accounting method change to be filed with the IRS, resulting in a cumulative effect adjustment; however, we do not anticipate the impact of these changes to be material to our consolidated financial position, consolidated results of operations, or both.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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